HomeMy WebLinkAboutFY 2023 Annual Comprehensive Financial ReportCity of =u ess
Annual Comprehensive
Financial Report
Fiscal Year Ended September 30, 2023
201 N. Ector Drive: Euless, TX 76039 www.eulesstx.0ov
THE CITY OF
EULESS
City of Euless, Texas
Annual Comprehensive Financial Report
Fiscal Year Ended
September 30, 2023
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
THE CITY OF
EULESS
CITY OF EULESS, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2023
CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of Transmittal i vii
City Officials viii
Organizational Chart ix
GFOA Certificate of Achievement x
FINANCIAL SECTION
Independent Auditor's Report 1-3
Management's Discussion and Analysis (unaudited) 5-19
Basic Financial Statements
Government -Wide Financial Statements
Statement ofNet Position 20
Statement of Activities 21
Fund Financial Statements
Governmental Funds
Balance Sheet 22-23
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 25
Statement of Revenues, Expenditures and Changes in Fund Balances 26-27
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 29
Proprietary Funds
Statement ofNet Position 30-31
Statement of Revenues, Expenses, and Changes in Net Position 32-33
Statement of Cash Flows 34-35
Fiduciary Funds
Statement ofNet Position 36
Statement of Changes in Fiduciary Net Position 37
Notes to Basic Financial Statements 39-86
Required Supplementary Information
Schedule of Changes in Net Pension Liability/(Asset)
and Related Ratios (Texas Municipal Retirement System) 89
Schedule of Contributions (Texas Municipal Retirement System) 90
Schedule of Changes in Net OPEB Liability and Related Ratios 91
Schedule of Contributions — OPEB Trust 92
Budgetary Comparison Schedules
General Fund 93-94
Car Rental Special Revenue Fund 95
Notes to Required Supplementary Information 96
Combining and Individual Fund Statements and Schedules
Non -Major Governmental Funds
Combining Balance Sheet 100-103
CITY OF EULESS, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2023
CONTENTS -CONTINUED
Page(s)
Combining and Individual Fund Statements and Schedules - Continued
Non -Major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 104-107
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Hotel/Motel Special Revenue Fund 108
Half -Penny Sales Tax Special Revenue Fund 109
Police Drug Enforcement Special Revenue Fund 110
Crime Control and Prevention District Special Revenue Fund 111
Grant Special Revenue Fund 112
Police Seized Assets Special Revenue Fund 113
Juvenile Case Special Revenue Fund 114
TIRZ #3 Glade Parks Special Revenue Fund 115
Midtown Public Improvement District Special Revenue Fund 116
TIRZ #4 Midtown Special Revenue Fund 117
Cable PEG Fees Special Revenue Fund 118
Internal Service Funds
Combining Statement ofNet Position 120
Combining Statement of Revenues, Expenses, and Changes in Net Position 121
Combining Statement of Cash Flows 122
STATISTICAL SECTION (Unaudited) Table
Net Position by Component 1 125
Changes in Net Position 2 126-127
Fund Balances, Governmental Funds 3 128
Changes in Fund Balances, Governmental Funds 4 129
Estimated Actual Value of Taxable Property 5 130
Direct and Overlapping Property Tax Rates 6 131
Principal Property Taxpayers 7 132
Property Tax Levies and Collections 8 133
Ratio of Outstanding Debt by Type 9 134
Ratio ofNet General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 135
Direct and Overlapping Governmental Activities Debt 11 136
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 137
Demographic Statistics 13 138
Principal Employers 14 139
Full-time City Government Employees by Function/Program 15 140
Operating Indicators by Function/Program 16 141
Capital Asset Statistics by Function/Program 17 142
INTRODUCTORY SECTION
THE CITY OF
EULESS
THE CITY OF
EULESS
February 27, 2024
To the Honorable Mayor,
Members of the City Council, and
Citizens of the City of Euless, Texas
The Finance Department and City Manager's Office are pleased to submit the Annual
Comprehensive Financial Report for the City of Euless, Texas ("City") for the fiscal year
ended September 30, 2023. This report complies with State law which requires that all
local governments publish, within six months of the close of each fiscal year, a complete
set of financial statements presented in conformity with accounting principles generally
accepted in the United States of America ("GAAP") and audited in accordance with
auditing standards generally accepted in the United States of America by a firm of
licensed certified public accountants.
This report is published to provide the City Council, City staff, citizens, bondholders, and
other interested parties with detailed information concerning the financial condition and
activities of the City. The report consists of City management's representations
concerning the finances of the City. Consequently, management assumes full
responsibility for the accuracy, completeness, and reliability of all of the information
presented in the report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that
is designed both to protect the City's assets from loss, theft, or misuse and to compile
sufficient reliable information for the preparation of the City's financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh the
benefits derived from them, the City's comprehensive framework of internal controls has
been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all
material respects.
The City's financial statements have been audited by Weaver, L.L.P., a firm of licensed,
certified public accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements of the City for the fiscal year ended September 30,
2023, are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements;
assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified ("clean") opinion that the City's financial statements for the fiscal year ended
September 30, 2023, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the Financial Section of this report.
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201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.eulesstx.gov
This report is presented in three sections: Introductory, Financial, and Statistical. The
Introductory Section includes this transmittal letter, a listing of City Officials, and an
organizational chart of the City. The Financial Section includes the Independent
Auditor's Report on the basic financial statements, Management's Discussion and
Analysis ("MD&A"), Basic Financial Statements, the Notes to the Basic Financial
Statements, and Combining and Individual Fund Statements and Schedules. The MD&A
is a narrative introduction, overview, and analysis to accompany the basic financial
statements. This letter of transmittal is designed to complement, and should be read in
conjunction with, the MD&A. The City of Euless' MD&A can be found immediately
following the independent auditor's report. The Statistical Section includes financial and
demographic information relevant to readers of the City's financial statements. The
statistical data is generally presented on a multi -year basis.
Profile of the City of Euless, Texas
The City of Euless is located in North Central Texas in Northeast Tarrant County
approximately 16 miles west of Dallas and 16 miles east of Fort Worth. Euless is readily
accessible by State Highway 183 which is a multi -lane expressway linking Dallas to Fort
Worth. Other major highways through the City include State Highway 121, State
Highway 360, State Highway 10 and Farm -to -Market Road 157. Euless' centralized
location provides quick access to both Dallas and Fort Worth metropolitan areas and is
adjacent to Dallas -Fort Worth International Airport ("DFW Airport"), one of the world's
busiest airports. The City encompasses approximately 16.2 square miles and serves a
population of approximately 61,544.
The City of Euless was incorporated February 24, 1953 and is a home rule city operating
under a Council/Manager form of government. The City Council is comprised of the
mayor and six council members who are elected at large. The Council has the authority to
enact local legislation, levy taxes, adopt budgets, determine policies, incur debt, and
appoint the City Secretary, City Attorney, Municipal Court Judge, and the City Manager.
The City Manager reports directly to the City Council, and is responsible for the daily
management of the various City departments. Council members serve three-year
staggered terms, with two council members elected each year. The Mayor is elected to
serve a three-year term. In addition, several boards and commissions were created to
assist the City Council in deciding matters of policy and procedure and meet on various
issues throughout the year.
The City of Euless provides a full range of services to its citizens including: police and
fire protection; emergency ambulance services; municipal court operations; development
and code services; construction and maintenance of streets and highways, parks, and
recreational facilities; water service and wastewater collection and treatment; and library
operations. The City also operates a top -ranked, 18-hole golf course and conference
center, youth athletic complex, and an aquatics center. Internal services of the City
account for risk management, equipment replacement, and employee insurance coverage
activities on a cost reimbursement basis. Private contractors, through franchise
agreements, provide solid waste and recycling collections and disposal services for the
City.
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Four component units of the City, the Euless Development Corporation, the Euless Crime
Control and Prevention District, Tax Increment Reinvestment Zone ("TIRZ") #3 — Glade
Parks, and Tax Increment Reinvestment Zone ("TIRZ") #4 — Midtown, are presented in
the financial statements of the City as blended component units. Data for these
component units is recorded in and presented as special revenue funds in the City's
financial statements. Additional information on these component units can also be found
in Note 1 in the Notes to the Basic Financial Statements.
The annual budget serves as the foundation for the City of Euless' financial planning and
control. Per the City Charter, the City Manager provides to the City Council the proposed
budget by August 1st each year. The budget is filed with the City Secretary and is open
for public inspection. Upon receipt of the budget, the City Council sets a date for a public
hearing at which time interested citizens may express their opinions regarding the
proposed budget. The Charter requires the Council to adopt the budget by a favorable
majority vote at least ten 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 expenditures 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 for review.
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.
The City of Euless is located in Tarrant County in the heart of the Dallas/Fort Worth
("DFW") Metroplex and adjacent to the DFW Airport. Thus, the economic vitality of the
region significantly impacts the economic health of Euless.
DFW Airport reports itself as the third largest airport in terms of operations and second
largest in terms of passengers in the world, handling 73 million passengers annually.
According to the North Texas Commission, DFW is the 4th largest region in the U.S. and
has experienced tremendous growth during the past decade. With its highly -diversified
economy, DFW has a population of over 7.7 million, a Gross Domestic Product of $534.8
billion, a labor force of over 4 million with the fourth largest labor force of U.S.
metropolitan areas, an 8.1% job growth rate, is home to 23 Fortune 500 Firms, and boasts
enrollment of over 472,600 individuals in colleges and universities making their home in
the region. Such an economic environment has helped the region weather economic
downturns in key sectors better than many other regions in the nation.
The AllianceTexas development in North Fort Worth is a 27,000-acre development that
has generated an estimated $111 billion in economic impact with over 560 companies,
generating 66,000 direct jobs. It is anchored by the inland port known as the Alliance
Global Logistics Hub. This area offers a variety of commercial real estate options,
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industrial space, office space, and retail facilities. Perot Field Fort Worth Alliance
Airport was also named a Top 20 U.S. Cargo Airport by the Federal Aviation
Administration (www.alliancetexas.com).
Assessed value for all residential and commercial property in the City of Euless is
estimated at approximately $6.8 billion for tax year 2023, which is a 14% increase from
the prior year, due to increases in both residential and commercial real estate property
values and to new growth. Sales tax collections increased almost 3.8% from FY2021-22
to FY2022-23. Euless continues to look for additional revenue opportunities in order to
minimize the tax burden to citizens and strives to cut costs without impacting service.
The City receives a significant amount of revenue from a consolidated rental car facility
located at DFW Airport. The City Council has chosen to continue to use this funding
source to support general government operations and to cash flow capital projects in lieu
of debt issuance when possible. The City has been very cautious to not become overly
dependent on this volatile resource while providing for needed improvements for citizens.
The Dallas Cowboys AT&T Stadium, 2023 World Champion Texas Rangers Globe Life
Park and Choctaw Stadium in Arlington are located within minutes of Euless and,
continue to attract additional tourism to the City by hosting concerts and sporting events.
Euless population has increased from 53,780 to 61,544 in ten years (North Central Texas
Council of Governments). The City's median household income is $77,403, which
compares favorably to $72,284 for Texas and $74,755 for the United States (U.S. Census
Bureau). The City's educational level is 93.7% high school graduate or higher, which
again is favorable to 86.1% for Texas and 89.6% for the United States (U.S. Census
Bureau).
The City of Euless has approximately 358.54 acres of undeveloped land.
Long -Term Financial Planning
The City of Euless has developed a comprehensive capital improvements document.
Such strategic planning has allowed the City Council to fund several major infrastructure
upgrades, park enhancements, and capital purchases in a systematic manner while
considering the full impact to the operating budget and tax requirements. Many of these
projects have been completed on a pay-as-you-go basis by utilizing operating revenues,
excess reserves, and rental car taxes.
The City Council and citizens of Euless have determined that debt issuance is a viable
method of financing major capital projects and equipment purchases. Analysis of
potential debt issuance includes the operating impact the repayment thereof will have on
citizens, property tax rates, and enterprise fund service fee revenues. Per the City's fiscal
policies, long-term debt will not be used for operating purposes and the life of the debt
instruments will not exceed the useful life of the projects or equipment financed. Policy
also specifies that debt with an average life of 20 years or less will be issued to reduce net
interest cost and maintain future flexibility by paying off debt earlier. The majority of the
City's existing long-term debt was used to finance infrastructure needs and traditional
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government facilities such as fire and police stations, streets, utility infrastructure, and
development of parks and open spaces.
The City's fiscal policies state current expenditures will be paid with current revenues.
Deferrals, short-term loans, or one-time sources will be avoided as budget balancing
techniques. Reserves will be used for emergencies or nonrecurring expenditures, except
when balances can be reduced because levels exceed guidelines or legally -required
minimums.
Fiscal policies provide for a General Fund reserve equal to between 30 and 60 days of
working capital. At no time shall the reserve fall below 8.3% of the General Fund
expenditure budget (i.e. 30-day level). The current operating reserve is at 157 days of
operations. At the end of the current year, the City was in compliance with this fiscal
policy reserve level.
The City's fiscal policies for the Water and Wastewater Fund require the maintenance of
a minimum reserve of 45 to 75 days of working capital. The City currently maintains a
121-day reserve. Water and Wastewater revenue bond covenants require the City to
maintain reserve amounts sufficient to cover the average annual debt service
requirements. This revenue bond reserve is in addition to the working capital required by
the City's fiscal policies and is maintained in a separate fund on the general ledger. As of
September 30, 2023, the revenue bond reserve totaled $733,593 which meets the required
average annual debt service per bond covenants
Standard & Poor's Ratings Services, a subsidiary of the McGraw-Hill Companies, Inc.
increased the City's general obligation debt rating to AA+ in 2023 and has sales tax
revenue debt at AA and the water and wastewater revenue debt at AA+. Moody's
Investor Service, Inc. rates the general obligation debt and water and wastewater revenue
debt at Aa2. Additional information about the rating agencies or the significance of the
ratings provided may be obtained from each agency's web site.
Major Initiatives
The City has partnered with Tarrant County, surrounding cities, local churches, and
businesses to renovate qualifying homes in the community through the Tarrant County
Home Program and the Community Powered Revitalization Program ("CPR"). Through
these partnerships, the cities of Hurst, Euless, and Bedford have joined forces to assist
qualifying residents in all three communities.
The City participates in tax abatement programs as addressed in the Notes to Basic
Financial Statements Note 1. Currently, there are no active property tax abatement
agreements. Requests are considered on a case by case basis for economic development,
redevelopment, stimulus, or retention. The City has various General Economic
Development Agreements via Texas Local Government Code Chapter 380. These
agreements are to stimulate economic development in the City, are authorized by City
Council, are considered on a case by case basis, and are reflected in the budget and
financial statements of the General Fund Non -Departmental Division and the Euless
Development Corporation Fund.
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The City's Capital Improvements Program and Americans With Disability Act ("ADA")
Transition Plan address facility needs of the City. The Parks Master Plan, which is
currently being updated, focuses on improving the quality of life for the community,
includes additional hike/bike trails, park amenities and upgrades. The City has completed
several projects in the past year and has many others underway that were included in
these plans. The City believes it is critical that the street, water, wastewater, and drainage
systems are properly maintained and systematically upgraded. While these are not
glamorous, these represent the most basic governmental functions. Deferral of these
projects creates a financial burden for future generations.
Phase I of the FY2019 Street Reconstruction Project has been completed and Phase II,
which consists of the reconstruction of W. Pipeline from Raider Drive, to the western city
limits, is scheduled for bid in 2024. During last year, several water and wastewater line
replacement projects and the well replacement projects were completed. The FY2023
Water Line Replacement Project has begun and the FY2023 Sewer Line Replacement
Project will go out for bid in 2024. Additional Parking was added at the Parks at Texas
Star North and new park lighting was installed from Heritage Avenue to Bob Eden Park.
Construction of the new Fire Station #1 was completed, construction for Fire Station #2
is underway, and the architectural and engineering design phase of the Police / Court
Facility Renovation is complete. The project is scheduled for bid in the spring of 2024.
Over the last several years, the City has worked with developers on some major, mixed -
use centers. Glade Parks, located along the southwest corner of Glade Road and Highway
121, provides approximately 1.2 million square feet of retail/office space and includes a
unique residential component. In an effort to promote development in this area, the City
created a TIRZ for the Glade Parks development and approved the related project and
financing plan. This plan authorized the City to undertake certain public improvements
associated with the Glade Parks development. Additionally, the City created the Glade
Parks Public Improvement District ("PID") which is funded from assessments within the
district. Over the last several fiscal years, numerous businesses opened in this
development creating increased property values and retail sales. The single-family
residential component continues to add value to the property tax base as well.
The RiverWalk! development, includes approximately 200 acres located at the northwest
corner of Airport Freeway and State Highway 360 extending north to Harwood Road.
Lennar Homes has developed five (5) subdivisions within this mixed -use project.
Recently, the remaining approximately 63 acres was sold and is being developed as a
separate master planned development, known as Watercolor. This development will
include single family residential including villas, townhomes and rowhomes, urban lofts,
and retail/commercial centered around a water feature.
In 2015, the City approved a 56-acre mixed -use development called Founders Parc,
previously known as Midtown, located on the south side of State Highway 183, east of
Farm -to -Market Road 157 and north of State Highway 10. Building is continuing on this
development of 259 new single-family homes, 285 urban lofts, and over 57,000 square
feet of retail and commercial space. Both a TIRZ and a PID have been created by the
City to support debt for public improvements needed for the area including roadways,
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water distribution system, sanitary sewer and storm sewer collections systems,
hardscaping, and amenities.
There are currently two active residential subdivisions in the City.
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 Annual
Comprehensive Financial Report for the fiscal year ended September 30, 2022. The
Certificate of Achievement is a prestigious national award recognizing conformance with
the highest standards for preparation of state and local government financial reports. In
order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized Annual Comprehensive Financial Report, whose
contents conform to program standards. Such report must satisfy both Generally
Accepted Accounting Principles and applicable legal requirements.
The City has been awarded a Certificate of Achievement for the last 36 consecutive
years. We believe that the current Annual Comprehensive Financial Report meets the
Certificate of Achievement program requirements and are submitting it to GFOA for
review.
In addition, the City of Euless received the GFOA's Distinguished Budget Presentation
Award for its annual budget document. The City of Euless has received the Distinguished
Budget Award for the last 32 years. In order to qualify for the 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 on a timely basis could not have been accomplished
without the efficient and dedicated services of the entire staff of the Finance Department.
Appreciation is expressed to City employees throughout the organization, especially
those who were instrumental in the successful completion of this report.
We would like to thank the Mayor and members of the City Council for their support in
planning and conducting the financial operations of the City in a responsible,
professional, and progressive manner. As always, the City of Euless staff welcomes and
appreciates your comments.
Respectfully Submitted,
olfA zra7‘it' ,,e/Ja
Loretta Getchell
City Manager
Janina Jewell
Director of Finance
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City of Euless
FISCAL YEAR 2022-2023
Council Members
LINDA MARTIN, MAYOR
Tim Stinneford, Place One
Jeremy Tompkins, Place Two
Eddie Price, Mayor Pro Tem, Place Three
Perry Bynum, Place Four
Harry Zimmer, Place Five
Tika Paudel, Place Six
Loretta Getchell, City Manager
Chris Barker, Deputy City Manager
Wes Rhodes, Assistant City Manager
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ORGANIZATIONAL CHART
Loretta Getchell, City Manager
CITIZENS OF EULESS
May 08, 2023
MAYOR & COUNCIL
MUNICIPAL COURT
OF RECORD
CITY MANAGER
Loretta Getchell
CITY SECRETARY
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Wayne K. Olson
DEPUTY CITY MANAGER
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LIBRARY DIRECTOR
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COMMUNICATIONS AND
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Michael Warr -ix
GENERAL MANAG ER TEXAS STAR
Glenda Heftseli-Shelton
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•
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Euless
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2022
Executive Director/CEO
FINANCIAL SECTION
CITY OF
EUEESS
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weaver
Assurance • iax • Advisory
Independent Auditor's Report
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
Report on the Audit of the Financial Statements
Opinions
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 (City) as of and for the year ended September 30, 2023, and the related notes to
the financial statements which collectively comprise the City's basic financial statements as listed in the
table of contents.
In our opinion, the accompanying financial statements 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, as of September 30, 2023, and the
respective changes in financial position, and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City and to meet our other ethical responsibilities, in accordance with the relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2023,
the City implemented Governmental Accounting Standards Board (GASB) Statement No. 96,
Subscription -Based Information Technology Arrangements. Our opinions are not modified with respect
to this matter.
Responsibilities of Management for the Financial Statements
The City's management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS I WEAVER.COM
The Honorable Mayor,
City Council and City Manager
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control -related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, and the required supplementary information, as listed in the
table of contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with GAAS, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
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The Honorable Mayor,
City Council and City Manager
Other Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual nonmajor
fund financial statements and schedules are presented for purposes of additional analysis and are not a
required part of the financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the
combining and individual nonmajor fund financial statements and schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Information Included in the Annual Comprehensive Financial Report (ACFR)
Management is responsible for the other information included in the ACFR. The other information
comprises the introductory and statistical sections but does not include the basic financial statements
and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon. In connection with our
audit of the basic financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we
are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 23, 2024, 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
effectiveness of the City's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
6.)..,.a(.P/1 a,►4 _1(ac-,fi7.f.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 23, 2024
3
THE CITY OF
EULESS
CITY OF EULESS, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2023
(Unaudited)
Management of the City of Euless offers the readers of the City's financial statements this narrative
overview and analysis of the financial activities and financial position of the City for the fiscal year
ended September 30, 2023. In the broadest context, the financial well-being of a government lies in the
underlying wealth and willingness of its citizens and property owners to pay adequate taxes combined
with the vision of the government's elected and appointed leadership to spend those taxes strategically
so that the City's tax base, service levels, City assets, and the City's desirability will be maintained not
just for the current year but well into the future.
Financial reporting is limited in its ability to provide the "big picture" but rather focuses on financial
position and changes in financial position. In other words, are revenues and/or expenditures higher or
lower than the previous year? Has net position (containing both short-term and long-term assets and
liabilities) or fund balance (the current "spendable" assets less current liabilities) of the government been
maintained? Readers are encouraged to consider the information presented here in conjunction with the
additional information furnished in the letter of transmittal (pages i-vii of this report) and the statistical
section (pages 125-142 of this report) as well as information in the annual budget and the capital
improvement plan along with other community information found on the City's website at
www.eulesstx.gov. It should be noted that the Independent Auditor's Report describes the auditors'
association with the various sections of this report and that all of the additional information from the
website and other City sources is unaudited.
Financial Highlights
• The assets and deferred outflows of resources of the City of Euless exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $316,419,884 (net
position). This number must be viewed in the context that the vast majority of the City's net
position of $203,492,391 (64%) is net investment in capital assets and that most capital assets in
government do not directly generate revenue nor can they be sold to generate liquid capital. The net
position restricted for specific purposes totaled $12,844,640 (4%). The remaining $100,082,853
(32%) is unrestricted net position and may be used to meet the government's ongoing obligations to
citizens and creditors in accordance with the City's fund designation and fiscal policies.
• Governmental activities realized an increase in total net position of $18,009,498 and business -type
activities realized an increase in total net position of $2,147,780 bringing the total increase in net
position for the City to $20,157,278.
• At the close of the current fiscal year, the City of Euless' governmental funds reported combined
ending fund balances of $109,950,038 which represents an increase of $29,083,594. Within this
total, $4,884,252 is restricted for debt service; $36,154,995 is restricted by bond covenants for
capital projects; $82,803 and $219,420 are restricted for court technology and juvenile case
management, respectively; and another $2,306,211 is restricted for capital projects by developer
agreements. Amounts restricted for cable PEG fees and historical preservation total $599,369 and
$843, respectively. Another $29,139 is restricted for opioid remediation. Nonspendable fund balance
of $269,413 represents fund balance amounts for inventories and prepaid items.
5
Fund balances of $41,600,323 represent assigned fund balance in the general, special revenue, and
capital projects funds. The unassigned fund balance in the General Fund of $23,803,270 can be used
for any lawful purpose. The General Fund unassigned balance represents 46% of fiscal year 2023
total fund expenditures.
• The City's total capital and intangible assets (net of accumulated depreciation and amortization)
increased by $305,078 which is attributed to completion of capital improvement projects and other
asset additions including construction in progress exceeding current year depreciation expense and
asset retirements.
• The City's debt payable increased by $14.8 million or 16% due primarily to the issuance of
certificates of obligation and software subscription debt less scheduled principal payments and
annual amortization of premiums and discounts on debt issuances.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless' basic financial
statements which 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 required
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 position presents information on all of the City of Euless' assets and deferred
outflows of resources and liabilities and deferred inflows of resources, with the difference between them
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City of Euless is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the
fiscal year. All changes in net position 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 receipts and cash outlays in future fiscal
periods (e.g., uncollected taxes and earned but unused compensated absences).
The government -wide financial statements distinguish between 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 functions of the City include general and administrative,
public safety, highways and streets, development services, and culture and recreation. The business -type
activities of the City include water and wastewater system, drainage system, golf course, and other
recreational enterprises.
The government -wide financial statements include not only the City of Euless (the primary
government), but also the Euless Development Corporation, the Crime Control and Prevention
District, the Tax Increment Reinvestment Zone #3 — Glade Parks, and Tax Increment Reinvestment
Zone #4 — Midtown which are legally separate entities that are financially accountable to the City. A
blended presentation has been used to report the financial information of these component units.
6
The government -wide financial statements can be found on pages 20-21 of this report.
Fund Financial Statements. A fund is a self -balancing set of 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 with the exclusion of
internal service fund activity. 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 changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains twenty-four individual governmental funds. Information is presented separately in
the governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General, Debt Service, Car Rental Tax, and Police
CIP funds, all of which are considered to be major funds. Data from the other twenty governmental
funds are combined into a single, aggregate presentation. Individual fund data for each of these non -
major governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General and Car Rental Tax major governmental
funds. A budgetary comparison schedule has been provided for each fund to demonstrate compliance
with the adopted budgets.
The basic governmental fund financial statements can be found on pages 22-29 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 wastewater, drainage utility, golf
operations, and other recreation enterprises. Internal service funds are an accounting device used to
accumulate resources 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
services. Because these services predominately benefit governmental rather than business -type
functions, a portion of the activities in these funds is included within governmental activities in the
government -wide financial statements.
7
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 Wastewater, Drainage Utility, Golf, and Other Recreation enterprises all of which are considered to
be major funds of the City. 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 30-35 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 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 pages 36 and 37 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 39-86 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
obligations to provide pension and post -employment healthcare benefits to its employees. Additionally,
schedules comparing budgetary figures and actual results of the General and Car Rental Tax funds are
also located in this section of the report. Required supplementary information can be found on pages
89-96 of this report.
The combining statements referred to earlier in connection with non -major governmental funds and
internal service funds are presented immediately following the required supplementary information on
pensions, OPEB, and budgetary comparisons. Combining and individual fund statements and schedules
can be found on pages 98-122 of this report.
Government -Wide Financial Statement Analysis
As noted earlier, net position and especially net position by category may serve over time as a useful
indicator of a government's financial position. In the case of the City of Euless, assets and deferred
outflows of resources exceeded liabilities and deferred inflows of resources by $316,419,884 as of
September 30, 2023.
The largest portion of the City's net position (64%) reflects its investment in capital assets (i.e., land,
buildings, equipment, improvements, construction in progress, and infrastructure) net of accumulated
depreciation, 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 and with the exception of business -type assets, do not generate direct revenue for the City.
They do, however, represent an obligation on the part of the City to maintain these assets into the future.
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.
8
An additional portion of the City's net position (4%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position of
$100,082,853 (32%) may be used to meet the City's ongoing obligations to citizens, creditors, and
employees.
Net Position
Amounts shown in 000's
Governmental Bus ines s-type
activities activities
Totals
2023 2022 2023 2022 2023 2022
Current and other assets $ 158,965 $ 128,480 $ 50,979 $ 47,793 $ 209,944 $ 176,273
Capital assets 182,695 180,481 90,901 92,810 273,596 273,291
Total assets 341,660 308,961 141,880 140,603 483,540 449,564
Deferred outflows 19,438 5,613 3,948 1,343 23,386 6,956
Long-term liabilities 128,149 83,580 25,776 22,002 153,925 105,582
Other liabilities 18,058 20,804 12,637 12,129 30,695 32,933
Total liabilities 146,207 104,384 38,413 34,131 184,620 138,515
Deferred inflows 5,405 18,714 481 3,029 5,886 21,743
Net position:
Net investment in
capital assets 130,728 123,862 72,764 73,307 203,492 197,169
Restricted 8,186 7,579 4,659 4,583 12,845 12,162
Unrestricted 70,572 60,035 29,511 26,896 100,083 86,931
Total net position $ 209,486 $ 191,476 $ 106,934 $ 104,786 $ 316,420 $ 296,262
As of September 30, 2023, the City reports positive balances in all three categories of net position, for
the government as a whole, as well as for its separate governmental and business -type activities. The
same was true for the prior year.
The City's unrestricted net position increased by $13,152,220 in fiscal year 2023 as compared to the
unrestricted net position for the prior year. Restricted net position realized an increase of $681,707 and
the amount invested in capital assets, net of related debt increased by $6,323,351. The increase in total
net position of more than $20 million results primarily from current year operating results flowing to the
net investment in capital assets and unrestricted categories of net position. The details of the results of
current year operations are found in the table shown on the following page.
9
Changes in Net Position
Amounts shown in 000's
Governmental Business -type
Activities Activities Totals
2023 2022 2023 2022 2023 2022
REVENUES
Program revenues:
Charges for services $ 6,804 $ 6,174 $ 38,973 $ 37,643 $ 45,777 $ 43,817
Operating grants and
contributions 1,163 1,055 1,163 1,055
Capital grants and
contributions 530 551 1,019 1,255 1,549 1,806
General revenues:
Property taxes 27,569 24,974 27,569 24,974
Sales taxes 29,779 28,693 29,779 28,693
Car rental taxes 18,710 18,373 18,710 18,373
Mixed beverage taxes 215 201 215 201
Occupancy taxes 1,830 1,736 1,830 1,736
Gross receipts taxes 4,634 4,478 - 4,634 4,478
Investment income 5,180 804 1,097 174 6,277 978
Rents and royalties 1,346 1,567 1,346 1,567
Miscellaneous 1,355 1,305 - 949 1,355 2,254
Total revenues 99,115 89,911 41,089 40,021 140,204 129,932
EXPENSES
Culture and recreation 8,017 7,714 8,017 7,714
Development services 1,304 934 - 1,304 934
General government 31,849 24,294 - 31,849 24,294
Highways and streets 4,591 4,016 4,591 4,016
Public safety 33,625 27,380 33,625 27,380
Interest and fiscal charges 2,414 2,417 - 2,414 2,417
Water and wastewater - 29,143 26,754 29,143 26,754
Drainage utility 1,747 1,517 1,747 1,517
Golf course - 5,330 4,704 5,330 4,704
Recreation enterprises - 2,026 2,024 2,026 2,024
Total expenses 81,800 66,755 38,246 34,999 120,046 101,754
Increase (decrease) in net
position before transfers 17,315 23,156 2,843 5,022 20,158 28,178
Transfers 695 (6,698) (695) 6,698
Increase (decrease) in net
position 18,010 16,458 2,148 11,720 20,158 28,178
Net position, beginning 191,476 175,018 104,786 93,066 296,262 268,084
Net position ending $ 209,486 $ 191,476 $ 106,934 $ 104,786 $ 316,420 $ 296,262
• Governmental activities. Governmental activities increased the City's net position by $18,009,498
thereby accounting for most of the growth (89%) in total net position. With the exception of rents
and royalties, all revenue categories exceeded those of the prior fiscal year. At fiscal year-end, a
majority of the American Rescue Plan Act (ARPA) funding remained unspent resulting in unearned
revenue per reporting requirements. Sound fiscal management and close monitoring of revenues and
expenses allowed the City to realize an increase in governmental activities net position before
transfers of $17,314,247.
10
Total revenue for the governmental activities (excluding transfers) increased from the previous year
by $9.2 million mainly due to a net increase in general revenues of $8.5 million combined with
increased program revenues of approximately $718,000. General revenues are primarily comprised
of property taxes, sales taxes, and car rental taxes. Property tax revenue increased due to an overall
increase in taxable values of 11.9% over the prior year values (See Statistical Table 5). Sales taxes
increased by nearly $1.1 million as a result of continued local economic recovery, new business
openings, and the resurgence in the travel industry. Most businesses located in the Euless portion of
the airport realized sales tax growth during the fiscal year. The travel resurgence also resulted in
increased car rental taxes which reached an all-time high of $18 7 million by the end of the fiscal
year. Total governmental program revenues consist of charges for services, grants, and contributions
which realized an increase of nearly $718,000 overall. Culture and recreation revenues fell by more
than $26,000 due to a dip in swimming pool fees. Development services revenues were nearly spot
on with the prior year collections (declining less than $5,000). Public safety charges for services
increased by $1.8 million for the year due predominantly to funding a portion of patrol salaries with
ARPA funds. Conversely, operating contributions declined by $86,000 due to reduced emergency
management reimbursements that were partially offset by grants for bullet resistant shields and
selective traffic enforcement programs. Streets and highways realized a decrease of $429,000 in
charges for services resulting from a reduction in the Midtown PID assessment. Additional tax
increment property tax collections account for the decrease in the amount needed from the PID
assessment to cover debt service payments. The operating contribution for streets and highways
results from a collaborative project with the City of Bedford for intersection improvements to
Cheek-Sparger Road at State Highway 121.
• Total expenses of governmental activities increased by $15 million from FY2022 to FY2023. The
FY2023 Operating Budget included a 7% raise package plus merit increases averaging 3% for
employees across all funds. These raise packages increased governmental salary expenses by about
$1.9 million across all governmental functions. Benefits based upon salaries also increased
accordingly. The last position cut during the pandemic was restored to Finance during the year.
Three field technicians and the upgrade of a part-time position to full-time also added to salary and
benefit expenses in FY2023. Pension -related entries decreased salary -related expenses in the prior
year, but increased governmental expenses by approximately by $2.5 million in FY2023. The overall
difference between the two years' expenses totals more than $7.5 million mostly due to the recording
of changes in and amortization of deferred outflows and deferred inflows ($32.5 million decrease)
combined with an increase of almost $40 million in the net pension liability. OPEB-related expenses
which includes the change in the net OPEB liability, related deferred inflows and deferred outflows,
as well as the amortization of the deferrals decreased salary -related expenses by approximately
$553,000 compared to a decrease in expenses of $179,000 in the prior year. Rebates increased by
$521,000 as a result of increased sales, occupancy, and car rental taxes. Maintenance services
decreased by more than $2.1 million due to the allocation of internal service fund activity.
Professional services increased by $95,000 due to consulting services and commercial plan review
resulting from staffing shortages. Insurance and prescription claims increased by $1.2 million
predominantly due to a number of high claimants. While stop loss coverage reimbursed a large
portion of the claims, the City incurred a deductible of $125,000 per claimant. Supplies expense rose
by $206,000 due to higher costs in athletic field supplies, bunker gear, and electric service costs.
Interest increased by $233,000 because of higher scheduled payments and bond issuance costs. The
net position of general governmental operations accounts for 66% of total net position.
11
• Business -type activities. Business -type activities increased the City's net position by $2,147,780.
The change in net position before transfers is $2,843,031. Charges for services program revenues
for the business -type activities increased from the previous year by $1.3 million due primarily to
increased Water and Wastewater ("W&WW") revenues and recreation revenues of $1.4 million and
$96,000, respectively. Water rates increased $1 on the monthly residential base rate to cover the
City's operational cost increases. Volumetric rates for water increased 560 per thousand gallons to
cover the pass -through increase from Trinity River Authority ("TRA") for water purchases.
Wastewater base rates increased by $1 per month to cover the City's operational cost increases. The
volumetric rate increased by 190 per thousand gallons to cover the pass -through increase from TRA
for treatment costs. Rather than receiving a refund for wastewater, the annual true -up of costs with
TRA subjected the City to additional costs of $151,000. On the other hand, the City received almost
$766,000 from TRA for the annual water cost true -up. In the current year, golf course rounds were
slightly above those of the prior year and green fees increased by $30,000. Capital grants and
contributions decreased by close to $236,000 due largely to a decline in developer contributions of
W&WW infrastructure combined with a small increase in developer contributions of drainage assets.
Investment revenues increased by $923,000 due to much -improved market rates as well as the
availability of additional funds to invest.
• Overall, total business -type expenses realized a net increase for the year of $3.25 million combined.
Net pension, net OPEB, and related deferral entries increased expenses by more than $300,000 in the
business -type activities this year compared to a decline of approximately $1 million in the prior year.
Water purchases and wastewater treatment costs climbed from the prior year as a result of increased
TRA rates. Increased costs of $627,000 at the golf course resulted mostly from higher costs for
salaries, benefits, and supplies. Drainage utility realized an expense increase of almost $229,000,
while other recreation enterprises expenses were nearly flat with the prior year. Net position for
business -type activities represents 34% of total net position.
Financial Analysis of the City's Funds.
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
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, unassigned 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 $109,950,038, which represents an increase of $29,083,594 in comparison with prior
year. Approximately 22% or $23.8 million constitutes unassigned fund balance in the general fund that
is available for spending at the City's discretion. Another $269,413 in non -spendable fund balance
represents amounts invested in inventories and prepayments. Another portion is restricted to indicate
that it is not available for new spending because it has already been committed 1) to pay debt service
($4,884,252); 2) to pay for specific capital improvements per developer agreements ($2,306,211);
3) restricted by bond covenants for specific capital projects ($36,154,995); and 4) for a variety of other
restricted purposes ($931,574). Assigned fund balance includes funds that management intends to use
for a specific purpose as well as any residual balances of governmental funds other than the general
fund. Assigned fund balance totals $41,600,323 and includes assigned fund balance in the general fund
of $203,295 and $41,397,028 represents residual balances in other governmental funds. See discussion
under Fund Balance Classifications in Note 1 of the Notes to Basic Financial Statements for additional
details.
12
General fund budgetary analysis. In the General Fund, the City budgeted for a decrease in fund
balance (i.e. a planned reduction) of $8,820,400 (revised). Due to a positive budget variance in overall
revenues and expenditures, the General Fund ended the year with a decrease in fund balance of only
$930,204. This figure represents a positive budget variance of $7,890,196 resulting primarily from sales
tax collections, natural gas franchise fees, rental income, building permit revenue, investment income,
and intergovernmental revenue realizing significant increases over expectations. The improvement in
sales tax collections results from new business openings and continued improvement in the local
economy. Natural gas franchise fees rose due to increased billings and collections by the provider.
Rental income exceeded budget expectations because the income from one building is contingent upon
the amount of sales tax collected by the occupant. Due to the volatile nature of the contingency, nothing
is included in the budget for this building rental. For several years, building permit revenue has
exceeded projected levels. Management intentionally decided to conservatively budget this revenue
stream so that the City does not become overly dependent upon a finite revenue source. As the City
nears build -out, building permit collections will decline until reaching a point more aligned with
reconstruction and renovation levels. Permits for new construction will decline drastically over time.
Investment income results from much -improved market rates and additional funds available for
investment. The allocation of ARPA funding to cover a portion of patrol salaries throughout the year
results in increased intergovernmental revenue. This funding was originally budgeted as a transfer but
was actually recorded as intergovernmental revenue pursuant to ARPA requirements.
General fund budgetary expenditure savings total $3.6 million before transfers. General and
administrative ("G&A") expenditures account for approximately $2.2 million of the savings. The
finance department, which is included in G&A, had two open positions for several months of the fiscal
year with savings of about $115,000. Information services accounts for $130,000 in savings from
subscription arrangements and machinery and equipment. Human resources budgetary savings were
realized in tuition reimbursement and training and testing. The overall largest G&A savings were
recorded in non -departmental. Retiree adjustments ($50K savings) provided funding for final
expenditures for current year retirees. Departmental budgets were sufficient to cover these costs so the
non -departmental funds were not needed. Salary adjustments realized savings of $240,000. These funds
provided monies for out -of -cycle pay raises for positions realizing significant turnover or the potential
thereof. Recruiting and retaining quality, knowledgeable employees is a high priority for the City. The
contingencies budget was increased by $150,000 due to recessionary and inflationary concerns. Only
about 30% of the budget was used from this account. The THE transit system is performing analysis on
the best method of charging surrounding cities for services provided. As such, no payment was due for
FY2023, thereby saving the City $120,000. The budget for electric service grew due to an anticipated
rate increase, however, the rate was less than projected. Approximately $314,000 in savings was realized
in computer equipment most of which was due to the on -going fiber optic project Almost $210,000 was
rolled to FY2024 for the completion of this project. Capital purchases realized budgetary savings of
almost $919,000; $705,000 of which was rolled to FY2024 for continuing projects at fiscal year-end.
Public safety expenditures came in $908,000 underbudget due primarily to open positions throughout
the fiscal year. Most public safety salary and related benefit accounts were underbudget at fiscal year-
end. However, overtime costs increased due to staffing levels and minimum requirements. Most of the
savings in highways and streets ($278K) results from salary and benefit savings, with the exception of
stand-by pay and overtime expenditures. Culture and recreation realized budgetary savings in salary and
related benefits, mowing and tree trimming costs, and land betterment. The personnel savings account
for approximately 54% of the total culture and recreation expenditures. Again, this results mainly from
open positions throughout the fiscal year.
13
General fund. Several general fund revenue categories realized increases over the prior year including
property tax collections, general sales tax receipts, franchise fees, investment earnings, and
intergovernmental revenue. General sales tax collections increased by almost $663,000 as result of
continued recovery in the local economy, new business openings, and a resurgence in the travel industry.
Taxable property values increased over the prior year values by 11.9%, while the tax rate dropped from
47.50 to 460 per $100 of taxable property valuation. The resulting increase in property tax collections of
nearly $546,000 offset a reduction of $131,000 in fines and fees. Municipal court fines dropped by
$150,000 from FY2022 to FY2023 due to a decline in case volume of over 17%. Gross receipts taxes
(i.e. franchise fees) rose by $177,000 in total. Gas franchise fees grew due to an increase in billings and
collections by the provider. Water and wastewater gross receipts taxes exceeded those of the prior year
by $93,000 due to additional revenues generated from rate increases. Market rates as well as investment
portfolio yields increased throughout the fiscal year. A resulting uptick in investment income of almost
$603,000 was realized. As mentioned previously, ARPA funding accounts for the growth in
intergovernmental revenues. Total revenues surpassed prior year levels by nearly $3.3 million.
Expenditures increased almost $7.9 million or 18% over the prior year. Most of the increase is realized
in G&A and public safety expenditures. The employee raise packages previously mentioned combined
with funding of a reinstated/new positions along with rising benefit costs increased total salary and
benefit expenditures in the general fund approximately $2.3 million over the prior year. Many of the
City's benefits are salary -based and increase automatically when any type of raise becomes effective.
Non -departmental expenditures, which are classified in the G&A expenditure category, increased by
$1.9 million. A portion of the increase is due to additional computer hardware expenditures of $561,000
in the fiber optic project. Software subscriptions account for a $657,000 cost increase in non -
departmental. The replacement of aging software in planning and development and municipal court
accounts for a large portion of this increase over prior year levels. One-time purchases increased by
$561,000 due the cost and composition of the requests approved and is limited by the funding available
for such projects. Rebates and incentives increased $287,000 over the prior year due to growth in sales
tax receipts and property tax collections. Public safety expenditures increased over prior year levels by
$2.1 million and is primarily attributable to salaries and benefits ($1.6 million) as previously described.
Expenditures for supplies rose by $76,000 due in large part to the purchase of bunker gear. Transfers to
the equipment replacement internal service fund increased close to $398,000 due to the equipment and
vehicles purchased for additional staff approved in the prior year coupled with higher overall
replacement costs. Continued supply chain issues and inflationary pressures resulted in higher than
anticipated vehicle, machinery, and equipment replacement costs. Whenever feasible to do so, the City
will extend the useful life of these assets to accumulate additional funding for replacement and/or to wait
for easing of inflationary pressures currently being experienced. Culture and recreation realized an
overall increase in expenditures due to higher costs for equipment replacement, professional services,
and salaries and benefits. Due to staffing shortages throughout the year, planning and development
incurred costs of about $95,000 for consulting services and commercial plan review. The remaining
increase in this department is attributable to salaries and benefits. Debt service expenditures in the
general fund result from principal and interest payments on leases and subscription -based information
technology arrangements.
14
Debt service fund. The Debt Service fund balance increased $473,368 which is $572,664 better than
the anticipated drawdown of $99,296. Compared to the prior year, revenues increased by $1.8 million.
Property taxes increased by $1.4 million over the prior year due in large part to higher taxable values
coupled with an increase in the amount of the tax rate allocated to the interest and sinking fund.
Investment revenues exceeded prior year amounts by $181,000 due to favorable market conditions and
the availability of additional cash. The premium on the issuance of debt increased by $250,000 over the
last year. Expenditures rose by $1.4 million due to scheduled payments exceeding those of the prior
fiscal year.
Car rental tax fund. The Car Rental Tax fund balance was originally anticipated to increase
$1,590,336, but the revised budget showed a projected increase of $317,427. This fund ended the year
with an increase of $4,644,453 resulting primarily from continued improvement in the travel industry.
Car rental tax revenues, which are highly dependent upon the travel industry, exceeded those of the prior
year by $337,000. Investment income was approximately $1 million more than prior year levels due to
favorable market rates combined with an increase in investable balances in this fund. Per contractual
agreement, the car rental revenues are shared with the cities of Dallas and Fort Worth. Increased
collections lead to a $225,000 increase in expenditures, while capital outlay rose by $110,000. Transfers
to other funds increased over the prior year by $199,000 due to a decline in the general fund transfer
combined with increases in transfers for general CIP approved projects and for equipment replacement
purchases.
Police CIP fund. For the police CIP fund, certificates of obligation were issued late in the fiscal year in
the amount of $20.6 million for the police department/municipal court remodel project. A premium of
$1.4 million was recognized on the debt issuance. $960,000 was transferred from the crime control and
prevention district ("CCPD") to cover preliminary design services costs. This fund realized an increase
in fund balance of $22.4 million.
Non -major governmental funds. The non -major governmental funds realized a combined increase in
fund balance of $2,451,389; special revenue funds realized a drawdown of $604,152, while the capital
projects funds contributed $3,055,541 to the balance. The car rental and street CIP funds realized fund
balance decreases as expenditures ramped up on projects funded (at least partially) in the prior fiscal
year. Current year project funding for all CIP funds from transfers totaled $8.4 million while project
expenditures totaled $6.2 million. The redevelopment, half -penny sales tax, general, and developers'
contribution CIP funds all added to the combined CIP fund balance. Hotel/motel collections exceeded
expectations and prior year collections by $318,000 and $94,000, respectively. Hotel/motel fund
expenditures and transfers out were both more than those of the prior year. This fund added $202,000 to
fund balance for the year. The Half -Penny Sales Tax (EDC) fund reduced fund balance by $1.9 million
largely due to increased revenues of $356,000, combined with increased expenditures of $827,000 and
increased transfers to CIP ($3.1 million) for approved capital projects. The CCPD fund drew down fund
balance by $197,000 in the current year as a result of increased revenues ($194,000) coupled with a
transfer out to police CIP of $960,000 for the police department/municipal court remodel project. The
TIRZ #3 Glade Parks and the TIRZ #4 Midtown funds increased fund balance mainly due to property
tax collections and sales taxes receipts from participating entities outpacing debt service expenditures.
Enterprise funds. The City's enterprise fund statements provide the same type of information found in
the government -wide financial statements for business -type activities, but in more detail. Most of the
City's enterprise funds are heavily dependent upon local weather conditions. During the year, rainfall
fell short of that of a "normal" year by more than eight inches and was also short of prior year levels just
over one inch.
15
The W&WW fund realized a decline in operating income of $344,000 resulting principally from
increased operating revenues combined with an increase in expenses of $2.2 million. The W&WW fund
revenues increased $1.86 million largely as a result of volumetric rate increases in water consumption
and wastewater treatment passed through from TRA. Residential base rates also increased $1 per month
for both water and wastewater to cover the City's increased operating costs. Water purchases and
wastewater treatment costs rose by just over $1 million combined. Salary and benefit expenses
(excluding non -departmental) increased by more than $356,000 due to the raises previously mentioned.
Non -departmental expenses increased by $760,000 overall. Salary and benefit expenses in this
department grew by more than $1 million primarily due to changes in the net pension liability (asset in
the prior year) and the net OPEB liability, related current year deferred inflows and outflows, as well as
the amortization of the deferrals. These entries account for about 75% of the growth; while the
remaining 25% is due to the raise packages and benefit increases mentioned elsewhere in this report.
Franchise and administrative fees increased by $93,000 each from the prior year; electric service rose by
$59,000; and software subscriptions increased by $46,000. Including nonoperating and other revenues
and expenses, an increase of more than $1.2 million was realized in the W&WW fund for FY2023.
The golf course realized revenues of $5.2 million and expenses of $5.5 million leading to an operating
loss of $377,000. Last year, operating income was $395,000 which equates to a difference of $772,000.
Paid golf rounds were slightly higher than those of the prior year. Entries relating to net pension and net
OPEB liabilities and related deferrals increased salary expenses by almost $52,000 as compared to last
year's decrease of $144,000. Other salary and related benefits increased due to employee raises which
added $417,000 to operating costs. Increases in user fee transfers to equipment replacement totaled
$28,000; while cost of goods sold increased by $66,000 for food, beverage, and alcohol sales due to
higher sales volumes and inflation. The golf course added $479,000 to net assets for FY2023.
The decrease in net position of the drainage utility fund results largely from the reduction in revenues
from Grapevine/Colleyville ISD's participation in the Bear Creek Elementary drainage improvement
project. In the prior year, collections totaled $271,000 while the current year amount was only $29 (i.e.
the project was substantially complete in FY2022). Operating costs increased by $211,000. The
drainage utility fund recorded a loss of net assets in the amount of $649,000. Other recreation
enterprises operating revenues increased by $95,000, while operating expenses increased $54,000.
Costs increases include instructor fees, umpire fees, supplies, and cost of goods sold. User fees paid to
the equipment replacement fund declined. Arbor Daze contractual services costs realized an increase of
$50,000. The net result of the other recreational activity was a loss of $84,000.
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, 2023, totaled $273,596,125 (net of accumulated depreciation and amortization).
The investment in capital assets includes land, buildings, improvements, machinery and equipment,
infrastructure, intangible assets, and construction in progress. The net increase in the City's investment
in capital assets for the current fiscal year was $305,078 or about .1%. Major capital asset activity that
occurred during the current fiscal year included the following:
• Capital asset contributions were comprised of $921,000 in developer dedications of streets, water
and wastewater infrastructure, drainage structures and land. Community Development Block Grant
("CDBG") funding of wastewater lines totaled just over $442,000.
16
• Capital asset additions for governmental activities include, but are not limited to, a dome shelter for
the street department, an access control system for fire station #1, and appliances for fire station #1.
Completed projects for the year include fire station #1, FY2022 and FY2023 street improvement
projects, PATS North parking lot, aquatic park upgrades, Midway pickleball court, and trail lighting.
• Construction -in -progress related to general government activity of $16,128,702 chiefly consists of
the following projects: fire station #2 ($1.1M), FY2019 street reconstruction ($12M), city-wide fiber
optic project ($596K), police and courts remodel design ($594K), and PATS North remodel
($239K). Blessing Branch and Wilshire park improvements are also currently underway and have
incurred expenditures of $959,000.
• The Westpark Way valve replacement project was completed at a cost of $180,000. Wastewater
lines in the Midway Park 3rd addition were also finished this fiscal year. The Far North and Fuller
well replacement project, including a pump station and SCADA system at each location, was
finalized by fiscal year-end.
• Construction -in -progress related to business -type operations of $1,387,836 principally consists of
water line replacements along Huntington Drive and along South Main street, at Midway Park 1st
addition, and at Oakwood Terrace. Wastewater line replacements in progress at the end of the year
include Cedar Hill Estates, Euless Square and Aransas (CDBG), and Trailwood addition.
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000's
Land
Buildings
Other improvements
M&E
Infrastructure
Right -to -use equipment
Right -to -use software
Construction in
Progress
Totals
Govemmental
activities
2023 2022
$ 43,526 $ 42,947
40,258
15,654
13,634
53,134
136
224
36,358
15,750
11,835
53,459
198
Business -type
activities Totals
2023 2022 2023 2022
$ 5,719 $ 5,719 $ 49,245 $ 48,666
4,283 1,179 44,541 37,537
7,649 8,189 23,303 23,939
1,020 1,185 14,654 13,020
70,685 65,630 123,819 119,089
148 203 284 401
9 - 233
16,129 19,934 1,388 10,705 17,517 30,639
$ 182,695 $ 180,481 $ 90,901 $ 92,810 $ 273,596 $ 273,291
Additional information on the City's capital assets can be found in Note 3 on pages 60-61 of this report.
Long-term debt. At fiscal year-end, the City's outstanding debt totaled $102,892,424 net of
unamortized losses on prior refundings. Of this amount, $82,235,981 comprises debt backed by the full
faith and credit of the government, where $3,375,304 is the amount of self -supported debt for Texas Star
Golf Course and Stars Center. The remainder of the City's debt, $20,656,443, represents bonds secured
solely by specific revenue sources (i.e. revenue bonds).
17
Outstanding Debt
Amounts shown in 000's
GO bonds
COs
GO/CO deferred loss
Taxnotes
Leases
Subscriptions
Revenue bonds
Revenue deferred loss
Totals
Governmental
activities
2023 2022
$ 1,870 $ 3,010
70,675
(51)
7,165
136
224
4,800
$ 84,819
Business -Type
activities
2023 2022
$ 2,245 $ 2,775
52,560 -
(92) (185)
9,155 -
198 149
9
5,025 15,875
(19)
$ 69,856 $ 18,074
(232)
203
16,835
(37)
$ 19,544 $
Totals
2023
$ 4,115
70,675
(236)
7,165
285
233
20,675
(19)
102,893
2022
$ 5,785
52,560
(324)
9,155
401
21,860
(37)
$ 89,400
In fiscal year 2023, the City issued $20,620,000 in new certificates of obligation and $352,027 in
subscription liabilities. No new bonded debt was issued for the City's enterprise operations during the
year. The City's total debt increased $13,492,130 (exclusive of deferred losses) or 15.1% during fiscal
year 2023 and is attributed to the addition of the new debt less scheduled annual principal payments and
annual amortization of losses on refundings, premiums and discounts on debt issues.
Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. increased the
City's rating on general obligation debt from AA to AA+. The rating for the water and wastewater
revenue debt remains at AA+. Moody's Investor Service, Inc. rates the general obligation debt, the
water and wastewater revenue debt, and sales tax revenue debt at Aa2. Additional information on the
City's long-term debt can be found in Note 4 on pages 62-69.
Economic Factors and Next Year's Budgets and Rates
In the FY2023-24 budget, general fund revenues and transfers in are budgeted to increase by 7% from
the FY2022-23 original budget. Property taxes account for 41% of budgeted revenues and sales
taxes comprise approximately 33% of budgeted revenues. Certified assessed taxable valuations as of
July 25, 2023 increased 14% from the preceding year. The property tax rate decreased from 46¢ per
$100 of taxable assessed valuation to 45.750 per $100 of taxable assessed valuation for FY2023-24.
In the FY2023-24 budget, total sales tax receipts are projected to increase approximately $775,000 over
the FY2022-23 original projections. The car rental tax receipts are budgeted below prior year actual
collections due mainly to the timing of budget preparation. By the end of FY2022-23, monthly car rental
tax receipts were exceeding pre -pandemic levels and this trend is anticipated to continue into future.
However, the budget preparation work was completed prior to receipt of final collection results for
FY2022-23.
Baseline budgeted expenditures in the General Fund are projected to increase approximately 7% from
the FY2022-23 original budget excluding capital programs. The proposed employee pay plan includes a
baseline salary increase of 3.5% for public safety personnel and funding for merit -based increases for
non-public safety employees. The anticipated average increase for the merit raises is 3.5%. The City
elected to use excess reserves to fund capital needs.
18
For the Water and Wastewater Fund, the FY2023-24 budget includes the continuation of the tiered rate
structure for residential and irrigation water volume billing. Under the tiered structure, customers pay a
graduated volume rate based on varying levels of monthly water consumption. Residential volume rates
range from $5.35 to $7.98 per thousand gallons. A wastewater volume charge of $4.99 per thousand
gallons applies to all customer classes. Residential wastewater volume charges are capped at a
maximum of 12,000 gallons per month. Residential base rates on water and wastewater service both
increased $1 per month. The City maintained annual funding of for pay-as-you-go capital expenses of
$1,100,000. Additionally, funding from the American Rescue Plan Act of 2021 will allow the City to
expand the number of projects under construction in the upcoming fiscal year. Planned projects
primarily include infrastructure improvements such as wastewater lines in Cedar Hill Estates South
Phases I and II and Trailwood Addition as well as water line replacements in Midway Park 1st Addition,
Oakwood Terrace, and along South Main Street.
The Texas Star Golf Course and Conference Centre is a vibrant part of the Euless community. This
secluded facility, located in the midst of the Dallas/Fort Worth Metroplex, is well-known for world class
golf and a challenging course that has been recognized as a premier municipal facility by leading golf
publications, including Golf Digest and Golfweek. Additionally, Raven's Grille and the Conference
Centre continue to receive rave reviews. The Conference Centre has 7,000 square feet of divisible space
and hosts business conferences, weddings, concerts, and other events. Proposed revenues of $5,663,037
and proposed operating expenses of $5,654,171 were approved for FY2023-24.
Request for Information
The financial report is designed to provide 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: Janina Jewell, Director of Finance, at 201 North Ector Drive,
Euless, Texas 76039, call (817) 685-1626, or e-mail jjewell@eulesstx.gov.
19
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
ASSETS
Deposits and investments
Receivables, net of allowances
Lease receivables
Internal balances
Inventories, at cost
Prepaid items
Restricted assets
Deposits and investments
Capital assets
Land and construction in progress
Other capital assets, net of
accumulated depreciation
Intangible assets
Right -to -use assets, net of
accumulated amortization
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension
Deferred outflows related to OPEB
Deferred charges on refunding
Total deferred outflows of resources
LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Accrued interest payable
Unearned revenue
Money held in escrow
Noncurrent liabilities
Due within one year
Due in more than one year
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB
Deferred inflows related to leases
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for
Debt service
Impact fees
Developer agreements
Court technology
Juvenile cases
Cable PEG fees
Historical preservation
Opioid remediation
Unrestricted
Total net position
2,306,211
82,803
219,420
599,369
843
92,824
70,572,250
Primary Government
Governmental Business -type
Activities Activities Total
$108,954,622 $ 26,929,874
13,111,513 5,401,606
4,792,268 356,567
(6,196,439) 6,196,439
8,553 278,559
1,319,115 20,951
$135,884,496
18,513,119
5,148,835
287,112
1,340,066
36,975,397 11,794,843 48,770,240
59,655,008 7,106,381 66,761,389
122,680,983 83,636,482 206,317,465
359,274
341,660,294
18,841,986
545,184
50,763
19,437,933 3,947,732 23,385,665
157,997 517,271
141,879,699 483,539,993
14,822,541
436,426
2,129,395
352,459
317,934
3,628,848 22,470,834
114,799 659,983
204,085 254,848
2,692,241 17,514,782
436,426
272,800 2,402,195
81,118 433,577
7,221,554 7,539,488
2,369,365 2,369,365
6,903,322 1,625,581 8,528,903
121,245,400 24,150,569 145,395,969
146,207,477 38,413,228 184,620,705
612,318 123,916 736,234
4,792,268 356,567 5,148,835
5,404,586 480,483 5,885,069
130,728,192 72,764,199 203,492,391
4,884,252 1,348,271 6,232,523
3,310,647 3,310,647
2,306,211
82,803
219,420
599,369
843
92,824
29,510,603 100,082,853
$209,486,164 $106,933,720 $316,419,884
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
CITY OF EULESS, TEXAS
GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2023
Program Net (Expense) Revenue and
Revenues Changes in Net Position
Primary Government
Operating Capital Business -
Charges Grants and Grants and Governmental Type
Program Activities Expenses for Services Contributions Contributions Activities Activities Total
Primary government
Govemmental activities
Culture and recreation $ 8,016,590 $ 293,667 $ $ - $ (7,722,923) $ $ (7,722,923)
Development services 1,304,416 1,144,743 - (159,673) (159,673)
General and administrative 31,849,368 62,769 17,938 - (31,768,661) (31,768,661)
Highways and streets 4,591,037 287,767 195,450 530,101 (3,577,719) (3,577,719)
Public safety 33,625,098 5,015,159 949,956 - (27,659,983) (27,659,983)
Interest 2,414,153 (2,414,153) (2,414,153)
Total govemmental activities 81,800,662 6,804,105 1,163,344 530,101 (73,303,112) (73,303,112)
Business -type activities
Water and wastewater 29,142,646 30,852,319 930,269 2,639,942 2,639,942
Drainage utility 1,746,667 958,637 88,446 (699,584) (699,584)
Golf course 5,330,321 5,159,600 - (170,721) (170,721)
Other recreation enterprises 2,025,933 2,001,970 - (23,963) (23,963)
Total business -type activities 38,245,567 38,972,526 1,018,715 1,745,674 1,745,674
Total primary government $ 120,046,229 $ 45,776,631 $ 1,163,344 $ 1,548,816 (73,303,112) 1,745,674 (71,557,438)
General Revenues
Taxes
Property taxes, levied for general purposes 27,569,306 - 27,569,306
Sales taxes 29,778,805 - 29,778,805
Car rental taxes 18,709,978 - 18,709,978
Mixed beverage taxes 215,340 - 215,340
Hotel/motel occupancy taxes 1,829,672 - 1,829,672
Gross receipts taxes 4,633,488 - 4,633,488
Investment income 5,180,191 1,097,357 6,277,548
Rents and royalties 1,345,885 - 1,345,885
Miscellaneous 1,354,694 1,354,694
Transfers 695,251 (695,251) -
Total general revenues and transfers 91,312,610 402,106 91,714,716
Change in net position 18,009,498 2,147,780 20,157,278
NET POSITION, beginning of year 191,476,666 104,785,940 296,262,606
NET POSITION, end of year $ 209,486,164 $ 106,933,720 $ 316,419,884
The Notes to the Basic Financial Statements
are an integral part of these statements.
21
CITY OF EULESS, TEXAS
BALANCE SHEET — GOVERNMENTAL FUNDS
SEPTEMBER 30, 2023
ASSETS
Deposits and investments
Receivables
Property taxes
Accounts receivable
Accrued interest receivable
Due from other governments
Lease receivable
Prepaids and deposits
Inventories, at cost
Restricted deposits and investments
Total assets
LIABILITIES
Accounts payable
Contracts payable
Accrued liabilities
Unearned revenue
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes
Unavailable revenue - other
Deferred inflow related to leases
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Prepaids, deposits, and inventories
Restricted for
Debt service
Capital projects
Developer agreements
Court technology
Juvenile case management
Cable PEG fees
Historical preservation
Opioid remediation
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources,
and fund balances
General
Fund
Debt
Service
Fund
Car
Rental Tax
Fund
$ 23,163,715 $ 2,722,639 $ 21,260,637
315,908
632,493
159,576
3,551,844
1,045,900
248,641
8,553
84,751
8,635
2,061,603
128,476
3,204,919
$ 29,126,630 $ 4,877,628 $ 24,594,032
$ 2,002,292 $ 18,065 $ 11,251,328
993,769
2,996,061 18,065 11,251,328
315,908
393,060
1,045,900
1,754,868
257,194
82,803
29,139
203,295
23,803,270
24,375,701
81,777
2,061,603
2,143,380
2,716,183
13,342,704
2,716,183 13,342,704
$ 29,126,630 $ 4,877,628 $ 24,594,032
The Notes to the Basic Financial Statements
are an integral part of these statements.
22
Police
CIP
Fund
Non -major
Governmental
Funds
$ - $ 31,907,480
192,733
735,018
75,278
2,107,253
1,684,765
12,219
22,517.428 14,146,833
22,517,428 $ 50,861,579
72,840 $
72,840
1,136,546
436,426
140,823
352,934
2,066,729
Total
Governmental
Funds
$ 79,054,471
593,392
1,376,146
363,330
8,864,016
4,792,268
260,860
8,553
36,664,261
$ 131,977,297
$ 14,481,071
436,426
1,134,592
352,934
16,405,023
- 397,685
39,223 432,283
1,684,765 4,792,268
1,723,988 5,622,236
12,219 269,413
- 2,168,069 4,884,252
22,444,588 13,710,407 36,154,995
- 2,306,211 2,306,211
- - 82,803
219,420 219,420
599,369 599,369
843 843
- 29,139
28,054,324 41,600,323
23,803,270
22,444,588 47,070,862 109,950,038
$ 22,517,428 $ 50,861,579 $ 131,977,297
23
THE CITY OF
EULESS
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
Total fund balances - governmental finds $ 109,950,038
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets of governmental funds are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 175,678,796
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.
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.
(352,459)
32,664,258
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the find financial statements. 864,968
Funds comprising the net OPEB liability ($8,259,771), deferred inflows
($612,318) and deferred outflows $545,184 of resources related to the OPEB
are not current financial resources and therefore are not reported in the
governmental finds balance sheet.
Funds comprising the net pension liability ($29,036,476) and deferred outflows
$18,841,986 of resources related to the pension are not current financial
resources and therefore, are not reported in the governmental funds balance sheet.
Long-term liabilities, including bonds payable, deferred charges on refindings, and
compensated absences (excluding those of internal service funds) are not due and
payable in the current period and therefore, are not reported in the find financial
statements.
(8,326,905)
(10,194,490)
(90,798,042)
Net position of governmental activities $ 209,486,164
The Notes to the Basic Financial Statements
are an integral part of these statements.
25
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2023
Debt Car
General Service Rental Tax
Fund Fund Fund
Revenues
General property tax $ 19,924,167 $ 5,128,282 $
Gross receipts tax 4,561,441 -
Mixed beverage tax 215,340
General sales tax 18,160,781
Car rental tax - 18,709,978
Fines and fees 3,521,246
Licenses and permits 1,117,424
Investment income 776,630 322,569 1,168,749
DEA revenues - -
Intergovernmental 2,576,230
Rents and royalties 446,794
Other revenues 1,245,291
Total revenues 52,098,550 5,897,645 19,878,727
Expenditures
Current
Culture and recreation 3,745,509
Development services 961,916
General and administrative 13,726,515 - 12,583,319
Highways and streets 1,556,124
Public safety 29,612,570
Debt service
Principal 171,466 5,635,000
Interest and fiscal charges 1,301 2,389,945
Capital outlay 2,081,522 -
Total expenditures 51,856,923 8,024,945 12,583,319
Excess (deficiency) of
revenues over (under) expenditures 241,627 (2,127,300) 7,295,408
Other financing sources (uses)
Issuance of subscription debt 323,561 -
Issuance of debt -
Premiums on issuance of debt 250,433
Proceeds from sale of assets 2,618
Transfers in 1,627,682 2,350,235
Transfers out (3,125,692) - (2,650,955)
Total other financing sources (uses), net (1,171,831) 2,600,668 (2,650,955)
Net change in fund balances (930,204) 473,368 4,644,453
Fund balances, beginning of year 25,305,905 2,242,815 8,698,251
Fund balances, end of year $ 24,375,701 $ 2,716,183 $ 13,342,704
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
Police
CIP
Fund
Non -major
Governmental
Funds
$ 2,541,752
1,901,719
11,618,024
78,668 1,827,701
35,377
531,033
131,096
343,847
78,668 18,930,549
594,080
594,080
(515,412)
20,620,000
1,380,000
960,000
22,960,000
22,444,588
3,495,757
225,461
2,541,481
393,873
3,259,376
229,856
173,975
6,544,409
16,864,188
2,066,361
14,233
59,295
8,435,511
(8,124,011)
385,028
2,451,389
Total
Governmental
Funds
$ 27,594,201
6,463,160
215,340
29,778,805
18,709,978
3,521,246
1,117,424
4,174,317
35,377
3,107,263
577,890
1,589,138
96,884,139
7,241,266
1,187,377
28,851,315
1,949,997
32,871,946
6,036,322
2,565,221
9,220,011
89,923,455
6,960,684
337,794
20,620,000
1,630,433
61,913
13,373,428
(13,900,658)
22,122,910
29,083,594
44,619,473 80,866,444
$ 22,444,588 $ 47,070,862 $ 109,950,038
27
THE CITY OF
EULESS
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, 2023
Net change in fund balances - total governmental funds $ 29,083,594
Amounts reported for governmental activities in the statement of activities are different because:
Governmental fiords report capital outlays as expenditures. However, in the statement of activities the
cost of those assets is allocated over the estimated useful lives and reported as depreciation expense.
This is the amount of capital expenditures recorded in the current period.
Governmental fiords report cash proceeds from the disposal of capital assets as revenues, while only
the net gain/loss on the transaction is reported in the statement of activities and capital contributions
are not reported in governmental finds. This is the amount of capital contributions and disposals
recorded in the current period.
Depreciation and amortization expense on capital and intangble assets is reported in the statement of
activities but does not require the use of current financial resources. Therefore, depreciation and
amortization expenses are not reported as expenditures in the governmental fluids.
The issuance of long-term debt provides current financial resources to governmental funds, but has no
effect on net position.
The repayment of the principal of long-term debt consumes current financial resources of
governmental fiords, but has no effect on net position.
Governmental fluids report the effect of premiums, discounts, and deferred charges on refunding when
debt is first issued, whereas the amounts are deferred and amortized in the statement of activities.
Current year changes in the long-term liabilities for compensated absences do not require the use of
current financial resources; therefore, they are not reported as expenditures in governmental fluids.
Current year changes in accrued interest payables do not require the use of current financial resources;
therefore, they are not reported as expenditures in governmental fluids.
Changes in the net OPEB liability and related deferred inflows and outflows not recognized on the
fund financial statements under the modified accrual basis are recognized on the accrual basis in the
government -wide financial statements.
Changes in the net pension liability (asset) and related deferred inflows and outflows not recognized on
the fund financial statements under the modified accrual basis are recognized on the accrual basis in
the government -wide financial statements.
Internal service fiords are used by management to charge the costs of certain activities, such as
insurance and fleet management, to individual fluids. The net revenue of the internal service fiords is
reported with governmental activities net of the amount allocated to business -type activities.
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.
9,220,011
(769,314)
(7,148,868)
(20,957,794)
6,036,321
(1,483,870)
(76,643)
(86,581)
552,792
(2,159,070)
6,353,199
(554,279)
Change in net position of governmental activities $ 18,009,498
The Notes to the Basic Financial Statements
are an integral part of these statements.
29
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
SEPTEMBER 30, 2023
ASSETS
Current assets
Deposits and investments
Accounts receivable and unbflled revenue
less allowance for uncollectibles of
$23,690 for water and wastewater and
$580 for drainage utility
Accrued interest receivable
Lease receivable
Prepaids and deposits
Inventory
Total unrestricted current assets
Restricted deposits and investments
W&WW impact fees
Capital projects
Revenue bond reserve for debt service
Total restricted assets
Total current assets
Non -current assets
Lease receivable
Property, plant, and equipment in service, at cost
Land
Building
Equipment
Improvements
Construction in progress
Utility system
Total property, plant, and equipment in service
Less accumulated depreciation
Net property, plant, and equipment in service
Intangible assets
Right -to -use equipment
Right -to -use software
Total right -to -use assets
Less accumulated amortization
Net right -to -use assets
Total non -current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension
Deferred outflows related to OPEB
Deferred charges on refunding
Total deferred outflows of resources
Water and
Wastewater
$ 20,594,233
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Drainage Golf Recreation Enterprise Service
Utility Course Enterprises Funds Funds
$ 1,241,020 $ 3,409,215 $ 1,685,406 $ 26,929,874 $ 29,900,151
4,915,373 114,028 225,528 28,553 5,283,482
118,124 - - 118,124
- - 5,827 5,827
13,995 - 6,956 - 20,951
138,131 - 100,464 39,964 278,559
25,779,856 1,355,048 3,742,163 1,759,750 32,636,817
3,310,647
7,135,925
1,348,271
11,794,843
37,574,699
3,676,667
3,324,896
1,153,713
1,097,774
1,387,836
109,873,225
120,514,111
54,113,675
66,400,436
24,238
14,233
38,471
16,430
22,041
66,422,477
103,997,176
1,355,048
559,826
10,380
1,245,584
31,545,451
33,361,241
18,974,723
14,386,518
14,386,518
15,741,566
3,310,647
7,135,925
1,348,271
11,794,843
3,742,163 1,759,750 44,431,660
1,661,431
253,198
1,058,255
32,873,035
311,136
311,136
33,184,171
350,740 350,740
897,520 584,532 5,718,545
3,621,666 488,275 7,434,837 -
535,782 1,638,485 3,338,360 18,743,829
8,963,462 9,989,968 21,296,788
1,387,836
141,418,676
14,018,430 12,701,260 180,595,042 18,743,829
9,460,681 7,303,100 89,852,179 11,727,360
4,557,749 5,398,160 90,742,863 7,016,469
157,878 45,014 227,130
14,233
157,878 45,014 241,363
45,442 21,494 83,366
112,436 23,520 157,997
4,670,185 5,772,420 91,251,600 7,016,469
8,412,348 7,532,170 135,683,260 40,200,640
2,746,458 319,224 473,289 89,877 3,628,848
84,480 11,420 16,259 2,640 114,799
18,557 - 185,528 204,085
$ 2,849,495 $
330,644 $ 675,076 $ 92,517 $ 3,947,732 $
The Notes to the Basic Financial Statements
are an integral part of these statements.
30
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION - PROPRIETARY FUNDS - CONTINUED
SEPTEMBER 30, 2023
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable
Accrued salaries and wages
Current portion of bonds payable
Current portion of compensated absences
Current portion of lease liability
Current portion of subscription liability
Accrued insurance claims
Unearned revenue
Accrued interest
Total current liabilities
Non -current liabilities
Customer and escrow deposits
Net pension liability
Net OPEB liability
Bonds payable
Compensated absences
Lease liability
Subscription liability
Total non -current liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB
Deferred inflows related to leases
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for
Impact fees
Debt service
Unrestricted
Total net position
Water and
Wastewater
$ 2,512,494
156,101
965,000
30,770
5,827
4,634
7,135,925
74,266
10,885,017
2,214,682
4,185,129
1,135,754
14,897,139
276,930
6,837
4,743
Business -Type Activities -
Enterprise Funds
Drainage
Utility
Golf
Course
$ 617 $ 130,467 $
18,839 84,648
540,000
2,597 7,054
39,960
85,629
6,852
22,053 894,610
154,683
443,293 721,196
123,620 237,265
1,780,610
23,376 63,481
72,476
22,721,214 590,289 3,029,711
33,606,231 612,342 3,924,321
90,954 12,347
90,954 12,347
50,556,854 14,386,518
1,061,003
3,310,647
1,348,271
17,933,714
17,670
17,670
Other
Recreation
Enterprises
Total
Enterprise
Funds
Governmental
Activities -
Internal
Service
Funds
48,663 $ 2,692,241 $ 341,470
13,212 272,800 8,803
1,505,000 -
1,301 41,722 367
10,822 56,609 -
4,634 -
986,000
7,221,554 -
81,118 -
73,998 11,875,678 1,336,640
132,742
39,182
11,714
12,698
2,369,365
5,482,360
1,535,821
16,677,749
375,501
92,011
4,743
3,303
196,336 26,537,550 3,303
270,334 38,413,228 1,339,943
2,945
356,567
359,512
123,916
356,567
480,483
2,422,667 5,398,160 72,764,199 7,016,469
2,722,766
1,596,681
3,310,647
1,348,271
23,314,164
31,844,228
$ 73,149,486 $ 15,447,521 $ 5,145,433 $ 6,994,841 100,737,281 $ 38,860,697
Reconciliation to government -wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Net position of business -type activities
6,196,439
$ 106,933,720
The Notes to the Basic Financial Statements
are an integral part of these statements.
31
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION -
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2023
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Water and Drainage Golf Recreation Enterprise Service
Wastewater Utility Course Enterprises Funds Funds
Operating revenues
Water service $ 17,351,940 $ - $ - $ $ 17,351,940 $
Reclaimed water service 930,612 - - 930,612
Wastewater service 10,891,089 - - 10,891,089
Drainage fees - 958,637 958,637
Recreation fees - 666,502 666,502
Insurance premiums - - - - - 7,329,018
Service fees and miscellaneous 2,096,460 - 5,159,600 1,335,969 8,592,029 9,605,763
Total operating revenues 31,270,101 958,637 5,159,600 2,002,471 39,390,809 16,934,781
Operating expenses
General and administrative 549,932 549,932 2,668,197
Water production 10,444,973 10,444,973
Water distribution 1,826,162 - - 1,826,162
Utility engineering 408,425 - - 408,425
Wastewater collection and treatment 6,169,377 6,169,377
Nondepartmental 5,266,809 5,266,809
Geographic information systems 731,027 - - 731,027
Service center 1,263,335 - - 1,263,335
Drainage - 853,049 - 853,049
Recreation classes - - 505,987 505,987
Golf course 1,939,649 1,939,649
Pro shop - - 483,321 483,321
Food and beverage - - 1,520,685 1,520,685
Conference center - - 807,452 807,452
Cart operations 316,983 316,983
Parks at Texas Star - 1,187,134 1,187,134
Arbor Daze - - - 116,716 116,716
Insurance costs - - - - - 7,708,781
Depreciation 2,445,357 848,965 403,124 453,518 4,150,964 1,772,950
Amortization 30,496 65,755 10,765 107,016
Total operating expenses 29,135,893 1,702,014 5,536,969 2,274,120 38,648,996 12,149,928
Operating income (loss) 2,134,208 (743,377) (377,369) (271,649) 741,813 4,784,853
The Notes to the Basic Financial Statements
are an integral part of these statements.
32
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION -
PROPRIETARY FUNDS - CONTINUED
YEAR ENDED SEPTEMBER 30, 2023
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Water and Drainage Golf Recreation Enterprise Service
Wastewater Utility Course Enterprises Funds Funds
Nonoperating revenues (expenses)
Gain (loss) on sale of capital assets $ (417,782) $ - $ $ (501) $ (418,283) $ 60,355
Investment income 869,785 54,042 100,592 72,938 1,097,357 1,005,875
Interest expense (255,341) - (61,441) (154) (316,936) -
Total nonoperating revenues, net 196,662 54,042 39,151 72,283 362,138 1,066,230
Income (loss) before contributions
and transfers 2,330,870 (689,335) (338,218) (199,366) 1,103,951 5,851,083
Developer contributions 930,269 88,446 1,018,715 -
Transfers in - - 817,291 115,140 932,431 1,672,481
Transfers out (2,029,218) (48,464) (2,077,682) -
Net income (loss) 1,231,921 (649,353) 479,073 (84,226) 977,415 7,523,564
Net position, beginning 71,917,565 16,096,874 4,666,360 7,079,067 31,337,133
Netposition, end of year $ 73,149,486 $ 15,447,521 $ 5,145,433 $ 6,994,841 $ 38,860,697
Reconciliation to government -wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 1,170,365
Change in net position of business -type activities $ 2,147,780
The Notes to the Basic Financial Statements
are an integral part of these statements.
33
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2023
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Water and Drainage Golf Recreation Enterprise Service
Wastewater Utility Course Enterprises Funds Funds
OPERATING ACTIVITIES
Cash received from customers $ 31,418,664 $ 1,107,854 $ 5,241,812 $ 2,000,176 $ 39,768,506 $ 15,736,183
Cash payments to suppliers for goods and services (22,493,235) (368,911) (2,686,259) (1,394,877) (26,943,282) (9,824,865)
Cash payments to employees for services (4,091,382) (504,515) (2,267,127) (435,045) (7,298,069) (163,341)
Net cash provided by
operating activities 4,834,047 234,428 288,426 170,254 5,527,155 5,747,977
NONCAPITAL FINANCING ACTIVITIES
Transfer in - 817,291 115,140 932,431 1,672,481
Transfer out (2,029,218) (48,464) - - (2,077,682) -
Net cash provided by (used in)
noncapital financing activities (2,029,218) (48,464) 817,291 115,140 (1,145,251) 1,672,481
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees 144,991 - - 144,991
Acquisition/construction ofcapital/intangible assets (1,691,209) (73,589) (20,251) (46,483) (1,831,532) (2,725,194)
Interest paid on capital debt (257,630) (62,849) (154) (320,633)
Principal paid on capital debt (960,000) (530,000) - (1,490,000) -
Principal paid onleases (5,797) (38,276) (10,766) (54,839) -
Principal paid on subscriptions (4,856) - - (4,856) -
Proceeds from sale of capital assets - - - 99,904
Net cash used in capital
and related financing activities (2,774,501) (73,589) (651,376) (57,403) (3,556,869) (2,625,290)
INVESTING ACTIVITIES
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
Noncash Financing Activities
Contribution of capital assets $ 785,278 $ 88,446 $ - $ - $ 873,724 $
780,786 54,042 100,592 72,938 1,008,358 803,765
780,786 54,042 100,592 72,938 1,008,358 803,765
811,114 166,417 554,933 300,929 1,833,393 5,598,933
31,577,962 1,074,603 2,854,282 1,384,477 36,891,324 24,612,354
$ 32,389,076 $ 1,241,020 $ 3,409,215 $ 1,685,406 $ 38,724,717 $ 30,211,287
Right -to -use assets acquired with subscription financing $ 14,233 $ $ $ $ 14,233 $
The Notes to the Basic Financial Statements
are an integral part of these statements.
34
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS - CONTINUED
YEAR ENDED SEPTEMBER 30, 2023
Reconciliation of operating income (loss)
to net cash provided by
operating activities
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue
Prepaids and deposits
Inventory
Net pension asset
Net OPEB liability
Net pension liability
Deferred outflows
Deferred inflows
Accounts payable
Accrued salaries and wages
Accrued insurance claims
Compensated absences
Customer and escrow
deposits
Unearned revenue
Net cash provided by
operating activities
Reconciliation of cash to balance sheet:
Cash - current
Cash - restricted
Cash and cash equivalents
Water and
Wastewater
Business -Type Activities -
Enterprise Funds
Drainage
Utility
Other Total
Golf Recreation Enterprise
Course Enterprises Funds
Governmental
Activities -
Internal
Service
Funds
$ 2,134,208 $ (743,377) $ (377,369) $ (271,649) $ 741,813 $ 4,784,853
2,475,853 848,965 468,879 464,283 4,257,980
(533,172)
4,233
(2,318)
51,182
(132,424)
4,185,129
(2,027,078)
(1,842,774)
(196,479)
11,675
24,277
149,217 76,082 34,562 (273,311)
2,590 6,823
- 242 (2,806) (4,882)
77,565 42,729 6,153 177,629
(16,282) (23,880) (4,342) (176,928)
443,293 721,196 132,742 5,482,360
(238,578) (337,780) (66,143) (2,669,579)
(243,250) (364,666) (97,635) (2,548,325)
(36,485) 56,942 (25,787) (201,809)
(1,518) 15,668 42 25,867
(5,122) 1,663 834 21,652
45,810 9,320 55,130
635,925 (3,190) 632,735
1,772,950
(1,198,598)
(99,511)
(78,150)
384
566,049
$ 4,834,047 $ 234,428 $ 288,426 $ 170,254 $ 5,527,155 $ 5,747,977
$ 20,594,233 $ 1,241,020
11,794,843
$ 32,389,076 $ 1,241,020
$ 3,409,215 $ 1,685,406 $ 26,929,874
11,794,843
$ 3,409,215 $ 1,685,406 $ 38,724,717
$ 29,900,151
311,136
$ 30,211,287
The Notes to the Basic Financial Statements
are an integral part of these statements.
35
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION — FIDUCIARY FUNDS
SEPTEMBER 30, 2023
Stars Center Escrow OPEB
Custodial Fund Trust Fund
ASSETS
Investments at fair value
Investment pool $ 1,439,448 $ -
Money market account 4,027,423
Fixed income fiords - 2,993,058
Equity funds 4,562,560
Total assets $ 1,439,448 $ 11,583,041
LIABILITIES
Refunds payable $ 18,901 $
Total liabilities 18,901
NET POSITION
Restricted for
Debt service 1,420,547
Other post -employment benefits - 11,583,041
Total net position $ 1,420,547 $ 11,583,041
The Notes to the Basic Financial Statements
are an integral part of these statements.
36
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED SEPTEMBER 30, 2023
Stars Center Escrow OPEB
Custodial Fund Trust Fund
ADDITIONS
Employer contributions $ $ 1,906,655
Other contributions - 252,575
Investment income
Investment income 64,789 1,084,079
Less: investment expense - (67,468)
Net investment income 64,789 1,016,611
Total additions 64,789 3,175,841
DEDUCTIONS
Payments to beneficiaries 64,789
Insurance claims - 1,226,752
Administrative expenses - 171,897
Total deductions 64,789 1,398,649
Change in net position - 1,777,192
Net position - beginning of year 1,420,547 9,805,849
Net position - ending $ 1,420,547 $ 11,583,041
The Notes to the Basic Financial Statements
are an integral part of these statements.
37
T H E CITY OF
EVRESS
38
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 wastewater 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 (GAAP) applicable to state and local governments. GAAP for local
governments include those principles prescribed by the Governmental Accounting Standards
Board (GASB) and the American Institute of Certified Public Accountants in the publication
entitled Audits of State and Local Governmental Units.
The more significant accounting policies of the City are described as follows:
Financial Reporting Entity
As required by GAAP, these basic financial statements present the primary government and its
component units, entities for which the government is considered to be financially accountable.
The blended component units, although legally separate entities, are, in substance, part of the
primary government's operations. As such, data from these units is combined with data of the
primary government.
Blended Component Units
The City includes four component units in the financial statements. The Euless Development
Corporation (Corporation) is used to account for the accumulation of half -cent sales tax
proceeds dedicated to building and improving City parks and facilities, enhancing library
services, and stimulating economic development activities within the City. The Euless Crime
Control and Prevention District (District) is used to account for the accumulation and use of
quarter -cent sales tax proceeds dedicated for crime reduction programs. The Corporation and
the District are reported as special revenue funds of the primary government. The Boards of
Directors of both component units are substantively the same as the City Council. There are
seven directors on each board, four of whom are council members which constitutes a voting
majority of the City Council. The remaining three board members are residents of the City.
Upon dissolution of the Corporation or the District, the entity's assets will be distributed to
the City. Each component unit provides all of its services to the City. The financial
statements for the units were obtained from the respective Boards of Directors. Financial
information for both entities may be obtained from the City.
39
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Financial Reporting Entity — Continued
Blended Component Units — Continued
The Tax Increment Reinvestment Zone #3 — Glade Parks (TIRZ #3) is also a blended
component unit of the City and is reflected in the financial statements as a special revenue
fund. TIRZ #3 was created to stimulate development and enhance the value of taxable real
property within the boundaries of the zone. Tarrant County and Tarrant County College
District are taxing entities participating in TIRZ #3. The Board of Directors of TIRZ #3 is
substantially the same as the City Council and management of the City has operational
responsibility for TIRZ #3. The Board is comprised of seven directors, four of whom are
council members which constitutes a voting majority of the Board. The remaining three
board members are representatives selected by the other participating taxing entities and the
Tarrant County Hospital District Financial information for TIRZ #3 may be obtained from
the City.
The Tax Increment Reinvestment Zone #4 — Midtown (TIRZ #4) is also a blended
component unit of the City and is reflected in the financial statements as a special revenue
fund. The Midtown CIP Fund is also part of TIRZ#4. TIRZ #4 was created to stimulate
development and enhance the value of taxable real property within the boundaries of the
zone. Tarrant County, Tarrant County Hospital District, and Tarrant County College District
are taxing entities participating in TIRZ #4. The Board of Directors of TIRZ #4 is
substantially the same as the City Council and management of the City has operational
responsibility for TIRZ #4. The Board is comprised of seven directors, four of whom are
council members which constitutes a voting majority of the Board. The remaining three
board members are representatives selected by the other participating taxing entities.
Financial information for TIRZ #4 may be obtained from the City.
Basis of Presentation
The government -wide financial statements (the statement of net position and the statement of
activities) report information on all of the activities of the City, except fiduciary funds. The
effect of interfund activity, with the exception of interfund services provided or used, 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 user
fees and charges for support.
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.
40
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Basis of Presentation — Continued
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 compliance with various legal
provisions. 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 are
typically 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 property taxes levied by the City. The fund balance of the Debt Service
Fund is restricted for debt service expenditures.
Car Rental Tax Fund
The Car Rental Tax Fund is used to account for revenues received from the collection of
short-term motor vehicle rental taxes and the expenditures thereof. Per contractual
agreement, revenues are shared with the cities of Dallas and Fort Worth. The City's
portion of the revenue is used primarily for debt reduction, one-time capital projects, and
to maintain the property tax rate.
Police CIP Fund
The Police CIP Fund is used to account for various construction projects related to the
City Police and Courts building renovation primarily funded with Tax and Waterworks
and Sewer System Revenue Certificates of Obligation, Series 2023 issuance.
41
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Basis of Presentation — Continued
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
position. The City has presented the following major proprietary funds:
Water and Wastewater Fund
Water and Wastewater Fund is used to account for the acquisition, operation and
maintenance of a municipal water and wastewater utility, supported primarily by user
charges.
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.
Other Recreation Enterprises Fund
Other Recreation Enterprises Fund is used to account for operations and maintenance of
recreation programming, Arbor Daze, and the Parks at Texas Star, supported primarily by
user charges.
Additionally, the City reports the Internal Service Funds which are used to account for
equipment replacement, risk management, and self -funded health insurance coverage and
disability insurance provided to employees 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. All
revenues and expenses not meeting this definition are reported as non -operating revenues and
expenses. Operating expenses for the proprietary funds include the cost of personnel and
contractual services, supplies, and depreciation on capital assets.
42
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Basis of Presentation — Continued
The City also reports two fiduciary funds in the financial statements. The Stars Center Escrow
Custodial Fund is a custodial fund that accounts for investments that will be held on behalf of the
Dallas Stars until the debt issued for the specific purpose of purchasing the Stars Center is fully
repaid. Custodial funds account for resources held for others in a custodial capacity. This fund
type is used to account for assets held by the City as an agent. The OPEB Trust Fund accounts
for the accumulation and use of resources for benefit payments related to post -employment
health care.
The fiduciary funds are reported using the economic resources measurement focus and the
accrual basis of accounting. Reporting is oriented toward providing accountability for the
sources, uses, and balances of resources held for others; therefore, the additions and deductions
in fiduciary balances are reported. With this measurement focus, assets and liabilities which are
due and payable associated with the operation of these funds are included on the funds'
statements of net position. The funds' equity is segregated into restricted net position and
unrestricted net position, if applicable.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures/expenses 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, proprietary fund and fiduciary financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. The economic
resources measurement focus means all assets, deferred inflows/outflows of resources, and
liabilities (whether current or noncurrent) are included on the statement of net position and the
operating statements present increases and decreases in total net position. Under the accrual basis
of accounting, revenues are recognized when earned, including unbilled water, wastewater, and
drainage 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., 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 and
other revenues as available if they are collected within 60 days of year end. Expenditures are
recorded when the related fund liability is incurred. However, debt service expenditures, as well
as expenditures related to compensated absences and other long-term liabilities are recorded only
when payment is due.
43
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Measurement Focus and Basis of Accounting — Continued
The significant revenues susceptible to accrual are property taxes, franchise fees, licenses,
charges for service, interest income, and intergovernmental revenues. Sales taxes and short-term
motor vehicle rental taxes collected and held by the state at year end on behalf of the City are
also recognized as revenue. All other governmental fund revenues are recognized when received.
Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances."
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash accounts or individual fund 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 to
be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less when
purchased are reported at amortized 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.
Property 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 inflows of
resources. 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 $0.4600
per $100 of assessed valuation ($0.4750 per $100 last year) and assessed valuation is
approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as consumed, are stated at cost
(first -in, first -out method) for the General Fund, Enterprise Funds and Internal Service funds.
44
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Inventories — Continued
Inventories consist primarily of expendable supplies for the General Fund and Internal Service
funds and merchandise for resale 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, and are recognized as expenditures utilizing the
consumption method.
Transactions Between Funds
Interfund services provided and used are accounted for as revenues and expenditures or
expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses
initially made from it that are properly applicable to another fund, are recorded as expenditures
or expenses in the reimbursing fund and as a reduction of expenditures or 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 recorded at historical cost or estimated historical cost if actual historical cost is not available.
Donated assets are recorded at acquisition value on the date donated. Repairs and maintenance
are recorded as expenses. Renewals and betterments are capitalized.
Capitalized 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 33 1/3 years
Water and wastewater system 33 1/3 years
Storm drainage system 33 1/3 years
Infrastructure 7 - 40 years
Machinery and equipment 5 - 15 years
Improvements 25 years
Right -to -use assets 5 - 15 years
45
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Leases - Lessee
The City is a lessee for noncancellable leases of property and equipment. The City recognizes a
lease liability, reported within long-term debt, and right -to -use lease asset (lease asset), reported
with other capital assets in the government -wide and proprietary fund financial statements. The
City recognizes lease liabilities with an initial, individual value of $5,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present
value of payments expected to be made during the lease term. Subsequently, the lease liability is
reduced by the principal portion of lease payments made. The lease asset is initially measured as
the initial amount of the lease liability, adjusted for lease payments made at or before the lease
commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized
on a straight-line basis over the shorter of the lease term or its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount
rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease
payments.
• The City uses the interest charged by the lessor as the discount rate. When no interest rate
is provided by the lessor, the City generally uses its estimated incremental borrowing rate
as the discount rate for leases.
• The lease term includes the noncancellable period of the lease.
• Lease payments included in the measurement of the lease liability are composed of fixed
payments, variable payments fixed in substance or that depend on an index or a rate,
purchase option price that the City is reasonably certain to exercise, lease incentives
receivable from the lessor, and any other payments that are reasonably certain of being
required based on an assessment of all relevant factors.
The City monitors changes in circumstances that would require a remeasurement of its leases and
will remeasure the lease asset and liability if certain changes occur that are expected to
significantly affect the amount of the lease liability.
Subscription -Based Information Technology Arrangements (SBITAs)
The City has noncancellable contracts with SBITA vendors for the right -to -use information
technology (IT) software, alone or in combination with tangible capital assets (the underlying IT
assets). The City recognizes a subscription liability, reported with long-term debt, and a
right -to -use subscription asset (an intangible asset), reported with other capital assets, in the
government -wide and proprietary fund financial statements. The City recognizes subscription
liabilities with an initial, individual value of $25,000 or more.
46
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Subscription -Based Information Technology Arrangements (SBITAs) - Continued
At the commencement of a SBITA, the City initially measures the subscription liability at the
present value of payments expected to be made during the subscription term. Subsequently, the
subscription liability is reduced by the principal portion of SBITA payments made. The
subscription asset is initially measured as the initial amount of the subscription liability, adjusted
for SBITA payments made at or before the SBITA commencement date, plus certain initial
implementation costs. Subsequently, the subscription asset is amortized on a straight-line basis
over the shorter of the subscription term or the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the
discount rate it uses to discount the expected subscription payments to present value,
(2) subscription term, and (3) subscription payments.
The City uses the interest rate charged by the SBITA vendor as the discount rate. When no
interest rate is provided by the vendor, the City generally uses its estimated incremental
borrowing rate as the discount rate for SBITAs. The subscription term includes the
noncancellable period of the SBITA. Subscription payments included in the measurement of the
subscription liability are composed of fixed payments, variable payments fixed in substance or
that depend on an index or a rate, termination penalties if the City is reasonably certain to
exercise such options, subscription contract incentives receivable from the SBITA vendor, and
any other payments that are reasonably certain of being required based on an assessment of all
relevant factors.
The City monitors changes in circumstances that would require a remeasurement of its SBITAs
and will remeasure the subscription asset and liability if certain changes occur that are expected
to significantly affect the amount of the subscription liability.
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. 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. The short-term portion of vacation pay
accrued in the proprietary fund financial statements is reported as short-term compensated
absences (a current liability). The long-term component is reflected in non -current liabilities as
compensated absences. Compensated absences are recorded in governmental funds as they
mature (i.e., as taken). The liability for governmental fund compensated absences is typically
liquidated in the general fund, the juvenile case fund, the half -penny sales tax fund, and the
crime control and prevention district fund.
47
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
Reported in
Nonspendable
Restricted for
Debt service
Capital projects
Developer agreements
Court technology
Juvenile case management
Cable PEG fees
Historical preservation
Opioid remediation
Assigned
Capital projects
Betterments
Emergency/radio systems
Tourism and
conference facilities
Parks, library, and
economic development
Police department
Grants
Other
Unassigned
General Fund
Debt Service Car Rental Tax
Fund Fund
$ 257,194 $
82,803
29,139
105,326
47,230
50,739
23,803,270
2,716,183
Nonmajor
Govennental
Police CIP Fund Funds
$ $
13,342,704
Total $ 24,375,701 $ 2,716,183 $ 13,342,704
22,444,588
Total
Governmental
Funds
$ 12,219 $
2,168,069
13,710,407
2,306,211
219,420
599,369
843
11,624,942
269,413
4,884,252
36,154,995
2,306,211
82,803
219,420
599,369
843
29,139
11,624,942
105,326
47,230
2,357,187 2,357,187
5,440,464 5,440,464
3,060,577 3,060,577
5,571,154 18,964,597
23,803,270
$ 22,444,588 $ 47,070,862 $ 109,950,038
Nonspendable: This classification includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) are legally or contractually required to be maintained intact. The
City has classified prepaid items and inventory as being nonspendable.
Restricted: This classification includes amounts for which constraints have been placed on the
use of the resources either (a) externally imposed by creditors (such as through a debt covenant),
grantors, contributors, or laws or regulations of other governments, or (b) imposed by law
through constitutional provisions or enabling legislation.
The City has recorded the following restrictions at year-end:
a. Restricted for debt service represents that portion of fund equity legally restricted for
retirement of bond principal and payment of interest and related charges.
b. Restricted for capital projects represents that portion of fund equity legally restricted by
debt covenant for capital projects and capital equipment purchases.
48
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Fund Balance Classifications — Continued
c. Restricted for developer agreements represents the portion of fund equity that must be
used for future improvements to various development areas within the City.
d. Restricted for court technology represents funds collected from a court technology fee
that must be used to upgrade court systems.
e. Restricted for juvenile case processing represents funds collected from a fee on municipal
court citations that must be used to support the expenditures associated with juvenile case
processing.
f. Restricted for cable PEG fees represents the portion of fund equity that must be used for
the expansion of the City's public, educational, and government access channel.
g. Restricted for historical preservation represents donations that must be used toward the
preservation of the City's historical sites.
h. Restricted for opioid remediation represents the portion of fund equity that must be used
for opioid remediation activities.
Committed: This classification includes amounts that can be used only for specific purposes
pursuant to constraints imposed by formal action (ordinance) of the City Council. These
amounts cannot be used for any other purpose unless the City Council removes or changes
the specified use by taking the same type of action that was employed when the funds were
initially committed. This classification also includes contractual obligations to the extent that
existing resources have been specifically committed for use in satisfying those contractual
requirements. The City has no committed fund balance at year-end.
Assigned: This classification includes amounts that are constrained by the City's intended
use for a specific purpose but are neither restricted nor committed. The City Council
delegates the authority for determining this intent to the City Manager. Assignments are
made at the City Manager's discretion, but generally represent items for which specific funds
have been informally dedicated internally. This classification also includes the remaining
positive fund balance for all governmental funds except for the General Fund. The City has
recorded the following assignments at year-end:
a. Assigned for capital projects represents revenue sources that are to be used for capital
projects for the City.
b. Assigned for betterment represents funds donated by citizens that are to be used for the
betterment of the community.
c. Assigned for emergency/radio systems represents funding that is to be used to upgrade
emergency and radio systems.
d. Assigned for tourism and conference facilities represents funds to promote the City
through tourism, conference booking, and historical preservation.
e. Assigned for parks, libraries, and economic development represents funds from sales
taxes that are to be used for park improvements, library activities, and economic
development throughout the City.
49
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Fund Balance Classifications — Continued
f. Assigned for the police department are funds from the Crime Control and Prevention
District and police drug arrests and asset seizures to be used for police department
expenditures.
g. Assigned for grants are funds from specific revenues that are to be spent for allowable
expenditures in accordance with specific grant requirements.
h. Assigned for other are funds from specific revenues that are to be spent for facility
remodel, victim assistance, and injured animals, as well as residual balances of selected
special revenue funds.
Unassigned: This classification includes all amounts that are not included in other spendable
classifications and the remaining negative fund balance for any governmental funds. The General
Fund is the only fund that reports a positive unassigned fund balance.
When available, the City uses restricted fund balances first, followed by committed resources,
assigned resources, then unassigned resources, as appropriate opportunities arise. However, the
City reserves the right to selectively spend unassigned resources first to defer the use of these
other classified funds.
Net Position
Net position represents the difference between assets and deferred outflows of resources and
liabilities and deferred inflows of resources of governmental and business -type activities and
proprietary funds. Net investment in capital assets consists of capital assets, net of accumulated
depreciation, plus capital -related deferred outflows of resources, reduced by the outstanding
balances of any borrowing and capital related deferred inflows of resources used for the
acquisition, construction, or improvements of those assets, plus unspent debt proceeds. Net
position is reported as restricted when there are limitations imposed on its use, either through the
enabling legislation adopted by the City or through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments.
50
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Pensions
For purposes of measuring the net pension liability (asset), pension -related deferred outflows and
inflows of resources, and pension expense, City specific information about its Fiduciary Net
Position in the Texas Municipal Retirement System (TMRS) and additions to/deductions from the
City's Fiduciary Net Position have been determined on the same basis as they are reported by
TMRS. For this purpose, plan contributions are recognized in the period that compensation is
reported for the employee, which is when contributions are legally due. Benefit payments and
refunds are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value. Information regarding the City's Total Pension Liability is obtained from
TMRS through a report prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith
& Company, in compliance with Governmental Accounting Standards Board (GASB) Statement
No. 68, Accounting and Financial Reporting for Pensions.
Other Post -Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, OPEB-related deferred outflows and inflows of
resources, and OPEB expense, City specific information about its Fiduciary Net Position and
additions to/deductions from the City's Fiduciary Net Position have been determined on the same
basis as they are reported. For this purpose, plan contributions are recognized in the period that
compensation is reported for the employee. Benefit payments and refunds are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
Information regarding the City's OPEB liability is obtained from an actuarial valuation through a
report prepared for the City by their consulting actuary in compliance with Governmental
Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits other than Pensions.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows
of resources. This separate financial statement element, deferred outflows of resources, represents
a consumption of net assets that applies to a future period(s) and will not be recognized as an
outflow of resources (expense/expenditure) until then. The City has the following items that
qualify for reporting as deferred outflows of resources:
• Deferred charges on refundings — deferred charges on refundings result from the difference
in the carrying value of refunded debt and its reacquisition price. This amount is deferred
and amortized over the shorter of the life of the refunded debt or refunding debt.
• Pension contributions subsequent to the measurement date — these contributions are
deferred and recognized in the following fiscal year.
• Difference in expected and actual pension experience — this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
51
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Deferred Outflows/Inflows of Resources — Continued
• Difference in projected and actual investment earnings for pension assets
deferred and amortized over a closed five-year period.
• Difference in projected and actual investment earnings on OPEB assets —
deferred and amortized over a closed five-year period.
— the difference is
this difference is
In addition to liabilities, the statement of net position reports a separate section for deferred inflows
of resources. This separate financial statement element, deferred inflows of resources, represents
an acquisition of net assets that applies to a future period(s) and will not be recognized as an inflow
of resources (revenue) until that time.
The City has the following items that qualify for reporting as deferred inflows of resources:
• Difference in OPEB actuarial assumption changes — this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
• Leases — this amount results from the City's long-term lease agreements in which the City
is a lessor. This amount is deferred and amortized over the lease period.
Tax Abatements
The City provides tax abatement programs through economic development agreements designed
to promote local economic development and redevelopment; spur economic improvement;
stimulate business and commercial activity within the City; retain, create, and attract jobs; train
and retrain employees of local businesses; generate additional sales tax and enhance the property
tax base and economic condition of the City. Agreements generally contain recapture provisions
which may require repayment or termination if the recipients do not meet the required
provisions.
As of September 30, 2023, the City has two categories of tax abatement programs for economic
development:
Tax Abatements — The City has designated tax reinvestment zones and negotiated tax abatement
agreements with applicants as authorized by the Texas Tax Code Chapter 312 and administered
through the City's Tax Abatement Policy to promote development and redevelopment within the
City. Such abatement agreements authorize the appraisal district to reduce the assessed value of
the taxpayer's property by a percentage specified in the agreement, and the taxpayer will pay
taxes on the lower assessed value during the term of the agreement.
Recipients receiving tax abatements generally commit to the creation of new value of eligible
property improvements, either for new or improved existing facilities, made subsequent to the
agreement ranging from 35% to 75% for up to 10 years. No property taxes were abated under
this program in fiscal year 2023.
52
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Tax Abatements - Continued
General Economic Development Agreements — The City has entered into various agreements
under Texas Local Government Code Chapter 380 to stimulate economic development. Such
agreements may provide rebates, grants, or loans for promotion of economic development
including attracting new business and encouraging expansion or retention of existing businesses.
Rebates may be a flat amount or percentage of property taxes or sales taxes received by the City.
For fiscal year 2023, the City rebated $1,226,212 in sales taxes, or 4.12% of the total sales tax
revenues and $17,840 in property tax revenue, or less than 0.07% of the total property tax
revenues. These rebates are reflected in non -departmental expenditures in the general fund and in
general and administrative expenditures in the EDC fund.
Leases - Lessor
The City is a lessor for noncancellable leases of property and buildings. The City recognizes a
lease receivable and a deferred inflow of resources in the government -wide, governmental fund
and proprietary fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflow
of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments related to leases include how the City determines (1) the discount
rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease
payments.
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease.
• Lease payments included in the measurement of the lease receivable are composed of
fixed payments from the lessee, variable payments from the lessee that are fixed in
substance or that depend on an index or a rate, residual value guarantee payments from
the lessee that are fixed in substance, and any lease incentives that are payable to the
lessee.
The City monitors changes in circumstances that would require a remeasurement of its leases and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur
that are expected to significantly affect the amount of the lease receivable.
53
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Implementation of New Accounting Standards
GASB Statement No. 96, Subscription -Based Information Technology Arrangements
(GASB 96), provides guidance on the accounting and financial reporting for subscription -based
information technology arrangements (SBITAs) for governments. This statement
1) defines a SBITA; 2) establishes that a SBITA results in a right -to -use subscription asset — an
intangible asset — and a corresponding subscription liability; 3) provides the capitalization
criteria for outlays other than subscription payments; and 4) requires note disclosures regarding a
SBITA. The requirements of this statement are effective for reporting periods beginning after
June 15, 2022. GASB 96 was implemented in the City's 2023 financial statements.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
State statutes and the City's investment policy require that all uninsured deposits in financial
institutions be fully collateralized by U.S. Government obligations or its agencies or
instrumentalities or direct obligations of Texas or its agencies or instrumentalities that have a
market value of not less than the principal amount of the deposits or by a letter of credit issued
by a federal home loan bank. The City's deposits were fully insured or collateralized as required
by state statutes as of September 30, 2023. At year-end, the carrying amount of the City's
deposits was a credit of $722,426 primarily consisting of outstanding checks, with a bank
balance of $2,319,404.
The total bank balance is covered by Federal Depository Insurance Corporation (FDIC)
insurance or by collateral for balances in excess of FDIC coverage. Collateral is held by Bank of
NY Mellon in the City's name under a joint safekeeping agreement with Frost National Bank for
City deposits at Frost Bank. The market value of the collateral provided by Frost Bank at the
close of the fiscal year was $2,275,972. The balances at Bank of Texas (BOT) are covered by
FDIC insurance and collateral pledged to cover the balances in the BOT short-term cash fund.
54
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — CONTINUED
Investments
State statutes, City bond ordinances, and City resolutions authorize the City's investments. The
City is authorized to invest in obligations of the U.S. Government and its agencies and
instrumentalities, obligations of the State of Texas and its agencies and instrumentalities,
fully -insured or collateralized certificates of deposit, 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.
Because the City is responsible for the investment portfolio of its component units, the City's
investment practices and policies disclosed herein apply equally to its component units. During
the year ended September 30, 2023, the City did not own any types of securities other than those
permitted by statute.
Investment Type Book Value
Investments measured at amortized cost:
Investment Pools:
TexasClass
TexPool
TexSTAR
Investments measured at fair value:
U.S. Treasury
Certificates of Deposit
U.S. Government Agency Securities:
FNMA
FFCB
FHLB
FHLMC
FAMCA
$ 33,891,626
39,511,771
39,993,625
Fair Value Level % of
2 Portfolio
998,320 $
2,628,000
3,000,000
3,998,500
38,500,000
23,995,706
1,000,000
1,000,000
Rating
WAM Rating Agency
23
28
30
0.5% 0
AAAm
AAAm
AAAm
S&P
S&P
S&P
Aaa Moody's
2,622,826 1.5% 5 Not rated
2,987,890
3,969,580
38,287,415
23,879,080
1,001,773
1.6%
2.1%
20.5%
12.8%
0.5%
Total $ 187,517,548 $ 73,748,564 100%
5 AA+/Aaa
1 AA+/Aaa
59 AA+/Aaa
67 AA+/Aaa
5 Not rated
S&P/Moody's
S&P/Moody's
S&P/Moody's
S&P/Moody's
Weighted average maturity (WAM) of the portfolio by investment type categories reflected in the previous table is stated in
days. For the investment pools, the Reset WAM is presented. Investment type acronyms displayed in the previous table are
defined as follows: FNMA — Federal National Mortgage Association, FFCB — Federal Farm Credit Bank, FHLB — Federal
Home Loan Bank, FHLMC — Federal Home Loan Mortgage Corporation, and FAMCA — Federal Agricultural Mortgage
Corporation. The rating agency acronyms are defined as follows: S&P — Standard and Poor's Ratings Services, a division
of the McGraw-Hill Companies, Inc. and Moody's — Moody's Investor Service, Inc. Additional information about the
rating agency or the significance of the ratings provided may be obtained from each agency's web site.
55
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — CONTINUED
Investments — Continued
Fair Value
The City categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. GASB Statement No. 72, Fair Value
Measurement and Application provides a framework for measuring fair value which
establishes a three -level fair value hierarchy that describes the inputs that are used to measure
assets and liabilities.
• Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active
markets that a government can access at the measurement date.
• Level 2 inputs are inputs — other than quoted prices included within Level 1 that are
observable for an asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to
Level 3 inputs. If a price for an identical asset or liability is not observable, a government
should measure fair value using another valuation technique that maximizes the use of
relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of
an asset or a liability is measured using inputs from more than one level of the fair value
hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
The City has recurring fair value measurements as presented in the previous table. The City's
investment balances and weighted average maturity of such investments are as shown.
Investment pools are measured at amortized cost and are exempt from fair value reporting.
U.S Treasury and U.S. Government Agency Securities classified in Level 2 of the fair value
hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value
securities based on the securities' relationship to benchmark quoted prices.
Certificates of Deposit classified in Level 2 of the fair value hierarchy are valued using
inputs such as interest rates and yield curves that are observable at commonly quoted
intervals.
56
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — CONTINUED
Investments — Continued
Fair Value — Continued
All of the public fund investment pools (pools) in which the City is a participant use
amortized cost to value the portfolio. Amortized cost, in most cases, approximates the market
value of the securities held. In order to meet the criteria to be recorded at amortized cost,
investment pools must transact at a stable net asset value per share and maintain certain
maturity, quality, liquidity and diversification requirements within the investment pool. The
pools in which the City invests transact at a net asset value of $1.00 per share, have a
weighted average maturity of 60 days or less and weighted average life of 120 days or less,
hold investments that are highly rated by a nationally recognized statistical rating
organization, have no more than 5% of the portfolio with one issuer (excluding U.S.
government securities), and can meet reasonably foreseeable redemptions.
The TexPool investment pool is an external investment pool that has a redemption notice
period of one day and has no maximum transaction amounts. Texpool's authorities may only
impose restrictions on redemptions in the event of a general suspension of trading on major
securities markets, general banking moratorium or national or state emergency that affects
the pool's liquidity.
The TexSTAR investment pool is an external investment pool with an investment strategy
that seeks preservation of principal, liquidity and current income through investment in a
diversified portfolio of short-term marketable securities. TexSTAR has a redemption notice
period of one day and may redeem daily. The investment pool's authorities may only impose
restrictions on redemptions in the event of a general suspension of trading on major securities
markets, general banking moratorium or national or state emergency that affects the pool's
liquidity.
The MBIA Texas CLASS Investment Pool is governed by a Board of Trustees. The number
of trustees is determined and elected by the participants in the pool annually but it must be
comprised of an odd number with a minimum of three trustees. The Board meets upon the
request of at least two trustees, but not less than once annually. The pool is tailored to
comply with the Public Funds Investment Act. Duties of the governing board include
oversight responsibility.
TexPool falls under the purview of the Texas Comptroller of Public Accounts (Comptroller)
who is responsible for oversight of TexPool operations. Federated Hermes is responsible for
managing pool assets and day-to-day operations. TexSTAR is duly chartered and
administered by HilltopSecurities Inc. and JP Investment Management, Inc. TexSTAR has
established a governing board that is partially comprised of pool participants. Duties of the
governing board include oversight responsibility. The Comptroller and the governing board
exercise oversight of the pools' activities via daily, weekly, and monthly reporting
requirements.
57
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — CONTINUED
Investments — Continued
Fair Value — Continued
Additionally, per the requirements of the Public Funds Investment Act (PFIA), all pools will
maintain an AAA or equivalent rating from at least one nationally recognized rating agency.
The PFIA also requires an annual examination of the financial statements of the pools by an
independent certified public accounting firm. In connection with the financial audit, a
compliance audit of management controls on investments and adherence to the investment
policies is also required.
Interest Rate Risk
In compliance with the City's Investment Policy, as of September 30, 2023, the City minimized
the interest rate risk, the risk relating to the decline in market value of securities in the portfolio,
by: limiting the weighted average maturity to 365 days and the stated maturity to two years or
less, with the exception of securities purchases related to reserve funds; structuring the
investment portfolio so that securities mature 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 PFIA; and investing funds primarily in money market mutual funds, government investment
pools, and shorter -term securities.
The following table details the maturity schedule for the City's investment portfolio as of
September 30, 2023:
Maturity Schedule
Overnight
Less than 1 month
1 to 6 months
6 to 9 months
9to 12months
12 to 18 months
Over 18 months
Total
Book Value
$ 113,397,022
3,997,570
23,473,250
8,474,000
8,720,000
13,475,706
15,980,000
$ 187,517,548
Fair Value % of Portfolio
$ 113,397,022
3,995,800
23,322,988
8,397,872
8,692,858
13,425,653
15,913,393
61%
2%
12%
4%
5%
7%
9%
$ 187,145,586 100%
58
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — CONTINUED
Credit Risk
In compliance with the City's Investment Policy, as of September 30, 2023, the City minimized
credit risk losses due to default of a security issuer or backer, by: limiting investments to the
safest types of securities; primarily investing in U.S. Agency Bonds rated AA+ by Standard &
Poor's; 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
securities are minimized.
Custodial credit risk — risk that a government will not be able to recover (a) deposits if the
depository financial institution fails or (b) the value of investment or collateral securities that are
in the possession of an outside party if the counterparty to the investment or deposit transaction
fails. To minimize such risk, the City requires collateralization of deposits in excess of FDIC
coverage, utilizes the delivery vs. payment method for investment purchases, and contracts with
a third -party collateral safekeeping agent.
Per the terms of its depository agreement, for bank deposits in excess of the coverage provided
by the FDIC, the City requires the depository bank to pledge to the City securities (collateral)
equal to 105% of the largest balances the City maintains in the bank. The percentage as shown
reflects the requirement based on market value of the pledged securities. The City actively
monitors and manages collateral levels for all deposits. On September 30, 2023, the City's bank
balances were fully insured or collateralized.
The City's depository bank also acts as its safekeeping agent per the terms of the depository
contract. City policy dictates that all securities rendered for payment will be sent delivery vs.
payment, meaning that the funds required for purchase of a security will not be released until the
safekeeping agent has received the security purchased in the City's name No broker holds City
funds. The City does not purchase securities from its depository bank or any subsidiary banks of
the same bank holding company.
59
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2023, was as follows:
Govemmental activities
Capital assets - nondepreciable
Land
Construction in progress
Total nondepreciable capital assets
Capital assets - depreciable
Buildings
Improvements other than buildings
Infrastructure
Machinery and equipment
Total depreciable capital assets
Less accumulated depreciation
Buildings
Improvements other than buildings
Infrastructure
Machinery and equipment
Total accumulated depreciation
Total depreciable capital assets, net
Intangible right -to -use assets - amortizable
Equipment
Software
Total amortizable intangible assets
Less accumulated amortization
Equipment
Software
Total accumulated amortization
Net amortizable intangible assets
Total governmental fund capital
and intangible assets, net
Internal service funds
Capital assets - depreciable
Machinery and equipment
Total depreciable internal service assets
Less accumulated depreciation
Machinery and equipment
Total intemal service funds
capital assets, net
Total govemmental activities
capital and intangible assets, net
Balance
Beginning
of Year
$ 42,947,329
19,933,713
62,881,042
69,616,840
22,319,831
106,200,864
15,484,053
213,621,588
(33,258,456)
(6,569,814)
(52,742,305)
(9,752,892)
(102,323,467)
111,298,121
Increase
$ 204,240
7,696,350
Decrease
Adjustment/
Transfer
Balance
End of
Year
$ $ 374,737 $ 43,526,306
(11,501,361) 16,128,702
7,900,590 (11,126,624) 59,655,008
10,000 (1,581,144) 7,038,642 75,084,338
612,730 22,932,561
285,014 2,290,471 108,776,349
1,215,228 (490,084) 1,184,781 17,393,978
1,510,242 (2,071,228) 11,126,624 224,187,226
(2,024,667) 457,576 - (34,825,547)
(708,814) - (7,278,628)
(2,899,825) - (55,642,130)
(1,339,240) 315,725 - (10,776,407)
(6,972,546) 773,301 - (108,522,712)
(5,462,304) (1,297,927) 11,126,624 115,664,514
259,697 - - 259,697
337,794 - 337,794
259,697 337,794 - 597,491
(61,895) (62,108) - (124,003)
(114,214) - (114,214)
(61,895) (176,322) - (238,217)
197,802 161,472 - 359,274
174,376,965 2,599,758 (1,297,927) - 175,678,796
16,868,092
16,868,092
(10,764,318)
6,103,774
$ 180,480,739 $
2,725,194 (849,457) - 18,743,829
2,725,194 (849,457) - 18,743,829
(1,772,950) 809,908 - (11,727,360)
952,244 (39,549) - 7,016,469
3,552,002 $ (1,337,476) $ $ 182,695,265
60
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS — CONTINUED
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Business -type activities
Capital assets - nondepreciable
Land $ 5,718,545 $ - $ $ - $ 5,718,545
Construction in progress 10,704,946 2,169,488 (11,486,598) 1,387,836
Total nondepreciable capital assets
16,423,491 2,169,488 (11,486,598) 7,106,381
Capital assets - depreciable
Buildings 4,207,035 - 3,227,802 7,434,837
Equipment 3,774,599 103,571 (644,620) 104,810 3,338,360
Improvements 21,328,757 (105,559) 73,590 21,296,788
Utility system 133,609,371 432,202 (703,293) 8,080,396 141,418,676
Total depreciable capital assets 162,919,762 535,773 (1,453,472) 11,486,598 173,488,661
Less accumulated depreciation
Buildings (3,028,255) (124,216) - (3,152,471)
Equipment (2,589,252) (262,722) 534,261 (2,317,713)
Improvements (13,139,194) (614,560) 105,559 (13,648,195)
Utility system (67,979,703) (3,149,466) 395,369 (70,733,800)
Total accumulated depreciation (86,736,404) (4,150,964) 1,035,189 (89,852,179)
Total depreciable capital assets, net 76,183,358 (3,615,191) (418,283) 11,486,598 83,636,482
Intangible right -to -use assets - amortizable
Equipment 227,130 227,130
Software 14,233 14,233
Total amortizable intangible assets 227,130 14,233 241,363
Less accumulated amortization
Equipment (23,671) (54,839) (78,510)
Software (4,856) (4,856)
Total accumulated amortization (23,671) (59,695) (83,366)
Net amortizable intangible assets
Total business -type activities
capital and intangible assets, net
203,459 (45,462) 157,997
$ 92,810,308 $ (1,491,165) $ (418,283) $ $ 90,900,860
Capital asset depreciation and amortization expense was charged as a direct expense to programs of
the primary government as follows:
Governmental activities
Culture and recreation $ 1,063,655
Development 32,244
General administrative 4,361,456
Highways and streets 2,852,793
Public safety 611,670
Total capital asset depreciation and amortization expense - governmental activities $ 8,921,818
Business -type activities
Water and wastewater $ 2,456,012
Drainage utility 848,965
Golf course 441,399
Other recreation enterprises 464,283
Total capital asset depreciation and amortization expense - business -type activities $ 4,210,659
61
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT
Outstanding commitments at September 30, 2023, under authorized construction contracts, were
$8,141,304. These outstanding commitments are to be financed by available deposit and investment
balances, which include proceeds from previous bond issuances.
The following is a summary of long-term debt activity of the City for the year ended September 30,
2023:
Governmental activities
General obligation bonds
Certificates of obligation
Sales tax revenue bonds
Tax notes
Lease liability
Subscription liability
Premium on debt
Discount on debt
Net pension liability
Net OPEB liability
Compensated absences
Total governmental activities
Business -type activities
Water and sewer revenue bonds
General obligation refunding bonds
Lease liability
Subscription liability
Premiums on debt
Discounts on debt
Net pension liability
Net OPEB liability
Compensated absences
Total business -type activities
Balance
Beginning
of Year Increases Decreases
$ 3,010,000
52,560,000
5,025,000
9,155,000
197,802
2,304,130
(59,288)
9,168,287
2,218,795
83,579,726
16,835,000
2,775,000
203,458
98,242
(17,878)
1,712,749
395,571
22,002,142
Total primary government $ 105,581,868
$ $ (1,140,000)
20,620,000 (2,505,000)
(225,000)
(1,990,000)
(62,107)
337,794 (114,214)
1,630,433 (197,424)
9,682
29,036,476
468,889
52,093,592
14,233
5,482,360
67,805
5,564,398
$ 57,657,990
(908,516)
(392,017)
(7,524,596)
(960,000)
(530,000)
(54,838)
(4,856)
(19,241)
1,626
(176,928)
(46,153)
(1,790,390)
Balance Due
End within
of Year One Year
$ 1,870,000
70,675,000
4,800,000
7,165,000
135,695
223,580
3,737,139
(49,606)
29,036,476
8,259,771
2,295,667
$ 1,185,000
3,200,000
230,000
1,590,000
62,436
109,879
306,122
(9,682)
229,567
128,148,722 6,903,322
15,875,000
2,245,000
148,620
9,377
79,001
(16,252)
5,482,360
1,535,821
417,223
25,776,150
$ (9,314,986) $ 153,924,872
965,000
540,000
56,609
4,634
19,241
(1,625)
41,722
1,625,581
$ 8,528,903
Governmental fund net pension liability and net OPEB liability are typically liquidated by the
general, half -penny sales tax, crime control and prevention district, and juvenile case funds.
62
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
General Obligation Bonds
General obligation bonds and general obligation refunding bonds provide funds for the
acquisition and construction of major capital equipment, City facilities, and infrastructure assets
and the refunding of previously issued debt instruments. General obligation bonds require voter
authorization; whereas general obligation refunding bonds do not. General obligation bonds are
direct obligations of the City, payable from a continuing and direct ad valorem tax, levied within
the limits prescribed by law, on all taxable property within the City as provided in the ordinances
authorizing issuance of the bonds.
The City is required to compute an interest and sinking fund tax rate sufficient to cover the
annual debt service requirements inclusive of anticipated drawdown of reserves, transfers or
revenues from self-supporting debt systems, and other miscellaneous sources.
As of September 30, 2023, general obligation bonds currently outstanding are as follows:
General Obligation Bonds
Taxable Refunding, Series 2010
Refunding, Series 2012
Refunding, Series 2012A
Interest
Rate %
4.4%
3.125%
2.25% — 2.625%
Dated
08/15/2010
12/01/2011
11/01/2012
Maturity
Date
08/01/2025
02/15/2024
02/15/2027
Total
Principal
Outstanding
$1,335,000
535,000
2,245,000
$4,115,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Governmental Activities
Year Principal Interest
2024
2025
2026
2027
$ 1,185,000 $
685,000
Total $ 1,870,000 $
67,099
30,140
Business -Type Activities
Principal Interest
$ 540,000
555,000
565,000
585,000
$ 48,738
36,072
22,419
7,678
97,239 $ 2,245,000 $
Total
$ 1,840,837
1,306,212
587,419
592,678
114,907 $ 4,327,146
The business -type activities general obligation refunding bonds outstanding were issued to
refund previously issued golf course debt. The City anticipates repayment of the debt will occur
from the golf system revenues. However, these plans are subject to change.
63
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Certificates of Obligation
Certificates of obligation are issued for many of the same purposes as general obligation bonds,
but certificates do not require voter authorization nor may they be used to refund existing debt.
The certificates constitute direct obligations of the City, payable from (i) the levy and collection
of a direct and continuing ad valorem tax, levied within the limits prescribed by law, on all
taxable property within the City, and (ii) a limited pledge (not to exceed $1,000 per issue) of the
Net Revenues of the City's waterworks and sanitary sewer system.
The City currently has the following certificates of obligation outstanding as of the end of the
fiscal year:
Certificates of Obligation
Series 2011
Series 2014
Series 2015
Series 2016
Series 2018
Series 2019
Series 2020
Series 2021
Series 2023
Interest
Rate %
4% — 4.25%
3%
3%— 5%
2.25% — 3.25%
3%-4%
3%— 5%
2% — 3.5%
1.625% — 4%
4% — 5%
Dated
01/15/2011
10/15/2014
10/27/2015
01/12/2016
03/01/2018
01/15/2019
01 / 14/2020
04/08/2021
08/08/2023
Maturity Principal
Date Outstanding
08/15/2030
08/15/2034
02/15/2035
02/15/2041
02/15/2038
02/15/2039
02/15/2040
02/15/2041
02/15/2038
Total
$1,425,000
3,930,000
2,245,000
13,365,000
7,540,000
10,280,000
6,290,000
4,980,000
20,620,000
$70,675,000
Annual debt service requirements to maturity for the certificates of obligation are as follows:
Fiscal
Year
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2041
Total
Governmental
Principal
$ 3,210,000
3,985,000
4,025,000
4,080,000
4,090,000
22,335,000
23,800,000
5,150,000
$ 70,675,000
Activities
Interest Total
$ 2,477,650 $ 5,687,650
2,416,651 6,401,651
2,269,951 6,294,951
2,115,841 6,195,841
1,958,563 6,048,563
7,236,865 29,571,865
2,924,031 26,724,031
205,275 5,355,275
$21,604,827 $92,279,827
In August 2023, the City Council approved the issuance of $20,620,000 of Tax and Waterworks
and Sewer System (Limited Pledge) Revenue Certificates of Obligation, series 2023 for the
purpose of designing, constructing, renovating, and equipping the City Police and Courts
building, and (ii) professional services rendered in relation to such projects and the financing
thereof.
64
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Revenue Bonds
Each series of revenue bonds is backed by the pledged revenue sources identified in the bond
ordinances authorizing issuance of the bonds. The purpose and primary pledged revenue sources
of each type of revenue bond are summarized as follows.
Half -penny sales tax fund issues sales tax revenue bonds (STRB) to finance library, park, and
economic development projects throughout the City. Sales tax revenue bonds are special
obligations of the Euless Development Corporation (EDC), payable solely from and secured by a
lien on and pledge of certain Pledged Revenues which includes the gross proceeds of a '/2¢ sales
and use tax levied within the City for the benefit of the EDC. The EDC is reflected in the
financial statements of the City as a special revenue fund. Accordingly, the EDC's debt is
reflected in governmental activities debt.
Water and wastewater fund issues revenue bonds (W&WW) for the construction of and
improvement to the City's combined waterworks and sanitary sewer infrastructure or to refund
previously issued revenue bonds. Water and sewer revenue bonds and refunding bonds are
payable solely from and equally secured by a first lien on and pledge of the net revenues of the
City's water and wastewater system.
The City currently has the following revenue bonds outstanding at the end of the fiscal year:
Revenue Bonds
W&WW Refunding, Series 2012
W&WW Improvement, Series 2013
W&WW Improvement, Series 2015A
W&WW Improvement, Series 2015B
W&WW Improvement, Series 2018
W&WW Improvement, Series 2019
STRB, Series 2018
STRB, Series 2019
Interest
Rate %
2.03%
4% — 5%
1.12% — 1.98%
0.82% — 1.68%
0.54% — 1.49%
0.42% — 1.66%
3%-4%
2.5%-4%
Dated
03/29/2012
06/25/2013
06/15/2015
06/15/2015
04/12/2018
04/25/2019
10/15/2018
12/12/2019
Maturity
Date
07/15/2024
07/15/2033
07/15/2035
07/15/2035
07/15/2038
07/15/2049
09/15/2038
09/15/2039
Total
Principal
Outstanding
$ 135,000
935,000
2,925,000
1,540,000
2,140,000
8,200,000
1,315,000
3,485,000
$ 20,675,000
65
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT - CONTINUED
Revenue Bonds - Continued
Annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Governmental Activities
Year Principal Interest
2024 $230,000 $164,625
2025 245,000 156,075
2026 250,000 146,975
2027 260,000 136,975
2028 270,000 126,575
2029-2033 1,505,000 478,325
2034-2038 1,770,000 219,800
2039-2043 270,000 8,100
2044-2048 - -
2049 -
Total $4,800,000 $1,437,450
Business -Type
Principal
$965,000
840,000
845,000
860,000
870,000
4,590,000
3,095,000
1,650,000
1,785,000
375,000
$15,875,000
Activities
Interest
$244,786
233,658
224,201
213,835
201,924
792,812
424,804
255,164
119,848
6,225
$2,717,257
Total
$1,604,411
1,474,733
1,466,176
1,470,810
1,468,499
7,366,137
5,509,604
2,183,264
1,904,848
381,225
$24,829,707
The gross 1/2¢ sales tax revenues of the EDC recognized in the year ending September 30, 2023
totaled $7,448,650. The principal, interest and fiscal charges on the EDC debt for the same
period totaled $398,975 which equates to approximately 5.4% of the gross '/2¢ sales tax revenues.
The recognized net revenues of the water and wastewater fund totaled $3,003,993 for the year
ending September 30, 2023. Principal, interest and fiscal charges on the water and sewer revenue
bonds totaled $1,215,341 which equates to approximately 40.5% of net system revenues.
In accordance with the water and sewer revenue and refunding bond ordinances, the following
reserves were established:
Reserve for revenue bond debt service - to be used for retirement of the current portion of
principal and interest payments.
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.
66
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Revenue Bonds — Continued
Revenue bond reserve — a reserve established at the time of issuance pursuant to the revenue
bond covenants which will be used for principal and interest payments in the event of default
by the issuer.
Should the reserve for revenue bond debt service and/or the revenue bond reserve 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, 2023.
Investments of funds included in the bond reserve and emergency accounts are restricted to
obligations of the United States or its agencies or instrumentalities (except for mortgage
pass -through securities).
Water and sewer revenue bonds authorized and unissued as of September 30, 2023, 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.
Tax Notes
Tax notes are issued for the purchase of certain specified materials, supplies, equipment, and
machinery for the City's authorized needs and purposes. The City currently has the following tax
notes outstanding as of the end of the fiscal year:
Tax Notes
Series 2021
Series 2022
Interest
Rate % Dated
4.00% 04/08/2021
2.89% 09/20/2022
Maturity
Date
02/15/2024
02/15/2029
Principal
Outstanding
$570,000
6,595,000
$7.165.000
67
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Tax Notes — Continued
Annual debt service requirements to maturity for the tax notes are as follows:
Fiscal Governmental Activities
Year Principal Interest
Total
2024 $1,590,000 $187,257 $1,777,257
2025 1,050,000 145,945 1,195,945
2026 1,085,000 115,094 1,200,094
2027 1,115,000 83,304 1,198,304
2028 1,145,000 50,647 1,195,647
2029 1,180,000 17,051 1,197,051
Total $7,165,000 $599,298 $7,764,298
Lease Liability
The City leases equipment consisting of printers, copiers and GPS equipment to utilize in various
operations of the City.
Prior to October 1, 2021, the City entered into a five-year lease agreement as lessee for the
use of printers and copiers. An initial lease liability was recorded in the amount of $346,263. As
of September 30, 2023, the value of the lease liability was $180,925. The City is required to
make monthly principal and interest payments of $7,000. The lease has an implicit interest rate
of 1.9235%. The value of the right -to -use asset as of September 30, 2023 was $346,263 with
accumulated amortization of $165,339.
During the year ended September 30, 2022, the City entered into a four-year lease agreement as
lessee for the use of GPS equipment. An initial lease liability was recorded in the amount of
$140,564. As of September 30, 2023, the value of the lease liability was $103,390. The City is
required to make monthly principal and interest payments of $3,040. The lease has an interest
rate of .527%. The value of the right -to -use asset as of September 30, 2023 was $140,564 with
accumulated amortization of $37,174.
The future principal and interest lease payments as of September 30, 2023 were as follows:
Fiscal Governmental Activities Business -Type Activities
Year Principal Interest Principal Interest Total
2024 $62,436 $564 $55,608 $1,872 $120,480
2025 62,766 234 56,393 1,087 120,480
2026 10,493 7 36,619 322 47,441
Total $135,695 $805 $148,620 $3,281 $288,401
68
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Subscription -based IT Arrangements
The City leases certain software under subscription -based IT arrangements (SBITA).
In August 2023, the City entered into a three-year subscription arrangement for the use of certain
software. An initial subscription liability was recorded in the amount of $35,130. As of
September 30, 2023, the value of the subscription liability was $24,130. The City is required to
make annual principal and interest payments that range from $12,000 to $13,000. The
subscription has an implicit interest rate of 2.363%. The value of the right -to -use asset as of
September 30, 2023 was $35,130 with accumulated amortization of $11,000.
In April 2023, the City entered into a three-year subscription arrangement for the use of certain
software. An initial subscription liability was recorded in the amount of $237,215. As of
September 30, 2023, the value of the subscription liability was $156,288. The City is required to
make annual principal and interest payments of $80,926. The subscription has an implicit interest
rate of 2.3633%. The value of the right -to -use asset as of September 30, 2023 was $237,215 with
accumulated amortization of $80,927.
In July 2023, the City entered into a three-year subscription arrangement for the use of certain
software. An initial subscription liability was recorded in the amount of $79,682. As of
September 30, 2023, the value of the subscription liability was $52,539. The City is required to
make annual principal and interest payments of $27,552. The subscription has an implicit interest
rate of 3.238%. The value of the right -to -use asset as of September 30, 2023 was $79,682 with
accumulated amortization of $27,143.
The future principal and interest lease payments as of September 30, 2023 were as follows:
Fiscal Governmental Activities Business -Type Activities
Year Principal Interest Principal Interest Total
2024 $ 109,879 $ 5,696 $ 4,634 $ 269 $ 120,478
2025 113,701 2,920 4,743 112 121,476
Total $ 223,580 $ 8,616 $ 9,377 $ 381 $ 241,954
69
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a contract dated January 21, 1972, with Trinity River Authority (TRA)
whereby TRA agreed to provide treated water to the City. This contract was for an original term of
thirty-five (35) years and continues in effect until all bonds, or any bonds issued to refund same,
have been paid in full. Additionally, on October 10, 1973, the City entered into a contract with TRA
to provide wastewater treatment services to the City. The contract remains in force and effect for a
period of fifty (50) years and thereafter until any bonds, or any bonds issued to refund same, have
been paid in full. Payments by the City are based on metered usage at rates designed to charge the
City a prorata share of TRA's annual operating and maintenance expenses and principal and interest
requirements on bonds issued by TRA. Payments under these contracts totaled $14,655,072 and are
included as operating expenses of the water and wastewater fund.
The City entered into a 20-year contract dated February 2, 2010, with the City of Fort Worth
(Fort Worth) whereby Fort Worth agreed to provide reclaimed water service to the City. Payments
by the City are based on metered volume. Payments under this contract totaled $523,399 in the year
ended September 30, 2023 and are included as operating expenses of the water and wastewater 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 wastewater enterprise fund historically bears the major portion of the operating costs
of the City's service center, which provides services to all City departments.
70
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations of
those funds.
Transfers out
General
Car rental tax
Water and wastewater
Drainage utility
Nonmajor governmental
Total transfers in
Transfers out
General
Car rental tax
Water and wastewater
Drainage utility
Nonmajor governmental
Total transfers in
$
General Debt Service
1,579,218
48,464
$
$
2,350,235 960,000
$ 1,627,682 $ 2,350,235 $ 960,000
Transfers in
Major Enterprise
Golf Other recreation
Internal Service Course enterprises
$ 450,000 $ 17,863 $
772,481 -
450,000 -
- 799,428 115,140
$ 1,672,481 $ 817,291 $ 115,140
Transfers are primarily used to move funds from:
Non -major Subtotal
Governmental Governmental
Transfers in
Police CIP
- $ 2,657,829 $ 2,657,829
1,878,474 1,878,474
- 1,579,218
- 48,464
3,899,208 7,209,443
$ 8,435,511 $ 13,373,428
Subtotal
Enterprise
$ 17,863
914,568
$ 932,431
Total
Transfers Out
$ 3,125,692
2,650,955
2,029,218
48,464
8,124,011
$ 15,978,340
• The general fund to the non -major governmental funds to fund approved capital projects and
to satisfy grant matching requirements, and to the golf course fund for sales tax rebates.
• The water and wastewater fund and the drainage utility fund to the general fund for general
and administrative charges.
• The car rental tax fund to the non -major governmental funds to provide funding for approved
capital projects.
• The car rental tax fund to the internal service funds for the replacement of capital assets.
• The non -major governmental funds to the Police CIP fund for approved capital project
funding.
• The non -major governmental funds to the non -major governmental funds to provide task
force and project funding.
71
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS — CONTINUED
• The non -major governmental funds to the other recreation enterprises funds to provide
festival funding.
• The non -major governmental funds to debt service funds for debt payments on previously
issued debt.
• The general fund and water and wastewater fund to the internal service funds for workers'
compensation and general liability insurance claims.
• The non -major governmental funds to the golf course fund to cover a portion of the operating
and debt costs associated with the conference center.
NOTE 8. RISK MANAGEMENT
The City is exposed to various risks of loss 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 Intergovernmental Risk Pool (TMLIRP) to provide both general liability
and property insurance.
The City, along with other participating entities, contributes annual amounts determined by TMLIRP
management. As claims arise they are submitted to and paid by TMLIRP. The City is not liable for
payments beyond their annual contributions to TMLIRP and related deductibles.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental Risk
Pool to provide workers' compensation insurance and effectively discontinued being self -insured for
workers' compensation claims. This policy has no deductibles, includes all claims handling, and has
a fixed premium.
In fiscal years prior to 2006, the City was self -insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were available to
pay claims, claim reserves, and administrative costs of the program. The City remains liable under
its self-insurance program for any claims occurring prior to October 1, 2005.
The City provides employee health 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. The
premiums are used to fund claims, administrative costs of the program, and claim reserves. An
excess coverage insurance policy covers individual claims in excess of $125,000, and aggregate
claims in excess of $8,072,900. During fiscal year 2023, the City and the City's employees
contributed approximately $5,360,312 and $1,451,925 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 Insurance Internal Service Fund.
72
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 8. RISK MANAGEMENT — CONTINUED
Changes in the balances of health, dental, and prescription claims liabilities for the years ended
September 30, 2023 and 2022 are as follows:
Unpaid claims, beginning of year
Incurred claims
Paid claims
Unpaid claims, end of year
2023
$ 419,951
5,480,216
(4,914,167)
$ 986,000
2022
$ 840,000
4,253,801
(4,673,850)
$ 419,951
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2023 or any of the three preceding years ended September 30.
NOTE 9. DEFINED BENEFIT PENSION PLAN
Plan Description
The City participates as one of 919 plans in the defined benefit cash -balance plan administered
by the Texas Municipal Retirement System (TMRS). TMRS is a statewide public retirement plan
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G,
Title 8, Texas Government Code (the TMRS Act) as an agent multiple -employer retirement
system for employees of participating Texas cities. The TMRS Act places the general
administration and management of TMRS with a six -member, Governor -appointed Board of
Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS issues a
publicly available Annual Comprehensive Financial Report (Annual Report) that can be obtained
at tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability and death benefits. Benefit provisions are adopted by the
governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the member's benefit is calculated based on the sum of the member's
contributions, with interest, the city -financed monetary credits with interest, and their age at
retirement and other actuarial factors. The retiring member may select one of seven monthly
benefit payment options. Members may also choose to receive a portion of their benefit as a
lump sum distribution in an amount equal to 12, 24 or 36 monthly payments, which cannot
exceed 75% of the total member contributions and interest.
73
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Benefits Provided — Continued
Plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee) 2 to 1
A member is vested after 5 years
Service retirement eligibility 20 years at any age, 5 years at 60 and above
Updated service credit 100% Repeating, Transfers
Annuity increase (to retirees) 70% of CPI
Employees Covered By Benefit Terms
At the December 31, 2022 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 301
Inactive employees entitled to, but not yet receiving benefits 191
Active employees 3 84
Total 876
Contributions
Member contribution rates in TMRS are either 5%, 6%, or 7% of the Member's total
compensation, and the city matching percentages are either 1:1 (1 to 1), 1.5:1 (1 1/2 to 1), or 2:1
(2 to 1), both as adopted by the governing body of the City. Under the state law governing
TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry
Age Normal (EAN) actuarial cost method. The city's contribution rate is based on the liabilities
created from the benefit plan options selected by the City and any changes in benefits or actual
experience over time.
Employees for the City were required to contribute 7% of their annual gross earnings during the
year ended September 30, 2023. The contribution rates for the City were 17.64% and 17.71% in
calendar years 2022 and 2023, respectively. The City's contributions to TMRS for the year
ended September 30, 2023 were $5,917,958 and were equal to the required contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2022, and the Total
Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an
actuarial valuation as of that date.
74
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Actuarial Assumptions
The TPL in the December 31, 2022 actuarial valuation was determined using the following
actuarial assumptions:
Inflation
Overall payroll growth
Investment rate of return
2.5% per year
2.75% per year, adjusted down for population declines, if
any
6.75%, net of pension plan investment expense,
including inflation
Salary increases are based on a service -related table. Mortality rates for active members are
based on the PUB(10) mortality tables with the Public Safety table used for males and the
General Employee table used for females. Mortality rates for healthy retirees and beneficiaries
are based on the Gender -distinct 2019 Municipal Retirees of Texas mortality tables. The rates for
actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale
UMP to account for future mortality improvements. For disabled annuitants, the same mortality
tables for healthy retirees are used with a 4-year set -forward for males and a 3-year set -forward
for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and
females respectively, to reflect the impairment for younger members who become disabled. The
rates are projected on a fully generational basis by Scale UMP to account for future mortality
improvements subject to the floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the
experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018.
The assumptions were adopted in 2019 and first used in the December 31, 2019 actuarial
valuation. The post -retirement mortality assumption for Annuity Purchase Rates (APRs) is based
on the Mortality Experience Investigation Study covering 2009 through 2011 and dated
December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both
capital appreciation as well as the production of income in order to satisfy the short-term and
long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. In determining their best estimate of a recommended investment
return assumption under the various alternative asset allocation portfolios, GRS focused on the
area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and
(2) the geometric mean (conservative) with adjustment for time (aggressive).
75
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Actuarial Assumptions — Continued
The target allocation and best estimates of real rates of return for each major asset class for the
year ended December 31, 2022 are summarized in the following table:
Asset Class
Long -Term Expected Real Rate of
Target Allocation Return (Arithmetic)
Global Equity 35.0% 7.70%
Core Fixed Income 6.0% 4.90%
Non -Core Fixed Income 20.0% 8.70%
Other Public and Private Markets 12.0% 8.10%
Real Estate 12.0% 5.80%
Hedge Funds 5.0% 6.90%
Private Equity 10.0% 11.80%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash
flows used to determine the discount rate assumed that employee and employer contributions
will be made at the rates specified in statute. Based on that assumption, the pension plan's
Fiduciary Net Position was projected to be available to make all projected future benefit
payments of current active and inactive members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to
determine the Total Pension Liability.
76
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Changes in the Net Pension (Asset) Liability
Balance at 12/31/2021
Changes for the year:
Service cost
Interest
Change in benefit terms
Difference between expected
and actual experience
Changes of assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including
refunds of employee contributions
Administrative expense
Other changes
Net changes
Balance at 12/31/2022
Total Pension
Liability
(a)
$ 251,641,795
5,966,121
16,821,152
1,567,444
Increase (Decrease)
Plan Fiduciary
Net Position
(b)
$ 251,846,824
5,713,524
2,267,255
(18,380,677)
(10,845,200) (10,845,200)
(159,083)
- 189,833
13,509,517 (21,214,348)
$ 265,151,312 $ 230,632,476
There were no changes in benefit terms during the year.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Net Pension
Liability (Asset)
(a) - (b)
$ (205,029)
5,966,121
16,821,152
1,567,444
(5,713,524)
(2,267,255)
18,380,677
159,083
(189,833)
34,723,865
$ 34,518,836
The following presents the net pension liability of the City, calculated using the discount rate of
6.75%, as well as what the City's net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than
the current rate:
City's net pension liability
1% Decrease in
Discount Rate
(5.75%)
$ 70,997,277
Discount Rate
(6.75%)
$ 34,518,836
1% Increase in
Discount Rate
(7.75%)
$ 4,453,774
77
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN — CONTINUED
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's Fiduciary Net Position is available in the Schedule
of Changes in Fiduciary Net Position, by Participating City. That report may be obtained at
tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the valuation date of December 31, 2022, the City recognized pension expense of
$8,484,303. At September 30, 2023, the City reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected
and actual experience $ 2,242,581 $
Changes in actuarial assumptions
Difference between projected and
actual investment earnings 15,860,497
Contributions subsequent to the
measurement date 4,367,756
Total $ 22,470,834 $
$4,367,756 reported as deferred outflows of resources related to the pension resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability (asset) for the year ended September 30, 2024. Other amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in pension
expense as follows:
Measurement Net Deferred
Year Outflows/(Inflows)
December 31, ofResources
2023 $ 1,279,088
2024 4,523,626
2025 4,971,274
2026 7,329,090
Total $ 18,103,078
78
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS
Postemployment Healthcare Plan
Plan Description
The City adopted the City of Euless Post -Employment Benefits Trust (OPEB Trust) by passage
of Resolution No. 09-1319 on September 8, 2009 which authorized participation in the PARS
Public Agencies Post -Retirement Health Care Plan Trust, including the City of Euless Public
Agencies Post -Retirement Health Care Plan (the Plan), as part of the City's Retirement Program.
Article III of the Public Agencies Post -Retirement Health Care Plan Master Plan Document as
adopted provides for the determination of eligibility under the plan to each participating
Employer to the extent provided in the Employer's applicable policies.
The City's policies with regard to post -employment healthcare coverage are governed by the
City of Euless Medical and Dental Plan, the City's group health insurance plan, the benefits of
which are established by management.
Benefits provided. The City provides post -employment medical, dental, life, and vision benefits
under the Plan to eligible retirees and dependents qualifying as one of the eligible classes of
dependents as described in the Plan. To be eligible for coverage under the Plan, an employee
must retire with the City of Euless and be eligible for retirement through TMRS. TMRS
retirement eligibility requirements are described in detail in Note 9. Additionally, written
application to enroll himself/herself and all eligible dependents (for which coverage is elected) in
the Plan must be made by the employee prior to or on the retirement date.
The Plan provides lifetime benefits or until Medicare eligibility is attained. Regardless of
Medicare enrollment status, the Plan will base payment of benefits as though Medicare were
responsible for primary payment of benefits insomuch as allowed by Federal law.
The Plan is a single -employer defined benefit healthcare plan administered by the City Manager,
his/her successor, or his/her designee. Separate financial statements for the Plan are not issued,
but rather are included in the financial statements of the City which are available on-line at
https://www. eulesstx. gov/deuartments/finance/comprehensive-annual-financial-report.
The OPEB Trust is an agent multiple -employer trust arrangement established to provide
economies of scale and efficiency of administration to public agencies. The OPEB Trust is
established as a tax-exempt trust within the meaning of Section 115 of the Internal Revenue
Code and is intended to hold the assets used to fund the City's post -employment benefits offered
by the City to its employees as specified in the City's policies.
Upon adoption of the Trust Agreement, a separate Agency Account was established under the
OPEB Trust for the City, and all assets of the Trust attributable to the City are held in the City's
Agency Account. The assets of the Trust are available only to pay post -employment healthcare
benefits of eligible employees of the City and their dependents and other associated
administrative costs.
79
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS — CONTINUED
Funding Policy
A Participant in the OPEB Trust is required from time to time to contribute to its Agency
Account an amount determined by such Participant at its sole discretion. Such amount may, but
need not, equal such Participant's actuarially determined contribution (ADC) as determined in
accordance with GASB 74. However, it is currently the intent of the Plan Administrator to
annually fund an amount equal to, or in excess of, the ADC. This intent is subject to change and
is subject to annual appropriation.
Contribution requirements of Plan members and the City are determined by the Plan
Administrator and may be amended by same from time to time. For the year ending September
30, 2023, plan members contributed:
Monthly Contribution
Medical Plan Dental
Vision
Retiree Only $ 863.29 $ 38.55 $ 7.86
Retiree plus Children 1,640.25 73.24 12.84
Retiree plus Spouse 1,985.57 88.66 15.24
Retiree plus Family 2,503.53 111.80 21.56
Retired employees meeting all eligibility requirements as set forth in the Plan that were hired
prior to October 1, 2006 and are either:
a) Retired and enrolled in the Plan on or prior to September 30, 2007; or
b) Retired and not enrolled in the Plan on or prior to September 30, 2007 and meet
guidelines for reinstatement to the Plan; or
c) Employees who were not retired as of September 30, 2007 that retire with at least ten
years of service to the City of Euless and have a combined age and years of service equal
to at least 70
will qualify for a service discount on their total premium, subject to annual appropriation, as set
forth in the following table.
Retired employees meeting all eligibility requirements as set forth in the Plan that were hired
after October 1, 2006 and before October 1, 2014 retiring with a minimum of 20 years of service
with a combined age and years of service to the City of Euless equal to at least 80 qualify for a
service discount on their total premium, subject to annual appropriation, as set forth in the
following:
Discounts on Premiums
Hired Pre-10/2006 Hired Post-10/2006 Hired Post-10/2014
Service Retiree Retiree+ Retiree Retiree+ Retiree Retiree+
10 to 14 years 15% 30% N/A N/A N/A N/A
15 to 19 years 25% 40% N/A N/A N/A N/A
20 to 24 years 35% 50% 35% 50% N/A N/A
25 to 29 years 50% 65% 50% 65% N/A N/A
30+ years 60% 75% 60% 75% N/A N/A
80
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS — CONTINUED
Funding Policy — Continued
Retirees are permitted to participate with active employees in the healthcare plan but retirees
must pay all premiums (less applicable discounts) assigned to them. The City will continue to
apply the applicable discount to surviving spouse/dependents based upon a deceased employee's
years of service. Employees hired on or after October 1, 2014 will not be eligible for premium
discounts regardless of years of service.
Per the requirements of GASB 74 and GASB 75, the following data is presented.
Plan Membership
At the October 1, 2021 actuarial valuation and measurement date, plan membership consisted of
the following:
Employees/retirees covered by the benefit terms:
Inactive plan members or beneficiaries currently receiving benefit payments 51
Inactive plan members entitled to, but not yet receiving benefit payments 22
Active plan members 356
429
Investments
Investment policy. The City's policy in regard to the allocation of invested assets is established
and may be amended by the City Manager. The City Council appointed the City Manager or her
successor or her designee as the City's Plan Administrator. The City Manager selected the
balanced, moderately aggressive actively -managed investment option (HighMark Balanced) to
provide growth of principal and income. While dividend and interest income are an important
component of the objective's total return, it is expected that capital appreciation will comprise a
larger portion of the total return. The portfolio will be allocated between equity and fixed
income investments.
Strategic Target 9/30/2023
Asset Class Range Allocation Allocation
Equity 50-70% 60% 39%
Fixed income 30-50% 35% 26%
Cash 0-20% 5% 35%
100% 100%
Rate of return. For the year ended September 30, 2023, the annual money -weighted rate of
return on investments, net of investment expense, was 9.98%. The money -weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
81
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS — CONTINUED
Investments — Continued
Concentrations. The following investments comprised 5% or more of the OPEB plan's fiduciary
net position as of September 30, 2023:
Asset Class
Equity
Fixed Income
Fixed Income
Fixed Income
Cash
% of
Investment Vehicle Portfolio
Vanguard Growth & Income Adm 7.55%
DoubleLine Core Fixed Income I 7.48%
Dodge & Cox Income 7.54%
iShares MBS ETF 7.50%
First American Government Oblig X 34.77%
Net OPEB Liability of the City
The components of the net OPEB liability of the City at September 30 were as follows:
2023
2022
Total OPEB liability $ 21,378,634 $ 20,686,885
Plan fiduciary net position (11,583,042) (9,805,849)
City's net OPEB liability $ 9,795,592 $ 10,881,036
Plan fiduciary net position as a percent
of the total OPEB liability 54.18% 47.40%
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members at that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of plan assets, consistent with the long-term perspective
of the calculations.
82
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS — CONTINUED
Actuarial Methods and Assumptions — Continued
An actuarial valuation was performed as of October 1, 2021 using the entry age normal actuarial
cost method. The liability was then rolled forward to the measurement date of September 30,
2023. The actuarial assumptions include:
Inflation 2.5% per annum
Salary increases 3.00% per annum
Investment rate of return 7.50%
Healthcare cost trend rates 7.10% with annual increases/decreases to
an ultimate rate of 4.2% in 2048
Dental cost trend rates 3.00%
Mortality rates were based on the sex distinct PUB 2010 general employee/retiree headcount
weighted mortality table with mortality improvements scale MP-2021. The plan has not had a
formal actuarial experience study performed.
The expected return of each asset class is determined through a combination of historical rates of
return, valuation projections, and economic expectations. Expected rates of return are developed
and annually reviewed by HighMark's Asset Allocation Committee. The long-term expected rate
of return on OPEB plan investments is then calculated by weighting the returns for each asset
class according to the exposure as determined by the current strategic allocation. The anticipated
long-term rate of return is 6.58% with an expected standard deviation of 10.12%. Anticipated
long-term returns by asset class are not available.
Discount rate. The discount rate used to measure the total OPEB liability was 7.5%. The
projection of cash flows used to determine the discount rate assumed the City contributions will
be made at rates at least equal to the actuarially determined contribution rates. Based on those
assumptions, the OPEB Plan's fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on OPEB plan investments was applied to all periods of projected benefit payments
to determine the total OPEB liability.
Sensitivity of the OPEB liability to changes in the discount rate. The following presents the net
OPEB liability of the City as well as what the City's net OPEB liability would be if it were
calculated using a discount rate that is one percentage point lower (6.5%) or one percentage point
higher (8.5%) than the current discount rate:
1 % Decrease Discount Rate 1 % Increase
(6.5%) (7.5%) (8.5%)
Net OPEB liability $ 13,661,197 $ 9,795,592 $ 6,703,049
83
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS — CONTINUED
Actuarial Methods and Assumptions — Continued
Sensitivity of the OPEB liability to changes in the healthcare cost trend rates. The following
presents the net OPEB liability of the City as well as what the City's net OPEB liability would be
if it were calculated using healthcare cost trend rates that are one percentage point lower or one
percentage point higher than the current healthcare cost trend rates:
Current Trend
1% Decrease Rates (7.10%) 1% Increase
Net OPEB liability $ 6,235,006 $ 9,795,592 $ 14,311,883
Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at 9/30/2022 $ 20,686,885 $ 9,805,849 $ 10,881,036
Changes for the year:
Service cost 306,311 - 306,311
Interest 1,531,512 - 1,531,512
Change of benefit terms -
Difference between expected
and actual experience
Changes of assumptions -
Difference in expected and
actual net investment income - 262,122 (262,122)
Contributions - employer - 1,906,655 (1,906,655)
Contributions - other 252,575 252,575 -
Net investment income 754,490 (754,490)
Benefit payments, including
refunds of employee contributions (1,226,752) (1,226,752)
Administrative expense (171,897) (171,897) -
Net changes 691,749 1,777,193 (1,085,444)
Balance at 9/30/2023 $ 21,378,634 $ 11,583,042 $ 9,795,592
84
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS — CONTINUED
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended September 30, 2023, the City recognized OPEB expense of $1,248,642.
At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in actuarial assumptions $ $ 736,234
Difference between projected and
actual investment earnings 659,983
Total $ 659,983 $ 736,234
Amounts reported as deferred outflows and inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Fiscal Year Net Deferred
Ending Outflows/(Inflows)
September 30, of Resources
2024 $ 120,053
2025 122,258
2026 312,276
2027 (341,631)
2028 (289,207)
Total $ (76,251)
NOTE 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2023, the following fund had excess of expenditures over appropriations:
- Grant special revenue fund in the amount of $7,955.
85
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 12. LEASE RECEIVABLES
The City leases various property and buildings to other entities. The leases range from five to 23
years in length. The City received annual payments from these leases of $812,515. The City
recognized $663,241 in lease revenue and $149,274 in interest revenue during the current fiscal year
related to these leases. As of September 30, 2023, the City's receivable and deferred inflows of
resources for leases was $4,792,268 for governmental activities and $356,567 for business -type
activities. The deferred inflow of resources associated with these leases will be recognized as
revenue over the lease terms.
The future principal and interest lease payments to be received as of September 30, 2023 were as
follows:
Fiscal
Year
Governmental Activities
Principal Interest
2024 $ 652,078
2025 659,426
2026 452,183
2027 385,789
2028 404,202
2029-2033 1,245,156
2034-2038 393,700
2039-2043 467,853
2044-2045 131,881
Total $ 4,792,268
$ 123,691
102,297
85,208
72,368
59,406
140,264
71,593
33,401
1,571
$ 689,799
Business -Type Activities
Principal Interest
$ 38,341
38,860
39,386
40,733
42,432
156,815
$ 4,559 $
4,040
3,514
2,980
2,418
3,898
Total
818,669
804,623
580,291
501,870
508,458
1,546,133
465,293
501,254
133,452
$ 356,567 $ 21,409 $ 5,860,043
86
REQUIRED SUPPLEMENTARY INFORMATION
THE CITY OF
EULESS
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY (ASSET) AND RELATED RATIOS
FOR THE MEASUREMENT YEAR ENDED DECEMBER 31
Total pension liability
Service cost
Interest (on the total pension liability)
Difference in expected and actual experience
Change in assumptions
Benefit payments, including refunds
Net change in total pension liability
Total pension liability, beginning of year
Total pension liability, ending of year
Plan fiduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
Admrtnistrative expense
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending
Net pension liability (asset) - ending
Plan fiduciary net position as a % of TPL
Covered payroll
Net pension liability (asset) as a % of covered payroll
2022*
$ 5,966,121
16,821,152
1,567,444
(10,845,200)
13,509,517
251,641,795
$ 265,151,312
$ 5,713,524
2,267,255
(18,380,677)
(10,845,200)
(159,083)
189,833
(21,214,348)
251,846,824
$ 230,632,476
$ 34,518,836
86.98%
$ 32,389,362
106.57%
* The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
2021* 2020*
2019* 2018*
$ 5,642,742 $ 5,645,675 $ 5,375,963 $ 5,253,722
15,918,254 15,244,423 14,557,634 13,864,487
2,211,218 (728,824) (171,396) (206,128)
- - 145,747 -
(10,270,056) (10,084,210) (9,652,090) (7,756,635)
13,502,158 10,077,064 10,255,858 11,155,446
238,139,637 228,062,573 217,806,715 206,651,269
$ 251,641,795 $ 238,139,637 $ 228,062,573 $ 217,806,715
$ 5,511,185 $ 5,419,109 $ 5,192,816 $ 5,146,736
2,140,878 2,144,052 2,077,001 2,023,998
29,364,122 16,076,966 28,704,340 (5,754,957)
(10,270,056) (10,084,210) (9,652,090) (7,756,635)
(135,860) (104,023) (162,161) (111,206)
930 (4,058) (4,871) (5,810)
26,611,199 13,447,836 26,155,035 (6,457,874)
225,235,625 211,787,789 185,632,754 192,090,628
$ 251,846,824 $ 225,235,625 $ 211,787,789 $ 185,632,754
$ (205,029) $ 12,904,012 $ 16,274,784 $ 32,173,961
100.08% 94.58% 92.86% 85.23%
$ 30,583,969 $ 30,616,434 $ 29,619,629 $ 28,914,263
(.67%) 42.15% 54.95% 111.27%
89
2017*
$ 5,149,378 $
13,129,452
169,296
(7,465,146)
10,982,980
195,668,289
$ 206,651,269 $
$ 5,027,855 $
1,981,736
23,456,668
(7,465,146)
(121,542)
(6,160)
22,873,411
169,217,217
$ 192,090,628 $
2016*
4,868,631 $
12,462,429
(361,966)
(6,990,135)
9,978,959
2015* 2014*
4,539,237 $ 4,331,759
12,302,430 11,698,243
(579,992) (752,184)
(595,757) -
(6,911,946) (6,588,671)
8,753,972 8,689,147
185,689,330 176,935,358 168,246,211
195,668,289 $ 185,689,330 $ 176,935,358
4,691,585 $
1,877,709
10,748,002
(6,990,135)
(121,371)
(6,539)
10,199,251
4,644,735 $ 4,787,533
1,801,285 1,789,251
235,212 8,631,343
(6,911,946) (6,588,671)
(143,262) (90,113)
(7,076) (7,409)
(381,052) 8,521,934
159,017,966 159,399,018
169,217,217 $ 159,017,966
$ 14,560,641 $
92.95%
$ 28,308,838 $
51.44%
150,877,084
$ 159,399,018
26,451,072 $ 26,671,364 $ 17,536,340
86.48% 85.64% 90.09%
26,824,411 $ 25,732,638 $ 25,560,729
98.61% 103.65% 68.61%
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS - PENSION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
2023* 2022* 2021* 2020* 2019* 2018* 2017* 2016* 2015*
Actuarially deteinmiedcontnbutions $ 5,917,958 $ 5,518,493 $ 5,534,917 $ 5,532,423 $ 5,174,020 $ 5,094,779 $ 4,971,811 $ 4,670,520 $ 4,602,538
Actual contnbutions (5,917,958) (5,518,493) (5,534,917) (5,532,423) (5,174,020) (5,094,779) (4,971,811) (4,670,520) (4,602,538)
Contributions deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Covered payroll $ 33,832,208 $ 31,442,237 $ 30,853,753 $ 31,348,108 $ 29,411,252 $ 28,640,420 $ 28,113,691 $ 26,464,297 $ 25,453,407
Ratio of actual contributions to
covered payroll amount
17.49% 17.55% 17.94% 17.65% 17.59% 17.79% 17.69% 17.65% 18.08%
* The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
Notes to Schedule
Valuation Date
Actuarial determined contribution rates are calculated as of December 31 st each year and become effective in
January, 13 months later
Methods and Assumptions Used to Dete,nline Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 22 years
Asset Valuation Method 10 year smoothed market; 12% soft corridor
Inflation 2.5%
Salary Increases 3.5% to 11.5% including inflation
Investment Rate of Return 6.75%
Retirement Age Experience -based table of rates that are specific to the City's plan of benefits. Last updated for the 2019
valuation pursuant to an experience study of the period 2014 - 2018.
Mortality Post -retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully
generational basis with scale UMP. Pre -retirement PUB (10) mortality tables with the Public Safety table
used for males and the General Employee table used for females. The rates are projected on a fully
generational basis with scale UMP.
Other information:
Notes:
There were no benefit changes during the year.
90
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
Total OPEB liability
Service cost
Interest on total OPEB liability
Effect of changes of benefit terms
Effect of difference between expected
and actual experience
Contributions - other
Effect of changes of assumptions
Administrative expense
Benefit payments
Net change in OPEB liability
Beginning balance
Ending balance
Plan fiduciary net position
Contributions - employer
Contributions - other
Net investment income (loss)
Difference in expected
and actual net investment
income
Benefit payments
Administrative expense
Net change in plan fiduciary
net position
Beginning balance
Ending balance
2023*
$ 306,311
1,531,512
252,575
(171,897)
(1,226,752)
691,749
20,686,885
$ 21,378,634
$ 1,906,655
252,575
754,490
262,122
(1,226,752)
(171,897)
1,777,193
9,805,849
$ 11,583,042
City's net OPEB liability ending $
Plan fiduciary net position as a %
of the total OPEB liability
2022*
$ 331,127
1,603,744
(200,028)
246,671
(1,824,415)
(144,973)
(1,053,109)
(1,040,983)
21,727,868
$ 20,686,885
2021*
$ 287,730 $
1,539,416
281,524
(140,970)
(955,297)
1,012,403
20,715,465
$ 21,727,868
$ 1,663,312 $
246,671
(1,928,493)
(1,053,109)
(144,973)
(1,216,592)
11,022,441
$ 9,805,849
9,795,592 $ 10,881,036
54%
Covered employee payroll $ 33,832,208
City's net OPEB liability as a %
of covered employee payroll
29%
47%
$ 31,442,237
35%
2020*
267,668 $
1,379,257
(627,155)
276,885
1,322,815
(131,481)
(898,811)
1,589,178
19,126,287
$ 20,715,465
1,515,094 $
281,524
668,472
950,076
(955,297)
(140,970)
2,318,899
8,703,542
$ 11,022,441
$ 10,705,427 $
51%
$ 30,853,753 $
35%
2019*
435,930 $
1,360,548 1,271,483
2018*
270,205
(135,119)
(1,019,931)
911,633
18,214,654
$ 19,126,287
1,455,171 $
276,885
577,387
11,026
(898,811)
(131,481)
1,290,177
7,413,365
8,703,542 $
12,011,923 $
42%
1,583,715
270,205
502,656
(226,279)
(1,019,931)
(135,119)
2017*
447,155 $ 75,083
825,331
1,459,988 432,425
(798,143) 5,480,748
(1,332,839)
5,480,748
11,583,704
$ 17,064,452
1,832,839
559,716
(1,332,839)
(13,525)
1,046,191
4,313,417
$ 5,359,608
11,712,922 $ 11,776,536 $ 11,704,844
(1,230,281)
1,150,202
17,064,452
$ 18,214,654
$ 1,754,093 $
320,471
381,824
(1,230,281)
(147,597)
975,247 1,078,510
6,438,118 5,359,608
7,413,365 $ 6,438,118
39%
31,348,108 $ 29,411,252 $ 28,640,420 $ 25,944,080
38%
40%
35% 31%
41% 45%
* This schedule is presented to illustrate the requirement to show ten years of information. However, until a full ten-year trend is available, the schedule will present the information that is
available.
91
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS - OPEB TRUST
FOR THE FISCAL YEAR ENDED SEPTEMBER 30
2023* 2022*
Actuarially determined contribution $ 1,297,029
Contributed in relation to the actuarially
determined contribution
Contribution deficiency (excess)
$ 1,300,719 $
1,906,655 1,663,312
$ (609,626) $ (362,593) $
Covered employee payroll $ 33,832,208
Contributions as a percentage of
covered employee payroll
5.6%
2021* 2020*
2019*
1,421,454 $ 1,388,216 $ 1,486,177
2018*
$ 1,492,738 $
1,515,094 1,455,171 1,583,715
(93,640) $ (66,955) $ (97,538) $
$ 31,442,237 $ 30,853,753 $ 31,348,108 $ 29,411,252
5.3%
4.9% 4.6%
5.4%
2017*
1,226,144
1,754,093 1,832,839
(261,355) $ (606,695)
$ 28,640,420 $ 25,944,080
6.1%
* This schedule is presented to illustrate the requirement to show ten years of information. However, until a full ten-year trend is available, the schedule will present the
information that is available.
Notes to Schedule
Significant assumptions used in preparation of actuarial valuation
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Amortization period for new losses
Asset valuation method
Discount rate
Inflation
Healthcare cost trend rates
Dental cost trend rates
Salary increases including inflation
Long-term investment rate of return,
net of investment expense
Retirement age
Mortality
10/1/2021
Entry Age Normal
Level Dollar Method
24 years - closed period
25 years - closed period
Market value
7.5%
2.5%
7.10% increasing/decreasing annually to 4.2% in 2048+
3.0% per annum
3.00%
92
7.5%
Varies with age and service level
Sex distinct PUB 2010 general employee retiree
mortality tables based upon public plan experience
only. Mortality improvement scale used is the MP-
2021 table.
7.1%
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2023
Revenues
General property tax
Current and delinquent taxes
Penalty and interest
Total property tax
Gross receipts and mixed beverage tax
Telephone line access fee
Electric company
Gas company
Cable TV
City garbage service
Water and wastewater system
Others
Total gross receipts and
mixed beverage tax
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
Total fines and fees
Licenses and permits
Building permits
Miscellaneous permits
Minimum housing
Total licenses and permits
Investment income
Intergovernmental
Other revenues
Rental income
Swimming pools
Miscellaneous income
Total other revenues
Total revenues
Budgeted Amounts
Original Final
$ 19,789,934 $
80,000
19,869,934
98,809
1,620,378
431,092
240,000
318,777
1,500,138
190,478
4,399,672
16,748,121
1,548,636
650,000
7,500
900,000
3,500
15,500
77,652
3,202,788
300,000
257,400
65,000
622,400
38,402
436,294
529,970
200,000
205,440
935,410
46,253,021
19,789,934 $
80,000
19,869,934
98,809
1,620,378
431,092
240,000
318,777
1,500,138
190,478
4,399,672
16,748,121
1,548,636
650,000
7,500
900,000
3,500
15,500
77,652
3,202,788
300,000
257,400
65,000
622,400
38,402
436,294
529,970
200,000
205,440
935,410
46,253,021
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
19,841,189 $
82,978
19,924,167
87,033
1,663,060
643,892
212,941
345,503
1,579,218
245,134
4,776,781
18,160,781
1,651,213
682,500
8,328
1,090,244
6,584
18,422
63,955
3,521,246
789,319
242,240
85,865
1,117,424
776,630
2,576,230
751,245
275,443
218,603
1,245,291
52,098,550
51,255
2,978
54,233
(11,776)
42,682
212,800
(27,059)
26,726
79,080
54,656
377,109
1,412,660
102,577
32,500
828
190,244
3,084
2,922
(13,697)
318,458
489,319
(15,160)
20,865
495,024
738,228
2,139,936
221,275
75,443
13,163
309,881
5,845,529
93
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2023
Expenditures
Current
Culture and recreation
Development services
General and administrative
Highways and streets
Public safety
Debt service
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) ofrevenues
over (under) expenditures
Other financing sources (uses)
Proceeds from sale of assets
Issuance of subscription debt
Transfers in
Transfers out
Total other financing
sources (uses), net
Net change in fund balance
Fund balance,
beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 4,007,096
1,031,504
17,938,476
1,957,802
30,538,553
55,473,431
(9,220,410)
5,000
3,505,927
(3,110,917)
400,010
(8,820,400)
25,305,905
$ 16,485,505
$ 4,007,096
1,031,504
17,926,913
1,957,802
30,538,553
55,461,868
(9,208,847)
5,000
3,505,927
(3,122,480)
388,447
(8,820,400)
25,305,905
Actual
GAAP
Basis
$ 3,745,511
961,916
15,708,777
1,637,543
29,630,409
$ 16,485,505 $
171,466
1,301
51,856,923
241,627
2,618
323,561
1,627,682
(3,125,692)
(1,171,831)
(930,204)
25,305,905
(Continued)
Variance with
Final Budget
Positive
(Negative)
$ 261,585
69,588
2,218,136
320,259
908,144
(171,466)
(1,301)
3,604,945
9,450,474
(2,382)
323,561
(1,878,245)
(3,212)
(1,560,278)
7,890,196
24,375,701 $ 7,890,196
94
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax $ 17,634,077 $ 17,634,077 $ 18,709,978 $ 1,075,901
Investment income 27,106 27,106 1,168,749 1,141,643
Total revenues 17,661,183 17,661,183 19,878,727 2,217,544
Expenditures
General and administrative 11,856,052 12,250,487 12,583,319 (332,832)
Capital outlay 482,972 482,972 482,972
Total expenditures 12,339,024 12,733,459 12,583,319 150,140
Excess of revenues
over expenditures 5,322,159 4,927,724 7,295,408 2,367,684
Other fmancing uses
Transfers out (3,731,823) (4,610,297) (2,650,955) 1,959,342
Total other financing uses (3,731,823) (4,610,297) (2,650,955) 1,959,342
Net change in fund balance 1,590,336 317,427 4,644,453 4,327,026
Fund balance, beginning of year 8,698,251 8,698,251 8,698,251
Fund balance, end of year $ 10,288,587 $ 9,015,678 $ 13,342,704 $ 4,327,026
95
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Council adheres to the following 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 expenses and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 30, 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 or expenses 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 projects
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 Budgetary Comparison Schedules — general fund and car rental tax special revenue fund present
a comparison of budgetary data to actual results. These funds utilize the same basis of accounting for
both budgetary purposes and actual results. A budgetary comparison schedule is not presented for
the Glade Parks PID fund due to lack of budgeted activity for the prior and current years.
96
COMBINING AND 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.
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 revenues can only
be spent on parks, library, debt service, and economic development activities within the City of
Euless.
Police Drug Enforcement Fund — to account for proceeds from the sale of assets seized in
connection with drug arrests. Revenues are used solely for police department expenditures.
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.
Grant Fund — to account for grant revenues received by the City, which must be spent in
accordance with grant provisions.
Police Seized Asset Fund — to account for resources received from asset forfeiture pursuant to
court judgment File No. 09-13-640 to be administered in compliance with Chapter 59, Texas
Code of Criminal Procedure.
Juvenile Case Fund — to account for a fee added to municipal court citations. This fee is used to
support the expenditures associated with juvenile case processing.
Glade Parks Public Improvement District (PID) Fund — to account for the accumulation of
resources from an assessment levied upon properties within the district boundaries. The
resources are utilized for the repayment of debt issued to fund public improvements within the
district. The district assesses property owners only for the portion of the debt payment not
covered with resources of the Glade Parks TIRZ #3.
Tax Increment Reinvestment Zone #3 — Glade Parks Fund (TIRZ #3) — to account for the
accumulation of a portion of the incremental property taxes from taxing entities participating in
the tax increment reinvestment zone. The resources are used for the repayment of debt issued to
fund public improvements within the zone.
98
NON -MAJOR GOVERNMENTAL FUNDS — Continued
Midtown Public Improvement District (PID) Fund — to account for the accumulation of resources
from an assessment levied upon properties within the district boundaries. The resources are
utilized for the repayment of debt issued to fund public improvements within the district.
Midtown TIRZ #4 Fund — to account for the accumulation of a portion of the incremental
property taxes from taxing entities participating in the tax increment reinvestment zone. The
resources are used for the repayment of debt issued to fund public improvements within the zone.
The TIRZ #4 fund revenues reduce the amount of revenue needed from the Midtown PID fund to
pay debt service.
Cable PEG Fees Fund — to account for a 1 % fee collected from cable channel providers for
expansion of the city's public, educational, and governmental access channel.
CAPITAL PROJECTS FUNDS
Half -Penny Sales Tax CIP Fund — to account for bond proceeds and sales tax receipts to be
expended for capital 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.
Street CIP Fund — to account for street construction and reconstruction projects and the means of
financing such improvements.
General CIP Fund — to account for various general construction projects within the City.
Redevelopment CIP Fund — to account for land acquisition and revitalization projects designed
to enhance development and promote redevelopment throughout the community.
Midtown Reserve Fund — to account for resources used to re-establish the Midtown debt reserve.
TIRZ #4 Midtown CIP Fund — to account for construction projects and the means of financing
such projects within the development area generally known as Founders Parc, formerly Euless
Midtown.
Car Rental CIP Fund — to account for building and infrastructure projects that are funded from
short-term motor vehicle rental tax.
99
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2023
Special Revenue Funds
Police Crime
Drug Control and
Hotel/ Half -Penny Enforce- Prevention
Motel Sales Tax ment District Grant
Fund Fund Fund Fund Fund
ASSETS
Deposits and investments $ 2,342,079 $ 4,652,291 $ 745,029 $ 1,727,880 $ 102,300
Accounts receivable 378,361 - 251,379
Property taxes receivable -
Accrued interest receivable 33,430 -
Due from other governments - 1,395,263 10,000 701,990
Lease receivable - 1,684,765 -
Prepaids and deposits -
Restricted deposits and investments
Total assets $ 2,720,440 $ 7,765,749 $ 755,029 $ 2,429,870 $ 353,679
LIABILITIES
Accounts payable $ 362,410 $ 155,801 $ 249,558 $ 17,628 $
Contracts payable -
Accrued salaries and wages - 66,375 72,674 745
Unearned revenue - - - 352,934
Total liabilities 362,410 222,176 249,558 90,302 353,679
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - other
Deferred inflows related to leases
1,684,765
Total deferred inflows ofresources - 1,684,765
FUND BALANCES
Nonspendable - - -
Restricted, debt service - 418,344 -
Restricted, capital projects -
Restricted, developer agreements
Restricted, juvenile case management -
Restricted, cable PEG fees -
Restricted, historical preservation 843 - -
Assigned 2,357,187 5,440,464 505,471 2,339,568
Total fund balances
2,358,030 5,858,808 505,471 2,339,568
Total liabilities, deferred inflows of
resources, and find balances $ 2,720,440 $ 7,765,749 $ 755,029 $ 2,429,870 $ 353,679
100
Special Revenue Funds
Police Cable Special
Seized Juvenile Glade Parks TIRZ#3 Midtown TIRZ#4 PEG Revenue
Assets Case PID Glade Parks PID Midtown Fees Funds
Fund Fund Fund Fund Fund Fund Fund Totals
$ 215,994 $ 220,131 $ 750,000 $ 4,511,272 $ 77,276 $ 756,358 $ 583,264 $ 16,683,874
- - 72,929 - 1,935 17,000 721,604
36,485 156,248 - 192,733
- - - - - 33,430
- - - - - 2,107,253
- 1,684,765
12,219 12,219
$ 215,994 $ 220,131 $ 750,000 $ 4,620,686 $ 77,276 $ 914,541 $ 612,483 $ 21,435,878
$ $ 138 $ - $ $ 2,126 $ - $ 895 $ 788,556
456 573 140,823
- 352,934
456 711 - 2,126 - 895 1,282,313
39,223 - - 39,223
1,684,765
39,223 1,723,988
- - - 12,219 12,219
750,000 - - 1,168,344
219,420 - - - 219,420
- - - 599,369 599,369
- - - - - 843
215,538 - - 4,620,686 35,927 914,541 - 16,429,382
215,538 219,420 750,000 4,620,686 35,927 914,541 611,588 18,429,577
$ 215,994 $ 220,131 $ 750,000 $ 4,620,686 $ 77,276 $ 914,541 $ 612,483 $ 21,435,878
101
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS - CONTINUED
SEPTEMBER 30, 2023
Half -Penny
Sales Tax
CIP
Fund
Developers'
Contribution
Fund
Capital Project Funds
Street General
CIP CIP
Fund Fund
ASSETS
Deposits and investments $ 3,483,550 $ 2,414,234 $ 699,370 $ 5,132,755
Accounts receivable 6,325 7,089
Property taxes receivable -
Accrued interest receivable 19,445 736 21,667
Due from other govemments
Lease receivable
Prepaids and deposits
Restricted deposits and investments 6,165,036 7,912,322
Total assets
Redevelopment
CIP
Fund
$ 1,125,914
3,502,995 $ 2,414,234 $ 6,871,467 $ 13,073,833 $ 1,125,914
LIABILITIES
Accounts payable $ 63,021 $
Conliacts payable
Accrued salaries and wages -
Unearned revenue
108,023 $ 12,650 $
Total liabilities 63,021 108,023 12,650
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - other
Deferred inflows related to leases
Total deferred inflows of resources
FUND BALANCES
Nonspendable
Restricted, debt service
Restricted, capital projects
Restricted, developer agreements
Restricted, juvenile case management
Restricted, cable PEG fees
Restricted, historical preservation
Assigned
Total find balances
Total liabilities, deferred inflows of
resources, and find balances
3,439,974
6,165,036
2,306,211 -
- $ 9,270
436,426
436,426
7,475,896
693,781 5,161,511
3,439,974 2,306,211 6,858,817
12,637,407
9,270
1,116,644
1,116,644
$ 3,502,995 $ 2,414,234 $ 6,871,467 $ 13,073,833 $ 1,125,914
102
Capital Project Funds
TIRZ#4 Car Capital Total
Midtown Midtown Rental Project Non -major
Reserve CIP CIP Funds Governmental
Fund Fund Fund Totals Funds
$ 999,725 $ $ 1,368,058 $ 15,223,606 $ 31,907,480
- - 13,414 735,018
- - - - 192,733
- - 41,848 75,278
- - - 2,107,253
- - - - 1,684,765
- - - - 12,219
69,475 14,146,833 14,146,833
$ 999,725 $ 69,475 $ 1,368,058 $ 29,425,701 $ 50,861,579
$ $ - $ 155,026 $ 347,990 $ 1,136,546
- - - 436,426 436,426
- - - - 140,823
- - - - 352,934
999,725
155,026 784,416 2,066,729
39,223
1,684,765
1,723,988
- 12,219
- 999,725 2,168,069
69,475 - 13,710,407 13,710,407
- - 2,306,211 2,306,211
- - - 219,420
- - - 599,369
- - 843
1,213,032 11,624,942 28,054,324
999,725 69,475 1,213,032 28,641,285 47,070,862
$ 999,725 $ 69,475 $ 1,368,058 $ 29,425,701 $ 50,861,579
103
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NON -MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2023
Special Revenue Funds
Police Crime
Drug Control and
Hotel/ Half -Penny Enforce- Prevention
Motel Sales Tax ment District Grant
Fund Fund Fund Fund Fund
Revenues
General property tax $ - $ $ $ $
Gross receipts tax 1,829,672
General sales tax - 7,448,650 3,707,530
Investment income 93,038 152,704 21,023 64,455
DEA revenues 35,377 -
Intergovernmental - 335,583
Rents and royalties - 84,332 -
Other revenues - - - 10,925 -
Total revenues 1,922,710 7,685,686 56,400 3,782,910 335,583
Expenditures
Culture and recreation 3,383,258
Development services - 225,461
General and administrative 806,474 1,466,054
Highways and streets - -
Public safety - 42,126 3,000,787 199,417
Debt service
Principal 229,856
Interest and fiscal charges 173,975
Capital outlay 57,362 20,137 13,980 161,285
Total expenditures 806,474 5,535,966 62,263 3,014,767 360,702
Excess (deficiency) of revenues
over (under) expenditures 1,116,236 2,149,720 (5,863)
Other financing sources (uses)
Issuance of subscription debt 14,233
Proceeds from sale of assets -
Transfers in - 5,000 24,842
Transfers out (914,568) (4,023,324) - (965,000) -
Total other
financing sources (uses), net
Net change in fund balances
Fund balance,
beginning of year
Fund balance, end of year
768,143 (25,119)
(914,568) (4,009,091) 5,000 (965,000) 24,842
201,668 (1,859,371) (863) (196,857) (277)
2,156,362 7,718,179 506,334 2,536,425 277
$ 2,358,030 $ 5,858,808 $ 505,471 $ 2,339,568 $
104
Special Revenue Funds
Police Cable Special
Seized Juvenile Glade Parks TIRZ#3 Midtown TIRZ#4 PEG Revenue
Asset Case PID Glade Parks PID Midtown Fees Funds
Fund Fund Fund Fund Fund Fund Fund Totals
$ $ $ $ 1,664,748 $ - $ 877,004 $ $ 2,541,752
- 72,047 1,901,719
- 448,863 - 12,981 - 11,618,024
9,524 8,641 - 186,532 5,625 28,287 569,829
- - - - - 35,377
335,583
- - 84,332
43,667 - - 287,767 - 342,359
9,524 52,308 - 2,300,143 293,392 889,985 100,334 17,428,975
3,383,258
225,461
22,044 - - 12,485 48,564 2,355,621
17,046 - - - - - 3,259,376
229,856
173,975
85,168 337,932
17,046 22,044 - - 12,485 133,732 9,965,479
(7,522) 30,264 - 2,300,143 280,907 889,985 (33,398) 7,463,496
14,233
29,842
(1,138,418) (306,214) (764,199) (8,111,723)
(1,138,418) (306,214) (764,199) (8,067,648)
(7,522) 30,264 1,161,725 (25,307) 125,786 (33,398) (604,152)
223,060 189,156 750,000 3,458,961 61,234 788,755 644,986 19,033,729
$ 215,538 $ 219,420 $ 750,000 $ 4,620,686 $ 35,927 $ 914,541 $ 611,588 $ 18,429,577
105
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NON -MAJOR GOVERNMENTAL FUNDS - CONTINUED
YEAR ENDED SEPTEMBER 30, 2023
Revenues
General property tax
Gross receipts tax
General sales tax
Investment income
DEA revenues
Intergovernmental
Rents and royalties
Other revenues
Total revenues
Capital Project Funds
Half -Penny
Sales Tax Developers' Street General Redevelopment
CIP Contribution CIP CIP CIP
Fund Fund Fund Fund Fund
167,950 87,218 319,750 574,089
195,450
46,764
1,488
167,950 88,706 515,200 620,853
73,689
73,689
Expenditures
Culture and recreation 112,033 466
Development services -
General and administrative - 171,890
Highways and streets - 393,873
Public safety -
Debt service
Principal
Interest and fiscal charges Capital outlay 1,707,863 - 1,497,671 1,666,961 817,335
Total expenditures 1,819,896 466 1,891,544 1,666,961 989,225
Excess (deficiency) of revenues
over (under) expenditures (1,651,946) 88,240 (1,376,344) (1,046,108) (915,536)
Other financing sources (uses)
Issuance of subscription debt -
Proceeds from sale of assets 59,295
Transfers in 3,881,920 1,335,275 2,188,474 1,000,000
Transfers out (12,288)
Total other
financing sources (uses), net 3,881,920 (12,288) 1,335,275 2,188,474 1,059,295
Net change in fund balances 2,229,974 75,952 (41,069) 1,142,366 143,759
Fund balance,
beginning of year 1,210,000 2,230,259 6,899,886 11,495,041 972,885
Fund balance, end of year $ 3,439,974 $ 2,306,211 $ 6,858,817 $ 12,637,407 $ 1,116,644
106
Capital Project Funds
TIRZ #4 Car Capital Total
Midtown Midtown Rental Project Non -major
Reserve CIP CIP Funds Governmental
Fund Fund Fund Totals Funds
$ - $ $ $ - $ 2,541,752
1,901,719
- - 11,618,024
35,176 1,257,872 1,827,701
35,377
- 195,450 531,033
46,764 131,096
- 1,488 343,847
35,176 1,501,574 18,930,549
112,499 3,495,757
225,461
13,970 185,860 2,541,481
393,873 393,873
3,259,376
229,856
173,975
516,647 6,206,477 6,544,409
530,617 6,898,709 16,864,188
(495,441) (5,397,135) 2,066,361
14,233
59,295 59,295
8,405,669 8,435,511
(12,288) (8,124,011)
8,452,676 385,028
(495,441) 3,055,541 2,451,389
999,725 69,475 1,708,473 25,585,744 44,619,473
$ 999,725 $ 69,475 $ 1,213,032 $ 28,641,285 $ 47,070,862
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, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax $ 1,511,272 $ 1,511,272 $ 1,829,672 $ 318,400
Investment income 3,307 3,307 93,038 89,731
Total revenues 1,514,579 1,514,579 1,922,710 408,131
Expenditures
General and administrative 815,984 815,984 806,474 9,510
Total expenditures 815,984 815,984 806,474 9,510
Excess of revenues
over expenditures 698,595 698,595 1,116,236 417,641
Other financing uses
Transfers out (919,428) (919,428) (914,568) 4,860
Total other financing uses (919,428) (919,428) (914,568) 4,860
Net change in fund balance (220,833) (220,833) 201,668 422,501
Fund balance, beginning of year 2,156,362 2,156,362 2,156,362
Fund balance, end of year $ 1,935,529 $ 1,935,529 $ 2,358,030 $ 422,501
108
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, 2023
Revenues
General sales tax
Investment income
Rents and royalties
Total revenues
Expenditures
Culture and recreation
Development services
General and administrative
Debt service
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues
over expenditures
Other fmancing sources (uses)
Issuance of subscription debt
Transfers out
Total other financing sources (uses), net
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 6,882,101
12,928
113,845
7,008,874
4,039,731
955,654
1,548,979
225,000
173,976
6,943,340
65,534
(4,092,940)
(4,092,940)
(4,027,406)
7,718,179
$ 6,882,101
12,928
113,845
7,008,874
4,039,731
955,654
1,548,979
225,000
173,976
6,943,340
65,534
(4,092,940)
(4,092,940)
(4,027,406)
7,718,179
Actual
GAAP
Basis
$ 7,448,650
152,704
84,332
7,685,686
3,440,620
225,461
1,466,054
229,856
173,975
5,535,966
2,149,720
14,233
(4,023,324)
(4,009,091)
(1,859,371)
7,718,179
Variance with
Final Budget
Positive
(Negative)
$ 566,549
139,776
(29,513)
676,812
599,111
730,193
82,925
(4,856)
1
1,407,374
2,084,186
14,233
69,616
83,849
2,168,035
$ 3,690,773 $ 3,690,773 $ 5,858,808 $ 2,168,035
109
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, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 1,336 $ 1,336 $ 21,023 $ 19,687
DEA revenues 30,000 30,000 35,377 5,377
Total revenues 31,336 31,336 56,400 25,064
Expenditures
Public safety 220,000 220,000 62,263 157,737
Total expenditures 220,000 220,000 62,263 157,737
Excess (deficiency) of revenues
over (under) expenditures (188,664) (188,664) (5,863) 182,801
Other financing sources
Transfers in 5,000 5,000 5,000
Total other
financing sources 5,000 5,000 5,000
Net change in fund balance (183,664) (183,664) (863) 182,801
Fund balance, beginning of year 506,334 506,334 506,334 -
Fund balance, end of year $ 322,670 $ 322,670 $ 505,471 $ 182,801
110
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, 2023
Revenues
General sales tax
Other revenue
Investment income
Total revenues
Expenditures
Public safety
Total expenditures
Excess of revenues
over expenditures
Other financing uses
Transfers out
Total other
financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 3,458,813 $ 3,458,813
10,925 10,925
2,178 2,178
3,471,916
3,274,018
3,274,018
197,898
(965,000)
(965,000)
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
$ 3,707,530 $ 248,717
10,925 -
64,455 62,277
3,471,916 3,782,910 310,994
3,274,018 3,014,767 259,251
259,251
3,274,018
197,898
(965,000)
(965,000)
3,014,767
768,143
(965,000)
(965,000)
570,245
(767,102) (767,102) (196,857) 570,245
2,536,425 2,536,425 2,536,425 -
$ 1,769,323 $ 1,769,323 $ 2,339,568 $ 570,245
111
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
GRANT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Intergovernmental $ 40,988 $ 283,003 $ 335,583 $ 52,580
Total revenues 40,988 283,003 335,583 52,580
Expenditures
Public safety 52,918 352,747 360,702 (7,955)
Total expenditures 52,918 352,747 360,702 (7,955)
Excess (deficiency) of revenues
over (under) expenditures (11,930) (69,744) (25,119) 44,625
Other financing sources (uses)
Transfers in 11,930 23,493 24,842 1,349
Transfers out (635,925) (635,925) 635,925
Total other financing sources (uses), net (623,995) (612,432) 24,842 637,274
Net change in fund balance (635,925) (682,176) (277) 681,899
Fund balance, beginning of year 277 277 277 -
Fund balance, end of year ($ 635,648) ($ 681,899) $ $ 681,899
112
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
POLICE SEIZED ASSET SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 435 $ 435 $ 9,524 $ 9,089
Total revenues 435 435 9,524 9,089
Expenditures
Public safety 49,471 49,471 17,046 32,425
Total expenditures 49,471 49,471 17,046 32,425
Net change in fund balance (49,036) (49,036) (7,522) 41,514
Fund balance, beginning of year 223,060 223,060 223,060
Fund balance, end of year $ 174,024 $ 174,024 $ 215,538 $ 41,514
113
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
JUVENILE CASE SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 503 $ 503 $ 8,641 $ 8,138
Other revenues 45,528 45,528 43,667 (1,861)
Total revenues 46,031 46,031 52,308 6,277
Expenditures
General and administrative 42,055 42,055 22,044 20,011
Total expenditures 42,055 42,055 22,044 20,011
Net change in fund balance 3,976 3,976 30,264 26,288
Fund balance, beginning of year 189,156 189,156 189,156
Fund balance, endofyear $ 193,132 $ 193,132 $ 219,420 $ 26,288
114
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
TIRZ #3 GLADE PARKS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax $ 1,696,504 $ 1,696,504 $ 1,664,748 $ (31,756)
General sales tax 433,321 433,321 448,863 15,542
Investment income 5,151 5,151 186,532 181,381
Total revenues 2,134,976 2,134,976 2,300,143 165,167
Other financing uses
Transfers out (1,138,418) (1,138,418) (1,138,418) -
Total other financing uses (1,138,418) (1,138,418) (1,138,418) -
Net change in fund balance 996,558 996,558 1,161,725 165,167
Fund balance, beginning of year 3,458,961 3,458,961 3,458,961 -
Fund balance, end of year $ 4,455,519 $ 4,455,519 $ 4,620,686 $ 165,167
115
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
MIDTOWN PID SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues $ 337,464 $ 337,464 $ 287,767 $ (49,697)
Investment income 641 641 5,625 4,984
Total revenues 338,105 338,105 293,392 (44,713)
Expenditures
General and administrative 31,250 31,250 12,485 18,765
Total expenditures 31,250 31,250 12,485 18,765
Excess of revenues over expenditures 306,855 306,855 280,907 (25,948)
Other fmancing uses
Transfers out (306,214) (306,214) (306,214) -
Total other financing uses (306,214) (306,214) (306,214) -
Net change in fund balance 641 641 (25,307) (25,948)
Fund balance, beginning of year 61,234 61,234 61,234 -
Fund balance, end of year $ 61,875 $ 61,875 $ 35,927 $ (25,948)
116
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
TIRZ #4 MIDTOWN SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Revenues
Property tax revenues
General sales tax
Total revenues
Other financing uses
Transfers out
Total other financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 914,239 $
18,809
914,239 $
18,809
933,048 933,048
(764,199)
(764,199)
168,849
788,755
$ 957,604 $
(764,199)
(764,199)
168,849
788,755
957,604 $
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
877,004 $ (37,235)
12,981 (5,828)
889,985 (43,063)
(764,199)
(764,199)
125,786 (43,063)
788,755
914,541 $ (43,063)
117
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
BUDGET AND ACTUAL
CABLE PEG FEES SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2023
Revenues
Gross receipts tax
Investment income
Total revenues
Expenditures
General and administrative
Capital outlay
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Budgeted Amounts
Original Final
$ 85,000 $
1,029
86,029
35,600
164,400
200,000
(113,971)
644,986
$ 531,015 $
85,000 $
1,029
86,029
35,600
164,400
200,000
(113,971)
644,986
531,015 $
Actual
GAAP
Basis
Variance with
Final Budget
Positive
(Negative)
72,047 $
28,287
100,334
48,564
85,168
133,732
(33,398)
644,986
611,588 $ 80,573
(12,953)
27,258
14,305
(12,964)
79,232
66,268
80,573
118
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 City on a cost reimbursement basis.
Equipment Replacement Fund — to account for the accumulation of funds to be used for
replacement of existing equipment. Funding is provided annually by the user departments.
Insurance Fund — to account for the revenues and expenses resulting from providing health
insurance to the City's employees.
Risk Management/Workers' Compensation (Risk/WC) Fund — to account for the revenue
and expenses applicable to providing workers' compensation coverage for all City
employees, as well as, general liability and property coverage.
119
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2023
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund
ASSETS
Total
Current Assets
Deposits and investments $ 22,344,556 $ 4,664,256 $ 2,891,339 $ 29,900,151
Accounts receivable - 1,602,546 58,885 1,661,431
Prepaid expenses 1,058,255 - - 1,058,255
Accrued interest receivable 190,672 53,401 9,125 253,198
Restricted deposits and investments 311,136 - - 311,136
Total current assets 23,904,619 6,320,203 2,959,349 33,184,171
Non -current Assets
Property, plant, and equipment, at cost
Equipment 18,630,016 - 113,813 18,743,829
Less accumulated depreciation 11,667,449 - 59,911 11,727,360
Net property, plant, and equipment 6,962,567 - 53,902 7,016,469
Total assets 30,867,186 6,320,203 3,013,251 40,200,640
LIABILITIES
Current Liabilities
Accounts payable 5,032 59,152 277,286 341,470
Accrued salary and wages - 3,264 5,539 8,803
Current portion of compensated absences - 145 222 367
Accrued insurance claims - 986,000 - 986,000
Total current liabilities 5,032 1,048,561 283,047 1,336,640
Non -current Liabilities
Compensated absences - 1,306 1,997 3,303
Total non -current liabilities - 1,306 1,997 3,303
Total liabilities 5,032 1,049,867 285,044 1,339,943
NET POSITION
Net investment in capital assets 6,962,567 - 53,902 7,016,469
Unrestricted 23,899,587 5,270,336 2,674,305 31,844,228
Total net position $ 30,862,154 $ 5,270,336 $ 2,728,207 $ 38,860,697
120
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2023
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Operating revenues
Insurance premiums $ - $ 6,812,237 $ 516,781 $ 7,329,018
Service fees and miscellaneous 8,414,493 1,191,270 - 9,605,763
Total operating revenues 8,414,493 8,003,507 516,781 16,934,781
Operating expenses
General and administrative 453,677 2,107,173 107,347 2,668,197
Insurance costs 6,733,757 975,024 7,708,781
Depreciation 1,757,321 15,629 1,772,950
Total operating expenses 2,210,998 8,840,930 1,098,000 12,149,928
Operating income (loss) 6,203,495 (837,423) (581,219) 4,784,853
Nonoperating revenues
Gain (loss) on sale of capital assets 62,020 (1,665) 60,355
Investment income 720,510 190,654 94,711 1,005,875
Total nonoperating revenues 782,530 190,654 93,046 1,066,230
Income (loss) before transfers 6,986,025 (646,769) (488,173) 5,851,083
Transfers
Transfers in 772,481 - 900,000 1,672,481
Total transfers 772,481 - 900,000 1,672,481
Change in net position 7,758,506 (646,769) 411,827 7,523,564
Net position, beginning of year 23,103,648 5,917,105 2,316,380 31,337,133
Net position, end of year $ 30,862,154 $ 5,270,336 $ 2,728,207 $ 38,860,697
121
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2023
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
Transfers in
Net cash provided by noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition/construction of capital assets
Proceeds from sale of capital assets
Net cash used in capital and related financing activities
INVESTING ACTIVITIES
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
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation expense
Changes in assets and liabilities
Receivables
Prepaids
Accounts payable
Accrued salaries and wages
Accrued insurance claim
Net cash provided by (used in) operating activities
Reconciliation of cash to balance sheet:
Cash - current
Cash - restricted
Cash and cash equivalents
Equipment
Replacement
Fund
Insurance
Fund
Risk/WC
Fund
Total
$ 8,414,493 $ 6,804,909 $ 516,781 $ 15,736,183
(597,538) (8,152,855) (1,074,472) (9,824,865)
(86,134) (77,207) (163,341)
7,816,955
772,481
772,481
(2,725,194)
99,904
(2,625,290)
576,389
576,389
6,540,535
16,115,157
$ 22,655,692
(1,434,080) (634,898) 5,747,977
900,000 1,672,481
900,000 1,672,481
141,790 85,586
141,790 85,586
(1,292,290) 350,688
5,956,546 2,540,651
$ 4,664,256 $ 2,891,339
(2,725,194)
99,904
(2,625,290)
803,765
803,765
5,598,933
24,612,354
$ 30,211,287
$ 6,203,495 $ (837,423) $ (581,219) $ 4,784,853
1,757,321 15,629 1,772,950
(1,198,598) (1,198,598)
(99,511) - - (99,511)
(44,350) 35,352 (69,152) (78,150)
540 (156) 384
566,049 566,049
$ 7,816,955 $ (1,434,080) $ (634,898) $ 5,747,977
$ 22,344,556 $ 4,664,256 $ 2,891,339 $ 29,900,151
311,136 - - 311,136
$ 22,655,692 $ 4,664,256 $ 2,891,339 $ 30,211,287
122
STATISTICAL SECTION
(Unaudited)
STATISTICAL SECTION
(Unaudited)
The statistical section of the City of Euless' annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the City's overall financial health.
Contents Tables
Financial Trends
The financial trend schedules contain trend information to help the reader
understand how the City's financial performance and well-being have changed
over time.
Revenue Capacity
The revenue capacity schedules contain information to help the reader assess
the City's most significant local revenue source, the property tax.
Debt Capacity
The debt capacity schedules present information to help the reader assess
the affordability of the City's current level of outstanding debt (including that
of its blended component units) and the City's ability to issue additional
debt in the future.
Demographic and Economic Information
The demographic and economic schedules offer demographic and economic
indicators to help the reader understand the environment within which
the City's financial activities occur.
Operating Information
The operating information schedules contain service and infrastructure data
to help the reader understand how the information in the City's financial
report relates to the services it provides and the activities it performs.
l-4
5-8
9-12
13-14
15-17
124
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted for debt service
Restricted for capital projects
Restricted for impact fees
Unrestricted
Total business -type activities net position
Primary goveirnnent
Net investment in capital assets
Restricted
Unrestricted
Total primary govercu.ent net position
CITY OF EULESS, TEXAS
NET POSITION BY COMPONENT — LAST TEN FISCAL YEARS
(Accrual Basis of Accounting — Unaudited)
2014 2015 2016
$ 94,162,906 $ 99,539,958 $ 108,135,655 $
4,999,085 5,666,450 17,508,943
23,921,387 17,302,574 3,610,521
$ 123,083,378 $ 122,508,982 $ 129,255,119 $
$ 55,160,900 $ 55,396,268 $ 59,184,256 $
317,758 733,562 733,164
232,300 1,183,350 4,265,268
1,876,393 1,966,315 1,980,150
15,047,592 12,554,695 11,122,601
$ 72,634,943 $ 71,834,190 $ 77,285,439 $
$ 149,323,806 $ 154,936,226 $ 167,319,911
7,425,536 9,549,677 24,487,525
38,968,979 29,857,269 14,733,122
$ 195,718,321 $ 194,343,172 $ 206,540,558
Source: Annual Comprehensive Financial Reports
Fiscal Year
2017 2018
113,509,089 $ 112,710,338
10,293,057 13,620,993
12,466,943 10,698,663
136,269,089 $ 137,029,994
62,421,284 $ 63,283,054
733,264 1,018,037
1,166,442 3,962,644
2,467,095 2,895,677
14,528,797 12,286,319
81,316,882 $ 83,445,731
$ 175,930,373 $
14,659,858
26,995,740
$ 217,585,971 $
125
Table 1
2019 2020 2021 2022 2023
$ 99,744,023
26,158,342
18,071,669
$ 143,974,034
$ 65,621,697
1,426,830
10,646,450
3,047,942
7,130,279
$ 87,873,198
175,993,392 $ 165,365,720
21,497,351 41,279,564
22,984,982 25,201,948
220,475,725 $ 231,847,232
$ 104,018,729 $ 130,459,839 $ 123,862,163 $ 130,728,192
30,103,225 7,441,090 7,579,559 8,185,722
25,147,659 37,117,415 60,034,944 70,572,250
$ 159,269,613 $ 175,018,344 $ 191,476,666 $ 209,486,164
66,554,698 $ 64,950,870 $ 73,306,877 $ 72,764,199
1,425,701 1,426,103 1,348,929 1,348,271
4,256,167 - - -
3,010,687 3,247,897 3,234,445 3,310,647
14,728,131 23,441,214 26,895,689 29,510,603
89,975,384 $ 93,066,084 $ 104,785,940 $ 106,933,720
$ 170,573,427 $ 195,410,709 $ 197,169,040 $ 203,492,391
38,795,780 12,115,090 12,162,933 12,844,640
39,875,790 60,558,629 86,930,633 100,082,853
$ 249,244,997 $ 268,084,428 $ 296,262,606 $ 316,419,884
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(Accrual Basis of Accounting - Unaudited)
Table 2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities:
Culture and recreation $ 6,424,683 $ 6,468,332 $ 6,998,904 $ 7,349,035 $ 7,070,484 $ 7,330,168 $ 5,538,905 $ 6,890,021 $ 7,714,207 $ 8,016,590
Development services 1,367,005 877,713 918,214 999,153 1,038,328 1,057,414 1,062,784 903,633 934,100 1,304,416
General and administrative 18,017,535 19,949,733 20,722,236 20,816,148 21,356,342 21,112,696 20,827,914 20,604,298 24,293,764 31,849,368
Highways and streets 3,578,341 3,374,422 3,708,184 4,143,412 3,787,336 7,193,189 3,601,998 3,905,567 4,015,628 4,591,037
Public safety 24,278,144 23,807,143 26,673,966 28,265,072 27,424,253 30,352,705 27,354,689 27,489,405 27,379,929 33,625,098
Interest on long-term debt 1,126,017 1,136,786 1,807,001 1,502,912 1,632,302 2,010,814 2,560,933 2,507,261 2,417,173 2,414,153
Total governmental activities expenses 54,791,725 55,614,129 60,828,505 63,075,732 62,309,045 69,056,986 60,947,223 62,300,185 66,754,801 81,800,662
Business -type activities:
Water and wastewater 20,298,024 19,970,346 21,009,701 21,673,844 23,225,786 23,493,321 25,333,182 24,823,460 26,754,590 29,142,646
Drainage utility 1,373,036 1,319,999 1,414,483 1,396,736 1,515,183 1,563,021 1,502,275 1,571,836 1,517,199 1,746,667
Golf 4,152,015 4,155,834 4,409,773 4,632,475 4,764,095 4,731,810 3,997,255 4,201,337 4,703,615 5,330,321
Other recreation enterprises 2,288,337 2,009,582 2,211,065 2,321,414 2,416,337 2,270,768 1,491,533 1,568,441 2,024,308 2,025,933
Total business -type activities expenses 28,111,412 27,455,761 29,045,022 30,024,469 31,921,401 32,058,920 32,324,245 32,165,074 34,999,712 38,245,567
Total primary govemment expenses
82,903,137 83,069,890 89,873,527 93,100,201 94,230,446 101,115,906 93,271,468 94,465,259 101,754,513 120,046,229
Program Revenues
Governmental activities:
Fees, fines, and charges for services
Culture and recreation 304,283 317,024 291,349 264,307 252,000 266,091 10,124 $ 295,097 $ 319,544 $ 293,667
Development services 1,321,040 1,409,703 1,717,416 2,019,496 1,875,120 2,133,420 1,697,637 1,578,146 1,149,319 1,144,743
General and administrative 1,347,600 1,342,091 1,285,797 1,156,745 1,066,075 861,929 1,067,485 687,136 787,552 62,769
Highways and streets 218,012 93,258 350,920 607,588 988,302 1,114,507 1,075,865 982,070 717,124 287,767
Public safety 3,567,917 3,452,086 3,383,743 3,151,407 3,104,895 2,541,205 2,288,377 2,325,458 3,200,585 5,015,159
Operating grants and contributions 633,080 597,437 578,007 592,870 740,969 622,061 3,594,939 810,821 1,054,703 1,163,344
Capital grants and contributions 1,552,118 3,228,945 3,375,733 2,356,556 2,354,450 1,304,420 2,190,770 396,317 550,799 530,101
Total govemmental activities program revenues 8,944,050 10,440,544 10,982,965 10,148,969 10,381,811 8,843,633 11,925,197 7,075,045 7,779,626 8,497,550
Business -type activities:
Charges for services
Water and wastewater 19,353,144 20,593,262 23,759,236 24,178,812 27,504,814 26,400,731 26,934,154 28,571,921 29,412,986 30,852,319
Drainage utility 712,971 716,595 725,152 730,202 818,622 826,711 833,890 842,003 1,193,159 958,637
Golf 3,622,952 4,168,578 4,187,728 4,247,345 4,337,003 4,067,026 3,363,915 4,350,610 5,131,494 5,159,600
Other recreation enterprises 2,241,920 1,848,434 2,059,413 2,168,944 2,123,825 2,197,926 884,286 1,433,139 1,905,434 2,001,970
Operating grants and contributions - - - - - - - - -
Capital grants and contribution 2,037,263 1,746,638 2,943,188 2,280,769 1,729,219 3,058,291 2,677,913 1,002,393 1,254,532 1,018,715
Total business -type activities program revenues 27,968,250 29,073,507 33,674,717 33,606,072 36,513,483 36,550,685 34,694,158 36,200,066 38,897,605 39,991,241
Total primary government program revenues
36,912,300 39,514,051 44,657,682 43,755,041 46,895,294 45,394,318 46,619,355 43,275,111 46,677,231 48,488,791
(Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued)
126
Net (Expense) Revenue
Governmental activities
Business -type activities
Total primary govei,ntrnt net expense
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(Accrual Basis of Accounting - Unaudited) - Continued
Table 2
$ (45,847,675) $ (45,173,585) $ (49,845,540) $ (52,926,763) $ (51,927,234) $ (60,213,353) $ (49,022,026) $ (55,225,140) $ (58,975,175) $ (73,303,112)
(143,162) 1,617,746 4,629,695 3,581,603 4,592,082 4,491,765 2,369,913 4,034,992 3,897,893 1,745,674
(45,990,837) (43,555,839) (45,215,845) (49,345,160) (47,335,152) (55,721,588) (46,652,113) (51,190,148) (55,077,282) (71,557,438)
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes, levied for general purposes 13,488,816 14,358,074 14,752,044 16,656,028 18,630,301 20,428,821 22,837,075 24,195,500 24,974,349 27,569,306
Sales taxes 17,525,123 18,359,717 20,364,878 21,252,491 20,728,210 21,419,831 22,088,364 24,373,082 28,693,421 29,778,805
Car rental taxes 14,082,518 14,112,552 14,842,109 14,401,763 14,776,566 14,797,320 10,042,659 13,062,591 18,372,898 18,709,978
Mixed beverage taxes 69,160 84,533 101,503 128,250 154,035 138,219 146,188 171,687 201,348 215,340
Hotelnnteloccupancy taxes 343,312 391,991 696,805 798,905 864,829 841,588 924,551 1,182,845 1,736,088 1,829,672
Gross receipts taxes 4,458,682 4,556,355 4,467,535 4,455,137 4,811,119 4,549,026 4,238,664 4,221,250 4,478,146 4,633,488
Investment income 70,374 127,367 271,786 451,406 963,670 1,882,696 1,054,661 123,646 804,074 5,180,191
Rents and royalties 1,390,283 1,166,832 1,105,829 1,149,534 1,223,788 1,348,465 1,462,429 1,574,739 1,567,269 1,345,885
Gain on sale of assets 84,664 - - 124,792 - - - - - -
Miscellaneous 48,773 35,128 692,939 755,996 772,773 930,764 971,040 1,081,893 1,304,396 1,354,694
Transfers 531,974 722,702 (703,751) (233,569) 760,590 820,663 551,974 986,638 (6,698,492) 695,251
Total governmental activities 52,093,679 53,915,251 56,591,677 59,940,733 63,685,881 67,157,393 64,317,605 70,973,871 75,433,497 91,312,610
Business -type activities:
Investment income 34,063 40,282 104,618 158,805 385,513 746,865 368,999 42,346 174,403 1,097,357
Gain on disposal of assets 4,199 13,185 57,466 2,873 9,500 (84,752)
Miscellaneous - - - - - 949,068
Transfers (531,974) (722,702) 703,751 233,569 (760,590) (820,663) (551,974) (986,638) 6,698,492 (695,251)
Total business -type activities (497,911) (678,221) 821,554 449,840 (372,204) (64,298) (267,727) (944,292) 7,821,963 402,106
Total primary government 51,595,768 53,237,030 57,413,231 60,390,573 63,313,677 67,093,095 64,049,878 70,029,579 83,255,460 91,714,716
Change in Net Position
Governmental activities 6,246,004 8,741,666 6,746,137 7,013,970 11,758,647 6,944,040 15,295,579 15,748,731 16,458,322 18,009,498
Business -type activities (641,073) 939,525 5,451,249 4,031,443 4,219,878 4,427,467 2,102,186 3,090,700 11,719,856 2,147,780
Total primary goverment $ 5,604,931 $ 9,681,191 $ 12,197,386 $ 11,045,413 $ 15,978,525 $ 11,371,507 $ 17,397,765 $ 18,839,431 $ 28,178,178 $ 20,157,278
(concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded)
Source: Annual Comprehensive Financial Reports
127
CITY OF EULESS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - Unaudited)
Table 3
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable $ 48,072 $ 47,834 $ 35,250 $ 52,050 $ 51,409 $ 74,835 $ 158,975 $ 223,609 $ 113,090 $ 257,194
Restricted 120,093 109,618 121,041 104,340 125,753 132,954 123,748 117,674 108,919 111,942
Assigned 121,334 116,336 113,655 107,657 121,708 135,720 145,057 164,801 187,649 203,295
Unreserved/Unassigned 10,560,958 10,775,542 11,973,524 13,185,421 14,255,823 16,630,106 19,790,726 20,240,670 24,896,247 23,803,270
Total general fund $ 10,850,457 $ 11,049,330 $ 12,243,470 $ 13,449,468 $ 14,554,693 $ 16,973,615 $ 20,218,506 $ 20,746,754 $ 25,305,905 $ 24,375,701
All Other Governmental Funds
Nonspendable $ 34,704 $ 15,399 $ 7,738 $ 22,028 $ 12,427 $ $ 24,873 $ 1,086 $ 15,655 $ 12,219
Restricted for:
Debt service 2,377,710 2,477,981 1,995,548 2,285,719 2,765,013 3,429,240 3,828,633 4,316,041 4,405,396 4,884,252
Capital projects 398,756 594,211 12,715,424 4,985,922 7,501,009 19,287,010 22,369,460 18,996,535 15,184,734 36,154,995
Other 2,089,735 2,455,941 2,718,045 2,952,158 3,229,218 3,309,138 3,081,384 3,007,375 3,065,244 3,125,843
Assigned 12,692,185 13,765,385 12,541,184 14,730,171 21,356,289 19,461,628 17,221,925 22,761,358 32,889,510 41,397,028
Total all other goveuan ntal fiords $ 17,593,090 $ 19,308,917 $ 29,977,939 $ 24,975,998 $ 34,863,956 $ 45,487,016 $ 46,526,275 $ 49,082,395 $ 55,560,539 $ 85,574,337
Source: Annual Comprehensive Financial Reports
128
CITY OF EULESS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - Unaudited)
2014 2015
Revenues:
General property tax $ 13,468,394 $ 14,351,598
Gross receipts tax 4,871,154 5,032,879
General sales tax 17,525,123 18,359,717
Car rental tax 14,082,518 14,112,552
Fines and fees 4,646,390 4,289,681
Licenses and permits 1,286,753 1,379,332
Investment income 57,880 105,443
DEA revenues 15,316 39,292
Intergovernmental 461,484 906,695
Rents and royalties 1,390,283 637,196
Other revenues 1,210,086 1,795,395
Total Revenues 59,015,381 61,009,780
Expenditures:
Culture and recreation 5,558,463 5,704,520
Development services 1,017,903 882,212
General and administrative 17,711,441 18,357,428
Highways and streets 1,351,404 1,606,372
Public safety 23,121,457 23,521,280
Debt Service:
Principal 5,567,404 4,284,197
Interest and fiscal charges 1,148,069 1,243,589
Issuance costs - Capital outlay 2,672,010 9,086,345
Total expenditures 58,148,151 64,685,943
Excess (deficiency) of revenues
over (under) expenditures 867,230 (3,676,163)
Other Financing Sources (Uses):
Issuance oflease
Issuance of subscription debt
Issuance of debt
Payment of escrow for refunding
Premiums on issuance of debt
Proceeds from sale of assets
Transfers in
Transfers out
Total other financing sources
4,366,649
(4,209,345)
157,304
Net change in fired balances $ 1,024,534 $
Debt service as a percentage
of noncapital expenditures
Source: Annual Comprehensive Financial Reports
11,400,000
(6,074,450)
789,428
5,897,789
(6,421,904)
5,590,863
1,914,700
2016 2017 2018 2019 2020 2021 2022 2023
$ 14,771,632
5,265,843
20,364,878
14,842,109
4,461,439
1,682,431
237,949
18,274
507,966
612,365
1,943,007
64,707,893
Table 4
$ 16,674,673 $ 18,652,639 $ 20,408,581 $ 22,736,528 $ 24,144,693 $ 25,236,242 $ 27,594,201
5,382,292 5,829,983 5,528,832 5,309,401 5,575,782 6,415,583 6,678,500
21,252,491 20,728,209 21,419,831 22,088,364 24,373,083 28,693,421 29,778,805
14,401,763 14,776,566 14,797,320 10,042,659 13,062,591 18,372, 898 18,709,978
3,961,369 3,806,964 3,313,059 2,835,050 2,702,221 3,652,725 3,521,246
1,997,082 1,847,315 2,105,716 1,673,143 1,552,088 1,127,642 1,117,424
385,769 821,642 1,623,907 869,827 103,170 711,952 4,174,317
9,994 2,656 18,353 13,678 117,144 42,175 35,377
1,490,142 813,633 629,332 3,738,184 793,091 1,039,952 3,107,263
628,486 668,036 635,553 635,464 711,814 620,575 577,890
1,996,374 2,217,797 2,362,730 2,387,958 2,125,528 2,574,468 1,589,138
68,180,435 70,165,440 72,843,214 72,330,256 75,261,205 88,487,633 96,884,139
6,023,057 6,324,436 6,372,535 6,258,492 6,785,529 6,120,370 7,335,273 7,241,266
862,571 931,119 1,036,278 1,001,587 1,065,028 924,919 993,827 1,187,377
18,975,116 18,985,489 19,790,021 19,038,500 18,727,050 19,881,563 22,755,689 28,851,315
1,688,714 1,616,714 1,222,905 4,555,735 1,322,786 1,180,954 1,528,043 1,949,997
24,698,550 26,068,993 26,977,362 27,738,238 28,322,488 28,534,814 30,662,083 32,871,946
3,530,000 3,848,825 4,761,697 4,828,848 4,605,000 4,635,000 4,631,897 6,036,322
1,743,450 1,516,936 1,662,399 1,943,495 2,627,550 2,462,387 2,432,243 2,565,221
14,871,624 10,600,631 6,839,864 8,979,048 16,839,574 14,879,407 15,714,436 9,220,011
72,393,082 69,893,143 68,663,061 74,343,943 80,295,005 78,619,414 86,053,491 89,923,455
(7,685,189) (1,712,708) 1,502,379 (1,500,729) (7,964,749) (3,358,209) 2,434,142 6,960,684
249,370 259,697
- - - - - - 337,794
20,760,000 9,805,000 13,420,000 12,345,000 6,985,000 7,660,000 20,620,000
403,354 264,116 869,936 524,348 401,414 1,630,433
- - 23,513 25,625 118,830 20,525 199,400 61,913
7,468,038 8,845,061 13,942,847 11,040,601 10,122,378 8,193,943 11,857,126 13,373,428
(9,083,041) (11,177,666) (14,544,672) (10,813,451) (10,861,657) (9,158,305) (11,373,070) (13,900,658)
19,548,351 (2,083,235) 9,490,804 14,542,711 12,248,899 6,442,577 8,603,153 22,122,910
$ 11,863,162 $ (3,795,943)
12.1% 9.9% 9.2% 9.0%
129
$ 10,993,183 $ 13,041,982 $ 4,284,150 $ 3,084,368 $ 11,037,295 $ 29,083,594
10.4% 10.4%
11.4%
10.0%
10.7%
CITY OF EULESS, TEXAS
ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY — LAST TEN FISCAL YEARS
(Unaudited)
Estimated Value Total
Less: Direct
Fiscal Real Personal Total Tax -Exempt Total Taxable Tax
Year Property Property Value Property Value Rate
2014 2,759,268,619 461,065,240 3,220,333,859 356,283,956 2,864,049,903 0.470000
2015 2,920,206,326 509,189,960 3,429,396,286 369,393,032 3,060,003,254 0.467500
2016 3,352,029,682 513,118,652 3,865,148,334 410,557,810 3,454,590,524 0.467500
2017 3,470,371,005 531,751,946 4,002,122,951 450,853,105 3,551,269,846 0.462500
2018 3,922,338,493 564,286,167 4,486,624,660 492,318,425 3,994,306,235 0.462500
2019 4,353,413,236 576,907,417 4,930,320,653 549,709,999 4,380,610,654 0.462500
2020 4,877,396,769 628,387,146 5,505,783,915 599,654,547 4,906,129,368 0.462500
2021 5,160,656,914 666,521,372 5,827,178,286 631,904,229 5,195,274,057 0.462500
2022 5,445,666,114 637,973,264 6,083,639,378 768,537,626 5,315,101,752 0.475000
2023 6,024,406,774 734,267,287 6,758,674,061 810,917,542 5,947,756,519 0.460000
Source: Tarrant Appraisal District
130
Table 5
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) - LAST TEN FISCAL YEARS
(Unaudited)
Table 6
City Direct Rates Overlapping Rates
General
Fiscal Operating / Obligation Debt Hurst -Euless- Grapevine- Tarrant County Tarrant County
Year General Rate Service Total Direct Rate Bedford ISD Colleyville ISD Tarrant County Hospital District College District
2014 0.360619 0.109381 0.470000 1.3875 1.3201 0.2640 0.2279 0.1495
2015 0.364505 0.102995 0.467500 1.3750 1.3201 0.2640 0.2279 0.1495
2016 0.366571 0.100929 0.467500 1.3500 1.3201 0.2640 0.2279 0.1495
2017 0.363053 0.099447 0.462500 1.3160 1.3967 0.2540 0.2279 0.1447
2018 0.361056 0.101444 0.462500 1.2630 1.3967 0.2440 0.2244 0.1401
2019 0.371710 0.090790 0.462500 1.2730 1.3967 0.2340 0.2244 0.1361
2020 0.377974 0.084526 0.462500 1.2200 1.3267 0.2340 0.2244 0.1302
2021 0.381954 0.080546 0.462500 1.1980 1.3031 0.2340 0.0819 0.1302
2022 0.402888 0.072112 0.475000 1.1608 1.2751 0.2290 0.2244 0.1302
2023 0.370847 0.089153 0.460000 1.1098 1.1308 0.2240 0.2244 0.1302
Sources: City of Euless Budget Office, Tarrant Appraisal District
131
Fiscal Year 2023
Taxpayer
Brazos TX Partners LLC/Stoneleigh at Bear
Creek Apt.
Westdale Hills 2013 LP
Star Monticello LLC/Star Kensington LLC
Creekwood Trinity Union LLC
BVA Glade SPE LLC
CH Realty 1X-Knightvest MF Mandolin Owner
LP
Oakmont of Bear Creek LLP/Parkside on the
Creek LLC
Avis Budget Car Rental LLC
CMF 15 Portfolio LLC
Bedrock Holdings II (Dallas) LLC
CITY OF EULESS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
(Unaudited)
Taxable
Assessed
Value
Percentage
of Total City
Taxable
Assessed
Value (1) Taxpayer
$ 197,400,000 3.32
123,287,043 2.07
119,400,000 2.01
94,200,000 1.58
93,667,067 1.57
92,150,000 1.55
91,300,000 1.54
89,786,968 1.51
78,900,000 1.33
77,400,000 1.30
Total $ 1,057,491,078
Source: Tarrant County Tax Office
% EAN Holdings, LLC
UDR The Mandolin LLC
Stoneleigh at Bear Creek
Avis Rent A Car System LLC
Somerset Village Partners LP
AP WP Seramont Reit LLC
AP WP Vineyard Reit LLC
CMF 15 Portfolio LLC
Oncor Electric Delivery Co. LLC
The Hertz Corp.
17.78 % Total
Notes:
(1) Total Taxable Value including real and personal property for tax year 2022 (fiscal year 2023) is $5,947,756,519.
(2) Total Taxable Value including real and personal property for tax year 2013 (fiscal year 2014) is $2,864,049,903.
132
Fiscal Year 2014
Taxable
Assessed
Value
Table 7
Percentage
of Total City
Taxable
Assessed
Value (2)
$ 58,256,170 2.03 %
53,670,000 1.87
46,900,000 1.64
46,362,017 1.62
41,093,060 1.43
38,600,000 1.35
37,800,000 1.32
36,900,000 1.29
36,733,528 1.28
33,287,400 1.16
$ 429,602,175 14.99 %
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS — LAST TEN FISCAL YEARS
(Unaudited)
Table 8
Collected within the
Taxes Levied Adjustments Adjusted Fiscal Year of the Levy Total Collection Delinquent Taxes
Within the to Levy in Taxes Levied Collections
Fiscal Fiscal Year Subsequent for the Percentage in Subsequent Percentage Percentage
Year of the Levy Years Fiscal Year Amount of Levy Years Amount of Levy Amount of Levy
2014 13,426,248 (70,742) 13,355,506 13,303,694 99.61% 36,670 13,340,364 99.89% 15,142 0.11%
2015 14,245,865 (194,614) 14,051,251 14,049,020 99.98% (10,595) 14,038,425 99.91% 12,826 0.09%
2016 13,671,980 870,932 14,542,912 14,481,033 99.57% 46,441 14,527,474 99.89% 15,438 0.11%
2017 15,828,162 378,267 16,206,429 16,191,555 99.91% (428) 16,191,127 99.91% 15,302 0.09%
2018 18,199,497 (42,876) 18,156,621 18,131,429 99.86% 9,641 18,141,070 99.91% 15,551 0.09%
2019 19,850,820 (60,221) 19,790,599 19,769,021 99.89% (1,613) 19,767,408 99.88% 23,191 0.12%
2020 22,134,132 (98,826) 22,035,306 21,970,578 99.71% 24,154 21,994,732 99.82% 40,574 0.18%
2021 23,340,538 (127,856) 23,212,682 23,180,576 99.86% (8,804) 23,171,772 99.82% 40,910 0.18%
2022 24,283,254 (100,934) 24,182,320 24,176,819 99.98% (39,094) 24,137,725 99.82% 44,595 0.18%
2023 26,481,396 26,481,396 26,384,135 99.63% 26,384,135 99.63% 97,261 0.37%
Source: Tarrant County Tax Office and Tarrant Appraisal District
133
General Certificates Sales Tax
Fiscal Obligation of Tax Revenue
Year Bonds Obligation Notes Bonds
2014 $ 24,070,000 $ 2,780,000 $ $ 1,175,000
2015 20,655,000 8,365,000 285,000
2016 17,425,000 27,710,000 1,280,000 120,000
2017 14,490,000 27,350,000 860,000 75,000
2018 11,460,000 35,660,000 735,000 40,000
2019 8,805,000 46,200,000 1,565,000
2020 6,040,000 51,710,000 1,110,000 5,450,000
2021 4,115,000 54,930,000 2,370,000 5,245,000
2022 3,010,000 52,560,000 9,155,000 5,025,000
2023 1,870,000 70,675,000 7,165,000 4,800,000
CITY OF EULESS, TEXAS
RATIO OF OUTSTANDING DEBT BY TYPE — LAST TEN FISCAL YEARS
(Unaudited)
Govemmental Activities Business -Type Activities
Premiums/
Discounts General
on Debt Issues W&S Obligation
and Losses on Revenue Refimding
Leases Subscriptions Refimdumgs (1) Bonds Bonds Leases
(3)
Table 9
Premiums/
Discounts
on Debt Issues Total
and Losses on Primary
Subscriptions Refund ngs (1) Government
$ 94,196 $ $ 622,367 $ 4,285,000 $ 6,915,000 $ $ - $ 237,146 $ 40,178,709
994,148 10,940,000 6,320,000 211,601 47,770,749
- 1,497,876 10,305,000 5,695,000 186,063 64,218,939
160,545 - 1,099,640 9,540,000 5,240,000 - - 168,446 58,983,631
83,848 1,211,502 11,545,000 4,770,000 150,830 65,656,180
- 1,887,637 19,905,000 4,295,000 133,213 82,790,850
2,195,218 18,725,000 3,805,000 115,597 89,150,815
- (3) 2,432,587 17,780,000 3,295,000 - 97,984 90,265,571
197,802 - 2,244,842 16,835,000 2,775,000 203,458 80,364 92,086,466
135,695 223,580 3,687,533 15,875,000 2,245,000 148,620 9,377 62,749 106,897,554
Note: Details regarding the Citys outstanding debt can be found in the notes to the Financial Statements.
(1) Column added to table in 2016; prior year figures have been restated to include amounts reflected.
(2) See Table 13 for personal income and population data.
(3) Figure updated in FY2022.
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CITY OF EULESS, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO TAXABLE ASSESSED VALUE AND NET BONDED DEBT PER CAPITA —
LAST TEN FISCAL YEARS
(Unaudited)
Table 10
General Bonded Debt Outstanding
Premiums/
Discounts Restated (5)
General Certificates on Debt Issues Less: Debt Net O/S Net Debt Net General
Fiscal Obligation of and Losses on Service Debt Estimated Taxable to Taxable Debt Per
Year Bonds Obligation Refimdings (1) Reserves Total (6) Population (2) Value (3) Value Capita
2014 30,985,000 2,780,000 883,948 796,454 33,852,494 53,780 2,864,049,903 1.18% $ 629
2015 (4) 26,975,000 8,365,000 1,228,901 813,841 35,755,060 54,050 3,060,003,254 1.17% $ 662
2016 23,120,000 27,710,000 1,446,619 1,056,021 51,220,598 54,250 3,454,590,524 1.48% $ 944
2017 19,730,000 27,350,000 1,288,664 1,398,495 46,970,169 54,870 3,551,269,846 1.32% $ 856
2018 16,230,000 35,660,000 1,381,631 1,914,141 51,357,490 55,170 3,994,306,235 1.29% $ 931
2019 13,100,000 46,200,000 2,038,856 2,415,379 58,923,477 56,160 4,380,610,654 1.35% $ 1,049
2020 9,845,000 51,710,000 2,066,094 2,676,299 60,944,795 57,550 4,906,129,368 1.24% $ 1,059
2021 7,410,000 54,930,000 2,546,006 3,154,199 61,731,807 58,260 5,195,274,057 1.19% $ 1,060
2022 5,785,000 52,560,000 2,105,638 2,242,815 58,207,823 61,480 5,315,101,752 1.10% $ 946
2023 4,115,000 70,675,000 3,543,290 2,716,183 75,617,107 61,544 5,947,756,519 1.27% $ 1,229
Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Total does not include revenue bonds.
Source: (1) Column added to table in 2016, prior years restated to include amounts shown.
(2) Estimates by North Central Texas Council of Governments and Euless Planning and Development Department
(3) Tarrant Appraisal District
(4) Taxable value restated to fiscal year end amounts.
(5) Tax notes, leases and subscriptions are excluded as these debt instruments are considered bonded debt.
(6)
Amounts restated to include Midtown Debt Reserves.
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CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2023 — (Unaudited)
Table 11
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable Debt
Debt repaid with property taxes
Grapevine-Colleyville Independent School District $ 289,240,590 9.66% $ 27,940,641
Hurst -Euless -Bedford Independent School District 295,350,000 20.66% 61,019,310
Tarrant County 376,120,000 2.42% 9,102,104
Tarrant County Hospital District 591,230,000 2.42% 14,307,766
Tarrant County College District 448,410,000 2.42% 10,851,522
Subtotal, overlapping debt 123,221,343
Debt repaid with property taxes and sales taxes
City of Euless (direct debt) 88,506,045 100.00% 88,506,045
Total direct and overlapping debt repaid with property taxes $ 211,727,388
Notes: The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were
estimated by determining the portion of another governmental unit's taxable value that is within the City's boundaries and
dividing it by each unit's total taxable value.
The current year calculation of direct debt includes all general governmental activities debt including sales tax
revenue bonds which are not repaid with property taxes. Amounts shown have been adjusted for losses on prior
refundings, premiums, and discounts.
Source: Debt outstanding data provided by Municipal Advisory Council of Texas and City records.
136
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS — LAST TEN FISCAL YEARS
(Unaudited)
Table 12
Interest
Less Net and
Fiscal Total Operating Revenue Fiscal Coverage
Year Revenues (1) Expenses (2) Available Principal Charges Total Ratio
2014 19,729,539 18,269,093 1,460,446 405,000 122,229 527,229 2.77
2015 21,182,560 17,879,209 3,303,351 410,000 129,703 539,703 6.12
2016 24,311,965 18,625,302 5,686,663 635,000 181,747 816,747 6.96
2017 24,353,525 19,249,699 5,103,826 765,000 175,682 940,682 5.43
2018 27,828,648 20,880,984 6,947,664 780,000 184,154 964,154 7.21
2019 27,603,615 21,006,298 6,597,317 915,000 191,327 1,106,327 5.96
2020 27,683,951 23,101,386 4,582,565 1,180,000 306,354 1,486,354 3.08
2021 29,072,318 22,122,296 6,950,022 945,000 274,924 1,219,924 5.70
2022 29,733,939 24,625,613 5,108,326 945,000 267,554 1,212,554 4.21
2023 32,284,877 26,660,040 5,624,837 960,000 255,341 1,215,341 4.63
Notes: (1) Operating and nonoperating revenues of water and wastewater find
(2) Total operating expenses of water and wastewater find exclusive of depreciation and amortization
137
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS — LAST TEN FISCAL YEARS
(Unaudited)
Personal
Per Income
Fiscal Estimated Capita (thousands Median School Unemployment
Year Population (1) Income (2) of dollars) Age (2) Enrollment (3) Rate (4)
2014 53,780 $ 28,947 $ 1,556,770 31.8 22,138 5.0%
2015 54,050 $ 29,651 $ 1,602,637 34.7 22,762 3.6%
2016 54,250 $ 30,054 $ 1,630,430 34.9 23,090 3.8%
2017 54,870 $ 29,730 $ 1,631,285 34.9 23,425 3.2%
2018 55,170 $ 31,117 $ 1,716,725 34.9 23,632 3.5%
2019 56,160 $ 32,810 $ 1,842,610 36.1 23,624 (5) 3.6%
2020 57,550 $ 34,575 $ 1,989,791 35.3 23,756 8.9%
2021 58,260 $ 34,575 $ 2,014,340 35.3 22,884 4.6%
2022 61,480 $ 36,494 $ 2,243,651 35.6 22,815 3.5%
2023 61,544 $ 39,240 $ 2,414,987 35.6 22,971 3.7%
Notes: (1) Estimates by North Central Texas Council of Governments
(2) Estimates by Claritas Site Reports; Research & Demographic Solutions; 2014 forward from US Census Bureau
(3) Hurst -Euless -Bedford Independent School District
(4) Texas Workforce Commission; Bureau of Labor Statistics
(5) Updated from projected to actual
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Table 13
Employer
HEB ISD
LSG Sky Chefs, Inc.
City of Euless
Target
Lowe's
Life Outreach International
Redi-Mix Concrete
Dave and Buster's
QuikTrip
Flynn BEC, LP
Thirsty Lion
Total
CITY OF EULESS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited)
2023*
Percentage of
Estimated Total
Employees City Employment
1,197 3.81%
663 2.45%
403 1.49%
250 0.92%
225 0.83%
186 0.69%
162 0.68%
150 0.55%
130 0.48%
120 0.44%
120 0.44%
3,606 12.78%
Source: City of Euless Planning and Development Department
* Prior year data used if updated information was unavailable.
139
Employer
HEB ISD
LSG Sky Chefs, Inc.
Autogrill Group, Inc.
City of Euless
Life Outreach International
Super Target
Lowe's
Home Depot
Redi Mix Concrete
Structural and Steel Products
Table 14
2014
Percentage of
Estimated Total
Employees City Employment
1,000 3.74%
600 2.25%
450 1.68%
434 1.62%
180 0.67%
160 0.60%
140 0.52%
125 0.47%
67 0.25%
40 0.15%
3,196
11.95%
CITY OF EULESS, TEXAS
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 15
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Government
and Administration 48.50 48.00 49.50 50.00 51.00 50.50 50.50 49.00 49.50 49.50
Public Safety 135.00 136.00 136.00 136.00 137.00 137.00 139.00 139.00 142.00 142.00
Fire Safety 72.00 72.00 72.00 75.00 75.00 75.00 75.00 75.00 78.00 78.00
Development Services 7.50 7.50 7.50 8.00 7.50 7.50 7.50 7.50 7.50 8.50
Culture and Recreational 33.25 34.25 34.25 35.25 35.25 35.25 34.25 34.25 34.25 35.25
Water and Wastewater 42.00 42.00 42.50 42.50 43.50 43.00 44.00 43.50 45.00 45.00
Golf Course 10.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75 11.75
Public Works 18.50 20.00 20.00 21.00 22.50 23.50 23.50 23.50 23.50 26.50
Service Center 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Risk Management / Insurance 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Total 374.00 378.00 380.00 386.00 390.00 390.00 392.00 390.00 398.00 403.00
Source: City Budget Office
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Function/Proeram
CITY OF EULESS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 16
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police
Number of Certified Officers 92 92 92 87 91 91 86 85 93 85
Number of Citations Issued 25,500 24,573 18,483 25,061 19,100 16,552 11,154 9,283 17,224 12,993
Fire
Number of Certified Firefighters 70 70 70 72 73 74 72 75 74 76
Number of Alarms 4,505 4,686 4,770 4,678 3,758 4,324 4,735 4,827 6,245 6,179
Number of EMS Calls 3,230 3,424 3,431 3,772 3,468 2,958 3,256 3,204 3,910 4,202
Municipal Court
Cases Filed
Development
Number Residential Inspections - New
Number Commercial Inspections - New
Number Multifamily Inspections - New
Public Works
Street Overlay (Square Footage)
Cultural and Recreational
Parks and Recreation
Recreation Center Memberships
31,172 28,885 25,957 25,061 25,101 22,472 15,400 12,751 17,224 14,236
107 176 186 176 214 93 3 0 0 3
29 33 15 36 32 18 12 13 7 12
1 1 0 0 1 6 0 0 0 0
631,260 430,504
1,156,833 1,549,065 1,063,046 1,289,759 1,010,016 421,848 483,310 344,965
6,261 6,742 (1) 6,975 6,528 7,183 7,125 2,820 3,886
5,008 5,321
Water and Wastewater
Number of Water Consumers 25,319 26,014 25,812 25,970 26,200 26,659 27,467 27,855 27,942 28,249
Water Produced (In Gallons x 1000) 380,864 741,225 540,921 439,255 580,337 569,697 8,520 (3) 0 0 (4) 0
Water Purchased - TRA (In Gallons x 1000) 2,154,469 1,628,651 1,787,547 1,766,692 1,767,677 1,586,667 2,250,350 2,187,563 2,586,490 2,421,154
Water Supplied (In Gallons x 1000) 2,535,333 2,369,876 2,328,468 2,205,947 2,348,014 2,156,364 2,258,870 2,187,563 2,586,490 2,421,154
Annual Rainfall (In Inches) 23.98 44.45 53.16 34.96 42.39 48.20 45.27 33.41 29.92 28.88
Golf Course
Number of Paid Rounds Played
Source: City Departments
Annual Comprehensive Financial Report
City Budget Office
Notes:
22,110 (2) 33,735
32,852 33,237
(1) Amount restated to include recreation, aquatic and senior memberships.
(2) Goff course closed for 31/2 months for renovations in 2014.
(3) Wells were out of operation for most of the year; two wells are in the process of being replaced.
(4) All wells inoperational for the entire fiscal year; the two under construction are nearing completion.
141
32,557 32,016 30,860 42,429 41,645 41,727
(4)
Function/Proeram
CITY OF EULESS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM - LAST TEN FISCAL YEARS
(Unaudited)
Table 17
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Fire Stations 3 3 3 3 3 3 3 3 3 3
Public Works
Streets - Paved (1) 340.62 342.8 344.77 350.12 350.12 351.74 351.74 352.60 352.60 352.40
Cultural and Recreational
Aquatic Facilities 3 3 3 3 3 3 2 2 2 1
Parks (2) 16 16 16 16 16 16 16 16 16 16
Parks Land (Acres) (3) 341 341 341 341 341 341 341 341 341 341
Other Facilities (Acres) (3) 291 291 291 291 291 291 291 291 291 291
Community Buildings 6 6 6 6 6 6 6 6 6 6
Amphitheater 3 3 3 3 3 3 3 3 3 3
Conference Centre 1 1 1 1 1 1 1 1 1 1
Golf Course 1 1 1 1 1 1 1 1 1 1
Softball Facility (4) 1 1 1 1 1 1 1 - - -
Athletic Fields 28 28 30 30 30 30 30 31 31 31
Library Holdings 105,500 98,596 101,160 85,123 80,241 81,353 82,501 85,010 88,577 91,560
Water and Wastewater
Water Mains - Potable (5) 232.28 234.84 235.50 236.30 239.10 241.93 242.28 243.00 244.50 248.74
Water Mains - Reclaimed (5) 3.22 3.70 3.82 3.96 4.12 7.15 11.65 11.65 11.65 11.65
Fire Hydrants 1,633 1,648 1,674 1,719 1,798 1,805 1,836 1,845 1,886 1,903
Wastewater Mains (5) 191.3 192.4 193.2 195.2 197.0 198.4 201.0 202.1 203.0 203.0
Source: City Departments
(1) Reported in lane miles.
(2) Restated to exclude Softball Facility
(3) Restated to reflect GolfCourse and Softball Facility land separately
(4) Softball Facility operations were combined with Parks at Texas Star in FY2021.
(5) Miles alines.
142