HomeMy WebLinkAboutFY 1993 Comprehensive Annual Financial ReportCOkQPREHENSFVE
ANNUAL FiEANCVAL
REPORT
FOR 't EAR ENDHG
SEPTEMBER 30, 1993
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WEAVER AND TIDW ELL
AFFILIATIONS
SUMMIT INTERNATIONAL
ASSOCIATES, INC.
ASSOCIATED REGIONAL
ACCOUNTING FIRMS
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
1500 COMMERCE BUILDING
307 WEST SEVENTH STREET
FORT WORTH, TEXAS 76102-5194
(817) 332-7905 METRO 429-0820
FACSIMILE (817) 429-5936
February 1, 1994
To the Honorable Mayor, City Council,
and City Manager
The City of Euless, Texas
DALLAS OFFICE
TWO GALLERIA TOWER
13455 NOEL ROAD, SUITE 520
DALLAS, TEXAS 75240
(214) 490-1970
METRO 263-3978
In planning and performing our audit of the financial statements of the City of Euless,
Texas, for the year ended September 30, 1993, we considered its internal control structure
in order to determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and not to provide assurance on the internal control structure.
However, we noted certain matters involving the internal control structure and its operation
that we consider to be reportable conditions under standards established by the American
Institute of Certified Public Accountants. Reportable conditions involve matters coming to
our attention relating to significant deficiencies in the design or operation of the internal
control structure that, in our judgment, could adversely affect the organization's ability to
record, process, summarize, and report financial data consistent with the assertions of
management in the financial statements.
FIXED ASSETS:
The City has a procedure to analyze capital outlay accounts and record the fixed asset
expenditures in a computer program separate from the general ledger. Entries are not
made to the general ledger to capitalize the expenditures as proprietary fund assets or
general fixed assets.
We recommend that the City establish a General Fixed Asset Account Group on the general
ledger as control totals for the detail maintained in the separate computer program. In
addition, we recommend that the proprietary fund fixed assets be recorded in the general
ledger accounts of the appropriate proprietary fund and that depreciation expense be
computed and recorded each month.
Managements Response: Staff concurs with this recommendation and has been working on
the fixed asset documentation this passed year. The City proposes to address valuation and
computerization in FY94.
WEAVER AND TIDWELL
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
To the Honorable Mayor, City Council,
and City Manager
February 1, 1994
INTERFUND ACTIVITY:
Accounts designated for transfers contained transactions for other types of activity in internal
service funds. Revenues recorded in the internal service funds for maintenance of vehicles
and equipment were recorded in the transfer accounts. Only actual transfers in and out
should be recorded in the transfer accounts.
We recommend that transfer accounts be reconciled periodically to ensure that transfers
between funds balance.
Managements Response: The City has adopted the recommended chart of accounts of
Governmental Accounting and Financial Reporting. Revenues between funds are recorded
for earned services and transfers are recorded for other transactions. All revenues and
transfers are reconciled monthly. Staff will review Insurance funds for further clarification.
* * * * * * * * * * *
In addition to performing our audit of the financial statements, we were requested by
management to perform an operations review of the Public Works and Development
Department in order to provide recommendations for improvement. We have the following
comments related to our current year operations review. We have also included any action
that was taken subsequent to our review to respond to our recommendations.
CASH RECEIPTS
Original Construction Permits cash receipts (construction that requires a new water meter)
When permits are issued for new construction, the permit is processed at the Development
Office and paid for at the Water Office. This procedure allows the Water Office to know
that a water meter is needed and that payment has been made.
We recommend that payment be made at the Development Office when the permit is
issued. The Development Office would then send a copy of the information to the Water
Office to request a water meter. This procedure ensures that a permit is not issued before
payment and eliminates the need for the applicant to go to two locations to obtain a permit.
Animal Shelter cash receipts
The animal shelter maintains three separate cash drawers (one for each employee). Cash
collected is kept in each separate drawer until it is reconciled weekly. A log is also kept of
each cash transaction, but it is not utilized in reconciling the cash drawers.
WEAVER AND TIDWELL
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
To the Honorable Mayor, City Council,
and City Manager
February 1, 1994
We recommend that the animal shelter consolidate the cash drawers into one to keep the
cash in one location. A minimum balance should be kept in the drawer to make change, but
all other cash receipts should be removed nightly, reconciled, and locked in a money bag.
Also, the cash transaction log should be utilized to reconcile the cash receipts for the weekly
deposit.
REVENUES
Inspection fees are based on a percentage of the value of the work. In some cases, in lower
valued work, the cost of the inspections exceed the fee being charged.
We recommend that a minimum fee be established which is sufficient to cover the minimum
inspection costs. Inspections for work valued above the minimum would be charged based
on the value of work.
ZONING AND PLATING SERVICES
The procedures for zoning and plating cases are extensive and tedious. Even though a
reference manual of the procedures exists and is utilized by the zoning and plating clerk, the
procedures are known only by the one clerical employee. Also, some correspondence steps
in the process are being duplicated.
We recommend that a checklist be created of the zoning and plating procedures to be
included in each file. This will verify that all procedures were performed in the case, and
will aid in checking the status of each file as needed.
We also recommend cross training between employees so that more than one will be
familiar with the procedures.
We recommend a centralized correspondence form be created which will contain all the
information of the case and can be utilized in all meetings required in each case, instead of
using different correspondence forms and duplicating the information for each meeting. (ie.
Zoning and Plating meetings and City Council meetings)
* * * * * * * * * * *
WEAVER AND TIDWELL
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
To the Honorable Mayor, City Council,
and City Manager
February 1, 1994
A material weakness is a reportable condition in which the design or operation of one
or more of the internal control structure elements does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all
matters in the internal control structure that might be reportable conditions and, accordingly,
would not necessarily disclose all reportable conditions that are also considered to be
material weakness as defined above. However, none of the reportable conditions described
above is believed to be a material weakness.
This report is intended solely for the information and use of management.
We would be pleased to discuss this letter with you at greater length and assist you
in the implementation of the recommendations should you so desire. We would like to
express our appreciation for the excellent cooperation and assistance received from your
staff during the course of the audit and the related operations review.
WEAVER AND TIDWELL, L.L.P
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1993
CITY OFFICIALS
MARY LIB SALEH, MAYOR
FRANK DOUGLASS, COUNCIL MEMBER PLACE ONE
TODD SMITH, COUNCIL MEMBER PLACE TWO
BOBBY BAKER, COUNCIL MEMBER PLACE THREE
AND MAYOR PRO TEM
CHARLES MILLER, COUNCIL MEMBER PLACE FOUR
PETER STAKS, COUNCIL MEMBER PLACE FIVE
HENRY BOATRIGHT, COUNCIL MEMBER PLACE SIX
TOM HART
CITY MANAGER
DEBRA B. FORTE'
DIRECTOR OF FISCAL AND HUMAN RESOURCES
INTRODUCTORY
SECTION
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1993
TABLE OF CONTENTS
INTRODUCTION SECTION
Pages)
Letter of transmittal 1-VII
GFOA certificate of achievement VIII
Organizational chart IX
FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
Combined balance sheet - all fund types and
account groups
Combined statement of revenues, expenditures
and changes in fund balances - all govern-
mental fund types
Combined statement of revenues, expenditures
and changes in fund balances - budget and
actual - General Fund
Combined statement of revenues, expenses and
changes in retained earnings - All
Proprietary Fund Types
Combined statement of cash flows - All
Proprietary Fund Types
Notes to financial statements
Supplemental statements and schedules
Special revenue funds
Combining balance sheet
Combining statement of revenues, expen-
ditures and changes in fund balances
1
3-6
7-8
9-10
11
12 - 13
14-26
29
30
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1993
TABLE OF CONTENTS - Continued
Supplemental statements and schedules - continued Pages)
Capital projects funds
Combining balance sheet 32 - 33
Combining statement of revenues, expen-
ditures and changes in fund balances 34 - 35
Enterprise funds
Combining balance sheet 37 - 38
Combining statement of revenues, expenses
and changes in retained earnings 39
Combining statement of cash flows 40 - 41
Water and sewer fund --comparative balance
sheets 42 - 43
Water and sewer fund --comparative state-
ments of revenues, expenses, and
changes in retained earnings
44
Water and sewer fund --comparative
schedules of operating expenses 45 - 46
Water and sewer fund --comparative
statements of cash flows 47
Water and sewer fund --aggregating
schedule of balance sheet accounts 48 - 51
Water and sewer fund --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Internal service funds
52 - 53
Combining balance sheet 55
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1993
TABLE OF CONTENTS - Continued
Supplemental statements and schedules - continued Paaes(s)
Internal service funds - continued
Combining statement of revenues,
expenses and changes in retained
earnings
56
Combining statement of cash flows 57
Deferred compensation agency fund
Statement of changes in assets and
liabilities 59
General fixed assets account croup
Comparative schedule of general fixed
assets by source 61
Schedule of general fixed assets by
function and activity 62
Schedule of changes in general fixed
assets by function and activity 63
Table Page(s)
STATISTICAL SECTION (Unaudited)
General governmental expenditures
by function 1 64
General governmental revenues by source 2 65
Property tax levies and collections 3 66
Assessed and estimated actual value of
taxable property 4 67 - 68
Property tax rates - direct and overlapping
governments (per $100 of assessed value) 5 69
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1993
TABLE OF CONTENTS - Continued
STATISTICAL SECTION (UNAUDITED) - continued Table Pacle(s)
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 70
Computation of direct and overlapping debt 7 71
Ratio of annual debt service expenditures for
general obligation bonded debt to total
general expenditures 8 72
Revenue bond coverage - Water and Sewer Bonds 9 73
Revenue bond coverage - Drainage Utility Bonds 10 74
Demographic statistics 11 75
Principal taxpayers 12 76
Retirement plan - analysis of funding
progress 13 77
Property value, construction and bank
deposits 14 78
Computation of legal debt margin 15 79
Miscellaneous statistics 16 80 - 81
THE CITY OF
EULESS
January 24, 1994
Honorable Mayor & City Council,
City Manager, &
Citizens of Euless:
The Fiscal and Human Resources Department of the City of Euless is pleased to submit the Comprehensive
Annual Financial Report of the City of Euless, Texas for the fiscal year ended September 30, 1993.
Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation,
including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is
accurate in all material respects and is reported in a manner designed to present fairly the financial position,
results of operations, and cash flows of the various funds and account groups of the City. All disclosures
necessary to enable the reader to gain an understanding of the City's financial activities have been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and
Statistical. The Introductory section includes this transmittal letter, the City's organizational chart and a list
of principal officials. The financial section includes the general purpose financial statements and
supplemental statements and schedules, as well as the report of independent auditors. The Statistical
section includes selected financial and demographic information, generally presented on a multiyear basis.
GENERAL INFORMATION
Euless was settled about 1881 and named for Elisha Adams Euless, a cotton farmer and pioneer. In 1915
the population was 25 and in 1960, 4235. Euless has changed significantly from a rural farming community
to a progressive urban area of approximately 40,000. The City of Euless is located in Northeast Tarrant
County directly between the cities of Dallas and Fort Worth. Euless is also adjacent to the world's largest
and second busiest airport --Dallas/Fort Worth International. The economic condition of Euless continues
to be one of cautious optimism.
The City provides to its citizens those services which have proven to be necessary and which can be
provided by the City at the least cost. Included in these services under general government and proprietary
funds are traditional city functions such as police and fire protection, emergency ambulance service, road
and traffic signal maintenance, water and sewer operations, drainage system, parks and recreational
facilities, courts, and library services. Other services include planning land use, building inspection, and
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/267-4403 • FAX 817/685-1416
I
January 24, 1994
Page 2
traffic control. Internal services of the City include Insurance, Risk Management, Equipment Replacement,
and Cash/Debt Management.
All funds and account groups are discussed in depth in the notes to the financial statements. Even though
associations with other entities such as Hurst -Euless -Bedford Independent School District exist, the City
Council has no oversight responsibility, or control over the school district or the other entities referred to in
Note 1 of the financial statements. Accordingly, financial data for the school district and others are not
included in the combined financial statements in this report.
ECONOMIC CONDITIONS AND OUTLOOK
As our City Manager stated in his 1993 reflections in his report entitled Share The Vision:
" Our efforts at economic development have begun paying off, and 1994 promises to be an
active year, with our business community expanding rapidly. Little Bear Sports Park should
be open in late 1994, bringing more family -oriented entertainment to our city. The Westpark
Professional Building will open this spring to make our already viable medical community
ever more comprehensive. The prosperity of Blockbuster Video, Home Depot and other
retail outlets in our City is urging other retailers to consider Euless for future development.
The interest in our city from potential businesses is growing. The number of inquiries we are
getting every day is increasing, and 1993's hard work to bring these businesses to Euless will
come alive as results in 1994 and future years."
In 1993 the City of Euless welcomed the following new businesses to our community: Special Medical
Services; Aero Lithograph; Pinkerton Construction; Cardco of Fort Worth; Marv's Comics, Cards, and
Collectibles; National Vascular Lab, Inc.; White Water Stress Relief Center; Aurora Caskets; Easterling
Performance; Strawn Explosives; Friendly Island Market; Delta Janitorial Service; VFW Fundraiser; and
Quality Improvements. Additionally, Euless is home to Tarrant Printing, Mid Cities Office Systems,
Security Forces, Inc., Association of Professional Flight Attendants, Hotel Employees and Restaurant
Employees Local 353, TWU Local 541, Century 21 Mike Bowman and Century 21 Bob Eden Real Estate.
We look forward to the opening of Ramada Inn. The City continues to work toward the development of a
proposed high fashion mall in Euless.
Enhanced growth opportunities in the Euless area is projected as we progress through the 1990's. The
proposed expansion plans at Dallas/Fort Worth Airport should have a positive impact for North Texas, but
will continue to provide some unique challenges for government officials in Euless. However, the varied
types of economic growth in and around the Euless area will enable city officials to provide a better level of
service and quality of life to both our corporate and residential citizens.
MAJOR INITIATIVES
Budget. During preparation of the 1993 fiscal budget, both elected and appointed officials worked
together to identify and address several key programs needed to adequately serve the public, either through
quality of life issues or technological advancements. Building upon the strategic committees that were
created in 1990 by utilizing a vast number of citizens for assistance in the development of Euless' goals and
objectives, the Budget was developed. Specific objectives may be summarized as follows: Reduction of
II
January 24, 1994
Page 3
the operating deficit in the General Fund; maintenance of service levels to citizens; continuation of
competitiveness in the employee pay plan; absorption of legislative mandates; and continuation of City
Council directives.
Progress Report. During 1993, many goals were set and achieved by the City of Euless. The following
reflects selected accomplishments in all departments: Passage of the half cent sales tax for parks, library
and economic development; reduced down -time of fleet due to preventive maintenance program; received
the Distinguished Budget Award; received Investment Award; initiated Teen Court; analysis for Court of
Record; Civil Service rewrite and adoption; average billing for citizens; bicycle patrol for Police
Department; Library program up; Arbor Daze's continued success; records management initiated; recycling
grant; extensive road repair; comprehensive plan adopted by City Council.
FINANCIAL INFORMATION
General. Management of the City is responsible for establishing and maintaining an internal control
structure designed to ensure that the City's assets are protected from loss, theft or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure is designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance
recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the
evaluation of costs and benefits requires estimates and judgments by management.
The City's accounting records for the Enterprise and Internal Service Funds are maintained on an accrual
basis whereby revenues and expenses are recorded in the accounting period in which they are earned or
incurred. The remainder of the City's funds are maintained on the modified accrual basis whereby revenue
is recorded when measurable and available and expenditures are recorded when the liability is incurred
except for interest on general long-term debt, which is recognized when due.
As set forth in the City's charter Article VII Sections 2-9, the City Council adopts an annual budget. Detail
control is accomplished by maintaining expenditures by line item account within each operating department
within each operating fund at the authorization of the City Manager. Financial reports are available to
division managers monthly.
Further explanations of the basis of accounting for all fund types, account groups, and the City's budgetary
controls are furnished in the accompanying Notes to Financial Statements.
General Governmental Functions. Revenues for general governmental functions and general debt service
totaled $12,467,589 in 1993, an increase of 7.37 percent over 1992. The increase in revenues is primarily
attributable to: activity in Municipal Courts due to implementing a traffic safety unit; general property tax
rate adjustments; franchise amendment; and sales tax receipts. The major decrease was due to the drop in
interest rates. The amount of revenue from various sources and the changes from the previous year are
reflected in the following table:
III
January 24, 1994
Page 4
Increase Percent of
Percent (decrease) increase
Revenue Source Amount % of total from 1992 (decrease)
Property tax $ 5,864,357 47.04 ($115,606) (1.93)
Gross receipts tax 1,696,924 13.61 310,101 22.36
General sales tax 2,713,462 21.76 530,214 24.29
Fines and fees 1,353,196 10.85 61,567 4.77
Licenses and permits 312,660 2.51 102,135 48.51
Interest income 175,443 1.41 (27,900) (13.72)
Intergovernmental/Other 351,547 2.82 (4,881) (1.37)
TOTAL REVENUES $12,467,589
100.00% $855,630
In addition to the above general revenue, $547,239 was transferred from various funds, primarily Enterprise
funds for general and administrative cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled $12,558,657, an increase
of 4.6% over 1992. Changes in levels of expenditures for major functions of the City over the preceding
year are shown in the following table:
Increase Percent of
Percent (decrease) increase
Function Amount % of total from 1992 (decrease)
General government $2,054,992 16.36 $ 34,120 1.69
Public safety 5,968,815 47.53 351,900 6.27
Streets 487,759 3.88 33,609 7.40
Parks/Rec./Library 1,397,600 11.13 48,948 3.63
Debt Service 1,683,671 13.41 65,724 4.06
Nondepartmental 965,820 7.69 18,981 2.00
TOTAL EXPENDITURES $12.558.657 100.00% $553.282
Revenues
Property Tax
47.0%
Licens/Permt
2.5%
Fines/Fees
10.9%
Gross Rec.
13.6% Interest
1.4%
Intergov/Other
2.8%
Sales Tax
21.8%
Public Safety
47.5%
i
Streets
3.9% Park/Rec/Lib
11.1%
Expenditures
Gen. Gov.
16.4%
Nondept.
7.7%
Debt Service
13.4%
IV
January 24, 1994
Page 5
General Government variances are due to the following: City Council -Administration cost stabilizing;
Finance up due to Municipal Court clerk to process additional warrants; Administrative Services up due to
maintenance costs, and Development & Operations up due to expanded code enforcement activity and
contracts with other entities. The decrease in Streets is primarily due to a reduction in street maintenance,
which is offset by increased activity in the construction funds. Parks/Recreation/Library increased due to
staffing increases, including a volunteer coordinator. Debt Service decreased due to retirement of certain
maturing debt. Nondepartmental expenditures decreased primarily due to Airport legal expenditure
reductions in FY93.
Enterprise Funds. While the number of water and sewer customers was relatively constant with prior
years, the City's water and sewer utility showed an increase in water revenues due to a rate increase and
stabilization of sewer service revenues in the current year. Consumption is up as a result of excessive
rainfall during the prior year and a very dry fourth quarter FY93. Comparative data for the past two fiscal
years are presented in the following table.
1993 1992
Income before operating transfers $1,194,057 $ 166,280
Net revenue available for debt service $2,223,960 $1,215,901
Debt service requirements $ 490,808 $ 534,341
Coverage 4.53 times 2.28 times
The Drainage Utility System was created in FY91 in compliance with new legislation designed to address
drainage issues in the communities across the state. Fees were effective January 1, 1991. In FY93,
$313,334 of revenue was generated and $65,326 of the costs were incurred. Capital improvements were
initiated in FY92 relating to the Drainage Utility System and continue in FY93.
The Recreation Fund has been segregated from the general operating budget of the City to allow the
Midway Recreation Center and the class structures to operate as an enterprise. Revenue of $365,921 was
generated, while class expenses were $367,327. Both are consistent with prior year activity and a small
reserve remains.
Debt Administration. General obligation debt, which is directly tax supported, totaled $11,741,032 at
September 30, 1993. Certain ratios are useful indicators of the City's debt position for municipal
management, citizens and investors. Data for the City is as follows: Net bonded debt - $11,321,467; ratio
of net bonded debt to assessed value - 1.04 and net bonded debt per capita - $291. All significant ratios
show an improvement over 1992. 1993, the City refunded certain of these outstanding bonds and issued
$6,695,000 in refunding general obligation bonds at lower interest rates resulting in future savings of
approximately $459,363. Tables 8-12 in the Statistical Section of this report present more detailed
information about the debt position of the City.
Revenue bonds, which are secured by the net revenues of the Water and Sewer Enterprise Fund, totaled
$6,020,000 at September 30, 1993.
The City has maintained its A+ and A Ratings on general obligation and revenue debt from Standard and
Poors and has maintained its A-1 and A Ratings on this debt from Moody's Investors Service.
v
January 24, 1994
Page 6
Cash Management. Compliance, safety, liquidity and yield are the program goals. Safety and security of
the City's funds are of primary importance in all investment activities, with staff following policies and laws
when investing funds. Interest income generated for the year for all funds was $504,354. The average yield
for the portfolio was 3.78%, exceeding the benchmark yield by approximately 72.0 basis points. Interest is
an important non -tax revenue for the City. As of September 30, for every $1.00 the City had to invest,
approximately $1.01 was invested. The program continues to provide a positive revenue source for the
City.
Insurance and Benefits. The City provides employee medical coverage on a self -insured basis. Premiums
are paid into the Insurance Fund by all other funds and by the City's employees and are available to pay
claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers
individual claims in excess of $50,000 and aggregate claims in excess of $1,118,613.
The City maintains self-insurance for worker's compensation. Contributions are made to the Risk
Management Fund by other funds and are available to pay claims, claims reserves and administrative costs
of the program. An excess coverage insurance policy covers individual claims in excess of $300,000.
General Fixed Assets. The general fixed assets of the City are used in the performance of general
governmental functions and exclude the fixed assets of the Enterprise and Internal Service Funds. As of
September 30, 1993, the general fixed assets of the City amounted to $11,298,917. This amount represents
the original cost of the assets and is considerably less than their replacement value. Depreciation of general
fixed assets is not recognized in the City's accounting system.
OTHER INFORMATION
Independent Audit. The City Charter per Article VII Section 11 requires an annual audit to be made of
the books of account, financial records and transactions of all administrative departments of the City by a
certified public accounting firm. This requirement has been complied with and the report of independent
auditors has been included in this report.
Award. The Government Finance Officers Association of the United States and Canada ("GFOA")
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its
comprehensive annual financial report for the fiscal year ended September 30, 1992. The Certificate of
Achievement is the highest form of recognition given in the area of government reporting by the GFOA. In
order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently
organized comprehensive annual financial report whose contents conform to program standards. Such
reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements. The preparation of this report on a timely basis could not be accomplished without
the efficient and dedicated services of many individuals. I would like to express my appreciation to all
members of the Finance Department who assisted and contributed to its preparation. I would also like to
VI
January 24, 1994
Page 7
thank the City Manager's Office and the members of the City Council for their interest and support in
planning and conducting the financial operations of the City in a responsible and progressive manner.
Acknowledgement is also given to the representatives of Weaver and Tidwell for their invaluable assistance
in producing this document.
Respectfully submitted,
04u; f6O)ar�c
Debra B. Forte'
Director of Fiscal & Human Resources
VII
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Euless,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1992
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
yo A.,
0 If. f.
Or
Executive Director
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`• Serves as Acting City Manager In absence of CM and ACM.
FINANCIAL
SECTION
WEAVER AND TIDWELL
AFFILIATIONS
SUMMIT INTERNATIONAL
ASSOCIATES, INC.
ASSOCIATED REGIONAL
ACCOUNTING FIRMS
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
1500 COMMERCE BUILDING
307 WEST SEVENTH STREET
FORT WORTH, TEXAS 76102-5194
(817) 332-7905 METRO 429-0820
FACSIMILE(817) 429-5936
INDEPENDENT AUDITOR'S REPORT
DALLAS OFFICE
TWO GALLERIA TOWER
13455 NOEL ROAD, SUITE 520
DALLAS, TEXAS 75240
(214) 400-1070
METRO 203.3078
We have audited the accompanying general purpose financial statements of the City of Euless,
Texas as of and for the year ended September 30, 1993, as listed in the table of contents. These general
purpose financial statements are the responsibility of the City's management. Our responsibility is to
express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the general purpose financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall general purpose financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Euless, Texas at September 30, 1993, and the results
of its operations and cash flows of its proprietary fund type for the year then ended in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group statements and
schedules and the statistical section listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of the City of
Euless, Texas. The combining and individual fund and account group statements and schedules have
been subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, are fairly stated in all material respects in relation to the general purpose
financial statements taken as a whole. The statistical section has not been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and, accordingly, we express
no opinion on such data.
4.2mi.41, aa �l i ae
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
December 1, 1993
2342
COMBINED FINANCIAL STATEMENTS - OVERVIEW
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
Governmental Fund Tvoes
Special Debt Capital
ASSETS AND OTHER DEBITS General Revenue Service Proiects
Cash and cash equivalents --Note 2 $ 68,302 $ 57,849 $ 2,880 $ 379,170
Short-term investments --Note 2 3,372,012 130,858 315,083 1,428,985
Receivables:
Property taxes 168,015 71,355
Accounts receivable and unbilled revenue 144,771 17,172
Accrued interest 41,969 197 1,204 4,820
Due from other funds --Note 8 48,002
Due from other governments 2,567 23,916
Prepaids and deposits 19,181
Inventories, at cost 16,367
Restricted assets --Note 4
General fixed assets --Note 6
Net utility plant and equipment
in service --Note 6
Net bond issuance costs
Amount available for retirement
of general Tong -term debt
Amount to be provided for retirement
of general long-term debt
Total assets and other debits $3.881,186 $ 188,904 $ 407,694 $1.836.891
The Notes to Financial Statements are an integral part of this statement.
3
Proprietary Fiduciary
Fund Tvpes Fund Type
Internal Deferred
Enterprise Service Compensation
Funds Funds Aaencv Fund
$ 333,765 $ 971,724 $
5,503,314 2,313,311
1,558,873
35,293
418,601
1,490
2,650,599
19,301,042
737,280
Account Groups
General General
Fixed Long-term
Assets Debt
$
11,298,917
$
(1 of 2)
Totals
(Memorandum Onlv)
1993
$ 1,813,690
13,063,563
239,370
1,720,816
83,483
466,603
26,483
20,671
16,367
2,650,599
11,298, 917
20,038,322
165,382 165,382
325,120 325,120
11,943,344 11, 943,344
$29,968,359 $ 1,709,004 $ 2,313,311 $11,298,917 $12,268.464 $63,872,730
1992
$ 4,075,760
11,065,222
331,270
1,242,000
206,423
549,904
314,166
542,815
42,071
3,209,193
11,145,690
19,005,112
179,114
434, 847
11,879,582
$64,223,169
4
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
Governmental Fund Types
LIABILITIES, FUND EQUITY Special Debt Capital
AND OTHER CREDITS General Revenue Service Proiects
Liabilities:
Overdrafts payable $ 416,927 $ $ $ 6,520
Accounts payable 217,843 5,116
Accrued salaries and wages 387,636
Customer and escrow deposits 39,443
Accrued interest 23,147
Due to other funds --Note 8 387,299 16,699
Bonds and certificates of obligation
payable --Notes 3 and 4
Notes payable -Note 3
Deferred revenue 224,962 59,427 23,916
Compensated absences
Deferred compensation benefits payable --
Note 12
Due to other governments 3.201
Total liabilities 1,637,868 21,815 82,574 69,879
Fund equity and other credits:
Investment in general fixed assets
Net contributed capital --Note 9
Retained earnings:
Reserved for debt service and
construction --Notes 3 and 4
Insurance
Workers' Compensation
Liability
Unreserved
Fund balances:
Reserved for:
Park improvements 1,094
Drug enforcement 34,956
Recycling 9,507
Development agreements (14,542) 1,230,427
Prepaids 19,181
Betterment 43,553
Unreserved:
Designated for:
Contingency 510,000
Emergency 500,000
Undesignated 1,159,983 146.675 325,120 536.585
Total fund equity and other credits 2.243,318 167,089 325,120 1,767.012
Total liabilities, fund equity and other credits $3,881,186 $ 188,904 $ 407,694 $1,836,891
The Notes to Financial Statements are an integral part of this statement.
5
Proprietary
Fund Types
Internal
Enterprise Service
Funds Funds
$ 1,748,972 $
194,881
107,332
683,254
69,356
6,020,000
103,873
71,040
62,605
Fiduciary
Fund Type
Deferred
Compensation
Agency Fund
2,313,311
8,927,668 133,645 2,313,311
9,082,778
1,166,853
10,291,060
41,000
100,000
100,000
1,334,359
Account
General
Fixed
Assets
11,298,917
Groups
General
Long-term
Debt
11,646,587
94,445
527,432
12,268,464
(2 of 2)
Totals
(Memorandum Only)
1993 1992
$ 2,172,419
488,880
494,968
722,697
92,503
466,603
17, 666, 587
94,445
412,178
527,432
2,313,311
3.201
25,455,224
11,298,917
9,082,778
1,166, 853
41,000
100,000
100,000
11,625,419
1,094
34,956
9,507
1,215,885
19,181
43,553
510,000
500,000 1,000,000
2.168.363
21, 040,691 1,575,359 11,298.917 38.417.506
$29,968,359 $ 1,709,004 $ 2,313,311 $11,298,917 $12268.464 $63.872.730
$ 3,522,654
321,054
401,056
641,482
82,169
549,904
18, 066, 587
132,245
488,717
465,597
2,067,164
15.001
26,753,630
11,145, 690
9,394,306
2,550,146
9,374,476
1,094
17,979
9,507
1,205,840
477,656
500,000
2,792,845
37,469,539
$64,223,169
6
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Special
General Revenue
Revenues:
General property tax $ 4,313,041 $
Gross receipts tax 1,696,924 352,715
General sales tax 2,713,462
Fines and fees 1,353,196
Licenses and permits 312,660
Interest income 152,815
Intergovernmental 54,797
Other revenues 296,750 4,621
Total revenues 10,893,645 357,336
Expenditures:
Current:
City Council/Administrative 345,736
Finance 676,426
Police Department 3,571,026
Fire Department 2,397,789
Administrative services 479,011
Planning and development 553,819 159,591
Parks/Recreation/Library 1,397,600
Street maintenance 487,759
Betterment 10,275
Nondepartmental 955,545
Debt service:
Principal retirement
Interest and service charges
Capital outlay and maintenance 159,503
Total expenditures 10,874,986 319,094
Excess (deficiency) of revenues over expenditures 18,659 38,242
Other financing sources (uses)
Net proceeds from issuance of certificates
of obligation
Payment to Refunding Escrow
Operating transfers in 547,239
Operating transfers out
Total other financing sources (uses) 547,239
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses 565,898
Fund balances, beginning of year 1,863,444
Prior Period Adjustment --Note 14 (186,024)
Fund balances, end of year $ 2,243,318
The Notes to Financial Statements are an integral part of this statement.
38,242
128,847
$ 167,089
7
Debt
Service
$ 1,551,316
22,628
1,573,944
855,000
828,671
1,683,671
(109, 727)
6,635,466
(6,635,466)
(109,727)
434,847
$ 325,120
Capital
Proiects
$
34,915
5,525
62,829
103,269
883,263
883,263
(779, 994)
80,000
(105,000)
(25, 000)
(804, 994)
2,577,783
(5,777)
$1,767, 012
Totals
(Memorandum
1993
$ 5,864,357
2,049,639
2,713,462
1,353,196
312,660
210,358
60,322
364,200
12, 928,194
345,736
676,426
3,571,026
2,397,789
479,011
713,410
1,397,600
487,759
10,275
955,545
855,000
828,671
1,042,766
13,761,014
(832, 820)
6,635,466
(6,635,466)
627,239
(105,000)
522,239
(310,581)
5,004,921
(191.801)
$ 4,502,539
Only)
1992
$ 5,979,963
1,549,263
2,183,248
1,291,629
210,525
287,660
437,082
459,991
12,399,361
331,033
582,862
3,417,222
2,199, 693
497,120
747,345
1,348,652
454,150
13,309
933,530
765,000
852,947
1,407,510
13, 550,373
(1,151,012)
450,000
461,595
(92, 982)
818,613
(332,399)
5,337,320
$ 5,004,921
8
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 1993
(1 of 2)
Variance
Favorable
Actual Budget (Unfavorable).
General property tax:
Current and delinquent taxes $4,277,702 $4,431,631 $ (153,929)
Penalty and interest 35.339 75.000 (39.661)
4,313,041 4,506,631 (193,590)
Gross receipts tax:
Southwestern Bell Telephone Company 279,120 307,440 (28,320)
Texas Utilities Electric Company 1,005,187 772,500 232,687
Lone Star Gas Company 135,943 127,100 8,843
Cable TV 155,446 154,500 946
City Garbage Service 67,336 61,500 5,836
Others 53,892 52,275 1,617
1,696,924 1,475,315 221,609
General sales tax 2,713,462 2,403,750 309,712
Fines and fees:
Franchise fees 475,025 449,470 25,555
Municipal Court fines 766,160 706,000 60,160
Dog licenses and pound fees 7,139 9,500 (2,361)
Ambulance fees 104,872 135,000 (30,128)
1,353,196 1,299,970 53,226
Licenses and permits:
Building permits 121,555 90,000 31,555
Miscellaneous permits 164,409 183,120 (18,711)
Electric licenses 26,696 20.000 6,696
312,660 293,120 19,540
Interest income 152,815 154,000 (1,185)
Intergovernmental
54,797 75,000 (20,203)
Other revenues:
Library receipts 14,601 15,000 (399)
Rental income 18,100 17,600 500
Texas Court cost service fees 17,580 18,000 (420)
Jail income 83,478 125,000 (41,522)
Swimming pools 18,761 18,000 761
Miscellaneous income 144,230 96,500 47.730
296,750 290,100 6,650
Total revenues 10,893,645 10,497.886 395,759
9
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 1993
Expenditures:
Current:
City Council/Administration
Finance
Police Department
Fire Department
Administrative services
Street maintenance
Planning and development
Parks/Recreation/Library
Betterment
Nondepartmental
Total expenditures
Actual
$ 345,736
676,426
3,571,026
2,397,789
479,011
487,759
553,819
1,397,600
10,275
955,545
10, 874, 986
Budget
$ 346,755
670,200
3,700,954
2,408,836
461,214
535,415
585,694
1,399,937
35,000
872,142
11,016,147
Excess (deficiency) of revenues over
expenditures 18,659 (518,261)
Other financing sources:
Operating transfers in 547,239 521,684
Excess (deficiency) of revenues
and other financing sources
over expenditures
Fund balance, beginning of year
Prior Period Adjustment - Note 14
Fund balance, end of year
(2 of 2)
Variance
Favorable
(Unfavorable)
$ 1,019
(6,226)
129,928
11,047
(17,797)
47,656
31,875
2,337
24,725
(83,403)
141,161
536,920
25,555
565,898 3,423 562,475
1,863,444 1,863,444
(186, 024) (186, 024)
$ 2,243,318 $ 1,866,867 $ 376,451
The Notes to Financial Statements are an integral part of this statement.
10
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Insurance premiums
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Service center --Note 7
Drainage
Recreation classes
Insurance costs --Note 10
Depreciation
Amortization
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of equipment
Interest on bonds
Total nonoperating revenues, net
Income before operating transfers
Operating transfers in
Operating transfers out
Income (loss) before extraordinary Toss
Extraordinary loss
Net income (loss)
Add depreciation on fixed assets acquired with
contributed capital --Note 9
Increase in retained earnings
Retained earnings, beginning of year
Retained earnings, end of year
Internal
Enterprise Service
Funds Funds
$ 5,874,020 $
3,106,810
313,334
365,921
450.158
10,110,243
538,135
2,970,503
287,462
204,730
1,369,629
1,557,441
463,335
65,326
367,327
836,334
7.761
8.667.983
1,442,260
242,114
(328.360)
(86,246)
1,356,014
25,000
(502.125)
878,889
878,889
424.727
1,303,616
10.654,297
$11,957,913
The Notes to Financial Statements are an integral part of this statement.
1,714,235
232,877
1,947,112
Totals
(Memorandum Only)
1993
$ 5,874,020
3,106, 810
313,334
365,921
1,714,235
683,035
12, 057,355
443,403 981,538
2,970,503
287,462
204,730
1,369,629
1,557,441
463,335
65,326
367,327
1,026,802
1,011,136
7.761
10.312,990
1,026,802
174,802
1.645.007
302,105 1,744,365
51,882 293,996
(3,839) (3,839)
(328,360)
48,043 (38.203)
350,148 1,706,162
78,090 103,090
(123.204) (625.329)
305,034 1,183, 923
305,034 1,183, 923
424,727
305,034
1,270.325
$ 1,575,359
1,608,650
11, 924. 622
$13,533.272
1992
$ 4,986,564
2,554,417
316,340
256,732
1,657,547
706.863
10,478,463
539,678
3,078,032
295,324
192,661
1,255,067
1,478,237
477,063
217,579
268,208
1,342,299
945,579
13,732
10.103.459
375,004
447,114
(14,808)
(302.534)
129.772
504,776
192,983
(561.596)
136,163
(163.386)
(27, 223)
446.964
419,741
11.504.881
$11.924, 622
11
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
(1 of 2)
Internal Totals
Enterprise Service (Memorandum Only)
Funds Funds 1993 1992
OPERATING ACTIVITIES
Operating income $ 1,442,260 $ 347,099 $ 1,789,359 $ 375,004
Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation and amortization expenses 850,066 174,802 1,024,868 959,311
Increase (decrease) due to net changes in:
Accounts Receivable and unbilled revenue (424,431) (424,431) (91,197)
Due from other funds 100,000 100,000 100,000
Prepaids and deposits 428,336 428,336 (429,826)
Due from other governments 2,985 2,985 (2,985)
Overdrafts payable (389,268) (389,268) 827,834
Accounts payable 144,580 (80,043) 64,537 55,519
Accrued salaries and wages 40,625 40,625 25,999
Customer and escrow deposits 74,903 74,903 28,494
Deferred revenue (7,800) (7,800) (7,800)
Intergovernmental payable (13,0551 (13,0551 13,055
Total adjustments 803,956 97,744 901,700 1,478,404
Net cash provided by operating activities 2,246,216 444,843 2,691,059 1,853,408
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (341,173) (341,173) (287,273)
Reduction in bonds payable (330,000) (330,000) (335,000)
Operating transfers in 25,000 78,090 103,090 192,983
Operating transfers out (502,125) (123,204) (625,329) (561,596)
Proceeds from bond sales 4,435,000
Deposit to advanced refunding escrow account (2,238,386)
Bond issuance costs (192,846)
Net cash provided by (used in) noncapital
financing activities (1,148,298) (45,114) (1,193,412) 1,012,882
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 113,199 113,199 174,937
Purchase of utility plant and equipment (565,968)
in service (1,866,961) (230,649) (2,097,610)
Proceeds from sale of utility plant in
service 49,425 49,425
Net cash used in capital and related
financing activities (1,753,762) (181,224) (1,934,986) (391,031)
12
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale or maturity of
investment securities
Interest received on investments
Net cash provided by (used in) investing
activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Reconciliation of cash to balance sheet
Cash - current
Cash - restricted assets
Cash and cash equivalents
Restricted assets:
Cash
Investments
Total restricted assets
Enterprise
Funds
$ (2,099,856) $
1,366,401
319.202
(414.2531
Internal
Service
Funds
(2 of 2)
Totals
(Memorandum Only)
1993 1992
$ (2,099,856) $ (8,130,048)
1,366,401
6,888 326.090
6,888
(1,070,097) 225,393
2,205.138 746,331
$ 1,135, 041 $ 971,724
$ 333,765 $ 971,724
801.276
$ 1,135, 041 $ 971,724
$ 801,276
1,849,323
$ 2,650,599
The Notes to Financial Statements are an integral part of this statement.
5,467,617
365,331
(407.365) (2,297,100)
( ,704)
2.951.469
178,159
2,773,310
$ 2.106.765 $ 2,951,469
13
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies
The financial statements of the City of Euless (the 'City') have been prepared in conformity with generally
accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards
Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial
reporting principles. The City's significant accounting policies are described below:
Reporting Entity
The combined financial statements of the City include all government activities and entities for which the City
exercises oversight responsibility. The criteria considered in determining governmental activities and entities
to be reported within the City's combined financial statements include the degree of oversight responsibility
(e.g. financial interdependency, selection of governing authority, designation of management, ability to
significantly influence operations) exercised by the City over a government activity or entity, the City's
accountability for the activity's or entity's fiscal matters, its scope of public service and the nature of any special
financing relationships which may exist between the City and government activity or entity. These criteria are
based upon and consistent with the Government Accounting and Financial Reporting Standards.
The City provides the full range of municipal services contemplated by statute or charter. Included in these
services are traditional city functions such as police and fire protection, road and traffic signal maintenance,
water and sewer operations, parks, recreation, courts and library services. The following entities are not
included in the combined financial statements because they are autonomous governments and do not meet
any of the above criteria.
Hurst -Euless -Bedford Independent School District - provides education services;
Texas Municipal Retirement System - provides retirement benefits to City employees;
Trinity River Authority of Texas - provides water and sewer services to various municipalities;
Texas Municipal League Joint Self Insurance Fund - provides administrative services for various
municipalities' self insurance plans.
The following entity was found to be a component unit of the City and is included in the Special Revenue Fund
type of the combined financial statements:
Euless Development Corporation - The City created the Corporation for the purpose of promoting parks,
library services, and economic development within the City. There shall be seven directors, four of whom
shall be members of the City Council. The remaining three members shall be residents of the City. All
Board members will be appointed by the City Council. The Corporation is authorized to sell bonds or other
forms of indebtedness. Upon dissolution of the Corporation, the assets of the Corporation shall be
distributed to the City of Euless, Texas.
Fund Accounting
The City uses funds and account groups to report on its financial position, the results of its operations and its
cash flows. Fund accounting is designed to demonstrate legal compliance and to aid financial management
by segregating transactions related to certain City functions or activities.
A fund is a separate accounting entity with a self -balancing set of accounts. An account group, on the other
hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are
not recorded in the funds because they do not directly affect net expendable available financial resources.
Funds are classified into three categories: governmental, proprietary and fiduciary. Each category, in turn,
is divided into separate 'fund types.'
14
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies - continued
Fund Accounting - continued
Governmental funds are used to account for all or most of the City's general activities, including the collection
and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed
assets (capital projects funds) and the servicing of general Tong -term debt (debt service funds). The general
fund is used to account for all activities of the City not accounted for in some other fund.
Proprietary funds are used to account for activities similar to those found in the private sector, where the
determination of net income is necessary or useful to sound financial administration. Goods or services from
such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies
within the City (internal service funds).
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
All governmental funds are accounted for using a current financial resources measurement focus. With this
measurement focus, only current assets and current liabilities generally are included in the balance sheet.
Operating statements of these funds present increases (i.e., revenues and other financing sources) and
decreases (i.e., expenditures and other financing uses) in net current assets.
All proprietary funds are accounted for on a flow of economic resources measurement focus. With this
measurement focus, all assets and all liabilities associated with the operation of these funds are included on
the balance sheet. Fund equity (i.e., assets net of liabilities) is segregated into contributed capital and retained
earnings components. Proprietary fund -type operating statements present increase (e.g., revenues) and
decreases (e.g., expenses) in net assets.
The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under
the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they
become both measurable and available). 'Measurable' means the amount of the transaction can be
determined and 'available' means collectible within the current period or soon enough thereafter to be used
to pay liabilities of the current period. The City considers property taxes as available if they are collected within
60 days after year-end. A one-year availability period is used for revenue recognition for all other governmental
fund revenues. Expenditures are recorded when the related fund liability is incurred. Interest on general long-
term debt is recorded as a fund liability when due or when amounts have been accumulated in the debt service
fund for payments to be made early in the following year.
Revenue considered susceptible to accrual are property taxes, gross receipts tax and interest revenue. Sales
taxes collected and held by the state at year-end on behalf of the City also are recognized as revenue. Fine
and permit revenues are not susceptible to accrual because generally they are not measurable until received
in cash.
The accrual basis of accounting is utilized by Proprietary Fund Types. Under this method, revenues are
recorded when earned and expenses are recorded at the time liabilities are incurred or estimated.
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential
revenue does not meet both the 'measurable' and 'available' criteria for recognition in the current period.
Deferred revenues also arise when resources are received by the government before it has legal claim to them,
as grant monies received prior to qualifying expenditures being incurred. In subsequent periods, when both
revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for
deferred revenue us removed from the combined balance sheet and revenue is recognized. Deferred revenues
primarily include delinquent property taxes and unexpended revenues for capital projects.
15
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies - continued
Budgetary Data
The City Council follows these procedures in establishing budgetary data reflected in the financial statements:
1. Prior to August 1, the City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following October 1. The operating budget includes proposed
expenditures and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 21, the budget is legally enacted through passage of an ordinance and a
budgetary report is prepared.
4. The City Manager is authorized to transfer budgeted amounts between departments within any fund;
however, any revision that alters the total expenditures of any fund must be approved by the City
Council. The budget presented reflects revisions made by the City Manager during the year. Total
expenditures approved by the City Council have not been altered.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund. Budgetary control is maintained at the function level.
6. A budget for the General Fund is legally adopted on a basis consistent with generally accepted
accounting principles. Appropriations and encumbrances lapse at year-end.
7. The City does not maintain a formal budget for the Special Revenue Funds due to minimal activity
occurring within the funds.
8. Formal budgetary integration is not employed for the Debt Service Funds because effective
budgetary control is alternatively achieved through general obligation bond indenture provisions.
9. Budgetary data for the Capital Projects Funds has not been presented in the accompanying
combined financial statements as such funds are budgeted over the life of the respective project and
not on an annual basis. Accordingly, formal budgetary integration of the Capital Projects Funds is
not employed and comparison of actual results of operations to budgetary data for such funds is
not presented.
10. Appropriated budgets for the Proprietary Funds are also adopted, but have not been presented
since reporting on such budgets is not legally required.
Cash, Cash Equivalents and Investments
Substantially all operating cash, cash equivalents, and short-term investments are maintained in consolidated
cash, cash equivalents, and investment accounts. Related interest income is allocated to the various funds
based primarily on ownership by each fund of specific investments. Cash equivalents consist solely of cash
invested in the Local Government Investment Fund for Texas and highly liquid investments with original
maturities of three months or less. The Local Government Investment Fund is a pooled investments fund for
the benefit of governments within the State of Texas which invests in securities as allowed under state statutes.
For purposes of the combined statement of cash flows, the City considers all highly liquid investments
(including cash equivalents reported as restricted assets of $801,276 and $666,234 at September 30, 1993 and
1992, respectively) as set forth above to be cash equivalents.
16
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies - continued
Cash, Cash Equivalents and Investments - continued
Short-term investments consist of certificates of deposits and U.S. Government securities with original maturities
of three months or more. These investments are stated at cost or amortized cost.
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.
Taxes
Property taxes attach as an enforceable lien on property as of January 1, are levied for appropriation for the
fiscal year beginning on October 1, are due October 1, and become delinquent on February 1. Property taxes
are accrued based on the period for which they are levied and available. Delinquent taxes expected to be
collected later than 60 days after fiscal year-end are considered not available and are treated as deferred
revenue. Property taxes for cities, including those applicable to debt service, are limited by the Texas
Constitution to $2.50 per $100 of assessed valuation. The City's current tax rate is $.5986 per $100 of
assessed valuation ($.5986 per $100 last year) and assessed valuation is approximately 100% of estimated
value.
Inventories
Inventories, which are recognized as expenditures as they are consumed, are stated at cost (first -in, first -out
method) for the General Funds. Inventories consist primarily of expendable supplies.
Fixed Assets
Fixed assets are recorded at cost (or fair value, if contributed) when acquired. General fixed assets are
recorded as expenditures in the General Fund, Special Revenue Funds, and Capital Projects Funds at the time
of purchase or construction and are capitalized in the General Fixed Assets Account Group at cost. Public
domain ("infrastructure") general fixed assets consisting of certain improvements other that buildings, including
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not
capitalized in the general fixed assets account group. No depreciation is recorded on general fixed assets.
Expenditures for utility plant and equipment are capitalized in the Proprietary Fund Types. Depreciation is
recorded on each class of depreciable property in the proprietary funds beginning the year following the year
of acquisition and utilizing the straight-line method over the following estimated useful lives of assets as follows:
Equipment
Waterworks and
sanitary sewer system
Compensated Absences
5 - 15 years
33 1/3 years
Employees may accumulate a maximum of two times their annual vacation. The City's policy is to pay the
employee accumulated vacation upon termination. The city does not pay employees for accumulated sick
leave upon termination. Accumulated vacation in the proprietary funds has been accrued as incurred and
reported as accrued salaries and wages (a current liability). The accumulated vacation of the governmental
fund type, representing an estimate of the amounts not expected to be liquidated with expendable available
financial resources, has been recorded in the General Long -Term Debt Account Group.
17
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies - continued
Compensated Absences - continued
The estimated vacation liability expected to be satisfied with available financial resources is included in accrued
salaries and wages in the General Fund.
Fund Equity
Certain assets that are restricted to a specific future use or are not available for appropriation or expenditure
are offset by fund balance reserve accounts. Designated fund balances represent tentative plans for future
use of financial resources.
At September 30, 1993, the Service Center Fund (reported with the Water and Sewer Funds) reflected a deficit
fund balance of approximately $57,962. The City has a budgeted plan to reduce cost by $20,000 a year over
four years to eliminate the deficit.
Comparative Data
Comparative total data for the prior year have been prepared in the accompanying combined financial
statements in order to provide an understanding of the changes in the City's financial position, operations and
cash flows. Complete comparative data (i.e., presentation of prior year totals by fund type in each of the
statements) have not been presented since its inclusion would make the statements unduly complex and
difficult to read.
Memorandum Totals
The totals column on the combined statements are captioned Memorandum Only to indicate that they are
presented only to facilitate financial analysis. Data in these columns do not presents financial position, results
of operations or cash flows in conformity with generally accepted accounting principles. Neither is such data
comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Interfund Transactions
Quasi -external transactions are accounted for as revenues, expenditures or expenses. Transaction that
constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly
applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as a reduction
of expenditures/expenses in the fund reimbursed.
All other interfund transactions, except quasi -external transactions and reimbursements, are recorded as
transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers.
All other interfund transfers are reported as operating transfers.
Note 2. Deposits and Investments
Deposits - At September 30, 1993, the ledger balances of the City's bank deposits totaled $(727,603) and the
bank balances were $198,737. Of the bank balances, $198,737 were protected by federal depository insurance
or by collateral held by the City's agent in the City's name. The remainder was collateralized with securities
held by the pledging financial institutions' trust departments in the City's name.
Investments - At September 30, 1993, the City's investments are categorized as either (1) insured or registered
or for which the securities are held by the City or its agent in the City's name; (2) uninsured and unregistered
for which the securities are held by the financial institution's trust department or agent in the City's name; or
(3) uninsured and unregistered for which the securities are held by the broker or dealer, or by its trust
department or agent but not in the City's name, as follows:
18
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 2. Deposits and Investments - continued
U.S. Securities
Local Govemment
Investment Fund
Deferred Compen-
sation Agency
Fund investments
1
Categories
2
3
Carrying
Amount
Market
Value
$10,218,446 $10,218,446 $10,220,541
1,923,831 1,923,831
2.313.311 2,313.311
$ 14,455.588 $ 14,457.683
The Deferred Compensation Agency Fund investments are held by independent investment managers for the
ultimate benefit of the City employees and are not covered by the state statutes restricting investment instruments
and requiring collateralization.
Note 3. Long -Term Debt
A summary of Tong -term debt transactions for the year ended September 30, 1993, is as follows:
General Tong -term debt
account group:
General Obligation Bonds
Certificates of Obligation
Notes payable
Compensated absences
Proprietary Fund Types:
Water and Sower Revenue
Bonds
Drainage Utility Revenue
Bonds
Balance
Beginning
of Year Increase Decrease
$ 7,981,587
3,735,000
132,245
465,597
$12,314,429
$ 4,250,000
2.100.000
$ 6,350,000
$ 6,695,000
$ 4,450,000
2,315,000
37,800
61.835
$ 6.756.835 $ 6,802,800
$ $ 305,000
25.000
$ $ 330.000
Balance
End
of Year
$10, 226, 587
1,420, 000
94,445
527,432
$12,268.464
$ 3,945,000
2, 075, 000
$ 6,020.000
19
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 3. Long -Term Debt - continued
Debt outstanding at September 30, 1993 consists of the following:
General Obligation Bonds
Certificates of Obligation
Notes Payable
Water and Sewer Revenue
Bonds
Drainage Utility Revenue
Bonds
Range of Outstanding Current Long -Term
Interest Rates Balance Maturities Maturities
2.80 to 10.00%
5.40 to 7.40%
7.34%
$10,226,587 $ 930,000 $9,296,587
1,420,000 155,000 1,265,000
94,445 37,800 56,645
4.50 to 10.75% 3,945,000 325,000 3,620,000
4.75 to 6.70% 2,075,000 25,000 2,050,000
The debt matures serially through the year 2010 and has various call options whereby it may be redeemed during
certain periods prior to maturity. A schedule of principal and interest maturities follows. Due to the nature of the
obligation for compensated absences, annual requirements to amortize such obligations are not determinable and
have not been included in the following summary.
1994
1995
1996
1997
1998
1999-2003
2004-2008
2009-2010
Less interest
General Certif-
Obligation cates of
Bonds Obligation
$ 1,731,718 $ 396,342
1,718,900 395,912
1,709,300 414,107
1,535,040 410,921
1,303,987 402,212
5,841,685 769,886
2,281,273
16,121, 903 2,789,380
5,895,316 1,369,380
Notes
Payable
$ 46,252
46,252
11,563
Water and
Sewer
Revenue
Bonds
$ 528,286
521,921
535,205
521,480
527,355
2,245,187
261,650
104,067 5,141,084
9.622 1,196,084
Utility
Drainage
Revenue
Bonds
$ 154,620
153,370
152,070
155,732
224,082
1,131,066
1,152, 522
468.112
3,591,574
1,516,574
Principal $10,226,587 $1,420,000 $ 94,445 $3,945,000 $2,075,000
Total
$ 2,857,218
2,836,355
2,822,245
2,623,173
2,457,636
9,987,824
3,695,445
468,112
27,748,008
9,986,976
$17,761,032
General Obligation Bonds authorized and unissued as of September 30, 1993, amounted to $300,000. Water and
Sewer Revenue Bonds authorized and unissued as of September 30, 1993, 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.
The notes payable included in the General Long-term Debt Account Group were issued for the purchase of
computer equipment and software. The principal and interest on such notes will be paid with revenues from the
Police Drug Enforcement Fund.
In June 1993, the City issued $6,695,000 General Obligation Refunding Bonds with interest rates ranging from
2.8% to 5.5%. The City used $5,910,000 of the proceeds to refund outstanding G.O. bonds and Certificates of
Obligation. The proceeds from the refunding were used to purchase U.S government securities and were
deposited into an irrevocable trust with an escrow agent to redeem all outstanding bonds as they come due. As
a result of this transaction, the bonds are considered defeased and the bonds have been removed from the
General Long-term debt account group.
20
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 3. Long -Term Debt - continued
The City advance refunded the bonds to lower debt service. The advance refunding of the bonds will increase
total debt service by $459,363 with an estimated economic gain of $923,615.
At September 30, 1993 $1,965,000 of the defeased bonds in the 1991 refunding are still outstanding.
Water and Sewer Revenue Bonds and Refunding Bonds and Drainage Utility Revenue Bonds are payable solely
from and equally secured by a first lien on and pledge of the net revenue of the City's combined waterworks and
sanitary sewer system and the net revenues of the City's drainage utility system, respectively.
In accordance with the water and sewer revenue and refunding bond ordinances, the following special reserves
were established:
Reserve for revenue bond debt service - to be used for retirement of the current portion of principal and interest
payments due.
Reserve for revenue bond retirement - to be used for payment of principal and interest on bonds at any time
where there is not sufficient money available in the revenue bond debt service fund. No payments are required
into this fund after accumulating therein an amount equal to the average annual principal and interest
requirements of the bonds outstanding.
Reserve for emergency - to be used for payment of extraordinary repairs or replacements to the system
necessitated by an emergency for which no other funds are available. Should the reserve for bond debt service
and/or reserve for bond retirement prove deficient, the reserve for emergency shall be used for the purpose of
meeting principal and/or interest requirements of the bonds.
All funding requirements for the above reserves were met at September 30, 1993. The amounts reserved are
reported as restricted assets of the Enterprise Funds.
Investments of funds included in the bond reserve and emergency accounts are restricted to direct obligations
unconditionally guaranteed by the United States of America having maturities not in excess of ten and five years,
respectively.
Note 4. Restricted Assets
Restricted assets consist of cash, investments and accrued interest primarily restricted for Water and Sewer
Enterprise Fund debt service and water and sewer system replacements.
The City sold certain of the waterworks and sanitary sewer system properties situated within the City of Bedford
to that city in 1968. The proceeds were restricted to the prepayment or redemption of certain revenue bonds;
investment income of the funds may be applied to current revenue bond interest up to stipulated amounts. As
of September 30, 1993, the balance in the property sales proceeds account was $467,226 and is included in
restricted assets in the accompanying balance sheet.
Note 5. Commitments and Contingent Liabilities
The City entered into a 50 year contract dated September 25, 1973, with the Trinity River Authority of Texas (the
'TRA') whereby the TRA agrees to provide supplemental water and sewage treatment for consideration. Payments
by the City are based on metered usage at rates designed to charge the City a prorata share of the TRA's annual
operating and maintenance expenses, principal and interest requirement on bonds issued by the TRA. Payments
under this contract approximated $3,790,000 in 1993 and are included as operating expenses of the water and
sewer fund. The payments, net of refunds, decreased approximately $90,000 in comparison to 1992.
21
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 5. Commitments and Contingent Liabilities - continued
The City is involved in an 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. Fixed Assets
Balance Balance
September 30, September 30,
1992 Additions Deletions 1993
Land $ 871,250 $ $ $ 871,250
Buildings 4,927,995 4,927,995
Improvements other
than buildings 1,547,829 44,094 1,591,923
Machinery and
equipment 3,798,616 109,133 3,907,749
$ 11,145,690 $ 153,227 $ $ 11,298,917
The following is a summary of utility plant and equipment in service at September 30, 1993 included in the
proprietary funds:
Enterprise Funds
Drainage Internal
Enterprise Fund Utility Fund Service Funds
Land $ 1,528,966 $ $ -
Equipment 1,067,856 89,607 883,517
Waterworks and sanitary sewer system 25,480,687
Construction in progress 728,485 1,051,516
28,805,994 1,141,123 883,517
Less accumulated depreciation 10,646,075 146,237
$18,159,919 $ 1,141,123 $ 737,280
Note 7. Service Center
The Water and Sewer Enterprise Fund historically bears the major portion of the operating costs of the City's
service center which provides services to all city departments.
Note 8. Interfund Assets/Liabilities:
Receivable Fund Payable Fund Amount
General Risk Management $ 31,303
Half -penny Sales Tax 16,699
Water and sewer General 331,302
Risk Management 87.299
$ 466,603
22
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 9. Contributed Capital
During fiscal 1993, contributed capital of the Water and Sewer Enterprise Funds increased by developer's
contributions in aid to construction in the amount of $113,199 and decreased $424,727 representing current year
depreciation on assets acquired with contributed capital.
Note 10. Risk Management
The City participates in the Texas Municipal League Joint Self Insurance Fund ('TMLIF') to provide both general
liability and property insurance. The City, along with other participating entities, contributes annual amounts
determined by TMLIF management. As claims arise they are submitted to and paid by TMLIF. The City is not
liable for payments beyond their annual contributions to TMLIF.
The City provides employee medical insurance coverage on a self -insured basis. Premiums are paid into a
separate Insurance Fund by other funds, by the City's employees, and by retirees and are available to pay claims,
claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual
claims in excess of $50,000 and aggregate claims in excess of $1,118,613. During fiscal 1993, the City and City's
employees contributed approximately $726,000 and $367,000 respectively, for medical coverage. The City's
contributions are accounted for as quasi -external transactions. Claims incurred but not reported have been
considered by the City in determining the claims liability at September 30, 1993 and are accounted for in the
Internal Service Fund.
The City is also self -insured for workers' compensation claims. Contributions are made to a separate Risk
Management Fund by other funds and are available to pay claims, claim reserves and administrative costs of the
program. An excess coverage insurance policy covers individual claims in excess of $300,000. During 1993, the
City contributed approximately $621,000 to the fund for workers' compensation.
Note 11. Employee Retirement System
Plan Description
The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory,
defined contribution plan in a state-wide Texas Municipal Retirement System (TMRS), one of over 613
administered by TMRS, an agent multiple -employer public employee retirement system. It is the opinion of the
TMRS management that the plans in TMRS are substantially defined contribution plans but they have elected to
provide additional voluntary disciosure to foster a better understanding of some of the nontraditional
characteristics of the plan.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and city -financed
monetary credits, with interest. At the date the plan began, the city granted monetary credits for service rendered
before the plan began of a theoretical amount equal to two times what would have been contributed by the
employee with interest, prior to establishment of the plan. Monetary credits for service since the plan began are
a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In addition, the city can grant
as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical
amount which, when added to the employee's accumulated contributions and the monetary credits for service
since the plan began, would be the total monetary credits and employee contributions accumulated with interest
if the current employee contribution rate and the city matching percent had always been the average of his salary
in the last three years that are one year before the effective date. At retirement, the benefit is calculated with
interest and the employer -financed monetary credits with interest were used to purchase an annuity.
Members can retire at ages 60 and above with 10 years or more of service or with 25 years of service regardless
of age. The plan also provides death and disability benefits. A member is vested after 10 years, but he must
leave his accumulated contributions in the plan. If a member withdraws his own money, he is not entitled to the
23
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 11. Employee Retirement System - continued
employer -financed monetary credits, even if he was vested. The plan provisions are adopted by the governing
body of the city, within the options available in the state statutes governing TMRS and within the actuarial
constraints also in the statutes.
Contributions
The contribution rate for the employees is 7%, and the city matching percent is currently 200%, both as adopted
by the governing body of the city. Under the state law governing TMRS, the city contribution rate is annually
determined by the actuary. This rate consists of the normal cost contribution rate and the prior service
contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cost
contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the city to
each employee at the time his retirement becomes effective. The prior service contribution rate amortizes the
unfunded actuarial liability over the remainder of the plan's 25 year amortization period. When the city periodically
adopts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is
to be amortized over a new 25 year period. Currently, the unfunded actuarial liability is being amortized over the
25 year period which began in January 1991. The unit credit actuarial cost method is used for determining the
city contribution rate. Contributions are made monthly by both the employees and the city. Since the city needs
to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation
that is the basis for the rate and the calendar year when the rate goes into effect.
The city's total payroll in fiscal 1993 was $7,982,120 and the city's contributions were based on a payroll of
$7,716,965. Both the city and the covered employees made the required contributions, amounting to $879,734
(11.4% of covered payroll for the months in calendar year 1992, 8.68% normal cost plus 2.72% to amortize the
unfunded actuarial liability, and 10.81 % for the months in calendar year 1993, 8.74% normal cost plus 2.34% to
amortize the unfunded actuarial liability) for the city and $561,642 (7%) for the employees. The city adopted
changes in the plan since the previous actuarial valuation, which had the effect of increasing the city's contribution
rate for 1993 by 0.18% of payroll. There were no related party transactions.
Funding Status and Progress
Even though the substance of the city's plan is not to provide a defined benefit in some form, some additional
voluntary disclosure is appropriate due to the nontraditional nature of the defined contribution plan which has an
initial unfunded pension benefit obligation due to monetary credits granted by the city for services rendered before
the plan began and which can have additions to the unfunded pension benefit obligation through the periodic
adoption of increases in benefit credits and benefits. Statement No. 5 of the Governmental Accounting Standards
Boards (GASB 5) defines pension benefit obligation as a standardized disclosure measure of the actuarial present
value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the
future as a result of employee service to date. The measure is intended to help users assess the funding status
of public employee pension plans, assess progress made in accumulating sufficient assets to pay benefits when
due, and make comparisons among public employee pension plans.
The pension benefit obligation shown below is similar in nature to the standardized disclosure measure required
by GASB 5 for defined benefit plans except that there is no need to project salary increases since the benefit
credits earned for service to date are not dependent upon future salaries. The calculations were made as part
of the annual actuarial valuation as of December 31, 1992. Because of the money -purchase nature of the plan,
the interest rate assumption, currently 8.5% per year, does not have as much impact on the results as it does for
a defined benefit plan. Market value of the assets is not determined for each city's plan, but market value of
assets of TMRS as a whole was 112.3% of book value as of December 31, 1992.
24
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 11. Employee Retirement System - continued
Pension Benefit Obligation
Annuitants currently receiving benefits $1,705,184
Terminated employees 1,688,289
Current Employees
Accumulated employee contributions included
allocated invested earnings 5,766,604
Employer -financed vested 8,395,332
Employer -financed nonvested 1,796,057
Total $19,351,466
Net Assets Available for Benefits, at Book Value 15,660,032
Unfunded Pension Benefit Obligation 3,691,434
The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The
actuarial assumptions used to compute the actuarially determined city contribution rate are the same as those
used to compute the pension benefit obligation. The numbers above reflect the adoption of changes in the plan
since the previous actuarial valuation, which had the effect of increasing the pension benefit obligation by
$246,970.
Trend information for the past three years for TMRS is as follows:
Net Assets Available
For Benefits as a Unfunded Pension City Contribution
Percent of Pension Benefit Obligation as a as a Percent
Year Benefit Obligation Percent of Covered Payroll Covered Payroll
1991 77.74% 45.05% 11.44%
1992 80.23% 42.47% 11.41%
1993 80.92% 46.25% 11.40%
Historical trend information for TMRS is presented in the Statistical Section, Table 15 of the City's Comprehensive
Annual Financial Report. This table provides information about progress made in accumulating sufficient assets
to pay benefits when due.
Note 12. Deferred Compensation Plan
The City offers its employees a Non-contributory Deferred Compensation Plan (the 'Plan') consistent with Internal
Revenue Code Section 457. Plan asset ownership remains with the City until the employee terminates with the
City, retires or experiences an unforeseeable emergency. Employees may contribute voluntarily to the Plan up
to $7,500 annually.
Assets of the plan are invested primarily in various mutual funds. The current market value of the funds'
investments at September 30, 1993 was $2,313,311. The Plan has no unfunded liabilities. All contributions to
the Plan are remitted bi-weekly to the administrator of the Plan.
All amounts of compensation deferred under the Plan, all assets purchased with these amounts, and all income
attributable to these amounts, are (until paid or made available to the employee or other beneficiary) solely the
property and rights of the city subject only to the claims of the City's general creditors. The City has no legal
liability for losses of the plan, but does have the duty of due care that would be required of an ordinary prudent
investor. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the
future. The Plan is reported as a fiduciary fund in the accompanying financial statements.
25
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 13. Segments of Enterprise Activities
The City maintains three Enterprise Funds. The Water and Sewer Fund provides water distribution and
wastewater collection services and contractually secures water supply and wastewater treatment services from
the Trinity River Authority. The Drainage Utility Fund provides drainage services. The Recreation Fund provides
various recreational services and activities.
Segment information for the City's Enterprise Funds is as follows:
Water and Drainage Recreation
Sewer Fund Fund Fund Total
Operating revenues $ 9,430,988 $ 348,082 $ 365,921 $10,144,991
Depreciation 836,334 836,434
Operating income (loss) 1,195,658 303,330 (1,406) 1,497,582
Operating transfers out 475,025 15,000 12,100 502,125
Operating transfers in 25,000 25,000
Net income (loss) 744,032 203,685 (13,506) 934,211
Current Capital
contributions 113,199 113,199
Property, plant and
equipment:
Additions 725,839 1,141,123 1,866,962
Deletions
Total Assets 27,393,421 2,562,449 12,489 29,968,359
Net Working Capital 4,493,436 1,303,828 2,887 5,800,151
Long-term debt,
including current
portion v 3,945,000 2,075,000 6,020,000
Total equity 20,599,326 438,478 2,887 21,040,691
Note 14. Prior Period Adjustment
Subsequent to the issuance of its 1992 financial statements the City discovered that due from other governments
and accrued interest receivable were overstated by $191,801. Therefore, the beginning fund balances of the
general fund and capital projects fund have been adjusted $186,024 and $5,777, respectively. The period to
which these adjustments apply has not been determined, therefore, the effect, if any, on 1992 is not known.
26
INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
27
SPECIAL REVENUE FUNDS
Hotel/Motel Fund - to account for the operations and expenditures for which
hotel/motel occupancy taxes are used. Occupancy tax revenues are used primarily
for advertising and promotion of the City.
Police Drug Enforcement Fund - to account for proceeds from sale of assets seized
in connection with drug arrests. Revenues are used solely for police department
expenditures.
Half -Penny Sales Tax Fund - to account for the revenues and expenditures of the
Euless Development Corporation, a component unit of the City of Euless. The
expenditures of the half -penny sales tax can only be spent on cultural, recreational,
and economic development activities within the City of Euless.
28
CITY OF EULESS
SPECIAL REVENUE FUND
COMBINING BALANCE SHEET
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
ASSETS
Cash and cash equivalents
Short-term investments
Accrued interest receivable
Total assets
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable
Due to other funds
Hotel/
Motel
Fund
Police Half
Drug Penny
Enforcement Sales
Fund Tax
Totals
1993 1992
$ 19,953 $ 35,139 $ 2,757 $ 57,849
130,858 - 130,858
197 - 197
$ 151.008 $ 35.139 $ 2.757 $ 188.904
$ 4,333 $
Total liabilities $ 4.333 $
FUND EQUITY:
Fund Balances:
Reserve for drug enforcement
Reserve for capital projects
Unreserved, undesignated
Total fund equity $
Total liabilities and fund equity $
183 $ 600 $ 5,116
16.699 16.699
183 $ 17.299 $ 21.815
$ 47,820
154,188
672
$ 202.680
$ 34,956 $ - $ 34,956 $ 110,287
(14,542) (14,542) -
146.675 146,675 92,393
146.675 $ 34.956 $ (14.542) $ 167,089 $ 202.680
151.008 $ 35.139 $ 2.757 $ 188,904 $ 202.680
29
CITY OF EULESS
SPECIAL REVENUE FUND
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Hotel/
Motel
Fund
Police Half
Drug Penny
Enforcement Sales
Fund Tax
Revenues:
Gross receipts tax $ 131,951 $ 135,184
Other revenues 3.969 652
Total revenues 135,920
Expenditures:
Planning and development
Capital Outlay and maintenance
98,111
2.002
Total expenditures 100.113
Excess (deficiency) of
revenues over expenditures 35,807
Fund balance, beginning of year 110.868
$ 85,580
135,836 85,580
54,955 6,525
63,904 93.597
118.859 100.122
16,977 (14,542)
17,979
Totals
1993 1992
$ 352,715 $ 162,440
4,621 6,004
357,336 168,444
159,591 137,488
159,503 104,789
319.094
38,242
128,847
242.277
(73,833)
202.680
Fund balance, end of year 146,675 $ 34.956 $ (14,542) $ 167,089 $ 128.847
30
T M O ISYVIP
E
ri\
CAPITAL PROJECTS FUNDS
Park Improvements Certificates of Obligation Fund (1990) - to account for the
construction of park facilities. Financing was provided from the sale of Certificates of
Obligation of $2,000,000 in 1990.
Street Assessments Fund - to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and drainage
projects.
Street Improvement and Drainage Certificates of Obligation Fund (1990) - to account for
the construction of improvements to various street and drainage projects. Financing was
provided by the sale of Certificates of Obligation in 1990.
Equipment Contractual Obligations Fund (1992) - to account for the purchase of
equipment for the City. Financing was provided from the sale of Contractual Obligations
of $450,000 in 1992.
Fire Department Certificates of Obligation Fund (1990) - to account for improvements to
the fire station and purchase of equipment for the fire department. Financing was
provided from the sale of Certificates of Obligation in 1990.
Developer's Contribution Fund - to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
31
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUND
COMBINING BALANCE SHEETS
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
ASSETS
Cash and cash equivalents
Short-term investments
Accrued interest receivable
Due from other governments
Street
Park Improvement
Improvements and Drainage
Certificates of Street Certificates
Obligation Assessments of Obligation
Fund (1990) Fund Fund (1990)
$ 46,209
23.916
Total assets $ 70125
LIABILITIES AND FUND EQUITY
Overdrafts payable $
Customer and escrow deposits 13,560
Deferred revenue 23.916
$ 89,430
$ 115,011
295,789
651
$ 89.430 $ 411.451
3,745
Total liabilities 37,476 3,745
Fund balances:
Reserved for development
agreements
Unreserved, undesignated 32.649 89.430 407.706
Total fund equity 32.649 89.430 407.706
Total liabilities and fund balance $ 70,125 $ 89.430 $ 411.451
32
Equipment
Contractual
Obligations
Fund (1992)
$ 6,520
Fire Department
Certificates of
Obligation
Fund (1990)
$ 13,320
Developers'
Contribution
Fund
$ 115,200
1,133,196
4,169
1993
$ 379,170
1,428,985
4,820
23.916
1992
$1,130,574
1,400,000
21,664
169.977
__ _132320 $1.252.565 $1.836,891 $2.722.215
22,138
22,138
$ 6,520 $
39,443 33,131
23.916 111.301
69,879 144,432
1,230,427 1,230,427 1,205,840
(6.520) 536.585 1.371.943
(6.520) 1,767,012 2.577.783
13.320
13,320 1.230.427
$ 13,320 $1.252.565 $1.836.891 $2.722,215
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUND
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Street
Park Improvement
Improvements and Drainage
Certificates of Street Certificates
Obligation Assessments of Obligation
Fund (1990) Fund Fund (1990)
Revenues:
Interest Income $ $ $ 10,092
Intergovernmental 5,525
Other revenues 62.829
Total revenues 5,525 62,829 10,092
Expenditures:
Capital outlay and maintenance 146.060 339.645
Excess (deficiency) of revenues
over expenditures (140,535) 62,829 (329,553)
Other financing sources (uses):
Operating transfers in 80,000
Operating transfers out (80.000) (25.000)
Total other financing sources (uses) (80.000) 55.000
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses (140,535) (17,171) (274,553)
Fund balances, beginning of year 173,184 112,378 682,259
Prior Period Adjustment (5.777)
Fund balances, end of year $ 32.649 $ 89.430 $ 407.706
34
Equipment Fire Department
Contractual Certificates of
Obligations Obligation
Fund (1992) Fund (1990)
$ 236 $
236
397.558
(397,322)
(397,322)
390,802 13,320
(6.520) 13.320
Developers'
Contribution
Fund
1993
$ 24,587 $ 34,915 $
5,525
62.829
24,587 103,269
883.263
24,587 (779,994)
80,000
(105.000)
(25.000)
1992
84,317
390,677
143.964
618,958
1.302.721
(683,763)
450,000
(92.982)
357.018
24,587 (804,994) (326,745)
1,205,840 2,577,783 2,904,528
(5.777)
$1.230.427 $1.767,012 $2.577.783
T M 1 0 1 T♦ 0 P
ENTERPRISE FUNDS
Water and Sewer Funds - to account for the acquisition, operation and maintenance
of a municipal water and sewer utility, supported primarily by user charges to the
public.
Drainage Utility Fund - to account for the acquisition, operation and maintenance of
a municipal drainage utility, supported primarily by user charges.
Recreation Classes - to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
36
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
Water and
Sewer Fund
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments 4,440,772 1,062,542
Accounts and unbilled revenue
Tess allowance for uncollectible
of $1,463 for water and sewer and
$33,875 for drainage utility 1,505,356 53,517
Accrued interest receivable 29,583 5,710
Prepaid and deposits 1,490
Due from other funds 418.601
Total current assets 6,513,052 1,325,795 12,489
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond retirement:
Investments with paying
agent, at cost
Revenue bond emergency:
Short-term investments
Property sale proceeds account:
Investments with paying
agent, at cost
Capital projects account:
Cash and cash equivalents
Short-term investments
Customer deposits:
Cash and cash equivalents
Interest receivable on investments
Total restricted assets
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
Utility plant and equipment in
service, at cost:
Land
Equipment
Waterworks and sanitary sewer system
Construction in progress
Less accumulated depreciation
Net utility plant and
equipment in service
TOTAL ASSETS
38,418
653,758
500,000
467,226
90,991
200,000
671,867
28.339
2,650,599
85,373
15,522
69,851
107,473
11.942
95,531
1,528, 966
1,067,856 89,607
25,480,688
728,484 1,051.516
28,805,994 1,141,123
10.646, 075
18,159,919 1,141.123
$27.393.421 $ 2,562,449
$ 12,489
Drainage
Utility Recreation
Totals
1993 1992
$ 117,250 $ 204,026 $ 12,489 $ 333,765 $ 1,538,904
5,503,314 4,113,700
1,558,873 1,134,442
35,293 74,904
1,490 429,826
418.601 518.601
7,851,336 7,810,377
38,418 14,325
653,758 905,234
500,000 500,000
467,226 518,823
90,991 43,558
200,000 553,086
671,867 608,351
28.339 65.816
2,650,599 3,209,193
192,846 192,846
27.464 13.732
165,382 179,114
1,528,966
1,157, 463
25, 480, 688
1,780,000
29,947,117
10.646,075
19.301, 042
$29, 968,359
1,528,966
976,155
25,332,088
242,947
28,080,156
9.809.741
18, 270.415
$29.469.099
37
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Due to other governments
Total current liabilities
Current obligations payable from
restricted assets:
Customer and escrow deposits
Current portion of bonds payable
Accrued interest
Bonds payable
Deferred revenue
Total liabilities
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection
Agency
From Trinity River Authority
Accumulated depreciation on
assets acquired with
contributed capital
Net contributed capital
Retained Earnings:
Reserved for:
Revenue bond retirement
Emergency
Construction
Total reserved
Unreserved
Total retained earnings
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
Water and
Sewer Fund
$ 1,748,972
163,312
107,332
2,019,616
Drainage
Utility Recreation
21,967
21,967
683,254
325,000 25,000
42,352 27,004
3,620,000 2,050,000
103,873
6,794,095 2,123,971
13,902,950
239,617
15,000
14,157, 567
5,074,789
9,082,778
1,166,853
500,000
1,666,853
9.849.695
11.516.548
438,478
438.478
20,599.326 438,478
$27,393,421 $ 2,562,449
Totals
1993 1992
$ $ 1,748,972
9,602 194,881
107,332
9,602 2,051,185
$ 2,138,240
50,301
66,707
13,055
2,268,303
683,254 608,351
350,000 330,000
69,356 82,169
5,670,000 6,020,000
103,873 111,673
9,602 8,927,668 9,420,496
2,887
2,887
13,902,950 13, 789, 751
239,617 239,617
15,000 15,000
14,157,567 14,044,368
5,074,789 4,650,062
9,082,778 9,394,306
1,166,853
500,000
1,666,853
10,291,060
11,957.913
2,887 21,040,691
$ 12,489
$29,968,359
1,453,502
500,000
596.644
2,550,146
8,104,151
10, 654.297
20,048,603
$29,469.099
38
T ■ � 0 1 • ♦ • �
E
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Service center
Drainage
Recreation classes
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of equipment
Interest on bonds
Total nonoperating revenues, net
Income before operating transfers
Operating transfers in
Operating transfers out
Income (loss) before extraordinary Toss
Extraordinary loss
Net income (loss)
Add depreciation on fixed assets
acquired with contributed capital
Increase (decrease) in retained earnings
Retained earnings, beginning of year
Retained earnings, end of year
Water and
Sewer Fund
$ 5,874,020
3,106, 810
450.158
9,430,988
538,135
2,970,503
287,462
204,730
1,369,629
1,557,441
463,335
Drainage
Utility
313,334
313,334
65,326
836,334
7,761
8,235.330 65.326
1,195,658 248,008
184,207 57,907
(185,808) (142,552)
(1.601) (84,645)
1,194, 057 163,363
25,000
(475,025) (15,000)
744,032 148,363
744,032
424.727
1,168,759
10,347,789
$11,516,548
Recreation 1993
Totals
1992
$ $ 5,874,020 $ 4,986,564
3,106,810 2,554,417
313,334 316,340
365,921 365,921 256,732
450,158 490,115
365,921 10,110,243 8,604,168
538,135 350,708
2,970,503 3,078,032
287,462 295,324
204,730 192,661
1,369,629 1,255,067
1,557,441 1,478, 237
463,335 477,063
65,326 217,579
367,327 367,327 268,208
836,334 827,711
7,761 13.732
367.327 8,667,983 8,454,322
(1,406) 1,442,260 149,846
242,114 387,796
(14,808)
(328.360) (302,534)
(86,246) 70,454
(1,406) 1,356,014 220,300
25,000
(12,100) (502.125) (417, 746)
(13,506) 878,889 (197,446)
(163.386)
148,363 (13,506) 878,889 (360,832)
148,363
290,115
$ 438,478 $ 2,887 $11,957,913
424,727
(13,506) 1,303,616
16,393 10,654.297
446,964
86,132
10,568,165
$10, 654, 297
39
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Water and Drainage Totals
Sewer Fund Utility Recreation 1993 1992
OPERATING ACTIVITIES
Operating income $ 1,195,658 $ 248,008 $ (1,406) $ 1,442,260 $ 149,846
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization
expenses 844,095 5,971 850,066 841,443
Increase (decrease) due to net
changes in:
Accounts Receivable and
unbilled revenue (435,911) 11,480 (424,431) (91,197)
Due from other funds 100,000 100,000 100,000
Prepaids and deposits 428,336 428,336 (429,826)
Overdrafts payable (389,268) (389,268) 833,286
Accounts payable 118,363 16,615 9,602 144,580 40,440
Accrued salaries and wages 40,625 40,625 25,999
Customer and escrow deposits 74,903 74,903 28,494
Deferred revenue (7,800) (7,800) (7,800)
Intergovernmental payable (13.055) (13,055) 13.055
Total adjustments 760,288 34,066 9,602 803,956 1.353.894
Net cash provided by operating activities 1,955,946 282,074 8,196 2,246,216 1,503,740
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (210,364) (130,809) (341,173) (287,273)
Reduction in bonds payable (305,000) (25,000) (330,000) (335,000)
Operating transfers in 25,000 25,000
Operating transfers out (475,025) (15,000) (12,100) (502,125) (417,746)
Proceeds from bond sales 4,435,000
Deposit to advance refunding
escrow account (2,238,386)
Bond issuance costs (192.846)
Net cash provided by (used in) noncapital
financing activities (965,389) (170,809) (12,100) (1,148,298) 963,749
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 113,199 113,199 174,937
Purchase of utility plant and equipment
in service (725.838) (1,141,123) (1,866,961) (281,293)
Net cash used in capital and related
financing activities (612,639) (1,141,123) (1,753,762) (106,356)
40
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale or maturity of
investment securities
Interest received on investments
Net cash provided by (used in) investing
activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Water and Drainage
Sewer Fund Utility
Totals
Recreation 1993 1992
$ (2,099,856) $ $
656,159
240,201
710,242
79,001
(1,203,496) 789,243
(825,578) (240,615)
1,744,104 444,641
$ 918.526 $ 204,026
$ (2,099,856) $(8,130,048)
1,366,401
319,202
(414.253)
5,467,617
306,013
(2,356,418)
(3,904) (1,070,097) 4,715
16.393 2,205,138 2,200,423
$ 12,489 $ 1,135.041 $ 2,205,138
41
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
1993 1992
ASSETS
Current assets:
Cash and cash equivalents $ 117,250 $ 1,077,870
Short-term investments 4,440,772 2,340,916
Accounts receivable and unbilled revenue Tess allowance
for estimated uncollectible accounts of $1,463 in 1993
and 1992 1,505,356 1,069,445
Accrued interest receivable 29,583 48,100
Prepaid and deposits 1,490 429,826
Due from other funds 418.601 518,601
Total current assets 6,513,052 5,484,758
Restricted assets:
Revenue bond debt service:
Cash with paying agent 38,418 14,325
Revenue bond retirement:
Investments with paying agent, at cost 653,758 905,234
Revenue bond emergency:
Short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent, at cost 467,226 518,823
Capital projects account:
Cash and cash equivalents 90,991 43,558
Short-term investment 200,000 553,086
Customer deposits:
Cash and cash equivalents 671,867 608,351
Interest receivable on investments 28.339 65.816
Total restricted assets 2,650,599 3,209,193
Bond issuance cost 85,373 85,373
Less accumulated amortization 15,522 7.761
Net bond issuance cost 69,851 77,612
Utility plant and equipment in
service, at cost:
Land 1,528,966 1,528,966
Equipment 1,067,856 976,155
Waterworks and sanitary sewer system 25,480,688 25,332,088
Construction in progress 728,484 242.947
28,805,994 28,080,156
Less accumulated depreciation 10,646,075 9,809.741
Net utility plant and equipment in service 18,159,919 18,270,415
TOTAL ASSETS $27,393,421 $27,041.978
42
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
1993 1992
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable $ 1,748,972 $ 2,138,240
Accounts payable 163,312 44,949
Accrued salaries and wages 107,332 66,707
Due to other governments 13,055
Total current liabilities 2,019,616 2,262,951
Current obligations payable from
restricted assets:
Customer and escrow deposits 683,254 608,351
Current portion of bonds payable 325,000 305,000
Accrued interest 42,352 66,908
Bonds payable 3,620,000 3,945,000
Deferred revenue 103,873 111,673
Total liabilities 6,794,095 7,299,883
Fund equity:
Contributed capital:
From subdividers 13,902,950 13,789,751
From Environmental Protection Agency 239,617 239,617
From Trinity River Authority 15,000 15,000
14,157, 567 14, 044,368
Accumulated depreciation on assets acquired with
contributed capital 5,074,789 4,650,062
Net contributed capital 9,082,778 9,394,306
Retained Earnings:
Reserved for:
Revenue bond retirement 1,166,853 1,453,502
Emergency 500,000 500,000
Construction 596,644
Total reserved 1,666,853 2,550,146
Unreserved 9,849,695 7,797,643
Total retained earnings 11,516,548 10,347,789
Total fund equity 20,599,326 19,742,095
TOTAL LIABILITIES AND FUND EQUITY $27,393,421 $27,041,978
43
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
1993 1992
Operating revenues:
Water service $ 5,874,020 $ 4,986,564
Sewer service 3,106,810 2,554,417
Service fees and miscellaneous 450,158 490.115
Total operating revenues 9,430,988 8,031,096
Operating expenses:
General and administrative 538,135 350,708
Water production 2,970,503 3,078,032
Water distribution 287,462 295,324
Utility engineering 204,730 192,661
Sewage collection and treatment 1,369,629 1,255,067
Nondepartmental 1,557,441 1,478,237
Service center 463,335 477,063
Depreciation 836,334 827,711
Amortization 7,761 7,761
Total operating expenses 8,235.330 7,962,564
Operating income 1,195,658 68,532
Nonoperating revenues (expenses)
Investment income 184,207 311,897
Gain (loss) on sale of equipment (14,808)
Interest on bonds (185,808) (199.341)
Total nonoperating revenues, net (1,601) 97.748
Income before operating transfers 1,194,057 166,280
Operating transfers in 25,000
Operating transfers out (475.025) (397,421)
Income (loss) before extraordinary Toss 744,032 (231,141)
Extraordinary Toss on advanced refunding (163,386)
Net income (loss) 744,032 (394,527)
Add depreciation on fixed assets acquired
with contributed capital 424,727 446,964
Increase in Retained earnings 1,168,759 52,437
Retained earnings, beginning of year 10,347.789 10,295.352
Retained earnings, end of year $11,516.548 $10,347,789
44
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
1993 1992
General and administrative:
Salaries and benefits $ 348,195 $ 246,645
Postage and supplies 57,562 43,247
Maintenance of office machinery 40,631 22,742
Bad debts 15,242 22,274
Other 76.505 15,800
538,135 350,708
Water production:
Salaries and benefits 249,528 228,247
Operating supplies and expense 36,867 9,932
Maintenance of structures and equipment 37,286 32,385
Water - Trinity River Authority 2,646,822 2,797,120
Other 10,348
2,970,503 3,078,032
Water distribution:
Salaries and benefits 192,992 210,680
Operating supplies and expenses 16,955 5,249
Maintenance of structures and equipment 45,058 34,947
Water - Trinity River Authority 32,457 38,462
Other 5,986
287,462 295,324
Utility engineering:
Salaries and benefits 160,763 160,234
Operating supplies and expense 29,114 6,435
Maintenance of structures and equipment 11,427 10,187
Contractual services 3,426 15,805
204,730 192,661
Sewage collection and treatment:
Salaries and benefits 180,725 165,387
Operating supplies and expense 21,833 12,951
Maintenance of structures and equipment 21,192 6,678
Treatment fees - Trinity River Authority 1,145,879 1,057,569
Other 12,482
1,369,629 1,255, 067
Nondepartmental:
Salaries and benefits 402,117 359,973
Operating supplies and expenses 31,834 373,459
Contractual services 648,465 342,466
Franchise fees 475,025 397,421
Other 4,918
1,557,441 1,478,237
45
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
1993 1992
Service center:
Salaries and benefits $ 158,523 $ 152,411
Motor fuel and supplies 240,029 251,592
Maintenance of structures and equipment 48,031 67,053
Other 16.752 6,007
463,335 477,063
Depreciation and amortization 844,095 835,472
Total operating expenses $8,235,330 $ 7,962,564
46
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
1993 1992
OPERATING ACTIVITIES
Operating income $ 1,195,658 $ 68,532
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization expenses 844,095 835,472
Increase (decrease) due to net changes in:
Accounts Receivable and unbilled revenue (435,911) (114,536)
Due from other funds 100,000 100,000
Prepaids and deposits 428,336 (429,826)
Overdrafts payable (389,268) 833,286
Accounts payable 118,363 35,088
Accrued salaries and wages 40,625 25,999
Customer and escrow deposits 74,903 28,494
Deferred revenue (7,800) (7,800)
Intergovernmental payable (13,0551 13,055
Total adjustments 760.288 1,319,232
Net cash provided by operating activities 1,955,946 1,387,764
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (210,364) (199,341)
Reduction in bonds payable (305,000) (335,000)
Operating transfers in 25,000
Operating transfers out (475,025) (397,421)
Proceeds from bond sales 2,335,000
Deposit to advance refunding escrow account (2,238,386)
Bond issuance costs (85,373)
Net cash used in noncapital financing activities (965,389) (920,521)
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 113,199 174,937
Purchase of utility plant and equipment in service (725,838) (281,293)
Net cash used in capital and related financing activities (612,639) (106,356)
INVESTING ACTIVITIES
Purchase of investment securities (2,099,856) (6,357,264)
Proceeds from sale or maturity of investment securities 656,159 5,467,617
Interest received on investments 240,201 256,918
Net cash used in investing activities (1,203,496) (632,729)
Net decrease in cash and cash equivalents (825,578) (271,842)
Cash and cash equivalents, beginning of year 1,744,104 2,015,946
Cash and cash equivalents, end of year $ 918,526 $ 1,744,104
47
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1993
Capital
Operating Projects
Account Account
ASSETS
Current assets:
Cash and cash equivalents $
Short-term investments 4,284,512
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 1993 and 1992 1,505,356
Accrued interest receivable 29,583
Prepaid and deposits 1,490
Due from other funds 418,601
Total current assets 6,239,542
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond retirement:
Investments with paying agent, at cost
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investments with paying agent, at cost
Capital projects account:
Cash and cash equivalents 90,991
Short-term investments 200,000
Customer deposits:
Cash and cash equivalents 671,867
Interest receivable on investments 2,129
Total restricted assets 1,171, 867 293,120
Bond issuance cost 85,373
Less accumulated amortization 15.522
Net bond issuance cost 69,851
Utility plant and equipment in service, at cost:
Land 1,528,966
Equipment 1,047,646
Waterworks and sanitary sewer system 25,480,688
Construction in progress 728,484
28,057,300 728,484
Less accumulated depreciation 10,646,075
Net utility plant and equipment in service 17,411,225 728,484
TOTAL ASSETS $24,892,485 $ 1,021,604
48
Bond Service Debt Total
Reserve Center Impact Fees Service September 30,
Account Account Account Account Eliminations 1993
$ $ $ 93,657 $ 23,593 $ $ 117,250
156,260 4,440,772
1,505,356
29,583
1,490
418,601
249,917 23,593 6,513,052
38,418 38,418
653,758 653,758
500,000
467,226 467,226
90,991
200,000
671,867
26,210 28,339
1,185,612 2,650,599
85,373
15,522
69,851
1,528,966
20,210 1,067,856
25,480,688
728,484
20,210 28,805,994
10,646,075
20,210 18,159, 919
$ 1,185,612 $ 20,210 $ 249,917 $ 23,593 $ $27,393,421
49
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1993
LIABILITIES AND FUND
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Total current liabilities
Capital
Operating Projects
Account Account
$ 1,695,806 $
91,031
107,332
1,894,169
Current obligations payable from
restricted assets:
Customer and escrow deposits 683,254
Current portion of bonds payable 325,000
Accrued interest
Bonds payable 3,620,000
Deferred revenue 103.873
Total liabilities 6,626,296
Fund equity:
Contributed capital:
From subdividers 13,902,950
From Environmental Protection Agency 239,617
From Trinity River Authority 15.000
14,157, 567
Accumulated depreciation on assets acquired with
contributed capital 5,074.789
Net contributed capital 9,082,778
47,275
47,275
47,275
Retained Earnings:
Reserved for:
Revenue bond retirement
Emergency 500,000
Total reserved 500,000
Unreserved 8,683,411 974,329
Total retained earnings 9,183.411 974.329
Total fund equity 18,266,189 974,329
TOTAL LIABILITIES AND FUND EQUITY $24,892,485 $ 1.021,604
50
Bond Service Debt
Reserve Center Impact Fees Service
Account Account Account Account
Eliminations
Total
September 30,
1993
$ 53,166 $ $ $ $ 1,748,972
25,006 163,312
107,332
78,172 2,019,616
683,254
325,000
42,352 42,352
3,620,000
103,873
42,352 78,172 6,794,095
13, 902, 950
239,617
15,000
14,157, 567
5,074,789
9,082,778
1,143,260 23,593 1,166,853
500,000
1,143,260 23,593 1,666,853
(57.9621 249,917 9,849,695
1,143,260 (57,9621 249,917 23,593 11,516,548
1,143,260 (57,962) 249,917 23,593 20,599,326
$ 1,185,612 $ 20,210 $ 249,917 $ 23,593 $ $27,393,421
51
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1993
Capital
Operating Projects
Account Account
Operating revenues:
Water service $ 5,874,020 $
Sewer service 3,106,810
Service fees and miscellaneous 450.158
Total operating revenues 9,430,988
Operating expenses:
General and administrative 380,405
Water production 2,970,503
Water distribution 287,462
Utility engineering 204,730
Sewage collection and treatment 1,369,629
Nondepartmental 1,557,441
Service center
Depreciation 836,334
Amortization 7,761
Total operating expenses 7.614.265
116,897
116.897
Operating income (loss) 1,816,723 (116,897)
Nonoperating revenues (expenses)
Investment income 126,375 12,000
Gain (loss) on sale of equipment
Interest on bonds
Total nonoperating revenues, net 126,375 12,000
Income (loss) before operating transfers 1,943,098 (104,897)
Operating transfers from other funds or other water
and sewer accounts 445,083 237,717
Operating transfers to other funds or other water
and sewer accounts (1,594.590)
Net income 793,591 132,820
Add depreciation on fixed assets acquired
with contributed capital 424,727
Increase in Retained earnings 1,218,318 132,820
Retained earnings, beginning of year 7,965,093 841,509
Retained earnings (deficit), end of year $ 9.183,411 $ 974.329
52
$
Bond Service Debt Year Ended
Reserve Center Impact Fees Service September 30,
Account Account Account Account Eliminations 1993
$ $ $ $ $ 5,874,020
3,106, 810
450,158
9,430, 988
328 39,828 677 538,135
2,970,503
287,462
204,730
1,369,629
1,557,441
463,335 463,335
836,334
7,761
328 463,335 39,828 677 8,235,330
(328) (463,335) (39,828) (677) 1,195,658
41,598 4,234 184,207
(58,243) (127,565) (185.808)
(16,645) 4,234 (127,565) (1,601)
(16,973) (463,335) (35,594) (128,242) 1,194,057
490,000 113,199 128,566 1,389,565 25,000
(270. 000) 1,389, 565 (475.025)
(286,973) 26,665 77,605 324 744,032
424,727
(286, 973) 26,665 77,605 324 1,168, 759
1,430,233 (84,627) 172,312 23,269 10,347,789
$ 1,143,260 $ (57,962) $ 249,917 $ 23,593 $ $11,516,548
53
T M■ OIT• OP
E*
INTERNAL SERVICE FUNDS
Equipment Replacement Funds - to account for the accumulation of funds planned to
be used in replacing existing equipment. Funding is provided annually by the user
departments.
Insurance Fund - to account for the revenue and expenses resulting from providing
health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to the
self-insurance program for worker's compensation and for general liability and property
claims.
Cash and Debt Management Fund - to account for the revenues and expenses
incurred in providing cash and debt management services to all funds. Funding is
provided by a predetermined amount of earned investment income, not to exceed total
fund expenses.
54
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992
Equipment Risk Cash
Replacement Insurance Management and Debt Totals
Fund Fund Fund Management 1993 1992
ASSETS
Cash and cash equivalents $ 302,862 $ 135,183 $ 533,679 $ $ 971,724 $ 746,331
Due from other governments 2.985
Total currents assets 302,862 135,183 533,679 971,724 749,316
Equipment, at cost, net of
accumulated depreciation
of $146,238 737.280 737,280 734,697
TOTAL ASSETS $1,040,142 $ 135,183 $ 533.679 $ $1,709,004 $1,484,013
LIABILITIES AND
RETAINED EARNINGS
Accounts payable $ 9,664 $ 50,766 $ 10,610 $ 71,040 $ 151,083
Due to other funds 62,605 62,605 62.605
Total current liabilities 9,664 50,766 73,215 133,645 213,688
Retained earnings:
Reserved:
Insurance 41,000 41,000
Workers' compensation 100,000 100,000
Liability 100,000 100.000
Total reserved 41,000 200,000 241,000
Unreserved 1,030,478 43,417 260.464 1,334,359 1,270,325
Total retained earnings 1,030.478 84.417 460,464 1,575,359 1,270,325
TOTAL LIABILITIES AND
RETAINED EARNINGS $1.040.142 $ 135,183 $ 533,679 $ $1,709,004 $1,484.013
55
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Equipment Risk Cash
Replacement Insurance Management and Debt Totals
Fund Fund Fund Management 1993 1992
Operating revenues:
Insurance premiums $ $1,092,996 $ 621,239 $ $1,714,235 $1,657,547
Service fees and
miscellaneous 232,877 232,877 216.748
Total operating revenues 232,877 1,092,996 621,239 1,947,112 1,874,295
Operating expenses:
General and
administrative 63,852 111,395 223,162
Insurance costs 922,180 104,622
Depreciation 174,802
Total operating expenses 238,654 1,033,575 327,784
Operating income (loss) (5,777) 59,421 293,455
44,994 443,403 188,970
1,026,802 1,342,299
174,802 117,868
44,994 1,645,007 1,649.137
(44, 994) 302,105 225,158
Nonoperating revenues
(expenses):
Investment income 4,453 2,435 44,994 51,882 59,318
Gain (loss) on sale
of fixed assets (3.839) (3,839)
Total nonoperating
revenues, net 614 2,435 44,994 48,043 59.318
Income (loss) before
operating transfers (5,163) 59,421 295,890 350,148 284,476
Operating transfers in 3,090 75,000 78,090 192,983
Operating transfers out (27.758) (95,446) (123,204) (143,850)
Net income (loss) (2,073) 106,663 200,444 305,034 333,609
Retained earnings,
beginning of year 1,032.551 (22.246) 260,020 1,270,325 936,716
Retained earnings,
end of year $1,030,478 $ 84,417 $ 460,464 $ $1,575,359 $1,270,325
56
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1993
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1992
Equipment
Replacement
Fund
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile
operating income (loss)
to net cash provided by
(used in) operating
activities:
Depreciation expense
Increase in due from
other governments
Increase (decrease) in
accounts payable
Increase (decrease) in
overdrafts payable
Total adjustments
Net cash provided by operating
activities
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in
Operating transfers out
Net cash provided by (used in)
noncapital financing
activities
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment
Sale of equipment
Net cash provided by (used in)
capital and related financing
activities
INVESTING ACTIVITIES
Interest received on
investments
Net increase in cash and cash
equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents,
end of year
$ (5,777)
174,802
9,664
184,466
178,689
3,090
3,090
(230,649)
49,425
(181,224)
4,453
5,008
297.854
$ 302,862
Insurance
Fund
Risk
Management
Fund
Cash
and Debt
Management
$ 59,421 $ 293,455 $
2,985
(35, 738) (53, 969)
(32.753) (53.969)
26,668 239,486
75,000
(27, 758)
47,242
73,910
61.273
$ 135,183
57
(95.446)
(95,446)
2.435
146,475
387,204
533,679
Totals
1993 1992
$ 347,099 $ 225,158
174,802 117,868
2,985 (2,985)
(80,043) 15,079
(5,452)
97,744 124,510
444,843 349,668
78,090 192, 983
(123.204) (143,850)
(45,114) 49,133
(230,649) (284,675)
49,425
(181,224) (284,675)
6,888
225,393
746.331
59.318
173,444
572.887
$ $_971,724 $ 746,331
DEFERRED COMPENSATION AGENCY FUND
To account for assets held for employees in accordance with the provisions of Internal
Revenue Code Section 457.
58
Assets:
Investments
Liabilities:
Deferred compensation
benefits payable
CITY OF EULESS, TEXAS
DEFERRED COMPENSATION AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 1993
Balance Balance
September 30, September 30,
1992 Additions Deletions 1993
$ 2,067,164 $ 396,506 $ 150,359 $ 2,313.311
$ 2,067,164
$ 396,506 $ 150,359 $ 2,313.311
59
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not used in proprietary fund operations.
60
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 1993 AND 1992
1993 1992
General fixed assets:
Land $ 871,250 $ 871,250
Building 4,927,995 4,927,995
Improvements other than buildings 1,591,923 1,547,829
Machinery and equipment 3,907,749 3,798,616
Total general fixed assets $ 11,298,917 $ 11,145,690
Investment in general fixed assets by source:
General fund $ 5,045,030 $ 4,951,051
Special revenue funds 330,669 316,522
Capital projects funds 5,923,218 5,878,117
Total investment in general fixed assets $ 11,298,917 $ 11,145,690
61
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1993
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Total General Fixed Assets
Improvements
Other than
Land Building Buildings
$ 269,959 $1,382,874 $ 59,094
234,325 1,315,968 36,758
366,966 2,229,153 885,240
610,831
Machinery
and
Equipment Total
$ 643,089 $ 2,355,016
2,247,222 3,834,273
594,025 4,075,384
325,957 325,957
97,456 708,287
$ 871,250 $4,927,995 $1,591,923 $3,907,749 $11,298,917
62
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1993
General Fixed
Assets
Function September 30,
and Activity 1992 Additions
General government $ 2,261,037 $ 93,979 $
Public safety 3,815,545 18,728
Culture and recreation 4,074,835 549
Highways and streets 325,957
Construction -in -progress 668,316 39.971
$11,145,690 $ 153.227 $
Deletions
General Fixed
Assets
September 30,
1993
$ 2,355,016
3,834,273
4,075,384
325,957
708,287
$11,298,917
63
STATISTICAL SECTION
(unaudited)
Table 1
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
General
Fiscal Govern- Public Culture- Debt
Year ment Safety Streets Recreation Service Other Total
1984 $905,018 $3,529,424 $364,058 $859,754 $506,439 $509,600 $6,674,293
1985 1,060,047 3,963,322 401,902 947,590 780,540 592,995 7,746,396
1986 1,197,589 4,954,072 424,806 1,015,965 964,011 760,176 9,316,619
1987 1,316,296 4,649,517 402,974 1,034,905 1,341,171 593,150 9,338,013
1988 1,436,132 5,503,148 396,572 1,217,531 1,313,298 567,795 10,434,476
1989 1,385,187 5,643,811 480,722 1,332,050 1,357,689 648,861 10,848,320
1990 1,535,020 5,633,042 541,013 1,371,962 1,486,417 1,011,379 11, 578, 833
1991 1,560,800 5,723,750 507,226 1,231,257 1,772,314 1,208,755 12, 004,102
1992 2,020,872 5,616,915 454,150 1,348,652 1,617,947 946,839 12,005,375
1993 2,054,992 5,968,815 487,759 1,397,600 1,683,671 965,820 12,558,657
Note: Includes General Fund and Debt Service Fund.
64
Table 2
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Charges
for Interest
Licenses Inter- Service Income
Fiscal and govern- and Fines and Other
Year Taxes Permits mental Fines and Fees Revenues Total
1984 $4,967,971 $601,181 $402,107 $38,484 $265,800 $594,673 $6,870,216
1985 5,902,338 429,929 521,896 51,401 356,381 702,740 7,964,685
1986 6,374,355 330,136 601,988 60,466 423,482 664,199 8,454,626
1987 7,450,693 201,468 535,814 52,890 413,120 729,595 9,383,580
1988 8,044,902 164,031 380,612 54,682 501,151 610,444 9,755,822
1989 8,394,653 222,424 265 43,053 904,238 1,035,689 10,600,322
1990 8,529,240 290,944 19,078 55,163 1,158,986 929,589 10,983,000
1991 9,262,024 237,400 91,064 54,399 971,875 740,796 11,357,558
1992 9,550,034 210,525 46,405 64,601 1,291,629 448,765 11,611,959
1993 10,274,743 312,660 54,797 59,042 1,353,196 413,151 12,467,589
Note: Includes General Fund and Debt Service Fund.
65
Table 3
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Unaudited)
Percent of Ratio of Percent of
Current Delinquent Total Tax Outstanding Delinquent
Fiscal Total Current Tax Taxes Tax Total Tax Collections Delinquent Taxes to
Year Tax Lew Collections Collected Collections Collections to Tax Lew Taxes Tax Lew
1984 $2,808,055 $2,745,623 97.78% $77,156 $2,822,779 100.52% $268,760 9.57%
1985 3,298,386 3,182,483 96.49 127,288 3,309,771 100.35 256,955 7.79
1986 3,814,110 3,575,594 93.75 76,236 3,651,830 95.75 393,256 10.31
1987 4,485,209 4,704,417 97.09 167,892 4,872,309 100.56 428,865 8.85
1988 5,001,323 4,921,426 98.40 174,978 5,096,404 101.90 355,562 7.11
1989 4,975,719 4,926,213 99.00 165,469 5,091,682 102.33 331,891 6.67
1990 5,162,838 5,150,783 99.77 175,439 5,326,222 103.16 329,745 6.39
1991 5,717,223 5,586,764 97.72 106,503 5,693,267 99.58 349,226 6.11
1992 5,889,411 5,765,733 97.95 147,498 5,916,231 100.46 577,695 9.81
1993 5,943,537 5,880,688 98.94 73,853 5,954,541 100.19 239,370 4.03
66
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Real Property Personal
Estimated
Fiscal Assessed Actual Assessed
Year Value Value Value
1984 $343,084,060 $343,084,060 $58, 805, 741
1985 697, 008, 884 697,008, 884 68, 347, 443
1986 779, 704, 042 779, 704, 042 88, 759, 776
1987 1,080,231,222 1,080,231,222 101,144, 524
1988 1,024,645,236 1,024,645,236 112,007, 718
1989 968, 871,391 968, 871,391 112, 795, 668
1990 967,682,949 967,682,949 117,494,828
1991 1,050,436,076 1,050,436,076 108, 768,428
1992 872,811,737 872, 811,737 127, 990,604
1993 965,322,639 965,322,639 136,823,626
Source: Tarrant Appraisal District
67
Table 4
Ratio of
Total
Assessed
Property Total to
Estimated
Actual Assessed Actual Actual
Value Value Value Value
$58, 805, 741 $401, 889, 801 $401, 889, 801 100%
68,347,443 765,356,327 765,356,327 100
88,759,776 868,463,818 868,463,818 100
101,144, 524 1,181,375, 746 1,181,375,746 100
112,007,718 1,136,652,954 1,136,652,954 100
112,795,668 1,081,667,059 1,081,667,059 100
117, 494, 828 1,085,177,777 1,085,177,777 100
108,768,428 1,159,204,504 1,159,204,504 100
127, 990, 604 1, 000, 802,341 1, 000, 802, 341 100
136, 823, 626 1,102,146, 265 1,102,146, 265 100
68
Table 5
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal Junior
Year Citv (1) School (2) County (3) Hospital (3) Colleae (3) Total
1984 $.7000000 $1.2400 $.125000 $.104000 $.031000 $2.2000000
1985 .4400000 .7400 .125000 .104000 .031000 1.4400000
1986 .4400000 .8200 .098660 .096340 .031650 1.4866500
1987 .4200000 .7800 .117720 .111250 .031530 1.4605000
1988 .4400000 .9169 .117720 .111250 .031530 1.6174000
1989 .4600000 1.0200 .156509 .133000 .031480 1.8009800
1990 .4875000 1.0600 .182000 .153000 .033000 1.9155000
1991 .5408500 1.3200 .236800 .205800 .038400 2.3418500
1992 .5985637 1.5050 .277100 .229100 .043292 2.6536837
1993 .6186170 1.5150 .271880 .242100 .046710 2.6943070
Notes: A. General property taxes for cities are limited by the Texas Constitution to $2.50 per $100
of assessed valuation.
B. City general property taxes are due each year on October 1 and become delinquent on
February 1 each year. Penalties and interest are assessed on late payments. There are
no discounts.
C. The City's taxes are collected by Tarrant County and are distributed to the City as
collected.
Sources: (1)
(2)
(3)
City records
Hurst -Euless -Bedford Independent School District
Tarrant County
69
Table 6
CITY OF EULESS, TEXAS
RATIO OF NET GENERAL OBLIGATION BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(Unaudited)
Net
Net Bonded Net
General Debt to Bonded
Fiscal Estimated Assessed Bonded Assessed Debt Per
Year Population (1) Value (2) Debt Value Capita
1984 32,350 $401,889,801 7,539,858 1.88% $233
1985 36,050 765,356,327 8,746,367 1.14 243
1986 37,650 868,463,818 10,083,064 1.16 268
1987 38,700 1,181, 375, 746 10, 366, 504 .88 268
1988 39,750 1,136,652,954 10,181,354 .90 256
1989 40,250 1, 081, 667, 059 10, 906, 633 1.01 271
1990 38,149 1,085,177,777 12, 243, 552 1.13 298
1991 38,369 1,159,204, 504 11, 521,321 .99 300
1992 38,760 1,000,802,341 11,281,740 1.13 291
1993 38,778 1,092,468,318 11,321,467 1.04 291
(1) Estimates by North Central Texas Council of Governments as of January 1, 1993.
(2) Tarrant Appraisal District
70
Table 7
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 1993
(Unaudited)
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $11,321,467 100.00% $11,321,467
Grapevine-Colleyville Independent School District 69,718,660 2.12 1,478,036
Hurst -Euless -Bedford Independent School District 55,619,964 26.79 14,900,588
Tarrant County 158,654,443 2.72 4,315,401
Tarrant County Hospital District 38,063,631 2.72 1,035,331
Tarrant County Junior College District 41,285,000 2.72 1,122.952
Total direct and overlapping debt $34,173.775
Ratio of direct and overlapping
funded debt to taxable assessed valuation 3.13%
Per capital direct and overlapping bonded debt $ 881
71
Table 8
CITY OF EULESS, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR NET GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS
(Unaudited)
Ratio of
Debt
Service
Interest Total to
and Total General General
Fiscal Fiscal Debt Expendi- Expendi-
Year Principal Charges Service tures tures
1984 $195,000 $311,439 $506,439 $6,674,293 7.59%
1985 230,000 550,540 780,540 7,746,396 10.08
1986 290,000 674,011 964,011 9,316,619 10.35
1987 60,428 1,280,743 1,341,171 9,338,013 14.36
1988 549,732 763,566 1,313,298 10,434,476 12.59
1989 589,342 768,347 1,357,689 10,848,320 12.52
1990 639,281 847,136 1,486,417 11,578,833 12.84
1991 804,572 967,742 1,772,314 12,004,102 14.76
1992 765,000 852,947 1,617,947 12, 005, 375 13.48
1993 855,000 828,671 1,683,671 12,558,657 13.41
72
Table 9
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Net
Direct Revenue Interest
Gross Operating Available and
Fiscal Revenue Expenses for Debt Fiscal Coverage
Year (1) (2) & (3) Services Principal Charoes Total Ratio
1984 $5,197,388 $3,100,233 $2,097,155 $165,000 $475,323 $640,323 3.28
1985 6,601,117 3,691,945 2,909,172 250,000 422,923 672,923 4.32
1986 6,169,486 4,865,806 1,303,680 255,000 406,625 661,625 1.97
1987 7,677,625 5,595,639 2,081,986 275,000 390,012 665,012 3.13
1988 7,273,249 6,133,001 1,140,248 305,000 372,300 677,300 1.68
1989 7,442,771 5,550,251 1,892,520 310,000 347,301 657,301 2.88
1990 8,022,688 6,759,516 1,263,172 320,000 327,288 647,288 1.95
1991 7,796,635 6,314,851 1,481,784 290,000 312,925 602,925 2.46
1992 8,342,993 7,127,092 1,215,901 335,000 199,341 534,341 2.28
1993 9,615,195 7,391,235 2,223,960 305,000 185,808 490,808 4.53
Notes: 1. Operating revenues and investment interest of Water and Sewer Fund.
2. Total operating expenses of Water and Sewer Fund exclusive of depreciation and amortization.
3. Excludes amortization and depreciation and includes theoretical debt service payments made to Trinity River
Authority treated as operating expense for bond coverage purposes through 1989; subsequent to fiscal
1989, accounting for Trinity River Authority payments was changed and is consistent with the debt service
treatment above.
73
Table 10
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST TWO FISCAL YEARS
(Unaudited)
Net
Revenue Interest
Gross Direct Available and
Fiscal Revenue Operating for Debt Fiscal Coverage
Year (1) Expenses Services Principal Charges Total Ratio
1992 $391,839 $217,579 $174,260 $ $103,193 $103,193 1.69
1993 371,241 65,326 305,915 25,000 142,552 167,552 1.83
Note: The Drainage Utility Fund had no outstanding debt or debt service prior to 1992.
(1) Includes operating revenue and interest earned on investments.
74
Table 11
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
Per
Capita School Unemployment
Fiscal Income Enrollment Rate
Year Population (1) (2) (3) (4)
1984 32,350 13,006 15,606 4.2%
1985 36,050 13,940 15,248 5.0
1986 37,650 14,828 16,067 6.7
1987 38,700 15,739 16,818 6.9
1988 39,750 16,650 16,887 5.7
1989 40,250 17,560 17,011 5.8
1990 38,149 18,471 18,700 5.6
1991 38,369 19,382 18,707 7.0
1992 38,760 20,293 18,720 7.4
1993 38,778 20,303 18,981 5.6
Notes: 1. Estimates by North Central Texas Council of Governments as adjusted for 1990 census data.
2. Estimates by City
3. Hurst -Euless -Bedford Independent School District
4. Texas Employment Commission
75
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1993
(Unaudited)
Taxpayer
EFW Association
Sotogrande Partners
TU Electric
Southwestern Bell Telephone Company
Sunbelt Savings Association
Crossmark Partners II, Ltd.
AMLI SW
Everoak Partners
Village Green Investments
Prudential Realty Group
Type of
Business
Land
Apartments
Electric Utility
Telephone Utility
Land
Apartments
Retail
Apartments
Real Estate
Real Estate
Table 12
1992
Assessed
Valuation
$19,730,467 1.97%
18, 878, 759 1.89
18, 770, 980 1.88
17, 893, 000 1.79
9,842,351 .98
8,229,118 .82
8,092,929 .81
7,627,285 .76
7,028,131 .70
7.000.000 .70
$123.093.020 12.30%
Percentage
of Total
Assessed
Valuation
76
Table 13
CITY OF EULESS, TEXAS
TMRS DEFINED CONTRIBUTION PLAN
ANALYSIS OF FUNDING PROGRESS
LAST FIVE FISCAL YEARS - NOTE 1
(Unaudited)
Unfunded
Pension
Book Value Obligation
of Net Unfunded as a
Assets Pension Percentage
Available Pension Percent- Benefit Annual of
Fiscal for Benefit age Obli- Covered Covered
Year Benefits Obligation Funded nation (2) Pavroll (3) Pavroll
1989 $8,594,400 $11,295,300 76.09% $2,700,900 $6,781,968 39.82%
1990 9,732,600 12, 706, 000 76.60 2,973,400 6,756,115 44.01
1991 11,109,700 14,290,100 77.74 3,180,400 7,059,604 45.05
1992 13,044,900 16,259,300 80.23 3,214,400 7,567,856 42.47
1993 15,660,032 19,351,466 80.92 3,691,434 7,982,120 46.25
Notes: 1. Pension benefit obligation information is unavailable prior to fiscal year ended 1989.
2. City Records
3. Texas Municipal Retirement System
77
Table 14
CITY OF EULESS, TEXAS
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(Unaudited)
Construction (1)
Bank Property Number
Deposits Value of
Year (3) (2) Permits Value
1984 $44,872,000 $401,889,801 1,139 $113,992,018
1985 48,834,000 765,356,327 879 47,670,451
1986 72,689,000 868,463,818 443 42,546,836
1987 93,681,000 1,181,375,746 314 14,128,587
1988 186,022,000 1,136,652,954 405 27,937,240
1989 182,305,000 1,081,667,059 392 23,231,436
1990 89,192,000 1,085,177,777 559 23,370,614
1991 58,469,000 1,159,204,504 289 17, 505,423
1992 71,700,000 1,000,820,341 276 16,126,487
1993 39,198,000 1,092,468,318 331 21,224,743
Notes: 1. City Records
2. Tarrant Appraisal District
3. Bank records. The 1993 data does not includes the deposits of Bank One since the Bank can no longer
provide data for the branch location within the City.
78
Table 15
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 1993
(Unaudited)
Article XI, Section 5 of the State of Texas Constitution states in part:
'... no tax for any purpose shall ever be lawful for any one year, which shall exceed two and one-half percent of the
taxable property of such city.'
Additionally, the state Attorney General's Office normally limits general property taxes to $1.50 per $100 of assessed
valuation for the payment of principal and interest on general obligation bonds.
The City's total tax rate for fiscal 1993 was established at $.618617 per $100 of assessed valuation on 100% of appraised
value.
79
Table 16
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1993
(Unaudited)
Date of incorporation February 24, 1953
Date of adoption of Charter July 21, 1962
Form of government Home Rule - Council/Manager
Mayor - elected at large
Six Council members
Area 16.9 Square Miles
Full time City employees 252
Fire protection:
Number of stations
Number of certified firefighters
Police protection:
Number of stations
Number of certified officers
3
46
1
56
Parks and recreation:
Number of swimming pools 3
Number of parks 19
Area of parks 398 acres
Community buildings 3
Ampitheater 1
Library holdings:
Books
Other
54,776
4,525
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
80
Table 16
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1993
(Unaudited)
(continued)
City Water and Sewer service:
Water Service:
Number of Customers 18,337
Maximum daily capacity available from
Trinity River Authority 29,000,000
Maximum daily capacity from City water wells 5,760,000
Total daily capacity 34,760,000
Maximum daily consumption 11,540,000
Average daily consumption 7,000,000
Water mains 148 miles
Fire hydrants 1,130
Sewer Service:
Average daily flow of wastewater 3,140,000
Number of customers 17,937
Sewer mains 125 miles
Streets:
Improved 150 miles
State highways 17.2 miles
81
t
I
I
1
1
1
1
1
1
1
1
1
1
I