HomeMy WebLinkAboutFY 1994 Comprehensive Annual Financial ReportI.
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THE CIT Y OF
EU LESS
Comprehensive Annual
Financial Report
Fiscal Year 1993/94
WEAVER AND TIDWELL
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
FACSIMILE (817) 429-5936
January 17, 1995
To the Honorable Mayor,
City Council and City Manager
The City of Euless, Texas
DALLAS OFFICE
THREE FOREST PLAZA, 19TH FLOOR
12221 MERIT DRIVE
DALLAS, TEXAS 76261
(214) 490-1970
In planning and performing our audit of the financial statements of the City of Euless,
Texas, for the year ended September 30, 1994, 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 City'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 made to the general fixed asset account group in the general ledger
to capitalize the machinery and equipment expenditures.
We recommend that the City record only governmental fund asset
expenditures in the general fixed asset account group and record the proprietary
fund type fixed assets in the general ledger accounts of the appropriate proprietary
fund and that depreciation expense be computed and recorded each month. We
also recommend that all asset balances be recorded in the general fixed asset
account group in addition to the machinery and equipment assets.
Managements Response:
The City is cognizant of the need to enhance our documentation and
reporting of fixed assets. City Council has approved funding in fiscal 1995 for
a valuative study and request for proposals are now in development stages.
In addition to performing our audit of the financial statements, we were requested by
management to perform an operations review of the Facility and Fleet Service Departments in
WEAVER AND TIDWELL
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
The City of Euless, Texas
January 17, 1995
Page 2
order to provide recommendations for improvement. We have the following comments related
to our current year operations review:
INVENTORY
The fleet services department maintains a parts inventory for repairs on
vehicles. The department has an inventory listing, but does not reconcile the
listing to the actual inventory and does not perform a physical inventory of the
parts. The department personnel have the software to maintain perpetual
inventory records, but they are not currently utilizing it.
We recommend that a physical inventory be performed on the parts
inventory monthly, the balances be entered into the inventory software, and
perpetual records be maintained.
COMPUTER BACKUP
Both the facility and fleet service departments have automated records on
a central computer. The computer system is independent of the City's computer
system, and no physical records are maintained on the information in the
computer. The department backs up the system on disks once a month.
We recommend that since the information on the computer system is not
maintained or recorded anywhere else, the system should be backed up daily.
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.
WEAVER AND TIDWELL
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
The City of Euless, Texas
January 17, 1995
Page 3
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.
WiAt ,�`�'1, (.L.P.
WEAVER AND TIDWELL, L.L.P
/cm
JAMES A. CRIBBS
BOB McFARLAND
PAUL F. WIENESKIE
PAUL T. FRANCIS
PAUL TOM ME
Weaver & Tidwell
1500 Commerce Bldg.
307 W. 7th Street
Fort Worth, Texas 76102
CRIBBS & McFARLAND
A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
1000 WEST ABRAM
P. O. BOX 13060
ARLINGTON, TEXAS 76094-0060
January 4, 1995
D/FW METRO TEL: (B17) 461-2000
TELECOPIER: (1317) 275-7610
IN RE: Annual Audit for City of Euless, Texas, for Fiscal Year Ending
September 30, 1994
Gentlemen:
We have been requested by officials of the City of Euless, Texas, to provide you
certain information pursuant to request for same.
PENDING OR THREATENED LITIGATION, CLAIMS AND ASSESSMENTS:
As of September 30, 1994, there were pending items of litigation involving the
City of Euless. In each of these instances where damages are sought against the
city, however, defense of the city is being assumed by its liability insurance carriers
and in no instance should the extent of the claim asserted, even if successful, exceed
the limits of insurance coverage available to the City of Euless, under existing
policies. Therefore, we believe no reserve need be established for such claims as
adequate insurance coverage exists for the costs of defense of same and any liability
ultimately determined.
Therefore, while there were claims outstanding as of September 30, 1994, both
threatened or in litigation, it is our opinion that none of such suits or claims will
result in a payment obligation of the city in excess of its self insured deductible and
which are not fully covered by insurance policies, or which would result in a liability
of the city for which any additional reserve or special contingency should be
established.
UNASSERTED CLAIMS OR ASSESSMENTS:
As of the date hereof the undersigned has no knowledge of any claims or
assessments, unasserted, or which would be probable of assertion and which, if
asserted, would have at least a reasonable possibility of an unfavorable outcome
against the city or favorable outcome if asserted by the city.
Weaver & Tidwell
January 4, 1995
Page 2
SUMMARIZATION OF MATERIAL LITIGATION, CLAIMS AND ASSESSMENTS
RELATING TO THE CITY AN RESOLVED SINCE DATE OF LAST REPORT:
All claims and litigation asserted against the city as of date of our last report,
same being as of September 30, 1994, have, as hereinbefore indicated, either been
resolved without imposition of any liability upon the city or, if still pending, will not
result in the imposition of any liability against the city not fully compensated from
insurance coverage or available insurance funds or other than from funds or reserves
established or available to the city.
As of September 30, 1994, there were no unpaid invoices for services rendered
by the undersigned as City Attorney for the City of Euless, Texas.
This response is limited by, and in accordance with, the American Bar
Association's Statement of Policy regarding lawyers' responses to auditors' requests
for information (December, 1975); without limiting the generality of the foregoing,
the limitations set forth in such statement on the scope and use of this response
(Paragraphs 2 & 7) are specifically incorporated herein by reference and any
description herein of any "loss contingencies" is qualified in its entirety by Paragraph
5 of this statement and accompanying commentary (which is an integral part of the
statement). This letter is furnished solely for your information in connection with
the examination and preparation of financial statements of the City of Euless,
Texas, as of December 30, 1994, and is not to be quoted in whole or in part or
otherwise referred to in any financial statement of the company or other document.
Nor is it to be filed with any governmental agency or institution or other person
without the prior written consent of this firm.
Your truly,
Bob McFarlan
MRMkf
cc: Mr. Tom Hart, City Manager
City of Euless
Ms. Debra Forte', Director of Fiscal & Human Resources
City of Euless
The Honorable Mary Lib Saleh, Mayor
City of Euless
0247a
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
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
GLENN WALKER, COUNCIL MEMBER PLACE FIVE
HENRY BOATRIGHT, COUNCIL MEMBER PLACE SIX
TOM HART, CITY MANAGER
Joe Hennig
Assistant City Manager
Debra B. Forte'
Director of Fiscal & Human Resources
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1994
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of transmittal I-VII
GFOA certificate of achievement VIII
Organizational chart IX
FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
1
Combined balance sheet - all fund types and
account groups 3 - 6
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
7-8
9-10
Combined statement of revenues, expenses and
changes in retained earnings - all
proprietary fund types 11
Combined statement of cash flows - all
proprietary fund types 12 - 13
Notes to financial statements 14 - 30
Supplemental Statements and Schedules
Special revenue funds
Combining balance sheet
33
Combining statement of revenues, expen-
ditures and changes in fund balances 34
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1994
TABLE OF CONTENTS - Continued
Supplemental Statements and Schedules - continued
Capital projects funds
Combining balance sheet
Combining statement of revenues, expen-
ditures and changes in fund balances
Enterprise funds
Combining balance sheet
Combining statement of revenues, expenses
and changes in retained earnings
Combining statement of cash flows
Water and sewer fund --comparative balance
sheets
Water and sewer fund --comparative state-
ments of revenues, expenses, and
changes in retained earnings
Water and sewer fund --comparative
schedules of operating expenses
Water and sewer fund --comparative
statements of cash flows
Water and sewer fund --aggregating
schedule of balance sheet accounts
Water and sewer fund --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Drainage utility funds --aggregating
schedule of balance sheet accounts
Paoe(s)
36-37
38-39
41 - 42
43
44 - 45
46-47
48
49 - 50
51
52 - 55
56 - 57
58
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1994
TABLE OF CONTENTS - Continued
Supplemental Statements and Schedules - continued Paaes(s)
Drainage utility funds --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Internal service funds
59
Combining balance sheet 61
Combining statement of revenues,
expenses and changes in retained
earnings
Combining statement of cash flows
Deferred compensation aaencv fund
Statement of changes in assets and liabilities
General fixed assets account arouo
Comparative schedule of general fixed
assets - by source
Schedule of general fixed assets by
function and activity
Schedule of changes in general fixed
assets by function and activity
STATISTICAL SECTION (Unaudited)
General governmental expenditures
by function
General governmental revenues by source
Property tax levies and collections
62
63
65
67
68
69
Table Page(s)
1 70
2 71
3 72
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1994
TABLE OF CONTENTS - Continued
STATISTICAL SECTION (UNAUDITED) - continued Table Paae(s)
Assessed and estimated actual value of
taxable property 4 73 - 74
Property tax rates - all overlapping
governments (per $100 of assessed value) 5 75
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 76
Computation of direct and overlapping debt 7 77
Ratio of annual debt service expenditures for
net obligation bonded debt to total
general expenditures 8 78
Revenue bond coverage - Water and Sewer Bonds 9 79
Revenue bond coverage - Drainage Utility Bonds 10 80
Demographic statistics 11 81
Principal taxpayers 12 82
TMRS defined contribution plan - analysis
of funding progress 13 83
Property value, construction and bank
deposits 14 84
Computation of legal debt margin 15 85
Miscellaneous statistics 16 86 - 87
INTRODUCTORY SECTION
THE CITY OF
January 18, 1995
Honorable Mayor & City Council,
City Manager, &
Citizens of Euless:
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, 1994.
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 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
traffic control. Internal services of the City include Insurance, Risk Management, Equipment Replacement,
and Cash/Debt Management.
All fiends 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 financial accountability, or control over the school district or the other entities referred to in
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/267-4403 • FAX 817/685-1416
I
January 18, 1995
Page 2
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. The Euless Development Corporation,
established in Fiscal Year 93, is reported in the Special Revenue series.
ECONOMIC CONDITIONS AND OUTLOOK
As our City Manager stated in his 1994 reflections in his report entitled Share The Vision:
"The slogan, 'the future is now,' stands strong in Euless. Individual and departmental
successes have improved city services and enhanced growth in our community. Progress in
Euless is not only apparent through the increase in homes and residents to the City, but
significant economic development. Local eateries are cropping up throughout the City and
gaining great reputations with all of us. The Euless Town Centre has been revamped and
will soon have several major discount stores at arm's length. Softball World was home to
the 1994 USSSA Mixed World Championships and provides family entertainment
throughout the year. The reputation of Arbor Daze continues to thrive, gaining national
recognition. The reputation of the City stands strong and employees are recognized for their
friendliness and helpfulness."
A proposed 94-acre premium regional mall could become a reality in Euless soon, as developers and city
officials work together to bring this development to the area. The upscale mall is planned for the northwest
quadrant of the State Highway 183 and Texas 360 interchange, just southwest of Dallas -Fort Worth
International Airport.
In 1994 Euless welcomed numerous new businesses to our community including: Ramada Inn, Westpark
Professional Building, Westpark Nursing Center, Aerobotics, Luxury Linens, American Indian Center,
Milano's Italian Restaurant, Escondido Restaurant, T J Lambrecht Construction, Taco Bell, and Euless
Wok, Also, approximately 150 certificates of occupancy were issued for new and expanding businesses in
Euless during 1994,
Enhanced growth opportunities in the Euless area are 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 1994 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
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.
II
January 18, 1995
Page 3
Progress Report. Fiscally, the year 1994 has proven successful. City Council members were able to
maintain the current rates for water and sewer services while decreasing the tax rate to .618617 per $100
valuation. In addition to a merit -based raise package, there will not be any increases in the City's or the
employees' costs for the provision of health care. These benefits were made possible through the low rate
of claims filed by employees, a positive safety record, and staff reductions enabled through attrition. Four
full-time positions were not refilled this year, rather the duties of these positions were absorbed by their
respective departments.
Individual and departmental successes have improved city services and enhanced growth in our community.
Among the many accomplishments during 1994, the Police Department implemented a community policing
initiative; the Fire Department was one of 23 departments in the United States to be awarded the Life
Safety Achievement Award; the Engineering Department is completing the Sulphur Branch Drainage
Project and several other major projects; the Recycling Program will be restructured for further success in
apartments; implemented Court of Record and designed a Teen Court with the City of Bedford; Parks
Department received an award for "Best Arbor Daze Event in America"; computerization and cost savings
in the water and sewer fund.
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 $13,534,012 in 1994, an increase of 8.55 percent over 1993. 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 amount of revenue from various sources
and the changes from the previous year are reflected in the following table:
III
January 18, 1995
Page 4
Revenue Source
Property tax
Gross receipts tax
General sales tax
Fines and fees
Licenses and permits
Interest income
Intergovernmental/Other
TOTAL REVENUES
Amount
$6,077,254
1,911,389
2,859,142
1,592,194
364,617
224,939
504.477
Percent
% of Total
44.9
14.12
21.13
11.77
2.69
1.66
3.73.
Increase Percent of
(decrease) increase
from 1993 (decrease)
$212,897 3.63
214,465 12.64
145,680 5.37
238,998 17.66
51,957 16.62
49,496 28.21
152.930 43.5
$13,534,012 100.00% 51,066,423
In addition to the above general revenue, $534,147 was transferred from various funds, primarily Enterprise
funds for general and administrative cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled $13,478,710, an increase
of 7.33% over 1993. Changes in levels of expenditures for major functions of the City over the preceding
year are shown in the following table:
Function
General government
Public safety
Streets
Parks/Rec./Library
Debt Service
Nondepartmental
TOTAL REVENUES
Percent Increase
% of (decrease)
Amount Total from 1993
$2,160,916 16.03 $105,924
6,595,803 48.94 626,988
526,136 3.9 38,377
1,514,311 11.23 116,711
1,640,120 12.17 (43,551)
1,041,424 7.73 75,604
$13,478,710 100.00% $920,053
Percent of
increase
(decrease)
5.15
10.5
7.87
8.35
(2.59)
7.83
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 increase in Streets is primarily due to increased personnel and materials
cost associated with street maintenance overlay program. 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 FY94.
IV
January 18, 1995
Page 5
Revenues
Interest
1.7%
Gross Rec.
14.1%
Intergov/Other
3.7%
Sales Tax
21.1% T Fines/Fees
Licen/Permt 11.8%
2.7%
Property Tax
44.9%
Public Safety
48.9%
Expenditures
Gen. Gov.
16.0%
Nondept.
7.7%
Debt Service
Streets 12.2%
3.9%
Park/Rec/Lib
11.2%
Enterprise Funds. While the number of water and sewer customers was relatively constant with prior
years, the City's water and sewer utility showed a decrease in water revenues as a result of excessive rainfall
during the year. Comparative data for the past two fiscal years are presented in the following table.
1994 1993
Income before operating transfers $ 887,832 $1,194,057
Net revenue available for debt service $1,918,803 $2,223,960
Debt service requirements $ 524,875 $ 490,808
Coverage 3.66 times 4.53 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 FY94,
$342,835 of revenue was generated and $108,074 of the costs were incurred. Capital improvements were
initiated in FY92 relating to the Drainage Utility System and continue through FY94.
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 $472,679 was
generated, while class expenses were $426,986. Both are consistent with prior year activity and a small
reserve remains. Euless' Arbor Daze is funded in this account.
Debt Administration. General obligation debt, which is directly tax supported, totaled $10,699,029 at
September 30, 1994. 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 - $10,561,586; ratio
of net bonded debt to assessed value -0.96 and net bonded debt per capita - $267. Tables 8-12 in the
Statistical Section of this report present more detailed information about the debt position of the City.
v
January 18, 1995
Page 6
Sales Tax Revenue Bonds, secured by the January 1993 referendum for half cent sales tax for parks, library
and economic development were issued in 1994 for a total of $8,855,000.
Revenue bonds, which are secured by the net revenues of the Water and Sewer Enterprise Fund, totaled
$5,670,000 at September 30, 1994.
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.
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 $688,661. Interest is an
important non -tax revenue for the City. As of September 30, for every $1.00 the City had to invest,
approximately $1.02 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, 1994, the general fixed assets of the City amounted to $11,661,850. 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, 1993. 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.
VI
January 18, 1995
Page 7
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.
Acknowledgments. 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, especially those in the Accounting Office, who assisted and
contributed to its preparation. I would also like to 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.
Acknowledgment is also given to the representatives of Weaver and Tidwell for their invaluable assistance
in producing this document.
Respectfully submitted,
lk--)>A4
Debra B. Forte'
Director of Fiscal & Human Resources
BT:94LTR-CC.SAM
V I I
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o
The Government Finance Officers
Association of the United States
and Canada (GFOA) awarded a
Certificate of Achievement for
Excellence in Financial Reporting
to City of Euless for its financial
report for the fiscal year ended
September 30, 1993. The
Certificate of Achievement is a
prestigious national award
recognizing conformance with the
highest standards for preparation
of state and local government
financial reports.
In order to be awarded a
Certificate of Achievement, a
government unit must publish an
easily readable and efficiently
organized financial report, whose
contents conform to program
standards. Such CAFR must satisfy
both generally accepted
accounting principles and
applicable legal requirements.
A Certificate of Achievement is
valid for a period of one year only.
The City of Euless has received a
Certificate of Achievement for the
last 18 consecutive years (fiscal
years ended 1975-1993). We
believe our current report
continues to conform to the
Certificate of Achievement
program requirements, and we are
submitting it to GFOA.
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, 1993
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
Yit
Executive Director
VIII
(
BOB
McFARLAND
City
Attorney
f
7
GARY
M cKAM I E
Police Chief
Patrol
Crim. Invest.
Civil Defense
Jai l
Records
Communications
SUSAN
CRIM
City
Secretary
/
Data Processing
GIS
TOM COX
Dir of Admin
Srvc & Eco
Development
Econ. Dev.
Fleet Srvcs.
Facilities
Telecomm.
Special Projects
i
Information
Services
RANDY
BYERS
Dir of Public
Works &
Development
Streets
Drainage
Water/Waste Water
Str. Sweeping
Code Enf.
Environ. Hlth.
Animal Control
Planning
Building Insp.
1
Citizens
Mayor
an d
Council
TOM HART
City
Manager
1
/ \
JOE HENNIG
Assistant
City
Manager
RICK
HEROLD
Dir of
Community
Services
Parks
Leisure Srvcs.
Library
Beautification
Green House
Boards
and
Commissions
MODESTO
MUNDO
Assistant to
City Manager
/ PAUL
KRUCKEMEYER
City Engineer
Engineering
Construction
Inspection
Development
Review
CIP Management
Traffic Safety
Safety Programs
sc/3 7l.2 9 Al'
City Manager
l \
GEORGE
BORING
City Judge
Mgmt. Srvcs.
Public Info.
Agenda
Franchises
Recycling
DEBRA
FORTE'
Dir of Fiscal
& Human
R esources
Date
Municipal
Court of
Record
\ 7-
LEE KOONTZ
Accounting
Utility Billing
Budget
Mun. Court
Personnel
Health/Benefits
Cash/Debt Mngmt.
Purchasing
Risk Management
Fire Chief
1�
Suppression
Ambulance
Fire Education
Fire Prevention
Fire Marshal
Recycle ... Save a tree!
Printed on recycled paper.
FINANCIAL SECTION
WEAVER AND TIDWELL
AFFILIATIONS
SUMMIT INTERNATIONAL
ASSOCIATES, INC.
ASSOCIATED REGIONAL
ACCOUNTING FIRMS
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
1500 COMMERCE BUILDING
307 WESTSEVENTHSTREET
FORT WORTH, TEXAS 76102-5194
(817) 332-7905
FACSIMILE (817) 429-5936
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
INDEPENDENT AUDITOR'S REPORT
DALLAS OFFICE
THREE FOREST PLAZA, I9TH FLOOR
12221 MERIT DRIVE
DALLAS, TEXAS 75251
(214) 490-1970
We have audited the accompanying general purpose financial statements of the City of Euless,
Texas as of and for the year ended September 30, 1994, 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, 1994, and the
results of its operations and cash flows of its proprietary fund types 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.
(,c9 44 4.44
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
November 18, 1994
2473
♦rer'1e �.♦ ••
EtV2SS
COMBINED FINANCIAL STATEMENTS - OVERVIEW
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
ASSETS AND OTHER DEBITS
Cash and cash equivalents --Note 2
Short-term investments --Note 2
Receivables:
Property taxes
Accounts receivable and unbilled revenue
Accrued interest
Due from other funds --Note 8
Due from other governments
Prepaids and deposits
Inventories, at cost
Restricted assets --Note 2 and 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 Tong -term debt
Total assets and other debits
General
Fund
$ 140,325
3,572,480
253,663
200,104
44,710
31,303
17,053
14,327
Governmental Fund Types
Special Debt
Revenue
Fund
$ 142,630
10,399,419
2,310
16,435
Service
Fund
$ 1,774
239,669
101,369
1,097
812
Capital
Projects
Fund
$ 285,263
1,479,110
4,656
23,916
$4,273,965 $10,560,794 $344,721 11,792,945
The Notes to the Financial Statements are an integral part of this statement.
3
Enterprise
Funds
$ 168,507
5,360,533
1,414,602
71,748
318,601
11,250
1,639
3,106,429
Proprietary
Fund Tvoes
Internal
Service
Funds
$ 337,595
823,976
20,258,001 831,413
151,650
Fiduciary
Fund Tvoe
Deferred
Compensation
Agency Fund
S
2,428,950
Account Groups
General
Fixed
Assets
$
11,661,850
General
Long-term
Debt
$
1,093,208
18,888,136
(1 of 2)
Totals
(Memorandum Onlvl
1994 1993
$ 1,076,094 $ 1,813,690
24,304,137 13,063,563
355,032 239,370
1,617,016 1,720,816
138,646 83,483
350,716 466,603
35,166 26,483
18,692 20,671
14,327 16,367
3,106,429 2,650,599
11,661,850 11,298,917
21,089,414 20,038,322
151,650 165,382
1,093,208 325,120
18,888,136 11,943,344
$004362,960 $1,992 984 $2,428.950 $11.661,850 $19,981,344 $83,900,513 $63,872,730
4
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
LIABILITIES, FUND EQUITY
AND OTHER CREDITS
Liabilities:
Overdrafts payable
Accounts payable
Accrued insurance claims
Accrued salaries and wages
Restricted customer and escrow deposits
Accrued interest
Due to other funds --Note 8
Bonds and certificates of obligation
payable --Notes 3 and 4
Capital leases payable --Notes 3 and 14
Deferred revenue
Compensated absences --Note 3
Deferred compensation benefits payable --Note 12
Due to other governments
Total liabilities
General
Fund
Governmental Fund Tvoes
Special Debt
Revenue Service
Fund Fund
$ 103,983 $
376,119
338,895
288,111
209,655
3.201
1,319,964
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
Risk Mnagement
Emergency
Recycling
Unreserved
Fund balances:
Reserved for:
Debt service
Park improvements 1,094
Drug enforcement
Recycling 4,909
Development agreements
Prepaids 17,053
Betterment 50,912
Unreserved:
Designated for:
Contingency 510,000
Emergency 500,000
Undesignated 1.870.033
Total fund equity and other credits 2.954.001
Total liabilities, fund equity and other credits 1.1273 965
$
73,087
60,801
73,087 60,801
809,288 283,920
205,367
Capital
Projects
Fund
$
12,089
23,916
36,005
1,356,219
9 473 052 400,721
10,487,707 283.920 1.756.940
$10,560,794 $344,721 11,792,945
The Notes to the Financial Statements are an integral part of this statement.
5
Enterprise
Funds
Proprietary
Fund Tvoes
Internal
Service
Funds
$ 1,816,172 $
533,204 39,816
70,000
89,658
769,605
65,686
62,605
5,670,000
Fiduciary
Fund Tvoe
Deferred
Compensation
Aaencv Fund
$
96,073
9,040,398 172,421 2,428,950
8,856,669
1,048,936
2,428,950
41,000
200,000
200,000
500,000
6,898
11,410,059 1,379,563
21,822,562 1,820.563
$
Account Groups
General
Fixed
Assets
11,661,850
11,661,850
General
Long-term
Debt
$
19,416,586
137,443
427,315
19,981,344
$30,862.,960 $1,992,984 $24a_3,95D $11,661,850 $19,981,344
(2 of 2)
Totals
(Memorandum Onlv!_
1994
$ 1,920,155
1,022,226
70,000
428,553
781,694
65,686
350,716
25,086,586
137,443
390,445
427,315
2,428,950
3.201
33,112,970
11,661,850
8,856,669
1,048,936
41,000
200,000
200,000
500,000
6,898
12,789,622
1,093,208
1,094
205,367
4,909
1,356,219
17,053
50,912
510,000
500,000
11 743,806
50.787.543
$83,900,513
1993
$ 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
1_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
1,000,000
2,168,363
38,417,506
$63,872,730
6
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
Special
General Revenue
Fund Fund
Revenues:
General property tax $ 4,500,412 $
Gross receipts tax 1,911,389 485,832
General sales tax 2,859,142 1,429,572
Fines and fees 1,592,194
Licenses and permits 364,617
Interest income 206,169 36,838
Intergovernmental 227,464
Other revenues 274t03_ 31.258
Total revenues 11,935,900 1,983,500
Expenditures:
Current:
City council/administrative 309,325
Finance 793,537
Police department 4,070,717
Fire department 2,525,086
Administrative services 475,201
Planning and development 582,853 422,590
Parks/recreation/library 1,514,311
Street maintenance 526,136
Betterment 18,798
Nondepartmental 1,022,626
Debt service:
Principal 406
Interest and fiscal charges 402
Capital outlay and maintenance 95 481
Total expenditures 11.839.398 518,077,
Excess (deficiency) of revenues over expenditures 96,502 1,465,423
Other financing sources (uses)
Net proceeds from issuance of certificates of obligation
Net proceeds from issuance of sales tax revenue bonds
Payment to Refunding Escrow
Operating transfers in 537,180
Operating transfers out ( 3,033)
Capital leases 8Q,_Q34
Total other financing sources (uses) 614.181
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses
Fund balances, beginning of year
Fund balances, end of year
710,683
2.243,318
$ 2,954.001
The Notes to the Financial Statements are an integral part of this statement.
8,855,195
8.855.195
10,320,618
167.089,
$ 10,48J 707
7
Debt Capital Totals
Service Projects (Memorandum Only)
Fund Fund 1994 1993
S1,576,842 S S 6,077,254 $ 5,864,357
2,397,221 2,049,639
4,288,714 2,713,462
1,592,194 1,353,196
364,617 312,660
18,770 38,517 300,294 210,358
227,464 60,322
2,500 184,753 493,024 364,200
1,598,1 12 223,270 15,740,782 12,928,194
1,085,000
554,312
1,639,312
236.375
236.375
( 41,200) ( 13,105)
309,325 345,736
793,537 676,426
4,070,717 3,571,026
2,525,086 2,397,789
475,201 479,011
1,005,443 713,410
1,514,311 1,397,600
526,136 487,759
18,798 10,275
1,022,626 955,545
1,085,406 855,000
554,714 828,671
331,862 1.042,766
14, 233,162 13.761.014
1,507,620 ( 832,820)
6,635,466
8,855,195
( 6,635,466)
101,553 638,733 627,239
( 98,520) ( 101,553) ( 105,000)
80,034
3,033 9,472,409 522,239
( 41,200) ( 10,072) 10,980,029 ( 310,581)
325.120 1,767,012 4,502,539 4,813,120
$ 283.920 $1,756,940 S 15,482,568 $ 4.502.539,
8
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 1994
General property tax:
Current and delinquent
taxes
Penalty and interest
Gross receipts tax:
Southwestern Bell Telephone
Company
Texas Utilities Electric
Company
Lone Star Gas Company
Cable TV
City Garbage Service
Others
General sales tax
Fines and fees:
Franchise fees
Municipal Court fines
Dog licenses and pound
fees
Ambulance fees
Licenses and permits:
Building permits
Miscellaneous permits
Electric licenses
Interest income
Intergovernmental
Other revenues:
Library receipts
Rental income
Texas Court cost service
fees
Jail income
Swimming pools
Miscellaneous income
Total revenues
Actual
General Fund
(1 of 2)
Special Reven4ue Funds
Variance Variance
Favorable Favorable
Budget (Unfavorable) Actual Budget (Unfavorable),
$ 4,466,114 $ 4,385,441 $ 80,673 $
34,298 30.000 4,298
4,500,412 4,415,441 84,971
304,725 304,725
1,182,324 1,182,324
134,880 135,000
151,492 156,000
78,204 68,000
59,764 57,350
1,91 1,389 1,903,399
2,859,142 2,800,000
459,793 441,337
954,147 873,500
8,691 9,000
169.563 160, 000
1,592,194 1,483,837
160,722 140,000
174,112 168,500
29,783 28,000
364,617 336,500
206,169 220,000
227,464 250,188
13,493 15,000
23,374 17,400
27,306 24,000
61,526 65,000
18,605 19,000
130,209 78.283
274,513 218,683
11,935,900 11.628.048
120)
4,508)
10,204
2.414
7,990
59,142
18,456
80,647
309)
9.563
108,357
20,722
5,612
1.783
28,117
13,831)
22,724)
1,507)
5,974
3,306
3,474)
395)
51,926
55,830
307,852
$ $
485,832 412.000 73.832
485,832 412,000 73,832
1,429,572 1,400,000 29,572
36,838
16,000 20,838
31.258 2,000 29,258
31,258 2,000 29 258
1,983.500 1,830,000 153,500
9
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 1994
Expenditures:
Current:
City council/administration
Finance
Police department
Fire department
Administrative services
Street maintenance
Planning and development
Parks/recreation/library
Betterment
Nondepartmental
Debt Service
Principal payments
Interest payments
Capital Outlay and maintenance
Actual
$ 309,325
793,537
4,070,717
2,525,086
475,201
526,136
582,853
1,514,311
18,798
1,022,626
406
402
General Fund
Budget
$ 371,644
846,327
4,014,296
2,535,159
483,931
561,646
646,383
1,544,082
26,000
1,272,745
Variance
Favorable
(Unfavorable)
(2 of 2)
Special Revenue Funds
Variance
Favorable
Actual Budget (Unfavorable)
$ 62,319 $ S $
52,790
( 56,421)
10,073
8,730
35,510
63,530 422,590 251,793 ( 170,797)
29,771
7,202
250,119
( 406)
( 402)
95,487 108,598 13.111
Total expenditures 360.391 ( 157,686)
Excess (deficiency) of
revenues over expenditures 96,502 ( 674,165) 770,667 1,465,423 1,469,609 ( 4,186)
11,839.398 12,302.213 462,815 518.077
Other financing sources (uses):
Operating transfers in 537,180
Operating transfers out (3,033)
Net proceeds from issuance
of sales tax revenue bonds
Capital leases 80,034
Total other financing
sources 614,181
Excess of revenues and
other financing sources
over expenditures
Fund balance, beginning of year
Fund balance, end of year
710,683
803,846 ( 266,666)
( 3,033)
8,855,195 8,000,000 855,195
803,846 ( 189,665) 8,855.195 8,000,000 855,195
129,681
80.034
581,002
10,320,618 9,469,609 851,009
2.243.318 2,243,318 167.089 167.089
S2,954,001 $ 2,372.999 $ 581,002 $10,487,707 $9.636.698 $ 851.009
The Notes to the 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, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
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
Enterprise
Funds
$ 5,448,097
3,045,524
342,835
472,679
513,582
9,822,717
492,129
2,981,299
308,762
189,859
1,296,503
1,578,317
513,119
98,796
426,986
861,642
13,732
8,761,144
Operating income 1,061,573
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of equipment
Interest on bonds
Rental income
Total nonoperating revenues, net
296,665
( 329,235)
35,000
2,430
Income before operating transfers 1,064,003
Operating transfers in
Operating transfers out ( 486,893)
Net income 577,110
Add depreciation on fixed assets acquired
with contributed capital --Note 9 430,870
Increase in retained earnings
Retained earnings, beginning of year
Retained earnings, end of year
Internal
Service
Funds
$
1,794,566
257,736
2,052,302
421,385
1,236,953
176,703
1,835.041
217,261
73,304
4,925
78,229
295,490
50,000
( 100.286)
245,204
1,007,980 245,204
11,957.913 1,575,359
$12,965,893 $1,820,563
The Notes to the Financial Statements are an integral part of this statement.
Totals
(Memorandum Only)
1994
$ 5,448,097
3,045,524
342,835
472,679
1,794,566
771,318
11,875,019
913,514
2,981,299
308,762
189,859
1,296,503
1,578,317
513,119
98,796
426,986
1,236,953
1,038,345
13.732
10.596.185
1993
$ 5,874,020
3,106,810
313,334
365,921
1,714,235
683,035
12,057,355
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
1,278,834 1,744,365
369,969
4,925
329,235)
35,000
80,659
1,359,493
50,000
587,179)
822,314
430,870
1,253,184
13,533,272
$ 14,786,456
293,996
3,839)
328,360)
38,203)
1,706,162
103,090
625,329)
1,183,923
424,727
1,608,650
11,924,622
$ 13,533,272
11
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization expenses
(Increase) decrease due to net changes in:
Accounts Receivable and unbilled revenue
Due from other funds
Prepaids and deposits
Due from other governments
Increase (decrease) due to net change in:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Deferred revenue
Intergovernmental payable
Total adjustments
Enterprise
Funds
$1,061,573
875,374
144,271
100,000
( 149)
( 11,250)
31,295
346,951
( 17,674)
86,351
7,800)
Internal
Service
Funds
(1 of 2)
Totals
(Memorandum Only)
1994 1993
$217,261 $ 1,278,834 $ 1,789,359
176,703 1,052,077
144,271
100,000
( 149)
( 11,250)
31,295 (
38,776 385,727
( 17,674)
86,351
( 7,800)
1.547.369 215.479 1.762.848
Net cash provided by operating activities 2,608,942
432,740 3,041,682
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds ( 332,905)
Reduction in bonds payable ( 350,000)
Operating transfers in 50,000
Operating transfers out ( 486.893) ( 100.286)
Net cash used in noncapital
financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction
Purchase of utility plant and equipment
in service
Proceeds from sale of utility plant in
service
1,024,868
424,431)
100,000
428,336
2,985
389,268)
64,537
40,625
74,903
7,800)
13.055)
901.700
2,691,059
332,905) ( 341,173)
350,000) ( 330,000)
50,000 103,090
587.179) ( 625.329)
( 1,169,798) ( 50,286) ( 1,220,084) ( 1,193,412)
204,761
( 1,827,229)
204,761
113,199
( 270,836) ( 2,098,065) ( 2,097,610)
4.925
4.925
49.425
Net cash used in capital and related
financing activities ( 1,622,468) ( 265,911) ( 1,888,379) ( 1,934,986)
12
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
(2 of 2)
Internal Totals
Enterprise Service (Memorandum Only)
Funds Funds 1994 1993
INVESTING ACTIVITIES
Purchase of investment securities ($1,556,483) $ ($1,556,483) ($2,099,856)
Proceeds from sale or maturity of
investment securities 1,340,525 1,340,525 1,366,401
Interest received on investments 268,559 73,304 341,863 326,090
Rental payments received 35.000
Net cash provided by (used in) investing
activities 87,601 73,304 160.905 ( 407.365)
Net increase (decrease) in cash
and cash equivalents ( 95,723) 189,847 94,124 ( 844,704)
Cash and cash equivalents, beginning of year 1,135,041 971,724 2,106,765 2,951,469
Cash and cash equivalents, end of year $1 039.318 $1.161 571 $2 200,889 $2,106,705
Reconciliation of cash to balance sheet
Cash - current $ 132,602 $1,161,571
Cash - restricted assets 906.716
Cash and cash equivalents $1,039,318 $1,161,571
Restricted assets:
Cash $ 906,716
Investments 2,179,723
Interest receivable 19,990
Total restricted assets $3,106.429
The Notes to the Financial Statements are an integral part of this statement.
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 the primary government organizations,
for which the primary government is financially accountable, and other organizations for which
the nature and significance of their relationship with the primary government are such that
exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
The definition of the reporting entity is based primarily on the notion of financial accountability.
A primary government is financially accountable for the organizations that make up its legal
entity. It is also financially accountable for legally separate organizations if its officials appoint
a voting majority of an organization's governing body and either it is able to impose its will on
that organization or there is a potential for the organization to provide specific financial benefits
to, or to impose specific financial burdens on, the primary government. A primary government
may also be financially accountable for governmental organizations that are fiscally dependent
on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects, or activities of, or the level of services performed or provided
by, the organization. A financial benefit or burden relationship exists if the primary government
(a) is entitled to the organization's resources; (b) if legally obligated or has otherwise assumed
the obligation to finance the deficits of, or provide financial support to, the organization; or (c)
is obligated in some manner for the debt of the organization.
Some organizations are included as component units because of their fiscal dependency on the
primary government. An organization is fiscally dependent on the primary government if it is
unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without
approval by the primary government.
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;
14
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Reporting Entity - continued
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. A blended presentation has been used to report the financial information
of the component unit. The financial statements for the Corporation were obtained from the
Board of Directors.
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."
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 long-
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).
15
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
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 increases (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 is
removed from the combined balance sheet and revenue is recognized. Deferred revenues
primarily include delinquent property taxes and unexpended revenues for capital projects.
16
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 and Special Revenue Funds. Budgetary control is maintained at the
function level.
6. A budget for the General Fund and Special Revenue Funds is legally adopted on a basis
consistent with generally accepted accounting principles. Appropriations and encumbrances
lapse at year-end.
7. Formal budgetary integration is not employed for the Debt Service Funds because effective
budgetary control is alternatively achieved through general obligation bond indenture
provisions.
8. 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.
9. 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
17
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Cash, Cash Equivalents and Investments - continued
investments. Cash equivalents consist of highly liquid investments with original maturities of
three months or less.
For purposes of the combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $906,716 and
$801,276 at September 30, 1994 and 1993, respectively) as set forth above to be cash
equivalents.
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 $.6186 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 Fund. 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.
18
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Fixed Assets - continued
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.
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, 1994, the Service Center Account (reported with the Water and Sewer
Funds) reflected a deficit fund balance of approximately $30,900. The City has a budgeted plan
to reduce cost by $20,000 a year over two years to eliminate the deficit.
Comparative Data
Comparative total data for the prior year have been presented 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 present
financial position, results of operations or cash flows in conformity with generally accepted
19
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Memorandum Totals - continued
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, 1994,the ledger balances of the City's bank deposits totaled ($62,655)and
the bank balances were $535,455. Of the bank balances, $535,455 were protected by federal
depository insurance or by collateral held by the City's agent in the City's name.
Investments
At September 30, 1994, 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:
1
Cateaories
2
3
Carrying Market
Amount Value
U. S. Securities $12,563,286 $11,491,624 $ $24,054,910 $24,261,942
Deferred
Compensation
Agency Fund
Investments
2,428,950 2,428,950
$26,483,860 $26,690,892
20
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS - continued
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 long-term debt transactions for the year ended September 30, 1994, is as follows:
Balance
Beginning
of Year
General Long -Term Debt
Account Group:
General Obligation Bonds $10,226,587 $
Certificates of Obligation 1,420,000
Sales tax revenue bonds
Capital leases
Compensated absences
Proprietary Fund Types:
Water and Sewer
Revenue Bonds
Drainage Utility
Revenue Bonds
Increase
8,855,000
94,445 80,034
527.432
Decrease
$ 930,001
155,000
37,036
100.117
$12.268,464 $8.935.034 $1,222.154
Balance
Beginning
of Year
$ 3,945,000 $
2,075,000
$ 6,020,000 $
Increase
Decrease
$ 325,000
25,000
Balance
End
of Year
$ 9,296,586
1,265,000
8,855,000
137,443
427.315
$19,981.344
Balance
End
of Year
$ 3,620,000
2.050,000
$ 350.000 $ 5,670,000
Debt outstanding at September 30, 1994 consists of the following:
General Obligation Bonds
Certificates of Obligation
Capital leases
Range of Outstanding
Interest Rates Balance
2.80 to 10.00% $9,296,586
5.40 to 7.40% 1,265,000
5.97 to 7.34% 137,443
Current
Maturities
$ 985,000
165,000
60,019
Long -Term
Maturities
$8,311,586
1,100,000
77,424
21
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
Water and Sewer
Revenue Bonds
Drainage Utility
Revenue Bonds
Sales Tax
Revenue Bonds
Range of
Interest Rates
Outstanding
Balance
Current Long -Term
Maturities Maturities
4.50 to 10.75% $ 3,620,000 $ 335,000 $3,285,000
4.75 to 6.70% 2,050,000 25,000 2,025,000
5.20 to 8.10% 8,855,000 8,855,000
The debt matures serially through the year 2015 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.
General
Obligation
Bonds
1995 $ 1,406,140
1996 1,396,540
1997 1,416,890
1998 1,303,987
1999 1,219,060
2000-2004 5,786,393
2005-2009 1,1 17,505
2010-2014
2015
13,646,515
Less interest 4.349.929
Certifi-
cates of
Obligation
$ 241,932
260,127
256,942
248,232
248,812
282,658
1,538,703
273,703
Principal S 9,296,586 $1,265,000
Sales
Tax
Revenue
Bonds
S 616,423
809,288
798,228
791,358
778,273
3,805,775
3,800,195
3,821,000
768,500
15,989,040
7,134.040
Capital
Leases
$ 65,963
31,274
19,711
19,711
19,711
156,370
18,927
$ 8,855,000 $137,443
Water and Utility
Sewer Drainage
Revenue Revenue
Bonds Bonds
$ 521,921 $ 153,370
535,205 152,070
521,480 155,732
527,355 224,082
496,641 223,432
1,879,571 1,131,066
130,625 1,152,522
468.112
4,612,798 3,436,954
992.798 1,386,954
Total
$ 3,005,749
3,184,504
3,168,983
3,1 14,725
2,985,929
12,889,279
6,206,971
4,055,740
768..50
39,380,380
14,156,351
$3.620,000 $2 050,000 $25 224 029
General Obligation Bonds authorized and unissued as of September 30, 1994, amounted to
$300,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1994,
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.
At September 30, 1994 $1,965,000 of the defeased bonds in the 1991 refunding are still
outstanding.
22
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
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, 1994. 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, 1994, the balance in the
property sales proceeds account was $467,226 and is included in restricted assets in the
accompanying balance sheet.
23
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50 year contract dated September 25, 1973, with the Trinity River
Authority of Texas (the "TRA") whereby the TRA agrees to provide supplemental water and
sewage treatment for consideration. Payments by the City are based on metered usage at rates
designed to charge the City a prorata share of the TRA's annual operating and maintenance
expenses, principal and interest requirement on bonds issued by the TRA. Payments under this
contract approximated $3,720,000 in 1994 and are included as operating expenses of the water
and sewer fund. The payments, net of refunds, decreased approximately $70,000 in comparison
to 1993.
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
The following is a summary of changes in the general fixed assets account group during the fiscal
year:
Land
Buildings
Improvements
other than buildings
Machinery and equipment
Balance
September 30,
1993 Additions Deletions
Balance
September 30,
1994
$ 871,250 $ $ $ 871,250
4,927,995 4,927,995
1,591,923
3,907,749
68,999
319,316
$ 11,298.917 $ 388.315
25,382
1 ,660,922
4,201 ,683
$ 25,382 $ 11.661.850
The following is a summary of utility plant and equipment in service at September 30, 1994
included in the proprietary funds:
Land
Equipment
Waterworks and sanitary sewer system
Construction in progress
Less accumulated depreciation
Enterprise Funds
Water and
Sewer Fund
$ 1,528,966 $
1,132,436
26,203,611
570,106
Drainage
Utility Fund
936,279
1,394.320
Internal
Service
Funds
$
1,154,354
29,435,1 19 2,330,599 1 ,154,354
11,504.410 3,307 322,941
$17,930,709 $2.327.292 $ 831,413
24
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
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
Water and sewer General 287,298
Risk Management 31 ,303
Debt service General 812
$350,716
NOTE 9. CONTRIBUTED CAPITAL
During fiscal 1994, contributed capital of the Water and Sewer Enterprise Funds increased by
developer's contributions in aid to construction in the amount of $204,761 and decreased
$430,870 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 1994, the City and City's employees contributed
approximately $798,000 and $355,000 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, 1994 and
are accounted for in the Internal Service Fund.
25
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 10. RISK MANAGEMENT - continued
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 1994, the City contributed approximately $238,846 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 636 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
disclosure 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 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
26
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Contributions - continued
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 1994 was $9,066,344and the City's contributions were based
on a payroll of $8,762,621. Both the City and the covered employees made the required
contributions, amounting to $971,312 (10.81 % of covered payroll for the months in calendar
year 1993, 8.47% normal cost plus 2.34% to amortize the unfunded actuarial liability, and
11.19% for the months in calendar year 1994, 8.64% normal cost plus 2.55% to amortize the
unfunded actuarial liability) for the City and $613,385 (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 1994 by 0.01 % 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
27
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Contributions - continued
December 31, 1993. 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 118.0% of book value as of December 31,
1993.
Pension Benefit Obligation
Annuitants currently receiving benefits
Terminated employees
Current Employees
Accumulated employee contributions
included allocated invested earnings
Employer -financed vested
Employer -financed nonvested
$ 2,014,406
2,289,911
6,598,989
11,567,436
1,734.988
Total $24.205.730
Net Assets Available for Benefits, at Book Value $ 18.545.269
Unfunded Pension Benefit Obligation $ 5.660.461,
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 no effect on the pension benefit obligation.
Trend information for the past three years for TMRS is as follows:
Year
1992
1993
1994
Net Assets Available
For Benefits as a
Percent of Pension
Benefit Obligation
80.23%
80.92%
76.61 %
Unfunded Pension
Benefit Obligation as a
Percent of Covered Payroll
42.47%
46.25%
62.43%
City Contribution
as a Percent of
Covered Payroll
Historical trend information for TMRS is presented in the Statistical Section, Table 13 of the
City's Comprehensive Annual Financial Report. This table provides information about progress
made in accumulating sufficient assets to pay benefits when due.
28
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
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, 1994 was $2,428,950. 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.
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 Classes provides various recreational services and activities.
Segment information for the City's Enterprise Funds is as follows:
Operating revenues
Depreciation
Operating income
Operating transfers out
Net income
Current capital contributions
Property, plant and equipment:
Additions
Deletions
Total Assets
Net working capital
Long-term debt,
including current portion
Total Equity
Water and Drainage
Sewer Fund Utility Fund
$ 9,007,203
858,335
781,119
459,793
428,039
204,761
629,125
27,938,433
4,657,519
3,620,000
21,232,126
$ 342,835
3,307
234,761
15,000
115,478
1,189,476
2,881,869
213,847
2,050,000
553,956
Recreation
Classes
Total
$ 472,679 $ 9,822,717
861,642
45,693 1,061,573
12,100 486,893
33,593 577,110
204,761
1,818,601
42,658 30,862,960
36,480 4,907,846
5,670,000
36,480 21,822,562
29
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 14. CAPITAL LEASES
The City has entered into lease agreements as lessee for financing the acquisition of computer
hardware, software, communications equipment, and a copier. These lease agreements qualify
as capital leases for accounting purposes and, therefore, have been recorded at the present value
of the future minimum lease payments as of the date of their inception. These assets are stated
on the balance sheet at their capitalized cost of $247,412. The following is a schedule of the
future minimum lease payments under these capital leases, and the present value of the net
minimum lease payments at September 30, 1994.
1995
1996
1997
1998
1999
Total minimum lease payments
Less: amount representing interest
$ 65,963
31,274
19,711
19,711
19.711
156,370
18.927
Present value of future minimum lease payments $137,443
30
INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
♦ • e ♦ ♦
E e ,LAS•S
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally
restricted to expenditures for particular purposes.
Hotel/Motel Fund - to account for the operations and expenditures for which
hotel/motel occupancy taxes are used. Occupancy tax revenues are used
primarily for advertising and promotion of the City.
Police Drug Enforcement Fund - to account for proceeds from sale of assets
seized in connection with drug arrests. Revenues are used solely for police
department expenditures.
Half -Penny Sales Tax Fund - to account for the revenues and expenditures of
the Euless Development Corporation, a component unit of the City of Euless.
The expenditures of the half -penny sales tax can only be spent on parks,
library, and economic development activities within the City of Euless.
32
CITY OF EULESS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
ASSETS
Cash and cash equivalents
Short-term investments
Accounts receivable
Accrued interest receivable
Total assets
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable
Due to other funds
Total liabilities
FUND EQUITY:
Fund Balances:
Reserve for debt service
Reserve for drug enforcement
Reserve for capital projects
Unreserved, undesignated
Total fund equity
Hotel/
Motel
Fund
$ 15,204
197,866
2,613
$215,683
Police
Drug
Enforce-
ment
Fund
$ 105,046
100,522
Half
Penny
Sales Tax
Fund
$ 22,380
10,101,031
2,310
13,822
$205.568 51113 43
$ 589 $ 201 $ 72,297
589 201 72,297
215.094
215,094
205,367
205,367
809,288
9.257.958
Totals
1994 1993
$ 142,630
10,399,419
2,310
16.435
S10.560 -94
$ 57,849
130,858
197
$188,2114
$ 73,087 $ 5,116
16 699
73.087 __21.815
809,288
205,367 34,956
( 14,542)
9.473.052 146.678
10.067.246 10.487.707 157.089
Total liabilities and fund equity $215,683 $205.568 $10,139,543 $10,560,794 $18.8,904
33
CITY OF EULESS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
Revenues:
Gross receipts tax
General sales tax
Interest income
Other revenues
Total revenues
Expenditures:
Planning and development
Issuance costs
Parks
Library
Economic development
Capital outlay
and maintenance
Total expenditures
Hotel/
Motel
Fund
Police
Drug Half
Enforce- Penny
ment Sales Tax
Fund Fund
Totals
1994 1993
$185,448 $300,384 $ $ 485,832 $352,715
1,429,572 1,429,572
36,838 36,838
17.833 31.258 4,621.
10.133 3.292
195,581 303,676
112,104 52,836
15.058 80.429
127.162 133.265
1,484,243 1,983,500 357,336
76,491
83,322
39,431
58,406
257.650
Other financing sources:
Net proceeds from issuance
of sales tax revenue bonds 8.855.195
Total other
financing sources 8.855,195
Excess of revenues and
other financing sources
over expenditures
68,419 170,411 10,081 ,788
Fund balance (deficit),
beginning of year 146,675 34,956 ( 14.542)
164,940
76,491
83,322
39,431
58,406
159,591
95.487 _159.503
_518.077 _319.094
_8.855.195
_8.855.195
10,320,618 38,242
1 FL,089 _128,847
Fund balance, end of year $215,094 $205,367 $10,067,246 p10.487,707 $167,089
34
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital
facilities other than those financed by proprietary funds and trust funds.
Park Improvements Certificates of Obligation Fund (1990) - to account for the
construction of park facilities. Financing was provided from the sale of Certificates
of Obligation of $2,000,000 in 1990.
Street Assessments Fund - to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and
drainage projects.
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.
Developers' Contribution Fund - to account for funds received for the purpose of
making new and future improvements to various development areas within the City.
35
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUND
COMBINING BALANCE SHEETS
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
Street
Park Improvement
Improvements and Drainage
Certificates of Street Certificates
Obligation Assessments of Obligation
Fund (19901 Fund Fund (19901
ASSETS
Cash and cash equivalents $ 1,654 $ 83,954 $ 26,306
Short-term investments 295,732
Accrued interest receivable 4,517
Due from other governments 23.916
Total assets $ 25,570 $ 83.954 $ 326,555 -
LIABILITIES AND FUND EQUITY
Overdrafts payable $ $ $
Customer and escrow deposits 11,442
Deferred revenue 23.916
Total liabilities
Fund balances:
Reserved for development
agreements
Unreserved, undesignated
Total fund equity
Total liabilities and fund balance
23,916 11,442
1.654 83.954 315.113
1.654 83.954 315.113
$ 25,570 $ 83L954 $ 326,555
36
Equipment
Contractual
Obligations
Fund (1992)
S
S
S
Fire Department
Certificates of
Obligation
Fund (1990)
S 647
Developers'
Contribution
Fund
$ 172,702
1,183,378
139
1994
1993
$ 285,263 $ 379,170
1,479,1 10 1,428,985
4,656 4,820
23,916 23,916
S 647 $ 1 ,356,219 $ 1,792L945 $ 1 ,836,891
S
647
647
S
S
12,089
23,215
36,005
$ 6,520
39,443
23.916
69,879
1,356,219 1,356,219 1,230,427
400.721 536 585
1,356.219 1,756,940 1,767,012
S S 647 $ 1 ,356,219 $ 1 ,792,945 $ 1 .836,891
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
Revenues:
Interest Income
Intergovernmental
Other revenues
Total revenues
Expenditures:
Capital outlay and maintenance
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Street
Park Improvement
Improvements and Drainage
Certificates of Street Certificates
Obligation Assessments of Obligation
_Fund (19901_ Fund Fund (1990)
$
$ $ 10,954
86.524
86,524 10,954
30,995 195.547
( 30,995) 86,524 ( 184,593)
92,000
( 92,000)
( 92,000) 92,000
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses ( 30,995) ( 5,476) ( 92,593)
Fund balances, beginning of year 32,649 89,430 407,706
Prior Period Adjustment
Fund balances, end of year $ 1.654 $ 83.954 $ 31 5.1 13
38
Equipment
Contractual
Obligations
Fund (1992)
$
Fire Department
Certificates of
Obligation
Fund (1990)
$
Developers'
Contribution
Fund
$ 27,563
98.229
125,792
1994
$ 38,517
184.753
223,270
1993
$ 34,915
5,525
62.829
103,269
9.833 236.375 883.263
( 9,833) 125,792 ( 13,105) ( 779,994)
6,520 3,033
6.520)
6.520 ( 3.487)
6,520 ( 13,320) 125,792
6,520) 13,320 1,230,427 1,767,012
101,553 80,000
( 98,520) ( 105.000)
3.033 ( 25.000)
10,072) ( 804,994)
2,577,783
5.777)
$ 1.356.219 $ 1 ,756,940 $ 1 ,767.012
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises - where the intent of the government's council
is that the costs of providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges; or where the government's council has
decided that periodic determination of net income is appropriate for accountability purposes.
Water and Sewer Fund - 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.
40
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
Water and
ASSETS Sewer Fund
Current assets:
Cash and cash equivalents
Short-term investments
Accounts and unbilled revenue
less allowance for uncollectibles
of $1,463 for water and sewer
and $123,443 for drainage utility
Accrued interest receivable
Prepaids and deposits
Due from other governments
Due from other funds
Total current assets
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
Drainage Recreation
Utility Fund Classes 1994
Totals
$ 68,092 $ 59,411 $ 41,004 $ 168,507
4,984,758 375,775 5,360,533
1,386,347 26,601 1,654
68,519 3,229
1,639
11,250
318,601
6,839,206 465,016 42,658
41,876
618,219
500,000
467,226
95,235
594,278
769,605
19,990
3,106,429
85,373
23,283
62,090
1,528,966
1,132,435
26,203,611
570,106
29,435,118
11,504,410
17,930,708
107,473
17,913
89,560
936,280
1,394,320
2,330,600
3,307
1993
$ 333,765
5,503,314
1,414,602 1,558,873
71,748 35,293
1,639 1,490
11,250
318.CQ1. 418,601
7,346,880 7,851,336
41,876
618,219
500,000
467,226
95,235
594,278
769,605
19 ;,Q
3,106,429
192,846
41.196
151,650
1,528,966
2,068,715
26,203,611
1.964.426
31,765,718
11.507.717
2,327,293 . 20.258.001
$27,938,433 $2,881,869 $ 42,658 $30.862.960
38,418
653,758
500,000
467,226
90,991
200,000
671,867
28 339
2,650,599
192,846
2464
165,382
1,528,966
1,157,463
25,480,688
1.780.000
29,947,117
10, 646.075
19,301.042
$29,968.359
41
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
LIABILITIES AND FUND
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
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
Water and Drainage Recreation
Sewer Fund Utility Fund Classes
$ 1,780,267 $ 35,905 $
311,762 215,264 6,178
89,658
2,181,687 251,169 6,178
769,605
335,000 25,000
38,942 26,744
3,285,000 2,025,000
96,073
6,706,307 2,327,913
Fund equity:
Contributed capital:
From subdividers 14,107,711
From Environmental Protection
Agency 239,617
From Trinity River Authority 15 000
14,362,328
Accumulated depreciation on
assets acquired with
contributed capital
Net contributed capital
Retained earnings:
Reserved for:
Revenue bond retirement
Emergency
Recycling
Total reserved
Unreserved
Total Retained earnings
Total fund equity
5,505,659
8,856,669
Totals
1994 1993
$ 1,816,172 $ 1,748,972
533,204 194,881
89.658 107,332
2,439,034 2,051,185
769,605 683,254
360,000 350,000
65,686 69,356
5,310,000 5,670,000
96,073 103,873
6,178 9,040,398 8,927,668
14,107,711
239,617
15,000
14,362,328
13,902,950
239,617
15.000
14,157,567
5,505,659 5.074.789
8,856,669 9,082,778
1,048,936 1,048,936
500,000 500,000
6,898 6,898
1,555,834 1,555,834
10, 819, 623 553,956 36.480 1 1.410,059
12,375,457 553,956 36 480 12,965,898
21.232.126 553,956 36.480 21.822.562
1,166, 853
500,000
1,666,853
10 291 060,
11.957.913
21.040.691
TOTAL LIABILITIES
AND FUND EQUITY $27L938 433 $2,881,869 $ 42,658 $30,862,960 $29,968,359
42
TWO CIYT III
E
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
Water and Drainage Recreation Totals
Sewer Fund Utility Fund Classes 1994
1993
Operating revenues:
Water service $ 5,448,097 $ $ $ 5,448,097 $ 5,874,020
Sewer service 3,045,524 3,045,524 3,106,810
Drainage fees 342,835 342,835 313,334
Recreation fees 472,679 472,679 365,921
Service fees and miscellaneous 513,582 513,5$2 450,10
Total operating revenues 9,007,203 342,835 472,679 9,822,717 10,110,243
Operating expenses:
General and administrative 492,129 492,129 538,135
Water production 2,981,299 2,981,299 2,970,503
Water distribution 308,762 308,762 287,462
Utility engineering 189,859 189,859 204,730
Sewage collection and treatment 1,296,503 1,296,503 1,369,629
Nondepartmental 1,578,317 1,578,317 1,557,441
Service center 513,119 513,119 463,335
Drainage 98,796 98,796 65,326
Recreation classes 426,986 426,986 367,327
Depreciation 858,335 3,307 861,642 836,334
Amortization 7,761 5,971 13.732 7,761
Total operating expenses 8,226,084 108,074 426,986 8,761.144 8,667,983
Operating income 781,119 234,761 45,693 1,061,573 1,442,260
Nonoperating revenues (expenses):
Investment income 271,588 25,077 296,665 242,114
Rental income 35,000 35,000
Interest on bonds ( 199,875) ( 129,360) ( 329,235) ( 328,360)
Total nonoperating revenues
(expenses), net 106,713 ( 104.283) 2,430 ( 86.246)
Income before operating transfers 887,832 130,478 45,693 1,064,003 1,356,014
Operating transfers in 25,000
Operating transfers out ( 459,793) ( 15.000) ( 12.100) ( 486,893) ( 502.125)
Net income 428,039 115,478 33,593 577,110 878,889
Add depreciation on fixed assets
acquired with contributed capital 430,870 430,870 424,727
Increase in Retained earnings 858,909 115,478 33,593 1,007,980 1,303,616
Retained earnings, beginning of year 11,516,548 438.478 2.887 11.957.913 10.654.297
Retained earnings, end of year $12,375.457 $ 553.956 $ 36 480 $12,965,893 $11,957,913
43
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating
income to net cash provided
by operating activities:
Depreciation and amortization
expenses
(Increase) decrease due to net
changes in:
Accounts Receivable and
unbilled revenue
Due from other funds
Prepaids and deposits
Due from other governments
Increase (decrease) due to net
changes in:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Deferred revenue
Intergovernmental payable
Total adjustments
Net cash provided by operating activities
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Reduction in bonds payable
Operating transfers in
Operating transfers out
Water and Drainage Recreation
Sewer Fund Utility Fund Classes
Totals
1994 1993
$ 781,119 $ 234,761 $ 45,693 $1,061,573 $1,442,260
866,096 9,278
119,009
100,000
149)
11,250)
31,295
145,704
17,674)
86,351
7,800)
1,311.582
2,092,701
26,916 ( 1,654)
875,374 850,066
144,271
100,000
149)
( 11,250)
424,431)
100,000
428,336
31,295 ( 389,268)
204,671 ( 3,424) 346,951 144,580
( 17,674) 40,625
86,351 74,903
( 7,800) ( 7,800)
13,055)
240.865 ( 5.0781 1.547.369 803,956
475,626 40,615 2,608,942 2,246,216
203,285) ( 129,620)
325,000) ( 25,000)
459.7931 ( 15.000) ( 12,100)
332,905) ( 341,173)
350,000) ( 330,000)
25,000
486,893) ( 502,125)
Net cash used in noncapital
financing activities ( 988,078) ( 169,620) ( 12,100) ( 1,169,798) ( 1,148,298)
CAPITAL AND RELATED
FINANCING ACTIVITIES
Contributions in aid to construction
Purchase of utility plant and equipment
in service
Net cash used in capital and related
financing activities
204,761
626.378) ( 1.200.851)
204,761
113,199
( 1,827,229) ( 1,866,961)
( 421,617) ( 1,200,851) ( 1,622,468) ( 1,753,762)
44
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
Water and Drainage Recreation
Sewer Fund Utility Fund Classes
INVESTING ACTIVITIES
Purchase of investment securities ($1,556,483) $ $
Proceeds from sale or maturity of
investment securities
Interest received on investments
Rents received
Net cash provided by (used in)
investing activities ( 626.7241 714.325
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents,
end of year
653,758 686,767
241,001 27,558
35.000
Totals
1994 1993
($1,556,483)
1,340,525
268,559
35.000
87,601
($2,099,856)
1,366,401
319,202
( 414,253)
56,282 ( 180,520) 28,515 ( 95,723) ( 1,070,097)
918.526 204.026 12.489 1.135.041
p 974.808 $ ?3, 506 $ 41.004 $1.039.318
2,205.138
$1.135,941
45
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
1994 1993
ASSETS
Current assets:
Cash and cash equivalents $ 68,092 $ 117,250
Short-term investments 4,984,758 4,440,772
Accounts receivable and unbilled revenue
less allowance for estimated uncollectible
accounts of $ 1,463 in 1994 and 1993 1,386,347 1,505,356
Accrued interest receivable 68,519 29,583
Prepaids and deposits 1,639 1,490
Due from other governments 11,250
Due from other funds 318,601 41 8.601
Total current assets 6,839,206 6,513,052
Restricted assets:
Revenue bond debt service:
Cash with paying agent 41,876 38,418
Revenue bond retirement:
Investments with paying agent, at cost 618,219 653,758
Revenue bond emergency:
Short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent, at cost 467,226 467,226
Capital projects account:
Cash and cash equivalents 95,235 90,991
Short-term investment 594,278 200,000
Customer deposits:
Cash and cash equivalents 769,605 671,867
Interest receivable on investments 19.990 28.339
Total restricted assets 3,106,429 2,650,599
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
85,373 85,373
23.283 15.522
62,090 69,851
Utility plant and equipment in service, at cost:
Land 1,528,966 1,528,966
Equipment 1,132,435 1,067,856
Waterworks and sanitary sewer system 26,203,611 25,480,688
Construction in progress 570.106 728,484
29,435,118 28,805,994
Less accumulated depreciation 11.504.410 10,646,075,
Net utility plant and equipment in service 17,930,708 18,159,919
TOTAL ASSETS p27,938,433 $27,393,421
46
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Total current liabilities
1994 1993
$ 1,780,267
311,762
89,658
2,181,687
$ 1,748,972
163,312
107.332
2,019,616
Current obligations payable
from restricted assets:
Customer and escrow deposits 769,605 683,254
Current portion of bonds payable 335,000 325,000
Accrued interest 38,942 42,352
Bonds payable 3,285,000 3,620,000
Deferred revenue 96.073 103.873,
Total liabilities 6,706,307 6,794,095
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
14,107,711 13,902,950
239,617 239,617
15.000 15.000
14,362,328 14,157,567
5.505.659 5.074.789
8,856,669 9,082,778
Retained earnings:
Reserved for:
Revenue bond retirement 1,048,936 1,166,853
Emergency 500,000 500,000
Recycling 6,898
Total reserved 1,555,834 1,666,853
Unreserved 10,819,623 9,849,695
Total Retained earnings 12.375.457 11,516,548
Total fund equity 21.232,126 20.599,326
TOTAL LIABILITIES AND FUND EQUITY $27,938,433 $27,393,421
47
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
1994 1993
Operating revenues:
Water service $ 5,448,097 $ 5,874,020
Sewer service 3,045,524 3,106,810
Service fees and miscellaneous 513.582 450.158
Total operating revenues 9,007,203 9,430,988
Operating expenses:
General and administrative 492,129 538,135
Water production 2,981,299 2,970,503
Water distribution 308,762 287,462
Utility engineering 189,859 204,730
Sewage collection and treatment 1,296,503 1,369,629
Nondepartmental 1,578,317 1,557,441
Service center 513,119 463,335
Depreciation 858,335 836,334
Amortization 7.761 7,761
Total operating expenses 8,226,084 8.235,330
Operating income 781,119 1,195,658
Nonoperating revenues (expenses)
Investment income 271,588 184,207
Interest on bonds ( 199,875) ( 185,808)
Rental income 35.000
Total nonoperating revenues
(expenses), net 106,713 ( 1,601)
Income before operating transfers 887,832 1,194,057
Operating transfers in 25,000
Operating transfers out ( 459.793) ( 475,025)
Net income 428,039 744,032
Add depreciation on fixed assets acquired
with contributed capital 430.870 424,727
Increase in Retained earnings 858,909 1,168,759
Retained earnings, beginning of year 11,516,548 10.347.789
Retained earnings, end of year $12,375,457 $11.516,54R
48
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
(1 of 2)
1994 1993
General and administrative:
Salaries and benefits $ 356,024 $ 348,195
Postage and supplies 48,309 57,562
Maintenance of office machinery 29,203 40,631
Bad debts 15,380 15,242
Other 43.213 76, 505
492,129 538,135
Water production:
Salaries and benefits 274,313 249,528
Operating supplies and expense 33,058 36,867
Maintenance of structures and equipment 16,827 37,286
Water - Trinity River Authority 2,657,101 2,646, 822
2,981,299 2,970,503
Water distribution:
Salaries and benefits 219,646 192,992
Operating supplies and expenses 15,670 16,955
Maintenance of structures and equipment 42,289 45,058
Water - Trinity River Authority 31,157 32,457
308,762 287,462
Utility engineering:
Salaries and benefits 155,121 160,763
Operating supplies and expense 17,148 29,114
Maintenance of structures and equipment 14,559 11,427
Contractual services 3 031 3,426
189,859 204,730
Sewage collection and treatment:
Salaries and benefits 191,850 180,725
Operating supplies and expense 25,682 21,833
Maintenance of structures and equipment 16,638 21,192
Treatment fees - Trinity River Authority 1.062.333 1 145 879
1,296,503 1,369,629
Nondepartmental:
Salaries and benefits 685,764 402,117
Operating supplies and expenses 43,274 31,834
Contractual services 689,486 648,465
Franchise fees 459.793 475.025
1,878,317 1,557,441
49
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
(2 of 2)
1994 1993
Service center:
Salaries and benefits $ 174,361 5 158,523
Motor fuel and supplies 256,752 240,029
Maintenance of structures and equipment 73,179 48,031
Other 8,827 16,752
513,119 463,335
Depreciation and amortization 866,096 844,095
Total operating expenses $8.226.084 58235,330
50
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
1994 1993
OPERATING ACTIVITIES
Operating income $ 781,119 $1,195,658
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization expenses 866,096 844,095
(Increase) decrease due to net changes in:
Accounts Receivable and unbilled revenue 119,009 ( 435,911)
Due from other funds 100,000 100,000
Prepaids and deposits ( 149) 428,336
Due from other governments ( 11,250)
Increase (decrease) due to net changes in:
Overdrafts payable 31,295 ( 389,268)
Accounts payable 145,704 118,363
Accrued salaries and wages ( 17,674) 40,625
Customer and escrow deposits 86,351 74,903
Deferred revenue ( 7,800) ( 7,800)
Intergovernmental payable ( 13.055)
Total adjustments 1.311.582 760.288
Net cash provided by operating activities 2,092,701 1,955,946
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds ( 203,285) ( 210,364)
Reduction in bonds payable ( 325,000) ( 305,000)
Operating transfers in 25,000
Operating transfers out ( 459,793) ( 475.025)
Net cash used in noncapital financing activities ( 988,078) ( 965,389)
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 204,761 113,199
Purchase of utility plant and equipment in service ( 626,378) ( 725.838)
Net cash used in capital and related financing activities ( 421,617) ( 612,639)
INVESTING ACTIVITIES
Purchase of investment securities ( 1,556,483) ( 2,099,856)
Proceeds from sale or maturity of investment securities 653,758 656,159
Interest received on investments 241,001 240,201
Rents received 35,000
Net cash used in investing activities ( 626,724) ( 1.203,496)
Net increase (decrease) in cash and cash equivalents 56,282 (825,578)
Cash and cash equivalents, beginning of year 918,526 1.744,104
Cash and cash equivalents, end of year $ 974,808 $ 918,526
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1994
Capital
Operating Projects
Account Account
ASSETS
Current assets:
Cash and cash equivalents $
Short-term investments 4,590,105
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 1,386,347
Accrued interest receivable 67,749
Prepaids and deposits 1,639
Due from other governments 11,250
Due from other funds 318.601
Total current assets 6,375,691
$
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 95,235
Short-term investments 594,278
Customer deposits:
Cash and cash equivalents 769,605
Interest receivable on investments 5,883
Total restricted assets 1,269,605 695,396
Bond issuance cost 85,373
Less accumulated amortization 23.283
Net bond issuance cost 62,090
Utility plant and equipment in service, at cost:
Land 1,528,966
Equipment 1,079,681 4,280
Waterworks and sanitary sewer system 26,203,611
Construction in progress 570.106
28,812,258 574,386
Less accumulated depreciation 11,504,410
Net utility plant and equipment in service 17,307,848 574.386
TOTAL ASSETS $25,015,234 $1,269,782
52
(1 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account_ Account Account Eliminations 1994
S S $ 68,092 S S $ 68,092
394,653 4,984,758
770
463,515
1,386,347
68,519
1,639
11,250
3184601
6,839,206
41,876 41,876
618,219 618,219
500,000
467,226 467,226
95,235
594,278
769,605
14,107 12,990
1,141,428 3,106,429
85,373
23,283
62,090
1,528,966
48,474 1,132,435
26,203,611
570,106
48,474 29,435,118
11,504.410
48,474 17,930.708
$1,141,428 S 48,474 $ 463,515 S $ $27,938,433
53
CITY OF EULESS, TEXAS
WATER AND SEWER SYSTEM FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1994
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Total current liabilities
Capital
Operating Projects
Account Account
$ 1,663,640 $
187,832
89.658
1,941,130
Current obligations payable from
restricted assets:
Customer and escrow deposits 769,605
Current portion of bonds payable 335,000
Accrued interest
Bonds payable 3,285,000
Deferred revenue 96,073
Total liabilities 6,426,808
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
13,789,751
239,617
15.000
14,044,368
5.505.659
8,538,709
Retained earnings:
Reserved for:
Revenue bond retirement
Recycling 6,898
Emergency 500,000
Total reserved 506,898
Unreserved 9,542,819
Total Retained earnings 10,049.717
Total fund equity 18.588.426
TOTAL LIABILITIES AND FUND EQUITY $25.015,234
107,630
107,630
107,630
1.162.152
1.162,152
1.162.152
$1.269,782
54
(2 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
_Ac cunt_ Account Account Account Eliminations 1994
$
$ 63,077 $ $ 53,550 $ $ 1,780,267
16,300 311,762
89.658
79,377 53,550 2,181,687
38,942
38,942 79,377
53,550
769,605
335,000
38,942
3,285,000
96,073
6,706,307
317,960 14,107,711
239,617
15.000
317,960 14,362,328
5,505.659
317,960 8,856,669
1,102,486 ( 53,550) 1,048,936
6,898
500,000
1,102,486 ( 53,550) 1,555,834
( 30.903) 463,515 ( 317.960) 10,819,623
1,102.486 ( 30.903) 463,515 ( 53.550) ( 317.960) 12.375.457
1,102,486 ( 30.903) 463,515 ( 53,550) 21.232.126
$1,141,428 $ 48,474 $ 463,515 $ $ $27,011,433
55
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1994
Capital
Operating Projects
Account Account
Operating revenues:
Water service $ 5,448,097 $
Sewer service 3,045,524
Service fees and miscellaneous 493.404
Total operating revenues 8,987,025
Operating expenses:
General and administrative 408,518 82,352
Water production 2,981,299
Water distribution 308,762
Utility engineering 189,859
Sewage collection and treatment 1,296,503
Nondepartmental 1,578,317
Service center
Depreciation 858,335
Amortization 7.761
Total operating expenses 7.629.354 82.352
Operating income (loss) 1,357,671 ( 82,352)
Nonoperating revenues (expenses)
Investment income 181,644 12,891
Interest on bonds
Rental income 35.000
Total nonoperating revenues
(expenses), net 216,644 12,891
Income (loss) before operating transfers 1,574,315 ( 69,461)
Operating transfers from other funds or other water
and sewer accounts 1,017,716 257,284
Operating transfers to other funds or other water
and sewer accounts ( 2.269.794)
Net income (loss) 322,237 187,823
Add depreciation on fixed assets acquired
with contributed capital 430 870
Increase (decrease) in Retained earnings 753,107 187,823
Retained earnings (deficit), beginning of year 9,296,610 974.329,
Retained earnings (deficit), end of year $10,049,717 $1 ,162.152.
56
Bond Service Impact Debt Year Ended
Reserve Center Fees Service September 30,
Account Account Account _Account Eliminations 1994
$ $ $ $ $ $ 5,448,097
3,045,524
20,178 204,761 ( 204,761) 513, 582
20,178 204,761 ( 204,761) 9,007,203
1,259 492,129
2,981,299
308,762
189,859
1,296,503
1,578,317
513,119 513,119
858,335
7,761
513,119 1,259 8,226.084
( 492,941) 204,761 ( 1,259) ( 204,761) 781,119
68,216 8,837 271,588
( 73,990) ( 125,885) ( 199,875)
35,000
( 5,774) 8,837 ( 125,885) 106,713
( 5,774) ( 492,941) 213,598 ( 127,144) ( 204,761) 887,832
520,000 50,001 ( 1,845,001)
( 35,000) 1,845,001 ( 459.793)
( 40,774) 27,059 213,598 ( 77,143) ( 204,761) 428,039
430.870
( 40,774) 27,059 213,598 ( 77,143) ( 204,761) 858,909
_1.143.260 ( 57.962) 249.917 23.593 ( 113,199) 11,516.548
$1,102,486 ($ 30.903) $ 463,515 ($ 53,550) ($ 317.960) $12,375.457
57
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1994
Total
Operating Construction September 30,
Account in Proaress Eliminations 1994
ASSETS
Current assets:
Cash and cash equivalents $ 59,411 $ $ $ 59,411
Short-term investments 375,775 375,775
Accounts and unbilled revenue
less allowance for uncollectibles of
$123,443 for drainage utility 26,601 26,601
Accrued interest receivable 3,229 3.229
Total current assets 465,016 465,016
Bond issuance cost 107,473 107,473
Less accumulated amortization 17,913 17,913
Net bonds issuance cost 89,560 89,560
Utility plant and equipment in service, at cost:
Equipment 936,280 936,280
Construction in progress 1,394,320 1.394.320
936,280 1,394,320 2,330,600
Less accumulated depreciation 3,307 3,307
Net utility plant and equipment in service 932 973 1,394,320 _2,327,293
TOTAL ASSETS $1,397,989 $1,483,880 $ $2.881.869
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable $ 33,480 $ 181,784 $ $ 215,264
Overdraft payable 35,905 35.905
Total current liabilities 33,480 217,689 251,169
Current portion of bonds payable 25,000 25,000
Accrued interest 26,744 26,744
Bonds payable 2,025,000 2.025.000
Total liabilities 2,294,433 2,327,913
Retained earnings:
Unreserved 1,364,509 ( 810,553) 553,956
Total fund equity 1,364,509 ( 810,553) 553.956
TOTAL LIABILITIES AND FUND EQUITY $1,397,989 $1.483,880 $ S2 881,110
58
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1994
Total
Operating Construction September 30,
Account in Prooress Eliminations 1994
Operating revenues:
Drainage fees $ 342.835 $ $ $ 342,835
Total operating revenues 342,835 342,835
Operating expenses:
Drainage 98,796 98,796
Depreciation 3,307 3,307
Amortization 5,971 5.971.
Total operating expenses 102.103 5.971 108,074
Operating income 240,732 ( 5,971) 234,761
Nonoperating revenues (expenses):
Investment income 11,097 13,980 25,077
Interest on bonds l 129,360) ( 129,360)
Total nonoperating revenues
(expenses), net 11.097 ( 115,380) ( 104.283)
Income before operating transfers 251,829 ( 121,351) 130,478
Operating transfers in 815,765 154,620 ( 970,385)
Operating transfers out ( 169.620) ( 815.7651 970 385 ( 15,000)
Increase (decrease) in retained earnings 897,974 ( 782,496) 115,478
Retained (deficit) earnings, beginning of year 466.535 ( 28.057) 438.478
Retained (deficit) earnings, end of year $1,364,509 ($ 810,553) $ $ 553.956
59
f
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units, on a cost
reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned to be
used in replacing existing equipment. Funding is provided annually by the user
departments.
Insurance Fund - to account for the revenue and expenses resulting from providing health
insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to the self-
insurance program for worker's compensation and for general liability and property claims.
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.
60
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993
Equipment
Replacement
Fund
ASSETS
Cash and cash equivalents $ 74,967
Short term investments 196,099
Total currents assets 271,066
Equipment, at cost, net of
accumulated depreciation
of $322,941 in 1994
831,413
Insurance
Fund
Risk Cash
Manage- and Debt
ment Manage -
Fund ment Fund
$227,851 $ 34,777 $
627.877,
227,851 662,654
TOTAL ASSETS $1.102,479 $227,851
LIABILITIES AND
RETAINED EARNINGS
Accounts payable
Accrued insurance
claims
Due to other funds
Total current liabilities
S
Retained earnings:
Reserved:
Insurance
Workers' compensation
Risk management
Total reserved
Unreserved 1,102,479
Total retained earnings 1,102,479
$662.654 S
$ 21,520 $ 18,296 $
70,000
91,520 80,901
62.605
41,000
200,000
200.000
41,000 400,000
95,331 181,753
136,331 581,753
TOTAL LIABILITIES AND
RETAINED EARNINGS $1,102,479 $227,851
$662.654 $
Totals
1994 1993
$ 337,595 $ 971,724
823,976
1,161,571 971,724
831,413, 737.280
$ 1.9 9 2.9 84 $ 1.709.004
$ 39,816 $ 71,040
70,000
62,605
172,421
41,000
200,000
200.000
441,000
1.379.563
1.820.563
62.605
133,645
41,000
100,000
100,000
241,000
1 .334 359
1,575.359
$1,992,984 11709,004
61
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
Equipment
Replacement Insurance
Fund Fund
Operating revenues:
Insurance premiums S $ 1,152,973
Service fees and
miscellaneous 257,736
Total operating revenues 257,736 1,152,973
Operating expenses:
General and
administrative
Insurance costs
Depreciation
Total operating expenses
Risk Cash
Manage- and Debt
ment Manage- Totals
Fund ment Fund 1994 1993
$641,593 $
641,593
21,149 57,514 295,312
1,063,002 173,951
176 703
197,852 1,120,516 469.263
Operating income (loss) 59,884
Nonoperating revenues
(expenses):
Investment income
Gain (loss) on sale
of fixed assets
7,192
4,925
Total nonoperating
revenues, net 12,117
32,457 172,330 1
Income before operating
transfers 72,001 32,457
Operating transfers in 50,000
16,675
S1,794,566 $1,714,235
257 736 232,877
2,052,302 1,947,1 12
47,410 421,385 443,403
1,236,953 1,026,802
176.703 174.802
47.410 1.835.041. 1.645.007
47,410) 217,261 302,105
49,437 73,304
16.675 49 437
189,005
Operating transfers out ( 30.543) ( 67.716)
Net income 72,001 51,914 121,289
Retained earnings,
beginning of year 1,030.478 84 417 460,464
Retained earnings,
end of year $1,102 479 $ 136,331 $581.753 S
2,027
4.925
78.229
51,882
(3.839)
48.043
295,490 350,148
50,000
2,027) ( 100,286) 1
78,090
123.204)
245,204 305,034
1.575.359, 1,270.325
S1�820.63 $1 575,359
62
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1994
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1993
Risk Cash
Equipment Manage- and Debt
Replacement Insurance ment Manage- Tot Is
Fund Fund Fund ment Fund 1994 1993
OPERATING ACTIVITIES
Operating income (loss) $ 59,884 $ 32,457 $172,330 ($ 47,410) $ 217,261 $347,099
Adjustments to reconcile
operating income (loss)
to net cash provided by
(used in) operating
activities:
Depreciation expense 176,703 176,703 174,802
Decrease in due from
other governments 2,985
Increase (decrease) in
accounts payable ( 9 664) 40,754 7,686 38,776 ( 80,043)
Total adjustments _167.039 40.754 7.686 215.479 97.744
Net cash provided by (used in)
operating activities
226,923 73,211 180,016 ( 47,410) 432,740 444,843
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in 50,000 50,000 78,090
Operating transfers out ( 30,543) ( 67,716) ( 2.027) ( 100,286) ( 123,204)
Net cash provided by (used in)
noncapital financing
activities
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment
Sale of equipment
( 270,836)
4.925
19,457 ( 67,716) ( 2,027) ( 50,286) ( 45,114)
1 270,836) ( 230,649)
4.925 49.425
Net cash used in capital
and related financing
activities ( 265,911) ( 265,911) ( 181,224)
INVESTING ACTIVITIES
Interest received on
investments 7,192 16.675 49 437 73.304 6.888
Net increase (decrease) in
cash and cash equivalents ( 31,796) 92,668 128,975 189,847 225,393
Cash and cash equivalents,
beginning of year 302,862 135.183 533.679 971.724 746.331.
Cash and cash equivalents,
end of year $271.066 $227,851 $662,654 $ $1 .161 .571 $971,724
63
DEFERRED COMPENSATION AGENCY FUND
Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments and/or other funds.
To account for assets held for employees in accordance with the provisions of Internal
Revenue Code Section 457.
64
CITY OF EULESS, TEXAS
DEFERRED COMPENSATION AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 1994
Assets:
Investments
Liabilities:
Deferred compensation
benefits payable
Balance Balance
September 30, September 30,
1993 Additions Deletions 1994
$ 2.313,311 $320,372
$ 2.313a311 320,372
$204,733 L 2,428.950
204,733 $ 2.428,950
65
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not used in proprietary fund operations.
66
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 1994 AND 1993
1994 1993
General fixed assets:
Land $ 871,250 $ 871,250
Building 4,927,995 4,927,995
Improvements other than buildings 1,660,922 1,591,923
Machinery and equipment 4.201 .683 3.907.749
Total general fixed assets $ 1 1 .661 .850 $ 1 1 .298.917
Investment in general fixed assets by source:
General fund $ 5,308,718 $ 5,045,030
Special revenue funds 428,903 330,669
Capital projects funds 5.924.229 5,923,218
Total investment in general fixed assets $1 1.661 ,850 $1 1 ,298,917
67
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1994
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Land
$269,959
234,325
366,966
Building
$ 1,382,874
1,315,968
2,229,153
Total General Fixed Assets $871.250 $4,927,995
Improvements Machinery
0ther than and
Buildinas Eauipment
$ 128,093 $ 866,721
36,758 2,315,318
885,240 595,220
325,957
610,831 98 467
$1,660,922 $4,201,683
Total
$ 2,647,647
3,902,369
4,076,579
325,957
709,298
$11,661,850
68
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1994
General Fixed General Fixed
Assets Assets
Function September 30, September 30,
and Activity 1993 Additions Deletions 1994
General government $ 2,355,016 $ 307,631 $ 15,000 $ 2,647,647
Public safety 3,834,273 78,478 10,382 3,902,369
Culture and recreation 4,075,384 1,195 4,076,579
Highways and streets 325,957 325,957
Construction -in -progress 708.287 1.011 709.298
$ 11,298.917 $ 388.315 $ 25.382 $ 11,.a13..5.0
69
STATISTICAL SECTION
(unaudited)
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 1
General
Fiscal Govern- Public Culture- Debt
Year ment Safety Streets Recreation Service Other Total
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
1994 2,160,916 6,595,803 526,136 1,514,311 1,640,120 1,041,424 13,478,710
Note: Includes General Fund and Debt Service Fund.
70
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Table 2
Interest
Licenses Inter- Charges Income
Fiscal and govern- for Fines and Other
Year Taxes Permits mental Service and Fees Revenues Total
1985 $5,902,338 S429,929 $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
1994 10,847,785 364,617 227,464 81,311 1,592,194 420,641 13,534,012
Note: Includes General Fund and Debt Service Fund.
71
Fiscal
Year
Total Current Tax
Tax Levv Collections
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Unaudited)
Percent of
Current
Taxes
Collected
Delinquent
Tax Total Tax
Collections Collections
Ratio of
Total Tax
Collections
to Tax Levv
Outstanding
Delinquent
Taxes
Table 3
Percent of
Delinquent
Taxes to
Tax Levv
1985 $3,298,386 $3,182,483 96.49% $ 127,288 $3,309,771 100.35% $ 256,955 7.79%
76,236 3,651,830 95.75 393,256 10.31
167,892 4,872,309 100.56 428,865 8.85
1986 3,814,110 3,575,594 93.75
1987 4,485,209 4,704,417 97.09
1988 5,001,323 4,921,426 98.40
1989 4,975,719 4,926,213 99.00
1990 5,162,838 5,150,783 99.77
1991 5,717,223 5,586,764 97.72
1992 5,889,411 5,765,733 97.95
1993 5,943,537 5,880,688 98.94
1994 6,259,282 5,874,486 93.85
174,978 5,096,404
165,469 5,091,682
175,439 5,326,222
106,503 5,693,267
147,498 5,916,231
73,853 5,954,541
38,770 5,913,256
101.90 355,562 7.11
102.33 331,891 6.67
103.16 329,745 6.39
99.58 349,226 6.11
100.46 577,695 9.81
100.19 239,370 4.03
94.47 355,032 5.67
72
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
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 872,81 1,737 872,81 1,737 127,990,604
1993 965,322,639 965,322,639 136,823,626
1994 970,248,082 970,248,082 147,568,746
Source: Tarrant Appraisal District
73
Table 4
Ratio of
Total
Assessed
Property Total to
Estimated
Actual Assessed Actual Actual
Value Value Value Value
$ 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
147,568,746 1,1 17,816,828 1,1 17,816,828 100
74
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
PER $ 100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Table 5
Fiscal Junior
Year _City (1) School (2) _County (3�_ Hospital (3) College (3) Total
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
1994 .6160000 1.5350 .271870 .244640 .056510 2.7240200
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) City records
(2) Hurst -Euless -Bedford Independent School District
(3) Tarrant County
75
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)
Table 6
Net
Net Bonded Net
General Debt to Bonded
Fiscal Estimated Assessed Bonded Assessed Debt Per
_Year Population (1I Value (2) Debt Value Capita
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 1.13 321
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 1,102,146,265 11,321,467 1.03 291
1994 39,650 1,117,816,828 10,277,666 .92 259
(1) Estimates by North Central Texas Council of Governments as of January 1, 1994.
(2) Tarrant Appraisal District
76
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 1994
(Unaudited)
Jurisdiction
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Outstanding of Euless of Euless
City of Euless $10,277,266 100.00% $10,277,266
Grapevine-Colleyville Independent School District 85,415,027 2.12 1,810,799
Hurst -Euless -Bedford Independent School District 51,594,964 26.79 13,822,291
Tarrant County 155,575,150 2.72 4,231,644
Tarrant County Hospital District 47,251,875 2.72 1,285,251
Tarrant County Junior College District 75,865,335 2.72 2.063.537
Total direct and overlapping debt $33 490,788
Ratio of direct and overlapping
funded debt to taxable assessed valuation 3.00%
Per capital direct and overlapping bonded debt $ 845
77
CITY OF EULESS, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR NET GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS
(Unaudited)
Table 8
Ratio of
Debt
Service
Interest to
and Total Total General
Fiscal Fiscal Debt General Expendi-
Year Principal Charaes Service Expenditures tures
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
1994 1,085,006 554,312 1,639,312 13,478,710 12.16
78
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Table 9
Net
Direct Revenue Interest
Gross Operating Available and
Fiscal Revenue Expenses for Debt Fiscal Coverage
Year (1) 21 & jal Services Principal _Charges Total Ratio
1985 $6,601,117 $3,691,945 $2,909,172 $250,000 S422,923 $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
1994 9,278,791 7,359,988 1,918,803 325,000 199,875 524,875 3.66
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.
79
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST THREE FISCAL YEARS
(Unaudited)
Table 10
Net
Direct Revenue Interest
Gross Operating Available and
Fiscal Revenue Expenses for Debt Fiscal Coverage
_Year_ (1) (21 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
1994 367,912 98,796 269,116 25,000 129,360 154,360 1.74
Note: The Drainage Utility Fund had no outstanding debt or debt service prior to 1992.
(1) Includes operating revenue and interest earned on investments.
(2) Total operating expenses exclusive of depreciation and amortization.
80
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
Table 11
Per
Capita School Unemployment
Fiscal Income Enrollment Rate
Year Population (1) 121 (31 141
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
1994 39,650 20,601 19,236 5.1
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
81
Taxpayer
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1994
(Unaudited)
Table 12
Percentage
1993 of Total
Type of Assessed Assessed
Business Valuation Valuation
Sotogrande Partners Apartments $ 21,293,127 1.69%
EFW Association Land 19,627,789 1.56
Southwestern Bell Telephone Company Telephone Utility 19,563,410 1.55
TU Electric Electric Utility 18,069,590 1.43
Sky Chef, Inc. Commercial 8,335,947 .66
AMLI SW Retail 8,248,506 .65
Bear Creek Apartments, Inc. Apartments 8,020,575 .63
Home Depot USA, Inc. Retail 7,980,175 .63
Everoak Partners Apartments 7,842,545 .62
Euless Holdings, LC Land 7,192.377,
$126 7�44,041
.57
82
CITY OF EULESS, TEXAS
TMRS DEFINED CONTRIBUTION PLAN
ANALYSIS OF FUNDING PROGRESS
LAST SIX FISCAL YEARS - NOTE 1
(Unaudited)
Table 13
Unfunded
Pension
Book Value Obligation
of Net as a
Assets Unfunded Percentage
Available Pension Percent- Pension Annual of
Fiscal for Benefit age Benefit Covered Covered
Year_ Benefits Obliaation Funded_ Obliaation (3) Pavroll (2)_ Pavroll (41_
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
1994 18,545,269 24,205,730 76.62 5,660,461 9,066,344 62.43
Notes: 1. Pension benefit obligation information is unavailable prior to fiscal year ended 1989.
2. City Records
3. Texas Municipal Retirement System
4. After an actuarial study for the 5 year period of 1988-1992, revised assumptions were adopted by the
TMRS Board to increase the rate of funding due to significantly lower rates of withdrawal (turnover) by
active members during the study period.
83
CITY OF EULESS, TEXAS
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(Unaudited)
Table 14
Construction (1)
Bank Property Number
Deposits Value of
Year (3) (2) Permits Value
1985 5 48,834,000 $ 765,356,327 879 547,670,451
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 1,102,146, 265 331 21, 224, 743
1994 40,265,000 1,117,816,828 360 21,437,599
Notes: 1. City Records
2. Tarrant Appraisal District
3. Bank records. The 1994 and 1993 data does not include the deposits of Bank One
since the Bank can no longer provide data for the branch location within the City.
84
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 1994
(Unaudited)
Article XI, Section 5 of the State of Texas Constitution states in part:
Table 15
"... 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 1994 was established at $.616 per $100 of assessed valuation on
100% of appraised value.
85
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1994
(Unaudited)
Table 16
Date of incorporation February 24, 1953
Date of adoption of Charter July 21, 1962
Form of government Home Rule - Council/Manager
Mayor - elected at large
Six Council members
Area 16.9 Square Miles
Full time City employees budgeted 275
Fire protection:
Number of stations
Number of certified firefighters
Police protection:
Number of stations
Number of certified officers
3
46
1
65
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
56,789
4,893
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
86
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1994
(Unaudited)
(continued)
Table 16
City Water and Sewer service:
Water Service:
Number of Customers 18,426
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 10,916,000
Average daily consumption 7,250,000
Water mains 148 miles
Fire hydrants 1,130
Sewer Service:
Average daily flow of wastewater 2,630,000
Number of customers 18,016
Sewer mains 125 miles
Streets:
Improved 150 miles
State highways 17.2 miles
87