HomeMy WebLinkAboutFY 1995 Comprehensive Annual Financial Reportc
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Comprehensive Annual Financial
Report for Year Ending
September 30, 1995
JAMES A. CRIBBS
BOB Mc FARLAND
tPAUL F. WIENESKIE
PAUL T. FRANCIS
PAUL TOMME
tBOARD CERTIFIED, CIVIL APPELLATE LAW —
TEXAS BOARD OF LEGAL SPECIALIZATION
Weaver & Tidwell
1500 Commerce Bldg.
307 W. 7th Street
Fort Worth, Texas 76102
CRIBBS & McFARLAND
A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
1OD❑ WEST ABRAM
P. ❑. SOX 1306❑
ARLINGTON, TEXAS 76094-0060
January 10, 1996
IN RE: Annual Audit for City of Euless,
September 30, 1995
Gentlemen:
D/FW METRO TEL: (B17) 461-2000
TELECOPIER: (B17) 275-781❑
JI N 1 1 1996
oty of Eukk s
Texas, for Fiscal Year Ending
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, 1995, 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, 1995, 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 10, 1996
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, 1995, 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, 1995, 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, 1995, 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.
Yo
MRMkf
cc: Mr. Tom Hart, City Manager
City of Euless
Ms. Diana Ortiz, Director of Finance
City of Euless
The Honorable Mary Lib Saleh, Mayor
City of Euless
0247a
McFarland
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, 1996
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 75251
(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, 1995, 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.
Investments
The City has a procedure of authorizing investment decisions by verbal
approval from the Director of Finance.
We recommend that all authorizations for investment decisions be written in
order to safeguard against unauthorized investment activity.
Management's Response: In light of the recent legislation, the City has been
preparing for additional reporting. An internal control procedure has therefore been
implemented to comply with this recommendation. All investment purchase
instructions are required to have an authorized signature of the City before the bank
proceeds with any investment transactions. The authorized signatures consist of
those on the bank's signature card. These instructions have been provided to
Landmark Bank.
Accounts Payable
The City has a procedure of filing all accounts payable invoices in a file
room in its finance offices for future reference. The City was unable to locate an
entire accounts payable vendor file due to lack of control over the accounts payable
file room.
WEAVER AND TIDWELL
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
The City of Euless, Texas
January 17, 1996
Page 2
We recommend that the City keep limited access to the accounts payable files
by employees not directly related to finance activities. We further recommend that
all accounts payable files that leave the finance offices be signed out by employees
requesting their use. This will enable the finance office to have adequate control
over all accounts payable vendor files and be able to easily locate any files taken
from the finance offices.
Management's Response: The vendor files and miscellaneous reports in the
Finance Department have always been safekept successfully; however, we have
implemented additional internal procedures to limit access and closely monitor the
files if used by nonfinance employees. Only finance employees will be allowed to
gain access to vendor files, file cabinets containing these files will be locked at
night and a sign in/out procedure will be required for files needed to be taken out
of the department for copying.
In addition to performing our audit of the financial statements, we were requested by
management to perform an operations review of the Purchasing Department in order to provide
recommendations for improvement. We have the following comments related to our current
year operations review:
Inventory
The purchasing department maintains an inventory of office supplies and
miscellaneous cleaning products. The purchasing department takes a physical
inventory on September 30 of each year. The inventory supply room is shared with
the fire department, which makes control over access to the supply room limited.
The department has the software to maintain perpetual inventory records, but they
are not currently utilizing it.
We recommend that an inventory be taken quarterly instead of annually, the
balances be entered into the inventory software, and perpetual records be
maintained. We further recommend that the fire department move its supply room
to another location in order to reduce losses of the purchasing departments
inventory, as well as, restrict access to purchasing personnel only.
Personnel
The purchasing department is currently operating with one employee, the
purchasing director. When the purchasing director is out of the office, the office
is unattended and purchase orders are not filled until he returns.
WEAVER AND TIDWELL
CERTIFIED PUBLIC ACCOUNTANTS
A REGISTERED LIMITED LIABILITY PARTNERSHIP
The City of Euless, Texas
January 17, 1996
Page 3
To improve the efficiency of the purchasing function, we recommend that the
purchasing office be attended at all times. This could be accomplished by cross -
training current employees who would attend to the purchasing function when the
director is out or by hiring an additional employee to assist the purchasing director.
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 a material
weakness as defined above. However, none of the reportable conditions described above is
believed to be a material weakness.
This report is intended solely for the information and use of management.
We would be pleased to discuss this letter with you at greater length and assist you in the
implementation of the recommendations should you so desire. We would like to express our
appreciation for the excellent cooperation and assistance received from your staff during the
course of the audit and the related operations review.
WEAVER AND TIDWELL, L.L.P.
/cm
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ending September 30, 1995
CITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, 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
PLACE SIX - OPEN
TOM HART, CITY MANAGER
Joe Hennig
Assistant City Manager
Prepared by
Finance Department
Diana Ortiz
Director of Finance
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1995
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of transmittal 1-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 and special revenue funds
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, 1995
TABLE OF CONTENTS - Continued
Supplemental Statements and Schedules - continued
Statement of revenues, expenditures and
changes in fund balances - budget and actual
Capital proiects 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
Paqe(s)
35 - 36
38 - 39
40-41
43-44
45
46-47
48-49
50
51 - 52
53
54 - 57
58 - 59
Drainage utility funds --aggregating
schedule of balance sheet accounts 60
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1995
TABLE OF CONTENTS - Continued
Supplemental Statements and Schedules - continued Pages)
Drainage utility funds --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Internal service funds
61
Combining balance sheet 63
Combining statement of revenues,
expenses and changes in retained
earnings 64
Combining statement of cash flows 65
Agency funds
Combining balance sheet 67
Statements of changes in assets and liabilities 68
General fixed assets account croup
Comparative schedule of general fixed
assets - by source 70
Schedule of general fixed assets by
function and activity 71
Schedule of changes in general fixed
assets by function and activity 72
Table Paae(s)
STATISTICAL SECTION (Unaudited)
General governmental expenditures
by function 1 74
General governmental revenues by source 2 75
Property tax levies and collections 3 76
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1995
TABLE OF CONTENTS - Continued
STATISTICAL SECTION (UNAUDITED) - continued Table Page(s)
Assessed and estimated actual value of
taxable property 4 77 - 78
Property tax rates - all overlapping
governments (per $100 of assessed value) 5 79
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 80
Computation of direct and overlapping debt 7 81
Ratio of annual debt service expenditures for
net bonded debt to total general expenditures 8 82
Schedule of revenue bond coverage -
Water and Sewer Bonds 9 83
Schedule of revenue bond coverage -
Drainage Utility Bonds 10 84
Demographic statistics 11 85
Principal taxpayers 12 86
TMRS defined contribution plan - analysis
of funding progress 13 87
Property value and construction 14 88
Computation of legal debt margin 15 89
Miscellaneous statistics 16 90 - 91
INTRODUCTORY SECTION
THE CITY OF
January 23, 1996
Honorable Mayor & City Council,
City Manager, &
Citizens of Euless:
EULESS
The Finance 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, 1995. 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 multi -year 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 funds and account groups are discussed in depth in the notes to the financial statements. Even though
associations with other entities such as Hurst -Euless -Bedford Independent School District exist, the City
Council has no 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
January 23, 1996
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 1995 reflections in his report entitled Share The Vision:
Nineteen Ninety-Five....what an outstanding year. I look around this city and am amazed at
everything that is happening. There are beautiful houses and subdivisions being built, the
golf course and athletic complex are currently under construction, the 40,000 square foot
library, is at least half complete and new restaurants and retail stores are relocating
throughout the City. We have broken ground on three major projects in 1995 including the
library, golf course and athletic complex. Our library will be considered one of the largest in
Northeastern Tarrant County, which will attract citizens from all areas of the metroplex. We
are so enthusiastic about building this championship golf course and conference center and
feel that Texas Star will be considered one of the elite golf courses in the nation. This
athletic complex will be "one of a kind" in this region of Texas, which will allow Euless to
host various athletic tournaments ranging from baseball to soccer.
Business and restaurants have also targeted Euless as the "center of it all". We have been
working diligently to make Bear Creek Mall a reality and I feel very strongly that this will
happen in the very near future. As these projects are being built around us, we continue to
bring excellent service to our citizens, which is why we received recognition by Texas
Business Magazine as the second best managed city in Texas with a population under
50,000.
The proposed 94-acre premium regional mall (Bear Creek Mall) could become a reality in Euless soon, as
developers and City officials continue to 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 1995 Euless welcomed numerous new businesses to our community including: Ross Dress For Less,
Savianos, Schlotzsky's, China Dragon, Murphy's 183 Grill, Village Grill, Pockets, Soup R Salad, Mid Cities
Physical Therapy, and Westpark Nursing Center. Also, approximately 174 certificates of occupancy were
issued for new and expanding businesses in Euless during 1995.
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 1995 fiscal budget, both elected and appointed officials worked
together to identify and address several key programs needed to adequately serve the public, either
11
January 23, 1996
Page 3
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:
Maintenance of service levels to citizens; continuation of competitiveness in the employee pay plan;
absorption of legislative mandates; and continuation of City Council directives, including repair and/or
replace deteriorating infrastructures and improve external and internal communications.
Progress Report. Fiscally, the year 1995 has proven successful. City Council members were able to
maintain the current rates for water and sewer services while decreasing the tax rate to .616 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 and a positive safety record.
Individual and departmental successes have improved city services and enhanced growth in our community.
Among the many accomplishments during 1995, Public Works completed one third of the meter change -out
program; Engineering completed Sulphur Branch drainage project as well as began several highway and
major street projects; EMS expanded transport services with additional equipment; Police Department
increased neighborhood block watches by 40%; Finance Department implemented a bad debts collection
program with successful results; Leisure Services created an alcohol free New Year's Eve Concert which
sold out; recycling program added magazines as the newest item being accepted; and Economic
Development Department placed unique entry signs at every entrance of the City.
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.
III
January 23, 1996
Page 4
General Governmental Functions. Revenues for general governmental functions and general debt service
totaled $14,779,658 in 1995, an increase of 9.20 percent over 1994. The increase in revenues is primarily
attributable to: activity in Municipal Courts due to implementing a court of record; interest income;
franchise settle up, sales tax receipts, license -permits for new development and grant monies. The amount
of revenue from various sources and the changes from the previous year are reflected in the following table:
Revenue Source
Property tax
Gross receipts tax
General sales tax
Fines and fees
Licenses and permits
Interest income
Intergovernmental/Other
Increase
Percent (decrease)
Amount % of Total from 1994
$6,151,989 41.62 $ 74,735
2,172,055 14.70 260,666
3,038,370 20.56 179,228
1,941,505 13.14 349,311
420,624 2.84 56,007
405,290 2.74 180,351
649.825 4.40 145.348
TOTAL REVENUES $14,779,658 100.00% $1,245,646
Percent of
increase
(decrease)
1.23
13.64
6.27
21.94
15.36
80.17
28.81
In addition to the above general revenue, $537,119 was transferred from various funds, primarily Enterprise
funds for general and administrative cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled $13,644,017, an increase
of 1.23% over 1994. 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 EXPENDITURES
Amount
$2,193,512
6,708,056
575,608
1,430,955
1,650,196
1.085.690
$13,644.017
Percent
% of Total
16.08
49.16
4.21
10.49
12.10
7.95
100.00%
Increase
(decrease)
from 1994
$ 32,96
112,253
49,472
(83,356)
10,076
44,266
$165,307
Percent of
increase
(decrease)
1.51
1.70
9.40
(5.5)
0.6
4.25
Iv
January 23, 1996
Page 5
The increase in Streets is primarily due to increased personnel and materials cost associated with street
maintenance overlay program. Parks/Recreation/Library decreased due to departmental reorganization,
Nondepartmental expenditures increased primarily due to the funding of non -recurring capital items,
including computer equipment, fire truck reserve, transfer to streets CIP and a historical preservation
community project.
Revenues
Expenditures
GmGe..
16.1'%
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.
1995 1994
Income before operating transfers $ 676,104 $ 887,832
Net revenue available for debt service $1,760,109 $1,918,803
Debt service requirements $ 518,430 $ 524,875
Coverage 3.40 times 3.66 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 FY95,
$337,163 of revenue was generated and $101,286 of the costs were incurred. Capital improvements were
initiated in FY92 relating to the Drainage Utility System and continue through FY95.
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 $614,128 was
generated, while class expenses were $628,319. Both experienced an increase from prior year activity, yet
a small reserve remains. Euless' Arbor Daze is funded in this account.
Debt Administration. General obligation debt, which is directly tax supported, totaled $8,311,586 at
September 30, 1995. 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 - $8,017,594; ratio
of net bonded debt to assessed value 0.65 and net bonded debt per capita is $202. Tables 8-12 in the
Statistical Section of this report present more detailed information about the debt position of the City.
V
January 23, 1996
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
$5,310,000 at September 30, 1995.
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 $1,578,209. Interest is an
important non -tax revenue for the City. Throughout 1995, every $1.00 the City had to invest,
approximately $1.00 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 $60,000 and aggregate claims in excess of $996,858.
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, 1995, the general fixed assets of the City amounted to $16,019,888. 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, 1994. The Certificate of
Achievement is the highest form of recognition given in the area of government reporting by the GFOA. In
order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently
organized comprehensive annual financial report whose contents conform to program standards. Such
reports must satisfy both generally accepted accounting principles and applicable legal requirements. A
Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
VI
January 23, 1996
Page 7
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,
Diana G. Ortiz, CGFO, CMFA
Director of Finance
BT:95LTR-CC.SAM
VII
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 of Euless, Texas for its
comprehensive annual financial report for
the fiscal year ended September 30, 1994.
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 comprehensive annual 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 19 consecutive years. 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, 1994
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
Executive Director
VIII
Bob McFarland
City Attorney
X
Gary Mckamie
Police Chief
Patrol
Crim. Invest.
Jail
Communications
Scott Campbell
Administrative Asst.
1
Susan Crim
City Secretary
r
Tom Cox
Dir. of Admin. Sep,/
& Econ. Dev.
Econ. Dev.
Fleet Services
Facility Maint.
Special Projects
Jenny Kratz
Mun. Relations Coord.
Randy Byers
Dir. of Public Works
& Development
Streets
Water/Wastewater
Street Sweeping
Code Enforce.
Environ. Health
Animal Control
Planning
Building
Inspection
CITIZENS
MAYOR
and
COUNCIL
TOM HART
City Manager
Joe Hennig
Assistant
City Manager
Rick Herold
Dir. of Community
Services
Parks/Leisure
Library Beautification
Green House
Texas Star Golf
Paul Kruckemeyer
City Engineer
Engineering
Construction
Inspection
Development Rev.
CIP Management
Traffic Safety
Drainage
George Boring
City Judge
Diana Ortiz
Director of Finance
Accounting
Utility Billing
Budget
Mun. Court
Cash.Debt. Mgmt.
Purchasing
Info. Services
Pers./Benefits
Risk/Insurance
Municipal Court
of Record
Lee Koontz
Fire Chief
Suppression
Ambulance
Fire educ.
Fire prevent.
Fire Marshal
Emergency Mgmt.
st
City Managers Office
SECTION
AFFILIATIONS
SUMMIT INTERNATIONAL
ASSOCIATES, INC.
ASSOCIATED REGIONAL
ACCOUNTING FIRMS
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
WEAVER AND TIDWELL
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
INDEPENDENT AUDITOR'S REPORT
DALLAS OFFICE
THREE FOREST PLAZA, 17TH FLOOR
12221 MERIT DRIVE
DALLAS, TEXAS 75251
(214) 490-1070
We have audited the accompanying general purpose financial statements of the City of Euless,
Texas as of and for the year ended September 30, 1995, 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, 1995, 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.
Fort Worth, Texas
November 30, 1995
2646
WEAVER AND TIDWELL, L.L.P.
1
COMBINED FINANCIAL STATEMENTS - OVERVIEW
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30,1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
ASSETS AND OTHER DEBITS Fund Fund Fund Fund
Cash and cash equivalents --Note 2 $ $114,565 $45,063 $61,033
Short-term investments --Note 2 4,354,781 8,173,441 208,139 1,775,075
Receivables:
Property taxes 238,437 95,956
Accounts receivable and unbilled revenue 220,419
Accrued interest 74,687 185,796 28,373
Due from other funds --Note 8 864,301 812
Due from other governments 1,568
Prepaids and deposits 34,982
Inventories, at cost 13,721
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 long-term debt
Amount to be provided for retirement
of general long-term debt
Total assets and other debits $5,802,896 $8,473,802 $349,970 $1,864,481
The Notes to the Financial Statements are an integral part of this statement.
3
(1 of 2)
Proprietary Fiduciary Totals
Fund Types Fund Type Account Groups (Memorandum only)
Internal General General
Enterprise Service Agency Fixed Long-term
Funds Funds Funds Assets Debt 1995 1994
$153,045 $55,323 $3,058 $ $ $432,087 $1,076,094
5,489,296 820,166 2,709,772 23,530,670 24,304,137
334,393 355,032
1,298,892 1,519,311 1,617,016
110,234 399,090 138,646
218,601 474,786 1,558,500 350,716
1,568 35,166
642
2,661,802
16,019,888
35,624 18,692
13,721 14,327
2,661,802 3,106,429
16,019,888 11,661,850
20,691,662 756,116 21,447,778 21,089,414
137,918 137,918 151,650
1,103,280 1,103,280 1,093,208
17,732, 009 17,732,009 18,888,136
$30,762,092 $2,106,391 $2,712,830 $16,019,888 $18,835,289 $86,927,639 $83,900,513
4
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1895
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
Governmental Fund Types
Special Debt Capital
LIABILITIES, FUND EQUITY General Revenue Service Projects
AND OTHER CREDITS Fund Fund Fund Fund
Liabilities:
Overdrafts payable $ $ $ $
Accounts payable 656,521 668,034 20,318
Accrued insurance claims
Accrued salaries and wages 280,249
Restricted customer and escrow deposits 750
Accrued interest
Due to other funds —Note 8 188,111 570,343 1,046
Bonds and certificates of obligation
payable --Notes 3 and 4
Capital leases payable --Notes 3 and 14
Deferred revenue 244,076 55,978
Compensated absences --Note 3
Deferred compensation benefits payable --Note 12
Due to other governments 3,201
Total liabilities 1,372,158 1,238,377 55,978 22,114
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 Management
Computer
Emergency
Recycling
Unreserved
Fund balances:
Reserved for:
Debt service 809,288 293,992
Computer 75,000
Park improvements 1,094
Drug enforcement
Recycling 3,183
Development agreements 1,296,601
Prepaids 34,982
Betterment 22,092
Unreserved:
Designated for:
Contingency 510,000
Emergency 500,000
Undesignated 3,284,387 6,426,137 545,766
Total fund equity and other credits 4,430,738 7,235,425 293,992 1,842,367
Total liabilities, fund equity and other credits $5,802,896 $8,473,802 $349,970 $1,864,481
The Notes to the Financial Statements are an integral part of this statement.
5
(2 of 2)
Proprietary Fiduciary Totals
Fund Types Fund Type Account Groups (Memorandum only)
Internal General General
Enterprise Service Agency Fixed Long-term
Funds Funds Funds Assets Debt 1995 1994
$ $ $ $ $ $0 $1,920,155
747,927 59,025 2,151,825 1,022,226
70,000 70,000 70,000
78,631 358,880 428,553
847,300 848,050 781,694
61,919 61,919 65,686
736,395 62,605 1,558,500 350,716
5,310,000 18,266,586 23,576,586 25,086,586
68,967 68,967 137,443
88,273 388,327 390,445
499,736 499,736 427,315
2,654,685 2,654,685 2,428,950
58,145 61,346 3,201
7,870,445 191,630 2,712,830 0 18,835,289 32,298,821 33,112,970
16,019,888 16,019,888 11,661,850
9,253,944 9,253,944 8,856,669
894,479 894,479 1,048,936
41,000 41,000 41,000
200,000 200,000 200,000
200,000 200,000 200,000
75,000 75,000
500,000 500,000 500,000
4,773 4,773 6,898
12,163,451 1,473,761 13,637,212 12,789,622
1,103,280 1,093,208
75,000
1,094 1,094
0 205,367
3,183 4,909
1,296,601 1,356,219
34,982 17,053
22,092 50,912
510,000 510,000
500,000 500,000
10,256,290 11,743,806
22,891,647 1,914,761 0 16,019,888 0 54,628,818 50,787,543
$30,762,092 $2,106,391 $2,712,830 $16,019,888 $18,835,289 $86,927,639 $83,900,513
6
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Special
General Revenue
Fund Fund
Revenues:
General property tax $4,534,764 $
Gross receipts tax 2,172,055 650,542
General sales tax 3,038,370 1,519,185
Fines and fees 1,941,505
Licenses and permits 420,624
Interest income 362,247 587,697
Intergovernmental 50,912
Other revenues 598,913 105,776
Total revenues 13,119,390 2,863,200
Expenditures:
Current:
City council/administrative
Finance
Police department
Fire department
Administrative services
Planning and development
Parks/recreation/library
Street maintenance
Betterment
Staff services
Nondepartmental
Debt service:
Principal
Interest and fiscal charges
Capital outlay and maintenance
Total expenditures
331,479
544,834
4,146,084
2,561,972
459,165
551,605
1,430,955
575,608
53,485
306,429
1,032,205
11,993,821
Excess (deficiency) of revenues over expenditures 1,125,569
2,643,400
616,423
2,855,658
6,115,481
(3,252,281)
Other financing sources (uses)
Net proceeds from issuance of sales tax revenue bonds
Operating transfers in 537,119
Operating transfers out (185,951)
Capital leases
Total other financing sources (uses) 351,168 0
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses 1,476,737 (3,252,281)
Fund balances, beginning of year 2,954,001 10,487,706
Fund balances, end of year $4,430,738 $7,235,425
The Notes to the Financial Statements are an integral part of this statement.
7
Debt
Service
Fund
$1,617,225
43,043
1,660,268
Capital
Projects
Fund
1995
Totals
(Memorandum Only)
$ $6,151,989
2,822,597
4,557,555
1,941,505
420,624
81,704 1,074,691
40,068 90,980
104,824 809,513
226,596 17,869,454
1994
$6,077,254
2,397,221
4,288,714
1,592,194
364,617
300,294
227,464
493,024
15,740,782
331,479 309,325
544,834 793,537
4,146,084 4,070,717
2,561,972 2,525,086
459,165 475,201
3,195,005 1,005,443
1,430,955 1,514,311
575,608 526,136
53,485 18,798
306,429
1,032,205 1,022,626
1,150,000 1,150,000 1,085,406
500,196 1,116,619 554,714
326,169 3,181, 827 331,862
1,650,196 326,169 20,085,667 14,233,162
10,072 (99,573) (2,216,213) 1,507,620
0 8,855,195
270,000 807,119 638,733
(85,000) (270,951) (101,553)
80,034
0 185,000 536,168 9,472,409
10,072 85,427 (1,680,045) 10,980,029
283,920 1,756,940 15,482,567 4,502,539
$293,992 $1,842,367 $13,802,522 $15,482,568
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, 1995
Actual
General Fund Special Revenue Funds
Variance Variance
Favorable Favorable
Budget (Unfavorable) Actual Budget (Unfavorable)
General property tax:
Current and delinquent
taxes $4,504,047 $4,438,831 $65,216 $ $ $
Penalty and interest 30,717 30,000 717
4,534,764 4,468,831 65,933
Gross receipts tax:
Southwestern Bell Telephone
Company 573,901 573,901
Texas Utilities Electric
Company 1,186,230 1,186,230
Lone Star Gas Company 129,830 125,000 4,830
Cable TV 144,869 140,000 4,869
City Garbage Service 80,206 75,000 5,206
Others 57,019 57,500 (481) 650,542 273,500 377,042
2,172,055 2,157,631 14,424 650,542 273,500 377,042
General sales tax 3,038,370 3,100,000 (61,630) 1,519,185 1,560,000 (40,815)
Fines and fees:
Franchise lees 459,764 452,405 7,359
Municipal Court fines 1,309,921 1,210,000 99,921
Dog licenses and pound
fees 15,125 13,000 2,125
Ambulance fees 156,695 185,000 (28,305)
1,941,505 1,860,405 81,100
0
0 0
Licenses and permits:
Building permits 189,488 150,000 39,488
Miscellaneous permits 197,055 171,100 25,955
Electric licenses 34,081 28,000 6,081
420,624 349,100 71,524 0 0 0
Interest income 362,247 340,000 22,247 587,697 556,617 31,080
Intergovernmental 50,912 44,060 6,852
Other revenues:
Library receipts 12,026 12,200 (174)
Rental income 24,760 25,700 (940)
Texas Court cost service
fees 44,580 44,000 580
Jail income 114,472 90,000 24,472
Swimming pools 17,220 18,500 (1,280)
Miscellaneous income 385,855 409,121 (23,266) 105,776 1,769,129 (1,663,353)
598,913 599,521 (608) 105,776 1,769,129 (1,663,353)
Total revenues $13,119,390 $12,919,548 $199,842 $2,863,200 $4,159,246 ($1,296,046)
The Notes to the Financial Statements are an integral part of this statement.
9
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, 1995
Actual
General Fund Special Revenue Funds
Variance Variance
Favorable Favorable
Budget (Unfavorable) Actual Budget (Unfavorable)
Expenditures:
Current:
City council/administration $331,479 $334,587 $3,108 $ $ $
Finance 544,834 560,165 15,331
Police department 4,146,084 4,215,691 69,607
Fire department 2,561,972 2,626,646 64,674
Administrative services 459,165 473,886 14,721
Street maintenance 575,608 581,170 5,562
Planning and development 551,605 554,249 2,644 2,643,400 5,311,701 2,668,301
Parks/recreation/library 1,430,955 1,445,742 14,787
Betterment 53,485 64,260 10,775
Staff services 306,429 333,524 27,095
Nondepartmental 1,032,205 1,421,873 389,668
Debt Service
Principal payments
Interest payments 616,423 616,423
Capital Outlay and maintenance 2,855,658 8,036,559 5,180,901
Total expenditures 11,993,821 12,611,793 617,972 6,115,481 13,964,683 7,849,202
Excess (deficiency) of
revenues over expenditures 1,125,569 307,755 817,814 (3,252,281) (9,805,437) 6,553,156
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources
Excess (deficiency) of
revenues and other
financing sources over
expenditures and other
financing uses
Fund balance, beginning of year
Fund balance, end of year
537,119 529,671 7,448
(185,951) (185,951)
351,168 529,671 (178,503)
0
0 0
1,476,737 837,426 639,311 (3,252,281) (9,805,437) 6,553,156
2,954,001 2,954,001 10,487,706 10,487,706
$4,430,738 $3,791,427 $639,311 $7,235,425 $682,269 $6,553,156
10
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Enterprise
Funds
Operating revenues:
Water service $5,466,477
Sewer service 3,072,367
Drainage fees 337,163
Recreation fees 614,128
Insurance premiums
Service fees and miscellaneous 414,179
Total operating revenues 9,904,314
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Geographic Info
Service center --Note 7
Drainage
Recreation classes
Insurance costs --Note 10
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment income
Gain (loss) on sale of equipment
Interest on bonds
Rental income
Total nonoperating revenues, net
Income before operating transfers
Operating transfers in
Operating transfers out
Net income
Add depreciation on fixed assets acquired
with contributed capital --Note 9 417,871
Increase in retained earnings
Retained earnings, beginning of year
Retained earnings, end of year
671,810
12,965,893
Internal Totals
Service (Memorandum Only)
Funds 1995 1994
$ $5,466,477 $5,448,097
3,072,367 3,045,524
337,163 342,835
614,128 472,679
1,731,000 1,731, 000 1,794,566
263,428 677,607 771,318
1,994,428 11,898,742 11,875,019
424,448 338,413 762,861 913,514
3,436,407 3,436,407 2,981,299
403,616 403,616 308,762
152,557 152,557 189,859
1,163,696 1,163,696 1,296,503
1,410,328 1,410,328 1,578,317
83,894 83,894
513,183 513,183 513,119
101,286 101,286 98,796
628,319 628,319 426,986
1,448,465 1,448,465 1,236,953
922,350 230,871 1,153,221 1,038,345
13,732 13,732 13,732
9,253,816 2,017,749 11,271,565 10,596,185
650,498 (23,321) 627,177 1,278,834
409,010 94,508 503,518 369,969
0 4,925
(311,523) (311,523) (329,235)
65,133 65,133 35,000
97,487 159,641 257,128 80,659
747,985 136,320 884,305 1,359,493
54,534 54,534 50,000
(494,046) (96,656) (590,702) (587,179)
253,939 94,198 348,137 822,314
417,871 430,870
94,198 766,008 1,253,184
1,820,563 13,533,272 13,533,272
$13,637,703 $1,914,761
The Notes to the Financial Statements are an integral part of this statement.
$14,299,280 $14,786,456
11
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
(1 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 1995 1994
OPERATING ACTIVITIES
Operating income (loss) $650,498 ($23,321) $627,177 $1,278,834
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization expenses 936,082 230,871 1,166,953 1,052,077
(Increase) decrease due to net changes in:
Accounts Receivable and unbilled revenue 115,710 115,710 144,271
Due from other funds 100,000 (474,786) (374,786) 100,000
Prepaids and deposits 997 997 (149)
Due from other governments 11,250 11,250 (11,250)
Short term investments 3,810 3,810 (175,031)
Increase (decrease) due to net change in:
Overdrafts payable (1,043,872) (1,043,872) 31,295
Accounts payable 217,469 19,210 236,679 385,727
Accrued salaries and wages (11,027) (11,027) (17,674)
Customer and escrow deposits 77,695 77,695 86,351
Deferred revenue (7,800) (7,800) (7,800)
Total adjustments 396,504 (220,895) 175,609 1,587,817
Net cash provided by (used in) operating activities
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Principal paid on bonds
Operating transfers in
Operating transfers out
Net cash used in noncapital
financing activities
1,047,002 (244,216) 802,786 2,866,651
(315,291) (315,291) (332,905)
(360,000) (360,000) (350,000)
54,534 54,534 50,000
(494,046) (96,656) (590,702) (587,179)
(1,169,337) (42,122) (1,211,459) (1,220,084)
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 815,147 815,147 204,761
Purchase of utility plant and equipment
in service (1,358,757) (125,383) (1,484,140) (2,098,065)
Proceeds from sale of utility plant in
service 34,941 34,941 4,925
Net cash used in capital and related
financing activities
(543,610) (90,442) (634,052) (1,888,379)
The Notes to the Financial Statements are an integral part of this statement.
12
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
INVESTING ACTIVITIES
Purchase of investment securities
Proceeds from sale or maturity of
investment securities
Interest received on investments
Rental payments received
Net cash provided by investing activities
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(2 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 1995 1994
($894,873) $ ($894,873) ($1,556,483)
1,280,677 1,280,677 1,340,525
371,313 94,508 465,821 341,863
35,000
757,117 94,508 851,625 160,905
91,172 (282,272) (191,100) (80,907)
1,039,318 337,595 1,376,913 1,457,820
$1,130,490 $55,323 $1,185,813 $1,376,913
Reconciliation of cash to balance sheet:
Cash - current $153,045 $55,323
Cash - restricted assets 977,445
Cash and cash equivalents $1,130,490 $55,323
Restricted assets:
Cash $977,445
Investments 1,665,156
Interest receivable 19,201
Total restricted assets $2,661,802
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) is legally obligated or has otherwise assumed
the obligation to finance the deficits of, or provide financial support to, the organization; or (c)
is obligated in some manner for the debt of the organization.
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 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. The
Corporation's governing body is substantially the same as the governing body of the City of
Euless. 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
appainted 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
14
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Reporting Entity - continued
distributed to the City of Euless, Texas. The Corporation provides all of its services 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).
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.
15
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
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.
Budgetary Data
The City Council follows these procedures in establishing budgetary data reflected in the financial
statements:
16
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Budgetary Data - continued
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. The legal level of control is at the fund level.
5. A budget is legally adopted for the General Fund and Special Revenue Funds on a basis
consistent with generally accepted accounting principles. Formal budgetary integration is
employed as a management control device during the year for the General Fund and Special
Revenue Funds. Appropriations and encumbrances lapse at year-end.
6. Formal budgetary integration is not employed for the Debt Service Funds because effective
budgetary control is alternatively achieved through general obligation bond indenture
provisions.
7. Budgetary data for the Capital Projects Funds has not been presented in the accompanying
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.
8. Appropriated budgets for the Proprietary Funds are also adopted, but have not been
presented since reporting on such budgets is not legally required.
Cash, Cash Equivalents and Investments
Substantially all operating cash, cash equivalents, and short-term investments are maintained
in consolidated cash, cash equivalents, and investment accounts. Related interest income is
allocated to the various funds based primarily on ownership by each fund of specific
investments. Cash equivalents consist of highly liquid investments with original maturities of
three months or less.
17
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Cash, Cash Equivalents and Investments - continued
For purposes of the combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $977,445 and
$906,716 at September 30, 1995 and 1994, 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.
The 1994 cash and cash equivalent numbers for the Internal Service funds have been restated.
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 $.616 per $ 100 of assessed
valuation ($.6186 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 than 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.
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
accounting principles. Neither is such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
19
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Interfund Transactions
Quasi -external transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures/expenses in
the reimbursing fund and as a reduction of expenditures/expenses in the fund reimbursed.
All other interfund transactions, 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, 1995, the ledger balances of the City's bank deposits totaled $1,409,532
and the bank balances were $1,373,337. Of the bank balances, $1,373,337 were protected
by federal depository insurance or by collateral held by the City's agent in the City's name.
Investments
At September 30, 1995, 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)
collateralized with securities held by the pledging financial institution's trust department or agent
in the City's name; or (3) uncollateralized for which the securities are held by the financial
institution, or by its trust department or agent but not in the City's name, as follows:
U. S. Securities
Deferred
Compensation
Agency Fund
Investments
1
Cateaories
2
3
Carrying Market
Amount Value
$5,337,705 $17,203,435 $22,541,140 $23,161,681
2,654,686 2,654,686
$25,195.826 $25,816,367
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.
20
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT
A summary of long-term debt transactions for the year ended September 30, 1995, is as follows:
General Long -Term Debt
Account Group:
General Obligation Bonds
Certificates of Obligation
Sales tax revenue bonds
Capital leases
Compensated absences
Proprietary Fund Types:
Water and Sewer
Revenue Bonds
Drainage Utility
Revenue Bonds
Balance
Beginning
of Year
Increase
$ 9,296,586 $
1,265,000
8,855,000
137,443
427,315
$19,981,344
Balance
Beginning
of Year
$ 3,620,000 $
2,050,000
$ 5,670,000 $
72,421
$ 72,421
Increase
Decrease
$ 985,000
165,000
68,476
Balance
End
of Year
$ 8,31 1,586
1,100,000
8,855,000
68,967
499,736
$1 ,218,476 $18,835.289
Decrease
Balance
End
of Year
$ 335,000 $ 3,285,000
25,000 2,025,000
$ 360,000 $ 5,310.000
Debt outstanding at September 30, 1995 consists of the following:
General Obligation Bonds
Certificates of Obligation
Capital leases
Water and Sewer
Revenue Bonds
Drainage Utility
Revenue Bonds
Sales Tax
Revenue Bonds
Range of
Interest Rates
2.80 to 10.00%
5.40 to 7.40%
5.97 to 7.34%
Range of
Interest Rates
4.50 to 10.75%
4.75 to 6.70%
5.20 to 8.10%
Outstanding
Balance
$8,311,586
1,100,000
68,967
Outstanding
Balance
$ 3,285,000
2,025,000
8,855,000
Current
Maturities
$ 1,050,000
195,000
18,976
Current
Maturities
$ 365,000
25,000
Long -Term
Maturities
$7,261,586
905,000
49,991
Long -Term
Maturities
$2,920,000
2,000,000
8,855,000
21
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
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.
Sales Water and Utility
General Certifi- Tax Sewer Drainage
Obligation cates of Revenue Capital Revenue Revenue
Bonds Obligation Bonds Leases Bonds Bonds
Total
1996 $ 1,396,540 $ 260,127 $ 809,288 $22,024 $ 535,205 $ 152,070 $ 3,175,254
1997 1,416,890 256,942 798,228 19,711 521,480 155,732 3,168,983
1998 1,303,987 248,232 791,358 19,711 527,355 224,082 3,114,725
1999 1,219,060 248,812 778,273 19,711 496,641 223,432 2,985,929
2000 1,144,455 166,333 769,378 505,871 222,342 2,808,379
2001-2005 4,959,721 116,325 3,797,705 1,504,325 1,140,798 11,518,873
2006-2010 799,722 3,799,488 1,165,128 5,764,338
2011-2015 3,828,900 3,828,900
12,240,375 1,296,771 15,372,617 81,157 4,090,877 3,283,584 36,365,381
Less interest 3,928,789 196,771 6,517,617 12,190 805.877 1,258,584 12,719,828
Principal $ 8.311,586 $1,100,000 $ 8,855,000 $68.967 $3.285,000 $2,025,000 $23,645,553
General Obligation Bonds authorized and unissued as of September 30, 1995, amounted to
$300,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1995,
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.
At September 30, 1995, $1,730,000 of the defeased bonds in the 1991 refunding are still
outstanding.
Water and Sewer Revenue Bonds and Refunding Bonds and Drainage Utility Revenue Bonds are
payable solely from and equally secured by a first lien on and pledge of the net revenue of the
City's combined waterworks and sanitary sewer system and the net revenues of the City's
drainage utility system, respectively.
In accordance with the water and sewer revenue and refunding bond ordinances, the following
special reserves were established:
Reserve for revenue bond debt service - to be used for retirement of the current portion of
principal and interest payments due.
22
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
Reserve for revenue bond retirement - to be used for payment of principal and interest on bonds
at any time where there is not sufficient money available in the revenue bond debt service fund.
No payments are required into this fund after accumulating therein an amount equal to the
average annual principal and interest requirements of the bonds outstanding.
Reserve for 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, 1995. 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.
The City issued Water and Sewer Revenue Certificates of Obligation, Series 1995, and Golf Course
Surplus Revenue Certificates of Obligation, Series 1995, for $5,200,000 and $9,700,000,
respectively, on November 13, 1995. Bond issuance costs were $98,036.
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, 1995, the balance in the
property sales proceeds account was $346,641 and is included in restricted assets in the
accompanying balance sheet.
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50 year contract dated September 25, 1973, with the Trinity River
Authority of Texas (the "TRA") whereby the TRA agrees to provide supplemental water and
sewage treatment for consideration. Payments by the City are based on metered usage at rates
designed to charge the City a prorata share of the TRA's annual operating and maintenance
expenses, principal and interest requirement on bonds issued by the TRA. Payments under this
contract approximated $4,295,000 in 1995 and are included as operating expenses of the water
and sewer fund. The payments increased approximately $575,000 in comparison to 1994.
23
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES - continued
The City is involved in a number of lawsuits arising in the ordinary course of business. In the
opinion of the City's legal counsel and management, any liability resulting from such litigation
would not be material in relation to the City's financial position.
NOTE 6. FIXED ASSETS
The following is a summary of changes in the general fixed assets account group during the fiscal
year:
Balance Balance
September 30, September 30,
1994 Additions Deletions 1995
Land $ 871,250 $2,219,967 $ $ 3,091,217
Buildings 4,927,995 1,039,291 5,967,286
Improvements
other than buildings 1,660,922 885,159 2,546,081
Machinery and equipment 4,201,683 213,621 4,415,304
$1 1,661,850 $4,358,038 $ $16,019,888
The following is a summary of utility plant and equipment in service at September 30, 1995
included in the proprietary funds:
Enterprise Funds
Golf Internal
Water and Drainage Course Service
Sewer Fund Utility Fund Fund Funds
Land $ 1,528,966 $ $340,000 $
Equipment 1,160,630 936,279 1,279,737
Waterworks and
sanitary sewer system 26,375,668
Construction in progress 1,079,941 1,488,785 211,460
30,145,205 2,425,064 551,460 1,279,737
Less accumulated
depreciation 12,397,224 32,843 523,621
$17,747,981 $2,392,221 $551,460 $ 756,116
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.
24
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 8. INTERFUND ASSETS/LIABILITIES:
Receivable Fund
General
Water and sewer
Equipment Replacement
Insurance Fund
Risk Management
Debt service
Payable Fund
Risk Management
Water and Sewer
General
Risk Management
Water and Sewer
Water and Sewer
Water and Sewer
General
NOTE 9. CONTRIBUTED CAPITAL
Amount
$ 31,303
832,998
187,299
31,302
111,977
162,608
200,201
812
$1,558,500
During fiscal 1995, contributed capital of the Enterprise Funds increased by developer's
contributions in aid to construction of $815,147 and decreased $417,871 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 $1,1 18,613. During fiscal 1995, the City and City's employees contributed
approximately $798,475 and $359,029 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, 1995 and
are accounted for in the Internal Service Fund.
The City is also self -insured for workers' compensation claims. Contributions are made to a
separate Risk Management Fund by other funds and are available to pay claims, claim reserves and
administrative costs of the program. An excess coverage insurance policy covers individual claims
in excess of $300,000. During 1995, the City contributed approximately $253,496 to the fund
for workers' compensation.
25
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
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 650 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 as if the sum of the employee's accumulated contributions with interest and the
employer -financed monetary credits with interest were used to purchase an annuity.
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
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
finances the currently accruing monetary credits due to city matching percent, which are the
obligation of the city as of an employee's retirement date, not at the time the employee's
contributions are made. The normal cost contribution rate is the actuarially determined percent
of payroll necessary to satisfy the obligation of the City to each employee at the time his
retirement becomes effective. The prior service contribution rate amortizes
26
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
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 1995. 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 1995 was $9,331,144 and the City's contributions were based
on a payroll of $9,052,740. Both the City and the covered employees made the required
contributions, amounting to $ 1,060,745, normal cost of $842,602 and $ 269,670 of unfunded
actuarial liability (11.19% of covered payroll for the months in calendar year 1994, 8.64%
normal cost plus 2.55% to amortize the unfunded actuarial liability, and 11.92%for the months
in calendar year 1995, 9.03% normal cost plus 2.89% to amortize the unfunded actuarial
liability) for the City and $633,690 (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 1995 by 0.17% of payroll. There were no related -party transactions.
Funding Status and Progress
Even though the substance of the City's plan is not to provide a defined benefit in some form,
some additional voluntary disclosure is appropriate due to the nontraditional nature of the
defined contribution plan which has an initial unfunded pension benefit obligation due to
monetary credits granted by the City for services rendered before the plan began and which can
have additions to the unfunded pension benefit obligation through the periodic adoption of
increases in benefit credits and benefits. Statement No. 5 of the Governmental Accounting
Standards Boards (GASB 5) defines pension benefit obligation as a standardized disclosure
measure of the actuarial present value of pension benefits, adjusted for the effects of projected
salary increases, estimated to be payable in the future as a result of employee service to date.
The measure is intended to help users assess the funding status of public employee pension
plans, assess progress made in accumulating sufficient assets to pay benefits when due, and
make comparisons among public employee pension plans.
The pension benefit obligation shown below is similar in nature to the standardized disclosure
measure required by GASB 5 for defined benefit plans except that there is no need to project
salary increases since the benefit credits earned for service to date are not dependent upon
future salaries. The calculations were made as part of the annual actuarial valuation as of
December 31, 1994. 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 98.6% of book value as of December 31,
1994.
27
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Funding Status and Progress - continued
Pension Benefit Obligation
Annuitants currently receiving benefits $ 2,189,047
Terminated employees 3,009,135
Current Employees
Accumulated employee contributions
included allocated invested earnings 7,324,765
Employer -financed vested 13,116,242
Employer -financed nonvested 1,521,615
Total $27,160.804
Net Assets Available for Benefits, at Book Value $20,958,598
Unfunded Pension Benefit Obligation $ 6,202,206
The book value of assets is amortized cost for bonds and original cost for short-term securities
and stocks. The actuarial assumptions used to compute the actuarially determined City
contribution rate are the same as those used to compute the pension benefit obligation. The
numbers above reflect the adoption of changes in the plan since the previous actuarial valuation,
which had the effect of increasing the pension benefit obligation by $282,225.
Trend information for the past three years for TMRS is as follows:
Net Assets Available
For Benefits as a Unfunded Pension City Contribution
Percent of Pension Benefit Obligation as a as a Percent of
Year Benefit Obligation Percent of Covered Payroll Covered Payroll
1993 80.92% 46.25% 11.40%
1994 76.62% 62.43% 1 1.31 %
1995 77.16% 66.47% 11.37%
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.
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.
28
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 12. DEFERRED COMPENSATION PLAN - continued
Assets of the plan are invested primarily in various mutual funds. The current market value of the
funds' investments at September 30, 1995 was $2,654,685. The Plan has no unfunded liabilities.
AU 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 four 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. The Golf
Course Fund provides services for the Golf Course.
Segment information for the City's Enterprise Funds is as follows:
Operating revenues
Depreciation
Operating income (loss)
Operating transfers out
Net income (loss)
Current capital contributions
Property, plant and equipment:
Additions
Deletions
Total Assets
Net working capital
Long-term debt,
including current portion
Total Equity
Water and
Sewer Fund
$ 8,953,023
892,814
464,319
461,637
214,467
263,687
629,125
27,526,264
5,502,193
3,285,000
21,710,279
Drainage
Utility Fund
Recreation Golf
Classes Course
$ 337,163 $ 614,128 $
29,536
200,370 (14,191)
16,709 15,700
63,929 (24,457)
1,189,476
2,669,381 14,987
193,541 14,987
2,025,000
617,885 12,023
551,460
Total
$ 9,904,314
922,350
650,498
494,046
253,939
815,147
1,818,601
551,460 30,762,092
5,710,721
5,310,000
551,460 22,891,647
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, 1995.
1996 $22,024
1997 19,711
1998 19,711
1999 19,711
Total minimum lease payments 81,157
Less: amount representing interest 12,190
Present value of future minimum lease payments $68,967
30
INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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.
Fort Worth DEA Task Force Fund - to account for the revenues and expenditures
received from collection of confiscated drug money. Money is distributed to various
other cities that are also involved in the collection process.
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
Police
Drug Half DEA
Hotel/ Enforce- Penny Task
Motel ment Sales Tax Force Totals
Fund Fund Fund Fund 1995 1994
ASSETS
Cash and cash equivalents $12,926 $101,333 $ $306 $114,565 $142,630
Short-term investments 403,585 296,286 7,468,061 5,509 8,173,441 10,399,419
Accounts receivable 2,310
Accrued interest receivable 622 185,174 185,796 16,435
Total assets
LIABILITIES AND FUND EQUITY
$417,133 $397,619 $7,653,235 $5,815 $8,473,802 $10,560,794
LIABILITIES:
Accounts payable $667 $2,687 $664,680 $ $668,034 $73,087
Due to other funds 570,343 570,343
Total liabilities 667 2,687 1,235,023 0 1,238,377 73,087
FUND EQUITY:
Fund Balances:
Reserve for debt service 809,288 809,288 809,288
Reserve for drug enforcement 205,367
Unreserved, undesignated 416,466 394,932 5,608,924 5,815 6,426,137 9,473,052
Total fund equity 416,466 394,932 6,418,212 5,815 7,235,425 10,487,707
Total liabilities and fund equity $417,133 $397,619 $7,653,235 $5,815 $8,473,802 $10,560,794
33
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Police
Drug Half DEA
Hotel/ Enforce- Penny Task
Motel ment Sales Tax Force Totals
Fund Fund Fund Fund 1995
1994
Revenues:
Gross receipts tax $277,578 $372,964 $ $ $650,542 $485,832
General sales tax 1,519,185 1,519,185 1,429,572
Interest income 12,795 13,187 560,787 928 587,697 36,838
Other revenues 2,613 18,118 85,045 105,776 31,258
Total revenues 292,986 386,151 2,098,090 85,973 2,863,200 1,983,500
Expenditures:
Planning and development 88,333 115,635 2,359,274 80,158 2,643,400 164,940
Issuance costs 0 76,491
Parks 0 83,322
Library 0 39,431
Economic development 0 58,406
Debt service
Interest and fiscal charges 616,423 616,423 0
Capital outlay
and maintenance 3,281 80,950 2,771,427 2,855,658 95,487
Total expenditures 91,614 196,585 5,747,124 80,158 6,115,481 518,077
Other financing sources:
Net proceeds from issuance
of sales tax revenue bonds 0 8,855,195
Total other
financing sources 0 0 0 0 0 8,855,195
Excess of revenues and
other financing sources
over expenditures
Fund balance (deficit),
beginning of year
Fund balance, end of year
201,372 189,566 (3,649,034) 5,815 (3,252,281) 10,320,618
215,094 205,366 10,067,246 10,487,706 167,089
$416,466 $394,932 $6,418,212 $5,815 $7,235,425 $10,487,707
34
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1995
Hotel/Motel Fund Police/Drug Enforcement Fund
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Revenues:
Gross receipts tax $277,578 $273,500 $4,078 $372,964 $300,000 $72,964
General sales tax
Interest income 12,795 8,000 4,795 13,187 8,000 5,187
Other revenues 2,613 2,613
Total revenues 292,986 281,500 11,486 386,151 308,000 78,151
Expenditures:
Planning and development 88,333 105,256 16,923 115,635 167,085 51,450
Debt Service
Capital outlay
and maintenance 3,281 3,000 (281) 80,950 90,123 9,173
Total expenditures 91,614 108,256 16,642 196,585 257,208 60,623
Other financing sources:
Net proceeds from issuance
of sales tax revenue bonds
Operating transfer out
Total other
financing sources 0 0 0 0 0 0
Excess of revenues and
other financing sources
over expenditures 201,372 173,244 28,128 189,566 50,792 138,774
Fund balance,
beginning of year 215,094 215,094 205,366 205,366
Fund balance, end of year $416,466 $388,338 $28,128 $394,932 $256,158 $138,774
35
Half Penny Sales Tax Fund DEA Task Force Fund
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ $ $ $ $ $
1,519,185 1,560,000 (40,815)
560,787 541,000 19,787 928 874 54
18,118 18,118 85,045 80,399 4,646
2,098,090 2,119,118 (21,028) 85,973 81,273 4,700
2,359,274 2,289,772 (69,502) 80,158 79,068 (1,090)
616,423 616,423 0
2,771,427 9,811,281 7,039,854 1,091 1,091
5,747,124 12,717,476 6,970,352 80,158 80,159 1
0 0 0 0 0 0
(3,649,034) (10,598,358) 6,949,324 5,815 1,114 4,701
10,067,246 10,067,246
$6,418,212 ($531,112) $6,949,324 $5,815 $1,114 $4,701
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.
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUND
COMBINING BALANCE SHEET
SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
Street
Park Improvement
Improvements and Drainage
Certificates of Street Certificates
Obligation Assessments of Obligation
Fund (1990) Fund Fund (1990)
ASSETS
Cash and cash equivalents $18,177 $ $5,663
Short-term investments 309,959
Accrued interest receivable
Due from other governments
Total assets $18,177 $0 $315,622
LIABILITIES AND FUND EQUITY
Accounts payable
Due to other funds
Customer and escrow deposits
Deferred revenue
$
490
$ $20,318
1,046
Total liabilities 490 1,046 20,318
Fund Balances:
Reserve for development
Agreements
Unreserved, undesignated 17,687 (1,046) 295,304
Total fund equity 17,687 (1,046) 295,304
Total liabilities and fund equity $18,177 $0 $315,622
38
Equipment Fire Department
Contractual Certificates of Developers'
Obligations Obligation Contribution Totals
Fund (1992) Fund (1990) Fund 1995 1994
$ $ $37,193 $61,033 $285,263
1,465,116 1,775,075 1,479,110
28,373 28,373 4,656
0 23,916
$0 $0 $1,530,682 $1,864,481 $1,792,945
$ $ $ $20,318 $0
1,046 0
260 750 12,089
0 23,916
0 0 260 22,114 36,005
0
$0
1,296,601 1,296,601 1,356,219
233,821 545,766 400,721
0 1,530,422 1,842,367 1,756,940
$0 $1,530,682 $1,864,481 $1,792,945
39
CITY OF EULESS, TEXAS
CAPITAL PROJECTS FUND
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Revenues:
Interest income
Intergovernmental
Assessments
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 (1990) Fund Fund (1990)
$
$ $12,325
40,068
40,068 0 12,325
24,035 302,134
16,033 0 (289, 809)
270,000
(85,000)
0 (85, 000) 270,000
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses 16,033 (85,000) (19,809)
Fund balances, beginning of year 1,654 83,954 315,113
Fund balances, end of year $17,687 ($1,046) $295,304
40
Equipment Fire Department
Contractual Certificates of Developers'
Obligations Obligation Contribution Totals
Fund (1992) Fund (1990) Fund 1995
1994
$ $ $69,379 $81,704 $38,517
40,068 0
104,824 104,824 184,753
0 0 174,203 226,596 223,270
0
0
0
$0
326,169 236,375
0 174,203 (99,573) (13,105)
270,000 101,553
(85,000) (98,520)
0 0 185,000 3,033
0 174,203 85,427 (10,072)
1,356,219 1,756,940 1,767,012
$0 $1,530,422 $1,842,367 $1,756,940
41
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.
Golf Course Fund - to account for the operation and maintenance of the golf course,
supported primarily by user charges.
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
Water and Drainage Recreation Golf Course Totals
Sewer Fund Utility Fund Classes Fund 1995
1994
ASSETS
Current assets:
Cash and cash equivalents $43,420 $94,638 $14,987 $ $153,045 $168,507
Short-term investments 5,409,198 80,098 5,489,296 5,360,533
Accounts and unbilled revenue
less allowance for uncollectibles
of $1,463 for water and sewer
and $141,080 for drainage utility 1,280,058 18,834 1,298,892 1,414,602
Accrued interest receivable 110,234 110,234 71,748
Prepaids and deposits 842 642 1,639
Due from other governments 0 11,250
Due from other funds 218,601 218,601 318,601
Total current assets 7,062,153 193,570 14,987 0 7,270,710 7,346,880
Restricted assets:
Revenue bond debt service:
Cash with paying agent 8,638 8,638 41,876
Revenue bond retirement:
Investments with paying
agent, at cost 609,227 609,227 618,219
Revenue bond emergency:
Short-term investments 500,000 500,000 500,000
Property sale proceeds account:
Investments with paying
agent, at cost 346,641 346,641 467,226
Capital projects account:
Cash and cash equivalents 121,507 121,507 95,235
Short-term investments 209,288 209,288 594,278
Customer deposits:
Cash and cash equivalents 847,300 847,300 769,605
Interest receivable on investments 19,201 19,201 19,990
Total restricted assets 2,661,802 0 0 0 2,661,802 3,106,429
Bond issuance cost 85,373 107,473 192,846 192,846
Less accumulated amortization 31,044 23,884 54,928 41,196
Net bond issuance cost 54,329 83,589 0 0 137,918 151,650
Utility plant and equipment in
service, at cost:
Land 1,528,966 340,000 1,868,966 1,528,966
Equipment 1,160,629 936,280 2,096,909 2,068,715
Waterworks and sanitary
sewer system 26,375,668 26,375,668 26,203,611
Construction in progress 1,079,941 1,488,785 211,460 2,780,186 1,964,426
30,145,204 2,425,065 0 551,460 33,121,729 31,765,718
Less accumulated depreciation 12,397,224 32,843 12,430,067 11,507,717
Net utility plant and
equipment in service 17,747,980 2,392,222 0 551,460 20,691,662 20,258,001
TOTAL ASSETS $27,526,264 $2,669,381 $14,987 $551,460 $30,762,092 $30,862,960
43
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable
Accounts payable
Accrued salaries and wages
Due to other funds
Total current liabilities
Water and Drainage Recreation Golf Course Totals
Sewer Fund Utility Fund Classes Fund 1995
1994
$ $ $ $ $0 $1,816,172
744,934 29 2,964 747,927 533,204
78,631 78,631 89,658
736,395 736,395 0
1,559,960 29 2,964 0 1,562,953 2,439,034
Current obligations payable from
restricted assets:
Customer and escrow deposits 847,300 847,300 769,605
Current portion of bonds payable 365,000 25,000 390,000 360,000
Accrued interest 35,452 26,467 61,919 65,686
Bonds payable 2,920,000 2,000,000 4,920,000 5,310,000
Deferred revenue 88,273 88,273 96,073
Total liabilities
Fund equity:
Contributed capital:
From Euless Development Corporation
From subdividers
From Environmental Protection
Agency
From Trinity River Authority
5,815,985 2,051,496 2,964 0 7,870,445 9,040,398
14,371,398
239,617
15,000
14,626,015
0
551,460
551,460
14,371,398 14,107,711
239,617 239,617
15,000 15,000
0 551,460 15,177,475 14,362,328
Accumulated depreciation on
assets acquired with
contributed capital 5,923,531 5,923,531 5,505,659
Net contributed capital 8,702,484 0 0 551,460 9,253,944 8,856,669
Retained earnings:
Reserved for:
Computer 75,000 75,000
Revenue bond retirement 894,479 894,479 1,048,936
Emergency 500,000 500,000 500,000
Recycling 4,773 4,773 6,898
Total reserved 1,474,252 0 0 0 1,474,252 1,555,834
Unreserved 11,533,543 617,885 12,023 12,163,451 11,410,059
Total Retained earnings 13,007,795 617,885 12,023 0 13,637,703 12,965,893
Total fund equity 21,710,279 617,885 12,023 551,460 22,891,647 21,822,562
TOTAL LIABILITIES AND
FUND EQUITY $27,526,264 $2,669,381 $14,987 $551,460 $30,762,092 $30,862,960
44
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Water and Drainage Recreation Golf Course Totals
Sewer Fund Utility Fund Classes Fund 1995 1994
Operating revenues:
Water service $5,466,477 $ $ $ $5,466,477 $5,448,097
Sewer service 3,072,367 3,072,367 3,045,524
Drainage fees 337,163 337,163 342,835
Recreation fees 614,128 614,128 472,679
Service fees and miscellaneous 414,179 414,179 513,582
Total operating revenues 8,953,023 337,163 614,128 0 9,904,314 9,822,717
Operating expenses:
General and administrative 424,448 424,448 492,129
Water production 3,436,407 3,436,407 2,981,299
Water distribution 403,616 403,616 308,762
Utility engineering 152,557 152,557 189,859
Sewage collection and treatment 1,163,696 1,163,696 1,296,503
Nondepartmental 1,410,328 1,410,328 1,578,317
Geographic information 83,894 83,894
Service center 513,183 513,183 513,119
Drainage 101,286 101,286 98,796
Recreation classes 628,319 628,319 426,986
Depreciation 892,814 29,536 922,350 861,642
Amortization 7,761 5,971 13,732 13,732
Total operating expenses 8,488,704 136,793 628,319 0 9,253,816 8,761,144
Operating income (loss) 464,319 200,370 (14,191) 0 650,498 1,061,573
Nonoperating revenues (expenses)
Investment income 395,215 8,361 5,434 409,010 296,665
Rental income 35,000
Interest on bonds (183,430) (128,093) (311,523) (329,235)
Total nonoperating revenues
(expenses), net 211,785 (119,732) 5,434 0 97,487 2,430
Income (loss) before operating transfers 676,104 80,638 (8,757) 0 747,985 1,064,003
0
Operating transfers out (461,637) (16,709) (15,700) (494,046) (486,893)
Net income (loss) 214,467 63,929 (24,457) 0 253,939 577,110
Add depreciation on fixed assets
acquired with contributed capital 417,871 417,871 430,870
Increase (decrease) in retained earnings 632,338 63,929 (24,457) 0 671,810 1,007,980
Retained earnings, beginning of year 12,375,457 553,956 36,480 12,965,893 11,957,913
Retained earnings, end of year $13,007,795 $617,885 $12,023 $0 $13,637,703 $12,965,893
45
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Water and Drainage Recreation Golf Course Totals
Sewer Fund Utility Fund Classes Fund 1995 1994
OPERATING ACTIVITIES
Operating income $464,319 $200,370 ($14,191) $ $650,498 $1,061,573
Adjustments to reconcile operating
income to net cash provided
by operating activities:
Depreciation and amortization
expenses 900,575 35,507 936,082 875,374
(Increase) decrease due to net
changes in:
Accounts receivable and
unbilled revenue 106,289 7,767 1,654 115,710 144,271
Due from other funds 100,000 100,000 100,000
Prepaids and deposits 997 997 (149)
Due from other governments 11,250 11,250 (11,250)
Increase (decrease) due to net
changes in:
Overdrafts payable (1,043,872) (1,043,872) 31,295
Accounts payable 435,918 (215,235) (3,214) 217,469 346,951
Accrued salaries and wages (11,027) (11,027) (17,674)
Customer and escrow deposits 77,695 77,695 86,351
Deferred revenue (7,800) (7,800) (7,800)
Total adjustments 570,025 (171,961) (1,560) 396,504 1,547,369
Net cash provided by operating activities 1,034,344 28,409 (15,751) 1,047,002 2,608,942
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (186,920) (128,371) (315,291) (332,905)
Reduction in bonds payable (335,000) (25,000) (360,000) (350,000)
Operating transfer out (461,637) (16,709) (15,700) (494,046) (486,893)
Net cash used in noncapital financing
activities (983,557) (170,080) (15,700) 0 (1,169,337) (1,169,798)
CAPITAL AND RELATED FINANCING
ACTIVITIES
Contributions in aid to construction 263,687 551,460 815,147 204,761
Purchase of utility plant and equipment
in service (712,832) (94,465) (551,460) (1,358,757) (1,827,229)
Proceeds from sale
Net cash used in capital and related
financing activities (449,145) (94,465) 0 0 (543,610) (1,622,468)
46
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Water and Drainage Recreation Golf Course Totals
Sewer Fund Utility Fund Classes Fund 1995 1994
INVESTING ACTIVITIES
Purchase of investment securities (894,873) (894,873) (1,556,483)
Proceeds from sale or maturity of
investment securities 985,000 295,677 1,280,677 1,340,525
Interest received on investments 354,288 11,591 5,434 371,313 268,559
Rents received 35,000
Net cash provided by investing
activities 444,415 307,268 5,434 0 757,117 87,601
Net increase (decrease) in cash
and cash equivalents 46,057 71,132 (26,017) 0 91,172 (95,723)
Cash and cash equivalents,
beginning of year 974,808 23,506 41,004 0 1,039,318 1,135,041
Cash and cash equivalents,
end of year $1,020,865 $94,638 $14,987 $0 $1,130,490 $1,039,318
47
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
1995 1994
ASSETS
Current assets:
Cash and cash equivalents $43,420 $68,092
Short-term investments 5,409,198 4,984,758
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 1995 and 1994 1,280,058 1,386,347
Accrued interest receivable 110,234 68,519
Prepaids and deposits 642 1,639
Due from other governments 0 11,250
Due from other funds 218,601 318,601
Total current assets
7,062,153 6,839,206
Restricted assets:
Revenue bond debt service:
Cash with paying agent 8,638 41,876
Revenue bond retirement:
Investments with paying agent, at cost 609,227 618,219
Revenue bond emergency:
Short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent, at cost 346,641 467,226
Capital projects account:
Cash and cash equivalents 121,507 95,235
Short-term investments 209,288 594,278
Customer deposits:
Cash and cash equivalents 847,300 769,605
Interest receivable on investments 19,201 19,990
Total restricted assets 2,661,802 3,106,429
Bonds issuance cost
Less accumulated amortization
Net bond issuance cost
85,373 85,373
31,044 23,283
54,329 62,090
Utility plant and equipment in service, at cost:
Land 1,528,966 1,528,966
Equipment 1,160, 629 1,132,435
Waterworks and sanitary sewer system 26,375,668 26,203,611
Construction in progress 1,079,941 570,106
30,145,204 29,435,118
Less accumulated depreciation 12,397,224 11,504,410
Net utility plant and equipment in service 17,747,980 17,930,708
TOTAL ASSETS $27,526,264 $27,938,433
48
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
1995 1994
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Overdrafts payable $0 $1,780,267
Accounts payable 744,934 311,762
Accrued salaries and wages 78,631 89,658
Due to other funds 736,395 0
Total current liabilities 1,559,960 2,181,687
Current obligations payable from
restricted assets:
Customer and escrow deposits 847,300 769,605
Current portion of bonds payable 365,000 335,000
Accrued interest 35,452 38,942
Bonds payable 2,920,000 3,285,000
Deferred revenue 88,273 96,073
Total liabilities
5,815,985 6,706,307
Fund equity:
Contributed capital:
From subdividers 14,371,398 14,107,711
From Environmental Protection Agency 239,617 239,617
From Trinity River Authority 15,000 15,000
14,626,015 14,362,328
Accumulated depreciation on assets
acquired with contributed capital 5,923,531 5,505,659
Net contributed capital 8,702,484 8,856,669
Retained earnings:
Reserved for:
Computer 75,000 0
Revenue bond retirement 894,479 1,048,936
Recycling 4,773 6,898
Emergency 500,000 500,000
Total reserved 1,474,252 1,555,834
Unreserved 11,533,543 10,819,623
Total retained earnings 13,007,795 12,375,457
Total fund equity 21,710,279 21,232,126
TOTAL LIABILITIES AND FUND EQUITY $27,526,264 $27,938,433
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
1995 1994
Operating revenues:
Water service $5,466,477 $5,448,097
Sewer service 3,072,367 3,045,524
Service fees and miscellaneous 414,179 513,582
Total operating revenues 8,953,023 9,007,203
Operating expenses:
General and administrative 424,448 492,129
Water production 3,436,407 2,981,299
Water distribution 403,616 308,762
Utility engineering 152,557 189,859
Sewage collection and treatment 1,163,696 1,296,503
Nondepartmental 1,410,328 1,578,317
Geographic information 83,894 0
Service center 513,183 513,119
Depreciation 892,814 858,335
Amortization 7,761 7,761
Total operating expenses 8,488,704 8,226,084
Operating income 464,319 781,119
Nonoperating revenues (expenses)
Investment income 395,215 271,588
Interest on bonds (183,430) (199,875)
Rental income 0 35,000
Total nonoperating revenues
(expenses), net 211,785 106,713
Income before operating transfers 676,104 887,832
Operating transfers out (461,637) (459,793)
Net income 214,467 428,039
Add depreciation on fixed assets acquired
with contributed capital 417,871 430,870
Increase (decrease) in retained earnings 632,338 858,909
Retained earnings, beginning of year 12,375,457 11,516,548
Retained earnings, end of year $13,007,795 $12,375,457
50
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
1995 1994
General and administrative:
Salaries and benefits $251,748 $356,024
Postage and supplies 48,337 48,309
Maintenance of office machinery 6,455 29,203
Bad debts 25,326 15,380
Other 92,582 43,213
424,448 492,129
Water production:
Salaries and benefits 272,199 274,313
Operating supplies and expense 52,035 33,058
Maintenance of structures and equipment 14,200 16,827
Contracts - Trinity River Authority (174,848) 0
Water - Trinity River Authority 3,272,821 2,657,101
3,436,407 2,981,299
Water distribution:
Salaries and benefits 297,880 219,646
Operating supplies and expenses 22,833 15,670
Maintenance of structures and equipment 51,655 42,289
Sewer - Trinity River Authority 31,248 31,157
403,616 308,762
Utility engineering:
Salaries and benefits 125,697 155,121
Operating supplies and expenses 26,610 17,148
Maintenance of structures and equipment 0 14,559
Contractual services 250 3,031
152,557 189,859
Sewage collection and treatment:
Salaries and benefits 210,891 191,850
Operating supplies and expenses 53,443 25,682
Maintenance of structures and equipment 591 16,638
Treatment fees - Trinity River Authority 898,771 1,062,333
1,163, 696 1,296,503
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
1995 1994
Nondepartmental:
Salaries and benefits 364,301 385,764
Operating supplies and expenses 586,264 43,274
Contractual services 0 689,486
Franchise fees 459,763 459,793
1,410,328 1,578,317
Service center:
Salaries and benefits 191,367 174,361
Motor fuel and supplies 213,519 256,752
Maintenance of structures and equipment 56,160 73,179
Other 52,137 8,827
513,183 513,119
Information system:
Salaries and benefits 48,604 0
Operating supplies and expenses 3,819 0
Maintenance of machinery and equipment 28,588 0
Contractual services 2,883 0
83,894 0
Depreciation and amortization 900,575 866,096
Total operating expenses $8,488,704 $8,226,084
52
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
1995 1994
OPERATING ACTIVITIES
Operating income $464,319 $781,119
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization expenses 900,575 866,096
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue 106,289 119,009
Due from other funds 100,000 100,000
Prepaids and deposits 997 (149)
Due from other governments 11,250 (11,250)
Increase (decrease) due to net changes in:
Overdrafts payable (1,043,872) 31,295
Accounts payable 435,918 145,704
Accrued salaries and wages (11,027) (17,674)
Customer and escrow deposits 77,695 86,351
Deferred revenue (7,800) (7,800)
Total adjustments 570,025 1,311,582
Net cash provided by operating activities 1,034,344 2,092,701
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (186,920) (203,285)
Reduction in bonds payable (335,000) (325,000)
Operating transfers out (461,637) (459,793)
Net cash used in noncapital financing activities (983,557) (988,078)
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 263,687 204,761
Purchase of utility plant and equipment in service (712,832) (626,378)
Net cash used in capital and related financing activities (449,145) (421,617)
INVESTING ACTIVITIES
Purchase of investment securities (894,873) (1,556,483)
Proceeds from sale or maturity of investment securities 985,000 653,758
Interest received on investments 354,288 241,001
Rents received 0 35,000
Net cash provided by (used in) investing activities 444,415 (626,724)
Net increase in cash and cash equivalents 46,057 56,282
Cash and cash equivalents, beginning of year 974,808 918,526
Cash and cash equivalents, end of year $1,020,865 $974,808
53
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1995
Capital Bond
Operating Projects Reserve
Account Account Account
ASSETS
Current assets:
Cash and cash equivalents $ $ $
Short-term investments 4,756,609
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 1,280,058
Accrued interest receivable 102,543
Prepaids and deposits 642
Due from other funds 218,601
Total current assets 6,358,453 0 0
Restricted assets:
Revenue bond debt service:
Cash with paying agent 8,638
Revenue bond retirement:
Investments with paying agent, at cost 609,227
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investments with paying agent, at cost 346,641
Capital projects account:
Cash and cash equivalents 121,507
Short-term investments 209,288
Customer deposits:
Cash and cash equivalents 847,300
Interest receivable on investments 19,201
Total restricted assets 1,347,300 330,795 983,707
Bonds issuance cost 85,373
Less accumulated amortization 31,044
Net bond issuance cost 54,329 0 0
Utility plant and equipment in service, at cost:
Land 1,528,966
Equipment 1,103,475 4,280
Waterworks and sanitary sewer system 26,375,668
Construction in progress 1,079,941
29,008,109 1,084,221 0
Less accumulated depreciation 12,397,224
Net utility plant and equipment in service 16,610,885 1,084,221 0
TOTAL ASSETS $24,370,967 $1,415,016 $983,707
54
Service Impact Debt
Center Fees Service
Account Account Account
Eliminations
Total
September 30,
1995
$10,691 $32,729 $ $ $43,420
652,589 5,409,198
1,280,058
7,691 110,234
642
218,601
10,691 693,009 0 0 7,062,153
8,638
609,227
500,000
346,641
121,507
209,288
847,300
19,201
0 0 0 0 2,661,802
85,373
31,044
0 0 0 0 54,329
1,528,966
52,874 1,160,629
26,375,668
1,079,941
52,874 0 0 0 30,145,204
12,397,224
52,874 0 0 0 17,747,980
$63,565 $693,009 $0 $0 $27,526,264
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1995
Capital Bond
Operating Projects Reserve
Account Account Account
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $660,671 $20,096 $
Accrued salaries and wages 78,631
Due to other funds 682,619
Total current liabilities 1,421,921 20,096 0
Current obligations payable from
restricted assets:
Customer and escrow deposits 847,300
Current portion of bonds payable 365,000
Accrued interest 35,452
Bonds payable 2,920,000
Deferred revenue 88,273
Total liabilities 5,642,494 20,096 35,452
Fund equity:
Contributed capital:
From subdividers 13,789,751
From Environmental Protection Agency 239,617
From Trinity River Authority 15,000
14,044,368 0 0
Accumulated depreciation on assets
acquired with contributed capital 5,923,531
Net contributed capital 8,120,837 0 0
Retained earnings:
Reserved for:
Computer 75,000
Revenue bond retirement 948,255
Recycling 4,773
Emergency 500,000
Total reserved 579,773 0 948,255
Unreserved 10,027,863 1,394,920
Total retained earnings 10,607,636 1,394,920 948,255
Total fund equity 18,728,473 1,394,920 948,255
TOTAL LIABILITIES AND FUND EQUITY $24,370,967 $1,415,016 $983,707
56
Service Impact Debt
Center Fees Service
Account Account Account
$64,167 $ $ $
53,776
64,167 0 53,776
Eliminations
0
Total
September 30,
1995
$744,934
78,631
736,395
1,559,960
847,300
365,000
35,452
2,920,000
88,273
64,167 0 53,776 0 5,815,985
581,647 14,371,398
239,617
15,000
0 0 0 581,647 14,626,015
5,923,531
0 0 0 581,647 8,702,484
75,000
(53,776) 894,479
4,773
500,000
0 0 (53,776) 0 1,474,252
(602) 693,009 (581,647) 11,533,543
(602) 693,009 (53,776) (581,647) 13,007,795
(602) 693,009 (53,776) 0 21,710,279
$63,565 $693,009 $0 $0 $27,526,264
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1995
Capital Bond
Operating Projects Reserve
Account Account Account
Operating revenues:
Water service $5,466,477 $ $
Sewer service 3,072,367
Service fees and miscellaneous 388,821
Total operating revenues 8,927,665 0 0
Operating expenses:
General and administrative 291,367 70,652
Water production 3,436,407
Water distribution 403,616
Utility engineering 152,557
Sewage collection and treatment 1,163,696
Nondepartmental 1,410,328
Geographic information 83,894
Service center
Depreciation 892,814
Amortization 7,761
Total operating expenses 7,842,440 70,652 0
Operating income (loss) 1,085,225 (70,652) 0
Nonoperating revenues (expenses)
Investment income 299,625 20,477 48,104
Interest on bonds (72,335)
Total nonoperating revenues
(expenses), net 299,625 20,477 (24,231)
Income (loss) before operating transfers 1,384,850 (50,175) (24,231)
Operating transfers from other funds or other water
and sewer accounts 507,057 282,943
Operating transfers to other funds or other water
and sewer accounts (1,751,859) (130,000)
Net income (loss) 140,048 232,768 (154,231)
Add depreciation on fixed asset acquired
with contributed capital 417,871
Increase (decrease) in retained earnings 557,919 232,768 (154,231)
Retained earnings (deficit), beginning of year 10,049,717 1,162,152 1,102,486
Retained earnings (deficit), end of year $10,607,636 $1,394,920 $948,255
58
Service Impact Debt Total
Center Fees Service September 30,
Account Account Account Eliminations 1995
$ $ $ $ $5,466,477
3,072,367
25,358 263,687 (263,687) 414,179
25,358 263,687 0 (263,687) 8,953,023
61,202 1,227 424,448
3,436,407
403,616
152,557
1,163,696
1,410,328
83,894
513,183 513,183
892,814
7,761
513,183 61,202 1,227 0 8,488,704
(487,825) 202,485 (1,227) (263,687) 464,319
27,009 395,215
(111,095) (183,430)
0 27,009 (111,095) 0 211,785
(487,825) 229,494 (112,322) (263,687) 676,104
520,000 112,096 (1,422,096) 0
(1,874) 1,422,096 (461,637)
30,301 229,494 (226) (263,687) 214,467
417,871
30,301 229,494 (226) (263,687) 632,338
(30,903) 463,515 (53,550) (317,960) 12,375,457
($602) $693,009 ($53,776) ($581,647) $13,007,795
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1995
Total
Operating Construction Elimi- September 30,
Account in Progress nations 1995
ASSETS
Current assets:
Cash and cash equivalents $56,792 $37,846 $ $94,638
Short term investments 80,098 80,098
Accounts and unbilled revenue
less allowance for uncollectibles of
$141,080 for drainage utility 18,834 18,834
Total current assets 155,724 37,846 0 193,570
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
107,473 107,473
23,884 23,884
0 83,589 0 83,589
Utility plant and equipment
in service, at cost:
Equipment 936,280 936,280
Construction in Progress 1,488,785 1,488,785
936,280 1,488,785 0 2,425,065
Less accumulated depreciation 32,843 32,843
Net utility plant and equipment in service 903,437 1,488,785 0 2,392,222
TOTAL ASSETS $1,059,161 $1,610,220 $0 $2,669,381
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable $29 $ $ $29
Total current liabilities 29 0 0 29
Current portion of bonds payable 25,000 25,000
Accrued interest 26,467 26,467
Bonds payable 2,000,000 2,000,000
Total liabilities 29 2,051,467 0 2,051,496
Retained earnings:
Unreserved 1,059,132 (441,247) 617,885
Total fund equity 1,059,132 (441,247) 0 617,885
TOTAL LIABILITIES AND FUND EQUITY $1,059,161 $1,610,220 $0 $2,669,381
60
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1995
Total
Operating Construction Elimi- September 30,
Account in Progress nations 1995
Operating revenues:
Drainage fees $337,163 $ $ $337,163
Total operating revenues 337,163 $ $ 337,163
Operating expenses:
Drainage 101,286 101,286
Depreciation 29,536 29,536
Amortization 5,971 5,971
Total operating expenses 130,822 5,971 0 136,793
Operating income (loss) 206,341 (5,971) 0 200,370
Nonoperating revenues (expenses):
Investment income 8,361 8,361
Interest on bonds (128,093) (128,093)
Total nonoperating revenues
(expenses), net 8,361 (128,093) 0 (119,732)
Income (loss) before operating transfers 214,702 (134,064) 0 80,638
Operating transfers in 503,370 (503,370) 0
Operating transfers out (520,079) 503,370 (16,709)
(Decrease) increase in retained earnings (305,377) 369,306 0 63,929
Retained (deficit) earnings,
beginning of year 1,364,509 (810,553) 553,956
Retained (deficit) earnings,
end of year $1,059,132 ($441,247) $0 $617,885
61
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.
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUND
COMBINING BALANCE SHEET
SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Manage- Total Total
Fund Fund Fund ment Fund 1995 1994
ASSETS
Cash and cash equivalents $ $ $55,323 $ $55,323 $337,595
Short-term investments 359,322 460,844 820,166 823,976
Due from other funds 111,977 162,608 200,201 474,786 0
Total current assets 471,299 162,608 716,368 0 1,350,275 1,161,571
Equipment, at cost, net of
accumulated depreciation
of $523,621 in 1995
TOTAL ASSETS
LIABILITIES AND
RETAINED EARNINGS
756,116
756,116 831,413
$1,227,415 $162,608 $716,368 $0 $2,106,391 $1,992,984
Accounts payable $7,169 $34,647 $17,209 $ $59,025 $39,816
Accrued insurance
claims 70,000 70,000 70,000
Due to other funds 62,605 62,605 62,605
Total current liabilities 7,169 104,647 79,814 0 191,630 172,421
Retained earnings:
Reserved:
Insurance 41,000 41,000 41,000
Workers' compensation 200,000 200,000 200,000
Risk management 200,000 200,000 200,000
Total reserved 0 41,000 400,000 0 441,000 441,000
Unreserved 1,220,246 16,961 236,554 1,473,761 1,379, 563
Total retained earnings 1,220,246 57,961 636,554 0 1,914,761 1,820,563
TOTAL LIABILITIES AND
RETAINED EARNINGS $1,227,415 $162,608 $716,368 $0 $2,106,391 $1,992,984
63
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUND
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Manage- Total Total
Fund Fund Fund ment Fund 1995 1994
Operating revenues:
Insurance premiums $ $1,157,504 $573,496 $ $1,731,000 $1,794,566
Service fees and
miscellaneous 263,428 263,428 257,736
Total operating revenues 263,428 1,157,504 573,496 0 1,994,428 2,052,302
Operating expenses:
General and
administrative 66,695 224,470 47,248 338,413 421,385
Insurance costs 1,188,631 259,834 1,448,465 1,236,953
Depreciation 230,871 230,871 176,703
Total operating expenses 230,871 1,255,326 484,304 47,248 2,017,749 1,835,041
Operating income (loss) 32,557 (97,822) 89,192 (47,248) (23,321) 217,261
Non -operating revenues:
Investment income 15,543 31,717 47,248 94,508 73,304
Gain on sale of
fixed assets 65,133 65,133 4,925
Total nonoperating
revenues, net 80,676 0 31,717 47,248 159,641 78,229
Income before operating
transfers 113,233 (97,822) 120,909 0 136,320 295,490
Operating transfers in 4,534 50,000 54,534 50,000
Operating transfers out (30,548) (66,108) (96,656) (100,286)
Net income 117,767 (78,370) 54,801 0 94,198 245,204
Retained Earnings,
Beginning of Year 1,102,479 136,331 581,753 1,820,563 1,575,359
Retained Earnings, End of Year $1,220,246 $57,961 $636,554 $0 $1,914,761 $1,820,563
64
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1995
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1994
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Management Total Total
Fund Fund Fund Fund 1995 1994
OPERATING ACTIVITIES
Operating income (loss) $32,557 ($97,822) $89,192 ($47,248) ($23,321) $217,261
Adjustments to reconcile operating
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation expense 230,871 230,871 176,703
Increase (decrease) in short
term investments (163,223) 167,033 3,810 (175,031)
Increase (decrease) in
accounts payable 7,170 13,127 (1,087) 19,210 38,776
Increase in due from
other funds (111,977) (162,608) (200,201) (474,786) 0
Total adjustments (37,159) (149,481) (34,255) 0 (220,895) 40,448
Net cash provided by (used in)
operating activities (4,602) (247,303) 54,937 (47,248) (244,216) 257,709
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in 4,534 50,000 54,534 50,000
Operating transfers out (30,548) (66,108) (96,656) (100,286)
Net cash provided by (used in)
noncapital financing activities 4,534 19,452 (66,108) 0 (42,122) (50,286)
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment (125,383) (125,383) (270,836)
Sale of equipment 34,941 34,941 4,925
Net cash used in capital and
related financing activities (90,442) 0 0 0 (90,442) (265,911)
INVESTING ACTIVITIES
Interest received on
investments 15,543 31,717 47,248 94,508 73,304
Net increase (decrease) in
cash and cash equivalents (74,967) (227,851) 20,546 0 (282,272) 14,816
Cash and cash equivalents,
beginning of year 74,967 227,851 34,777 337,595 322,779
Cash and cash equivalents,
end of year $0 $0 $55,323 $0 $55,323 $337,595
65
AGENCY FUNDS
Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments and/or other funds.
Deferred Compensation - To account for assets held for employees in
accordance with the provisions of Internal Revenue Code Section 457.
DEA Task Force - To account for assets and liabilities received from the DEA
task force
CITY OF EULESS, TEXAS
AGENCY FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1995
Deferred DEA
Compensation Task
Agency Force
Fund Fund 1995 1994
Assets:
Cash $ $3,058 $3,058 $0
Investments 2,654,685 55,087 2,709,772 2,428,950
Total assets $2,654,685 $58,145 $2,712,830 $2,428,950
Liabilities:
Deferred compensation
benefits payable $2,654,685 $ $2,654,685 $2,428,950
Due to other
governments 58,145 58,145 0
Total liabilities $2,654,685 $58,145 $2,712,830 $2,428,950
67
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 1995
Balance Balance
September 30, September 3
1994 Additions Deletions 1995
DEFERRED COMPENSATION:
Assets:
Investments $2,428,950 $464,866 $239,131 $2,654,685
Liabilities:
Deferred compensation
benefits payable $2,428,950 $464,866 $239,131 $2,654,685
DEA TASK FORCE FUND:
Assets:
Cash $ $3,058 $ $3,058
Investments 55,087 55,087
$0 $58,145 $0 $58,145
Liabilities:
Due to other
governments $0 $58,145 $0 $58,145
68
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not used in proprietary fund operations.
CITY OF EULESS, TEXAS
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 1995 AND 1994
1995 1994
General fixed assets:
Land $3,091,217 $871,250
Building 5,967,286 4,927,995
Improvements other than buildings 2,546,081 1,660,922
Machinery and equipment 4,415,304 4,201,683
Total general fixed assets $16,019,888 $11,661,850
Investment in general fixed assets by source:
General fund $5,508,542 $5,308,718
Special revenue funds 4,587,117 428,903
Capital projects funds 5,924,229 5,924,229
Total investment in general fixed assets $16,019,888 $11,661,850
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1995
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Total General Fixed Assets
Land
Building
$2,489,926 $2,422,165
234,325 1,315,968
366,966 2,229,153
$3,091,217 $5,967,286
Improvements
Other than
Buildings
$470,753
36,758
885,240
1,153, 330
$2,546,081
Machinery
and
Equipment
$1,003,213
2,392,447
595,220
325,957
98,467
$4,415,304
Total
$6,386,057
3,979,498
4,076,579
325,957
1,251,797
$16,019,888
71
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1995
General Fixed General Fixed
Assets Assets
Function September 30, September 30,
and Activity 1994 Additions Deletions 1995
General government $2,647,647 $3,738,410 $ $6,386,057
Public safety 3,902,369 77,129 3,979,498
Culture and recreation 4,076,579 4,076,579
Highways and streets 325,957 325,957
Construction -in -progress 709,298 542,499 1,251,797
$11,661,850 $4,358,038 $ $16,019,888
72
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
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
1995 2,193,512 6,708,056 575,608 1,430,955 1,650,196 1,085,690 13,644,017
Note: Includes General Fund and Debt Service Fund.
74
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
Licenses
and
Taxes Permits
1986 $6,374,355 $330,136
1987 7,450,693 201,468
1988 8,044,902 164,031
1989 8,394,653 222,424
1990 8,529,240 290,944
1991 9,262,024 237,400
1992 9,550,034 210,525
1993 10,274,743 312,660
1994 10,847,785 364,617
1995 11,362,414 420,624
I nter-
govern-
mental
$601,988
535,814
380,612
265
19,078
91,064
46,405
54,797
227,464
50,912
64,601 1,291,629
59,042 1,353,196
81,311 1,592,194
88,036 1,941,505
Note: Includes General Fund and Debt Service Fund.
Charges
for
Service
Fines
and Fees
1 nterest
Income
and Other
Revenues
Table 2
Total
$60,466 $423,482 $664,199 $8,454,626
52,890 413,120 729,595 9,383,580
54,682 501,151 610,444 9,755,822
43,053 904,238 1,035,689 10,600,322
55,163 1,158, 986 929,589 10, 983, 000
54,399 971,875 740,796 11,357,558
448,765 11,611,959
413,151 12, 467, 589
420,641 13,534,012
916,167 14,779,658
75
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Unaudited)
Table 3
Percent of Ratio of Percent of
Current Delinquent Total Tax Outstanding Delinquent
Fiscal Total Current Tax Taxes Tax Total Tax Collections Delinquent Taxes to
Year Tax Levy Collections Collected Collections Collections to Tax Levy Taxes Tax Levy
1986 $3,814,110 $3,575,594 93.75% $76,236 $3,651,830 95.75% $393,256 10.31%
1987 4,485,209 4,704,417 104.89% 167,892 4,872,309 108.63% 428,865 9.56%
1988 5,001,323 4,921,426 98.40% 174,978 5,096,404 101.90% 355,562 7.11%
1989 4,975,719 4,926,213 99.01% 165,469 5,091,682 102.33% 331,891 6.67%
1990 5,162,838 5,150,783 99.77% 175,439 5,326,222 103.16% 329,745 6.39%
1991 5,717,223 5,586,764 97.72% 106,503 5,693,267 99.58% 349,226 6.11%
1992 5,889,411 5,765,733 97.90% 147,498 5,913,231 100.40% 577,695 9.81%
1993 5,943,537 5,880,688 98.94% 73,853 5,954,541 100.19% 239,370 4.03%
1994 6,259,282 5,874,486 93.85% 38,770 5,913,256 94.47% 355,032 5.67%
1995 6,113,427 6,037,510 98.76% 96,556 6,134,066 100.34% 334,393 5.47%
76
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Real Property Personal Property
Estimated
Fiscal Assessed Actual Assessed Actual
Year Value Value Value Value
1986 $779,704,042 $779,704,042 $88,759,776 $88,759,776
1987 1, 080, 231, 222 1, 080, 231, 222 101,144, 524 101,144, 524
1988 1,024,645,236 1,024,645,236 112,007,718 112,007,718
1989 968,871,391 968,871,391 112,795,668 112,795,668
1990 967,682,949 967,682,949 117,494,828 117,494,828
1991 1, 050, 436, 076 1, 050, 436, 076 108, 768, 428 108, 768, 428
1992 872,811,737 872,811,737 127,990,604 127,990,604
1993 965,322,639 965,322,639 136,823,626 136,823,626
1994 970,248,082 970,248,082 147,568,746 147,568,746
1995 1,056,473,654 1,056,473,654 167,646,390 167,646,390
Source: Tarrant Appraisal District
77
Table 4
Ratio of
Total
Assessed
Total to
Estimated
Assessed Actual Actual
Value Value Value
$868,463,818 $868,463,818 100%
1,181,375,746 1,181,375,746
1,136,652,954 1,136,652,954
1,081,667,059 1,081,667,059
1,085,177,777 1,085,177,777
1,159, 204, 504 1,159, 204, 504
1,000,802,341 1,000,802,341
1,102,146, 265 1,102,146, 265
1,117,816,828 1,117,816,828
1,224,120,044 1,224,120,044
100%
100%
100%
100%
100%
100%
100%
100%
100%
78
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
1986 0.4400000% 0.8200% 0.098660% 0.096340% 0.031650% 1.4866500%
1987 0.4200000% 0.7800% 0.117720% 0.111250% 0.031530% 1.4605000%
1988 0.4400000% 0.9169% 0.117720% 0.111250% 0.031530% 1.6174000%
1989 0.4600000% 1.0200% 0.156509% 0.133000% 0.031480% 1.8009890%
1990 0.4875000% 1.0600% 0.182000% 0.153000% 0,033000% 1.9155000%
1991 0.5408500% 1.1300% 0.196000% 0.177500% 0.034700% 2.0790500%
1992 0.5685000% 1.3200% 0.236800% 0.205800% 0.038400% 2.3695000%
1993 0.5985637% 1.5050% 0.277100% 0.229100% 0.043292% 2.6530557%
1994 0.6186170% 1.5150% 0.271880% 0.242100% 0.046710% 2.6943070%
1995 0.6160000% 1.5350% 0.271870% 0.244640% 0.056510% 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
CITY OF EULESS, TEXAS
RATIO OF NET GENERAL BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(Unaudited)
Table 6
Net
Bonded Net
Estimated Net Debt to Bonded
Fiscal Population Assessed General Assessed Debt Per
Year (1) Value (2) Debt (3) Value Capita
1986 37,650 $868,463,818 $10,083,064 1.16% $268
1987 38,700 1,181,375,746 10,366,504 0.88% 268
1988 39,750 1,136,652,954 10,181,354 0.90% 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 0.99% 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% 292
1994 39,650 1,117,816,828 10,277,666 0.92% 259
1995 39,750 1,224,120,044 9,117,594 0.74% 229
(1) Estimates by North Central Texas Council of Governments as of
January 1, 1995.
(2) Tarrant Appraisal District
(3) Includes General Obligation Bonds and Certificates of Obligation.
80
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 1995
(Unaudited)
Jurisdiction
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Outstanding of Euless of Euless
City of Euless $9,117,594 100.00% $9,117,594
Grapevine-Colleyville Independent
School District 110,005,323 2.12% 2,332,113
Hurst -Euless -Bedford Independent
School District 64,431,545 26.79% 17,261,211
Tarrant County 177,115,000 2.72% 4,817,528
Tarrant County Hospital County 48,764,764 2.72% 1,326,402
Tarrant County Junior College District 72,681,345 2.72% 1,976,933
Total direct and overlapping debt $36,831,781
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation
2.26%
Per capita direct and overlapping
bonded debt $927
81
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 Charges Service Expenditures tures
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 1,085,406 554,714 1,640,120 13,478,710 12.17%
1995 1,150,000 500,196 1,650,196 13,644,017 12.09%
82
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) (2) & (3) Services Principal Charges Total Ratio
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
1995 9,348,238 7,588,129 1,760,109 335,000 183,430 518,430 3.40
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 year 1989, accounting for
Trinity River Authority payments was changed and is consistent
with the debt service treatment above.
83
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) (2) Services Principal Charges Total Ratio
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
1995 345,524 101,286 244,238 25,000 128,093 153,093 1.60
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.
84
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
Table 11
Per
Capita School Unemployment
Fiscal Population Income Enrollment Rate
Year (1) (2) (3) (4)
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 %
1995 39,750 20,750 19,235 4.7%
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
85
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1995
(Unaudited)
Taxpayer
EFW Association
Southwestern Bell Telephone Company
Somerset Village Partners, LP
TU Electric
Southwest Properties
Bear Creek Apartments, Inc.
AMLI SW
Home Depot USA, Inc.
Ferguson Enterprises, Inc.
Euless Holdings, LC
Type of
Business
Land
Telephone Utility
Apartments
Electric Utility
Apartments
Apartments
Retail
Retail
Manufacturing
Land
1994
Assessed
Valuation
$25,684,705
21,597,160
20,709,172
18,144,792
12,758,000
10,494,015
9,855,074
8,745,099
8,076,140
7,997,722
144, 061, 879
Table 12
Percentage
of Total
Assessed
Valuation
2.43%
2.04%
1.96%
1.72%
1.21%
0.99%
0.93%
0.83%
0.76%
0.76%
13.63%
86
CITY OF EULESS, TEXAS
TMRS DEFINED CONTRIBUTION PLAN
ANALYSIS OF FUNDING PROGRESS
LAST SEVEN FISCAL YEARS - NOTE 1
(Unaudited)
Table 13
Unfunded
Pension
Book Value Obligation
of Net Unfunded as a
Assets Pension Annual Percentage
Available Pension Percent- Benefit Covered of
Fiscal for Benefit age Obligation Payroll Covered
Year Benefits Obligation Funded (3) (2) Payroll (4)
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%
1995 20,958,598 27,160,804 77.16% 6,202,206 9,331,144 66.47%
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.
87
CITY OF EULESS, TEXAS
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
(Unaudited)
Construction (1)
Table 14
Property Number
Fiscal Value of
Year (2) Permits Value
1986 $868,463,818 443 $42,546,836
1987 1,181,375, 746 314 14,128, 587
1988 1,136,652,954 405 27,937,240
1989 1,081,667,059 392 23,231,436
1990 1,085,177,777 559 23,370,614
1991 1,159,204,504 289 17,505,423
1992 1,000,820,341 276 16,126,487
1993 1,102,146,265 331 21,224,743
1994 1,117,816,828 360 21,437,599
1995 1,223,919,265 373 34,020,060
Notes: 1. City Records
2. Tarrant Appraisal District
88
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 1995
(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 1995 was established at $.616 per $100 of assessed valuation on 100% of appraised
value.
89
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1995
(Unaudited)
Date of incorporation
Date of Adoption of Charter
Form of government
Area
Full time City employees budgeted
Fire protection:
Number of stations
Number of certified firefighters
Police protection:
Number of stations
Number of certified officers
Parks and recreation:
Number of swimming pools
Number of parks
Area of parks
Community buildings
Ampitheater
Library holdings:
Books
Other
Education:
Elementary Schools
Junior High Schools
High School
Table 16
February 24, 1953
July 21, 1962
Home Rule - Council/Manager
Mayor - elected at large
Six Council Members
16.9 Square Miles
275
3
48
1
67
3
19
605 acres
3
1
55,624
5,620
7
2
1
90
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1995
(Unaudited)
Table 16
City Water and Sewer service:
Water Service:
Number of Customers 18,627
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 9,624,000
Average daily consumption 5,210,000
Water mains 148 miles
Fire hydrants 1,130
Sewer Service:
Average daily flow of wastewater 2,870,000
Number of customers 18,202
Sewer mains 125 miles
Streets:
Improved 150 miles
State highways 17.2 miles
91