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WEAVER
TIDWELL
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
307 West Seventh Street
Suite 1500
Part Worth. Te.:vas 76102
8/7.332.7905
P 817.429.5936
DALLAS OFFICE
12221 Merit Orin'
Suite 1700
Udllj.r, Texan 7525 1
WORLDWIDE AFFILIATIONS
THROUGH
SUMMIT INTERNATIONAL
ASSOCIATES, INC.
December 5, 1997
To the Honorable Mayor,
City Council, and City Manager
City of Euless, Texas
In planning and performing our audit of the financial statements of City of Euless, Texas,
for the year ended September 30, 1997, 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 the following items that we recommend for improvement:
Not all fixed asset additions are being capitalized in accordance with the
City's capitalization policy.
We recommend that fixed asset additions, capitalized in accordance with the
City's capitalization policy, be added to the General Fixed Assets Account
Group or fixed assets of Proprietary Funds, as appropriate, periodically
throughout the year.
We also recommend that the City maintain a detail of all General Fixed
Assets. This will enable management to better safeguard the City's assets.
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, the item described
above is not believed to be a material weakness.
This report is intended solely for the information and use of the City Council, management
and others within the City.
We would be pleased to discuss this letter with you at greater length and assist you in the
implementation of the recommendation 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.
WEAVER AND TIDWELL, L.L.P.
/cm
CITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
LEON HOGG, 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
KATIE EDWARDS, COUNCIL MEMBER PLACE SIX
TOM HART, CITY MANAGER
Joe Hennig Loretta Getchell, CPA
Assistant City Manager Director of Finance
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1997
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 2 - 5
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
Combined statement of revenues, expenses and
changes in retained earnings - all
proprietary fund types
Combined statement of cash flows - all
proprietary fund types
Notes to financial statements
Supplemental Statements and Schedules
Special revenue funds
Combining balance sheet
6-7
8-9
10
11 - 12
13-31
32
Combining statement of revenues,
expenditures and changes in fund balances 33
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS - Continued
Supplemental Statements and Schedules - continued
Statement of revenues, expenditures and
changes in fund balances - budget and actual
Capital project funds
Combining balance sheet
Combining statement of revenues,
expenditures 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 statements
of revenues, expenses, and changes in retained earnings
Water and sewer fund --comparative
schedule of operating expenses
Water and sewer fund --comparative
statements of cash flows
Water and sewer fund --aggregating
schedule of balance sheet accounts
Water and sewer fund --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Drainage utility funds --aggregating
schedule of balance sheet accounts
Pages)
34 - 36
37-38
39 - 40
41 -44
45 - 46
47 - 48
49 - 50
51
52-53
54
55 - 58
59-60
61
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS - Continued
Supplemental Statements and Schedules - continued Page(s)
Drainage utility funds --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Internal service funds
62
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 66
Statements of changes in assets and liabilities 67
General fixed assets account group
Comparative schedule of general fixed
assets - by source 68
Schedule of general fixed assets by
function and activity 69
Schedule of changes in general fixed
assets by function and activity 70
Table Page(s1
STATISTICAL SECTION (Unaudited)
General governmental expenditures
by function 1 71
General governmental revenues by source 2 72
Property tax levies and collections 3 73
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS - Continued
STATISTICAL SECTION (UNAUDITED) - continued Table Paae(s)
Assessed and estimated actual value of
taxable property 4 74 - 75
Property tax rates - all direct and overlapping
governments per $100 of assessed value 5 76
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 77
Computation of direct and overlapping debt 7 78
Ratio of annual debt service expenditures for
net general bonded debt to total general expenditures 8 79
Schedule of revenue bond coverage -
Water and Sewer Bonds 9 80
Schedule of revenue bond coverage -
Drainage Utility Bonds 10 81
Demographic statistics 11 82
Principal taxpayers 12 83
TMRS defined contribution plan - analysis
of funding progress 13 84
Property value and construction 14 85
Computation of legal debt margin 15 86
Miscellaneous statistics 16 87 - 88
INTRODUCTORY SECTION
THE C 1 T Y OF
EULES
January 22, 1998
Honorable Mayor & City Council,
City Manager, &
Citizens of 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, 1997. 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, 4,235. Euless has changed
significantly from a rural farming community to a progressive urban area of
approximately 41,300. 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,
201 N. Ector Drive, Eulesp, Texas 76039-3595
817/685-1400 • Metro 817/267-4403 • FAX 817/685-1416
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 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 and the Crime Control and Prevention
District established in Fiscal Year 96 are presented as blended component units of the
City of Euless.
ECONOMIC CONDITIONS AND OUTLOOK
Our City Manager commented on the achievements of the City in his "Share The
Vision" message to the staff. He observed that 1997 would be a memorable year for
not only the citizens of Euless, but the employees as well. He noted the list of
achievements from the different departments including the opening of a championship
golf course that had an astounding number of tournaments and golfers during its
opening summer. He also commented on other aspects of the Texas Star complex,
including the conference center that is attracting business meetings and events
throughout the metroplex. Other important achievements included implementation of
the Raving Fans program which focuses on improving services that are provided to
Euless citizens.
In 1997, Euless welcomed numerous new businesses to our community including:
American Car Wash, City Garage, Standard Hardware, and the upscale Mansions by
the Vineyards apartments. Construction is under way on a new Microtel hotel and a
Infiniti car dealership, and a hotel yet to be named.
MAJOR INITIATIVES
Budget. During preparation of the 1997 fiscal budget, both elected and appointed
officials worked together to identify and address several key programs needed to
adequately serve the public, either through quality of life issues or technological
advancements. Building upon the strategic committees that were created in 1990 by
utilizing a vast number of citizens for assistance in the development of Euless' goals
and objectives, the Budget was developed. Specific objectives may be summarized as
follows: 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 replacing deteriorating infrastructures;
identifying alternative sources of funds; and improving external and internal
communications.
ii
Progress Report. Fiscally, the year 1997 has proven successful. City Council
members were able to maintain the current rates for water and sewer services while
decreasing the tax rate to .544980 per $100 valuation. Furthermore, a merit -based
raise package, as well as, no increases in the City's or the employees' costs for health
care was achieved. 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 1997, the new
Texas Star Golf Course and Conference Centre opened; Fire Department received
specialized training in trench/below grade rescue procedures; Softball World was
awarded the designation "Sportsplex of the Year"; Police Department initiated a new
K-9 unit in late summer; Parks Department personnel recycled over 4,000 Christmas
trees; Arbor Daze Festival was an overwhelming success with an attendance of over
175,000 people and received two international awards - Best Environmental Program
and Best New Educational Program ; Arbor Daze also was awarded the 1997 TFEA
Marketing Award for Festival Brochure and the Marketing Award for Best
Environmental/Recycling Program by Texas Festivals and Events Association; Fleet
Services moved into a state of the art facility with a new refueling center; Recreation
added over 140 new programs including Halloween Howl and Friday Nite at The Rec,
as well as new equipment for the newly renovated recreation center ("The Rec");
Library added 12,950 books and circulated 224,152 items, made possible by the move
to the new building last year; Police Department was honored that one of its own, Mike
Brown, was selected as one of the ten finalists nationwide in the Shared Vision Awards
from ITT Night Vision Corporation.
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
iii
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
the Financial Statements.
General Governmental Functions Revenues for general governmental functions
and general debt service totaled $17,151,579 in 1997, an increase of 7.08% over 1996.
The increase in revenues is primarily attributable to: increased activity in Municipal
Courts, sales tax receipts, license -permits for new development and grant monies. The
reduction in property taxes is due to the 1/4 cent sales tax that was approved by voters
for this purpose. 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
I ntergovernmental/Other
TOTAL REVENUES
Amount
6,186,659
2,080,121
4,555,694
2,337,343
530,525
432,072
1,029.165
$17.151.579
Percent
% of Total
36.07
12.13
26.56
13.63
3.09
2.52
_6.00_
Increase
(decrease)
from 1996
(377, 824)
105,062
942,963
103,789
70,972
42,360
247,065
100.00 $1,134,387
Percent of
increase
(decrease)
(5.76)
5.32
26.10
4.65
15.44
10.87
31.59
In addition to the above general revenue, $594,018 was transferred from various funds,
primarily Enterprise funds for general and administrative cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled
$17,842,060, an increase of 15.15% over 1996. 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/Recreation/Library
Debt service
Nondepartmental
Increase Percent of
Percent (decrease) increase
Amount % of Total from 1996 (decrease)
2,591,776 14.53 182,661 7.58
8,187,586 45.89 741,676 9.96
639,906 3.59 20,808 3.36
1,781,630 9.99 253,912 16.62
2,145,300 12.02 487,009 29.37
2,495, 862 13.99 661, 880 36.09
TOTAL EXPENDITURES $17.842,060 100 $2,347,946
iv
Non departmental expenditures increased primarily due to the funding of nonrecurring
capital items, including computer equipment, fire truck reserve, transfer to Athletic
Complex CIP and citywide building purchases and remodeling projects. Debt service
expenditures increased due to first year interest payments on certificates of obligations
issued in FY96. Parks, Recreation, Library, and Public Safety increased due primarily
to increased personnel costs.
Revenues
(36.0%) Propeity Tax
(3.1%) Lic. & Permits
(26.5%) Gen. Sales Tax
(12.1%) Gross Receipts Tax
(6.0%) Intergov/Other
(2.5%) Interest Inc.
(13.8%) Fines/Fees
Expenditures
(45.9%) Public Safety
(14.5%) Gen. Gov.
(14.0%) Nondept.
(3.6%) Streets
(10.0%) Parts/Rec/Lib (12.0%) Debt Service
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 slight decrease in
water revenues as a result of a wet year. Comparative data for the past two fiscal
years are presented in the following table.
1997 1996
Income before operating transfers 1,492,044 $1,331,796
Net revenue available for debt service 2,430,849 $2,402,055
Debt service requirements 527,355 $ 521,480
Coverage 4.61 times 4.61 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 FY97, $564,253 of revenue was generated and $66,624
of costs were incurred, excluding debt service cost related to capital improvements.
Capital improvements were initiated in FY92 relating to the Drainage Utility System and
continue through FY97.
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 fund. Revenue of $834,012 was generated, while class expenses were
$814,546. Both experienced an increase from prior year activity. Euless' Arbor Daze
is funded in this account.
Softball World Fund was added in fiscal year 1996 to promote adult softball programs
through league, tournament, and special events. Revenue of $1,001,571 was
collected for league fees, concession sales, and sale of sporting goods. Expenses
were $921,244.
v
The Golf Course Fund and Athletic Complex were established as enterprise funds in
1996. The golf course opened May 1997 and had net income including transfers of
$494,623.
Debt Administration. General obligation debt, which is directly tax supported, totaled
$6,126,586 at September 30, 1997. 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 - $5,950,999; ratio of net bonded debt to assessed value is
0.50% and net bonded debt per capita is $144. Tables 8-12 in the Statistical Section
of this report present more detailed information about the debt position of the City.
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 and 1996
for a total of $10, 340, 000.
Outstanding revenue bonds, which are secured by the net revenues of the various
Enterprise Funds, totaled $16,970,000 at September 30, 1997.
The City has maintained its A+ and A Ratings on general obligation and revenue debt
from Standard and Poors and has maintained its Al 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 $1,663,462. Interest is an important non -tax
revenue for the City. Throughout 1997, the City continually invested 100% of available
funds. This 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 $1,083,333.
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, 1997, the general fixed
assets of the City amounted to $22,222,037. 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.
vi
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, 1996. 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.
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, L.L.P. for
their invaluable assistance in producing this document.
Respectfully submitted,
&o:6 44u
Loretta Getchell, CPA
Director of Finance
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 September30,
1996. 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 20 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, 1996
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.
,AGE OFFip
k\ O ST
',/UNITEDSTA�TES y
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6CCNCALa
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President
Executive Director
viii
LcY‘e;JA7,44
To-ifiHart, City Manager
November, 1997
Bob McFarland 1
City Attorney
Gary McKamie
Police Chief
Patrol
Crim. Invest.
Services:
Jail
Communications
Records
Community Service
Scott Campbell
Administrative
Assistant
Tom Cox
Dir. of
Susan Crim
City Secretary
Support Services
Fleet Services
Facility Maint.
Library Wastewater
Personnel Animal Control
Risk/Benefits Meter Reading
Info. Services
Purchasing
Recycling
1 Franchises
Randy Byers
Dir. of
Public Works
Streets
Water
Organizational Chart
George Boring
City Judge
Joe Hennig
Assistant
City Manager
Rick Hcro1d
P 1 K ckemeyer
City Engineer
Dir. of
Community
Services
Parks
Green House
Recreation
Texas Star
Sports Complex
Athletic Complex
Golf Course
Conference Center
Softball World
Lordta Getchell
Director of '1
Finance
I;
• Engineering., ;,' Accounting ; Plarining
ConstnAction inipeCtiOn:Vtility Billing 'Code Enforcement
CIP Manig4inentg Env. Health
Traftle Safety lyinn.Cotirt Building
Drainage pbti;Mgriit. Inspections
'•;:n
Bo Bass
Dir. of Planning
& Development
Municipal Court
of Record
David Witcher
Diredor of
Economic Dev.
Economic
Development
Lee Koontz
Fire Chief
Suppression
Ambulance
Fire Educ. & Prevent.
Fire Marshal
Emergency Mgmt.
Jenny Kratz
Media & Community
Relations
(f&-A�n i iul� V` &v%
IktiGINL seclos
WEAVER
TIDWELL
L. L. t.
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
307 14st Serena) Street
Suile 1500
Fort 11iut). Texas 76102
817.332.7905
F 817.429.5936
DALLAS OFFICE
I r r 21 Meru 1)/'ire
Suite 1700
Dn/Jar. 7exu, 75 25l
WORLDWIDE AFFILIATIONS
THROUGH
SUMMIT INTERNATIONAL
ASSOCIATES, INC.
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
We have audited the accompanying general purpose financial statements of the City
of Euless, Texas as of and for the year ended September 30, 1997, 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 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, 1997, 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.
aid ` d 4A /?, ce6c
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
December 5, 1997
3003
1
L../ 74(7.6 iicf7i-/A.
COMBINED FINANCIAL STATEMENTS - OVERVIEW
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
ASSETS AND OTHER DEBITS
Deposits and investments, at cost
Investments, at market
Receivables:
Property taxes
Accounts receivable and unbilled revenue
Grants receivable
Accrued interest
Due from other funds
Due from other governments
Prepaids and deposits
Inventories, at cost
Restricted assets
General fixed assets
Net utility plant and equipment
in service
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
General
Fund
$ 4,879,615
293,380
114,657
95,790
344,917
36,025
29,046
$ 5,793,430
Governmental Fund Types
Special
Revenue
Funds
$ 3,852,392
4,524
818,256
193,475
21,000
Debt
Service
Fund
$ 209,527
99,209
812
Capital •
Projects
Funds
$ 4,254,677
31,887
2,153,634
$ 4,889,647 $ 309,548 $ 6,440,198
The Notes to the Financial Statements are an integral part of this statement. 2
(1 of 2)
Proprietary Fiduciary Totals
Fund Types Fund Types Account Groups (Memorandum only)
Internal General General
Enterprise Service Agency Fixed Long-term
Funds Funds Funds Assets Debt 1997 1996
$ 6,110,923 $ 1,290,105 $ 37,607 $ $ $ 20,634,846 $ 28,313,888
3,327,191 3,327,191 2,875,009
392,589 354,752
1,511,549 2,258 1,628,464 2,954,399
260,000 260,000
81,249 213,450 207,159
809,917 3,782,619 88,111
20,561 558,953 368,460
86,267 143,292 55,342
128,126 157,172 49,698
3,613,687 3,613,687 3,556,372
22,222,037 22,222,037 20,391,610
37,972,475 1,049,803 39,022,278 29,898,320
270,154 270,154 273,802
1,148,517 1,148,517 1,075,900
22,670,233 22,670,233 22,115,341
$ 50,844,347 $ 2,362,727 $ 3,364,798 $ 22,222,037 $ 23,818,750 $ 120,045,482 $ 112,578,163
3
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
LIABILITIES, FUND EQUITY
AND OTHER CREDITS
Liabilities:
Accounts payable
Accrued insurance claims
Accrued salaries and wages
Restricted customer and escrow deposits
Accrued interest
Due to other funds
Bonds, certificates of obligation and tax notes
payable
Capital leases payable
Accreted interest payable
Deferred revenue
Compensated absences
Deferred compensation benefits payable
Due to other governments
Total liabilities
Fund equity and other credits:
Investment in general fixed assets
Net contributed capital
Retained earnings:
Reserved for:
Debt service and construction
Insurance
Workers' compensation
Risk management
Computer
Western Hills
Emergency
Recycling
Unreserved
Fund balances:
Reserved for:
Debt service
Computer
Park improvements
Recycling
Development agreements
Prepaids
Betterment
Fire truck
Western Hills
PD facility
Unreserved:
Designated for:
Contingency
Emergency
Undesignated
Total fund equity and other credits
Total liabilities, fund equity and other credits
General
Fund
Governmental Fund Types
Special Debt
Revenue Service
Funds Fund
$ 613,882 $ 33,771 $
211,856
116,414 2,159,288
377,744
1,319,896 2,193,059
100,000
4,606
3,184
36,025
23,106
87,500
175,000
119,890
500,000
500,000
2,924,223
4,473,534
$ 5,793,430
935,203
96,234
96,234
213,314
Capital
Projects
Funds
$ 13,867
195,047
786,917
995,831
1,272,214
1,761,385 4,172,153
2,696,588 213,314 5,444,367
$ 4,889,647 $ 309,548 $ 6,440,198
The Notes to the Financial Statements are an integral part of this statement. 4
Enterprise
Funds
$ 871,176
102,417
1,057,435
91,943
720,000
16,970,000
89,015
19,901,986
10,281,735
620,080
200,000
175,000
500,000
31,311
19,134,235
30,942,361
$ 50, 844, 347
Proprietary
Fund Types
Internal
Service
Funds
$ 79,693
70,000
Fiduciary
Fund Type
Agency
Funds
3,327,191
37,607
149,693 3,364,798
25,670
200,000
200,000
1,787,364
2,213,034
$ 2,362,727
Account Groups
General General
Fixed Long-term
Assets Debt
21,796, 586
34,438
1,268,428
719,298
23,818,750
22,222,037
22,222,037
Totals
(Memorandum only)
1997
$ 1,612,389
70,000
314,273
1,252,482
91,943
3,782,619
38,766,586
34,438
1,268,428
562,993
719,298
3,327,191
37,607
51,840,247
22,222,037
10,281,735
620,080
25,670
200,000
200,000
200,000
175,000
500,000
31,311
20,921,599
1,148,517
100,000
4,606
3,184
1,272,214
36,025
23,106
87,500
175,000
119,890
500,000
500,000
8,857,761
68,205,235
(2 of 2)
1996
$ 1,715,916
70,000
413,850
919,378
179,993
88,111
40,076,465
51,926
382,314
668,276
2,875,009
62,441
47,503,679
20,391,610
8,759,786
792,266
41,000
200,000
200,000
175,000
500,000
19,712
16,762,662
1,075,900
75,000
1,094
3,183
1,374,610
48,414
23,106
500,000
500,000
13,631,141
65,074,484
$ 3,364,798 $ 22,222,037 $ 23,818,750 $ 120,045,482 $ 112,578,163
5
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES -ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
Revenues:
General property tax
Gross receipts tax
General sales tax
Fines and fees
Licenses and permits
Interest income
DEA revenues
Intergovernmental
Other revenues
Total revenues
Expenditures:
Current:
City council/administrative
Finance
Police department
Fire department
Administrative services
Planning and development
General and administrative
Police department
Parks/recreation/library
Street maintenance
Economic development
Betterment
Staff services
Nondepartmental
Debt service:
Principal
Interest and fiscal charges
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses)
Net proceeds from issuance of sales tax revenue bonds
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses
Fund balances, beginning of year
Equity transfer
Fund balances, end of year
General
Fund
$ 4,061,347
2,080,121
4,555,694
2,337,343
530,525
410,266
192,742
836,423
15, 004, 461
381,757
568,880
5,010,367
3,177,209
528,641
741,482
1,781,630
639,906
20,990
372,026
2,473,872
15, 696, 760
(692,299)
594,018
(475,000)
119,018
(573,281)
5,046,815
$ 4,473,534
Special
Revenue
Funds
$
296,427
2,780,701
182,922
111,984
40,383
3,412,417
43,060
149,203
408,457
61,855
310,000
625,202
376,954
1,974,731
1,437,686
1,065,505
(3,095,176)
(2,029,671)
(591,985)
3,288,573
$ 2,696,588
The Notes to the Financial Statements are an integral part of this statement.
6
Debt Capital Totals
Service Projects (Memorandum Only)
Fund Funds 1997 1996
$ 2,125, 312 $ $ 6,186, 659 $ 6,564,483
2,376,548 2,468,958
7,336,395 5,418,995
2,337,343 2,233,554
530,525 459,553
21,806 259,585 874,579 1,030,807
111,984 129,048
192,742 84,447
3,719 880,525 869,547
2,147,118 263,304 20, 827,300 19,259,392
381,757 352,733
568,880 576,991
5,010,367 4,500,463
3,177,209 2,945,447
528,641 481,058
111,981 853,463 3,874,608
43,060 500,502
149,203 113,191
247,210 2,437,297 1,527,718
639,906 619,098
67,169 129,024
20,990 23,660
372,026 354,166
2,473,872 1,810,322
1,340,000 1,650,000 1,505,000
805,300 1,430, 502 962,579
2,456,552 2,833,506 1,014,842
2,145,300 2,882,912 22,699,703 21,162,378
1,818 (2,619,608) (1,872,403) (1,902,986)
5,601,677
1,289, 386 2,948,909 635,619
(55,116) (1,855, 859) (5,481,151) (1,644,384)
(55,116) (566,473) (2,532,242) 4,592,912
(53,298) (3,186,081) (4,404,645) 2,689,926
266,612 8,630,448 17,232,448 13,802,522
740,000
$ 213,314 $ 5,444,367 $ 12,827,803 $ 17,232,448
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, 1997
General property tax:
Current and delinquent
taxes
Penalty and interest
Gross receipts tax:
Southwestern Bell Telephone
Company
Texas Utilities Electric
Company
Lone Star Gas Company
Cable TV
City Garbage Service
Others
General sales tax
Fines and fees:
Franchise fees
Municipal Court fines
Dog licenses and pound
fees
Ambulance fees
Licenses and permits:
Building permits
Miscellaneous permits
Electric licenses
Interest income
Intergovernmental
Other revenues:
DEA funds
Library receipts
Rental income
Texas Court cost service
fees
Jail income
Swimming pools
Miscellaneous income
Total revenues
Actual
$ 4,029,632
31,715
4,061,347
364,095
1,262,375
135,199
154,750
89,102
74,600
2,080,121
4,555,694
517,187
1,723,469
13,905
82,782
2,337,343
339,634
156,732
34,159
530,525
General Fund
Budget
$ 4,019,000
32,371
4,051,371
364,000
1,262,375
140,000
152,903
85,000
71,376
2,075,654
4,469,500
515,129
1,666,099
13,000
199,934
2,394,162
225,000
155,502
38,000
418,502
410,266 390,000
192,742 195,380
27,993 25,000
38,020 43,500
54,655 50,000
239,781 273,900
16,234 15,000
459,740 480,638
836,423 888,038
$ 15,004,461 $ 14,882,607
Variance
Favorable
(Unfavorable)
$ 10,632 $
(656)
9, 76
95
(4,801)
1,847
4,102
3,224
4,467
Actual
296,427
296,427
86,194 2,780,701
2,058
57,370
905
(117,152)
(56,819)
114,634
1,230
(3,841)
112,023
20,266
(2,638)
2,993
(5,480)
4,655
(34,119)
1,234
(20,898)
(51,615)
$ 121,854
182,922
111,984
40,383
152,367
$ 3,412,417
(1 of 2)
Special Revenue Funds
Variance
Favorable
Budget (Unfavorable)
$
300,000
300,000
2,713,524
156,028
76,451
37,526
113,977
$ 3,283,529
$
(3,573)
(3,573)
67,177
26,894
35,533
2,857
38,390
$ 128,888
The Notes to the Financial Statements are an integral part of this statement. 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, 1997
Expenditures:
Current:
City council/administration
Finance
Police department
Fire department
Administrative services
Planning and development
General and administrative
Police department
Parks/recreation/library
Street maintenance
Economic development
Betterment
Staff services
Nondepartmental
Debt service
Principal payments
Interest payments
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess (deficiency) of
revenues and other
financing sources over
expenditures and other
financing uses (573,281)
Fund balance, beginning of year 5,046,815
Fund balance, end of year $ 4,473,534
Actual
$ 381,757
568,880
5,010,367
3,177,209
528,641
741,482
1,781,630
639,906
20,990
372,026
2,473,872
General Fund
Budget
$ 382,296
574,128
5,050,492
3,230,918
550,804
745,702
1,788,168
654,206
21,300
406,592
3,177,377
15,696,760 16,581,983
(692,299) (1,699,376)
594,018 588,185
(475,000) (315,000)
119,018 273,185
(1,426,191)
5,046,815
$ 3,620,624
Variance
Lle
(Unfavorable)
$ 539
5,248
40,125
53,709
22,163
4,220
6,538
14,300
310
34,566
703,505
Actual
43,060
149,203
408,457
61,855
(2 of 2)
Special Revenue Funds
Variance
Favorable
Budget (Unfavorable)
49,561
217,356
416,564
6,501
68,153
8,107
121,560 59,705
310,000 310,000
625,202 625,204 2
376,954 465,606 88,652
885,223 1,974,731 2,205,851 231,120
1,007,077
5,833
(160,000)
(154,167)
1,437,686 1,077,678 360,008
1,065,505 1,065,505
(3,095,176) (929,886) (2,165,290)
(2,029,671) (929,886) (1,099,785)
852,910 (591,985)
3,288,573
$ 852,910 $ 2,696,588
147,792 (739,777)
3,288,573
$ 3,436,365 $ (739,777)
The Notes to the Financial Statements are an integral part of this statement.
9
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS -ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
Operating revenues:
Water service
Sewer service
Drainage fees
Recreation fees
Insurance premiums
Service fees and miscellaneous
Total operating revenues
Operating expenses:
General and administrative
Water production
Water distribution
Utility engineering
Sewage collection and treatment
Nondepartmental
Geographic info
Service center
Drainage
Recreation classes
Golf course
Clubhouse
Pro Shop
Food and beverage
Conference center
Cart operations
Driving range
Athletic complex
Softball complex
Insurance costs
Depreciation
Amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment income
Interest on bonds
Gain on sale of fixed assets
Total nonoperating revenues, net
Income (loss) before operating transfers
Operating transfers in
Operating transfers out
Net income
Add depreciation on fixed assets acquired
with contributed capital
Increase in retained earnings
Retained earnings, beginning of year
Retained earnings, end of year
Enterprise
Funds
$ 6,057,528
3,301,836
564,253
834,012
2,667,138
13, 424, 767
498,950
2,920,957
468,118
159,013
1,483,336
1,759,001
165,297
559,832
66,624
814,546
977,630
26,944
58,194
184,255
71,809
28,159
416
46,341
921,244
1,016,879
22,650
12, 250,195
1,174, 572
740,869
(539,616)
201,253
1,375,825
3,104,744
(844,446)
3,636,123
421,331
4,057,454
16,603,172
$ 20,660,626
Internal
Service
Funds
1,703,872
469,649
2,173,521
524,020
1,633,233
222,639
2,379,892
(206,371)
48,014
11,979
59,993
(146, 378)
420,000
(148,056)
125,566
125,566
2,087,468
$ 2,213,034
Totals
(Memorandum Only)
1997 1996
$ 6,057,528
3,301,836
564,253
834,012
1,703,872
3,136, 787
15,598,288
1,022,970
2,920,957
468,118
159,013
1,483,336
1,759,001
165,297
559,832
66,624
814,546
977,630
26,944
58,194
184,255
71,809
28,159
416
46,341
921,244
1,633,233
1,239,518
22,650
14,630,087
968,201
788,883
(539,616)
11,979
261,246
1,229,447
3,524,744
(992,502)
3,761,689
421,331
4,183,020
18, 690, 640
$ 22,873,660
$ 6,412,077
3,358,542
550,152
729,346
1,822,356
1,354,463
14, 226, 936
729,727
3,499,893
407,178
179,475
1,502,901
1,565,960
129,338
534,134
52,876
709,975
164,858
9,035
490,597
1,451,289
1,177, 776
18,254
12,623,266
1,603,670
964,158
(878,107)
18,317
104,368
1,708,038
1,804,384
(795,619)
2,716,803
421,373
3,138,176
15, 552, 464
$ 18,690,640
The Notes to the Financial Statements are an integral part of this statement. 10
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
(1 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 1997 1996
OPERATING ACTIVITIES:
Operating income (loss) $ 1,174,572 $ (206,371) $ 968,201 $ 1,603,670
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization expenses 1,039,529 222,639 1,262,168 1,196,030
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue (422,185) 1,295 (420,890) (11,806)
Due from other funds (722,618) (722,618) 68,697
Due from other governments (20,561) (20,561)
Prepaids and deposits (79,339) (79,339) (6,286)
Inventory (90,455) (90,455) (37,672)
Increase (decrease) due to net change in:
Accounts payable (159,754) 49,940 (109,814) 163,688
Accrued salaries and wages (14,740) (14,740) 28,589
Due to other funds 720,000 720,000
Customer and escrow deposits 140,039 140,039 70,096
Deferred revenue 8,542 8,542 (7,800)
Total adjustments 419,019 253,313 672,332 1,463,536
Net cash provided by
operating activities 1,593,591 46,942 1,640,533 3,067,206
NONCAPITAL FINANCING ACTIVITIES :
Interest paid on bonds (500,496) (500,496) (760,003)
Interest paid on tax notes payable (20,392) (20,392)
Reduction in bonds payable (400,000) (400,000) (390,000)
Proceeds from issuance of bonds 12,531,288
Proceeds from issuance of tax notes payable 730,997 730,997
Operating transfers in 3,104,744 420,000 3,524,744 1,804,384
Operating transfers out (844,446) (148,056) (992,502) (795,619)
Net cash provided by
noncapital financing activities 2,070,407 271,944 2,342,351 12,390,050
CAPITAL AND RELATED
FINANCING ACTIVITIES:
Contributions in aid to construction 957,854 957,854 667,185
Contribution in aid refunded (740,000)
Purchase of utility plant and equipment
in service (10,006,221) (377,908) (10,384,129) (9,643,902)
Proceeds from sale of utility plant in
service 25,839 25,839 33,900
Net cash used in capital and related
financing activities (9,048,367) (352,069) (9,400,436) (9,682,817)
The Notes to the Financial Statements are an integral part of this statement. 11
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS -ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
INVESTING ACTIVITIES:
Purchase of investment securities
Interest received on investments
Net cash provided by
investing activitives
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 1997 1996
$ (11,837) $ $ (11,837) $ (818,691)
674,436 48,014 722,450 999,206
662,599 48,014 710,613 180,515
(4,721,770) 14,831 (4,706,939) 5,954,954
11,913,346 1,275,274 13,188,620 7,233,666
$ 7,191,576 $ 1,290,105 $ 8,481,681 $ 13,188,620
Reconciliation of cash to balance sheet:
Cash - current $ 6,110,923
Cash - restricted assets 1,080,653
Cash and cash equivalents $ 7,191,576
Restricted assets:
Cash $ 1,080,653
Investments 2,495,684
Interest receivable 37,350
Total restricted assets $ 3,613,687
The Notes to the Financial Statements are an integral part of this statement. 12
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
Govemmental Accounting Standards Board (GASB) is the accepted standard -setting body for
establishing govemmental 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 govemment organizations, for
which the primary govemment is financially accountable, and other organizations for which the
nature and significance of their relationship with the primary govemment 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 goveming 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 govemment. 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 entities were found to be component units of the City and are included in the
combined financial statements:
Euless Development Corporation - The City created the Corporation for the purpose of
promoting parks, library services, and economic development within the City. The
Corporation's governing body is substantially the same as the governing body of the City of
Euless. There are seven directors, four of whom are members of the City Council and make
up a voting majority of the City Council. The remaining three members are residents of the
City. All Board members are appointed by the City Council. The Corporation is authorized to
sell bonds or other forms of indebtedness. Upon dissolution of the Corporation, the assets of
the Corporation shall be distributed to the City of Euless, Texas. The Corporation provides all
of its services to the City of Euless, Texas.
13
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Reporting Entity - continued
A blended presentation has been used to report the financial information of this component
unit. The financial statements for the Corporation were obtained from the Board of Directors.
The financial information for the Corporation is available from the City of Euless, Texas.
Crime Control District - The City created the District for the purpose of proactively combating
rising crime rates by setting up additional crime prevention and rehabilitation programs within
the City. The District's goveming body is substantially the same as the goveming body of the
City of Euless. There are seven directors, four of whom are members of the City Council and
make up a voting majority of the City Council. The remaining three members are residents of
the City. All Board members are appointed by the City Council. The District is authorized to
sell bonds or other forms of indebtedness. Upon dissolution of the District, the assets of the
District shall be distributed to the City of Euless, Texas. The District provides all of its
services to the City of Euless, Texas. A blended presentation has been used to report the
financial information of this component unit. The financial statements for the District were
obtained from the Board of Directors. The financial information for the District is available
from the City of Euless, Texas.
Fund Accounting
The City uses funds and account groups to report 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: govemmental, proprietary and fiduciary. Each
category, in turn, is divided into separate "fund types."
Govemmental funds are used to account for all or most of the City's general activities, including
the collection and disbursement of earmarked moneys (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).
14
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds are accounted for using a current financial
resources measurement focus. With this measurement focus, only current assets and current
liabilities generally are included in the balance sheet. Operating statements of these funds
present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures
and other financing uses) in net current assets.
All proprietary funds are accounted for on a flow of economic resources measurement focus.
With this measurement focus, all assets and all liabilities associated with the operation of these
funds are included on the balance sheet. Fund equity (i.e., assets net of liabilities) is segregated
into contributed capital and retained earnings components. Proprietary fund -type operating
statements present increases (e.g., revenues) and decreases (e.g., expenses) in net assets.
The proprietary funds are accounted for using the accrual basis of accounting. Revenues are
recognized when they are earned, and expenses are recognized when they are incurred. The
City applies all GASB pronouncements, FASB Statements and interpretations, APB Opinions
and ARB's issued on or before November 30, 1989. The City has elected to apply only GASB
pronouncements issued after November 30, 1989 for proprietary activity.
The modified accrual basis of accounting is used by all govemmental 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.
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.
Revenues considered susceptible to accrual are sales taxes, property taxes, gross receipts tax
and interest 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 govemment before it has legal claim to them, such 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.
15
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Budgetary Data
The City Council follows these procedures in establishing budgetary data reflected in the financial
statements:
1. Prior to August 1, the City Manager submits to the City Council a proposed operating budget
for the fiscal year commencing the following October 1. The operating budget includes
proposed expenditures and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 21, the budget is legally enacted through passage of an ordinance and a
budgetary report is prepared.
4. The City Manager is authorized to transfer budgeted amounts between departments within
any fund; however, any revision that alters the total expenditures of any fund must be
approved by the City Council. The budget presented reflects revisions made by the City
Manager during the year. Total expenditures approved by the City Council have not been
altered. 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 altematively 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.
16
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash and investment accounts. Related interest income is allocated to the various
funds based primarily on ownership by each fund of specific investments. Cash equivalents
consist of highly liquid investments with original maturities of three months or less.
For purposes of the combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $1,080,653 and
$1,053,324 at September 30, 1997 and 1996, respectively) as set forth above to be cash
equivalents.
Short-term investments consist of certificates of deposits and U.S. Govemment 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. Govemment or its agencies;
obligations of the State of Texas or its agencies; and certain other obligations, repurchase
agreements, money market mutual funds and certificates of deposits within established criterion.
Taxes
Property taxes attach as an enforceable lien on property as of January 1, are levied for
appropriation for the fiscal year beginning on October 1, are due October 1, and become
delinquent on February 1. Property taxes are accrued based on the period for which they are
levied and available. Delinquent taxes estimated to be not available are treated as deferred
revenue. Property taxes for cities, including those applicable to debt service, are limited by the
Texas Constitution to $2.50 per $100 of assessed valuation. The City's current tax rate is
$.54498 per $100 of assessed valuation ($.606 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 and Enterprise Funds. Inventories consist
primarily of expendable supplies and gift shop merchandise for the General Fund and pro shop
merchandise for the Enterprise Funds.
17
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
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.
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:
Equipment
Waterworks and sanitary sewer system and improvements
Capitalized Interest
5 - 15 years
33 1/3 years
Interest costs are capitalized when incurred by proprietary funds on debt where proceeds were
used to finance the construction of assets. Interest earned on proceeds of tax-exempt
borrowing arrangements restricted to the acquisition of qualifying assets is offset against interest
costs in determining the amount to be capitalized. The Golf Course Fund and Athletic Complex
Fund incurred total interest costs of $553,465 and $51,341, respectively, with $128,583 and $0
of interest revenue used to offset interest costs, respectively, and $424,882 and $51,341 of
interest capitalized, respectively.
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation. The City's policy is
to pay the employee accumulated vacation upon termination. The City does not pay employees
for accumulated sick leave upon termination. 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 govemmental 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.
18
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Comparative Data
Comparative total data for the prior year has 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.
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-extemal 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.
Reclassifications
Certain 1996 amounts have been reclassified to conform to the 1997 presentation.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
At September 30, 1997, the bank balances were $629,035 and the ledger balances of the City's
book cash deposits were $(457,071). Of the bank balances, $629,035 were protected by
federal depository insurance or by collateral held by the City's agent in the City's name.
19
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS - continued
Investments
At September 30, 1997, the City's investments are categorized as either (1) insured or registered
or for which the securities are held by the City or its agent in the City's name; (2) uninsured and
unregistered with securities held by the pledging financial institution's trust department or agent
in the City's name; or (3) uninsured and unregistered with securities 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
Categories
Carrying
2 3 Amount
$344,204 $24,324,050 $24,668,254
Market
Value
$24,375,139
3.327.191 3.327.191
12Z.221445 i2Z,702,a Q
The Deferred Compensation Agency Fund investments are held by independent investment
managers for the ultimate benefit of the City employees and are not covered by the state statutes
restricting investment instruments and requiring collateralization.
NOTE 3. LONG-TERM DEBT
A summary of long-term debt transactions for the year ended September 30, 1997, is as follows:
General Long -Term Debt
Account Group:
General Obligation Bonds
Certificates of Obligation
Sales tax revenue bonds
Capital leases
Compensated absences
Accreted interest
Balance
Beginning
of Year
(Restated)
$ 7,261,586
6,105,000
10, 080, 000
51,926
668,276
1,102,004
$25.268.792
Increase
Decrease
Balance
End
of Year
$ $1,135,000 $ 6,126, 586
205,000 5,900,000
310,000 9,770,000
17,488 34,438
51,022 719,298
166,424 1,268,428
L.21Z.4411.2.4$$.111.$1U
20
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
The City had one issue containing zero coupon bonds for which interest had not been accrued at
September 30, 1996. Accordingly, General Long -Term Debt has been restated to record accreted
interest at September 30, 1996, in the amount of $1,102,004. Interest accreted on these bonds
during the current year was $166,424.
The General Long -Term Debt Account Group(GLTDAG) has also been restated to correct an error in
the recording of the Tax and Waterworks and Sewer System Revenue Certificates of Obligation,
Series 1995, between the GLTDAG and the Athletic Complex Fund at September 30, 1996. The
$985,426 of debt recorded in the Athletic Complex Fund at September 30, 1996 has appropriately
been recorded entirely in the GLTDAG and shown as contributed capital in the Athletic Complex
Fund, due to the debt service payments being paid entirely from collections of ad valorem taxes
recorded in the General Fund.
Balance
Beginning
of Year
(Restated) Increase Decrease
Proprietary Fund Types:
Water and Sewer
Revenue Bonds $ 2,920,000 $
Drainage Utility
Revenue Bonds
Tax and Golf Course
Surplus Revenue
Certificates of Obligation
Tax and Softball Works Park
Surplus Revenue
Certificates of Obligation
Tax Notes 750.000
116.624.444 $ 751444
2,000,000
9,700,000
2,000,000
Debt outstanding at September 30, 1997 consists of the following:
General Obligation Bonds
Certificates of Obligation
Sales Tax
Revenue Bonds
Capital leases
Water and Sewer
Revenue Bonds
Drainage Utility
Revenue Bonds
Range of
Interest Rates
2.80 to 9.20%
5.40 to 7.13%
5.20 to 8.10%
5.97 to 13.96%
4.50 to 6.50%
4.75 to 6.70%
Outstanding
Balance
$6,126,586
5,900,000
9,770,000
34,438
2,550,000
1,970,000
Balance
End
of Year
$ 370,000 $ 2,550,000
30,000 1,970,000
1 400,,Q44
Current
Maturities
$1,070,000
375,000
335,000
17,245
395,000
100,000
9,700,000
2,000,000
750.000
11.4.970,Q44
Long -Term
Maturities
$5,056,586
5,525,000
9,435,000
17,193
2,155,000
1,870,000
21
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
Tax and Golf Course
Surplus Revenue
Certificates of Obligation
Tax and Softball World Park
Surplus Revenue
Certificates of Obligation
Tax Notes
Range of
Interest Rates
Outstanding
Balance
5.25 to 5.90% 9,700,000
4.10 to 5.25% 2,000,000
4.45 to 6.45% 750,000
Current Long -Term
Maturities Maturities
25,000 9,675,000
65,000 1,935,000
170,000 580,000
The debt matures serially through the year 2027 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.
1998
1999
2000
2001
2002
2003-2007
2008-2012
2013-2017
Less interest
Principal
Sales
General Certifi- Tax
Obligation cates of Revenue
Bonds Obligation Bonds
Capital
Leases
$ 1,303,987 $ 695,052 $ 927,673 $ 19,711
1,219,060 696,792 910,587 19,711
1,144,455 614,953 897,693
1,162, 065 503,614 888,583
1,145,315 500,311 884,033
3,287,664 2,212,635 4,418,491
164,400 2,213,155 4,432,276
1.788.017 2.800,500
9,426,946 9,224,529 16,159,836
3.300.360 3.324.529 6.389.836
Water and
Sewer
Revenue
Bonds Subtotal
$ 527,355 $ 3,473,778
496,641 3,342,791
505,871 3,162, 972
513,625 3,067,887
519,475 3,049,134
471,225 10,390,015
6,809,831
4,588,517
39,422 3,034,192 37,884,925
4,984 484,192 13,503,901
$_24.42,2 12. th/CI $24 381_024
22
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
Tax and Tax and
Golf Softball
Course World Park
Utility Surplus Surplus
Drainage Revenue Revenue
Revenue Certs. of Certs. of Tax
Bonds Obliaation Obliaation Notes Subtotal Grand Total
1998 $ 224,082 $ 578,466 $ 158,776 $201,973 $ 1,163,297 $ 4,637,075
1999 223,432 602,152 161,009 212,168 1,198,761 4,541,552
2000 222,342 624,528 158,139 208,506 1,213,515 4,376,487
2001 225,852 645,590 160,166 101,959 1,133,567 4,201,454
2002 228,652 715,340 157,082 102,374 1,203,448 4,252,582
2003-2007 1,152,398 3,556,012 806,153 5,514,563 15,904,578
2008-2012 699,024 3,556,226 820,963 5,076,213 11,886,044
2013-2017 3,560,092 676,116 4,236,208 8,824,725
2018-2022 3,566,300 3,566,300 3,566,300
2023-2027 3.563.422 3.563.422 3.563.422
Less interest
2,975,782 20,968,128 3,098,404 826,980 27,869,294 65,754,219
1.005.782 11.268.128 1.098,404 76.980 13.449,294 26.953.195
Principal 11.9Z.1QQQ $_2.1QQ.Q22 $2-000.000 1.7.5.11.222 1114212122 12$11Q1.122.4
General Obligation Bonds authorized and unissued as of September 30, 1997, amounted to
$300,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1997,
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, 1997, $1,500,000 of bonds defeased in the 1991 refunding are still outstanding.
Water and Sewer Revenue Bonds and Refunding Bonds and Drainage Utility Revenue Bonds are
payable solely from and equally secured by a first lien on and pledge of the net revenue of the
City's combined waterworks and sanitary sewer system and the net revenues of the City's drainage
utility system, respectively.
In accordance with the water and sewer revenue and refunding bond ordinances, the following
special reserves were established:
Reserve for revenue bond debt service - to be used for retirement of the current portion of principal
and interest payments due.
Reserve for revenue bond retirement - to be used for payment of principal and interest on bonds at
any time where there is not sufficient money available in the revenue bond debt service fund. No
payments are required into this fund after accumulating therein an amount equal to the average
annual principal and interest requirements of the bonds outstanding.
Reserve for emergency - to be used for payment of extraordinary repairs or replacements to the
system necessitated by an emergency for which no other funds are available. Should the reserve
for bond debt service and/or reserve for bond retirement prove deficient, the reserve for emergency
shall be used for the purpose of meeting principal and/or interest requirements of the bonds.
23
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
All funding requirements for the above reserves were met at September 30, 1997. 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 Tax Notes, Series 1996, for the purchase of golf carts and equipment for $750,000
during the year ended September 30, 1997. The Notes will be guaranteed by ad valorem taxes
levied on all taxable property within the City. However, other sources of revenue are being utilized
to pay debt.
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, 1997, the balance in the property sales
proceeds account was $549,556 and is included in restricted assets in the accompanying balance
sheet.
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50 year contract dated September 25, 1973, with the Trinity River Authority
of Texas (the "TRA") whereby the TRA agrees to provide supplemental water and sewage
treatment for consideration. Payments by the City are based on metered usage at rates designed
to charge the City a prorata share of the TRA's annual operating and maintenance expenses,
principal and interest requirement on bonds issued by the TRA. Payments under this contract
approximated $3,982,386 in 1997 and are included as operating expenses of the water and sewer
fund. The payments decreased approximately $589,632 in comparison to 1996.
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.
24
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
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,
1996 Additions Deletions 1997
Land $ 3,289,419 $ 535,140 $ $ 3,824,559
Buildings 8,795,947 8,795,947
Improvements
other than buildings 3,371,627 533,679 3,905,306
Machinery and equipment 4.934,617 761.608 5.696.225
124221,514 11,.42L $ 122,222,12E
The following is a summary of utility plant and equipment in service at September 30, 1997
included in the proprietary funds:
Enterprise Funds
Internal
Water and Drainage Recreation Golf Course Softball Athletic Service
Sewer Fund Utility Fund Classes Fund Complex Complex Funds
Land and building $1,713,567 $ $ $ 348,135 $1,358,679 $ $
Equipment 1,363,999 6,510 1,376 534,756 45,676 1,939,300
Improvements 2,466,720 554,337 10,794 40,390
Waterworks
and sanitary
sewer system 29,083,945
Construction
in progress 9.702.309 5.150.447
32,161,511 2,473,230 1,376 11,139,537 1,415,149 5,150,447 1,979,690
Less accumulated
depreciation 14,229.081 136.853 2.841 929,887
11.Z-922.42Q 12,1,11a1ZZ L_1.EL $1.1..122LIZ $1..412.1II$ 1/1L144Z 11 Q421111
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.
25
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 8. INTERFUND ASSETS/LIABILITIES
Receivable Fund Payable Fund Amount
Water and Sewer Golf Course $ 320,000
Softball Complex Athletic Complex 400,000
Water and Sewer General 87,299
Debt Service General 812
Special Revenue Capital Projects 786,917
Special Revenue General 28,303
Golf Course Special Revenue 2,618
Capital Projects Special Revenue 2,153,634
Special Revenue Special Revenue 3.036
12.E 12112
NOTE 9. CONTRIBUTED CAPITAL
During fiscal 1997, contributed capital of the Enterprise Funds increased by developer's and other
funds contributions in aid to construction of $1,943,280 and decreased $421,331 representing
current year depreciation on assets acquired with contributed capital.
NOTE 10. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City participates in
the Texas Municipal League 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 $60,000 and aggregate claims in
excess of $1,083,333. During fiscal 1997, the City and City's employees contributed approximately
$989,595 and $414,487, respectively, for medical coverage. The City's contributions are
accounted for as quasi-extemal transactions. Claims incurred but not reported have been
considered by the City in determining the claims liability at September 30, 1997 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 1997, the City contributed approximately $299,790 to the
fund for workers' compensation.
26
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 10. RISK MANAGEMENT - continued
Changes in the balances of claims liabilities are as follows:
Unpaid claims, beginning of year
Incurred claims
Paid claims
Unpaid claims, end of year
1997
$ 70,000
1,591,925
1,591,925
$ 70.000
1996
$ 70,000
1,282,163
1.282.163
1_7_Q.000
The City had no significant reductions in insurance coverage from the year ended September 30,
1996. Settlement amounts have not exceeded insurance coverage for the year ended
September 30, 1997 or any of the three preceding years ended September 30.
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 688 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 in existence and if the
employee's salary had always been the average of his salary in the last three years that are one
year before the effective date. At retirement, the benefit is calculated as if the sum of the
employee's accumulated contributions with interest and the employer -financed monetary credits
with interest were used to purchase an annuity.
27
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
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 goveming body of the City, within the
options available in the state statutes goveming 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 goveming 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 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 1997. 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 1997 was $11,770,980 and the City and City's employees
contributions were based on a payroll of $11,340,676. Both the City and the covered employees
made the required contributions, amounting to $1,529,741 (13.01% of covered payroll for the
months in calendar year 1996, 9.67% normal cost plus 3.34% to amortize the unfunded actuarial
liability, and 13.66% for the months in calendar year 1997, 10.08% normal cost plus 3.58% to
amortize the unfunded actuarial liability) for the City and $793,844 (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 1997 by 0.07% 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
28
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Funding Status and Progress
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 Govemmental 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, 1996. Because of the money -purchase nature of the plan, the interest rate
assumption, currently 8.0% 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 102.7% of book value as of December 31,
1996.
Pension Benefit Obligation
Annuitants currently receiving benefits
Terminated employees
Current employees
Accumulated employee contributions including allocated invested earnings
Employer -financed vested
Employer -financed nonvested
Total
Net Assets Available for Benefits, at Book Value
Unfunded Pension Benefit Obligation
$ 2,521,101
3,943,773
9,443,548
16,998,826
1,715,925
$34.623.173
$27,342,327
$ 7,280,846
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 $98,588.
29
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Trend information for the past three years for TMRS is as follows:
Year
1995
1996
1997
Net Assets Available
For Benefits as a
Percent of Pension
Benefit Obligation
77.16%
78.32%
78.97%
Unfunded Pension
Benefit Obligation as a
Percent of Covered Payroll
66.47%
66.78%
64.20%
City Contribution
as a Percent of
Covered Payroll
11.37%
12.71%
13.00%
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 Noncontributory Deferred Compensation Plan (the "Plan")
consistent with Internal Revenue Code Section 457. Plan asset ownership remains with the City
until the employee terminates with the City, retires or experiences an unforeseeable emergency.
Employees may contribute voluntarily to the Plan up to $7,500 annually.
Assets of the plan are invested primarily in various mutual funds. The current market value of the
funds' investments at September 30, 1997 was $3,327,191. The Plan has no unfunded liabilities.
All contributions to the Plan are remitted bi-weekly to the administrator of the Plan.
All amounts of compensation deferred under the Plan, all assets purchased with these amounts,
and all income attributable to these amounts, are (until paid or made available to the employee or
other beneficiary) solely the property and rights of the City subject only to the claims of the City's
general creditors. The City has no legal liability for losses of the plan, but does have the duty of
due care that would be required of an ordinary prudent investor. The City believes it is unlikely that
it will use the assets to satisfy the claims of general creditors in the future. The Plan is reported as
a fiduciary fund in the accompanying financial statements.
NOTE 13. SEGMENTS OF ENTERPRISE ACTIVITIES
The City maintains six 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, Golf Course, Softball Complex, and Athletic Complex provide
various recreational services and activities.
30
CITY OF EULESS, TEXAS
NOTES TO FINANCIAL STATEMENTS
NOTE 13. SEGMENTS OF ENTERPRISE ACTIVITIES - continued
Segment information for the City's Enterprise Funds is as follows:
Water and Drainage
Sewer Fund Utility Fund
Operating revenues $ 10,120,286
Depreciation 939,564
Operating
income (loss) 1,158,457
Operating
transfers in
transfers out 777,187
Net income 714,857
Current capital
contributions 675,757
Property, plant
and equipment:
Additions 1,205,833
Total Assets 28,302,698
Net working capital 6,506,568
Long-term debt,
including
current portion
Total Equity
Recreation Golf Softball
Classes Course Complex
$ 564,253 $ 834,012 $ 904,645 $ 1,001,571
74,474 2,841
417,185 19,466 ( 448,960)
969,258
286,630 19,466 494,623
22,097
28,775
27,642
3,220,147
812,122
1,376
42,129
33,468
4,860,455
11, 877, 286
120,635
75,444
9,511
8,476
$
Athletic
Complex Total
$13, 424, 767
1,016,879
( 47,020) 1,174,572
2,125,975 3,104,744
38,484 844,446
2,112, 071 3,636,123
1,245,426 1,943,280
31,469 3,879,446 10,006,221
2,130,873 5,271,214 50,844,347
272,850 ( 147,547) 7,598,096
2,550,000 1,970,000 10,450,000 2,000,000 16,970,000
$24,375,932 $ 1,224,272 $ 34,844 $ 578,596 $ 112,831 $ 4,615,886 $30,942,361
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, 1997.
1998 $19,711
1999 19,711
Total minimum lease payments 39,422
Less: amount representing interest 4,984
Present value of future minimum lease payments $34.438
31
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 sales tax revenues and
expenditures of the Euless Development Corporation, a component unit of the
City of Euless. The expenditures of the half -penny sales tax can only be spent
on parks, library, debt service, and economic development activities within the
City of Euless.
Fort Worth DEA Task Force Fund - to account for the City's portion of revenues
and expenditures received from collection of confiscated drug money. Money is
distributed to various other cities that are also involved in the collection process.
Crime Control and Prevention District Fund - to account for the revenues and
expenditures of this component unit of the City of Euless. The revenues are
collected from sales taxes and expenditures can only be spent on new
operating and capital activities specifically for approved crime control and
prevention programs.
Law Enforcement Fund - to account for grant revenues received which must be
used for police expenditures.
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
ASSETS
Deposits and Investments
Accrued interest receivable
Prepaids
Due from other govemments
Due from other funds
Hotel/
Motel
Fund
$ 80,402
Total assets $ 80,402
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable
Due to other funds
Total liabilities
FUND EQUITY:
Fund Balances:
Reserve for debt service
Unreserved, undesignated 80,402
Total fund equity 80,402
Total liabilities and fund equity $ 80,402
Police
Drug
Enforce-
ment
Fund
Half
Penny
Sales Tax
Fund
DEA
Task
Force
Fund
$ 316,016 $ 2,790,436 $ 3,845
4,524
130,414
786,917
$ 316,016 $ 3,712,291 $ 3,845
Crime
Control and
Prevention
District
Fund
Local
Law
Enforcement
Totals
199/ 1996
$ 661,693 $ $ 3,852,392 $ 3,163,242
4,524 9,363
21,000 21,000
63,061 193,475 117,537
31,339 818,256
$ 745,754 $ 31,339 $ 4,889,647 $ 3,290,142
$ 266 $ 11,342 $ 84 $ 22,079 $
3,036 2,156,252
3,302 2,167,594 84 22,079
312,714
312,714
$ 316,016
935,203
609,494
1,544,697
$ 3,712,291
3,761
3,761
$ 3,845
$ 33,771 $ 1,569
2,159,288
2,193,059 1,569
935,203
723,675 31,339 1,761,385
723,675 31,339 2,696,588
$ 745,754 $ 31,339 $ 4,889,647
809,288
2,479,285
3,288,573
$ 3,290,142
32
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
Police Crime
Drug Half DEA Control and
Hotel/ Enforce- Penny Task Prevention Local
Motel ment Sales Tax Force District Law Totals
Fund Fund Fund Fund Fund Enforcement 1997 1996
Revenues:
Gross receipts tax $ 296,427 $ $ - $ - $ - $ $ 296,427 $ 493,863
General sales tax 1,859,461 921,240 2,780,701 1,806,264
Interest income 7,364 9,693 148,456 114 16,314 981 182,922 26,656
DEA revenues 111,984 111,984 129,084
Other revenues 1,514 11,547 27,322 40,383 54,181
Total revenues 305,305 121,677 2,007,917 11,661 937,554 28,303 3,412,417 2,510,048
Expenditures:
General and administrative 37,208 5,852 43,060 500,502
Police department 16,174 14,144 118,885 149,203 113,191
Parks 164,607 164,607
Library 243,850 243,850
Economic development 61,855 61,855
Debt service
Principal 310,000 310,000 260,000
Interest and fiscal charges 625,202 625,202 549,288
Capital outlay
and maintenance 77,180 21,502 278,272 376,954 292,433
Total expenditures 114,388 37,676 1,411,366 14,144 397,157 1,974,731 1,715,414
Other financing sources (uses):
Operating transfers in 1,062,469 3,036 1,065,505
Operating transfers out (533,028) (3,036) (2,559,112) (3,095,176) K200,000)
Total other
financing sources (uses) (533,028) (3,036) _(1,496,643) 3,036 (2,029,671) _ (200,000)
Excess of revenues and
other financing sources (uses)
over expenditures (342,111) 80,965 (900,092) (2,483) 540,397 31,339 (591,985) 594,634
Fund balance,
beginning of year 422,513 231,749 2,444,789 6,244 183,278 3,288,573 7,235,425
Equity transfer (4,541,486)
Fund balance, end of year $ 80,402 $ 312,714 $ 1,544,697 $ 3,761 $ 723,675 $ 31,339 $ 2,696,588 $ 3,288,573
33
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1997
Hotel/Motel Fund Police/Drug Enforcement Fund
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Revenues:
Gross receipts tax $ 296,427 $ 300,000 $ (3,573) $ $ $
General sales tax
Interest income 7,364 5,500 1,864 9,693 6,000 3,693
DEA revenues 111,984 76,451 35,533
Other revenues 1,514 1,514
Total revenues 305,305 307,014 (1,709) 121,677 82,451 39,226
Expenditures:
General and administrative 37,208 43,459 6,251
Police department 16,174 11,283 (4,891)
Parks
Library
Economic Development
Debt Service Principal
Debt Service Interest
Capital outlay
and maintenance 77,180 112,000 34,820 21,502 17,156 (4,346)
Total expenditures 114,388 155,459 41,071 37,676 28,439 (9,237)
Other financing sources (uses):
Operating transfers in
Operating transfers out (533,028) (503,027) (30,001) (3,036) (3,036)
Total other
financing sources (uses) (533,028) (503,027) (30,001) (3,036) (3,036)
Excess of revenues and
other financing sources
over expenditures (342,111) (351,472) 9,361 80,965 54,012 26,953
Fund balance,
beginning of year 422,513 422,513 231,749 231,749
Fund balance, end of year $ 80,402 $ 71,041 $ 9,361 $ 312,714 $ 285,761 $ 26,953
34
Half Penny Sales Tax Fund DEA Task Force Fund
Variance Variance
Favorable Favorable
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ $ $ - $ $ $
1,859,461 1,853,500 5,961
148,456 135,000 13,456 114 28 86
11,547 8,712 2,835
2,007,917 1,988,500 19,417 11,661 8,740 2,921
5,852 6,102 250
14,144 13,359 (785)
164,607 168,405 3,798
243,850 248,159 4,309
61,855 121,560 59,705
310,000 310,000
625,202 625,204 2
1,091 1,091
1,411,366 1,479,430 68,064 14,144 14,450 306
1,062,469 1,062,469
(2,559,112) (426,859) (2,132,253)
(1,496,643) (426,859) (1,069,784)
(900,092) 82,211 (982,303) (2,483) (5,710) 3,227
2,444,789 2,444,789 6,244 6,244
$ 1,544,697 $ 2,527,000 $ (982,303) $ 3,761 $ 534 $ 3,227
35
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1997
Revenues:
Gross receipts tax
General sales tax
Interest income
DEA revenues
Other revenues
Total revenues
Crime Control and Prevention District Fund
Variance
Favu, ante
Actual Budget (Unfavorable)
$ - $ - $
921,240 860,024
16,314 9,500
937,554 869,524
Expenditures:
General and administrative
Police department 118,885 192,714
Parks
Library
Economic Development
Debt Service Principal
Debt Service Interest
Capital outlay
and maintenance 278,272 335,359
Total expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other
financing sources (uses)
397,157 528,073
Excess of revenues and
other financing sources
over expenditures 540,397 341,451
Fund balance,
beginning of year 183,278 183,278
Fund balance, end of year
$ 723,675 $ 524,729 $
- $
61,216
6,814
68,030
73,829
57,087
130,916
Actual
981
27,322
28,303
3,036
3,036
198,946 31,339
Local Law Enforcement Block Grant
Variance
Favorable
Budget (Unfavorable)
$ - $
27,300
27,300
981
22
1,003
3,036
3,036
27,300 4,039
198,946 $ 31,339 $ 27,300 $ 4,039
36
CAPITAL PROJECT FUNDS
Capital project funds are used to account for the acquisition and construction of major capital
facilities other than those financed by proprietary funds and trust funds.
Park Improvements Certificates of Obligation Fund (1990) - to account for the
construction of park facilities. Financing was provided from the sale of
Certificates of Obligation of $2,000,000 in 1990.
Street Assessments Fund - to account for receipt of funds for special
assessment collection and subsequent construction of improvements to various
street and drainage projects.
Street Capital Improvements Fund- 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.
Half -Penny Sales Tax Construction in Progress Fund - to account for bond
proceeds to be expended for construction projects funded by the Euless
Development Corporation, a component unit of the City of Euless.
Developers' Contribution Fund - to account for funds received for the purpose of
making new and future improvements to various development areas within the
City.
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
ASSETS
Deposits and investments $ 9,888 $ 42,377 $ 2,568,276
Bond proceeds receivable
Accrued interest receivable 12,500
Due from funds
Total assets
LIABILITIES AND FUND EQUITY
$ 9,888 $ 42,377 $ 2,580,776
Accounts payable $ - $ - $
Customer and escrow deposits 189,296
Due to funds
Total liabilities 189,296
Fund Balances:
Reserve for development
agreements
Unreserved, undesignated 9,888 42,377 2,391,480
Total fund equity 9,888 42,377 2,391,480
Total liabilities and fund equity $ 9,888 $ 42,377 $ 2,580,776
37
Half -Penny
Sales Tax Developers'
Construction Contribution Totals
in Progress Fund 1997 1996
$ 2,119 $ 1,632,017 $ 4,254,677 $ 7,316,852
1,461,438
19,387 31,887 60,355
2,153,634 2,153,634
$ 2,155,753 $ 1,651,404 $ 6,440,198 $ 8,838,645
$ 4,207 $ 9,660 $ 13,867 $ 206,215
5,751 195,047 1,982
786,917 786,917
791,124 15,411 995,831 208,197
1,272,214 1,272,214 1,374,610
1,364,629 363,779 4,172,153 7,255,838
1,364,629 1,635,993 5,444,367 8,630,448
$ 2,155,753 $ 1,651,404 $ 6,440,198 $ 8,838,645
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
Revenues:
Interest income
Assessments
Total revenues
Expenditures:
Planning and development
Parks/recreation/library
Economic development
Capital outlay and maintenance
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
$
$ $ 180,995
3,719
3,719 180,995
7,799 2,246,557
Excess (deficiency) of revenues
over expenditures (7,799) 3,719 (2,065,562)
Other financing sources (uses):
Net proceeds from issuance
of certificates of obligation
Operating transfers in
Operating transfers out
200,000
Total other financing sources (uses) 200,000
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses
(7,799)
3,719 (1,865,562)
Fund balances, beginning of year 17,687 38,658 4,257,042
Equity transfer
Fund balances, end of year $ 9,888 $ 42,377 $ 2,391,480
39
Half -penny
Sales tax Developers'
Construction Contribution Totals
in Progress Fund 1997 1996
- $ 78,590 $ 259,585 $ 614,439
3,719 117,713
78,590 263,304 732,152
111,981 111,981 3,230,441
247,210 247,210
67,169 67,169
202,196 2,456,552 722,409
(516,575) (33,391) (2,619,608) (3,220,698)
5,601,677
1,089,386 1,289,386
(1,855,859) (1,855,859) (874,384)
(766,473) (566,473) 4,727,293
(1,283,048) (33,391) (3,186,081) 1,506,595
2,647,677 1,669,384 8,630,448 1,842,367
5,281,486
$ 1,364,629 $ 1,635,993 $ 5,444,367 $ 8,630,448
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 govemment'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.
Softball Complex Fund - to account for the operation and maintenance of the
softball complex, supported primarily by user charges.
Athletic Complex Fund - to account for the operation and maintenance of the
athletic complex, supported primarily by user charges.
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
ASSETS
Current assets:
Deposits and investments
Accounts and unbilled revenue less allowance
for uncollectibles of $1,463 for water and sewer
and $5,926 for drainage utility
Grants receivable
Accrued interest receivable
Prepaids and deposits
Inventory
Due from other funds
Total current assets
Water and Drainage
Sewer Utility
$ 4,657,462 $ 777,310
1,462,423
81,249
86,267
23,074
407,299
6,717,774
Restricted assets:
Revenue bond debt service:
Cash with paying agent 8,143
Revenue bond retirement:
Investment with paying agent, at cost 82,877
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investment with paying agent, at cost 549,556
Capital projects account:
Cash and cash equivalents 15,075
Short-term investments 1,363,251
Customer deposits:
Cash and cash equivalents 1,057,435
Interest receivable on investments 37,350
Total restricted assets 3,613,687
34,812
812,122
Bond issuance cost 85,373 107,473
Less accumulated amortization 46,566 35,825
Net bond issuance cost 38,807 71,648
Utility plant and equipment in service, at cost
Land and Building 1,713,567
Equipment 1,363,999 6,510
Improvements 2,466,720
Waterworks and sanitary sewer system 29,083,945
Construction in progress
32,161,511 2,473,230
Less accumulated depreciation 14,229,081 136,853
Net utility plant and equipment in service 17,932,430 2,336,377
TOTAL ASSETS $28,302,698 $ 3,220,147
41
Recreation
Classes
Golf
Course
$ 40,753 $ 530,253
14,314
40,753
83,412
2,618
630,597
116,003
8,851
107,152
348,135
1,376 534,756
554,337
1,376
1,376 11,139,537
$ 42,129 $ 11,877,286
9,702,309
11,139,537
Softball
Complex
Athletic
Complex
1997
Totals
(1 of 2)
1996
$ 257,364 $ (152,219) $ 6,110,923 $ 10,860,022
21,640
400,000
679,004
42,879
3,318
39,561
1,358,679
45,676
10,794
1,415,149
2,841
260,000
107,781
14,259
1,273
12,986
5,150,447
5,150,447
1,412,308 5,150,447
1,511,549
260,000
81,249
86,267
128,126
809,917
8,988,031
8,143
82,877
500,000
549,556
15,075
1,363,251
1,057,435
37,350
3,613,687
365,987
95,833
270,154
3,420,381
1,952,317
3,031,851
29,083,945
14,852,756
52,341,250
14,368,775
37,972,475
$ 2,130,873 $ 5,271,214 $ 50,844,347
1,307,145
75,186
6,928
37,672
87,299
12,374,252
6,676
642,057
500,000
159,784
129,252
1,182,006
917,396
19,201
3,556,372
346,984
73,182
273,802
3,246,574
1,272,384
28,168,535
9,654,329
42,341,822
13,351,896
28,989,926
$ 45,194,352
42
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
Water and Drainage
Sewer Utility
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 118,726 $
Accrued salaries and wages 92,480
Deferred revenue
Total current liabilities 211,206
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,057,435
Current portion of bonds payable 395,000 100,000
Current portion of tax notes payable
Accrued interest 35,452 25,875
Bonds payable 2,155,000 1,870,000
Tax notes payable
Deferred revenue 72,673
Due to other funds
Total liabilities 3,926,766 1,995,875
Fund equity:
Contributed capital:
From State
From General Fund
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
15,525,830
239,617
15,000
15,780,447
6,766,235
9,014,212
Retained earnings:
Reserved for:
Computer 200,000
Western Hills 175,000
Revenue bond retirement 620,080
Emergency 500,000
Recycling 31,311
Total reserved 1,526,391
Unreserved 13,835,329 1,224,272
Total Retained earnings (deficit) 15,361,720 1,224,272
Total fund equity 24,375,932 1,224,272
TOTAL LIABILITIES AND FUND EQUITY $ 28,302,698 $ 3,220,147
43
Recreation
Classes
Golf
Course
Softball
Complex
Athletic
Complex
$ 7,285 $ 483,683 $ 6,154 $ 255,328
9,937
16,342
7,285 509,962 6,154 255,328
7,285
25,000
170,000
18,728
9,675,000
580,000
320,000
11,298,690
22,097
22,097
22,097
65,000
11,888
1,935,000
2,018,042
400,000
655,328
260,000
985,426
1,245,426
1,245,426
34,844 556,499 112,831 3,370,460
34,844 556,499 112,831 3,370,460
34,844 578,596 112,831 4,615,886
$ 42,129 $ 11,877,286 $ 2,130,873 $ 5,271,214
(2 of 2)
Totals
1997 1996
$ 871,176 $ 940,886
102,417 107,220
16,342
989,935 1,048,106
1,057,435
585,000
170,000
91,943
15,635,000
580,000
72,673
720,000
19,901,986
260,000
985,426
15,525,830
239,617
37,097
17,047,970
6,766,235
10,281,735
200,000
175,000
620,080
500,000
31,311
1,526,391
19,134,235
20,660,626
30,942,361
$ 50,844,347
917,396
400,000
179,993
17,205,426
80,473
19,831,394
14,850,073
239,617
15,000
15,104,690
6,344,904
8,759,786
175,000
792,266
500,000
19,712
1,486,978
15,116,194
16,603,172
25,362,958
$ 45,194,352
44
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
Water and Drainage
Sewer Utility
Operating revenues:
Water service $ 6,057,528 $
Sewer service 3,301,836
Drainage fees 564,253
Recreation fees
Service fees and miscellaneous 760,922
Total operating revenues 10,120,286 5b4,253
Operating expenses:
General and administrative 498,950
Water production 2,920,957
Water distribution 468,118
Utility engineering 159,013
Sewage collection and treatment 1,483,336
Nondepartmental 1,759,001
Geographic information 165,297
Service center 559,832
Drainage 66,624
Recreation classes
Golf course
Clubhouse
Pro Shop
Food and Beverage
Conference Center
Cart operations
Driving range
Athletic complex
Softball complex
Depreciation 939,564 74,474
Amortization 7,761 5,970
Total operating expenses 8,961,829 147,068
Operating income (loss) 1,158,457 417,185
Nonoperating revenues (expenses)
Investment income 485,067 23,639
Interest on bonds (151,480) (125,419)
Total nonoperating revenues (expenses), net 333,587 (101,780)
Income (loss) before operating transfers 1,492,044 315,405
Operating transfers in
Operating transfers out (777,187) (28,775)
Net income 714,857 286,630
Add depreciation on fixed assets
acquired with contributed capital 421,331
Increase in retained earnings 1,136,188 286,630
Retained earnings, beginning of year 14,225,532 937,642
Retained earnings, end of year $ 15,361,720 $ 1,224,272
45
Recreation
Classes
$
834,012
834,012
814,546
$
Golf
Course
$
Softball
Complex
904,645 1,001,571
904,645 1,001,571
977,630
26,944
58,194
184,255
71,809
28,159
416
Athletic
Complex 1997
$ $ 6,057,528
3,301,836
564,253
834,012
2,667,138
13,424,767
46,341
921,244
2,841
6,198 2,042 679
814,546 1,353,605 926,127 47,020
19,466 (448,960) 75,444 (47,020)
142,028 18,535 71,600
(167,703) (95,014)
(25,675) (76,479) 71,600
19,466 (474,635) (1,035) 24,580
969,258 9,511 2,125,975
(38,484)
19,466 494,623 8,476 2,112,071
Totals
498,950
2,920,957
468,118
159,013
1,483,336
1,759,001
165,297
559,832
66,624
814,546
977,630
26,944
58,194
184,255
71,809
28,159
416
46,341
921,244
1,016,879
22,650
12,250,195
1,174,572
740,869
(539,616)
201,253
1,375,825
3,104,744
(844,446)
3,636,123
421,331
19,466 494,623 8,476 2,112,071 4,057,454
15,378 61,876 104,355 1,258,389 16,603,172
$ 34,844 $ 556,499 $ 112,831 $ 3,370,460 $ 20,660,626
1996
$ 6,412,077
3,358,542
550,152
729,346
1,081,009
12,131,126
358,432
3,499,893
407,178
179,475
1,502,901
1,565,960
129,338
534,134
52,876
709,975
164,858
9,035
490,597
921,829
18,254
10,544,735
1,586,391
864,269
(878,107)
(13,838)
1,572,553
1,724,384
(752,841)
2,544,096
421,373
2,965,469
13,637,703
$ 16,603,172
46
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization
(Increase) decrease due to changes in:
Accounts receivable and unbilled revenue
Due from other funds
Prepaids and deposits
Inventory
Increase (decrease) due to net changes in:
Accounts payable
Accrued salaries and wages
Due to other funds
Customer and escrow deposits
Deferred revenue
Total adjustments
Net cash provided by (used in) operating activities
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Interest paid on tax notes payable
Reduction in bonds payable
Proceeds from issuance of tax notes payable
Proceeds from issuance of bonds
Operating transfer in
Operating transfer out
Net cash provided by (used in) noncapital financing activities
CAPITAL AND RELATED FINANCING
ACTIVITIES
Contributions in aid to construction
Contribution in aid refunded
Purchase of utility plant and equipment
in service
Net cash used in capital and related financing activities
INVESTING ACTIVITIES
Purchase of investment securities
Interest received on investments
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
Water and
Sewer
$ 1,158,457
947,325
(194,756)
(320,000)
(79,339)
(23,074)
(150,145)
(14,740)
140,039
(7,800)
297,510
1,455,967
(151,480)
(370,000)
(777,187)
(1,298,667)
675,757
(1,205,833)
(530,076)
(11,837)
418,636
406,799
34,023
5,704,092
$ 5,738,115
Drainage
Utility
$ 417,185
80,444
4,666
(3,655)
81,455
498,640
(125,419)
(30,000)
(28,775)
(184,194)
(27,642)
(27,642)
23,639
23,639
310,443
466,867
$ 777,310
47
Recreation Golf
Classes Course
Softball
Complex
$ 19,466 $ (448,960) $ 75,444
4,319
4,319
23,785
6,198
17,284
(2,618)
(83,412)
118,203
320,000
16,342
391,997
(56,963)
(128,583)
(20,392)
730,997
969,258
1,551,280
22,097
(1,376) (4,860,455)
(1,376) (4,838,358)
22,409
18,344
$ 40,753
142,028
142,028
(3,202,013)
3,732,266
$ 530,253
$ 257,364
4,883
(400,000)
16,031
(64,144)
(443,230)
(367,786)
(95,014)
Athletic
Complex
Totals
1997 1996
$ (47,020) $ 1,174,572
679
(249,379)
(64,332)
400,000
86,968
39,948
9,511 2,125,975
(38,484)
(85,503) 2,087,491
260,000
(31,469) (3,879,446)
(31,469) (3,619,446)
18,535 71,598
18,535 71,598
(466,223) (1,420,409)
723,587 1,268,190
$ (152,219)
1,039,529
(422,185)
(722,618)
(79,339)
(90,455)
(159,754)
(14,740)
720,000
140,039
8,542
419,019
1,593,591
(500,496)
(20,392)
(400,000)
730,997
3,104,744
(844,446)
2,070,407
957,854
(10,006,221)
(9,048,367)
(11,837)
674,436
662,599
(4,721,770)
11,913,346
$ 7,191,576
$ 1,586,391
940,083
(8,253)
131,302
(6,286)
(37,672)
192,960
28,589
70,096
(7,800)
1,303,019
2,889,410
(760,003)
(390,000)
12,531,288
1,724,384
(752,841)
12,352,828
667,185
(740,000)
(9,220,094)
(9,292,909)
(818,691)
899,317
80,626
6,029,955
5,883,391
$ 11,913,346
48
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
(1 of 2)
1997 1996
ASSETS
Current assets:
Deposits and investments $ 4,657,462 $ 4,650,768
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 1997 and 1996 1,462,423 1,267,667
Accrued interest receivable 81,249 32,967
Inventory 23,074
Prepaids and deposits 86,267 6,928
Due from other funds 407,299 87,299
Total current assets 6,717,774 6,045,629
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond retirement:
Investments with paying agent, at cost
Revenue bond emergency:
Short-term investments
Property sale proceeds account:
Investments with paying agent, at cost
Capital projects account:
Cash and cash equivalents
Short-term investments
Customer deposits:
Cash and cash equivalents
Interest receivable on investments
Total restricted assets
Bonds issuance cost
Less accumulated amortization
Net bond issuance cost
8,143 6,676
82,877 642,057
500,000 500,000
549,556 159,784
15,075 129,252
1,363,251 1,182,006
1,057,435 917,396
37,350 19,201
3,613,687 3,556,372
85,373 85,373
46,566 38,805
38,807 46,568
Utility plant and equipment in service, at cost:
Land 1,528,966 1,528,966
Equipment 1,548,600 1,258,177
Waterworks and sanitary sewer system 29,083,945 28,168,535
32,161,511 30,955,678
Less accumulated depreciation 14,229,081 13,289,517
Net utility plant and equipment in service 17,932,430 17,666,161
TOTAL ASSETS $ 28,302,698 $ 27,314,730
49
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
(2 of 2)
1997 1996
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 118,726 $ 268,871
Accrued salaries and wages 92,480 107,220
Total current liabilities
211,206 376,091
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,057,435 917,396
Current portion of bonds payable 395,000 370,000
Accrued interest 35,452 35,452
Bonds payable 2,155,000 2,550,000
Deferred revenue 72,673 80,473
Total liabilities 3,926,766 4,329,412
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
15,525,830 14,850,073
239,617 239,617
15,000 15,000
15,780,447 15,104,690
6,766,235 6,344,904
9,014,212 8,759,786
Retained earnings:
Reserved for:
Computer 200,000 175,000
Western Hills 175,000
Revenue bond retirement 620,080 792,266
Recycling 31,311 19,712
Emergency 500,000 500,000
Total reserved 1,526,391 1,486,978
Unreserved 13,835,329 12,738,554
Total retained earnings 15,361,720 14,225,532
Total fund equity 24,375,932 22,985,318
TOTAL LIABILITIES AND FUND EQUITY $ 28,302,698 $ 27,314,730
50
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
1997 1996
Operating revenues:
Water service $ 6,057,528 $ 6,412,077
Sewer service 3,301,836 3,358,542
Service fees and miscellaneous 760,922 423,712
Total operating revenues 10,120,286 10,194,331
Operating expenses:
General and administrative 498,950 358,432
Water production 2,920,957 3,499,893
Water distribution 468,118 407,178
Utility engineering 159,013 179,475
Sewage collection and treatment 1,483,336 1,502,901
Nondepartmental 1,759,001 1,565,960
Geographic information 165,297 129,338
Service center 559,832 534,134
Depreciation 939,564 892,293
Amortization 7,761 7,761
Total operating expenses 8,961,829 9,077,365
Operating income 1,158,457 1,116,966
Nonoperating revenues (expenses)
Investment income 485,067 385,035
Interest on bonds (151,480) (170,205)
Total nonoperating revenues
(expenses), net 333,587 214,830
Income before operating transfers 1,492,044 1,331,796
Operating transfers in 25,000
Operating transfers out (777,187) (560,432)
Net income 714,857 796,364
Add depreciation on fixed assets acquired
with contributed capital 421,331 421,373
Increase in retained earnings 1,136,188 1,217,737
Retained earnings, beginning of year 14,225,532 13,007,795
Retained earnings, end of year $ 15,361,720 $ 14,225,532
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
(1 of 2)
1997 1996
General and administrative:
Salaries and benefits $ 273,513 $ 259,001
Postage and supplies 57,117 48,508
Maintenance of office machinery 5,061 4,261
Bad debts 27,707 18,477
Other 135,552 28,185
498,950 358,432
Water production:
Salaries and benefits 322,069 290,221
Operating supplies and expense 59,477 49,117
Maintenance of structures and equipment 6,887 8,007
Contracts - Trinity River Authority (161,715) (170,048)
Water - Trinity River Authority 2,694,239 3,322,596
2,920,957 3,499,893
Water distribution:
Salaries and benefits 363,704 313,250
Operating supplies and expenses 28,538 22,908
Maintenance of structures and equipment 43,995 38,106
Sewer - Trinity River Authority 31,881 32,914
468,118 407,178
Utility engineering:
Salaries and benefits 125,258 148,071
Operating supplies and expenses 33,755 31,404
159,013 179,475
Sewage collection and treatment:
Salaries and benefits
Operating supplies and expenses
Maintenance of structures and equipment
Treatment fees - Trinity River Authority
231,454 246,712
41,202 38,619
1,903 1,062
1,208,777 1,216,508
1,483,336 1,502,901
Nondepartmental:
Salaries and benefits 474,946 417,803
Operating supplies and expenses 749,504 466,840
Contractual services 18,529 155,885
Franchise fees 516,022 525,432
1,759,001 1,565,960
52
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
(2 of 2)
1997 1996
Information system:
Salaries and benefits $ 118,618 $ 78,795
Operating supplies and expenses 11,465 13,158
Maintenance of machinery and equipment 32,012 35,602
Contractual services 3,202 1,783
165,297 129,338
Service center:
Salaries and benefits 217,626 192,466
Motor fuel and supplies 256,880 266,288
Maintenance of structures and equipment 55,258 47,723
Other 30,068 27,657
559,832 534,134
Depreciation and amortization 947,325 900,054
Total operating expenses $ 8,961,829 $ 9,077,365
53
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30,1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,1996
1997 1996
OPERATING ACTIVITIES
Operating income $ 1,158,457 $ 1,116,966
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization expenses 947,325 900,054
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue (194,756) 12,391
Due from other funds (320,000) 131,302
Prepaids and deposits (79,339) (6,286)
Inventory (23,074)
Increase (decrease) due to net changes in:
Accounts payable (150,145) (476,063)
Accrued salaries and wages (14,740) 28,589
Customer and escrow deposits 140,039 70,096
Deferred revenue (7,800) (7,800)
Total adjustments 297,510 652,283
Net cash provided by operating activities 1,455,967 1,769,249
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (151,480) (633,212)
Reduction in bonds payable (370,000) (365,000)
Operating transfers in 25,000
Operating transfers out (777,187) (560,432)
Net cash used in noncapital financing activities (1,298,667) (1,533,644)
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 675,757 667,185
Purchase of utility plant and equipment in service (1,205,833) (810,475)
Net cash used in capital and related financing activities (530,076) (143,290)
INVESTING ACTIVITIES
Purchase of investment securities
Interest received on investments
Net cash provided by (used in) investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(11,837) (818,691)
418,636 736,800
406,799 (81,891)
34,023 10,424
5,704,092 5,693,668
$ 5,738,115 $ 5,704,092
54
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1997
Capital
Operating Projects
Account Account
ASSETS
Current assets:
Deposits and investments $ 2,672,410 $
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 1,462,423
Accrued interest receivable 59,630
Inventory
Prepaids and deposits 86,267
Due from other funds 407,299
Total current assets 4,688,029
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond retirement:
Investments with paying agent, at cost
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investments with paying agent, at cost
Capital projects account:
Cash and cash equivalents 15,075
Short-term investments 1,363,251
Customer deposits:
Cash and cash equivalents 1,057,435
Interest receivable on investments 22,394
Total restricted assets 1,557,435 1,400,720
Bonds issuance cost 85,373
Less accumulated amortization 46,566
Net bond issuance cost 38,807
Utility plant and equipment in service, at cost:
Land 1,528,966
Building and equipment 1,480,976 4,280
Waterworks and sanitary sewer system 29,083,945
32,093,887 4,280
Less accumulated depreciation 14,229,081
Net utility plant and equipment in service 17,864,806 4,280
TOTAL ASSETS $ 24,149,077 $ 1,405,000
55
(1 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1997
$ 55,911 $ 1,929,141 $
21,619
23,074
78,985 1,950,760
8,143
82,877
549,556
$
$ 4,657,462
1,462,423
81,249
23,074
86,267
407,299
6,717,774
8,143
82,877
500,000
549,556
15,075
1,363,251
1,057,435
14,956 37,350
655,532 3,613,687
85,373
46,566
38,807
1,528,966
63,344 1,548,600
29,083,945
63,344 32,161,511
14,229,081
63,344 17,932,430
$ 655,532 $ 142,329 $ 1,950,760 $ - $ - $ 28,302,698
56
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1997
Capital
Operating Projects
Account Account
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 77,976 $ 29,263
Accrued salaries and wages 92,480
Total current liabilities 170,456 29,263
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,057,435.
Current portion of bonds payable 395,000
Accrued interest
Bonds payable 2,155,000
Deferred revenue 72,673
Total liabilities 3,850,564
Fund equity:
Contributed capital:
From subdividers
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
13,789,751
239,617
15,000
14,044,368
6,766,235
7,278,133
Retained earnings:
Reserved for:
Computer 200,000
Western Hills 175,000
Revenue bond retirement
Recycling 31,311
Emergency 500,000
Total reserved 906,311
Unreserved 12,114,069 1,375,737
Total retained earnings 13,020,380 1,375,737
Total fund equity 20,298,513 1,375,737
TOTAL LIABILITIES AND FUND EQUITY $ 24,149,077 $ 1,405,000
57
(2 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1997
$ $ 11,487 $ $ $ $ 118,726
92,480
11,487 211,206
1,057,435
395,000
35,452 35,452
2,155,000
72,673
35,452 11,487 3,926,766
1,736,079 15,525,830
239,617
15,000
1,736,079 15,780,447
6,766,235
1,736,079 9,014,212
200,000
175,000
620,080 620,080
31,311
500,000
620,080 1,526,391
130,842 1,950,760 (1,736,079) 13,835,329
620,080 130,842 1,950,760 (1,736,079) 15,361,720
620,080 130,842 1,950,760 24,375,932
$ 655,532 $ 142,329 $ 1,950,760 $ - $ - $ 28,302,698
58
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30,1997
Capital
Operating Projects
Account Account
Operating revenues:
Water service $ 6,057,528 $
Sewer service 3,301,836
Service fees and miscellaneous 758,449
Total operating revenues 10,117,813
Operating expenses:
General and administrative 393,663 103,825
Water production 2,920,957
Water distribution 468,118
Utility engineering 159,013
Sewage collection and treatment 1,483,336
Nondepartmental 1,759,001
Geographic information 165,297
Service center
Depreciation 939,564
Amortization 7,761
Total operating expenses 8,296,710 103,825
Operating income (loss) 1,821,103 (103,825)
Nonoperating revenues (expenses)
Investment income 363,715 16,300
Interest on bonds
Total nonoperating revenues
(expenses), net 363,715 16,300
Income (loss) before operating transfers 2,184,818 (87,525)
Operating transfers from other funds or other water
and sewer accounts 145,000 166,590
Operating transfers to other funds or other water
and sewer accounts (1,652,819)
Net income (loss) 676,999 79,065
Add depreciation on fixed asset acquired
with contributed capital 421,331
Increase (decrease) in retained earnings 1,098,330 79,065
Retained earnings (deficit), beginning of year 11,922,050 1,296,672
Retained earnings, end of year $ 13,020,380 $ 1,375,737
59
Bond
Reserve
Account
$
36,714
(63,900)
(27,186)
(27,186)
(145,000)
(172,186)
(172,186)
792,266
$ 620,080
$
Service
Center
Account
$
2,473
2,473
559,832
559,832
(557,359)
(557,359)
620,000
Impact
Fees
Account
675,757
675,757
Debt
Service
Account
$
1,462
1,462
675,757 (1,462)
(87,580)
68,338 (87,580)
744,095 (89,042)
89,042
68,338
62,641 744,095
62,641
68,201
$ 130,842
744,095
1,206,665
$ 1,950,760 $
Eliminations
$
(675,757)
(675,757)
Year Ended
September 30,
1997
$ 6,057,528
3,301,836
760,922
10,120,286
498,950
2,920,957
468,118
159,013
1,483,336
1,759,001
165,297
559,832
939,564
7,761
8,961,829-
(675,757) 1,158,457
(675,757)
(1,020,632)
1,020,632
(675,757)
(675,757)
(1,060,322)
$ (1,736,079)
485,067
(151,480)
333,587
1,492,044
(777,187)
714,857
421,331
1,136,188
14,225,532
$ 15,361,720
60
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1997
Total
Operating Construction Elimi- September 30,
Account in Progress nations 1997
ASSETS
Current assets:
Deposits and investments $ 359,282 $ 418,028 $ $ 777,310
Accounts and unbilled revenue
less allowance for uncollectibles of
$5,926 for drainage utility 34,812 34,812
Total current assets 394,094 418,028 812,122
Bond issuance cost 107,473 107,473
Less accumulated amortization 35,825 35,825
Net bond issuance cost 71,648 71,648
Utility plant and equipment
in service, at cost:
Equipment 6,510 6,510
Improvements 2,466,720 2,466,720
2,473,230 2,473,230
Less accumulated depreciation 136,853 136,853
Net utility plant and equipment in service 2,336,377 2,336,377
TOTAL ASSETS $ 2,730,471 $ 489,676 $ - $ 3,220,147
LIABILITIES AND FUND EQUITY
Current liabilities:
Accou,( NayaLle $ $ - $ $
Total current liabilities
Current portion of bonds payable 100,000 100,000
Accrued interest 25,875 25,875
Bonds payable 1,870,000 1,870,000
Total liabilities 1,995,875 1,995,875
Retained earnings:
Unreserved 2,730,471 (1,506,199) 1,224,272
Total fund equity 2,730,471 (1,506,199) 1,224,272
TOTAL LIABILITIES AND FUND EQUITY $ 2,730,471 $ 489,676 $ $ 3,220,147
61
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1997
Year Ended
Operating Construction Elimi- September 30,
Account in Progress nations 1997
Operating revenues:
Drainage fees $ 564,253 $ $ $ 564,253
Total operating revenues 564,253 564,253
Operating expenses:
Drainage 66,624 66,624
Depreciation 74,474 74,474
Amortization 5,970 5,970
Total operating expenses 141,098 5,970 147,068
Operating income (loss) 423,155 (5,970) 417,185
Nonoperating revenues (expenses):
Investment income 11,244 12,395 23,639
Interest on bonds (125,419) (125,419)
Total nonoperating revenues
(expenses), net 11,244 (113,024) (101,780)_
Income (loss) before
operating transfers 434,399 (118,994) 315,405
Operating transfers in 13,242 342,490 (355,732)
Operating transfers out (384,507) 355,732 (28,775)
Increase in
retained earnings 63,134 223,496 286,630
Retained earnings (deficit),
beginning of year 2,667,337 (1,729,695) 937,642
Retained earnings (deficit),
end of year $ 2,730,471 $ (1,506,199) $ $ 1,224,272
62
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 govemment and to other govemment 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 workers 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 FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
ASSETS
Deposits and investments
Receivables
Due from other governments
Total current assets
Utility plant and equipment,
at cost
Equipment
Improvements
Accumulated depreciation
Net utility plant and
equipment in service
TOTAL ASSETS
LIABILITIES AND
RETAINED EARNINGS
Equipment
Replacement
Fund
$ 448,976
20,561
469,537
1,939,300
40,390
1,979,690
929,887
1,049,803
Insurance
Fund
Risk
Manage-
ment
Fund
Cash and
Debt
Manage-
ment Fund
Total
1997 1996
$ 131,378 $ 709,156 $ 595 $ 1,290,105 $ 1,275,274
2,258 2,258 3,553
20,561
131,378 711,414 595 1,312,924 1,278,827
$ 1,519,340 $ 131,378 $ 711,414 $
Accounts payable $ 26,716 $ 35,708
Accrued insurance
claims 70,000
Total current liabilities
Retained earnings:
Reserved:
Insurance
Workers' compensation
Risk management
Total reserved
Unreserved
Total retained earnings
TOTAL LIABILITIES AND
RETAINED EARNINGS
26,716
1,492,624
1,492,624
$ 1,519,340
1,939,300 1,672,704
40,390
1,979,690 - 1,672,704
929,887 764,310
1,049,803 908,394
595 $ 2,362,727 $ 2,187,221
$ 16,674 $ 595 $ 79,693 $ 29,753
70,000 70,000
105,708 16,674
25,670
200,000
200,000
25,670 400,000
294,740
25,670 694,740
595
149,693
25,670
200,000
200,000
425,670
1,787,364
2,213,034
99,753
41,000
200,000
200,000
441,000
1,646,468
2,087,468
$ 131,378 $ 711,414 $ 595 $ 2,362,727 $ 2,187,221
63
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1996
Operating revenues:
Insurance premiums
Service fees and
miscellaneous
Total operating revenues
Operating expenses:
General and
administrative
Insurance costs
Depreciation
Total operating expenses
Operating income (loss)
Non -operating revenues:
Investment income
Gain on sale of
fixed assets
Total nonoperating
revenues, net
Income (loss) before
operating transfers
Operating transfers in
Operating transfers out
Net income (loss)
Retained Earnings,
beginning of Year
Retained Earnings,
end of Year
Equipment
Replacement
Fund
$
416,536
416,536
222,639
222,639
193,897
16,321
11,979
28,300
222,197
Insurance
Fund
$ 1,404,081
222,197
1,270,427
$ 1,492,624 $
Risk
Manage-
ment
Fund
$ 299,791
1,404,081 299,791
105,928 364,979
1,394,979 238,254
1,500,907 603,233
(96,826) (303,442)
31,693
31,693
(96,826) (271,749)
100,000 320,000
(31,668) (116,388)
(28,494) (68,137)
54,164 762,877
25,670 $ 694,740
Cash and
Debt
Manage-
ment Fund
1997
$ - $ 1,703,872
53,113 469,649
53,113 2,173,521
Total
1996
53,113 524,020
1,633,233
222,639
53,113 2,379,892
(206,371)
48,014
11,979
59,993
(146,378)
420,000
(148,056)
125,566
2,087,468
$ - $ 2,213,034
$ 1,822,356
273,454
2,095,810
371,295
1,451,289
255,947
2,078,531
17,279
99,889
18,317
118,206
135,485
80,000
(42,778)
172,707
1,914,761
$ 2,087,468
64
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1996
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation expense
Increase in
receivables
Increase (decrease) in
accounts payable
Increase in due
from other funds
Increase in due
from other governments
Total adjustments
Net cash provided by (used in)
operating activities
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in
Operating transfers out
Net cash provided by
noncapital financing activities
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment
Sale of equipment
Net cash used in capital and
related financing activities
INVESTING ACTIVITIES
Interest received on
investments
Net increase (decrease) in
cash and cash equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents,
end of year
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Management Total
Fund Fund Fund Fund 1997 1996
$ 193,897 $ (96,826) $ (303,442) $ $ (206,371) $ 17,279
222,639 222,639 255,947
1,295 1,295 (3,553)
26,716 26,926 5,403 (9,105) 49,940 (29,272)
(62,605)
(20,561) (20,561)
228,794 26,926 6,698 (9,105) 253,313 160,517
422,691 (69,900) (296,744) (9,105) 46,942 177,796
100,000 320,000 420,000 80,000
(31,668) (116,388) (148,056) (42,778)
68,332 203,612 271,944 37,222
(377,908) (377,908) (423,808)
25,839 25,839 33,900
(352,069) (352,069) (389,908)
16,321 31,693 48,014 99,889
86,943 (1,568) (61,439) (9,105) 14,831 (75,001)
362,033 132,946 770,595 9,700 1,275,274 1,350,275
$ 448,976 $ 131,378 $ 709,156 $ 595 $ 1,290,105 $ 1,275,274
65
AGENCY FUNDS
Agency funds are used to account for assets held by the govemment as an agent for
individuals, private organizations, other govemments 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 that are to be distributed to other participating entities.
CITY OF EULESS, TEXAS
AGENCY FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1997
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996
Deferred DEA
Compensation Task
Agency Force Total
Fund Fund 1997 1996
Assets:
Deposits and investments $ - $ 37,607 $ 37,607 $ 62,441
Investments at market 3,327,191 3,327,191 2,875,009
Total assets $ 3,327,191 $ 37,607 $ 3,364,798 $ 2,937,450
Liabilities:
Deferred compensation
benefits payable $ 3,327,191 $ - $ 3,327,191 $ 2,875,009
Due to other
governments 37,607 37,607 62,441
Total liabilities $ 3,327,191 $ 37,607 $ 3,364,798 $ 2,937,450
66
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 1997
Balance Balance
September 30, September 30,
1996 Additions Deletions 1997
DEFERRED COMPENSATION:
Assets:
Investments at market $ 2,875,009 $ 661,990 $ 209,808 $ 3,327,191
Liabilities:
Deferred compensation
benefits payable
DEA TASK FORCE FUND:
$ 2,875,009 $ 661,990 $ 209,808 $ 3,327,191
Assets:
Deposits and investments $ 62,441 $ $ 24,834 $ 37,607
Liabilities:
Due to other
governments $ 62,441 $ - $ 24,834 $ 37,607
Total assets $ 2,937,450 $ 661,990 $ 234,642 $ 3,364,798
Total liabilities $ 2,937,450 $ 661,990 $ 234,642 $ 3,364,798
67
*
4,&"„z
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, 1997 AND 1996
1997 1996
General fixed assets:
Land $ 3,824,559 $ 3,289,419
Building 8,795,947 8,795,947
Improvements other than buildings 3,905,306 3,371,627
Machinery and equipment 5,696,225 4,934,617
Total general fixed assets $ 22,222,037 $ 20,391,610
Investment in general fixed assets by source:
General fund $ 6,390,701 $ 5,858,983
Special revenue funds 5,816,759 5,023,508
Capital projects funds 10,014,577 9,509,119
Total investment in general fixed assets $ 22,222,037 $ 20,391,610
68
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1997
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Land
$ 3,025,066
234,325
565,168
Total General Fixed Assets $ 3,824,559
Building
$ 2,422,165
1,315,968
5,057,814
$ 8,795,947
Improvements
Other than
Buildings
$ 1,032,371
36,758
1,682,847
1,153,330
$ 3,905,306
Machinery
and
Equipment
$ 1,795,022
2,807,855
668,924
325,957
98,467
$ 5,696,225
Total
$ 8,274,624
4,394,906
7,974,753
325,957
1,251,797
$ 22,222,037
69
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1997
General Fixed General Fixed
Assets Assets
Function September 30, September 30,
and Activity 1996 Additions Deletions 1997
General government $ 6,772,070 $ 1,502,554 $ $ 8,274,624
Public safety 4,123,776 271,130 4,394,906
Culture and recreation 7,918,010 56,743 7,974,753
Highways and streets 325,957 325,957
Construction -in -progress 1,251,797 1,251,797
$ 20,391,610 $ 1,830,427 $ $ 22,222,037
70
gt‘s-v‘c At- SEG11014
kunattoited)
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
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
1996 2,409,115 7,445,910 619,098 1,527,718 1,658,291 1,833,982 15,494,114
1997 2,591,776 8,187,576 639,906 1,781,630 2,145,300 2,495,872 17,842,060
Note: Includes General Fund and Debt Service Fund.
71
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Table 2
Interest
Licenses Inter- Charges Income
Fiscal and govern- for Fines and Other
Year Taxes Permits mental Service and Fees Revenues Total
1988 $ 8,044,902 $ 164,031 $ 380,612 $ 54,682 $ 501,151 $ 610,444 $ 9,755,822
1989 8,394,653 222,424 265 43,053 904,238 1,035,689 10,600,322
1990 8,529,240 290,944 19,078 55,163 1,158,986 929,589 10,983,000
1991 9,262,024 237,400 91,064 54,399 971,875 740,796 11,357,558
1992 9,550,034 210,525 46,405 64,601 1,291,629 448,765 11,611,959
1993 10,274,743 312,660 54,797 59,042 1,353,196 413,151 12,467,589
1994 10,847,785 364,617 227,464 81,311 1,592,194 420,641 13,534,012
1995 11,362,414 420,624 50,912 88,036 1,941,505 916,167 14,779,658
1996 12,049,604 459,553 84,447 102,669 2,233,554 1,087,365 16,017,192
1997 12,733,372 530,525 192,742 89,102 2,337,343 1,268,495 17,151,579
Note: Includes General Fund and Debt Service Fund.
72
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
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 h 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%
1996 6,517,809 6,404,089 98.26% 72,683 6,476,772 99.37% 354,752 5.44%
1997 6,150,523 6,073,887 98.75% 66,886 6,140,773 99.84% 392,589 6.38%
Source: Tarrant County Tax Assessor/Collector
73
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
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 835, 211,175 835, 211,175 137, 913, 007 137, 913, 007
1994 818, 330, 766 818, 330, 766 147, 978, 520 147, 978, 520
1995 908, 760, 987 908, 760, 987 166, 784, 893 166, 784, 893
1996 955, 692, 304 955, 692, 304 172, 885,117 172, 885,117
1997 1, 009, 997, 060 1, 009, 997, 060 185, 673, 796 185, 673, 796
Source: Tarrant Appraisal District
74
Table 4
Ratio of
Total
Assessed
Total to
Estimated
Assessed Actual Actual
Value Value Value
$ 1,136,652,954 $ 1,136,652,954 100%
1,081,667,059 1,081,667,059 100%
1,085,177,777 1,085,177,777 100%
1,159, 204, 504 1,159,204, 504 100%
1,000,802,341 1,000,802,341 100%
973,124,182 973,124,182 100%
966,309,286 966,309,286 100%
1,075,545,880 1,075,545,880 100%
1,128,577,421 1,128,577,421 100%
1,195,670, 856 1,195,670, 856 100%
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL DIRECT AND 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
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%
1996 0.6060000% 1.5345% 0.266603% 0.239840% 0.055460% 2.7023630%
1997 0.5449800% 1.6063% 0.264000% 0.234070% 0.057690% 2.7069970%
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
76
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
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 38,778 973,124,182 11,321,467 1.16% 292
1994 39,650 966,309,286 10,277,666 1.06% 259
1995 39,750 1,075,545,880 9,117,594 0.85% 229
1996 40,850 1,128,577,421 12,124,427 1.07% 297
1997 41,300 1,195,670,856 12,036,465 1.01% 291
(1) Estimates by North Central Texas Council of Governments as of
January 1, 1997.
(2) Tarrant Appraisal District
(3) Includes General Obligation Bonds and Certificates of Obligation.
77
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 1997
(Unaudited)
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $12,036,465 100.00% $12,036,465
Grapevine-Colleyville Independent
School District 133,876,241 2.12% 2,838,176
Hurst -Euless -Bedford Independent
School District 89,591,513 26.79% 24,001,566
Tarrant County 126,560,000 2.72% 3,442,432
Tarrant County Hospital County 52,084,000 2.72% 1,416,685
Tarrant County Junior College District 96,048,929 2.72% 2,612,531
Total direct and overlapping debt $46,347,855
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation 3.85%
Per capita direct and overlapping
bonded debt $1,116
78
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
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%
1996 1,245,000 413,291 1,658,291 15,494,114 10.70%
1997 1,340,000 805,300 2,145,300 15,696,760 13.67%
79
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
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
1996 10,579,366 8,177,311 2,402,055 365,000 170,205 535,205 4.49
1997 10,605,353 8,014,504 2,590,849 370,000 151,480 521,480 4.97
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.
80
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST FIVE 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
1996 563,004 52,876 510,128 25,000 126,791 151,791 3.36
1997 587,892 66,624 521,268 30,000 125,419 155,419 3.35
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.
81
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)
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%
1996 40,850 22,223 19,205 3.3%
1997 41,300 22,690 19,400 3.5%
Notes: 1, Estimates by North Central Texas Council of Governments as
adjusted for 1990 census data.
2. Estimates by City Economic Development
3. Hurst -Euless -Bedford Independent School District
4. Texas Employment Commission
82
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1997
(Unaudited)
Table 12
Percentage
1996 of Total
Type of Assessed Assessed
Taxpayer Business Valuation Valuation
Southwestern Bell Telephone Company Telephone Utility $ 36,828,580 3.08%
Somerset Village Partners, LP Apartments 25,113,822 2.10%
Bear Creek Apartments, Inc. Apartments 21,000,000 1.76%
TU Electric Electric Utility 19,065,221 1.59%
The Bear Apartments Apartments 15,238,882 1.27%
Southwest Properties Apartments 12,942,520 1.08%
AMLI SW Retail 9,850,000 0.82%
Home Depot USA, Inc. Retail 9,438,865 0.79%
Ferguson Enterprises, Inc. Manufacturing 8,759,684 0.73%
Euless Holdings, Inc. Land 8,550,000 0.72%
$ 166,787,574 13.95%
83
CITY OF EULESS, TEXAS
TMRS DEFINED CONTRIBUTION PLAN
ANALYSIS OF FUNDING PROGRESS
LAST NINE 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%
1996 23,848,136 30,449,210 78.32% 6,601,074 9,884,244 66.78%
1997 27,342,327 34,623,173 78.97% 7,280,846 11,340,676 64.20%
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.
84
CITY OF EULESS, TEXAS
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 14
Construction (1)
Property Number
Fiscal Value of
Year (2) Permits Value
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
1996 1,256,556,148 391 22,907,680
1997 1, 279, 463, 828 351 92, 300, 851
Notes: 1. City Records
2. Tarrant Appraisal District
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 1997
(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 $2.50
per $100 of assessed valuation for the payment of principal and interest on general obligation
bonds.
The City's total tax rate for fiscal 1997 was established at $.54498 per $100 of assessed
valuation on 100% of appraised value.
86
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1997
(Unaudited)
Table 16
Date of incorporation February 24, 1953
Date of Adoption of Charter July 21, 1962
Form of government Home Rule - Council/Manager
Mayor - elected at large
Six Council Members
Area 16.9 Square Miles
Full time City employees budgeted 323
Fire protection:
Number of stations
Number of certified firefighters
Police protection:
Number of stations
Number of certified officers
3
54
1
77
Parks and recreation:
Number of swimming pools 3
Number of parks 14
Area of parks 605 acres
Community buildings 3
Ampitheater 1
Conference center 1
Golf course 1
Library holdings:
Books 70,200
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
87
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1997
(Unaudited)
Table 16
City Water and Sewer service:
Water Service:
Number of Customers 19,591
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 15,077,000
Average daily consumption 6,071,805
Water mains 155 miles
Fire hydrants 1,145
Sewer Service:
Average daily flow of wastewater 3,277,063
Number of customers 18,617
Sewer mains 132 miles
Streets:
Improved 155 miles
State highways 17.2 miles
88
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