HomeMy WebLinkAboutFY 1998 Comprehensive Annual Financial ReportCITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
LEON HOGG, COUNCIL MEMBER PLACE TWO
BOBBY BAKER, COUNCIL MEMBER PLACE THREE
CHARLIE MILLER, COUNCIL MEMBER PLACE FOUR AND
MAYOR PRO TEM
GLENN WALKER, COUNCIL MEMBER PLACE FIVE
KATIE EDWARDS, COUNCIL MEMBER PLACE SIX
TOM HART, CITY MANAGER
JOE HENNIG, DEPUTY CITY MANAGER
LORETTA GETCHELL, DIRECTOR OF FINANCE
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1998
TABLE OF CONTENTS
INTRODUCTORY SECTION
Paae(sl
Letter of transmittal i-vii
GFOA certificate of achievement viii
Organizational chart ix
FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
Combined balance sheet - all fund types and
account groups
Combined statement of revenues, expenditures
and changes in fund balances - all govern-
mental fund types
Combined statement of revenues, expenditures
and changes in fund balances - budget and
actual - general and special revenue funds
Combined statement of revenues, expenses and
changes in retained earnings - all
proprietary fund types
1
2-5
6-7
8-9
10
Combined statement of cash flows - all
proprietary fund types 11 - 12
Notes to general purpose financial statements 13 - 31
Required Supplementary Information:
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 32
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1998
TABLE OF CONTENTS - Continued
Individual Fund and Account Group Statements and Schedules Page(s)
Special revenue funds
Combining balance sheet 33
Combining statement of revenues,
expenditures and changes in fund balances 34
Statement of revenues, expenditures and
changes in fund balances - budget and actual 35 - 37
Capital proiect funds
Combining balance sheet 38 - 39
Combining statement of revenues,
expenditures and changes in fund balances 40 - 41
Enterprise funds
Combining balance sheet 42 - 45
Combining statement of revenues, expenses
and changes in retained earnings 46 - 47
Combining statement of cash flows 48 - 49
Water and sewer fund --comparative balance
sheets 50 - 51
Water and sewer fund --comparative statements
of revenues, expenses, and changes in retained earnings 52
Water and sewer fund --comparative
schedule of operating expenses 53 - 54
Water and sewer fund --comparative
statements of cash flows 55
Water and sewer fund --aggregating
schedule of balance sheet accounts 56 - 59
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1998
TABLE OF CONTENTS - Continued
Individual Fund and Account Group Statements and Schedules - continued
Water and sewer fund --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Drainage utility funds --aggregating
schedule of balance sheet accounts
Drainage utility funds --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
Pagets)
60-61
62
63
Internal service funds
Combining balance sheet 64
Combining statement of revenues,
expenses and changes in retained
earnings 65
Combining statement of cash flows 66
Aaencv funds
Combining balance sheet 67
Statements of changes in assets and liabilities 68
General fixed assets account aroup
Comparative schedule of general fixed
assets - by source 69
Schedule of general fixed assets by
function and activity 70
Schedule of changes in general fixed
assets by function and activity 71
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1998
TABLE OF CONTENTS - Continued
Table Paggls)
STATISTICAL SECTION (Unaudited)
General governmental expenditures
by function 1 72
General governmental revenues by source 2 73
Property tax levies and collections 3 74
Assessed and estimated actual value of
taxable property 4 75 - 76
Property tax rates - all direct and overlapping
governments per $100 of assessed value 5 77
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 78
Computation of direct and overlapping debt 7 79
Ratio of annual debt service expenditures for
net general bonded debt to total general expenditures 8 80
Schedule of revenue bond coverage -
Water and Sewer Bonds 9 81
Schedule of revenue bond coverage -
Drainage Utility Bonds 10 82
Demographic statistics 11 83
Principal taxpayers 12 84
Property value and construction 13 85
Computation of legal debt margin 14 86
Miscellaneous statistics 15 87 - 88
OTRODOCIORI SEC1100
T H E
January 15, 1999
I T Y O F
EULESS
Honorable Mayor & City Council,
City Manager, and
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, 1998. 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 42,900. 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
201 N. Ector Drive, Euless, Texas 76039-3595
817/685-1400 • Metro 817/267-41+03 • FAX 817/685-1416
and fire protection, emergency ambulance service, road and traffic signal maintenance,
water and sewer operations, drainage system, parks and recreational facilities, courts,
and library services. Other services include planning land use, building inspection, and
traffic control. Internal services of the City include Insurance, Risk Management,
Equipment Replacement, and Cash/Debt Management.
All funds and account groups are discussed in depth in the notes to the financial
statements. Even though associations with other entities such as Hurst -Euless -Bedford
Independent School District exist, the City Council has no financial accountability, or
control over the school district or the other entities referred to in 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 1998 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 finalization of a revenue -sharing agreement
with Dallas/Fort Worth Airport to encourage development; citizen approval to fund
reconstruction of Main Street, Harwood Road and West Pipeline; and rezoning of the
City to correspond to the Comprehensive Land Use Plan. The City is nearing
completion of Westpark Way and Highway 157, and has begun demolition of the
Western Hills Inn which will be the site of the new police facility.
In 1998, Euless welcomed numerous new businesses to our community including:
Microtel Hotel, Whataburger, Grubbs Infinity Dealership, and a new 20,000 square foot
office building. We expect next year will bring even more retail, office projects,
warehouses, and restaurants.
MAJOR INITIATIVES
Budget. During preparation of the 1998 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.
Progress Report. Fiscally, the year 1998 has proven successful. City Council
members were able to maintain the current rates for water and sewer services and
maintain the same tax rate at .524754 per $100 valuation. Furthermore, a merit -based
ii
raise package, as well as no increases in the employees' costs for health care was
achieved. These benefits were made possible through additional contributions from the
City's General Fund and Water and Sewer Fund.
Individual and departmental successes have improved city services and enhanced
growth in our community. Among the many accomplishments during 1998:
4- New Athletic Complex at the Parks at Texas Star opened
+ Renovations were completed on a new fire station
+ Softball World was voted the Best Place to Play Slow -Pitch Softball
+ Texas Star was voted Best New Public Golf Course and 35th Best Course in
Texas Golf
+ Parks at Texas Star was voted Best Baseball Facility
+ The City's annual Arbor Daze Festival was rated best in Northeast Tarrant
County, and received four awards from the Texas Crafts and Festivals
Association and two awards from the International Festivals Association
4- The City's library was voted Best in Northeast Tarrant County
+ The Fuller House renovation was completed and the facility was opened to the
public
+ The Mayor's Newsletter received an Award of Excellence from Apex Awards
Competition
+ Access to the Internet was provided to Euless Citizens by a TIF Grant
+ The Police Department graduated their first Youth Citizen Police Academy and
introduced the experimental Police District and Mobile Storefront.
FINANCIAL INFORMATION
General. Management of the City is responsible for establishing and maintaining an
internal control structure designed to ensure that the City's assets are protected from
loss, theft or misuse and to ensure that adequate accounting data are compiled to allow
for the preparation of financial statements in conformity with generally accepted
accounting principles. The internal control structure is designed to provide reasonable,
but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the evaluation of costs and benefits requires estimates and
judgments by management.
The City's accounting records for the Enterprise and Internal Service Funds are
maintained on an accrual basis whereby revenues and expenses are recorded in the
accounting period in which they are earned or incurred. The remainder of the City's
funds are maintained on the modified accrual basis whereby revenue is recorded when
measurable and available, and expenditures are recorded when the liability is incurred,
except for interest on general long-term debt, which is recognized when due.
As set forth in the City's Charter Article VII, Sections 2-9, the City Council adopts an
annual budget. Detail control is accomplished by maintaining expenditures by line item
account within each operating department within each operating fund at the
authorization of the City Manager. Financial reports are available to division managers
monthly. Further explanations of the basis of accounting for all fund types, account
iii
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
accounted for in the general fund and general debt service fund totaled $17,869,281 in
1998, an increase of 4.18% over 1997. The increase in revenues is primarily
attributable to: increased activity in Municipal Court, sales tax receipts, property tax
receipts and franchise fees. The amount of revenue from various sources and the
changes from the previous year are reflected in the following table:
Revenue
Source
Property tax
Gross receipts tax
General sales tax
Fines and fees
Licenses and permits
Interest income
Intergovernmental/Other
TOTAL REVENUES
Percent
Amount Of Total
$6,272,862 35.10%
2,138,623 11.97%
4,868,846 27.25%
2,671,187 14.95%
396,811 2.22%
448,984 2.51%
1,071,968 6.00%
$17,869,281 100%
Increase
(decrease)
from 1997
$86,203
58,502
313,152
333,844
(133,714)
16,912
42,803
$717,702
Percent of
Increase
(decrease)
1.39%
2.81%
6.87%
14.28%
(25.20%)
3.91%
4.16%
In addition to the above general revenue, $77,838 was transferred from various funds,
primarily Enterprise funds for general and administrative cost reimbursement.
Expenditures for general governmental purposes and general debt service totaled
$17,714,787, a decrease of 0.71% over 1997. 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
TOTAL EXPENDITURES
Percent
Amount Of Total
2,951,730 16.81
9,028,711 51.43
699,140 3.98
1,995,717 11.37
2,002,940 11.41
876,549 5.00
$17,554,787 100
Increase
(decrease)
from 1997
359,954
841,125
59,234
214,087
142,360
(1,619,313)
($2,553)
Percent of
Increase
(decrease)
13.89
10.27
9.26
12.01
6.64
(58.47)
Non departmental expenditures decreased primarily due to prior year funding of
nonrecurring capital items, including fire truck reserve, transfer to Athletic Complex CIP,
and citywide building purchases and remodeling projects. Debt service expenditures
increased due to second year interest payments and first year principal payment on
iv
opened in December and ended the year with an operating income of $18,603
excluding transfers.
Debt Administration. General obligation debt, which is directly tax supported,
totaled $5,056,586 at September 30, 1998. 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 - $16,081,586; ratio of net bonded debt to assessed
value is 1.26% and net bonded debt per capita is $375. Outstanding certificates of
obligation at September 30, 1998, totaling $11,025,000 are also considered to be net
direct tax supported debt. Tables 6-10 in the Statistical Section of this report present
more detailed information about the debt position of the City.
Outstanding sales Tax Revenue Bonds, secured by the January 1993 referendum for
half cent sales tax for parks, library and economic development totaled $9,435,000 as of
September 30, 1998.
Outstanding revenue bonds, which are secured by the net revenues of the various
Enterprise Funds, totaled $4,025,000 at September 30, 1998. Outstanding certificates
of obligation, which are secured by the tax base and revenues of the various Enterprise
Funds totaled $11,610,000.
The City has maintained it's 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 $1,545,763. Interest is an important non -tax
revenue for the City. Throughout 1998, 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, 1998, the general fixed
assets of the City amounted to $24,543,845. 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
certificates of obligations issued in FY97. Parks, Recreation, Library, and Public Safety
increased due primarily to increased personnel costs.
Revenues
(35.1 %) Ftoperty Tax
Expenditures
(12.0%) Gross Receipts Tax (51.4%) FUblic Safety
(6.0%) htergov/Other
(2.5%) Interest hc.
(4.0%) Streets
(11.4%) Par16/Fec/LUb
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 substantial
increase in water revenues as a result of extreme heat and dry conditions. Comparative
data for the past two fiscal years are presented in the following table.
1998 1997
Income before operating transfers 1,079,885 1,492,044
Net revenue available for debt service 2,050,010 2,430,849
Average annual debt service requirements 358,120 379,274
Coverage 5.72 times 6.41 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 FY98, $576,662 of revenue was generated and $87,641
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 FY98.
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 $243,884 was generated, while class expenses were
$234,481. Both experienced an increase from prior year activity. Euless' Arbor Daze
was formerly funded in this account, but has been segregated for better accountability.
Softball World Fund was added in fiscal year 1996 to promote adult softball programs
through league, tournament, and special events. Revenue of $952,789 was collected
for league fees, concession sales, and sale of sporting goods. Expenses were
$795,361 with operating income prior to transfers of $157,428.
The Golf Course Fund and Athletic Complex were established as enterprise funds in
1996. The golf course closed for two months during FY98 for repairs and ended the
year with an operating loss of $109,541 excluding transfers. The Athletic Complex
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, 1997. 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,
flott7:4
Loretta Getchell, CPA
Director of Finance
vii
,Y-4J-Aiye
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 (CAFR) for the
fiscal year ended September 30, 1997.
The Certificate of Achievement is a
prestigious national award recognizing
conformance with the highest standards
for preparation of a state and local
government financial report.
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. The
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 eleven
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, 1997
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.
Executive Director
viii
R.
Tom Hart, City Manager
October, 1998
Bob McFarland
City Attorney
Gary McKamie
Police Chief
Patrol
Crim. Invest.
Services:
Jail
Communications
Records
Community Service
Scott Campbell
Sr Admin
Assistant
Tom Cox
Dir. of
Administration
Fleet Services
Facility Maint.
Library
Personnel
Risk/Benefits
Info. Services
Purchasing
Recycling
Franchises
Susan Crim
City Secretary
Randy Byers
Dir. of
Public Works
allowo
Streets
Water
Wastewater
Animal Control
Meter Reading
Engineering
Construction Inspection
CIP Management
Traffic Safety
Drainage
]CITIZENS
MAYOR
and
COUNCIL
ero
Dir. of
Community
Services
Parks
Green House
Recreation
Texas Star
Sports Complex
Athletic Complex
Golf Course
Conference Center
Softball World
Loretta Getchell *.3
Director of
Finance
Organizational Chart
Bo Bass
:Dir. ofPlanning
& Development
Municipal Cou
of Record
David Witcher
Director of
Economic Dev.
Economic
Development
Lee Koontz
Fire Chief
Suppression
Ambulance
Fire Educ. & Prevent.
Fire Marshal
Emergency Mgmt.
Jenny Kratz
Media & Comm=
Relations
frkaitiaptogiteabgariefdtiM
,y0‘.,7-e
FINANCIAL SECTION
WEAVER
TIDWELL
L.L.P.
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
307 It/esl Seventh Street
Smile 1500
Fort Worth, Texas 76102
817.332.7905
F 817. 429.5936
DALLAS
Three Forest Plaza
/222/ Merit Drive
Smile 1700
Dallas, Ttxas 7525/
Park Central Vll
12750 Merit Drive
Smile /210
Dallas, Texas 75251
•
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, 1998, 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, 1998, 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.
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
December 4, 1998
3184
1
COMBINED FINANCIAL STATEMENTS - OVERVIEW
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
ASSETS AND OTHER DEBITS
Deposits and investments
Receivables:
Property taxes
Accounts receivable and unbilled revenue
Grants receivable
Accrued interest
Due from other funds
Due from other govemments
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
Governmental Fund Types
Special Debt
Revenue Service
Funds Fund
$ 4,548,185 $ 2,731,014
293,380
122,177
80,251
1,733
416,577
30,242
11,993
11,308
209,547
Capital
Projects
Funds
$ 212,447 $ 9,271,337
99,209
1,556
49,496
$ 5,504,538 $ 2,951,869 $ 313,212 $ 9,320,833
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 1998 1997
$ 6,452,131 $ 1,373,402 $ 3,812,643 $ $ $ 28,401,159 $ 23,962,037
392,589 392,589
1,796,116 13,644 1,931, 937 1,628,464
59,772 59,772 260,000
158,363 16,155 315,573 213,450
1,038,801 1,040,534 3,782,619
627,680 558,953
271,356 301,598 143,292
157,199 169,192 157,172
3,384,775 3,384,775 3,613,687
24,543,845 24,543,845 22,222,037
38,311,044 1,107,614 39,418,658 39,022,278
247,502 247,502 270,154
1,144,652 1,144,652 1,148,517
26,886,633 26,886,633 22,670,233
$ 51,877,059 $ 2,510,815 $ 3,812,643 $ 24,543,845 $ 28,031,285 $ 128,866,099 $ 120,045,482
3
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
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
Outstanding work
Unreserved
Fund balances:
Reserved for:
Debt service
Computer
Park improvements
Recycling
Development agreements
Prepaids
Betterment
Fire truck
Western Hills
PD facility
Library
Unreserved:
Designated for:
Contingency
Emergency
Undesignated
Total fund equity and other credits
Total liabilities, fund equity and other credits
General
Fund
$ 721,860
223,304
382,062
1,327,226
125,000
4,606
3,184
30,242
25,505
2,010
500,000
500,000
2,986,765
4,177,312
$ 5,504,538
Governmental Fund Types
Special Debt
Revenue Service
Funds Fund
$ 93,740 $
8,472
102,212
96,234
9b,234
927,674 216,978
1,921,983
2,849,657 216,978
$ 2,951,869
Capital
Projects
Funds
$ 162,412
96,826
1,232,860
7,828,735
9,Ub1,b9b
$ 313,212 $ 9,320,833
The Notes to the Financial Statements are an integral part of this statement.
4
Enterprise
Funds
$ 501,292
149,958
1,107,075
86,460
1,040,534
16,215,000
137,172
19,237,491
14,255,843
447,034
225,000
500,000
31,311
39,405
17,140,975
32,639, 568
$ 51,877,059
Proprietary
Fund Types
Internal
Service
Funds
$ 72,544
95,000
22,122
189,666
30,566
200,000
200,000
1,890,583
2,321,149
Fiduciary
Fund Type
Agency
Funds
$
3,573,905
238,738
3,812,643
$
Account Groups
General eneral
Fixed Long-term
Assets Debt
24,543,845
24,543,845
$
25,516,586
17,234
1,450,256
1,047,209
28,031,285
(2 of 2)
Totals
(Memorandum only)
1998 1997
$ 1,551,848 $ 1,612,389
95,000 70,000
403,856 314,273
1,203,901 1,252,482
86,460 91,943
1,040,534 3,782,619
41,731,586 38,766,586
17,234 34,438
1,450,256 1,268,428
615,468 562,993
1,047,209 719,298
3,573,905 3,327,191
238,738 37,607
53,055,995 51,840,247
24,543,845 22,222,037
14,255, 843 10,281,735
447,034 620,080
30,566 25,670
200,000 200,000
200,000 200,000
225,000 200,000
175,000
500,000 500,000
31,311 31,311
39,405
19,031,558 20,921,599
1,144,652 1,148,517
125,000 100,000
4,606 4,606
3,184 3,184
1,232,860 1,272,214
30,242 36,025
25,505 23,106
87,500
175,000
119,890
2,010
500,000 500,000
500,000 500,000
12,737,483 8,857,761
75,810,104 68ti205, 5
$ 2,510,815 $ 3,812,643 $ 24,543,845 $ 28,031,285 $ 128,866,099 $ 120,045,482
5
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
Special
General Revenue
Fund Funds
Revenues:
General property tax $ 4,315,682 $ -
Gross receipts tax 2,138,623 332,995
General sales tax 4,868,846 2,869,590
Fines and fees 2,671,187
Licenses and permits 396,811
Interest income 399,560 148,939
DEA revenues 96,023
Intergovernmental 258,663
Other revenues 813,305 68,641
Total revenues 15,862,677 3,516,188
Expenditures:
Current:
City council/administrative 384,162
Finance 627,000
Police department 5,534,658 450,762
Fire department 3,494,053
Administrative services 583,356
Planning and development 860,537
General and administrative 174,394
Parks/recreation/library 1,995,717 601,429
Street maintenance 699,140
Economic development 130,379
Betterment 21,616
Staff services 496,675
Nondepartmental 854,933
Debt service:
Principal 335,000
Interest and fiscal charges 592,672
Issuance costs
Capital outlay and maintenance 65,628
Total expenditures 15,551,847 2,350,264
Excess (deficiency) of revenues over expenditures 310,830 1,165,924
Other financing sources (uses)
Net proceeds from issuance of sales tax revenue bonds
Operating transfers in 77,838 3,117
Operating transfers out (684,890) (1,015,972)
Total other financing sources (uses) (607,052) (1,012,855)
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses (296,222) 153,069
Fund balances, beginning of year 4,473,534 2,696,588
Fund balances, end of year $ 4,177,312 $ 2,849,657
The Notes to the Financial Statements are an integral part of this statement.
6
Debt Capital Totals
Service Projects _ (Memorandum Only)
Fund Funds 1998 1997
$ 1,957,180 $ - $ 6,272,862 $ 6,186,659
2,471,618 2,376,548
7,738,436 7,336,395
2,671,187 2,337,343
396,811 530,525
49,424 310,709 908,632 874,579
96,023 111,984
1,280,767 1,539,430 192,742
95 729 977,675 880,525
2,006,604 1,687,205 23,07277420,827,300
384,162 381,757
627,000 568,880
5,985,420 5,159,570
3,494,053 3,177,209
583,356 528,641
860,537 853,463
174,394 43,060
211,929 2,809,075 2,437,297
699,140 639,906
90,136 220,515 129,024
21,616 20,990
496,675 372,026
854,933 2,473,872
1,445,000 1,780,000 1,650,000
557,940 1,150,612 1,430,502
56,800 56,800
4,469,591 4,535,219 2,833,506
2,002,940 4,828,456 24,733,507 22,699, /03
3,664 (3,141,251) (1,660,833) (1,872,403)
5,500,000 5,500,000
1,269, 890 1,350, 845 2,948,909
(11,411) (1,712,273) (5,481,151)
6,758,479 5,138,572 (2,532,2421
3,664 3,617,228 3,477,739 (4,404,645)
213,314 5,444,367 12,827,803 17,232,448
$ 216,978 $ 9,061,595 $ 16,305,542 $ 12,827,803
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, 1998
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
Deferred adjudication fee
Licenses and permits:
Building permits
Miscellaneous permits
Electric licenses
Interest income
Intergovernmental
DEA funds
Other revenues:
Library receipts
Rental Income
Texas Court cost service
fees
Jail income
Swimming pools
Miscellaneous Income
Total revenues
Actual
$ 4,276,357
39 325
4,31$b82
426,834
1,252,590
124,664
159,874
93,176
81 485
2,1 J8b23
4,868,846
578,281
1,786,677
14,628
224,755
66 846
2,671 ,187
167,189
198,962
30,660
399,560
258,663
31,259
64,960
General Fund
Variance
Favuiable
Budget (Unfavorable)
$ 4,254,278
30,000
4,284,278
63,001
195,171
19,471
439,443
813,305
$ 15,862,6// $
426,834
1,252,590
140,000
158,000
92,000
81,111
2,150,535
4,841,307
555,055
1,781,329
16,278
203,000
55,494
2,611,156
160,000
191,860
32 500
384�38U
390,000
271,772
31,365
60,000
$ 22,079 $
9,325
31,4U4
62,493
196,000
15,000
444,857
809,715
15,743, 13 $
Actual
(15,336)
1,874
1,176
374 332,995
(11,912) 332,995
27,539 2,869,590
23,226
5,348
(1,650)
21,755
11,352
60,031
7,189
7,102
(1 840)
11451
9,560 148,939
(13,109)
96,023
(106)
4,960
508
(829)
4,471
(5 414) 68,641
09U 68,641
119,554 $ $,51fi,188
(1 of 2)
Special Revenue Funds
Variance
Favurable
Budget (Unfavorable)
330,889
33U,8b9
2,873,949
88,340
57,100
43,049
43,049-
-$ 3,3y3,.31i
2 106
(4,359)
60,599
38,923
25,592
2o,5y2
-r T22,86i'
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, 1998
Expenditures:
Current:
City council/administration
Finance
Police department
Fire department
Administrative services
Planning and development
General and administrative
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
Fund balance, beginning of year
Fund balance, end of year
General Fund
Actual Budget
$ 384,162
627,000
5,534,658
3,494,053
583,356
860,537
1,995,717
699,140
21,616
496,675
854,933
1 D,b51,b4!
310,830
77,838
(684,890)
(607,052)
(296,222)
4,473,534
$ 4,111,312
$ 385,775
655,852
5,690,549
3,622,991
579,769
900,486
2,030,964
706,917
18,800
488,095
1,941,241
17,021,439
(1,278,316)
Variance
rdvur d )le
(Unfavorable). Actual
$ 1,613
28,852
155,891
128,938
(3,587)
39,949
35,247
7,777
(2,816)
(8,580)
1,086,308
1,469,592
1,589,146
450,762
174,394
601,429
130,379
335,000
592,672
65 628
2,350,164
1,165,924
632,761 (554,923) 3,117
(424,890) (260,000) (1,015,972)
207,871 (814,923) (1,012,855)
(1,070,445)
4,473,534
3,403,059
774,223 153,069
2,696,588
$ //4,223 $ 2,649,b5/
Special Revenue Funds
(2 of 2)
Variance
avuraure
Budget (Unfavorable)
$ $
600,637 149,875
167,950
608,889
(6,444)
7,460
131,650 1,271
436,970
592,674
255,910
2,/94,680
598,647
932,391
(1,965,24k
(1,032,855)
101,970
2
190,282
444,416
567,277
(929,274)
949,274
20,000
(434,208) 587,277
2,696,588
2,252,35U $ b51,2//
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, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
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
Engineering
Pro Shop
Food and beverage
Conference center
Cart operations
Driving range
Athletic complex
Softball complex
Arbor Daze
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 (expenses), 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
Prior period adjustment
Retained earnings, end of year
Enterprise
Funds
$ 7,125,669
3,544,244
576,662
243,884
5,173,264
16,1663, /23
577,225
3,340,590
459,664
173,753
1,754,800
2,473,991
188,798
652,720
87,641
234,206
876,663
1,764
356,379
758,422
167,679
117,275
9,172
63,109
785,951
567,063
1,195,798
22,652
14,865,315
1,798,408
579,755
(930,168)
(350,413)
1,447,995
360,549
(531,065)
1,277,479
421,331
1,698,810
20,660,626
(3,975,711)
$ 18,383,725
Internal
Service
Funds
1,805,994
475,872
2,281,866
562,070
1,914,881
286,120
2, /63,0 /1
(481,205)
57,376
b/,3/b
(423,829)
680,000
(148,056)
108,115
108,115
2,213,034
$ 2,321,149
Totals
(Memorandum Only)
19 8 1i97
$ 7,125,669
3,544,244
576,662
243,884
1,805,994
5,649,1��36
18,945,589
1,139,295
3,340,590
459,664
173,753
1,754,800
2,473,991
188,798
652,720
87,641
234,206
876,663
1,764
356,379
758,422
167,679
117,275
9,172
63,109
785,951
567,063
1,914,881
1,481,918
22,652
1 /,628,386
1,317,203
637,131
(930,168)
(293,030.
1,024,166
1,040,549
(679,121)
1,385,594
421,331
1,806,925
22,873,660
(3,975,711)
$ 20,704,874
$ 6,057,528
3,301,836
564,253
834,012
1,703,872
3,136,787
1 b,b9d,2dd
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
-14,630,08
968,201
788,883
(539,616)
11,979
2b`1,246"
1,229,447
3,524,744
1992,502)
3,761,689
421,331
4,183,020
18,690,640
$ 22,873,660
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, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
(1 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 1998 1997
OPERATING ACTIVITIES:
Operating income (loss) $ 1,798,408 $ (481,205) $ 1,317,203 $ 968,201
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization expenses 1,218,450 286,120 1,504,570 1,262,168
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue (84,339) (19,433) (103,772) (420,890)
Due from other funds (228,884) (228,884) (722,618)
Due from other governments 20,561 20,561 (20,561)
Prepaids and deposits (185,089) (185,089) (79,339)
Inventory (29,073) (29,073) (90,455)
Increase (decrease) due to net changes in:
Accounts payable (369,884) (7,149) (377,033) (109,814)
Accrued salaries and wages 47,541 22,122 69,663 (14,740)
Accrued insurance claims 25,000 25,000
Due to other funds 320,534 320,534 720,000
Customer and escrow deposits 49,640 49,640 140,039
Deferred revenue 48,157 48,157 8,542
Total adjustments 787,053 327,221 1,114,274 672,332
Net cash provided by (used in)
operating activities 2,585,461 (153,984) 2,431,477 1,640,533
NONCAPITAL FINANCING ACTIVITIES :
Interest paid on bonds (903,678) (903,678) (500,496)
Interest paid on tax notes payable (31,973) (31,973) (20,392)
Reduction in bonds payable (585,000) (585,000) (400,000)
Reduction in tax notes payable (170,000) (170,000)
Proceeds from issuance of tax notes payable 730,997
Operating transfers in 360,549 680,000 1,040,549 3,524,744
Operating transfers out (531,065) (148,056) (679,121) (992,502)
Net cash provided by (used in)
noncapital financing activities (1,861,167) 531,944 (1,329,223) 2,342,351
CAPITAL AND RELATED
FINANCING ACTIVITIES:
Contributions in aid to construction 419,728 419,728 957,854
Purchase of utility plant and equipment
in service (1,534,367) (343,931) (1,878,298) (10,384,129)
Proceeds from sale of utility plant in
service 25,839
Net cash used in capital and related
financing activities
(1,114,639) (343,931) (1,458,570) (9,400,436)
The Notes to the Financial Statements are an integral part of this statement. 1 1
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
(2 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 1998 199/
INVESTING ACTIVITIES:
Purchase of investment securities $ 709,337 $ $ 709,337 $ (11,837)
Interest received on investments 520,688 49,268 569,956 722,450
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
1,230,025 49,268 1,279,293 710,613
839,680 83,297 922,977 (4,706,939)
7,191,576 1,290,105 8,481,681 13,188,620
$ 8,031,256 $ 1,373,402 $ 9,404,658 $ 8,481,681
Reconciliation of cash to balance sheet:
Cash - current $ 6,452,131
Cash - restricted assets 1,579,125
Cash and cash equivalents $ 8,031,256
Restricted assets:
Cash $ 1,579,125
Investments 1,786,347
Interest receivable 19,303
Total restricted assets $ 3,384,775
The Notes to the Financial Statements are an integral part of this statement.
12
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Euless (the "City") have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to government units. The
Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for
establishing governmental accounting and financial reporting principles. The City's significant
accounting policies are described below:
Reporting Entity
The combined financial statements of the City include the primary government organizations for
which the primary government is financially accountable and other organizations for which the
nature and significance of their relationship with the primary government are such that exclusion
would cause the reporting entity's financial statements to be misleading or incomplete.
The definition of the reporting entity is based primarily on the notion of financial accountability. A
primary government is financially accountable for the organizations that make up its legal entity.
It is also financially accountable for legally separate organizations if its officials appoint a voting
majority of an organization's governing body and either it is able to impose its will on that
organization or there is a potential for the organization to provide specific financial benefits to, or
to impose specific financial burdens on, the primary government. A primary government may
also be financially accountable for governmental organizations that are fiscally dependent on it.
A primary government has the ability to impose its will on an organization if it can significantly
influence the programs, projects, or activities of, or the level of services performed or provided
by, the organization. A financial benefit or burden relationship exists if the primary government
(a) is entitled to the organization's resources; (b) is legally obligated or has otherwise assumed
the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is
obligated in some manner for the debt of the organization.
Some organizations are included as component units because of their fiscal dependency on the
primary government. An organization is fiscally dependent on the primary government if it is
unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without
approval by the primary government.
The following 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 GENERAL PURPOSE 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 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 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: governmental, proprietary and fiduciary. Each
category, in turn, is divided into separate "fund types."
Governmental funds are used to account for all or most of the City's general activities, including
the collection and disbursement of earmarked 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 GENERAL PURPOSE 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.
All governmental fund types and agency funds use the modified accrual basis of accounting.
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.
Proprietary Fund Types utilize the accrual basis of accounting. 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 the government receives resources
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 GENERAL PURPOSE 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 alternatively achieved through general obligation bond indenture
provisions.
7. Budgetary data for the Capital Projects Funds has not been presented in the accompanying
combined financial statements as such funds are budgeted over the life of the respective
project and not on an annual basis. Accordingly, formal budgetary integration of the Capital
Projects Funds is not employed and comparison of actual results of operations to budgetary
data for such funds is not presented.
8. Appropriated budgets for the Proprietary Funds are also adopted, but have not been
presented since reporting on such budgets is not legally required.
16
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE 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 Tess.
For purposes of the combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $1,579,125 and
$1,080,653 at September 30, 1998 and 1997, respectively) as set forth above to be cash
equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or Tess when
purchased are reported at amortized cost. Nonparticipating contracts are reported at cost. All
other investments are reported at fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its agencies;
obligations of the State of Texas or its agencies; and certain other obligations, repurchase
agreements, money market mutual funds and certificates of deposits within established criterion.
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
$.524754 per $100 of assessed valuation ($.54498 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 for the General Fund and pro shop merchandise for the
Enterprise Funds.
17
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE 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
Compensated Absences
5 - 15 years
33 1/3 years
Employees may accumulate a maximum of two times their annual vacation. The City's policy is
to pay the employee accumulated vacation upon termination. The City does not pay employees
for accumulated sick leave upon termination. Accumulated vacation in the proprietary funds has
been accrued as incurred and reported as accrued salaries and wages (a current liability). The
accumulated vacation of the governmental fund type, representing an estimate of the amounts
not expected to be liquidated with expendable available financial resources, has been recorded in
the General Long -Term Debt Account Group.
The estimated vacation liability expected to be satisfied with available financial resources is
included in accrued salaries and wages in the General Fund.
Fund Equity
Certain assets that are restricted to a specific future use or are not available for appropriation or
expenditure are offset by fund balance reserve accounts. Designated fund balances represent
tentative plans for future use of financial resources.
18
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE 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 -external transactions and reimbursements, are
recorded as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as
residual equity transfers. All other interfund transfers are reported as operating transfers.
Reclassifications
Certain 1997 amounts have been reclassified to conform to the 1998 presentation.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
At September 30, 1998, the bank balances were $382,717 and the ledger balances of the City's
book cash deposits were $61,971. Of the bank balances, $382,717 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 GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS - continued
Investments
At September 30, 1998, 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
Cateaories
Carrying Fair
1 2 3 Amount Value
$ 488,245 $ 18,564,626 $19,052,871 $19,052,871
Investments not subject
to categorization:
LOGIC 7,973,996 7,973,996
FGIC 1.103.888 1.103.888
28,130,755 28,130,755
Deferred
Compensation
Agency Fund
Investments 3.573.905 3.573.905
131.123.463 $31.723.463
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, 1998, is as follows:
Balance Balance
Beginning End
of Year Increase Decrease of Year
General Long -Term Debt
Account Group:
General Obligation Bonds $ 6,126,586 $ $1,070,000 $ 5,056,586
Certificates of Obligation 5,900,000 5,500,000 375,000 11,025,000
Sales tax revenue bonds 9,770,000 335,000 9,435,000
Capital leases 34,438 17,204 17,234
Compensated absences 719,298 327,911 1,047,209
Accreted interest 1.268.428 181.828 _1.450.256
$231118/5Q $6.009139 St797.2Q4 $28,0341..2
20
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
Proprietary Fund Types:
Water and Sewer
Revenue Bonds
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
Balance
Beginning
of Year
$ 2,550,000 $
1,970,000
9,700,000
2,000,000
750,000
Increase
$ 16,970,000 $
Debt outstanding at September 30, 1998 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
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
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%
5.25 to 5.90%
4.10 to 5.25%
4.45 to 6.45%
Outstanding
Balance
Decrease
Balance
End
of Year
$ 395,000 $ 2,155,000
100,000 1,870,000
25,000 9,675,000
65,000 1,935,000
170.000 580,000
$ 755,000 $16,215,000
Current Long -Term
Maturities Maturities
$5, 056, 586 $1, 030, 000 $4, 026, 586
11,025,000 400,000 10,625,000
9,435,000 345,000 9,090,000
17,234 17,234 -
2,155, 000 385,000 1,770,000
1,870,000 105,000 1,765,000
9,675,000 50,000 9,625,000
1,935,000 70,000 1,865,000
580,000 190,000 390,000
21
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
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.
Sales Water and
General Certifi- Tax Sewer
Obligation cates of Revenue Capital Revenue
Bonds Obligation Bonds Leases Bonds Subtotal
1999 $ 1,219,060 $ 1,099,984 $ 910,587 $ 19,711 $ 496,641 $ 3,745,983
2000 1,144,455 1,054,739 897,693 505,871 3,602,758
2001 1,162,065 940,713 888,583 513,625 3,504,986
2002 1,145,315 933,997 884,033 519,475 3,482,820
2003 1,170,790 872,619 886,693 209,575 3,139,677
2004-2008 2,281,273 4,381,849 4,414,274 261,650 11,339,046
2009-2013 4,454,085 4,437,813 8,891,898
2014-2018 3,625,660 1,912.488 5.538.148
Less interest
Principal
8,122,958 17,363,646 15,232,164 19,711 2,506,837 43,245,316
3,066,372 6,338.646 5,797,164 2 477 351.837 15.556.496
$ 5,056.586 111,025 000 19 435 000 1 17,234 155000 $27,688,820
Tax and Tax and
Golf Softball
Course World Park
Utility Surplus Surplus
Drainage Revenue Revenue
Revenue Certs. of Certs. of Tax
Bonds Obligation Obligation Notes Subtotal Grand Total
1999 $ 223,432 $ 602,152 $ 161,009 $212,168 $ 1,198,761 $ 4,944,744
2000 222,342 624,528 158,139 208,506 1,213,515 4,816,273
2001 225,852 645,590 160,166 101,959 1,133,567 4,638,553
2002 228,652 715,340 157,082 102,375 1,203,449 4,686,269
2003 230,788 711,152 158,856 1,100,796 4,240,473
2004-2008 1,152,522 3,553,512 810,515 5,516,549 16,855,595
2009-2013 468,112 3,560,282 826,061 4,854,455 13,746,353
2014-2018 3,562,330 507,800 4,070,130 9,608,278
2019-2023 3,563,944 3,563,944 3,563,944
2024-2027 2,850,832 2,850,832 2,850,832
Less interest
2,751,700 20,389,662 2,939,628 625,008 26,705,998 69,951,314
881,700 10,714,662 1,004,628 45,008 12.645.998 28.202.494
Principal $1,870,000 $ 9,675.000 $1,935,000 $580,000 $14,060.000 $41,748,820
22
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
General Obligation Bonds authorized and unissued as of September 30, 1998, amounted to
$300,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30, 1998,
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, 1998, $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.
All funding requirements for the above reserves were met at September 30, 1998. The amounts
reserved are reported as restricted assets of the Enterprise Funds.
Investments of funds included in the bond reserve and emergency accounts are restricted to direct
obligations unconditionally guaranteed by the United States of America having maturities not in
excess of ten and five years, respectively.
NOTE 4. RESTRICTED ASSETS
Restricted assets consist of cash, investments and accrued interest primarily restricted for Water
and Sewer Enterprise Fund debt service and water and sewer system replacements.
The City sold certain of the waterworks and sanitary sewer system properties situated within the City
of Bedford to that City in 1968. The proceeds were restricted to the prepayment or redemption of
certain revenue bonds; investment income of the funds may be applied to current revenue bond
interest up to stipulated amounts. As of September 30, 1998, the balance in the property sales
proceeds account was $459,852 and is included in restricted assets in the accompanying balance
sheet.
23
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50 year contract dated September 25, 1973, with the Trinity River Authority
of Texas (the "TRA") whereby the TRA agrees to provide supplemental water and sewage treatment
for consideration. Payments by the City are based on metered usage at rates designed to charge
the City a prorata share of the TRA's annual operating and maintenance expenses, principal and
interest requirement on bonds issued by the TRA. Payments under this contract approximated
$4,551,000 in 1998 and are included as operating expenses of the water and sewer fund. The
payments increased approximately $569,000 in comparison to 1997.
The City is involved in a number of lawsuits arising in the ordinary course of business. In the
opinion of the City's legal counsel and management, any liability resulting from such litigation would
not be material in relation to the City's financial position.
NOTE 6. FIXED ASSETS
The following is a summary of changes in the general fixed assets account group during the fiscal
year:
Land
Buildings
Improvements
other than buildings
Construction in progress
Machinery and equipment
Balance
September 30,
1997
$ 3,824,559
8,795,947
3,905,306
5,696,225
$ 22,222,037
Balance
September 30,
Additions Deletions 1998
$ 2,385 $ $ 3,826,944
8,795,947
257,613 4,162,919
1,131,114 1,131,114
930,696 6,626,921
$2.321.808 $ $24.543.845
The following is a summary of utility plant and equipment in service at September 30, 1998 included
in the proprietary funds:
Land and building
Equipment
Improvements
Waterworks
and sanitary
sewer system
Construction
in progress
Less accumulated
depreciation
Enterprise Funds
Water and Drainage Recreation Golf Course
Sewer Fund Utility Fund Classes Fund
$1,528,966 $ $ $10,050,444
1,532,671 6,510 1,376 562,162
184,601 2,706,729 708,091
29,813,730
33,059,968 2,713,239 1,376 11,320,697
15,219.090 212.166 275 123,583
Softball Athletic
Complex Complex
$1,358,679 $5,197,050
46,211 151,045
27,352
1,432,242 5,348,095
9,459
Internal
Service
Funds
$
2,189,496
40,390
2,229,886
_1,122,272
$17,840,878 $2.501.073 $
1.101 111 197 114 111,422783 $5,348,095 $1,107,614
24
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 7. SERVICE CENTER
The Water and Sewer Enterprise Fund historically bears the major portion of the operating costs of
the City's service center, which provides services to all City departments.
NOTE 8. INTERFUND ASSETS/LIABILITIES
Receivable Fund
Water and Sewer
General Fund
Softball Complex
Softball Complex
NOTE 9. CONTRIBUTED CAPITAL
Payable Fund Amount
Golf Course $ 320,000
Golf Course 1,733
Athletic Complex 387,000
Golf Course 331.801
$1.040.534
During fiscal 1998, contributed capital of the Enterprise Funds increased by developer's and other
funds contributions in aid to construction of $240,000 and $179,728, respectively, 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 1998, the City and City's employees contributed approximately
$1,058,535 and $425,242, respectively, for medical coverage. The City's contributions are
accounted for as quasi -external transactions. Claims liabilities are based on estimates of the
ultimate cost of claims(including future claim adjustment expenses) that have been reported but not
settled, and of claims that have been incurred but not reported, and are accounted for in the Internal
Service Risk Management Fund.
25
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 10. RISK MANAGEMENT - continued
The City is also self -insured for workers' compensation claims. Contributions are made to a
separate Risk Management Fund by other funds and are available to pay claims, claim reserves and
administrative costs of the program. An excess coverage insurance policy covers individual claims
in excess of $300,000. During 1998, the City contributed approximately $322,216 to the fund for
workers' compensation.
Changes in the balances of claims liabilities are as follows:
Unpaid claims, beginning of year
Incurred claims
Paid claims
Unpaid claims, end of year
1998 1997
$ 70,000 $ 70,000
1,724,055 1,591,925
1.699.055 1.591.925
$ 95.000 $ 70.000
The City had no significant reductions in insurance coverage from the year ended September 30,
1997. Settlement amounts have not exceeded insurance coverage for the year ended
September 30, 1998 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 benefit plan in a state-wide Texas Municipal Retirement System (TMRS),
one of over 700 administered by TMRS, an agent multiple -employer public employee retirement
system.
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.
26
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE 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. A member is vested after 10 years. The plan provisions are adopted
by the governing body of the City, within the options available in the state statutes governing
TMRS and within the actuarial constraints also in the statutes.
Contributions
The contribution rate for the employees is 7%, and the City matching percent is currently 200%,
both as adopted by the governing body of the City. Under the state law governing TMRS, the
actuary annually determines the City contribution rate. 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. Both the employees and the City make contributions
monthly. Since the City needs to know its contribution rate in advance to budget for it, there is a
one-year delay between the actuarial valuation that is the basis for the rate and the calendar year
when the rate goes into effect (i.e. December 31, 1997 valuation is effective for rates beginning
January 1999).
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date
Actuarial Value of Assets
Actuarial Accrued Liability
Percentage Funded
Unfunded Actuarial Accrued Liability (UAAL)
Annual Covered Payroll
UAAL as a Percentage of Covered Payroll
12/31/97
$31,489,215
39,167.673
80.4%
7,678,458
11,791.361
65.1%
27
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Net Pension Obligation (NPO) at the Beginning of Period $
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
Total annual pension cost
Contributions Made
Increase in NPO
NPO at the end of the period
Trend information for the past three years for TMRS is as follows:
Year
1,641,301
1,641,301
(1,641,301)
$
Annual Percentage
Pension Cost of APC Net Pension
(APC) Contributed Obligation
1995 $ 1,256,549 100%
1996 1,529,741 100%
1997 1,641,301 100%
Further information on the City's pension plan can be obtained by writing to TMRS at P.O. Box
149153, Austin, TX 78714-9153.
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, 1998 was $3,573,905. 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
28
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 12. DEFERRED COMPENSATION PLAN - continued
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, Athletic Complex and Arbor
Daze provide various recreational services and activities.
Segment information for the City's Enterprise Funds is as follows:
Water and Drainage Recreation Golf Softball Athletic Arbor
Sewer Fund Utility Fund Classes Course Complex Complex Daze Total
Operating revenues $ 11,289,023 $ 576,662 $ 243,884 $ 2,888,366 $ 952,789 $ 88,222 $ 624,777 $16,663,723
Depreciation 990,009 75,313 275 123,583 6,618 1,195,798
Operating
income (loss) 670,461 407,737 9,403 471,231 157,428 24,434 57,714 1,798,408
Operating
transfers in 17,528 102,047 18,755 222,219 360,549
transfers out 465,000 29,782 17,528 18,755 531,065
Net income (loss) 632,413 288,796 9,403 ( 25,022) 92,108 222,067 57,714 1,277,479
Current capital
contributions 179,728 240,000 419,728
Property, plant
and equipment:
Additions 898,457 240,009 181,160 17,093 197,648 1,534,367
Total Assets 29,013,348 3,443,399 49,933 11,627,220 2,213,675 5,471,680 57,804 51,877,059
Networking capital 7,286,275 842,193 43,146 177,285 691,525 104,551 57,714 9,202,689
Long-term debt,
including
current portion 2,155,000 1,870,000 10,255,000 1,935,000 16,215,000
Total Equity $25,188,073 $ 1,513,068 $ 44,247 $ 553,574 $ 204,939 $5,077,953 57,714 $32,639,568
29
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 14. CAPITAL LEASES
The City has entered into lease agreements as lessee for financing the acquisition of computer
hardware, software, communications equipment, and a copier. These lease agreements qualify as
capital leases for accounting purposes and, therefore, have been recorded at the present value of
the future minimum lease payments as of the date of their inception. These assets are stated on
the balance sheet at their capitalized cost of $247,412. The following is a schedule of the future
minimum lease payments under these capital leases, and the present value of the net minimum
lease payments at September 30, 1998.
1999 $19.711
Total minimum lease payments 19,711
Less: amount representing interest 2.477
Present value of future minimum lease payments $17.234
NOTE 15. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 1998, the following individual funds had an excess of expenditures over
appropriations:
Police/Drug Enforcement Fund ($8,669)
DEA Task Force Fund ($1,328)
NOTE 16. YEAR 2000 ISSUES
The City is currently addressing Year 2000 (Y2K) issues relating to its computer systems and other
electronic equipment. The Y2K issue refers to the fact that many computer programs use only the
last two digits to refer to a year. Therefore, both 1900 and 2000 would be referred to as "00."
Computer programs have to be adjusted to recognize the difference between those two years or the
programs could fail or create errors. Also, some programs may not be able to recognize that 2000
is a leap year. Further, the year 2000 issue could affect electronic equipment (such as
environmental systems, elevators and vehicles) containing computer chips that have date
recognition features.
It is the stated goal of the City to be fully Y2K compliant by December 31, 1999. In order to
accomplish this goal, the City has contracted with HTE Inc. and Sam Houston State University for
new computer systems that are Y2K compliant. The estimated amount of these commitments is
$748,750 for HTE and an open-ended lease in the amount of $21,241 per year with Sam Houston
State University
All new equipment or software purchased is required to be Y2K compliant. The new systems that
have been purchased and are currently being installed include a financial and administrative
computer system and police system. Testing and validation of the new systems are anticipated to
be complete by December 31, 1999.
30
CITY OF EULESS, TEXAS
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
NOTE 16. YEAR 2000 ISSUES - continued
Because of the unprecedented nature of the Y2K issue, its effects and the success of related
remediation efforts will not be fully determinable until the year 2000 and thereafter. Management
cannot assure that the City is or will be Y2K ready, that the City's remediation efforts will be
successful in whole or in part, or that parties with whom the City does business will be Y2K ready.
NOTE 17. PRIOR PERIOD ADJUSTMENT
Subsequent to issuance of the City's financial statements for the year ended September 31, 1997,
an error was discovered in unreserved retained earnings for the Golf Course Fund and the Athletic
Complex Fund. Accordingly, an adjustment was made to correct the balances reported in previous
financial statements, which had the effect of decreasing unreserved retained earnings and
increasing contributed capital for the Golf Course Fund and the Athletic Complex Fund by
$405,633 and $3,570,078, respectively.
31
44//cevia'
REQUIRED SUPPLEMENTARY INFORMATION
*
4da,,„./4
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 1998
Actuarial
Valuation
Date
12/31/95
12/31/96
12/31/97
Actuarial
Value of
Assets
$ 23,848,136
27, 342, 327
31,489,215
Actuarial
Accrued
Liability
$ 30,449,210
34,623,173
39,167,673
Percentage
Funded
78.32%
78.97%
80.40%
Unfunded
Actuarial
Accrued
Liability
$ 6,601,074
7,280,846
7,678,458
Annual
Covered
Payroll
$ 9,884,244
11,340,676
11,791,361
Unfunded Actuarial
Accrued Liability
as a Percentage
of Covered Payroll
66.78%
64.20%
65.12%
32
INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
44,
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.
Local Law Enforcement - to account for grant revenues received which must be
used for police overtime.
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS
ASSETS
Deposits and investments
Accrued interest receivable
Prepaids
Due from other governments
Due from other funds
Total assets
FOR SEPTEMBER 30, 1997
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable
Accrued salaries and wages
Due to other funds
Total liabilities
FUND EQUITY:
Fund Balances:
Hotel/
Motel
Fund
Police
Drug
Enforce-
ment
Fund
$ 161,635 $ 386,713
Half
Penny
Sales Tax
Fund
$ 1,567,661
11,231
138,124
Crime
DEA Control and
Task Prevention
Force District
Fund Fund
$ 23,874 $ 552,048
77
71,423
$ 161,635 $ 386,713 $ 1 717,016 $ 23,874 $ 623i548
$ 3,794 $ 883 $ 30,000 $
6,619
3,794 883 36,619
Local
Law
Enforcement
Totals
1998 1997
$ 39,083 $ 2,731,014 $ 3,852,392
11,308 4,524
21,000
209,547 193,475
818,256
$ 59,063 $
1,853
60,916
Reserve for debt service 927,674
Unreserved, undeslgnated 157,841 385,830 752,723 23,874 562,632
Total fund equity 157,841 385,830 1,680,397 23,874 562,632
Total liabilities and fund equity $ 161,635 $ 386,713 $ 1,717,016 $ 23,874 $ 623,548
39083 $ 2,951,869. $ ,1889h647.
$ 93,740
8,472
102,212
$ 33,771
2,159,288
2,193,059
927,674 935,203
39,083 1,921,983 1,761,385
39,083 2,849,657 2,696,588
$ 39,083 $ 2951,869 $ 4889,647
33
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
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 1998 199f
Revenues:
Gross receipts tax $ 332,995 $ $ $ - $ $ 332,995 $ 296,427
General sales tax 1,947,538 922,052 2,869,590 2,780,701
Interest income 4,311 15,526 99,149 164 28,275 1,514 148,939 182,922
DEA revenues 96,023 96,023 111,984
Other revenues 138 3,099 37,355 28,049 68,641 40,383
Total revenues 337,444 114,648 2,046,687 37,519 950,327 29,563 3,516,188 3,412,417
Expenditures:
General and administrative 145,208 4,250 24,936 174,394 43,060
Police department 21,986 17,406 411,370 450,762 149,203
Parks 335,419 335,419 164,607
Library 266,010 266,010 243,850
Economic development 130,379 130,379 61,855
Debt service
Principal 335,000 335,000 310,000
Interest and fiscal charges 592,672 592,672 625,202
Capital outlay
and maintenance 49,199 16,429 65,628 376,954
Total expenditures 194,407 38,415 1,663,730 17,406 411,370 24,936 2,350,264 1,974,731
Other financing sources (uses):
Operating transfers In 3,117 3,117 1,065,505
Operating transfers out (65598). (3,117). (247,257). _J700,000) _J1,015,9�- _131095 176)-
Total other
financing sources (uses) (65,598) (3,117). (247,257). (700,000) 3,117 (1,012,8551 (2,029,671)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses 77,439 73,116 135,700 20,113 (161,043) 7,744 153,069 (591,985)
Fund balance,
beginning of year 80,402 312,714 1,544,697 3,761 723,675 31,339 2,696,588 3,288,573
y __._..._..__ ,._._.... ... _.__,
Fund balance, end of year $ 157„841 $ 385,830 $ 1,680,397 $ 23,874 $ 562,632 $ 39,083 $ 2,849,657 $ 2,696,588
34
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,1998
Hotel/Motel Fund Police/Drug Enforcement Fund
Variance Variance
Favui 0Lle Favui 0Lle
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Revenues:
Gross receipts tax $ 332,995 $ 330,889 $ 2,106 $ $ $
General sales tax
Interest income 4,311 5,000 (689) 15,526 12,000 3,526
DEA revenues 96,023 57,100 38,923
Other revenues 138 138 3,099 3,099
Total revenues 337,444 335,889 1,555 114,648 69,100 45,548
Expenditures:
General and administrative 145,208 162,100 16,892
Police department 21,986 16,570 (5,416)
Parks
Library
Economic Development
Debt Service Principal
Debt Service Interest
Capital outlay
and maintenance 49,199 49,000 (199) 16,429 13,176 (3,253)
Total expenditures 194,407 211,100 16,693 38,415 29,746 (8,669)
Other financing sources (uses):
Operating transfers in
Operating transfers out (65,598) (65,598) (3,117) (23,117) 20,000
Total other
financing sources (uses) (65,598) (65,598) (3,117) (23,117) 20,000
Excess (deficiency) of revenues and
and other financing sources over
expenditures and other
financing uses 77,439 59,191 18,248 73,116 16,237 56,879
Fund balance,
beginning of year
80,402 80,402 312,714 312,714
Fund balance, end of year $ 157,841 $ 139,593 $ 18,248 $ 385,830 $ 328,951 $ 56,879
35
Half Penny Sales Tax Fund
(1 of 2)
DEA Task Force Fund
Variance Variance
rdvur dLle Fdvur dLte
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ $ - $ $ - $ $
1,947,538 1,936,523 11,015
99,149 65,000 34,149 164 90 74
37,355 15,000 22,355
2,046,687 2,001,523 45,164 37,519 15,090 22,429
4,250 5,850 1,600
17,406 16,078 (1,328)
335,419 336,824 1,405
266,010 272,065 6,055
130,379 131,650 1,271
335,000 335,000
592,672 592,674 2
1,663,730 1,674,063 10,333 17,406 16,078 (1,328)
929,274 (929,274)
(247,257) (1,176,531) 929,274
(247,257) (247,257)
135,700 80,203 55,497 20,113 (988) 21,101
1,544,697 1,544,697 3,761 3,761
$ 1,680,397 $ 1,624,900 $ 55,497 $ 23,874 $ 2,773 $ 21,101
36
(2 of 2)
Crime Control and Prevention District Fund Local Law Enforcement Fund
Variance
Fdvui dole Favui able
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Variance
Revenues:
Gross receipts tax $ - $ - $ - $ $ - $
General sales tax 922,052 937,426 (15,374)
Interest income 28,275 5,000 23,275 1,514 1,250 264
DEA revenues
Other revenues 28,049 28,049
Total revenues 950,327 942,426 7,901 29,563 29,299 264
Expenditures:
General and administrative 24,936 63,755 38,819
Police department 411,370 504,234 92,864
Parks
Library
Economic Development
Debt Service Principal 101,970 101,970
Debt Service Interest
Capital outlay
and maintenance 193,734 193,734
Total expenditures 411,370 799,938 388,568 24,936 63,755 38,819
Other financing sources (uses):
Operating transfers in 3,117 3,117
Operating transfers out (700,000) (700,000)
Total other
financing sources (uses) (700,000) (700,000) 3,117 3,117
Excess (deficiency) of revenues and
and other financing sources over
expenditures and other
financing uses (161,043) (557,512) 396,469 7,744 (31,339) 39,083
Fund balance,
beginning of year 723,675 723,675 31,339 31,339
Fund balance, end of year $ 562,632 $ 166,163 $ 396,469 $ 39,083 $ $ 39,083
37
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.
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.
Police Facility Construction Fund — to account for the construction of a police
facility.
General Obligation Capital Projects — to account for improvements to an existing
building for the new Fire Station facility.
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
ASSETS
Deposits and investments
Accrued interest receivable
Due from other funds
Total assets
LIABILITIES AND FUND EQUITY
Accounts payable
Customer and escrow deposits
Due to other funds
Total liabilities
Fund Balances:
Reserve for development
agreements
Unreserved, undesignated
Total fund equity
Total liabilities and fund equity
Park
Improvements Street Half -Penny
Certificates of Street Capital Sales Tax
Obligation Assessments Improvements Construction
_Fund (1990)_ Fund Fund in Progress
$ 9,888 $ 42,377 $ 4,953,227 $ 1,206,433
13,528
$ 9,888 $ 42,377 $ 4,966,755 $ 1,206,433
$ $ $ 37,225 $ 47,128
37,225 47,128
9,888 42,377 4,929,530 1,159,305
9,888 42,377 4,929,530 1,159, 305
$ 9,888 $ 42,377 $ 4,966,755 $ 1,206,433
38
Police G.O.
Developers' Facility Capital
Contribution Construction Projects Totals
Fund Fund Fund 1998 1997
$ 1,652,680 $ 1,160,906 $ 245,826 $ 9,271,337 $ 4,254,677
35,968 49,496 31,887
2,153, 634
$ 1,688,648 $ 1,160,906 $ 245,826 $ 9,320,833 $ 6,440,198
$ - $ 77,759 $ 300 $ 162,412 $ 13,867
9,669 87,157 96,826 195,047
786,917
9,669 77,759 87,457 259,238 995,831
1,232,860 1,232,860 1,272,214
446,119 1,083,147 158,369 7,828,735 4,172,153
1,678,979 1,083,147 158,369 9,061,595 5,444,367
$ 1,688,648 $ 1,160,906 $ 245,826 $ 9,320,833 $ 6,440,198
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
Park
Improvements Street Half -penny
Certificates of Street Capital Sales tax
Obligation Assessments Improvements Construction
Fund (1990) Fund Fund in Progress
Revenues:
Interest income $ $ $ 146,264 $ 48,465
Intergovernmental 1,280,767
Other revenue 59,687
Total revenues 1,427,031 108,152
Expenditures:
Planning and development
Parks/recreation/library 211,929
Economic development 90,136
Issuance costs 45,950
Capital outlay and maintenance 3,273,931
Total expenditures 3,319,881 302,065
Excess (deficiency) of revenues
over expenditures (1,892,850) (193,913)
Other financing sources (uses):
Net proceeds from issuance
of certificates of obligation 4,430,900
Operating transfers in
Operating transfers out (11,411)
Total other financing sources (uses) 4,430,900 (11,411)
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses 2,538,050 (205,324)
Fund balances, beginning of year 9,888 42,377 2,391,480 1,364,629
Fund balances, end of year $ 9,888 $ 42,377 $ 4,929,530 $ 1,159,305
40
Police G.O.
Developers' Facility Capital
Contribution Construction Projects Totals
Fund Fund Fund 1998 1997
$ 82,340 $ 17,229 $ 16,411 $ 310,709 $ 259,585
1,280,767
36,042 95,729 3,719
118,382 17,229 16,411 1,687,205 263,304
111,981
211,929 247,210
90,136 67,169
10,850 56,800
75,396 203,972 916,292 4,469,591 2,456,552
75,396 203,972 927,142 4,828,456 2,882,912
42,986 (186,743) (910,731) (3,141,251) (2,619,608)
1,069,100 5,500,000
1,269,890 1,269,890 1,289, 386
(11,411) (1,855,859)
1,269,890 1,069,100 6,758,479 (566,473)
42,986 1,083,147 158,369 3,617,228 (3,186,081)
1,635,993 5,444,367 8,630,448
$ 1,678,979 $ 1,083,147 $ 158,369 $ 9,061,595 $ 5,444,367
ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises - where the intent of the government's council is that the
costs of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or where the government's council has decided that
periodic determination of net income is appropriate for accountability purposes.
Water and Sewer Fund - to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user
charges to the public.
Drainage Utility Fund - to account for the acquisition, operation and maintenance
of a municipal drainage utility, supported primarily by user charges.
Recreation Classes - to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Golf Course Fund - to account for the operation and maintenance of the golf
course, supported primarily by user charges.
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.
Arbor Daze Fund — to account for the receipts and disbursements of the Arbor
Daze Festival, supported primarily by user charges.
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
Water and Drainage
Sewer Utility
ASSETS
Current assets:
D.f,.,.;1. ui,J investments $ 5,443,640 $ 840,847
Accounts and unbilled revenue less allowance
for uncollectibles of $1,463 for water and sewer
and $6,127 for drainage utility 1,538,360 35,571
Grants receivable
Accrued interest receivable 158,023 231
Prepaids and deposits 256,143
Inventory 40,484
Due from other funds 320,000
Total current assets 7,756,650 876,649
Restricted assets:
Revenue bond debt service:
Cash with paying agent 12,730
Revenue bond retirement:
Investment with paying agent
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investment with paying agent 459,852
Capital projects account:
Cash and cash equivalents 466,820
Short-term investments 826,495
Customer deposits:
Cash and cash equivalents 1,099,575
Interest receivable on investments 19,303
Total restricted assets 3,384,775
Bond issuance cost 85,373 107,473
Less accumulated amortization 54,328 41,796
Net bond issuance cost 31,045 65,677—
Utility plant and equipment in service, at cost
Land and Building 1,528,966
Equipment 1,532,671 6,510
Improvements 184,601 2,706,729
Waterworks and sanitary sewer system 29,813,730
Construction in progress
33,059,968 2,/13,239
Less accumulated depreciation 212,166
Net utility plant and equipment in service 17,840,878 2,501,073
TOTAL ASSETS $29,013,348 $ 3,443,399
42
Recreation Golf
Classes Course
$ 48,432 $ -
400 221,142
14,511
93,499
48,832 329,152
Softball
Complex
Athletic
Complex
Arbor
Daze
(1 of 2)
Totals
1998 1997
$ 13,441 $ 47,967 $ 57,804 $ 6,452,131 $ 6,110, 923
643 1,796,116 1,511,549
59,772 59,772 260,000
109 158,363 81,249
702 271,356 86,267
19,677 3,539 157,199 128,126
718,801 _ 1,038,801 809,917_
753,373 111,278 57,804 9,933,738 8,88,051
12,730
500,000
459,852
466,820
826,495
1,099,575
19 303
3, 384,775
116,003 42,879 14,259 365,987
15,049 5,360 1,952 118,485
100,954 37,519 12,30/ 247,502
10, 050, 444
1,376 562,162
708,091
1,376 11,320,697
123,583
1,101 11,197,114
$ 49,933 $ 11,627,220
1,358,679
46,211
27,352
1,432,242
9,459
1,422,783
$ 2,213,675
5,197, 050 18,135,139
151,045 2,299,975
3,626,773
29,813,730
5,348,095 53, 875, 61 !
I O, 0O4, O / O
5,348,095 38, 311, 044
$ 5,471,680 $ 57,804 $51,877,059
8,143
82,877
500,000
549,556
15,075
1,363,251
1,057,435
37,350_
365,987
95,833_
270,154
3,420,381
1,952,317
3,031,851
29,083,945
14, 852, 756
52,341,250
14,3O0, / / O
37, 972, 475
$ 50,844,347
43
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
LIABILITIES AND FUND EQUITY
Current� �liabilities:
.J.V.., ,.urrent assets:
Accounts payable
Accrued salaries and wages
Customer and escrow deposits
Deferred revenue
Total current liabilities
Current obligations payable from
restricted assets:
Customer and escrow deposits
Current portion of bonds payable
Current portion of tax notes payable
Accrued interest
Bonds payable
Tax notes payable
Deferred revenue
Due to other funds
Total liabilities
Fund equity:
Contributed capital:
From state
From general fund
From subdividers
From Special Revenue Fund
From Environmental Protection Agency
From Trinity River Authority
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
Retained earnings:
Reserved for:
Computer
Western Hills
Debt service and construction
Recycling
Emergency
Outstanding work
Total reserved
Unreserved
Total Retained earnings
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
Water and
Sewer
$ 362,822
107,553
470,375
1,099,575
385,000
35,452
1,770,000
64,873
3,825,275
15,705,558
239,617
15,000
15, 960,175
7,187, 566
8,772,609
225,000
447,034
31,311
500,000
39,405
1,242,750
15,172,714
`1 4TT.,, 464
25,188,073
$ 29,013,348
Drainage
Utility
$ 26,956
7,500
34,456
105,000
25,875
1,765, 000
1,930, 331
1,513,068
1,513,068
1,513,068
$ 3,443,399
44
(2 of 2)
Recreation Golf Softball Athletic Arbor Totals
Classes Course Complex Complex Daze 1998 1997
$ 5,433 $ 70,336 $ 30,970 $ 4,685 $ 90 $ 501,292 $ 871,176
253 31,864 9,913 375 149,958 102,417
7,500
49,667 20,965 1,667 72,299 16,342
5,686 151,867 61,848 6,727 90 731,049 989,935
1,099,575 1,057,435
50,000 70,000 610,000 585,000
190,000 190,000 170,000
13,245 11,888 86,460 91,943
9,625,000 1,865,000 15,025,000 15,635,000
390,000 390,000 580,000
64,873 72,673
653,534 387,000 1,040,534 720,000
5,686 11,073,646 2,008,736 393,727 90 19,237,491 19,901,986
500,000 500,000 260,000
1,700,426 1,700,426 985,426
15, 705, 558 15, 525, 830
405,633 2,855,078 3,260,711
239,617 239,617
22,097 37,097 _ 37,097
421,/30 5,055,504 21,443,409 1 /,04/,9/0
7,187,566 6,766,235
427,730 5,055,504 14,255,843 10,281,735
225,000 200,000
- 175,000
447,034 620,080
31,311 31,311
500,000 500,000
39,405
- - 1,242,750 1,526,391
44,247 125,844 204,939 22,449 57,714 1 i, i4u,wo 10, 104 L00
44,24/ 125,844 204,939 22,449 57,714 18,383,725 20,660626
44,247 553,574 204,939 5,077,953 57,714 32,639,568 30,942,361
$ 49,933 $ 11,627,220 $ 2,213,675 $ 5,471,680 $ 57,804 $ 51,877,059 $ 50,844,347
45
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
Water and Drainage
Sewer Utility
Operating revenues:
Water service $ 7,125,669 $
Sewer service 3,544,244
Drainage fees 576,662
Recreation fees
Service fees and miscellaneous 619,110
Total operating revenues 11,289,023 576,662
Operating expenses:
General and administrative 576,475
Water production 3,340,590
Water distribution 459,664
Utility engineering 173,753
Sewage collection and treatment 1,754,800
Nondepartmental 2,473,991
Geographic information 188,798
Service center 652,720
Drainage 87,641
Recreation classes
Golf course
Clubhouse
Engineering
Pro Shop
Food and beverage
Conference center
Cart operations
Driving range
Athletic complex
Softball complex
Arbor Daze
Depreciation 990,009 75,313
Amortization 7,762 5,971
Total operating expenses 10,618,562 168,925
Operating income (loss) 670,461 407,737
Nonoperating revenues (expenses)
Investment income 541,779 34,923
Interest on bonds (132,355) (124,082
Total nonoperating revenues (expenses), net 409,424 (89,159)
Income (loss) before operating transfers 1,079,885 318,578
Operating transfers in 17,528
Operating transfers out (465,000) (29,782)
Net income 632,413 288,796
Add depreciation on fixed assets
acquired with contributed capital 421,331
Increase in retained earnings 1,053,744 288,796
Retained earnings, beginning of year 15,361,720 1,224,272
Prior period adjustment
Retained earnings, end of year $ 16,415,464 $ 1,513,068
46
Recreation
Classes
$ -
243,884
243,884
234,206
Golf
Course
2,888,366
2,888,366
876,663
1,764
356,379
758,422
167,679
117,275
9,172
Softball
Complex
$ $
952,789
952,789
750
Athletic
Complex
Arbor
Daze 1998
$ 7,125,669
3,544,244
576,662
243,884
88,222 624,777 5,173,264
88,222 624,777 16,663,723
63,109
785,951
275 123,583 6,618
6,198 2,042 679
234,481 2,417,135 795,361 63,788
9,403 471,231 157,428 24,434
(817) 9,701 (5,831)
579,955 93,776
580,772) (84�T5� (5,831)
9,403 (109,541) 73,353 18,603
102,047 18,755 222,219
(17, 528) (18,755)
9,403 (25,022) 92,108 222,067
9,403
34,844
$ 44,247
(25,022)
556,499
(405,633)
$ 125,844
92,108 222,067
112,831 3,370,460
(3,570,078)
567,063
567,063
57,714
57,714
57,714
57,714
577,225
3,340,590
459,664
173,753
1,754,800
2,473,991
188,798
652,720
87,641
234,206
876,663
1,764
356,379
758,422
167,679
117,275
9,172
63,109
785,951
567,063
1,195,798
22,652
14,865,315
1,798,408
Totals
579,755
930,168
350,41S
1,447,995
360,549
(531,065)
1,277,479
421,331
1,698, 810
20,660,626
(3,975,711)
1997
$ 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
$ 204,939 $ 22,449 $ 57,714 $ 18,383,725 $ 20,660,626
47
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating
income 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
Reduction in tax notes payable
Proceeds from issuance of tax notes payable
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
Purchase of utility plant and equipment
in service
Net cash provided by (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 Drainage
Sewer Utility
$ 670,461 $ 407,737
997,771
(75,937)
87,299
(169,876)
(17,410)
244,096
15,073
81,284
(759)
26,956
42,140 7,500
(7,800)
1,1 5,356 " 4,98'(-
1, 785, 817— S2' 2 7ig—
(132,355)
(395, 000)
(124,082)
(100,000)
17,528
674,8207)-—(253;Sfia) (9"
179,728
(898,457)
/118,129)' i(240,009)-
709,337
483,052
1,192,389
1,284,650
5,738,115
$ 7,022,765
34,692
34,692-
63,537
777,310
$ 840,847
48
Recreation Golf Softball
Classes Course Complex
$ 9,403 $ 471,231 $ 157,428
275 129,781 8,660
Athletic Arbor
Complex Daze
$ 24,434 $ 57,714 $ 1,798,408
679
(400) (206,828) (643) 200,228
2,618 (318,801)
(14,511) (702)
(10,087) 1,963
(1,852) (413,347) 24,816
253 21,927 9,913
333,534
33,325 20,965
(1,724) (123,588L (253,829
7,679 347�,64S (96,401
(553,465) (93,776)
(31,973)
(25,000) (65,000)
(170, 000)
7,679
40,753
$ 48,432 $
102,047 18,755
(17,528)
(95,919) (140,021)
181,160
(181,160)
(817)
(817)
(530,253)
530,253
(17, 093)
(17,093)
9,592
9,592
(243,923)
257,364
$ 13,441
(3,539)
(250,643)
375
(13, 000)
1,667
76-4-,
39, 9,
222,219
(18,755)
03,464
240,000
(197,648)
42,352
(5,831)
(5,831
200,186
(152,219)
$ 47,967
90
90
57,804
57,804
$ 57,804
1,218,450
(84,339)
(228, 884)
(185,089)
(29,073)
(369,884)
47,541
320,534
49,640
48,157
787,053
2,585,461
(903,678)
(31,973)
(585,000)
(170,000)
360,549
(531,065
419,728
(1,534,367)
(1,114,639)
709,337
520,688
1,230,025
839,680
7,191, 576
$ 8,031,256
Totals
1998 1997
$ 1,174, 572
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)
(9,048,367j
(11,837)
674,436
662,599
(4,721,770)
11, 913, 346
$ 7,191,576
49
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
(1 of 2)
1998 1997
ASSETS
Current assets:
Deposits and investments $ 5,443,640 $ 4,657,462
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 1998 and 1997 1,538,360 1,462,423
Accrued interest receivable 158,023 81,249
Prepaids and deposits 256,143 86,267
Inventory 40,484 23,074
Due from other funds 320,000 407,299
Total current assets 7,756,650 6,717,774
Restricted assets:
Revenue bond debt service:
Cash with paying agent 12,730 8,143
Revenue bond retirement:
Investments with paying agent 82,877
Revenue bond emergency:
Short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent 459,852 549,556
Capital projects account:
Cash and cash equivalents 466,820 15,075
Short-term investments 826,495 1,363,251
Customer deposits:
Cash and cash equivalents 1,099,575 1,057,435
Interest receivable on investments 19,303 37,350
Total restricted assets 3,384,775 3,613,687
Bonds issuance cost 85,373 85,373
Less accumulated amortization 54,328 46,566
Net bond issuance cost 31,045 38,807
Utility plant and equipment in service, at cost:
Land and building 1,528,966 1,528,966
Equipment 1,532,671 1,548,600
Improvements 184,601
Waterworks and sanitary sewer system 29,813,730 29,083,945
33,059,968 32,161,511
Less accumulated depreciation 15,219,090 14,229,081
Net utility plant and equipment in service 17,840,878 17,932,430
TOTAL ASSETS $ 29,013,348 $ 28,302,698
50
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
(2 of 2)
1998 1997
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 362,822 $ 118,726
Accrued salaries and wages 107,553 92,480
Total current liabilities 470,375 211,206
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,099,575 1,057,435
Current portion of bonds payable 385,000 395,000
Accrued interest 35,452 35,452
Bonds payable 1,770,000 2,155,000
Deferred revenue 64,873 72,673
Total liabilities 3,825,275 3,926,766
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
15,705,558 15,525,830
239,617 239,617
15,000 15,000
15,960,175 15,780,447
7,187,566 6,766,235
8,772,609 9,014,212
Retained earnings:
Reserved for:
Computer 225,000 200,000
Western Hills 175,000
Debt service and construction 447,034 620,080
Recycling 31,311 31,311
Emergency 500,000 500,000
Outstanding work 39,405
Total reserved 1,242,750 1,526,391
Unreserved 15,172,714 13,835,329
Total retained earnings 16,415,464 15,361,720
Total fund equity 25,188,073 24,375,932
TOTAL LIABILITIES AND FUND EQUITY $ 29,013,348 $ 28,302,698
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
1998 1997
Operating revenues:
Water service $ 7,125,669 $ 6,057,528
Sewer service 3,544,244 3,301,836
Service fees and miscellaneous 619,110 760,922
Total operating revenues 11,289,023 10,120,286
Operating expenses:
General and administrative 576,475 498,950
Water production 3,340,590 2,920,957
Water distribution 459,664 468,118
Utility engineering 173,753 159,013
Sewage collection and treatment 1,754,800 1,483,336
Nondepartmental 2,473,991 1,759,001
Geographic information 188,798 165,297
Service center 652,720 559,832
Depreciation 990,009 939,564
Amortization 7,762 7,761
Total operating expenses 10,618,562 8,961,829
Operating income 670,461 1,158,457
Nonoperating revenues (expenses)
Investment income 541,779 485,067
Interest on bonds (132,355) (151,480)
Total nonoperating revenues
(expenses), net 409,424 333,587
Income before operating transfers 1,079,885 1,492,044
Operating transfers in 17,528
Operating transfers out (465,000) (777,187)
Net income 632,413 714,857
Add depreciation on fixed assets acquired
with contributed capital 421,331 421,331
Increase in retained earnings 1,053,744 1,136,188
Retained earnings, beginning of year 15,361,720 14,225,532
Retained earnings, end of year $ 16,415,464 $ 15,361,720
52
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
(1 of 2)
1998 1997
General and administrative:
Salaries and benefits $ 291,463 $ 273,513
Postage and supplies 48,160 57,117
Maintenance of office machinery 6,412 5,061
Bad debts 22,046 27,707
Other 208,394 135,552
576,475 498,950
Water production:
Salaries and benefits 300,140 322,069
Operating supplies and expense 60,058 59,477
Maintenance of structures and equipment 4,610 6,887
Contracts - Trinity River Authority (111,232) (161,715)
Water - Trinity River Authority 3,087,014 2,694,239
3,340,590 2,920,957
Water distribution:
Salaries and benefits 333,709 363,704
Operating supplies and expenses 31,316 28,538
Maintenance of structures and equipment 54,662 43,995
Sewer - Trinity River Authority 39,977 31,881
459,664 468,118
Utility engineering:
Salaries and benefits 129,124 125,258
Operating supplies and expenses 44,629 33,755
173,753 159,013
Sewage collection and treatment:
Salaries and benefits 221,736 231,454
Operating supplies and expenses 66,359 41,202
Maintenance of structures and equipment 2,799 1,903
Treatment fees - Trinity River Authority 1,463,906 1,208,777
1,754,800 1,483,336
Nondepartmental:
Salaries and benefits 482,903 474,946
Operating supplies and expenses 1,394,057 749,504
Contractual services 18,750 18,529
Franchise fees 578,281 516,022
2,473,991 1,759,001
53
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
1998 1997
Geographic information:
Salaries and benefits $ 142,620 $ 118,618
Operating supplies and expenses 8,607 11,465
Maintenance of machinery and equipment 36,881 32,012
Contractual services 690 3,202
188,798 165,297
Service center:
Salaries and benefits 246,804 217,626
Motor fuel and supplies 286,498 256,880
Maintenance of structures and equipment 92,277 55,258
Other 27,141 30,068
652,720 559,832
Depreciation and amortization 997,771 947,325
Total operating expenses $ 10,618,562 $ 8,961,829
54
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization
(Increase) decrease due to net 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
Customer and escrow deposits
Deferred revenue
Total adjustments
Net cash provided by operating activities
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds
Reduction in bonds payable
Operating transfers in
Operating transfers out
Net cash used in noncapital financing activities
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction
Purchase of utility plant and equipment in service
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 in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
1998
$ 670,461
997,771
(75,937)
87,299
(169,876)
(17,410)
244,096
15,073
42,140
(7,800)
1,115,356
1,785,817
(132,355)
(395,000)
17,528
(465,000)
(974,827)
179,728
(898,457)
(718,729)
709,337
483,052
1,192,389
1,284,650
5,738,115
$ 7,022,765
1997
$ 1,158,457
947,325
(194,756)
(320,000)
(79,339)
(23,074)
(150,145)
(14,740)
140,039
(7,800)
29 (,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
55
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1998
Capital
Operating Projects
Account Account
ASSETS
Current assets:
Deposits and investments $ 3,150,025 $
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 1,538,360
Accrued interest receivable 110,516
Prepaids and deposits 256,143
Inventory
Due from other funds 320,000
Total current assets 5,375,044
Restricted assets:
Revenue bond debt service:
Cash with paying agent
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investments with paying agent
Capital projects account:
Cash and cash equivalents 466,820
Short-term investments 826,495
Customer deposits:
Cash and cash equivalents 1,099,575
Interest receivable on investments 13,714
Total restricted assets 1,599,575 1,301,029
Bonds issuance cost 85,373
Less accumulated amortization 54,328
Net bond issuance cost 31,045
Utility plant and equipment in service, at cost:
Land and building 1,528,966
Equipment 1,455,359
Improvements 184,601
Waterworks and sanitary sewer system 29,813,730
32,982,656
Less accumulated depreciation 15,219,090
Net utility plant and equipment in service 17,763,566
TOTAL ASSETS $ 24,769,230
4,280
4,280-
4,280
$ 1,311,309
56
(1 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1998
12,730
459,852
5,589
478,171
$ 62,062 $ 2,171,295 $ 60,258
47,507
40,484
102,546 2,218,802 60,258
73,032
73,032
73,032
$ 5,443,640
1,538,360
158,023
256,143
40,484
320,000
7,756,650
12,730
500,000
459,852
466,820
826,495
1,099,575
19,303
3,384,775
85,373
54,328
31,045
1,528,966
1,532,671
184,601
29,813,730
33,059,968
15,219,090
17,840,878
$ 478,171 $ 175,578 $ 2,218,802 $ 60,258 $ $ 29,013,348
57
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1998
Capital
Operating Projects
Account Account
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 331,707 $ 4,152
Accrued salaries and wages 91,622 4,363
Total current liabilities 423,329 8,515
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,099,575
Current portion of bonds payable 385,000
Accrued interest
Bonds payable 1,770,000
Deferred revenue 64,873
Total liabilities 3,742,777
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
7,187,566
6,856,802
8,515
Retained earnings:
Reserved for:
Computer 225,000
Western Hills
Debt service and construction
Recycling 31,311
Emergency 500,000
Outstanding work
Total reserved 756,311
Unreserved 13,413,340 1,302,794
Total retained earnings 14,169,651 1,302,794
Total fund equity 21,026,453 1,302,794
TOTAL LIABILITIES AND FUND EQUITY $ 24,769,230 $ 1,311,309
$
(2 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1998
25,463 $ 1,500 $ $ $ 362,822
11,568 107,553
37,031 1,500 470,375
1,099,575
385,000
35,452 35,452
1,770,000
64,873
35,452 37,031 1,500 3,825,275
1,915,807 15,705,558
239,617
15,000
1,915,807 15,960,175
7,187,566
1,915,807 8,772,609
225,000
447,034 447,034
31,311
500,000
39,405 39,405
447,034 39,405 1,242,750
(4,315) 99,142 2,217,302 60,258 (1,915,807)15,172,714
442,719 138,547 2,217,302 60,258 1,915,807) 16,415,464
442,719 138,547 2,217,302 60,258 25,188,073
$ 478,171 $ 175,578 $ 2,218,802 $ 60,258 $ $ 29,013,348
59
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1998
Capital
Operating Projects
Account Account
Operating revenues:
Water service $ 7,125,669 $
Sewer service 3,544,244
Service fees and miscellaneous 608,009
Total operating revenues 11,277,922
Operating expenses:
General and administrative 472,709 97,267
Water production 3,340,590
Water distribution 459,664
Utility engineering 173,753
Sewage collection and treatment 1,754,800
Nondepartmental 2,473,991
Geographic information 188,798
Service center
Depreciation 990,009
Amortization 7,762
Total operating expenses 9,862,076 97,267
Operating income (loss) 1,415,846 (97,267)
Nonoperating revenues (expenses)
Investment income 361,417 58,234
Interest on bonds
Total nonoperating revenues
(expenses), net 361,417 58,234
Income (loss) before operating transfers 1,777,263 (39,033)
Operating transfers from other funds or other water
and sewer accounts 1,103,813 657,375
Operating transfers to other funds or other water
and sewer accounts (2,153,136) (691,285)
Net income (loss) 727,940 (72,943)
Add depreciation on fixed asset acquired
with contributed capital 421,331
Increase (decrease) in retained earnings 1,149,271 (72,943)
Retained earnings (deficit), beginning of year 13,020,380 1,375,737
Retained earnings, end of year $ 14,169,651 $ 1,302,794
60
Bond Service Impact Debt Year Ended
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1998
$ $ $ 7,125,669
3,544,244
11,101 179,728 (179,728) 619,110
11,101 179,728 (179,728) 11,289,023
5,300 1,199 576,475
3,340,590
459,664
173,753
1,754,800
2,473,991
188,798
652,720 652,720
990,009
7,762
652,720 5,300 1,199 10,618,562
(641,619) 174,428 (1,199) (179,728) 670,461
30,014 92,114 541,779
(57,375) (74,980) (132,355)
(27,361) 92,114 (74,980) 409,424
(27,361) (641,619) 266,542 (76,179) (179,728) 1,079,885
649,324 381,437 (2,774,421) 17,528
(150,000) (245,000) 2,774,421 (465,000)
(177,361) 7,705 266,542 60,258 (179,728) 632,413
421,331
(177,361) 7,705 266,542 60,258 (179,728) 1,053,744
620,080 130,842 1,950,760 (1,736,079) 15,361,720
$ 442,719 $ 138,547 $ 2,217,302 $ 60,258 $ (1,915,807) $ 16,415,464
61
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1998
ASSETS
Current assets:
Deposits and investments
Accounts and unbilled revenue
less allowance for uncollectibles of
$6,127 for drainage utility
Accrued interest receivable
Total current assets
Bond issuance cost
Less accumulated amortization
Net bond issuance cost
Utility plant and equipment
in service, at cost:
Equipment
Improvements
Less accumulated depreciation
Net utility plant and equipment in service
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable
Customer and escrow deposits
Total current liabilities
Current portion of bonds payable
Accrued interest
Bonds payable
Total liabilities
Retained earnings:
Unreserved
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
Operating
Account
Construction
in Progress
$ 429,154 $ 411,693
35,571
154 77
464,879 411,770
107,473
41,796
65,677
6,510
2,706,729
2,713,239
212,166
2,501,073
$ 2,965,952
$
$ 477,447 $
$ 6,657 $ 20,299 $
7,500
6,657 27,799
105,000
25,875
1,765,000
6,657 1,923,674
2,959,295
2,959,295
1,446,227
(1,446,227
$ 2,965,952 $ 477,447 $
Elimi-
nations
Total
September 30,
1998
$ 840,847
35,571
231
876,649
107,473
41,796
65,677
6,510
2,706,729
2,713,239
212,166
2,501,073
$ 3,443,399
$ 26,956
7,500
34,456
105,000
25,875
1,765,000
1,930,331
1,513,068
1,513,068
$ 3,443,399
62
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1998
Year Ended
Operating Construction Elimi- September 30,
Account in Progress nations 1998
Operating revenues:
Drainage fees $ 576,662 $ - $ $ 576,662
Total operating revenues 576,662 576,662
Operating expenses:
Drainage 87,641 87,641
Depreciation 75,313 75,313
Amortization 5,971 5,971
Total operating expenses 162,954 5,971 168,925
Operating income (loss) 413,708 (5,971) 407,737
Nonoperating revenues (expenses):
Investment income
Interest on bonds
Total nonoperating revenues
(expenses), net
Income (loss) before
operating transfers
Operating transfers in
Operating transfers out
Increase in
retained earnings
Retained earnings (deficit),
beginning of year
Retained earnings (deficit),
end of year
18,971 15,952 34,923
(124,082) (124,082)
18,971 (108,130)
(89,159)
432,679 (114,101) 318,578
240,009 414,082 (654,091)
(443,864) (240,009) 654,091 (29,782)
228,824 59,972 288,796
2,730,471 (1,506,199) 1,224,272
$ 2,959,295 $ (1,446,227) $ $ 1,513,068
63
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by
one department to other departments of the government and to other government units, on a
cost reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned
to be used in replacing existing equipment. Funding is provided annually by the
user departments.
Insurance Fund - to account for the revenue and expenses resulting from providing
health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to
the self-insurance program for worker's compensation and for general liability and
property claims.
Cash and Debt Management Fund - to account for the revenues and expenses
incurred in providing cash and debt management services to all funds. Funding is
provided by a predetermined amount of earned investment income, not to exceed
total fund expenses.
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
ASSETS
Deposits and investments
Accounts receivable
Accrued interest receivable
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
Accounts payable
Accrued salary and wages
Accrued insurance
claims
Total current liabilities
Retained earnings:
Reserved:
Insurance
Workers' compensation
Risk management
Total reserved
Unreserved
Total retained earnings
TOTAL LIABILITIES AND
RETAINED EARNINGS
Equipment
Replacement
Fund
Insurance
Fund
Risk
Manage-
ment
Fund
Cash and
Debt
Manage-
ment Fund
$ 524,855 $ 170,765 $ 677,146 $
13,644
8,108 8,047
532,963
2,189,496
40,390
2,229,886
1,122,272
1,107,614
184,409 685,193
$ 1,640,577 $ 184,409 $ 685,193
1,640,577
1,640,577
1998
Total
1997
636 $ 1,373,402 $ 1,290,105
13,644 2,258
16,155
636 1,403,201
2,189,496
40,390
2,229,886
1,122,272
1,107,614
$ 636 $ 2,510,815
$ 62,787 $ 9,757 $
21,056 430
70,000 25,000
153,843 35,187
30,566
30,566
30,566 650,006
200,000
200,000
400,000
250,006
$ 1,640,577 $ 184,409 $ 685,193
$ 72,544
636 22,122
95,000
636 189,666
30,566
200,000
200,000
430,566
1,890,583
2,321,149
$ 636 $ 2,510,815
20,561
1,312,924
1,939,300
40,390
1,979,690
929,887
1,049,803
$ 2,362,727
$ 79,693
70,000
149,693
25,670
200,000
200,000
425,6 (0
1,787,364
2,213,034
$ 2,362,727
64
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1997
Equipment
Replacement
Fund
Operating revenues:
Insurance premiums $
Service fees and
miscellaneous
416,572
Total operating revenues 416,572
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
Income (loss) before
operating transfers
286,120
286,120
130,452
17,501
17,501
147,953
Insurance
Fund
$ 1,483,778
Operating transfers in
Operating transfers out
Net income (loss) 147,953
Retained Earnings,
beginning of Year 1,492,624
Retained Earnings,
end of Year $ 1,640,577 $
Risk
Manage-
ment
Fund
$ 322,216
1,483,778 322,216
109,479 393,291
1,699,055 215,826
1,808,534 609,117
(324,756) (286,901)
1,320 38,555
1,320 38,555
(323,436)
360,000
(31,668)
4,896
(248,346)
320,000
(116,388)
(44,734
25,670 694,740
30,566 $ 650,006
Cash and
Debt
Manage-
ment Fund
$
59,300
59,300
59,300
59,300
Total
1998 1997
$ 1,805,994
475,872
2,281,866
562,070
1,914,881
286,120
2,763,071
(481,205)
57,376
57,376
(423,829)
680,000
(148,056)
108,115
2,213,034
$ - $ 2,321,149
$ 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
2,087,468
$ 2,213,034
65
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1997
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Management Total
Fund Fund Fund Fund 1998 199i
OPERATING ACTIVITIES
Operating income (loss) $ 130,452 $ (324,756) $ (286,901) $ - $ (481,205) $ (206,371)
Adjustments to reconcile operating
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation expense 286,120 286,120 222,639
Increase (decrease) in
receivables (13,644) (5,789) (19,433) 1,295
Increase (decrease) in due
from other govemments 20,561 20,561 (20,561)
Increase (decrease) in
accounts payable (26,716) 27,079 (6,917) (595) (7,149) 49,940
Increase in
accrued salary and wages 21,056 430 636 22,122
Increase in
accrued insurance claims 25,000 25,000
Total adjustments 279,965 34,491 12,724 41 327,221 253,313
Net cash provided by (used in)
operating activities 410,417 (290,265) (274,177) 41 (153,984) 46,942
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in 360,000 320,000 680,000 420,000
Operating transfers out (31,668) (116,388) (148,056) (148,056)
Net cash provided by (used in)
noncapital financing activities 328,332 203,612 531,944 271,944
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment (343,931) (343,931) (377,908)
Sale of equipment 25,839
Net cash used in capital and
related financing activities (343,931) (343,931) (352,069)
INVESTING ACTIVITIES
Interest received on
investments 9,393 1,320 38,555 49,268 48,014
Net increase (decrease) in
cash and cash equivalents 75,879 39,387 (32,010) 41 83,297 14,831
Cash and cash equivalents,
beginning of year 448,976 131,378 709,156 595 1,290,105 1,275,274
Cash and cash equivalents,
end of year $ 524,855 $ 170,765 $ 677,146 $ 636 $ 1,373,402 $ 1,290,105
66
AGENCY FUNDS
Agency funds are used to account for assets held by the government as an agent for
individuals, private organizations, other governments and/or other funds.
Deferred Compensation - to account for assets held for employees in
accordance with the provisions of Internal Revenue Code Section 457.
DEA Task Force - to account for assets and liabilities received from the DEA
task force that are to be distributed to other participating entities.
CITY OF EULESS, TEXAS
AGENCY FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1998
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997
Deferred DEA
Compensation Task
Agency Force Total
Fund Fund 1998 1997
Assets:
Deposits and investments $ 3,573,905 $ 238,738 $ 3,812,643 $ 3,364,798
Total assets $ 3,573,905 $ 238,738 $ 3,812,643 $ 3,364,798
Liabilities:
Deferred compensation
benefits payable $ 3,573,905 $ $ 3,573,905 $ 3,327,191
Due to other
governments 238,738 238,738 37,607
Total liabilities $ 3,573,905 $ 238,738 $ 3,812,643 $ 3,364,798
67
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 1998
Balance Balance
September 30, September 30,
1997 Additions Deletions 1998
DEFERRED COMPENSATION:
Assets:
Investments at market $ 3,327,191 $ 503,562 $ 256,848 $ 3,573,905
Liabilities:
Deferred compensation
benefits payable
DEA TASK FORCE FUND:
$ 3,327,191 $ 503,562 $ 256,848 $ 3,573,905
Assets:
Deposits and investments $ 37,607 $ 201,131 $ $ 238,738
Liabilities:
Due to other
governments $ 37,607 $ 201,131 $ $ 238,738
68
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not used in proprietary fund operations.
CITY OF EULESS, TEXAS
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 1998 AND 1997
1998 1997
General fixed assets:
Land $ 3,826,944 $ 3,824,559 •
Buildings 8,795,947 8,795,947
Improvements other than buildings 4,162,919 3,905,306
Construction in progress 1,131,114 -
Machinery and equipment 6,626,921 5,696,225
Total general fixed assets $ 24,543,845 $ 22,222,037
Investment in general fixed assets by source:
General fund $ 6,956,797 $ 6,390,701
Special revenue funds 6,091,879 5,816,759
Capital projects funds 11,495,169 10,014,577
Total investment in general fixed assets
$ 24,543,845 $ 22,222,037
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1998
Function
and Activity
General government
Public safety
Culture and recreation
Highways and streets
Construction -in -progress
Land
$ 3,027,451
234,325
565,168
Total General Fixed Assets $ 3,826,944
Buildings
$ 2,422,165
1,315,968
5,057,814
1,131,114
$ 9,927,061
Improvements
Other than
Buildings
$ 2,443,314
36,758
1,682,847
Machinery
and
Equipment
$ 2,274,590
3,357,450
668,924
325,957
$ 4,162,919 $ 6,626,921
Total
$ 10,167,520
4,944,501
7,974,753
325,957
1,131,114
$ 24,543,845
70
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1998
General Fixed General Fixed
Assets Assets
Function September 30, Additions September 30,
and Activity 1997 and Transfers Deletions 1998
General government $ 8,274,624 $ 1,892,896 $ $ 10,167,520
Public safety 4,394,906 549,595 4,944,501
Culture and recreation 7,974,753 7,974,753
Highways and streets 325,957 325,957
Construction -in -progress 1,251,797 (120,683) 1,131,114
$ 22,222,037 $ 2,321,808 $ $ 24,543,845
71
`
,
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C-TIOtA
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5-T NOT Is Ited)
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 1
General
Fiscal Govem- Public Culture- Debt
Year ment Safety Streets Recreation Service Other Total
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
1998 2,951,730 9,028,711 699,140 1,995,717 2,002,940 876,549 17,554,787
Note: Includes General Fund and Debt Service Fund.
72
CITY OF EULESS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Unaudited)
Table 2
Interest
Licenses Inter- Charges Income
Fiscal and govem- for Fines and Other
Year Taxes Permits mental Service and Fees Revenues Total
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
1998 13,187,156 396,811 258,663 93,175 2,671,187 1,262,289 17,869,281
Note: Includes General Fund and Debt Service Fund.
73
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
1989 $ 4,975,719 $ 4,926,213 99.01 % $ 165,469 $ 5,091,682 102.33% $ 331,891 6.67%
1990 5,162,838 5,150,783 99.77% 175,439 5,326,222 103.16% 329,745 6.39%
1991 5,717,223 5,586,764 97.72% 106,503 5,693,267 99.58% 349,226 6.11%
1992 5,889,411 5,765,733 97.90% 147,498 5,913,231 100.40% 577,695 9.81%
1993 5,943,537 5,880,688 98.94% 73,853 5,954,541 100.19% 239,370 4.03%
1994 6,259,282 5,874,486 93.85% 38,770 5,913,256 94.47% 355,032 5.67%
1995 6,113,427 6,037,510 98.76% 96,556 6,134,066 100.34% 334,393 5.47%
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%
1998 6,235,640 6,123,906 98.21% 86,667 6,210,573 99.60% 392,589 6.30%
Source: Tarrant County Tax Assessor/Collector
74
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
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
1998 1, 093, 894, 921 1, 093, 894, 921 182, 729, 883 182, 729, 883
Source: Tarrant Appraisal District
75
Table 4
Ratio of
Total
Assessed
Total to
Estimated
Assessed Actual Actual
Value Value Value
$ 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%
1,276,624,804 1,276,624,804 100%
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 Cityfl School (2) County_a_ Hospital (3_1 College (3) Total
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%
1998 0.5247540% 1.6063% 0.264836% 0.234070% 0.106400% 2.7363170%
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
77
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
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 13,366,586 1.18% 327
1997 41,300 1,195,670,856 12,026,586 1.01% 291
1998 42,900 1,276,624,804 16,081,586 1.26% 375
(1) Estimates by North Central Texas Council of Governments as of
January 1, 1998.
(2) Tarrant Appraisal District
(3) Includes General Obligation Bonds and Certificates of Obligation.
78
CITY OF EULESS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 1998
(Unaudited)
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $16,081,586 100.00% $16,081,586
Grapevine-Colleyville Independent
School District 129,103,266 2.12% 2,736,989
Hurst -Euless -Bedford Independent
School District 254,623,405 26.79% 68,213,610
Tarrant County 122,203,258 2.72% 3,323,929
Tarrant County Hospital County 42,591,000 2.72% 1,158,475
Tarrant County Junior College District 94,407,788 2.72% 2,567,892
Total direct and overlapping debt $94,082,481
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation 7.37%
Per capita direct and overlapping
bonded debt $2,193
79
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
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 17, 842, 060 12.02%
1998 1,445,000 557,940 2,002,940 17,554,787 11.41%
80
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
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
1998 11,830,802 9,780,792 2,050,010 395,000 128,040 523,040 3.92
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.
81
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
DRAINAGE UTILITY BONDS
LAST SIX 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
1998 611,585 87,641 523,944 100,000 124,082 224,082 2.34
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.
82
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)
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%
1998 42,900 22,962 19,500 2.4%
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 Workforce Commission
83
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1998
(Unaudited)
Table 12
Percentage
1997 of Total
Type of Assessed Assessed
Taxpayer Business Valuation Valuation
Southwestern Bell Telephone Company Telephone Utility $ 43,384,376 3.40%
Bear Creek Apartments, Inc. Apartments 29,522,059 2.31%
Southwest Properties Apartments 22,062,773 1.73%
Somerset Village Partners, LP Apartments 20,181,995 1.58%
TU Electric Electric Utility 17,556,614 1.38%
Western Rim Investors Land 16,517,351 1.29%
800 East Ash Lane, Inc. Apartments 13,635,000 1.07%
The Bear Creek Apartments Apartments 12,000,000 0.94%
Bear Creek Norstar USA Apartments 11,637,975 0.91%
Home Depot USA, Inc. Retail 10,973,099 0.86%
$ 197,471,242 15.47%
84
CITY OF EULESS, TEXAS
PROPERTY VALUE AND CONSTRUCTION
LAST TEN FISCAL YEARS
(Unaudited)
Table 13
Construction (1)
Property Number
Fiscal Value of
Year (2) Permits Value
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
1998 1,440,732,524 293 1,586,997
Notes: 1. City Records
2. Tarrant Appraisal District
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 1998
(Unaudited)
Article XI, Section 5 of the State of Texas Constitution states in part:
Table 14
"... 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 1998 was established at $.524754 per $100 of assessed
valuation on 100% of appraised value.
86
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1998
(Unaudited)
Table 15
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 340
Fire protection:
Number of stations
Number of certified firefighters
Police protection:
Number of stations
Number of certified officers
3
57
1
80
Parks and recreation:
Number of swimming pools 3
Number of parks 14
Area of parks 605 acres
Community buildings 3
Ampitheater 2
Conference center 1
Golf course 1
Athletic fields 24
Library holdings:
Books 67,910
Videos 3,325
Compact discs 1,279
Other media 2,146
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
87
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1998
(Unaudited)
Table 15
City Water and Sewer service:
Water Service:
Number of Customers 20,352
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 16,160,000
Average daily consumption 7,191,627
Water mains 157 miles
Fire hydrants 1,160
Sewer Service:
Average daily flow of wastewater 3,600,343
Number of customers 19,869
Sewer mains 133 miles
Streets:
Improved 157 miles
State highways 17.2 miles
88
*
a,,A