HomeMy WebLinkAboutFY 1999 Comprehensive Annual Financial ReportCity of Euless, Texas
Comprehensive Annual
Financial Report
Fiscal Year Ending
September 30, 1999
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
(817) 685-1452
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Soaring to new heights!
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1999
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page(s)
Letter of transmittal i-viii
City officials ix
GFOA certificate of achievement x
Organizational chart xi
FINANCIAL SECTION
Independent Auditor's Report
General Purpose Financial Statements
Combined balance sheet - all fund types and account groups
1
3-6
Combined statement of revenues, expenditures
and changes in fund balances - all govemmental fund types 7 - 8
Combined statement of revenues, expenditures
and changes in fund balances - budget and
actual - general and special revenue funds
9-10
Combined statement of revenues, expenses and
changes in retained earnings - all proprietary fund types 11
Combined statement of cash flows - all proprietary fund types 12 - 13
Notes to general purpose financial statements 14 - 32
Required Supplementary Information:
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 33
Individual Fund and Account Group Statements and Schedules
Special Revenue Funds
Combining balance sheet 34
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1999
TABLE OF CONTENTS - continued
Individual Fund and Account Group Statements and Schedules - continued
Combining statement of revenues,
expenditures and changes in fund balances
Page(s)
35
Statement of revenues, expenditures and
changes in fund balances - budget and actual 36 - 38
Capital Project Funds
Combining balance sheet 39 - 40
Combining statement of revenues,
expenditures and changes in fund balances 41 - 42
Enterprise Funds
Combining balance sheet 43 - 46
Combining statement of revenues, expenses
and changes in retained earnings 47 - 48
Combining statement of cash flows 49 - 50
Water and sewer fund --comparative balance sheets 51 - 52
Water and sewer fund --comparative statements
of revenues, expenses, and changes in retained earnings 53
Water and sewer fund --comparative schedule of operating expenses 54 - 55
Water and sewer fund --comparative statements of cash flows 56
Water and sewer fund --aggregating schedule of balance sheet accounts 57 - 60
Water and sewer fund --aggregating schedule of revenues,
expenses and changes in retained earnings accounts 61 - 62
Drainage utility funds --aggregating
schedule of balance sheet accounts 63
Drainage utility funds --aggregating
schedule of revenues, expenses and
changes in retained earnings accounts
64
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1999
TABLE OF CONTENTS - Continued
Page(s)
Individual Fund and Account Group Statements and Schedules - continued
Internal Service Funds
Combining balance sheet 65
Combining statement of revenues, expenses
and changes in retained earnings 66
Combining statement of cash flows 67
Agency Funds
Combining balance sheet 68
Statements of changes in assets and liabilities 69
General Fixed Assets Account Group
Comparative schedule of general fixed assets - by source 70
Schedule of general fixed assets by function and activity 71
Schedule of changes in general fixed assets by function and activity 72
Table Page(s)
STATISTICAL SECTION (Unaudited)
General govemmental expenditures by function 1 73
General govemmental revenues by source 2 74
Property tax levies and collections 3 75
Assessed and estimated actual value of taxable property 4 76
Property tax rates - all direct and overlapping
govemments per $100 of assessed value 5 77
Ratio of net general bonded debt to assessed
value and net bonded debt per capita 6 78
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1999
TABLE OF CONTENTS - Continued
Table Page(s)
STATISTICAL SECTION (Unaudited) - continued
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
INTRODUCTORY SECTION
T H E CITY O F
EULESS
January 17, 2000
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, 1999. 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 44,700. 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 817/267-4403 • Fax 817/685-1416
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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 1999 was a tremendous year for the City of
Euless. He noted the list of achievements from the different departments including the
conversion of our seventeen-year old computer system, the announcement of plans to
add the Dr Pepper Stars Center to our Texas Star Sports Centre, completion of
Westpark Way and S.H. 157 and the demolition of Western Hills Inn which will be the
site of the new police facility.
Euless continues to seek new development and redevelopment opportunities. During
the past few years, Euless has realized new commercial, industrial, residential, and
multi -family developments. This year has again been another positive year for Euless
as the City focussed on bringing quality, sustainable development to the newly created
121 Gateway District, the Villages of Bear Creek and the Highway 10 corridor. We
expect next year will bring even more retail, office projects, warehouses and light
industrial, and restaurants. The completion and opening of a consolidated car rental
facility in Euless at the Dallas/Fort Worth International Airport will also bring great
economic benefit to the City.
Efforts to develop the property along the Highway 10 corridor have been especially
successful this year. This corridor is a gateway to the City and is now the home of a
new Kentucky Fried Chicken, three new office/commercial buildings, the recently rebuilt
and reopened Smoke -It Barbecue, and a newly constructed office and warehouse
facility for longtime Euless business R&G Mobile Home Supply. In addition, ten new
small commercial lots have been platted west of Westpark Way.
In other parts of the City, large expansions have been completed on the First Baptist
Church of Euless and on Sheppard Drive Baptist Church. Albertson's corporation
opened its first Albertson's Express in Euless this year. Many new upscale apartments
were completed in the Villages of Bear Creek and several new single family residential
subdivisions were developed. Finally, a nationally recognized Heath Sign Company
moved to Euless, bringing in many new jobs.
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MAJOR INITIATIVES
Budget. During preparation of the 1999 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: continuation of current services; continuation of a competitive employee pay
plan; maintain the tax rate; 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 1999 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
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 1999:
I> Several departments participated in successfully converting the City's finance
and administrative computer system to be Y2K compliant.
I> Police Department successfully implemented the CRIMES computer system.
\ Parks at Texas Star hosted the Dixie Pre -Majors World Series with participants
from twelve states.
• Texas Star was named in the Top 40 Golf Courses in Texas by Texas Golf
Ia,- Euless Public Library implemented ten computer stations with Internet access
for public usage.
R, Fire department acquired and placed into service a new Mobile Intensive Care
Unit.
• The Dr Pepper StarCenter announced its plans to open a new ice rink facility at
the Texas Star Sports Centre.
• Arbor Daze won three awards from the Texas festival and Events Association.
R=- Twenty-four Euless residents graduated from the Euless Citizens Police
Academy.
• Planning and Development was selected to receive the 1999 "Excellence in
Planning Award" from the Texas Chapter of the American Planning
Association.
• Arbor Daze was selected as the eighth largest event in Tarrant County (The
Fort Worth Business Press)
& Fire Department received a commendation from the State of Texas Division of
Emergency Management for the city's Emergency Operation Plan.
iii
FINANCIAL INFORMATION
General. Management of the City is responsible for establishing and maintaining an
internal control structure designed to ensure that the City's assets are protected from
loss, theft or misuse and to ensure that adequate accounting data are compiled to allow
for the preparation of financial statements in conformity with generally accepted
accounting principles. The internal control structure is designed to provide reasonable,
but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the evaluation of costs and benefits requires estimates and
judgments by management.
The City's accounting records for the Enterprise and Internal Service Funds are
maintained on an accrual basis whereby revenues and expenses are recorded in the
accounting period in which they are earned or incurred. The remainder of the City's
funds are maintained on the modified accrual basis whereby revenue is recorded when
measurable and available, and expenditures are recorded when the liability is incurred,
except for interest on general long-term debt, which is recognized when due.
As set forth in the City's Charter Article VII, Sections 2-9, the City Council adopts an
annual budget. Detail control is accomplished by maintaining expenditures by line item
account within each operating department within each operating fund at the
authorization of the City Manager. Financial reports are available to division managers
monthly. Further explanations of the basis of accounting for all fund types, account
groups, and the City's budgetary controls are furnished in the accompanying Notes to
the Financial Statements.
General Governmental Functions. Revenues for general governmental functions
accounted for in the general fund and general debt service fund totaled $18,838,160 in
1999, an increase of 5.4% over 1998. The increase in revenues is primarily attributable
to increased activity in Municipal Court, 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
Amount Of Total
$6,799,379
$2,309,192
$4,793,278
$3,349,742
$448,751
$365,027
$772,791
$18,838,160
36.09%
12.26%
25.45%
17.78%
2.38%
1.94%
4.10%
100%
Increase
Percent (decrease)
from 1998
$526,517
$170,569
($75,568)
$678,555
$51,940
($83,957)
($299,177)
$968,879
Percent of
Increase
(decrease)
8.39%
7.97%
(1.55%)
25.40%
13.09%
(18.70%)
27.91%
iv
In addition to the above general revenue, $1,189,913 was transferred from various
funds, primarily Enterprise funds for general and administrative cost reimbursement. An
additional $490,946 was transferred to cover the cost of fixed assets that were funded
by multiple sources.
Expenditures for general governmental purposes and general debt service totaled
$19,658,849, an increase of 11.98% over 1998. 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
Amount
$3,112,014
$9,455,787
$815,687
$2,060,029
$2,319,044
$1,896,288
Percent
Of Total
15.83%
48.10%
4.15%
10.48%
11.79%
9.65%
Increase Percent of
(decrease) Increase
from 1998 (decrease)
$160,284 5.43%
$427,076 4.73%
$116,547 16.67%
$64,312 3.22%
$316,104 15.78
$441,458 30.34%
$19,658,849 100% $1.525,781
Non -departmental expenditures increased primarily due to expenditure for nonrecurring
capital items, including a finance and administrative computer system, an ambulance,
Revenues
(36.1 %) Property Tax
(2.4%) Lic. & Permits
(25.5%) Gen. Sales Tax
Expenditures
(48,1 %) Public Safety
(12.3%) Gross Receipts Tax
(4.1%) Intergov/Other
(1.9%) Interest Inc.
(17.8%) Fines/Fees
(15.8%) Gen. Gov.
(9.7%) Nondept.
(4.2%) Streets (11.8%) Debt Service
(10.5%) Parks/Rec/Lib
radios, and citywide building purchases and remodeling projects. Debt service
expenditures increased due to payment on certificates of obligations issued in FY97.
Parks, Recreation, Library, and Public Safety increased due primarily to increased
personnel costs.
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.
1999 1998
Income before operating transfers $1,488,663 $1,079,885
Net revenue available for debt service $2,620,389 $2,050,010
Average annual debt service requirements $335,033 $358,120
Coverage 7.82 times 5.72 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 FY99, $587,710 of revenue was generated and $195,397
of costs was incurred, excluding depreciation, amortization and debt service cost related
to capital improvements. Capital improvements were initiated in FY92 relating to the
Drainage Utility System and continue through FY99.
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 $230,489 was generated, while class expenses were
$211,346. Both experienced a decrease 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 $995,090 was collected
for league fees, concession sales, and sale of sporting goods. Expenses were
$808,399 with operating income prior to transfers of $186,691.
The Golf Course Fund and Athletic Complex were established as enterprise funds in
1996. The golf course revenues were $3,534,634 with operating expenses of
$3,000,874. Net income after debt service and operating transfers is $151,162. The
Athletic Complex opened in December and ended the year with an operating loss of
$191,756 including depreciation of $186,121.
Debt Administration. General obligation debt, which is directly tax supported,
totaled $4,026,586 at September 30, 1999. 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 - $14,651,586; ratio of net bonded debt to assessed
value is 1.05% and net bonded debt per capita is $328. Outstanding certificates of
obligation at September 30, 1999, totaling $10,625,000 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 $9,090,000 as
of September 30, 1999.
vi
Outstanding revenue bonds, which are secured by the net revenues of the various
Enterprise Funds, totaled $3,535,000 at September 30, 1999. Outstanding certificates
of obligation, which are secured by the tax base and revenues of the various Enterprise
Funds totaled $11,490,000.
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 A2 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 $1,451,772. Interest is an important non -tax
revenue for the City. Throughout 1999, 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, 1999, the general fixed
assets of the City amounted to $26,542,477. This amount represents the original cost
of the assets and is considerably less than their replacement value. Depreciation of
general fixed assets is not recognized in the City's accounting system.
OTHER INFORMATION
Independent Audit. The City Charter, per Article VII Section 11, requires an
annual audit to be made of the books of account, financial records and transactions of
all administrative departments of the City by a certified public accounting firm. This
requirement has been complied with and the report of independent auditors has been
included in this report.
Award. The Government Finance Officers Association of the United States and
Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City for its comprehensive annual financial report for the fiscal year
ended September 30, 1998. 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
vii
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,
Loretta Getchell, CPA
Director of Finance
viii
CITY OFFICIALS
MARY LIB SALEH, MAYOR
CARL TYSON, COUNCIL MEMBER PLACE ONE
LEON HOGG, COUNCIL MEMBER PLACE TWO
BOBBY BAKER, COUNCIL MEMBER PLACE THREE
CHARLES MILLER, COUNCIL MEMBER PLACE FOUR
AND MAYOR PRO TEM
GLENN PORTERFIELD, COUNCIL MEMBER PLACE FIVE
KATIE EDWARDS, COUNCIL MEMBER PLACE SIX
JOE HENNIG, CITY MANAGER
Gary McKamie Loretta Getchell, CPA
Deputy City Manager Director of Finance
ix
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, 1998.
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 govemment 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, 1998
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
#A
Executive Director
x
nnig, Ci
anuary, 2000
BOB MCFARLAND
City Attorney
RANDY
BYERS
Dir. of
Public Works
Streets
Water
Wastewater
Animal Control
Meter Reading
Engineering
Const. Inspection
CIP Management
Traffic Safety
Drainage
r
RICK HEROLD
Dir. of Parks
Community Svcs.
Parks
Green House
Recreation
Texas Star
Sports Complex
Athletic Complex
Golf Course
Conference Centre
Softball World
SUSAN CRIM
City Secretary
LEONARD
CARMACK
Police Chief
imminsmeminsi
Patrol
Criminal Invest.
Services:
Communications
Community Svcs.
Jail
Records
MAYOR
and
COUNCIL
JOE HENNIG
City Manager
GARY MCKAMIE
Deputy City Manager
111 1„ 111111111111 111111// 1,11',IJIY
TOM COX
Dir. of
Support Svcs.
1111111111611,1111111111.1 Y11111111W111,111111116i
Fleet Services
Facility Maint.
Library
Human Resources
Risk/Benefits
Info. Services
Purchasing
Recycling
Franchises
LORETTA
GETCHELL
Dir. of Finance
Accounting
Utility Billing
Budget
Municipal Court
Cash Debt. Mgmt.
Organizational Chart
LACY BRITTEN
Municipal Court Judge
LEE KOONTZ
Fire Chief
1
Suppression
Ambulance
Fire Educ. & Prevent.
Fire Marshall
Emergency Mgmt.
Municipal Court
of Record
BO BASS
Dir. of Planning
Development
11111In1111111111111 1111 111111 11111 11...
Planning
Code Enforcement
Env. Health
Building
Inspections
ANDREA
BAXTER
Dir. Economic
Development
1 1/1111111 11II I1111111.II 11111111 11111
JENNY KRATZ
Communications/
Marketing Mgr.
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Soaring to new heights!
FINANCIAL SECTION
WEAVER
TIDWELL
L. L. P.
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
307 II%.rt Severuh Street
Smile 1500
Fort IY%rib, Texas 76102
817.332.7905
F 817.429.5936
DALLAS
Three Forest Plaza
12221 Merit Drive
Salle 1700
Dallas, Texas 75251
Park Central V11
12750 Merit Drive
Salle 1210
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, 1999, 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 and the standards applicable to financial audits contained in
Govemment Auditing Standards, issued by the Comptroller General of the
United States. 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, 1999, 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.
In accordance with Govemment Auditing Standards, we have also issued our
report dated December 29, 1999 on our consideration of the City of Euless'
internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grants.
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
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
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.
The required supplementary information listed in the table of contents is not a
required part of the general purpose financial statements but is supplementary
information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries
of management regarding the completeness and accuracy of the supplementary
information. However, we did not audit the information and express no opinion
on it.
GcJ.� - , 'a e
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
December 29, 1999
3357
2
GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
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
$ 4,672,733
294,303
256,172
109,266
328,737
14,427
12,925
$ 5,688,563
Govemmental Fund Types
Special Debt
Revenue Service
Funds Fund
Capital
Projects
Funds
$ 3,209,420 $ 195,654 $ 7,130,893
99,685
18,982 -
16,833
184,990
4,318
54,837
24,400
$ 3,434,543 $ 295,339 $ 7,210,130
The Notes to the General Purpose Financial Statements are an integral part of this statement.
3
206,372
697,294
57,778
168,038
2,333,860
37,397,234
224,851
(1 of 2)
Proprietary Fiduciary Totals
Fund Types Fund Types Account Grou s (Memorandum only)
Internal General �eneral
Enterprise Service Agency Fixed Long-term
Funds Funds Funds Assets Debt 1999 1998
$ 8,544,956 $ 1,544,142 $ 25,491 $ $ $ 25,323,289 $28,401,159
1,836,616 27,117
11,658
1,242,801
26,542,447
1,109,693
393,988 392,589
2,138,887 1,931,937
59,772
398,966 315,573
721,694 1,040,534
513,727 627,680
76,523 301,598
180,963 169,192
2,333,860 3,384,775
26,542,447 24,971,339
38,640,035 39,418,658
224,851 247,502
1,109,693 1,144,652
25,539,955 25,539,955 27,262,513
$ 51,466,999 $ 2,825,718 $ 25,491 $ 26,542,447 $ 26,649,648 $ 124,138,878 $129,669,473
4
CITY OF EULESS, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
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 eamings:
Reserved for:
Debt service and construction
Insurance
Workers' compensation
Risk management
Computer
Emergency
Recycling
Outstanding work
Unreserved
Fund balances:
Reserved for:
Debt service
Computer
Park improvements
Recycling
Development agreements
Prepaids
Betterment
Campus remodel
Library
Injured animals
Historical Preservation
Unreserved:
Designated for:
Contingency
Emergency
Undesignated
Total fund equity and other credits
Total liabilities, fund equity and other credits
General
Fund
Govemmental Fund Types
Special Debt
Revenue Service
Funds Fund
$ 710,505 $ 124,453 $
342,584
374,757
1,427,846
4,606
3,184
14,427
26,835
27,039
3,050
906
500,000
500,000
3,180,670
4,260,717
$ 5,688,563
14,439
31,729
170,621
910,588
1,323
2,352,011
3,263,922
$ 3,434,543
96,234
96,234
199,105
199,105
Capital
Projects
Funds
$ 181,983
15,333
197,316
1,202,910
5,809,904
7,012,814
$ 295,339 $ 7,210,130
The Notes to the General Purpose Financial Statements are an integral part of this statement.
5
Proprietary
Fund Types
Internal
Fiduciary
Fund Type
Enterprise Seivi,e Agency
Funds Funds Funds
$ 577,805 $ 21,303 $
127,653
197,652 23,625
1,151,802 77,823
689,965
15,415,000
40,981
128,204
18,279,232 172,581
13,834,512
25,491
25,491
Account Groups
General General
Fixed Long-term
Assets Debt
26,542,447
(2 of 2)
Totals
(Memorandum only)
1999 1998
$ 1,616,049 $1,551,848
127,653 95,000
578,300 403,856
1,167,135 1,203,901
77,823 86,460
721,694 1,040,534
23,741,586 39,156,586 41,731,586
258,642 299,623 393,114
1,648,908 1,648,908 1,450,256
599,195 615,468
1,000,512 1,000,512 1,047,209
3,573,905
25,491 238,738
26,649,648 47,018,969 53,431,1M
26,542,447 24,971,339
13,834,512 14,255,843
49,472 - - - 49,472 447,034
- 41,000 - 41,000 30,566
200,000 - 200,000 200,000
200,000 200,000 200,000
- - - - 225,000
500,000 - 500,000 500,000
31,311 31,311 31,311
39,405 - - 39,405 39,405
18,733,067 2,212,137 20,945,204 19,031,558
1,109,693 1,144,652
125,000
4,606 4,606
3,184 3,184
1,202,910 1,232,860
14,427 30,242
26,835 25,505
27,039
3,050 2,010
906 -
1,323
500,000 500,000
500,000 500,000
11,342,585 12,737,483
33,187,767 2,653,137 26,542,447 77,119,909 76,237,598
$ 51,466,999 $ 2,825,718 $ 25,491 $ 26,542,447 $ 26,649,648 $ 124,138,878 $129,669,473
6
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
Special
General Revenue
Fund Funds
Revenues:
General property tax $ 4,509,370 $
Gross receipts tax 2,309,192 288,975
General sales tax 4,793,278 2,832,121
Fines and fees 3,349,742
Licenses and permits 448,751 -
Interest income 351,965 123,403
DEA revenues - 125,714
Intergovernmental 557,246 -
Other revenues 215,545 228,843
Total revenues 16,535,089 3,599,056
Expenditures:
Current:
City council/administrative 395,708
Finance/Purchasing 682,305 -
Police department 5,767,560 396,983
Fire department 3,688,227 -
Administrative services 621,067
Planning and development/Engineering/Animal Control 914,099
General and administrative - 75,002
Parks/recreation/library 2,060,029 643,072
Street maintenance 815,687 -
Economic development 110,354
Betterment 21,895 -
Staff services 496,935
Nondepartmental 1,874,393
Debt service:
Principal 345,000
Interest and fiscal charges 565,588
Issuance costs -
Capital outlay and maintenance - 130,139
Total expenditures 17,337,905 2,266,138
Excess (deficiency) of revenues over expenditures (802,816) 1,332,918
Other financing sources (uses)
Net proceeds from issuance of sales tax revenue bonds -
Operating transfers in 1,189,913 42,973
Operating transfers out (303,692) (961,626)
Total other financing sources (uses) 886,221 (918,653)
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses 83,405 414,265
Fund balances, beginning of year 4,177,312 2,849,657
Fund balances, end of year $ 4,260,717 $ 3,263,922
The Notes to the General Purpose Financial Statements are an integral part of this statement.
7
Debt Capital Totals
Service Projects (Memorandum Only)
Fund Funds 1999 1998
$ 2,290,009 $ $ 6,799,379 $ 6,272,862
2,598,167 2,471,618
7,625,399 7,738,436
3,349,742 2,978,726
- 448,751 396,811
13,062 390,088 878,518 908,632
- - 125,714 96,023
- 557,246 1,828,454
- 2,738 447,126 381,112
2,303,071 392,826 22, 830, 042 23, 072, 674
395,708 384,162
682,305 627,000
6,164, 543 5,985,420
3,688,227 3,494,053
621,067 583,356
914,099 860,537
1,900 76,902 174,394
135,677 2,838,778 2,809,075
815,687 699,140
1,453 111,807 220,515
21,895 21,616
496,935 496,675
1,874,393 1,433,214
1,430,000 1,775,000 1,780,000
889,044 1,454,632 1,150, 612
56,800
2,939,477 3,069,616 4,535,219
2,320,944 3,076,607 25, 001, 594 25, 311, 788
(17,873) (2,683,781) (2,171,552) (2,239,114)
5,500,000
635,000 1,867,886 1,929,126
(1,265,318) (1,712,273)
635,000 602,568 5,716,853
(17, 873) (2,048,781) (1,568,984) 3,477,739
216,978 9,061,595 16, 305, 542 12, 827, 803
$ 199,105 $ 7,012,814 $ 14,736,558 $ 16,305,542
8
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL AND BUDGETED SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 1999
General property tax:
Current and delinquent
taxes
Per' tty 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
Jail Income
Dog licenses and pound
fees
Ambulance fees
Library fees
Zoning fees
Deferred adjudication fee
Licenses and permits:
Building permits
Miscellaneous permits
Electric licenses
Interest income
Intergovernmental
DEA funds
Other revenues:
Rental income
Swimming pools
Miscellaneous income
Total revenues
Actual
$ 4,477,397
31,973
4,509,3/0
459,542
1,367,684
98,779
194,558
101,705
86,924
2,309,192
4,793,278
612,207
2,111,991
164,191
12,068
204,380
34,831
18,631
191 443
3,349 /42
218,944
201,360
28,447
448,/51
351,965
557,246
65,273
14,747
135 525
2 5, +y
16.535, 8y
General Fund
Budget
$ 4,408,007
30,000
4,438,007
452,444
1,283,903
140,000
160,000
96,600
85,376
2,218,323
5,125,000
547,385
1,849,100
220,000
16,000
205,000
32,000
15,000
110,988
2,995,473
175,000
191,100
34,000
4ol oo
375,000
571,730
Variance
favurdLte
(Unfavorable)
$ 69,390 $
1,973
71,383
65,000
15,000
122,500
202,500
$ 15,325,133 $
7,098
Actual
Budgeted Special Revenue Funds
Variance
favuraLla
Budget (Unfavorable)
83,781
(41,221)
34,558
5,105 -
1,548 288,975
90,869 288,975
(331,722) 2,832,121
64,822
262,891
(55,809)
(3,932)
(620)
2,831
3,631
80,455
354,269
43,944
10,260
(5,553)
48,651
(23,035) 105,371
(14,484)
273
(253) -
13,025 228,843
13,045 228 843
208,956 $ 3,455,310
$
(1 of 2)
375,000
375,000
3,020,000
83,300
$
86,025
(86,025)-
(187,879)
22,071
113,808 115,035
113,605 -iiS,t333-
-'$ :,oy2,1118 -$ (135, /98)-
The Notes to the General Purpose Financial Statements are an integral part of this statement.
9
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL AND BUDGETED SPECIAL REVENUE FUNDS
YEAR ENDED SEPTEMBER 30, 1999
Expenditures:
Current:
City council/administration
Finance/Purchasing
Police department
Fire department
Administrative services
Planning and development/
Engineering/Animal Control
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
Actual
$ 395,708
682,305
5,767,560
3,688,227
621,067
914,099
2,060,029
815,687
21,895
496,935
1,874,393
1 i,3'Jr,9Ua
(802,816)
1,189,913
(303,692)
886,221
83,405
4,177,312
$ 4,215U,/1 /
General Fund
Variance
iavuratile
Budget (Unfavorable)
$ 406,909
689,275
6,043,833
3,755,932
604,623
925,126
Actual
(2 of 2)
Budgeted Special Revenue Funds
Variance
Favuratte
Budget (Unfavorable)
$ 11,201 $
6,970 -
276,273 378,658
67,705
(16,444)
11,027 -
- 75,002
2,086,144 26,115 643,072
712,011 (103,676) 110,354
22,000 105 -
515,827 18,892
1,598,453 (275,940)
1 /,:i6U,133
(1,034,000)
630,044
(285,000)
345,044
(688,956)
4,177,312
$ J,4UU,356
22,22U
231,184
345,000
565,588
86,120
2,2UJ, / 94
1,251,516
$
702,120
367,864
777,573
168,282
603,904
565,588
117,656
_
3727587_
289,121
559,869 42,973 18,692
(18,692) (937,345) (912,345)
541,177 (894,372)- _ (893,653)-
772,361
$ / /2,3b1
357,144
2,463,827
2,U2U,9/1
$
323,462
292,862
134,501
57,928
258,904
31,536
1,099,193
962,395
24,281
(25,000).
(719)
(604,532) 961,676
2,463,827
1,659,29$ $ 961,6/6
The Notes to the General Purpose Financial Statements are an integral part of this statement.
10
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
Internal Totals
Enterprise Service Memorandum Onjy)
Funds Funds 19W 1y98
Operating revenues:
Water service $ 7,034,082 $ $ 7,034,082 $ 7,125,669
Sewer service 3,568,056 3,568,056 3,544,244
Drainage fees 587,710 587,710 576,662
Recreation fees 230,489 - 230,489 243,884
Insurance premiums - 1,794,264 1,794,264 1,805,994
Service fees and miscellaneous 6 117,475 534,040 6,651,515 5,649,136
Total operating revenues 1 /,537,812 2,328,304 19,866,116 18,945,589
Operating expenses:
General and administrative 640,413 547,921 1,188,334 1,139,295
Water production 3,214,048 3,214,048 3,340,590
Water distribution 446,715 446,715 459,664
Utility engineering 272,438 272,438 173,753
Sewage collection and treatment 1,763,864 - 1,763,864 1,754,800
Nondepartmental 2,123,422 2,123,422 2,473,991
Geographic Info 167,287 167,287 188,798
Service center 660,435 - 660,435 652,720
Drainage 195,397 195,397 87,641
Recreation classes 211,071 211,071 234,206
Golf course 961,869 - 961,869 876,663
Engineering - - 1,764
Pro Shop 373,755 373,755 356,379
Food and beverage 864,311 864,311 758,422
Conference center 209,406 209,406 167,679
Cart operations 151,886 151,886 117,275
Driving range 8,480 8,480 9,172
Athletic complex 162,349 162,349 63,109
Softball complex 796,294 796,294 785,951
Arbor Daze 524,133 - 524,133 567,063
Insurance costs - 1,721,862 1,721,862 1,914,881
Depreciation 1,719,842 311,875 2,031,717 1,481,918
Amortization 22,651 - 22,651 22,652
Total operating expenses 15,4901)66 2,581,658 18,071,724 17,628,386
Operating Income (loss) 2,047,746 (253,354) 1,794,392 1,317,203
Nonoperating revenues (expenses):
Investment income 519,235 54,019 573,254 637,131
Interest on bonds (903,973) - (903,973) (930,168)
Gain on sale of fixed assets - 19,082 19 082 -
Total nonoperating revenues (expenses), net (384,738) 73,101 (311N537) (293,037)
Income (loss) before operating transfers 1,663,008 (180,253) 1,482,755 1,024,166
Operating transfers In 221,383 620,000 841,383 1,040,549
Operating transfers out (1,336,192) (107,759) (1,443,951) (679,121)
Net income 548,199 331,988 880,187 1,385,594
Add depreciation on fixed assets acquired
with contributed capital 421,331 - 421,331 421,331
Increase in retained eamings 969,530 331,988 1,301,518 1,806,925
Retained earnings, beginning of year 18,383,725 2,321,149 20,704,874 18,897,949
Retained earnings, end of year $ 19,353,255 $ 2,653,137 $ 22,006,392 $ 20,704,874
The Notes to the General purpose Financial Statements are an Integral part of thla atabment
11
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS -ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization expenses
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue
Due from other funds
Due from other governments
Prepaids and deposits
Inventory
Increase (decrease) due to net changes in:
Accounts payable
Accrued salaries and wages
Accrued insurance claims
Due to other funds
Customer and escrow deposits
Deferred revenue
Total adjustments
Net cash provided by
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 capital
lease payable
Operating transfers in
Operating transfers 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
Proceeds from sale of utility plant in
service
Enterprise
Funds
$ 2,047,746
1,742,493
(105,084)
341,507
213,578
(10,839)
76,602
47,605
(350,569)
44,727
(8,968)
1,991,052
4,038,798
(886,128)
(22,168)
(610,000)
(190,000)
40,981
221,383
(1,336,192)
(2,782,124)
(806,031)
Net cash used in capital and related
financing activities (806,031)
Internal
Service
Funds
(1 of 2)
Totals
(Memorandum only)
1999 1998
$ (253,354) $ 1,794,392
311,875 2,054,368
(13,473) (118,557)
341,507
213,578
(10,839)
(51,241) 25,361
1,503 49,108
32,653 32,653
(350,569)
44,727
(8,968)
281,317 2,272,369
27,963 4,066,761
(886,128)
(22,168)
(610,000)
(190, 000)
40,981
620,000 841,383
(107,759) (1,443,951)
512,241 (2,269,883)
(458,930)
30,950
(427,980)
(1,264,961)
30,950
(1,234,011)
$ 1,317,203
1,504,570
(103,772)
(228,884)
20,561
(185,089)
(29,073)
(377,033)
69,663
25,000
320,534
49,640
48,157
1,114,274
2,431,477
(903,678)
(31,973)
(585,000)
(170, 000)
1,040,549
(679,121)
(1,329,223)
419,728
(1,878,298)
(1,458,570)
The Notes to the General Purpose Financial Statements are an integral part of this statement.
12
CITY OF EULESS, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
(2 of 2)
Internal Totals
Enterprise Service (Memorandum only)
Funds Funds 1999 1998
INVESTING ACTIVITIES:
Purchase of investment securities $ (20,148) $ - $ (20,148) $ 709,337
Proceeds from sale of investment securities 32,423 - 32,423 -
Interest received on investments 600,016 58,516 658,532 569,956
Net cash provided by
investing activitives
Net increase in cash and
cash equivalents
Cash and cash equivalents,
beginning of year
Cash and cash equivalents,
end of year
612,291 58,516 670,807 1,279,293
1,062,934 170,740 1,233,674 922,977
8,031,256 1,373,402 9,404,658 8,481,681
$ 9,094,190 $ 1,544,142 $ 10,638,332 $ 9,404,658
Reconciliation of cash to balance sheet:
Cash - current $ 8,544,956
Cash - restricted assets 549,234
Cash and cash equivalents $ 9,094,190
Restricted assets:
Cash $ 549,234
Investments 1,774,072
Interest receivable 10,554
Total restricted assets $ 2,333,860
The Notes to the General Purpose Financial Statements are an integral part of this statement.
13
CITY OF EULESS, TEXAS
NOTES TO COMBINED 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 govemmental accounting and financial reporting principles. The City's
significant accounting policies are described below:
Reporting Entity
The combined financial statements of the City include the primary government
organizations for which the primary govemment 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 govemment may also be financially
accountable for govemmental 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 govemment.
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, Texas. 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
14
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Reporting Entity - continued
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.
A blended presentation has been used to report the financial information of this
component unit. The financial statements for the Corporation were obtained from the
Board of Directors. The financial information for the Corporation is available from the
City of Euless, Texas.
Crime Control District - The City created the District for the purpose of proactively
combating rising crime rates by setting up additional crime prevention and
rehabilitation programs within the City. The District's goveming body is substantially
the same as the governing body of the City of Euless, Texas. 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."
15
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Fund Accounting - continued
Govemmental funds are used to account for all or most of the City's general activities,
including the collection and disbursement of earmarked moneys (special revenue funds),
the acquisition or construction of general fixed assets (capital projects funds) and the
servicing of general long-term debt (debt service funds). The general fund is used to
account for all activities of the City not accounted for in some other fund.
Proprietary funds are used to account for activities similar to those found in the private
sector, where the determination of net income is necessary or useful to sound financial
administration. Goods or services from such activities can be provided either to outside
parties (enterprise funds) or to other departments or agencies within the City (internal
service funds).
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 Tong -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.
16
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Basis of Accounting - continued
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.
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 appropriate 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 appropriate Special Revenue Funds. Appropriations and
encumbrances lapse at year-end.
17
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Budgetary Data - continued
6. Formal budgetary integration is not employed for the Debt Service Funds because
effective budgetary control is altematively achieved through general obligation bond
indenture provisions.
7. Budgetary data for the Capital Projects Funds has not been presented in the
accompanying combined financial statements as such funds are budgeted over the
life of the respective project and not on an annual basis. Accordingly, formal
budgetary integration of the Capital Projects Funds is not employed and comparison
of actual results of operations to budgetary data for such funds is not presented.
8. Appropriated budgets for the Proprietary Funds are also adopted, but have not been
presented since reporting on such budgets is not legally required.
The following is a reconciliation of the budgetary and GAAP basis excess (deficiency) of
revenues and other sources over expenditures and other uses for the Special Revenue
Funds:
Excess (deficiency) of revenues and other sources over
expenditures and other uses (budgetary basis)
Unbudgeted fund:
Police/Drug Enforcement Fund
Excess (deficiency) of revenues and other sources over
expenditures and other uses (GAAP basis)
Deposits and Investments
$357,144
57.121
$414,205
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash and investment accounts. Related interest income is allocated to the
various funds based primarily on ownership by each fund of specific investments. Cash
equivalents consist of highly liquid investments with original maturities of three months or
less.
For purposes of the combined statement of cash flows, the City considers all highly liquid
investments (including cash equivalents reported as restricted assets of $549,234 and
$1,579,125 at September 30, 1999 and 1998, respectively) as set forth above to be cash
equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. Nonparticipating contracts are reported
at cost. All other investments are reported at fair value.
18
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Deposits and Investments - continued
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 $.514754 per $100 of assessed valuation ($.524754 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.
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
5 - 15 years
33 1/3 years
19
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation. The City's
policy is to pay the employee accumulated vacation upon termination. The City does not
pay employees for accumulated sick leave upon termination. Accumulated vacation in
the proprietary funds has been accrued as incurred and reported as accrued salaries and
wages (a current liability). The accumulated vacation of the govemmental fund type,
representing an estimate of the amounts not expected to be liquidated with expendable
available financial resources, has been recorded in the General Long -Term Debt Account
Group.
The estimated vacation liability expected to be satisfied with available financial resources
is included in accrued salaries and wages in the General Fund.
Deferred Compensation
The City offers its employees a Noncontributory Deferred Compensation Plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all City
employees, permits them to defer a portion of their salary until future years. The
deferred compensation is not available to employees until termination, retirement, death,
or unforeseeable emergency.
The laws governing 457 plans were changed to state that plans would not be considered
eligible plans unless all assets and income of the plans are held in trust for the exclusive
benefit of the participants and their beneficiaries. The City's plan complies with the
provisions of Internal Revenue Code Section 457.
The deferred compensation plan had previously been included within the City's financial
statements as an agency fund. In accordance with GASB 32, the plan as amended is no
longer included in the City's financial statements.
Fund Equity
Certain assets that are restricted to a specific future use or are not available for
appropriation or expenditure are offset by fund balance reserve accounts. Designated
fund balances represent tentative plans for future use of financial resources.
Comparative Data
Comparative total data for the prior year 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.
20
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Memorandum Totals
The totals column on the combined statements are captioned Memorandum Only to
indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations or cash flows in
conformity with generally accepted accounting principles. Neither is such data
comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
Interfund Transactions
Quasi -external transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially
made from it that are properly applicable to another fund, are recorded as expenditures/
expenses in the reimbursing fund and as a reduction of expenditures/expenses in the
fund reimbursed.
All other interfund transactions, except quasi-extemal transactions and reimbursements,
are recorded as transfers. Nonrecurring or nonroutine permanent transfers of equity are
reported as residual equity transfers. All other interfund transfers are reported as
operating transfers.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
At September 30, 1999, the bank balances were $225,900 and the ledger balances of
the City's book cash deposits were ($1,205,072). Of the bank balances, $225,900 were
protected by federal depository insurance or by collateral held by the City's agent in the
City's name.
Investments
At September 30, 1999, 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;
21
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS
Investments - continued
U. S. Securities
Investments not subject
to categorization:
LOGIC
FGIC
NOTE 3. LONG-TERM DEBT
Cateaories
1 2
$422,707 $20,024,023
3
Carrying Fair
Amount Value
$20,446,730 $20,446,730
6,588,949 6,588,949
1.815,988 1.815.988
121111 E5Z 128. 1-0Z
A summary of Tong -term debt transactions for the year ended September 30, 1999, is as
follows:
General Long -Term Debt
Account Group:
General Obligation Bonds
Certificates of Obligation
Sales tax revenue bonds
Capital leases
Compensated absences
Accreted interest
Balance
Beginning
of Year
Balance
End
Increase Decrease of Year
$ 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
393,114 134,472 258,642
1,047,209 46,697 1,000,512
1.450.256 198,652 - 1,648,908
$2142,165 __198 652 $1,956i 69 $26 C49,648
22
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
Balance Balance
Beginning End
of Year Increase Decrease of Year
Proprietary Fund Types:
Water and Sewer
Revenue Bonds $ 2,155,000 $ $385,000 $ 1,770,000
Drainage Utility
Revenue Bonds 1,870,000 105,000 1,765,000
Tax and Golf Course
Surplus Revenue
Certificates of Obligation 9,675,000 50,000 9,625,000
Tax and Softball Works Park
Surplus Revenue
Certificates of Obligation 1,935,000 70,000 1,865,000
Capital Leases - 47,280 6,299 40,981
Tax Notes 580.000 - 190.000 390.000
$ 16,215,000 &47.28Q _6Q6,244 $15 455,981
Debt outstanding at September 30, 1999 consists of the following:
Range of Outstanding Current Long -Term
Interest Rates Balance Maturities Maturities
General Obligation Bonds 2.80 to 9.20% $ 4,026,586 $512,790 $3,513,796
Certificates of Obligation 4.10 to 7.13% 10,625,000 510,000 10,115,000
Sales Tax
Revenue Bonds 5.10 to 8.10% 9,090,000 360,000 8,730,000
Capital leases 5.97 to 13.96% 299,623 144,495 - 155,128
Water and Sewer
Revenue Bonds 4.50 to 6.50% 1,770,000 415,000 1,355,000
Drainage Utility
Revenue Bonds 4.75 to 6.70% 1,765,000 110,000 1,655,000
Tax and Golf Course
Surplus Revenue
Certificates of Obligation 5.25 to 5.90% 9,625,000 75,000 9,550,000
Tax and Softball World Park
Surplus Revenue
Certificates of Obligation 4.10 to 5.25% 1,865,000 70,000 1,795,000
Tax Notes 4.45 to 6.45% 390,000 195,000 195,000
23
CITY OF EULESS, TEXAS
NOTES TO COMBINED 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.
2000
2001
2002
2003
2004
2005-2009
2010-2014
2015-2018
Less interest
Principal
2000
2001
2002
2003
2004
2005-2009
2010-2014
2015-2019
2020-2024
2025-2027
Less interest
Sales
General Certifi- Tax
Obligation cates of Revenue
Bonds Obligation Bonds
$1,144,455 $ 1,054,739 $ 897,693
1,162,065 940,713 888,583
1,145, 315 933,997 884,033
1,170,790 872,619 886,693
1,163,768 869,254 879,047
1,117,505 4,397,343 4,420,627
4,470,193 4,446,276
2,724,808 1.018.625
6,903,898
2.877.312
$4.Q2Q 586
16, 263, 666
5.638.666
$1.Q.525 000
14, 321, 577
5.231.577
$9 090 000
Tax and Tax and
Golf Softball
Course World Park
Utility Surplus Surplus
Drainage Revenue Revenue
Revenue Certificates of Certificates of
Bonds Obligation Obligation
$ 222,342 $ 624,528 $ 158,139
225,852 645,590 160,166
228,652 715,340 157,082
230,788 711,152 158,856
227,248 711,702 160,348
1,158,646 3,553,272 813,277
234,740 3,559,296 833,689
3,563,310 337,062
3,563,514
2.139.806
2,528,268 19,787,510 2,778,619
763.268 10.162.510 913,619
Principal $1265.QQQ $_2.525.2QQ $1355 000
Capital
Leases
Water and
Sewer
Revenue
Bonds Subtotal
$159,551 $ 505,871 $ 3,762,309
159,551 513,625 3,664,537
9,948 519,475 3,492,768
209,575 3,139,677
131,025 3,043,094
130,625 10, 066,100
8,916,469
3.743.433
329,050
29.427
$299 623
2,010,196
240.196
1122.1000
39, 828, 387
14.017.178
$25311-2Q9
Notes Subtotal Grand Total
$ 208,506 $ 1,213,515 $ 4,975,824
101,959 1,133,567 4,798,104
102,375 1,203,449 4,696,217
1,100,796 4,240,473
1,099,298 4,142,392
5,525,195 15,591,295
4,627,725 13,544,194
3,900,372 7,643,805
3,563,514 3,563,514
2,139.806 2.139.806
412,840
22,840
$.Q9Q.000
25,507,237
11.862.237
$12_64.5 000
65,335,624
25,879.415
$Q$ 456222
General Obligation Bonds authorized and unissued as of September 30, 1999, amounted to
$300,000. Water and Sewer Revenue Bonds authorized and unissued as of September 30,
1999, 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.
24
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 3. LONG-TERM DEBT - continued
At September 30, 1999, $1,215,000 of bonds defeased in the 1993 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 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, 1999. 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, 1999, the
balance in the property sales proceeds account was $480,000 and is included in restricted
assets in the accompanying balance sheet.
25
CITY OF EULESS, TEXAS
NOTES TO COMBINED 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 $4,295,000 in 1999 and are included as
operating expenses of the water and sewer fund. The payments decreased approximately
$255,000 in comparison to 1998.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. FIXED ASSETS
The following is a summary of changes in the general fixed assets account group during the
fiscal year:
Balance Balance
September 30, September 30,
1998 Additions Deletions 1999
Land $ 3,826,944 $ $ $ 3,826,944
Buildings 8,795,947 8,795,947
Improvements
other than buildings 4,162,919 - 4,162,919
Construction in progress 1,131,114 898,886 2,030,000
Machinery and equipment 7.054.415 672.222 7.726.637
$ 24.9Z13 $1571..1.05 $ $25-542.442
The following is a summary of utility plant and equipment in service at September 30, 1999
included in the proprietary funds:
Enterorise Funds
Internal
Water and Drainage Recreation Golf Course Softball Athletic Service
Sewer Fund Utility Fund Classes Fund Complex Complex Funds
Land and building $1,528,966 $89,000 $ - $10,050,444 $1,369,473 $5,197,050 $ -
Equipment 2,194,922 6,510 1,376 609,442 46,211 151,046 2,502,247
Improvements 184,601 2,706,729 - 715,591 16,558 - 40,390
Waterworks
and sanitary
sewer system 29,813,730
Construction
in progress - -
Less accumulated
depreciation
33,722,219 2,802,239 1,376 11,375,477 1,432,242 5,348,096 2,542,637
16,235,730 293,940 550 548.552 19.522 186.121 1.299.836
$1Z 486.489 S2.528,299 $ 826 11.0.826 925 L1-41212D $5.1.51,975 S1.242.821.
26
CITY OF EULESS, TEXAS
NOTES TO COMBINED 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 & Sewer
Softball World
Golf Course
Golf Course
Capital Projects
NOTE 9. CONTRIBUTED CAPITAL
Payable Fund Amount
Golf Course $305,329
Athletic Complex 373,000
Police Department Grant 7,329
Softball Complex 11,636
Special Revenue 24,400
$721,694
The activity within the Enterprise Fund contributed capital for the year ended
September 30, 1999 is as follows:
Balance, September 30, 1998 $14,255,843
Depreciation expense for the
year ended September 30, 1999 ( 421.3311
Balance, September 30, 1999 $13.834.512
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
27
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 10. RISK MANAGEMENT - continued
$60,000 and aggregate claims in excess of $1,083,333. During fiscal 1999, the City and
City's employees contributed approximately $1,074,697 and $428,128, respectively, for
medical coverage. The City's contributions are accounted for as quasi-extemal
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.
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 1999, the City contributed
approximately $291,439 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
1999 1998
$ 95,000 $ 70,000
1,754,515 1,724,055
1.721.862 1,699,055
$_127.&5$ $ 95,44Q
The City had no significant reductions in insurance coverage from the year ended
September 30, 1998. Settlement amounts have not exceeded insurance coverage for the
year ended September 30, 1999 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 the state-wide Texas Municipal
Retirement System (TMRS), one of 717 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
28
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Plan Description - continued
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.
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 goveming TMRS and within the actuarial constraints also in the
statutes.
Contributions
The contribution rate for the employees is 7%, and the City matching percent is currently
200%, both as adopted by the 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, 1998 valuation is effective for rates beginning January
2000).
29
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 11. EMPLOYEE RETIREMENT SYSTEM - continued
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date 12/31/98
Actuarial Value of Assets $35,352,987
Actuarial Accrued Liability 42,919,216
Percentage Funded 82.4%
Unfunded Actuarial Accrued Liability (UAAL) 7,566,229
Annual Covered Payroll 12,486,300
UAAL as a Percentage of Covered Payroll 60.6%
Net Pension Obligation (NPO) at the Beginning of Period $ -
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
1,699,438
Total annual pension cost 1,699,438
Contributions Made ( 1,699,438)
Increase in NPO -
NPO at the end of the period $
Trend information for the past three years for TMRS is as follows:
Year
Annual Percentage
Pension Cost of APC Net Pension
(APC) Contributed Obliaation
1996 $ 1,529,741 100%
1997 1,641,301 100%
1998 1,699,438 100%
$
The City of Euless is one of 717 municipalities having the benefit plan administered by
TMRS. Each of the 717 municipalities has an annual, individual actuarial valuation
performed. All assumptions for the Deecmber 31, 1998 valuations are contained in the
1998 TMRS Comprehensive Annual Financial Report, a copy of which may be obtained
by writing P.O. Box 149153, Austin, Texas 78714-9153.
30
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 12. SEGMENTS OF ENTERPRISE ACTIVITIES
The City maintains seven 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:
Operating revenues
Depreciation
Operating
income (loss)
Operating
transfers in
transfers out
Net income (loss)
Property, plant
and equipment:
Additions
Total Assets
Net working capital
Long-term debt,
including
current portion
Water and Drainage Recreation
Sewer Fund Utility Fund Classes
$11,442,904 $ 587,710 $ 230,489
1,016,640 81,774 275
1,129,881 304,568 19,143
1,286,889 31,102 -
201,774 188,909 19,143
662,251 89,000
28,953,187 3,517,610
8,548,726 924,847
Golf Softball
Course Comolex
$ 3,534,634
424,969
Athletic Arbor
Comolex Daze Total
$ 995,090 $ 157,393 $ 589,592 $17,537,812
10,063 186,121 - 1,719,842
533,760 186,691 (191,756) 65,459 2,047,746
203,181 18,202 - 221,383
- - 18,201 - 1,336,192
151,162 125,041 (206,452) 68,622 548,199
54,780 - -
65,704 11,302,016 2,246,907 5,255,239
62,564 153,287 770,306 70,898
- 806,031
126,336 51,466,999
126,336 10,656,966
1,770,000 1,765,000 - 10,055,981 1,865,000 15,455,981
Total Equity 25,389,847 1,701,977 63,390 704,736 329,980 4,871,501 126,336 33,187,767
NOTE 13. CAPITAL LEASES
The City has entered into lease agreements as lessee for financing the acquisition of
computer hardware, software, communications equipment, machinery and 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 $883,367. 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, 1999.
2000 $159,551
2001 159,551
2002 9.948
Total minimum lease payments 329,050
Less: amount representing interest 29.427
Present value of future minimum lease payments $299,t23
31
CITY OF EULESS, TEXAS
NOTES TO COMBINED FINANCIAL STATEMENTS
NOTE 14. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 1999, the following individual funds had an excess of expenditures
over appropriations:
DEA Task Force Fund ($ 43,691)
Police Department Grant Funds ($ 28,025)
NOTE 15. PRIOR PERIOD ADJUSTMENT
Subsequent to issuance of the City's financial statements for the year ended September 30,
1998, an error was discovered in capital leases payable in the General Long -Term Debt
Account Group and machinery and equipment in the General Fixed Asset Account Group.
Accordingly, an adjustment was made to correct the balances reported in previous financial
statements, which had the effect of increasing the beginning balance of capital leases
payable in the General Long -Term Debt Account Group and increasing the beginning
balance of machinery and equipment in the General Fixed Asset Account Group by
$375,880 and $427,494, respectively.
NOTE 16. DEFICIT RETAINED EARNINGS
A deficit retained earnings of $184,003 exists in the Athletic Complex Fund resulting from
start-up operations and depreciation expense.
32
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 1999
Unfunded Unfunded Actuarial
Actuarial Actuarial Actuarial Actuarial Annual Accrued Liability
Valuation Value of Accrued Percentage Accrued Covered as a Percentage
Date Assets Liability Funded Liability Payroll of Covered Payroll
12/31/96 $ 27,342,327 $ 34,623,173 78.97% $ 7,280,846 $ 11,340,676 64.20%
12/31/97 31,489,215 39,167,673 80.40% 7,678,458 11,791,361 65.12%
12/31/98 35,352,987 42,919,216 82.37% 7,566,229 12,486,300 60.60%
33
INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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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.
Police Department Grant Funds - to account for grant revenues received which
must be used for police salaries and benefits.
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,1998
Police Crime
Drug Half DEA Control and Police
Hotel/ Enforce- Penny Task Prevention Department
Motel ment Sales Tax Force District Grant Totals
Fund Fund Fund Fund Fund Funds 1999 1998
ASSETS
Deposits and investments $ 207,805 $ 429,942 $ 1,789,041 $ 2,549 $ 654,356 $ 125,727 $ 3,209,420 $ 2,731,014
Accounts receivable - 8,388 10,594 18,982
Accrued interest receivable 4,780 5,628 6,425 - 16,833 11,308
Prepaids - 4,318 - 4,318 -
Due from other governments 122,061 62,929 184,990 209,547
Total assets $ 207,805 $ 443,110 $ 1,921,048 $ 2,549 $ 723,710 $ 136,321 $ 3,434,543 $ 2,951,869
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable $ 17,950 $ 159 $ 43,161 $ $ 63,183 $ - $ 124,453 $ 93,740
Accrued salaries and wages - 12,134 982 1,323 14,439 8,472
Due to other funds 24,400 7,329 31,729 -
Total liabilities 17,950 159 79,695 64,165 8,652 170,621 102,212
FUND EQUITY:
Fund Balances:
Reserve for debt service - 910,588 910,588 927,674
Reserve for historical preservation 1,323 - - - 1,323
Unreserved, undesignated 188,532 442,951 930,765 2,549 659,545 127,669 2,352,011 1,921,983
Total fund equity 189,855 442,951 1,841,353 2,549 659,545 127,669 3,263,922 2,849,657
Total liabilities and fund equity $ 207,805 $ 443,110 $ 1,921,048 $ 2,549 $ 723,710 $ 136,321 $ 3,434,543 $ 2,951,869
34
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
Revenues:
Gross receipts tax
General sales tax
Interest income
DEA revenues
Other revenues
Total revenues
Expenditures:
General and administrative
Police department
Parks
Library
Economic development
Debt service
Principal
Interest and fiscal charges
Capital outlay
and maintenance
Total expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other
financing sources (uses)
Hotel/
Motel
Fund
$ 288,975
6,805
1,323
297,103
Police
Drug
Enforce-
ment
Fund
$
18,032
125,714
Half
Penny
Sales Tax
Fund
DEA
Task
Force
Fund
Crime
Control and
Prevention
District
Fund
Police
Department
Grant
Funds
$ - $ - $
914,810 -
390 23,021 1,852
23,234 204,286
143,746 1,990,614 23,624 937,831 206,138
$ 1,917,311
73,303
72,914 - 2,088 - - -
18,325 44,949 173,184 160,525
370,576 - - -
272,496 -
110,354 -
345,000
565,588
27,550 44,019 58,570
100,464 62,344 1,666,102 44,949 231,754 160,525
(164,625) (24,281) (163,556) - (609,1641_
(164,625) _(24,281) (163,556)
42,973
Totals
1999 1998
$ 288,975
2,832,121
123,403
125,714
228,843
3,599,056
75,002
396,983
370,576
272,496
110,354
345,000
565,588
130,139
2,266,138
$ 332,995
2,869,590
148,939
96,023
68,641
3,516,188
174,394
450,762
335,419
266,010
130,379
335,000
592,672
65,628
2,350,264
42,973 3,117
(961,626) _J1,015,972)
- (609,164) 42,973 (918,653) (1,012,855)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses 32,014 57,121 160,956 (21,325) 96,913 88,586
Fund balance,
beginning of year
Fund balance, end of year
414,265 153,069
157,841 385.830 1,680,397 23,874 562,632 39,083 2,849,657 2,696,588
$ 189,855 $ 442,951 $ 1,841,353 $ 2,549 $ 659,545 $ 127,669 $ 3,263,922 $ 2,849,657
35
CITY OF EULESS, TEXAS
BUDGETED SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1999
Hotel/Motel Fund Half Penny Sales Tax Fund
Variance
Variance
rdvuldble FdVuIdb e
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
Revenues:
Gross receipts tax $ 288,975 $ 375,000 $ (86,025) $ $ - $
General sales tax - 1,917,311 2,050,000 (132,689)
Interest income 6,805 3,300 3,505 73,303 65,000 8,303
DEA revenues - - - - -
Other revenues 1,323 1,323
Total revenues 297,103 378,300 (81,197) 1,990,614 2,115,000 (124,386)
Expenditures:
General and administrative 72,914 112,264 39,350 2,088 255,600 253,512
Police department - - -
Parks - 370,576 494,568 123,992
Library - 272,496 283,005 10,509
Economic Development 110,354 168,282 57,928
Debt Service Principal 345,000 345,000 -
Debt Service Interest - - 565,588 565,588
Capital outlay
and maintenance 27,550 59,086 31,536
Total expenditures 100,464 171,350 70,886 1,666,102 2,112,043 445,941
Other financing sources (uses):
Operating transfers In - Operating transfers out (164,625) (164,625) (163,556) (138,556) (25,000)
Total other
financing sources (uses) (164,625) (164,625) (163,556) (138,556) (25,000)
Excess (deficiency) of revenues and
and other financing sources over
expenditures and other
financing uses 32,014 42,325 (10,311) 160,956 (135,599) 296,555
Fund balance,
beginning of year 157,841 157,841 - 1,680,397 1,680,397
Fund balance, end of year
$ 189,855 $ 200,166 $ (10,311) $ 1,841,353 $ 1,544,798
296,555
36
(1 of 2)
DEA Task Force Fund Crime Control and Prevention District Fund
Variance Variance
Favurable FdvuidLIe
Actual Budget (Unfavorable) Actual Budget (Unfavorable)
$ $ - $ $ - $ - $
- - 914,810 970,000 (55,190)
390 390 23,021 15,000 8,021
23,234 23,234
23,624 - 23,624 937,831 985,000 (47,169)
44,949 1,258 (43,691) 173,184 568,362 395,178
258,904 258,904
58,570 58,570
44,949 1,258 (43,691) 231,754 885,836 654,082
(609,164) (609,164)
(609,164) (609,164)
(21,325) (1,258) (20,067) 96,913 (510,000) 606,913
23,874 23,874 562,632 562,632
2,549 $ 22,616 $ (20,067) $ 659,545 $ 52,632 $ 606,913
CITY OF EULESS, TEXAS
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1999
Revenues:
Gross receipts tax
General sales tax
Interest Income
DEA revenues
Other revenues
Total revenues
Expenditures:
General and administrative
Police department
Parks
Library
Economic Development
Debt Service Principal
Debt Service Interest
Capital outlay
and maintenance
Total expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other
financing sources
$
(2 of 2)
Police Department Grant Funds
Variance
Fawrable
Actual Budget (Unfavorable)
a - $
1,852 1,852
204,286 113,808 90,478
206,138 113,808 92,330
160,525 132,500 (28,025)
160,525 132,500 (28,025)
42,973 18,692 24,281
42,973 18,692 24,281
Excess of revenues and
and other financing sources over
expenditures and other
financing uses 88,586 88,586
Fund balance,
beginning of year 39,083 39,083
Fund balance, end of year $ 127,669 $ 39,083 $ 88,586
38
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 which will be utilized as a new Fire Station facility.
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
ASSETS
Deposits and investments
Accrued interest receivable
Due from other funds
Total assets
LIABILITIES AND FUND EQUITY
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
$ 7,998 $ 44,970 $ 3,318,556
- 8,117
$ 7,998 $ 44,970 $ 3,326,673
Accounts payable $ $ $ 128,092
Customer and escrow deposits
Total liabilities 128,092
Fund Balances:
Reserve for development
agreements
Unreserved, undesignated
Total fund equity
Total liabilities and fund equity
7,998 44,970 3,198,581
7,998 44,970 3,198, 581
$ 7,998 $ 44,970 $ 3,326,673
39
Half -Penny Police G.O.
Sales Tax Developers' Facility Capital
Construction Contribution Construction Projects Totals
in Progress Fund Fund Fund 1999 1998
$ 1,201,851 $ 1,719,802 $ 731,412 $ 106,304 $ 7,130,893 $ 9,271,337
25,699 21,021 54,837 49,496
24,400 - - 24,400
$ 1,251,950 $ 1,740,823 $ 731,412 $ 106,304 $ 7,210,130 $ 9,320,833
$ 53,891 $ - $ - $ $ 181,983 $ 162,412
15,333 15,333 96,826
53,891 15,333 - 197,316 259,238
- 1,202,910 - - 1,202,910 1,232,860
1,198,059 522,580 731,412 106,304 5,809,904 7,828,735
1,198,059 1,725,490 731,412 106,304 7,012,814 9,061,595
1,251,950 $ 1,740,823 $ 731,412 $ 106,304 $ 7,210,130 $ 9,320,833
40
CITY OF EULESS, TEXAS
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
Park
Improvements Street
Certificates of Street Capital
Obligation Assessments Improvements
Fund (1990) Fund Fund
Revenues:
Interest income $ $ $ 217,310
Intergovernmental -
Other revenue 2,593 145
Total revenues - 2,593 217,455
Expenditures:
Parks/recreation/library
Economic development
Issuance costs
Capital outlay and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Net proceeds from issuance
of certificates of obligation
Operating transfers in
Operating transfers out
Total other financing sources
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses
Fund balances, beginning of year
Fund balances, end of year
1,890
1,890
(1,890) 2,593
1,948,404
1,948,404
(1,730,949)
(1,890) 2,593 (1,730,949)
9,888 42,377 4,929,530
$ 7,998 $ 44,970 $ 3,198,581
41
Half -penny Police G.O.
Sales tax Developers' Facility Capital
Construction Contribution Construction Projects Totals
in Progress Fund Fund Fund 1999 1998
$ 50,884 $ 76,461 $ 37,150 $ 8,283 $ 390,088 $ 310,709
- - - 1,280,767
2,738 95,729
50,884 76,461 37,150 8,283 392,826 1,687,205
135,677 - 135,677 211,929
1,453 1,453 90,136
- - 56,800
29,950 898,885 60,348 2,939,477 4,469,591
137,130 29,950 898,885 60,348 3,076,607 4,828,456
(86,246) 46,511 (861,735) (52,065) (2,683,781) (3,141,251)
5,500,000
125,000 510,000 635,000 1,269,890
(11,411)
125,000 510,000 635,000 6,758,479
38,754 46,511 (351,735) (52,065) (2,048,781) 3,617,228
1,159, 305 1,678,979 1,083,147 158,369 9,061,595 5,444,367
$ 1,198,059 $ 1,725,490 $ 731,412 $ 106,304 $ 7,012,814 $ 9,061,595
42
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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, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
Water and Drainage Recreation
Sewer Utility Classes
ASSETS
Current assets:
investments $ 6,823,119 $ 901,187 $ 62,536
Accounts receivable and unbilled revenue less allowance
for uncollectibles of $1,463 for water and sewer
and $6,639 for drainage utility 1,695,780 44,050
Grants receivable -
Accrued interest receivable 201,895 4,368 -
Prepaids and deposits 35,288 - 2,342
Inventory 48,143 -
Due from other funds 305,329 - -
Total current assets 9,109,554 949,605 64,878
Restricted assets:
Revenue bond debt service:
Cash with paying agent 11,122
Revenue bond emergency:
Short-term investments 500,000
Property sale proceeds account:
Investment with paying agent 480,000
Capital projects account:
Cash and cash equivalents 538,112
Short-term investments 794,072
Customer deposits:
Cash and cash equivalents -
Interest receivable on investments 10,554
Total restricted assets 2,333,860
Bond issuance cost 85,373 107,473
Less accumulated amortization 62,089 47,767
Net bond issuance cost 23,284 59,706
Utility plant and equipment in service, at cost
Land and Building 1,528,966 89,000
Equipment 2,194, 922 6,510 1,376
Improvements 184,601 2,706,729
Waterworks and sanitary sewer system 29,813,730 -
33, 722, 219 2,802,239 1,376
Less accumulated depreciation io,Loo,iou 293,940 550
Net utility plant and equipment in service 17,486,489 2,508,299 826
TOTAL ASSETS $28,953,187 $ 3,517,610 $ 65,704
43
(1 of 2)
Golf Softball Athletic Arbor Totals
Course Complex Complex Daze 1999 1998
$ 156,655 $ 399,890 $ 75,233 $ 126,336 $ 8,544,956 $ 6,452,131
96,786 - 1,836,616 1,796,116
- 59,772
- 109 206,372 158,363
15,646 4,502 57,778 271,356
92,283 21,209 6,403 168,038 157,199
18,965 373,000 - 697,294 1,038,801
380,335 /98,/10 81,536 126,336 11,511,054 9,933,738
11,122 12,730
500,000 500,000
480,000 459,852
538,112 466,820
794,072 826,495
1,099,575
10,554 19,303
2,333,860 3,384,775
116,003 42,879 14,259 365,987 365,987
21,247 7,402 2,631 - 141,136 118,485
94,756 35,4// 11,628 224,851 247,502
10,050,444 1,369,473 5,197,050 18,234,933 18,135,139
609,442 46,211 151,046 3,009,507 2,299,975
715,591 16,558 - 3,623,479 3,626,773
29, 813, 730 29, 813, 730
11,375,4/1 1,432,242 5,348,096 54,681,649 53,875,617
548,552 19,522 186,121 17, 284, 415 10, 004, 0 / J
10,826,925 1,412,720 5,161,975 37,397,234 38,311,044
$ 11,302,016 $ 2,246,907 $ 5,255,239 $ 126,336 $51,466,999 $ 51,877,059
44
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30,1998
Water and Drainage Recreation
Sewer Utility Classes
LIABILITIES AND FUND EQUITY
Current liabilities:
Payabtefrorrrcurrent assets:
Accounts payable $ 451,049 $ 35 $ 2,314
Accrued salaries and wages 109,779 17,223
Customer and escrow deposits 7,500
Deferred revenue
Total current liabilities 560,828 24,758 2,314
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,144,302
Current portion of bonds payable 415,000 110,000
Current portion of capital leases payable
Current portion of tax notes payable
Accrued interest 31,137 25,875
Bonds payable 1,355,000 1,655,000
Capital leases payable
Tax notes payable
Deferred revenue 57,073
Due to other funds
Total liabilities 3,563,340 1,815,633 2,314
Fund equity:
Contributed capital:
From state
From general fund -
From subdividers 15,705,558
From Special Revenue Fund -
From Environmental Protection Agency 239,617
From Trinity River Authority 15,000
15,960,175
Accumulated depreciation on assets
acquired with contributed capital
Net contributed capital
7,608,897
8,351,278
Retained earnings (deficit):
Reserved for:
Computer
Debt service and construction 49,472 Recycling 31,311
Emergency 500,000
Outstanding work 39,405
Total reserved 620,188
Unreserved 16,418,381 1,701,977 63,390
Total retained earnings (deficit) 17,038,569 1,701,977 63,390
Total fund equity 25,389,847 1,701,977 63,390
TOTAL LIABILITIES AND FUND EQUITY $ 28,953,187 $ 3,517,610 $ 65,704
45
(2 of 2)
Golf Softball Athletic Arbor Totals
Course Complex Complex Daze 1999 1998
$ 99,042 $ 15,906 $ 9,459 $ $ 577,805 $ 501,292
57,708 12,496 446 197,652 149,958
- - 7,500 7,500
70,298 833 - 71,131 72,299
227,048 28,402 10,738 - 854,088 731,049
- 1,144,302 1,099,575
75,000 70,000 - 670,000 610,000
15,178 15,178 -
195,000 - 195,000 190,000
8,922 11,889 77,823 86,460
9,550,000 1,795,000 14,355,000 15,025,000
25,803 - 25,803 -
195,000 - 195,000 390,000
- - 57,073 64,873
305,329 11,636 373,000 689,965 1,040,534
10,597,280 1,916,927 383,738 18,279,232 19,237,491
500,000 500,000 500,000
1,700,426 1,700,426 1,700,426
- - 15,705,558 15,705,558
405,633 2,855,078 - 3,260,711 3,260,711
- 239,617 239,617
22,097 - 37,097 37,097
427,730 5,055,504 21,443,409 21,443,409
7,608,897 7,187,566
427,730 5,055,504 13,834,512 14,255,843
225,000
49,472 447,034
31,311 31,311
500,000 500,000
39,405 39,405
520,188 1,242,750
277,0006 329,980 (184,003) 126,336 18,/33,0b( 1i,.14u,9i3
277,6106 329,980 (184,003) 126,336 19,353,255 18,383,(25
704,736 329,980 4,871,501 126,336 33,187,767 32,639,568
$ 11,302,016 $ 2,246,907 $ 5,255,239 $ 126,336 $ 51,466,999 $ 51,877,059
46
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
Water and Drainage Recreation Golf
Sewer Utility Classes Course
Operating revenues:
Water service $ 7,034,082 $ $ $
Sewer service 3,568,056
Drainage fees - 587,710
Recreation fees - - 230,489 -
Service fees and miscellaneous 840,766 - 3,534,634
Total operating revenues 11,442,904 587,710 230,489 3,b34,634
Operating expenses:
General and administrative 640,413 -
Water production 3,214,048 - -
Water distribution 446,715
Utility engineering 272,438 -
Sewage collection and treatment 1,763,864
Nondepartmental 2,123,422
Geographic information 167,287 -
Service center 660,435 -
Drainage - 195,397
Recreation classes - 211,071 -
Golf course 961,869
Engineering -
Pro Shop 373,755
Food and beverage 864,311
Conference center 209,406
Cart operations 151,886
Driving range 8,480
Athletic complex -
Softball complex -
Arbor Daze - -
Depreciation 1,016,640 81,774 275 424,969
Amortization 7,761 5,971 6,198
Total operating expenses 10,313,023 283,142 211,346 3,000,874
Operating income (loss) 1,129,881 304,568 19,143 533,760
Nonoperating revenues (expenses)
Investment income 466,107 33,876 1,427
Interest on bonds (107,325) (118,433) (587,206)
Total nonoperating revenues (expenses), net 358,782 (84,55i) (585,779)
Income (loss) before operating transfers 1,488,663 220,011 19,143 (52,019)
Operating transfers in - 203,181
Operating transfers out (1,286,889) (31,102) -
Net income (loss) 201,774 188,909 19,143 151,162
Add depreciation on fixed assets
acquired with contributed capital 421,331
Increase (decrease) in retained earnings 623,105 188,909 19,143 151,162
Retained earnings, beginning of year 16,415,464 1,513,068 44,247 125,844
Retained earnings (deficit), end of year $ 17,038,569 $ 1,701,977 $ 63,390 $ 277,006
47
Softball Athletic Arbor Totals
Complex Complex Daze 1999 1998
$ $ $ $ 7,034,082 $ 7,125,669
3,568,056 3,544,244
587,710 576,662
- - 230,489 243,884
995,090 157,393 589,592 6,117,475 5,173,264
995,090 157,393 589,592 17,537 1F 16,(56 i, 123
640,413 577,225
3,214,048 3,340,590
446,715 459,664
272,438 173,753
1,763,864 1,754,800
2,123,422 2,473,991
167,287 188,798
660,435 652,720
195,397 87,641
211,071 234,206
961,869 876,663
1,764
373,755 356,379
864,311 758,422
209,406 167,679
151,886 117,275
8,480 9,172
162,349 - 162,349 63,109
796,294 - - 796,294 785,951
524,133 524,133 567,063
10,063 186,121 1,719,842 1,195,798
2,042 679 - 22,651 22,652
808,399 349,149 524,133 15,490,066 14,865,315
186,691 (191,756) 65,459 2,047,746 1,798,408
11,157 3,505 3,163 519,235 579,755
(91,009) - (903,973)(930,168)
(79,852) 3,505 3,163 (384,738) 350,413)
106,839 (188,251) 68,622 1,663,008 1,447,995
18,202 - 221,383 360,549
- (18,201) (1,336,192) (531,065)
125,041 (206,452) 68,622 548,199 1,277,479
- 421,331 421,331
125,041 (206,452) 68,622 969,530 1,698,810
204,939 22,449 57,714 18,383,725 16,684,915
$ 329,980 $ (184,003) $ 126,336 $ 19,353,255 $ 18,383,725
CITY OF EULESS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by 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 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 capital lease payable
Operating transfer in
Operating transfer 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
Proceeds from sale 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
Water and
Sewer
$ 1,129,881
1,024,401
(157, 420)
14,671
220,855
(7,659)
88,227
2,226
44,727
(7,800)
1,222,228
2,352,109
(107, 325)
(385, 000)
(1,286, 889)
(1,779,214)
Drainage Recreation
Utility Classes
$ 304,568 $ 19,143
87,745 275
(8,479) 400
(2,342)
(26,921) (3,119)
17,223 (253)
69,568 5,039)
374,136 14,104
(118,433)
(105, 000)
(31,102
(254, 535
(662,2-51 (89,000)
(20,148)
32,423
426,669 29,739
438,944 29,739
349,588 60,340 14,104
7,022,765 840,847 48,432
$ 7,372,353 $ 901,187 $ 62,536
49
Golf Softball Athletic Arbor
Course Complex Complex Daze 1999
$ 533,760 $ 186,691 $ (191,756) $ 65,459 $ 2,047,746
431,167 12,105 186,800 1,742,493
643 59,772 (105,084)
(18,965) 345,801 341,507
(1,135) (3,800) 213,578
1,216 (1,532) (2,864) (10,839)
28,706 (15,064) 4,773 76,602
25,844 2,584 71 (90) 47,605
(348,205) 11,636 (14,000) (350,569)
- - - 44,727
20,631 (20,965) (834) (8,968)
139,259 331,408 233, 18 190) 1,9 1,052
673,019 518,099 41,962 fi') MP 4,038,798
(569,361) (91,009) (886,128)
(22,168) - (22,168)
(50,000) (70,000) (610,000)
(190,000) (190,000)
40,981 - 40,981
203,181 18,202 - 221,383
- - 18,201 - 1,336,192
(587,367) (142,807) (18,201 12,782,1�1
(54,780)
54,780
125,783
125,783
11,157
11,1b/
3,505
3,505
156,655 386,449 27,266
13,441 47,967
806,031
(20,148)
32,423
3,163 600,016
3,163 612,291
68,532 1,062,934
57,804 8,031,256
$ 156,655 $ 399,890 $ 75,233 $ 126,336 $ 9,094,190
Totals
1998
$ 1,798,408
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)
(1,861,167
419,728
_ (1,534,367)
709,337
520,688
1,230,025
839,680
7,191,576
$ 8,031,256
50
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
(1 of 2)
1999 1998
ASSETS
Current assets:
Deposits and investments $ 6,823,119 $ 5,443,640
Accounts receivable and unbilled revenue less
allowance for estimated uncollectible accounts
of $1,463 in 1999 and 1998 1,695,780 1,538,360
Accrued interest receivable 201,895 158,023
Prepaids and deposits 35,288 256,143
Inventory 48,143 40,484
Due from other funds 305,329 320,000
Total current assets 9,109,554 7,756,650
Restricted assets:
Revenue bond debt service:
Cash with paying agent 11,122 12,730
Revenue bond emergency:
Short-term investments 500,000 500,000
Property sale proceeds account:
Investments with paying agent 480,000 459,852
Capital projects account:
Cash and cash equivalents 538,112 466,820
Short-term investments 794,072 826,495
Customer deposits:
Cash and cash equivalents 1,099,575
Interest receivable on investments 10,554 19,303
Total restricted assets 2,333,860 3,384,775
Bonds issuance cost 85,373 85,373
Less accumulated amortization 62,089 54,328
Net bond issuance cost 23,284 31,045
Utility plant and equipment in service, at cost:
Land and building 1,528,966 1,528,966
Equipment 2,194,922 1,532,671
Improvements 184,601 184,601
Waterworks and sanitary sewer system 29,813,730 29,813,730
33,722,219 33,059,968
Less accumulated depreciation 16,235,730 15,219,090
Net utility plant and equipment in service 17,486,489 17,840,878
TOTAL ASSETS $ 28,953,187 $ 29,013,348
51
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
LIABILITIES AND FUND EQUITY
Current liabilities:
rayaVc 5uw current assets:
Accounts payable
Accrued salaries and wages
Total current liabilities
(2 of 2)
1999 1998
$ 451,049 $ 362,822
109,779 107,553
560,828 470,375
Current obligations payable from
restricted assets:
Customer and escrow deposits 1,144,302 1,099,575
Current portion of bonds payable 415,000 385,000
Accrued interest 31,137 35,452
Bonds payable 1,355,000 1,770,000
Deferred revenue 57,073 64,873
Total liabilities 3,563,340 3,825,275
Fund equity:
Contributed capital:
From subdividers 15,705,558 15,705,558
From Environmental Protection Agency 239,617 239,617
From Trinity River Authority 15,000 15,000
15,960,175 15,960,175
Accumulated depreciation on assets
acquired with contributed capital 7,608,897 7,187,566
Net contributed capital 8,351,278 8,772,609
Retained earnings:
Reserved for:
Computer 225,000
Debt service and construction 49,472 447,034
Recycling 31,311 31,311
Emergency 500,000 500,000
Outstanding work 39,405 39,405
Total reserved 620,188 1,242,750
Unreserved 16,418,381 15,172,714
Total retained earnings 17,038,569 16,415,464
Total fund equity 25,389,847 25,188,073
TOTAL LIABILITIES AND FUND EQUITY $ 28,953,187 $ 29,013,348
52
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
1999 1998
Operating revenues:
Water service $ 7,034,082 $ 7,125,669
Sewer service 3,568,056 3,544,244
Service fees and miscellaneous 840,766 619,110
Total operating revenues 11,442,904 11,289,023
Operating expenses:
General and administrative 640,413 576,475
Water production 3,214,048 3,340,590
Water distribution 446,715 459,664
Utility engineering 272,438 173,753
Sewage collection and treatment 1,763,864 1,754,800
Nondepartmental 2,123,422 2,473,991
Geographic information 167,287 188,798
Service center 660,435 652,720
Depreciation 1,016,640 990,009
Amortization 7,761 7,762
Total operating expenses 10,313,023 10,618,562
Operating income 1,129,881 670,461
Nonoperating revenues (expenses)
Investment income
Interest on bonds
Total nonoperating revenues
(expenses), net
Income before operating transfers
Operating transfers in
Operating transfers out
Net income
466,107 541,779
(107,325) (132,355)
358,782 409,424
1,488,663 1,079,885
17,528
(1,286,889) (465,000)
201,774 632,413
Add depreciation on fixed assets acquired
with contributed capital 421,331 421,331
Increase in retained earnings 623,105 1,053,744
Retained earnings, beginning of year 16,415,464 15,361,720
Retained earnings, end of year $ 17,038,569 $ 16,415,464
53
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
(1 of 2)
1999 1998
General and administrative:
Salaries and benefits $ 308,715 $ 291,463
Postage and supplies 51,426 48,160
Maintenance of office machinery 6,627 6,412
Bad debts 18,653 22,046
Other 254,992 208,394
640,413 576,475
Water production:
Salaries and benefits 339,319 300,140
Operating supplies and expense 110,876 60,058
Maintenance of structures and equipment 11,895 4,610
Contracts - Trinity River Authority (94,949) (111,232)
Water - Trinity River Authority 2,846,907 3,087,014
3,214,048 3,340,590
Water distribution:
Salaries and benefits 351,893 333,709
Operating supplies and expenses 30,100 31,316
Maintenance of structures and equipment 48,530 54,662
Sewer - Trinity River Authority 16,192 39,977
446,715 459,664
Engineering:
Salaries and benefits 207,339 129,124
Operating supplies and expenses 65,099 44,629
272,438 173,753
Sewage collection and treatment:
Salaries and benefits 222,176 221,736
Operating supplies and expenses 91,027 66,359
Maintenance of structures and equipment 1,844 2,799
Treatment fees - Trinity River Authority 1,448,817 1,463,906
1,763,864 1,754,800
Nondepartmental:
Salaries and benefits 558,428 482,903
Operating supplies and expenses 934,787 1,394,057
Contractual services 18,000 18,750
Franchise fees 612,207 578,281
2,123,422 2,473,991
54
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE SCHEDULE OF OPERATING EXPENSES
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
(2 of 2)
1999 1998
Geographic information:
Salaries and benefits $ 113,708 $ 142,620
Operating supplies and expenses 10,692 8,607
Maintenance of machinery and equipment 42,887 36,881
Contractual services 690
167,287 188,798
Service center:
Salaries and benefits 256,595 246,804
Motor fuel and supplies 306,354 286,498
Maintenance of structures and equipment 87,372 92,277
Other 10,114 27,141
660,435 652,720
Depreciation and amortization 1,024,401 997,771
Total operating expenses $ 10,313,023 $ 10,618,562
55
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
1999 1998
OPERATING ACTIVITIES
Operating income $ 1,129,881 670,461
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization 1,024,401 997,771
(Increase) decrease due to net changes in:
Accounts receivable and unbilled revenue (157,420) (75,937)
Due from other funds 14,671 87,299
Prepaids and deposits 220,855 (169,876)
Inventory (7,659) (17,410)
Increase (decrease) due to net changes in:
Accounts payable 88,227 244,096
Accrued salaries and wages 2,226 15,073
Customer and escrow deposits 44,727 42,140
Due to other funds -
Deferred revenue (7,800) (7,800)
Total adjustments 1,222,228 1,115,356
Net cash provided by operating activities 2,352,109 1,785,817
NONCAPITAL FINANCING ACTIVITIES
Interest paid on bonds (107,325) (132,355)
Reduction in bonds payable (385,000) (395,000)
Operating transfers in - 17,528
Operating transfers out (1,286,889) (465,000)
Net cash used in noncapital financing activities (1,779,214) (974,827)
CAPITAL AND RELATED FINANCING ACTIVITIES
Contributions in aid to construction 179,728
Purchase of utility plant and equipment in service (662,251) (898,457)
Net cash used in capital and related financing activities (662,251) (718,729)
INVESTING ACTIVITIES
Purchase of investment securities (20,148) 709,337
Proceeds from sale of investment securities 32,423 -
Interest received on investments 426,669 483,052
Net cash provided by investing activities 438,944 1,192,389
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
349,588 1,284,650
7,022,765 5,738,115
$ 7,372,353 $ 7,022,765
56
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1999
Capital
Operating Projects
Account Account
ASSETS
Current assets:
Deposits and investments $ 4,572,606
Accounts receivable and unbilled revenue Tess
allowance for estimated uncollectible accounts
of $1,463 1,695,780
Accrued interest receivable 167,788
Prepaids and deposits 34,943
Inventory
Due from other funds 305,329
Total current assets 6,776,446
1,071
1,071
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 538,112
Short-term investments 794,072
Interest receivable on investments 6,067
Total restricted assets 500,000 1,338,251
Bonds issuance cost 85,373
Less accumulated amortization 62,089
Net bond issuance cost 23,284
Utility plant and equipment in service, at cost:
Land and building 1,528,966
Equipment 1,534,850 332,758
Improvements 184,601 -
Waterworks and sanitary sewer system 29,813,730
33,062,147 332,758
Less accumulated depreciation 16,235,730
Net utility plant and equipment in service 16,826,417 332,758
TOTAL ASSETS $ 24,126,147 $ 1,672,080
57
(1 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1999
$ $ 55,489 $ 2,134,920 $ 60,104 $ $ 6,823,119
1,695,780
34,107 - 201,895
345 - 35,288
48,143 - 48,143
(1,071) 305,329
103,971 2,169,027 60,104 (1,071) 9,109,554
11,122 - 11,122
500,000
480,000 480,000
538,112
794,072
4,487 - 10,554
495,609 - 2,333,860
85,373
62,089
23,284
1,528,966
79,228 248,086 2,194,922
184,601
29,813,730
79,228 248,086 - 33,722,219
16,235,730
79,228 248,086 17,486,489
$ 495,609 $ 183,205 $ 2,417,113 $ 60,104 $ (1,071) $ 28,953,187
58
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1999
Capital
Operating Projects
Account Account
LIABILITIES AND FUND EQUITY
Current liabilities:
Payable from current assets:
Accounts payable $ 382,956 $ 8,454
Accrued salaries and wages 92,116
Total current liabilities 475,072 8,454
Current obligations payable from
restricted assets:
Customer and escrow deposits
Current portion of bonds payable
Accrued interest
Bonds payable
Due to other funds
Deferred revenue
Total liabilities
1,144,302
415,000
1,355,000
1,071
57,073
3,447,518
Fund equity:
Contributed capital:
From subdividers 13,789,751
From Environmental Protection Agency 239,617
From Trinity River Authority 15,000
14,044,368
Accumulated depreciation on assets
acquired with contributed capital 7,608,897
Net contributed capital 6,435,471
8,454
Retained earnings:
Reserved for:
Debt service and construction
Recycling 31,311
Emergency 500,000
Outstanding work
Total reserved 531,311
Unreserved 13,711,847 1,663,626
Total retained earnings 14,243,158 1,663,626
Total fund equity 20,678,629 1,663,626
TOTAL LIABILITIES AND FUND EQUITY $ 24,126,147 $ 1,672,080
59
$
(2 of 2)
Bond Service Impact Debt Total
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1999
26,014 $ 33,625 $
17,663
43,677 33,625
$
$ 451,049
109,779
560,828
1,144,302
415,000
31,137 - 31,137
1,355,000
(1,071)
57,073
31,137 43,677 33,625 (1,071) 3,563,340
1,915,807 15,705,558
239,617
15,000
1,915,807 15,960,175
7,608,897
1,915,807 8,351,278
49,472 49,472
31,311
500,000
39,405 39,405
49,472 39,405 - - 620,188
415,000 100,123 2,383,488 60,104 1,915,80 16,418,381
464,472 139,528 2,383,488 60,104 (1,915,807)717,038,569
464,472 139,528 2,383,488 60,104 25,389,847
$ 495,609 $ 183,205 $ 2,417,113 $ 60,104 $ (1,071) $ 28,953,187
60
CITY OF EULESS, TEXAS
WATER AND SEWER FUND
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30,1999
Capital
Operating Projects
Account Account
Operating revenues:
Water service $ 7,034,082 $
Sewer service 3,568,056
Service fees and miscellaneous 648,103
Total operating revenues 11,250,241
Operating expenses:
General and administrative 433,611 86,047
Water production 3,214,048
Water distribution 446,715
Utility engineering 272,438
Sewage collection and treatment 1,763,864
Nondepartmental 2,123,422
Geographic information 167,287
Service center
Depreciation 1,016,640
Amortization 7,761
Total operating expenses 9,445,786 86,047
Operating income (loss) 1,804,455 (86,047)
Nonoperating revenues (expenses)
Investment income 309,667 46,879
Interest on bonds
Total nonoperating revenues
(expenses), net 309,667 46,879
Income (loss) before operating transfers 2,114,122 (39,168)
Operating transfers from other funds or other water
and sewer accounts 385,000 400,000
Operating transfers to other funds or other water
and sewer accounts (2,846,946)
Net income (347,824) 360,832
Add depreciation on fixed asset acquired
with contributed capital 421,331
Increase in retained earnings 73,507 360,832
Retained earnings, beginning of year 14,169,651 1,302,794
Retained earnings, end of year $ 14,243,158 $ 1,663,626
61
Bond Service Impact Debt Year Ended
Reserve Center Fees Service September 30,
Account Account Account Account Eliminations 1999
$ $ $ - $ $ - $ 7,034,082
- - 3,568,056
192,663 840,766
- 192,663 - 11,442,904
118,600 2,155 640,413
3,214,048
- 446,715
- 272,438
- - 1,763,864
2,123,422
167,287
660,435 - 660,435
1,016,640
7,761
660,435 118,600 2,155 10,313,023-
(660,435) 74,063 (2,155) 1,129,881
17,438 - 92,123 466,107
(107,325) (107,325)
17,438 92,123 (107,325) 358,782
17,438 (660,435) 166,186 (109,480) 1,488,663
667,327 498,641 (1,950,968)
(5,911) (385,000) 1,950,968 (1,286,889)
17,438 981 166,186 4,161 201,774
421,331
17,438 981 166,186 4,161 623,105
447,034 138,547 2,217,302 55,943 (1,915,807) 16,415,464
$ 464,472 $ 139,528 $ 2,383,488 $ 60,104 $ (1,915,807) $ 17,038,569
62
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF BALANCE SHEET ACCOUNTS
SEPTEMBER 30, 1999
Total
Operating Construction September 30,
Account in Progress 1999
ASSETS
Current assets:
Deposits and investments $ 502,046 $ 399,141 $ 901,187
Accounts and unbilled revenue
less allowance for uncollectibles of
$6,369 for drainage utility 44,050 44,050
Accrued interest receivable 4,368 4,368
Total current assets 550,464 399,141 949,605
Bond issuance cost 107,473 107,473
Less accumulated amortization 47,767 47,767
Net bond issuance cost 59,706 59,706
Utility plant and equipment
in service, at cost:
Land 89,000 89,000
Equipment 6,510 6,510
Improvements 2,706,729 2,706,729
2,802,239 2,802,239-
Less accumulated depreciation 293,940 293,940
Net utility plant and equipment in service 2,508,299 2,508,299
TOTAL ASSETS $ 3,118,469 $ 399,141 $ 3,517,610
LIABILITIES AND FUND EQUITY
Current liabilities:
�1l VVVI(.o payable $ 35 $ $ 35
Accrued salaries and wages 17,223 - 17,223
Customer and escrow deposits 7,500 7,500
Total current liabilities 17,258 7,500 24,758
Current portion of bonds payable 110,000 110,000
Accrued interest 25,875 25,875
Bonds payable 1,655,000 1,655,000
Total liabilities 1,808,133 7,500 1,815,633
Retained earnings:
Unreserved 1,310,336 391,641 1,701,977
Total fund equity 1,310,336 391,641 1,701,977-
TOTAL LIABILITIES AND FUND EQUITY $ 3,118,469 $ 399,141 $ 3,517,610
63
CITY OF EULESS, TEXAS
DRAINAGE UTILITY FUNDS
AGGREGATING SCHEDULE OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ACCOUNTS
YEAR ENDED SEPTEMBER 30, 1999
Operating revenues:
Drainage fees
Total operating revenues
Operating expenses:
Drainage
Depreciation
Amortization
Total operating expenses
Operating income (loss)
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 (decrease) in
retained earnings
Retained earnings,
beginning of year
Retained earnings,
end of year
Operating
Account
$ 587,710
587,710
156,301
81,774
5,971
244,046
343,664
23,109
(118,433)
(95,324)
248,340
89,000
(156,102)
181,238
1,129, 098
$ 1,310,336
Construction
in Progress
39,096
39,096
(39,096)
10,767
10,767
(28, 329)
125,000
(89, 000)
7,671
383,970
$ 391,641 $
Elimi-
nations
(214, 000)
214,000
Year Ended
September 30,
1999
$ 587,710
587,710
195,397
81,774
5,971
283,142
304,568
33,876
(118,433)
(84,557)
220,011
(31,102)
188,909
1,513,068
$ 1,701,977
64
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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 govemment units, on a
cost reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned
to be used in replacing existing equipment. Funding is provided annually by the
user departments.
Insurance Fund - to account for the revenue and expenses resulting from
providing health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to
the self-insurance program for 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 STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Management Total
Fund Fund Fund Fund 1999 1998
OPERATING ACTIVITIES
Operating income (loss) $ 89,439 $ (97,101) $ (245,692) $ - $ (253,354) $ (481,205)
Adjustments to reconcile operating
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation expense 311,875 311,875 286,120
(Increase) decrease due to
changes in:
Receivables (13,304) (95) (74) (13,473) (19,433)
Due from other govemments 20,561
Increase (decrease) due to net
changes in:
Accounts payable 1,441 (52,958) 276 - (51,241) (7,149)
Accrued salaries and wages - 592 237 674 1,503 22,122
Accrued insurance claims 36,925 (4,272) 32,653 25,000
Total adjustments 313,316 (28,745) (3,854) 600 281,317 327,221
Net cash provided by (used in)
operating activities 402,755 (125,846) (249,546) 600 27,963 (153,984)
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in 300,000 320,000 620,000 680,000
Operating transfers out (38,405) (69,354) (107,759) (148,056)
Net cash provided by
noncapital financing activities 261,595 250,646 512,241 531,944
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment (458,930) - (458,930) (343,931)
Sale of equipment 30,950 30,950
Net cash used in capital and
related financing activities (427,980) (427,980) (343,931)
INVESTING ACTIVITIES
Interest received on
investments 26,337 9,460 22,719 58,516 49,268
Net increase in cash
and cash equivalents 1,112 145,209 23,819 600 170,740 83,297
Cash and cash equivalents,
beginning of year 524,855 170,765 677,146 636 1,373,402 1,290,105
Cash and cash equivalents,
end of year $ 525,967 $ 315,974 $ 700,965 $ 1,236 $ 1,544,142 $ 1,373,402
67
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 govemment units, on a
cost reimbursement basis.
Equipment Replacement Fund - to account for the accumulation of funds planned
to be used in replacing existing equipment. Funding is provided annually by the
user departments.
Insurance Fund - to account for the revenue and expenses resulting from
providing health insurance to the City's employees.
Risk Management Fund - to account for the revenue and expenses applicable to
the self-insurance program for 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, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
ASSETS
Deposits and investments
Accounts receivable
Accrued interest receivable
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 eamings:
Reserved:
Insurance
Workers' compensation
Risk management
Total reserved
Unreserved
Total retained eamings
TOTAL LIABILITIES AND
RETAINED EARNINGS
Equipment
Replacement
Fund
$ 525,967
1,167
527,134
2,502,247
40,390
2,542,637
1,299,836
1,242,801
Insurance
Fund
$ 315,974
26,948
342,922
Risk
Manage-
ment
Fund
$ 700,965
95
10,491
711,551
$ 1,769,935 $ 342,922 $ 711,551
$ 1,441
$ 9,829
21,648
$ 10,033
667
106,925 20,728
1,441 138,402 31,428
1,768,494
1,768,494
41,000
200,000
200,000
41,000 400,000
163,520 280,123
204,520 680,123
$ 1,769,935 $ 342,922 $ 711,551
Cash and
Debt
Manage- Total
ment Fund 1999 1998
$ 1,236
74
1,310
$ 1,544,142
27,117
11,658
1,582,917
2,502,247
40,390
2,542,637
1,299,836
- 1,242,801
$ 1,373,402
13,644
16,155
1,403,201
2,189,496
40,390
2,229,886
1,IL ,L/c
1,107,614
$ 1,310 $ 2,825,718 $ 2,510,815
$ 1,310
$ 21,303
23,625
127,653
1,310 172,581
41,000
200,000
200,000
441,000
2,212,137
2,653,137
$ 72,544
22,122
95,000
189,666
30,566
200,000
200,000
430,566
1,t390,583
2,321,149
$ 1,310 $ 2,825,718 $ 2,510,815
65
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998
Operating revenues:
Insurance premiums
Service fees and
miscellaneous
Equipment
Replacement
Fund
474,780
Total operating revenues 474,780
Operating expenses:
General and
administrative
Insurance costs
Depreciation
Total operating expenses
Operating income (loss)
Non -operating revenues:
Investment income
Gain on sale of
73,466
311,875
385,341
89,439
Insurance
Fund
Risk Cash and
Manage- Debt
ment Manage -
Fund ment Fund 1999
$ 1,502,825 $ 291,439 $ $ 1,794,264
59,260 534,040
1,502,825 291,439 59,260 2,328,304
121,832 293,363
1,478,094 243,768
1,599,926 537,131
(97,101) (245,692)
19,396 9,460 25,163
fixed assets 19,082
Total nonoperating
revenues 38,478 9,460
Income (loss) before
operating transfers 127,917 (87,641)
Operating transfers in
Operating transfers out
Net income
Retained Earnings,
beginning of Year
300,000
(38,405)
121,917 173,954
1,640,577 30,566
25,163
(220,529)
320,000
(69,354)
30,117
650,006
Retained Earnings,
end of Year $ 1,768,494 $ 204,520 $ 680,123 $
59,260
59,260
Total
547,921
1,721,862
311,875
2,581,658
(253,354)
1998
$ 1,805,994
475,872
2,281,866
562,070
1,914,881
286,120
2,763,071
(481,205)
54,019 57,376
19,082
73,101
(180,253)
620,000
(107,759)
331,988
2,321,149
$ 2,653,137
57,376
(423, 829)
680,000
(148,056)
108,115
2,213,034
$ 2,321,149
66
CITY OF EULESS, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 1998
Risk Cash and
Equipment Manage- Debt
Replacement Insurance ment Management Total
Fund Fund Fund Fund 1999 1998
OPERATING ACTIVITIES
Operating income (loss) $ 89,439 $ (97,101) $ (245,692) $ $ (253,354) $ (481,205)
Adjustments to reconcile operating
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation expense 311,875 311,875 286,120
(Increase) decrease due to
changes in:
Receivables (13,304) (95) (74) (13,473) (19,433)
Due from other govemments - - 20,561
Increase (decrease) due to net
changes in:
Accounts payable 1,441 (52,958) 276 - (51,241) (7,149)
Accrued salaries and wages - 592 237 674 1,503 22,122
Accrued insurance claims 36,925 (4,272) - 32,653 25,000
Total adjustments 313,316 i28,7451 (3,854) 600 281,317 327,221
Net cash provided by (used in)
operating activities 402,755 (125,846) (249,546) 600 27,963 (153,984)
NONCAPITAL FINANCING
ACTIVITIES
Operating transfers in - 300,000 320,000 620,000 680,000
Operating transfers out (38,405) (69,354) (107,759) (148,056)
Net cash provided by
noncapital financing activities 261,595 250,646 512,241 531,944
CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of equipment (458,930) (458,930) (343,931)
Sale of equipment 30,950 30,950
Net cash used in capital and
related financing activities (427,980) (427,980) (343,931)
INVESTING ACTIVITIES
Interest received on
investments 26,337 9,460 22,719 58,516 49,268
Net increase in cash
and cash equivalents 1,112 145,209 23,819 600 170,740 83,297
Cash and cash equivalents,
beginning of year 524,855 170,765 677,146 636 1,373,402 1,290,105
Cash and cash equivalents,
end of year $ 525,967 $ 315,974 $ 700,965 $ 1,236 $ 1,544,142 $ 1,373,402
67
CITY OF EULESS, TEXAS
DEA TASK FORCE FUND
BALANCE SHEET
SEPTEMBER 30, 1999
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998
Total
1999 1998
Assets:
Deposits and investments $ 25,491 $ 238,738
Total assets $ 25,491 $ 238,738
Liabilities and Fund Balance:
Due to other
govemments
$ 25,491 $ 238,738
Total liabilities $ 25,491 $ 238,738
68
CITY OF EULESS, TEXAS
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED SEPTEMBER 30, 1999
DEFERRED COMPENSATION:
Assets:
Investments at market
Liabilities:
Deferred compensation
benefits payable
DEA TASK FORCE FUND:
Balance Balance
September 30, September 30,
1998 Additions Deletions 1999
$ 3,573,905 $ $ 3,573,905 $
$ 3,573,905 $ $ 3,573,905 $
Assets:
Deposits and investments $ 238,738 $
$ 213,247 $ 25,491
Liabilities:
Due to other
govemments $ 238,738 $ $ 213,247 $ 25,491
69
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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, 1999 AND 1998
1999
1998
(Restated)
General fixed assets:
Land $ 3,826,944 $ 3,826,944
Buildings 8,795,947 8,795,947
Improvements other than buildings 4,162,919 4,162,919
Construction in progress 2,030,000 1,131,114
Machinery and equipment 7,726,637 7,054,415
Total general fixed assets
$ 26, 542, 447 $ 24, 971, 339
Investment in general fixed assets by source:
General fund $ 7,991,971 $ 7,384,291
Special revenue funds 6,148,028 6,091,879
Capital projects funds 12,402,448 11,495,169
Total investment in general fixed assets
$ 26,542,447 $ 24,971,339
70
CITY OF EULESS, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1999
Function
and Activity
General govemment
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
2,030,000
$ 10,825,947
Improvements
Other than
Buildings
$ 2,443,314
36,758
1,682,847
Machinery
and
Equipment
$ 3,309,764
3,399,733
682,790
334,350
$ 4,162,919 $ 7,726,637
Total
$ 11,202,694
4,986,784
7,988,619
334,350
2,030,000
$ 26,542,447
71
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1999
General Fixed
Assets General Fixed
September 30, Assets
Function 1998 Additions September 30,
and Activity (Restated) and Transfers Deletions 1999
General govemment $ 10,595,014 $ 607,680 $ $ 11,202,694
Public safety 4,944,501 42,283 4,986,784
Culture and recreation 7,974,753 13,866 - 7,988,619
Highways and streets 325,957 8,393 334,350
Construction -in -progress 1,131,114 898,886 2,030,000
$ 24,971,339 $ 1,571,108 $ $ 26,542,447
72
STATISTICAL SECTION
(unaudited)
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
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 1,454,830 18,133,068
1999 3,112,014 9,455,787 815,687 2,060,029 2,319,044 1,896,288 19,658,849
Note: Includes General Fund and Debt Service Fund,
73
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
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
1999 13,800,144 448,751 557,246 101,705 3,349,742 580,572 18,838,160
Note: Includes General Fund and Debt Service Fund.
74
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
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%
1999 6,698,985 6,618,464 98.80% 132,556 6,751,020 100.78% 393,989 5.88%
Source: Tarrant County Tax Assessor/Collector
75
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATEDACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Table 4
Ratio of
Total
Assessed
Real Property Personal Property Total to
Estimated Estimated
Fiscal Assessed A.ttal Assessed Actual Assessed Actual Actual
Year Value Value Value Value Value Value Value
1990 $ 967,682,949 $ 967,682,949 $ 117,494,828 $ 117,494,828 $ 1,085,177,777 $ 1,085,177,777 100%
1991 1,050,436,076 1,050,436,076 108,768,428 108,768,428 1,159,204,504 1,159,204,504 100%
1992 872,811,737 872,811,737 127,990,604 127,990,604 1,000,802,341 1,000,802,341 100%
1993 835,211,175 835,211,175 137,913,007 137,913,007 973,124,182 973,124,182 100%
1994 818,330,766 818,330,766 147,978,520 147,978,520 966,309,286 966,309,286 100%
1995 908,760,987 908,760,987 166,784,893 166,784,893 1,075,545,880 1,075,545,880 100%
1996 955,692,304 955,692,304 172,885,117 172,885,117 1,128,577,421 1,128,577,421 100%
1997 1,009,997,060 1,009,997,060 185,673,796 185,673,796 1,195,670,856 1,195,670,856 100%
1998 1,093,894,921 1,093,894,921 182,729,883 182,729,883 1,276,624,804 1,276,624,804 100%
1999 1,198,361,587 1,198,361,587 197,169,731 197,169,731 1,395,531,318 1,395,531,318 100%
Source: Tarrant Appraisal District
76
CITY OF EULESS, TEXAS
PROPERTY TAX RATES
ALL DIRECT AND OVERLAPPING GOVERNMENTS
PER S100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
City (1)
0.4875000%
0.5408500%
0.5685000%
0.5985637%
0.6186170%
0.6160000%
0.6060000%
0.5449800%
0.5247540%
0.5147540%
School (2) Countyj3)
1.0600% 0.182000%
1.1300% 0.196000%
1.3200% 0.236800%
1.5050% 0.277100%
1.5150% 0.271880%
1.5350% 0.271870%
1.5345% 0.266603%
1.6063% 0.264000%
1.6063% 0.264836%
1.6063% 0.264836%
Hospital (3)
0.153000%
0.177500%
0.205800%
0.229100%
0.242100%
0.244640%
0.239840%
0.234070%
0.234070%
0.234070%
Notes: A. General property taxes for cities are limited by the Texas Constitution to
$2.50 per $100 of assessed valuation.
Table 5
Junior
College (3) Total
0.033000% 1.9155000%
0.034700% 2.0790500%
0.038400% 2.3695000%
0.043292% 2.6530557%
0.046710% 2.6943070%
0.056510% 2.7240200%
0.055460% 2.7023630%
0.057690% 2.7069970%
0.106400% 2.7363170%
0.106400% 2.7263600%
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
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
1999 44,700 1,395,531,318 14,651,586 1.05% 328
(1) Estimates by North Central Texas Council of Govemments as of
January 1, 1999.
(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, 1999
(Unaudited)
Table 7
Percentage Amount
Applicable Applicable
Net Debt to City to City
Jurisdiction Outstanding of Euless of Euless
City of Euless $14,651,586 100.00% $14,651,586
Grapevine-Colleyville Independent
School District 264,258,644 2.12% 5,602,283
Hurst -Euless -Bedford Independent
School District 255,078,462 26.79% 68,335,520
Tarrant County 141,075,000 2.72% 3,837,240
Tarrant County Hospital County 31,188,000 2.72% 848,314
Tarrant County Junior College District 90,540,749 2.72% 2,462,708
Total direct and overlapping debt $95,737,651
Ratio of direct and overlapping
bonded debt to taxable assessed
valuation 6.86%
Per capita direct and overlapping
bonded debt $2,142
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
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%
1999 1,430,000 890,944 2,320,944 19, 658, 849 11.81%
80
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Gross
Revenue
(1)
$ 8,022,688
7,796,635
8,342,993
9,615,195
9,278,791
9,348,238
10, 579, 366
10,605,353
11, 830, 802
11,909,011
Direct
Operating
Expenses
_2_2_, 3_
$ 6,759,516
6,314,851
7,127, 092
7,391,235
7,359,988
7,588,129
8,177,311
8,014,504
9,780,792
9,288,622
Table 9
Net
Revenue Interest
Available and
for Debt Fiscal
Services Principal Charges Total
$ 1,263,172 $ 320,000 $ 327,288 $ 647,288 1.95
1,481,784 290,000 312,925 602,925 2,46
1,215,901 335,000 199,341 5 34, 341 2.28
2,223,960 305,000 185,808 490,808 4.53
1,918,803 325,000 199,875 524,875 3.66
1,760,109 335,000 183,430 518,430 3,40
2,402,055 365,000 170,205 535,205 4.49
2,590,849 370,000 151,480 521,480 4.97
2,050,010 395,000 128,040 523,040 3.92
2,620,389 385,000 107,325 492,325 5.32
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.
Coverage
Ratio
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
1999 621,586 195,397 426,189 105,000 118,433 223,433 1.91
Note: The Drainage Utility Fund had no outstanding debt or debt
service prior to 1992.
(1) Includes operating revenue and interest eamed 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)
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%
1999 44,700 23,743 19,500 2.1%
Notes: 1. Estimates by North Central Texas Council of Governments as
adjusted for 1990 census data.
2. Estimates by City Economic Development
and Southwest Statistical Data
3. Hurst -Euless -Bedford Independent School District
4. Texas Workforce Commission
83
CITY OF EULESS, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1999
(Unaudited)
Table 12
Percentage
1999 of Total
Type of Assessed Assessed
Taxpayer Business Valuation Valuation
Southwestern Bell Telephone Company Telephone Utility $ 36,997,300 2.65%
Bear Creek Apartments, Inc. Apartments 29,885,744 2.14%
Southwest Properties Apartments 23,413,148 1.68%
Somerset Village Partners, LP Apartments 20,181,995 1.45%
Aviaro Associates Ltd. Apartments 20,083,859 1.44%
TU Electric Electric Utility 18,780,460 1.35%
Western Rim Investors Land 18,872,896 1.35%
800 East Ash Lane, Inc. Apartments 12,140,000 0.87%
The Bear Creek Apartments Apartments 13,324,884 0.95%
Bear Creek Norstar USA Apartments 12,195,755 0.87%
$ 205,876,041 14.75%
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
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
1999 1, 571, 329, 201 244 28, 267, 792
Notes: 1. City Records
2. Tarrant Appraisal District
85
CITY OF EULESS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 1999
(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 Attomey 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 1999 was established at $.514754 per $100 of assessed
valuation on 100% of appraised value.
86
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1999
(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 materials:
Books
Other media
74,404
7,565
Education:
Elementary Schools 7
Junior High Schools 2
High School 1
87
CITY OF EULESS, TEXAS
MISCELLANEOUS STATISTICS
SEPTEMBER 30, 1999
(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
1
1
1
1
1
1
1
1
1
h
u
u
11
1
11
1
1
3