HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2014
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City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2014
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2014
C O N T E N T S
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i-viii
City Officials ix
Organizational Chart x
GFOA Certificate of Achievement xi
FINANCIAL SECTION
Independent Auditor's Report 1-3
Management’s Discussion and Analysis (unaudited) 4-17
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 18
Statement of Activities 19
Fund Financial Statements
Governmental Funds
Balance Sheet 20
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 21
Statement of Revenues, Expenditures and Changes in Fund Balances 22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 23
Proprietary Funds
Statement of Net Position 24-25
Statement of Revenues, Expenses, and Changes in Net Position 26
Statement of Cash Flows 27-28
Fiduciary Funds
Statement of Net Position 29
Statement of Changes in Fiduciary Net Position 30
Notes to Basic Financial Statements 31-63
Required Supplementary Information
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 64
Schedule of Funding Progress – OPEB Trust 65
Budgetary Comparison Schedules 66-68
Notes to Required Supplementary Information 69
Combining and Individual Fund Statements and Schedules –
Non-Major Governmental Funds
Combining Balance Sheet 72-73
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 74-75
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2014
C O N T E N T S – CONTINUED
Page(s)
Combining and Individual Fund Statements and Schedules - Continued
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Hotel/Motel Special Revenue Fund 76
Half-Penny Sales Tax Special Revenue Fund 77
Police Drug Enforcement Special Revenue Fund 78
Crime Control and Prevention District Special Revenue Fund 79
Public Safety Grant Special Revenue Fund 80
Police Seized Assets Special Revenue Fund 81
Juvenile Case Special Revenue Fund 82
Glade Parks PID Special Revenue Fund 83
TIRZ #3 Glade Parks Special Revenue Fund 84
Cable PEG Fees Special Revenue Fund 85
Non-Major Proprietary Funds
Combining Statement of Net Position 87-88
Combining Statement of Revenues, Expenses, and Changes in Net Position 89
Combining Statement of Cash Flows 90
Internal Service Funds
Combining Statement of Net Position 92
Combining Statement of Revenues, Expenses, and Changes in Net Position 93
Combining Statement of Cash Flows 94
Escrow Agency Funds
Combining Statement of Changes in Assets and Liabilities 95
STATISTICAL SECTION (Unaudited) Table Page(s)
Table of Contents 96
Net Position by Component 1 97
Changes in Net Position 2 98-99
Fund Balances, Governmental Funds 3 100
Changes in Fund Balances, Governmental Funds 4 101
Assessed and Estimated Actual Value of Taxable Property 5 102
Direct and Overlapping Property Tax Rates 6 103
Principal Property Tax Payers 7 104
Property Tax Levies and Collections 8 105
Ratio of Outstanding Debt by Type 9 106
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 107
Direct and Overlapping Governmental Activities Debt 11 108
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 109
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 110
Demographic Statistics 14 111
Principal Employers 15 112
Full-time Equivalent City Government Employees by Function/Program 16 113
Operating Indicators by Function/Program 17 114
Capital Asset Statistics by Function/Program 18 115
INTRODUCTORY SECTION
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201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.eulesstx.gov
February 10, 2015
To the Honorable Mayor,
Members of the City Council, and
Citizens of the City of Euless, Texas
The Finance Department and City Manager’s Office are pleased to submit the
Comprehensive Annual Financial Report (“CAFR”) for the City of Euless, Texas
(“City”) for the fiscal year ended September 30, 2014. This report complies with State
law which requires that all local governments publish, within six months of the close of
each fiscal year, a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America (“GAAP”) and
audited in accordance with auditing standards generally accepted in the United States of
America by a firm of licensed certified public accountants.
This report is published to provide the City Council, City staff, citizens, bondholders, and
other interested parties with detailed information concerning the financial condition and
activities of the City. The report consists of City management’s representations
concerning the finances of the City. Consequently, management assumes full
responsibility for the accuracy, completeness, and reliability of all of the information
presented in the report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that
is designed both to protect the City’s assets from loss, theft, or misuse and to compile
sufficient reliable information for the preparation of the City’s financial statements in
conformity with GAAP. Because the cost of internal controls should not outweigh the
benefits derived from them, the City’s comprehensive framework of internal controls has
been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all
material respects.
The City’s financial statements have been audited by Weaver, L.L.P., a firm of licensed,
certified public accountants. The goal of the independent audit is to provide reasonable
assurance that the financial statements of the City for the fiscal year ended September 30,
2014, are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements;
assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified (“clean”) opinion that the City’s financial statements for the fiscal year ended
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September 30, 2014, are fairly presented in conformity with GAAP. The independent
auditor’s report is presented as the first component of the Financial Section of this report.
This report is presented in three sections: Introductory, Financial, and Statistical. The
Introductory Section includes this transmittal letter, a listing of City Officials, and an
organizational chart of the City. The Financial Section includes the independent auditor’s
report on the basic financial statements, Management’s Discussion and Analysis
(“MD&A”), basic financial statements, the notes to the basic financial statements, and
combining and individual fund statements and schedules. The MD&A is a narrative
introduction, overview, and analysis to accompany the basic financial statements. This
letter of transmittal is designed to complement, and should be read in conjunction with,
the MD&A. The City of Euless’ MD&A can be found immediately following the
independent auditor’s report. The Statistical Section includes financial and demographic
information relevant to readers of the City’s financial statements. The statistical data is
generally presented on a multi-year basis.
Profile of the City of Euless, Texas
The City of Euless is located in North Central Texas in Northeast Tarrant County
approximately 16 miles west of Dallas and 16 miles east of Fort Worth. Euless is readily
accessible by State Highway 183 which is a multi-lane expressway linking Dallas to Fort
Worth. Other major highways through the City include State Highway 121, State
Highway 360, State Highway 10 and Farm-to-Market Road 157. Euless’ centralized
location provides quick access to both Dallas and Fort Worth metropolitan areas and is
adjacent to Dallas-Fort Worth International Airport (“DFW Airport”) in east Tarrant
County, one of the world’s busiest airports. The City is approximately 16.9 square miles
and serves a population of approximately 53,780.
The City of Euless was incorporated February 24, 1953 and is a home rule city operating
under a Council/Manager form of government. The City Council is comprised of the
mayor and six council members who are elected at large. The Council has the authority to
enact local legislation, levy taxes, adopt budgets, determine policies, incur debt, and
appoint the City Secretary, City Attorney, Municipal Court Judge, and the City Manager.
The City Manager reports directly to the City Council, and is responsible for the daily
management of the various City departments. Council members serve three-year
staggered terms, with two council members elected each year. The Mayor is elected to
serve a three-year term. In addition, several boards and commissions were created to
assist the City Council in deciding matters of policy and procedure and meet on various
issues throughout the year.
The City of Euless provides a full range of services to its citizens including: police and
fire protection; emergency ambulance services; municipal court operations; development
and code services; construction and maintenance of streets and highways, parks, and
recreational facilities; water service and wastewater collection and treatment; and library
operations. The City also operates a top-ranked, 18-hole golf course and conference
center, an adult softball facility, youth athletic complex, and an aquatics center. Internal
services of the City account for risk management, equipment replacement, and employee
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insurance coverage activities on a cost reimbursement basis. A private contractor,
through a franchise agreement, provides solid waste and recycling collections and
disposal services for the City.
Three component units of the City, the Euless Development Corporation, the Euless
Crime Control and Prevention District, and Tax Increment Reinvestment Zone #3 –
Glade Parks, are presented in the financial statements of the City as blended component
units. Data for these organizations is recorded and presented in special revenue funds of
the City’s financial statements. Additional information on these component units can also
be found in Note 1 in the Notes to the Basic Financial Statements.
The annual budget serves as the foundation for the City of Euless’ financial planning and
control. Per the City Charter, the City Manager provides to the City Council the proposed
budget by August 1st each year. The budget is filed with the City Secretary and is open
for public inspection. Upon receipt of the budget, the City Council sets a date for a public
hearing at which time interested citizens may express their opinions regarding the
proposed budget. The Charter requires the Council to adopt the budget by a favorable
majority vote at least ten days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however any revisions that alter the total expenditures of
any fund must be approved by the City Council. Budgetary control has been established
at the individual fund level. Financial reports are produced showing budget to actual
expenditures by line item and are distributed monthly to City departments for review.
Economic Condition
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
City of Euless operates.
The City of Euless is located in Tarrant County, one of the fastest-growing counties in
Texas, in the heart of the Dallas/Fort Worth (“DFW”) Metroplex and adjacent to DFW
Airport. Thus, the economic vitality of the region significantly impacts the economic
health of Euless. DFW’s strategic central location and diverse economy are major factors
contributing to businesses relocating to the area. As a result, DFW is one of the fastest
growing economic regions in the country. Due to the tremendous growth experienced
over the last decade, DFW has become the largest metropolitan area in Texas. DFW
Metroplex, according to the North Texas Commission, with its highly-diversified
economy has a population of over 6.8 million, a Gross Metro Product of $420 billion, a
labor force of over 3.37 million, employment of over 3.15 million, an unemployment rate
of 6.7%, 18 Fortune 500 Firms, and college enrollment of almost 327,000. Such a diverse
economic environment has helped the region weather economic downturns in key sectors
better than other regions in the nation.
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DFW Airport is the world’s third largest in terms of operations and tenth largest in term
of passengers with approximately 165,580 passengers a day and over 60 million
passengers a year. DFW Airport provides service to 204 destinations (DFW Fast Facts at
www.dfwairport.com).
The Alliance Texas development in North Fort Worth is an 18,000-acre master-planned,
mixed-use community which is home to 400 companies, 40,000 employees, 8,750+
single-family homes, and is anchored by the inland port known as the Alliance Global
Logistics Hub. This area offers a variety of commercial real estate options, industrial
space, office space, and retail facilities and has a $4.75 billion annual impact in North
Texas (www.allianceairport.com, Alliance Texas Facts).
During FY2014, Euless realized significant improvement in local revenues. Property
values have been restored to pre-recession levels as have sales tax revenue collections.
Increased revenues have allowed the City to fill some of the vacant positions that have
been held for a number of years. Euless continues to look for new, innovative revenue
opportunities in an effort to minimize the tax burden to its citizens. Management
continually monitors revenue collections in conjunction with expenditure patterns to
ensure the City maintains a healthy financial position.
Taxable value for all residential and commercial property in the City of Euless totaled
approximately $3.05 billion for fiscal year 2014, which represents a 6.7% increase over
the prior year. For fiscal year 2014, sales tax collections, another significant revenue
source for the City, exceeded budget expectations by close to 7% and prior year
collections by over 8%.
The City receives significant revenues from a consolidated rental car facility at DFW
Airport. While a portion is used to fund general operations to reduce the tax burden on
citizens, the City Council has chosen to utilize the majority of this funding source to build
reserves and to cash flow capital projects in lieu of debt issuance. Doing so has allowed
the City to refrain from becoming overly dependent on a volatile resource, while
providing much needed improvements within the community.
The City of Euless has approximately 826 acres of undeveloped land outside of DFW
Airport and another 1,700 developable acres within the airport boundaries. Euless
continues to focus on attracting quality, sustainable development to the area, to pursue
redevelopment opportunities, and to renew the emphasis on business retention. As a
result, over the last several years, Euless has experienced new commercial, industrial,
residential, and multi-family growth. The Glade Parks mixed-use development
consisting of major retail, restaurants, neighborhood pedestrian-oriented retail uses and
residential neighborhoods is currently under construction. During 2014, more than 148
certificates of occupancy were issued to new businesses in Euless. The types of
businesses were from many different sectors including manufacturing, personal and
professional services, medical and dental office, medical labs, and retail/restaurants. This
economic activity is located throughout the City. New businesses included Karachi
Village, Chop House Burger, Potbelly’s, and Montgomery Cranes. Also during 2014, the
City processed 107 new residential housing permits totaling approximately $33.7 million
in new development.
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The Dallas Cowboys AT&T Stadium and Texas Rangers Globe Life Park in Arlington,
within minutes of Euless, continue to attract additional tourism to the City by hosting
major concerts and sporting events, including Super Bowl XLV in 2011, World Series in
2010 and 2011, NCAA Regional Basketball Tournament in 2013, the NCAA Final Four
Basketball Tournament in 2014, and the first College Playoff National Championship
game in 2015.
During the fiscal year, various capital improvement projects located throughout the City
were completed. The projects included the 38th Year CDBG Infrastructure Improvements
and street overlay projects throughout the City. The City finished replacement of
wastewater lines along Ross, Slaughter and East and West Huitt.
The City benefits from a well-educated workforce, with approximately 80% of
graduating seniors in the Hurst-Euless-Bedford School District pursuing further
education. In addition, Euless’ median household income of $54,576 (source: 2009-2013
American Community 5-Year Estimates) compares favorably to $51,900 for the State.
Long-Term Financial Planning
The City of Euless has developed a comprehensive capital improvements document as
well as a multi-year financial plan. Such strategic planning has allowed the City Council
to fund several major infrastructure upgrades, park enhancements, and capital purchases
in a systematic manner while considering the full impact to the operating budget and tax
requirements. Many of these projects have been completed on a pay-as-you-go basis by
utilizing operating revenues, excess reserves, and rental car taxes, thereby avoiding the
issuance of additional debt.
The City Council and citizens of Euless have determined that debt issuance is a viable
method of financing major capital projects. Analysis of potential debt issuance includes
the operating impact the repayment thereof will have on citizens, property tax rates, and
enterprise fund service fee revenues. Per the City’s fiscal policies, long-term debt will not
be used for operating purposes and the life of the debt instruments will not exceed the
useful life of the projects financed. Policy also specifies that bonds with an average life of
20 years or less will be issued to reduce net interest cost and maintain future flexibility by
paying off debt earlier. The majority of the City’s existing long-term debt was used to
finance infrastructure needs and traditional government facilities such as streets, libraries,
and development of parks and open spaces.
The City’s fiscal policies state current expenditures will be paid with current revenues.
Deferrals, short-term loans, or one-time sources will be avoided as budget balancing
techniques. Reserves will be used for emergencies or nonrecurring expenditures, except
when balances can be reduced because levels exceed guidelines or legally-required
minimums.
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Fiscal policies provide for a General Fund reserve equal to between 30 and 60 days of
working capital. At no time shall the reserve fall below 8.3% of the General Fund
expenditure budget (i.e. 30-day level). The current reserve is maintained at 101 days of
operations which equates to approximately 27.6% of next year’s budgeted expenditures.
At the end of the current year, the City was in compliance with this policy.
The City’s fiscal policies for the Water and Wastewater Fund require the maintenance of
a minimum reserve of 45 to 75 days of operations in working capital. The City currently
maintains a 93-day reserve. Water and Wastewater revenue bond covenants require the
City to maintain reserve amounts sufficient to cover the average annual debt service
requirements. This revenue bond reserve is in addition to the working capital required by
the City’s fiscal policies and is maintained in a separate fund. As of September 30, 2014,
the revenue bond reserve totaled $305,180 which slightly exceeds the average annual
debt service on the outstanding debt.
Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. rates
the City’s general obligation debt and sales tax revenue debt at AA and the water and
wastewater revenue debt at AA+. Moody’s Investor Service, Inc. rates the general
obligation debt and water and wastewater revenue debt at Aa2 and the sales tax revenue
debt at A1. Additional information about the rating agencies or the significance of the
ratings provided may be obtained from each agency’s web site.
Major Initiatives
The City has partnered with Tarrant County, surrounding cities, local churches and
businesses to renovate qualifying homes in the community through the Tarrant County
Home Program and the Community Powered Revitalization Program (“CPR”). Through
this partnership, the cities of Hurst, Euless, and Bedford have joined forces to assist
qualifying residents in all three communities.
The City’s updated Facility Master Plan and Americans with Disability Act Transition
Plan address the remaining facility needs of the City. The Parks Master Plan, which
focuses on improving the quality of life for the community, includes additional hike/bike
trails, park amenities and upgrades.
The City’s Capital Improvement Plan addresses the infrastructure needs throughout the
City. With the reconstruction of State Highway 183, the City executed a Master Utility
Adjustment Agreement with the Texas Department of Transportation, North Tarrant
Express (“NTE”) Mobility Partners, and Bluebonnet Contractors to relocate existing
water and wastewater mains along this thoroughfare. The Texas Department of
Transportation awarded a contract to Southgate Constructors for the State Highway 183
reconstruction and expansion from Farm-to-Market Road 157 through the eastern city
limits called the Midtown Express Project. This project is expected to start in 2015. ADA
Infrastructure Improvements (CDBG), overlay projects, replacement of the wastewater
lines along Crane Drive and Town Creek Drive, and replacement of the 24 inch water
valve at Cinnamon, Anice, and Fuller-Wiser are also anticipated to begin in the upcoming
year.
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The City of Euless, along with the City of Arlington and the DFW International Airport,
contracted with the City of Fort Worth for the purchase of reclaimed water from the
Village Creek Wastewater Plant. The City uses reclaimed water to irrigate over 300 acres
of City property including Texas Star Golf Course and the Texas Star Sports Complex.
The use of reclaimed water for irrigation is a viable alternative to potable water that
allows the City to protect valuable assets by continuing to water during drought
conditions.
The first phase of the extension of the reclaimed water line began in fiscal year 2013 and
was completed in 2014. Phase I includes the installation of a booster pump station located
at Midway Road and Bear Creek Drive and service extension 1700 feet north of Harwood
Road. Ultimately, with the completion of all phases of the extension, the availability of
reclaimed water will extend to multiple multi-family properties from Harwood Road to
Mid Cities Boulevard as well as the City’s Bear Creek Park. Additional system expansion
is possible in the future as well.
The City has also been working toward the replacement and enhancement of the City’s
fixed base meter reading system. Funding is being finalized in 2015 for expected
installation in 2016.
Over the last several years, the City has worked with a developer on a major, mixed-use
center located along the southwest corner of Glade Road and Highway 121. This center
will ultimately provide approximately 1.2 million square feet of retail/office and includes
a unique residential component. The City expects the sales tax benefit from this center to
be significant. In an effort to promote development in this area, the City created a Tax
Increment Reinvestment Zone (“TIRZ”) for this development (Glade Parks) and
approved the related project and financing plan. This plan authorizes the City to
undertake certain public improvements associated with the Glade Parks development.
The City also executed a development agreement with Ruby 12 Glade Retail, LLC,
formally known as Glade 121 L.P., which specifies the extent to which the City will
provide the improvements and provides for the conditions under which these
improvements will be constructed or reimbursed. Additionally, the City created the Glade
Parks Public Improvement District (“PID”) which is funded from assessments within the
district. At the 2014 fiscal year-end, portions of the phase three and four infrastructure
improvements were nearing completion.
To further promote development, the City also executed an agreement in 2011 with SLF
– Euless Riverwalk JV, L.P., related to the Riverwalk Development. The City approved a
planned development relating to this project which includes approximately 200 acres
located at the northwest corner of Airport Freeway and State Highway 360 extending
north to Harwood Road. Lennar Homes continues the overall site development work for
the Dominion subdivision at this location. Lennar will be developing a 206-lot
subdivision on fifty-five acres. A 2013 National Homebuilders Association Developer of
the Year, The NRP Group, is constructing a 300-unit urban loft project that will establish
the architectural design quality and theme for the future commercial development.
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Awards and Acknowledgements
The Government Finance Officers Association (“GFOA”) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Euless for its
Comprehensive Annual Financial Report (“CAFR”) for the fiscal year ended September
30, 2013. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government
financial reports. In order to be awarded a Certificate of Achievement, a government unit
must publish an easily readable and efficiently organized CAFR, whose contents conform
to program standards. Such report 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 has been
awarded a Certificate of Achievement for the last 27 consecutive years. We believe that
the current CAFR meets the Certificate of Achievement program requirements and are
submitting it to GFOA for review.
In addition, the City of Euless received the GFOA’s Distinguished Budget Presentation
Award for its annual budget document. The City of Euless has received the Distinguished
Budget Award for the last 24 years. In order to qualify for the award, the City’s budget
document was judged to be proficient in several categories, including as a policy
document, a financial plan, an operations guide, and a communications device.
The preparation of this report on a timely basis could not have been accomplished
without the efficient and dedicated services of the entire staff of the Finance Department.
Appreciation is expressed to City employees throughout the organization, especially
those who were instrumental in the successful completion of this report.
We would like to thank the Mayor and members of the City Council for their support in
planning and conducting the financial operations of the City in a responsible,
professional, and progressive manner. The City was saddened by the passing of Council
Member Glenn Porterfield and acknowledges his service and many contributions over the
last 15 years. His insight and guidance helped provide a strong financial vision for the
City. He will be missed. As always, the City of Euless staff welcomes and appreciates
your comments.
Respectfully Submitted,
Loretta Getchell Janina Jewell
City Manager Director of Finance
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CITY OF EULESS
FISCAL YEAR 2014-2015
LINDA MARTIN, MAYOR
Tim Stinneford, Council Member – Place One
Jeremy Tompkins, Council Member – Place Two
Eddie Price, Council Member – Place Three
Linda Eilenfeldt, Mayor Pro Tem – Place Four
Glenn Porterfield, Council Member – Place Five
(Deceased August 16, 2014)
Perry Bynum, Council Member – Place Six
Gary McKamie, City Manager
Loretta Getchell, Deputy City Manager
Chris Barker, Assistant City Manager
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FINANCIAL SECTION
AN INDEPENDENT MEMBER OF
BAKER TILLY INTERNATIONAL
WEAVER AND TIDWELL, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
2821 WEST SEVENTH STREET, SUITE 700, FORT WORTH, TX 76107
P: 817.332.7905 F: 817.429.5936
1
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Euless, Texas (the City) as of and for the year ended September 30, 2014, and the
related notes to the financial statements which collectively comprise the City’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
To the Honorable Mayor,
City Council and City Manager
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Euless, Texas, as of
September 30, 2014, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter
Change in Accounting Principle
During 2014, as discussed in Note 13 to the basic financial statements, the City implemented
Governmental Accounting Standards Board (GASB) No. 65, Items Previously Reported as
Assets and Liabilities. Beginning net position has been restated to reflect the change in
accounting principle resulting from GASB No. 65. Our opinion is not modified with respect to this
matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the analysis of funding progress, and budgetary
comparison information on pages 4 through 17 and 66 through 68 be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to
be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining
and individual nonmajor fund financial statements and schedules, and statistical tables are
presented for purposes of additional analysis and are not a required part of the financial
statements.
To the Honorable Mayor,
City Council and City Manager
3
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
February 9, 2015
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CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2014
(Unaudited)
Management of the City of Euless offers the readers of the City’s financial statements this
narrative overview and analysis of the financial activities and financial position of the City for
the fiscal year ended September 30, 2014. In the broadest context, the financial well-being of a
government lies in the underlying wealth and willingness of its citizens and property owners to
pay adequate taxes combined with the vision of the government’s elected and appointed
leadership to spend those taxes strategically so that the City’s tax base, service levels, City
assets, and the City’s desirability will be maintained not just for the current year but well into the
future.
Financial reporting is limited in its ability to provide the “big picture” but rather focuses on
financial position and changes in financial position. In other words, are revenues and/or
expenditures higher or lower than the previous year? Has net position (containing both short-
term and long-term assets and liabilities) or fund balances (the current “spendable” assets less
current liabilities”) of the government been maintained? Readers are encouraged to consider the
information presented here in conjunction with the additional information furnished in the letter
of transmittal (pages i-viii of this report) and the statistical section (pages 96-115 of this report)
as well as information in the annual budget and the capital improvement plan along with other
community information found on the city’s website at www.eulesstx.gov. It should be noted that
the Independent Auditor’s Report describes the auditors’ association with the various sections of
this report and that all of the additional information from the website and other City sources are
unaudited.
Financial Highlights
The assets of the City of Euless exceeded its liabilities at the close of the most recent fiscal
year by $195,718,321 (Net position). This number must be viewed in the context that the vast
majority of the City’s net position of $149,323,806 (76%) is net investment in capital assets
and that most capital assets in government do not directly generate revenue nor can they be
sold to generate liquid capital. The net position restricted for specific purposes totaled
$7,425,536 (4%). The remaining $38,968,979 (20%) is unrestricted net position and may be
used to meet the government’s ongoing obligations to citizens and creditors in accordance
with the City’s fund designation and fiscal policies.
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Governmental activities realized an increase in total net position of $6,246,004 and business-
type activities realized a decrease in total net position of $641,073 bringing the net increase
in total net position for the City to $5,604,931.
At the close of the current fiscal year, the City of Euless’ governmental funds reported
combined ending fund balances of $28,443,547, which represents an increase of $1,024,534
in comparison with the prior year. Within this total, $2,377,710 is restricted for debt service;
$398,756 is restricted by bond covenant for capital projects; $120,093 and $164,822 are
restricted for court technology and juvenile case management, respectively; and another
$1,518,511 is restricted for capital projects by developer agreements. Amounts restricted for
cable PEG fees and historical preservation total $405,157 and $1,245, respectively.
Nonspendable fund balance of $82,776 represents fund balance amounts for inventories and
prepaid items. Fund balances of $12,813,519 represent assigned fund balance in the general,
special revenue, and capital projects funds. The unassigned fund balance in the General Fund
of $10,560,958 can be used for any lawful purpose. The General Fund unassigned balance
represents 31% of fiscal year 2014 total fund expenditures.
The City’s total capital assets (net of accumulated depreciation) increased by $2,695,577
which is primarily attributed to completion of capital improvement projects and other asset
additions exceeding current year depreciation expense and asset retirements.
The City’s bonds payable decreased by $5,015,000 or 11%, due to the scheduled repayment
of principal on outstanding bonded debt. The City did not issue any new bonded debt in
fiscal year 2014.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless’ basic
financial statements, which are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains other required supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Euless’ finances, in a manner
similar to a private-sector business.
The statement of net position presents information on all of the City of Euless’ assets and
deferred outflows of resources and liabilities and deferred inflows of resources, with the
difference between them reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Euless is
improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed
during the fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
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and expenses are reported in this statement for some items that will only result in cash receipts
and cash outlays in future fiscal periods (e.g., uncollected taxes and earned but unused
compensated absences).
The government-wide financial statements distinguish between functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include
general government and administration, public safety, highways and streets, development, and
culture and recreation. The business-type activities of the City include water and wastewater
system, drainage system, golf course, and other recreational activities.
The government-wide financial statements include not only the City of Euless (the primary
government), but also the Economic Development Corporation, the Crime Control and
Prevention District, and the Tax Increment Reinvestment Zone #3 – Glade Parks which are
legally separate entities that are financially accountable to the City. A blended presentation has
been used to report the financial information of these component units.
The government-wide financial statements can be found on pages 18-19 of this report.
Fund financial statements. A fund is a self-balancing set of accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Euless, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City can be divided
into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements with
the exclusion of internal service fund activity. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, the reader may better understand the long-term impact of the government’s near-
term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains twenty individual governmental funds. Information is presented separately
in the governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General, Debt Service, and Car Rental Tax
funds, all of which are considered to be major funds. Data from the other seventeen
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governmental funds are combined into a single, aggregate presentation. Individual fund data for
each of these non-major governmental funds is provided in the form of combining statements
elsewhere in this report.
The City adopts an annual appropriated budget for its General and Car Rental Tax major
governmental funds. A budgetary comparison schedule has been provided for each fund to
demonstrate compliance with the adopted budgets.
The basic governmental fund financial statements can be found on pages 20-23 of this report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds
are used to report the same functions presented as business-type activities in the government-
wide financial statements. The City uses enterprise funds to account for its water and wastewater,
drainage utility, and golf operations, as well as several other recreational activities. Internal
service funds are an accounting device used to accumulate resources and allocate costs internally
among the City’s various functions. The City uses internal service funds to account for its
equipment replacement, risk management, and health insurance services. Because these services
predominately benefit governmental rather than business-type functions, a portion of the
activities in these funds is included within governmental activities in the government-wide
financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for Water and Wastewater, Drainage Utility, and Golf, all of which are considered to
be major funds of the City. Data from the other recreational activities are combined into a single,
aggregate presentation. Individual data for each of these non-major enterprise funds is provided
in the form of combining statements elsewhere in this report. The internal service funds are
combined into a single, aggregate presentation in the proprietary fund financial statements.
Individual data for the internal service funds is provided in the form of combining statements
elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 24-28 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 29-30 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 31-63 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City’s progress in
funding its obligations to provide pension and post-employment healthcare benefits to its
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employees. Additionally, schedules comparing budgetary figures and actual results of the
General Fund and the Car Rental Tax Fund are also located in this section of the report. Required
supplementary information can be found on page 64-69 of this report.
The combining statements referred to earlier in connection with non-major governmental funds,
non-major proprietary funds, and internal service funds are presented immediately following the
required supplementary information on pensions, OPEB, and budgetary comparisons. Combining
and individual fund statements and schedules can be found on pages 72-95 of this report.
Government-wide Financial Statement Analysis
As noted earlier, net position and especially net position by category may serve over time as a
useful indicator of a government’s financial position. In the case of the City of Euless, assets
exceeded liabilities by $195,718,321 as of September 30, 2014.
The largest portion of the City’s net position (76%) reflects its investment in capital assets (i.e.,
land, buildings, equipment, improvements, construction in progress, and infrastructure) net of
accumulated depreciation, less any debt used to acquire those assets that is still outstanding. The
City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending and with exception of business-type assets, do not generate direct
revenue for the City. They do represent, however, an obligation on the part of the City to
maintain these assets into the future.
Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (4%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
position of $38,968,979 (20%) may be used to meet the City’s ongoing obligations to citizens,
creditors, and employees.
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Net Position
Governmental Business-type
Amounts shown in 000's activities activities Total
2014 2013 2014 2013 2014 2013
Current and other assets 47,348$ 46,791$ 22,462$ 26,725$ 69,810$ 73,516$
Capital assets 121,531 121,152 65,564 63,247 187,095 184,399
Deferred outflows 974 - 802 - 1,776 -
Total assets and
deferred outflows 169,853 167,943 88,828 89,972 258,681 257,915
Long-term liabilities 32,933 37,492 12,119 12,290 45,052 49,782
Other liabilities 13,837 13,174 4,074 4,142 17,911 17,316
Total liabilities 46,770 50,666 16,193 16,432 62,963 67,098
Net position:
Net investment in capital
assets 94,163 88,228 55,161 52,335 149,324 140,563
Restricted 4,999 4,139 2,426 3,055 7,425 7,194
Unrestricted 23,921 24,910 15,048 18,150 38,969 43,060
Total net position 123,083$ 117,277$ 72,635$ 73,540$ 195,718$ 190,817$
As of September 30, 2014, the City reports positive balances in all three categories of net
position, for the government as a whole, as well as for its separate governmental and business-
type activities. The same situation held true for fiscal year 2013.
The City’s unrestricted net position decreased by $4,092,041 in fiscal year 2014. Restricted net
position realized an increase of $231,935 and the amount invested in capital assets, net of related
debt also increased by $8,760,954. The increase in total net position of $5.6 million resulting
from current year operations flowed to the net investment in capital assets category of net
position. The details of the results of current year operations are found in the table shown on the
following page.
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Changes in Net Position
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2014 2013 2014 2013 2014 2013
REVENUES
Program revenues:
Fees, fines and charges
for services 6,759$ 6,336$ 25,931$ 26,551$ 32,690$ 32,887$
Operating grants and
contributions 633 2,979 - - 633 2,979
Capital grants and
contributions 1,552 1,213 2,037 1,847 3,589 3,060
General revenues:
Property taxes 13,489 12,745 - - 13,489 12,745
Sales taxes 17,525 16,142 - - 17,525 16,142
Car rental taxes 14,083 13,592 - - 14,083 13,592
Mixed beverage taxes 69 61 - - 69 61
Occupancy taxes 343 329 - - 343 329
Gross receipts taxes 4,459 4,209 - - 4,459 4,209
Investment income 70 107 34 40 104 147
Rents and royalties 1,390 1,481 - - 1,390 1,481
Gain (loss) on asset
disposal 85 118 - 42 85 160
Miscellaneous 49 36 - - 49 36
Total revenues 60,506 59,348 28,002 28,480 88,508 87,828
EXPENSES
Culture and recreation 6,425 6,026 - - 6,425 6,026
Development services 1,367 1,155 - - 1,367 1,155
General government 18,018 17,146 - - 18,018 17,146
Highways and streets 3,578 3,334 - - 3,578 3,334
Public safety 24,278 23,324 - - 24,278 23,324
Interest on LTD 1,126 1,227 - - 1,126 1,227
Water and wastewater - - 20,298 18,555 20,298 18,555
Drainage utility - - 1,373 1,246 1,373 1,246
Golf course - - 4,152 4,750 4,152 4,750
Recreational
enterprises - - 2,288 2,313 2,288 2,313
Total expenses 54,792 52,212 28,111 26,864 82,903 79,076
Increase (decrease) in
net position before
transfers 5,714 7,136 (109) 1,616 5,605 8,752
Transfers 532 693 (532) (693) - -
Increase (decrease) in
net position 6,246 7,829 (641) 923 5,605 8,752
Net position, beginning* 116,837 109,008 73,276 72,353 190,113 181,361
Net position ending 123,083$ 116,837$ 72,635$ 73,276$ 195,718$ 190,113$
* Restated for change in generally accepted accounting principles
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Governmental activities. Governmental activities increased the City’s net position by
$6,246,004, thereby accounting for the growth in total net position. Most revenue categories,
including sales taxes, charges for services, and capital grant revenues, exceeded projections.
Sound fiscal management, continued holding of frozen positions, and close monitoring of
revenues and expenses allowed the City to realize an increase in governmental activities net
position before transfers of $5,714,030.
Total revenue for the governmental activities (excluding transfers from business-type
activities) increased from the previous year by $1,157,061. General Revenue, which is
primarily made up of property taxes, sales taxes, and car rental taxes, had a net increase of
$2,741,112. Property tax revenue increased due to an overall increase in both the residential
and commercial tax base. Sales tax collections increased as a result of new business openings
and continued improvement in the local economy. Program revenues, which consist
primarily of fines, fees, and charges for services increased $423,025. All charges for services
categories, with the exception of general and administrative, realized increases in the current
year. Development charges for services increased due to an upswing in local development
activity in both commercial and residential. Public safety service revenues increased
primarily as a result of increased municipal court activity and ambulance revenues. In the
prior year, the receipt of police seized asset funds accounts for close to $2.5 million in
operating contributions. No similar receipts of this magnitude were recorded in the current
year, which results in the decline in operating grants and contributions. Capital grants and
contributions increased significantly in FY2014 as a result of developer contributions of
capital assets.
Total expenses increased by $2,579,744 from FY2013 to FY2014. The raise package for
employees included an increase of 3.50%, which accounts for a large portion of the expense
increase. Furthermore, two new police officers were added in the police seized asset fund,
additional EDC funds were allocated to staffing for the aquatic center, and funding for
several authorized, unfilled positions was restored. General and administrative expenses
increased primarily as a result of rebate payments based on significant revenue increases. The
net position of general governmental operations accounts for 63% of total net position.
Business-type activities. Business-type activities decreased the City’s net position by
$641,073. The change in net position before transfers is a loss of $109,099. Charges for
services program revenues for the business-type activities decreased from the previous year
by $620,019 due primarily to closure of the Texas Star Golf Course for 3½ months in the
summer for renovations. Capital grants and contributions increase by $190,166 due to
developer contributions. Some expense categories realized decreases for the year, but overall
business-type expenses increased 4.6%, a portion of which is attributable to the raise package
mentioned previously. Water purchases increased despite a reduction in consumption of
approximately 7% due to the increase in purchase costs. Wastewater charges increased as a
result of treatment cost increases regardless of a decline in treatment volume of more than 30
million gallons. Net position for business-type activities represents 37% of total net position.
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Expenses and Program Revenues
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City’s financing requirements. In particular, unassigned fund balance may serve as
a useful measure of a City’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Euless’ governmental funds reported combined
ending fund balances of $28,443,547, an increase of $1,024,534 in comparison with prior year.
Approximately 37% or $10.6 million constitutes unassigned fund balance in the general fund that
is available for spending at the City’s discretion. Another $82,776 in non-spendable fund balance
represents amounts invested in inventories and prepayments. Another portion is reserved to
indicate that it is not available for new spending because it has already been committed 1) to pay
debt service ($2,377,710); 2) to pay for specific capital improvements per developer agreements
($1,518,511); 3) restricted by bond covenant for specific capital projects ($398,756); and 4) for a
variety of other restricted purposes ($691,317). Assigned fund balance includes funds which
management has planned to use for a specific purpose as well as residual balances of
governmental funds other than the general fund. Assigned fund balance totals $12,813,519 and
includes assigned fund balance in the general fund of $121,334 and $12,692,185, which
represents residual balances in other governmental funds. See discussion under Fund Balance
Classifications in the Notes to the Basic Financial Statements for additional details on fund
balance.
In the General Fund, the City budgeted for a decrease in fund balance (planned reduction) of
$2,537,838. Due to a positive budget variance in overall revenues and expenditures, the General
Fund ended the year with an increase to fund balance of $959,783, which represents a positive
original budget variance of $3,497,621 resulting primarily from increased revenues of $1.5
million and expenditure savings of more than $2 million.
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Most General Fund revenue categories realized increases over the prior year and many surpassed
budget estimates as well. Property tax collections, sales tax receipts, gross receipts taxes, fines
and fees, licenses and permits, intergovernmental revenues, and other revenues exceeded both
budget and prior year. Sales taxes and licenses and permits grew as a result of new development
and continued improvement in the local economy. Fines and fees increased as a result of
increased collections in municipal court fines and deferred adjudication fees. Property tax
collections exceeded prior year due to the increase in the tax base as mentioned previously.
Ambulance fees exceeded budget parameters, but fell below prior year levels. Jail revenues fell
short of both budget projections and prior year collections, as did investment income.
Personnel and related benefit budgetary savings of approximately $550,000 result primarily from
holding several vacant and funded positions open for at least a portion of the year and rolling
one-time personnel-related funds into next fiscal year. In addition to salary and benefit savings,
general and administrative expenditures realized savings in supplies, training, travel, and
contingencies. Increased rebate incentive payments from the improvement in sales tax revenues
resulted in additional expenditures of approximately $84,000, while the revenue sharing
agreement with the cities of Dallas and Fort Worth realized a budgetary overage of
approximately $81,000. Electric service costs exceeded budget parameters by more than $78,000
due primarily to increased consumption. Aside from salaries and benefits, public safety
expenditure savings were also noted in supplies, travel, training, equipment rentals, and
maintenance. Savings in mowing services, structural maintenance, and chemical supplies are
primarily responsible for the positive budget variance in culture and recreation. The closure of
the South Euless pool resulted in reductions to part-time salaries, maintenance, water service,
and chemical supplies. Capital expenditures including street overlay and lighting realized
budgetary savings of nearly $98,000, while sidewalks and traffic signals exceeded budget by
$8,500. Street overlay was scaled back in the current year while a street condition assessment
was performed and maintenance needs were identified and prioritized. One-time expenditures
were $490,000 under budget as a result of cost savings and timing of purchases (for which the
funds will roll into the next fiscal year).
The Debt Service fund balance decreased $10,600, which is $112,851 less than the anticipated
drawdown of $123,451. The Car Rental Tax fund balance was originally anticipated to increase
$719,859, but instead ended the year with an increase of $1,519,610 resulting from an increase in
net car rental taxes and savings in capital outlay. The non-major governmental funds realized a
combined decrease in fund balance of $1,444,259 primarily resulting from the payoff of the radio
system lease in the police seized asset fund and capital project expenditures offsetting increases
in other funds. The combined net effect of these changes in governmental fund balances totals an
increase of $1,024,534.
Proprietary funds. The City’s proprietary fund statements provide the same type of
information found in the government-wide financial statements for business-type activities, but
in more detail.
Unrestricted net position of the proprietary funds at the close of the fiscal year is: Water and
Wastewater fund $8,193,320; Drainage Utility fund $1,323,286; Golf Course fund $1,070,993;
and all other non-major recreation enterprise funds combined $2,230,737. The Water and
Wastewater fund realized a decrease in operating income resulting predominantly from a decline
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in water consumption and wastewater treatment volume which, in turn, caused reductions in
water and wastewater revenues. Conservation efforts, tiered water rates, and watering restrictions
are primarily responsible for the decline in consumption. Impact fee revenues and developer
contributions were insufficient to offset the net loss, resulting in an overall loss in this fund of
$618,550 for the year.
The decrease in net position of the Drainage Utility fund results primarily from depreciation
expense exceeding developer contributions for the year. Net position for the Golf Course fund
decreased $91,281 due in large part to the 3½ month closure for course renovations commenced
and completed in the summer of 2014. All other non-major recreation enterprise funds combined
realized a decrease of $38,189 which is primarily attributable to one-time expenses in the
Recreation Classes fund and rental expense in the Arbor Daze fund. The combined effect of
these declines in net position totals $791,907.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type
activities as of September 30, 2014, totaled $187,095,104 (net of accumulated depreciation). The
investment in capital assets includes land, buildings, improvements, machinery and equipment,
infrastructure, and construction in progress. The net increase in the City’s investment in capital
assets for the current fiscal year was $2,695,577 or about 1.50%.
Major capital asset events occurring during the current fiscal year included the following:
Capital asset contributions for the year primarily consisted of $82,017 in Community
Development Block Grant (CDBG) contributions for the ADA/TAS infrastructure
improvements throughout the City and developer contributions of $1.3 million in street
infrastructure, more than $1 million in utility infrastructure and $649,002 in drainage
infrastructure.
Street overlay projects located throughout the city in the amount of $507,911 were completed
during the year.
The police department security upgrade project was completed at a cost of $150,000.
Miscellaneous irrigation improvements of nearly $21,000 were also recorded in FY2014.
The aquatic facility project was finished in 2014.
Construction-in-progress related to general government operations of $3,743,481 primarily
consisted of Glade Parks Infrastructure ($2.6 million), Cullum Drive ($976,428) and the
Glade Parks Trail ($44,000).
Capital asset additions for governmental operations include, but are not limited to, an asphalt
zipper, HVAC units, fitness equipment, fire pumper truck, Lifepak 15 defibrillators, lightning
detection system and annual city replacement vehicles and equipment.
Construction-in-progress additions related to business-type operations totaled $353,219 and
consisted of the El Camino Real water line at $301,098 and the Denton drive wastewater line
for $52,121.
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Golf course renovations were completed at the end of the summer at a cost of $581,296. Golf
course equipment and carts were also purchased during the year.
The wastewater line replacements along Ross Avenue, Slaughter Lane, and Huitt Lane were
completed at a cost of $569,322. Well repairs and miscellaneous wastewater rehab were
finished at a cost of $75,178 and $34,831, respectively. The building of a pump station along
Bear Creek Parkway and the construction of the reclaimed water line along Bear Parkway
between Midway Drive and East Ash Lane completed the first phase of the reclaimed water
system extension project. Infrastructure was recorded at a cost of $3.2 million.
Capital asset additions for the business-type activities include equipment.
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000s activities activities Total
2014 2013 2014 2013 2014 2013
Land 26,584$ 26,476$ 3,619$ 3,619$ 30,203$ 30,095$
Buildings 39,234 37,002 2,072 2,198 41,306 39,200
Other improvements 6,029 2,730 10,082 9,914 16,111 12,644
M&E 7,548 6,768 355 395 7,903 7,163
Infrastructure 38,393 38,574 49,083 45,890 87,476 84,464
Construction in
Progress 3,743 9,603 353 1,231 4,096 10,834
Total 121,531$ 121,153$ 65,564$ 63,247$ 187,095$ 184,400$
Governmental Business-type
Additional information on the City’s capital assets can be found in Note 3 on pages 45-47 of this
report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $37,448,648 net of unamortized losses on prior refundings. Of this amount,
$32,220,876 comprises debt backed by the full faith and credit of the government, where
$12,408,317 is the amount of self-supported debt for Softball World, Texas Star Golf Course and
Stars Center. The remainder of the City’s debt, $5,227,772, represents bonds secured solely by
specific revenue sources (i.e. revenue bonds).
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Outstanding Bonded Debt
Governmental Business-Type
Amounts shown in 000s activities activities Total
2014 2013 2014 2013 2014 2013
GO bonds 24,070$ 27,095$ 6,915$ 7,495$ 30,985$ 34,590$
COs 2,780 2,910 - - 2,780 2,910
GO/CO deferred loss (928) (1,061) (616) (669) (1,544) (1,730)
Revenue bonds 1,175 2,050 4,285 4,690 5,460 6,740
Revenue deferred loss (47) (56) (185) (204) (232) (260)
Totals 27,050$ 30,938$ 10,399$ 11,312$ 37,449$ 42,250$
In fiscal year 2014, the City did not issue any additional bonded debt. The City’s total debt
decreased $5,015,000 or 11% during fiscal year 2014, which is attributed to scheduled annual
principal payments.
Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. rates the
City’s general obligation debt and revenue debt at AA and the water and wastewater revenue
debt at AA+. Moody’s Investor Service, Inc. rates the general obligation debt and the water and
wastewater revenue debt at Aa2 and the sales tax revenue debt at A1. Additional information on
the City’s long-term debt can be found in Note 4 on pages 47-51.
Economic Factors and Next Year’s Budgets and Rates
In the FY2014-15 budget, General Fund revenues and transfers are budgeted to increase by 5.4%
from the 2013-14 original budget. Property taxes account for 31% of budgeted revenues and
sales taxes comprise approximately 31% of budgeted revenues. Certified assessed valuations as
of July 1, 2014, increased 6.7% from the preceding year.
As of September 30, 2014, the City’s unemployment rate is 5.0% compared to the State of
Texas, which is 5.2%. In the FY2014-15 budget, sales tax receipts are projected to increase 3%
over prior year estimates plus an additional estimate for upcoming development. The car rental
tax receipts are projected to increase approximately 1.25% over prior year projections.
Baseline budgeted expenditures in the General Fund are projected to increase approximately
5.5% from the FY2013-14 original budget. This increase is primarily attributed to rebates
associated with increased revenue collections and the employee raise package and related costs.
Other baseline increases include cost for maintenance, supplies, and utilities as well as increased
transfers for equipment replacement. The City elected to use excess reserves in various funds to
cash flow capital programs including city computer and technology upgrades, public safety radio
replacement program, career preparation program in conjunction with the local school district,
fire suppression and EMS equipment, continuation of the local selective traffic enforcement
program, equipment and floor resurfacing for the Euless Family Life Center, and various facility
17
maintenance items. In addition, the FY2014-15 budget includes funding for continued
technological advancements in the City’s municipal court operations. Continued funding is also
provided for the City’s contribution to the Tarrant County Home Program, community
revitalization, and street overlay. The property tax rate declined to .4675¢ per $100 of assessed
valuation for FY2014-15.
For the Water and Wastewater Fund, the FY2014-15 budget includes the continuation of the
tiered rate structure for residential and irrigation water volume billing. Under the tiered structure,
customers pay a graduated volume rate based on varying levels of monthly water consumption.
Residential volume rates range from $2.97 to $5.60 per thousand gallons. Monthly water base
rates are increasing by 5.9% for both residential and commercial customers. A wastewater
volume charge of $3.33 per thousand gallons applies to all customer classes and monthly base
rates are increasing by 50¢. Residential wastewater volume charges are capped at a maximum of
12,000 gallons per month. The City budgeted to continue its pay-as-you-go capital expenses in
the Water and Wastewater Fund, which includes approximately $842,000 for replacement of a
24-inch valve at Cinnamon/Anice/Fuller-Wiser and wastewater line replacements along Crane
Drive and Town Creek Drive. The budget also includes funding for miscellaneous water and
wastewater projects and well repairs. One-time capital in the amount of approximately $630,000
is included for computer and technology upgrades, fuel contingency, a sewer camera, a masonry
screening wall, a water line leak detection program, and a transfer to capital projects for pump
rehabilitation.
The Texas Star Golf Course and Conference Centre is a vibrant part of the Euless community.
This facility is well known for world-class golf that is secluded in the midst of the Dallas/Fort
Worth Metroplex. This challenging course has been recognized as a premier municipal facility
by leading golf publications, including Golf Digest and Golfweek. Additionally, Raven’s Grille
ranked in the top five for best service and best place to dine before or after your golf experience
by Avid Golfer. The Conference Centre has 7,000 square feet of divisible space and hosts
business conferences, weddings, concerts, and other events. Course renovations were completed
at the end of FY2013-14, and the course re-opened to rave reviews. Proposed revenues of
$4,465,069 and proposed operating expenses of $4,456,616 comprise the FY2014-15 operating
budget.
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a
general overview of the City’s finances. If you have questions about this report or need
additional information, contact the Finance Department, Attn: Janina Jewell, Director of Finance,
201 North Ector Drive, Euless, Texas 76039, call (817) 685-1626, or e-mail
jjewell@eulesstx.gov.
CITY OF EULESS, TEXAS
GOVERNMENT–WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement
18
Primary Government
Governmental Business-type
Activities Activities Total
Deposits and investments 41,296,887$ 14,481,415$ 55,778,302$
Receivables, net of allowances 7,735,147 3,003,205 10,738,352
Internal balances (2,229,256) 2,229,256 -
Inventories, at cost 8,758 275,474 284,232
Prepaid items 74,018 22,824 96,842
Restricted assets
Deposits and investments 398,756 2,426,451 2,825,207
Net OPEB asset 63,075 28,370 91,445
Capital assets
Land and construction in progress 30,327,268 3,971,764 34,299,032
Other capital assets, net of
accumulated depreciation 91,203,921 61,592,151 152,796,072
Total assets 168,878,574 88,030,910 256,909,484
Deferred charges on refunding 974,523 801,829 1,776,352
Total deferred outflows of resources 974,523 801,829 1,776,352
Accounts payable 11,731,775 1,924,924 13,656,699
Accrued liabilities 1,754,597 219,797 1,974,394
Accrued interest payable 153,961 47,682 201,643
Unearned revenue 196,006 121,239 317,245
Money held in escrow - 1,765,205 1,765,205
Noncurrent liabilities
Due within one year 4,509,422 1,052,810 5,562,232
Due in more than one year 28,423,958 11,066,139 39,490,097
Total liabilities 46,769,719 16,197,796 62,967,515
Net investment in capital assets 94,162,906 55,160,900 149,323,806
Restricted for
Debt service 2,390,501 317,758 2,708,259
Capital projects 398,756 232,300 631,056
Impact fees - 1,876,393 1,876,393
Court technology 120,093 - 120,093
Juvenile cases 164,822 - 164,822
PEG fees 405,157 - 405,157
Developer agreements 1,518,511 - 1,518,511
Historical preservation 1,245 - 1,245
Unrestricted 23,921,387 15,047,592 38,968,979
Total net position 123,083,378$ 72,634,943$ 195,718,321$
ASSETS
LIABILITIES
NET POSITION
DEFERRED OUTFLOWS OF RESOURCES
CITY OF EULESS, TEXAS GOVERNMENT–WIDE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2014 The Notes to the Basic Financial Statements are an integral part of this statement 19 Primary GovernmentOperating Capital Business - Charges Grants and Grants and Governmental TypeProgram Activities Expenses for Services Contributions ContributionsActivitiesActivities TotalPrimary governmentGovernmental activitiesCulture and recreation 6,424,683$ 304,283$ 7,871$ -$ (6,112,529)$ -$ (6,112,529)$ Development services 1,367,005 1,321,040 - - (45,965) - (45,965) General and administrative 18,017,535 1,347,600 15,069 - (16,654,866) - (16,654,866) Highways and streets 3,578,341 218,012 - 1,552,118 (1,808,211) - (1,808,211) Public safety 24,278,144 3,567,917 610,140 - (20,100,087) - (20,100,087) Interest on long-term debt 1,126,017 - - - (1,126,017) - (1,126,017) Total governmental activities 54,791,725 6,758,852 633,080 1,552,118 (45,847,675) - (45,847,675) Business-type activitiesWater and wastewater 20,298,024 19,353,144 - 1,388,261 - 443,381 443,381 Drainage utility 1,373,036 712,971 - 649,002 - (11,063) (11,063) Golf course 4,152,015 3,622,952 - - - (529,063) (529,063) Other recreation enterprises 2,288,337 2,241,920 - - - (46,417) (46,417) Total business-type activities 28,111,412 25,930,987 - 2,037,263 - (143,162) (143,162) Total primary government 82,903,137$ 32,689,839$ 633,080$ 3,589,381$ (45,847,675) (143,162) (45,990,837) General RevenuesTaxesProperty taxes, levied for general purposes 13,488,816 - 13,488,816 Sales taxes 17,525,123 - 17,525,123 Car rental taxes 14,082,518 - 14,082,518 Mixed beverage taxes 69,160 - 69,160 Hotel/motel occupancy taxes 343,312 - 343,312 Gross receipts taxes 4,458,682 - 4,458,682 Investment income 70,374 34,063 104,437 Rents and royalties 1,390,283 - 1,390,283 Gain on sale of capital assets 84,664 - 84,664 Miscellaneous48,773 - 48,773 Transfers531,974 (531,974) - Total general revenues and transfers 52,093,679 (497,911) 51,595,768 Change in net position 6,246,004 (641,073) 5,604,931 NET POSITION, beginning of year, as restated (Note 13)116,837,374 73,276,016 190,113,390 NET POSITION, end of year123,083,378$ 72,634,943$ 195,718,321$ Net (Expense) Revenue andChanges in Net PositionProgram Revenues
CITY OF EULESS, TEXAS
BALANCE SHEET – GOVERNMENTAL FUNDS
SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
20
Debt Car Non-major Total
General Service Rental Tax Governmental Governmental
Fund Fund Fund Funds Funds
Deposits and investments 11,242,033$ 797,811$ 11,471,353$ 10,291,389$ 33,802,586$
Receivables
Property taxes 400,219 169,727 - - 569,946
Accounts receivable 1,010,708 - 2,403,546 263,093 3,677,347
Accrued interest receivable 8,911 - 2,295 6,308 17,514
Due from other governments 1,965,275 - - 1,179,844 3,145,119
Prepaids and deposits 39,314 - 10,000 24,704 74,018
Inventories, at cost 8,758 - - - 8,758
Restricted deposits and investments - - - 398,756 398,756
Total assets 14,675,218$ 967,538$ 13,887,194$ 12,164,094$ 41,694,044$
Accounts payable 1,909,894$ 1,322$ 8,494,603$ 563,531$ 10,969,350$
Accrued liabilities 875,066 3,010 - 134,749 1,012,825
Unearned revenue 140,165 - - 55,841 196,006
Total liabilities 2,925,125 4,332 8,494,603 754,121 12,178,181
Unavailable revenue- property taxes 400,220 166,752 - - 566,972
Unavailable revenue- other 499,416 - - 5,928 505,344
Total deferred inflows of resources 899,636 166,752 - 5,928 1,072,316
Nonspendable
Prepaids, deposits, and inventories 48,072 - 10,000 24,704 82,776
Restricted for
Debt service - 796,454 - 1,581,256 2,377,710
Capital projects - - - 398,756 398,756
Developer agreements - - - 1,518,511 1,518,511
Court technology 120,093 - - - 120,093
Juvenile case management - - - 164,822 164,822
Cable PEG - - - 405,157 405,157
Historical preservation - - - 1,245 1,245
Assigned 121,334 - 5,382,591 7,309,594 12,813,519
Unassigned 10,560,958 - - - 10,560,958
Total fund balances 10,850,457 796,454 5,392,591 11,404,045 28,443,547
Total liabilities, deferred inflows of resources,
and fund balances 14,675,218$ 967,538$ 13,887,194$ 12,164,094$ 41,694,044$
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
21
Total fund balances - governmental funds 28,443,547$
Capital assets of governmental funds are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 118,479,662
Interest payable on long-term debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental funds
balance sheet.(153,961)
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and fleet management, to individual funds. The
assets and liabilities of the internal service funds are net of the amount allocated
to business-type activities.7,135,578
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.1,072,316
Funds comprising the net other post employment benefit asset are not current
financial resources and therefore are not reported in the governmental funds
balance sheet.63,075
Long-term liabilities, including bonds payable, compensated absences (excluding
those of internal service funds), and pension obligations are not due and payable
in the current period and therefore are not reported in the fund financial
statements.(31,956,839)
Net position of governmental activities 123,083,378$
Amounts reported for governmental activities in the statement of net position are
different because:
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
22
Debt Car Non-major Total
General Service Rental Tax Governmental Governmental
Fund Fund Fund Funds Funds
Revenues
General property tax 10,234,363$ 3,123,956$ -$ 110,075$ 13,468,394$
Gross receipts tax 4,322,847 - - 479,147 4,801,994
Mixed beverage tax 69,160 - - - 69,160
General sales tax 10,946,869 - - 6,578,254 17,525,123
Car rental tax - - 14,082,518 - 14,082,518
Fines and fees 4,646,390 - - - 4,646,390
Licenses and permits 1,286,753 - - - 1,286,753
Investment income 26,601 516 8,577 22,186 57,880
DEA revenues - - - 15,316 15,316
Intergovernmental 379,467 - - 82,017 461,484
Rents and royalties 444,364 694,755 - 251,164 1,390,283
Other revenues 475,972 - - 734,114 1,210,086
Total revenues 32,832,786 3,819,227 14,091,095 8,272,273 59,015,381
Expenditures
Current
Culture and recreation 2,844,380 - - 2,714,083 5,558,463
Development services 632,694 - - 385,209 1,017,903
General and administrative 7,841,424 - 9,508,744 361,273 17,711,441
Highways and streets 1,253,036 - - 98,368 1,351,404
Public safety 20,668,937 - - 2,452,520 23,121,457
Debt service
Principal 90,801 3,155,000 - 2,321,603 5,567,404
Interest and fiscal charges 6,919 1,111,535 - 29,615 1,148,069
Capital outlay 700,866 - - 1,971,144 2,672,010
Total expenditures 34,039,057 4,266,535 9,508,744 10,333,815 58,148,151
Excess (deficiency) of
revenues over (under) expenditures (1,206,271) (447,308) 4,582,351 (2,061,542) 867,230
Other financing sources (uses)
Transfers in 2,532,431 436,708 - 1,397,510 4,366,649
Transfers out (366,377) - (3,062,741) (780,227) (4,209,345)
Total other financing sources (uses) 2,166,054 436,708 (3,062,741) 617,283 157,304
Net change in fund balances 959,783 (10,600) 1,519,610 (1,444,259) 1,024,534
Fund balances, beginning of year 9,890,674 807,054 3,872,981 12,848,304 27,419,013
Fund balances, end of year 10,850,457$ 796,454$ 5,392,591$ 11,404,045$ 28,443,547$
CITY OF EULESS, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
23
Net change in fund balances - total governmental funds 1,024,534$
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over the estimated
useful lives and reported as depreciation expense. In addition, governmental
funds report cash proceeds from the disposal of capital assets as revenues, while
only the net gain/loss on the transaction is reported in the statement of activities.
This is the amount of capital expenditures and disposals recorded in the current
period.4,144,606
Depreciation expense on capital assets is reported in the statement of activities
but does not require the use of current financial resources. Therefore,
depreciation expenses are not reported as expenditures in the governmental
funds.(4,461,375)
The repayment of the principal of long-term debt consumes the current financial
resources of governmental funds, but has no effect on net position.5,567,404
Governmental funds report the effect of premiums, discounts, and similar items
when debt is first issued, whereas the amounts are deferred and amortized in the
statement of activities.(44,581)
Current year changes in the long-term liabilities for compensated absences and
pension and other post employment obligations do not require the use of current
financial resources; therefore, they are not reported as expenditures in
governmental funds.(217,664)
Current year changes in accrued interest payables do not require the use of
current financial resources; therefore, they are not reported as expenditures in
governmental funds.15,133
Internal service funds are used by management to charge the costs of certain
activities, such as insurance and fleet management, to individual funds. The net
revenue of the internal service funds is reported with governmental activities net of
the amount allocated to business-type activities.151,090
Certain revenues in the government-wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds.66,857
Change in net position of governmental activities 6,246,004$
Amounts reported for governmental activities in the statement of activities are different
because:
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
SEPTEMBER 30, 2014
(1 of 2)
The Notes to the Basic Financial Statements
are an integral part of this statement.
24
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Current assets
Deposits and investments 9,677,017$ 1,336,793$ 1,269,099$ 2,198,506$ 14,481,415$ 7,494,301$
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$23,336 for water and wastewater and
$246 for drainage utility 2,683,463 79,576 205,326 27,212 2,995,577 318,181
Accrued interest receivable 7,380 - 248 - 7,628 7,040
Prepaids and deposits 270 - 7,843 14,711 22,824 -
Inventory 100,660 - 99,051 75,763 275,474 -
Total unrestricted current assets 12,468,790 1,416,369 1,581,567 2,316,192 17,782,918 7,819,522
Restricted assets
W&WW impact fees - deposits and investments 1,876,393 - - - 1,876,393 -
Revenue bond deposits and investments 232,300 - - - 232,300 -
Revenue bond reserve for debt service 317,758 - - - 317,758 -
Total restricted assets 2,426,451 - - - 2,426,451 -
Total current assets 14,895,241 1,416,369 1,581,567 2,316,192 20,209,369 7,819,522
Non-current assets
Net OPEB asset 20,998 - 3,768 3,604 28,370 -
Property, plant, and equipment in service, at cost
Land 1,576,667 559,826 897,520 584,532 3,618,545 -
Building 97,094 - 3,523,732 488,275 4,109,101 -
Equipment 1,064,000 16,780 760,292 215,309 2,056,381 9,746,769
Improvements 1,033,401 883,184 8,614,304 8,150,654 18,681,543 -
Construction in progress 353,219 - - - 353,219 -
Utility system 68,735,595 26,745,470 - - 95,481,065 -
Total property, plant, and equipment in service 72,859,976 28,205,260 13,795,848 9,438,770 124,299,854 9,746,769
Less accumulated depreciation 35,990,225 11,940,695 6,384,130 4,420,889 58,735,939 6,695,242
Net property, plant, and equipment in service 36,869,751 16,264,565 7,411,718 5,017,881 65,563,915 3,051,527
Total non-current assets 36,890,749 16,264,565 7,415,486 5,021,485 65,592,285 3,051,527
Total assets 51,785,990 17,680,934 8,997,053 7,337,677 85,801,654 10,871,049
Deferred charges on refunding 185,573 - 602,966 13,290 801,829 -
Total deferred outflows of resources 185,573 - 602,966 13,290 801,829 -
ASSETS
Business - Type Activities -
Enterprise Funds
DEFERRED OUTFLOWS OF RESOURCES
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
SEPTEMBER 30, 2014
(2 of 2)
The Notes to the Basic Financial Statements
are an integral part of this statement.
25
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Current liabilities
Payable from current assets
Accounts payable 1,701,786$ 21,285$ 148,948$ 52,905$ 1,924,924$ 762,425$
Accrued salaries and wages 298,653 33,850 86,307 23,680 442,490 6,325
Current portion of bonds payable 410,000 - 445,000 150,000 1,005,000 -
Accrued insurance claims - - - - - 737,465
Unearned revenue - - 121,239 - 121,239 -
Accrued interest 24,179 - 21,953 1,550 47,682 -
Total current liabilities 2,434,618 55,135 823,447 228,135 3,541,335 1,506,215
Non-current liabilities
Customer and escrow deposits 1,696,869 - 68,336 - 1,765,205 -
Net pension obligation 342,681 37,948 67,559 10,924 459,112 -
Bonds payable 3,850,564 - 6,405,732 175,848 10,432,144 -
Total non-current liabilities 5,890,114 37,948 6,541,627 186,772 12,656,461 -
Total liabilities 8,324,732 93,083 7,365,074 414,907 16,197,796 1,506,215
NET POSITION
Net investment in capital assets 33,027,060 16,264,565 1,163,952 4,705,323 55,160,900 3,051,527
Restricted for
Impact fees 1,876,393 - - - 1,876,393 -
Capital projects 232,300 - - - 232,300 -
Debt service 317,758 - - - 317,758 -
Unrestricted 8,193,320 1,323,286 1,070,993 2,230,737 12,818,336 6,313,307
Total net position 43,646,831$ 17,587,851$ 2,234,945$ 6,936,060$ 70,405,687 9,364,834$
Reconciliation to government-wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 2,229,256
Net position of business-type activities 72,634,943$
LIABILITIES
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION –
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
26
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Operating revenues
Water service 10,786,403$ -$ -$ -$ 10,786,403$ -$
Reclaimed water service 167,083 - - - 167,083 -
Wastewater service 7,100,795 - - - 7,100,795 -
Drainage fees - 712,971 - - 712,971 -
Recreation fees - - - 527,281 527,281 -
Insurance premiums - - - - - 5,665,639
Service fees and miscellaneous 1,298,863 - 3,622,952 1,714,639 6,636,454 972,343
Total operating revenues 19,353,144 712,971 3,622,952 2,241,920 25,930,987 6,637,982
Operating expenses
General and administrative 437,533 - - - 437,533 1,151,966
Water production 7,233,678 - - - 7,233,678 -
Water distribution 965,801 - - - 965,801 -
Utility engineering 494,742 - - - 494,742 -
Wastewater collection and treatment 3,479,744 - - - 3,479,744 -
Nondepartmental 3,948,990 - - - 3,948,990 -
Geographic information systems 501,592 - - - 501,592 -
Service center 1,207,013 - - - 1,207,013 -
Drainage - 663,625 - - 663,625 -
Recreation classes - - - 564,986 564,986 -
Golf course - - 1,458,457 - 1,458,457 -
Pro shop - - 377,466 - 377,466 -
Food and beverage - - 1,255,738 - 1,255,738 -
Conference center - - 322,542 - 322,542 -
Cart operations - - 123,898 - 123,898 -
Texas Star Sports Complex - - - 1,313,986 1,313,986 -
Arbor Daze - - - 82,852 82,852 -
Insurance costs - - - - - 5,159,524
Depreciation 1,822,762 709,411 386,010 310,154 3,228,337 725,179
Amortization 19,843 - 27,480 (1,279) 46,044 -
Total operating expenses 20,111,698 1,373,036 3,951,591 2,270,699 27,707,024 7,036,669
Operating loss (758,554) (660,065) (328,639) (28,779) (1,776,037) (398,687)
Nonoperating revenues (expenses)
Gain (loss) on sale of capital assets - - (18,963) 3,345 (15,618) 88,445
Investment income 28,453 2,829 2,011 770 34,063 12,496
Interest expense (122,229) - (178,850) (13,525) (314,604) -
Total nonoperating revenues
(expenses), net (93,776) 2,829 (195,802) (9,410) (296,159) 100,941
Loss before contributions
and transfers (852,330) (657,236) (524,441) (38,189) (2,072,196) (297,746)
Developer contributions 1,388,261 649,002 - - 2,037,263 -
Transfers in 34,455 - 433,160 - 467,615 599,670
Transfers out (1,188,936) (35,653) - - (1,224,589) -
Net income (loss) (618,550) (43,887) (91,281) (38,189) (791,907) 301,924
Net position, beginning, as restated (Note 13) 44,265,381 17,631,738 2,326,226 6,974,249 9,062,910
Net position, end of year 43,646,831$ 17,587,851$ 2,234,945$ 6,936,060$ 9,364,834$
Reconciliation to government-wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 150,834
Change in net position of business-type activities (641,073)$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
27
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
OPERATING ACTIVITIES
Cash received from customers 19,468,625$ 713,069$ 3,648,744$ 2,245,822$ 26,076,260$ 7,170,859$
Cash payments to suppliers
for goods and services (15,299,613) (372,516) (2,012,365) (1,496,122) (19,180,616) (6,268,998)
Cash payments to employees
for services (3,099,793) (277,160) (1,475,614) (461,511) (5,314,078) (91,644)
Net cash provided by
operating activities 1,069,219 63,393 160,765 288,189 1,581,566 810,217
NONCAPITAL FINANCING ACTIVITIES
Transfer in 34,455 - 433,160 - 467,615 599,670
Transfer out (1,188,936) (35,653) - - (1,224,589) -
Net cash provided by (used in)
noncapital financing activities (1,154,481) (35,653) 433,160 - (756,974) 599,670
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees 313,487 - - - 313,487 -
Interest paid on bonds (123,397) - (179,925) (13,900) (317,222) -
Principal paid on bonds (405,000) - (430,000) (150,000) (985,000) -
Purchase of capital assets (3,035,080) (215,346) (594,383) (15,034) (3,859,843) (1,578,635)
Proceeds from sale of capital assets - - 19,430 3,345 22,775 246,445
Net cash used in capital
and related financing activities (3,249,990) (215,346) (1,184,878) (175,589) (4,825,803) (1,332,190)
INVESTING ACTIVITIES
Interest received on investments 29,422 3,762 1,763 770 35,717 7,573
Net cash provided by investing
activities 29,422 3,762 1,763 770 35,717 7,573
Net change in cash and cash
equivalents (3,305,830) (183,844) (589,190) 113,370 (3,965,494) 85,270
Cash and cash equivalents,
beginning of year 15,409,298 1,520,637 1,858,289 2,085,136 20,873,360 7,409,031
Cash and cash equivalents, end of year 12,103,468$ 1,336,793$ 1,269,099$ 2,198,506$ 16,907,866$ 7,494,301$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – CONTINUED
YEAR ENDED SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
28
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Reconciliation of operating loss
to net cash provided by
operating activities
Operating loss (758,554)$ (660,065)$ (328,639)$ (28,779)$ (1,776,037)$ (398,687)$
Adjustments to reconcile operating
loss to net cash provided
by operating activities
Depreciation and amortization 1,842,605 709,411 413,490 308,875 3,274,381 725,179
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue 108,466 98 21,700 3,902 134,166 (187,571)
Prepaids and deposits 285 - 384 3,727 4,396 54,775
Inventory 185 - 1,884 (8,298) (6,229) -
Net OPEB asset 34,106 364 9,867 1,076 45,413 -
Net pension obligation 7,539 266 (10,946) 647 (2,494) -
Accounts payable (166,730) 16,806 45,258 2,762 (101,904) 369,570
Accrued salaries and
wages (5,701) (3,487) 3,676 4,277 (1,235) (5,189)
Accrued insurance claims - - - - - 252,140
Customer and escrow
deposit 7,018 - - 7,018 -
Unearned revenue - - 4,091 - 4,091 -
Net cash provided by
operating activities 1,069,219$ 63,393$ 160,765$ 288,189$ 1,581,566$ 810,217$
Noncash financing activities
Developer contributed assets 1,074,774$ 649,002$ -$ -$ 1,723,776$
Reconciliation of cash to balance sheet:
Cash - current 9,677,017$ 1,336,793$ 1,269,099$ 2,198,506$ 14,481,415$
Cash - restricted 2,426,451 - - - 2,426,451
Cash and cash equivalents 12,103,468$ 1,336,793$ 1,269,099$ 2,198,506$ 16,907,866$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – FIDUCIARY FUNDS
SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
29
Agency OPEB
Funds Trust Fund
ASSETS
Investments at fair value
Money market account 5,009,102$ 76,105$
Fixed income funds - 1,141,263
Equity funds - 1,826,812
Total assets 5,009,102$ 3,044,180
LIABILITIES
Due to other entities 5,008,983$ 400
Refunds payable 119 -
Total liabilities 5,009,102$ 400
NET POSITION
Held in trust for OPEB 3,043,780$
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
OPEB TRUST FUND
YEAR ENDED SEPTEMBER 30, 2014
The Notes to the Basic Financial Statements
are an integral part of this statement.
30
OPEB
Trust Fund
ADDITIONS
Employer contributions 825,930$
Other contributions 279,063
Investment income
Net increase in fair value of investments 196,114
Less: investment expense (13,941)
Net investment earnings 182,173
Total additions 1,287,166
DEDUCTIONS
Insurance claims 592,193
Administrative expenses 105,911
Total deductions 698,104
Change in net position 589,062
NET POSITION, beginning 2,454,718
NET POSITION, ending 3,043,780$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
31
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (City) was incorporated on February 24, 1953. The City operates
under a Council-Manager form of government and provides the following services as
authorized by its charter: general government, police and fire protection, emergency
ambulance service, road and traffic signal maintenance, water and wastewater
operations, drainage system, parks and recreational facilities, courts, library services,
planning land use, building inspection, and traffic control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally
accepted in the United States of America (GAAP) applicable to state and local
governments. GAAP for local governments include those principles prescribed by the
Governmental Accounting Standards Board (GASB), the American Institute of Certified
Public Accountants in the publication entitled Audits of State and Local Governmental
Units, and by the Financial Accounting Standards Board (when applicable).
The more significant accounting policies of the City are described as follows:
Financial Reporting Entity
As required by GAAP, these basic financial statements present the primary government
and its component units, entities for which the government is considered to be financially
accountable. The blended component units, although legally separate entities, are, in
substance, part of the primary government’s operations. As such, data from these units
is combined with data of the primary government.
Blended Component Units
The City includes three component units in the financial statements. The Euless
Development Corporation (Corporation) is used to account for the accumulation of
half-cent sales tax proceeds dedicated to building and improving City parks and
facilities, enhancing library services, and stimulating economic development activities
within the City. The Euless Crime Control and Prevention District (District) is used to
account for the accumulation and use of quarter-cent sales tax proceeds dedicated
for crime reduction programs. The Corporation and the District are reported as
special revenue funds of the primary government. The Boards of Directors of both
component units are substantively the same as the City Council. There are seven
directors on each board, four of whom are council members, which constitutes a
voting majority of the City Council. The remaining three board members are
residents of the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
32
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Financial Reporting Entity – Continued
Blended Component Units – Continued
Upon dissolution of the Corporation or the District, the entity’s assets will be
distributed to the City. Each component unit provides all of its services to the City.
The financial statements for the units were obtained from the respective Boards of
Directors. Financial information for both entities may be obtained from the City.
The Tax Increment Reinvestment Zone #3 - Glade Parks (TIRZ #3) is also reflected
as a blended component unit of the City and is reflected in the financial statements
as a special revenue fund. TIRZ #3 was created to stimulate development and
enhance the value of taxable real property within the boundaries of the zone. Tarrant
County and Tarrant County College District are taxing entities participating in TIRZ
#3. The Board of Directors of TIRZ #3 is substantively the same as the City Council,
and management of the City has operational responsibility for TIRZ #3. The Board is
comprised of seven directors, four of whom are council members, which constitutes
a voting majority of the Board. The remaining three board members are
representatives selected by the other participating taxing entities and the Tarrant
County Hospital District.
Basis of Presentation
The government-wide financial statements (the statement of net position and the
statement of activities) report information on all of the activities of the City, except
fiduciary funds. The effect of interfund activity, with the exception of interfund services
provided or used, within the governmental and business-type activities columns, has
been removed from these statements. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on user fees and charges for
support.
The statement of activities demonstrates the degree to which the direct expenses of a
given program are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific program. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given program and 2) operating or capital grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular program. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
33
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Fund Financial Statements
The City segregates transactions related to certain functions or activities in separate
funds in order to aid financial management and to demonstrate compliance with
various legal provisions. Separate statements are presented for governmental funds,
proprietary funds, and fiduciary funds, even though the latter are excluded from the
government-wide financial statements. These statements present each major fund
as a separate column on the fund financial statements; all non-major funds are
aggregated and presented in a single column.
Governmental funds are those funds through which most governmental functions are
typically financed. The measurement focus of governmental funds is on the sources,
uses, and balances of current financial resources. The City has presented the
following major governmental funds:
General Fund
The General Fund is the main operating fund of the City. This fund is used to
account for all financial resources not accounted for in other funds. All general
tax revenues and other receipts that are not restricted by law or contractual
agreement to some other fund are accounted for in this fund. General operating
expenditures, fixed charges, and capital improvement costs that are not paid
through other funds are paid from the General Fund.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of financial
resources for the payment of principal, interest, and related costs on general
long-term debt paid primarily from property taxes levied by the City. The fund
balance of the Debt Service Fund is restricted exclusively for debt service
expenditures.
Car Rental Tax Fund
The Car Rental Tax Fund is used to account for revenues received from the
collection of short-term motor vehicle rental taxes and the expenditures thereof.
Per contractual agreement, revenues are shared with the cities of Dallas and Fort
Worth. The City’s portion of the revenues is used primarily for debt reduction,
one-time capital projects, and to maintain the property tax rate.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
34
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Proprietary funds are accounted for using the economic resources measurement
focus and the accrual basis of accounting. The accounting objectives are
determinations of net income, financial position, and cash flow. All assets and
liabilities are included on the statement of net position. The City has presented the
following major proprietary funds:
Water and Wastewater Fund
Water and Wastewater Fund is used to account for the acquisition, operation and
maintenance of a municipal water and wastewater utility, supported primarily by
user charges.
Drainage Utility Fund
Drainage Utility Fund is used to account for the acquisition, operation, and
maintenance of a municipal drainage utility, supported primarily by user charges.
Golf Course Fund
Golf Course Fund is used to account for operation and maintenance of the City’s
golf course, supported primarily by user charges.
Additionally, the City reports the Internal Service Funds, which are used to account
for equipment replacement, risk management, and self-funded health insurance
coverage and disability insurance provided to employees of the City.
The City also reports five fiduciary funds in the financial statements. The Stars
Center Escrow Fund accounts for investments that will be held on behalf of the
Dallas Stars until the debt issued for the specific purpose of purchasing the Star
Center is fully repaid. The Glade Parks Escrow agency fund, Glade Parks III Escrow
agency fund, and Glade Parks IV Escrow agency fund accounts for developer funds
deposited with the City for contractor payments for public improvements in the Glade
Parks Development on behalf of the developers. Upon satisfactory completion, any
excess funds will be returned to the developers or a designee. The OPEB Trust Fund
accounts for the accumulation and use of resources for benefit payments related to
post-employment health care.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
35
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services
and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. Operating expenses for the proprietary funds include the cost of
personnel and contractual services, supplies, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to
when revenues and expenditures are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of the measurement
made, regardless of the measurement focus applied.
The government-wide statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets, deferred
inflows/outflows of resources, and liabilities (whether current or noncurrent) are included
on the statement of net position and the operating statements present increases and
decreases in total net position. Under the accrual basis of accounting, revenues are
recognized when earned, including unbilled water, wastewater, and drainage services
which are accrued. Expenses are recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial
resources measurement focus and are accounted for using the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized
when susceptible to accrual; i.e., become both measurable and available. “Measurable”
means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. The City considers property taxes and other revenues as available
if they are collected within 60 days of year-end. Expenditures are recorded when the
related fund liability is incurred. However, debt service expenditures, as well as
expenditures related to compensated absences and other long-term liabilities are
recorded only when payment is due.
The significant revenues susceptible to accrual are property taxes, franchise fees,
licenses, charges for service, interest income, and intergovernmental revenues. Sales
taxes collected and held by the state at year-end on behalf of the City are also
recognized as revenue. All other governmental fund revenues are recognized when
received.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
36
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash accounts or individual fund 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 statement of cash flows, the City considers all highly liquid
investments 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. All other investments are reported at
fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its
agencies; obligations of the State of Texas or its agencies; and certain other obligations,
repurchase agreements, money market mutual funds, and certificates of deposit within
established criterion.
Taxes
Property taxes are levied for appropriation for the fiscal year beginning on October 1, are
due October 1, attach as an enforceable lien on property as of January 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 not to be available are treated as
deferred inflows of resources. 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 $.4700 per $100 of assessed valuation ($.4700 per $100
last year) and assessed valuation is approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as 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 merchandise for
resale for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide
services occurring in the subsequent fiscal year and are recognized as expenditures
utilizing the consumption method.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
37
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Interfund Receivables and Payables
Any residual balances outstanding between the governmental activities and business-
type activities are reported in the government-wide financial statements as “internal
balances.”
Transactions Between Funds
Interfund services provided and used are accounted for as revenues and expenditures
or expenses. Transactions that constitute reimbursements to a fund for expenditures or
expenses initially made from it that are properly applicable to another fund, are recorded
as expenditures or expenses in the reimbursing fund and as a reduction of expenditures
or expenses in the fund reimbursed. All other interfund transactions are recorded as
transfers.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are
reported in the applicable governmental or business-type activities columns in the
government-wide financial statements and in the fund financial statements for
proprietary funds. All capital assets are recorded at historical cost or estimated historical
cost if actual historical cost is not available. Donated assets are recorded at fair market
value on the date donated. Repairs and maintenance are recorded as expenses.
Renewals and betterments are capitalized. Interest has not been capitalized during the
construction period on property, plant, and equipment.
Assets capitalized have an original cost of $5,000 or more, and over one year of useful
life. Depreciation has been calculated on each class of depreciable property using the
straight-line method. Estimated useful lives are as follows:
Buildings 33 1/3 years
Water and wastewater system 33 1/3 years
Storm drainage system 33 1/3 years
Infrastructure 7 - 40 years
Machinery and equipment 5 - 15 years
Improvements 25 years
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. The
City's policy is to pay the employee accumulated vacation upon termination. The City
does not pay employees for accumulated sick leave upon termination. Vacation pay
accrued in the proprietary fund financial statements is reported as accrued salaries and
wages (a current liability). Compensated absences are recorded in governmental funds
as they mature (i.e. as taken). The liability for governmental fund compensated
absences is typically liquidated in the general fund, the juvenile case fund, the half-
penny sales tax fund, and the crime control and prevention district fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
38
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
General Fund
Debt Service
Fund
Car Rental
Tax Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Nonspendable 48,072$ -$ 10,000$ 24,704$ 82,776$
Restricted for
Debt service - 796,454 - 1,581,256 2,377,710
Capital projects - - - 398,756 398,756
Developer agreements - - - 1,518,511 1,518,511
Court technology 120,093 - - - 120,093
Juvenile case processing - - - 164,822 164,822
PEG fees - - - 405,157 405,157
Historical preservation - - - 1,245 1,245
Assigned
Capital projects - - - 2,941,236 2,941,236
Betterments 48,591 - - - 48,591
Emergency/radio systems 47,230 - - - 47,230
Tourism and conference facilities - - - 252,551 252,551
Parks, library, and economic
development - - - 2,307,461 2,307,461
Police department - - - 1,732,839 1,732,839
Grants - - - 75,507 75,507
Other 25,513 - 5,382,591 - 5,408,104
Unassigned 10,560,958 - - - 10,560,958
Total 10,850,457$ 796,454$ 5,392,591$ 11,404,045$ 28,443,547$
Reported in
Nonspendable: This classification includes amounts that cannot be spent because they
are either (a) not in spendable form or (b) are legally or contractually required to be
maintained intact. The City has classified prepaid items and inventory as being
nonspendable.
Restricted: This classification includes amounts for which constraints have been placed
on the use of the resources either (a) externally imposed by creditors (such as through a
debt covenant), grantors, contributors, or laws or regulations of other governments, or
(b) imposed by law through constitutional provisions or enabling legislation.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
39
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
The City has recorded the following restrictions at year-end:
a. Restricted for debt service represents that portion of fund equity legally
restricted for retirement of bond principal and payment of interest and related
charges.
b. Restricted for capital projects represents that portion of fund equity legally
restricted by debt covenant for capital projects.
c. Restricted for developer agreements represents the portion of fund equity
that must be used for future improvements to various development areas
within the City.
d. Restricted for court technology represents funds collected from a court
technology fee that must be used to upgrade court systems.
e. Restricted for juvenile case processing represents funds collected from a fee
on municipal court citations that must be used to support the expenditures
associated with juvenile case processing.
f. Restricted for PEG fees represents the portion of fund equity that must be
used for the expansion of the City’s public, educational, and government
access channel.
g. Restricted for historical preservation represents donations that must be used
toward the preservation of Euless historical sites.
Committed: This classification includes amounts that can be used only for specific
purposes pursuant to constraints imposed by formal action (ordinance) of the City
Council. These amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by taking the same type of action that
was employed when the funds were initially committed. This classification also
includes contractual obligations to the extent that existing resources have been
specifically committed for use in satisfying those contractual requirements. The City
has no committed fund balance at year-end.
Assigned: This classification includes amounts that are constrained by the City’s
intent to be used for a specific purpose but are neither restricted nor committed. The
City Council delegates the authority for determining this intent to the City Manager.
Assignments are made at the City Manager's discretion, but generally represent
items for which specific funds have been informally dedicated internally. This
classification also includes the remaining positive fund balance for all governmental
funds except for the General Fund. The City has recorded the following assignments
at year-end:
a. Assigned for capital projects represents revenue sources that are to be used
for capital projects for the City.
b. Assigned for betterment represents funds donated by citizens that are to be
used for the betterment of the community.
c. Assigned for emergency/radio systems represents funding that is to be used
to upgrade emergency and radio systems.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
40
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
d. Assigned for tourism and conference facilities represents funds to promote
the City through tourism, conference booking, and historical preservation.
e. Assigned for parks, libraries, and economic development represents funds
from sales taxes that are to be used for park improvements, library activities,
and economic development throughout the City.
f. Assigned for the police department are funds from the Crime Control and
Prevention District and the sale of assets seized in connection with drug
arrests to be used for police department expenditures.
g. Assigned for grants are funds from grant revenues that are to be spent in
accordance with grant provisions.
h. Assigned for other are funds from specific revenues that are to be spent for
facility remodel, victim assistance, and injured animals as well as the residual
balance in the Car Rental Tax special revenue fund.
Unassigned: This classification includes all amounts that are not included in other
spendable classifications.
When available, the City uses restricted fund balances first, followed by committed
resources, assigned resources, then unassigned resources, as appropriate
opportunities arise. However, the City reserves the right to selectively spend
unassigned resources first to defer the use of these other classified funds.
Net Position
Net position represents the difference between assets and deferred outflows of
resources and liabilities and deferred inflows of resources of governmental and
business-type activities and proprietary funds. Net investment in capital assets consists
of capital assets, net of accumulated depreciation, plus capital-related deferred outflows
of resources, reduced by the outstanding balances of any borrowing and capital related
deferred inflows of resources used for the acquisition, construction, or improvements of
those assets, plus unspent debt proceeds. Net position is reported as restricted when
there are limitations imposed on its use, either through the enabling legislation adopted
by the City or through external restrictions imposed by creditors, grantors, or laws or
regulations of other governments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
41
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures
As of September 30, 2014, the City’s portfolio contained the following investments:
% of Rating
Book Value Fair Value Portfolio WAM Rating Agency
Overnight pools
TexPool 13,160,618$ 13,160,618$ 20.62% 51 AAAm S&P
TexStar 15,027,054 15,027,054 23.54% 50 AAAm S&P
Bank of Texas 6,804 6,804 0.01% 52 A-/A2 S&P/Moodys
Total overnight 28,194,476 28,194,476 44.17%
Investment securities
FFCB 15,152,420 15,163,279 23.75% 73 AA+/Aaa S&P/Moody's
FHLB 17,203,364 17,213,435 26.97% 58 AA+/Aaa S&P/Moody's
FHLMC 500,653 500,250 0.78% 1 AA+/Aaa S&P/Moody's
FNMA 1,302,350 1,300,900 2.04% 16 AA+/Aaa S&P/Moody's
FAMCA 1,500,000 1,459,940 2.29% 5
Total investment securities 35,658,787 35,637,804 55.83%
Total portfolio
63,853,263$ 63,832,280$ 100.00% 153
Investment Type
not rated
Weighted average maturity (WAM) of the portfolio by investment type categories
reflected in the previous table is stated in days. For the investment pools, the Reset
WAM is presented. Investment type acronyms displayed in the previous table are
defined as follows: FFCB – Federal Farm Credit Bank, FHLB – Federal Home Loan
Bank, FHLMC – Federal Home Loan Mortgage Corporation, FNMA – Federal National
Mortgage Association, and FAMCA – Federal Agricultural Mortgage Corporation. The
rating agency acronyms are defined as follows: S&P – Standard and Poor’s Ratings
Services, a division of the McGraw-Hill Companies, Inc. and Moody’s – Moody’s Investor
Service, Inc. Additional information about the rating agency or the significance of the
ratings provided may be obtained from the agency’s web site.
Deposits
State statutes and the City’s investment policy require that all uninsured deposits in
financial institutions be fully collateralized by U.S. Government obligations or its
agencies or instrumentalities or direct obligations of Texas or its agencies or
instrumentalities that have a market value of not less than the principal amount of the
deposits. The City’s deposits were fully insured or collateralized as required by state
statutes as of September 30, 2014. At year-end, the carrying amount of the City’s
deposits was $269,235, with a bank balance of $462,182.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
42
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures – Continued
Deposits – Continued
The bank balance is covered by $250,000 by Federal Depository Insurance Corporation
(FDIC) insurance and pledged collateral. The additional collateral is held by The Federal
Reserve Bank in the City’s name under a joint safekeeping agreement with Frost
National Bank. The market value of the collateral at the close of the fiscal year was
$2,198,092.
Investments
State statutes, City bond ordinances, and City resolutions authorize the City’s
investments. The City is authorized to invest in obligations of the U.S. Government and
its agencies and instrumentalities, obligations of the State of Texas and its agencies and
instrumentalities, fully insured or collateralized certificates of deposit, fully-collateralized
repurchase agreements and reverse repurchase agreements, government pools, and
no-load SEC-registered money market funds consisting of any of these securities listed.
Because the City is responsible for the investment portfolio of its component units, the
City’s investment practices and policies disclosed herein apply equally to its component
units. During the year ended September 30, 2014, the City did not own any types of
securities other than those permitted by statute.
The City’s investment pools are 2a7-like pools. A 2a7-like pool is one which is not
registered with the Securities and Exchange Commission (SEC) as an investment
company, but nevertheless has a policy that it will, and does, operate in a manner
consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. This type of
pool uses amortized investment costs rather than market values to compute participant
share values. Furthermore, the pools in which the City is currently participating seek to
maintain a stable $1 net asset value per share or unit. Accordingly, the fair value of the
City’s position in these pools is substantially the same as the market value of the shares
in each of the pools.
TexPool falls under the purview of the Texas Comptroller of Public Accounts
(Comptroller) who is responsible for oversight of TexPool operations. Federated
Investors is responsible for managing pool assets and day-to-day operations. TexStar is
duly chartered and administered by First Southwest Asset Management, Inc. and
JPMorgan Chase Investment Management, Inc. TexStar has established a governing
board that is partially comprised of pool participants. Duties of the governing board
include oversight responsibility. The Comptroller and the governing board exercise
oversight of the pools’ activities via daily, weekly, and monthly reporting requirements.
Additionally, per the requirements of the Public Funds Investment Act (PFIA), all pools
will maintain an AAA or equivalent rating from at least one nationally recognized rating
agency. The PFIA also requires an annual examination of the financial statements of the
pools by an independent certified public accounting firm. In connection with the financial
audit, a compliance audit of management controls on investments and adherence to the
investment policies is also required.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
43
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Interest Rate Risk
In compliance with the City’s Investment Policy, as of September 30, 2014, the City
minimized the interest rate risk, the risk relating to the decline in market value of
securities in the portfolio, by: limiting the weighted average maturity to 365 days and the
stated maturity to two years or less, with the exception of securities purchases related to
reserve funds; structuring the investment portfolio so that securities matured to meet
cash requirements for ongoing operations, thereby avoiding the need to sell securities in
the secondary market prior to maturity; monitoring credit ratings of portfolio positions to
assure compliance with rating requirements imposed by the PFIA; and investing
operating funds primarily in money market mutual funds, government investment pools,
and shorter-term securities with a weighted average maturity of less than 270 days.
The following table details the maturity schedule for the City’s investments as of
September 30, 2014.
% of
Maturity Schedule Book Value Fair Value Portfolio
Overnight 28,194,476$ 28,194,476$ 44.2%
Less than 1 month 2,999,475 3,000,065 4.7%
1 to 6 months 10,306,896 10,317,012 16.1%
6 to 9 months 9,208,695 9,176,040 14.4%
9 to 12 months 2,499,924 2,500,820 3.9%
12 to 18 months 8,743,797 8,745,247 13.7%
18 to 24 months 1,000,000 1,000,600 1.6%
Over 24 months 900,000 898,020 1.4%
Total 63,853,263$ 63,832,280$ 100.0%
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2014, the City
minimized credit risk losses due to default of a security issuer or backer by: limiting
investments to the safest types of securities; primarily investing in U.S. Agency Bonds
rated AA+ by Standard & Poor’s; pre-qualifying financial institutions, brokers/dealers,
and advisors with which the City will do business; and diversifying the investment
portfolio so that the potential losses on securities are minimized.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
44
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Credit Risk – Continued
Custodial credit risk – the risk that a government will not be able to recover
(a) deposits if the depository financial institution fails or (b) the value of investment or
collateral securities that are in the possession of an outside party if the counterparty to
the investment or deposit transaction fails. To minimize such risk, the City requires
collateralization of deposits in excess of FDIC coverage, utilizes the delivery vs. payment
method for investment purchases, and contracts with a third-party safekeeping agent for
securities held as collateral.
Per the terms of its depository agreement, for bank deposits in excess of the coverage
provided by the FDIC, the City requires the depository bank to pledge to the City
securities (collateral) equal to the following percentages, as applicable, to the largest
balances the City maintains in the bank.
Other
Type of Collateral Securities
Eligible collateral other than mortgage-backed securities 102%
Mortgage-backed securities 100%
The percentages as shown reflect the requirement based on market value of the
pledged securities. The City actively monitors and manages collateral levels for all
deposits. On September 30, 2014, the City’s bank balances were insured or fully
collateralized.
The City’s depository bank also acts as its safekeeping agent per the terms of the
depository contract. City policy dictates that all securities rendered for payment will be
sent delivery vs. payment, meaning that the funds required for purchase of a security will
not be released until the safekeeping agent has received the security purchased in the
City’s name. No broker holds City funds. The City does not purchase securities from its
depository bank or any subsidiary banks of the same bank holding company.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
45
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2014, was as follows:
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land 26,476,056$ 107,731$ -$ -$ 26,583,787$
Construction in progress 9,602,560 1,481,196 - (7,340,275) 3,743,481
Total capital assets
not being depreciated 36,078,616 1,588,927 - (7,340,275) 30,327,268
Capital assets being depreciated
Buildings 54,605,586 - - 3,822,551 58,428,137
Improvements other than buildings 5,869,383 41,331 - 3,466,525 9,377,239
Infrastructure 70,098,923 1,808,567 - - 71,907,490
Machinery and equipment 9,024,899 722,132 (214,675) 51,199 9,583,555
Total capital assets
being depreciated 139,598,791 2,572,030 (214,675) 7,340,275 149,296,421
Less accumulated depreciation
Buildings (17,603,557) (1,590,958) - - (19,194,515)
Improvements other than buildings (3,139,864) (208,722) - - (3,348,586)
Infrastructure (31,524,975) (1,989,513) - - (33,514,488)
Machinery and equipment (4,612,580) (672,182) 198,324 - (5,086,438)
Total accumulated depreciation (56,880,976) (4,461,375) 198,324 - (61,144,027)
Total capital assets being
depreciated, net 82,717,815 (1,889,345) (16,351) 7,340,275 88,152,394
Total governmental fund capital
assets, net 118,796,431 (300,418) (16,351) - 118,479,662
Internal service funds
Capital assets being depreciated
Machinery and equipment 8,612,201 1,578,635 (444,067) - 9,746,769
Total internal service assets
being depreciated 8,612,201 1,578,635 (444,067) - 9,746,769
Less accumulated depreciation
Machinery and equipment (6,256,130) (725,179) 286,067 - (6,695,242)
Total internal service funds
capital assets, net 2,356,071 853,456 (158,000) - 3,051,527
Total governmental activities
capital assets, net 121,152,502$ 553,038$ (174,351)$ -$ 121,531,189$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
46
NOTE 3. CAPITAL ASSETS – CONTINUED
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Business-type activities
Capital assets not being depreciated
Land 3,618,545$ -$ -$ -$ 3,618,545$
Construction in progress 1,230,655 2,913,171 - (3,790,607) 353,219
Total assets not being depreciated 4,849,200 2,913,171 - (3,790,607) 3,971,764
Capital assets being depreciated
Buildings 4,109,101 - - - 4,109,101
Equipment 2,162,184 112,492 (218,295) - 2,056,381
Improvements 17,862,799 799,349 - 19,395 18,681,543
Utility system 89,951,245 1,758,607 - 3,771,212 95,481,064
Total capital assets being
depreciated 114,085,329 2,670,448 (218,295) 3,790,607 120,328,089
Less accumulated depreciation
Buildings (1,910,613) (126,073) - - (2,036,686)
Equipment (1,766,680) (114,963) 179,903 - (1,701,740)
Improvements (7,948,496) (650,623) - - (8,599,119)
Utility system (44,061,715) (2,336,678) - - (46,398,393)
Total accumulated depreciation (55,687,504) (3,228,337) 179,903 - (58,735,938)
Total capital assets being
depreciated, net 58,397,825 (557,889) (38,392) 3,790,607 61,592,151
Total business-type activities
capital assets, net 63,247,025$ 2,355,282$ (38,392)$ -$ 65,563,915$
Depreciation expense was charged as direct expense to programs of the primary government as
follows:
Governmental activities
Culture and recreation 817,050$
Development services 330,586
General administrative 1,034,791
Highways and streets 2,100,298
Public safety 903,829
Total depreciation expense - governmental activities 5,186,554$
Business-type activities
Water and wastewater 1,822,762$
Drainage utility 709,411
Golf course 386,010
Other recreation enterprises 310,154
Total depreciation expense - business-type activities 3,228,337$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
47
NOTE 3. CAPITAL ASSETS – CONTINUED
Outstanding commitments at September 30, 2014, under authorized construction contracts,
were $461,526. These outstanding commitments are to be financed by available deposit
and investment balances, which include proceeds from previous bond issuances.
NOTE 4. LONG-TERM DEBT
At September 30, 2014, bonds payable consisted of the following individual issues:
Governmental Business-type
$13,900,000 Series 2005, General Obligation Refunding Bonds, dated
March 1, 2005, due in annual installments through 2020, bearing interest
rates of 4.50% to 5.00%.7,100,000$ -$
$8,110,000 Series 2010, Taxable General Obligation Refunding Bonds,
dated August 15, 2010, due in annual installments through 2025, bearing
interest rates of 2.20% to 4.40%. 6,215,000 -
$6,575,000 Series 2011, General Obligation Refunding Bonds, dated
January 15, 2011, due in annual installments through 2021, bearing
interest rates of 3.00% to 4.00%.5,340,000 -
$3,035,000 Series 2011, Revenue Certificates of Obligation, dated
January 15, 2011, due in annual installments through 2030, bearing
interest rates of 3.00% to 4.25%.2,780,000 -
$3,340,000 Series 2012, Waterworks and Sewer System Revenue
Refunding Bonds, dated March 29, 2012, due in annual installments
through 2024, bearing interest at 2.03%.- 2,760,000
$3,785,000 Series 2012, Sales Tax Revenue Refunding Bonds, dated
January 12, 2012, due in annual installments through 2019, bearing
interest at 1.43%.1,175,000 -
$5,955,000 Series 2012, General Obligation Refunding Bonds, dated
December 1, 2011, due in annual installments through 2024, bearing
interest rates of 2.00% to 4.00%.4,640,000 -
$8,805,000 Series 2012A, General Obligation Refunding Bonds, dated
November 1, 2012, due in annual installments through 2027, bearing
interest rates of 2.00% to 4.00%.775,000 6,915,000
$1,585,000 Series 2013, Waterworks and Sewer System Revenue
Bonds, dated June 25, 2013, due in annual installments through 2033,
bearing interest rates of 2.00% to 5.00%.- 1,525,000
28,025,000$ 11,200,000$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
48
NOTE 4. LONG-TERM DEBT – CONTINUED
The following is a summary of long-term debt transactions of the City for the year ended
September 30, 2014:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds 27,095,000$ -$ (3,025,000)$ 24,070,000$ 3,120,000$
Certificates of obligation 2,910,000 - (130,000) 2,780,000 130,000
Sales tax revenue bonds 2,050,000 - (875,000) 1,175,000 890,000
Capital leases 1,631,600 - (1,537,404) 94,196 94,196
Premium on bonds 795,843 - (103,937) 691,906 103,938
Discount on bonds (75,862) - 6,323 (69,539) (6,322)
Net pension obligation 2,393,098 22,851 (217) 2,415,732 -
Compensated absences 1,808,989 353,023 (385,927) 1,776,085 177,610
Total governmental activities 38,608,668 375,874 (6,051,162) 32,933,380 4,509,422
Business-type activities
Water and sewer revenue bonds 4,690,000 - (405,000) 4,285,000 410,000
General obligation refunding bonds 7,495,000 - (580,000) 6,915,000 595,000
Premiums on bonds 295,190 - (27,163) 268,027 27,166
Discounts on bonds (32,506) - 1,625 (30,881) (1,625)
Net pension obligation 461,606 - (2,494) 459,112 -
Compensated absences 254,290 42,460 (74,059) 222,691 22,269
Total business-type activities 13,163,580 42,460 (1,087,091) 12,118,949 1,052,810
Total primary government 51,772,248$ 418,334$ (7,138,253)$ 45,052,329$ 5,562,232$
The liability for the governmental fund net pension obligation is typically liquidated in the
general fund, the juvenile case fund, the half-penny sales tax fund, and the crime control
and prevention district fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
49
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2014, are as follows:
General Obligation Bonds:
Principal Interest Principal Interest Total
2015 3,120,000$ 899,184$ 595,000$ 176,125$ 4,790,309$
2016 3,240,000 784,024 625,000 151,725 4,800,749
2017 2,970,000 668,599 455,000 134,675 4,228,274
2018 3,090,000 547,244 470,000 125,425 4,232,669
2019 2,740,000 433,422 475,000 113,600 3,762,022
2020-2024 8,225,000 884,634 2,590,000 363,707 12,063,341
2025-2027 685,000 30,140 1,705,000 66,169 2,486,309
24,070,000$ 4,247,247$ 6,915,000$ 1,131,426$ 36,363,673$
Governmental Activities Business-Type Activities
Certificates of Obligation:
Principal Interest Total
2015 130,000$ 107,344$ 237,344$
2016 135,000 103,444 238,444
2017 140,000 99,394 239,394
2018 145,000 95,194 240,194
2019 150,000 90,844 240,844
2020-2024 835,000 360,020 1,195,020
2025-2029 1,015,000 178,645 1,193,645
2030 230,000 9,775 239,775
2,780,000$ 1,044,660$ 3,824,660$
Governmental Activities
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
50
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Revenue Bonds:
Principal Interest Principal Interest Total
2015 890,000$ 16,803$ 410,000$ 116,922$ 1,433,725$
2016 165,000 4,076 415,000 108,618 692,694
2017 45,000 1,716 425,000 100,211 571,927
2018 35,000 1,073 440,000 91,001 567,074
2019 40,000 572 450,000 81,438 572,010
2020-2024 - - 1,285,000 287,047 1,572,047
2025-2029 - - 430,000 166,150 596,150
2030-2033 - - 430,000 55,000 485,000
1,175,000$ 24,240$ 4,285,000$ 1,006,387$ 6,490,627$
Governmental Activities Business-Type Activities
Water and sewer revenue bonds authorized and unissued as of September 30, 2014,
amounted to $1,200,000. The water and sewer bonds were authorized in 1970, and
currently the City Council has no intent to issue these bonds.
Water and sewer revenue bonds and refunding revenue bonds are payable solely from
and equally secured by a first lien on and pledge of the net revenue of the City's
combined waterworks and sanitary sewer system.
In accordance with the water and sewer revenue and refunding bond ordinances, the
following reserves were established:
Reserve for revenue bond debt service – to be used for retirement of the current
portion of principal and interest payments due.
Reserve for emergency – to be used for payment of extraordinary repairs or
replacements to the system necessitated by an emergency for which no other funds
are available.
Revenue bond reserve – a reserve established with a portion of the bond proceeds
pursuant to the revenue bond covenants, which will be used for principal and interest
payments in the event of default by the issuer.
Should the reserve for revenue bond debt service and/or the revenue bond reserve
prove deficient, the reserve for emergency shall be used for the purpose of meeting
principal and/or interest requirements of the bonds.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
51
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
All funding requirements for the above reserves were met at September 30, 2014.
Investments of funds included in the bond reserve and emergency accounts are
restricted to obligations of the United States or its agencies or instrumentalities (except
for mortgage pass-through securities).
Capital Lease
The City has entered into one capital lease agreement under which the related
equipment will become the property of the City when all terms of the lease agreements
are met.
As of September 30, 2014, capital lease annual amortization is as follows:
Governmental
Activities
2015 97,720$
Total 97,720
Less interest (3,524)
Present value of
remaining payments 94,196$
Equipment and related accumulated amortization under capital leases are as follows at
September 30, 2014:
Governmental
Activities
Equipment 494,322$
Less: accumulated amortization (148,296)
Net book value 346,026$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
52
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a contract dated January 21, 1972, with Trinity River Authority (TRA)
whereby TRA agreed to provide treated water to the City. This contract was for an original
term of thirty-five (35) years and continues in effect until all bonds, or any bonds issued to
refund same, have been paid in full. Additionally, on October 10, 1973, the City entered into
a contract with TRA to provide wastewater treatment services to the City. The contract
remains in force and effect for a period of fifty (50) years and thereafter until any bonds, or
any bonds issued to refund same, have been paid in full. Payments by the City are based
on metered usage at rates designed to charge the City a prorata share of TRA's annual
operating and maintenance expenses and principal and interest requirements on bonds
issued by TRA. Payments under these contracts approximated $9,390,382 and are
included as operating expenses of the water and wastewater fund.
The City entered into a 20-year contract dated February 2, 2010, with the City of Fort Worth
(Fort Worth) whereby Fort Worth agreed to provide reclaimed water service to the City.
Payments by the City are based on metered volume. Payments under this contract were
$195,079 in the year ended September 30, 2014 and are included as operating expenses of
the water and wastewater fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the
operating costs of the City's service center, which provides services to all City departments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
53
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the
operations of those funds.
Transfers in
Major Governmental
General Debt service
Nonmajor
governmental
Subtotal
governmental
Transfers out
General -$ -$ 127,382$ 127,382$
Car rental tax 1,532,842 198,443 1,106,786 2,838,071
Water and wastewater 963,936 - - 963,936
Drainage utility 35,653 - - 35,653
Nonmajor governmental - 238,265 163,342 401,607
Total transfers in 2,532,431$ 436,708$ 1,397,510$ 4,366,649$
Transfers in
Internal Water and Golf Subtotal Total
service wastewater course proprietary transfers out
Transfers out
General 225,000$ -$ 13,995$ 238,995$ 366,377$
Car rental tax 149,670 - 75,000 224,670 3,062,741
Water and wastewater 225,000 - - 225,000 1,188,936
Drainage utility - - - - 35,653
Nonmajor governmental - 34,455 344,165 378,620 780,227
Total transfers in 599,670$ 34,455$ 433,160$ 1,067,285$ 5,433,934$
Major Enterprise
Transfers are primarily used to move funds from:
The general fund to the non-major governmental funds to satisfy grant matching
requirements and for approved CIP projects.
The car rental tax fund, the water and wastewater fund, and the drainage utility fund
to the general fund for general and administrative charges.
The car rental tax fund to the debt service fund for the principal and interest on
previously issued bonds.
The car rental tax fund to the non-major governmental funds for approved capital
projects and to provide additional seed money for the Glade Parks Public
Improvement District.
The car rental tax fund to the golf course fund for capital improvements.
The non-major governmental funds to the debt service fund for the debt service
payments on the 2011 certificates of obligation and to the other non-major
governmental funds for approved projects.
The non-major governmental funds to the water and wastewater fund for approved
capital projects.
The general fund and water and wastewater fund to the internal service funds for
workers’ compensation and general liability insurance claims.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
54
NOTE 7. INTERFUND TRANSFERS – CONTINUED
The general fund to the golf course fund to rebate the City portion of sales taxes
paid.
The car rental fund to the internal service fund for equipment purchases.
The non-major governmental funds to the golf course fund to cover a portion of the
operating and debt costs associated with the conference center.
NOTE 8. 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 and related deductibles.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental
Risk Pool to provide workers’ compensation insurance and effectively discontinued being
self-insured for workers’ compensation claims. This policy has no deductibles, includes all
claims handling, and has a fixed premium.
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were
available to pay claims, claim reserves, and administrative costs of the program. The City
remains liable under its self-insurance program for any claims occurring prior to October 1,
2005.
The City provides employee health 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. The premiums are used to fund claims, administrative costs of the program, and
claim reserves. An excess coverage insurance policy covers individual claims in excess of
$100,000 and aggregate claims in excess of $4,217,094. During fiscal year 2014, the City
and the City's employees contributed approximately $4,063,996 and $1,246,813
respectively, for medical coverage. The City's contributions are accounted for as interfund
services provided and used. Claims liabilities are based on estimates of the ultimate cost of
claims (including future claim adjustment expenses) that have been reported but not settled,
and of claims that have been incurred but not reported, and are accounted for in the
Insurance Internal Service Fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
55
NOTE 8. RISK MANAGEMENT – CONTINUED
Changes in the balances of health and dental claims liabilities for the years ended
September 30, 2014 and 2013 are as follows:
2014 2013
Unpaid claims, beginning of year 372,657$ 721,422$
Incurred claims 4,487,700 4,241,373
Paid claims (4,372,458) (4,590,138)
Unpaid claims, end of year 487,899$ 372,657$
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2014 or any of the three preceding years ended September 30.
NOTE 9. EMPLOYEE RETIREMENT SYSTEM
Plan Description
The City provides pension benefits for all eligible employees through a non-traditional,
joint contributory, hybrid defined-benefit plan in the statewide Texas Municipal
Retirement System (TMRS), an agent multiple-employer public employee retirement
system. The plan provisions that have been adopted by the City are within the options
available in the governing state statutes of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes
financial statements and required supplementary information (RSI) for TMRS; the report
also provides detailed explanations of the contributions, benefits, and actuarial methods
and assumptions used by TMRS. This report may be obtained by writing to TMRS, P.O.
Box 149153, Austin, TX 78714-9153 or by calling 800-924-8677; in addition, the report is
available on the TMRS website at www.TMRS.com.
The plan provisions are adopted by the City Council of the City, within the options
available in the state statutes governing TMRS. Plan provisions for the City were as
follows:
Plan Year 2013 Plan Year 2014
Employee deposit rate 7.00% 7.00%
Matching ratio (city to employee) 2 to 1 2 to 1
Years required for vesting 5 5
Service retirement eligibility
(expressed as age/years of service) 60/5, 0/20 60/5, 0/20
Updated service credit 100% Repeating, Transfers 100% Repeating, Transfers
Annuity increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
56
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution
Under the state law governing TMRS, the contribution rate for each city is determined
annually by the actuary, using the projected unit credit actuarial cost method. This rate
consists of the normal cost contribution rate and the prior service cost contribution rate,
which is calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the portion of an active member's projected benefit allocated
annually; the prior service contribution rate amortizes the unfunded (overfunded)
actuarial liability (asset) over the applicable period for that city. Both the normal cost and
prior service contribution rates include recognition of the projected impact of annually
repeating benefits, such as updated service credits and annuity increases.
The City contributes to the TMRS Plan at an actuarially determined rate. Both the
employees and the City make contributions monthly. Since the City needs to know its
contribution rate in advance for budgetary purposes, there is a one-year delay between
the actuarial valuation that serves as the basis for the rate and the calendar year when
the rate goes into effect. The annual pension cost and net pension obligation/(asset) are
as follows:
Annual required contribution (ARC) 4,822,582$
Interest on net pension obligations 199,828
Adjustment to the ARC (179,688)
Annual pension cost (APC) 4,842,722
Contributions made (4,822,582)
Increase (decrease) in net pension obligation 20,140
Net pension obligation, beginning of year 2,854,704
Net pension obligation, end of year 2,874,844$
The required contribution rates for fiscal year 2014 were determined as a part of the
December 31, 2011 and 2012 actuarial valuations. Additional information as of the
latest actuarial value, December 31, 2013, also follows:
December 31, 2011 December 31, 2012 December 31, 2013
Actuarial cost method Projected Unit Credit Projected Unit Credit Entry Age Normal
Amortization method Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll
Remaining amortization period 26.1 years - closed 25.1 years - closed 20.0 years - closed
Asset valuation method 10 year Smoothed Market 10 year Smoothed Market 10 year Smoothed Market
Actuarial assumption
Investment rate of return 7.0% 7.0% 7.0%
Projected salary increases Varies by age/service Varies by age/service Varies by age/service
Inflation 3% 3% 3%
Cost of living adjustments 2.1% 2.1% 2.1%
Euless payroll growth assumptions 3% 3% 3%
Valuation date
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
57
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
For cities with repeating features in their plans, changes in the valuation methodology
would likely result initially in higher required contributions and lower funded ratios.
However, the funded ratio should show steady improvement over time. The City has
adopted the updated service credit and annuity increase provisions on an annually
repeating basis. The schedule of funding progress, presented as Required
Supplementary Information immediately following the Notes to the Financial Statements,
presents multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Funded Status and Funding Progress
The funded status of the plan is presented as follows as of actuarial valuation dated
December 31:
Unfunded
Valuation Actuarial Actuarial Actuarial Annual UAAL
Dated Value of Accrued Accrued Liability Fund Covered as % of
December 31 Assets Liability (UAAL) Ratio Payroll Payroll
2011 121,232,189$ 142,935,453$ 21,703,264$ 84.82% 22,698,035$ 95.62%
2012 131,280,817 150,172,732 18,891,915 87.42% 23,525,885 80.30%
2013 142,209,128 168,246,211 26,037,083 84.52% 25,199,148 103.33%
Annual pension cost and percentage of pension cost contributed are as follows:
Annual Actual Net Pension
Fiscal Year Pension Contribution Percentage Obligation at
Ended 9/30 Cost Made Contributed Year End
2012 4,661,466$ 4,416,702$ 95% 2,830,645$
2013 4,739,776 4,715,718 99% 2,854,704
2014 4,842,722 4,822,582 100% 2,874,844
Actuarial valuations involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are
subject to continual revision as actual results are compared to past expectations and
new estimates are made about the future.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
58
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS
Postemployment Healthcare Plan
Plan Description
The City adopted the City of Euless Post-Employment Benefits Trust (OPEB Trust) by
passage of Resolution No. 09-1319 on September 8, 2009, which authorized
participation in the PARS Public Agencies Post-Retirement Health Care Plan Trust,
including the City of Euless Public Agencies Post-Retirement Health Care Plan (the
Plan), as part of the City’s Retirement Program. Article III of the Public Agencies Post-
Retirement Health Care Plan Master Plan Document as adopted provides for the
determination of eligibility under the plan to each participating Employer to the extent
provided in the Employer’s applicable policies.
The City’s policies with regard to post-employment healthcare coverage are governed by
the City of Euless Medical and Dental Plan, the City’s group health insurance plan, the
benefits of which are established by management.
The City provides postemployment medical, dental, life, and vision benefits under the
Plan to eligible retirees and dependents qualifying as one of the eligible classes of
dependents as described in the Plan. To be eligible for coverage under the Plan, an
employee must retire with the City of Euless and be eligible for retirement through
TMRS. TMRS retirement eligibility requirements are described in detail in Note 9.
Additionally, written application to enroll himself/herself and all eligible dependents (for
which coverage is elected) in the Plan must be made by the employee prior to or on the
retirement date.
The Plan provides lifetime benefits or until Medicare eligibility is attained. Regardless of
Medicare enrollment status, the Plan will base payment of benefits as though Medicare
were responsible for primary payment of benefits insomuch as allowed by Federal law.
The Plan is a single-employer defined benefit healthcare plan administered by the City
Manager, his/her successor, or his/her designee. Separate financial statements for the
Plan are not issued, but rather are included in the financial statements of the City, which
are available on-line at http://www.eulesstx.gov/finance/cafr.htm.
The OPEB Trust is an agent multiple-employer trust arrangement established to provide
economies of scale and efficiency of administration to public agencies. The OPEB Trust
is established as a tax-exempt trust within the meaning of Section 115 of the Internal
Revenue Code and is intended to hold the assets used to fund the City’s post-
employment benefits offered by the City to its employees as specified in the City’s
policies.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
59
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
Plan Description – Continued
The OPEB Trust is administered by Public Agency Retirement Services pursuant to the
Trust Agreement adopted on September 8, 2009 by the City Council with passage of
Resolution No. 09-1319. Upon adoption of the Trust Agreement, a separate Agency
Account was established under the OPEB Trust for the City, and all assets of the Trust
attributable to the City are held in the City’s Agency Account. The assets of the Trust are
available only to pay postemployment healthcare benefits of eligible employees of the
City and their dependents and other associated administrative costs.
Funding Policy
A Participant in the OPEB Trust is required from time-to-time to contribute to its Agency
Account an amount determined by such Participant at its sole discretion. Such amount
may, but need not, equal such Participant’s annual required contribution (ARC) as
determined in accordance with GASB 45. However, it is currently the intent of the Plan
Administrator to annually fund an amount equal to, or in excess of, the ARC. This intent
is subject to change and is subject to annual appropriation.
Contribution requirements of Plan members and the City are determined by the Plan
Administrator and may be amended by same from time to time. Plan members
contribute:
Medical Medical
and Dental Plan A and Dental Plan B Vision
Retiree Only 673.28$ 587.34$ 7.87$
Retiree plus Children 1,279.23 1,115.96 12.87
Retiree plus Spouse 1,548.55 1,350.90 15.29
Retiree plus Family 1,952.52 1,703.31 21.60
Monthly Contribution
Retired employees meeting all eligibility requirements as set forth in the Plan that were
hired prior to October 1, 2006 and are either:
a) Retired and enrolled in the Plan on or prior to September 30, 2007; or
b) Retired and not enrolled in the Plan on or prior to September 30, 2007, and meet
guidelines for reinstatement to the Plan; or
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
60
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
Funding Policy – Continued
c) Employees who were not retired as September 30, 2007, that retire with at least
ten years of service to the City of Euless and have a combined age and years of
service equal to at least 70
will qualify for a service discount on their total premium, subject to annual
appropriation, as set forth in the table below. Retired employees meeting all eligibility
requirements as set forth in the Plan that were hired after October 1, 2006 retiring with
a minimum of 20 years of service with a combined age and years of service to the City
of Euless equal to at least 80 qualify for a service discount on their total premium,
subject to annual appropriation, as set forth in the following:
Service Retiree Retiree+ Retiree Retiree+
10 to 14 years 15% 30% N/A N/A
15 to 19 years 25% 40% N/A N/A
20 to 24 years 35% 50% 35% 50%
25 to 29 years 50% 65% 50% 65%
30+ years 60% 75% 60% 75%
Discounts on Premiums
Hired Pre-10/2006 Hired Post-10/2006
Retirees are permitted to participate with active employees in the healthcare plan but
retirees must pay all premiums (less applicable discounts) assigned to them. The City
will continue to apply the applicable discount to surviving spouse/dependents based
upon a deceased employee’s years of service.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types
of benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members at that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
plan assets, consistent with the long-term perspective of the calculations.
In the October 1, 2013, actuarial valuation, the projected unit credit actuarial cost
method was used. The actuarial assumptions include a 7.5% investment rate of return
(compounded annually net after expenses) and an annual healthcare cost trend rate of
6.2% initially, with annual increases and decreases to an ultimate rate of 6.2% in twenty-
six years and an annual dental cost trend rate of 5.7% initially, declining by decrements
to an ultimate rate of 3.9% after thirteen years. The inflation rate of 2.75% is used for
the calculation. The UAAL is being amortized over a thirty-year open period utilizing a
level dollar amortization method.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
61
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) for the Plan is calculated based on the ARC, an
amount actuarially determined in accordance with the parameters of GASB 45. The ARC
represents the level of funding that, if paid on an on-going basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities (or funding excess)
over a period not to exceed thirty years.
For the year ended September 30, 2014, the City has estimated the cost of providing
these benefits through an actuarial valuation as of October 1, 2013. The following table
represents the components of the City’s annual OPEB cost for the fiscal year, the
amount actually contributed to the Plan, and any changes in the City’s net OPEB
obligation.
Annual required contribution 1,104,233$
Interest on net OPEB obligation (26,908)
Adjustments to annual required contribution 25,718
Annual OPEB cost (expense) 1,103,043
Contributions made (835,719)
Change in OPEB obligation 267,324
Net OPEB obligation (asset) - beginning of year (358,769)
Net OPEB obligation (asset) - end of year (91,445)$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for fiscal year 2014 and the two previous fiscal years
are as follows:
Actuarial Fiscal % of Annual
Valuation Year Discount Annual Cost Net OPEB
Date Ended Rate OPEB Cost Contributed Obligation
10/1/2010 9/30/2012 7.0% 865,928$ 100.26% (634,234)$
10/1/2012 9/30/2013 7.5% 1,456,357 81.09% (358,769)
10/1/2013 9/30/2014 7.5% 1,103,043 75.76% (91,445)
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
62
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Status and Funding Progress
Fiscal 10/1 Unfunded
Valuation Year Actuarial Actuarial Actuarial
Dated Ended Value of Discount Accrued Accrued Liability Funded Covered UAAL % of
10/01, 09/30, Assets Rate Liability ("UAAL") Ratio Payroll Payroll
2010 2012 1,222,028$ 7.0% 8,368,989$ 7,146,961$ 15% 23,230,021$ 31%
2012 2013 1,830,940 7.5% 14,087,206 12,256,266 13% 24,264,642 51%
2013 2014 2,454,718 7.5% 11,822,647 9,367,929 21% 25,470,582 37%
As of October 1, 2013, the Plan was 79% unfunded. The value of plan assets was
$2,454,718, resulting in an UAAL of $9,367,929.
Actuarial valuations of an ongoing plan involve estimates of the value of the reported
amounts and assumptions about the probability of occurrences of events far into the
future. Examples include, but are not limited to, future employment, mortality, and
healthcare cost trends. Amounts determined regarding the funded status of the plan and
the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary
information following the Notes to the Basic Financial Statements, presents multiyear
trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
NOTE 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2014, the public safety grant special revenue fund had an excess of
expenditures over appropriations of $44,630 and the police drug enforcement special
revenue fund had an excess of expenditures over appropriations of $50.
NOTE 12. SUBSEQUENT EVENT
Early in fiscal year 2015, the City executed a current refunding in the amount of $5,930,000
of series 2005 general obligation refunding bonds with a single issue of $5,685,000 series
2014 general obligation refunding bonds dated October 15, 2014 bearing an interest rate of
3.00%. A cash contribution combined with the net proceeds from the refunding issue totaling
$6,162,579 provided sufficient resources for the completion of the refunding transaction.
The refunding was undertaken to reduce total debt service payments over the next six years
by $565,400 and to obtain an economic gain of $525,552.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
63
NOTE 12. SUBSEQUENT EVENT – CONTINUED
The City also issued $5,715,000 in Tax and Waterworks and Sewer System (Limited
Pledge) Revenue Certificates of Obligation, Series 2014 dated October 15, 2014, payable
from a combination of (i) the levy and collection of a direct and continuing ad valorem tax,
levied within the limits prescribed by law, on all taxable property within the City, and (ii) a
limited pledge (not to exceed $1,000) of the Net Revenues of the City’s Waterworks and
Sewer System as provided in the ordinance authorizing the Certificates. Payment of
principal and interest is due in annual installments through 2034. Interest rates on the debt
range from 3.00% to 5.00%. The proceeds from the Certificates will be used for (i) street
improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways,
signage, lighting and traffic signalization incident thereto and the acquisition of land and
rights-of-way therefore, and (ii) professional services rendered in relation to such projects
and the financing thereof.
NOTE 13. CHANGE IN ACCOUNTING PRINCIPLE
The City implemented GASB Statement No. 65, Items Previously Reported as Assets and
Liabilities, during the fiscal year ended September 30, 2014. In accordance with GASB
Statement No. 65, debt issuance costs should be recognized as expenses in the period
incurred. Previously, debt issuance costs were recorded as assets and amortized over the
life of the debt. The implementation of GASB Statement No. 65 resulted in the following prior
period adjustment to the net position on the government-wide statement of activities:
Governmental
Activities
Business- type
Activities
Net position, beginning of year, prior to restatement 117,277,635$ 73,539,838$
Cumulative effect of change in accounting principle (440,261) (263,822)
Net position, beginning of year, as restated 116,837,374$ 73,276,016$
Water and
Wastewater Golf Course Non-major Funds
Net position, beginning of year, prior to restatement 44,370,582$ 2,473,998$ 6,985,098$
Cumulative effect of change in accounting principle (105,201) (147,772) (10,849)
Net position, beginning of year, as restated 44,265,381$ 2,326,226$ 6,974,249$
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN
TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2014
64
Unfunded
Valuation Actuarial Actuarial Actuarial Annual UAAL
Dated Value of Accrued Accrued Liability Fund Covered as % of
December 31, Assets Liability (UAAL) Ratio Payroll Payroll
2011 121,232,189$ 142,935,453$ 21,703,264$ 84.82% 22,698,035$ 95.62%
2012 131,280,817 150,172,732 18,891,915 87.42% 23,525,885 80.30%
2013 142,209,128 168,246,211 26,037,083 84.52% 25,199,148 103.33%
The Schedule of Funding Progress summarizes the actuarial value of the plan's assets and
actuarial accrued liability as of December 31, 2013 and each of the two preceding calendar
years. The data presented in the schedule was obtained annually from TMRS and was based
upon the annual actuarial valuation for the years represented. The City is financially responsible
for its own portion of the plan. Therefore, the numbers shown above reflect only the condition of
the City's plan.
The schedule is presented to provide a consistent basis for measuring the plan's annual
progress toward funding its actuarial accrued liability in accordance with its actuarial funding
method. The primary measure of funding progress is the plan's funded ratio (i.e. actuarial value
of assets expressed as a percentage of the actuarial accrued liability). An increase in the funded
ratio indicates improvement in the plan's ability to pay all projected benefits as they come due.
The plan is fully funded if the funded ratio is greater than or equal to 100%. During the year
ended December 31, 2013, the plan's funded ratio was 84.52%.
The Schedule of Funding Progress also discloses the relationship between the plan's covered
payroll (i.e. all elements included in compensation paid to active members on which
contributions are based) and the UAAL. This relationship, expressed as a ratio, is a measure of
the significance of the UAAL relative to the capacity to pay all contributions required to fund the
liability. During the year ended December 31, 2013, the plan's ratio of the UAAL to its covered
payroll was 103.33%.
Calendar Years
2014 2013 2012 2011 2010
City's annual contribution stated
as a % of covered payroll 18.73% 19.46% 19.36% 17.99% 16.49%
Note Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2013 and City records.
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS – OPEB TRUST
SEPTEMBER 30, 2014
65
Fiscal 10/1 Unfunded
Valuation Year Actuarial Actuarial Actuarial
Dated Ended Value of Discount Accrued Accrued Liability Funded Covered UAAL % of
10/01, 09/30, Assets Rate Liability ("UAAL") Ratio Payroll Payroll
2010 2012 1,222,028$ 7.0% 8,368,989$ 7,146,961$ 15% 23,230,021$ 31%
2012 2013 1,830,940 7.5% 14,087,206 12,256,266 13% 24,264,642 51%
2013 2014 2,454,718 7.5% 11,822,647 9,367,929 21% 25,470,582 37%
The Schedule of Funding Progress summarizes the actuarial value of the plan’s assets and
actuarial accrued liability as of October 1, 2013 and the two preceding actuarial valuations for
which the trust has been in effect.
The schedule is presented to provide a consistent basis for measuring the plan’s annual
progress toward funding its actuarial accrued liability in accordance with its actuarial funding
method. The primary measure of funding progress is the plan’s funded ratio (i.e. actuarial value
of assets expressed as a percentage of the actuarial accrued liability). An increase in the
funded ratio indicates an improvement in the plan’s ability to pay all projected benefits as they
come due. The plan is fully funded if the funded ratio is greater than or equal to 100%. At
October 1, 2013, the plan’s funded ratio was 21%.
For more information concerning the plan and the actuarial method and assumptions, see Note
10 Other Post-Employment Benefits in the Notes to the Financial Statements.
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2014
66
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes 10,156,088$ 10,156,088$ 10,181,232$ 25,144$
Penalty and interest 55,000 55,000 53,131 (1,869)
Total property tax 10,211,088 10,211,088 10,234,363 23,275
Gross receipts and mixed beverage tax
Telephone line access fee 329,000 329,000 330,022 1,022
Electric company 1,643,000 1,643,000 1,719,260 76,260
Gas company 276,500 276,500 425,948 149,448
Cable TV 650,000 650,000 672,194 22,194
City garbage service 212,000 212,000 194,961 (17,039)
Water and wastewater system 1,041,048 1,041,048 963,936 (77,112)
Others 69,750 69,750 85,686 15,936
Total gross receipts and
mixed beverage tax 4,221,298 4,221,298 4,392,007 170,709
General sales tax 10,228,179 10,228,179 10,946,869 718,690
Fines and fees
Municipal court fines 3,005,445 3,005,445 3,214,950 209,505
Jail income 350,000 350,000 346,665 (3,335)
Dog licenses and pound fees 7,000 7,000 3,952 (3,048)
Ambulance fees 805,000 805,000 869,270 64,270
Library fees 37,100 37,100 34,042 (3,058)
Zoning fees 15,000 15,000 25,794 10,794
Deferred adjudication fee 145,000 145,000 151,717 6,717
Total fines and fees 4,364,545 4,364,545 4,646,390 281,845
Licenses and permits
Building permits 610,000 610,000 845,258 235,258
Miscellaneous permits 238,585 238,585 222,966 (15,619)
Minimum housing 211,820 211,820 218,529 6,709
Total licenses and permits 1,060,405 1,060,405 1,286,753 226,348
Investment income 61,725 61,725 26,601 (35,124)
Intergovernmental 376,325 376,325 379,467 3,142
Other revenues
Rental income 442,850 442,850 444,364 1,514
Swimming pools 112,500 112,500 248,590 136,090
Miscellaneous income 253,375 253,375 227,382 (25,993)
Total other revenues 808,725 808,725 920,336 111,611
Total revenues 31,332,290 31,332,290 32,832,786 1,500,496
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2014
(CONTINUED)
67
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation 3,038,893$ 3,038,893$ 2,844,380$ 194,513$
Development services 695,749 695,749 632,694 63,055
General and administrative 9,843,443 9,995,571 8,542,290 1,453,281
Highways and streets 1,291,724 1,291,724 1,253,036 38,688
Public safety 21,105,235 21,105,235 20,668,937 436,298
Debt service 97,720 97,720 97,720 -
Total expenditures 36,072,764 36,224,892 34,039,057 2,185,835
Excess (deficiency) of revenues
over (under) expenditures (4,740,474) (4,892,602) (1,206,271) 3,686,331
Other financing sources (uses)
Transfers in 2,569,472 2,569,472 2,532,431 (37,041)
Transfers out (366,836) (366,836) (366,377) 459
Total other financing
sources (uses), net 2,202,636 2,202,636 2,166,054 (36,582)
Net change in fund balance (2,537,838) (2,689,966) 959,783 3,649,749
Fund balance,
beginning of year 9,890,674 9,890,674 9,890,674 -
Fund balance, end of year 7,352,836$ 7,200,708$ 10,850,457$ 3,649,749$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE – CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
68
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax 13,440,816$ 13,440,816$ 14,082,518$ 641,702$
Investment income 21,935 21,935 8,577 (13,358)
Total revenues 13,462,751 13,462,751 14,091,095 628,344
Expenditures
General and administrative 9,360,544 9,956,080 9,508,744 447,336
Total expenditures 9,360,544 9,956,080 9,508,744 447,336
Excess of revenues over
expenditures 4,102,207 3,506,671 4,582,351 1,075,680
Other financing uses
Transfers out (3,023,323) (3,062,741) (3,062,741) -
Total other
financing uses (3,023,323) (3,062,741) (3,062,741) -
Net change in fund balance 1,078,884 443,930 1,519,610 1,075,680
Fund balance, beginning of year 3,872,981 3,872,981 3,872,981 -
Fund balance, end of year 4,951,865$ 4,316,911$ 5,392,591$ 1,075,680$
Budgeted Amounts
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
69
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Council adheres to the following 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 expenses and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 30, 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
during the year. The legal level of control is at the fund level.
5. A budget is legally adopted for the general fund and special revenue funds on a
basis consistent with accounting principles generally accepted in the United States of
America. Formal budgetary integration is employed as a management control device
during the year for the general fund and special revenue funds. Appropriations and
encumbrances lapse at year-end.
6. Formal budgetary integration is not employed for the debt service funds because
effective budgetary control is alternatively achieved through general obligation bond
indenture provisions.
7. Budgetary data for the capital projects funds has not been presented in the
accompanying basic 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 Budgetary Comparison Schedules — general fund and car rental tax special
revenue fund present a comparison of budgetary data to actual results. These funds
utilize the same basis of accounting for both budgetary purposes and actual results.
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
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70
NON-MAJOR GOVERNMENTAL FUNDS
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.
Half-Penny Sales Tax Fund – to account for the sales tax revenues and expenditures of
the Euless Development Corp, a component unit of the City of Euless. The revenues can
only be spent on parks, library, debt service, and economic development activities with
the City of Euless.
Police Drug Enforcement Fund – to account for proceeds from the sale of assets seized
in connection with drug arrests. Revenues are used solely for police department
expenditures.
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 for police department operations
and capital as approved by the Crime Control and Prevention District Board.
Public Safety Grant Fund – to account for grant revenues received by the police and fire
departments, which must be spent in accordance with the grant provisions.
Police Seized Asset Fund – to account for resources received from asset forfeiture
pursuant to court judgment File No. 09-13-640 to be administered in compliance with
Chapter 59, Texas Code of Criminal Procedure.
Juvenile Case Fund – to account for a fee added to municipal court citations. This fee is
used to support the expenditures associated with juvenile case processing.
Glade Parks Public Improvement District (PID) Fund – to account for the accumulation of
resources from an assessment levied upon properties within the district boundaries. The
resources are utilized for the repayment of debt issued to fund public improvements
within the district. The district assesses property owners only for the portion of the debt
payment not covered with resources of the Glade Parks TIRZ #3.
Tax Increment Reinvestment Zone #3 - Glade Parks Fund (TIRZ #3) – to account for the
accumulation of a portion of the incremental property taxes from taxing entities
participating in the tax increment reinvestment zone. The resources are used for the
repayment of debt issued to fund public improvements within the zone.
Cable PEG Fees Fund – to account for a 1% fee collected from cable channel providers
for expansion of the city’s public, educational, and governmental access channel.
71
NON-MAJOR GOVERNMENTAL FUNDS – Continued
CAPITAL PROJECTS
Streets Capital Improvements Project (CIP) Fund - to account for street construction and
reconstruction projects and the means of financing such improvements.
Half-Penny Sales Tax Capital Projects Fund – to account for bond proceeds and sales
tax receipts to be expended for capital 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 Capital Projects Fund – to account for various general construction projects
within the City.
Redevelopment Fund – to account for land acquisition and revitalization projects
designed to enhance development and promote redevelopment throughout the
community.
Car Rental Capital Projects (CIP) Fund – to account for the building and infrastructure
projects that are funded from the short-term motor vehicle rental tax.
CITY OF EULESS, TEXAS COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 72 Police CrimeDrug Control and Public Police CableHotel/ Half-Penny Enforce- Prevention Safety Seized Juvenile Glade Parks TIRZ #3 PEGMotel Sales Tax ment District Grant Assets Case PID Glade Parks FeesFund Fund Fund Fund Fund Fund Fund Fund Fund FundASSETSDeposits and investments 163,295$ 2,657,700$ 228,431$ 349,707$ 72,758$ 844,655$ 170,975$ 656,737$ 2,416$ 370,472$ Accounts receivable 146,342 - - - 5,051 - 5,928 - 8,186 35,000 Accrued interest receivable - 5,341 - - - - - - - - Due from other governments - 786,110 - 393,734 - - - - - - Prepaids - 4,034 - 20,670 - - - - - - Restricted deposits and investments - - - - - - - - - - Total assets 309,637$ 3,453,185$ 228,431$ 764,111$ 77,809$ 844,655$ 176,903$ 656,737$ 10,602$ 405,472$ LIABILITIES Liabilities Accounts payable -$ 169,005$ 550$ 11,776$ -$ -$ 3,836$ -$ -$ 315$ Accrued salaries and wages - 58,768 - 66,159 2,302 5,203 2,317 - - - Unearned revenue 55,841 - - - - - - - - - Total liabilities 55,841 227,773 550 77,935 2,302 5,203 6,153 - - 315 DEFERRED INFLOWS OF RESOURCESUnavailable revenue - - - - - - 5,928 - - - FUND BALANCESFund Balances Nonspendable - 4,034 - 20,670 - - - - - - Restricted, debt service - 913,917 - - - - - 656,737 10,602 - Restricted, capital projects - - - - - - - - - - Restricted, historical preservation 1,245 - - - - - - - - - Restricted, juvenile case management - - - - - - 164,822 - - - Restricted, PEG fees - - - - - - - - - 405,157 Restricted, developer agreements - - - - - - - - - - Assigned 252,551 2,307,461 227,881 665,506 75,507 839,452 - - - - Total fund balances 253,796 3,225,412 227,881 686,176 75,507 839,452 164,822 656,737 10,602 405,157 Total liabilities, deferred inflows of resources, and fund balances 309,637$ 3,453,185$ 228,431$ 764,111$ 77,809$ 844,655$ 176,903$ 656,737$ 10,602$ 405,472$ Special Revenue Funds
CITY OF EULESS, TEXAS COMBINING BALANCE SHEET - CONTINUED NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 73 Half-Penny Police General Car Total Streets Sales Tax Developers' Facility Capital Rental Non-majorCIP Capital Contribution Construction Projects Redevelopment CIP GovernmentalFund Projects Fund Fund Fund Fund Fund FundsASSETSDeposits and investments 762,662$ 987,712$ 1,517,544$ 77,552$ 880,340$ 67,737$ 480,696$ 10,291,389$ Accounts receivable - - - - 62,586 - - 263,093 Accrued interest receivable - - 967 - - - - 6,308 Due from other governments - - - - - - - 1,179,844 Prepaids - - - - - - - 24,704 Restricted deposits and investments 398,756 - - - - - - 398,756 Total assets 1,161,418$ 987,712$ 1,518,511$ 77,552$ 942,926$ 67,737$ 480,696$ 12,164,094$ LIABILITIES Liabilities Accounts payable 303,585$ 479$ -$ 73,480$ -$ -$ 505$ 563,531$ Accrued salaries and wages - - - - - - - 134,749 Unearned revenue - - - - - - - 55,841 Total liabilities 303,585 479 - 73,480 - - 505 754,121 DEFERRED INFLOWS OF RESOURCESUnavailable revenue - - - - - - - 5,928 FUND BALANCESFund Balances Nonspendable - - - - - - - 24,704 Restricted, debt service - - - - - - - 1,581,256 Restricted, capital projects 398,756 - - - - - - 398,756 Restricted, historical preservation - - - - - - - 1,245 Restricted, juvenile case management - - - - - - - 164,822 Restricted, PEG fees - - - - - - - 405,157 Restricted, developer agreements - - 1,518,511 - - - - 1,518,511 Assigned 459,077 987,233 - 4,072 942,926 67,737 480,191 7,309,594 Total fund balances 857,833 987,233 1,518,511 4,072 942,926 67,737 480,191 11,404,045 Total liabilities, deferred inflows of resources, and fund balances 1,161,418$ 987,712$ 1,518,511$ 77,552$ 942,926$ 67,737$ 480,696$ 12,164,094$ Capital Projects Funds
CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2014 74 Police CrimeDrug Control and Public Police CableHotel/ Half-Penny Enforce- Prevention Safety Seized Juvenile Glade Parks TIRZ #3 PEGMotel Sales Tax ment District Grant Asset Case PID Glade Parks FeesFund Fund Fund Fund Fund Fund Fund Fund Fund FundRevenues General property tax -$ -$ -$ -$ -$ -$ -$ -$ 110,075$ -$ Gross receipts tax 343,312 - - - - - - - - 135,835 General sales tax - 4,387,330 - 2,169,467 - - - - 21,457 - Investment income 42 11,240 32 110 - 338 27 - - - DEA revenues - - 15,316 - - - - - - - Intergovernmental - - - - - - - - - - Rents and royalties - - - - - - - - - - Other revenues - - 91,927 - 138,746 - 105,483 218,012 - - Total revenues 343,354 4,398,570 107,275 2,169,577 138,746 338 105,510 218,012 131,532 135,835 Expenditures Culture and recreation- 2,616,240 - - - - - - - - Development services- 385,209 - - - - - - - - General and administrative - 222,041 - - - - 73,395 - - 12,411 Highways and Streets - - - - - - - - - - Public safety - - 5,557 2,088,064 216,057 142,842 - - - - Debt service Principal - 875,000 - - - 1,446,603 - - - - Interest and fiscal charges - 29,615 - - - - - - - - Capital outlay - - - - - - - - - 8,734 Total expenditures - 4,128,105 5,557 2,088,064 216,057 1,589,445 73,395 - - 21,145 Excess (deficiency) of revenues over (under) expenditures 343,354 270,465 101,718 81,513 (77,311) (1,589,107) 32,115 218,012 131,532 114,690 Other financing sources (uses) Transfers in - - - - 77,382 - - 500,000 - - Transfers out (344,165) (50,000) - - - - - (117,335) (120,930) - Total other financing sources (uses) (344,165) (50,000) - - 77,382 - - 382,665 (120,930) - Net change in fund balances(811) 220,465 101,718 81,513 71 (1,589,107) 32,115 600,677 10,602 114,690 Fund balance, beginning of year254,607 3,004,947 126,163 604,663 75,436 2,428,559 132,707 56,060 - 290,467 Fund balance, end of year253,796$ 3,225,412$ 227,881$ 686,176$ 75,507$ 839,452$ 164,822$ 656,737$ 10,602$ 405,157$ Special Revenue Funds
CITY OF EULESS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NON-MAJOR GOVERNMENTAL FUNDS – CONTINUED YEAR ENDED SEPTEMBER 30, 2014 75 Half-PennyPolice GeneralCarTotal Streets Sales Tax Developers' Facility CapitalRental Non-majorCIP Capital Contribution Construction Projects Redevelopment CIP GovernmentalFund Projects FundFundFundFundFundFundsRevenues General property tax-$ -$ -$ -$ -$ -$ -$ 110,075$ Gross receipts tax- - - - - - - 479,147 General sales tax- - - - - - - 6,578,254 Investment income2,229 1,987 3,137 26 242 36 2,74022,186 DEA revenues- - - - - - - 15,316 Intergovernmental82,017 - - - - - - 82,017 Rents and royalties- - - - 251,164 - - 251,164 Other revenues- - 169,445 - 10,501- - 734,114 Total revenues84,246 1,987 172,582 26 261,907 36 2,740 8,272,273 Expenditures Culture and recreation- 97,682 161 - - - - 2,714,083 Development services- - - - - - - 385,209 General and administrative- - - - - 29,964 23,462 361,273 Highways and Streets98,368 - - - - - - 98,368 Public safety- - - - - - - 2,452,520 Debt service Principal - - - - - - - 2,321,603 Interest and fiscal charges- - - - - - - 29,615 Capital outlay1,387,795 10,480 - 73,480 - 107,731 382,924 1,971,144 Total expenditures1,486,163 108,162 161 73,480 - 137,695 406,386 10,333,815 Excess (deficiency) of revenues over (under) expenditures(1,401,917) (106,175) 172,421 (73,454) 261,907 (137,659) (403,646) (2,061,542) Other financing sources (uses) Transfers in603,128 50,000 - - - - 167,000 1,397,510 Transfers out- - (101,669) - - - (46,128) (780,227) Total other financing sources (uses)603,128 50,000 (101,669) - - - 120,872 617,283 Net change in fund balances(798,789) (56,175) 70,752 (73,454) 261,907 (137,659) (282,774) (1,444,259) Fund balance, beginning of year1,656,622 1,043,408 1,447,759 77,526 681,019 205,396 762,965 12,848,304 Fund balance, end of year857,833$ 987,233$ 1,518,511$ 4,072$ 942,926$ 67,737$ 480,191$ 11,404,045$ Capital Projects Funds
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
HOTEL / MOTEL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
76
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 305,000$ 305,000$ 343,312$ 38,312$
Investment income 120 120 42 (78)
Total revenues 305,120 305,120 343,354 38,234
Expenditures
General and administrative 55,398 15,398 - 15,398
Total expenditures 55,398 15,398 - 15,398
Other financing uses
Transfers out (304,165) (344,165) (344,165) -
Total other financing uses (304,165) (344,165) (344,165) -
Net change in fund balance (54,443) (54,443) (811) 53,632
Fund balance, beginning of year 254,607 254,607 254,607 -
Fund balance, end of year 200,164$ 200,164$ 253,796$ 53,632$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
HALF-PENNY SALES TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
77
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 4,092,732$ 4,092,732$ 4,387,330$ 294,598$
Investment income 7,800 7,800 11,240 3,440
Total revenues 4,100,532 4,100,532 4,398,570 298,038
Expenditures
Culture and recreation 2,914,410 2,914,410 2,616,240 298,170
Development services 830,763 830,763 385,209 445,554
General and administrative 238,853 274,531 222,041 52,490
Debt service
Principal 875,000 875,000 875,000 -
Interest and fiscal charges 29,615 29,615 29,615 -
Total expenditures 4,888,641 4,924,319 4,128,105 796,214
Excess (deficiency) of revenues
over (under) expenditures (788,109) (823,787) 270,465 1,094,252
Other financing uses
Transfers out (50,000) (50,000) (50,000) -
Total other
financing uses (50,000) (50,000) (50,000) -
Net change in fund balance (838,109) (873,787) 220,465 1,094,252
Fund balance, beginning of year 3,004,947 3,004,947 3,004,947 -
Fund balance, end of year 2,166,838$ 2,131,160$ 3,225,412$ 1,094,252$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
POLICE DRUG ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
78
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 1,000$ 1,000$ 32$ (968)$
DEA revenues - - 15,316 15,316
Other - - 91,927 91,927
Total revenues 1,000 1,000 107,275 106,275
Expenditures
Public safety 500 5,507 5,557 (50)
Total expenditures 500 5,507 5,557 (50)
Net change in fund balance 500 (4,507) 101,718 106,225
Fund balance, beginning of year 126,163 126,163 126,163 -
Fund balance, end of year 126,663$ 121,656$ 227,881$ 106,225$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
CRIME CONTROL AND PREVENTION DISTRICT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
79
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 1,969,642$ 1,969,642$ 2,169,467$ 199,825$
Investment income 160 160 110 (50)
Total revenues 1,969,802 1,969,802 2,169,577 199,775
Expenditures
Public safety 2,220,039 2,220,039 2,088,064 131,975
Total expenditures 2,220,039 2,220,039 2,088,064 131,975
Net change in fund balance (250,237) (250,237) 81,513 331,750
Fund balance, beginning of year 604,663 604,663 604,663 -
Fund balance, end of year 354,426$ 354,426$ 686,176$ 331,750$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
PUBLIC SAFETY GRANT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
80
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 69,958$ 92,458$ 138,746$ 46,288$
Total revenues 69,958 92,458 138,746 46,288
Expenditures
Public safety 171,427 171,427 216,057 (44,630)
Total expenditures 171,427 171,427 216,057 (44,630)
Other financing sources
Transfers in 78,969 78,969 77,382 (1,587)
Total other financing sources 78,969 78,969 77,382 (1,587)
Net change in fund balance (22,500) - 71 71
Fund balance, beginning of year 75,436 75,436 75,436 -
Fund balance, end of year 52,936$ 75,436$ 75,507$ 71$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
POLICE SEIZED ASSETS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
81
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income -$ -$ 338$ 338$
DEA revenues - - - -
Total revenues - - 338 338
Expenditures
Public safety 271,234 271,234 142,842 128,392
Principal 1,446,603 1,446,603 1,446,603 -
Total expenditures 1,717,837 1,717,837 1,589,445 128,392
Net change in fund balance (1,717,837) (1,717,837) (1,589,107) 128,730
Fund balance, beginning of year 2,428,559 2,428,559 2,428,559 -
Fund balance, end of year 710,722$ 710,722$ 839,452$ 128,730$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
JUVENILE CASE SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
82
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income -$ -$ 27$ 27$
Other revenues 87,500 87,500 105,483 17,983
Total revenues 87,500 87,500 105,510 18,010
Expenditures
General and administrative 81,780 81,780 73,395 8,385
Total expenditures 81,780 81,780 73,395 8,385
Net change in fund balance 5,720 5,720 32,115 26,395
Fund balance, beginning of year 132,707 132,707 132,707 -
Fund balance, end of year 138,427$ 138,427$ 164,822$ 26,395$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
GLADE PARKS PID SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
83
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 218,012$ 218,012$ 218,012$ -$
Total revenues 218,012 218,012 218,012 -
Other financing sources (uses)
Transfers in 500,000 500,000 500,000 -
Transfers out (124,802) (124,802) (117,335) 7,467
Total other
financing sources (uses) 375,198 375,198 382,665 7,467
Net change in fund balance 593,210 593,210 600,677 7,467
Fund balance, beginning of year 56,060 56,060 56,060 -
Fund balance, end of year 649,270$ 649,270$ 656,737$ 7,467$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
TIRZ #3 GLADE PARKS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
84
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax 110,028$ 110,028$ 110,075$ 47$
General sales tax 6,414 6,414 21,457 15,043
Total revenues 116,442 116,442 131,532 15,090
Other financing uses
Transfers out (116,442) (120,930) (120,930) -
Total other
financing uses (116,442) (120,930) (120,930) -
Net change in fund balance - (4,488) 10,602 15,090
Fund balance, beginning of year - - - -
Fund balance, end of year -$ (4,488)$ 10,602$ 15,090$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL
CABLE PEG FEES SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2014
85
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross tax receipts -$ -$ 135,835$ 135,835$
Total revenues - - 135,835 135,835
Expenditures
General and administrative 90,000 90,000 21,145 68,855
Total expenditures 90,000 90,000 21,145 68,855
Net change in fund balance (90,000) (90,000) 114,690 204,690
Fund balance, beginning of year 290,467 290,467 290,467 -
Fund balance, end of year 200,467$ 200,467$ 405,157$ 204,690$
Budgeted Amounts
86
NON-MAJOR PROPRIETARY FUNDS
Enterprise funds are used to account for operations financed and operated in a manner similar
to private business enterprises where the intent of the government's council is to recover the
costs of providing goods or services to the general public on a continuing basis primarily
through user charges; or where the government's council has decided that periodic
determination of net income is appropriate for accountability purposes.
Recreation Classes – to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Texas Star Sports Complex – to account for the operation and maintenance of
Softball World and The Parks at Texas Star Complexes, supported primarily by
user charges.
Arbor Daze Fund – to account for the receipts and disbursements of the annual
Arbor Daze Festival, supported primarily by user charges.
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2014
(1 of 2)
87
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
ASSETS
Current assets
Deposits and investments 314,445$ 1,856,963$ 27,098$ 2,198,506$
Accounts receivable and
unbilled revenue 83 27,129 - 27,212
Prepaids and deposits 385 14,326 - 14,711
Inventory 110 75,653 - 75,763
Total current assets 315,023 1,974,071 27,098 2,316,192
Non-current assets
Net OPEB asset 555 3,049 - 3,604
Total non-current assets 555 3,049 - 3,604
Property, plant, and equipment, at cost
Land - 584,532 - 584,532
Building - 488,275 - 488,275
Equipment 88,811 126,498 - 215,309
Improvements - 8,150,654 - 8,150,654
Total property, plant, and equipment 88,811 9,349,959 - 9,438,770
Less accumulated depreciation 68,755 4,352,134 - 4,420,889
Net property, plant, and equipment 20,056 4,997,825 - 5,017,881
Total non-current assets 20,611 5,000,874 - 5,021,485
Total assets 335,634$ 6,974,945$ 27,098$ 7,337,677$
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding -$ 13,290$ -$ 13,290$
Total deferred outflows of resources -$ 13,290$ -$ 13,290$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2014
(2 of 2)
88
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable 9,813$ 43,092$ - $ 52,905$
Accrued salaries and wages 1,979 21,701 - 23,680
Current portion of bonds payable - 150,000 - 150,000
Accrued interest - 1,550 - 1,550
Total current liabilities 11,792 216,343 - 228,135
Non-current liabilities
Net pension obligation - 10,924 - 10,924
Bonds payable - 175,848 - 175,848
Total non-current liabilities - 186,772 - 186,772
Total liabilities 11,792 403,115 - 414,907
NET POSITION
Net investment in capital assets 20,056 4,685,267 - 4,705,323
Unrestricted 303,786 1,899,853 27,098 2,230,737
Total net position 323,842$ 6,585,120$ 27,098$ 6,936,060$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2014
89
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
Operating revenues
Recreation fees 527,281$ -$ -$ 527,281$
Service fees and miscellaneous - 1,638,224 76,415 1,714,639
Total operating revenues 527,281 1,638,224 76,415 2,241,920
Operating expenses
Recreation classes 564,986 - - 564,986
Texas Star Sports Complex - 1,313,986 - 1,313,986
Arbor Daze - - 82,852 82,852
Depreciation 4,057 306,097 - 310,154
Amortization - (1,279) - (1,279)
Total operating expenses 569,043 1,618,804 82,852 2,270,699
Operating income (loss) (41,762) 19,420 (6,437) (28,779)
Nonoperating revenues (expenses)
Gain on sale of capital asset 3,345 - - 3,345
Investment income 108 658 4 770
Interest expense - (13,525) - (13,525)
Total nonoperating revenues
(expenses), net 3,453 (12,867) 4 (9,410)
Change in net position (38,309) 6,553 (6,433) (38,189)
Net position, beginning, as restated 362,151 6,578,567 33,531 6,974,249
Net position, end of year 323,842$ 6,585,120$ 27,098$ 6,936,060$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2014
90
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers 527,862$ 1,641,545$ 76,415$ 2,245,822$
Cash payments to suppliers for goods and services (389,296) (1,023,974) (82,852) (1,496,122)
Cash payments to employees for services (176,519) (284,992) - (461,511)
Net cash provided by (used in) operating activities (37,953) 332,579 (6,437) 288,189
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds - (13,900) - (13,900)
Reduction in bonds payable - (150,000) - (150,000)
Proceeds from sale of capital assets 3,345 - - 3,345
Purchases of capital assets (15,034) - - (15,034)
Net cash used in capital
and related financing activities (11,689) (163,900) - (175,589)
INVESTING ACTIVITIES
Interest received on investments 108 658 4 770
Net cash provided by investing activities 108 658 4 770
Net change in cash and
and cash equivalents (49,534) 169,337 (6,433) 113,370
Cash and cash equivalents, beginning of year 363,979 1,687,626 33,531 2,085,136
Cash and cash equivalents, end of year 314,445$ 1,856,963$ 27,098$ 2,198,506$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss) (41,762)$ 19,420$ (6,437)$ (28,779)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities
Depreciation and amortization 4,057 304,818 - 308,875
Changes in assets and liabilities
Accounts receivable and unbilled revenue 581 3,321 - 3,902
Prepaids and deposits 613 3,114 - 3,727
Net OPEB asset - 1,076 - 1,076
Net pension obligation - 647 - 647
Inventory (110) (8,188) - (8,298)
Accounts payable (757) 3,519 - 2,762
Accrued salaries and wages (575) 4,852 - 4,277
Net cash provided by (used in) operating activities (37,953)$ 332,579$ (6,437)$ 288,189$
91
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 City and to other government units on a cost
reimbursement basis.
Equipment Replacement Fund – to account for the accumulation of funds to be
used for replacement of existing equipment. Funding is provided annually by the
user departments.
Insurance Fund – to account for the revenues and expenses resulting from
providing health insurance to the City's employees.
Risk Management/Workers’ Compensation (Risk/WC) Fund – to account for the
revenue and expenses applicable to providing workers’ compensation coverage for
all City employees, as well as, general liability and property coverage.
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2014
92
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Deposits and investments 2,561,848$ 2,900,731$ 2,031,722$ 7,494,301$
Accounts receivable 215,600 102,581 - 318,181
Accrued interest receivable 296 6,433 311 7,040
Total current assets 2,777,744 3,009,745 2,032,033 7,819,522
Property, plant, and equipment, at cost
Equipment 9,676,555 - 70,214 9,746,769
Less accumulated depreciation 6,681,597 - 13,645 6,695,242
Net property, plant, and equipment 2,994,958 - 56,569 3,051,527
Total assets 5,772,702 3,009,745 2,088,602 10,871,049
Accounts payable 389,021 3,396 370,008 762,425
Accrued salary and wages - 2,188 4,137 6,325
Accrued insurance claims - 487,899 249,566 737,465
Total liabilities 389,021 493,483 623,711 1,506,215
Net investment in capital assets 2,994,958 - 56,569 3,051,527
Unrestricted 2,388,723 2,516,262 1,408,322 6,313,307
Total net position 5,383,681$ 2,516,262$ 1,464,891$ 9,364,834$
ASSETS
LIABILITIES
NET POSITION
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2014
93
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Operating revenues
Insurance premiums -$ 5,310,979$ 354,660$ 5,665,639$
Service fees and miscellaneous 942,906 29,437 - 972,343
Total operating revenues 942,906 5,340,416 354,660 6,637,982
Operating expenses
General and administrative 142,236 921,817 87,913 1,151,966
Insurance costs - 4,555,987 603,537 5,159,524
Depreciation 720,448 - 4,731 725,179
Total operating expenses 862,684 5,477,804 696,181 7,036,669
Operating income (loss) 80,222 (137,388) (341,521) (398,687)
Nonoperating revenues
Gain on sale of capital assets 88,445 - - 88,445
Investment income 3,369 6,821 2,306 12,496
Total nonoperating revenues 91,814 6,821 2,306 100,941
Income (loss) before transfers 172,036 (130,567) (339,215) (297,746)
Other financing sources
Transfers in 149,670 - 450,000 599,670
Change in net position 321,706 (130,567) 110,785 301,924
Net position, beginning of year 5,061,975 2,646,829 1,354,106 9,062,910
Net position, end of year 5,383,681$ 2,516,262$ 1,464,891$ 9,364,834$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2014
94
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers 1,456,158$ 5,360,041$ 354,660$ 7,170,859$
Cash payments to suppliers for goods and services (475,238) (5,272,653) (521,107) (6,268,998)
Cash payments to employees for services - (46,303) (45,341) (91,644)
Net cash provided by (used in) operating activities 980,920 41,085 (211,788) 810,217
NONCAPITAL FINANCING ACTIVITIES
Transfers in 149,670 - 450,000 599,670
Net cash provided by noncapital financing activities 149,670 - 450,000 599,670
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (1,522,291) - (56,344) (1,578,635)
Proceeds from sale of capital assets 246,445 - - 246,445
Net cash used in capital and related financing activities (1,275,846) - (56,344) (1,332,190)
INVESTING ACTIVITIES
Interest received on investments 3,245 2,213 2,115 7,573
Net cash provided by investing activities 3,245 2,213 2,115 7,573
Net increase (decrease) in cash and cash equivalents (142,011) 43,298 183,983 85,270
Cash and cash equivalents, beginning of year 2,703,859 2,857,433 1,847,739 7,409,031
Cash and cash equivalents, end of year 2,561,848$ 2,900,731$ 2,031,722$ 7,494,301$
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss) 80,222$ (137,388)$ (341,521)$ (398,687)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation expense 720,448 - 4,731 725,179
Change in assets and liabilities
Receivables (207,196) 19,625 - (187,571)
Prepaids - 54,775 - 54,775
Accounts payable 387,446 (6,085) (11,791) 369,570
Accrued salaries and wages - (5,084) (105) (5,189)
Accrued insurance claims - 115,242 136,898 252,140
Net cash provided by (used in) operating activities 980,920$ 41,085$ (211,788)$ 810,217$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ESCROW AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2014
95
Balance Balance
October 1, September 30,
2013 Additions Deductions 2014
Stars Center Escrow Fund
Assets
Investments at fair value 1,420,710$ 478$ (522)$ 1,420,666$
Total assets 1,420,710$ 478$ (522)$ 1,420,666$
Liabilities
Due to other entities 1,420,547$ -$ -$ 1,420,547$
Refunds payable 163 119 (163) 119
Total liabilities 1,420,710$ 119$ (163)$ 1,420,666$
Glade Parks Escrow Fund
Assets
Investments at fair value 283,742$ 475,009$ (758,751)$ -$
Total assets 283,742$ 475,009$ (758,751)$ -$
Liabilities
Due to other entities 283,742$ 475,009$ (758,751)$ -$
Total liabilities 283,742$ 475,009$ (758,751)$ -$
Glade Parks III Escrow Fund
Assets
Investments at fair value -$ 5,871,398$ (3,722,750)$ 2,148,648$
Total assets -$ 5,871,398$ (3,722,750)$ 2,148,648$
Liabilities
Due to other entities -$ 5,871,398$ (3,722,750)$ 2,148,648$
Total liabilities -$ 5,871,398$ (3,722,750)$ 2,148,648$
Glade Parks IV Escrow Fund
Assets
Investments at fair value -$ 1,768,463$ (328,675)$ 1,439,788$
Total assets -$ 1,768,463$ (328,675)$ 1,439,788$
Liabilities
Due to other entities -$ 1,768,463$ (328,675)$ 1,439,788$
Total liabilities -$ 1,768,463$ (328,675)$ 1,439,788$
Total Agency Funds
Assets
Investments at fair value 1,704,452$ 8,115,348$ (4,810,698)$ 5,009,102$
Total assets 1,704,452$ 8,115,348$ (4,810,698)$ 5,009,102$
Liabilities
Due to other entities 1,704,289$ 8,114,870$ (4,810,176)$ 5,008,983$
Refunds payable 163 119 (163) 119
Total liabilities 1,704,452$ 8,114,989$ (4,810,339)$ 5,009,102$
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STATISTICAL SECTION
(Unaudited)
96
STATISTICAL SECTION
(Unaudited)
The statistical section of the City of Euless’ comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the City’s
overall financial health.
Contents Tables
Financial Trends 1-4
The financial trend schedules contain trend information to help the reader
understand how the City’s financial performance and well-being have changed
over time.
Revenue Capacity 5-8
The revenue capacity schedules contain information to help the reader assess
the City’s most significant local revenue source, the property tax.
Debt Capacity 9-13
The debt capacity schedules present information to help the reader assess the
affordability of the City’s current level of outstanding debt (including that of its
blended component units) and the City’s ability to issue additional debt in the
future.
Demographic and Economic Information 14-15
The demographic and economic schedules offer demographic and economic
indicators to help the reader understand the environment within which the
City’s financial activities occur.
Operating Information 16-18
The operating information schedules contain service and infrastructure data to
help the reader understand how the information in the City’s financial report
relates to the services it provides and the activities it performs.
CITY OF EULESS, TEXAS NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 1 97 Fiscal Year2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Governmental activitiesNet investment in capital assets 49,659,438$ 49,883,218$ 58,251,542$ 60,799,897$ 66,241,593$ 73,815,504$ 71,051,094$ 77,828,950$ 88,228,282$ 94,162,906$ Restricted 1,455,709 1,448,741 1,725,998 1,813,871 1,845,987 1,375,950 1,818,957 4,426,819 4,138,774 4,999,085 Unrestricted 17,512,832 25,497,497 27,104,410 31,041,434 29,885,070 24,933,443 31,448,528 27,192,202 24,910,579 23,921,387 Total governmental activities net position 68,627,979$ 76,829,456$ 87,081,950$ 93,655,202$ 97,972,650$ 100,124,897$ 104,318,579$ 109,447,971$ 117,277,635$ 123,083,378$ Business-type activitiesNet investment in capital assets 47,988,447$ 48,278,044$ 50,186,697$ 52,155,251$ 53,569,070$ 53,318,214$ 53,132,882$ 52,202,849$ 52,334,570$ 55,160,900$ Restricted for debt service - - - - 3,963,919 438,340 438,948 309,595 314,171 317,758 Restricted for capital projects232,300 Restricted for impact fees and debt service - - - - - 2,999,156 2,649,336 2,401,217 2,740,656 1,876,393 Unrestricted 15,830,507 19,099,883 16,421,971 16,900,637 12,980,130 13,987,730 16,947,928 17,703,257 18,150,441 15,047,592 Total business-type activities net position 63,818,954$ 67,377,927$ 66,608,668$ 69,055,888$ 70,513,119$ 70,743,440$ 73,169,094$ 72,616,918$ 73,539,838$ 72,634,943$ Primary governmentNet investment in capital assets 97,647,885$ 98,161,262$ 108,438,239$ 112,955,148$ 119,810,663$ 127,133,718$ 124,183,976$ 130,031,799$ 140,562,852$ 149,323,806$ Restricted 1,455,709 1,448,741 1,725,998 1,813,871 5,809,906 1,814,290 4,907,241 7,137,631 7,193,601 7,425,536 Unrestricted 33,343,339 44,597,380 43,526,381 47,942,071 42,865,200 38,921,173 48,396,456 44,895,459 43,061,020 38,968,979 Total primary government net position 132,446,933$ 144,207,383$ 153,690,618$ 162,711,090$ 168,485,769$ 167,869,181$ 177,487,673$ 182,064,889$ 190,817,473$ 195,718,321$ Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS CHANGES IN NET POSITION – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 2 98 Fiscal Year2005 2006 2007 2008 2009 2010 2011 2012 2013 2014ExpensesGovernmental activities:Culture and recreation 4,573,219$ 4,892,346$ 5,002,569$ 4,862,749$ 4,892,936$ 5,004,580$ 5,091,589$ 5,680,772$ 6,025,540$ 6,424,683$ Development services 1,113,875 1,169,285 1,487,102 1,420,477 1,707,421 1,692,845 1,707,148 972,770 1,155,089 1,367,005 General and administrative 13,370,907 15,122,831 16,495,449 17,733,714 17,267,094 14,571,600 15,698,832 15,910,313 17,145,752 18,017,535 Highways and streets 1,734,487 2,211,083 2,206,697 2,534,856 2,057,123 2,662,949 2,923,241 2,968,770 3,334,188 3,578,341 Public safety 15,514,301 16,252,071 17,047,334 18,708,849 19,379,290 21,416,966 20,754,733 22,316,429 23,324,328 24,278,144 Interest on long-term debt 2,572,094 2,741,754 2,664,658 3,151,039 2,377,564 1,885,177 1,618,420 1,327,482 1,227,084 1,126,017 Total governmental activities expenses 38,878,883 42,389,370 44,903,809 48,411,684 47,681,428 47,234,117 47,793,963 49,176,536 52,211,981 54,791,725 Business-type activities:Water and wastewater 13,227,562 15,285,026 15,418,299 16,462,599 15,623,464 17,035,520 17,827,272 17,813,199 18,554,761 20,298,024 Drainage utility 875,995 884,763 1,059,272 932,771 947,869 1,107,206 1,177,938 1,283,617 1,245,838 1,373,036 Golf 3,792,552 4,003,035 4,250,866 4,421,256 4,690,701 4,460,627 4,483,252 4,599,099 4,750,359 4,152,015 Other recreation enterprises 2,630,760 1,842,550 2,109,291 2,155,131 2,016,273 1,866,786 1,982,613 2,115,730 2,312,949 2,288,337 Total business-type activities expenses 20,526,869 22,015,374 22,837,728 23,971,757 23,278,307 24,470,139 25,471,075 25,811,645 26,863,907 28,111,412 Total primary government expenses 59,405,752 64,404,744 67,741,537 72,383,441 70,959,735 71,704,256 73,265,038 74,988,181 79,075,888 82,903,137 Program RevenuesGovernmental activities:Fees, fines, and charges for servicesCulture and recreation 91,925 92,837 83,084 65,349 67,283 66,368 69,950 65,912 297,361$ 304,283 Development services 896,894 841,033 833,822 688,348 783,955 751,323 779,939 1,263,477 1,186,347 1,321,040 General and administrative 1,241,408 1,706,000 1,252,030 1,391,437 4,092,387 1,548,497 1,707,890 1,760,023 1,383,779 1,347,600 Highways and streets - 6,300 (8,026) 722,334 11,008 - - 54,622 112,736 218,012 Public safety 3,734,364 4,505,202 4,423,564 5,439,171 4,030,566 4,345,101 3,271,115 3,097,141 3,355,604 3,567,917 Operating grants and contributions 1,302,332 592,231 411,857 486,862 487,059 511,093 469,404 481,655 2,978,933 633,080 Capital grants and contributions - 8,706 2,199,106 1,885,266 268,130 602,372 1,015,402 689,642 1,213,341 1,552,118 Total governmental activities program revenues 7,266,923 7,752,309 9,195,437 10,678,767 9,740,388 7,824,754 7,313,700 7,412,472 10,528,101 8,944,050 Business-type activities:Charges for servicesWater and wastewater 14,213,072 16,065,814 13,730,467 15,849,209 16,381,801 17,321,670 19,978,802 18,437,963 19,183,198 19,353,144 Drainage utility 659,949 658,231 701,476 661,725 689,889 691,800 694,751 705,474 708,984 712,971 Golf 3,347,922 3,777,018 3,825,486 3,904,008 4,069,151 5,279,259 4,746,242 4,335,149 4,520,224 3,622,952 Other recreation enterprises 2,453,905 1,518,386 1,636,883 1,819,459 1,703,196 1,937,416 2,684,905 2,041,878 2,138,600 2,241,920 Operating grants and contributions 3,308,393 - - - - - - - - - Capital grants and contributions - 312,835 1,012,919 2,183,600 1,705,746 26,400 772,714 368,882 1,847,097 2,037,263 Total business-type activities program revenues 23,983,241 22,332,284 20,907,231 24,418,001 24,549,783 25,256,545 28,877,414 25,889,346 28,398,103 27,968,250 Total primary government program revenues 31,250,164 30,084,593 30,102,668 35,096,768 34,290,171 33,081,299 36,191,114 33,301,818 38,926,204 36,912,300 (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued)
CITY OF EULESS, TEXAS CHANGES IN NET POSITION – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) – Continued Table 2 99 Net (Expense) RevenueGovernmental activities (31,611,960)$ (34,637,061)$ (35,708,372)$ (37,732,917)$ (37,941,040)$ (39,409,363)$ (40,480,263)$ (41,764,064)$ (41,683,880)$ (45,847,675)$ Business-type activities 3,456,372 316,910 (1,930,497) 446,244 1,271,476 786,406 3,406,339 77,701 1,534,196 (143,162) Total primary government net expense (28,155,588) (34,320,151) (37,638,869) (37,286,673) (36,669,564) (38,622,957) (37,073,924) (41,686,363) (40,149,684) (45,990,837) General Revenues and Other Changes in Net PositionGovernmental activities:TaxesProperty taxes, levied for general purposes 10,777,414 11,188,598 12,343,359 12,231,294 12,685,268 12,306,387 11,855,993 12,451,543 12,744,753 13,488,816 Sales taxes 9,648,979 12,303,965 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 14,957,757 16,142,357 17,525,123 Car rental taxes 10,841,899 12,580,371 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 12,933,884 13,592,255 14,082,518 Mixed beverage taxes 82,759 85,659 87,400 84,653 76,433 71,653 66,383 54,138 60,823 69,160 Hotel/motel occupancy taxes 179,989 216,591 240,457 234,780 185,417 237,429 272,809 292,931 329,368 343,312 Gross receipts taxes 3,326,641 4,116,704 3,619,955 3,816,501 4,074,355 3,967,036 4,174,627 4,276,136 4,209,564 4,458,682 Investment income 870,841 1,611,815 2,031,580 1,727,542 863,225 292,761 168,929 132,607 106,521 70,374 Contributions from property owners 1,229,401 - - - - - - - - - Rents and royalties - - - - - - - 397,527 1,481,305 1,390,283 Gain/(loss) on disposal of assets (21,023) 24,866 74,163 71,143 37,909 116,978 100,110 68,329 117,763 84,664 Miscellaneous - - - - 11,018 103,569 1,419,512 637,975 35,884 48,773 Transfers 608,721 709,969 617,418 (1,012,140) 90,303 647,463 904,867 690,629 692,951 531,974 Total governmental activities 37,545,621 42,838,538 45,960,866 44,306,169 42,258,488 41,561,610 44,673,945 46,893,456 49,513,544 52,093,679 Business-type activities:Investment income 407,468 771,888 1,023,865 726,385 254,071 87,799 66,161 60,752 40,045 34,063 Contributions from property owners 374,124 271,707 253,786 252,045 - - - - - - Gain/(loss) on disposal of assets - - 277,004 - - 3,579 (141,979) - 41,630 - Miscellaneous - 2,908,437 224,001 10,406 21,987 - - - - - Transfers (608,721) (709,969) (617,418) 1,012,140 (90,303) (647,463) (904,867) (690,629) (692,951) (531,974) Total business-type activities 172,871 3,242,063 1,161,238 2,000,976 185,755 (556,085) (980,685) (629,877) (611,276) (497,911) Total primary government 37,718,492 46,080,601 47,122,104 46,307,145 42,444,243 41,005,525 43,693,260 46,263,579 48,902,268 51,595,768 Change in Net PositionGovernmental activities 5,933,661 8,201,477 10,252,494 6,573,252 4,317,448 2,152,247 4,193,682 5,129,392 7,829,664 6,246,004 Business-type activities 3,629,243 3,558,973 (769,259) 2,447,220 1,457,231 230,321 2,425,654 (552,176) 922,920 (641,073) Total primary government 9,562,904$ 11,760,450$ 9,483,235$ 9,020,472$ 5,774,679$ 2,382,568$ 6,619,336$ 4,577,216$ 8,752,584$ 5,604,931$ (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded)Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS FUND BALANCES, GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS (Modified accrual basis of accounting – Unaudited) Table 3 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014General FundReserved for other 239,592$ 310,956$ 392,950$ 362,018$ 354,882$ 492,776$ -$ -$ -$ -$ Nonspendable - - - - - - 19,344 28,796 49,262 48,072 Restricted - - - - - - 311,076 258,765 124,312 120,093 Assigned - - - - - - 103,423 111,096 121,542 121,334 Unreserved/Unassigned 6,363,113 8,989,805 10,594,492 8,355,946 7,288,976 7,121,683 7,296,719 8,913,078 9,595,558 10,560,958 Total general fund 6,602,705$ 9,300,761$ 10,987,442$ 8,717,964$ 7,643,858$ 7,614,459$ 7,730,562$ 9,311,735$ 9,890,674$ 10,850,457$ All Other Governmental FundsReserved for:Debt service 1,642,766$ 1,587,754$ 1,893,893$ 1,967,502$ 1,987,783$ 1,622,584$ -$ -$ -$ -$ Development Agreements 1,470,156 1,535,647 1,598,658 1,671,038 1,553,876 1,454,496 - - - - Other 1,245 1,245 1,245 1,245 1,245 7,677 - - - - Unreserved, reported in:Special revenue funds 8,086,786 7,643,232 11,330,717 5,741,072 6,020,996 7,780,378 - - - - Capital funds 11,110,293 7,482,417 4,627,428 10,940,619 10,918,516 5,792,872 - - - - Nonspendable - - - - - - 5,665 5,803 9,464 34,704 Restricted for:Debt service - - - - - - 1,818,957 1,867,971 1,776,644 2,377,710 Capital projects - - - - - - 2,168,956 606,505 365,641 398,756 Other - - - - - - 87,972 1,694,821 1,872,178 2,089,735 Assigned - - - - - - 14,855,820 15,802,863 13,504,412 12,692,185 Total all other governmental funds 22,311,246$ 18,250,295$ 19,451,941$ 20,321,476$ 20,482,416$ 16,658,007$ 18,937,370$ 19,977,963$ 17,528,339$ 17,593,090$ Source: Comprehensive Annual Financial ReportsNote: The City of Euless first applied GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions'" in fiscal year 2011. Reclassification of fund balances for prior years was not required.
CITY OF EULESS, TEXAS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting – Unaudited) Table 4 101 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Revenues:General property tax 11,138,582$ 11,266,615$ 12,482,090$ 12,200,974$ 12,735,324$ 12,277,457$ 11,786,579$ 12,382,757$ 12,893,583$ 13,468,394$ Gross receipts tax 3,589,389 4,418,954 3,947,812 4,135,934 4,336,205 4,276,110 4,513,819 4,623,205 4,599,755 4,871,154 General sales tax 9,648,979 12,303,965 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 14,957,757 16,142,357 17,525,123 Car rental tax 10,841,899 12,580,371 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 12,933,884 13,592,255 14,082,518 Fines and fees 3,662,327 4,089,056 4,348,839 4,297,304 4,086,594 4,336,063 4,033,868 4,278,738 4,627,199 4,646,390 Licenses and permits 870,010 806,476 804,404 752,421 783,955 719,918 744,978 1,233,465 1,152,875 1,286,753 Investment income 798,485 1,468,812 1,784,492 1,512,898 742,444 253,302 143,564 107,195 92,118 57,880 DEA revenues 14,607 77,461 5,360 26,580 14,883 15,350 6,589 12,488 3,571 15,316 Intergovernmental 303,713 315,487 334,979 353,567 379,503 376,512 377,660 1,012,673 2,839,545 461,484 Rents and royalties - - - - - 1,620,210 1,233,686 1,111,873 1,024,021 1,390,283 Other revenues 2,238,652 2,015,047 1,513,511 2,924,573 4,300,564 978,179 1,194,966 1,206,611 1,383,172 1,210,086 Total Revenues 43,106,643 49,342,244 52,168,021 53,356,647 51,614,032 48,671,435 49,746,424 53,860,646 58,350,451 59,015,381 Expenditures:Culture and recreation 3,890,845 4,079,825 4,500,202 4,461,329 4,350,573 4,120,435 4,335,786 4,676,100 5,171,477 5,558,463 Development services 1,079,073 1,117,614 1,461,222 1,232,277 1,355,105 1,251,706 1,340,898 688,296 806,275 1,017,903 General and administrative 12,494,352 14,860,076 16,377,711 17,660,608 16,230,408 14,796,474 15,610,772 15,539,673 17,207,934 17,711,441 Highways and streets 670,742 656,964 693,711 943,171 861,885 610,996 713,742 861,748 1,144,223 1,351,404 Public safety 14,409,786 15,334,138 16,958,988 17,930,526 18,560,852 19,011,663 19,492,862 21,074,399 22,192,488 23,121,457 Debt Service:Principal 2,600,000 2,790,000 3,030,000 3,010,000 2,990,000 3,110,000 3,445,000 8,210,000 3,975,000 5,567,404 Interest and fiscal charges 2,939,783 2,596,934 2,577,106 2,437,894 2,312,734 2,189,070 1,798,615 1,361,259 1,241,776 1,148,069 Issuance costs 128,000 97,810 5,946 - - 95,000 178,229 184,966 26,064 - Capital outlay 4,248,437 7,997,263 3,777,225 5,843,641 5,730,944 6,865,802 4,805,147 3,727,193 10,390,582 2,672,010 Total expenditures 42,461,018 49,530,624 49,382,111 53,519,446 52,392,501 52,051,146 51,721,051 56,323,634 62,155,819 58,148,151 Excess (deficiency) of revenuesover (under) expenditures 645,625 (188,380) 2,785,910 (162,799) (778,469) (3,379,711) (1,974,627) (2,462,988) (3,805,368) 867,230 Other Financing Sources (Uses):Proceeds from capital lease - - - - - - 494,322 - 1,446,603 - Proceeds from issuance of debt 13,900,000 6,710,000 - - - 8,110,000 9,610,000 9,740,000 1,160,000 - Payment of escrow for refunding (14,386,070) (6,879,482) - - - (8,443,763) (6,804,790) (5,381,310) (1,190,252) - Bond premium 508,038 - - - - - 390,694 260,435 79,046 - Bond discount - - - - - (94,828) - - - - Transfers in 2,435,617 5,536,285 2,920,599 12,313,757 4,461,419 3,371,742 5,696,323 8,134,018 6,278,531 4,366,649 Transfers out (2,351,396) (6,541,319) (2,818,181) (13,550,897) (4,596,116) (3,417,248) (5,016,456) (7,668,389) (5,839,245) (4,209,345) Total other financing sources 106,189 (1,174,516) 102,418 (1,237,140) (134,697) (474,097) 4,370,093 5,084,754 1,934,683 157,304 Net change in fund balances 751,814$ (1,362,896)$ 2,888,328$ (1,399,939)$ (913,166)$ (3,853,808)$ 2,395,466$ 2,621,766$ (1,870,685)$ 1,024,534$ Debt service as a percentageof noncapital expenditures 14.8% 13.2% 12.3% 11.4% 11.4% 11.9% 11.6% 18.5% 10.1% 12.4%Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY – LAST TEN FISCAL YEARS (Unaudited) Table 5 102 Total Total Less: Total Taxable DirectFiscal Real Personal Market Tax-Exempt Assessed TaxYear Property Property Value Property Value Rate2005 2,029,651,370 428,198,142 2,457,849,512 271,935,496 2,185,914,016 0.4950002006 2,190,313,348 375,328,844 2,565,642,192 312,107,619 2,253,534,573 0.4917772007 2,324,055,440 424,995,712 2,749,051,152 308,569,035 2,440,482,117 0.4895002008 2,438,826,320 464,735,670 2,903,561,990 320,650,590 2,582,911,400 0.4700002009 2,477,673,867 508,213,527 2,985,887,394 325,886,654 2,660,000,740 0.4700002010 2,470,282,654 449,954,489 2,920,237,143 330,392,987 2,589,844,156 0.4700002011 2,473,997,250 390,731,885 2,864,729,135 341,730,427 2,522,998,708 0.4700002012 2,610,172,289 389,778,962 2,999,951,251 348,227,246 2,651,724,005 0.4700002013 2,661,959,213 445,909,463 3,107,868,676 351,726,906 2,756,141,770 0.4700002014 2,759,268,619 461,065,240 3,220,333,859 356,283,956 2,864,049,903 0.470000Source: Tarrant Appraisal DistrictEstimated Market Value
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) – LAST TEN FISCAL YEARS (Unaudited) Table 6 103 Fiscal YearOperating / General RateGeneral Obligation Debt ServiceTotal Direct RateHurst-Euless-Bedford ISDGrapevine-Colleyville ISDTarrant CountyTarrant County Hospital DistrictTarrant County Community College2005 0.331396 0.163604 0.495000 1.7105 1.7000 0.2725 0.2354 0.13942006 0.340321 0.151456 0.491777 1.7230 1.7000 0.2725 0.2354 0.13942007 0.343227 0.146273 0.489500 1.5975 1.5743 0.2715 0.2354 0.13942008 0.340341 0.129659 0.470000 1.3037 1.2900 0.2665 0.2304 0.13942009 0.351937 0.118063 0.470000 1.2950 1.2900 0.2640 0.2279 0.13802010 0.360791 0.109209 0.470000 1.2955 1.2900 0.2640 0.2280 0.13772011 0.343905 0.126095 0.470000 1.2882 1.2900 0.2640 0.2279 0.13762012 0.345388 0.124612 0.470000 1.4140 1.3100 0.2640 0.2280 0.14902013 0.355130 0.114870 0.470000 1.4075 1.3201 0.2640 0.2279 0.14902014 0.360619 0.109381 0.470000 1.3875 1.3201 0.2640 0.2279 0.1495Sources: City of Euless Budget Office, Tarrant Appraisal DistrictOverlapping RatesCity Direct Rates
CITY OF EULESS, TEXAS PRINCIPAL PROPERTY TAX PAYERS Current Year and Nine Years Ago (Unaudited) Table 7 104 Percentage Percentageof Total City of Total CityTaxable Taxable Taxable TaxableAssessed Assessed Assessed AssessedTaxpayerValue Value (1) TaxpayerValue Value (2)Ean Holdings, LLC 58,256,170$ 2.03 % Hertz Corp. Rent-a-Car 74,388,839$ 3.40 %UDR The Mandolin LLC 53,670,000 1.87 Vanguard Car Rental USA, Inc. 45,403,046 2.08Stoneleigh at Bear Creek 46,900,000 1.64 Avis Rent-a-Car, Inc. 34,713,647 1.59Avis Rent A Car System LLC 46,362,017 1.62 Somerset Village Partners LP 30,606,615 1.40Somerset Village Partners LP 41,093,060 1.43 Seramont, LP 28,010,033 1.28AP WP Seramont Reit LLC 38,600,000 1.35 Bear Apartments 27,775,966 1.27AP WP Vineyard Reit LLC 37,800,000 1.32 Oncor Electric Delivery Co. 27,752,749 1.27CMF 15 Portfolio LLC 36,900,000 1.29 Fairfield Bear Creek 25,835,793 1.18Oncor Electric Delivery Co. LLC 36,733,528 1.28 Saluda Apartments, LP 24,639,355 1.13The Hertz Corp. 33,287,400 1.16 South West Properties 24,121,440 1.10Total 429,602,175$ 14.99 % Total 343,247,483$ 15.70 %Source: Tarrant County Tax OfficeNote: (1) Total Taxable Assessed Value including real and personal property for tax year 2013 (fiscal year 2014) is $2,864,049,903.(2) Total Taxable Assessed Value including real and personal property for tax year 2004 (fiscal year 2005) is $2,185,914,016.Fiscal Year 2014 Fiscal Year 2005
CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS – LAST TEN FISCAL YEARS (Unaudited) Table 8 105 Taxes Levied Adjustments AdjustedWithin the to Levy in Taxes Levied CollectionsFiscal Fiscal Year Subsequent for the Percentage in Subsequent Percentage PercentageYear of the Levy Years Fiscal Year Amount of Levy Years Amount of Levy Amount of Levy2005 10,789,150 55,448 10,844,597 10,663,367 98.33% 136,122 10,799,489 99.58% 45,109 0.42%2006 11,194,338 1,289 11,195,627 11,007,368 98.32% 171,578 11,178,946 99.85% 16,681 0.15%2007 11,908,489 (9,233) 11,899,256 11,801,183 99.18% 83,832 11,885,015 99.88% 14,241 0.12%2008 12,083,956 (39,271) 12,044,685 11,986,396 99.52% 43,004 12,029,400 99.87% 15,285 0.13%2009 12,747,343 (125,462)12,621,881 12,556,281 99.48% 18,848 12,575,129 99.63% 46,752 0.37%2010 12,318,061 (12,880) 12,305,181 12,182,266 99.00% 102,161 12,284,427 99.83% 20,754 0.17%2011 11,796,659 (39,891) 11,756,768 11,637,719 98.99% 96,104 11,733,823 99.80% 22,945 0.20%2012 12,436,816 (88,779) 12,348,037 12,252,510 99.23% 64,444 12,316,954 99.75% 31,083 0.25%2013 12,926,215 (220,229) 12,705,986 12,648,635 99.55% 16,159 12,664,794 99.68% 41,192 0.32%2014 13,426,248 (49,237) 13,377,011 13,303,694 99.45% - 13,303,694 99.45% 73,317 0.55%Source: Tarrant County Tax Office and Tarrant Appraisal DistrictDelinquent TaxesTotal CollectionCollected within theFiscal Year of the Levy
CITY OF EULESS, TEXAS RATIO OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS (Unaudited) Table 9 106 Taxable General PercentageGeneral Certificates Certificates Sales Tax W&S Drainage Certificates Obligation Total of Personal PerFiscal Obligation of of Revenue Capital Revenue Revenue of Refunding Primary Income CapitaYear Bonds Obligation Obligation Bonds Leases Bonds Bonds Obligation Bonds Government (1) (1)2005 27,410,000 10,365,000 9,510,000 7,725,000 - 4,915,000 965,000 210,000 11,095,000 72,195,000 5.27% 1,445$ 2006 28,820,000 7,175,000 9,305,000 7,175,000 - 4,805,000 785,000 - 11,005,000 69,070,000 4.86% 1,361$ 2007 27,350,000 6,475,000 9,080,000 6,540,000 - 4,585,000 600,000 - 10,560,000 65,190,000 4.40% 1,232$ 2008 25,985,000 5,735,000 8,840,000 5,875,000 - 4,350,000 410,000 - 10,105,000 61,300,000 4.15% 1,148$ 2009 24,350,000 5,330,000 8,580,000 5,185,000 - 4,105,000 210,000 - 9,640,000 57,400,000 3.78% 1,062$ 2010 30,765,000 4,910,000 - 4,470,000 438,227 3,850,000 - - 9,160,000 53,593,227 3.39% 989$ 2011 29,235,000 6,590,000 - 3,715,000 356,897 3,580,000 - - 8,675,000 52,151,897 3.69% 1,017$ 2012 29,915,000 3,230,000 - 2,910,000 272,526 3,435,000 - - 8,165,000 47,927,526 3.47% 931$ 2013 27,095,000 2,910,000 - 2,050,000 1,631,602 4,690,000 - - 7,495,000 45,871,602 3.37% 886$ 2014 24,070,000 2,780,000 - 1,175,000 94,196 4,285,000 - - 6,915,000 39,319,196 2.53% 731$ Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements.(1) See Table 14 for personal income and population data.Business-Type Activities Governmental Activities
CITY OF EULESS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO TAXABLE ASSESSED VALUE AND NET BONDED DEBT PER CAPITA – LAST TEN FISCAL YEARS (Unaudited) Table 10 107 Net DebtGeneral Certificates Less: Debt Net O/S Estimated Taxable to Taxable NetFiscal Obligation of Capital Service Debt Population Assessed Assessed Debt PerYear Bonds Obligation Leases Reserves Total (1) Value (2) Value Capita2005 38,505,000 10,575,000 - 692,148 48,387,852 49,950 2,185,914,016 2.21% 969$ 2006 39,825,000 7,175,000 - 637,136 46,362,864 50,750 2,253,534,573 2.06% 914$ 2007 37,910,000 6,475,000 - 955,555 43,429,445 52,900 2,440,482,117 1.78% 821$ 2008 36,090,000 5,735,000 - 1,029,164 40,795,836 53,400 2,582,911,400 1.58% 764$ 2009 33,990,000 5,330,000 - 1,049,445 38,270,555 54,073 2,660,000,740 1.44% 708$ 2010 39,925,000 4,910,000 438,227 684,246 44,588,981 54,200 2,589,844,156 1.72% 823$ 2011 37,910,000 6,590,000 356,897 880,619 43,976,278 51,277 2,522,998,708 1.74% 858$ 2012 38,080,000 3,230,000 272,526 956,430 40,626,096 51,500 2,651,724,005 1.53% 789$ 2013 34,590,000 2,910,000 1,631,602 807,054 38,324,548 51,750 2,756,141,770 1.39% 741$ 2014 30,985,000 2,780,000 94,196 796,454 33,062,742 53,780 2,864,049,903 1.15% 615$ Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Total does not include revenue bonds. Source:(1) Estimates by North Central Texas Council of Governments and Euless Planning and Development Department(2) Tarrant Appraisal District General Bonded Debt Outstanding
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2014 – (Unaudited) Table 11 108 Estimated Estimated Share ofDebt Percentage OverlappingGovernmental Unit Outstanding Applicable DebtDebt repaid with property taxesGrapevine-Colleyville Independent School District 338,573,481$ 8.78% 29,726,752$ Hurst-Euless-Bedford Independent School District 290,687,648 20.61% 59,910,724 Tarrant County 317,820,000 2.22% 7,055,604 Tarrant County Hospital District 24,425,000 2.22% 542,235 Tarrant County College District 7,935,000 2.22% 176,157 Subtotal, overlapping debt97,411,472City of Euless (direct debt)20,729,197 100.00% 20,729,197Total direct and overlapping debt119,576,637$ Notes:The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages wereestimated by determining the portion of another governmental unit's taxable value that is within the City's boundaries anddividing it by each unit's total taxable value.The current year calculation of direct debt includes all general governmental activities debt including capital leases.Self-supporting general obligation debt is excluded from the calculation.
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 12 109 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2005 14,548,715 11,555,108 2,993,607 305,000 275,524 580,524 5.162006 16,568,058 13,485,955 3,082,103 195,000 229,437 424,437 7.262007 14,645,201 13,668,755 976,446 220,000 213,643 433,643 2.252008 16,369,368 14,722,644 1,646,724 235,000 191,228 426,228 3.862009 16,594,856 13,722,593 2,872,263 245,000 180,820 425,820 6.752010 17,475,984 14,799,879 2,676,105 255,000 171,452 426,452 6.282011 20,148,834 15,952,372 4,196,462 270,000 161,333 431,333 9.732012 18,714,408 15,824,724 2,889,684 90,000 105,785 195,785 14.762013 19,399,314 16,660,397 2,738,917 330,000 82,110 412,110 6.652014 19,729,539 18,269,093 1,460,446 405,000 122,229 527,229 2.77Notes: (1) Operating and nonoperating revenues of water and wastewater fund(2) Total operating expenses of water and wastewater fund exclusive of depreciation and amortization
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE DRAINAGE UTILITY BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 13 110 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2005 700,316 265,444 434,872 170,000 41,305 211,305 2.062006 741,256 257,919 483,337 180,000 35,355 215,355 2.242007 790,647 420,586 370,061 185,000 34,303 219,303 1.692008 736,433 298,712 437,721 190,000 21,565 211,565 2.072009 714,250 286,741 427,509 200,000 14,417 214,417 1.992010 700,827 457,376 243,451 210,000 8,400 218,400 1.112011 699,709 519,622 180,087 - - - n/a2012 707,165 604,994 102,171 - - - n/a2013 711,154 567,215 143,939 - - - n/a2014 715,800 663,625 52,175 - - - n/aNotes: (1) Operating and nonoperating revenues of drainage utility fund(2) Total operating expenses of drainage utility fund exclusive of depreciation and amortization
CITY OF EULESS, TEXAS DEMOGRAPHIC STATISTICS – LAST TEN FISCAL YEARS (Unaudited) Table 14 111 Per Personal Estimated Capita Income School UnemploymentFiscal Population Income (thousands Median Age Enrollment RateYear (1) (2) of dollars) (2) (3) (4)2005 49,950 27,406$ 1,368,930$ N/A 19,600 4.5%2006 50,750 27,999$ 1,420,949$ 33.7 20,111 4.8%2007 52,900 28,029$ 1,482,734$ 34.1 20,318 3.8%2008 53,400 27,634$ 1,475,656$ 34.2 20,048 4.5%2009 54,073 28,110$ 1,519,992$ 34.4 20,504 7.3%2010 54,200 29,179$ 1,581,502$ 32.4 20,898 7.9%2011 51,277 27,590$ 1,414,732$ 34.4 21,071 7.3%2012 51,500 26,820$ 1,381,230$ 34.4 21,570 6.6%2013 51,750 26,299$ 1,360,973$ 34.6 21,814 5.4%2014 53,780 28,947$ 1,556,770$ 31.8 22,138 5.0%Notes: 1. Estimates by North Central Texas Council of Governments 2. Estimates by Claritas Site Reports; Research & Demographic Solutions; 2014 from US Census Bureau 3. Hurst-Euless-Bedford Independent School District 4. Texas Workforce Commission; Bureau of Labor Statistics
CITY OF EULESS, TEXAS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago (Unaudited) Table 15 112 Percentage Percentageof Total City of Total CityEmployerEmployees Employment EmployerEmployees EmploymentHEB ISD 1,000 3.74% City of Euless 400 1.72%LSG Sky Chefs, Inc. 600 2.25% Super Target 300 1.29%Autogrill Group, Inc. 450 1.68% Krispy Kreme 200 0.86%City of Euless 434 1.62% Atlas Match 150 0.64%Life Outreach International 180 0.67% Home Depot 150 0.64%Lowe's 140 0.52% First Odyssey Group 100 0.43%Super Target 160 0.60% Office Depot 100 0.43%Home Depot 125 0.47% Ferguson Enterprises 90 0.39%Redi-Mix Concrete 67 0.25% Heath & Company 75 0.32%Structural and Steel Products 40 0.15% F&H Ribbon 65 0.28%Total 3,196 11.95% 1,630 7.00%Source: 2005 Official Statement, City of Euless Planning and Development Department2014 2005
CITY OF EULESS, TEXAS FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 16 113 Function/Program2005 2006 2007 2008 2009 2010 2011 2012 2013 2014General Governmentand Administration 51.25 50.75 53.00 54.50 54.50 50.00 48.50 48.50 48.50 48.50 Public Safety118.00 120.00 123.00 126.00 126.00 118.00 121.00 129.00 132.00 135.00 Fire Safety64.00 67.00 70.00 73.00 73.00 71.00 71.00 72.00 72.00 72.00 Development Services 12.00 12.00 12.00 12.00 12.00 11.50 13.50 6.00 6.00 7.50 Culture and Recreational 35.75 35.75 36.50 36.00 36.00 30.00 31.00 32.00 30.50 33.25 Water and Wastewater 48.00 49.50 50.00 50.00 50.00 46.00 42.00 42.50 42.00 42.00 Golf Course 15.25 15.25 15.25 15.25 17.25 13.00 13.00 13.00 12.00 10.75 Public Works 15.75 15.75 15.75 15.75 15.75 14.00 17.50 18.50 18.50 18.50 Service Center 6.00 6.00 6.00 6.00 6.00 5.00 5.00 5.00 5.00 5.00 Risk Management / Insurance 2.00 2.00 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Total 368.00 374.00 383.00 390.00 392.00 360.00 364.00 368.00 368.00 374.00 Source: City Budget Office
CITY OF EULESS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 17 114 Function/Program2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Public SafetyPoliceNumber of Certified Officers 82 82 82 85 85 85 85 85 87 92Number of Citations Issued 32,200 38,359 34,368 26,503 29,925 24,126 21,790 22,787 26,356 25,500FireNumber of Certified Firefighters 62 65 68 71 70 69 69 70 70 70Number of Alarms 3,949 3,661 3,675 4,197 3,827 4,097 4,196 4,204 4,296 4,505Number of EMS Calls 2,202 2,317 2,561 2,688 2,634 2,793 2,848 2,982 3,108 3,230Municipal CourtCases Filed 41,027 46,085 39,096 30,551 33,670 31,442 27,022 26,889 32,192 31,172DevelopmentNumber Residential Inspections - New 319 315 58 77 100 101 52 44 42 107Number Commercial Inspections - New 8 10 24 28 16 14 11 29 16 29Number Multifamily Inspections - New 0000000 0 0 1Public WorksStreet Overlay (Square Footage) 1,391,889 1,117,894664,472 999,285 797,326 770,380 953,406 368,654 540,613 631,260Cultural and RecreationalParks and RecreationRecreation Center Memberships 4,260 4,160 3,990 3,944 3,703 2,443 4,337 3,654 5,137 6,261Class Attendance (Youth/Adult) 24,57525,704 29,067 59,541 74,452 56,833 28,804 41,766 Unavailable UnavailableWater and WastewaterNumber of Water Consumers 25,012 24,486 24,484 24,608 24,677 24,760 24,924 24,428 25,039 25,319Water Produced (In Gallons x 1000) 314,085 372,695 414,934 348,548 730,291 579,154 477,914 299,107 416,843 380,864Water Purchased - TRA (In Gallons x 1000) 2,382,040 2,947,945 2,202,426 2,291,974 1,955,535 2,028,760 2,566,370 2,440,539 2,133,211 2,154,469Water Supplied (In Gallons x 1000) 2,696,125 3,320,640 2,617,360 2,640,522 2,685,826 2,607,914 3,044,284 2,739,646 2,550,054 2,535,333Annual Rainfall (In Inches) 32.51 20.74 53.51 27.10 36.32 38.65 22.26 36.57 24.41 23.98Golf CourseNumber of Paid Rounds Played 32,725 36,639 35,094 36,528 43,029 32,996 35,075 34,550 35,890 22,110Source: City DepartmentsComprehensive Annual Financial ReportCity Budget OfficeNotes:Unavailable - Data not available.Golf course closed for 3.5 months for renovations
CITY OF EULESS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 18 115 Function/Program2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Public SafetyPolice Stations 1 1 1 1 1 1 1 1 1 1Fire Stations 3 3 3 3 3 3 3 3 3 3Public WorksStreets - Paved (1)182.0 182.0 211.0 217.6 217.6 217.6 332.1 332.4 333.4 340.6 Cultural and RecreationalSwimming Pools 3 3 3 3 3 3 3 3 4 3 Parks 16 17 17 17 17 17 17 17 17 17 Parks Land (Acres) 539 566 632 632 632 632 632 632 632 632 Community Buildings 5 5 5 5 5 5 6 6 6 6 Ampitheater 2 2 2 2 2 2 2 2 2 3 Conference Centre 1 1 1 1 1 1 1 1 1 1 Golf Course 1 1 1 1 1 1 1 1 1 1 Athletic Fields 24 35 35 35 35 33 33 33 33 28 Library Holdings 99,972 97,334 98,613 101,672 103,122 106,121 110,149 111,230 111,312 105,500 Water and WastewaterWater Mains - Potable (2)212.00 218.00 222.10 226.80 226.80 228.20 228.50 227.99 231.06 232.28 Water Mains - Reclaimed (2)- - - - - - - - 1.73 3.22 Fire Hydrants 1,318 1,377 1,441 1,477 1,477 1,525 1,526 1,550 1,579 1,633 Wastewater Mains (2)162.0 162.0 168.0 186.3 186.3 186.5 186.7 187.6 187.6 191.3 Source: City Departments(1) Fiscal years to 2010 are reported in linear miles. 2011 and forward are reported in lane miles.(2) Miles of lines. Fiscal year 2012 figures have been restated to exclude approximately two miles of TRA lines that had been accidentally included as City lines.