HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2015THIS PAGE INTENTIONALLY LEFT BLANK
City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2015
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, 2015
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) 4-16
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 17
Statement of Activities 18
Fund Financial Statements
Governmental Funds
Balance Sheet 19
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 20
Statement of Revenues, Expenditures and Changes in Fund Balances 21
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 22
Proprietary Funds
Statement of Net Position 23-24
Statement of Revenues, Expenses, and Changes in Net Position 25
Statement of Cash Flows 26-27
Fiduciary Funds
Statement of Net Position 28
Statement of Changes in Fiduciary Net Position 29
Notes to Basic Financial Statements 30-67
Required Supplementary Information
Schedule of Changes in Net Pension Liability
and Related Ratios (Texas Municipal Retirement System) 68
Schedule of Contributions (Texas Municipal Retirement System) 69
Schedule of Funding Progress – OPEB Trust 70
Budgetary Comparison Schedules 71-73
Notes to Required Supplementary Information 74
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 77-78
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 79-80
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2015
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 81
Half-Penny Sales Tax Special Revenue Fund 82
Police Drug Enforcement Special Revenue Fund 83
Crime Control and Prevention District Special Revenue Fund 84
Public Safety Grant Special Revenue Fund 85
Police Seized Assets Special Revenue Fund 86
Juvenile Case Special Revenue Fund 87
Glade Parks PID Special Revenue Fund 88
TIRZ #3 Glade Parks Special Revenue Fund 89
Cable PEG Fees Special Revenue Fund 90
Non-Major Proprietary Funds
Combining Statement of Net Position 92-93
Combining Statement of Revenues, Expenses, and Changes in Net Position 94
Combining Statement of Cash Flows 95
Internal Service Funds
Combining Statement of Net Position 97
Combining Statement of Revenues, Expenses, and Changes in Net Position 98
Combining Statement of Cash Flows 99
Escrow Agency Funds
Combining Statement of Changes in Assets and Liabilities 100
STATISTICAL SECTION (Unaudited) Table Page(s)
Net Position by Component 1 102
Changes in Net Position 2 103-104
Fund Balances, Governmental Funds 3 105
Changes in Fund Balances, Governmental Funds 4 106
Assessed and Estimated Actual Value of Taxable Property 5 107
Direct and Overlapping Property Tax Rates 6 108
Principal Property Tax Payers 7 109
Property Tax Levies and Collections 8 110
Ratio of Outstanding Debt by Type 9 111
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 112
Direct and Overlapping Governmental Activities Debt 11 113
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 114
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 115
Demographic Statistics 14 116
Principal Employers 15 117
Full-time Equivalent City Government Employees by Function/Program 16 118
Operating Indicators by Function/Program 17 119
Capital Asset Statistics by Function/Program 18 120
INTRODUCTORY SECTION
i
201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.eulesstx.gov
February 23, 2016
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, 2015. 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,
2015, 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
unmodified (“clean”) opinion that the City’s financial statements for the fiscal year ended
ii
September 30, 2015, 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 54,050.
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
iii
services of the City account for risk management, equipment replacement, and employee
insurance coverage activities on a cost reimbursement basis. Private contractors, through
a franchise agreements, 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 (TIRZ) #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 in the heart of the Dallas/Fort Worth
(DFW) Metroplex and adjacent to the DFW International Airport. Thus, the economic
vitality of the region significantly impacts the economic health of Euless. DFW Airport
is the fourth busiest airport in the US and eighth busiest in the world according to
flightstats.com. The airport handles approximately 175,829 passengers a day and over 64
million passengers a year according to dfwairport.com. DFW Airport provides service to
209 destinations.
DFW is the largest metropolitan area in Texas and has sustained tremendous growth
during the past decade. It is reported by the airport that economic activity across the
North Texas area attributable to DFW Airport totals $37 billion in economic output,
143,000 in full-time jobs, and $9.4 billion in payroll. DFW Metroplex, according to the
North Texas Commission, with its highly-diversified economy has a population of over
6.9 million, a labor force of over 3.56 million, employment of over 3.42 million, an
iv
unemployment rate of 3.6%, 21 Fortune 500 Firms, and college enrollment of 338
thousand. Such an economic environment has helped the region weather economic
downturns in key sectors better than other regions in the nation.
The Alliance Texas development in North Fort Worth is an 18,000-acre master-planned,
mixed-use community which is home to 425 companies, 44,000 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 (www.allianceairport.com, Alliance Texas Facts).
Taxable value for all residential and commercial property in the City of Euless is
estimated at approximately $3.15 billion for tax year 2015, which is a 3.38% increase
from the prior year, due primarily to an increase in residential and commercial property
values. Sales tax collections increased 4.76% during FY2014-15. Euless continues to
look for additional revenue opportunities in order to minimize the tax burden to citizens
and strives to cut costs without impacting service.
The City also receives a significant amount of revenue from a consolidated rental car
facility located at DFW Airport. The City Council has chosen to use this funding source
to build reserves and to cash flow capital projects in lieu of debt issuance. This has
allowed the City to refrain from becoming overly dependent on a volatile resource while
providing for needed improvements for citizens.
The City of Euless has approximately 766 acres of undeveloped land outside of DFW
Airport and another 1,700 developable acres within DFW airport. The Glade Parks
mixed-use development consisting of major retail, restaurants, neighborhood pedestrian-
oriented retail uses and residential neighborhoods is currently under construction.
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 Football Playoff National
Championship game in 2015.
During the fiscal year the City continued the annual street overlay, Americans with
Disability Act (ADA) improvements, and street light and sidewalk maintenance
programs. Additionally, the City completed street improvements on Cullum Drive,
wastewater line relocation for Phase 1 of State Highway 183 construction, wastewater
line replacement at Denton Drive and water line replacement at El Camino Real.
The City benefits from a well-educated workforce, with approximately 90% of the
population being high school or higher education graduates. Statewide that rate is 81.6%.
In addition, Euless’ median household income of $54,619 compares favorably to $52,576
for the State of Texas (source: 2010-2014 U.S. Census Bureau Quick Facts).
v
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.
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 98 days of
operations which equates to approximately 26.9% 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 working capital. The City currently maintains an
85-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 on the general ledger. As of
September 30, 2015, the revenue bond reserve totaled $641,350.64 which meets the
required average annual debt service per bond covenants.
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
vi
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 Facility Master Plan and ADA Transition Plan address 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. 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 and
includes relocation of existing water and wastewater mains along this corridor. This
project started in 2015. Community Development Block Grant (CDBG) infrastructure
improvements, street overlay projects, Glenn Drive wastewater line replacement, Donley
Drive / Shelmar Drive water line replacement, miscellaneous valve replacement,
construction of the Development and Engineering Building, Midtown development and
Texas Star Sports Complex Phase V improvements are also anticipated to begin in the
upcoming year.
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. This began the City’s reclaimed water utility system,
which initially was used 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.
A reclaimed water utility system expansion feasibility study was completed in 2012 and
resulted in a system expansion project, recommended to be broken down into six (6)
project phases. The first phase of the extension of the reclaimed water line began in
fiscal year 2013 and was completed in 2014. Phase I included the installation of a
booster pump station located at Midway Road and Bear Creek Drive and service
extension 1700 feet north of Harwood Road. This expansion brought reclaimed water
service to several existing multi-family properties, existing commercial properties and the
new mixed-used development known as the RiverWalk. Phase II of the reclaimed water
extension is currently under construction and extends the existing reclaimed water service
main along Bear Creek Parkway in a northerly direction to a point just past Little Bear
Creek, approximately 3,500 feet. Phase II provides reclaimed water service to several
vii
additional multi-family properties, landscaped medians, a single family development and
portions of City park land. Phase II construction is being funded through the Texas
Water Development Board’s Clean Water State Revolving Fund program. Ultimately,
with the completion of all phases of the extension, the availability of reclaimed water will
extend to multiple properties from SH 183 to Mid Cities Boulevard as well as the City
park land. Plans for future phases are dependent upon the availability of additional low
interest loans or grants.
Funding was finalized in 2015 for the replacement and enhancement of the City’s fixed
base meter reading system. This project is underway and installation will begin in March
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 the Glade Parks development and approved
the related project and financing plan. This plan authorized 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 specified the extent of City provided improvements and provided
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 2015 fiscal year-end, the
infrastructure improvements were completed. An additional phase was added to this
development in 2015 that included construction of a parking garage, park, and park
amenities. The existing Glade Parks TIRZ also covers this project as well as a PID to
support debt issued for these additional public improvements. This construction is
anticipated to begin in 2016.
The City approved a planned development known as RiverWalk which includes
approximately 200 acres located at the northwest corner of Airport Freeway and State
Highway 360 extending north to Harwood Road. Lennar Homes is developing three (3)
subdivisions within the RiverWalk mixed use project, including The Dominion at Bear
Creek, which is a 206 lot single-family subdivision located south of Midway Drive, on
the west side of Bear Creek Parkway. The Villas at Bear Creek is a 60 lot single-family
subdivision at the southeast corner of Bear Creek Parkway and Midway Drive and The
Estates at Bear Creek is a 112 lot single-family subdivision. The NRP Group completed
construction of a 300-unit urban loft project in 2015.
The City has also been working with a developer on a 56 acre mixed-use development
located on the south side of State Highway 183, east of Farm-to-Market Road 157 and
north of State Highway 10. This development is planned for 255 new single family
homes, 393 urban lofts, and over 67 thousand square feet of retail space. Both a TIRZ
and a PID have been created by the City to fund the debt associated with the public
ix
x
xi
THIS PAGE INTENTIONALLY LEFT BLANK
FINANCIAL SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
1
AN INDEPENDENT MEMBER OF BAKER TILLY INTERNATIONAL WEAVER AND TIDWELL LLP CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 2821 WEST SEVENTH STREET, SUITE 700, FORT WORTH, TX 76107 P: 817.332.7905 F: 817.429.5936
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, 2015, 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.
City of Euless, Texas
Page 2
2
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, 2015, 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 2015, as discussed in Note 13 to the basic financial statements, the City implemented
Governmental Accounting Standards Board (GASB) No. 68, Accounting and Financial
Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date – An Amendment to GASB Statement No. 68. Beginning
net position has been restated to reflect the change in accounting principle resulting from GASB
No. 68 and 71. 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 TMRS pension schedules, the analysis of OPEB
funding progress, and budgetary comparison information on pages 4 through 16 and 68 through
74 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
City of Euless, Texas
Page 3
3
presented for purposes of additional analysis and are not a required part of the financial
statements.
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.
Dallas, Texas
February 19, 2016
CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2015
(Unaudited)
4
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, 2015. 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 101-120 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 $194,343,172 (Net position). This number must be viewed in the context that the
vast majority of the City’s net position of $154,936,226 (80%) 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 $9,729,677 (5%). The remaining $29,857,269 (15%) 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.
• Governmental activities realized an increase in total net position of $8,741,666 and business-
type activities realized an increase in total net position of $939,525 bringing the net increase
in total net position for the City to $9,681,191.
• At the close of the current fiscal year, the City of Euless’ governmental funds reported
combined ending fund balances of $30,358,247 which represents an increase of $1,914,700
in comparison with the prior year. Within this total, $2,477,981 is restricted for debt service;
$594,211 is restricted by bond covenant for capital projects; $109,618 and $190,756 are
restricted for court technology and juvenile case management, respectively; and another
5
$1,857,055 is restricted for capital projects by developer agreements. Amounts restricted for
cable PEG fees and historical preservation total $406,885 and $1,245, respectively.
Nonspendable fund balance of $63,233 represents fund balance amounts for inventories and
prepaid items. Fund balances of $13,881,721 represent assigned fund balance in the general,
special revenue, and capital projects funds. The unassigned fund balance in the General Fund
of $10,775,542 can be used for any lawful purpose. The General Fund unassigned balance
represents 30% of fiscal year 2015 total fund expenditures.
• The City’s total capital assets (net of accumulated depreciation) increased by $6,581,659
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 increased by $7,340,000 or 19%, due to the issuance of certificates
of obligation, general obligation refunding bonds, and water and wastewater revenue bonds
less scheduled principal payments.
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
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.
6
The government-wide financial statements include not only the City of Euless (the primary
government), but also the Euless 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 17-18 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, Car Rental Tax, and
Streets CIP funds, all of which are considered to be major funds. Data from the other sixteen
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 19-22 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
7
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 23-27 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 28 and 29 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 30-67 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
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 68-74 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 75-100 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 $194,410,030 as of September 30, 2015.
8
The largest portion of the City’s net position (80%) 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 (5%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
position of $29,857,269 (15%) may be used to meet the City’s ongoing obligations to citizens,
creditors, and employees.
Net Position
Governmental Business-type
Amounts shown in 000's activities activities Total
2015 2014 2015 2014 2015 2014
Current and other assets 50,308$ 47,348$ 31,111$ 22,462$ 81,419$ 69,810$
Capital assets 128,451 121,531 65,225 65,564 193,676 187,095
Deferred outflows*4,833 3,869 1,488 1,350 6,321 5,219
Total assets and
deferred outflows*183,592 172,748 97,824 89,376 281,416 262,124
Long-term liabilities*46,950 45,144 20,498 14,407 67,448 59,551
Other liabilities 13,615 13,837 5,395 4,074 19,010 17,911
Deferred inflows 518 - 97 - 615 -
Total liabilities and
deferred inflows*61,083 58,981 25,990 18,481 87,073 77,462
Net position:
Net investment in capital
assets 99,540 94,163 55,396 55,161 154,936 149,324
Restricted 5,666 4,999 3,883 2,426 9,549 7,425
Unrestricted*17,303 14,605 12,555 13,308 29,858 27,913
Total net position*122,509$ 113,767$ 71,834$ 70,895$ 194,343$ 184,662$
* Denotes restatement of prior year due to change in accounting principle. (Note 13)
As of September 30, 2015 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 was true for fiscal year 2014.
9
The City’s unrestricted net position increased by $1,944,630 in fiscal year 2015 as compared to
the restated unrestricted net position for the prior year. Restricted net position realized an
increase of $2,124,141 and the amount invested in capital assets, net of related debt also
increased by $5,612,420. The increase in total net position of $9.7 million results primarily from
current year operating results flowing to the net investment in capital assets category of net
position. The details of the results of current year operations are found in the table shown on the
following page.
Changes in Net Position
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2015 2014 2015 2014 2015 2014
REVENUES
Program revenues:
Fees, fines and charges for
services
6,614$ 6,759$ 27,327$ 25,931$ 33,941$ 32,690$
Operating grants and
contributions
598 633 - - 598 633
Capital grants and
contributions
3,229 1,552 1,747 2,037 4,976 3,589
General revenues:
Property taxes 14,358 13,489 - - 14,358 13,489
Sales taxes 18,360 17,525 - - 18,360 17,525
Car rental taxes 14,113 14,083 - - 14,113 14,083
Mixed beverage taxes 84 69 - - 84 69
Occupancy taxes 392 343 - - 392 343
Gross receipts taxes 4,556 4,459 - - 4,556 4,459
Investment income 127 70 40 34 167 104
Rents and royalties 1,167 1,390 - - 1,167 1,390
Gain (loss) on asset disposal - 85 4 - 4 85
Miscellaneous 35 49 - - 35 49
Total revenues 63,633 60,506 29,118 28,002 92,751 88,508
EXPENSES
Culture and recreation 6,468 6,425 - - 6,468 6,425
Development services 878 1,367 - - 878 1,367
General government 19,950 18,018 - - 19,950 18,018
Highways and streets 3,374 3,578 - - 3,374 3,578
Public safety 23,807 24,278 - - 23,807 24,278
Interest and fiscal charges 1,137 1,126 - - 1,137 1,126
Water and wastewater - - 19,970 20,298 19,970 20,298
Drainage utility - - 1,320 1,373 1,320 1,373
Golf course - - 4,156 4,152 4,156 4,152
Recreational enterprises - - 2,010 2,288 2,010 2,288
Total expenses 55,614 54,792 27,456 28,111 83,070 82,903
Increase (decrease) in net
position before transfers 8,019 5,714 1,662 (109) 9,681 5,605
Transfers 723 532 (723) (532) - -
Increase (decrease) in net
position 8,742 6,246 939 (641) 9,681 5,605
Net position, beginning*113,767 107,521 70,895 71,536 184,662 179,057
Net position ending 122,509$ 113,767$ 71,834$ 70,895$ 194,343$ 184,662$
* Denotes restatement of prior year due to change in accounting principle. (Note 13)
10
• Governmental activities. Governmental activities increased the City’s net position by
$8,741,666 thereby accounting for most of the growth in total net position. Most revenue
categories, including sales taxes, investment income, charges for services, and capital grants
and contributions, 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 $9,681,191.
Total revenue for the governmental activities (excluding transfers from business-type
activities) increased from the previous year by $3,127,338. General Revenue, which is
primarily made up of property taxes, sales taxes, and car rental taxes, had a net increase of
$1,630,844. 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 $1,496,494. Culture and
recreation charges for services realized increases in the current year primarily as a result of
the hugely successful indoor/outdoor Aquatic Center at the Euless Family Life Center.
Development charges for services increased due to continued local development activity in
both the commercial and residential markets. Public safety service revenues decreased
approximately $195,000 primarily as a result of decreases in jail revenues and municipal
court activity combined with increases in ambulance revenues and forfeitures. Capital grants
and contributions increased significantly in FY2015 as a result of developer contributions of
capital assets.
Total expenses increased by $822,404 from FY2014 to FY2015. The raise package for
employees included an increase of 3.25% which accounts for a large portion of the expense
increase across all functions. Conversely, the change in accounting principle resulting from
implementation of GASB Statement No. 68 (related to pensions) reduced current year
personnel-related expenses due to the recording of deferred outflows and the amortization of
deferred inflows. Furthermore, fluctuations in depreciation expense as a result of the
acquisition and disposal of capital assets affect the various expense categories. General and
administrative expenses increased primarily as a result of a sizable increase in depreciation
expense. In the prior year, the internal service fund (ISF) depreciation was allocated to the
various expense functions, thereby losing its identity as depreciation. In the current year, the
ISF allocation excluded depreciation expense and the entire amount was included with
general and administrative depreciation expense on the government-wide financial
statements. General and administrative expense also realized increased rebate payments
resulting from revenue increases. The net position of general governmental operations
accounts for 63% of total net position.
• Business-type activities. Business-type activities increased the City’s net position by
$939,525. The change in net position before transfers is income of $1,662,227. Charges for
services program revenues for the business-type activities increased from the previous year
by $1,395,882 due primarily to increased water and wastewater revenues and a full year of
operations at Texas Star Golf Course which was closed for 3½ months during the summer of
2014 for renovations. Capital grants and contributions decreased by $290,625 primarily due
to a reduction in developer contributions of drainage facilities. The City’s business-type
11
activities suffered revenue short-falls due to the extreme amount of rainfall received
throughout the year. The region received nearly 44½ inches for fiscal year 2015, which
exceeds a “normal” year by more than eight inches.
Some expense categories realized increases for the year, but overall business-type expenses
decreased 2.3%, a portion of which is attributable to the change in accounting principle
mentioned previously. Despite an increase in the supplier’s volume rate, total water purchase
costs declined from the prior year due to a decrease in potable water consumption.
Wastewater treatment volume was down 9%, however, wastewater charges increased as a
result of supplier treatment cost increases. Net position for business-type activities represents
37% of total net position.
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 $30,358,247, an increase of $1,914,700 in comparison with prior year.
Approximately 35.5% or $10.8 million constitutes unassigned fund balance in the general fund
that is available for spending at the City’s discretion. Another $63,233 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 ($2,477,981); 2) to pay for specific capital improvements per
developer agreements ($1,857,055); 3) restricted by bond covenant for specific capital projects
($594,211); and 4) for a variety of other restricted purposes ($708,504). 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
$13,881,721 and includes assigned fund balance in the general fund of $116,336 and
$13,765,385 which represents residual balances in other governmental funds. See discussion
under Fund Balance Classifications in Note 1 of 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
$3,112,128. Due to a positive budget variance in overall revenues and expenditures, the General
Fund ended the year with an increase to fund balance of $198,873 which represents a positive
revised budget variance of $3,311,001 resulting primarily from increased revenues of more than
$880,000 and expenditure savings of close to $2.4 million, before transfers.
Most General Fund revenue categories realized increases over the prior year and many surpassed
budget estimates as well. Sales tax receipts, gross receipts taxes, licenses and permits, investment
income, 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
12
improvement in the local economy. Property tax collections surpassed prior year collections, but
fell short of budget expectations. Total fines and fees also fell short of budget estimates and did
not reach prior year levels. Much of this shortfall results from significant decreases in municipal
court collections and jail income. Ambulance revenues partially offset the shortfall by exceeding
the prior year collections by approximately $170,000.
Personnel and related benefit budgetary savings of approximately $1.2 million result primarily
from holding several vacant and funded positions open for at least a portion of the year, changes
in employee healthcare elections, and rolling one-time personnel-related funds into next fiscal
year. Contract labor appropriations of a little over $152,000 remained unspent at the end of the
year. Part-time salary expenses realized a favorable budget variance of nearly $230,000, while
overtime achieved budgetary savings of $57,000. 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 $9,000, while the revenue sharing
agreement with the cities of Dallas and Fort Worth realized a budgetary overage of
approximately $253,000. Electric service costs exceeded budget parameters by nearly $169,000.
Repair and maintenance costs exceeded budget parameters by approximately $100,000 due
primarily to heating and cooling systems maintenance and plumbing cost overages.
Aside from salaries and benefits, public safety expenditure savings were also noted in supplies,
travel, professional and technical, equipment rentals, and maintenance. Savings in mowing
services, structural maintenance, and supplies are primarily responsible for the positive budget
variance in culture and recreation. Capital expenditures including street overlay, sidewalks,
traffic signals, and lighting realized budgetary savings of $89,000. One-time expenditures were
$641,000 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 increased $17,387 which is $112,061 better than the budgeted
drawdown of $94,674. The Car Rental Tax fund balance was originally anticipated to decrease
$3,114,503, but instead ended the year with a decrease of only $427,268 resulting from an
increase in net car rental taxes and savings in capital outlay. The Streets CIP fund balance
declined by $169,780 primarily due to current year project expenditures. The non-major
governmental funds realized a combined increase in fund balance of $2,295,488 primarily
resulting from increased sales taxes in the Half-Penny Sales Tax and Crime Control and
Prevention District (“CCPD”) funds and expenditure savings in the CCPD fund, combined with
an increase in the Car Rental CIP fund that results from funding of current year projects.
Additionally, the Police Drug Enforcement fund realized an increase in fund balance of $254,535
due to intergovernmental revenue receipts combined with very limited expenditures. The
combined net effect of these changes in governmental fund balances totals an increase of
$1,914,700.
Enterprise funds. The City’s enterprise fund statements provide the same type of information
found in the government-wide financial statements for business-type activities, but in more
detail. Most of the City’s enterprise funds are heavily dependent upon local weather conditions.
During the fiscal year, more than 44½ inches of rain fell; which is eight inches more than a
13
“normal” year for the region. The effects of this substantial increase in rainfall resulted in
budgetary revenue shortfalls in many of the City’s enterprise funds.
Unrestricted net position of the enterprise funds at the close of the fiscal year is: Water and
Wastewater fund $5,702,254; Drainage Utility fund $1,202,201; Golf Course fund $1,029,977;
and all other non-major recreation enterprise funds combined $2,200,886. The Water and
Wastewater fund realized an increase in operating income resulting predominantly from
increased water and wastewater rates combined with additional collections of services fees and
miscellaneous income. Water consumption and wastewater treatment volume was much lower
than anticipated which, in turn, caused a reduction in water purchase costs; but the opposite held
true for wastewater treatment costs due to system inflow and infiltration from the excessive
rainfall. Generally, conservation efforts, tiered water rates, and watering restrictions result in
declines in water consumption. However, in the current year, the local weather patterns were the
primary culprit responsible for the reduced water consumption. Impact fee revenues and
developer dedication of assets of $1.6 million contributed to the overall net income in the Water
and Wastewater fund.
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
increased $351,435 due in large part to a full year of operations on the newly renovated greens
and bunkers. The course was closed for 3½ months in the summer of 2014 while undergoing
these renovations. All other non-major recreation enterprise funds combined realized a decrease
of $144,220 which is primarily attributable to the cancellation of the annual Arbor Daze
celebration due to inclement weather conditions and the detrimental impact the rainfall had on
the combined baseball and softball operations. The excessive amount of rainfall resulted in the
cancellation of entire leagues and a multitude of tournaments. The combined net effect of these
changes in net position totals an increase of $749,404.
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, 2015, totaled $193,676,763 (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 $6,581,659 or about 3.5%.
Major capital asset activity that occurred during the current fiscal year included the following:
• Capital asset contributions were comprised of $262,088 in Community Development Block
Grant (CDBG) expenditures for ADA/TAS infrastructure improvements and developer asset
dedications totaling nearly $4 million in street infrastructure, land, water and wastewater
facilities, and drainage structures.
• Street overlay projects located throughout the City in the amount of $544,877 were finalized
during the year.
• Cullum Drive Improvements including street reconstruction, underground storm drainage,
sidewalks and wastewater main replacement were completed at a cost of $1.2 million.
14
• Capital asset additions for governmental activities include, but are not limited to, self-
contained breathing apparatus for firefighters, audio visual equipment and broadcast system
located in the council chambers, upgraded parking lot lighting, fitness equipment, Lifepak 15
monitors/defibrillators, assorted police equipment, and scheduled annual vehicle and
equipment replacements.
• Construction-in-progress related to general government activity of $9,167,287 primarily
consisted of Glade Parks Infrastructure ($8.7 million), Street Overlay ($172,013), and the
Glade Parks Trail ($118,517).
• The wastewater line replacement along Denton Drive and the wastewater line relocation
along the Phase I portion of the SH183 expansion were completed at a cost of $511,860 and
$372,243, respectively. The El Camino Real water line replacement was finished at a total
cost of $420,462.
• Capital asset additions for the business-type activities include, but are not limited to, a sewer
line camera system and the supervisory control and data acquisition (SCADA) system to
monitor water system operations.
• Construction-in-progress related to business-type operations of $270,975 consisted of Phase
II of the Reclaimed Water System Extension at $214,436 and Crane Drive wastewater line
replacement for $56,223.
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000s activities activities Total
2015 2014 2015 2014 2015 2014
Land 28,107$ 26,584$ 3,619$ 3,619$ 31,726$ 30,203$
Buildings 37,505 39,234 1,948 2,072 39,453 41,306
Other improvements 5,745 6,029 9,520 10,082 15,265 16,111
M&E 8,147 7,548 652 355 8,799 7,903
Infrastructure 39,780 38,393 49,216 49,083 88,996 87,476
Construction in
Progress 9,167 3,743 271 353 9,438 4,096
Total 128,451$ 121,531$ 65,226$ 65,564$ 193,677$ 187,095$
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 $45,041,118 net of unamortized losses on prior refundings. Of this amount, $34,020,458
comprises debt backed by the full faith and credit of the government, where $11,395,929 is the
amount of self-supported debt for Softball World, Texas Star Golf Course and Stars Center. The
remainder of the City’s debt, $11,020,660, represents bonds secured solely by specific revenue
sources (i.e. revenue bonds).
15
Outstanding Bonded Debt
Governmental Business-Type
Amounts shown in 000s activities activities Total
2015 2014 2015 2014 2015 2014
GO bonds 20,655$ 24,070$ 6,320$ 6,915$ 26,975$ 30,985$
COs 8,365 2,780 - - 8,365 2,780
GO/CO deferred loss (757) (928) (563) (616) (1,320) (1,544)
Revenue bonds 285 1,175 10,940 4,285 11,225 5,460
Revenue deferred loss (37) (47) (167) (185) (204) (232)
Totals 28,511$ 27,050$ 16,530$ 10,399$ 45,041$ 37,449$
In fiscal year 2015, the City issued general obligation refunding bonds, certificates of obligation
and water and wastewater revenue improvement bonds. The City’s total debt increased
$7,340,000 or 19% during fiscal year 2015 which is attributed to the newly issued debt less
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 FY2015-16 budget, General Fund revenues and transfers are budgeted to increase by 5%
from the 2014-15 original budget. Property taxes account for 31% of budgeted revenues and
sales taxes comprise approximately 32% of budgeted revenues. Certified assessed valuations as
of July 25, 2015, increased 3.4% from the preceding year.
As of September 30, 2015, the City’s unemployment rate is 3.6% compared to the State of
Texas, which is 4.4%. In the FY2015-16 budget, sales tax receipts are projected to increase
2.5% over prior year estimated revenues plus an additional estimate for new development. The
car rental tax receipts are anticipated to remain flat with end-of-year projections with a reduction
of approximately $90,000 for a one-time audit true-up payment received in FY2014-15.
Baseline budgeted expenditures in the General Fund are projected to increase approximately 5%
from the FY2014-15 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, career preparation
program in conjunction with the local school district, fire suppression and EMS equipment,
continuation of the local selective traffic enforcement program, equipment for the Euless Family
Life Center, and various facility maintenance items. In addition, the FY2015-16 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 remained at .4675¢
per $100 of assessed valuation for FY2015-16.
16
For the Water and Wastewater Fund, the FY2015-16 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 $3.24 to $5.87 per thousand gallons.
Monthly water base rates are increasing by 8.9% for both residential and commercial customers.
A wastewater volume charge of $3.59 per thousand gallons applies to all customer classes and
monthly base rates are increasing by 75¢. 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 $695,000 for
replacement of wastewater lines along Glenn Drive, water line replacements along Donley Drive
and Shelmar Drive, miscellaneous valve replacements, and additional funding for the
miscellaneous water rehab project. The City is also setting aside a portion of the anticipated
replacement cost of the water and wastewater lines associated with the SH183 Phase II project.
The FY2015-16 budget includes $305,000 in initial funding for this project bringing the total for
capital projects to $1,000,000 for the year. One-time capital in the amount of approximately
$479,000 is included for computer and technology upgrades, CAD license upgrade, a valve
trailer, a sewer camera, miscellaneous infrastructure repairs on the well lot and funding to
complete approved projects carried over from the prior year.
The Texas Star Golf Course and Conference Centre is a vibrant part of the Euless community.
This secluded facility, located in the midst of the Dallas/Fort Worth Metroplex, is well-known
for world class golf and a challenging course that 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. Recent course renovations
were completed at the end of September 2014 and the course re-opened to rave reviews.
Proposed revenues of $4,594,912 and proposed operating expenses of $4,544,913 comprise the
FY2015-16 operating budget.
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a
general overview of the City’s finances. If you have questions about this report or need
additional information, contact the Finance Department, Attn: Janina Jewell, Director of Finance,
at 201 North Ector Drive, Euless, Texas 76039, call (817) 685-1626, or e-mail
jjewell@eulesstx.gov.
CITY OF EULESS, TEXAS
GOVERNMENT–WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
17
Primary Government
Governmental Business-type
Activities Activities Total
Deposits and investments 44,127,136$ 14,083,496$ 58,210,632$
Receivables, net of allowances 7,789,125 3,419,713 11,208,838
Internal balances (2,419,377) 2,419,377 -
Inventories, at cost 11,832 311,092 322,924
Prepaid items 51,401 31,231 82,632
Restricted assets
Deposits and investments 594,211 10,802,008 11,396,219
Net OPEB asset 153,986 43,499 197,485
Capital assets
Land and construction in progress 37,274,652 3,889,520 41,164,172
Other capital assets, net of
accumulated depreciation 91,176,605 61,335,986 152,512,591
Total assets 178,759,571 96,335,922 275,095,493
Deferred outflows related to pensions 4,039,063 757,925 4,796,988
Deferred charges on refunding 793,638 730,244 1,523,882
Total deferred outflows of resources 4,832,701 1,488,169 6,320,870
Accounts payable 11,208,430 2,030,881 13,239,311
Accrued liabilities 2,074,267 221,177 2,295,444
Accrued interest payable 136,207 57,488 193,695
Unearned revenue 196,006 1,314,633 1,510,639
Money held in escrow - 1,770,567 1,770,567
Noncurrent liabilities
Due within one year 3,860,009 1,311,280 5,171,289
Due in more than one year 43,090,514 19,186,700 62,277,214
Total liabilities 60,565,433 25,892,726 86,458,159
Deferred inflows related to pensions 517,857 97,175 615,032
Total deferred inflows of resources 517,857 97,175 615,032
Net investment in capital assets 99,539,958 55,396,268 154,936,226
Restricted for
Debt service 2,506,680 733,562 3,240,242
Capital projects 594,211 1,183,350 1,777,561
Impact fees - 1,966,315 1,966,315
Court technology 109,618 - 109,618
Juvenile cases 190,756 - 190,756
PEG fees 406,885 - 406,885
Developer agreements 1,857,055 - 1,857,055
Historical preservation 1,245 - 1,245
Unrestricted 17,302,574 12,554,695 29,857,269
Total net position 122,508,982$ 71,834,190$ 194,343,172$
ASSETS
LIABILITIES
NET POSITION
DEFERRED OUTFLOWS OF RESOURCES
DEFERRED INFLOWS OF RESOURCES
CITY OF EULESS, TEXAS
GOVERNMENT–WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
18
Primary GovernmentOperating Capital Business - Charges Grants and Grants and Governmental TypeProgram Activities Expenses for Services Contributions Contributions Activities Activities TotalPrimary governmentGovernmental activitiesCulture and recreation 6,468,332$ 317,024$ 490$ 6,945$ (6,143,873)$ -$ (6,143,873)$ Development services 877,713 1,409,703 - - 531,990 - 531,990
General and administrative 19,949,733 1,342,091 14,923 - (18,592,719) - (18,592,719)
Highways and streets 3,374,422 93,258 - 3,202,695 (78,469) - (78,469)
Public safety 23,807,143 3,452,086 582,024 19,305 (19,753,728) - (19,753,728)
Interest and fiscal agent charges 1,136,786 - - - (1,136,786) - (1,136,786)
Total governmental activities 55,614,129 6,614,162 597,437 3,228,945 (45,173,585) - (45,173,585)
Business-type activitiesWater and wastewater 19,970,346 20,593,262 - 1,560,375 - 2,183,291 2,183,291
Drainage utility 1,319,999 716,595 - 186,263 - (417,141) (417,141)
Golf course 4,155,834 4,168,578 - - - 12,744 12,744
Other recreation enterprises 2,009,582 1,848,434 - - - (161,148) (161,148)
Total business-type activities 27,455,761 27,326,869 - 1,746,638 - 1,617,746 1,617,746
Total primary government 83,069,890$ 33,941,031$ 597,437$ 4,975,583$ (45,173,585) 1,617,746 (43,555,839)
General RevenuesTaxesProperty taxes, levied for general purposes 14,358,074 - 14,358,074 Sales taxes 18,359,717 - 18,359,717 Car rental taxes 14,112,552 - 14,112,552 Mixed beverage taxes 84,533 - 84,533 Hotel/motel occupancy taxes 391,991 - 391,991 Gross receipts taxes 4,556,355 - 4,556,355 Investment income 127,367 40,282 167,649 Rents and royalties 1,166,832 - 1,166,832 Gain on sale of capital assets - 4,199 4,199
Miscellaneous 35,128 - 35,128 Transfers 722,702 (722,702) -
Total general revenues and transfers 53,915,251 (678,221) 53,237,030
Change in net position 8,741,666 939,525 9,681,191
NET POSITION, beginning of year, as restated (Note 13)113,767,316 70,894,665 184,661,981
NET POSITION, end of year 122,508,982$ 71,834,190$ 194,343,172$
Net (Expense) Revenue andChanges in Net PositionProgram Revenues
CITY OF EULESS, TEXAS
BALANCE SHEET – GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
19
Debt Car Streets Non-major TotalGeneralServiceRental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
Deposits and investments 11,263,131$ 816,075$ 11,211,920$ 341,127$ 11,739,694$ 35,371,947$
Receivables -
Property taxes 404,540 167,880 - - - 572,420
Accounts receivable 911,300 - - - 355,056 1,266,356
Accrued interest receivable 17,209 3,000 5,593 - 2,465 28,267
Due from other governments 2,237,099 - 2,240,947 - 1,327,537 5,805,583
Prepaids and deposits 36,002 - - - 15,399 51,401
Inventories, at cost 11,832 - - - - 11,832
Restricted deposits and investments - - - 594,211 - 594,211
Total assets 14,881,113$ 986,955$ 13,458,460$ 935,338$ 13,440,151$ 43,702,017$
Accounts payable 1,706,045$ 5,198$ 8,493,137$ 247,285$ 383,271$ 10,834,936$
Accrued liabilities 1,078,939 3,010 - - 153,724 1,235,673
Unearned revenue 140,165 - - - 55,841 196,006
Total liabilities 2,925,149 8,208 8,493,137 247,285 592,836 12,266,615
Unavailable revenue - property taxes 408,542 164,906 - - - 573,448
Unavailable revenue - other 498,092 - - - 5,615 503,707
Total deferred inflows of resources 906,634 164,906 - - 5,615 1,077,155
-
Nonspendable
Prepaids, deposits, and inventories 47,834 - - - 15,399 63,233
Restricted for
Debt service - 813,841 - - 1,664,140 2,477,981
Capital projects - - - 594,211 - 594,211
Developer agreements - - - - 1,857,055 1,857,055
Court technology 109,618 - - - - 109,618
Juvenile case management - - - - 190,756 190,756
Cable PEG - - - - 406,885 406,885
Historical preservation - - - - 1,245 1,245 Assigned 116,336 - 4,965,323 93,842 8,706,220 13,881,721
Unassigned 10,775,542 - - - - 10,775,542
Total fund balances 11,049,330 813,841 4,965,323 688,053 12,841,700 30,358,247
Total liabilities, deferred inflows of resources,and fund balances 14,881,113$ 986,955$ 13,458,460$ 935,338$ 13,440,151$ 43,702,017$
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, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
Total fund balances - governmental funds 30,358,247$
Capital assets of governmental funds are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 125,277,693
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.(136,207)
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.8,412,080
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.1,078,862
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.153,986
(11,246,146)
Long-term liabilities,including bonds payable and compensated absences
(excluding those of internal service funds)are not due and payable in the current
period and therefore are not reported in the fund financial statements.(31,389,533)
Net position of governmental activities 122,508,982$
Amounts reported for governmental activities in the statement of net position are
Funds comprising the net pension liability ($14,767,352),deferred inflows
($517,857)and deferred outflows $4,039,063 of resources related to the pension
are not current financial resources and therefore are not reported in the
governmental funds balance sheet.
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
21
Debt Car Streets Non-major Total
General Service Rental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
General property tax 10,855,012$ 3,128,311$ -$ -$ 368,275$ 14,351,598$
Gross receipts tax 4,403,348 - - - 544,998 4,948,346
Mixed beverage tax 84,533 - - - - 84,533
General sales tax 11,452,731 - - - 6,906,986 18,359,717
Car rental tax - - 14,112,552 - - 14,112,552
Fines and fees 4,289,681 - - - - 4,289,681
Licenses and permits 1,379,332 - - - - 1,379,332
Investment income 55,022 852 25,747 872 22,950 105,443
DEA revenues - - - - 39,292 39,292
Intergovernmental 415,172 - - 262,088 229,435 906,695
Rents and royalties - 525,000 - - 112,196 637,196
Other revenues 1,056,366 - - 14,831 724,198 1,795,395
Total revenues 33,991,197 3,654,163 14,138,299 277,791 8,948,330 61,009,780
Expenditures
Current
Culture and recreation 2,840,022 - - - 2,864,498 5,704,520
Development services 669,245 - - - 212,967 882,212
General and administrative 8,393,425 - 9,594,864 - 369,139 18,357,428
Highways and streets 1,456,054 - - 150,318 - 1,606,372
Public safety 21,270,813 - - - 2,250,467 23,521,280
Debt service -
Principal 94,197 3,300,000 - - 890,000 4,284,197
Interest and fiscal charges 3,523 1,222,963 - - 17,103 1,243,589
Capital outlay 1,405,336 - - 6,832,825 848,184 9,086,345
Total expenditures 36,132,615 4,522,963 9,594,864 6,983,143 7,452,358 64,685,943
Excess (deficiency) of
revenues over (under) expenditures (2,141,418) (868,800) 4,543,435 (6,705,352) 1,495,972 (3,676,163)
Other financing sources (uses)
Issuance of refunding debt - 5,685,000 - - - 5,685,000
Proceeds from bond issuance - - - 5,715,000 - 5,715,000
Premiums on issuance of debt - 789,428 - - - 789,428
Payment to refunding escrow agent - (6,074,450) - - - (6,074,450)
Transfers in 2,581,788 771,209 - 820,572 1,724,220 5,897,789
Transfers out (241,497) (285,000) (4,970,703) - (924,704) (6,421,904)
Total other financing sources (uses)2,340,291 886,187 (4,970,703) 6,535,572 799,516 5,590,863
Net change in fund balances 198,873 17,387 (427,268) (169,780) 2,295,488 1,914,700
Fund balances, beginning of year 10,850,457 796,454 5,392,591 857,833 10,546,212 28,443,547
Fund balances, end of year 11,049,330$ 813,841$ 4,965,323$ 688,053$ 12,841,700$ 30,358,247$
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, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
22
Net change in fund balances - total governmental funds 1,914,700$
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,capital
contributions, and disposals recorded in the current period.11,610,041
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.(4,812,010)
The issuance of long-term debt provides current financial resources to governmental
funds, but has no effect on net position.(11,400,000)
The repayment of the principal of long-term debt consumes the current financial resources
of governmental funds, but has no effect on net position.10,214,196
Governmental funds report the effect of premiums,discounts,and deferred charges on
refunding when debt is first issued,whereas the amounts are deferred and amortized in
the statement of activities.(552,666)
Current year changes in the long-term liabilities for compensated absences and other post
employment obligations do not require the use of current financial resources;therefore,
they are not reported as expenditures in governmental funds.(17,027)
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.17,754
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.1,276,502
The implementation of GASB 68 required reclassification of certain prior year expenses
and recorded as deferred resources or a reduction in net pension liability.The net effect
of these items increased net position. 485,338
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.4,838
Change in net position of governmental activities 8,741,666$
Amounts reported for governmental activities in the statement of activities are different
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
SEPTEMBER 30, 2015
(1 of 2)
The Notes to the Basic Financial Statements
are an integral part of these statements.
23
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Current assets
Deposits and investments 9,169,110$ 1,312,230$ 1,421,883$ 2,180,273$ 14,083,496$ 8,755,189$
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$11,319 for water and wastewater and
$213 for drainage utility 3,100,166 79,539 204,308 16,539 3,400,552 111,715
Accrued interest receivable 11,500 2,985 3,651 1,025 19,161 4,784
Prepaids and deposits 1,659 - 7,905 21,667 31,231 -
Inventory 112,780 - 108,697 89,615 311,092 -
Total unrestricted current assets 12,395,215 1,394,754 1,746,444 2,309,119 17,845,532 8,871,688
Restricted deposits and investments
W&WW impact fees 1,966,315 - - - 1,966,315 -
Capital projects 8,102,131 - - - 8,102,131 -
Revenue bond reserve for debt service 733,562 - - - 733,562 -
Total restricted assets 10,802,008 - - - 10,802,008 -
Total current assets 23,197,223 1,394,754 1,746,444 2,309,119 28,647,540 8,871,688
Non-current assets
Net OPEB asset 34,871 - 7,200 4,042 46,113 -
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 1,337,425 16,780 650,896 205,809 2,210,910 10,311,064
Improvements 1,055,901 974,001 8,614,304 8,150,654 18,794,860 -
Construction in progress 270,975 - - - 270,975 -
Utility system 71,143,318 26,931,733 - - 98,075,051 -
Total property, plant, and equipment in service 75,481,380 28,482,340 13,686,452 9,429,270 127,079,442 10,311,064
Less accumulated depreciation 37,924,157 12,679,330 6,538,730 4,711,719 61,853,936 7,137,500
Net property, plant, and equipment in service 37,557,223 15,803,010 7,147,722 4,717,551 65,225,506 3,173,564
Total non-current assets 37,592,094 15,803,010 7,154,922 4,721,593 65,271,619 3,173,564
Total assets 60,789,317 17,197,764 8,901,366 7,030,712 93,919,159 12,045,252
Deferred outflows related to pensions 575,639 57,564 105,534 19,188 757,925 -
Deferred charges on refunding 167,016 - 556,583 6,645 730,244 -
Total deferred outflows of resources 742,655 57,564 662,117 25,833 1,488,169 -
ASSETS
Business - Type Activities -
Enterprise Funds
DEFERRED OUTFLOWS OF RESOURCES
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
SEPTEMBER 30, 2015
(2 of 2)
The Notes to the Basic Financial Statements
are an integral part of these statements.
24
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 1,851,477$ 1,992$ 137,242$ 40,170$ 2,030,881$ 373,493$
Accrued salaries and wages 351,401 25,942 73,185 28,040 478,568 4,057
Current portion of bonds payable 635,000 - 465,000 160,000 1,260,000 -
Accrued insurance claims - - - - - 836,245
Unearned revenue 1,183,350 - 131,283 - 1,314,633 -
Accrued interest 36,960 - 19,728 800 57,488 -
Total current liabilities 4,058,188 27,934 826,438 229,010 5,141,570 1,213,795
Non-current liabilities
Customer and escrow deposits 1,702,135 - 68,432 - 1,770,567 -
Net pension liability 2,104,359 212,189 385,800 66,638 2,768,986 -
Net OPEB obligations - 2,614 - - 2,614 -
Bonds payable 10,281,850 - 5,921,829 7,924 16,211,603 -
Total non-current liabilities 14,088,344 214,803 6,376,061 74,562 20,753,770 -
Total liabilities 18,146,532 242,737 7,202,499 303,572 25,895,340 1,213,795
Deferred inflows related to pensions 73,804 7,380 13,531 2,460 97,175 -
Total deferred inflows of resources 73,804 7,380 13,531 2,460 97,175 -
NET POSITION
Net investment in capital assets 33,726,155 15,803,010 1,317,476 4,549,627 55,396,268 3,173,564
Restricted for
Impact fees 1,966,315 - - - 1,966,315 -
Capital projects 1,183,350 - - - 1,183,350 -
Debt service 733,562 - - - 733,562 -
Unrestricted 5,702,254 1,202,201 1,029,977 2,200,886 10,135,318 7,657,893
Total net position 43,311,636$ 17,005,211$ 2,347,453$ 6,750,513$ 69,414,813 10,831,457$
Reconciliation to government-wide statement of net positionAdjustment to reflect the consolidation of internalservice funds' activities related to enterprise funds 2,419,377
Net position of business-type activities 71,834,190$
LIABILITIES
Business - Type Activities -
Enterprise Funds
DEFERRED INFLOWS OF RESOURCES
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION –
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
25
GovernmentalActivities - Other Total InternalWater and Drainage Golf Enterprise Enterprise ServiceWastewaterUtilityCourseFundsFundsFundsOperating revenuesWater service 11,454,505$ -$ -$ -$ 11,454,505$ -$ Reclaimed water service 100,362 - - - 100,362 - Wastewater service 7,405,330 - - - 7,405,330 - Drainage fees - 716,595 - - 716,595 - Recreation fees - - - 584,858 584,858 - Insurance premiums - - - - - 6,133,230 Service fees and miscellaneous 1,633,065 - 4,168,578 1,263,576 7,065,219 1,048,593
Total operating revenues 20,593,262 716,595 4,168,578 1,848,434 27,326,869 7,181,823
Operating expensesGeneral and administrative 431,319 - - - 431,319 1,180,720 Water production 6,857,817 - - - 6,857,817 - Water distribution 841,547 - - - 841,547 - Utility engineering 661,164 - - - 661,164 - Wastewater collection and treatment 3,437,940 - - - 3,437,940 - Nondepartmental 3,982,306 - - - 3,982,306 - Geographic information systems 495,644 - - - 495,644 - Service center 1,171,472 - - - 1,171,472 - Drainage - 581,364 - - 581,364 - Recreation classes - - - 568,022 568,022 - Golf course - - 1,569,209 - 1,569,209 - Pro shop - - 385,868 - 385,868 - Food and beverage - - 1,301,034 - 1,301,034 - Conference center - - 270,038 - 270,038 - Cart operations - - 175,570 - 175,570 - Texas Star Sports Complex - - - 1,066,558 1,066,558 - Arbor Daze - - - 58,771 58,771 - Insurance costs - - - - - 5,141,566 Depreciation 1,933,932 738,635 243,445 300,330 3,216,342 977,239 Amortization 19,843 - 27,480 (1,279) 46,044 -
Total operating expenses 19,832,984 1,319,999 3,972,644 1,992,402 27,118,029 7,299,525
Operating income (loss)760,278 (603,404) 195,934 (143,968) 208,840 (117,702)
Nonoperating revenues (expenses)Gain (loss) on sale of capital assets - - (1,236) 5,435 4,199 90,583 Investment income 33,493 1,168 2,658 2,963 40,282 21,925 Interest expense (129,703) - (164,500) (8,650) (302,853) -
Total nonoperating revenues (expenses), net (96,210) 1,168 (163,078) (252) (258,372) 112,508
Loss before contributions and transfers 664,068 (602,236) 32,856 (144,220) (49,532) (5,194)
Developer contributions 1,560,375 186,263 - - 1,746,638 - Transfers in - - 318,579 - 318,579 1,471,817 Transfers out (1,230,577) (35,704) - - (1,266,281) -
Net income (loss)993,866 (451,677) 351,435 (144,220) 749,404 1,466,623
Net position, beginning, as restated (Note 13)42,317,770 17,456,888 1,996,018 6,894,733 9,364,834
Net position, end of year 43,311,636$ 17,005,211$ 2,347,453$ 6,750,513$ 10,831,457$
Reconciliation to government-wide statement of net position Adjustment to reflect the consolidation of internal service funds' activities related to enterprise funds 190,121
Change in net position of business-type activities 939,525$
Business - Type Activities - Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
OPERATING ACTIVITIES
Cash received from customers 20,255,626$ 724,011$ 4,193,267$ 1,861,567$ 27,034,471$ 7,388,289$
Cash payments to suppliers
for goods and services (14,776,568) (307,091) (2,259,330) (1,269,894) (18,612,883) (6,562,324)
Cash payments to employees
for services (3,070,605) (313,145) (1,506,577) (457,878) (5,348,205) (52,382)
Net cash provided by
operating activities 2,408,453 103,775 427,360 133,795 3,073,383 773,583
NONCAPITAL FINANCING ACTIVITIES
Transfer in - - 318,579 - 318,579 1,471,817
Transfer out (1,230,577) (35,704) - - (1,266,281) -
Net cash provided by (used in)
noncapital financing activities (1,230,577) (35,704) 318,579 - (947,702) 1,471,817
CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from bond issuances 7,065,000 - - - 7,065,000 -
Impact fees 555,805 - - - 555,805 -
Purchase of capital assets (1,616,834) (90,817) - - (1,707,651) (1,107,294)
Interest paid on bonds (116,920) - (166,725) (9,400) (293,045) -
Principal paid on bonds (410,000) - (445,000) (150,000) (1,005,000) -
Capital grant receipts 1,183,350 - - - 1,183,350 -
Proceeds from sale of capital assets - - 19,315 5,434 24,749 98,601
Net cash provided by (used in) capital
and related financing activities 6,660,401 (90,817) (592,410) (153,966) 5,823,208 (1,008,693)
INVESTING ACTIVITIES
Interest received on investments 29,373 (1,817) (745) 1,938 28,749 24,181
Net cash provided by investing
activities 29,373 (1,817) (745) 1,938 28,749 24,181
Net change in cash and cash
equivalents 7,867,650 (24,563) 152,784 (18,233) 7,977,638 1,260,888
Cash and cash equivalents,
beginning of year 12,103,468 1,336,793 1,269,099 2,198,506 16,907,866 7,494,301
Cash and cash equivalents, end of year 19,971,118$ 1,312,230$ 1,421,883$ 2,180,273$ 24,885,504$ 8,755,189$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – CONTINUED
YEAR ENDED SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
27
GovernmentalActivities -
Other Total InternalWater and Drainage Golf Enterprise Enterprise ServiceWastewaterUtilityCourseFundsFundsFunds
Reconciliation of operating income (loss)to net cash provided by
operating activities
Operating income (loss)760,278$ (603,404)$ 195,934$ (143,968)$ 208,840$ (117,702)$
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities
Depreciation and amortization 1,953,775 738,635 270,925 299,051 3,262,386 977,239
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue (416,703) 37 1,018 10,673 (404,975) 206,466
Prepaids and deposits (1,389) - (62) (6,956) (8,407) -
Inventory (12,120) - (9,646) (13,852) (35,618) -
Net OPEB asset/obligation (13,873) 2,614 (3,432) (438) (15,129) -
Net pension liability 20,063 2,022 3,679 635 26,399 -
Deferred outflows (163,087) 7,380 (29,899) (5,436) (191,042)
Deferred inflows 73,804 (16,309) 13,531 2,460 73,486
Accounts payable 149,691 (19,292) (11,706) (12,734) 105,959 (388,932)
Accrued salaries and
wages 52,748 (7,908) (13,122) 4,360 36,078 (2,268)
Accrued insurance claims - - - - - 98,780
Customer and escrow
deposits 5,266 - - - 5,266 -
Unearned revenue - - 10,140 - 10,140 -
Net cash provided byoperating activities 2,408,453$ 103,775$ 427,360$ 133,795$ 3,073,383$ 773,583$
Noncash financing activitiesDeveloper contributed assets 1,004,570$ 186,263$ -$ -$ 1,190,833$ -$
Reconciliation of cash to balance sheet:
Cash - current 9,169,110$ 1,312,230$ 1,421,883$ 2,180,273$ 14,083,496$ 8,755,189$
Cash - restricted 10,802,008 - - - 10,802,008 -
Cash and cash equivalents 19,971,118$ 1,312,230$ 1,421,883$ 2,180,273$ 24,885,504$ 8,755,189$
Business - Type Activities - Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – FIDUCIARY FUNDS
SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
28
Agency OPEB
Funds Trust Fund
ASSETS
Investments at fair value
Money market account 1,420,809$ 115,102$
Fixed income funds - 1,298,911
Equity funds - 2,073,934
Total assets 1,420,809$ 3,487,947$
LIABILITIES
Due to other entities 1,420,547$ 400$
Refunds payable 262 -
Total liabilities 1,420,809$ 400$
NET POSITION
Held in trust for OPEB 3,487,547$
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
OPEB TRUST FUND
YEAR ENDED SEPTEMBER 30, 2015
The Notes to the Basic Financial Statements
are an integral part of these statements.
29
OPEB
Trust Fund
ADDITIONS
Employer contributions 985,469$
Other contributions 295,765
Investment loss
Net decrease in fair value of investments (47,498)
Less: investment expense (24,163)
Total investment loss (71,661)
Total additions 1,209,573
DEDUCTIONS
Insurance claims 660,916
Administrative expenses 104,890
Total deductions 765,806
Change in net position 443,767
Net position - beginning 3,043,780
Net position - ending 3,487,547$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
30
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) and the American Institute of
Certified Public Accountants in the publication entitled Audits of State and Local
Governmental Units.
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
31
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 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 substantially 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. Financial information for TIRZ #3 may be obtained from the City.
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
32
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.
Streets Capital Improvements Project (CIP) Fund
The Streets CIP Fund is used to account for street construction and reconstruction
projects and the means of financing such improvements.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
33
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 four 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. Glade Parks III Escrow agency fund and Glade Parks IV Escrow agency
fund account for developer funds deposited with the City for contractor payments for
public improvements in the Glade Parks Development on behalf of the developers.
Both escrow projects have reached completion and excess funds have been returned
to the developer. The OPEB Trust Fund accounts for the accumulation and use of
resources for benefit payments related to post-employment health care.
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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
34
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
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 and proprietary fund financial statements 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 and short-term motor vehicle rental 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.
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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
35
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Deposits and Investments – Continued
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 deposits 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 $.4675 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.
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.”
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
36
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
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 $5,000 or more and over one year of useful
life. Depreciation has been calculated on each class of depreciable property using the
straight-line method. Estimated useful lives are as follows:
Buildings 33 1/3 years
Water and wastewater system 33 1/3 years
Storm drainage system 33 1/3 years
Infrastructure 7 - 40 years
Machinery and equipment 5 - 15 years
Improvements 25 years
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. The
City's policy is to pay the employee accumulated vacation upon termination. The City
does not pay employees for accumulated sick leave upon termination. Vacation pay
accrued in the proprietary fund financial statements is reported as accrued salaries and
wages (a current liability). Compensated absences are recorded in governmental funds as
they mature (i.e. as taken). The liability for governmental fund compensated absences is
typically liquidated in the general fund, the juvenile case fund, the half-penny sales tax
fund, and the crime control and prevention district fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
37
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
General Fund
Debt
Service
Fund
Car Rental
Tax Fund
Streets CIP
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Nonspendable 47,834$ -$ -$ -$ 15,399$ 63,233$
Restricted for
Debt service - 813,841 - - 1,664,140 2,477,981
Capital projects - - - 594,211 - 594,211
Developer agreements - - - - 1,857,055 1,857,055
Court technology 109,618 - - - - 109,618
Juvenile case processing - - - - 190,756 190,756
PEG fees - - - - 406,885 406,885
Historical preservation - - - - 1,245 1,245
Assigned
Capital projects - - - - 3,726,057 3,726,057
Betterments 40,370 - - - - 40,370
Emergency/radio systems 47,230 - - - - 47,230
Tourism and
conference facilities - - - - 283,330 283,330
Parks, library, and
economic development - - - - 2,481,962 2,481,962
Police department - - - - 2,174,285 2,174,285
Grants - - - - 10,316 10,316
Other 28,736 - 4,965,323 93,842 30,270 5,118,171
Unassigned 10,775,542 - - - - 10,775,542
Total 11,049,330$ 813,841$ 4,965,323$ 688,053$ 12,841,700$ 30,358,247$
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
38
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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
39
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
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.
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.
Unassigned: This classification includes all amounts that are not included in other
spendable classifications. The General Fund is the only fund that reports a positive
unassigned fund balance.
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
40
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Pensions
For purposes of measuring the net pension liability, pension related deferred outflows and
inflows of resources, and pension expense, City specific information about its Fiduciary
Net Position in the Texas Municipal Retirement System (TMRS) and additions
to/deductions from the City’s Fiduciary Net Position have been determined on the same
basis as they are reported by TMRS. For this purpose, plan contributions are recognized in
the period that compensation is reported for the employee, which is when contributions are
legally due. Benefit payments and refunds are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value. Information
regarding the City’s Total Pension Liability is obtained from TMRS through a report
prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in
compliance with Governmental Accounting Standards Board (GASB) Statement No. 68,
Accounting and Financial Reporting for Pensions.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has the following items that qualify for reporting in this category.
• Deferred charges on refundings – A deferred charge on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
• Pension contributions after measurement date – These contributions are deferred
and recognized in the following fiscal year.
• Difference in projected and actual earnings on pension assets – This difference is
deferred and amortized over a closed five year period.
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position that applies to a
future period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The only item reported in this category is the difference in expected and actual
pension experience which is deferred and recognized over the estimated average remaining
lives of all members determined as of the measurement date.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
41
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures
As of September 30, 2015, the City’s portfolio contained the following investments:
% of Rating
Book Value Fair Value Portfolio WAM Rating Agency
Overnight pools
TexPool 12,583,220$ 12,583,220$ 17.67%40 AAAm S&P
TexStar 14,080,968 14,080,968 19.77%56 AAAm S&P
Bank of Texas 8,108,934 8,108,934 11.39%52 A-/A2 S&P/Moodys
Total overnight 34,773,122 34,773,122 48.83%
Investment securities
FFCB 12,107,886 12,120,370 17.02%53 AA+/Aaa S&P/Moody's
FHLB 19,259,554 19,283,090 27.08%111 AA+/Aaa S&P/Moody's
FHLMC 3,502,085 3,507,050 4.92%33 AA+/Aaa S&P/Moody's
FNMA 1,018,840 1,022,486 1.44%11 AA+/Aaa S&P/Moody's
FAMCA 506,558 506,430 0.71%2
Total securities 36,394,923 36,439,426 51.17%
Total portfolio 71,168,045$ 71,212,548$ 100.00%187
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, 2015. At year-end, the carrying amount of the City’s
deposits was $269,576 with a bank balance of $409,081.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
42
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures – Continued
Deposits – Continued
The total bank balance is covered by Federal Depository Insurance Corporation (FDIC)
insurance. In addition to the insurance coverage, 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 $1,245,165.
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, 2015, 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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
43
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Investments – Continued
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.
Interest Rate Risk
In compliance with the City’s Investment Policy, as of September 30, 2015, 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 funds
primarily in money market mutual funds, government investment pools, and shorter-term
securities with a weighted average maturity of less than 200 days.
The following table details the maturity schedule for the City’s investments as of
September 30, 2015.
% of
Maturity Schedule Book Value Fair Value Portfolio
Overnight 34,773,122$ 34,773,122$ 48.9%
Less than 1 month 2,000,000 2,000,320 2.8%
1 to 6 months 6,759,587 6,764,190 9.5%
6 to 9 months 3,996,265 4,001,655 5.6%
9 to 12 months 5,625,867 5,628,231 7.9%
12 to 18 months 9,614,459 9,629,095 13.5%
18 to 24 months 7,898,745 7,914,690 11.1%
Over 24 months 500,000 501,245 0.7%
Total 71,168,045$ 71,212,548$ 100.0%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
44
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2015, 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.
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 collateral safekeeping
agent.
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, 2015, 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, 2015, was as follows:
Balance Balance
Beginning Adjustment/End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land 26,583,787$ 1,523,578$ -$ -$ 28,107,365$
Construction in progress 3,743,481 7,540,459 - (2,116,653) 9,167,287
Total capital assets
not being depreciated 30,327,268 9,064,037 - (2,116,653) 37,274,652
Capital assets being depreciated
Buildings 58,428,137 - (94,500) - 58,333,637
Improvements other than buildings 9,377,239 41,957 - - 9,419,196
Infrastructure 71,907,490 1,243,636 - 2,116,653 75,267,779
Machinery and equipment 9,583,555 1,343,762 (828,792) - 10,098,525
Total capital assets
being depreciated 149,296,421 2,629,355 (923,292) 2,116,653 153,119,137
Less accumulated depreciation
Buildings (19,194,515) (1,705,635) 70,875 163 (20,829,112)
Improvements other than buildings (3,348,586) (325,518) - - (3,674,104)
Infrastructure (33,514,488) (1,973,434) - 204 (35,487,718)
Machinery and equipment (5,086,438) (807,423) 727,475 41,224 (5,125,162)
Total accumulated depreciation (61,144,027) (4,812,010) 798,350 41,591 (65,116,096)
Total capital assets being
depreciated, net 88,152,394 (2,182,655) (124,942) 2,158,244 88,003,041
Total governmental fund capital
assets, net 118,479,662 6,881,382 (124,942) 41,591 125,277,693
Internal service funds
Capital assets being depreciated
Machinery and equipment 9,746,769 1,107,294 (542,999) - 10,311,064
Total internal service assets
being depreciated 9,746,769 1,107,294 (542,999) - 10,311,064
Less accumulated depreciation
Machinery and equipment (6,695,242) (998,416) 534,961 21,197 (7,137,500)
Total internal service funds
capital assets, net 3,051,527 108,878 (8,038) 21,197 3,173,564
Total governmental activities
capital assets, net 121,531,189$ 6,990,260$ (132,980)$ 62,788$ 128,451,257$
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 353,219 1,447,225 - (1,529,469) 270,975
Total assets not being depreciated 3,971,764 1,447,225 - (1,529,469) 3,889,520
Capital assets being depreciated
Buildings 4,109,101 - - - 4,109,101
Equipment 2,056,381 273,425 (118,896) - 2,210,910
Improvements 18,681,543 113,317 - - 18,794,860
Utility system 95,481,064 1,064,518 - 1,529,469 98,075,051
Total capital assets being
depreciated 120,328,089 1,451,260 (118,896) 1,529,469 123,189,922
Less accumulated depreciation
Buildings (2,036,686) (124,604) - - (2,161,290)
Equipment (1,701,740) (117,217) 98,344 162,247 (1,558,366)
Improvements (8,599,119) (683,936) - 8,182 (9,274,873)
Utility system (46,398,393) (2,461,014) - - (48,859,407)
Total accumulated depreciation (58,735,938) (3,386,771) 98,344 170,429 (61,853,936)
Total capital assets being
depreciated, net 61,592,151 (1,935,511) (20,552) - 61,335,986
Total business-type activities
capital assets, net 65,563,915$ (488,286)$ (20,552)$ 170,429$ 65,225,506$
Depreciation expense was charged as direct expense to programs of the primary government
as follows:
Governmental activities
Culture and recreation 776,029$
General administrative 2,691,541
Highways and streets 1,769,511
Public safety 573,345
Total depreciation expense - governmental activities 5,810,426$
Business-type activities
Water and wastewater 1,935,113$
Drainage utility 738,635
Golf course 403,265
Other recreation enterprises 309,758
Total depreciation expense - business-type activities 3,386,771$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
47
NOTE 3. CAPITAL ASSETS – CONTINUED
Outstanding commitments at September 30, 2015, under authorized construction contracts,
were $5,828,527. These outstanding commitments are to be financed by available deposit
and investment balances, which include proceeds from previous bond issuances.
NOTE 4. LONG-TERM DEBT
The following is a summary of long-term debt transactions of the City for the year ended
September 30, 2015:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds 24,070,000$ 5,685,000$ (9,100,000)$ 20,655,000$ 3,230,000$
Certificates of obligation 2,780,000 5,715,000 (130,000) 8,365,000 135,000
Sales tax revenue bonds 1,175,000 - (890,000) 285,000 165,000
Capital leases 94,196 - (94,196) - -
Premium on bonds 691,906 789,428 (344,858) 1,136,476 154,342
Discount on bonds (69,539) (85,525) 12,736 (142,328) (12,736)
Net pension obligation 2,415,732 - (2,415,732) - -
Net pension liability - 14,767,352 - 14,767,352 -
Compensated absences 1,776,085 470,273 (362,335) 1,884,023 188,403
Total governmental activities 32,933,380 27,341,528 (13,324,385) 46,950,523 3,860,009
Business-type activities
Water and sewer revenue bonds 4,285,000 7,065,000 (410,000) 10,940,000 635,000
General obligation refunding bonds 6,915,000 - (595,000) 6,320,000 625,000
Premiums on bonds 268,027 - (27,170) 240,857 27,170
Discounts on bonds (30,881) - 1,625 (29,256) (1,625)
Net pension obligation 459,112 - (459,112) - -
Net pension liability - 2,768,988 - 2,768,988 -
Compensated absences 222,691 97,471 (62,771) 257,391 25,739
Total business-type activities 12,118,949 9,931,459 (1,552,428) 20,497,980 1,311,284
Total primary government 45,052,329$ 37,272,987$ (14,876,813)$ 67,448,503$ 5,171,293$
General Obligation Bonds
General obligation bonds and general obligation refunding bonds provide funds for the
acquisition and construction of major capital equipment, City facilities, and infrastructure
assets and the refunding of previously issued debt instruments. General obligation bonds
require voter authorization; whereas general obligation refunding bonds do not. General
obligation bonds are direct obligations of the City, payable from a continuing and direct
ad valorem tax, levied within the limits prescribed by law, on all taxable property within
the City as provided in the ordinances authorizing issuance of the bonds.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
48
NOTE 4. LONG-TERM DEBT – CONTINUED
General Obligation Bonds – Continued
The City is required to compute an interest and sinking fund tax rate sufficient to cover
the annual debt service requirements inclusive of anticipated drawdown of reserves,
transfers or revenues from self-supporting debt systems, and other miscellaneous sources.
As of September 30, 2015, general obligation bonds currently outstanding are as follows:
Interest Issue Maturity Principal
Rate % Date Date Outstanding
General Obligation Bonds
Taxable Refunding, Series 2010 .68% –
4.4%
08/15/2010 08/01/2025 $5,735,000
Refunding, Series 2011 2% – 4% 01/15/2011 08/15/2021 4,650,000
Refunding, Series 2012 2% – 4% 12/01/2011 02/15/2024 4,240,000
Refunding, Series 2012A 2% – 4% 11/01/2012 02/15/2027 6,715,000
Refunding, Series 2014 3% 10/15/2014 02/15/2020 5,635,000
Total $26,975,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Governmental Activities Business-Type Activities
Year Principal Interest Principal Interest Total
2016 $3,230,000 $679,123 $625,000 $151,725 $4,685,848
2017 2,935,000 589,874 455,000 134,675 4,114,549
2018 3,030,000 496,844 470,000 125,425 4,122,269
2019 2,655,000 406,309 475,000 113,600 3,649,909
2020 2,765,000 316,181 490,000 99,125 3,670,306
2021-2025 6,040,000 589,331 2,655,000 300,654 9,584,985
2026-2027 – – 1,150,000 30,097 1,180,097
Total $20,655,000 $3,077,662 $6,320,000 $955,301 $31,007,963
The business-type activities general obligation refunding bonds were issued to refund
previously issued golf course and softball debt. The City anticipates repayment of the
debt will occur from the respective system revenues from these enterprise activities.
However, these plans are subject to change.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
49
NOTE 4. LONG-TERM DEBT – CONTINUED
Certificates of Obligation
Certificates of obligation are issued for many of the same purposes as general obligation
bonds, but certificates do not require voter authorization nor may they be used to refund
existing debt. The certificates constitute direct obligations of the City, payable from (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 sanitary sewer system.
The City current has the following certificates of obligation outstanding as of the end of
the fiscal year:
Interest Issue Maturity Principal
Rate % Date Date Outstanding
Certificates of Obligation
Series 2011 3% – 4.25% 01/15/2011 08/15/2030 $2,650,000
Series 2014 0% – 5% 10/15/2014 08/15/2034 5,715,000
Total $8,365,000
Annual debt service requirements to maturity for the certificates of obligation are as
follows:
Fiscal Governmental Activities
Year Principal Interest Total
2016 $135,000 $310,594 $445,594
2017 360,000 306,544 666,544
2018 375,000 291,344 666,344
2019 390,000 275,494 665,494
2020 410,000 257,494 667,494
2021-2025 2,325,000 992,470 3,317,470
2026-2030 2,785,000 532,976 3,317,976
2031-2034 1,585,000 120,600 1,705,600
Total $8,365,000 $3,087,516 $11,452,516
Revenue Bonds
Each series of revenue bonds is backed by the pledged revenue sources identified in the
bond ordinances authorizing issuance of the bonds. The purpose and primary pledged
revenue sources of each type of revenue bond are summarized as follows.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
50
NOTE 4. LONG-TERM DEBT – CONTINUED
Revenue Bonds – Continued
Half-penny sales tax fund issues sales tax revenue bonds (STRB) to finance library, park,
and economic development projects throughout the City. Sales tax revenue bonds are
special obligations of the Euless Development Corporation (EDC), payable solely from
and secured by a lien on and pledge of certain Pledged Revenues which includes the
gross proceeds of a ½¢ sales and use tax levied within the City for the benefit of the
EDC. The EDC is reflected in the financial statements of the City as a special revenue
fund. Accordingly, the EDC’s debt is reflected in governmental activities debt.
Water and wastewater fund issues revenue bonds (W&WW) for the construction of and
improvement to the City’s combined waterworks and sanitary sewer infrastructure or to
refund previously issued revenue bonds. Water and sewer revenue bonds and refunding
bonds are payable solely from and equally secured by a first lien on and pledge of the net
revenues of the City’s water and wastewater system.
Interest Issue Maturity Principal
Rate % Date Date Outstanding
Revenue Bonds
STRB Refunding, Series 2012 1.43% 01/12/2012 09/15/2019 $285,000
W&WW Refunding, Series 2012 2.03% 03/29/2012 07/15/2024 2,410,000
W&WW Improvement, Series 2013 2% – 5% 06/25/2013 07/15/2033 1,465,000
W&WW Improvement, Series 2015A 0% 1.98% 06/15/2015 07/15/2035 4,685,000
W&WW Improvement, Series 2015B 0% 1.68% 06/15/2015 07/15/2035 2,380,000
Total $11,225,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Governmental Activities Business-Type Activities
Year Principal Interest Principal Interest Total
2016 $165,000 $4,076 $635,000 $181,709 $985,785
2017 45,000 1,716 765,000 177,600 989,316
2018 35,000 1,073 780,000 168,392 984,465
2019 40,000 572 790,000 158,829 989,401
2020 – – 800,000 148,820 948,820
2021-2025 – – 2,615,000 614,037 3,229,037
2026-2030 – – 2,260,000 407,844 2,667,844
2031-2035 – – 2,295,000 141,897 2,436,897
Total $285,000 $7,437 $10,940,000 $1,999,128 $13,231,565
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
51
NOTE 4. LONG-TERM DEBT – CONTINUED
Revenue Bonds – Continued
The gross ½¢ sales tax revenues of the EDC recognized in the year ending September 30,
2015 totaled $4,595,916. The principal and interest payments on the EDC debt for the
same period totaled $907,103 which equates to approximately 20% of the gross ½¢ sales
tax revenues.
The recognized net revenues of the water and wastewater fund totaled $2,354,146 for the
year ending September 30, 2015. Principal and interest payments on the water and sewer
revenue bonds totaled $539,703 which equates to approximately 23% of net system
revenues.
Annual Requirements to Retire Debt Obligations
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.
All funding requirements for the above reserves were met at September 30, 2015.
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).
Water and sewer revenue bonds authorized and unissued as of September 30, 2015,
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.
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 $8,809,926 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
$79,441 in the year ended September 30, 2015 and are included as operating expenses of the
water and wastewater fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the
operating costs of the City's service center, which provides services to all City departments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
53
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations
of those funds.
Transfers in
General Debt service Street CIP
Nonmajor
governmental
Subtotal
governmental
Transfers out
General -$ -$ -$ 2,325$ 2,325$
Debt service - - 285,000 - 285,000
Car rental tax 1,540,507 200,912 535,572 1,671,895 3,948,886
Water and wastewater 1,005,577 - - - 1,005,577
Drainage utility 35,704 - - - 35,704
Nonmajor governmental - 570,297 - 50,000 620,297
Total transfers in 2,581,788$ 771,209$ 820,572$ 1,724,220$ 5,897,789$
Transfers in
Major Enterprise
Internal Golf Subtotal Total
service course proprietary transfers out
Transfers out
General 225,000$ 14,172$ 239,172$ 241,497$
Debt service - - - 285,000
Car rental tax 1,021,817 - 1,021,817 4,970,703
Water and wastewater 225,000 - 225,000 1,230,577
Drainage utility - - - 35,704
Nonmajor governmental - 304,407 304,407 924,704
Total transfers in 1,471,817$ 318,579$ 1,790,396$ 7,688,185$
Major Governmental
Transfers are primarily used to move funds from:
• The general fund to the non-major governmental fund to satisfy grant matching
requirements and to the golf course fund for sales tax rebates.
• 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 street CIP and non-major governmental funds for
approved capital projects.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
54
NOTE 7. INTERFUND TRANSFERS – CONTINUED
• The non-major governmental funds to the debt service fund for the debt service
payments on previously issued debt and the other non-major governmental funds for
approved projects.
• The general fund and water and wastewater fund to the internal service funds for
workers’ compensation and general liability insurance claims.
• The car rental fund to the internal service fund for equipment purchases and to
increase insurance reserves.
• 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.
• The debt service fund to street CIP fund for the transfer of bond proceeds for
approved capital projects.
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 $5,829,667. During fiscal year 2015, the City
and the City's employees contributed approximately $4,402,679 and $1,323,744 respectively,
for medical coverage.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
55
NOTE 8. RISK MANAGEMENT – CONTINUED
The City's contributions are accounted for as interfund services provided and used. Claims
liabilities are based on estimates of the ultimate cost of claims (including future claim
adjustment expenses) that have been reported but not settled, and of claims that have been
incurred but not reported, and are accounted for in the Insurance Internal Service Fund.
Changes in the balances of health and dental claims liabilities for the years ended
September 30, 2015 and 2014 are as follows:
2015 2014
Unpaid claims, beginning of year 487,899$ 372,657$
Incurred claims 4,415,030 4,487,700
Paid claims (4,395,429) (4,372,458)
Unpaid claims, end of year 507,500$ 487,899$
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2015 or any of the three preceding years ended September 30.
NOTE 9. DEFINED BENEFIT PENSION PLAN
Plan Description
The City participates as one of 860 plans in the nontraditional, joint contributory, hybrid
defined benefit pension plan administered by the Texas Municipal Retirement System
(TMRS). TMRS is an agency created by the State of Texas and administered in
accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS
Act) as an agent multiple-employer retirement system for municipal employees in the
State of Texas. The TMRS Act places the general administration and management of the
System with a six-member Board of Trustees. Although the Governor, with the advice
and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the
State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section
401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive
annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
56
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Benefits Provided
TMRS provides retirement and disability benefits. Benefit provisions are adopted by the
governing body of the City, within the options available in the state statutes governing
TMRS and within the actuarial constraints also in the statutes.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with
interest, and the city-financed monetary credits with interest were used to purchase an
annuity. Members may choose to receive their retirement benefit in one of seven
payments options. Members may also choose to receive a portion of their benefit as a
Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments,
which cannot exceed 75% of the member’s deposits and interest.
Plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee) 2 to 1
A member is vested after 5 years
Service retirement eligibility 20 years at any age, 5 years at 60 and above
Updated service credit 100% Repeating, Transfers
Annuity increase (to retirees) 70% of CPI
Members can retire at certain ages, based on the years of service in TMRS. The Service
Retirement Eligibilities for the City are 5 years at 60 years of age or 20 years in TMRS at
any age.
Employees Covered By Benefit Terms
At the December 31, 2014 valuation and measurement date, the following employees
were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 191
Inactive employees entitled to, but not yet receiving benefits 134
Active employees 369
Total 694
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
57
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee
gross earnings, and the city matching percentages are either 100%, 150%, or 200%, both
as adopted by the governing body of the City. Under the state law governing TMRS, the
contribution rate for each city is determined annually by the actuary, using the Entry Age
Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated
amount necessary to finance the cost of benefits earned by employees during the year,
with an additional amount to finance any unfunded accrued liability.
Employees of the City were required to contribute 7% of their annual gross earnings
during the year ended September 30, 2015. The contribution rates for the City were
18.73% and 18.05% in calendar years 2014 and 2015, respectively. The City’s
contributions to TMRS for the year ended September 30, 2015 were $4,602,538 and were
equal to the required contributions.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2014, and the
Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined
by an actuarial valuation as of that date.
Actuarial Assumptions
The TPL in the December 31, 2014 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 3.0% per year
Overall payroll growth 3.0% per year
Investment rate of return 7.0%, net of pension plan investment expense,
including inflation
Salary increases were based on a service-related table. Mortality rates for active
members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined
Healthy Mortality Table with Blue Collar Adjustments, with male rates multiplied by
109% and female rates multiplied by 103%. Based on the size of the City, rates are
multiplied by a factor of 100%.
The rates are projected on a fully generational basis by scale BB to account for future
mortality improvements. For disabled annuitants, the gender-distinct RP2000 Disabled
Retiree Mortality Table is used, with slight adjustments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
58
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Actuarial Assumptions – Continued
Actuarial assumptions used in the December 31, 2014, valuation were based on the
results of actuarial experience studies. The experience study in TMRS was for the period
January 1, 2006 through December 31, 2009, first used in the December 31, 2010
valuation. Healthy post-retirement mortality rates and annuity purchase rates were
updated based on a Mortality Experience Investigation Study covering 2009 through
2011, and dated December 31, 2013. These assumptions were first used in the
December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN)
actuarial cost method. Assumptions are reviewed annually. No additional changes were
made for the 2014 valuation.
The long-term expected rate of return on pension plan investments is 7.0%. The pension
plan’s policy in regard to the allocation of invested assets is established and may be
amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis
with an emphasis on both capital appreciation as well as the production of income, in
order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major
asset class are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return (Arithmetic)
Domestic Equity 17.5%4.80%
International Equity 17.5%6.05%
Core Fixed Income 30.0%1.50%
Non-Core Fixed Income 10.0%3.50%
Real Return 5.0%1.75%
Real Estate 10.0%5.25%
Absolute Return 5.0%4.25%
Private Equity 5.0%8.50%
Total 100.0%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
59
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Discount Rate
The discount rate used to measure the TPL was 7.0%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be
made at the rates specified in statute. Based on that assumption, the pension plan’s
Fiduciary Net Position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the TPL.
Changes in the Net Pension Liability
TPL
(a)
Plan Fiduciary
Net Position
(b)
NPL
(a) - (b)
Balance at 12/31/2013 168,246,211$ 150,877,084$ 17,369,127$
Changes for the year:
Service cost 4,331,759 - 4,331,759
Interest 11,698,243 - 11,698,243
Change of benefit terms - - -
Difference between expected
and actual experience (752,184) - (752,184)
Changes of assumptions - - -
Contributions - employer - 4,787,533 (4,787,533)
Contributions - employee - 1,789,251 (1,789,251)
Net investment income - 8,631,343 (8,631,343)
Benefit payments, including
refunds of employee contributions (6,588,671) (6,588,671) -
Administrative expense - (90,113) 90,113
Other changes - (7,409) 7,409
Net changes 8,689,147 8,521,934 167,213
Balance at 12/31/2014 176,935,358$ 159,399,018$ 17,536,340$
Increase (Decrease)
Plan fiduciary net position as a percentage of the TPL 90.09%
Covered payroll $25,560,729
NPL as a percentage of covered payroll 68.61%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
60
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount
rate of 7.0%, as well as what the City’s net pension liability would be if it were calculated
using a discount rate that is 1-percentage-point lower (6.0%) or 1-percentage-point higher
(8.0%) than the current rate:
1% Decrease
in
Discount Rate
(6.0%)
Discount Rate
(7.0%)
1% Increase in
Discount Rate
(8.0%)
City’s net pension liability 43,651,087$ 17,536,340$ (3,839,152)$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a
separately-issued TMRS financial report. That report may be obtained on the Internet at
www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended September 30, 2015, the City recognized pension expense of
$4,025,736.
At September 30, 2015, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience -$ (615,032)$
Changes in actuarial assumptions - -
Difference between projected and
actual investment earnings 1,544,043 -
Contributions subsequent to the
measurement date 3,252,945 -
Total 4,796,988$ (615,032)$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
61
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions – Continued
Deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date in the amount of $3,252,945 have been recognized
as a reduction of the net pension liability for the year ending September 30, 2015. Other
amounts reported as deferred outflows and inflows of resources related to pensions will
be recognized in pension expense as follows:
Measurement
year ended
December 31:
2015 248,859$
2016 248,859
2017 248,859
2018 248,858
2019 (66,424)
Total 929,011$
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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
62
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
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.
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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
63
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy – Continued
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 Plan A Medical Plan B Dental Vision
Retiree Only 722.98$ 624.55$ 26.31$ 7.88$
Retiree plus Children 1,373.67 1,186.64 50.00 12.88
Retiree plus Spouse 1,662.87 1,436.46 60.52 15.30
Retiree plus Family 2,096.66 1,811.19 76.31 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
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
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
64
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy – Continued
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. Employees hired after October 1, 2014 will not
be eligible for premium discounts regardless of 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, 2014 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 through 2100 to an ultimate rate of
4.5% and an annual dental cost trend rate of 4.73% initially, declining by decrements to
an ultimate rate of 4.15%. The inflation rate of 2.5% is used for the calculation. The
unfunded actuarial accrued liability is being amortized over a thirty year open period
utilizing a level dollar amortization method.
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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
65
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Annual OPEB Cost and Net OPEB Obligation – Continued
For the year ended September 30, 2015, the City has estimated the cost of providing these
benefits through an actuarial valuation as of October 1, 2014. 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 873,931$
Interest on net OPEB obligation (6,509)
Adjustments to annual required contribution 12,007
Annual OPEB cost (expense)879,429
Contributions made (985,469)
Change in OPEB obligation (106,040)
Net OPEB obligation (asset) - beginning of year (91,445)
Net OPEB obligation (asset) - end of year (197,485)$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for fiscal year 2015 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
10/1/2012 9/30/2013 7.5%1,456,357$ 81.09%(358,773)$
10/1/2013 9/30/2014 7.5%1,103,043 75.76%(91,445)
10/1/2014 9/30/2015 7.5%874,770 112.65%(197,485)
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
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%
2014 2015 3,043,780 7.5%10,640,544 7,596,764 29%25,453,407 30%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
66
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Status and Funding Progress – Continued
As of October 1, 2014, the Plan was 71% unfunded. The value of assets was $3,043,780,
resulting in an UAAL of $7,596,764.
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, 2015, the public safety grant special revenue fund had an excess of
expenditures over appropriations of $96,673 and the police drug enforcement special revenue
fund had and excess of expenditures over appropriations of $13,310.
NOTE 12. SUBSEQUENT EVENT
The City issued $3,030,000 in Tax and Waterworks and Sewer System (Limited Pledge)
Revenue Certificates of Obligation, Series 2015 dated October 15, 2015. Payment of
principal and interest is due in annual installments through 2035. Interest rates on the debt
range from 3-5%. 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.
The City also issued $16,450,000 in Tax and Waterworks and Sewer System (Limited
Pledge) Revenue Certificates of Obligation, Series 2016 dated January 1, 2016. Payment of
principal and interest is due in annual installments through 2038. Interest rates on the debt
range from 2-4%. The proceeds from the Certificates will be used for (i) public infrastructure
including demolishing dangerous structures, streets, street improvements, water and
wastewater, drainage, curbs, gutters, sidewalks, entryways, signage, lighting, traffic
signalization and other public improvements thereto and the acquisition of land and rights-of-
way therefor, and (ii) professional services rendered in relation to such projects and the
financing thereof.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
67
NOTE 13. CHANGE IN ACCOUNTING PRINCIPLE
The City implemented GASB Statement No. 68, Accounting and Financial Reporting for
Pensions and GASB Statement No. 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date – An Amendment to GASB Statement No. 68 during the
fiscal year ended September 30, 2015. The implementation of GASB Statement No. 68
resulted in the following restatement:
Governmental
Activities
Business- type
Activities
Net position, beginning of year,
prior to restatement 123,083,378$ 72,634,943$
Cumulative effect of change
in accounting principle (9,316,062) (1,740,278)
Net position, beginning of year,
as restated 113,767,316$ 70,894,665$
Water and
Wastewater Drainage Utility Golf Course
Other
Enterprise
Funds
Net position, beginning of year,
prior to restatement 43,646,831$ 17,587,851$ 2,234,945$ 6,936,060$
Cumulative effect of change
in accounting principle (1,329,061) (130,963) (238,927) (41,327)
Net position, beginning of year,
as restated 42,317,770$ 17,456,888$ 1,996,018$ 6,894,733$
Fund Level Statements
Government-wide Statements
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
FOR THE MEASUREMENT YEAR ENDED DECEMBER 31, 2014
68
2014*
Total pension liability
Service cost 4,331,759$
Interest (on the total pension liability)11,698,243
Difference in expected and actual experience (752,184)
Benefit payments, including refunds of employee contributions (6,588,671)
Net change in total pension liability 8,689,147
Total pension liability, beginning of year 168,246,211
Total pension liability, ending of year 176,935,358$
Plan fiduciary net position
Contributions - employer 4,787,533$
Contributions - employee 1,789,251
Net investment income 8,631,343
Benefit payments, including refunds of employee contributions (6,588,671)
Administrative expense (90,113)
Other (7,409)
Net change in plan fiduciary net position 8,521,934
Plan fiduciary net position - beginning 150,877,084
Plan fiduciary net position - ending 159,399,018$
Net pension liability - ending 17,536,340$
Plan fiduciary net position as a % of total pension liability 90.09%
Covered employee payroll 25,560,729$
Net pension liability as a % of covered employee payroll 68.61%
*The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
69
2015*
Actuarially determined contributions 4,602,538$
Actual contributions (4,602,538)
Contributions deficiency (excess)-$
City covered employee payroll 25,453,407$
Ratio of actual contributions to covered payroll amount 18.73% and 18.05%
*The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
Notes to Schedule
Valuation Date
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 19 years
Asset Valuation Method 10 year smoothed market; 15% soft corridor
Inflation 3.0%
Salary Increases 3.5% to 12.0% including inflation
Investment Rate of Return 7.0%
Retirement Age
Mortality
Actuarial determined contribution rates are calculated as of
December 31st each year and become effective in January,12
months and a day later.
Experience-based table of rates that are specific to the City's
plan of benefits.Last updated for the 2010 valuation pursuant to
an experience study of the period 2005 - 2009.
RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109%and female rates
multiplied by 103%and projected on a fully generational basis
with scale BB.
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS – OPEB TRUST
SEPTEMBER 30, 2015
70
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
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%
2014 2015 3,043,780 7.5%10,640,544 7,596,764 29%25,453,407 30%
The Schedule of Funding Progress summarizes the actuarial value of the plan’s assets and
actuarial accrued liability as of October 1, 2014 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, 2014,
the plan’s funded ratio was 29%.
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
SEPTEMBER 30, 2015
71
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes 10,839,160$ 10,839,160$ 10,794,908$ (44,252)$
Penalty and interest 60,000 60,000 60,104 104
Total property tax 10,899,160 10,899,160 10,855,012 (44,148)
Gross receipts and mixed beverage tax
Telephone line access fee 317,950 317,950 294,921 (23,029)
Electric company 1,625,000 1,625,000 1,663,483 38,483
Gas company 325,000 325,000 418,057 93,057
Cable TV 645,000 645,000 787,037 142,037
City garbage service 196,200 196,200 216,644 20,444
Water and wastewater system 1,051,824 1,051,824 1,005,577 (46,247)
Others 89,000 89,000 102,162 13,162
Total gross receipts and
mixed beverage tax 4,249,974 4,249,974 4,487,881 237,907
General sales tax 11,038,642 11,038,642 11,452,731 414,089
Fines and fees
Municipal court fines 3,201,080 3,201,080 2,787,842 (413,238)
Jail income 290,000 290,000 260,535 (29,465)
Dog licenses and pound fees 3,800 3,800 2,422 (1,378)
Ambulance fees 910,000 910,000 1,039,545 129,545
Library fees 35,100 35,100 17,502 (17,598)
Zoning fees 20,000 15,000 23,044 8,044
Deferred adjudication fee 167,550 167,550 158,791 (8,759)
Total fines and fees 4,627,530 4,622,530 4,289,681 (332,849)
Licenses and permits
Building permits 590,000 590,000 905,832 315,832
Miscellaneous permits 220,200 220,200 288,688 68,488
Minimum housing 200,000 200,000 184,812 (15,188)
Total licenses and permits 1,010,200 1,010,200 1,379,332 369,132
Investment income 30,000 30,000 55,022 25,022
Intergovernmental 388,650 388,650 415,172 26,522
Other revenues
Rental income 430,458 430,458 530,287 99,829
Swimming pools 183,600 183,600 276,518 92,918
Miscellaneous income 255,750 255,750 249,561 (6,189)
Total other revenues 869,808 869,808 1,056,366 186,558
Total revenues 33,113,964 33,108,964 33,991,197 882,233
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
SEPTEMBER 30, 2015
72
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation 3,100,042$ 3,100,042$ 2,840,022$ 260,020$
Development services 704,962 704,962 669,245 35,717
General and administrative 8,167,190 8,419,745 8,393,425 26,320
Highways and streets 1,538,892 1,538,892 1,456,054 82,838
Public safety 21,895,338 21,895,338 21,270,813 624,525
Debt service 97,720 97,720 97,720 -
Capital outlay 2,773,890 2,773,890 1,405,336 1,368,554
Total expenditures 38,278,034 38,530,589 36,132,615 2,397,974
Excess (deficiency) of revenues
over (under) expenditures (5,164,070) (5,421,625) (2,141,418) 3,280,207
Other financing sources (uses)
Transfers in 2,627,331 2,627,331 2,581,788 (45,543)
Transfers out (317,834) (317,834) (241,497) 76,337
Total other financing
sources (uses), net 2,309,497 2,309,497 2,340,291 30,794
Net change in fund balance (2,854,573) (3,112,128) 198,873 3,311,001
Fund balance,
beginning of year 10,850,457 10,850,457 10,850,457 -
Fund balance, end of year 7,995,884$ 7,738,329$ 11,049,330$ 3,311,001$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL SPECIAL REVENUE FUND
SEPTEMBER 30, 2015
73
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax 13,864,560$ 13,864,560$ 14,112,552$ 247,992$
Investment income 15,000 15,000 25,747 10,747
Total revenues 13,879,560 13,879,560 14,138,299 258,739
Expenditures
General and administrative 9,243,040 9,420,386 9,594,864 (174,478)
Capital outlay 2,780,320 2,780,320 - 2,780,320
Total expenditures 12,023,360 12,200,706 9,594,864 2,605,842
Excess of revenues over
expenditures 1,856,200 1,678,854 4,543,435 2,864,581
Other financing uses
Transfers out (4,970,703) (5,006,172) (4,970,703) 35,469
Total other
financing uses (4,970,703) (5,006,172) (4,970,703) 35,469
Net change in fund balance (3,114,503) (3,327,318) (427,268) 2,900,050
Fund balance, beginning of year 5,392,591 5,392,591 5,392,591 -
Fund balance, end of year 2,278,088$ 2,065,273$ 4,965,323$ 2,900,050$
Budgeted Amounts
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
74
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
75
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
department 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 district.
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.
76
NON-MAJOR GOVERNMENTAL FUNDS – Continued
CAPITAL PROJECTS
Half-Penny Sales Tax CIP 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 CIP Fund – to account for the construction of a police facility.
General CIP Fund – to account for various general construction projects within the City.
Redevelopment CIP Fund – to account for land acquisition and revitalization projects
designed to enhance development and promote redevelopment throughout the
community.
Car Rental 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, 2015
77
Police Crime
Drug Control and Public Police
Hotel/Half-Penny Enforce-Prevention Safety Seized Juvenile Glade Parks
Motel Sales Tax ment District Grant Assets Case PID
Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Deposits and investments 181,575$ 2,806,634$ 482,416$ 669,332$ -$ 683,202$ 198,299$ 750,000$
Accounts receivable 158,841 - - - 108,351 - 5,615 -
Accrued interest receivable - 548 - - - - - -
Due from other governments - 894,839 - 432,698 - - - -
Prepaids - 7,649 - 7,750 - - - -
Total assets 340,416$ 3,709,670$ 482,416$ 1,109,780$ 108,351$ 683,202$ 203,914$ 750,000$
LIABILITIES
Liabilities
Accounts payable -$ 236,896$ -$ 15,495$ 94,155$ -$ 4,590$ -$
Accrued salaries and wages - 69,023 - 70,319 3,880 7,549 2,953 -
Unearned revenue 55,841 - - - - - -
Total liabilities 55,841 305,919 - 85,814 98,035 7,549 7,543 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - - - 5,615 -
Total deferred inflows of resources - - - - - - 5,615 -
FUND BALANCES
Fund Balances
Nonspendable - 7,649 - 7,750 - - - -
Restricted, debt service - 914,140 - - - - - 750,000
Restricted, historical preservation 1,245 - - - - - - -
Restricted, juvenile case management - - - - - - 190,756 -
Restricted, PEG fees - - - - - - - -
Restricted, developer agreements - - - - - - - -
Assigned 283,330 2,481,962 482,416 1,016,216 10,316 675,653 - -
Total fund balances 284,575 3,403,751 482,416 1,023,966 10,316 675,653 190,756 750,000
Total liabilities, deferred inflows of
resources, and fund balances 340,416$ 3,709,670$ 482,416$ 1,109,780$ 108,351$ 683,202$ 203,914$ 750,000$
Special Revenue Funds
78
Cable Special Half-Penny Car Capital Total
TIRZ #3 PEG Revenue Sales Tax Developers'Police General Redevelopment Rental Project Non-major
Glade Parks Fees Funds CIP Contribution CIP CIP CIP CIP Funds Governmental
Fund Fund Total Fund Fund Fund Fund Fund Fund Totals Funds
13,343$ 379,067$ 6,163,868$ 896,414$ 1,855,430$ 454$ 1,028,360$ 202,286$ 1,592,882$ 5,575,826$ 11,739,694$
16,927 38,000 327,734 - - - 27,322 - - 27,322 355,056
- - 548 - 1,625 - - - 292 1,917 2,465
- - 1,327,537 - - - - - - - 1,327,537
- - 15,399 - - - - - - - 15,399
30,270$ 417,067$ 7,835,086$ 896,414$ 1,857,055$ 454$ 1,055,682$ 202,286$ 1,593,174$ 5,605,065$ 13,440,151$
-$ 10,182$ 361,318$ 1,342$ -$ -$ -$ 18,569$ 2,042$ 21,953$ 383,271$
- - 153,724 - - - - - - - 153,724
- - 55,841 - - - - - - - 55,841
- 10,182 570,883 1,342 - - - 18,569 2,042 21,953 592,836
- - 5,615 - - - - - - - 5,615
- - 5,615 - - - - - - - 5,615
- - 15,399 - - - - - - - 15,399
- - 1,664,140 - - - - - - - 1,664,140
- - 1,245 - - - - - - - 1,245
- - 190,756 - - - - - - - 190,756
- 406,885 406,885 - - - - - - - 406,885
- - - - 1,857,055 - - - - 1,857,055 1,857,055
30,270 - 4,980,163 895,072 - 454 1,055,682 183,717 1,591,132 3,726,057 8,706,220
30,270 406,885 7,258,588 895,072 1,857,055 454 1,055,682 183,717 1,591,132 5,583,112 12,841,700
30,270$ 417,067$ 7,835,086$ 896,414$ 1,857,055$ 454$ 1,055,682$ 202,286$ 1,593,174$ 5,605,065$ 13,440,151$
Special Revenue Funds 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, 2015
79
Police Crime
Drug Control and Public Police
Hotel/Half-Penny Enforce-Prevention Safety Seized Juvenile Glade Parks
Motel Sales Tax ment District Grant Asset Case PID
Fund Fund Fund Fund Fund Fund Fund Fund
Revenues
General property tax -$ -$ -$ -$ -$ -$ -$ -$
Gross receipts tax 391,991 - - - - - - -
General sales tax - 4,595,916 - 2,274,012 - - - -
Investment income 105 13,731 118 245 - 510 91 5
DEA revenues - - 39,292 - - - - -
Intergovernmental - - 229,435 - - - -
Rents and royalties - - - - - - - -
Other revenues 4 - - - 193,102 - 103,053 93,258
Total revenues 392,100 4,609,647 268,845 2,274,257 193,102 510 103,144 93,263
Expenditures
Culture and recreation - 2,794,959 - - - - - -
Development services - 212,967 - - - - - -
General and administrative 9,104 230,658 - - - - 77,210 -
Public safety - - - 1,936,467 146,071 164,309 - -
Debt service
Principal - 890,000 - - - - -
Interest and fiscal charges - 17,103 - - - - - -
Capital outlay 47,810 50,992 14,310 - 114,547 - - -
Total expenditures 56,914 4,196,679 14,310 1,936,467 260,618 164,309 77,210 -
Excess (deficiency) of revenues
over (under) expenditures 335,186 412,968 254,535 337,790 (67,516) (163,799) 25,934 93,263
Other financing sources (uses)
Transfers in - - - - 2,325 - - -
Transfers out (304,407) (234,629) - - - - - -
Total other
financing sources (uses)(304,407) (234,629) - - 2,325 - - -
Net change in fund balances 30,779 178,339 254,535 337,790 (65,191) (163,799) 25,934 93,263
Fund balance,
beginning of year 253,796 3,225,412 227,881 686,176 75,507 839,452 164,822 656,737
Fund balance, end of year 284,575$ 3,403,751$ 482,416$ 1,023,966$ 10,316$ 675,653$ 190,756$ 750,000$
Special Revenue Funds
80
Cable Special Half-Penny Car Capital Total
TIRZ #3 PEG Revenue Sales Tax Developers'Police General Redevelopment Rental Project Non-major
Glade Parks Fees Funds CIP Contribution CIP CIP CIP CIP Funds Governmental
Fund Fund Totals Fund Fund Fund Fund Fund Fund Totals Funds
368,275$ -$ 368,275$ -$ -$ -$ -$ -$ -$ -$ 368,275$
- 153,007 544,998 - - - - - - - 544,998
37,058 - 6,906,986 - - - - - - - 6,906,986
3 183 14,991 573 3,763 2 560 163 2,898 7,959 22,950
- - 39,292 - - - - - - - 39,292
- - 229,435 - - - - - - - 229,435
- - - - - - 112,196 - - 112,196 112,196
- - 389,417 - 334,781 - - - - 334,781 724,198
405,336 153,190 8,493,394 573 338,544 2 112,756 163 2,898 454,936 8,948,330
- - 2,794,959 69,539 - - - - - 69,539 2,864,498
- - 212,967 - - - - - - - 212,967
- 20,117 337,089 - - - - 17,202 14,848 32,050 369,139
- - 2,246,847 - - 3,620 - - - 3,620 2,250,467
- - 890,000 - - - - - - - 890,000
- - 17,103 - - - - - - - 17,103
- 131,345 359,004 73,195 - - 266,981 149,004 489,180 848,184
- 151,462 6,857,969 142,734 - 3,620 - 284,183 163,852 594,389 7,452,358
405,336 1,728 1,635,425 (142,161) 338,544 (3,618) 112,756 (284,020) (160,954) (139,453) 1,495,972
- - 2,325 50,000 - - - 400,000 1,271,895 1,721,895 1,724,220
(385,668) - (924,704) - - - - - - - (924,704)
(385,668) - (922,379) 50,000 - - - 400,000 1,271,895 1,721,895 799,516
19,668 1,728 713,046 (92,161) 338,544 (3,618) 112,756 115,980 1,110,941 1,582,442 2,295,488
10,602 405,157 6,545,542 987,233 1,518,511 4,072 942,926 67,737 480,191 4,000,670 10,546,212
30,270$ 406,885$ 7,258,588$ 895,072$ 1,857,055$ 454$ 1,055,682$ 183,717$ 1,591,132$ 5,583,112$ 12,841,700$
Special Revenue Funds 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, 2015
81
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 315,000$ 315,000$ 391,991$ 76,991$
Investment income 50 50 105 55
Other revenues - - 4 4
Total revenues 315,050 315,050 392,100 77,050
Expenditures
General and administrative - - 9,104 (9,104)
Capital outlay 68,398 68,398 47,810 20,588
Total expenditures 68,398 68,398 56,914 11,484
Other financing uses
Transfers out (304,407) (304,407) (304,407) -
Total other financing uses (304,407) (304,407) (304,407) -
Net change in fund balance (57,755) (57,755) 30,779 88,534
Fund balance, beginning of year 253,796 253,796 253,796 -
Fund balance, end of year 196,041$ 196,041$ 284,575$ 88,534$
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, 2015
82
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 4,434,018$ 4,434,018$ 4,595,916$ 161,898$
Investment income 10,020 10,020 13,731 3,711
Total revenues 4,444,038 4,444,038 4,609,647 165,609
Expenditures
Culture and recreation 2,920,572 2,920,572 2,794,959 125,613
Development services 281,137 281,137 212,967 68,170
General and administrative 278,372 278,372 230,658 47,714
Debt service
Principal 890,000 890,000 890,000 -
Interest and fiscal charges 17,103 17,103 17,103 -
Capital outlay 843,316 843,316 50,992 792,324
Total expenditures 5,230,500 5,230,500 4,196,679 1,033,821
Excess (deficiency) of revenues
over (under) expenditures (786,462) (786,462) 412,968 1,199,430
Other financing uses
Transfers out (265,065) (265,065) (234,629) 30,436
Total other
financing uses (265,065) (265,065) (234,629) 30,436
Net change in fund balance (1,051,527) (1,051,527) 178,339 1,229,866
Fund balance, beginning of year 3,225,412 3,225,412 3,225,412 -
Fund balance, end of year 2,173,885$ 2,173,885$ 3,403,751$ 1,229,866$
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, 2015
83
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 1,000$ 1,000$ 118$ (882)$
Intergovernmental - - 229,435 229,435
DEA revenues - - 39,292 39,292
Total revenues 1,000 1,000 268,845 267,845
Expenditures
Public safety 1,000 1,000 14,310 (13,310)
Total expenditures 1,000 1,000 14,310 (13,310)
Net change in fund balance - - 254,535 254,535
Fund balance, beginning of year 227,881 227,881 227,881 -
Fund balance, end of year 227,881$ 227,881$ 482,416$ 254,535$
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, 2015
84
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 2,183,194$ 2,183,194$ 2,274,012$ 90,818$
Investment income 100 100 245 145
Total revenues 2,183,294 2,183,294 2,274,257 90,963
Expenditures
Public safety 2,323,334 2,323,334 1,936,467 386,867
Total expenditures 2,323,334 2,323,334 1,936,467 386,867
Net change in fund balance (140,040) (140,040) 337,790 477,830
Fund balance, beginning of year 686,176 686,176 686,176 -
Fund balance, end of year 546,136$ 546,136$ 1,023,966$ 477,830$
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, 2015
85
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 70,000$ 70,000$ 193,102$ 123,102$
Total revenues 70,000 70,000 193,102 123,102
Expenditures
Public safety 145,212 145,212 146,071 (859)
Capital outlay 18,733 18,733 114,547 (95,814)
Total expenditures 163,945 163,945 260,618 (96,673)
Other financing sources
Transfers in 76,439 76,439 2,325 (74,114)
Total other financing sources 76,439 76,439 2,325 (74,114)
Net change in fund balance (17,506) (17,506) (65,191) (47,685)
Fund balance, beginning of year 75,507 75,507 75,507 -
Fund balance, end of year 58,001$ 58,001$ 10,316$ (47,685)$
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, 2015
86
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income -$ -$ 510$ 510$
Total revenues - - 510 510
Expenditures
Public safety 309,228 309,228 164,309 144,919
Total expenditures 309,228 309,228 164,309 144,919
Net change in fund balance (309,228) (309,228) (163,799) 145,429
Fund balance, beginning of year 839,452 839,452 839,452 -
Fund balance, end of year 530,224$ 530,224$ 675,653$ 145,429$
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, 2015
87
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 30$ 30$ 91$ 61$
Other revenues 115,000 115,000 103,053 (11,947)
Total revenues 115,030 115,030 103,144 (11,886)
Expenditures
General and administrative 84,927 84,927 77,210 7,717
Total expenditures 84,927 84,927 77,210 7,717
Net change in fund balance 30,103 30,103 25,934 (4,169)
Fund balance, beginning of year 164,822 164,822 164,822 -
Fund balance, end of year 194,925$ 194,925$ 190,756$ (4,169)$
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, 2015
88
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income -$ -$ 5$ 5$
Other revenues 93,263 93,263 93,258 (5)
Total revenues 93,263 93,263 93,263 -
Other financing uses
Transfers out (31,381) (31,381) - 31,381
Total other financing uses (31,381) (31,381) - 31,381
Net change in fund balance 61,882 61,882 93,263 31,381
Fund balance, beginning of year 656,737 656,737 656,737 -
Fund balance, end of year 718,619$ 718,619$ 750,000$ 31,381$
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, 2015
89
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax 368,276$ 368,276$ 368,275$ (1)$
General sales tax 23,989 23,989 37,058 13,069
Investment income - - 3 3
Total revenues 392,265 392,265 405,336 13,071
Other financing uses
Transfers out (392,265) (392,265) (385,668) 6,597
Total other
financing uses (392,265) (392,265) (385,668) 6,597
Net change in fund balance - - 19,668 19,668
Fund balance, beginning of year 10,602 10,602 10,602 -
Fund balance, end of year 10,602$ 10,602$ 30,270$ 19,668$
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, 2015
90
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 120,000$ 120,000$ 153,007$ 33,007$
Investment income - - 183 183
Total revenues 120,000 120,000 153,190 33,190
Expenditures
General and administrative 30,000 30,000 20,117 9,883
Capital outlay 140,000 140,000 131,345 8,655
Total expenditures 170,000 170,000 151,462 18,538
Net change in fund balance (50,000) (50,000) 1,728 51,728
Fund balance, beginning of year 405,157 405,157 405,157 -
Fund balance, end of year 355,157$ 355,157$ 406,885$ 51,728$
Budgeted Amounts
91
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, 2015
(1 of 2)
92
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
ASSETS
Current assets
Deposits and investments 335,194$ 1,828,644$ 16,435$ 2,180,273$
Accounts receivable and
unbilled revenue 2,595 13,944 - 16,539
Interest receivable - 1,025 - 1,025
Prepaids and deposits 3,500 18,167 - 21,667
Inventory - 89,615 - 89,615
Total current assets 341,289 1,951,395 16,435 2,309,119
Non-current assets
Net OPEB asset 555 3,487 - 4,042
Total non-current assets 555 3,487 - 4,042
Property, plant, and equipment, at cost
Land - 584,532 - 584,532
Building - 488,275 - 488,275
Equipment 88,811 116,998 - 205,809
Improvements - 8,150,654 - 8,150,654
Total property, plant, and equipment 88,811 9,340,459 - 9,429,270
Less accumulated depreciation 73,313 4,638,406 - 4,711,719
Net property, plant, and equipment 15,498 4,702,053 - 4,717,551
Total non-current assets 16,053 4,705,540 - 4,721,593
Total assets 357,342 6,656,935 16,435 7,030,712
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions - 19,188 - 19,188
Deferred charges on refunding - 6,645 - 6,645
Total deferred outflows of resources - 25,833 - 25,833
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2015
(2 of 2)
93
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable 11,177$ 28,993$ - $ 40,170$
Accrued salaries and wages 4,448 23,592 - 28,040
Current portion of bonds payable - 160,000 - 160,000
Accrued interest - 800 - 800
Total current liabilities 15,625 213,385 - 229,010
Non-current liabilities
Net pension liability - 66,638 - 66,638
Bonds payable - 7,924 - 7,924
Total non-current liabilities - 74,562 - 74,562
Total liabilities 15,625 287,947 - 303,572
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions - 2,460 - 2,460
Total deferred inflows of resources - 2,460 - 2,460
NET POSITION
Net investment in capital assets 15,498 4,534,129 - 4,549,627
Unrestricted 326,219 1,858,232 16,435 2,200,886
Total net position 341,717$ 6,392,361$ 16,435$ 6,750,513$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2015
94
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
Operating revenues
Recreation fees 584,858$ -$ -$ 584,858$
Service fees and miscellaneous - 1,215,468 48,108 1,263,576
Total operating revenues 584,858 1,215,468 48,108 1,848,434
Operating expenses
Recreation classes 568,022 - - 568,022
Texas Star Sports Complex - 1,066,558 - 1,066,558
Arbor Daze - - 58,771 58,771
Depreciation 4,558 295,772 - 300,330
Amortization - (1,279) - (1,279)
Total operating expenses 572,580 1,361,051 58,771 1,992,402
Operating income (loss)12,278 (145,583) (10,663) (143,968)
Nonoperating revenues (expenses)
Gain on sale of capital asset 5,435 - - 5,435
Investment income 162 2,801 - 2,963
Interest expense - (8,650) - (8,650)
Total nonoperating revenues
(expenses), net 5,597 (5,849) - (252)
Change in net position 17,875 (151,432) (10,663) (144,220)
Net position, beginning, as restated 323,842 6,543,793 27,098 6,894,733
Net position, end of year 341,717$ 6,392,361$ 16,435$ 6,750,513$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2015
95
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers 582,346$ 1,231,113$ 48,108$ 1,861,567$
Cash payments to suppliers for goods and services (360,456) (850,667) (58,771) (1,269,894)
Cash payments to employees for services (206,737) (251,141) - (457,878)
Net cash provided by (used in) operating activities 15,153 129,305 (10,663) 133,795
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds - (9,400) - (9,400)
Reduction in bonds payable - (150,000) - (150,000)
Proceeds from sale of capital assets 5,434 - - 5,434
Net cash provided by (used in) capital
and related financing activities 5,434 (159,400) - (153,966)
INVESTING ACTIVITIES
Interest received on investments 162 1,776 - 1,938
Net cash provided by investing activities 162 1,776 - 1,938
Net change in cash and
and cash equivalents 20,749 (28,319) (10,663) (18,233)
Cash and cash equivalents, beginning of year 314,445 1,856,963 27,098 2,198,506
Cash and cash equivalents, end of year 335,194$ 1,828,644$ 16,435$ 2,180,273$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities
Operating income (loss)12,278$ (145,583)$ (10,663)$ (143,968)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities
Depreciation and amortization 4,558 294,493 - 299,051
Changes in assets and liabilities
Accounts receivable and unbilled revenue (2,512) 13,185 - 10,673
Prepaids and deposits (3,115) (3,841) - (6,956)
Inventory 110 (13,962) - (13,852)
Net OPEB asset - (438) - (438)
Net pension liability - 635 - 635
Deferred outflows - (5,436) - (5,436)
Deferred inflows - 2,460 - 2,460
Accounts payable 1,365 (14,099) - (12,734)
Accrued salaries and wages 2,469 1,891 - 4,360
Net cash provided by (used in) operating activities 15,153$ 129,305$ (10,663)$ 133,795$
96
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, 2015
97
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Deposits and investments 2,956,102$ 3,723,219$ 2,075,868$ 8,755,189$
Accounts receivable - 111,715 - 111,715
Accrued interest receivable 885 3,065 834 4,784
Total current assets 2,956,987 3,837,999 2,076,702 8,871,688
Property, plant, and equipment, at cost
Equipment 10,240,850 - 70,214 10,311,064
Less accumulated depreciation 7,117,458 - 20,042 7,137,500
Net property, plant, and equipment 3,123,392 - 50,172 3,173,564
Total assets 6,080,379 3,837,999 2,126,874 12,045,252
Accounts payable - 8,370 365,123 373,493
Accrued salary and wages - - 4,057 4,057
Accrued insurance claims - 507,500 328,745 836,245
Total liabilities - 515,870 697,925 1,213,795
Net investment in capital assets 3,123,392 - 50,172 3,173,564
Unrestricted 2,956,987 3,322,129 1,378,777 7,657,893
Total net position 6,080,379$ 3,322,129$ 1,428,949$ 10,831,457$
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, 2015
98
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Operating revenues
Insurance premiums -$ 5,780,899$ 352,331$ 6,133,230$
Service fees and miscellaneous 1,028,300 20,293 - 1,048,593
Total operating revenues 1,028,300 5,801,192 352,331 7,181,823
Operating expenses
General and administrative 127,952 954,023 98,745 1,180,720
Insurance costs - 4,404,071 737,495 5,141,566
Depreciation 970,842 - 6,397 977,239
Total operating expenses 1,098,794 5,358,094 842,637 7,299,525
Operating income (loss)(70,494) 443,098 (490,306) (117,702)
Nonoperating revenues
Gain on sale of capital assets 90,583 - - 90,583
Investment income 4,792 12,769 4,364 21,925
Total nonoperating revenues 95,375 12,769 4,364 112,508
Income (loss) before transfers 24,881 455,867 (485,942) (5,194)
Transfers
Transfers in 671,817 350,000 450,000 1,471,817
Change in net position 696,698 805,867 (35,942) 1,466,623
Net position, beginning of year 5,383,681 2,516,262 1,464,891 9,364,834
Net position, end of year 6,080,379$ 3,322,129$ 1,428,949$ 10,831,457$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2015
99
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers 1,243,900$ 5,792,058$ 352,331$ 7,388,289$
Cash payments to suppliers for goods and services (516,973) (5,332,488) (712,863) (6,562,324)
Cash payments to employees for services - (3,219) (49,163) (52,382)
Net cash provided by (used in) operating activities 726,927 456,351 (409,695) 773,583
NONCAPITAL FINANCING ACTIVITIES
Transfers in 671,817 350,000 450,000 1,471,817
Net cash provided by noncapital financing activities 671,817 350,000 450,000 1,471,817
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (1,107,294) - - (1,107,294)
Proceeds from sale of capital assets 98,601 - - 98,601
Net cash used in capital and related financing activities (1,008,693) - - (1,008,693)
INVESTING ACTIVITIES
Interest received on investments 4,203 16,137 3,841 24,181
Net cash provided by investing activities 4,203 16,137 3,841 24,181
Net increase (decrease) in cash and cash equivalents 394,254 822,488 44,146 1,260,888
Cash and cash equivalents, beginning of year 2,561,848 2,900,731 2,031,722 7,494,301
Cash and cash equivalents, end of year 2,956,102$ 3,723,219$ 2,075,868$ 8,755,189$
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)(70,494)$ 443,098$ (490,306)$ (117,702)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation expense 970,842 - 6,397 977,239
Change in assets and liabilities
Receivables 215,600 (9,134) - 206,466
Prepaids - - - -
Accounts payable (389,021) 4,974 (4,885) (388,932)
Accrued salaries and wages - (2,188) (80) (2,268)
Accrued insurance claims - 19,601 79,179 98,780
Net cash provided by (used in) operating activities 726,927$ 456,351$ (409,695)$ 773,583$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ESCROW AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2015
100
Balance Balance
October 1, September 30,
2014 Additions Deductions 2015
Stars Center Escrow Fund
Assets
Investments at fair value 1,420,666$ 735$ (592)$ 1,420,809$
Total assets 1,420,666$ 735$ (592)$ 1,420,809$
Liabilities
Due to other entities 1,420,547$ -$ -$ 1,420,547$
Refunds payable 119 261 (118) 262
Total liabilities 1,420,666$ 261$ (118)$ 1,420,809$
Glade Parks III Escrow Fund
Assets
Investments at fair value 2,148,648$ 290$ (2,148,938)$ -$
Total assets 2,148,648$ 290$ (2,148,938)$ -$
Liabilities
Due to other entities 2,148,648$ 290$ (2,148,938)$ -$
Total liabilities 2,148,648$ 290$ (2,148,938)$ -$
Glade Parks IV Escrow Fund
Assets
Investments at fair value 1,439,788$ 140,003$ (1,579,791)$ -$
Total assets 1,439,788$ 140,003$ (1,579,791)$ -$
Liabilities
Due to other entities 1,439,788$ 140,003$ (1,579,791)$ -$
Total liabilities 1,439,788$ 140,003$ (1,579,791)$ -$
Total Agency Funds
Assets
Investments at fair value 5,009,102$ 141,028$ (3,729,321)$ 1,420,809$
Total assets 5,009,102$ 141,028$ (3,729,321)$ 1,420,809$
Liabilities
Due to other entities 5,008,983$ 140,293$ (3,728,729)$ 1,420,547$
Refunds payable 119 261 (118) 262
Total liabilities 5,009,102$ 140,554$ (3,728,847)$ 1,420,809$
THIS PAGE INTENTIONALLY LEFT BLANK
STATISTICAL SECTION
(Unaudited)
101
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
102
Fiscal Year
2006 2007 2008 2009 2010*2011 2012 2013 2014 2015
Governmental activities
Net investment in capital assets 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$ 99,539,958$
Restricted 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 5,666,450
Unrestricted 25,497,497 27,104,410 31,041,434 29,885,070 24,933,443 31,448,528 27,192,202 24,910,579 23,921,367 17,302,574
Total governmental activities net position 76,829,456$ 87,081,950$ 93,655,202$ 97,972,650$ 100,124,897$ 104,318,579$ 109,447,971$ 117,277,635$ 123,083,358$ 122,508,982$
Business-type activities
Net investment in capital assets 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$ 55,396,268$
Restricted for debt service - - - 3,963,919 438,340 438,948 309,595 314,171 317,758 733,562
Restricted for capital projects - - - - - - - - 232,300 1,183,350
Restricted for impact fees and debt service - - - - 2,999,156 2,649,336 2,401,217 2,740,656 1,876,393 1,966,315
Unrestricted 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 12,554,695
Total business-type activities net position 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$ 71,834,190$
Primary government
Net investment in capital assets 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$ 154,936,226$
Restricted 1,448,741 1,725,998 1,813,871 5,809,906 4,813,446 4,907,241 7,137,631 7,193,601 7,425,536 9,549,677
Unrestricted 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 29,857,269
Total primary government net position 144,207,383$ 153,690,618$ 162,711,090$ 168,485,769$ 170,868,337$ *177,487,673$ 182,064,889$ 190,817,473$ 195,718,321$ 194,343,172$
Source: Comprehensive Annual Financial Reports
* Recalculated
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION – LAST TEN FISCAL YEARS
(Accrual Basis of Accounting – Unaudited)
Table 2
103
Fiscal Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Expenses
Governmental activities:
Culture and recreation 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$ 6,468,332$
Development services 1,169,285 1,487,102 1,420,477 1,707,421 1,692,845 1,707,148 972,770 1,155,089 1,367,005 877,713
General and administrative 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 19,949,733
Highways and streets 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 3,374,422
Public safety 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 23,807,143
Interest on long-term debt 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 1,136,786
Total governmental activities expenses 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 55,614,129
Business-type activities:
Water and wastewater 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 19,970,346
Drainage utility 884,763 1,059,272 932,771 947,869 1,107,206 1,177,938 1,283,617 1,245,838 1,373,036 1,319,999
Golf 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 4,155,834
Other recreation enterprises 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 2,009,582
Total business-type activities expenses 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 27,455,761
Total primary government expenses 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 83,069,890
Program Revenues
Governmental activities:
Fees, fines, and charges for services
Culture and recreation 92,837 83,084 65,349 67,283 66,368 69,950 65,912 297,361 304,283 317,024
Development services 841,033 833,822 688,348 783,955 751,323 779,939 1,263,477 1,186,347 1,321,040 1,409,703
General and administrative 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 1,342,091
Highways and streets 6,300 (8,026) 722,334 11,008 - - 54,622 112,736 218,012 93,258
Public safety 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 3,452,086
Operating grants and contributions 592,231 411,857 486,862 487,059 511,093 469,404 481,655 2,978,933 633,080 597,437
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 3,228,945
Total governmental activities program revenues 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 10,440,544
Business-type activities:
Charges for services
Water and wastewater 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 20,593,262
Drainage utility 658,231 701,476 661,725 689,889 691,800 694,751 705,474 708,984 712,971 716,595
Golf 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 4,168,578
Other recreation enterprises 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 1,848,434
Operating grants and contributions - - - - - - - - - -
Capital grants and contributions 312,835.00 1,012,919 2,183,600 1,705,746 26,400 772,714 368,882 1,847,097 2,037,263 1,746,638
Total business-type activities program revenues 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 29,073,507
Total primary government program revenues 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 39,514,051
(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
104
Net (Expense) Revenue
Governmental activities (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)$ (45,173,585)$
Business-type activities 316,910 (1,930,497) 446,244 1,271,476 786,406 3,406,339 77,701 1,534,196 (143,162) 1,617,746
Total primary government net expense (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) (43,555,839)
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes, levied for general purposes 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 14,358,074
Sales taxes 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 18,359,717
Car rental taxes 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 14,112,552
Mixed beverage taxes 85,659 87,400 84,653 76,433 71,653 66,383 54,138 60,823 69,160 84,533
Hotel/motel occupancy taxes 216,591 240,457 234,780 185,417 237,429 272,809 292,931 329,368 343,312 391,991
Gross receipts taxes 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 4,556,355
Investment income 1,611,815 2,031,580 1,727,542 863,225 292,761 168,929 132,607 106,521 70,374 127,367
Contributions from property owners - - - - - - - - - -
Rents and royalties - - - - - - 397,527 1,481,305 1,390,283 1,166,832
Gain/(loss) on disposal of assets 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 35,128
Transfers 709,969 617,418 (1,012,140) 90,303 647,463 904,867 690,629 692,951 531,974 722,702
Total governmental activities 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 53,915,251
Business-type activities:Investment income 771,888 1,023,865 726,385 254,071 87,799 66,161 60,752 40,045 34,063 40,282 Contributions from property owners 271,707 253,786 252,045 - - - - - - -
Gain/(loss) on disposal of assets - 277,004 - - 3,579 (141,979) - 41,630 - 4,199 Miscellaneous 2,908,437 224,001 10,406 21,987 - - - - - -
Transfers (709,969) (617,418) 1,012,140 (90,303) (647,463) (904,867) (690,629) (692,951) (531,974) (722,702)
Total business-type activities 3,242,063 1,161,238 2,000,976 185,755 (556,085) (980,685) (629,877) (611,276) (497,911) (678,221)
Total primary government 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 53,237,030
Change in Net Position
Governmental activities 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 8,741,666
Business-type activities 3,558,973 (769,259) 2,447,220 1,457,231 230,321 2,425,654 (552,176) 922,920 (641,073) 939,525
Total primary government 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$ 9,681,191$
(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
105
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Fund
Reserved for other 310,956$ 392,950$ 362,018$ 354,882$ 492,776$ -$ -$ -$ -$ -$
Nonspendable - - - - - 19,344 28,796 49,262 48,072 47,834
Restricted - - - - - 311,076 258,765 124,312 120,093 109,618
Assigned - - - - - 103,423 111,096 121,542 121,334 116,336
Unreserved/Unassigned 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 10,775,542
Total general fund 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$ 11,049,330$
All Other Governmental Funds
Reserved for:
Debt service 1,587,754$ 1,893,893$ 1,967,502$ 1,987,783$ 1,622,584$ -$ -$ -$ -$ -$
Development Agreements 1,535,647 1,598,658 1,671,038 1,553,876 1,454,496 - - - - -
Other 1,245 1,245 1,245 1,245 7,677 - - - - -
Unreserved, reported in:
Special revenue funds 7,643,232 11,330,717 5,741,072 6,020,996 7,780,378 - - - - -
Capital funds 7,482,417 4,627,428 10,940,619 10,918,516 5,792,872 - - - - -
Nonspendable - - - - - 5,665 5,803 9,464 34,704 15,399
Restricted for:
Debt service - - - - - 1,818,957 1,867,971 1,776,644 2,377,710 2,477,981
Capital projects - - - - - 2,168,956 606,505 365,641 398,756 594,211
Other - - - - - 87,972 1,694,821 1,872,178 2,089,735 2,455,941
Assigned - - - - - 14,855,820 15,802,863 13,504,412 12,692,185 13,765,385
Total all other governmental funds 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$ 19,308,917$
Source: Comprehensive Annual Financial Reports
Note: 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
106
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenues:
General property tax 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$ 14,351,598$
Gross receipts tax 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 5,032,879
General sales tax 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 18,359,717
Car rental tax 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 14,112,552
Fines and fees 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 4,289,681
Licenses and permits 806,476 804,404 752,421 783,955 719,918 744,978 1,233,465 1,152,875 1,286,753 1,379,332
Investment income 1,468,812 1,784,492 1,512,898 742,444 253,302 143,564 107,195 92,118 57,880 105,443
DEA revenues 77,461 5,360 26,580 14,883 15,350 6,589 12,488 3,571 15,316 39,292
Intergovernmental 315,487 334,979 353,567 379,503 376,512 377,660 1,012,673 2,839,545 461,484 906,695
Rents and royalties - - - - 1,620,210 1,233,686 1,111,873 1,024,021 1,390,283 637,196
Other revenues 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 1,795,395
Total Revenues 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 61,009,780
Expenditures:
Culture and recreation 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 5,704,520
Development services 1,117,614 1,461,222 1,232,277 1,355,105 1,251,706 1,340,898 688,296 806,275 1,017,903 882,212
General and administrative 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 18,357,428
Highways and streets 656,964 693,711 943,171 861,885 610,996 713,742 861,748 1,144,223 1,351,404 1,606,372
Public safety 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 23,521,280
Debt Service:
Principal 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 4,284,197
Interest and fiscal charges 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 1,243,589
Issuance costs 97,810 5,946 - - 95,000 178,229 184,966 26,064 - -
Capital outlay 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 9,086,345
Total expenditures 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 64,685,943
Excess (deficiency) of revenues
over (under) expenditures (188,380) 2,785,910 (162,799) (778,469) (3,379,711) (1,974,627) (2,462,988) (3,805,368) 867,230 (3,676,163)
Other Financing Sources (Uses):
Proceeds from capital lease - - - - - 494,322 - 1,446,603 - -
Proceeds from issuance of debt 6,710,000 - - - 8,110,000 9,610,000 9,740,000 1,160,000 - 11,400,000
Payment of escrow for refunding (6,879,482) - - - (8,443,763) (6,804,790) (5,381,310) (1,190,252) - (6,074,450)
Bond premium - - - - - 390,694 260,435 79,046 - 789,428
Bond discount - - - - (94,828) - - - - -
Transfers in 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 5,897,789
Transfers out (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) (6,421,904)
Total other financing sources (1,174,516) 102,418 (1,237,140) (134,697) (474,097) 4,370,093 5,084,754 1,934,683 157,304 5,590,863
Net change in fund balances (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$ 1,914,700$
Debt service as a percentage
of noncapital expenditures 13.2%12.3%11.4%11.4%11.9%11.6%18.5%10.1%12.1%9.9%
Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY – LAST TEN FISCAL YEARS
(Unaudited)
Table 5
107
Total
Total Less:Total Taxable Direct
Fiscal Real Personal Market Tax-Exempt Assessed Tax
Year Property Property Value Property Value Rate
2006 2,190,313,348 375,328,844 2,565,642,192 312,107,619 2,253,534,573 0.491777
2007 2,324,055,440 424,995,712 2,749,051,152 308,569,035 2,440,482,117 0.489500
2008 2,438,826,320 464,735,670 2,903,561,990 320,650,590 2,582,911,400 0.470000
2009 2,477,673,867 508,213,527 2,985,887,394 325,886,654 2,660,000,740 0.470000
2010 2,470,282,654 449,954,489 2,920,237,143 330,392,987 2,589,844,156 0.470000
2011 2,473,997,250 390,731,885 2,864,729,135 341,730,427 2,522,998,708 0.470000
2012 2,610,172,289 389,778,962 2,999,951,251 348,227,246 2,651,724,005 0.470000
2013 2,661,959,213 445,909,463 3,107,868,676 351,726,906 2,756,141,770 0.470000
2014 2,759,268,619 461,065,240 3,220,333,859 356,283,956 2,864,049,903 0.470000
2015 2,898,868,131 424,401,282 3,323,269,413 364,927,065 2,958,342,348 0.467500
Source: Tarrant Appraisal District
Estimated Market Value
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) – LAST TEN FISCAL YEARS
(Unaudited)
Table 6
108
Fiscal
Year
Operating /
General Rate
General
Obligation Debt
Service Total Direct Rate
Hurst-Euless-
Bedford ISD
Grapevine-
Colleyville ISD Tarrant County
Tarrant County
Hospital District
Tarrant County
Community
College
2006 0.340321 0.151456 0.491777 1.7230 1.7000 0.2725 0.2354 0.1394
2007 0.343227 0.146273 0.489500 1.5975 1.5743 0.2715 0.2354 0.1394
2008 0.340341 0.129659 0.470000 1.3037 1.2900 0.2665 0.2304 0.1394
2009 0.351937 0.118063 0.470000 1.2950 1.2900 0.2640 0.2279 0.1380
2010 0.360791 0.109209 0.470000 1.2955 1.2900 0.2640 0.2280 0.1377
2011 0.343905 0.126095 0.470000 1.2882 1.2900 0.2640 0.2279 0.1376
2012 0.345388 0.124612 0.470000 1.4140 1.3100 0.2640 0.2280 0.1490
2013 0.355130 0.114870 0.470000 1.4075 1.3201 0.2640 0.2279 0.1490
2014 0.360619 0.109381 0.470000 1.3875 1.3201 0.2640 0.2279 0.1495
2015 0.364505 0.102995 0.467500 0.1375 1.3201 0.2640 0.2279 0.1495
Sources: City of Euless Budget Office, Tarrant Appraisal District
Overlapping RatesCity Direct Rates
CITY OF EULESS, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
Current Year and Nine Years Ago
(Unaudited)
Table 7
109
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value (1)Taxpayer Value Value (2)
Ean Holdings, LLC 70,545,871$ 2.38 %Hertz Corp 63,707,382$ 2.83 %
JLB Glade Road LP 56,970,000 1.93 Avis Rent a Car System, LLC 51,681,659 2.29
Westdale Hills 2013 LP 56,777,649 1.92 Vanguard Car Rental USA, Inc.49,438,047 2.19
UDR The Mandolin, LLC 52,839,810 1.79 TXU Electric Delivery Co.37,957,143 1.68
Hertz Corp 50,643,127 1.71 Cingular Wireless, LLC 37,714,317 1.67
Avis Rent a Car System, LLC 45,397,075 1.53 Colonial Realty LP 37,400,000 1.66
Stoneleigh at Bear Creek Apts.45,200,000 1.53 IRA Stoneleigh FEECO LLC 37,300,000 1.66
AT&T Mobility, LLC 45,106,267 1.52 Somerset Village Partners LP 30,299,136 1.34
AP WP Vineyard Reit, LLC 43,000,000 1.45 Budget Rent A Car System Inc.29,855,770 1.32
AP WP Seramont Reit, LLC 40,300,000 1.36 Seramont II LP 29,500,000 1.31
Total 506,779,799$ 17.12 %Total 404,853,454$ 17.95 %
Source: Tarrant County Tax Office
Note:
(1) Total Taxable Assessed Value including real and personal property for tax year 2014 (fiscal year 2015) is $2,958,342,348.
(2) Total Taxable Assessed Value including real and personal property for tax year 2005 (fiscal year 2006) is $2,253,534,573.
Fiscal Year 2015 Fiscal Year 2006
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS – LAST TEN FISCAL YEARS
(Unaudited)
Table 8
110
Taxes Levied Adjustments Adjusted
Within the to Levy in Taxes Levied Collections
Fiscal Fiscal Year Subsequent for the Percentage in Subsequent Percentage Percentage
Year of the Levy Years Fiscal Year Amount of Levy Years Amount of Levy Amount of Levy
2006 11,194,338 1,246 11,195,584 11,007,368 98.32%170,663 11,178,031 99.84%17,553 0.16%
2007 11,908,489 (9,276) 11,899,213 11,801,183 99.18%85,029 11,886,212 99.89%13,001 0.11%
2008 12,083,956 (39,312) 12,044,644 11,986,396 99.52%44,501 12,030,897 99.89%13,747 0.11%
2009 12,747,343 (125,503)12,621,840 12,556,281 99.48%20,484 12,576,765 99.64%45,075 0.36%
2010 12,318,061 (12,857) 12,305,204 12,182,266 99.00%106,994 12,289,260 99.87%15,944 0.13%
2011 11,796,659 (39,928) 11,756,731 11,637,719 98.99%102,477 11,740,196 99.86%16,535 0.14%
2012 12,436,816 (88,716) 12,348,100 12,252,510 99.23%74,202 12,326,712 99.83%21,388 0.17%
2013 12,926,215 (220,135) 12,706,080 12,648,635 99.55%29,314 12,677,949 99.78%28,131 0.22%
2014 13,426,248 (66,143) 13,360,105 13,303,694 99.58%21,441 13,325,135 99.74%34,970 0.26%
2015 14,245,865 (112,947) 14,132,918 14,049,020 99.41%- 14,049,020 99.41%83,898 0.59%
Source: Tarrant County Tax Office and Tarrant Appraisal District
Delinquent TaxesTotal Collection
Collected within the
Fiscal Year of the Levy
CITY OF EULESS, TEXAS
RATIO OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS
(Unaudited)
Table 9
111
Taxable General Percentage
General Certificates Certificates Sales Tax W&S Drainage Certificates Obligation Total of Personal Per
Fiscal Obligation of of Revenue Capital Revenue Revenue of Refunding Primary Income Capita
Year Bonds Obligation Obligation Bonds Leases Bonds Bonds Obligation Bonds Government (1)(1)
2006 28,820,000 7,175,000 9,305,000 7,175,000 - 4,805,000 785,000 - 11,005,000 69,070,000 4.86%1,361$
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$
2015 20,655,000 8,365,000 - 285,000 - 10,940,000 - - 6,320,000 46,565,000 2.91%862$
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
112
Net Debt
General Certificates Less: Debt Net O/S Estimated Taxable to Taxable Net
Fiscal Obligation of Capital Service Debt Population Assessed Assessed Debt Per
Year Bonds Obligation Leases Reserves Total (1)Value (2)Value Capita
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$
2015 26,975,000 8,365,000 - 813,841 34,526,159 54,050 2,958,342,348 1.17%639$
Note:
Source:(1) Estimates by North Central Texas Council of Governments and Euless Planning and Development Department
(2) Tarrant Appraisal District
General Bonded Debt Outstanding
Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Total does not include revenue bonds.
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of September 30, 2015– (Unaudited)
Table 11
113
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable Debt
Debt repaid with property taxes
Grapevine-Colleyville Independent School District 326,820,150$ 8.32%27,191,436$
Hurst-Euless-Bedford Independent School District 274,883,170 21.70%59,649,648
Tarrant County 366,250,000 2.17%7,947,625
Tarrant County Hospital District 23,440,000 2.17%508,648
Tarrant County College District - 2.17%-
Subtotal, overlapping debt 95,297,357
City of Euless (direct debt)29,020,000 100.00%29,020,000
Total direct and overlapping debt 124,317,357$
Notes:The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were
estimated by determining the portion of another governmental unit's taxable value that is within the City's boundaries and
dividing it by each unit's total taxable value.
The current year calculation of direct debt includes all general governmental activities debt including self-supporting
general obligation debt. Amounts shown have not been adjusted for losses on refundings, premiums, or discounts.
Source: Debt outstanding data provided by Municipal Advisory Council of Texas and City records.
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS – LAST TEN FISCAL YEARS
(Unaudited)
Table 12
114
Less Interest
Total Operating Net and
Fiscal Revenues Expenses Revenue Fiscal Coverage
Year (1)(2)Available Principal Charges Total Ratio
2006 16,568,058 13,485,955 3,082,103 195,000 229,437 424,437 7.26
2007 14,645,201 13,668,755 976,446 220,000 213,643 433,643 2.25
2008 16,369,368 14,722,644 1,646,724 235,000 191,228 426,228 3.86
2009 16,594,856 13,722,593 2,872,263 245,000 180,820 425,820 6.75
2010 17,475,984 14,799,879 2,676,105 255,000 171,452 426,452 6.28
2011 20,148,834 15,952,372 4,196,462 270,000 161,333 431,333 9.73
2012 18,714,408 15,824,724 2,889,684 90,000 105,785 195,785 14.76
2013 19,399,314 16,660,397 2,738,917 330,000 82,110 412,110 6.65
2014 19,729,539 18,269,093 1,460,446 405,000 122,229 527,229 2.77
2015 21,182,560 17,879,209 3,303,351 410,000 129,703 539,703 6.12
Notes: (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
115
Less Interest
Total Operating Net and
Fiscal Revenues Expenses Revenue Fiscal Coverage
Year (1)(2)Available Principal Charges Total Ratio
2006 741,256 257,919 483,337 180,000 35,355 215,355 2.24
2007 790,647 420,586 370,061 185,000 34,303 219,303 1.69
2008 736,433 298,712 437,721 190,000 21,565 211,565 2.07
2009 714,250 286,741 427,509 200,000 14,417 214,417 1.99
2010 700,827 457,376 243,451 210,000 8,400 218,400 1.11
2011 699,709 519,622 180,087 - - - n/a
2012 707,165 604,994 102,171 - - - n/a
2013 711,154 567,215 143,939 - - - n/a
2014 715,800 663,625 52,175 - - - n/a
2015 717,763 581,364 136,399 - - - n/a
Notes: (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
116
Per Personal
Estimated Capita Income School Unemployment
Fiscal Population Income (thousands Median Age Enrollment Rate
Year (1)(2)of dollars)(2)(3)(4)
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%
2015 54,050 29,651$ 1,602,637$ N/A 22,762 3.6%
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
117
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employer Employees Employment
HEB ISD 1,000 3.63%City of Euless 383 1.24%
LSG Sky Chefs, Inc.600 2.18%TJL Gravel 275 0.89%
Autogrill Group, Inc.450 1.64%Super Target 225 0.73%
City of Euless 434 1.58%Home Depot 130 0.42%
Life Outreach International 180 0.65%Heath & Company 130 0.42%
Lowe's 140 0.51%First Odyssey Group 100 0.32%
Super Target 160 0.58%Office Depot 100 0.32%
Home Depot 125 0.45%Atlas Match 80 0.26%
Redi-Mix Concrete 67 0.24%F&H Ribbon 70 0.23%
Structural and Steel Products 40 0.15%Ferguson Enterprises 65 0.21%
Total 3,196 11.61%1,558 5.04%
Source: City of Euless Planning and Development Department
2015 2006
CITY OF EULESS, TEXAS
FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS
(Unaudited)
Table 16
118
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Government
and Administration 50.75 53.00 54.50 54.50 50.00 48.50 48.50 48.50 48.50 48.00
Public Safety 120.00 123.00 126.00 126.00 118.00 121.00 129.00 132.00 135.00 136.00
Fire Safety 67.00 70.00 73.00 73.00 71.00 71.00 72.00 72.00 72.00 72.00
Development Services 12.00 12.00 12.00 12.00 11.50 13.50 6.00 6.00 7.50 7.50
Culture and Recreational 35.75 36.50 36.00 36.00 30.00 31.00 32.00 30.50 33.25 34.25
Water and Wastewater 49.50 50.00 50.00 50.00 46.00 42.00 42.50 42.00 42.00 42.00
Golf Course 15.25 15.25 15.25 17.25 13.00 13.00 13.00 12.00 10.75 11.75
Public Works 15.75 15.75 15.75 15.75 14.00 17.50 18.50 18.50 18.50 20.00
Service Center 6.00 6.00 6.00 6.00 5.00 5.00 5.00 5.00 5.00 5.00
Risk Management / Insurance 2.00 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Total 374.00 383.00 390.00 392.00 360.00 364.00 368.00 368.00 374.00 378.00
Source: City Budget Office
CITY OF EULESS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS
(Unaudited)
Table 17
119
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Public Safety
Police
Number of Certified Officers 82 82 85 85 85 85 85 87 92 92
Number of Citations Issued 38,359 34,368 26,503 29,925 24,126 21,790 22,787 26,356 25,500 24,573
Fire
Number of Certified Firefighters 65 68 71 70 69 69 70 70 70 70
Number of Alarms 3,661 3,675 4,197 3,827 4,097 4,196 4,204 4,296 4,505 4,686
Number of EMS Calls 2,317 2,561 2,688 2,634 2,793 2,848 2,982 3,108 3,230 3,424
Municipal Court
Cases Filed 46,085 39,096 30,551 33,670 31,442 27,022 26,889 32,192 31,172 28,885
Development
Number Residential Inspections - New 315 58 77 100 101 52 44 42 107 176
Number Commercial Inspections - New 10 24 28 16 14 11 29 16 29 33
Number Multifamily Inspections - New 0 0 0 0 0 0 0 0 1 1
Public Works
Street Overlay (Square Footage)1,117,894 664,472 999,285 797,326 770,380 953,406 368,654 540,613 631,260 430,504
Cultural and Recreational
Parks and Recreation
Recreation Center Memberships 4,160 3,990 3,944 3,703 2,443 4,337 3,654 5,137 6,261 4,348
Class Attendance (Youth/Adult)25,704 29,067 59,541 74,452 56,833 28,804 41,766 Unavailable Unavailable Unavailable
Water and Wastewater
Number of Water Consumers 24,486 24,484 24,608 24,677 24,760 24,924 24,428 25,039 25,319 26,014
Water Produced (In Gallons x 1000)372,695 414,934 348,548 730,291 579,154 477,914 299,107 416,843 380,864 741,225
Water Purchased - TRA (In Gallons x 1000)2,947,945 2,202,426 2,291,974 1,955,535 2,028,760 2,566,370 2,440,539 2,133,211 2,154,469 1,628,651
Water Supplied (In Gallons x 1000)3,320,640 2,617,360 2,640,522 2,685,826 2,607,914 3,044,284 2,739,646 2,550,054 2,535,333 2,369,876
Annual Rainfall (In Inches)20.74 53.51 27.10 36.32 38.65 22.26 36.57 24.41 23.98 44.45
Golf Course
Number of Paid Rounds Played 36,639 35,094 36,528 43,029 32,996 35,075 34,550 35,890 22,110 *33,735
Source: City Departments
Comprehensive Annual Financial Report
City Budget Office
Notes:N/A - Data not available.
*Golf course closed for 3½ months for renovations in 2014.
CITY OF EULESS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS
(Unaudited)
Table 18
120
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Fire Stations 3 3 3 3 3 3 3 3 3 3
Public Works
Streets - Paved (1)182.0 211.0 217.6 217.6 217.6 332.1 332.4 333.4 340.6 342.80
Cultural and Recreational
Swimming Pools 3 3 3 3 3 3 3 4 3 3
Parks 17 17 17 17 17 17 17 17 17 17
Parks Land (Acres)566 632 632 632 632 632 632 632 632 632
Community Buildings 5 5 5 5 5 6 6 6 6 6
Ampitheater 2 2 2 2 2 2 2 2 3 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 35 35 35 35 33 33 33 33 28 28
Library Holdings 97,334 98,613 101,672 103,122 106,121 110,149 111,230 111,312 105,500 98,596
Water and Wastewater
Water Mains - Potable (2)218.00 222.10 226.80 226.80 228.20 228.50 227.99 231.06 232.28 234.84
Water Mains - Reclaimed (2)- - - - - - - 1.73 3.22 3.70
Fire Hydrants 1,377 1,441 1,477 1,477 1,525 1,526 1,550 1,579 1,633 1,648
Wastewater Mains (2)162.0 168.0 186.3 186.3 186.5 186.7 187.6 187.6 191.3 192.4
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.