HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2012
City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2012
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, 2012
C O N T E N T S
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i-ix
City Officials x
Organizational Chart xi
GFOA Certificate of Achievement xii
FINANCIAL SECTION
Independent Auditor's Report 1-2
Management’s Discussion and Analysis (unaudited) 3-14
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets 15
Statement of Activities 16
Fund Financial Statements
Governmental Funds
Balance Sheet 17
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets 18
Statement of Revenues, Expenditures and Changes in Fund Balances 19
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 20
Proprietary Funds
Statement of Net Assets 21-22
Statement of Revenues, Expenses, and Changes in Net Assets 23
Statement of Cash Flows 24-25
Fiduciary Funds
Statement of Net Assets 26
Statement of Changes in Fiduciary Net Assets 27
Notes to Basic Financial Statements 28-61
Required Supplementary Information
Schedule of Funding Progress for Participation in
Texas Municipal Retirement System 62
Schedule of Funding Progress – OPEB Trust 63
Budgetary Comparison Schedules 64-67
Notes to Required Supplementary Information 68
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 71-72
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 73-74
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2012
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 75
Police Drug Enforcement Special Revenue Fund 76
Crime Control and Prevention District Special Revenue Fund 77
Public Safety Grant Special Revenue Fund 78
Juvenile Case Special Revenue Fund 79
Non-Major Proprietary Funds
Combining Statement of Net Assets 81-82
Combining Statement of Revenues, Expenses, and Changes in Net Assets 83
Combining Statement of Cash Flows 84
Internal Service Funds
Combining Statement of Net Assets 86
Combining Statement of Revenues, Expenses, and Changes in Net Assets 87
Combining Statement of Cash Flows 88
Escrow Agency Funds
Combining Statement of Changes in Assets and Liabilities 89
STATISTICAL SECTION (Unaudited) Table Page(s)
Net Assets by Component 1 90
Changes in Net Assets 2 91-92
Fund Balances, Governmental Funds 3 93
Changes in Fund Balances, Governmental Funds 4 94
Assessed and Estimated Actual Value of Taxable Property 5 95
Direct and Overlapping Property Tax Rates 6 96
Principal Property Tax Payers 7 97
Property Tax Levies and Collections 8 98
Ratio of Outstanding Debt by Type 9 99
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 100
Direct and Overlapping Governmental Activities Debt 11 101
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 102
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 103
Demographic Statistics 14 104
Principal Employers 15 105
Full-time Equivalent City Government Employees by Function/Program 16 106
Operating Indicators by Function/Program 17 107
Capital Asset Statistics by Function/Program 18 108
INTRODUCTORY SECTION
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201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.ci.euless.tx.us
January 21, 2013
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, 2012. 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,
2012, 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;
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and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified (“clean”) opinion that the City’s financial statements for the fiscal year ended
September 30, 2012, 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 six-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 51,500.
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
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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, and a youth athletic complex. Internal services of the
City account for risk management, equipment replacement, and employee insurance
coverage activities on a cost reimbursement basis. A private contractor, through a
franchise agreement, provides solid waste collection and disposal services for the City.
Three component units of the City, the Euless Development Corporation, the Euless
Crime Control and Prevention District, and Tax Increment Reinvestment Zone #3 –
Glade Parks, are presented in the financial statements of the City as blended component
units. Data for these organizations is recorded and presented in special revenue funds of
the City’s financial statements. Additional information on these component units can
also be found in Note 1 in the Notes to the Basic Financial Statements.
The annual budget serves as the foundation for the City of Euless’ financial planning and
control. Per the City Charter, the City Manager provides to the City Council the
proposed budget by August 1st each year. The budget is filed with the City Secretary and
is open for public inspection. Upon receipt of the budget, the City Council sets a date for
a public hearing at which time interested citizens may express their opinions regarding
the proposed budget. The Charter requires the Council to adopt the budget by a favorable
majority vote at least ten days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however any revisions that alter the total expenditures of
any fund must be approved by the City Council. Budgetary control has been established
at the individual fund level. Financial reports are produced showing budget to actual
expenditures by line item and are distributed monthly to City departments for review.
Economic Condition
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
City of Euless operates.
The City of Euless is located in Tarrant County, one of the fastest-growing counties in
Texas, in the heart of the Dallas/Fort Worth (“DFW”) Metroplex and adjacent to DFW
Airport. Thus, the economic vitality of the region significantly impacts the economic
health of Euless. DFW’s strategic central location and diverse economy are major factors
contributing to businesses relocating to the area. As a result, DFW is one of the fastest-
growing economic regions in the country. Due to the tremendous growth experienced
over the last decade, DFW has become the largest metropolitan area in Texas. DFW’s
highly-diversified economy includes more than 141,000 business, 1,500 regional and
corporate headquarters, 24 Fortune 500 Companies, and a total workforce topping 3.2
million. Such economic diversity has helped the region weather economic downturns in
key sectors better than other regions of the nation (U.S. Census Bureau County Business
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Patterns). For September 2012, the City’s unemployment rate of 6.6% compares
favorably with the state rate of 6.8% and a national rate of 7.8%.
DFW Airport is the world’s fourth-busiest airport in terms of operations and eighth in
terms of passengers. DFW currently operates daily passenger flights to 191 destinations
worldwide, including 144 nonstop domestic destinations and 47 nonstop international
destinations, offering more than 1,750 flights per day and serving more than 57.8 million
passengers a year. DFW provides in excess of 305,000 jobs and contributes $16.6 billion
annually to the regional economy (SOURCE: DFW website www.dfwairport.com Fast
Facts and DFW Airport 2011 Comprehensive Annual Financial Report).
The AllianceTexas development in north Fort Worth is a 17,000-acre master-planned,
mixed-use community which is home to 300 companies, 31,000 employees, 7,700 single-
family homes, and is anchored by the inland port known as the Alliance Global Logistics
Hub. The development includes Fort Worth’s Alliance Airport, the first purely industrial
airport in the Western Hemisphere, which serves as the cornerstone for the nation’s
fastest-growing industrial complex. The area offers a variety of commercial real estate
options as well as industrial, office, and retail space. Additionally, the AllianceTexas
development contributes an estimated $2.1 billion annually to the local economy
(SOURCE: Alliance website www.allianceairport.com, AllianceTexas Facts).
Although the DFW Metroplex has fared better than other areas of the nation during the
recession, the local economy did experience a downturn. During FY2012, Euless
realized significant improvement in local revenues, but has not yet experienced a full
recovery. Close monitoring of revenues has allowed the City to fill some of the vacant
positions that have been held for a number of years. Euless continues to look for new,
innovative revenue opportunities in an effort to minimize the tax burden to its citizens.
Throughout the economic difficulties faced the last several years, City staff has made
every effort to ensure service levels to citizens were preserved. Many of the budgetary
reductions and other cost-saving measures enacted in prior fiscal years were carried over
into the current fiscal year to minimize the City’s risk. In the upcoming fiscal year,
management will continue to closely monitor revenue collections in conjunction with
expenditure patterns to ensure the City maintains a healthy financial position.
Taxable value for all residential and commercial property in the City of Euless totaled
approximately $2.7 billion for fiscal year 2012, which represents a 5.9% increase over the
prior year. For fiscal year 2012, sales tax collections, another significant revenue source
for the City, exceeded budget expectations by close to 10% and prior year collections by
almost 13%.
The City receives significant revenues from a consolidated rental car facility at DFW
Airport. While a portion is used to fund general operations to reduce the tax burden on
citizens, the City Council has chosen to utilize the majority of this funding source to build
reserves and to cash flow capital projects in lieu of debt issuance. Doing so has allowed
the City to refrain from becoming overly dependent on a volatile resource, while
providing much needed improvements within the community.
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The City of Euless has approximately 958 acres of undeveloped land outside of DFW
Airport and another 1,700 developable acres within the airport boundaries. Euless
continues to focus on attracting quality, sustainable development to the area, to pursue
redevelopment opportunities, and to renew the emphasis on business retention. As a
result, over the last several years, Euless has experienced new commercial, industrial,
residential, and multi-family growth. The Glade Parks mixed-use development
consisting of major retail, restaurants, neighborhood pedestrian-oriented retail uses and
residential neighborhoods is currently under construction. During 2012, the City
welcomed the opening of several new businesses including Airport Freeway Animal
Hospital, Service Master and Furniture Restoration, Monarch Dental Clinic, Wok
Express and Bayou Twist. Over 100,000 square feet of industrial space was occupied in
2012 bringing over 135 jobs to the City. New home construction added approximately
$15 million in assessed valuation to the tax rolls.
The Dallas Cowboys Stadium and Texas Rangers Ballpark 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 and the World Series.
During the fiscal year, various capital improvement projects located throughout the City
were completed. The projects included miscellaneous street improvements, infrastructure
improvements meeting Americans with Disabilities Act (ADA), and street overlay
projects throughout the City. Additionally, street reconstruction projects completed this
year include Baze Road and the bridge at South Pipeline Road. In addition, the City
completed the replacement of several wastewater lines along Collin Drive (CDBG
project), and along East Huitt Lane, Ascot Drive, Dunaway Court, and Dunaway Drive.
The City benefits from a well-educated workforce, with approximately 80% of
graduating seniors in the Hurst-Euless-Bedford School District pursuing further
education. In addition, Euless’ median household income of $53,629 (source: Claritas
Site Reports) compares favorably to $50,920 for the State of Texas.
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
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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, fire
stations, 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 60 days
which equates to approximately 16.4% 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 a
75-day reserve. Water and Wastewater revenue bond covenants require the City to
maintain reserve amounts sufficient to cover the average annual debt service
requirements. This revenue bond reserve is in addition to the working capital required by
the City’s fiscal policies and is maintained in a separate fund. As of September 30, 2012,
the revenue bond reserve totaled $304,774 which is equal to the average annual debt
service on the outstanding debt.
Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. rates
the City’s general obligation debt and sales tax revenue debt at AA and the water and
wastewater revenue debt at AA+. Moody’s Investor Service, Inc. rates the general
obligation debt and water and wastewater revenue debt at Aa2 and the sales tax revenue
debt at A1. Additional information about the rating agencies or the significance of the
ratings provided may be obtained from each agency’s web site.
Major Initiatives
The City has partnered with Tarrant County, surrounding cities, local churches and
businesses to renovate qualifying homes in the community through the Tarrant County
Home Program and the Community Powered Revitalization Program (“CPR”). Through
this partnership, the cities of Hurst, Euless, and Bedford have joined forces to assist
qualifying residents in all three communities.
The City’s updated Facility Master Plan addresses the remaining facility needs of the
City. The Parks Master Plan, which focuses on improving the quality of life for the
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community, includes additional hike/bike trails, park amenities and upgrades, and
additional aquatic features for citizens of every age.
Construction of the Euless Family Life Center Aquatic Facilities at Midway Park is
currently underway. This multi-purpose facility will be adjacent to the senior center and
will offer aquatic programs for the senior population and the general public. The indoor
facility includes a lap/leisure pool, current channel, slide, and therapy pool. The outdoor
aquatic center will include various play components such as a leisure pool, slides, aqua
play features, shade structures, a bath house, and all necessary filtration systems. The
outdoor portion of this project is expected to be operational for the 2013 summer season.
These facilities are financed from cash reserves and do not require the issuance of debt.
The City’s Capital Improvement Plan addresses the infrastructure needs throughout the
City. With the reconstruction of State Highway 183, the City executed a Master Utility
Adjustment Agreement with the Texas Department of Transportation, North Tarrant
Express (“NTE”) Mobility Partners, and Bluebonnet Contractors to relocate existing
water and wastewater mains along this thoroughfare. In the upcoming fiscal year, the
design and right-of-way acquisition is anticipated to begin for Cullum Drive. The street
will be reconstructed to a concrete roadway with underground drainage, sidewalks, and
wastewater main replacement. ADA Infrastructure Improvements (CDBG); county
overlay projects; and several wastewater line replacement projects 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. The City uses reclaimed water to irrigate over 300
acres of City property including Texas Star Golf Course and the Texas Star Sports
Complex. The use of reclaimed water for irrigation is a viable alternative to potable
water that allows the City to protect valuable assets by continuing to water during
drought conditions.
The first phase of the extension of the reclaimed water line is anticipated to begin next
fiscal year. Phase I includes the installation of a booster pump station located at Midway
Road and Bear Creek Drive and service extension 1700 feet north of Harwood Road.
Ultimately, with the completion of all phases of the extension, the availability of
reclaimed water will extend to multiple multi-family properties from Harwood Road to
Mid Cities Boulevard as well as the City’s Bear Creek Park. Additional system
expansion is possible in the future as well.
Over the last several years, the City has worked with a developer on a major, mixed-use
center located along the southwest corner of Glade Road and Highway 121. This center
will ultimately provide approximately 1.2 million square feet of retail/office and includes
a unique residential component. The City expects the sales tax benefit from this center to
be significant. In an effort to promote development in this area, the City created a Tax
Increment Reinvestment Zone (“TIRZ”) for this development (Glade Parks) and
approved the related project and financing plan. This plan authorizes the City to
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undertake certain public improvements associated with the Glade Parks development.
The City also executed a development agreement with Glade 121 L.P., which specifies
the extent to which the City will provide the improvements and provides for the
conditions under which these improvements will be constructed. Additionally, the City
created the Glade Parks Public Improvement District (“PID”) which is funded from
assessments within the district. At the 2012 fiscal year-end, a portion of phase two
infrastructure improvements were significantly complete. Permits have been issued for
an additional restaurant site and the urban loft development.
To further promote development, the City also executed a development agreement in
2011 with Realty Capital Corporation, LLC, related to a planned Riverwalk
Development. In addition, the City approved a planned development relating to this
project which includes approximately 200 acres located at the northwest corner of Airport
Freeway and State Highway 360 extending north to Harwood Road. This project will be
developed as a mixed use development designed around a central river walk amenity that
will serve as its focal point. The development agreement details the timing for the
construction of the initial and subsequent phases of the riverwalk amenity.
Awards and Acknowledgements
The Government Finance Officers Association (“GFOA”) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Euless for its
Comprehensive Annual Financial Report (“CAFR”) for the fiscal year ended September
30, 2011. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government
financial reports. In order to be awarded a Certificate of Achievement, a government
unit must publish an easily readable and efficiently organized CAFR, whose contents
conform to program standards. Such report must satisfy both Generally Accepted
Accounting Principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has been
awarded a Certificate of Achievement for the last 25 consecutive years. We believe that
the current CAFR meets the Certificate of Achievement program requirements and are
submitting it to GFOA for review.
In addition, the City of Euless also received the GFOA’s Distinguished Budget
Presentation Award for its annual budget document. The City of Euless has received the
Distinguished Budget Award for the last 22 years. In order to qualify for the award, the
City’s budget document was judged to be proficient in several categories, including as a
policy document, a financial plan, an operations guide, and a communications device.
The preparation of this report on a timely basis could not have been accomplished
without the efficient and dedicated services of the entire staff of the Finance Department.
Appreciation is expressed to City employees throughout the organization, especially
those who were instrumental in the successful completion of this report.
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We would like to thank the Mayor and members of the City Council for their support in
planning and conducting the financial operations of the City in a responsible,
professional, and progressive manner.
CITY OFFICIALSCITY OFFICIALS
Fiscal Year 2011Fiscal Year 2011‐‐2012 2012
MARY LIB SALEH, MAYOR
Tim Stinneford, Council Member — Place One
Leon Hogg, Council Member — Place Two
Linda Martin, Council Member — Place Three
Donna Mickan, Council Member — Place Four, Mayor Pro Tem
Glenn Porterfield, Council Member — Place Five
Perry Bynum, Council Member — Place Sixyy ,
Gary McKamie, City Manager
Loretta Getchell, Deputy City Manager
Chris Barker, Assistant City Manager
FINANCIAL SECTION
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AN INDEPENDENT
MEMBER OF BAKER TILLY
INTERNATIONAL
WEAVER AND TIDWELL LLP
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
WWW.WEAVERLLP.COM
FORT WORTH
2821 W 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 (City) as of and for the year ended September 30, 2012, which collectively
comprise the City’s basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City’s management. 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 of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our 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 as of September 30, 2012,
and the respective changes in financial position and where applicable, cash flows thereof, for
the year then ended in conformity with accounting principles generally accepted in the United
States of America.
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the analysis of funding progress, and budgetary
comparison information on pages 3 through 14 and 62 through 67 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.
To the Honorable Mayor,
City Council and City Manager
Page 2
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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, schedules and statistical tables are
presented for purposes of additional analysis and are not a required part of the financial
statements. The combining and individual nonmajor fund financial statements are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
WEAVER AND TIDWELL, L.L.P.
Fort Worth, Texas
January 21, 2013
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CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2012
(Unaudited)
Management of the City of Euless offers the readers of the City’s financial statements this
narrative overview and analysis of the financial activities and financial position of the City for
the fiscal year ended September 30, 2012. 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? Have net assets (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-ix of this report) and the statistical section (pages 90-108 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 $182,064,889 (Net assets). This number must be viewed in the context that the vast
majority of the City’s net assets of $130,031,799 (71%) are capital assets net of related debt
and that most capital assets in government do not directly generate revenue nor can they be
sold to generate liquid capital. Those net assets restricted for specific purposes totaled
$7,137,631 (4%). The remaining $44,895,459 (25%) are unrestricted net assets 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 assets of $5,129,392 and business-
type activities realized a decrease in total net assets of $552,176 bringing the net increase in
total net assets for the City to $4,577,216.
At the close of the current fiscal year, the City of Euless’ governmental funds reported
combined ending fund balances of $29,289,698 which represents an increase of $2,621,766
in comparison with the prior year. Within this total, $1,867,971 is restricted for debt service;
$606,505 is restricted by bond covenant for capital projects; $258,765 and $106,374 are
restricted for court technology and juvenile case management, respectively; and another
$1,428,599 is restricted for capital projects by developer agreements. Amounts restricted for
4
cable PEG fees and historical preservation total $158,603 and $1,245, respectively.
Nonspendable fund balance of $34,599 represents fund balance amounts for inventories and
prepaid items. Fund balances of $15,913,959 represent assigned fund balance in the general,
special revenue, and capital projects funds. The unassigned fund balance in the General Fund
is $8,913,078 which can be used for any lawful purpose. The General Fund unreserved
balance represents 30% of fiscal year 2012 total fund expenditures.
The City’s total capital assets (net of accumulated depreciation) decreased by $2,440,541
which is primarily attributed to current year depreciation charges and asset retirements
exceeding capital asset additions and CIP expenses for the year.
The City’s bonds payable decreased by $4,140,000 or 8%, due to the scheduled repayment of
principal on outstanding bonded debt combined with refunding bonds issued for the
defeasance of certain issues of general obligation, sales tax revenue, and water and sewer
revenue debt.
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 assets presents information on all of the City of Euless’ assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets 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 assets changed
during the fiscal year. All changes in net assets 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.
The government-wide financial statements include not only the City of Euless (the primary
government), but also the Half-Penny Sales Tax Corporation, the Crime Control and Prevention
District, and the Tax Increment Reinvestment Zone #3 – Glade Parks which are legally separate
5
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 15-16 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, Half-Penny Sales Tax,
and Car Rental Tax 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, Half-Penny Sales Tax, and Car
Rental Tax funds. A budgetary comparison statement has been provided for each fund to
demonstrate compliance with the adopted budgets.
The basic governmental fund financial statements can be found on pages 17-20 of this report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise
funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses enterprise funds to account for its water
and wastewater, drainage utility, and golf operations, as well as several other recreational
activities. Internal service funds are an accounting device used to accumulate resources and
allocate costs internally among the City’s various functions. The City uses internal service funds
to account for its equipment replacement, risk management, and health insurance services.
Because these services predominately benefit governmental rather than business-type functions,
6
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 21-25 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 26 and 27 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 28-61 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, Half-Penny Sales Tax Fund, and the Car Rental Tax Fund are also located in this
section of the report. Required supplementary information can be found on page 62-68 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 69-89 of this
report.
Government-Wide Financial Statement Analysis
As noted earlier, net assets and especially net assets 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 $182,064,889 as of September 30, 2012.
The largest portion of the City’s net assets (71%) 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
7
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 assets (4%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets
of $44,895,459 (25%) may be used to meet the City’s ongoing obligations to citizens, creditors,
and employees.
Net Assets
Governmental Business-type
Amounts shown in 000's activities activities Total
2012 2011 2012 2011 2012 2011
Current and other assets 48,480$ 44,597$ 25,217$ 23,927$ 73,697$ 68,524$
Capital assets 113,054 113,805 62,872 64,562 175,926 178,367
Total assets 161,534 158,402 88,089 88,489 249,623 246,891
Long-term liabilities 39,888 43,299 11,385 11,066 51,273 54,365
Other liabilities 12,198 10,785 4,087 4,254 16,285 15,039
Total liabilities 52,086 54,084 15,472 15,320 67,558 69,404
Net assets:
Invested in capital assets,
net of debt 77,829 71,051 52,203 53,133 130,032 124,184
Restricted 4,427 1,819 2,711 3,088 7,138 4,907
Unrestricted 27,192 31,448 17,703 16,948 44,895 48,396
Total net assets 109,448$ 104,318$ 72,617$ 73,169$ 182,065$ 177,487$
As of September 30, 2012 the City reports positive balances in all three categories of net assets,
for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for fiscal year 2011.
The City’s unrestricted net assets decreased by $3,500,997 in fiscal year 2012. Restricted net
assets realized an increase of $2.2 million and the amount invested in capital assets, net of related
debt also increased by $5.9 million. These increases (accompanying decreases in unrestricted)
combined with the current year change in net assets resulting from current year operations of
$4.6 million account for the overall decline in unrestricted net assets. The details of the results
of current year operations are found in the table shown on the following page.
8
Changes in Net Assets
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2012 2011 2012 2011 2012 2011
REVENUES
Program revenues:
Fees, fines and
charges for services 6,241$ 5,829$ 25,521$ 27,963$ 31,762$ 33,792$
Operating grants and
contributions 482 469 - - 482 469
Capital grants and
contributions 690 1,015 369 773 1,059 1,788
General revenues:
Property taxes 12,452 11,856 - - 12,452 11,856
Sales taxes 14,958 13,253 - - 14,958 13,253
Car rental taxes 12,934 12,458 - - 12,934 12,458
Mixed beverage taxes 54 66 - - 54 66
Occupancy taxes 293 273 - - 293 273
Gross receipts taxes 4,276 4,175 - - 4,276 4,175
Investment income 133 169 61 66 194 235
Rents and royalties 397 454 - - 397 454
Gain (loss) on asset
disposal 68 100 - - 68 100
Miscellaneous 638 966 - - 638 966
Total revenues 53,616 51,083 25,951 28,802 79,567 79,885
EXPENSES
Culture and recreation 5,681 5,092 - - 5,681 5,092
Development services 973 1,707 - - 973 1,707
General government 15,911 15,699 - - 15,911 15,699
Highways and streets 2,969 2,923 - - 2,969 2,923
Public safety 22,317 20,755 - - 22,317 20,755
Interest on LTD 1,327 1,618 - - 1,327 1,618
Water and wastewater - - 17,813 17,827 17,813 17,827
Drainage utility - - 1,284 1,178 1,284 1,178
Golf course - - 4,599 4,483 4,599 4,483
Recreational
enterprises - - 2,116 1,983 2,116 1,983
Total expenses 49,178 47,794 25,812 25,471 74,990 73,265
Increase (decrease) in
net assets before
transfers 4,438 3,289 139 3,331 4,577 6,620
Transfers 691 905 (691) (905) - -
Increase (decrease) in
net assets 5,129 4,194 (552) 2,426 4,577 6,620
Net assets, beginning 104,319 100,125 73,169 70,743 177,488 170,868
Net assets, ending 109,448$ 104,319$ 72,617$ 73,169$ 182,065$ 177,488$
Governmental activities. Governmental activities increased the City’s net assets by
$5,129,392 thereby accounting for the net growth in total net assets. Most revenue categories,
including property tax collections, sales taxes, gross receipts taxes, and grant revenues,
exceeded projections. Sound fiscal management, continued holding of frozen positions, and
9
close monitoring of revenues and expenses allowed the City to realize an increase in net
assets before transfers of $4,438,763. Total revenue for the governmental activities
(excluding transfers from business-type activities) increased from the previous year by
$2,532,521. General Revenue, which is primarily made up of property taxes, sales taxes, and
car rental taxes, had a net increase of $2,433,749. 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 an overall upswing in the local economy.
Program revenues, which consist primarily of fines, fees, and charges for services increased
$412,281 primarily resulting from increased revenue associated with development activity.
Total expenses increased by $1,382,573 during FY2012. Interest on long-term debt declined
by approximately $291,000 predominantly as a result of the debt refundings undertaken
during the year. The raise package for employees included an increase of 3.25% which
accounts for a large portion of the expense increase. Additionally, several positions that were
previously held were filled during the year including a public service officer, two police
officers, a firefighter, and several field technicians. Development services realized a
decrease in expenses primarily due to the relocation of the code compliance function to the
Police Department which, in turn, accounts for a portion of the increase in public safety
expenses. The net assets of general governmental operations account for 60% of total net
assets.
Business-type activities. Business-type activities decreased the City’s net assets by
$552,176. Total revenue for the business-type activities decreased from the previous year by
$2,851,498 due in part to a decline in water consumption and wastewater treatment volume
as well as declines in rents and royalties. Capital grants and contributions accounted for
more than 13.5% of the revenue decrease. While some expense categories realized decreases
for the year, overall business-type expenses increased 1.3% approximately half of which is
due to the raise package mentioned previously. Water purchases and wastewater treatment
charges declined due to lower consumption and an extension of the energy contract resulted
in lower negotiated rates for electric service. Net assets for business-type activities represent
40% of total net assets.
Expenses and Program Revenues
$0
$4,000
$8,000
$12,000
$16,000
$20,000
In Thousands of DollarsBusiness-Type Activities
Expenses Prog Revs
$0
$5,000
$10,000
$15,000
$20,000
$25,000
G&A Culture
& Rec
Dev
Svcs
Hwys
& Sts
Public
SafetyIn Thousands of DollarsGovernmental Activities
Expenses Prog Revs
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Water &
WW
Drainage Golf Other RecIn Thousands of DollarsBusiness-Type Activities
Expenses Prog Revs
10
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, unreserved 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 $29,289,698, an increase of $2,621,766 in comparison with prior year.
Approximately 30% or $8.9 million constitutes unassigned fund balance in the general fund that
is available for spending at the City’s discretion. Another $34,599 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 ($1,867,971); 2) to pay for specific capital improvements per
developer agreements ($1,428,599); 3) restricted by bond covenant for specific capital projects
($606,505); and 4) for a variety of other restricted purposes ($524,987). The remainder of
$15,913,959 represents assigned fund balance which is the fund balance classification for
residual balances in governmental funds other than the general fund. See discussion under Fund
Balance Classifications in the Notes to the Basic Financial Statements for additional details on
fund balance.
In the General Fund, the City budgeted for a decrease in fund balance (planned reduction) of
$1,253,369. Due to a positive budget variance in overall revenues and expenditures, the General
Fund ended the year with an increase to fund balance of $1,581,173 which represents a positive
budget variance of $2,834,542 resulting primarily from increased revenues, departmental
expenditure savings, and personnel savings from vacant positions.
Almost all General Fund revenue categories realized increases over the prior year and most
surpassed budget estimates as well. Current property tax collections, sales tax receipts, fines and
fees, rental income, and license and permit revenues all exceeded both budget and prior year.
The increase in current property tax revenues is due to a rise in taxable values and sales taxes
grew as a result of new development and an overall upswing in the local economy. Fines and
fees increased as a result of the housing of more federal detainees throughout the year and an
increase in the number of ambulance transports. License and permit revenues realized a
significant increase in building permits due primarily to the Glade Parks Development and the
school district’s construction project. Investment income did not achieve budget estimates, but
was basically flat with the prior year figures.
Personnel and related benefit savings of approximately $710,000 resulted primarily from holding
numerous vacant positions open throughout the year. While some positions were filled during
the course of the year, many were vacant for a portion of the year resulting in budgetary savings.
In addition to personnel related savings, culture and recreation realized savings in mowing and
supplies expenditures of approximately $24,000 and $34,000 respectively. Jail food
expenditures exceeded budget as a result of the increase in detainees housed throughout the year.
Increased rebate incentive payments from the upsurge in sales tax revenues resulted in additional
11
expenditures of approximately $191,000, while the revenue sharing agreement with the cities of
Dallas and Fort Worth realized budgetary savings of $212,000. Capital expenditures including
street overlay, traffic signals and lighting, and sidewalks realized budgetary savings of nearly
$107,000. One-time expenditures were $420,000 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 $115,260 which is $69,918 more than the anticipated
increase of $45,612. The anticipated drawdown for the Half-Penny Sales Tax fund totaled
$221,612 while actual results added $475,198 to fund balance. The variance with the original
budget of $696,810 primarily results from increased sales tax revenues combined with
expenditure savings in salaries and benefits and capital outlay. The Car Rental Tax fund balance
was originally anticipated to decrease $3.25 million, but instead ended the year with a decrease
of just over $2.67 million resulting from an increase in net car rental taxes and savings in capital
outlay. The non-major governmental funds realized a combined increase in fund balance of
$3,120,543 primarily resulting from transfers for project funding and rents and royalties. The
combined net effect of these changes in governmental fund balances totals $2,621,766.
Proprietary funds. The City’s proprietary fund statements provide the same type of
information found in the government-wide financial statements for business-type activities, but
in more detail.
Unrestricted net assets of the proprietary funds at the close of the fiscal year are: Water and
Wastewater fund $10,644,473; Drainage Utility fund $1,431,524; Golf Course fund $1,658,266;
and all other non-major recreation enterprise funds combined $2,113,193. The Water and
Wastewater fund realized a decrease in net assets resulting from the current year loss of
$24,625. The Drainage Utility fund experienced a decrease in net assets resulting from the net
loss for the year which results primarily from annual depreciation charges. Net assets for the
Golf Course fund increased $60,506 due in large part to rents and royalties. All other non-major
recreation enterprise funds combined realized a decrease of $64,385 which is primarily
attributable annual depreciation charges for the Texas Star Sports Complex.
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, 2012, totaled $175,926,411 (net of accumulated depreciation).
The investment in capital assets includes land, buildings, improvements, machinery and
equipment, infrastructure, and construction in progress. The net decrease in the City’s
investment in capital assets for the current fiscal year was $2,440,541 or just over 1%.
Major capital asset events occurring during the current fiscal year included the following:
Capital asset contributions for the year primarily consisted of $231,173 in Community
Development Block Grant (CDBG) contributions for the wastewater line replacement along
Collin Drive and developer contributions of $96,044 in utility infrastructure.
Miscellaneous street improvements, ADA/TAS infrastructure improvements, and street
overlay projects located throughout the City were also completed at a total cost of $436,222.
Baze Road reconstruction was completed at a cost of $1,558,401 and the South Pipeline
Road Bridge improvements, in which the City participated with the City of Fort Worth, were
also completed.
12
Construction-in-progress related to general government operations of $4,071,126 primarily
consisted of Glade Park Infrastructure ($2.4 million), Ash Lane ($1.5 million), Texas Star
Sports Complex Phase IV Improvements ($58,400), and design charges for the aquatics
facilities ($80,713).
Capital asset additions for governmental operations include, but are not limited to, a sky
watch tower for the police department, replacement of the spine road lighting, an imaging
system, and solar lights at the dog park.
Construction-in-progress additions related to business-type operations totaled $1,619,870 and
consisted primarily of wastewater line replacements of $17,927 and the reclaimed water main
for $1.6 million.
The wastewater line replacements along East Huitt Lane, Ascot Drive, Dunaway Court and
Dunaway Drive were completed at a cost of $468,932.
Capital asset additions for the business-type activities include, but are not limited to, a sand
spreader, a tractor, and greens fans.
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000s activities activities Total
2012 2011 2012 2011 2012 2011
Land 26,354$ 26,350$ 3,619$ 3,366$ 29,973$ 29,716$
Buildings 38,618 40,212 2,323 2,532 40,941 42,744
Other improvements 2,350 2,453 10,565 11,217 12,915 13,670
M&E 4,701 5,213 462 499 5,163 5,712
Infrastructure 36,960 36,382 44,284 45,422 81,244 81,804
Construction in
Progress 4,071 3,194 1,620 1,526 5,691 4,720
Total 113,054$ 113,804$ 62,873$ 64,562$ 175,927$ 178,366$
Business-typeGovernmental
Additional information on the City’s capital assets can be found in Note 3 on pages 42-43 of this
report.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding
of $45,596,238 net of unamortized losses on prior refundings. Of this amount, $39,543,080
comprises debt backed by the full faith and credit of the government. The remainder of the
City’s debt, $6,053,158, represents bonds secured solely by specific revenue sources (i.e.
revenue bonds).
13
Outstanding Bonded Debt
Governmental Business-Type
Amounts shown in 000s activities activities Total
2012 2011 2012 2011 2012 2011
GO Bonds 29,915$ 29,235$ 8,165 8,675 38,080 37,910
COs 3,230 6,590 - - 3,230 6,590
GO/CO Deferred Loss (1,191) (916) (576) (619) (1,767) (1,535)
Revenue Bonds 2,910 3,715 3,435 3,580 6,345 7,295
Revenue Deferred Loss (57) (47) (235) (77) (292) (124)
Totals 34,807$ 38,577$ 10,789 11,559 45,596 50,136
In fiscal year 2012, the City issued $5,955,000 in General Obligation Refunding Bonds to refund
portions of the: 2001 Certificates of Obligation, 2001 General Obligation Bonds, 2004A General
Obligation Bonds, 2004 Certificates of Obligation, and 2006 General Obligation Refunding
Bonds. The Euless Development Corporation, a blended component unit of the City, issued
$3,785,000 in Sales Tax Revenue Refunding Bonds to refund the 2001 Sales Tax Revenue
Bonds and the 2006 Sales Tax Revenue Refunding Bonds. The City’s total debt decreased
$4,140,000 or 8% during fiscal year 2012 which is attributed to scheduled annual principal
payments combined with the refunded bonds net of the issuance of the refunding bonds.
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 44-50.
Economic Factors and Next Year’s Budgets and Rates
In the FY2012-13 budget, General Fund revenues and transfers are budgeted to increase by 5%
from the 2011-12 budget year with property taxes accounting for 30% of budgeted revenues and
sales tax comprising approximately 29% of budgeted revenues. Certified assessed valuations as
of July 1, 2012, increased 3.9% from the preceding year.
As of September 30, 2012, the City’s unemployment rate is 6.3% compared to the State of
Texas, which is 6.8%. In the FY2012-13 budget, sales tax receipts are projected to increase
1.5% over prior year estimates. The car rental tax receipts are projected at the same level as
FY2012 estimated collections.
Baseline budgeted expenditures in the General Fund are projected to increase approximately 5%
from the FY2011-12 original budget. This increase is primarily attributed to rebates associated
with increased revenue collections, the employee raise package and related costs, and personnel
additions. Other baseline increases include cost for maintenance, supplies, and utilities as well as
increased transfers for equipment replacement. The City elected to use excess reserves in
various funds to cash flow capital programs including city computer and technology upgrades,
public safety equipment and radios, E-Books, HVAC replacement, an EMS-fire suppression
quick response unit, and various other equipment purchases and miscellaneous expenses. In
addition, continued funding is provided for the City’s contribution to the Tarrant County Home
14
Program, community revitalization, and street overlay. The property tax rate remained at .4700¢
per $100 of assessed valuation for FY2012-13.
For the Water and Wastewater Fund, the FY2012-13 budget includes the continuation of the
tiered rate structure for water volume billing. Under the tiered structure, customers pay a
graduated volume rate based on varying levels of monthly water consumption. Volume rates
range from $2.48 to $5.11 per thousand gallons. Monthly water and wastewater base rates
increased for both residential customers and commercial customers. A wastewater volume
charge of $2.83 per thousand gallons applies to all customer classes. 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 $1,521,363 for water line rehabilitation, a portion of the extension of the
reclaimed water line, and the purchase of leak detection equipment.
The Texas Star Golf Course and Conference Centre is a vibrant part of the Euless community.
This facility is well-known for world class golf that is secluded in the midst of the Dallas/Fort
Worth Metroplex. This challenging course has been recognized as a premier municipal facility
by leading golf publications, including Golf Digest and Golfweek. Additionally, Raven’s Grille
ranked in the top five for best service and best place to dine before or after your golf experience
by Avid Golfer. The Conference Centre has 7,000 square feet of divisible space and hosts
business conferences, weddings, concerts, and other events. Next year’s budget includes
proposed revenues of $4,453,840 and proposed operating expenses of $4,451,178. Revenues are
expected to increase less than 1% over prior year revenues in anticipation of fee increases and
additional rounds.
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a
general overview of the City’s finances. If you have questions about this report or need
additional information, contact the Finance Department, Attn: Vicki Rodriquez, Director of
Finance, at 201 N. Ector Drive, Euless, Texas 76039, call (817) 685-1626, or e-mail
vrodriquez@eulesstx.gov.
CITY OF EULESS, TEXAS
GOVERNMENT–WIDE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
15
Primary Government
Governmental Business-type
Activities Activities Total
Deposits and investments 41,218,886$ 16,955,551$ 58,174,437$
Receivables, net of allowances 7,467,813 3,076,003 10,543,816
Internal balances (1,855,801) 1,855,801 -
Inventories, at cost 10,375 328,667 339,042
Prepaid items 24,224 26,888 51,112
Restricted assets
Deposits and investments 606,505 2,710,812 3,317,317
Deferred charges 499,217 138,466 637,683
Net OPEB asset 508,998 125,234 634,232
Capital assets
Land and construction in progress 30,425,214 5,238,415 35,663,629
Other capital assets, net of
accumulated depreciation 82,628,924 57,633,858 140,262,782
Total assets and other debits 161,534,355 88,089,695 249,624,050
Accounts payable 10,155,635 2,208,154 12,363,789
Accrued liabilities 1,718,026 151,257 1,869,283
Accrued interest payable 184,395 56,313 240,708
Unearned revenue 140,165 85,209 225,374
Money held in escrow - 1,587,126 1,587,126
Noncurrent liabilities
Due within one year 4,146,836 839,770 4,986,606
Due in more than one year 35,741,327 10,544,948 46,286,275
Total liabilities 52,086,384 15,472,777 67,559,161
Invested in capital assets, net of
related debt 77,828,950 52,202,849 130,031,799
Restricted for
Debt service 1,867,971 309,595 2,177,566
Capital projects 606,505 - 606,505
Impact fees - 2,401,217 2,401,217
Other 1,952,343 - 1,952,343
Unrestricted 27,192,202 17,703,257 44,895,459
Total net assets 109,447,971$ 72,616,918$ 182,064,889$
ASSETS
LIABILITIES AND NET ASSETS
LIABILITIES
NET ASSETS
CITY OF EULESS, TEXAS GOVERNMENT–WIDE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2012 The Notes to the Basic Financial Statements are an integral part of these statements. 16 Primary GovernmentFees, Fines Operating Capital Business - and Charges Grants and Grants and Governmental TypeProgram ActivitiesExpenses for Services Contributions ContributionsActivitiesActivities TotalPrimary governmentGovernmental activitiesCulture and recreation5,680,772$ 65,912$ 87$ -$ (5,614,773)$ -$ (5,614,773)$ Development services972,770 1,263,477 - - 290,707 - 290,707 General and administrative15,910,313 1,760,023 15,813 - (14,134,477) - (14,134,477) Highways and streets2,968,77054,622 - 689,642 (2,224,506) - (2,224,506) Public safety22,316,429 3,097,141 465,755 - (18,753,533) - (18,753,533) Interest on long-term debt1,327,482- - - (1,327,482) - (1,327,482) Total governmental activities49,176,536 6,241,175 481,655 689,642 (41,764,064) - (41,764,064) Business-type activitiesWater & wastewater17,813,196 18,437,964 - 368,883 - 993,651 993,651 Drainage utility1,283,617 705,473 - - - (578,144) (578,144) Golf4,599,099 4,335,151 - - - (263,948) (263,948) Other recreation enterprises2,115,730 2,041,872 - - - (73,858) (73,858) Total business-type activities25,811,642 25,520,460 - 368,883 - 77,701 77,701 Total primary government74,988,178$ 31,761,635$ 481,655$ 1,058,525$ (41,764,064) 77,701 (41,686,363) General RevenuesTaxesProperty taxes, levied for general purposes12,451,543 - 12,451,543 Sales taxes14,957,757- 14,957,757 Car rental taxes12,933,884- 12,933,884 Mixed beverage taxes54,138- 54,138 Hotel/motel occupancy taxes292,931- 292,931 Gross receipts taxes4,276,136- 4,276,136 Investment income132,607 60,752 193,359 Rents and royalties397,527 - 397,527 Gain/(loss) on sale of assets68,329 - 68,329 Miscellaneous637,975 - 637,975 Transfers690,629 (690,629) - Total general revenues and transfers46,893,456 (629,877) 46,263,579 Change in net assets5,129,392 (552,176) 4,577,216 NET ASSETS, beginning of year104,318,579 73,169,094 177,487,673 NET ASSETS, end of year109,447,971$ 72,616,918$ 182,064,889$ Net (Expense) Revenue andChanges in Net AssetsProgram Revenues
CITY OF EULESS, TEXAS
BALANCE SHEET – GOVERNMENTAL FUNDS
SEPTEMBER 30, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
17
Debt Car Half-Penny Non-major Total
General Service Rental Tax Sales Tax Governmental Governmental
Fund Fund Fund Fund Funds Funds
Deposits and investments 9,484,011$ 811,268$ 8,549,730$ 2,229,846$ 12,369,386$ 33,444,241$
Receivables
Property taxes 492,092 206,262 - - - 698,354
Accounts receivable and unbilled revenue 989,276 - 2,188,125 - 824,646 4,002,047
Accrued interest receivable 12,095 - 5,972 400 1,920 20,387
Due from other governments 1,630,539 - - 652,743 323,470 2,606,752
Prepaids and deposits 18,421 - - 5,163 640 24,224
Inventories, at cost 10,375 - - - - 10,375
Restricted deposits and investments - - - - 606,505 606,505
Total assets 12,636,809$ 1,017,530$ 10,743,827$ 2,888,152$ 14,126,567$ 41,412,885$
Liabilities
Accounts payable 1,273,459$ 19,659$ 7,832,306$ 111,662$ 536,606$ 9,773,692$
Accrued salaries and wages 788,007 - - 36,110 53,597 877,714
Deferred revenue 1,263,608 203,287 - - 4,886 1,471,781
Total liabilities 3,325,074 222,946 7,832,306 147,772 595,089 12,123,187
Fund Balances
Nonspendable
Prepaids and inventories 28,796 - - 5,163 640 34,599
Restricted for
Debt service - 794,584 - 913,562 159,825 1,867,971
Capital projects - - - - 606,505 606,505
Other 258,765 - - - 1,694,821 1,953,586
Assigned 111,096 - 2,911,521 1,821,655 11,069,687 15,913,959
Unassigned 8,913,078 - - - - 8,913,078
Total fund balances 9,311,735 794,584 2,911,521 2,740,380 13,531,478 29,289,698
Total liabilities and fund balances 12,636,809$ 1,017,530$ 10,743,827$ 2,888,152$ 14,126,567$ 41,412,885$
ASSETS
LIABILITIES AND FUND BALANCES
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
18
Total fund balances - governmental funds 29,289,698$
Capital assets of governmental funds are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 111,066,391
Costs associated with the issuance of governmental long-term debt are expensed
when incurred in the fund statements and capitalized and amortized over the life
of the debt in the government-wide financial statements.499,217
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.(184,395)
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.6,816,979
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.1,331,616
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.508,998
Long-term liabilities, including bonds payable, compensated absences (excluding
those of internal service funds), and pension obligations are not due and payable
in the current period and therefore are not reported in the fund financial
statements.(39,880,533)
Net assets of governmental activities 109,447,971$
Amounts reported for governmental activities in the statement of net assets are
different because:
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
19
Debt Car Half-Penny Non-major Total
General Service Rental Tax Sales Tax Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
General property tax 9,100,486$ 3,282,271$ - $ - $ - $ 12,382,757$
Gross receipts tax 4,114,181 - - - 454,886 4,569,067
Mixed beverage tax 54,138 - - - - 54,138
General sales tax 9,376,363 - - 3,751,737 1,829,657 14,957,757
Car rental tax - - 12,933,884 - - 12,933,884
Fines and fees 4,278,738 - - - - 4,278,738
Licenses and permits 1,233,465 - - - - 1,233,465
Investment income 47,169 1,098 28,376 7,387 23,165 107,195
DEA revenues - - - - 12,488 12,488
Intergovernmental 363,343 - - - 649,330 1,012,673
Rents and royalties - 714,347 - - 397,526 1,111,873
Other revenues 948,033 - - - 258,578 1,206,611
Total revenues 29,515,916 3,997,716 12,962,260 3,759,124 3,625,630 53,860,646
Expenditures
Current
Culture and recreation 2,714,190 - - 1,924,813 37,097 4,676,100
Development services 564,046 - - 124,250 - 688,296
General and administrative 6,794,223 - 8,595,061 80,454 69,935 15,539,673
Highways and streets 861,748 - - - - 861,748
Public safety 19,120,977 - - - 1,953,422 21,074,399
Debt service
Principal - 3,620,000 - 4,590,000 - 8,210,000
Interest and fiscal charges - 1,389,931 - 156,294 - 1,546,225
Capital outlay - - 397,229 - 3,329,964 3,727,193
Total expenditures 30,055,184 5,009,931 8,992,290 6,875,811 5,390,418 56,323,634
Excess (deficiency) of
revenues over expenditures (539,268) (1,012,215) 3,969,970 (3,116,687) (1,764,788) (2,462,988)
Other financing sources (uses)
Issuance of refunding debt - 5,955,000 - 3,785,000 - 9,740,000
Premiums on issuance of debt - 260,435 - - - 260,435
Payment to refunding escrow agent - (5,381,310) - - - (5,381,310)
Transfers in 2,432,724 293,350 - - 5,407,944 8,134,018
Transfers out (312,283) - (6,640,378) (193,115) (522,613) (7,668,389)
Total other financing sources (uses), net 2,120,441 1,127,475 (6,640,378) 3,591,885 4,885,331 5,084,754
Net change in fund balances 1,581,173 115,260 (2,670,408) 475,198 3,120,543 2,621,766
Fund balances, beginning of year 7,730,562 679,324 5,581,929 2,265,182 10,410,935 26,667,932
Fund balances, end of year 9,311,735$ 794,584$ 2,911,521$ 2,740,380$ 13,531,478$ 29,289,698$
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, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
Net change in fund balances - total governmental funds 2,621,766$
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over the estimated
useful lives and reported as depreciation expense. In addition, governmental
funds report cash proceeds from the disposal of capital assets as revenues, while
only the net gain/loss on the transaction is reported in the statement of activities.
This is the amount of capital expenditures and disposals recorded in the current
period.3,632,684
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.(4,076,975)
The issuance of long-term debt provides current financial resources to
governmental funds, but has no effect on net assets.(9,740,000)
The repayment of the principal of long-term debt consumes the current financial
resources of governmental funds, but has no effect on net assets.13,309,372
Governmental funds report the effect of debt issuances costs, premiums,
discounts, and similar items when debt is first issued, whereas the amounts are
deferred and amortized in the statement of activities.165,998
Current year changes in the long-term liabilites for compensated absences and
pension and other post employment obligations do not require the use of current
financial resources; therefore, they are not reported as expenditures in
governmental funds.(278,908)
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.33,777
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.(204,850)
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.(333,472)
Change in net assets of governmental activities 5,129,392$
Amounts reported for governmental activities in the statement of activities are different
because:
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS – PROPRIETARY FUNDS
SEPTEMBER 30, 2012
(1 of 2)
The Notes to the Basic Financial Statements
are an integral part of these statements.
21
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Current assets
Deposits and investments 11,761,352$ 1,438,222$ 1,723,538$ 2,032,439$ 16,955,551$ 7,774,645$
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$39,328 for water and wastewater and
$406 for drainage utility 2,862,995 80,778 95,087 27,551 3,066,411 138,269
Accrued interest receivable 9,592 - - - 9,592 2,004
Prepaids and deposits 3,648 - 8,779 14,461 26,888 -
Inventory 98,891 - 124,586 105,190 328,667 -
Total unrestricted current assets 14,736,478 1,519,000 1,951,990 2,179,641 20,387,109 7,914,918
Restricted assets
W&WW impact fees - deposits and investments 2,401,217 - - - 2,401,217 -
Revenue bond reserve for debt service 309,595 - - - 309,595 -
Total restricted assets 2,710,812 - - - 2,710,812 -
Total current assets 17,447,290 1,519,000 1,951,990 2,179,641 23,097,921 7,914,918
Non-current assets
Bond issuance cost 56,836 - 71,500 10,130 138,466 -
Net OPEB asset 91,744 3,939 23,784 5,767 125,234 -
Total non-current assets 148,580 3,939 95,284 15,897 263,700 -
Property, plant, and equipment in service, at cost
Land 1,576,667 559,826 897,520 584,532 3,618,545 -
Building 97,094 - 3,523,732 488,275 4,109,101 -
Equipment 1,002,198 6,400 1,060,518 203,446 2,272,562 8,111,882
Improvements 1,033,401 658,824 8,019,920 8,150,654 17,862,799 -
Construction in progress 1,619,870 - - - 1,619,870 -
Utility system 61,023,478 25,078,805 - - 86,102,283 -
Total property, plant, and equipment in service 66,352,708 26,303,855 13,501,690 9,426,907 115,585,160 8,111,882
Less accumulated depreciation 32,483,765 10,552,663 5,877,632 3,798,827 52,712,887 6,124,135
Net property, plant, and equipment in service 33,868,943 15,751,192 7,624,058 5,628,080 62,872,273 1,987,747
Total non-current assets 34,017,523 15,755,131 7,719,342 5,643,977 63,135,973 1,987,747
Total assets 51,464,813$ 17,274,131$ 9,671,332$ 7,823,618$ 86,233,894$ 9,902,665$
ASSETS
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS – PROPRIETARY FUNDS
SEPTEMBER 30, 2012
(2 of 2)
The Notes to the Basic Financial Statements
are an integral part of these statements.
22
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 2,019,409$ 21,924$ 116,191$ 50,630$ 2,208,154$ 381,943$
Accrued salaries and wages 286,790 32,190 68,272 18,551 405,803 10,992
Current portion of bonds payable 330,000 - 380,000 145,000 855,000 -
Accrued insurance claims - - - - - 836,950
Unearned revenue - - 85,209 - 85,209 -
Accrued interest 14,937 - 38,683 2,693 56,313 -
Total current liabilities 2,651,136 54,114 688,355 216,874 3,610,479 1,229,885
Non-current liabilities
Customer and escrow deposits 1,587,126 - - - 1,587,126 -
Net pension obligation 332,323 37,301 80,653 10,471 460,748 -
Bonds payable 2,870,491 - 6,500,240 443,693 9,814,424 -
Total non-current liabilities 4,789,940 37,301 6,580,893 454,164 11,862,298 -
Total liabilities 7,441,076 91,415 7,269,248 671,038 15,472,777 1,229,885
NET ASSETS
Invested in capital assets,
net of related debt 30,668,452 15,751,192 743,818 5,039,387 52,202,849 1,987,747
Restricted for
Impact fees 2,401,217 - - - 2,401,217 -
Revenue bond reserve for debt service 309,595 - - - 309,595 -
Unrestricted 10,644,473 1,431,524 1,658,266 2,113,193 15,847,456 6,685,033
Total net assets 44,023,737$ 17,182,716$ 2,402,084$ 7,152,580$ 70,761,117 8,672,780$
Reconciliation to government-wide statement of net assets
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 1,855,801
Net assets of business-type activities 72,616,918$
LIABILITIES
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS –
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2012
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
Operating revenues
Water service 10,936,311$ -$ -$ -$ 10,936,311$ -$
Reclaimed water service 223,484 - - - 223,484 -
Wastewater service 6,269,741 - - - 6,269,741 -
Drainage fees - 705,473 - - 705,473 -
Recreation fees - - - 442,873 442,873 -
Insurance premiums - - - - - 5,216,280
Service fees and miscellaneous 1,008,428 - 4,335,151 1,598,999 6,942,578 733,270
Total operating revenues 18,437,964 705,473 4,335,151 2,041,872 25,520,460 5,949,550
Operating expenses
General and administrative 474,381 - - - 474,381 1,099,649
Water production 6,471,802 - - - 6,471,802 -
Water distribution 867,083 - - - 867,083 -
Utility engineering 291,176 - - - 291,176 -
Wastewater collection and treatment 2,688,988 - - - 2,688,988 -
Nondepartmental 3,523,182 - - - 3,523,182 -
Geographic information systems 451,997 - - - 451,997 -
Service center 1,056,115 - - - 1,056,115 -
Drainage - 604,994 - - 604,994 -
Recreation classes - - - 423,926 423,926 -
Golf course - - 1,516,680 - 1,516,680 -
Pro shop - - 423,371 - 423,371 -
Food and beverage - - 1,399,628 - 1,399,628 -
Conference center - - 261,144 - 261,144 -
Cart operations - - 191,808 - 191,808 -
Texas Star Sports Complex - - - 1,275,994 1,275,994 -
Arbor Daze - - - 57,712 57,712 -
Insurance costs - - - - - 4,676,729
Depreciation 1,741,767 678,623 409,819 315,931 3,146,140 791,586
Amortization 11,472 - 49,084 11,749 72,305 -
Total operating expenses 17,577,963 1,283,617 4,251,534 2,085,312 25,198,426 6,567,964
Operating income (loss)860,001 (578,144) 83,617 (43,440) 322,034 (618,414)
Nonoperating revenues (expenses)
Gain (loss) on sale of capital assets (44,594) - 11,258 (18) (33,354) 26,144
Investment income 50,960 1,692 5,908 2,192 60,752 25,411
Interest expense (105,785) - (313,949) (23,119) (442,853) -
Total nonoperating revenues
(expenses), net (99,419) 1,692 (296,783) (20,945) (415,455) 51,555
Income (loss) before contributions
and transfers 760,582 (576,452) (213,166) (64,385) (93,421) (566,859)
Developer contributions 368,883 - - - 368,883 -
Transfers in - - 273,672 - 273,672 450,000
Transfers out (1,154,090) (35,211) - - (1,189,301) -
Net income (loss)(24,625) (611,663) 60,506 (64,385) (640,167) (116,859)
Net assets, beginning of year 44,048,362 17,794,379 2,341,578 7,216,965 8,789,639
Net assets, end of year 44,023,737$ 17,182,716$ 2,402,084$ 7,152,580$ 8,672,780$
Reconciliation to government-wide statement of net assets
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 87,991
Change in net assets of business-type activities (552,176)$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2012
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
OPERATING ACTIVITIES
Cash received from customers 18,539,611$ 863,542$ 4,375,565$ 2,060,331$ 25,839,049$ 5,947,034$
Cash payments to suppliers
for goods and services (12,228,415) (282,771) (2,289,264) (1,316,878) (16,117,328) (5,062,292)
Cash payments to employees
for services (2,778,118) (310,089) (1,495,984) (454,467) (5,038,658) (81,850)
Net cash provided by
operating activities 3,533,078 270,682 590,317 288,986 4,683,063 802,892
NONCAPITAL FINANCING ACTIVITIES
Transfer in - - 273,672 - 273,672 450,000
Transfer out (1,154,090) (35,211) - - (1,189,301) -
Net cash provided by (used in)
noncapital financing activities (1,154,090) (35,211) 273,672 - (915,629) 450,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees 225,485 - - - 225,485 -
Interest paid on bonds (276,400) - (315,336) (23,644) (615,380) -
Principal paid on bonds (3,485,000) - (370,000) (140,000) (3,995,000) -
Purchase of capital assets (1,188,853) - (229,400) - (1,418,253) (471,912)
Proceeds from bond issuances 3,340,000 - - - 3,340,000 -
Proceeds from sale of capital assets 53,934 - 11,258 553 65,745 29,388
Net cash used in capital
and related financing activities (1,330,834) - (903,478) (163,091) (2,397,403) (442,524)
INVESTING ACTIVITIES
Proceeds from sale of investment securities 4,861 - 578 - 5,439 1,230
Interest received on investments 50,960 3,055 5,911 2,192 62,118 25,308
Net cash provided by investing
activities 55,821 3,055 6,489 2,192 67,557 26,538
Net change in cash and cash
equivalents 1,103,975 238,526 (33,000) 128,087 1,437,588 836,906
Cash and cash equivalents,
beginning of year 13,368,189 1,199,696 1,756,538 1,904,352 18,228,775 6,937,739
Cash and cash equivalents, end of year 14,472,164$ 1,438,222$ 1,723,538$ 2,032,439$ 19,666,363$ 7,774,645$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – CONTINUED
YEAR ENDED SEPTEMBER 30, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
25
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Reconciliation of operating income (loss)
to net cash provided by
operating activities
Operating income (loss)860,001$ (578,144)$ 83,617$ (43,440)$ 322,034$ (618,414)$
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities
Depreciation and amortization 1,753,239 678,623 458,903 327,680 3,218,445 791,586
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue 65,103 158,069 24,837 18,461 266,470 (2,517)
Prepaids and deposits 738 - 774 1,681 3,193 -
Inventory (13,776) - (18,680) (25,476) (57,932) -
Net OPEB asset (292) (42) (86) (9) (429) -
Net pension obligation 27,839 3,247 7,528 419 39,033 -
Accounts payable 789,078 9,616 13,925 9,694 822,313 332,965
Accrued salaries and
wages 14,604 (687) 3,922 (24) 17,815 466
Accrued insurance claims - - - - - 298,806
Customer and escrow
deposit 36,544 - - - 36,544 -
Deferred revenue - - 15,577 - 15,577 -
Net cash provided by
operating activities 3,533,078$ 270,682$ 590,317$ 288,986$ 4,683,063$ 802,892$
Noncash financing activities
Developer contributed assets 368,883$ -$ -$ -$ 368,883$
Reconciliation of cash to balance sheet:
Cash - current 11,761,352$ 1,438,222$ 1,723,538$ 2,032,439$ 16,955,551$
Cash - restricted 2,710,812 - - - 2,710,812
Cash and cash equivalents 14,472,164$ 1,438,222$ 1,723,538$ 2,032,439$ 19,666,363$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET ASSETS – FIDUCIARY FUNDS
SEPTEMBER 30, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
Agency OPEB
Funds Trust Fund
ASSETS
Investments at fair value
Money market account 1,934,418$ 81,660$
Fixed income funds - 666,462
Equity funds - 1,082,818
Total assets 1,934,418$ 1,830,940
LIABILITIES
Due to other entities 1,933,917$ 400
Refunds payable 501 -
Total liabilities 1,934,418$ 400
NET ASSETS
Held in trust for OPEB 1,830,540$
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
OPEB TRUST FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2012
The Notes to the Basic Financial Statements
are an integral part of these statements.
27
OPEB
Trust Fund
ADDITIONS
Employer contributions 868,175$
Other contributions 235,113
Investment income
Net increase in fair value of investments 212,256
Less: investment expense (8,144)
Net investment earnings 204,112
Total additions 1,307,400
DEDUCTIONS
Insurance claims 611,115
Administrative expenses 87,373
Total deductions 698,488
Change in net assets 608,912
Net assets - beginning 1,221,628
Net assets - ending 1,830,540$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
28
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (City) was incorporated on February 24, 1953. The City operates
under a Council-Manager form of government and provides the following services as
authorized by its charter: general government, police and fire protection, emergency
ambulance service, road and traffic signal maintenance, water and wastewater
operations, drainage system, parks and recreational facilities, courts, library services,
planning land use, building inspection, and traffic control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally
accepted in the United States of America (GAAP) applicable to state and local
governments. GAAP for local governments include those principles prescribed by the
Governmental Accounting Standards Board (GASB), the American Institute of Certified
Public Accountants in the publication entitled Audits of State and Local Governmental
Units, and by the Financial Accounting Standards Board (when applicable). Private-
sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance
of the GASB. Governments also have the option of following subsequent private-sector
guidance for their business-type activities and enterprise, subject to the same limitation.
The City has elected not to follow subsequent private-sector guidance.
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
29
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Financial Reporting Entity – Continued
Blended Component Units – Continued
Upon dissolution of the Corporation or the District, the entity’s assets will be
distributed to the City. Each component unit provides all of its services to the City.
The financial statements for the units were obtained from the respective Boards of
Directors. Financial information for both entities may be obtained from the City.
The Tax Increment Reinvestment Zone #3 - Glade Parks (TIRZ #3) is also reflected
as a blended component unit of the City and is reflected in the financial statements
as a special revenue fund. TIRZ #3 was created to stimulate development and
enhance the value of taxable real property within the boundaries of the zone.
Tarrant County and Tarrant County College District are taxing entities participating in
TIRZ #3. The Board of Directors of TIRZ #3 is substantially the same as the City
Council. The Board is comprised of seven directors, four of whom are council
members which constitutes a voting majority of the City Council. The remaining
three board members are representatives selected by the other participating taxing
entities and the Tarrant County Hospital District.
Basis of Presentation
The government-wide financial statements (the statement of net assets 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
30
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation - Continued
Fund Financial Statements
The City segregates transactions related to certain functions or activities in separate
funds in order to aid financial management and to demonstrate compliance with
various legal provisions. Separate statements are presented for governmental
funds, proprietary funds, and fiduciary funds, even though the latter are excluded
from the government-wide financial statements. These statements present each
major fund as a separate column on the fund financial statements; all non-major
funds are aggregated and presented in a single column.
Governmental funds are those funds through which most governmental functions are
typically financed. The measurement focus of governmental funds is on the sources,
uses, and balances of current financial resources. The City has presented the
following major governmental funds:
General Fund
The General Fund is the main operating fund of the City. This fund is used to
account for all financial resources not accounted for in other funds. All general
tax revenues and other receipts that are not restricted by law or contractual
agreement to some other fund are accounted for in this fund. General operating
expenditures, fixed charges, and capital improvement costs that are not paid
through other funds are paid from the General Fund.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of financial
resources for the payment of principal, interest, and related costs on general
long-term debt paid primarily from property taxes levied by the City. The fund
balance of the Debt Service Fund is restricted exclusively for debt service
expenditures.
Car Rental Tax Fund
The Car Rental Tax Fund is used to account for revenues received from the
collection of short-term motor vehicle rental taxes and the expenditures thereof.
Per contractual agreement, revenues are shared with the cities of Dallas and Fort
Worth. The City’s portion of the revenues is used primarily for debt reduction,
one-time capital projects, and to maintain the property tax rate.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
31
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Half-Penny Sales Tax Fund
The Half-Penny Sales Tax Fund is used to account for the sales tax revenues
and expenditures of the Euless Development Corporation, a component unit of
the City of Euless. The expenditures of the half-penny sales tax can only be
spent on parks, library, debt service, and economic development activities within
the City of Euless.
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 Assets. 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 three fiduciary funds in the financial statements. The Stars
Center Escrow Fund accounts for investments that will be held on behalf of the
Dallas Stars until the debt issued for the specific purpose of purchasing the Star
Center is fully repaid. The Glade Parks Escrow agency fund accounts for developer
funds deposited with the City for contractor payments for public improvements in the
Glade Parks Development on behalf of the developer. Upon satisfactory completion,
any excess funds will be returned to the developer or a designee. The OPEB Trust
Fund accounts for the accumulation and use of resources for benefit payments
related to post-employment health care.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
32
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services
and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. Operating expenses for the proprietary funds include the cost of
personnel and contractual services, supplies, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to
when revenues and expenditures are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of the measurement
made, regardless of the measurement focus applied.
The government-wide statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and
liabilities (whether current or noncurrent) are included on the statement of net assets and
the operating statements present increases and decreases in total net assets. Under
the accrual basis of accounting, revenues are recognized when earned, including
unbilled water, wastewater, and drainage services which are accrued. Expenses are
recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial
resources measurement focus and are accounted for using the modified accrual basis of
accounting. Under the modified accrual basis of accounting, revenues are recognized
when susceptible to accrual; i.e., become both measurable and available. “Measurable”
means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. The City considers property taxes and other revenues as available
if they are collected within 60 days of year end. Expenditures are recorded when the
related fund liability is incurred. However, debt service expenditures, as well as
expenditures related to compensated absences and other long-term liabilities are
recorded only when payment is due.
The significant revenues susceptible to accrual are property taxes, franchise fees,
licenses, charges for service, interest income, and intergovernmental revenues. Sales
taxes collected and held by the state at year end on behalf of the City are also
recognized as revenue. All other governmental fund revenues are recognized when
received.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
33
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash accounts or individual fund investment accounts. Related interest
income is allocated to the various funds based primarily on ownership by each fund of
specific investments. Cash equivalents consist of highly-liquid investments with original
maturities of three months or less.
For purposes of the statement of cash flows, the City considers all highly liquid
investments to be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. All other investments are reported at
fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its
agencies; obligations of the State of Texas or its agencies; and certain other obligations,
repurchase agreements, money market mutual funds, and certificates of 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 revenue. Property taxes for cities, including those applicable to debt
service, are limited by the Texas Constitution to $2.50 per $100 of assessed valuation.
The City's current tax rate is $.4700 per $100 of assessed valuation ($.4700 per $100
last year) and assessed valuation is approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as consumed, are stated at
cost (first-in, first-out method) for the General Fund and Enterprise Funds. Inventories
consist primarily of expendable supplies for the General Fund and merchandise for
resale for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide
services occurring in the subsequent fiscal year.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
34
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Interfund Receivables and Payables
Any residual balances outstanding between the governmental activities and business-
type activities are reported in the government-wide financial statements as “internal
balances.”
Transactions Between Funds
Interfund services provided and used are accounted for as revenues and expenditures
or expenses. Transactions that constitute reimbursements to a fund for expenditures or
expenses initially made from it that are properly applicable to another fund, are recorded
as expenditures or expenses in the reimbursing fund and as a reduction of expenditures
or expenses in the fund reimbursed. All other interfund transactions are recorded as
transfers.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are
reported in the applicable governmental or business-type activities columns in the
government-wide financial statements and in the fund financial statements for
proprietary funds. All capital assets are recorded at historical cost or estimated historical
cost if actual historical cost is not available. Donated assets are recorded at fair market
value on the date donated. Repairs and maintenance are recorded as expenses.
Renewals and betterments are capitalized. Interest has not been capitalized during the
construction period on property, plant, and equipment.
Assets capitalized have an original cost of $5,000 or more and over one year of useful
life. Depreciation has been calculated on each class of depreciable property using the
straight-line method. Estimated useful lives are as follows:
Buildings 33 1/3 years
Water and wastewater system 33 1/3 years
Storm drainage system 33 1/3 years
Infrastructure 7 - 40 years
Machinery and equipment 5 - 15 years
Improvements 25 years
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. The
City's policy is to pay the employee accumulated vacation upon termination. The City
does not pay employees for accumulated sick leave upon termination. Vacation pay
accrued in the proprietary fund financial statements is reported as accrued salaries and
wages (a current liability). Compensated absences are recorded in governmental funds
as they mature (i.e. as taken). The liability for governmental fund compensated
absences is typically liquidated in the general fund, the juvenile case fund, the half-
penny sales tax fund, and the crime control and prevention district fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
35
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
General Fund
Debt Service
Fund
Car Rental
Tax Fund
Half-Penny
Sales Tax
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Nonspendable 28,796$ -$ -$ 5,163$ 640$ 34,599$
Restricted for
Debt service - 794,584 - 913,562 159,825 1,867,971
Capital projects - - - - 606,505 606,505
Developer agreements 1,428,599 1,428,599
Court technology 258,765 - - - - 258,765
Juvenile case processing - - - - 106,374 106,374
PEG fees - - - - 158,603 158,603
Historical preservation - - - - 1,245 1,245
Assigned
Capital projects - - - - 10,140,282 10,140,282
Betterments 42,887 - - - - 42,887
Emergency/radio systems 47,230 - - - - 47,230
Tourism and conference facilities - - - - 201,685 201,685
Parks, library, and economic
development - - - 1,821,655 - 1,821,655
Police department - - - - 650,393 650,393
Grants - - - - 77,327 77,327
Other 20,979 - 2,911,521 - - 2,932,500
Unassigned 8,913,078 - - - - 8,913,078
Total 9,311,735$ 794,584$ 2,911,521$ 2,740,380$ 13,531,478$ 29,289,698$
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
36
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 court technology represents funds collected from a court
technology fee that must be used to upgrade court systems.
d. Restricted for developer agreements represents the portion of fund equity
that must be used for future improvements to various development areas
within the City.
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. This
intent can be expressed by the City Council or through the City Council delegating
this responsibility to the City Manager. This classification also includes the remaining
positive fund balance for all governmental funds except for the General Fund. The
City has recorded the following assignments at year-end:
a. Assigned for capital projects represents revenue sources that are to be used for
capital projects for the City.
b. Assigned for betterment represents funds donated by citizens that are to be used
for the betterment of the community.
c. Assigned for emergency/radio systems represents funding that is to be used to
upgrade emergency and radio systems.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
37
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
d. Assigned for tourism and conference center 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.
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 Assets
Net assets represent the difference between assets and liabilities of governmental and
business-type activities and proprietary funds. Net assets invested in capital assets, net
of related debt, consist of capital assets, net of accumulated depreciation, reduced by
the outstanding balances of any borrowing used for the acquisition, construction, or
improvements of those assets, plus unspent debt proceeds. Net assets are reported as
restricted when there are limitations imposed on their 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
38
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures
As of September 30, 2012, the City’s portfolio contained the following investments:
% of Rating
Book Value Fair Value Portfolio WAM Rating Agency
Overnight pools
TexPool 16,312,680$ 16,312,680$ 25.51% 40 AAAm S&P
TexStar 14,677,059 14,677,059 22.95% 46 AAAm S&P
LOGIC 71 71 0.00% 48 AAAm S&P
Bank of Texas 16,041 16,041 0.03% 39 AAAm S&P
Total overnight 31,005,851 31,005,851 48.48%
Investment securities
FFCB 4,679,375 4,681,142 7.32% 29 AA+/Aaa S&P/Moody's
FHLB 18,050,066 18,060,397 28.24% 81 AA+/Aaa S&P/Moody's
FHLMC 6,175,091 6,190,716 9.68% 51 AA+/Aaa S&P/Moody's
FNMA 3,014,981 3,016,120 4.72% 18 AA+/Aaa S&P/Moody's
FAMCA 1,000,000 1,000,320 1.56% 7
Total investment securities 32,919,513 32,948,695 51.52%
Total portfolio 63,925,364$ 63,954,546$ 100.00% 186
Investment Type
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, 2012. At year-end, the carrying amount of the City’s
deposits was a credit balance of $12,726, with a bank balance of $722,832.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
39
NOTE 2. DEPOSITS AND INVESTMENTS
GASB 40 Disclosures – Continued
Deposits – Continued
The total bank balance is covered by Federal Depository Insurance Corporation (FDIC)
insurance. The additional collateral is held by The Federal Reserve Bank in the City’s
name under a joint safekeeping agreement with Frost National Bank. The market value
of the collateral at the close of the fiscal year was $1,876,281.
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, 2012, the City did not own any types of
securities other than those permitted by statute.
The City’s investment pools are 2a7-like pools. A 2a7-like pool is one which is not
registered with the Securities and Exchange Commission (SEC) as an investment
company, but nevertheless has a policy that it will, and does, operate in a manner
consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. This type
of pool uses amortized investment costs rather than market values to compute
participant share values. Furthermore, the pools in which the City is currently
participating seek to maintain a stable $1 net asset value per share or unit. Accordingly,
the fair value of the City’s position in these pools is substantially the same as the market
value of the shares in each of the pools.
TexPool falls under the purview of the Texas Comptroller of Public Accounts
(Comptroller) who is responsible for oversight of TexPool operations. Federated
Investors is responsible for managing pool assets and day-to-day operations. TexStar is
duly chartered and administered by First Southwest Asset Management, Inc. and
JPMorgan Chase Investment Management, Inc. TexStar has established a governing
board that is partially comprised of pool participants. Duties of the governing board
include oversight responsibility. The Comptroller and the governing board exercise
oversight of the pools’ activities via daily, weekly, and monthly reporting requirements.
Additionally, per the requirements of the Public Funds Investment Act (PFIA), all pools
will maintain an AAA or equivalent rating from at least one nationally recognized rating
agency. The PFIA also requires an annual examination of the financial statements of
the pools by an independent certified public accounting firm. In connection with the
financial audit, a compliance audit of management controls on investments and
adherence to the investment policies is also required.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
40
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Interest Rate Risk
In compliance with the City’s Investment Policy, as of September 30, 2012, the City
minimized the interest rate risk, the risk relating to the decline in market value of
securities in the portfolio, by: limiting the weighted average maturity to 365 days and the
stated maturity to two years or less, with the exception of securities purchases related to
reserve funds; structuring the investment portfolio so that securities matured to meet
cash requirements for ongoing operations, thereby avoiding the need to sell securities in
the secondary market prior to maturity; monitoring credit ratings of portfolio positions to
assure compliance with rating requirements imposed by the PFIA; and investing
operating funds primarily in money market mutual funds, government investment pools,
and shorter-term securities with a weighted average maturity of less than 100 days.
The following table details the maturity schedule for the City’s investments as of
September 30, 2012.
% of
Maturity Schedule Book Value Fair Value Portfolio
Overnight 31,005,851$ 31,005,851$ 48.48%
up to 6 months 1,550,184 1,551,847 2.43%
6 to 9 months 7,999,375 8,002,735 12.51%
9 to 12 months 10,015,047 10,019,210 15.67%
12 to 18 months 12,454,907 12,467,406 19.49%
18 to 24 months - - 0.00%
Over 24 months 900,000 907,497 1.42%
Total 63,925,364$ 63,954,546$ 100.00%
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2012, the City
minimized credit risk losses due to default of a security issuer or backer, by: limiting
investments to the safest types of securities; primarily investing in U.S. Agency Bonds
rated AA+ by Standard & Poor’s; pre-qualifying financial institutions, brokers/dealers,
and advisors with which the City will do business; and diversifying the investment
portfolio so that the potential losses on securities are minimized.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
41
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
GASB 40 Disclosures – Continued
Credit Risk – Continued
Custodial credit risk – the risk that a government will not be able to recover
(a) deposits if the depository financial institution fails or (b) the value of investment or
collateral securities that are in the possession of an outside party if the counterparty to
the investment or deposit transaction fails. To minimize such risk, the City requires
collateralization of deposits in excess of FDIC coverage, utilizes the delivery vs. payment
method for investment purchases, and contracts with a third-party safekeeping agent.
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, 2012, 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
42
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2012, was as follows:
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land 26,349,839$ 4,249$ -$ -$ 26,354,088$
Construction in progress 3,194,452 1,478,799 - (602,125) 4,071,126
Total capital assets
not being depreciated 29,544,291 1,483,048 - (602,125) 30,425,214
Capital assets being depreciated
Buildings 54,745,286 - (59,400) - 54,685,886
Improvements other than buildings 5,224,382 74,157 - 5,500 5,304,039
Infrastructure 64,094,327 1,864,103 - 596,625 66,555,055
Machinery and equipment 7,650,039 274,890 (861,256) - 7,063,673
Total capital assets
being depreciated 131,714,034 2,213,150 (920,656) 602,125 133,608,653
Less accumulated depreciation
Buildings (14,533,108) (1,593,666) 58,768 - (16,068,006)
Improvements other than buildings (2,771,500) (182,277) - - (2,953,777)
Infrastructure (27,711,832) (1,883,006) - - (29,594,838)
Machinery and equipment (4,748,030) (418,026) 815,201 - (4,350,855)
Total accumulated depreciation (49,764,470) (4,076,975) 873,969 - (52,967,476)
Total capital assets being
depreciated, net 81,949,564 (1,863,825) (46,687) 602,125 80,641,177
Total governmental fund capital
assets, net 111,493,855 (380,777) (46,687) - 111,066,391
Internal service funds
Capital assets being depreciated
Machinery and equipment 7,824,437 471,913 (184,468) - 8,111,882
Total internal service assets
being depreciated 7,824,437 471,913 (184,468) - 8,111,882
Less accumulated depreciation
Machinery and equipment (5,513,774) (791,585) 181,224 - (6,124,135)
Total internal service funds
capital assets, net 2,310,663 (319,672) (3,244) - 1,987,747
Total governmental activities
capital assets, net 113,804,518$ (700,449)$ (49,931)$ -$ 113,054,138$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
43
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 3,365,929$ 252,616$ -$ -$ 3,618,545$
Construction in progress 1,525,832 353,783 - (259,745) 1,619,870
Total assets not being depreciated 4,891,761 606,399 - (259,745) 5,238,415
Capital assets being depreciated
Buildings 4,278,066 17,500 (186,465) - 4,109,101
Equipment 2,266,996 101,876 (96,310) - 2,272,562
Improvements 17,862,799 - - - 17,862,799
Utility system 85,013,233 829,305 - 259,745 86,102,283
Total capital assets being
depreciated 109,421,094 948,681 (282,775) 259,745 110,346,745
Less accumulated depreciation
Buildings (1,745,587) (128,360) 87,937 - (1,786,010)
Equipment (1,768,187) (137,821) 95,736 - (1,810,272)
Improvements (6,645,914) (651,956) - - (7,297,870)
Utility system (39,590,732) (2,228,003) - - (41,818,735)
Total accumulated depreciation (49,750,420) (3,146,140) 183,673 - (52,712,887)
Total capital asssets being
depreciated, net 59,670,674 (2,197,459) (99,102) 259,745 57,633,858
Total business-type activities
capital assets, net 64,562,435$ (1,591,060)$ (99,102)$ -$ 62,872,273$
Depreciation expense was charged as direct expense to programs of the primary government as follows:
Governmental activities
General administrative 1,099,415$
Public safety 681,090
Development services 330,586
Culture and recreation 775,846
Highways and streets 1,981,623
Total depreciation expense - governmental activities 4,868,560$
Business-type activities
Water and wastewater 1,741,767$
Drainage utility 678,623
Golf course 409,819
Other 315,931
Total depreciation expense - business-type activities 3,146,140$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
44
NOTE 3. CAPITAL ASSETS – CONTINUED
Outstanding commitments at September 30, 2012, under authorized construction contracts,
were approximately $968,845. These outstanding commitments are to be financed by
available deposit and investment balances, which include proceeds from previous bond
issuances.
NOTE 4. LONG-TERM DEBT
At September 30, 2012, bonds payable consisted of the following individual issues:
Governmental Business-type
$5,490,000 Series 2003, General Obligation Refunding Bonds, dated
January 15, 2003, due in annual installments through 2016, bearing
interest rates of 3.00% to 4.00%.1,550,000$ -$
$11,095,000 Series 2004, General Obligation Refunding Bonds, dated
February 24, 2004, due in annual installments through 2027, bearing
interest rates of 2.00% to 4.50%.- 8,165,000
$3,200,000 Series 2004A, General Obligation Bonds, dated June 15,
2004, due in annual installments through 2024, bearing interest rates of
3.50% to 5.00%. 145,000 -
$4,720,000 Series 2004, Revenue Certificates of Obligation, dated June
15, 2004, due in annual installments through 2024, bearing interest rates
of 3.50% to 5.25%. 195,000 -
$2,145,000 Series 2004, Waterworks and Sewer System Revenue
Bonds, dated June 15, 2004, due in annual installments through 2024,
bearing interest rates of 3.50% to 5.25%.- 95,000
$13,900,000 Series 2005, General Obligation Refunding Bonds, dated
March 1, 2005, due in annual installments through 2020, bearing interest
rates of 2.40% to 5.00%. 9,280,000 -
$8,110,000 Series 2010, Taxable General Obligation Refunding Bonds,
dated August 15, 2010, due in annual installments through 2025, bearing
interest rates of 0.68% to 4.40%. 7,155,000 -
$6,575,000 Series 2011, General Obligation Refunding Bonds, dated
January 15, 2011, due in annual installments through 2021, bearing
interest rates of 2.00% to 4.00%.6,575,000 -
$3,035,000 Series 2011, Revenue Certificates of Obligation, dated
January 15, 2011, due in annual installments through 2030, bearing
interest rates of 3.00% to 4.25%.3,035,000 -
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
45
NOTE 4. LONG-TERM DEBT – CONTINUED
Governmental Business-type
$3,340,000 Series 2012, Waterworks and Sewer System Revenue
Refunding Bonds, dated March 29, 2012, due in annual installments
through 2024, bearing interest at 2.03%.- 3,340,000
$3,785,000 Series 2012, Sales Tax Revenue Refunding Bonds, dated
January 4, 2012, due in annual installments through 2019, bearing
interest at 1.43%.2,910,000 -
$5,955,000 Series 2012, General Obligation Refunding Bonds, dated
December 1, 2011, due in annual installments through 2024, bearing
interest rates of 2.00% to 4.00%.5,210,000 -
36,055,000$ 11,600,000$
The following is a summary of long-term debt transactions of the City for the year ended
September 30, 2012:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds 29,235,000$ 5,955,000$ (5,275,000)$ 29,915,000$ 2,780,000$
Certificates of obligation 6,590,000 - (3,360,000) 3,230,000 320,000
Sales tax revenue bonds 3,715,000 3,785,000 (4,590,000) 2,910,000 860,000
Capital leases 356,896 - (84,372) 272,524 87,527
Deferred loss on debt refunding (962,988) (485,384) 200,031 (1,248,341) (151,452)
Premium on bonds 684,073 260,434 (109,459) 835,048 88,781
Discount on bonds (94,578) - 12,040 (82,538) (6,677)
Net pension obligation 2,164,167 205,731 - 2,369,898 -
Compensated absences 1,611,411 1,353,746 (1,278,585) 1,686,572 168,657
Total governmental activities 43,298,981 11,074,527 (14,485,345) 39,888,163 4,146,836
Business-type activities
Water and sewer revenue bonds 3,580,000 3,340,000 (3,485,000) 3,435,000 330,000
General obligation refunding bonds 8,675,000 - (510,000) 8,165,000 525,000
Deferred loss on debt refunding (696,195) (241,244) 127,018 (810,421) (49,783)
Discount on bonds (129,254) - 9,099 (120,155) 9,098
Net pension obligation 421,715 39,033 - 460,748 -
Compensated absences 243,991 223,154 (212,599) 254,546 25,455
Total business-type activities 12,095,257 3,360,943 (4,071,482) 11,384,718 839,770
Total primary government 55,394,238$ 14,435,470$ (18,556,827)$ 51,272,881$ 4,986,606$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
46
NOTE 4. LONG-TERM DEBT – CONTINUED
The liability for the governmental fund net pension obligation is typically liquidated in the
general fund, the juvenile case fund, the half-penny sales tax fund, and the crime control
and prevention district fund.
Defeased Debt Outstanding
In fiscal year 2012, the City executed a current refunding of $400,000 series 2001
general obligation bonds, $270,000 series 2001 certificates of obligation, and $40,000
series 2006 general obligation refunding bonds and an advance refunding of $2,905,000
series 2004 certificates of obligation and $2,110,000 series 2004A general obligation
bonds. The bonds and certificates were refunded with the issuance of $5,955,000 of
series 2012 general obligation refunding bonds dated December 1, 2011 bearing stated
interest rates ranging from 2.00% to 4.00%. The net proceeds from the refunding issue
along with a cash contribution totaling $6,225,431 were used to purchase state and local
government securities (SLGS). Those securities were deposited in an irrevocable trust
with an escrow agent to provide for all future debt service payments on the current
(February) and advance refunded debt. As a result, the refunded debt is considered
defeased and the liability has been removed from the City’s government-wide financial
statements.
The refunding resulted in a difference between the reacquisition price and net carrying
amount of the old debt of $410,734 which is reported in the accompanying financial
statements as a reduction of bonds payable and is amortized annually through the year
2024 using the effective interest method. As a result of the refunding, the City reduced
its total debt service requirements over the next 12 years by $562,515, which resulted in
an economic gain (the difference between the present value of the debt service
payments on the old and new debt) of $455,005.
Also in fiscal year 2012, the City executed a current refunding of $1,990,000 series 2006
water and wastewater revenue refunding bonds and an advance refunding of
$1,405,000 series 2004 water and wastewater revenue bonds. The bonds were
refunded with the issuance of $3,340,000 of series 2012 water and wastewater
refunding bonds dated March 29, 2012 bearing an interest rate of 2.03%. The net
proceeds from the refunding issue along with a cash contribution totaling $3,557,775
were used to purchase SLGS. Those securities were deposited in an irrevocable trust
with an escrow agent to provide for all future debt service payments on the current
(April) and advance refunded debt. As a result, the refunded debt is considered
defeased and the liability has been removed from the financial statements.
The refunding resulted in a difference between the reacquisition price and net carrying
amount of the old debt of $241,244 which is reported in the accompanying financial
statements as a reduction of bonds payable and is amortized annually through the year
2024 using the effective interest method. As a result of the refunding, the City reduced
its total debt service requirements over the next 12 years by $334,844, which resulted in
an economic gain (the difference between the present value of the debt service
payments on the old and new debt) of $287,279.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
47
NOTE 4. LONG-TERM DEBT – CONTINUED
Defeased Debt Outstanding – Continued
In fiscal year 2012, the Euless Development Corporation (EDC), a blended component
unit of the City, also executed a current refunding of its outstanding debt of $2,655,000
series 2002 sales tax revenue bonds and $1,060,000 series 2006 sales tax revenue
refunding bonds. The bonds were refunded with a single issue of $3,785,000 of series
2012 sales tax revenue refunding bonds dated January 12, 2012 bearing an interest rate
of 1.43%. The net proceeds from the refunding issue along with a cash contribution
totaling $3,834,427 provided sufficient resources for the completion of the refunding
transaction.
The EDC refunding resulted in a difference between the reacquisition price and net
carrying amount of the old debt of $74,650 which is reported as a reduction of bonds
payable and is amortized annually through the year 2019 using the effective interest
method. The refunding was undertaken to reduce total debt service payments over the
next eight years by $225,524 and to obtain an economic savings of $206,480.
All other previously defeased debt has been redeemed.
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to
September 30, 2012, are as follows:
General Obligation Bonds:
Principal Interest Principal Interest Total
2013 2,780,000$ 1,092,050$ 525,000$ 322,475$ 4,719,525$
2014 3,035,000 1,002,179 545,000 304,406 4,886,585
2015 3,135,000 900,084 560,000 285,069 4,880,153
2016 3,255,000 784,324 585,000 264,666 4,888,990
2017 2,970,000 668,599 435,000 245,906 4,319,505
2018-2022 11,730,000 1,687,661 2,465,000 947,284 16,829,945
2023-2027 3,010,000 207,778 3,050,000 355,603 6,623,381
29,915,000$ 6,342,675$ 8,165,000$ 2,725,409$ 47,148,084$
Governmental Activities Business-Type Activities
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
48
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Certificates of Obligation:
Principal Interest Principal Interest Total
2013 320,000$ 118,991$ -$ -$ 438,991$
2014 130,000 111,244 - - 241,244
2015 130,000 107,344 - - 237,344
2016 135,000 103,444 - - 238,444
2017 140,000 99,394 - - 239,394
2018-2022 775,000 421,768 - - 1,196,768
2023-2027 940,000 256,018 - - 1,196,018
2028-2030 660,000 56,688 - - 716,688
3,230,000$ 1,274,891$ -$ -$ 4,504,891$
Governmental Activities Business-Type Activities
Revenue Bonds:
Principal Interest Principal Interest Total
2013 860,000$ 41,613$ 330,000$ 71,697$ 1,303,310$
2014 875,000 29,315 345,000 63,032 1,312,347
2015 890,000 16,803 350,000 56,028 1,312,831
2016 165,000 4,076 355,000 48,924 573,000
2017 45,000 1,716 365,000 41,716 453,432
2018-2022 75,000 1,644 1,415,000 98,964 1,590,608
2023-2027 - - 275,000 8,322 283,322
2,910,000$ 95,167$ 3,435,000$ 388,683$ 6,828,850$
Governmental Activities Business-Type Activities
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
49
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Water and sewer revenue bonds authorized and unissued as of September 30, 2012,
amounted to $1,200,000. The water and sewer bonds were authorized in 1970, and
currently the City Council has no intent to issue these bonds.
Water and sewer revenue bonds and refunding revenue bonds are payable solely from
and equally secured by a first lien on and pledge of the net revenue of the City's
combined waterworks and sanitary sewer system.
In accordance with the water and sewer revenue and refunding bond ordinances, the
following reserves were established:
Reserve for revenue bond debt service – to be used for retirement of the current
portion of principal and interest payments due.
Reserve for emergency – to be used for payment of extraordinary repairs or
replacements to the system necessitated by an emergency for which no other funds
are available.
Revenue bond reserve – a reserve established with a portion of the bond proceeds
pursuant to the revenue bond covenants which will be used for principal and interest
payments in the event of default by the issuer.
Should the reserve for revenue bond debt service and/or the revenue bond reserve
prove deficient, the reserve for emergency shall be used for the purpose of meeting
principal and/or interest requirements of the bonds.
All funding requirements for the above reserves were met at September 30, 2012.
Investments of funds included in the bond reserve and emergency accounts are
restricted to obligations of the United States or its agencies or instrumentalities (except
for mortgage pass-through securities).
Capital Lease
The City has entered into a capital lease agreement under which the related equipment
will become the property of the City when all terms of the lease agreement are met.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
50
NOTE 4. LONG-TERM DEBT – CONTINUED
Capital Lease – Continued
As of September 30, 2012, capital lease annual amortization is as follows:
Governmental
Activities
Business-Type
Activities Total
2013 97,720$ -$ 97,720$
2014 97,719 - 97,719
2015 97,720 - 97,720
Total 293,159 - 293,159
Less interest (20,635) - (20,635)
Present value of
remaining payments 272,524$ -$ 272,524$
Equipment and related accumulated amortization under capital leases are as follows at
September 30, 2012:
Governmental Business-Type
Activities Activities
Equipment 494,322$ -$
Less: accumulated amortization (49,432) -
Net book value 444,890$ -$
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a 50-year contract dated September 25, 1973, with the Trinity River
Authority of Texas (TRA) whereby TRA agrees to provide supplemental water service and
wastewater treatment to the City. 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 this contract approximated $7,894,304 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
$172,578 in the year ended September 30, 2012 and are included as operating expenses of
the water and wastewater fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
51
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES – CONTINUED
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the
operating costs of the City's service center, which provides services to all City departments.
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the
operations of those funds.
Non-major Subtotal
General Debt Service Governmental Governmental
Transfers out
General -$ -$ 71,329$ 71,329$
Car rental tax 1,356,975 196,903 5,086,500 6,640,378
Half penny sales tax 68,115 - 125,000 193,115
Water and wastewater 929,090 - - 929,090
Drainage utility 35,211 - - 35,211
Nonmajor governmental 43,333 96,447 125,115 264,895
Total transfers in 2,432,724$ 293,350$ 5,407,944$ 8,134,018$
Major Governmental
Transfers in
Internal Golf Subtotal Total
Service Course Proprietary Transfers Out
Transfers out
General 225,000$ 15,954$ 240,954$ 312,283$
Car rental tax - - - 6,640,378
Half penny sales tax - - - 193,115
Water and wastewater 225,000 - 225,000 1,154,090
Drainage utility - - - 35,211
Non-major governmental - 257,718 257,718 522,613
Total transfers in 450,000$ 273,672$ 723,672$ 8,857,690$
Major Enterprise
Transfers in
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
52
NOTE 7. INTERFUND TRANSFERS – CONTINUED
Transfers are primarily used to move funds from:
The general fund to the non-major governmental funds to satisfy grant matching
requirements.
The car rental tax fund, the water and wastewater fund, the drainage utility fund, and
non-major governmental funds 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 half-penny sales tax fund to non-major governmental funds for approved capital
projects.
The non-major governmental funds to the debt service fund for the interest payment
on the 2011 certificates of obligation.
The car rental tax fund to the non-major governmental funds to provide funding for
approved capital projects.
The non-major governmental funds to non-major governmental funds for approved
capital projects.
The general fund and water and wastewater fund to the internal service funds for
workers’ compensation and general liability insurance claims.
The general fund to the golf course fund to rebate the City portion of sales taxes
paid.
The non-major government funds to the golf course fund to cover a portion of the
operating and debt costs associated with the conference center.
NOTE 8. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The City participates in the Texas Municipal League Joint Self-Insurance Fund (TMLIF) to
provide both general liability and property insurance.
The City, along with other participating entities, contributes annual amounts determined by
TMLIF management. As claims arise they are submitted to and paid by TMLIF. The City is
not liable for payments beyond their annual contributions to TMLIF and related deductibles.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental
Risk Pool to provide workers’ compensation insurance and effectively discontinued being
self-insured for workers’ compensation claims. This policy has no deductibles, includes all
claims handling, and has a fixed premium.
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were
available to pay claims, claim reserves, and administrative costs of the program. The City
remains liable under its self-insurance program for any claims occurring prior to
October 1, 2005.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
53
NOTE 8. RISK MANAGEMENT – CONTINUED
The City provides employee health insurance coverage on a self-insured basis. Premiums
are paid into a separate insurance fund by other funds, by the City's employees, and by
retirees. The premiums are used to fund claims, administrative costs of the program, and
claim reserves. An excess coverage insurance policy covers individual claims in excess of
$100,000 and aggregate claims in excess of $4,028,430. During fiscal year 2012, the City
and the City's employees contributed approximately $3,739,902 and $1,126,738
respectively, for medical coverage. The City's contributions are accounted for as interfund
services provided and used. Claims liabilities are based on estimates of the ultimate cost of
claims (including future claim adjustment expenses) that have been reported but not settled,
and of claims that have been incurred but not reported, and are accounted for in the
Insurance Internal Service Fund.
Changes in the balances of health and dental claims liabilities for the years ended
September 30 are as follows:
2012 2011
Unpaid claims, beginning of year 493,342$ 546,269$
Incurred claims 4,135,486 2,984,821
Paid claims (3,907,406) (3,037,748)
Unpaid claims, end of year 721,422$ 493,342$
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2012 or any of the three preceding years ended September 30.
NOTE 9. EMPLOYEE RETIREMENT SYSTEM
Plan Description
The City provides pension benefits for all eligible employees through a non-traditional,
joint contributory, hybrid defined-benefit plan in the state-wide Texas Municipal
Retirement System (TMRS), an agent multiple-employer public employee retirement
system. The plan provisions that have been adopted by the City are within the options
available in the governing state statutes of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes
financial statements and required supplementary information (RSI) for TMRS; the report
also provides detailed explanations of the contributions, benefits, and actuarial methods
and assumptions used by TMRS. This report may be obtained by writing to TMRS, P.O.
Box 149153, Austin, TX 78714-9153 or by calling 800-924-8677; in addition, the report is
available on the TMRS website at www.TMRS.com.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
54
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Plan Description – Continued
The plan provisions are adopted by the City Council of the City, within the options
available in the state statutes governing TMRS. Plan provisions for the City were as
follows:
Plan Year 2010 Plan Year 2011
Employee deposit rate 7.00%7.00%
Matching ratio (city to employee)2 to 1 2 to 1
Years required for vesting 5 5
Service retirement eligibility
(expressed as age/years of service)60/5, 0/20 60/5, 0/20
Updated service credit 100% Repeating, Transfers 100% Repeating, Transfers
Annuity increase (to retirees)70% of CPI Repeating 70% of CPI Repeating
Contribution
Under the state law governing TMRS, the contribution rate for each city is determined
annually by the actuary, using the projected unit credit actuarial cost method. This rate
consists of the normal cost contribution rate and the prior service cost contribution rate,
which is calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the portion of an active member's projected benefit allocated
annually; the prior service contribution rate amortizes the unfunded (overfunded)
actuarial liability (asset) over the applicable period for that city. Both the normal cost and
prior service contribution rates include recognition of the projected impact of annually
repeating benefits, such as updated service credits and annuity increases.
The City contributes to the TMRS Plan at an actuarially determined rate. Both the
employees and the City make contributions monthly. Since the City needs to know its
contribution rate in advance for budgetary purposes, there is a one-year delay between
the actuarial valuation that serves as the basis for the rate and the calendar year when
the rate goes into effect. The annual pension cost and net pension obligation/(asset) are
as follows:
Annual required contribution (ARC)4,627,989$
Interest on net pension obligations 193,941
Adjustment to the ARC (160,464)
Annual pension cost (APC)4,661,466
Contributions made 4,416,702
Increase (decrease) in net pension obligation 244,764
Net pension obligation, beginning of year 2,585,882
Net pension obligation, end of year 2,830,646$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
55
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Contribution – Continued
The required contribution rates for fiscal year 2012 were determined as a part of the
December 31, 2009 and 2010 actuarial valuations. Additional information from those
valuations:
December 31, 2009 December 31, 2010 December 31, 2011
Actuarial cost method Projected Unit Credit Projected Unit Credit Projected Unit Credit
Amortization method Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll
Remaining amortization period 28 years - closed 27.2 years - closed 26.1 years - closed
Asset valuation method 10 year Smoothed Market 10 year Smoothed Market 10 year Smoothed Market
Actuarial assumption
Investment rate of return 7.5% 7.0% 7.0%
Projected salary increases Varies by age/service Varies by age/service Varies by age/service
Inflation 3% 3% 3%
Cost of living adjustments 2.1% 2.1% 2.1%
Euless payroll growth assumptions 3% 3% 3%
Valuation date
For cities with repeating features in their plans, changes in the valuation methodology
would likely result initially in higher required contributions and lower funded ratios.
However, the funded ratio should show steady improvement over time. The City has
adopted the updated service credit and annuity increase provisions on an annually
repeating basis. The schedule of funding progress, presented as Required
Supplementary Information immediately following the Notes to the Financial Statements,
presents multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Funded Status and Funding Progress
The funded status of the plan is presented as follows as of actuarial valuation dated
December 31:
Unfunded
Valuation Actuarial Actuarial Actuarial Annual UAAL
Dated Value of Accrued Accrued Liability Fund Covered as % of
December 31 Assets Liability (UAAL) Ratio Payroll Payroll
2009 71,502,626$ 102,289,037$ 30,786,411$ 69.90% 22,810,769$ 134.96%
2010 111,425,190 134,305,874 22,880,684 82.96% 22,615,709 101.17%
2011 121,232,189 142,935,453 21,703,264 84.82% 22,698,035 95.62%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
56
NOTE 9. EMPLOYEE RETIREMENT SYSTEM – CONTINUED
Funded Status and Funding Progress – Continued
Annual pension cost and percentage of pension cost contributed are as follows:
Annual Actual Net Pension
Fiscal Year Pension Contribution Percentage Obligation at
Ended 9/30 Cost Made Contributed Year End
2010 4,525,085$ 2,820,150$ 62% 1,704,935$
2011 4,867,639 3,986,692 82% 2,585,881
2012 4,661,466 4,416,702 95% 2,830,646
Actuarial valuations involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future. Actuarially determined
amounts are subject to continual revision as actual results are compared to past
expectations and new estimates are made about the future.
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS
Postemployment Healthcare Plan
Plan Description
The City adopted the City of Euless Post-Employment Benefits Trust (OPEB Trust) by
passage of Resolution No. 09-1319 on September 8, 2009 which authorized
participation in the PARS Public Agencies Post-Retirement Health Care Plan Trust,
including the City of Euless Public Agencies Post-Retirement Health Care Plan (the
Plan), as part of the City’s Retirement Program. Article III of the Public Agencies Post-
Retirement Health Care Plan Master Plan Document as adopted provides for the
determination of eligibility under the plan to each participating Employer to the extent
provided in the Employer’s applicable policies.
The City’s policies with regard to post-employment healthcare coverage are governed by
the City of Euless Medical and Dental Plan, the City’s group health insurance plan, the
benefits of which are established by management.
The City provides postemployment medical, dental, life, and vision benefits under the
Plan to eligible retirees and dependents qualifying as one of the eligible classes of
dependents as described in the Plan. To be eligible for coverage under the Plan, an
employee must retire with the City of Euless and be eligible for retirement through
TMRS. TMRS retirement eligibility requirements are described in detail in Note 9.
Additionally, written application to enroll himself/herself and all eligible dependents (for
which coverage is elected) in the Plan must be made by the employee prior to or on the
retirement date.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
57
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
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
58
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
and Dental Vision
Retiree only 694.94$ 7.08$
Retiree plus spouse 1,464.60 13.76
Retiree plus family 1,819.90 19.44
Retiree plus children 1,227.78 11.58
Monthly Premiums
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
59
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.
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, 2010, actuarial valuation, the projected unit credit actuarial cost
method was used. The actuarial assumptions include a 7% investment rate of return
(compounded annually net after expenses) and an annual healthcare cost trend rate
(inflation rate) of 7% (5.9% for dental) initially, declining by decrements to an ultimate
rate of 5.9% (4.62% for dental) after nine years (seven years for dental). The UAAL is
being amortized over a thirty-year closed period utilizing a level dollar amortization
method. The remaining amortization period is 27 years.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) for the Plan is calculated based on the ARC, an
amount actuarially determined in accordance with the parameters of GASB 45. The
ARC represents the level of funding that, if paid on an on-going basis, is projected to
cover normal cost each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed thirty years.
For the year ended September 30, 2012, the City has estimated the cost of providing
these benefits through an actuarial valuation as of October 1, 2010. 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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
60
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Annual OPEB Cost and Net OPEB Obligation – Continued
Annual required contribution 860,892$
Interest on net OPEB obligation (44,239)
Adjustments to annual required contribution 49,275
Annual OPEB cost (expense)865,928
Contributions made (868,175)
Change in OPEB obligation (2,247)
Net OPEB obligation (asset) - beginning of year (631,987)
Net OPEB obligation (asset) - end of year (634,234)$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for fiscal year 2012 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
10/1/2009 9/30/2010 7% 661,422$ 149.38% (619,908)$
10/1/2010 9/30/2011 7% 868,574 101.39% (631,987)
10/1/2010 9/30/2012 7% 865,928 100.26% (634,234)
Funding Status and Funding Progress
10/1/2009 9/30/2010 400,005$ 7% 6,651,203$ 6% 6,251,198$
10/1/2010 9/30/2011 828,339 7% 8,368,989 10% 7,540,650
10/1/2010 9/30/2012 1,222,028 7% 8,368,989 15%7,146,961
Actuarial
Valuation
Date
Discount
Rate
Funded
Ratio
Unfunded
AAL (UAAL)
Value of
Assets
Actuarial
Accrued
Liability (AAL)
Fiscal
Year
Ended
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
61
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
As of October 1, 2011, the plan was 85.4% unfunded. The value of assets was $1,222,028,
resulting in an UAAL of $7,146,961.
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, 2012, the following individual funds had an excess of expenditures
over appropriations:
Police drug enforcement special revenue fund $139,449
Public safety grant special revenue fund 51,837
Car rental tax special revenue fund 140,116
NOTE 12. SUBSEQUENT EVENT
Early in fiscal year 2013, the City executed a current refunding in the amount of $1,185,000
of series 2003 general obligation refunding bonds and $7,640,000 of series 2004 general
obligation refunding bonds. The bonds were refunded with a single issue of $8,805,000
series 2012A general obligation refunding bonds dated November 1, 2012 bearing interest
rates ranging from 2.00% to 4.00%. The net proceeds from the refunding issue along with a
cash contribution totaling $9,131,869 provided sufficient resources for the completion of the
refunding transaction. The refunding was undertaken to reduce total debt service payments
over the next fifteen years by $1,268,604 and to obtain an economic gain of $1,067,107.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS FOR PARTICIPATION IN
TEXAS MUNICIPAL RETIREMENT SYSTEM
SEPTEMBER 30, 2012
62
Unfunded
Valuation Actuarial Actuarial Actuarial Annual UAAL
Dated Value of Accrued Accrued Liability Fund Covered as % of
December 31, Assets Liability (UAAL) Ratio Payroll Payroll
2009 71,502,626$ 102,289,037$ 30,786,411$ 69.90% 22,810,769$ 134.96%
2010 111,425,190 134,305,874 22,880,684 82.96% 22,615,709 101.17%
2011 121,232,189 142,935,453 21,703,264 84.82% 22,698,035 95.62%
The Schedule of Funding Progress summarizes the actuarial value of the plan's assets and
actuarial accrued liability as of December 31, 2011 and each of the two preceding calendar
years. The data presented in the schedule was obtained annually from TMRS and was based
upon the annual actuarial valuation for the years represented. The City is financially
responsible for its own portion of the plan. Therefore, the numbers shown above reflect only
the condition of the City's plan.
The schedule is presented to provide a consistent basis for measuring the plan's annual
progress toward funding its actuarial accrued liability in accordance with its actuarial funding
method. The primary measure of funding progress is the plan's funded ratio (i.e. actuarial value
of assets expressed as a percentage of the actuarial accrued liability). An increase in the
funded ratio indicates improvement in the plan's ability to pay all projected benefits as they
come due. The plan is fully funded if the funded ratio is greater than or equal to 100%. During
the year ended December 31, 2011, the plan's funded ratio was 84.82%.
The Schedule of Funding Progress also discloses the relationship between the plan's covered
payroll (i.e. all elements included in compensation paid to active members on which
contributions are based) and the UAAL. This relationship, expressed as a ratio, is a measure of
the significance of the UAAL relative to the capacity to pay all contributions required to fund the
liability. During the year ended December 31, 2011, the plan's ratio of the UAAL to its covered
payroll was 95.26%.
Calendar Years
2012 2011 2010 2009 2008
City's annual contribution stated
as a % of covered payroll 18.73% 17.99% 16.49% 15.19% 14.51%
Note Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2011 and City records.
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS – OPEB TRUST
SEPTEMBER 30, 2012
63
Discount Funded
Rate Ratio
2007 2009 -$ 7% 5,785,752$ 0% 5,785,752$
2009 2010 400,005 7% 6,651,203 6% 6,251,198
2010 2011 828,339 7% 8,368,989 10% 7,540,650
2010 2012 1,222,028 7% 8,368,989 15% 7,146,961
Actuarial
Accrued
Liability (AAL)
Fiscal Year
Ended
September 30
Unfunded AAL
(UAAL)
Actuarial
Valuation
October 1
Actuarial Value
of Assets
The Schedule of Funding Progress summarizes the actuarial value of the plan’s assets and
actuarial accrued liability as of October 1, 2010 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, 2011, the plan’s funded ratio was 15%.
For more information concerning the plan and the actuarial method and assumptions, see Note
10 Other Post Employment Benefits in the Notes to the Financial Statements.
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2012
64
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes 9,074,901$ 9,074,901$ 9,052,879$ (22,022)$
Penalty and interest 70,000 70,000 47,607 (22,393)
Total property tax 9,144,901 9,144,901 9,100,486 (44,415)
Gross receipts tax
Telephone line access fee 380,000 380,000 343,861 (36,139)
Electric company 1,625,000 1,625,000 1,718,881 93,881
Gas company 365,000 365,000 305,703 (59,297)
Cable TV 600,000 600,000 618,482 18,482
City garbage service 182,500 182,500 183,872 1,372
Water and wastewater system 949,728 949,728 929,090 (20,638)
Others 89,200 89,200 68,430 (20,770)
Total gross receipts tax 4,191,428 4,191,428 4,168,319 (23,109)
General sales tax 8,530,627 8,530,627 9,376,363 845,736
Fines and fees
Municipal court fines 2,920,700 2,920,700 2,701,118 (219,582)
Jail income 250,000 250,000 422,510 172,510
Dog licenses and pound fees 7,000 7,000 5,984 (1,016)
Ambulance fees 850,000 850,000 970,260 120,260
Library fees 37,100 37,100 32,514 (4,586)
Zoning fees 13,500 13,500 18,118 4,618
Deferred adjudication fee 150,000 150,000 128,234 (21,766)
Total fines and fees 4,228,300 4,228,300 4,278,738 50,438
Licenses and permits
Building permits 430,000 430,000 778,664 348,664
Miscellaneous permits 196,700 196,700 280,927 84,227
Minimum housing 246,000 246,000 173,874 (72,126)
Total licenses and permits 872,700 872,700 1,233,465 360,765
Investment income 80,000 80,000 47,169 (32,831)
Intergovernmental 357,780 357,780 363,343 5,563
Other revenues
Rental income 516,038 516,038 637,847 121,809
Swimming pools 15,000 15,000 16,239 1,239
Miscellaneous income 200,650 200,650 293,947 93,297
Total other revenues 731,688 731,688 948,033 216,345
Total revenues 28,137,424 28,137,424 29,515,916 1,378,492
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2012
(CONTINUED)
65
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation 2,862,482$ 2,862,482$ 2,714,190$ 148,292$
Development services 712,879 712,879 564,046 148,833
General and administrative 7,515,936 7,515,936 6,794,223 721,713
Highways and streets 1,137,884 1,137,884 861,748 276,136
Public safety 19,484,981 19,484,981 19,120,977 364,004
Total expenditures 31,714,162 31,714,162 30,055,184 1,658,978
Excess (deficiency) of
revenues over expenditures (3,576,738) (3,576,738) (539,268) 3,037,470
Other financing sources (uses)
Transfers in 2,598,369 2,598,369 2,432,724 (165,645)
Transfers out (275,000) (275,000) (312,283) (37,283)
Total other financing
sources (uses), net 2,323,369 2,323,369 2,120,441 (202,928)
Net change in fund balance (1,253,369) (1,253,369) 1,581,173 2,834,542
Fund balance,
beginning of year 7,730,562 7,730,562 7,730,562 -
Fund balance, end of year 6,477,193$ 6,477,193$ 9,311,735$ 2,834,542$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE – CAR RENTAL TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2012
66
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax 12,212,778$ 12,212,778$ 12,933,884$ 721,106$
Investment income 35,000 35,000 28,376 (6,624)
Total revenues 12,247,778 12,247,778 12,962,260 714,482
Expenditures
General and administrative 8,172,886 8,172,886 8,595,061 (422,175)
Capital outlay 679,288 679,288 397,229 282,059
Total expenditures 8,852,174 8,852,174 8,992,290 (140,116)
Excess of revenues over
expenditures 3,395,604 3,395,604 3,969,970 574,366
Other financing uses
Transfers out (6,640,378) (6,640,378) (6,640,378) -
Total other
financing uses (6,640,378) (6,640,378) (6,640,378) -
Net change in fund balance (3,244,774) (3,244,774) (2,670,408) 574,366
Fund balance, beginning of year 5,581,929 5,581,929 5,581,929 -
Fund balance, end of year 2,337,155$ 2,337,155$ 2,911,521$ 574,366$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE – HALF-PENNY SALES TAX
SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2012
67
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 3,412,251$ 3,412,251$ 3,751,737$ 339,486$
Investment income 2,000 2,000 7,387 5,387
Other income 65,346 65,346 - (65,346)
Total revenues 3,479,597 3,479,597 3,759,124 279,527
Expenditures
Culture and recreation 2,054,661 2,054,661 1,924,813 129,848
Development services 495,010 495,010 124,250 370,760
General and administrative 92,740 92,740 80,454 12,286
Debt service
Principal 780,000 4,590,000 4,590,000 -
Interest and fiscal charges 153,798 128,798 156,294 (27,496)
Total expenditures 3,576,209 7,361,209 6,875,811 485,398
Other financing uses
Issuance of refunding debt - 3,785,000 3,785,000 -
Transfers out (125,000) (125,000) (193,115) (68,115)
Total other
financing uses (125,000) 3,660,000 3,591,885 (68,115)
Net change in fund balance (221,612) (221,612) 475,198 696,810
Fund balance, beginning of year 2,265,182 2,265,182 2,265,182 -
Fund balance, end of year 2,043,570$ 2,043,570$ 2,740,380$ 696,810$
Budgeted Amounts
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
68
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, car rental tax special revenue
fund, and the half-penny sales 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
69
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.
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.
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.
70
NON-MAJOR GOVERNMENTAL FUNDS – Continued
CAPITAL PROJECTS
Street Assessments Fund – to account for receipt of funds for special assessment
collection and subsequent construction of improvements to various street and drainage
projects.
Streets Capital Improvements Project Fund - to account for street construction and
reconstruction projects and the means of financing such improvements.
Half-Penny Sales Tax Capital Projects Fund – to account for bond proceeds and sales
tax receipts to be expended for capital projects funded by the Euless Development
Corporation, a component unit of the City of Euless.
Developers' Contribution Fund – to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
Car Rental Capital Projects Fund – to account for building and infrastructure projects
that are funded from the short-term motor vehicle tax.
Police Facility Construction Fund – to account for the construction of a police facility.
General Capital Projects Fund – to account for various general construction projects
within the City.
Redevelopment Fund – to account for land acquisition and revitalization projects
designed to enhance development and promote redevelopment throughout the
community.
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2012
71
Police Crime
Drug Control and Public Cable Special
Hotel/ Enforce- Prevention Safety Juvenile Glade Parks TIRZ #3- PEG Revenue
Motel ment District Grant Case PID Glade Parks Fees Funds
Fund Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Deposits and investments 115,472$ 164,523$ 222,720$ 51,072$ 109,767$ 159,825$ -$ 126,203 949,582$
Accounts receivable 87,458 - - 28,800 4,886 - - 32,400 153,544
Accrued interest receivable - - - - - - - - -
Due from other governments - - 323,470 - - - - - 323,470
Prepaids - - 640 - - - - - 640
Restricted deposits and investments - - - - - - - - -
Total assets 202,930$ 164,523$ 546,830$ 79,872$ 114,653$ 159,825$ -$ 158,603$ 1,427,236$
LIABILITIES AND
FUND BALANCES
Liabilities
Accounts payable -$ 9,854$ 889$ -$ 1,918$ -$ -$ -$ 12,661$
Accrued salaries and wages - 1,706 47,871 2,545 1,475 - - - 53,597
Deferred revenue - - - - 4,886 - - - 4,886
Total liabilities - 11,560 48,760 2,545 8,279 - - - 71,144
Fund Balances
Restricted, debt service - - - - - 159,825 - 159,825
Restricted, capital projects - - - - - - - - -
Restricted, historical preservation 1,245 - - - - - - - 1,245
Restricted, juvenile case processing - - - - 106,374 - - - 106,374
Restricted, PEG fees - - - - - - - 158,603 158,603
Restricted, developer agreements - - - - - - - - -
Nonspendable - - 640 - - - - - 640
Assigned 201,685 152,963 497,430 77,327 - - - - 929,405
Total fund balances 202,930 152,963 498,070 77,327 106,374 159,825 - 158,603 1,356,092
Total liabilities and fund balances 202,930$ 164,523$ 546,830$ 79,872$ 114,653$ 159,825$ -$ 158,603$ 1,427,236$
Special Revenue Funds
72
Half-Penny Car Rental Police General Capital Total
Street Streets Sales Tax Developers' Capital Facility Capital Re-Project Non-major
Assessments CIP Capital Contribution Projects Construction Projects development Funds Governmental
Fund Fund Projects Fund Fund Fund Fund Fund Totals Funds
-$ 1,351,003$ 1,408,804$ 1,428,634$ 4,994,406$ 108,625$ 1,847,784$ 280,548 11,419,804$ 12,369,386$
- 649,330 - - - - 21,772 - 671,102 824,646
- 1,421 75 220 - - 204 - 1,920 1,920
- - - - - - - - - 323,470
- - - - - - - - - 640
- 606,505 - - - - - - 606,505 606,505
-$ 2,608,259$ 1,408,879$ 1,428,854$ 4,994,406$ 108,625$ 1,869,760$ 280,548$ 12,699,331$ 14,126,567$
-$ 421,347$ 54,105$ 255$ 48,238$ -$ -$ -$ 523,945$ 536,606$
- - - - - - - - - 53,597
- - - - - - - - - 4,886
- 421,347 54,105 255 48,238 - - - 523,945 595,089
- - - - - - - - - 159,825
- 606,505 - - - - - - 606,505 606,505
- - - - - - - - - 1,245
- - - - - - - - - 106,374
- - - - - - - - - 158,603
- - - 1,428,599 - - - - 1,428,599 1,428,599
- - - - - - - - - 640
- 1,580,407 1,354,774 - 4,946,168 108,625 1,869,760 280,548 10,140,282 11,069,687
- 2,186,912 1,354,774 1,428,599 4,946,168 108,625 1,869,760 280,548 12,175,386 13,531,478
-$ 2,608,259$ 1,408,879$ 1,428,854$ 4,994,406$ 108,625$ 1,869,760$ 280,548$ 12,699,331$ 14,126,567$
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, 2012
73
Police Crime
Drug Control and Public Cable Special
Hotel/ Enforce- Prevention Safety Juvenile Glade Parks TIRZ #3-PEG Revenue
Motel ment District Grant Case PID Glade Parks Fees Funds
Fund Fund Fund Fund Fund Fund Fund Fund Totals
Revenues
Gross receipts tax 292,931$ - $ - $ - $ - $ - $ - $ 161,955$ 454,886$
General sales tax - - 1,826,678 - - - 2,979 - 1,829,657
Investment income 118 190 148 - 86 61 - - 603
DEA revenues - 12,488 - - - - - - 12,488
Intergovernmental - - - - - - - - -
Rents and royalties - - - - - - - - -
Other revenues 58 15,615 442 86,797 77,558 54,622 - - 235,092
Total revenues 293,107 28,293 1,827,268 86,797 77,644 54,683 2,979 161,955 2,532,726
Expenditures
Culture and recreation - - - - - - - - -
General and administrative 8,586 - - - 57,997 - - 3,352 69,935
Public safety - 139,949 1,657,049 156,424 - - - - 1,953,422
Capital outlay - - 90,097 - - - - - 90,097
Total expenditures 8,586 139,949 1,747,146 156,424 57,997 - - 3,352 2,113,454
Excess (deficiency) of
revenues over expenditures 284,521 (111,656) 80,122 (69,627) 19,647 54,683 2,979 158,603 419,272
Other financing sources (uses)
Transfers in - - - 71,329 - - - - 71,329
Transfers out (257,718) - - - - (93,468) (2,979) - (354,165)
Total other
financing sources (uses), net (257,718) - - 71,329 - (93,468) (2,979) - (282,836)
Net change in fund balances 26,803 (111,656) 80,122 1,702 19,647 (38,785) - 158,603 136,436
Fund balance,
beginning of year 176,127 264,619 417,948 75,625 86,727 198,610 - - 1,219,656
Fund balance, end of year 202,930$ 152,963$ 498,070$ 77,327$ 106,374$ 159,825$ - $ 158,603$ 1,356,092$
Special Revenue Funds
74
Half-Penny Car Rental Police General Capital Total
Street Streets Sales Tax Developers' Capital Facility Capital Re-Project Non-major
Assessments CIP Capital Contribution Projects Construction Projects development Funds Governmental
Fund Fund Projects Fund Fund Fund Fund Fund Totals Funds
- $ - $ - $ - $ - $ - $ - $ - $ - $ 454,886$
- - - - - - - - - 1,829,657
- 9,149 3,600 1,784 1,165 118 6,427 319 22,562 23,165
- - - - - - - - - 12,488
- 649,330 - - - - - 649,330 649,330
- - - - - - 397,526 - 397,526 397,526
- - - 23,486 - - - - 23,486 258,578
- 658,479 3,600 25,270 1,165 118 403,953 319 1,092,904 3,625,630
- - 35,951 1,146 - - - - 37,097 37,097
- - - - - - - - - 69,935
- - - - - - - - - 1,953,422
- 2,917,310 235,857 - 86,700 - - 3,239,867 3,329,964
- 2,917,310 271,808 1,146 86,700 - - - 3,276,964 5,390,418
- (2,258,831) (268,208) 24,124 (85,535) 118 403,953 319 (2,184,060) (1,764,788)
- 375,115 125,000 - 4,836,500 - - - 5,336,615 5,407,944
(44,970) - - (80,145) - - (43,333) - (168,448) (522,613)
(44,970) 375,115 125,000 (80,145) 4,836,500 - (43,333) - 5,168,167 4,885,331
(44,970) (1,883,716) (143,208) (56,021) 4,750,965 118 360,620 319 2,984,107 3,120,543
44,970 4,070,628 1,497,982 1,484,620 195,203 108,507 1,509,140 280,229 9,191,279 10,410,935
- $ 2,186,912$ 1,354,774$ 1,428,599$ 4,946,168$ 108,625$ 1,869,760$ 280,548$ 12,175,386$ 13,531,478$
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, 2012
75
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 258,000$ 258,000$ 292,931$ 34,931$
Investment income 150 150 118 (32)
Other revenues - - 58 58
Total revenues 258,150 258,150 293,107 34,957
Expenditures
General and administrative 10,000 10,000 8,586 1,414
Total expenditures 10,000 10,000 8,586 1,414
Other financing uses
Transfers out (257,718) (257,718) (257,718) -
Total other financing uses (257,718) (257,718) (257,718) -
Net change in fund balance (9,568) (9,568) 26,803 36,371
Fund balance, beginning of year 176,127 176,127 176,127 -
Fund balance, end of year 166,559$ 166,559$ 202,930$ 36,371$
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, 2012
76
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 1,000$ 1,000$ 190$ (810)$
DEA revenues - - 12,488 12,488
Other revenues - - 15,615 15,615
Total revenues 1,000 1,000 28,293 27,293
Expenditures
Public safety 500 500 139,949 (139,449)
Total expenditures 500 500 139,949 (139,449)
Net change in fund balance 500 500 (111,656) (112,156)
Fund balance, beginning of year 264,619 264,619 264,619 -
Fund balance, end of year 265,119$ 265,119$ 152,963$ (112,156)$
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, 2012
77
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 1,656,362$ 1,656,362$ 1,826,678$ 170,316$
Other revenue - - 442 442
Investment income 350 350 148 (202)
Total revenues 1,656,712 1,656,712 1,827,268 170,556
Expenditures
Public safety 1,640,103 1,640,103 1,657,049 (16,946)
Capital outlay 107,858 107,858 90,097 17,761
Total expenditures 1,747,961 1,747,961 1,747,146 815
Net change in fund balance (91,249) (91,249) 80,122 171,371
Fund balance, beginning of year 417,948 417,948 417,948 -
Fund balance, end of year 326,699$ 326,699$ 498,070$ 171,371$
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, 2012
78
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 69,587$ 69,587$ 86,797$ 17,210$
Total revenues 69,587 69,587 86,797 17,210
Expenditures
Public safety 104,587 104,587 156,424 (51,837)
Total expenditures 104,587 104,587 156,424 (51,837)
Other financing sources
Transfers in 35,000 35,000 71,329 36,329
Total other financing sources 35,000 35,000 71,329 36,329
Net change in fund balance - - 1,702 1,702
Fund balance, beginning of year 75,625 75,625 75,625 -
Fund balance, end of year 75,625$ 75,625$ 77,327$ 1,702$
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, 2012
79
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income -$ -$ 86$ 86$
Other revenues 82,500 82,500 77,558 (4,942)
Total revenues 82,500 82,500 77,644 (4,856)
Expenditures
General and administrative 65,016 65,016 57,997 7,019
Total expenditures 65,016 65,016 57,997 7,019
Net change in fund balance 17,484 17,484 19,647 2,163
Fund balance, beginning of year 86,727 86,727 86,727 -
Fund balance, end of year 104,211$ 104,211$ 106,374$ 2,163$
Budgeted Amounts
80
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 ASSETS
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2012
(1 of 2)
81
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
ASSETS
Current assets
Deposits and investments 410,230$ 1,588,865$ 33,344$ 2,032,439$
Accounts receivable and
unbilled revenue - 27,551 - 27,551
Prepaids and deposits 70 14,391 - 14,461
Inventory - 105,190 - 105,190
Total current assets 410,300 1,735,997 33,344 2,179,641
Non-current assets
Bond issuance cost, net - 10,130 - 10,130
Net OPEB asset 555 5,212 - 5,767
Total non-current assets 555 15,342 - 15,897
Property, plant, and equipment, at cost
Land - 584,532 - 584,532
Building - 488,275 - 488,275
Equipment 76,948 126,498 - 203,446
Improvements - 8,150,654 - 8,150,654
Total property, plant, and equipment 76,948 9,349,959 - 9,426,907
Less accumulated depreciation 63,656 3,735,171 - 3,798,827
Net property, plant, and equipment 13,292 5,614,788 - 5,628,080
Total non-current assets 13,847 5,630,130 - 5,643,977
Total assets 424,147$ 7,366,127$ 33,344$ 7,823,618$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2012
(2 of 2)
82
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable 4,212$ 46,418$ - $ 50,630$
Accrued salaries and wages 2,136 16,415 - 18,551
Current portion of bonds payable - 145,000 - 145,000
Accrued interest - 2,693 - 2,693
Total current liabilities 6,348 210,526 - 216,874
Non-current liabilities
Net pension obligation 55 10,416 - 10,471
Bonds payable - 443,693 - 443,693
Total non-current liabilities 55 454,109 - 454,164
Total liabilities 6,403 664,635 - 671,038
NET ASSETS
Invested in capital assets,
net of related debt 13,292 5,026,095 - 5,039,387
Unrestricted 404,452 1,675,397 33,344 2,113,193
Total net assets 417,744$ 6,701,492$ 33,344$ 7,152,580$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET ASSETS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2012
83
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
Operating revenues
Recreation fees 442,873$ - $ - $ 442,873$
Service fees and miscellaneous - 1,539,013 59,986 1,598,999
Total operating revenues 442,873 1,539,013 59,986 2,041,872
Operating expenses
Recreation classes 423,926 - - 423,926
Texas Star Sports Complex - 1,275,994 - 1,275,994
Arbor Daze - - 57,712 57,712
Depreciation 4,467 311,464 - 315,931
Amortization - 11,749 - 11,749
Total operating expenses 428,393 1,599,207 57,712 2,085,312
Operating income (loss)14,480 (60,194) 2,274 (43,440)
Nonoperating revenues (expenses)
Gain (Loss) on sale of capital asset (404) 386 - (18)
Investment income 447 1,721 24 2,192
Interest expense - (23,119) - (23,119)
Total nonoperating revenues
(expenses), net 43 (21,012) 24 (20,945)
Change in net assets 14,523 (81,206) 2,298 (64,385)
Net assets, beginning of year 403,221 6,782,698 31,046 7,216,965
Net assets, end of year 417,744$ 6,701,492$ 33,344$ 7,152,580$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2012
84
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers 442,873$ 1,557,472$ 59,986$ 2,060,331$
Cash payments to suppliers for goods and services (255,042) (1,004,124) (57,712) (1,316,878)
Cash payments to employees for services (169,189) (285,278) - (454,467)
Net cash provided by operating activities 18,642 268,070 2,274 288,986
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds - (23,644) - (23,644)
Reduction in bonds payable - (140,000) - (140,000)
Proceeds from sale of capital assets 167 386 - 553
Net cash provided by (used in) capital
and related financing activities 167 (163,258) - (163,091)
INVESTING ACTIVITIES
Interest received on investments 447 1,721 24 2,192
Net cash provided by investing activities 447 1,721 24 2,192
Net change in cash and
and cash equivalents 19,256 106,533 2,298 128,087
Cash and cash equivalents, beginning of year 390,974 1,482,332 31,046 1,904,352
Cash and cash equivalents, end of year 410,230$ 1,588,865$ 33,344$ 2,032,439$
Reconciliation of operating income (loss) to net cash
provided by operating activities
Operating income 14,480$ (60,194)$ 2,274$ (43,440)$
Adjustments to reconcile operating income
to net cash provided by operating activities
Depreciation and amortization 4,467 323,213 - 327,680
Changes in assets and liabilities
Accounts receivable and unbilled revenue - 18,461 - 18,461
Prepaids and deposits 519 1,162 - 1,681
Net OPEB asset - (9) - (9)
Net pension obligation (113) 532 - 419
Inventory - (25,476) - (25,476)
Accounts payable (826) 10,520 - 9,694
Accrued salaries and wages 115 (139) - (24)
Net cash provided by operating activities 18,642$ 268,070$ 2,274$ 288,986$
85
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 ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2012
86
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Deposits and investments 2,827,989$ 3,289,609$ 1,657,047$ 7,774,645$
Accounts receivable - 138,269 - 138,269
Accrued interest receivable 935 1,069 - 2,004
Total current assets 2,828,924 3,428,947 1,657,047 7,914,918
Property, plant, and equipment, at cost
Equipment 8,038,277 54,956 18,649 8,111,882
Less accumulated depreciation 6,056,249 54,956 12,930 6,124,135
Net property, plant, and equipment 1,982,028 - 5,719 1,987,747
Total assets 4,810,952 3,428,947 1,662,766 9,902,665
Accounts payable - 11,802 370,141 381,943
Accrued salary and wages - 7,394 3,598 10,992
Accrued insurance claims - 721,422 115,528 836,950
Total current liabilities - 740,618 489,267 1,229,885
Invested in capital assets,
net of related debt 1,982,028 - 5,719 1,987,747
Unrestricted 2,828,924 2,688,329 1,167,780 6,685,033
Total net assets 4,810,952$ 2,688,329$ 1,173,499$ 8,672,780$
ASSETS
LIABILITIES
NET ASSETS
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2012
87
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Operating revenues
Insurance premiums - $ 4,866,640$ 349,640$ 5,216,280$
Service fees and miscellaneous 703,965 29,305 - 733,270
Total operating revenues 703,965 4,895,945 349,640 5,949,550
Operating expenses
General and administrative 38,147 987,976 73,526 1,099,649
Insurance costs - 4,108,958 567,771 4,676,729
Depreciation 790,823 - 763 791,586
Total operating expenses 828,970 5,096,934 642,060 6,567,964
Operating income (loss) (125,005) (200,989) (292,420) (618,414)
Nonoperating revenues
Gain on sale of capital assets 26,144 - - 26,144
Investment income 12,827 11,372 1,212 25,411
Total nonoperating revenues 38,971 11,372 1,212 51,555
Income (loss) before transfers (86,034) (189,617) (291,208) (566,859)
Other financing sources
Transfers in - - 450,000 450,000
Change in net assets (86,034) (189,617) 158,792 (116,859)
Net assets, beginning of year 4,896,986 2,877,946 1,014,707 8,789,639
Net assets, end of year 4,810,952$ 2,688,329$ 1,173,499$ 8,672,780$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2012
88
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers 703,965$ 4,893,428$ 349,641$ 5,947,034$
Cash payments to suppliers for goods and services (48,392) (4,834,197) (179,703) (5,062,292)
Cash payments to employees for services - (39,628) (42,222) (81,850)
Net cash provided by (used in) operating activities 655,573 19,603 127,716 802,892
NONCAPITAL FINANCING ACTIVITIES
Transfers in - - 450,000 450,000
Net cash provided by noncapital financing activities - - 450,000 450,000
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (471,912) - - (471,912)
Proceeds from sale of capital assets 29,388 - - 29,388
Net cash used in capital and related financing activities (442,524) - - (442,524)
INVESTING ACTIVITIES
Proceeds from sale of investment securities - 1,230 - 1,230
Interest received on investments 12,723 11,373 1,212 25,308
Net cash provided by investing activities 12,723 12,603 1,212 26,538
Net increase (decrease) in cash and cash equivalents 225,772 32,206 578,928 836,906
Cash and cash equivalents, beginning of year 2,602,217 3,257,403 1,078,119 6,937,739
Cash and cash equivalents, end of year 2,827,989$ 3,289,609$ 1,657,047$ 7,774,645$
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss) (125,005)$ (200,989)$ (292,420)$ (618,414)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation expense 790,823 - 763 791,586
Change in assets and liabilities
Receivables - (2,517) - (2,517)
Accounts payable (10,245) (5,207) 348,417 332,965
Accrued salaries and wages - 236 230 466
Accrued insurance claims - 228,080 70,726 298,806
Net cash provided by (used in) operating activities 655,573$ 19,603$ 127,716$ 802,892$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ESCROW AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2012
89
Balance Balance
October 1, September 30,
2011 Additions Deductions 2012
Stars Center Escrow Fund
Assets
Investments at fair value 1,420,839$ 1,615$ (1,406)$ 1,421,048$
Total assets 1,420,839$ 1,615$ (1,406)$ 1,421,048$
Liabilities
Due to other entities 1,420,547$ -$ -$ 1,420,547$
Refunds payable 292 501 (292) 501
Total liabilities 1,420,839$ 501$ (292)$ 1,421,048$
Glade Parks Escrow Fund
Assets
Investments at fair value -$ 2,530,893$ (2,017,523)$ 513,370$
Total assets -$ 2,530,893$ (2,017,523)$ 513,370$
Liabilities
Due to other entities -$ 2,530,893$ (2,017,523)$ 513,370$
Total liabilities -$ 2,530,893$ (2,017,523)$ 513,370$
Total Agency Funds
Assets
Investments at fair value 1,420,839$ 2,532,508$ (2,018,929)$ 1,934,418$
Total assets 1,420,839$ 2,532,508$ (2,018,929)$ 1,934,418$
Liabilities
Due to other entities 1,420,547$ 2,530,893$ (2,017,523)$ 1,933,917$
Refunds payable 292 501 (292) 501
Total liabilities 1,420,839$ 2,531,394$ (2,017,815)$ 1,934,418$
STATISTICAL SECTION
(Unaudited)
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 ASSETS BY COMPONENT – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 1 90 Fiscal Year2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Governmental activitiesInvested in capital assets, net of related debt 42,192,665$ 46,733,074$ 49,659,438$ 49,883,218$ 58,251,542$ 60,799,897$ 66,241,593$ 73,815,504$ 71,051,094$ 77,828,950$ Restricted 713,385 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 1,845,987 1,375,950 1,818,957 4,426,819 Unrestricted 14,945,063 14,657,018 17,512,832 25,497,497 27,104,410 31,041,434 29,885,070 24,933,443 31,448,528 27,192,202 Total governmental activities net assets 57,851,113$ 62,694,318$ 68,627,979$ 76,829,456$ 87,081,950$ 93,655,202$ 97,972,650$ 100,124,897$ 104,318,579$ 109,447,971$ Business-type activitiesInvested in capital assets, net of related debt 42,401,512$ 43,283,643$ 47,988,447$ 48,278,044$ 50,186,697$ 52,155,251$ 53,569,070$ 53,318,214$ 53,132,882$ 52,202,849$ Restricted for debt service 632,189 - - - - - 3,963,919 438,340 438,948 309,595 Restricted for impact fees - - - - - - - 2,999,156 2,649,336 2,401,217 Unrestricted 14,009,239 16,906,068 15,830,507 19,099,883 16,421,971 16,900,637 12,980,130 13,987,730 16,947,928 17,703,257 Total business-type activities net assets 57,042,940$ 60,189,711$ 63,818,954$ 67,377,927$ 66,608,668$ 69,055,888$ 70,513,119$ 70,743,440$ 73,169,094$ 72,616,918$ Primary governmentInvested in capital assets, net of related debt84,594,177$ 90,016,717$ 97,647,885$ 98,161,262$ 108,438,239$ 112,955,148$ 119,810,663$ 127,133,718$ 124,183,976$ 130,031,799$ Restricted1,345,574 1,304,226 1,455,709 1,448,741 1,725,998 1,813,871 5,809,906 4,813,446 4,907,241 7,137,631 Unrestricted28,954,302 31,563,086 33,343,339 44,597,380 43,526,381 47,942,071 42,865,200 38,921,173 48,396,456 44,895,459 Total primary government net assets114,894,053$ 122,884,029$ 132,446,933$ 144,207,383$ 153,690,618$ 162,711,090$ 168,485,769$ 170,868,337$ 177,487,673$ 182,064,889$ Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 2 91 Fiscal Year2003200420052006200720082009201020112012ExpensesGovernmental activities:Culture and recreation4,753,724$ 4,411,726$ 4,573,219$ 4,892,346$ 5,002,569$ 4,862,749$ 4,892,936$ 5,004,580$ 5,091,589$ 5,680,772$ Development services1,190,240 1,217,794 1,113,875 1,169,285 1,487,102 1,420,477 1,707,421 1,692,845 1,707,148 972,770 General and administrative11,879,362 12,337,712 13,370,907 15,122,831 16,495,449 17,733,714 17,267,094 14,571,600 15,698,832 15,910,313 Highways and streets2,117,959 2,398,447 1,734,487 2,211,083 2,206,697 2,534,856 2,057,123 2,662,949 2,923,241 2,968,770 Public safety14,830,469 15,315,777 15,514,301 16,252,071 17,047,334 18,708,849 19,379,290 21,416,966 20,754,733 22,316,429 Interest on long-term debt3,147,819 2,765,102 2,572,094 2,741,754 2,664,658 3,151,039 2,377,564 1,885,177 1,618,420 1,327,482 Total governmental activities expenses37,919,573 38,446,558 38,878,883 42,389,370 44,903,809 48,411,684 47,681,428 47,234,117 47,793,963 49,176,536 Business-type activities:Water and wastewater12,046,092 12,550,708 13,227,562 15,285,026 15,418,299 16,462,599 15,623,464 17,035,520 17,827,272 17,813,199 Drainage utility812,785 793,358 875,995 884,763 1,059,272 932,771 947,869 1,107,206 1,177,938 1,283,617 Golf3,616,671 3,667,537 3,792,552 4,003,035 4,250,866 4,421,256 4,690,701 4,460,627 4,483,252 4,599,099 Other recreation enterprises2,593,455 2,299,391 2,630,760 1,842,550 2,109,291 2,155,131 2,016,273 1,866,786 1,982,613 2,115,730 Total business-type activities expenses19,069,003 19,310,994 20,526,869 22,015,374 22,837,728 23,971,757 23,278,307 24,470,139 25,471,075 25,811,645 Total primary government expenses56,988,576 57,757,552 59,405,752 64,404,744 67,741,537 72,383,441 70,959,735 71,704,256 73,265,038 74,988,181 Program RevenuesGovernmental activities:Fees, fines, and charges for servicesCulture and recreation56,749 52,651 91,925 92,837 83,084 65,349 67,283 66,368 69,950 65,912 Development services628,585 817,293 896,894 841,033 833,822 688,348 783,955 751,323 779,939 1,263,477 General and administrative1,403,636 1,401,057 1,241,408 1,706,000 1,252,030 1,391,437 4,092,387 1,548,497 1,707,890 1,760,023 Highways and streets- - - 6,300 (8,026) 722,334 11,008 - - 54,622 Public safety3,541,356 3,328,327 3,734,364 4,505,202 4,423,564 5,439,171 4,030,566 4,345,101 3,271,115 3,097,141 Operating grants and contributions515,039 517,307 1,302,332 592,231 411,857 486,862 487,059 511,093 469,404 481,655 Capital grants and contributions- - - 8,706 2,199,106 1,885,266 268,130 602,372 1,015,402 689,642 Total governmental activities program revenues 6,145,365 6,116,635 7,266,923 7,752,309 9,195,437 10,678,767 9,740,388 7,824,754 7,313,700 7,412,472 Business-type activities:Charges for servicesWater and wastewater12,768,482 13,235,590 14,213,072 16,065,814 13,730,467 15,849,209 16,381,801 17,321,670 19,978,802 18,437,963 Drainage utility626,199 643,229 659,949 658,231 701,476 661,725 689,889 691,800 694,751 705,474 Golf3,078,739 3,052,947 3,347,922 3,777,018 3,825,486 3,904,008 4,069,151 5,279,259 4,746,242 4,335,149 Other recreation enterprises2,603,260 2,012,214 2,453,905 1,518,386 1,636,883 1,819,459 1,703,196 1,937,416 2,684,905 2,041,878 Operating grants and contributions- - 3,308,393 - - - - - - - Capital grants and contributions2,849,795.00 - - 312,835 1,012,919 2,183,600 1,705,746 26,400 772,714 368,882 Total business-type activities program revenues 21,926,475 18,943,980 23,983,241 22,332,284 20,907,231 24,418,001 24,549,783 25,256,545 28,877,414 25,889,346 Total primary government program revenues 28,071,840 25,060,615 31,250,164 30,084,593 30,102,668 35,096,768 34,290,171 33,081,299 36,191,114 33,301,818 (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued)
CITY OF EULESS, TEXAS CHANGES IN NET ASSETS – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) – Continued Table 2 92 Net (Expense) RevenueGovernmental activities (31,774,208)$ (32,329,923)$ (31,611,960)$ (34,637,061)$ (35,708,372)$ (37,732,917)$ (37,941,040)$ (39,409,363)$ (40,480,263)$ (41,764,064)$ Business-type activities 2,857,472 (367,014) 3,456,372 316,910 (1,930,497) 446,244 1,271,476 786,406 3,406,339 77,701 Total primary government net expense (28,916,736) (32,696,937) (28,155,588) (34,320,151) (37,638,869) (37,286,673) (36,669,564) (38,622,957) (37,073,924) (41,686,363) General Revenues and Other Changes in Net AssetsGovernmental activities:TaxesProperty taxes, levied for general purposes 9,941,779 10,233,079 10,777,414 11,188,598 12,343,359 12,231,294 12,685,268 12,306,387 11,855,993 12,451,543 Sales taxes 8,865,055 9,229,819 9,648,979 12,303,965 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 14,957,757 Car rental taxes 9,641,374 10,190,256 10,841,899 12,580,371 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 12,933,884 Mixed beverage taxes 82,920 82,058 82,759 85,659 87,400 84,653 76,433 71,653 66,383 54,138 Hotel/motel occupancy taxes 154,164 167,259 179,989 216,591 240,457 234,780 185,417 237,429 272,809 292,931 Gross receipts taxes 3,196,452 3,226,468 3,326,641 4,116,704 3,619,955 3,816,501 4,074,355 3,967,036 4,174,627 4,276,136 Investment income580,245 463,239 870,841 1,611,815 2,031,580 1,727,542 863,225 292,761 168,929 132,607 Contributions from property owners1,814,257 3,191,097 1,229,401 - - - - - - - Rents and royalties- - - - - - - - - 397,527 Gain/(loss) on disposal of assets41,807 30,811 (21,023) 24,866 74,163 71,143 37,909 116,978 100,110 68,329 Miscellaneous102,193 18,208 - - - - 11,018 103,569 1,419,512 637,975 Transfers(1,535,227) 340,834 608,721 709,969 617,418 (1,012,140) 90,303 647,463 904,867 690,629 Total governmental activities32,885,019 37,173,128 37,545,621 42,838,538 45,960,866 44,306,169 42,258,488 41,561,610 44,673,945 46,893,456 Business-type activities:Investment income320,233 266,240 407,468 771,888 1,023,865 726,385 254,071 87,799 66,161 60,752 Contributions from property owners572,065 3,588,379 374,124 271,707 253,786 252,045 - - - - Gain/(loss) on disposal of assets- - - - 277,004 - - 3,579 (141,979) - Miscellaneous- - - 2,908,437 224,001 10,406 21,987 - - - Transfers1,535,227 (340,834) (608,721) (709,969) (617,418) 1,012,140 (90,303) (647,463) (904,867) (690,629) Total business-type activities2,427,525 3,513,785 172,871 3,242,063 1,161,238 2,000,976 185,755 (556,085) (980,685) (629,877) Total primary government35,312,544 40,686,913 37,718,492 46,080,601 47,122,104 46,307,145 42,444,243 41,005,525 43,693,260 46,263,579 Change in Net AssetsGovernmental activities1,110,811 4,843,205 5,933,661 8,201,477 10,252,494 6,573,252 4,317,448 2,152,247 4,193,682 5,129,392 Business-type activities5,284,997 3,146,771 3,629,243 3,558,973 (769,259) 2,447,220 1,457,231 230,321 2,425,654 (552,176) Total primary government 6,395,808$ 7,989,976$ 9,562,904$ 11,760,450$ 9,483,235$ 9,020,472$ 5,774,679$ 2,382,568$ 6,619,336$ 4,577,216$ (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 93 2003200420052006200720082009201020112012General FundReserved for other 136,167$ 193,253$ 239,592$ 310,956$ 392,950$ 362,018$ 354,882$ 492,776$ -$ -$ Nonspendable- - - - - - - - 19,344 28,796 Restricted- - - - - - - - 311,076 258,765 Assigned- - - - - - - - 103,423 111,096 Unreserved/Unassigned6,039,430 5,552,863 6,363,113 8,989,805 10,594,492 8,355,946 7,288,976 7,121,683 7,296,719 8,913,078 Total general fund6,175,597$ 5,746,116$ 6,602,705$ 9,300,761$ 10,987,442$ 8,717,964$ 7,643,858$ 7,614,459$ 7,730,562$ 9,311,735$ All Other Governmental FundsReserved for:Debt service1,380,615$ 1,432,251$ 1,642,766$ 1,587,754$ 1,893,893$ 1,967,502$ 1,987,783$ 1,622,584$ -$ -$ Development Agreements1,447,612 1,442,999 1,470,156 1,535,647 1,598,658 1,671,038 1,553,876 1,454,496 - - Other1,245 1,245 1,245 1,245 1,245 1,245 1,245 7,677 - - Unreserved, reported in:Special revenue funds7,167,612 5,830,664 8,086,786 7,643,232 11,330,717 5,741,072 6,020,996 7,780,378 - - Capital funds7,301,088 13,708,861 11,110,293 7,482,417 4,627,428 10,940,619 10,918,516 5,792,872 - - Nonspendable- - - - - - - - 5,665 5,803 Restricted for:Debt service- - - - - - - - 1,818,957 1,867,971 Capital projects- - - - - - - - 2,168,956 606,505 Other- - - - - - - - 87,972 1,694,821 Assigned- - - - - - - - 14,855,820 15,802,863 Total all other governmental funds 17,298,172$ 22,416,020$ 22,311,246$ 18,250,295$ 19,451,941$ 20,321,476$ 20,482,416$ 16,658,007$ 18,937,370$ 19,977,963$ Source: Comprehensive Annual Financial ReportsNote: The City of Euless first applied GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions'" in fiscal year 2011. Reclassification of fund balances for prior years was not required.
CITY OF EULESS, TEXAS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting – Unaudited) Table 4 94 2003200420052006200720082009201020112012Revenues:General property tax9,855,490 10,297,219 11,138,582 11,266,615 12,482,090 12,200,974 12,735,324 12,277,457 11,786,579 12,382,757 Gross receipts tax3,433,537 3,475,785 3,589,389 4,418,954 3,947,812 4,135,934 4,336,205 4,276,110 4,513,819 4,623,205 General sales tax8,865,055 9,229,819 9,648,979 12,303,965 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 14,957,757 Car rental tax9,641,373 10,190,256 10,841,899 12,580,371 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 12,933,884 Fines and fees3,377,046 3,162,113 3,662,327 4,089,056 4,348,839 4,297,304 4,086,594 4,336,063 4,033,868 4,278,738 Licenses and permits1,009,058 1,190,059 870,010 806,476 804,404 752,421 783,955 719,918 744,978 1,233,465 Investment income566,049 444,653 798,485 1,468,812 1,784,492 1,512,898 742,444 253,302 143,564 107,195 DEA revenues45,997 128,341 14,607 77,461 5,360 26,580 14,883 15,350 6,589 12,488 Intergovernmental326,493 292,265 303,713 315,487 334,979 353,567 379,503 376,512 377,660 1,012,673 Rents and royalties- - - - - - - 1,620,210 1,233,686 1,111,873 Other revenues1,500,408 1,434,035 2,238,652 2,015,047 1,513,511 2,924,573 4,300,564 978,179 1,194,966 1,206,611 Total Revenues38,620,506 39,844,545 43,106,643 49,342,244 52,168,021 53,356,647 51,614,032 48,671,435 49,746,424 53,860,646 Expenditures:Culture and recreation3,764,712 3,586,026 3,890,845 4,079,825 4,500,202 4,461,329 4,350,573 4,120,435 4,335,786 4,676,100 Development services1,111,608 1,150,194 1,079,073 1,117,614 1,461,222 1,232,277 1,355,105 1,251,706 1,340,898 688,296 General and administrative11,631,603 11,912,050 12,494,352 14,860,076 16,377,711 17,660,608 16,230,408 14,796,474 15,610,772 15,539,673 Highways and streets973,493 766,030 670,742 656,964 693,711 943,171 861,885 610,996 713,742 861,748 Public safety13,343,235 13,814,758 14,409,786 15,334,138 16,958,988 17,930,526 18,560,852 19,011,663 19,492,862 21,074,399 Debt Service:Principal 2,452,838 2,666,815 2,600,000 2,790,000 3,030,000 3,010,000 2,990,000 3,110,000 3,445,000 8,210,000 Interest and fiscal charges3,528,072 3,308,249 2,939,783 2,596,934 2,577,106 2,437,894 2,312,734 2,189,070 1,798,615 1,361,259 Issuance costs85,363 80,000 128,000 97,810 5,946 - - 95,000 178,229 184,966 Capital outlay3,964,777 3,455,190 4,248,437 7,997,263 3,777,225 5,843,641 5,730,944 6,865,802 4,805,147 3,727,193 Total expenditures40,855,701 40,739,312 42,461,018 49,530,624 49,382,111 53,519,446 52,392,501 52,051,146 51,721,051 56,323,634 Excess (deficiency) of revenuesover (under) expenditures(2,235,195) (894,767) 645,625 (188,380) 2,785,910 (162,799) (778,469) (3,379,711) (1,974,627) (2,462,988) Other Financing Sources (Uses):Proceeds from capital lease- - - - - - - - 494,322 - Proceeds from issuance of debt 5,535,295 7,580,000 13,900,000 6,710,000 - - - 8,110,000 9,610,000 9,740,000 Payment of escrow for refunding (5,492,201) - (14,386,070) (6,879,482) - - - (8,443,763) (6,804,790) (5,381,310) Bond premium - - 508,038 - - - - - 390,694 260,435 Bond discount- - - - - - - (94,828) - - Transfers in3,987,716 3,985,286 2,435,617 5,536,285 2,920,599 12,313,757 4,461,419 3,371,742 5,696,323 8,134,018 Transfers out(6,913,902) (5,982,152) (2,351,396) (6,541,319) (2,818,181) (13,550,897) (4,596,116) (3,417,248) (5,016,456) (7,668,389) Total other financing sources (2,883,092) 5,583,134 106,189 (1,174,516) 102,418 (1,237,140) (134,697) (474,097) 4,370,093 5,084,754 Net change in fund balances(5,118,287)$ 4,688,367$ 751,814$ (1,362,896)$ 2,888,328$ (1,399,939)$ (913,166)$ (3,853,808)$ 2,395,466$ 2,621,766$ Debt service as a percentageof noncapital expenditures16.4% 16.2%14.8%13.2% 12.3%11.4% 11.4%11.9%11.6%18.5%Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY – LAST TEN FISCAL YEARS (Unaudited) Table 5 95 Total Total Less: Total Taxable DirectFiscal Real Personal Market Tax-Exempt Assessed TaxYear Property Property Value Property Value Rate2003 1,774,764,051 415,198,175 2,189,962,226 227,535,973 1,962,426,253 0.4972542004 1,908,435,313 410,962,260 2,319,397,573 249,704,249 2,069,693,324 0.4950002005 2,029,651,370 428,198,142 2,457,849,512 271,935,496 2,185,914,016 0.4950002006 2,190,313,348 375,328,844 2,565,642,192 312,107,619 2,253,534,573 0.4917772007 2,324,055,440 424,995,712 2,749,051,152 308,569,035 2,440,482,117 0.4895002008 2,438,826,320 464,735,670 2,903,561,990 320,650,590 2,582,911,400 0.4700002009 2,477,673,867 508,213,527 2,985,887,394 325,886,654 2,660,000,740 0.4700002010 2,470,282,654 449,954,489 2,920,237,143 330,392,987 2,589,844,156 0.4700002011 2,473,997,250 390,731,885 2,864,729,135 341,730,427 2,522,998,708 0.4700002012 2,610,172,289 389,778,962 2,999,951,251 348,227,246 2,651,724,005 0.470000Source: Tarrant Appraisal DistrictEstimated Market Value
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) – LAST TEN FISCAL YEARS (Unaudited) Table 6 96 Fiscal YearOperating / General RateGeneral Obligation Debt ServiceTotal Direct RateHurst-Euless-Bedford ISDGrapevine-Colleyville ISDTarrant CountyTarrant County Hospital DistrictTarrant County Community College2003 0.298479 0.198775 0.497254 1.7119 1.6598 0.2725 0.2324 0.13942004 0.309241 0.185759 0.495000 1.6616 1.7011 0.2725 0.2354 0.13942005 0.331396 0.163604 0.495000 1.7105 1.7000 0.2725 0.2354 0.13942006 0.340321 0.151456 0.491777 1.7230 1.7000 0.2725 0.2354 0.13942007 0.343227 0.146273 0.489500 1.5975 1.5743 0.2715 0.2354 0.13942008 0.340341 0.129659 0.470000 1.3037 1.2900 0.2665 0.2304 0.13942009 0.351937 0.118063 0.470000 1.2950 1.2900 0.2640 0.2279 0.13802010 0.360791 0.109209 0.470000 1.2955 1.2900 0.2640 0.2280 0.13772011 0.343905 0.126095 0.470000 1.2882 1.2900 0.2640 0.2279 0.13762012 0.345388 0.124612 0.470000 1.4140 1.3100 0.2640 0.2280 0.1490Sources: City of Euless Budget Office, Tarrant Appraisal DistrictOverlapping RatesCity Direct Rates
CITY OF EULESS, TEXAS PRINCIPAL PROPERTY TAX PAYERS Current Year and Nine Years Ago (Unaudited) Table 7 97 PercentagePercentageof Total Cityof Total CityTaxable TaxableTaxable TaxableAssessed AssessedAssessed AssessedTaxpayerValueValue (1) TaxpayerValue Value (2)Ean Holdings, LLC 54,422,607$ 2.05 % National Rental Systems Inc53,118,533$ 2.71 %The Hertz Corp.45,099,623 1.70 Hertz Rent-a-Car45,801,871 2.33UDR The Mandolin LLC44,018,000 1.66 Avis Rent-a-Car, Inc.34,938,473 1.78Avis Rent A Car System LLC40,082,937 1.51 Somerset Village Partners LP31,013,586 1.58IRA Stoneleigh Feeco LLC37,294,700 1.41 The Bear Apartments28,613,289 1.46CMF 15 Portfolio LLC37,200,000 1.40 Southwest Properties28,068,320 1.43Big Vineyard Village MSV LLC34,483,841 1.30 Cingular Wireless27,395,084 1.40Oncor Electric Delivery Co. LLC 33,715,628 1.27 Saluda Apartments, LP26,879,759 1.37Somerset Village Partners LP33,352,614 1.26 Southwestern Bell Telephone Company 23,755,705 1.21AP WP Vineyard Reit LLC33,000,000 1.24 Mandolin Q I21,400,000 1.09Total392,669,950$ 14.80 % Total320,984,620$ 16.36 %Source: Tarrant County Tax OfficeNote: (1) Total Taxable Assessed Value including real and personal property for tax year 2011 (fiscal year 2012) is $2,651,724,005.(2) Total Taxable Assessed Value including real and personal property for tax year 2002 (fiscal year 2003) is $1,962,426,253.Fiscal Year 2012Fiscal Year 2003
CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS – LAST TEN FISCAL YEARS (Unaudited) Table 8 98 Taxes Levied Adjustments AdjustedWithin the to Levy in Taxes Levied CollectionsFiscal Fiscal Year Subsequent for the Percentage in Subsequent Percentage PercentageYear of the Levy Years Fiscal Year Amount of Levy Years Amount of Levy Amount of Levy2003 9,862,626 (55,886) 9,806,740 9,639,278 98.29% 129,421 9,768,699 99.61% 38,041 0.39%2004 10,219,893 52,711 10,272,604 10,026,897 97.61% 205,229 10,232,125 99.61% 40,478 0.39%2005 10,789,150 55,448 10,844,597 10,663,367 98.33% 135,941 10,799,308 99.58% 45,290 0.42%2006 11,194,338 1,289 11,195,627 11,007,368 98.32% 171,266 11,178,634 99.85% 16,993 0.15%2007 11,908,489 (9,108) 11,899,381 11,801,183 99.17% 82,407 11,883,590 99.87% 15,791 0.13%2008 12,083,956 (39,548) 12,044,408 11,986,396 99.52% 41,124 12,027,520 99.86% 16,888 0.14%2009 12,747,343 (125,971)12,621,372 12,556,281 99.48% 13,842 12,570,123 99.59% 51,249 0.41%2010 12,318,061 (17,084) 12,300,977 12,182,266 99.03% 63,658 12,245,924 99.55% 55,053 0.45%2011 11,796,659 (5,049) 11,791,610 11,637,719 98.69% 45,311 11,683,030 99.08% 108,580 0.92%2012 12,436,816 (39,060) 12,397,756 12,252,510 98.83% - 12,252,510 98.83% 145,246 1.17%Source: Tarrant County Tax Office and Tarrant Appraisal DistrictDelinquent TaxesTotal CollectionCollected within theFiscal Year of the Levy
CITY OF EULESS, TEXAS RATIO OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS (Unaudited) Table 9 99 Taxable General PercentageGeneral Certificates Certificates Sales Tax W&S Drainage Certificates Obligation Total of Personal PerFiscal Obligation of of Revenue Revenue Revenue of Refunding Primary Income CapitaYear Bonds Obligation Obligation Bonds BondsBonds Obligation Bonds Government (1) (1)2003 15,381,815 18,420,000 9,875,000 8,860,000 3,300,000 1,300,000 10,660,000 - 67,796,815 5.31% 1,414 2004 17,525,000 21,915,000 9,700,000 8,310,000 5,220,000 1,135,000 500,000 11,095,000 75,400,000 5.67% 1,516 2005 27,410,000 10,365,000 9,510,000 7,725,000 4,915,000 965,000 210,000 11,095,000 72,195,000 5.27% 1,445 2006 28,820,000 7,175,000 9,305,000 7,175,000 4,805,000 785,000 - 11,005,000 69,070,000 4.86% 1,361 2007 27,350,000 6,475,000 9,080,000 6,540,000 4,585,000 600,000 - 10,560,000 65,190,000 4.40% 1,232 2008 25,985,000 5,735,000 8,840,000 5,875,000 4,350,000 410,000 - 10,105,000 61,300,000 4.15% 1,148 2009 24,350,000 5,330,000 8,580,000 5,185,000 4,105,000 210,000 - 9,640,000 57,400,000 3.78% 1,062 2010 30,765,000 4,910,000 - 4,470,000 3,850,000 - - 9,160,000 53,155,000 3.36% 981 2011 29,235,000 6,590,000 - 3,715,000 3,580,000 - - 8,675,000 51,795,000 3.66% 1,010 2012 29,915,000 3,230,000 - 2,910,000 3,435,000 - - 8,165,000 47,655,000 3.45% 925 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 10 100 Net DebtGeneral Certificates Less: Debt Net O/S Estimated Taxable to Taxable NetFiscal Obligation of Service Debt Population Assessed Assessed Debt PerYear Bonds Obligation Reserves Total (1) Value (2) Value Capita2003 12,409,653$ 22,910,000$ 429,997$ 34,889,656$ 47,950 1,962,426,253$ 1.78%728$ 200415,381,815 18,420,000 481,633 33,320,182 49,750 2,069,693,324 1.61%670 200517,525,000 21,915,000 692,148 38,747,852 49,950 2,185,914,016 1.77%776 200627,410,000 10,365,000 637,136 37,137,864 50,750 2,253,534,573 1.65%732 200728,820,000 7,175,000 955,555 35,039,445 52,900 2,440,482,117 1.44%662 200827,350,000 6,475,000 1,029,164 32,795,836 53,400 2,582,911,400 1.27%614 200925,985,000 5,735,000 1,049,445 30,670,555 54,073 2,660,000,740 1.15%567 201024,350,000 5,330,000 684,246 28,995,754 54,200 2,589,844,156 1.12%535 201122,655,000 4,910,000 880,619 26,684,381 51,277 2,522,998,708 1.06%520 201222,760,000 3,230,000 956,430 25,033,570 51,500 2,651,724,005 0.94%486 Note: Source:(1) Estimates by North Central Texas Council of Governments(2) Tarrant Appraisal District General Bonded Debt OutstandingDetails regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Total does not include self-supporting debt (taxable general obligation refunding bonds and enterprise debt). Figures for years prior have been restated to reduce total debt outstanding by available reserves.
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2012 – (Unaudited) Table 11 101 Estimated Estimated Share ofDebt Percentage OverlappingGovernmental Unit Outstanding Applicable DebtDebt repaid with property taxesGrapevine-Colleyville Independent School District 416,410,525$ 8.66% 36,061,151$ Hurst-Euless-Bedford Independent School District 330,852,675 20.47% 67,725,543Tarrant County 315,898,924 2.16% 6,823,417Tarrant County Hospital District 56,385,000 2.16% 1,217,916Tarrant County College District 20,765,026 2.16% 448,525Subtotal, overlapping debt112,276,551City of Euless (direct debt)25,990,000 100.00% 25,990,000Total direct and overlapping debt138,266,551$ Note:The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages wereestimated by determining the portion of another governmental unit's taxable value that is within the City's boundaries anddividing it by each unit's total taxable value.Source: Debt outstanding data provided by each governmental unit.
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 12 102 LessInterestTotalOperatingNetandFiscal Revenues Expenses RevenueFiscalCoverageYear (1)(2)Available Principal Charges Total Ratio2003 13,016,934 10,431,249 2,585,685 615,000 199,245 814,245 3.182004 13,443,174 10,902,522 2,540,652 500,000 183,946 683,946 3.712005 14,548,715 11,555,108 2,993,607 305,000 275,524 580,524 5.162006 16,568,058 13,485,955 3,082,103 195,000 229,437 424,437 7.262007 14,645,201 13,668,755 976,446 220,000 213,643 433,643 2.252008 16,369,368 14,722,644 1,646,724 235,000 191,228 426,228 3.862009 16,594,856 13,722,593 2,872,263 245,000 180,820 425,820 6.752010 17,475,984 14,799,879 2,676,105 255,000 171,452 426,452 6.282011 20,148,834 15,952,372 4,196,462 270,000 161,333 431,333 9.732012 18,714,408 15,824,724 2,889,684 90,000 105,785 195,785 14.76Notes: (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 13 103 LessInterestTotal Operating NetandFiscal Revenues Expenses RevenueFiscalCoverageYear (1)(2) Available Principal Charges Total Ratio2003 653,916 291,668 362,248 160,000 32,494 192,494 1.882004 667,131 225,815 441,316 165,000 46,255 211,255 2.092005 700,316 265,444 434,872 170,000 41,305 211,305 2.062006 741,256 257,919 483,337 180,000 35,355 215,355 2.242007 790,647 420,586 370,061 185,000 34,303 219,303 1.692008 736,433 298,712 437,721 190,000 21,565 211,565 2.072009 714,250 286,741 427,509 200,000 14,417 214,417 1.992010 700,827 457,376 243,451 210,000 8,400 218,400 1.112011 699,709 519,622 180,087- - - n/a2012 707,165 604,994 102,171- - - n/aNotes: (1) Operating and nonoperating revenues of drainage utility fund(2) Total operating expenses of drainage utility fund exclusive of depreciation and amortization
CITY OF EULESS, TEXAS DEMOGRAPHIC STATISTICS – LAST TEN FISCAL YEARS (Unaudited) Table 14 104 PerPersonal Estimated Capita IncomeSchool UnemploymentFiscalPopulation Income (thousands Median Age Enrollment RateYear(1)(2)of dollars)(2)(3)(4)200347,950 26,630 1,276,909 N/A19,5004.7%200449,750 26,710 1,328,823 N/A19,7003.8%200549,950 27,406 1,368,930 N/A19,6004.5%200650,750 27,999 1,420,949 33.720,1114.8%200752,900 28,029 1,482,734 34.120,3183.8%200853,400 27,634 1,475,656 34.220,0484.5%200954,073 28,110 1,519,992 34.420,5047.3%201054,200 29,179 1,581,502 32.420,8987.9%201151,277 27,590 1,414,732 34.421,0717.3%201251,500 26,820 1,381,230 34.421,5706.6%Notes: 1. Estimates by North Central Texas Council of Governments 2. Estimates by Claritas Site Reports; Research & Demographic Solutions 3. Hurst-Euless-Bedford Independent School District 4. Texas Workforce Commission
CITY OF EULESS, TEXAS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago (Unaudited) Table 15 105 PercentagePercentageof Total Cityof Total CityEmployerEmployees Employment EmployerEmployees EmploymentHEB ISD818 3.25% City of Euless368 1.72%LSG Sky Chefs, Inc.800 3.18% Super Target300 1.41%City of Euless360 1.45% Krispy Kreme200 0.94%Redi-Mix Concrete355 1.41% Liberty Printing190 0.89%Autogrill Group, Inc.350 1.39% Atlas Match150 0.70%Life Outreach International181 0.72% Home Depot150 0.70%Super Target150 0.60% First Odyssey Group100 0.47%Lowe's125 0.50% Office Depot100 0.47%Home Depot122 0.48% Ferguson Enterprises90 0.42%TJ Lambrecht Construction120 0.48% Heath & Company75 0.35%Total3,381 13.46%1,723 8.07%Source: 2003 and 2012 Official Statements, City of Euless Planning and Development Department20122003
CITY OF EULESS, TEXAS FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 16 106 Function/Program2003 2004 2005 2006 2007 2008 2009 2010 2011 2012General Governmentand Administration 52.25 52.25 51.25 50.75 53.00 54.50 54.50 50.00 48.50 48.50 Public Safety117.00 117.00 118.00 120.00 123.00 126.00 126.00 118.00 121.00 129.00 Fire Safety61.00 61.00 64.00 67.00 70.00 73.00 73.00 71.00 71.00 72.00 Development Services15.00 15.00 12.00 12.00 12.00 12.00 12.00 11.50 13.50 6.00 Culture and Recreational35.75 35.75 35.75 35.75 36.50 36.00 36.00 30.00 31.00 32.00 Water and Wastewater49.00 49.00 48.00 49.50 50.00 50.00 50.00 46.00 42.00 42.50 Golf Course15.25 15.25 15.25 15.25 15.25 15.25 17.25 13.00 13.00 13.00 Public Works15.75 15.75 15.75 15.75 15.75 15.75 15.75 14.00 17.50 18.50 Service Center6.00 6.00 6.00 6.00 6.00 6.00 6.00 5.00 5.00 5.00 Risk Management / Insurance2.00 2.00 2.00 2.00 1.50 1.50 1.50 1.50 1.50 1.50 Total369.00 369.00 368.00 374.00 383.00 390.00 392.00 360.00 364.00 368.00 Source: City Budget Office
CITY OF EULESS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 17 107 Function/Program2003 2004 2005 2006 2007 2008 2009201020112012Public SafetyPoliceNumber of Certified Officers81818282828585858585Number of Citations Issued27,145 25,491 32,200 38,359 34,368 26,503 29,925 24,126 21,790 22,787FireNumber of Certified Firefighters59596265687170696970Number of Alarms4,849 4,699 3,949 3,661 3,675 4,197 3,827 4,097 4,196 4,204Number of EMS Calls2,320 1,854 2,202 2,317 2,561 2,688 2,634 2,793 2,848 2,982Municipal CourtCases Filed35,385 34,258 41,027 46,085 39,096 30,551 33,670 31,442 27,022 26,889DevelopmentNumber Residential Inspections - New182 51831931558771001015244Number Commercial Inspections - New413810242816141129Number Multifamily Inspections - New1 - - - - - - - - - Public WorksStreet Overlay (Square Footage)1,238,046 1,004,735 1,391,889 1,117,894 664,472 999,285 797,326 770,380 953,406 368,654Cultural and RecreationalParks and RecreationRecreation Center Memberships4,427 4,123 4,260 4,160 3,990 3,944 3,703 2,443 4,337 3,654Class Attendance (Youth/Adult)17,532 24,522 24,575 25,704 29,067 59,541 74,452 56,833 28,804 41,766Water and WastewaterNumber of Water Consumers23,231 23,848 25,012 24,486 24,484 24,608 24,677 24,760 24,924 24,428Water Produced (In Gallons x 1000)555,046 384,306 314,085 372,695 414,934 348,548 730,291 579,154 477,914 299,107Water Purchased - TRA (In Gallons x 1000)1,895,120 2,146,706 2,382,040 2,947,945 2,202,426 2,291,974 1,955,535 2,028,760 2,566,370 2,440,539Water Supplied (In Gallons x 1000)2,450,166 2,531,012 2,696,125 3,320,640 2,617,360 2,640,522 2,685,826 2,607,914 3,044,284 2,739,646Annual Rainfall (In Inches)30.75 41.08 32.51 20.74 53.51 27.10 36.32 38.65 22.26 36.57Golf CourseNumber of Paid Rounds Played30,861 33,146 32,725 36,639 35,094 36,528 43,029 32,996 35,075 34,550Source: City DepartmentsComprehensive Annual Financial ReportCity Budget OfficeNotes:N/A - Data not available.(1) 2003 through 2010 are reported in linear miles. 2011 forward are reported in lane miles.
CITY OF EULESS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 18 108 Function/Program2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Public SafetyPolice Stations 1 1 1 1 1 1 1 111Fire Stations3 3 3 3 3 3 3 333Public WorksStreets- Paved (linear miles) 182.0 182.0 182.0 182.0 211.0 217.6 217.6 217.6 332.1 332.4Cultural and RecreationalSwimming Pools3 3 3 3 3 3 3 333Parks16 16 16 17 17 17 17 171717Parks Land (Acres)539 539 539 566 632 632 632 632632632Community Buildings5 5 5 5 5 5 5 566Ampitheater2 2 2 2 2 2 2 222Conference Centre1 1 1 1 1 1 1 111Golf Course1 1 1 1 1 1 1 111Athletic Fields24 24 24 35 35 35 35 333333Library Holdings106,442 96,228 99,972 97,334 98,613 101,672 103,122 106,121 110,149 111,230 Water and WastewaterWater Mains (miles)209.00 210.00 212.00 218.00 222.10 226.80 226.80 228.20 228.50 227.99 Fire Hydrants1,318 1,318 1,318 1,377 1,441 1,477 1,477 1,525 1,526 1,550 Wastewater Mains (miles)157.0 161.0 162.0 162.0 168.0 186.3 186.3 186.5 186.7 189.2 Source: City Departments