HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2016
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City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2016
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, 2016
C O N T E N T S
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i-viii
City Officials ix
Organizational Chart x
GFOA Certificate of Achievement xi
FINANCIAL SECTION
Independent Auditor's Report 1-3
Management’s Discussion and Analysis (unaudited) 5-17
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 18
Statement of Activities 19
Fund Financial Statements
Governmental Funds
Balance Sheet 20
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 21
Statement of Revenues, Expenditures and Changes in Fund Balances 22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement
of Activities 23
Proprietary Funds
Statement of Net Position 24-25
Statement of Revenues, Expenses, and Changes in Net Position 26
Statement of Cash Flows 27-28
Fiduciary Funds
Statement of Net Position 29
Statement of Changes in Fiduciary Net Position 30
Notes to Basic Financial Statements 31-71
Required Supplementary Information
Schedule of Changes in Net Pension Liability
and Related Ratios (Texas Municipal Retirement System) 72
Schedule of Contributions (Texas Municipal Retirement System) 73
Schedule of Funding Progress – OPEB Trust 74
Budgetary Comparison Schedules 75-77
Notes to Required Supplementary Information 78
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 82-83
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 84-85
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2016
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 86
Half-Penny Sales Tax Special Revenue Fund 87
Police Drug Enforcement Special Revenue Fund 88
Crime Control and Prevention District Special Revenue Fund 89
Grant Special Revenue Fund 90
Police Seized Assets Special Revenue Fund 91
Juvenile Case Special Revenue Fund 92
Glade Parks PID Special Revenue Fund 93
TIRZ #3 Glade Parks Special Revenue Fund 94
Euless Midtown Public Improvement District Fund 95
Cable PEG Fees Special Revenue Fund 96
Non-Major Proprietary Funds
Combining Statement of Net Position 98-99
Combining Statement of Revenues, Expenses, and Changes in Net Position 100
Combining Statement of Cash Flows 101
Internal Service Funds
Combining Statement of Net Position 103
Combining Statement of Revenues, Expenses, and Changes in Net Position 104
Combining Statement of Cash Flows 105
Escrow Agency Funds
Combining Statement of Changes in Assets and Liabilities 106
STATISTICAL SECTION (Unaudited) Table Page(s)
Net Position by Component 1 108
Changes in Net Position 2 109-110
Fund Balances, Governmental Funds 3 111
Changes in Fund Balances, Governmental Funds 4 112
Estimated Actual Value of Taxable Property 5 113
Direct and Overlapping Property Tax Rates 6 114
Principal Property Tax Payers 7 115
Property Tax Levies and Collections 8 116
Ratio of Outstanding Debt by Type 9 117
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 118
Direct and Overlapping Governmental Activities Debt 11 119
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 120
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 121
Demographic Statistics 14 122
Principal Employers 15 123
Full-time Equivalent City Government Employees by Function/Program 16 124
Operating Indicators by Function/Program 17 125
Capital Asset Statistics by Function/Program 18 126
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INTRODUCTORY SECTION
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201 N. Ector Drive, Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.eulesstx.gov
February 28, 2017
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, 2016. 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,
2016, are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements;
assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an
unmodified (“clean”) opinion that the City’s financial statements for the fiscal year ended
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September 30, 2016, are fairly presented in conformity with GAAP. The independent
auditor’s report is presented as the first component of the Financial Section of this report.
This report is presented in three sections: Introductory, Financial, and Statistical. The
Introductory Section includes this transmittal letter, a listing of City Officials, and an
organizational chart of the City. The Financial Section includes the independent
auditor’s report on the basic financial statements, Management’s Discussion and Analysis
(“MD&A”), basic financial statements, the notes to the basic financial statements, and
combining and individual fund statements and schedules. The MD&A is a narrative
introduction, overview, and analysis to accompany the basic financial statements. This
letter of transmittal is designed to complement, and should be read in conjunction with,
the MD&A. The City of Euless’ MD&A can be found immediately following the
independent auditor’s report. The Statistical Section includes financial and demographic
information relevant to readers of the City’s financial statements. The statistical data is
generally presented on a multi-year basis.
Profile of the City of Euless, Texas
The City of Euless is located in North Central Texas in Northeast Tarrant County
approximately 16 miles west of Dallas and 16 miles east of Fort Worth. Euless is readily
accessible by State Highway 183 which is a multi-lane expressway linking Dallas to Fort
Worth. Other major highways through the City include State Highway 121, State
Highway 360, State Highway 10 and Farm-to-Market Road 157. Euless’ centralized
location provides quick access to both Dallas and Fort Worth metropolitan areas and is
adjacent to Dallas-Fort Worth International Airport (“DFW Airport”) in east Tarrant
County, one of the world’s busiest airports. The City is approximately 16.9 square miles
and serves a population of approximately 54,250.
The City of Euless was incorporated February 24, 1953 and is a home rule city operating
under a Council/Manager form of government. The City Council is comprised of the
mayor and six council members who are elected at large. The Council has the authority
to enact local legislation, levy taxes, adopt budgets, determine policies, incur debt, and
appoint the City Secretary, City Attorney, Municipal Court Judge, and the City Manager.
The City Manager reports directly to the City Council, and is responsible for the daily
management of the various City departments. Council members serve three-year
staggered terms, with two council members elected each year. The Mayor is elected to
serve a three-year term. In addition, several boards and commissions were created to
assist the City Council in deciding matters of policy and procedure and meet on various
issues throughout the year.
The City of Euless provides a full range of services to its citizens including: police and
fire protection; emergency ambulance services; municipal court operations; development
and code services; construction and maintenance of streets and highways, parks, and
recreational facilities; water service and wastewater collection and treatment; and library
operations. The City also operates a top-ranked, 18-hole golf course and conference
center, an adult softball facility, youth athletic complex, and an aquatics center. Internal
services of the City account for risk management, equipment replacement, and employee
insurance coverage activities on a cost reimbursement basis. Private contractors, through
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a franchise agreements, provides solid waste and recycling collections and disposal
services for the City.
Four component units of the City, the Euless Development Corporation, the Euless Crime
Control and Prevention District, Tax Increment Reinvestment Zone (TIRZ) #3 – Glade
Parks, and Tax Increment Reinvestment Zone (TIRZ) #4 – Midtown, are presented in the
financial statements of the City as blended component units. Data for these organizations
is recorded and presented in special revenue funds of the City’s financial statements.
Additional information on these component units can also be found in Note 1 in the
Notes to the Basic Financial Statements.
The annual budget serves as the foundation for the City of Euless’ financial planning and
control. Per the City Charter, the City Manager provides to the City Council the
proposed budget by August 1st each year. The budget is filed with the City Secretary and
is open for public inspection. Upon receipt of the budget, the City Council sets a date for
a public hearing at which time interested citizens may express their opinions regarding
the proposed budget. The Charter requires the Council to adopt the budget by a favorable
majority vote at least ten days prior to the beginning of the next fiscal year.
The City Manager is authorized to transfer budgeted amounts between line items and
departments within any fund; however any revisions that alter the total expenditures of
any fund must be approved by the City Council. Budgetary control has been established
at the individual fund level. Financial reports are produced showing budget to actual
expenditures by line item and are distributed monthly to City departments for review.
Economic Condition
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
City of Euless operates.
The City of Euless is located in Tarrant County in the heart of the Dallas/Fort Worth
(DFW) Metroplex and adjacent to the DFW International Airport. Thus, the economic
vitality of the region significantly impacts the economic health of Euless. Airports
Council International ranks DFW Airport as the tenth busiest airport in the world,
handling over 65 million passengers a year. DFW Airport reports service is provided to
213 destinations. It is reported by the airport that economic activity across the North
Texas area attributable to DFW Airport totals $37 billion in economic output, 228,000 in
full-time jobs, and $12.5 billion in payroll.
According to the North Texas Commission, DFW is the fourth largest region in the US
and has experienced tremendous growth during the past decade. With its highly-
diversified economy, DFW has a population of over 7.1 million, a Gross Metro Product
of $504 billion, a labor force of over 3.5 million, a 3.6% job growth rate, 20 Fortune 500
Firms, and college enrollment of almost 333,000. Such an economic environment has
helped the region weather economic downturns in key sectors better than other regions in
the nation.
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The Alliance Texas development in North Fort Worth is an 18,000-acre master-planned,
mixed-use community which is home to more than 425 companies, 44,000 plus
employees, and is anchored by the inland port known as the Alliance Global Logistics
Hub. This area offers a variety of commercial real estate options, industrial space, office
space, and retail facilities and had a $4.32 billion annual impact in North Texas in 2014
(www.allianceairport.com, Alliance Texas Facts).
The Dallas Cowboys AT&T Stadium and Texas Rangers Globe Life Park in Arlington,
within minutes of Euless, continue to attract additional tourism to the City by hosting
major concerts and sporting events, including Super Bowl XLV in 2011, World Series in
2010 and 2011, NCAA Regional Basketball Tournament in 2013, the NCAA Final Four
Basketball Tournament in 2014, and the first College Playoff National Championship
game in 2015.
Taxable value for all residential and commercial property in the City of Euless is
estimated at approximately $3.55 billion for tax year 2016, which is a 12.7% increase
from the prior year, due to an almost equal increase in residential and commercial real
estate property values. Sales tax collections increased 10.9% during FY2015-16. Euless
continues to look for additional revenue opportunities in order to minimize the tax burden
to citizens and strives to cut costs without impacting service.
The City also receives a significant amount of revenue from a consolidated rental car
facility located at DFW Airport. The City Council has chosen to use this funding source
to build reserves and to cash flow capital projects in lieu of debt issuance. This has
allowed the City to refrain from becoming overly dependent on a volatile resource while
providing for needed improvements for citizens.
The City of Euless has approximately 690 acres of undeveloped land outside of DFW
Airport. Much of the Glade Parks mixed-use development consisting of major retail,
restaurants, neighborhood pedestrian-oriented retail uses and residential neighborhoods is
open with several other structures currently under construction.
During the fiscal year the City continued the annual street overlay, Americans with
Disability Act (ADA) improvements, and street light and sidewalk maintenance
programs. Additionally, the City completed wastewater line replacements for sections of
Crane Drive and Town Creek Drive, water line replacement at Donley and Shelmar
Drive, a 24 inch valve replacement, a portion of the Reclaimed Water Line Extension,
and Phase IV of the Texas Star Sports Complex.
The City benefits from a well-educated workforce, with approximately 90.3% of the
population being high school or higher education graduates. Nationwide that rate is
86.7%. In addition, Euless’ median household income of $54,974 compares favorably to
$53,889 for the United States (source: 2011-2015 U.S. Census Bureau Quick Facts).
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Long-Term Financial Planning
The City of Euless has developed a comprehensive capital improvements document as
well as a multi-year financial plan. Such strategic planning has allowed the City Council
to fund several major infrastructure upgrades, park enhancements, and capital purchases
in a systematic manner while considering the full impact to the operating budget and tax
requirements. Many of these projects have been completed on a pay-as-you-go basis by
utilizing operating revenues, excess reserves, and rental car taxes, thereby avoiding the
issuance of additional debt.
The City Council and citizens of Euless have determined that debt issuance is a viable
method of financing major capital projects. Analysis of potential debt issuance includes
the operating impact the repayment thereof will have on citizens, property tax rates, and
enterprise fund service fee revenues. Per the City’s fiscal policies, long-term debt will
not be used for operating purposes and the life of the debt instruments will not exceed the
useful life of the projects financed. Policy also specifies that bonds with an average life
of 20 years or less will be issued to reduce net interest cost and maintain future flexibility
by paying off debt earlier. The majority of the City’s existing long-term debt was used to
finance infrastructure needs and traditional government facilities such as streets, utility
infrastructure, 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 operating reserve is maintained at 103
days of operations which equates to approximately 28.3% of next year’s budgeted
expenditures. At the end of the current year, the City was in compliance with this policy.
The City’s fiscal policies for the Water and Wastewater Fund require the maintenance of
a minimum reserve of 45 to 75 days of working capital. The City currently maintains an
85.5-day reserve. Water and Wastewater revenue bond covenants require the City to
maintain reserve amounts sufficient to cover the average annual debt service
requirements. This revenue bond reserve is in addition to the working capital required by
the City’s fiscal policies and is maintained in a separate fund on the general ledger. As of
September 30, 2016, the revenue bond reserve totaled $641,350.64 which meets the
required average annual debt service per bond covenants.
Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. rates
the City’s general obligation debt and sales tax revenue debt at AA and the water and
wastewater revenue debt at AA+. Moody’s Investor Service, Inc. rates the general
obligation debt and water and wastewater revenue debt at Aa2. Additional information
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about the rating agencies or the significance of the ratings provided may be obtained from
each agency’s web site.
Major Initiatives
The City has partnered with Tarrant County, surrounding cities, local churches and
businesses to renovate qualifying homes in the community through the Tarrant County
Home Program and the Community Powered Revitalization Program (“CPR”). Through
this partnership, the cities of Hurst, Euless, and Bedford have joined forces to assist
qualifying residents in all three communities.
The City’s Facility Master Plan and ADA Transition Plan address facility needs of the
City. The Parks Master Plan, which focuses on improving the quality of life for the
community, includes additional hike/bike trails, park amenities and upgrades.
The City has completed several projects in the past year and has many others
underway. The City believes it is critical that the street, water, wastewater, and drainage
systems are properly maintained and systematically upgraded. While these are not
glamorous, these represent the most basic governmental functions. Deferral of these
projects creates a financial burden for future generations.
During 2016, several street overlays were completed in accordance with Pavement
Condition Index scoring criteria as well as several Americans with Disabilities Act curb
and ramp improvements.
Engineering is underway for a traffic signal at Harwood and Bear Creek Parkway.
Wastewater lines in the vicinity of Crane Drive and Town Creek Drive were replaced and
water lines along Donley, Shelmar, and Ector Drive were upgraded. Wastewater line
replacements at Glenn Drive are underway. Design is underway for wastewater line
replacements at Cedar Hill Estates/Hollywood Blvd and Oakwood Terrace.
Water and wastewater lines for the Midtown Express project are also being relocated.
Three 24” water valves were replaced which is critical in allowing water service to be
shut off when necessary with minimal impact to residents.
A water meter replacement program is approximately 80% complete and should be
complete by spring 2017.
The next phase of the reclaimed water system expansion was also completed with eight
new properties now receiving reclaimed water. The City will also continue to seek more
low interest financing from the Texas Water Development Board to complete the
reclaimed water line project.
The Development and Engineering Building renovation is complete and staff has moved
back into the building. The courtyard renovation is substantially complete with the
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finishing touches being placed on the landscaping and hardscape. Additional parking and
storage areas have been added at the public works facility.
The new 60/90 field and additional parking at the Parks at Texas Star are expected to be
completed in April 2017 and the renovation of the existing fields to synthetic turf was
completed in January. Work is also beginning on the Glade Parks Trail
Connection. Renovation of the golf maintenance building will begin soon
Over the last several years, the City has worked with a developer on a major, mixed-use
center located along the southwest corner of Glade Road and Highway 121. This center
will ultimately provide approximately 1.2 million square feet of retail/office and includes
a unique residential component. The City expects the sales tax benefit from this center to
be significant. In an effort to promote development in this area, the City created a Tax
Increment Reinvestment Zone (“TIRZ”) for the Glade Parks development and approved
the related project and financing plan. This plan authorized the City to undertake certain
public improvements associated with the Glade Parks development. The City also
executed a development agreement with Ruby 12 Glade Retail, LLC, formally known as
Glade 121 L.P., which specified the extent of City provided improvements and provided
for the conditions under which these improvements will be constructed or reimbursed.
Additionally, the City created the Glade Parks Public Improvement District (“PID”)
which is funded from assessments within the district. At the 2015 fiscal year-end, the
infrastructure improvements were completed. During Fiscal Years 2015 and 2016
numerous businesses opened in this development creating increased property values and
retail sales. An additional phase was added to this development in 2015 that included
construction of a parking garage, park, and park amenities. The existing Glade Parks
TIRZ also covers this project as well as a PID to support debt issued for these additional
public improvements. This construction is anticipated to begin in 2017.
The City approved a planned development known as RiverWalk which includes
approximately 200 acres located at the northwest corner of Airport Freeway and State
Highway 360 extending north to Harwood Road. Lennar Homes is developing four (4)
subdivisions within the RiverWalk mixed use project, including The Dominion at Bear
Creek, which is a 241 lot single-family subdivision located south of Midway Drive,
between Fuller-Wiser Road and Bear Creek Parkway. The Villas at Bear Creek is a 60
lot single-family subdivision at the southeast corner of Bear Creek Parkway and Midway
Drive and The Estates at Bear Creek is a 112 lot single-family subdivision. The NRP
Group completed construction of a 300-unit urban loft project in 2015, with plans to
begin development of a second phase of 200 units in 2017.
The City also approved a 56 acre mixed-use development to be called Founders Parc,
previously called Midtown, which is located on the south side of State Highway 183, east
of Farm-to-Market Road 157 and north of State Highway 10. This development will
include 259 new single family homes, urban lofts, and over 67 thousand square feet of
retail space. Both a TIRZ and a PID have been created by the City to support debt for
additional public improvements needed for the area including roadways, water
distribution system, sanitary sewer and storm sewer collections systems, hardscaping, and
amenities.
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Awards and Acknowledgements
The Government Finance Officers Association (“GFOA”) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Euless for its
Comprehensive Annual Financial Report (“CAFR”) for the fiscal year ended September
30, 2015. 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 29 consecutive years. We believe that
the current CAFR meets the Certificate of Achievement program requirements and are
submitting it to GFOA for review.
In addition, the City of Euless received the GFOA’s Distinguished Budget Presentation
Award for its annual budget document. The City of Euless has received the
Distinguished Budget Award for the last 25 years. In order to qualify for the award, the
City’s budget document was judged to be proficient in several categories, including as a
policy document, a financial plan, an operations guide, and a communications device.
The preparation of this report on a timely basis could not have been accomplished
without the efficient and dedicated services of the entire staff of the Finance Department.
Appreciation is expressed to City employees throughout the organization, especially
those who were instrumental in the successful completion of this report.
We would like to thank the Mayor and members of the City Council for their support in
planning and conducting the financial operations of the City in a responsible,
professional, and progressive manner. As always, the City of Euless staff welcomes and
appreciates your comments.
Respectfully Submitted,
Loretta Getchell Janina Jewell
City Manager Director of Finance
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FINANCIAL SECTION
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1
AN INDEPENDENT MEMBER OF
BAKER TILLY INTERNATIONAL
WEAVER AND TIDWELL LLP
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
2821 WEST SEVENTH STREET, SUITE 700, FORT WORTH, TX 76107
P: 817.332.7905 F: 817.429.5936
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Euless, Texas (the City) as of and for the year ended September 30, 2016, and the
related notes to the financial statements which collectively comprise the City’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America, and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
City of Euless, Texas
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Euless, Texas, as
of September 30, 2016, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the TMRS pension schedules, the analysis of OPEB
funding progress, and budgetary comparison information on pages 5 through 17 and 72 through
78 be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining
and individual nonmajor fund financial statements and schedules, and statistical tables are
presented for purposes of additional analysis and are not a required part of the financial
statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
City of Euless, Texas
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America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 24, 2017, on our consideration of the City’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City’s internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 24, 2017
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CITY OF EULESS, TEXAS
Management’s Discussion and Analysis
For the Year Ended September 30, 2016
(Unaudited)
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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, 2016. In the broadest context, the financial well-being of a
government lies in the underlying wealth and willingness of its citizens and property owners to
pay adequate taxes combined with the vision of the government’s elected and appointed
leadership to spend those taxes strategically so that the City’s tax base, service levels, City
assets, and the City’s desirability will be maintained not just for the current year but well into the
future.
Financial reporting is limited in its ability to provide the “big picture” but rather focuses on
financial position and changes in financial position. In other words, are revenues and/or
expenditures higher or lower than the previous year? Has net position (containing both short-
term and long-term assets and liabilities) or fund balances (the current “spendable” assets less
current liabilities”) of the government been maintained? Readers are encouraged to consider the
information presented here in conjunction with the additional information furnished in the letter
of transmittal (pages i-viii of this report) and the statistical section (pages 107-126 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 and deferred outflows of resources of the City of Euless exceeded its liabilities
and deferred inflows of resources at the close of the most recent fiscal year by $206,540,558
(Net position). This number must be viewed in the context that the vast majority of the
City’s net position of $167,319,911 (81%) is net investment in capital assets and that most
capital assets in government do not directly generate revenue nor can they be sold to generate
liquid capital. The net position restricted for specific purposes totaled $24,487,525 (12%).
The remaining $14,733,122 (7%) is unrestricted net position and may be used to meet the
government’s ongoing obligations to citizens and creditors in accordance with the City’s
fund designation and fiscal policies.
Governmental activities realized an increase in total net position of $6,746,137 and business-
type activities realized an increase in total net position of $5,451,249 bringing the total
increase in net position for the City to $12,197,386.
At the close of the current fiscal year, the City of Euless’ governmental funds reported
combined ending fund balances of $42,221,409 which represents an increase of $11,863,162
in comparison with the prior year. Within this total, $1,995,548 is restricted for debt service;
$12,715,424 is restricted by bond covenant for capital projects; $121,041 and $213,386 are
restricted for court technology and juvenile case management, respectively; and another
$1,977,963 is restricted for capital projects by developer agreements. Amounts restricted for
cable PEG fees and historical preservation total $525,451 and $1,245, respectively.
6
Nonspendable fund balance of $42,988 represents fund balance amounts for inventories and
prepaid items. Fund balances of $12,654,839 represent assigned fund balance in the general,
special revenue, and capital projects funds. The unassigned fund balance in the General Fund
of $11,973,524 can be used for any lawful purpose. The General Fund unassigned balance
represents 33% of fiscal year 2016 total fund expenditures.
The City’s total capital assets (net of accumulated depreciation) increased by $18,480,844
which is primarily attributed to completion of capital improvement projects and other asset
additions exceeding current year depreciation expense and asset retirements.
The City’s debt payable increased by $15,970,000 or 34%, due to the issuance of certificates
of obligation and tax notes less scheduled principal payments.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless’ basic
financial statements which are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also
contains other required supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial Statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Euless’ finances, in a manner
similar to a private-sector business.
The statement of net position presents information on all of the City of Euless’ assets and
deferred outflows of resources and liabilities and deferred inflows of resources, with the
difference between them reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Euless is
improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed
during the fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash receipts
and cash outlays in future fiscal periods (e.g., uncollected taxes and earned but unused
compensated absences).
The government-wide financial statements distinguish between functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include
general government and administration, public safety, highways and streets, development, and
culture and recreation. The business-type activities of the City include water and wastewater
system, drainage system, golf course, and other recreational activities.
The government-wide financial statements include not only the City of Euless (the primary
government), but also the Euless Development Corporation, the Crime Control and Prevention
District, the Tax Increment Reinvestment Zone #3 – Glade Parks and Tax Increment
Reinvestment Zone #4 – Euless Midtown which are legally separate entities that are financially
7
accountable to the City. A blended presentation has been used to report the financial information
of these component units.
The government-wide financial statements can be found on pages 18-19 of this report.
Fund Financial Statements. A fund is a self-balancing set of accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Euless, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City can be divided
into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements with
the exclusion of internal service fund activity. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, the reader may better understand the long-term impact of the government’s near-
term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains twenty-three individual governmental funds. Information is presented
separately in the governmental funds balance sheet and in the governmental funds statement of
revenues, expenditures, and changes in fund balances for the General, Debt Service, Car Rental
Tax, and TIRZ#4 Midtown CIP funds, all of which are considered to be major funds. Data from
the other nineteen governmental funds are combined into a single, aggregate presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General and Car Rental Tax major
governmental funds. A budgetary comparison schedule has been provided for each fund to
demonstrate compliance with the adopted budgets.
The basic governmental fund financial statements can be found on pages 20-23 of this report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise
funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses enterprise funds to account for its water
and wastewater, drainage utility, and golf operations, as well as several other recreational
activities. Internal service funds are an accounting device used to accumulate resources and
allocate costs internally among the City’s various functions. The City uses internal service funds
to account for its equipment replacement, risk management, and health insurance services.
Because these services predominately benefit governmental rather than business-type functions,
8
a portion of the activities in these funds is included within governmental activities in the
government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for Water and Wastewater, Drainage Utility, and Golf, all of which are considered to
be major funds of the City. Data from the other recreational activities are combined into a
single, aggregate presentation. Individual data for each of these non-major enterprise funds is
provided in the form of combining statements elsewhere in this report. The internal service
funds are combined into a single, aggregate presentation in the proprietary fund financial
statements. Individual data for the internal service funds is provided in the form of combining
statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 24-28 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 29 and 30 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 31-71 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City’s progress in
funding its obligations to provide pension and post-employment healthcare benefits to its
employees. Additionally, schedules comparing budgetary figures and actual results of the
General Fund and the Car Rental Tax Fund are also located in this section of the report.
Required supplementary information can be found on page 72-78 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 80-106 of this
report.
Government-Wide Financial Statement Analysis
As noted earlier, net position and especially net position by category may serve over time as a
useful indicator of a government’s financial position. In the case of the City of Euless, assets
exceeded liabilities by $206,540,558 as of September 30, 2016.
The largest portion of the City’s net position (81%) 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
9
available for future spending and with exception of business-type assets, do not generate direct
revenue for the City. They do represent, however, an obligation on the part of the City to
maintain these assets into the future.
Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (12%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
position of $14,733,122 (7%) may be used to meet the City’s ongoing obligations to citizens,
creditors, and employees.
Net Position
Governmental Business-type
Amounts shown in 000's activities activities Total
2016 2015 2016 2015 2016 2015
Current and other assets 64,607$ 50,308$ 29,791$ 31,111$ 94,398$ 81,419$
Capital assets 141,711 128,451 70,446 65,225 212,157 193,676
Deferred outflows 11,784 4,833 2,715 1,488 14,499 6,321
Total assets and
deferred outflows 218,102 183,592 102,952 97,824 321,054 281,416
Long-term liabilities 72,227 46,950 20,630 20,498 92,857 67,448
Other liabilities 15,411 13,615 4,813 5,395 20,224 19,010
Deferred inflows 1,209 518 223 97 1,432 615
Total liabilities and
deferred inflows 88,847 61,083 25,666 25,990 114,513 87,073
Net position:
Net investment in capital
assets 108,136 99,540 59,184 55,396 167,320 154,936
Restricted 17,509 5,666 6,979 3,883 24,488 9,549
Unrestricted 3,610 17,303 11,123 12,555 14,733 29,858
Total net position 129,255$ 122,509$ 77,286$ 71,834$ 206,541$ 194,343$
As of September 30, 2016 the City reports positive balances in all three categories of net
position, for the government as a whole, as well as for its separate governmental and business-
type activities. The same situation was true for fiscal year 2015.
The City’s unrestricted net position decreased by $15,124,147 in fiscal year 2016 as compared to
the unrestricted net position for the prior year. Restricted net position realized an increase of
$14,937,848 and the amount invested in capital assets, net of related debt also increased by
$12,383,685. The increase in total net position of $12.2 million results primarily from current
year operating results flowing to the restricted category of net position (unspent debt proceeds).
The increase in net investment in capital assets portion of net position primarily results from the
increase in construction in progress. The details of the results of current year operations are
found in the table shown on the following page.
10
Changes in Net Position
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2016 2015 2016 2015 2016 2015
REVENUES
Program revenues:
Fees, fines and charges
for services 7,029$ 6,614$ 30,732$ 27,327$ 37,761$ 33,941$
Operating grants and
contributions 578 598 - - 578 598
Capital grants and
contributions 3,376 3,229 2,943 1,747 6,319 4,976
General revenues:
Property taxes 14,752 14,358 - - 14,752 14,358
Sales taxes 20,365 18,360 - - 20,365 18,360
Car rental taxes 14,842 14,113 - - 14,842 14,113
Mixed beverage taxes 101 84 - - 101 84
Occupancy taxes 697 392 - - 697 392
Gross receipts taxes 4,467 4,556 - - 4,467 4,556
Investment income 272 127 105 40 377 167
Rents and royalties 1,106 1,167 - - 1,106 1,167
Gain (loss) on asset
disposal - - 13 4 13 4
Miscellaneous 693 35 - - 693 35
Total revenues 68,278 63,633 33,793 29,118 102,071 92,751
EXPENSES
Culture and recreation 6,999 6,468 - - 6,999 6,468
Development services 918 878 - - 918 878
General government 20,722 19,950 - - 20,722 19,950
Highways and streets 3,708 3,374 - - 3,708 3,374
Public safety 26,674 23,807 - - 26,674 23,807
Interest and fiscal
charges 1,807 1,137 - - 1,807 1,137
Water and wastewater - - 21,010 19,970 21,010 19,970
Drainage utility - - 1,414 1,320 1,414 1,320
Golf course - - 4,410 4,156 4,410 4,156
Recreational enterprises - - 2,211 2,010 2,211 2,010
Total expenses 60,828 55,614 29,045 27,456 89,873 83,070
Increase (decrease) in net
position before transfers 7,450 8,019 4,748 1,662 12,198 9,681
Transfers (704) 723 704 (723) - -
Increase (decrease) in net
position 6,746 8,742 5,452 939 12,198 9,681
Net position, beginning 122,509 113,767 71,834 70,895 194,343 184,662
Net position ending 129,255$ 122,509$ 77,286$ 71,834$ 206,541$ 194,343$
Governmental activities. Governmental activities increased the City’s net position by
$6,746,137 thereby accounting for most of the growth (55%) in total net position. Most
revenue categories, including property taxes, sales taxes, investment income, charges for
services, and capital grants and contributions, exceeded prior year receipts. Sound fiscal
management and close monitoring of revenues and expenses allowed the City to realize an
increase in governmental activities net position before transfers of $7,449,888.
11
Total revenue for the governmental activities (excluding transfers) increased from the
previous year by $4,645,300. General Revenue, which is primarily made up of property
taxes, sales taxes, and car rental taxes, had a net increase of $4,102,879. Property tax
revenue increased due to an overall increase in taxable values of 3.38% over the prior year.
Sales tax collections increased as a result of new business openings and continued
improvement in the local economy. Program revenues, which consist primarily of fines, fees,
and charges for services increased $542,421. Development charges account for
approximately $308,000 of the increase and results from continued local development
activity in both the commercial and residential markets. The Midtown PID assessment
accounts for the increase in highways and streets program revenues. Public safety service
revenues decreased approximately $107,000 primarily as a result of a decrease in ambulance
fees and grant contributions. The increase of $147,000 in capital grants and contributions
primarily results from developer contributions of capital assets combined with the Parks
Green Ribbon Grant revenues.
Total expenses increased by $5,214,376 from FY2015 to FY2016. The raise package for
employees included an increase of 3.25% which accounts for a large portion of the expense
increase across all functions. The change in accounting principle related to pensions
implemented in the prior year that reduced personnel-related expenses, had the opposite
effect in the current year. Governmental activities realized additional pension-related
expenses due primarily to changes in the net pension liability and the amortization of
deferred outflows related to pensions. The allocation of internal service fund activity
increased expenses over the prior year by nearly $900,000. Furthermore, fluctuations in
depreciation expense as a result of the acquisition and disposal of capital assets affect the
various expense categories. General and administrative expenses increased primarily as a
result of sizable increases in rebate expense resulting from the increase in sales tax,
occupancy tax and car rental tax collections. Other than salary and related benefit expenses,
public safety expenses increased as a result of the purchases of protective vests and radios.
Upgrades to building security and L3 video systems also added to public safety expenses.
Highways and streets realized increases as a result of maintenance expenses for curbs and
sidewalks, signals and lights, and streets. The net position of general governmental
operations accounts for 63% of total net position.
Business-type activities. Business-type activities increased the City’s net position by
$5,451,249. The change in net position before transfers is $4,747,498. Charges for services
program revenues for the business-type activities increased from the previous year by
$3,404,660 due primarily to increased water and wastewater revenues and other enterprise
revenues. Capital grants and contributions increased by $1,196,550 primarily due to
developer contributions of capital assets resulting from local development. For the second
consecutive year, the City’s business-type activities suffered due to the extreme amount of
rainfall received throughout the year. The region received 53 inches for fiscal year 2016,
which exceeds a “normal” year by nearly 17 inches. Much of this rainfall was received
during the peak operating season for most of these enterprises.
12
Some expense categories realized decreases for the year, but overall business-type expenses
increased 63%, a portion of which is attributable to the second year effect of the
implementation of the new pension standards mentioned previously. An increase in the
suppliers’ volume rates resulted in increases in water purchase costs, reclaimed water
expenses, and wastewater treatment charges. Net position for business-type activities
represents 37% of total net position.
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City’s financing requirements. In particular, unassigned fund balance may serve as
a useful measure of a City’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Euless’ governmental funds reported combined
ending fund balances of $42,221,409, an increase of $11,863,162 in comparison with prior year.
Approximately 28% or $12 million constitutes unassigned fund balance in the general fund that
is available for spending at the City’s discretion. Another $42,988 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 ($1,995,548); 2) to pay for specific capital improvements per
developer agreements ($1,977,963); 3) restricted by bond covenant for specific capital projects
($12,715,424); and 4) for a variety of other restricted purposes ($861,123). Assigned fund
balance includes funds which management has planned to use for a specific purpose as well as
residual balances of governmental funds other than the general fund. Assigned fund balance
totals $12,654,839 and includes assigned fund balance in the general fund of $113,655 and
$12,541,184 which represents residual balances in other governmental funds. See discussion
under Fund Balance Classifications in Note 1 of the Notes to the Basic Financial Statements for
additional details on fund balance.
In the General Fund, the City originally budgeted for a decrease in fund balance (planned
reduction) of $2,405,177 which was later revised to a drawdown of $2,808,924. Due to a
positive budget variance in overall revenues and expenditures, the General Fund ended the year
with an increase to fund balance of $1,194,140 which represents a positive revised budget
variance of $4,003,059 resulting almost entirely from increased revenues of more than $1.2
million and expenditure savings of $2.75 million, before transfers.
Many General Fund revenue categories realized increases over the prior year and surpassed
budget estimates as well. Sales tax receipts, fines and fees, licenses and permits, and investment
income exceeded both budget and prior year. Sales taxes and licenses and permits grew as a
result of new development and continued improvement in the local economy. An increase in
property values resulted in property tax collections surpassing prior year revenues. However,
current year collections fell short of budget expectations. Gross receipt taxes also fell short of
budget estimates and failed to attain prior year levels primarily as a result of shortfalls in gas and
electric collections. Although municipal court fines fell short of expectations, overall fines and
13
fees exceeded projections and prior year totals. Jail income and ambulance revenues offset the
shortfall by exceeding the budget expectations by approximately $277,000 combined.
Personnel and related benefit budgetary savings of approximately $1.1 million result primarily
from vacant positions, changes in employee healthcare elections, and rolling one-time personnel-
related funds into next fiscal year. Contract labor appropriations of a little over $115,000
remained unspent at the end of the year. Part-time salary expenses realized a favorable budget
variance of $263,000, while overtime exceeded budget expectations by $29,000. In addition to
overall salary and benefit savings, general and administrative expenditures realized savings in
capital, supplies, training, travel, and contingencies. Increased rebate incentive payments from
the improvement in sales tax revenues resulted in additional expenditures of approximately
$20,000, while the revenue sharing agreement with the cities of Dallas and Fort Worth realized a
budgetary overage of approximately $84,000. Electric service costs compared favorably to
budget parameters by nearly $145,000. Budgetary savings in repair and maintenance costs
totaled approximately $44,000 due primarily to savings in equipment maintenance offsetting the
overages in heating and cooling systems maintenance and plumbing costs.
Aside from salaries and benefits, public safety expenditure savings were also noted in supplies,
travel, and maintenance. Savings in mowing services, travel and training, and supplies are
primarily responsible for the positive budget variance in culture and recreation. Capital
expenditures including street overlay, traffic signals, and lighting realized budgetary savings of
$39,000. One-time expenditures were $513,000 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 $1,492,180 which is $1,606,245 better than the
budgeted drawdown of $114,065. The Car Rental Tax fund balance was originally anticipated to
decrease $2,641,626, but instead ended the year with a decrease of only $2,187,435 resulting
from an increase in net car rental taxes and savings in capital outlay. Due to the issuance of debt
in excess of capital expenditures, the TIRZ#4 Midtown CIP fund balance increased by
$10,465,699.
The non-major governmental funds realized a combined increase in fund balance of $898,578;
special revenues contributed $385,827 to this increase, while the capital projects funds
contributed $512,751. Increased sales taxes in the Half-Penny Sales Tax and Crime Control and
Prevention District (“CCPD”) funds resulting from new development and an improved economy
contribute to the increase from special revenue funds. Additionally, hotel/motel occupancy taxes
from the opening of the new hotel at the airport combined with assessment revenues collected for
the Midtown Public Improvement District (“PID”) also account for part of the increase from
special revenue funds. The net increase from CIP funds results primarily from the issuance of
debt recorded in the Midtown Reserve fund. Additionally, the Streets and Car Rental CIP funds
realized decreases in fund balances as a result of project expenditures of more than $7 million.
Project expenditures in these funds include those for street overlay, infrastructure at Glade Parks
and renovation of the Development and Engineering building. The combined net effect of these
changes in governmental fund balances totals an increase of $11,863,162.
Enterprise funds. The City’s enterprise fund statements provide the same type of information
found in the government-wide financial statements for business-type activities, but in more
detail. Most of the City’s enterprise funds are heavily dependent upon local weather conditions.
During the fiscal year, more than 53 inches of rain fell; which is 17 inches more than a “normal”
14
year for the region. The effects of this substantial increase in rainfall resulted in budgetary
revenue shortfalls in many of the City’s enterprise funds.
Unrestricted net position of the enterprise funds at the close of the fiscal year is: Water and
Wastewater fund $3,051,951; Drainage Utility fund $1,311,672; Golf Course fund $1,134,282;
and all other non-major recreation enterprise funds combined $3,179,728. The Water and
Wastewater fund realized an increase in operating income resulting from increased water and
wastewater rates combined with Texas Water Development Board loan forgiveness revenues
recorded in service fees and miscellaneous income. Water consumption and wastewater
treatment volume were 2% and 9% lower than anticipated, respectively. Despite the shortfall in
consumption, water purchase costs exceeded budget parameters. However, this overage was
offset with budgetary savings in wastewater treatment costs. Generally, conservation efforts,
tiered water rates, and watering restrictions result in declines in water consumption. However, in
the current year, the local weather patterns were the primary culprit responsible for the reduced
water consumption. Impact fee revenues and developer dedication of assets of $2.2 million
contributed to the overall net income in the Water and Wastewater fund.
The increase in net position of the Drainage Utility fund results primarily from developer
contributions exceeding depreciation expenses for the year. Net position for the Golf Course
fund increased $149,878 due in large part to transfers from other funds offsetting negative
operating income and interest and fiscal charges. All other non-major recreation enterprise funds
combined realized an increase of $1,349,228 which is primarily attributable to transfers to Texas
Star Sports Complex fund for the addition of the 60/90 field. The transfers offset negative
operating income at the complex resulting from adverse weather conditions experienced for the
second consecutive year. The excessive rainfall resulted in the cancellation of entire leagues and
a multitude of tournaments. The combined net effect of these changes in net position totals an
increase of $5,425,658.
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, 2016, totaled $212,157,607 (net of accumulated depreciation).
The investment in capital assets includes land, buildings, improvements, machinery and
equipment, infrastructure, and construction in progress. The net increase in the City’s investment
in capital assets for the current fiscal year was $18,480,844 or about 9.5%.
Major capital asset activity that occurred during the current fiscal year included the following:
Capital asset contributions were comprised of $109,438 in Community Development Block
Grant (CDBG) expenditures for ADA/TAS infrastructure improvements and developer asset
dedications totaling nearly $5.6 million in street infrastructure, land, water and wastewater
facilities, and drainage structures.
Street overlay projects located throughout the City in the amount of $1,116,329 were
finalized during the year.
Capital asset additions for governmental activities include, but are not limited to, automatic
compression systems and power pro stretchers for EMS operations, a concessions trailer for
community outreach for the police department, upgrade of the police training room, parks
15
equipment, computer equipment and software, and scheduled annual vehicle and equipment
replacements.
Construction-in-progress related to general government activity of $10,298,787 primarily
consisted of Midtown infrastructure ($7.7 million), Development/Engineering building ($2.2
million), sidewalk and municipal plaza improvements ($226,681), and the Glade Parks Trail
($162,971).
The wastewater line replacements along Crane Drive and Town Creek were completed at a
cost of $264,823 and $395,896, respectively. The Donley/Shelmar water line replacement
was finished at a total cost of $152,990. The 24” valve replacement project was also
completed this year with a total cost of $131,370.
Capital asset additions for the business-type activities include, but are not limited to, a sewer
camera crawler, valve and vactor trailer, well motor and pump, and fitness equipment.
Construction-in-progress related to business-type operations of $5.3 million consisted of
Phase II of the Reclaimed Water System Extension at $1.7 million, water meter replacement
at $3.1 and Phase V of the Texas Star Sports Complex Improvements at a cost of $466,396.
Capital Assets (Net of Accumulated Depreciation)
Amounts shown in 000s activities activities Total
2016 2015 2016 2015 2016 2015
Land 29,694$ 28,107$ 3,619$ 3,619$ 33,313$ 31,726$
Buildings 35,825 37,505 1,823 1,948 37,648 39,453
Other improvements 7,670 5,745 8,832 9,520 16,502 15,265
M&E 7,890 8,147 786 652 8,676 8,799
Infrastructure 50,333 39,780 50,116 49,216 100,449 88,996
Construction in
Progress 10,299 9,167 5,270 271 15,569 9,438
Total 141,711$ 128,451$ 70,446$ 65,226$ 212,157$ 193,677$
Governmental Business-type
Additional information on the City’s capital assets can be found in Note 3 on pages 48-50 of this
report.
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of
$61,216,922 net of unamortized losses on prior refundings. Of this amount, $50,968,374
comprises debt backed by the full faith and credit of the government, where $10,343,541 is the
amount of self-supported debt for Texas Star Golf Course and the Star Center. The remainder of
the City’s debt, $10,248,548, represents bonds secured solely by specific revenue sources (i.e.
revenue bonds).
16
Outstanding Bonded Debt
Governmental Business-Type
Amounts shown in 000s activities activities Total
2016 2015 2016 2015 2016 2015
GO bonds 17,425$ 20,655$ 5,695$ 6,320$ 23,120$ 26,975$
COs 27,710 8,365 - - 27,710 8,365
GO/CO deferred loss (631) (757) (510) (563) (1,141) (1,320)
Tax notes 1,280 - - - 1,280 -
Revenue bonds 120 285 10,305 10,940 10,425 11,225
Revenue deferred loss (28) (37) (149) (167) (177) (204)
Totals 45,876$ 28,511$ 15,341$ 16,530$ 61,217$ 45,041$
In fiscal year 2016, the City issued tax notes and certificates of obligation. The City’s total debt
increased $15,970,000 or 34% during fiscal year 2016 which is attributed to the newly issued
debt less scheduled annual principal payments. The largest portion of the increase is attributable
to certificates of obligation issued for public improvements at Glade Parks and Euless Midtown.
Both of these development areas are covered by tax increment revenues and public improvement
district assessments.
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 50-55.
Economic Factors and Next Year’s Budgets and Rates
In the FY2016-17 budget, General Fund revenues and transfers are budgeted to increase by 6%
from the FY2015-16 original budget. Property taxes account for 31% of budgeted revenues and
sales taxes comprise approximately 33% of budgeted revenues. Certified assessed valuations as
of July 25, 2016 increased 12.7% from the preceding year.
As of September 30, 2016, the City’s unemployment rate is 3.8% compared to the State of
Texas, which is 4.9%. In the FY2016-17 budget, sales tax receipts are projected to increase
3.5% over prior year estimated revenues plus an additional estimate for new development. The
car rental tax receipts are anticipated to remain flat with end-of-year projections.
Baseline budgeted expenditures in the General Fund are projected to increase approximately 6%
from the FY2015-16 original budget. This increase is primarily attributed to rebates associated
with increased revenue collections, the employee raise package and related costs, and the
addition of four new positions. Increased transfers for equipment replacement and street
maintenance are also included in the baseline budget. The City elected to use excess reserves in
various funds to cash flow capital programs including city computer and technology upgrades,
career preparation program in conjunction with the local school district, fire suppression and
EMS equipment, equipment for the Euless Family Life Center, and various facility maintenance
items. In addition, the FY2016-17 budget includes funding for continued technological
advancements in the City’s municipal court operations. Continued funding is also provided for
the City’s contribution to the Tarrant County Home Program, community revitalization, and
street overlay. The property tax rate dropped to .4625¢ per $100 of assessed valuation for
FY2016-17.
17
For the Water and Wastewater Fund, the FY2016-17 budget includes the continuation of the
tiered rate structure for residential and irrigation water volume billing. Under the tiered
structure, customers pay a graduated volume rate based on varying levels of monthly water
consumption. Residential volume rates range from $3.44 to $6.07 per thousand gallons.
Monthly water base rates are increasing by $1 for residential customers. A wastewater volume
charge of $3.72 per thousand gallons applies to all customer classes and monthly base rates are
increasing by $1. 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 $129,000 for replacement of wastewater lines in
Cedar Hill Estates and CDBG funding for Phase I of the Oakwood Terrace wastewater line
replacements. Additional funding is included for miscellaneous wastewater rehab, miscellaneous
valve replacements, and the miscellaneous water rehab project. The City is also setting aside a
portion of the anticipated replacement cost of the water and wastewater lines associated with the
SH183 Phase II project. The FY2016-17 budget includes $595,000 in funding for this project
bringing the total for capital projects to $1,000,000 for the year. One-time capital in the amount
of approximately $233,000 is included to complete approved projects carried over from the prior
year.
The Texas Star Golf Course and Conference Centre is a vibrant part of the Euless community.
This secluded facility, located in the midst of the Dallas/Fort Worth Metroplex, is well-known
for world class golf and a challenging course that has been recognized as a premier municipal
facility by leading golf publications, including Golf Digest and Golfweek. Additionally, Raven’s
Grille ranked in the top five for best service and best place to dine before or after your golf
experience by Avid Golfer. The Conference Centre has 7,000 square feet of divisible space and
hosts business conferences, weddings, concerts, and other events. Proposed revenues of
$4,476,442 and proposed operating expenses of $4,417,580 comprise the FY2016-17 operating
budget.
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a
general overview of the City’s finances. If you have questions about this report or need
additional information, contact the Finance Department, Attn: Janina Jewell, Director of Finance,
at 201 North Ector Drive, Euless, Texas 76039, call (817) 685-1626, or e-mail
jjewell@eulesstx.gov.
CITY OF EULESS, TEXAS
GOVERNMENT-WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
18
Primary Government
Governmental Business-type
Activities Activities Total
Deposits and investments 44,135,732$ 16,327,755$ 60,463,487$
Receivables, net of allowances 8,227,220 3,528,039 11,755,259
Internal balances (2,444,968) 2,444,968 -
Inventories, at cost 10,867 290,423 301,290
Prepaid items 501,770 72,789 574,559
Restricted assets
Deposits and investments 13,538,709 6,978,582 20,517,291
Net OPEB asset 636,608 148,215 784,823
Capital assets
Land and construction in progress 39,992,484 8,888,168 48,880,652
Other capital assets, net of
accumulated depreciation 101,718,732 61,558,223 163,276,955
Total assets 206,317,154 100,237,162 306,554,316
Deferred outflows related to pension 11,124,911 2,056,308 13,181,219
Deferred charges on refunding 659,419 658,659 1,318,078
Total deferred outflows of resources 11,784,330 2,714,967 14,499,297
Accounts payable 12,551,912 2,558,042 15,109,954
Accrued liabilities 2,421,784 263,473 2,685,257
Accrued interest payable 199,759 54,403 254,162
Unearned revenue 237,256 97,614 334,870
Money held in escro w - 1,839,342 1,839,342
Noncurrent liabilities
Due within one year 4,115,118 1,263,922 5,379,040
Due in more than one year 68,111,755 19,366,468 87,478,223
Total liabilities 87,637,584 25,443,264 113,080,848
Deferred inflows related to pension 1,208,781 223,426 1,432,207
Total deferred inflows of resources 1,208,781 223,426 1,432,207
Net investment in capital assets 108,135,655 59,184,256 167,319,911
Restricted for
Debt service 1,954,433 733,164 2,687,597
Capital projects 12,715,424 4,265,268 16,980,692
Impact fees - 1,980,150 1,980,150
Developer agreements 1,977,963 - 1,977,963
Court technology 121,041 - 121,041
Juvenile cases 213,386 - 213,386
Cable PEG fees 525,451 - 525,451
Historical preservation 1,245 - 1,245
Unrestricted 3,610,521 11,122,601 14,733,122
Total net position 129,255,119$ 77,285,439$ 206,540,558$
ASSETS
LIABILITIES
NET POSITION
DEFERRED OUTFLOWS OF RESOURCES
DEFERRED INFLOWS OF RESOURCES
CITY OF EULESS, TEXAS GOVERNMENT-WIDE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2016 The Notes to the Basic Financial Statements are an integral part of these statements. 19 Primary GovernmentOperating Capital Business - Charges Grants and Grants and Governmental TypeProgram Activities Expenses for Services Contributions Contributions Activities Activities TotalPrimary governmentGovernmental activitiesCulture and recreation 6,998,904$ 291,349$ 262$ 88,073$ (6,619,220)$ -$ (6,619,220)$ Development services 918,214 1,717,416 - - 799,202 - 799,202 General and administrative 20,722,236 1,285,797 14,955 - (19,421,484) - (19,421,484) Highways and streets 3,708,184 350,920 - 3,287,660 (69,604) - (69,604) Public safety 26,673,966 3,383,743 562,790 - (22,727,433) - (22,727,433) Interest and fiscal agent charges 1,807,001 - - - (1,807,001) - (1,807,001) Total governmental activities 60,828,505 7,029,225 578,007 3,375,733 (49,845,540) - (49,845,540) Business-type activitiesWater and wastewater 21,009,701 23,759,236 - 2,183,707 - 4,933,242 4,933,242 Drainage utility 1,414,483 725,152 - 759,481 - 70,150 70,150 Golf course 4,409,773 4,187,728 - - - (222,045) (222,045) Other recreation enterprises 2,211,065 2,059,413 - - - (151,652) (151,652) Total business-type activities 29,045,022 30,731,529 - 2,943,188 - 4,629,695 4,629,695 Total primary government 89,873,527$ 37,760,754$ 578,007$ 6,318,921$ (49,845,540) 4,629,695 (45,215,845) General RevenuesTaxesProperty taxes, levied for general purposes 14,752,044 - 14,752,044 Sales taxes 20,364,878 - 20,364,878 Car rental taxes 14,842,109 - 14,842,109 Mixed beverage taxes 101,503 - 101,503 Hotel/motel occupancy taxes 696,805 - 696,805 Gross receipts taxes 4,467,535 - 4,467,535 Investment income 271,786 104,618 376,404 Rents and royalties 1,105,829 - 1,105,829 Gain on sale of capital assets - 13,185 13,185 Miscellaneous 692,939 - 692,939 Transfers(703,751) 703,751 - Total general revenues and transfers 56,591,677 821,554 57,413,231 Change in net position 6,746,137 5,451,249 12,197,386 NET POSITION, beginning of year122,508,982 71,834,190 194,343,172 NET POSITION, end of year129,255,119$ 77,285,439$ 206,540,558$ Net (Expense) Revenue andChanges in Net PositionProgram Revenues
CITY OF EULESS, TEXAS
BALANCE SHEET – GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
TIRZ #4
Debt Car Midtown Non-major Total
General Service Rental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
Deposits and investments 12,585,327$ 1,093,516$9,315,643$ -$ 12,868,355$ 35,862,841$
Receivables
Property taxes 391,095 161,619 - - - 552,714
Accounts receivable 802,072 - - - 337,370 1,139,442
Accrued interest receivable 25,999 7,950 3,417 4,387 4,667 46,420
Due from other governments 2,263,862 - 2,449,251 - 1,368,783 6,081,896
Prepaids and deposits 24,383 - - - 7,738 32,121
Inventories, at cost 10,867 - - - - 10,867
Restricted deposits and investments - 1,250,000 - 11,288,984 999,725 13,538,709
Total assets 16,103,605$ 2,513,085$11,768,311$11,293,371$15,586,638$ 57,265,010$
Accounts payable 1,532,567$ 4,160$ 8,990,423$ 827,672$ 905,330$ 12,260,152$
Accrued liabilities 1,368,049 3,010 - - 192,578 1,563,637
Unearned revenue 140,165 41,250 - - 55,841 237,256
Total liabilities 3,040,781 48,420 8,990,423 827,672 1,153,749 14,061,045
Unavailable revenue - property taxes 395,215 158,644 - - - 553,859
Unavailable revenue - other 424,139 - - - 4,558 428,697
Total deferred inflows of resources 819,354 158,644 - - 4,558 982,556
-
Nonspendable
Prepaids, deposits, and inventories 35,250 - - - 7,738 42,988
Restricted fo r
Debt service - 1,056,021 - - 939,527 1,995,548
Capital projects - 1,250,000 - 10,465,699 999,725 12,715,424
Developer agreements - - - - 1,977,963 1,977,963
Court technology 121,041 - - - - 121,041
Juvenile case management - - - - 213,386 213,386
Cable PEG fees - - - - 525,451 525,451
Historical preservation - - - - 1,245 1,245
Assigne d 113,655 - 2,777,888 - 9,763,296 12,654,839
Unassigned 11,973,524 - - - - 11,973,524
Total fund balances 12,243,470 2,306,021 2,777,888 10,465,699 14,428,331 42,221,409
Total liabilities, deferred inflows of resources,
and fund balances 16,103,605$ 2,513,085$11,768,311$11,293,371$15,586,638$ 57,265,010$
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
21
Total fund balances - governmental funds 42,221,409$
Capital assets of governmental funds are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 138,282,572
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. (199,759)
Internal service funds are used by management to charge the cost of certain
activities, such as insurance and fleet management, to individual funds. The assets
and liabilities of the internal service funds are net of the amount allocated to
business-type activities. 8,976,676
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 982,556
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. 636,608
(12,573,972)
Long-termliabilities, includingbonds payable, deferred charges on refundings, and
compensated absences (excluding those ofinternal service funds) are not due and
payable in the current period and therefore are not reported in the fund financial
statements. (49,070,971)
Net position of governmental activities 129,255,119$
Amounts reported for governmental activities in the statement of net position are
different because:
Funds comprising the net pension liability ($22,490,102), deferred inflows
($1,208,781) and deferred outflows $11,124,911 of resources related to the
pension are not current financial resources and therefore are not reported in the
governmental funds balance sheet.
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
22
TIRZ #4
Debt Car Midtown Non-major Total
General Service Rental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
General property tax 11,164,933$ 3,145,692$-$ -$ 461,007$ 14,771,632$
Gross receipts tax 4,320,999 - - - 843,341 5,164,340
Mixed beverage tax 101,503 - - - - 101,503
General sales tax 12,596,445 - - - 7,768,433 20,364,878
Car rental tax - - 14,842,109 - - 14,842,109
Fines and fees 4,461,439 - - - - 4,461,439
Licenses and permits 1,682,431 - - - - 1,682,431
Investment income 97,775 39,925 49,096 - 51,153 237,949
DEA revenues - - - - 18,274 18,274
Intergovernmental 398,528 - - - 109,438 507,966
Rents and royalties - 552,450 - - 59,915 612,365
Other revenues 1,015,762 - - - 927,245 1,943,007
Total revenues 35,839,815 3,738,067 14,891,205 - 10,238,806 64,707,893
Ex penditures
Current
Culture and recreation 2,969,137 - - - 3,053,920 6,023,057
Development services 654,162 - - - 208,409 862,571
General and administrative 8,589,233 - 9,901,339 - 484,544 18,975,116
Highways and streets 1,555,702 - - - 133,012 1,688,714
Public safety 22,114,240 - - - 2,584,310 24,698,550
Debt service -
Principal - 3,365,000 - - 165,000 3,530,000
Interest and fiscal charges - 1,739,074 - - 4,376 1,743,450
Capital outlay 608,739 - 2,000,000 4,952,556 7,310,329 14,871,624
Total expenditures 36,491,213 5,104,074 11,901,339 4,952,556 13,943,900 72,393,082
Excess (deficiency) of
revenues over (under) expenditures (651,398) (1,366,007) 2,989,866 (4,952,556) (3,705,094) (7,685,189)
Other financing sources (uses)
Issuance of debt - 1,312,020 - 15,418,255 4,029,725 20,760,000
Premiums on issuance of debt - 403,354 - - - 403,354
Transfers in 2,771,820 1,189,731 - - 3,506,487 7,468,038
Transfers out (926,282) (46,918) (5,177,301) - (2,932,540) (9,083,041)
Total other financing sources (uses) 1,845,538 2,858,187 (5,177,301) 15,418,255 4,603,672 19,548,351
Net change in fund balances 1,194,140 1,492,180 (2,187,435) 10,465,699 898,578 11,863,162
Fund balances, be ginning of year 11,049,330 813,841 4,965,323 - 13,529,753 30,358,247
Fund balances, end of year 12,243,470$ 2,306,021$2,777,888$10,465,699$14,428,331$ 42,221,409$
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, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
23
Net change in fund balances - total governmental funds 11,863,162$
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over the estimated usefullives and reported
as depreciation expense. This is the amount of capital expenditures recorded in the
current period. 14,871,624
Governmentalfunds report cashproceeds fromthe disposalof capitalassets as revenues,
while onlythe net gain/loss on the transaction is reported inthe statement of activities and
capitalcontributions are not reported ingovernmentalfunds. This is the amount ofcapital
contributions and disposals recorded in the current period.3,038,542
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. (4,905,287)
The issuance of long-term debt provides current financial resources to governmental
funds, but has no effect on net position. (20,760,000)
The repayment of the principal of long-term debt consumes current financial resources o f
governmental funds, but has no effect on net position. 3,530,000
Governmental funds report the effect of premiums, discounts, and deferred charges on
refunding when debt is first issued, whereas the amounts are deferred and amortized in
the statement of activities. (378,763)
Current year changes in the long-term liabilities for compensated absences and other post
employment obligations do not require the use of current financial resources; therefore,
they are not reported as expenditures in governmental funds. 408,235
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.(63,552)
Changes in the net pension liability, and related deferred inflows and outflows not
recognized on the fund financial statements under the modified accrual basis are
recognized on the accrual basis in the government-wide financial statements. (1,327,826)
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 ofthe amount allocated
to business-type activities. 564,600
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. (94,598)
Change in net position of governmental activities 6,746,137$
Amounts reported for governmental activities in the statement of activities are different
because:
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
SEPTEMBER 30, 2016
(1 of 2)
The Notes to the Basic Financial Statements
are an integral part of these statements.
24
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Current assets
Deposits and investments 10,058,615$ 1,443,546$ 1,466,187$ 3,359,407$ 16,327,755$ 8,272,891$
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$25,433 for water and wastewater and
$596 for drainage utilit y 3,181,633 98,992 201,238 21,461 3,503,324 401,113
Accrued interest receivable 16,053 2,985 3,589 2,088 24,715 3,424
Prepaids and deposits 1,530 - 53,232 18,027 72,789 469,649
Inventor y 116,257 - 90,314 83,852 290,423 -
Total unrestricted current assets 13,374,088 1,545,523 1,814,560 3,484,835 20,219,006 9,147,077
Restricted deposits and investments
W&WW impact fees 1,980,150 - - - 1,980,150 -
Capital projects 4,265,268 - - - 4,265,268 -
Revenue bond reserve for debt service 733,164 - - - 733,164 -
Total restricted assets 6,978,582 - - - 6,978,582 -
Total current assets 20,352,670 1,545,523 1,814,560 3,484,835 27,197,588 9,147,077
Non-current assets
Net OPEB asset 108,289 8,205 25,361 6,360 148,215 -
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 1,492,750 10,380 623,225 256,615 2,382,970 11,330,769
Improvements 1,055,901 974,001 8,614,304 8,006,174 18,650,380 -
Construction in progress 4,803,227 - - 466,396 5,269,623 -
Utility system 73,870,377 27,607,581 - - 101,477,958 -
Total property, plant, and equipment in service 82,896,016 29,151,788 13,658,781 9,801,992 135,508,577 11,330,769
Less accumulated depreciation 39,855,724 13,421,477 6,903,006 4,881,979 65,062,186 7,902,125
Net property, plant, and equipment in service 43,040,292 15,730,311 6,755,775 4,920,013 70,446,391 3,428,644
Total non-current assets 43,148,581 15,738,516 6,781,136 4,926,373 70,594,606 3,428,644
Total assets 63,501,251 17,284,039 8,595,696 8,411,208 97,792,194 12,575,721
Deferred outflows related to pension 1,529,124 166,947 307,518 52,719 2,056,308 -
Deferred charges on refunding 148,458 - 510,201 - 658,659 -
Total deferred outflows of resources 1,677,582 166,947 817,719 52,719 2,714,967 -
ASSETS
Business - Type Activities -
Enterprise Funds
DEFERRED OUTFLOWS OF RESOURCES
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
SEPTEMBER 30, 2016
(2 of 2)
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
Current liabilities
Payable from current assets
Accounts payable 2,200,559$ 13,666$ 115,580$ 228,237$ 2,558,042$ 289,545$
Accrued salaries and wages 182,797 23,768 37,335 19,573 263,473 12,689
Current portion of bonds payable 763,714 - 473,902 - 1,237,616 -
Current portion of compensated absences 19,099 2,157 4,121 929 26,306
Accrued insurance claims - - - - - 851,843
Unearned revenue - - 97,614 - 97,614 -
Accrued interest 37,000 - 17,403 - 54,403 -
Total current liabilities 3,203,169 39,591 745,955 248,739 4,237,454 1,154,077
Non-current liabilities
Customer and escrow deposits 1,771,047 - 68,295 - 1,839,342 -
Net pension liabilit y 3,145,753 331,858 602,300 101,352 4,181,263 -
Bonds payable 9,519,421 - 5,429,025 - 14,948,446 -
Compensated absences 171,888 19,413 37,092 8,366 236,759 -
Total non-current liabilities 14,608,109 351,271 6,136,712 109,718 21,205,810 -
Total liabilities 17,811,278 390,862 6,882,667 358,457 25,443,264 1,154,077
Deferred inflows related to pensions 166,139 18,141 33,417 5,729 223,426 -
Total deferred inflows of resources 166,139 18,141 33,417 5,729 223,426 -
NET POSITION
Net investment in capital assets 37,170,883 15,730,311 1,363,049 4,920,013 59,184,256 3,428,644
Restricted for
Impact fees 1,980,150 - - - 1,980,150 -
Capital projects 4,265,268 - - - 4,265,268 -
Debt service 733,164 - - - 733,164 -
Unrestricted 3,051,951 1,311,672 1,134,282 3,179,728 8,677,633 7,993,000
Total net position 47,201,416$ 17,041,983$ 2,497,331$ 8,099,741$ 74,840,471 11,421,644$
Reconciliation to government-wide statement of net position
Adjustment to reflect the consolid ation of interna l
service funds' activities related to enterprise funds 2,444,968
Net position of business-type activities 77,285,439$
LIABILITIES
Business - Type Activities -
Enterprise Funds
DEFERRED INFLOWS OF RESOURCES
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION –
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Operating revenues
Water service 12,092,051$ -$ -$ -$ 12,092,051$ -$
Reclaimed water service 321,700 - - - 321,700 -
Wastewater service 7,946,103 - - - 7,946,103 -
Drainage fees - 725,151 - - 725,151 -
Recreation fees - - - 702,298 702,298 -
Insurance premiums - - - - - 5,750,197
Service fees and miscellaneous 3,399,382 - 4,187,728 1,357,115 8,944,225 1,797,089
Total operating revenues 23,759,236 725,151 4,187,728 2,059,413 30,731,528 7,547,286
Operating expenses
General and administrative 454,871 - - - 454,871 1,727,323
Water production 7,479,456 - - - 7,479,456 -
Water distribution 936,831 - - - 936,831 -
Utility engineering 508,006 - - - 508,006 -
Wastewater collection and treatment 3,520,741 - - - 3,520,741 -
Nondepartmental 4,160,482 - - - 4,160,482 -
Geographic information systems 504,886 - - - 504,886 -
Service center 1,060,029 - - - 1,060,029 -
Drainage - 666,628 - - 666,628 -
Recreation classes - - - 690,148 690,148 -
Golf course - - 1,608,830 - 1,608,830 -
Pro shop - - 421,089 - 421,089 -
Food and beverage - - 1,324,847 - 1,324,847 -
Conference center - - 276,259 - 276,259 -
Cart operations - - 202,990 - 202,990 -
Texas Star Sports Complex - - - 1,147,305 1,147,305 -
Arbor Daze - - - 52,312 52,312 -
Insurance costs - - - - - 5,469,732
Depreciation 1,997,528 747,855 391,422 316,707 3,453,512 963,284
Amortization 19,843 - 27,480 (1,279) 46,044 -
Total operating expenses 20,642,673 1,414,483 4,252,917 2,205,193 28,515,266 8,160,339
Operating income (loss) 3,116,563 (689,332) (65,189) (145,780) 2,216,262 (613,053)
Nonoperating revenues (expenses)
Gain (loss) on sale of capital assets (207) (693) 11,150 2,935 13,185 33,151
Investment income 82,862 3,614 5,055 13,087 104,618 33,837
Interest expense (181,747) - (146,200) (2,400) (330,347) -
Total nonoperating revenues
(expenses), net (99,092) 2,921 (129,995) 13,622 (212,544) 66,988
Income (loss) before contributions
and transfers 3,017,471 (686,411) (195,184) (132,158) 2,003,718 (546,065)
Developer contributions 2,183,707 759,482 - - 2,943,189 -
Transfers in - - 345,062 1,481,386 1,826,448 1,136,252
Transfers out (1,311,398) (36,299) - - (1,347,697) -
Net income 3,889,780 36,772 149,878 1,349,228 5,425,658 590,187
Net position, beginning 43,311,636 17,005,211 2,347,453 6,750,513 10,831,457
Net position, end of year 47,201,416$ 17,041,983$ 2,497,331$ 8,099,741$ 11,421,644$
Reconciliation to government-wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds 25,591
Change in net position of business-type activities 5,451,249$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
27
Governmental
Activities -
Other Total Internal
Water and Drainage Golf Enterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
OPERATING ACTIVITIES
Cash received from customers 23,746,682$ 716,459$ 4,156,992$ 2,057,760$ 30,677,893$ 7,257,888$
Cash payments to suppliers
for goods and services (16,262,025) (306,381) (2,269,874) (1,175,871) (20,014,151) (7,606,710)
Cash payments to employees
for services (3,071,685) (329,710) (1,591,143) (516,731) (5,509,269) (119,712)
Net cash provided by (used in)
operating activities 4,412,972 80,368 295,975 365,158 5,154,473 (468,534)
NONCAPITAL FINANCING ACTIVITIES
Transfer in - - 345,062 1,481,386 1,826,448 1,136,252
Transfer out (1,311,398) (36,299) - - (1,347,697) -
Net cash provided by (used in)
noncapital financing activities (1,311,398) (36,299) 345,062 1,481,386 478,751 1,136,252
CAPITAL AND RELATED FINANCING ACTIVITIES
Developer contributions 469,867 83,634 - - 553,501 -
Purchase of capital assets (5,768,165) - - (519,170) (6,287,335) (1,226,768)
Interest paid on bonds (181,707) - (148,525) (3,200) (333,432) -
Principal paid on bonds (635,000) - (465,000) (160,000) (1,260,000) -
Proceeds from sale of capital assets 1,201 - 11,675 2,935 15,811 41,555
Net cash used in capital
and related financing activities (6,113,804) 83,634 (601,850) (679,435) (7,311,455) (1,185,213)
INVESTING ACTIVITIES
Interest received on investments 78,309 3,613 5,117 12,025 99,064 35,197
Net cash provided by investing
activities 78,309 3,613 5,117 12,025 99,064 35,197
Net change in cash and cash
equivalents (2,933,921) 131,316 44,304 1,179,134 (1,579,167) (482,298)
Cash and cash equivalents,
beginning of year 19,971,118 1,312,230 1,421,883 2,180,273 24,885,504 8,755,189
Cash and cash equivalents, end of year 17,037,197$ 1,443,546$ 1,466,187$ 3,359,407$ 23,306,337$ 8,272,891$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – CONTINUED
YEAR ENDED SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
28
Governmental
Activities -
Other Total Internal
Water and DrainageGolfEnterprise Enterprise Service
Wastewater Utility Course Funds Funds Funds
Reconciliation of operating income (loss)
to net cash provided by (used in)
operating activities
Operating income (loss) 3,116,563$ (689,332)$ (65,189)$ (145,780)$ 2,216,262$ (613,053)$
Adjustments to reconcile operating
income (loss) to net cash provided
by (used in) operating activities
Depreciation and amortization 2,017,371 747,855 418,902 315,428 3,499,556 963,284
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue (81,467) (19,453) 3,070 (4,922) (102,772) (289,398)
Prepaids and deposits 129 - (45,327) 3,640 (41,558) (469,649)
Inventory (3,477) - 18,383 5,763 20,669 -
Net OPEB asset (73,418) (10,819) (18,161) (2,318) (104,716) -
Net pension liability 1,041,394 119,669 216,500 34,714 1,412,277 -
Deferred outflows (953,485) (109,383) (201,984) (33,531) (1,298,383) -
Deferred inflows 92,335 10,761 19,886 3,269 126,251 -
Accounts payable 349,082 11,674 (21,662) 188,067 527,161 (83,948)
Accrued salaries and
wages (168,604) (2,174) (35,850) 2,132 (204,496) 8,632
Accrued insurance claims - - - - - 15,598
Compensated absences 190,987 21,570 41,213 (1,304) 252,466 -
Customer and escrow
deposits 68,912 - (137) - 68,775 -
Unearned revenue (1,183,350) - (33,669) - (1,217,019) -
Net cash provided by (used in)
operating activities 4,412,972$ 80,368$ 295,975$ 365,158$ 5,154,473$ (468,534)$
Noncash financing activities
Developer contributed assets 1,713,840$ 675,848$ -$ -$ 2,389,688$ -$
Reconciliation of cash to balance sheet:
Cash - current 10,058,615$ 1,443,546$ 1,466,187$ 3,359,407$ 16,327,755$ 8,272,891$
Cash - restricted 6,978,582 - - - 6,978,582 -
Cash and cash equivalents 17,037,197$ 1,443,546$ 1,466,187$ 3,359,407$ 23,306,337$ 8,272,891$
Business - Type Activities -
Enterprise Funds
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION – FIDUCIARY FUNDS
SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
29
Agency OPEB
Fund Trust Fund
ASSETS
Investments at fair value
Money market account 1,421,887$ 171,703$
Fixed income funds - 1,638,236
Equity funds - 2,503,478
Total assets 1,421,887$ 4,313,417$
LIABILITIES
Due to other entities 1,420,547$ -$
Refunds payable 1,340 -
Total liabilities 1,421,887$ -
NET POSITION
Held in trust for OPEB 4,313,417$
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
OPEB TRUST FUND
YEAR ENDED SEPTEMBER 30, 2016
The Notes to the Basic Financial Statements
are an integral part of these statements.
30
OPEB
Trust Fund
ADDITIONS
Employer contributions 1,424,405$
Other contributions 277,528
Investment income
Net increase in fair value of investments 336,018
Less: investment expense (20,261)
Total investment income 315,757
Total additions 2,017,690
DEDUCTIONS
Insurance claims 1,068,040
Administrative expenses 123,780
Total deductions 1,191,820
Change in net position 825,870
Net position - beginning 3,487,547
Net position - ending 4,313,417$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
31
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (City) was incorporated on February 24, 1953. The City operates
under a Council-Manager form of government and provides the following services as
authorized by its charter: general government, police and fire protection, emergency
ambulance service, road and traffic signal maintenance, water and wastewater operations,
drainage system, parks and recreational facilities, courts, library services, planning land
use, building inspection, and traffic control.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally
accepted in the United States of America (GAAP) applicable to state and local
governments. GAAP for local governments include those principles prescribed by the
Governmental Accounting Standards Board (GASB) and the American Institute of
Certified Public Accountants in the publication entitled Audits of State and Local
Governmental Units.
The more significant accounting policies of the City are described as follows:
Financial Reporting Entity
As required by GAAP, these basic financial statements present the primary government
and its component units, entities for which the government is considered to be financially
accountable. The blended component units, although legally separate entities, are, in
substance, part of the primary government’s operations. As such, data from these units is
combined with data of the primary government.
Blended Component Units
The City includes four component units in the financial statements. The Euless
Development Corporation (Corporation) is used to account for the accumulation of
half-cent sales tax proceeds dedicated to building and improving City parks and
facilities, enhancing library services, and stimulating economic development
activities within the City. The Euless Crime Control and Prevention District
(District) is used to account for the accumulation and use of quarter-cent sales tax
proceeds dedicated for crime reduction programs. The Corporation and the District
are reported as special revenue funds of the primary government. The Boards of
Directors of both component units are substantively the same as the City Council.
There are seven directors on each board, four of whom are council members which
constitutes a voting majority of the City Council. The remaining three board
members are residents of the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
32
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Financial Reporting Entity – Continued
Blended Component Units – Continued
Upon dissolution of the Corporation or the District, the entity’s assets will be
distributed to the City. Each component unit provides all of its services to the City.
The financial statements for the units were obtained from the respective Boards of
Directors. Financial information for both entities may be obtained from the City.
The Tax Increment Reinvestment Zone #3 - Glade Parks (TIRZ #3) is also a blended
component unit of the City and is reflected in the financial statements as a special
revenue fund. TIRZ #3 was created to stimulate development and enhance the value
of taxable real property within the boundaries of the zone. Tarrant County and
Tarrant County College District are taxing entities participating in TIRZ #3. The
Board of Directors of TIRZ #3 is substantially the same as the City Council, and
management of the City has operational responsibility for TIRZ #3. The Board is
comprised of seven directors, four of whom are council members which constitutes a
voting majority of the Board. The remaining three board members are representatives
selected by the other participating taxing entities and the Tarrant County Hospital
District. Financial information for TIRZ #3 may be obtained from the City.
The Tax Increment Reinvestment Zone #4 – Midtown (TIRZ #4) is also a blended
component unit of the City and will be reflected in the financial statements as a
special revenue fund. The Midtown CIP Fund is also part of TIRZ#4. TIRZ #4 was
created to stimulate development and enhance the value of taxable real property
within the boundaries of the zone. Tarrant County, Tarrant County Hospital District,
and Tarrant County College District are taxing entities participating in TIRZ #4. The
Board of Directors of TIRZ #4 is substantially the same as the City Council, and
management of the City has operational responsibility for TIRZ #4. The Board is
comprised of seven directors, four of whom are council members which constitutes a
voting majority of the Board. The remaining three board members are representatives
selected by the other participating taxing entities. Financial information for TIRZ #4
may be obtained from the City.
Basis of Presentation
The government-wide financial statements (the statement of net position and the
statement of activities) report information on all of the activities of the City, except
fiduciary funds. The effect of interfund activity, with the exception of interfund services
provided or used, within the governmental and business-type activities columns, has been
removed from these statements. Governmental activities, which normally are supported
by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on user fees and charges for support.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
33
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
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.
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 for debt service expenditures and for
unspent debt proceeds.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
34
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
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.
TIRZ #4 Midtown Capital Improvements Project (CIP) Fund
The TIRZ #4 Midtown CIP Fund is used to account for construction projects and
the means of financing such projects within the development area generally
known as Euless Midtown.
Proprietary funds are accounted for using the economic resources measurement focus
and the accrual basis of accounting. The accounting objectives are determinations of
net income, financial position, and cash flow. All assets and liabilities are included
on the statement of net position. The City has presented the following major
proprietary funds:
Water and Wastewater Fund
Water and Wastewater Fund is used to account for the acquisition, operation and
maintenance of a municipal water and wastewater utility, supported primarily by
user charges.
Drainage Utility Fund
Drainage Utility Fund is used to account for the acquisition, operation, and
maintenance of a municipal drainage utility, supported primarily by user charges.
Golf Course Fund
Golf Course Fund is used to account for operation and maintenance of the City’s
golf course, supported primarily by user charges.
Additionally, the City reports the Internal Service Funds which are used to account
for equipment replacement, risk management, and self-funded health insurance
coverage and disability insurance provided to employees of the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
35
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Basis of Presentation – Continued
The City also reports two 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
OPEB Trust Fund accounts for the accumulation and use of resources for benefit
payments related to post-employment health care.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing
operations. Operating expenses for the proprietary funds include the cost of personnel
and contractual services, supplies, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and
expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made,
regardless of the measurement focus applied.
The government-wide and proprietary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. The
economic resources measurement focus means all assets, deferred inflows/outflows of
resources, and liabilities (whether current or noncurrent) are included on the statement of
net position and the operating statements present increases and decreases in total net
position. Under the accrual basis of accounting, revenues are recognized when earned,
including unbilled water, wastewater, and drainage services which are accrued. Expenses
are recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when
susceptible to accrual; i.e., become both measurable and available. “Measurable” means
the amount of the transaction can be determined and “available” means collectible within
the current period or soon enough thereafter to be used to pay liabilities of the current
period. The City considers property taxes and other revenues as available if they are
collected within 60 days of year end. Expenditures are recorded when the related fund
liability is incurred. However, debt service expenditures, as well as expenditures related
to compensated absences and other long-term liabilities are recorded only when payment
is due.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
36
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus and Basis of Accounting – Continued
The significant revenues susceptible to accrual are property taxes, franchise fees,
licenses, charges for service, interest income, and intergovernmental revenues. Sales
taxes and short-term motor vehicle rental taxes collected and held by the state at year end
on behalf of the City are also recognized as revenue. All other governmental fund
revenues are recognized when received.
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash accounts or individual fund investment accounts. Related interest
income is allocated to the various funds based primarily on ownership by each fund of
specific investments. Cash equivalents consist of highly-liquid investments with original
maturities of three months or less.
For purposes of the statement of cash flows, the City considers all highly liquid
investments to be cash equivalents.
Investments in U.S. Treasury and agency obligations with maturities of one year or less
when purchased are reported at amortized cost. All other investments are reported at fair
value.
State statutes authorize the City to invest in obligations of the U.S. Government or its
agencies; obligations of the State of Texas or its agencies; and certain other obligations,
repurchase agreements, money market mutual funds, and certificates of deposits within
established criterion.
Taxes
Property taxes are levied for appropriation for the fiscal year beginning on October 1, are
due October 1, attach as an enforceable lien on property as of January 1, and become
delinquent on February 1. Property taxes are accrued based on the period for which they
are levied and available. Delinquent taxes estimated not to be available are treated as
deferred inflows of resources. Property taxes for cities, including those applicable to debt
service, are limited by the Texas Constitution to $2.50 per $100 of assessed valuation.
The City's current tax rate is $.4675 per $100 of assessed valuation ($.4675 per $100 last
year) and assessed valuation is approximately 100% of estimated value.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
37
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus and Basis of Accounting – Continued
Inventories
Inventories, which are recognized as expenditures/expenses as consumed, are stated at
cost (first-in, first-out method) for the General Fund and Enterprise Funds. Inventories
consist primarily of expendable supplies for the General Fund and merchandise for resale
for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide
services occurring in the subsequent fiscal year, and are recognized as expenditures
utilizing the consumption method.
Interfund Receivables and Payables
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
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 acquisition 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.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
38
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Capital Assets - Continued
Assets capitalized have an original cost of $5,000 or more and over one year of useful
life. Depreciation has been calculated on each class of depreciable property using the
straight-line method. Estimated useful lives are as follows:
Buildings 33 1/3 years
Water and wastewater system 33 1/3 years
Storm drainage system 33 1/3 years
Infrastructure 7 - 40 years
Machinery and equipment 5 - 15 years
Improvements 25 years
Compensated Absences
Employees may accumulate a maximum of two times their annual vacation accrual. The
City's policy is to pay the employee accumulated vacation upon termination. The City
does not pay employees for accumulated sick leave upon termination. The short-term
portion of vacation pay accrued in the proprietary fund financial statements is reported as
accrued salaries and wages (a current liability). The long-term component is reflected in
non-current liabilities as compensated absences. Compensated absences are recorded in
governmental funds as they mature (i.e. as taken). The liability for governmental fund
compensated absences is typically liquidated in the general fund, the juvenile case fund,
the half-penny sales tax fund, and the crime control and prevention district fund.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
39
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
General Fund
Debt Service
Fund
Car Rental
Tax Fund
Midtown CIP
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Nonspendable 35,250 -$ -$ -$ 7,738$ 42,988$
Restricted for
Debt service - 1,056,021 - - 939,527 1,995,548
Capital projects - 1,250,000 - 10,465,699 999,725 12,715,424
Developer agreements - - - - 1,977,963 1,977,963
Court technology 121,041 - - - - 121,041
Juvenile case processing - - - - 213,386 213,386
Cable PEG fees - - - - 525,451 525,451
Historical preservation - - - - 1,245 1,245
Assigned
Capital projects - - - - 3,806,228 3,806,228
Betterments 35,695 - - - - 35,695
Emergency/radio systems 47,230 - - - - 47,230
Tourism and
conference facilities - - - - 461,872 461,872
Parks, library, and
economic development - - - - 3,052,552 3,052,552
Police department - - - - 2,262,828 2,262,828
Grants - - - - 19,455 19,455
Other 30,730 - 2,777,888 - 160,361 2,968,979
Unassigned 11,973,524 - - - - 11,973,524
Tota l 12,243,470$ 2,306,021$ 2,777,888$ 10,465,699$ 14,428,331$ 42,221,409$
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
40
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
The City has recorded the following restrictions at year-end:
a. Restricted for debt service represents that portion of fund equity legally
restricted for retirement of bond principal and payment of interest and related
charges.
b. Restricted for capital projects represents that portion of fund equity legally
restricted by debt covenant for capital projects.
c. Restricted for developer agreements represents the portion of fund equity that
must be used for future improvements to various development areas within the
City.
d. Restricted for court technology represents funds collected from a court
technology fee that must be used to upgrade court systems.
e. Restricted for juvenile case processing represents funds collected from a fee
on municipal court citations that must be used to support the expenditures
associated with juvenile case processing.
f. Restricted for cable 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 the City’s historical sites.
Committed: This classification includes amounts that can be used only for specific
purposes pursuant to constraints imposed by formal action (ordinance) of the City
Council. These amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by taking the same type of action that
was employed when the funds were initially committed. This classification also
includes contractual obligations to the extent that existing resources have been
specifically committed for use in satisfying those contractual requirements. The City
has no committed fund balance at year-end.
Assigned: This classification includes amounts that are constrained by the City’s
intent to be used for a specific purpose but are neither restricted nor committed. The
City Council delegates the authority for determining this intent to the City Manager.
Assignments are made at the City Manager's discretion, but generally represent items
for which specific funds have been informally dedicated internally. This classification
also includes the remaining positive fund balance for all governmental funds except
for the General Fund. The City has recorded the following assignments at year-end:
a. Assigned for capital projects represents revenue sources that are to be used for
capital projects for the City.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
41
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Balance Classifications – Continued
b. Assigned for betterment represents funds donated by citizens that are to be used
for the betterment of the community.
c. Assigned for emergency/radio systems represents funding that is to be used to
upgrade emergency and radio systems.
d. Assigned for tourism and conference facilities represents funds to promote the
City through tourism, conference booking, and historical preservation.
e. Assigned for parks, libraries, and economic development represents funds from
sales taxes that are to be used for park improvements, library activities, and
economic development throughout the City.
f. Assigned for the police department are funds from the Crime Control and
Prevention District and the sale of assets seized in connection with drug arrests to
be used for police department expenditures.
g. Assigned for grants are funds from grant revenues that are to be spent in
accordance with grant provisions.
h. Assigned for other are funds from specific revenues that are to be spent for
facility remodel, victim assistance, and injured animals.
Unassigned: This classification includes all amounts that are not included in other
spendable classifications. The General Fund is the only fund that reports a positive
unassigned fund balance.
When available, the City uses restricted fund balances first, followed by committed
resources, assigned resources, then unassigned resources, as appropriate opportunities
arise. However, the City reserves the right to selectively spend unassigned resources
first to defer the use of these other classified funds.
Net Position
Net position represents the difference between assets and deferred outflows of resources
and liabilities and deferred inflows of resources of governmental and business-type
activities and proprietary funds. Net investment in capital assets consists of capital
assets, net of accumulated depreciation, plus capital-related deferred outflows of
resources, reduced by the outstanding balances of any borrowing and capital related
deferred inflows of resources used for the acquisition, construction, or improvements of
those assets, plus unspent debt proceeds. Net position is reported as restricted when there
are limitations imposed on its use, either through the enabling legislation adopted by the
City or through external restrictions imposed by creditors, grantors, or laws or regulations
of other governments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
42
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Pensions
For purposes of measuring the net pension liability, pension related deferred outflows and
inflows of resources, and pension expense, City specific information about its Fiduciary
Net Position in the Texas Municipal Retirement System (TMRS) and additions
to/deductions from the City’s Fiduciary Net Position have been determined on the same
basis as they are reported by TMRS. For this purpose, plan contributions are recognized in
the period that compensation is reported for the employee, which is when contributions are
legally due. Benefit payments and refunds are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value. Information
regarding the City’s Total Pension Liability is obtained from TMRS through a report
prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in
compliance with Governmental Accounting Standards Board (GASB) Statement No. 68,
Accounting and Financial Reporting for Pensions.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has the following items that qualify for reporting in this category.
Deferred charges on refundings – A deferred charge on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded debt or
refunding debt.
Pension contributions after measurement date – These contributions are deferred
and recognized in the following fiscal year.
Difference in projected and actual earnings on pension assets – This difference is
deferred and amortized over a closed five year period.
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position that applies to a
future period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The difference in expected and actual pension experience and the actuarial
assumption changes are deferred and recognized over the estimated average remaining
lives of all members determined as of the measurement date.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
43
NOTE 2. DEPOSITS AND INVESTMENTS
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, 2016. At year-end, the carrying amount of the City’s
deposits was $4,081,244 with a bank balance of $4,929,786.
The total bank balance is covered by Federal Depository Insurance Corporation (FDIC)
insurance or by collateral for balances in excess of FDIC coverage. Collateral is held by
the Federal Reserve Bank in the City’s name under a joint safekeeping agreement with
Frost National Bank for City deposits at Frost Bank. The market value of the collateral at
the close of the fiscal year was $3,114,323. The balances at Bank of Texas (BOT) are
covered by FDIC insurance and collateral pledged to cover the balances in the BOT
short-term cash fund.
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, 2016, the City did not own any types of
securities other than those permitted by statute.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
44
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Investments – Continued
Book Value
Fair Value
Level 2
% of
Portfolio WAM Rating
Rating
Agency
Interest bearing bank deposits $ 4,929,786 -$ 6%
Investments measured at amortized cost:
Investment Pools:
TexPool 21,750,451 - 26%44 AAAm S&P
TexSTAR 27,548,656 - 33%43 AAAm S&P
Investments measured at fair value:
U.S. Government Agency Securities:
FFCB 7,347,199 7,354,523 9%24 AA+/Aaa S&P/Moody's
FHLB 12,573,209 12,585,760 15%26 AA+/Aaa S&P/Moody's
FHLMC 9,561,906 9,573,757 11%34 AA+/Aaa S&P/Moody's
Investments measured at cost:
Bank of Texas - CD 47,000 - 0%N/A
Total 83,758,207$ 29,514,040$ 100%
Not rated
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, and
FHLMC – Federal Home Loan 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.
Fair Value
The City categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. GASB Statement No. 72, Fair
Value Measurement and Application provides a framework for measuring fair value
which establishes a three-level fair value hierarchy that describes the inputs that are used
to measure assets and liabilities.
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in
active markets that a government can access at the measurement date.
Level 2 inputs are inputs – other than quoted prices included within Level 1– that
are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
45
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Investments – Continued
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest
priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a
government should measure fair value using another valuation technique that maximizes
the use of relevant observable inputs and minimizes the use of unobservable inputs. If the
fair value of an asset or a liability is measured using inputs from more than one level of
the fair value hierarchy, the measurement is considered to be based on the lowest priority
level input that is significant to the entire measurement.
The City has recurring fair value measurements as presented in the previous table. The
City’s investment balances and weighted average maturity of such investments are as
shown.
Investment Pools are measured at amortized cost and are exempt from fair value
reporting.
U.S. Government Agency Securities classified in Level 2 of the fair value hierarchy are
valued using a matrix pricing technique. Matrix pricing is used to value securities based
on the securities’ relationship to benchmark quoted prices.
Certificates of Deposit are measured at cost and are exempt from fair value reporting.
Both of the public fund investment pools (pools) in which the City is a participant use
amortized cost to value the portfolio. Amortized cost, in most cases, approximates the
market value of the securities held. In order to meet the criteria to be recorded at
amortized cost, investment pools must transact at a stable net asset value per share and
maintain certain maturity, quality, liquidity and diversification requirements within the
investment pool. The pools in which the City invests transact at a net asset value of
$1.00 per share, have a weighted average maturity of 60 days or less and weighted
average life of 120 days or less, hold investments that are highly rated by a nationally
recognized statistical rating organization, have no more than 5% of the portfolio with one
issuer (excluding US government securities), and can meet reasonably foreseeable
redemptions.
The TexPool investment pool is an external investment pool valued at amortized costs.
TexPool, has a redemption notice period of one day and has no maximum transaction
amounts. The investment pools’ authorities may only impose restrictions on redemptions
in the event of a general suspension of trading on major securities markets, general
banking moratorium or national or state emergency that affects the pools’ liquidity.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
46
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Investments – Continued
The TexSTAR investment pool is an external investment pool measured at amortized
cost. TexSTAR‘s strategy is to seek preservation of principal, liquidity and current
income through investment in a diversified portfolio of short-term marketable securities.
TexSTAR has a redemption notice period of one day and may redeem daily. The
investment pool’s authorities may only impose restrictions on redemptions in the event of
a general suspension of trading on major securities markets, general banking moratorium
or national or state emergency that affects the pools’ liquidity.
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 Hilltop Securities Inc. and JP Morgan 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.
Interest Rate Risk
In compliance with the City’s Investment Policy, as of September 30, 2016, 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 mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell securities in the
secondary market prior to maturity; monitoring credit ratings of portfolio positions to
assure compliance with rating requirements imposed by the PFIA; and investing funds
primarily in money market mutual funds, government investment pools, and shorter-term
securities with a weighted average maturity of less than 200 days.
The following table details the maturity schedule for the City’s investments as of
September 30, 2016:
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
47
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Investments – Continued
Maturity Schedule Book Value Fair Value % of Portfolio
Overnight 54,228,893$ 54,228,893$ 64.7%
Less than 1 month 650,499 650,810 0.8%
1 to 6 months 12,449,960 12,459,363 14.9%
6 to 9 months 4,086,240 4,097,613 4.9%
9 to 12 months 2,549,166 2,550,750 3.0%
12 to 18 months 9,793,449 9,802,504 11.7%
Tota l 83,758,207$ 83,789,933$ 100.0%
Credit Risk
In compliance with the City’s Investment Policy, as of September 30, 2016, the City
minimized credit risk losses due to default of a security issuer or backer, by: limiting
investments to the safest types of securities; primarily investing in U.S. Agency Bonds
rated AA+ by Standard & Poor’s; pre-qualifying financial institutions, brokers/dealers,
and advisors with which the City will do business; and diversifying the investment
portfolio so that the potential losses on securities are minimized.
Custodial credit risk – the risk that a government will not be able to recover
(a) deposits if the depository financial institution fails or (b) the value of investment or
collateral securities that are in the possession of an outside party if the counterparty to the
investment or deposit transaction fails. To minimize such risk, the City requires
collateralization of deposits in excess of FDIC coverage, utilizes the delivery vs. payment
method for investment purchases, and contracts with a third-party collateral safekeeping
agent.
Per the terms of its depository agreement, for bank deposits in excess of the coverage
provided by the FDIC, the City requires the depository bank to pledge to the City
securities (collateral) equal to the 105% of the largest balances the City maintains in the
bank. The percentage as shown reflects the requirement based on market value of the
pledged securities. The City actively monitors and manages collateral levels for all
deposits. On September 30, 2016, 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
48
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2016, was as follows:
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land 28,107,365$ 1,544,077$ -$ 42,255$ 29,693,697$
Construction in progress 9,167,287 14,512,816 - (13,381,316) 10,298,787
Total capital assets
not being depreciated 37,274,652 16,056,893 - (13,339,061) 39,992,484
Capital assets being depreciated
Buildings 58,333,637 - - 35,994 58,369,631
Improvements other than buildings 9,419,196 - - 2,236,410 11,655,606
Infrastructure 75,267,779 1,505,484 - 11,066,657 87,839,920
Machinery and equipment 10,098,525 390,122 (669,075) - 9,819,572
Total capital assets
being depreciated 153,119,137 1,895,606 (669,075) 13,339,061 167,684,729
Less accumulated depreciation
Buildings (20,829,112) (1,715,231) - - (22,544,343)
Improvements other than buildings (3,674,104) (311,267) - - (3,985,371)
Infrastructure (35,487,718) (2,019,192) - - (37,506,910)
Machinery and equipment (5,125,162) (859,598) 626,743 - (5,358,017)
Total accumulated depreciation (65,116,096) (4,905,288) 626,743 - (69,394,641)
Total capital assets being
depreciated, net 88,003,041 (3,009,682) (42,332) 13,339,061 98,290,088
Total governmental fund capital
assets, net 125,277,693 13,047,211 (42,332) - 138,282,572
Internal service funds
Capital assets being depreciated
Machinery and equipment 10,311,064 1,226,768 (207,063) - 11,330,769
Total internal service assets
being depreciated 10,311,064 1,226,768 (207,063) - 11,330,769
Less accumulated depreciation
Machinery and equipment (7,137,500) (963,284) 198,659 - (7,902,125)
Total internal service funds
capital assets, net 3,173,564 263,484 (8,404) - 3,428,644
Total governmental activities
capital assets, net 128,451,257$ 13,310,695$ (50,736)$ -$ 141,711,216$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
49
NOTE 3. CAPITAL ASSETS – CONTINUED
Balance Balance
Beginning Adjustment/ End of
of Yea r Increase Decrease Transfer Year
Business-type activities
Capital assets not being depreciate d
Land 3,618,545$ -$ -$ -$ 3,618,545$
Construction in progress 270,975 6,003,867 - (1,005,219) 5,269,623
Total capital assets
not being depreciated 3,889,520 6,003,867 - (1,005,219) 8,888,168
Capital assets being depreciate d
Buildings 4,109,101 - - - 4,109,101
Equipment 2,210,910 286,428 (103,408) (10,960) 2,382,970
Improvements 18,794,860 - (144,480) - 18,650,380
Utility syste m 98,075,051 2,397,688 - 1,005,219 101,477,958
Total capital assets being
depreciated 123,189,922 2,684,116 (247,888) 994,259 126,620,409
Less accumulated depreciation
Buildings (2,161,290) (124,603) - - (2,285,893)
Equipment (1,558,366) (138,839) 100,782 - (1,596,423)
Improvements (9,274,873) (687,793) 144,480 - (9,818,186)
Utility syste m (48,859,407) (2,502,277) - - (51,361,684)
Total accumulated depreciation (61,853,936) (3,453,512) 245,262 - (65,062,186)
Total capital assets being
depreciated, net 61,335,986 (769,396) (2,626) 994,259 61,558,223
Total business-type activities
capital assets, net 65,225,506$ 5,234,471$ (2,626)$ (10,960)$ 70,446,391$
Depreciation expense was charged as a direct expense to programs of the primary
government as follows:
Governmental activities
Culture and recreation 782,092$
General administrative 2,513,213
Highways and streets 2,001,062
Public safety 572,205
Total depreciation expense - governmental activities 5,868,572$
Business-type activities
Water and wastewater 1,997,528$
Drainage utilit y 747,855
Golf course 391,422
Other recreation enterprises 316,707
Total depreciation expense - business-type activities 3,453,512$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
50
NOTE 3. CAPITAL ASSETS – CONTINUED
Outstanding commitments at September 30, 2016, under authorized construction contracts,
were $16,627,843. These outstanding commitments are to be financed by available deposit
and investment balances, which include proceeds from previous bond issuances.
NOTE 4. LONG-TERM DEBT
The following is a summary of long-term debt transactions of the City for the year ended
September 30, 2016:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds 20,655,000$ -$ (3,230,000)$ 17,425,000$ 2,935,000$
Certificates of obligation 8,365,000 19,480,000 (135,000) 27,710,000 360,000
Sales tax revenue bonds 285,000 - (165,000) 120,000 45,000
Tax notes - 1,280,000 - 1,280,000 420,000
Premium on bonds 1,136,476 403,354 (171,546) 1,368,284 171,547
Discount on bonds (142,328) - 12,736 (129,592) (12,736)
Net pension liability 14,767,352 15,566,531 (7,843,781) 22,490,102 -
Compensated absences 1,884,023 424,151 (345,095) 1,963,079 196,307
Total governmental activities 46,950,523 37,154,036 (11,877,686) 72,226,873 4,115,118
Business-type activities
Water and sewer revenue bonds 10,940,000 - (635,000) 10,305,000 765,000
General obligation refunding bonds 6,320,000 - (625,000) 5,695,000 455,000
Premiums on bonds 240,857 - (27,165) 213,692 19,241
Discounts on bonds (29,256) - 1,627 (27,629) (1,625)
Net pension liability 2,768,988 2,873,096 (1,460,822) 4,181,262 -
Compensated absences 257,391 48,604 (42,930) 263,065 26,306
Total business-type activities 20,497,980 2,921,700 (2,789,290) 20,630,390 1,263,922
Total primary government 67,448,503$ 40,075,736$ (14,666,976)$ 92,857,263$ 5,379,040$
General Obligation Bonds
General obligation bonds and general obligation refunding bonds provide funds for the
acquisition and construction of major capital equipment, City facilities, and infrastructure
assets and the refunding of previously issued debt instruments. General obligation bonds
require voter authorization; whereas general obligation refunding bonds do not. General
obligation bonds are direct obligations of the City, payable from a continuing and direct
ad valorem tax, levied within the limits prescribed by law, on all taxable property within
the City as provided in the ordinances authorizing issuance of the bonds.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
51
NOTE 4. LONG-TERM DEBT – CONTINUED
General Obligation Bonds – Continued
The City is required to compute an interest and sinking fund tax rate sufficient to cover
the annual debt service requirements inclusive of anticipated drawdown of reserves,
transfers or revenues from self-supporting debt systems, and other miscellaneous sources.
As of September 30, 2016, general obligation bonds currently outstanding are as follows:
Interest Issue Maturity Principal
Rate % Date Date Outstanding
General Obligation Bonds
Taxable Refunding, Series 2010 .68% –
4.4%
08/15/2010 08/01/2025 $5,245,000
Refunding, Series 2011 2% – 4% 01/15/2011 08/15/2021 3,950,000
Refunding, Series 2012 2% – 4% 12/01/2011 02/15/2024 3,825,000
Refunding, Series 2012A 2% – 4% 11/01/2012 02/15/2027 5,695,000
Refunding, Series 2014 3% 10/15/2014 02/15/2020 4,405,000
Total $23,120,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal
Year Principal Interest Principal Interest Total
2017 2,935,000$ 589,874$ 455,000$ 134,675$ 4,114,549$
2018 3,030,000 496,844 470,000 125,425 4,122,269
2019 2,655,000 406,309 475,000 113,600 3,649,909
2020 2,765,000 316,181 490,000 99,125 3,670,306
2021 1,925,000 229,114 510,000 84,125 2,748,239
2022-2026 4,115,000 360,217 2,710,000 238,948 7,424,165
2027-2030 - - 585,000 7,678 592,678
Total 17,425,000$ 2,398,539$ 5,695,000$ 803,576$ 26,322,115$
Governmental Activities Business-Type Activities
The business-type activities general obligation refunding bonds outstanding were issued
to refund previously issued golf course debt. The City anticipates repayment of the debt
will occur from the golf system revenues. However, these plans are subject to change.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
52
NOTE 4. LONG-TERM DEBT – CONTINUED
Certificates of Obligation
Certificates of obligation are issued for many of the same purposes as general obligation
bonds, but certificates do not require voter authorization nor may they be used to refund
existing debt. The certificates constitute direct obligations of the City, payable from (i)
the levy and collection of a direct and continuing ad valorem tax, levied within the limits
prescribed by law, on all taxable property within the City, and (ii) a limited pledge (not to
exceed $1,000) of the Net Revenues of the City’s waterworks and sanitary sewer system.
The City currently has the following certificates of obligation outstanding as of the end of
the fiscal year:
Interest Issue Maturity Principal
Rate % Date Date Outstanding
Certificates of Obligation
Series 2011 3% – 4.25% 01/15/2011 08/15/2030 $2,515,000
Series 2014
Series 2015
Series 2016
0% – 5%
3% - 5%
2% - 4%
10/15/2014
10/27/2015
01/12/2016
08/15/2034
02/15/2035
08/15/2041
5,715,000
3,030,000
16,450,000
Total $27,710,000
Annual debt service requirements to maturity for the certificates of obligation are as
follows:
Fiscal Governmental Activities
Year Principal Interest Total
2017 $360,000 $908,182 $1,268,182
2018 870,000 890,106 1,760,106
2019 1,025,000 860,781 1,885,781
2020 1,070,000 821,081 1,891,081
2021 1,100,000 784,906 1,884,906
2022-2026 6,115,000 3,293,806 9,408,806
2027-2031 6,965,000 2,228,672 9,193,672
2032-2036
2037-2041
6,000,000
4,205,000
1,169,822
380,681
7,169,822
4,585,681
Total $27,710,000 $11,338,037 $39,048,037
Revenue Bonds
Each series of revenue bonds is backed by the pledged revenue sources identified in the
bond ordinances authorizing issuance of the bonds. The purpose and primary pledged
revenue sources of each type of revenue bond are summarized as follows.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
53
NOTE 4. LONG-TERM DEBT – CONTINUED
Revenue Bonds – Continued
Half-penny sales tax fund issues sales tax revenue bonds (STRB) to finance library, park,
and economic development projects throughout the City. Sales tax revenue bonds are
special obligations of the Euless Development Corporation (EDC), payable solely from
and secured by a lien on and pledge of certain Pledged Revenues which includes the
gross proceeds of a ½¢ sales and use tax levied within the City for the benefit of the
EDC. The EDC is reflected in the financial statements of the City as a special revenue
fund. Accordingly, the EDC’s debt is reflected in governmental activities debt.
Water and wastewater fund issues revenue bonds (W&WW) for the construction of and
improvement to the City’s combined waterworks and sanitary sewer infrastructure or to
refund previously issued revenue bonds. Water and sewer revenue bonds and refunding
bonds are payable solely from and equally secured by a first lien on and pledge of the net
revenues of the City’s water and wastewater system.
Interest Issue Maturity Principal
Rate % Date Date Outstanding
Revenue Bonds
STRB Refunding, Series 2012 1.43% 01/12/2012 09/15/2019 $ 120,000
W&WW Refunding, Series 2012 2.03% 03/29/2012 07/15/2024 2,055,000
W&WW Improvement, Series 2013 2% – 5% 06/25/2013 07/15/2033 1,405,000
W&WW Improvement, Series 2015A 0% - 1.98% 06/15/2015 07/15/2035 4,465,000
W&WW Improvement, Series 2015B 0% - 1.68% 06/15/2015 07/15/2035 2,380,000
Total $ 10,425,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Governmental Activities Business-Type Activities
Year Principal Interest Principal Interest Total
2017 $ 45,000 $1,716 $ 765,000 $ 177,600 $ 989,316
2018 35,000 1,073 780,000 168,392 984,465
2019 40,000 572 790,000 158,829 989,401
2020 – – 800,000 148,820 948,820
2021 – – 540,000 138,022 678,022
2022-2026 – – 2,505,000 574,817 3,079,817
2027-2031 – – 2,315,000 360,760 2,675,760
2032-2035 – – 1,810,000 90,180 1,900,180
Total $120,000 $3,361 $10,305,000 $1,817,420 $12,245,781
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
54
NOTE 4. LONG-TERM DEBT – CONTINUED
Revenue Bonds – Continued
The gross ½¢ sales tax revenues of the EDC recognized in the year ending September 30,
2016 totaled $5,100,060. The principal and interest payments on the EDC debt for the
same period totaled $169,076 which equates to approximately 3.3% of the gross ½¢ sales
tax revenues.
The recognized net revenues of the water and wastewater fund totaled $3,199,218 for the
year ending September 30, 2016. Principal and interest payments on the water and sewer
revenue bonds totaled $816,707 which equates to approximately 25.5% of net system
revenues.
Tax Notes
Tax notes are issued for the purchase of certain specified materials, supplies, equipment,
and machinery for the City’s authorized needs and purposes. In 2016, tax notes were
issued for purchases of a fire truck and other related equipment; and professional services
rendered in relation thereto.
The City currently has the following tax notes outstanding as of the end of the fiscal year:
Interest Issue Maturity Principal
Rate % Date Date Outstanding
Tax Notes
Series 2016
1.16% 08/30/2016 02/15/2019 $1,280,000
Annual debt service requirements to maturity for the tax notes are as follows:
Fiscal Governmental Activities
Year Principal Interest Total
2017 $420,000 $13,033 $433,033
2018 425,000 9,976 434,976
2019 435,000 5,046 440,046
Total $1,280,000 $28,055 $1,308,055
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
55
NOTE 4. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations
In accordance with the water and sewer revenue and refunding bond ordinances, the
following reserves were established:
Reserve for revenue bond debt service – to be used for retirement of the current
portion of principal and interest payments due.
Reserve for emergency – to be used for payment of extraordinary repairs or
replacements to the system necessitated by an emergency for which no other funds
are available.
Revenue bond reserve – a reserve established with a portion of the bond proceeds
pursuant to the revenue bond covenants which will be used for principal and interest
payments in the event of default by the issuer.
Should the reserve for revenue bond debt service and/or the revenue bond reserve prove
deficient, the reserve for emergency shall be used for the purpose of meeting principal
and/or interest requirements of the bonds.
All funding requirements for the above reserves were met at September 30, 2016.
Investments of funds included in the bond reserve and emergency accounts are restricted
to obligations of the United States or its agencies or instrumentalities (except for
mortgage pass-through securities).
Water and sewer revenue bonds authorized and unissued as of September 30, 2016,
amounted to $1,200,000. The water and sewer bonds were authorized in 1970, and
currently the City Council has no intent to issue these bonds.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
56
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
The City entered into a contract dated January 21, 1972, with Trinity River Authority (TRA)
whereby TRA agreed to provide treated water to the City. This contract was for an original
term of thirty-five (35) years and continues in effect until all bonds, or any bonds issued to
refund same, have been paid in full. Additionally, on October 10, 1973, the City entered into
a contract with TRA to provide wastewater treatment services to the City. The contract
remains in force and effect for a period of fifty (50) years and thereafter until any bonds, or
any bonds issued to refund same, have been paid in full. Payments by the City are based on
metered usage at rates designed to charge the City a prorata share of TRA's annual operating
and maintenance expenses and principal and interest requirements on bonds issued by TRA.
Payments under these contracts approximated $9,571,504 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
$204,354 in the year ended September 30, 2016 and are included as operating expenses of
the water and wastewater fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In
the opinion of the City's legal counsel and management, any liability resulting from such
litigation would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the
operating costs of the City's service center, which provides services to all City departments.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
57
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations
of those funds.
General Debt service
Non-major
governmental
Subtotal
governmental
Transfers out
General -$ -$ 685,794$ 685,794$
Debt service - - 46,918 46,918
Car rental tax 1,649,123 198,151 2,643,775 4,491,049
Water and wastewater 1,086,398 - - 1,086,398
Drainage utility 36,299 - - 36,299
Nonmajor governmental - 991,580 130,000 1,121,580
Total transfers in 2,771,820$ 1,189,731$ 3,506,487$ 7,468,038$
Golf Non-major Internal Subtotal Total
course proprietary service proprietary transfers out
Transfers out
General 15,488$ -$ 225,000$ 240,488$ 926,282$
Debt service - - - - 46,918
Car rental tax - - 686,252 686,252 5,177,301
Water and wastewater - - 225,000 225,000 1,311,398
Drainage utility - - - - 36,299
Nonmajor governmental 329,574 1,481,386 - 1,810,960 2,932,540
Total transfers in 345,062$ 1,481,386$ 1,136,252$ 2,962,700$ 10,430,738$
Transfers in
Transfers in
Transfers are primarily used to move funds from:
The general fund to the non-major governmental fund to satisfy grant matching
requirements and to provide funding for approved capital projects and to the golf
course fund for sales tax rebates.
The car rental tax fund, the water and wastewater fund, and the drainage utility fund
to the general fund for general and administrative charges.
The car rental tax fund to the debt service fund for the principal and interest on
previously issued bonds.
The car rental tax fund to the non-major governmental funds for approved capital
projects.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
58
NOTE 7. INTERFUND TRANSFERS – CONTINUED
The non-major governmental funds to the debt service fund for the debt service
payments on previously issued debt.
The non-major governmental funds to the other non-major governmental funds for
approved projects.
The general fund and water and wastewater fund to the internal service funds for
workers’ compensation and general liability insurance claims.
The car rental fund to the internal service fund for equipment purchases and to
increase insurance reserves.
The non-major governmental funds to the golf course fund to cover a portion of the
operating and debt costs associated with the conference center.
The debt service fund to non-major funds for the transfer of bond proceeds for
approved capital projects.
The non-major governmental funds to the non-major enterprise funds to provide
funding for approved capital and one-time projects.
NOTE 8. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
City participates in the Texas Municipal League Joint Self-Insurance Fund (TMLIF) to
provide both general liability and property insurance.
The City, along with other participating entities, contributes annual amounts determined by
TMLIF management. As claims arise they are submitted to and paid by TMLIF. The City is
not liable for payments beyond their annual contributions to TMLIF and related deductibles.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental
Risk Pool to provide workers’ compensation insurance and effectively discontinued being
self-insured for workers’ compensation claims. This policy has no deductibles, includes all
claims handling, and has a fixed premium.
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were
available to pay claims, claim reserves, and administrative costs of the program. The City
remains liable under its self-insurance program for any claims occurring prior to October 1,
2005.
The City provides employee health insurance coverage on a self-insured basis. Premiums are
paid into a separate insurance fund by other funds, by the City's employees, and by retirees.
The premiums are used to fund claims, administrative costs of the program, and claim
reserves. An excess coverage insurance policy covers individual claims in excess of
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
59
NOTE 8. RISK MANAGEMENT – CONTINUED
$100,000 and aggregate claims in excess of $5,282,251. During fiscal year 2016, the City
and the City's employees contributed approximately $3,961,435 and $1,331,851 respectively,
for medical coverage.
The City's contributions are accounted for as interfund services provided and used. Claims
liabilities are based on estimates of the ultimate cost of claims (including future claim
adjustment expenses) that have been reported but not settled, and of claims that have been
incurred but not reported, and are accounted for in the Insurance Internal Service Fund.
Changes in the balances of health and dental claims liabilities for the years ended
September 30, 2016 and 2015 are as follows:
2016 2015
Unpaid claims, beginning of year 507,500$ 487,899$
Incurred claims 5,498,859 4,415,030
Paid claims (5,157,359) (4,395,429)
Unpaid claims, end of year 849,000$ 507,500$
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2016 or any of the three preceding years ended September 30.
NOTE 9. DEFINED BENEFIT PENSION PLAN
Plan Description
The City participates as one of 866 plans in the nontraditional, joint contributory, hybrid
defined benefit pension plan administered by the Texas Municipal Retirement System
(TMRS). TMRS is an agency created by the State of Texas and administered in
accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS
Act) as an agent multiple-employer retirement system for municipal employees in the
State of Texas. The TMRS Act places the general administration and management of the
System with a six-member Board of Trustees. Although the Governor, with the advice
and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the
State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section
401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive
annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
60
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Benefits Provided
TMRS provides retirement, disability and death benefits. Benefit provisions are adopted
by the governing body of the City, within the options available in the state statutes
governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with
interest, and the city-financed monetary credits with interest were used to purchase an
annuity. Members may choose to receive their retirement benefit in one of seven
payments options. Members may also choose to receive a portion of their benefit as a
Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments,
which cannot exceed 75% of the member’s deposits and interest.
Plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee) 2 to 1
A member is vested after 5 years
Service retirement eligibility 20 years at any age, 5 years at 60 and above
Updated service credit 100% Repeating, Transfers
Annuity increase (to retirees) 70% of CPI
Members can retire at certain ages, based on the years of service in TMRS. The Service
Retirement Eligibilities for the City are 5 years at 60 years of age or 20 years in TMRS at
any age.
Employees Covered By Benefit Terms
At the December 31, 2015 valuation and measurement date, the following employees
were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 203
Inactive employees entitled to, but not yet receiving benefits 143
Active employees 374
Tota l 720
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
61
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee
gross earnings, and the city matching percentages are either 100%, 150%, or 200%, both
as adopted by the governing body of the City. Under the state law governing TMRS, the
contribution rate for each city is determined annually by the actuary, using the Entry Age
Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated
amount necessary to finance the cost of benefits earned by employees during the year,
with an additional amount to finance any unfunded accrued liability.
Employees of the City were required to contribute 7% of their annual gross earnings
during the year ended September 30, 2016. The contribution rates for the City were
18.05% and 17.49% in calendar years 2015 and 2016, respectively. The City’s
contributions to TMRS for the year ended September 30, 2016 were $4,670,520 and were
equal to the required contributions.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2015, and the
Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined
by an actuarial valuation as of that date.
Actuarial Assumptions
The TPL in the December 31, 2015 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
Investment rate of return 6.75%, net of pension plan investment expense,
including inflation
Salary increases were based on a service-related table. Mortality rates for active
members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined
Healthy Mortality Table with Blue Collar Adjustments, with male rates multiplied by
109% and female rates multiplied by 103%. Based on the size of the City, rates are
multiplied by a factor of 100%.
The rates are projected on a fully generational basis by scale BB to account for future
mortality improvements. For disabled annuitants, the gender-distinct RP2000 Combined
Healthy Mortality Tables with Blue Collar Adjustments are used with Male rates
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
62
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Actuarial Assumptions – Continued
multiplied by 109% and female rates multiplied by 103% with a 3-year set-forward for
both males and females. In addition, a 3% minimum mortality rate is applied to reflect
the impairment for younger members who become disabled. The rates are projected on a
fully generational basis by scale BB to account for future mortality improvements subject
to the 3% floor.
Actuarial assumptions used in the December 31, 2015, valuation were based on the
results of actuarial experience studies. The experience study in TMRS was for the period
December 31, 2010 through December 31, 2014. Healthy post-retirement mortality rates
and annuity purchase rates were updated based on a Mortality Experience Investigation
Study covering 2009 through 2011, and dated December 31, 2013. These assumptions
were first used in the December 31, 2013 valuation, along with a change to the Entry Age
Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional
changes were made for the 2014 valuation. After the Asset Allocation Study Analysis and
experience investigation study, the Board amended the long-term expected rate of return
on pension plan investments from 7% to 6.75%. Plan assets are managed on a total
return basis with an emphasis on both capital appreciation as well as the production of
income, in order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-
term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation.
In determining their best estimate of a recommended investment return assumption under
the various alternative asset allocation portfolios, GRS focused on the area between (1)
arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the
geometric mean (conservative) with an adjustment for time (aggressive). At its meeting
on July 30, 2015, the TMRS Board approved a new portfolio target allocation.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
63
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Actuarial Assumptions – Continued
The target allocation and best estimates of real rates of return for each major asset class
are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return (Arithmetic)
Domestic Equity 17.5% 4.55%
International Equity 17.5% 6.10%
Core Fixed Income 10.0% 1.00%
Non-Core Fixed Income 20.0% 3.65%
Real Return 10.0% 4.03%
Real Estate 10.0% 5.00%
Absolute Return 10.0% 4.00%
Private Equity 5.0% 8.00%
Total 100.0%
Discount Rate
The discount rate used to measure the TPL was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be
made at the rates specified in statute. Based on that assumption, the pension plan’s
Fiduciary Net Position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the Total Pension Liability.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
64
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Changes in the Net Pension Liability
TPL
(a)
Plan Fiduciary
Net Position
(b)
NPL
(a) - (b)
Balance at 12/31/2014 176,935,358$ 159,399,018$ 17,536,340$
Changes for the year:
Service cost 4,539,237 - 4,539,237
Interest 12,302,430 - 12,302,430
Change of benefit terms - - -
Difference between expected
and actual experience (579,992) - (579,992)
Changes of assumptions (595,757) - (595,757)
Contributions - employer - 4,644,735 (4,644,735)
Contributions - employee - 1,801,285 (1,801,285)
Net investment income - 235,212 (235,212)
Benefit payments, including
refunds of employee contributions (6,911,946) (6,911,946) -
Administrative expense - (143,262) 143,262
Other changes - (7,076) 7,076
Net changes 8,753,972 (381,052) 9,135,024
Balance at 12/31/2015 185,689,330$ 159,017,966$ 26,671,364$
Increase (Decrease)
Plan fiduciary net position as a percentage of the TPL 85.64%
Covered payroll $25,732,638
NPL as a percentage of covered payroll 103.65%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
65
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount
rate of 6.75%, as well as what the City’s net pension liability would be if it were
calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-
point higher (7.75%) than the current rate:
1% Decrease
in
Discount Rate
(5.75%)
Discount Rate
(6.75%)
1% Increase in
Discount Rate
(7.75%)
City’s net pension liability 53,699,867$ 26,671,364$ 4,524,737$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a
separately-issued TMRS financial report. That report may be obtained on the Internet at
www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At September 30, 2016, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience -$ 948,645$
Changes in actuarial assumptions - 483,562
Difference between projected and
actual investment earnings 9,896,205 -
Contributions subsequent to the
measurement date 3,285,014 -
Total 13,181,219$ 1,432,207$
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
66
NOTE 9. DEFINED BENEFIT PENSION PLAN – CONTINUED
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions – Continued
Deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date in the amount of $3,285,014 will be recognized as a
reduction of the net pension liability for the year ending September 30, 2017. Other
amounts reported as deferred outflows and inflows of resources related to pensions will
be recognized in pension expense as follows:
Measurement Net Deferred
Year Outflows/(Inflows)
December 31, of Resources
2016 2,211,982$
2017 2,211,982
2018 2,211,980
2019 1,896,698
2020 (68,644)
Tota l 8,463,998$
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS
Postemployment Healthcare Plan
Plan Description
The City adopted the City of Euless Post-Employment Benefits Trust (OPEB Trust) by
passage of Resolution No. 09-1319 on September 8, 2009 which authorized participation
in the PARS Public Agencies Post-Retirement Health Care Plan Trust, including the City
of Euless Public Agencies Post-Retirement Health Care Plan (the Plan), as part of the
City’s Retirement Program. Article III of the Public Agencies Post-Retirement Health
Care Plan Master Plan Document as adopted provides for the determination of eligibility
under the plan to each participating Employer to the extent provided in the Employer’s
applicable policies.
The City’s policies with regard to post-employment healthcare coverage are governed by
the City of Euless Medical and Dental Plan, the City’s group health insurance plan, the
benefits of which are established by management.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
67
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Postemployment Healthcare Plan – Continued
The City provides post-employment medical, dental, life, and vision benefits under the
Plan to eligible retirees and dependents qualifying as one of the eligible classes of
dependents as described in the Plan. To be eligible for coverage under the Plan, an
employee must retire with the City of Euless and be eligible for retirement through
TMRS. TMRS retirement eligibility requirements are described in detail in Note 9.
Additionally, written application to enroll himself/herself and all eligible dependents (for
which coverage is elected) in the Plan must be made by the employee prior to or on the
retirement date.
The Plan provides lifetime benefits or until Medicare eligibility is attained. Regardless of
Medicare enrollment status, the Plan will base payment of benefits as though Medicare
were responsible for primary payment of benefits insomuch as allowed by Federal law.
The Plan is a single-employer defined benefit healthcare plan administered by the City
Manager, his/her successor, or his/her designee. Separate financial statements for the
Plan are not issued, but rather are included in the financial statements of the City which
are available on-line at http://www.eulesstx.gov/finance/cafr.htm.
The OPEB Trust is an agent multiple-employer trust arrangement established to provide
economies of scale and efficiency of administration to public agencies. The OPEB Trust
is established as a tax-exempt trust within the meaning of Section 115 of the Internal
Revenue Code and is intended to hold the assets used to fund the City’s post-employment
benefits offered by the City to its employees as specified in the City’s policies.
The OPEB Trust is administered by Public Agency Retirement Services pursuant to the
Trust Agreement adopted on September 8, 2009 by the City Council with passage of
Resolution No. 09-1319. Upon adoption of the Trust Agreement, a separate Agency
Account was established under the OPEB Trust for the City, and all assets of the Trust
attributable to the City are held in the City’s Agency Account. The assets of the Trust are
available only to pay post-employment 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
68
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy – Continued
Contribution requirements of Plan members and the City are determined by the Plan
Administrator and may be amended by same from time to time. Plan members
contribute:
Medical Plan A Medical Plan B Dental Vision
Retiree Only 710.72$ 612.40$ 27.77$ 8.26$
Retiree plus Children 1,350.36 1,163.55 52.77 13.50
Retiree plus Spouse 1,634.65 1,408.51 63.88 16.04
Retiree plus Family 2,061.08 1,775.95 80.54 22.68
Monthly Contribution
Retired employees meeting all eligibility requirements as set forth in the Plan that were
hired prior to October 1, 2006 and are either:
a) Retired and enrolled in the Plan on or prior to September 30, 2007; or
b) Retired and not enrolled in the Plan on or prior to September 30, 2007 and meet
guidelines for reinstatement to the Plan; or
c) Employees who were not retired as September 30, 2007 that retire with at least
ten years of service to the City of Euless and have a combined age and years of
service equal to at least 70
will qualify for a service discount on their total premium, subject to annual
appropriation, as set forth in the table below.
Retired employees meeting all eligibility requirements as set forth in the Plan that were
hired after October 1, 2006 and before September 1, 2014 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
69
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Policy – Continued
Retirees are permitted to participate with active employees in the healthcare plan but
retirees must pay all premiums (less applicable discounts) assigned to them. The City
will continue to apply the applicable discount to surviving spouse/dependents based upon
a deceased employee’s years of service. Employees hired after October 1, 2014 will not
be eligible for premium discounts regardless of years of service.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members at that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects
of short-term volatility in actuarial accrued liabilities and the actuarial value of plan
assets, consistent with the long-term perspective of the calculations.
In the October 1, 2014 actuarial valuation, the projected unit credit actuarial cost method
was used. The actuarial assumptions include a 7.5% investment rate of return
(compounded annually net after expenses) and an annual healthcare cost trend rate of
6.2% initially, with annual increases and decreases through 2100 to an ultimate rate of
4.5% and an annual dental cost trend rate of 4.73% initially, declining by decrements to
an ultimate rate of 4.15%. The inflation rate of 2.5% is used for the calculation. The
unfunded actuarial accrued liability is being amortized over a thirty year open period
utilizing a level dollar amortization method.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) for the Plan is calculated based on the ARC, an
amount actuarially determined in accordance with the parameters of GASB 45. The ARC
represents the level of funding that, if paid on an on-going basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities (or funding excess)
over a period not to exceed thirty years.
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
70
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Annual OPEB Cost and Net OPEB Obligation – Continued
For the year ended September 30, 2016, the City has estimated the cost of providing these
benefits through an actuarial valuation as of October 1, 2014. The following table
represents the components of the City’s annual OPEB cost for the fiscal year, the amount
actually contributed to the Plan, and any changes in the City’s net OPEB obligation.
Annual required contribution 836,323$
Interest on net OPEB obligation (14,811)
Adjustments to annual required contribution 15,555
Annual OPEB cost (expense) 837,067
Contributions made (1,424,405)
Change in OPEB obligation (587,338)
Net OPEB obligation (asset) - beginning of year (197,485)
Net OPEB obligation (asset) - end of year (784,823)$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for fiscal year 2016 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
10/1/2013 9/30/2014 7.5% 1,103,043$ 75.76% (91,445)$
10/1/2014 9/30/2015 7.5% 874,770 112.65% (197,485)
10/1/2014 9/30/2016 7.5% 837,067 170.17% (784,823)
Funding Status and Funding Progress
Fiscal 10/1 Unfunded
Valuation Year Actuarial Actuarial Actuarial
Dated Ended Value of Discount Accrued Accrued Liability Funded Covered UAAL % of
10/01, 09/30, Assets Rate Liability (UAAL) Ratio Payroll Payroll
2013 2014 2,454,718 7.5% 11,822,647 9,367,929 21% 25,470,582 37%
2014 2015 3,043,780 7.5% 10,640,544 7,596,764 29% 25,453,407 30%
2014 2016 3,487,946 7.5% 10,640,544 7,152,598 33% 26,464,297 27%
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
71
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED
Funding Status and Funding Progress – Continued
As of October 1, 2015, the Plan was 67% unfunded. The value of assets was $3,487,946,
resulting in an UAAL of $7,152,598.
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, 2016, the police seized asset special revenue fund had an excess of
expenditures over appropriations of $23,217 and the hotel/motel special revenue fund had
and excess of expenditures over appropriations of $10,640.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
FOR THE MEASUREMENT YEAR ENDED DECEMBER 31, 2015
72
2015* 2014*
Total pension liability
Service cost 4,539,237$ 4,331,759$
Interest (on the total pension liability) 12,302,430 11,698,243
Difference in expected and actual experience (579,992) (752,184)
Change in assumptions (595,757) -
Benefit payments, including refunds of employee contributions (6,911,946) (6,588,671)
Net change in total pension liability 8,753,972 8,689,147
Total pension liability, beginning of year 176,935,358 168,246,211
Total pension liability, ending of year 185,689,330$ 176,935,358$
Plan fiduciary net position
Contributions - employer 4,644,735$ 4,787,533$
Contributions - employee 1,801,285 1,789,251
Net investment income 235,212 8,631,343
Benefit payments, including refunds of employee contributions (6,911,946) (6,588,671)
Administrative expense (143,262) (90,113)
Other (7,076) (7,409)
Net change in plan fiduciary net position (381,052) 8,521,934
Plan fiduciary net position - beginning 159,399,018 150,877,084
Plan fiduciary net position - ending 159,017,966$ 159,399,018$
Net pension liability - ending 26,671,364$ 17,536,340$
Plan fiduciary net position as a % of total pension liability 85.64% 90.09%
Covered employee payroll 25,732,638$ 25,560,729$
Net pension liability as a % of covered employee payroll 103.65% 68.61%
* The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
73
2016* 2015*
Actuarially determined contributions 4,670,520$ 4,602,538$
Actual contributions (4,670,520) (4,602,538)
Contributions deficiency (excess) -$ -$
City covered employee payroll 26,464,297$ 25,453,407$
Ratio of actual contributions to covered payroll amount 18.05% and 17.49% 18.73% and 18.05%
* The schedule is intended to show information for 10 years. Additional years
will be displayed as they become available.
Notes to Schedule
Valuation Date
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 18 years
Asset Valuation Method 10 year smoothed market; 15% soft corridor
Inflation 2.5%
Salary Increases 3.5% to 10.5% including inflation
Investment Rate of Return 6.75%
Retirement Age
Mortality
Actuarial determined contribution rates are calculated as of
December 31st each year and become effective in January, 12
months and a da y later.
Experience-based table of rates that are specific to the City's
planofbenefits. Last updated for the 2015 valuation pursuant to
an experience study of the period 2010 - 2014.
RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and female rates
multiplied by 103% and projected on a fully generational basis
with scale BB.
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS – OPEB TRUST
SEPTEMBER 30, 2016
74
Fiscal 10/1 Unfunded
Valuation Year Actuarial Actuarial Actuarial
Dated Ended Value of Discount Accrued Accrued Liability Funded Covered UAAL % of
10/01, 09/30, Assets Rate Liability (UAAL) Ratio Payroll Payroll
2013 2014 2,454,718 7.5% 11,822,647 9,367,929 21% 25,470,582 37%
2014 2015 3,043,780 7.5% 10,640,544 7,596,764 29% 25,453,407 30%
2014 2016 3,487,946 7.5% 10,640,544 7,152,598 33% 26,464,297 27%
The Schedule of Funding Progress summarizes the actuarial value of the plan’s assets plus
current year contributions and actuarial accrued liability as of October 1, 2014 and the two
preceding actuarial valuations for which the trust has been in effect.
The schedule is presented to provide a consistent basis for measuring the plan’s annual progress
toward funding its actuarial accrued liability in accordance with its actuarial funding method.
The primary measure of funding progress is the plan’s funded ratio (i.e. actuarial value of assets
expressed as a percentage of the actuarial accrued liability). An increase in the funded ratio
indicates an improvement in the plan’s ability to pay all projected benefits as they come due.
The plan is fully funded if the funded ratio is greater than or equal to 100%. At September 30,
2016, the plan’s funded ratio was 33%.
For more information concerning the plan and the actuarial method and assumptions, see
Note 10 Other Post Employment Benefits in the Notes to the Financial Statements.
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
SEPTEMBER 30, 2016
75
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Ne gative)
Revenues
General property tax
Current and delinquent taxes 11,372,966$ 11,372,966$ 11,099,458$ (273,508)$
Penalty and interest 58,000 58,000 65,475 7,475
Total property tax 11,430,966 11,430,966 11,164,933 (266,033)
Gross receipts and mixed beverage tax
Telephone line access fee 317,950 317,950 303,814 (14,136)
Electric company 1,675,882 1,675,882 1,632,805 (43,077)
Gas company 435,000 435,000 325,998 (109,002)
Cable TV 665,000 665,000 731,681 66,681
City garbage service 211,802 211,802 221,904 10,102
Water and wastewater system 1,117,322 1,117,322 1,086,398 (30,924)
Others 99,949 99,949 119,902 19,953
Total gross receipts and
mixed beverage ta x 4,522,905 4,522,905 4,422,502 (100,403)
General sales tax 11,802,945 11,802,945 12,596,445 793,500
Fines and fees
Municipal court fines 3,089,300 3,089,300 2,835,833 (253,467)
Jail income 175,000 175,000 377,905 202,905
Dog licenses and pound fees 3,800 3,800 6,885 3,085
Ambulance fees 976,127 976,127 1,050,064 73,937
Library fees 30,100 30,100 9,291 (20,809)
Zoning fees 20,000 20,000 29,130 9,130
Deferred adjudication fee 155,000 155,000 152,331 (2,669)
Total fines and fees 4,449,327 4,449,327 4,461,439 12,112
Licenses and permits
Building permits 590,000 590,000 1,279,660 689,660
Miscellaneous permits 229,300 229,300 251,213 21,913
Minimum housing 194,000 194,000 151,558 (42,442)
Total licenses and permits 1,013,300 1,013,300 1,682,431 669,131
Investment income 35,000 35,000 97,775 62,775
Intergovernmental 399,700 399,700 398,528 (1,172)
Other revenues
Rental income 498,000 498,000 493,465 (4,535)
Swimming pools 210,000 210,000 259,761 49,761
Miscellaneous income 274,650 274,650 262,536 (12,114)
Total other revenues 982,650 982,650 1,015,762 33,112
Total revenues 34,636,793 34,636,793 35,839,815 1,203,022
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
SEPTEMBER 30, 2016
76
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation 3,255,008$ 3,250,353$ 2,969,137$ 281,216$
Development services 768,423 764,813 654,162 110,651
General and administrative 10,441,981 10,875,743 9,197,972 1,677,771
Highways and streets 1,593,843 1,592,603 1,555,702 36,901
Public safety 22,782,448 22,761,938 22,114,240 647,698
Total expenditures 38,841,703 39,245,450 36,491,213 2,754,237
Excess (deficiency) of revenues
over (under) expenditures (4,204,910) (4,608,657) (651,398) 3,957,259
Other financing sources (uses)
Transfers in 2,718,297 2,718,297 2,771,820 53,523
Transfers out (918,564) (918,564) (926,282) (7,718)
Total other financing
sources (uses), net 1,799,733 1,799,733 1,845,538 45,805
Net change in fund balance (2,405,177) (2,808,924) 1,194,140 4,003,064
Fund balance,
beginning of year 11,049,330 11,049,330 11,049,330 -
Fund balance, end of year 8,644,153$ 8,240,406$ 12,243,470$ 4,003,064$
Budgeted Amounts
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL SPECIAL REVENUE FUND
SEPTEMBER 30, 2016
77
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax 14,093,782$ 14,093,782$ 14,842,109$ 748,327$
Investment income 15,000 15,000 49,096 34,096
Total revenues 14,108,782 14,108,782 14,891,205 782,423
Expenditures
General and administrative 9,395,855 9,474,980 9,901,339 (426,359)
Capital outlay 2,610,400 2,610,400 2,000,000 610,400
Total expenditures 12,006,255 12,085,380 11,901,339 184,041
Excess of revenues over
expenditures 2,102,527 2,023,402 2,989,866 966,464
Other financing uses
Transfers out (4,744,153) (5,107,341) (5,177,301) (69,960)
Total other
financing uses (4,744,153) (5,107,341) (5,177,301) (69,960)
Net change in fund balance (2,641,626) (3,083,939) (2,187,435) 896,504
Fund balance, beginning of year 4,965,323 4,965,323 4,965,323 -
Fund balance, end of year 2,323,697$ 1,881,384$ 2,777,888$ 896,504$
Budgeted Amounts
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
78
NOTE 1. BUDGET BASIS OF ACCOUNTING
The City Council adheres to the following procedures in establishing budgetary data reflected
in the financial statements:
1. Prior to August 1, the City Manager submits to the City Council a proposed operating
budget for the fiscal year commencing the following October 1. The operating
budget includes proposed expenditures and expenses and means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to September 30, the budget is legally enacted through passage of an ordinance
and a budgetary report is prepared.
4. The City Manager is authorized to transfer budgeted amounts between departments
within any fund; however, any revision that alters the total expenditures of any fund
must be approved by the City Council. The budget presented reflects revisions made
during the year. The legal level of control is at the fund level.
5. A budget is legally adopted for the general fund and special revenue funds on a basis
consistent with accounting principles generally accepted in the United States of
America. Formal budgetary integration is employed as a management control device
during the year for the general fund and special revenue funds. Appropriations and
encumbrances lapse at year-end.
6. Formal budgetary integration is not employed for the debt service funds because
effective budgetary control is alternatively achieved through general obligation bond
indenture provisions.
7. Budgetary data for the capital projects funds has not been presented in the
accompanying basic financial statements as such funds are budgeted over the life of
the respective project and not on an annual basis. Accordingly, formal budgetary
integration of the capital projects funds is not employed and comparison of actual
results of operations to budgetary data for such funds is not presented.
8. Appropriated budgets for the proprietary funds are also adopted but have not been
presented since reporting on such budgets is not legally required.
The Budgetary Comparison Schedules – general fund and car rental tax special revenue fund
present a comparison of budgetary data to actual results. These funds utilize the same basis
of accounting for both budgetary purposes and actual results.
79
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
80
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
Hotel/Motel Fund – to account for the operations and expenditures for which hotel/motel
occupancy taxes are used. Occupancy tax revenues are used primarily for advertising and
promotion of the City.
Half-Penny Sales Tax Fund – to account for the sales tax revenues and expenditures of
the Euless Development Corporation, a component unit of the City of Euless. The
revenues can only be spent on parks, library, debt service, and economic development
activities with the City of Euless.
Police Drug Enforcement Fund – to account for proceeds from the sale of assets seized in
connection with drug arrests. Revenues are used solely for police department
expenditures.
Crime Control and Prevention District Fund – to account for the revenues and
expenditures of this component unit of the City of Euless. The revenues are collected
from sales taxes and expenditures can only be spent for police department operations and
capital as approved by the Crime Control and Prevention District Board.
Grant Fund – to account for grant revenues received by the City which must be spent in
accordance with the grant provisions.
Police Seized Asset Fund – to account for resources received from asset forfeiture
pursuant to court judgment File No. 09-13-640 to be administered in compliance with
Chapter 59, Texas Code of Criminal Procedure.
Juvenile Case Fund – to account for a fee added to municipal court citations. This fee is
used to support the expenditures associated with juvenile case processing.
Glade Parks Public Improvement District (PID) Fund – to account for the accumulation
of resources from an assessment levied upon properties within the district boundaries.
The resources are utilized for the repayment of debt issued to fund public improvements
within the district. The district assesses property owners only for the portion of the debt
payment not covered with resources of the Glade Parks TIRZ #3.
Tax Increment Reinvestment Zone #3 – Glade Parks Fund (TIRZ #3) – to account for the
accumulation of a portion of the incremental property taxes from taxing entities
participating in the tax increment reinvestment zone. The resources are used for the
repayment of debt issued to fund public improvements within the district.
81
NON-MAJOR GOVERNMENTAL FUNDS – Continued
Midtown 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.
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.
CAPITAL PROJECTS
Half-Penny Sales Tax CIP Fund – to account for bond proceeds and sales tax receipts to
be expended for capital projects funded by the Euless Development Corporation, a
component unit of the City of Euless.
Developers' Contribution Fund – to account for funds received for the purpose of making
new and future improvements to various development areas within the City.
Police CIP Fund – to account for the construction of a police facility.
General CIP Fund – to account for various general construction projects within the City.
Redevelopment CIP Fund – to account for land acquisition and revitalization projects
designed to enhance development and promote redevelopment throughout the
community.
Streets CIP Fund – to account for street construction and reconstruction projects and the
means of financing such improvements.
Midtown Reserve Fund – to account for resources used to establish the initial debt
reserve fund per the Midtown construction, funding, and development agreement.
Car Rental CIP Fund – to account for the building and infrastructure projects that are
funded from the short-term motor vehicle rental tax.
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
82
Police Crime
Drug Control and Police
Hotel/ Half-Penny Enforce- Prevention Seized Juvenile Glade Parks TIRZ #3 Midtown
Motel Sales Tax ment District Grant Assets Case PID Glade Parks PID
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Deposits and investments 413,189$ 2,612,478$ 499,262$ 977,916$ 5,652$ 432,692$ 220,853$ 750,000$ 101,001$ 35,000$
Accounts receivable 236,920 - - - 19,348 - 4,558 - 24,360 -
Accrued interest receivable - - - - - - - - - -
Due from other governments - 914,480 - 454,303 - - - - - -
Prepaids - 7,738 - - - - - - -
Restricted deposits and investments - - - - - - - - - -
Total assets 650,109$ 3,534,696$ 499,262$ 1,432,219$ 25,000$ 432,692$ 225,411$ 750,000$ 125,361$ 35,000$
LIABILITIES
Liabilities
Accounts payable 131,151$ 200,427$ -$ 2,488$ -$ -$ 3,743$ -$ -$ -$
Accrued salaries and wages - 84,452 - 88,952 5,545 9,905 3,724 - - -
Unearned revenue 55,841 - - - - - - - - -
Total liabilities 186,992 284,879 - 91,440 5,545 9,905 7,467 - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - - - 4,558 - - -
Total deferred inflows of resources - - - - - - 4,558 - - -
FUND BALANCES
Fund Balances
Nonspendable - 7,738 - - - - - - - -
Restricted, debt service - 189,527 - - - - - 750,000 - -
Restricted, capital projects - - - - - - - - - -
Restricted, developer agreements - - - - - - - - - -
Restricted, juvenile case management - - - - - - 213,386 - - -
Restricted, cable PEG fees - - - - - - - - - -
Restricted, historical preservation 1,245 - - - - - - - - -
Assigned 461,872 3,052,552 499,262 1,340,779 19,455 422,787 - - 125,361 35,000
Total fund balances 463,117 3,249,817 499,262 1,340,779 19,455 422,787 213,386 750,000 125,361 35,000
Total liabilities, deferred inflows of
resources, and fund balances 650,109$ 3,534,696$ 499,262$ 1,432,219$ 25,000$ 432,692$ 225,411$ 750,000$ 125,361$ 35,000$
Special Revenue Funds
83
Special
Revenue
Fund
Cable Half-Penny Car Total
PEG Sales Tax Developers' Police General Redevelopment Streets Midtown Rental Non-major
Fees CIP Contribution CIP CIP CIP CIP Reserve CIP Governmental
Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds
491,346$ 971,652$ 1,977,686$ -$ 1,101,546$ 207,230$ 484,282$ -$ 1,586,570$ 12,868,355$
35,000 - - - 17,184 - - - - 337,370
- - 1,625 - - - - - 3,042 4,667
- - - - - - - - - 1,368,783
- - - - - - - - - 7,738
- - - - - - - 999,725 - 999,725
526,346$ 971,652$ 1,979,311$ -$ 1,118,730$ 207,230$ 484,282$ 999,725$ 1,589,612$ 15,586,638$
895$ 14,971$ 1,348$ -$ -$ -$ 190,494$ -$ 359,813$ 905,330$
- - - - - - - - - 192,578
- - - - - - - - - 55,841
895 14,971 1,348 - - - 190,494 - 359,813 1,153,749
- - - - - - - - - 4,558
- - - - - - - - - 4,558
- - - - - - - - - 7,738
- - - - - - - - - 939,527
- - - - - - - 999,725 - 999,725
- - 1,977,963 - - - - - - 1,977,963
- - - - - - - - - 213,386
525,451 - - - - - - - - 525,451
- - - - - - - - - 1,245
- 956,681 - - 1,118,730 207,230 293,788 - 1,229,799 9,763,296
525,451 956,681 1,977,963 - 1,118,730 207,230 293,788 999,725 1,229,799 14,428,331
526,346$ 971,652$ 1,979,311$ -$ 1,118,730$ 207,230$ 484,282$ 999,725$ 1,589,612$ 15,586,638$
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, 2016
84
Police Crime
Drug Control and Police
Hotel/ Half-Penny Enforce- Prevention Seized Juvenile Glade Parks TIRZ #3 Midtown
Motel Sales Tax ment District Grant Asset Case PID Glade Parks PID
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
Revenues
General property tax -$ -$ -$ -$ -$ -$ -$ -$ 461,007$ -$
Gross receipts tax 696,805 - - - - - - - - -
General sales tax - 5,100,060 - 2,514,665 - - - - 153,708 -
Investment income 830 11,102 1,330 2,207 - 1,672 536 - - -
DEA revenues - - 18,274 - - - - - - -
Intergovernmental - - - - - - - -
Rents and royalties - - - - - - - - - -
Other revenues - - - - 252,336 3,771 102,557 - - 350,920
Total revenues 697,635 5,111,162 19,604 2,516,872 252,336 5,443 103,093 - 614,715 350,920
Expenditures
Culture and recreation - 2,893,450 - - 88,540 - - - - -
Development services - 208,409 - - - - - - - -
General and administrative 138,133 244,506 - - - - 80,463 - -
Highways and streets - - - - - - - - - -
Public safety - - 2,758 2,175,920 146,128 256,809 - - - -
Debt service
Principal - 165,000 - - - - - - -
Interest and fiscal charges - 4,376 - - - - - - - -
Capital outlay - 33,773 - 24,139 94,323 1,500 - - - -
Total expenditures 138,133 3,549,514 2,758 2,200,059 328,991 258,309 80,463 - - -
Excess (deficiency) of revenues
over (under) expenditures 559,502 1,561,648 16,846 316,813 (76,655) (252,866) 22,630 - 614,715 350,920
Other financing sources (uses)
Issuance of debt - - - - - - - - - -
Transfers in - - - - 85,794 - - - - -
Transfers out (380,960) (1,715,582) - - - - - - (519,624) (315,920)
Total other
financing sources (uses) (380,960) (1,715,582) - - 85,794 - - - (519,624) (315,920)
Net change in fund balances 178,542 (153,934) 16,846 316,813 9,139 (252,866) 22,630 - 95,091 35,000
Fund balance,
beginning of year 284,575 3,403,751 482,416 1,023,966 10,316 675,653 190,756 750,000 30,270 -
Fund balance, end of year 463,117$ 3,249,817$ 499,262$ 1,340,779$ 19,455$ 422,787$ 213,386$ 750,000$ 125,361$ 35,000$
Special Revenue Funds
85
Special
Revenue
Fund
Cable Half-Penny Car Total
PEG Sales Tax Developers' Police General Redevelopment Streets Midtown Rental Non-major
Fees CIP Contribution CIP CIP CIP CIP Reserve CIP Governmental
Fund Fund Fund Fund Fund Fund Fund Fund Fund Funds
-$ -$ -$ -$ -$ -$ -$ -$ -$ 461,007$
146,536 - - - - - - - - 843,341
- - - - - - - - - 7,768,433
1,219 2,843 8,038 - 3,133 641 2,312 - 15,290 51,153
- - - - - - - - - 18,274
- - - - - - 109,438 - - 109,438
- - - - 59,915 - - - - 59,915
- - 116,261 - - 101,400 - - - 927,245
147,755 2,843 124,299 - 63,048 102,041 111,750 - 15,290 10,238,806
- 71,234 696 - - - - - - 3,053,920
- - - - - - - - - 208,409
18,631 - - - - 279 - - 2,532 484,544
- - - - - - 133,012 - - 133,012
- - 2,695 - - - - - - 2,584,310
- - - - - - - - - 165,000
- - - - - - - - - 4,376
10,558 - - - 78,249 4,173,921 2,893,866 7,310,329
29,189 71,234 3,391 - - 78,528 4,306,933 - 2,896,398 13,943,900
118,566 (68,391) 120,908 - 63,048 23,513 (4,195,183) - (2,881,108) (3,705,094)
- - - - - - 3,030,000 999,725 - 4,029,725
- 130,000 - - - 770,918 2,519,775 3,506,487
- - - (454) - - - - - (2,932,540)
- 130,000 - (454) - - 3,800,918 999,725 2,519,775 4,603,672
118,566 61,609 120,908 (454) 63,048 23,513 (394,265) 999,725 (361,333) 898,578
406,885 895,072 1,857,055 454 1,055,682 183,717 688,053 - 1,591,132 13,529,753
525,451$ 956,681$ 1,977,963$ -$ 1,118,730$ 207,230$ 293,788$ 999,725$ 1,229,799$ 14,428,331$
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, 2016
86
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 425,687$ 425,687$ 696,805$ 271,118$
Investment income 70 70 830 760
Total revenues 425,757 425,757 697,635 271,878
Expenditures
General and administrative 51,147 127,493 138,133 (10,640)
Total expenditures 51,147 127,493 138,133 (10,640)
Other financing uses
Transfers out (399,574) (399,574) (380,960) 18,614
Total other financing uses (399,574) (399,574) (380,960) 18,614
Net change in fund balance (24,964) (101,310) 178,542 279,852
Fund balance, beginning of year 284,575 284,575 284,575 -
Fund balance, end of year 259,611$ 183,265$ 463,117$ 279,852$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL
HALF-PENNY SALES TAX SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2016
87
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 4,650,704$ 4,650,704$ 5,100,060$ 449,356$
Investment income 1,400 1,400 11,102 9,702
Total revenues 4,652,104 4,652,104 5,111,162 459,058
Expenditures
Culture and recreation 3,383,954 3,383,954 2,927,223 456,731
Development services 764,561 764,561 208,409 556,152
General and administrative 287,793 309,308 244,506 64,802
Debt service
Principal 165,000 165,000 165,000 -
Interest and fiscal charges 4,376 4,376 4,376 -
Total expenditures 4,605,684 4,627,199 3,549,514 1,077,685
Excess (deficiency) of revenues
over (under) expenditures 46,420 24,905 1,561,648 1,536,743
Other financing uses
Transfers out (1,774,805) (1,774,805) (1,715,582) 59,223
Total other
financing uses (1,774,805) (1,774,805) (1,715,582) 59,223
Net change in fund balance (1,728,385) (1,749,900) (153,934) 1,595,966
Fund balance, beginning of year 3,403,751 3,403,751 3,403,751 -
Fund balance, end of year 1,675,366$ 1,653,851$ 3,249,817$ 1,595,966$
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, 2016
88
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 1,000$ 1,000$ 1,330$ 330$
DEA revenues - - 18,274 18,274
Total revenues 1,000 1,000 19,604 18,604
Expenditures
Public safety 201,000 201,000 2,758 198,242
Total expenditures 201,000 201,000 2,758 198,242
Net change in fund balance (200,000) (200,000) 16,846 216,846
Fund balance, beginning of year 482,416 482,416 482,416 -
Fund balance, end of year 282,416$ 282,416$ 499,262$ 216,846$
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, 2016
89
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax 2,290,845$ 2,290,845$ 2,514,665$ 223,820$
Investment income 100 100 2,207 2,107
Total revenues 2,290,945 2,290,945 2,516,872 225,927
Expenditures
Public safety 2,491,461 2,491,461 2,200,059 291,402
Total expenditures 2,491,461 2,491,461 2,200,059 291,402
Net change in fund balance (200,516) (200,516) 316,813 517,329
Fund balance, beginning of year 1,023,966 1,023,966 1,023,966 -
Fund balance, end of year 823,450$ 823,450$ 1,340,779$ 517,329$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL
GRANT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2016
90
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues 70,000$ 70,000$ 252,336$ 182,336$
Total revenues 70,000 70,000 252,336 182,336
Expenditures
Culture and recreation - 100,077 88,540 11,537
Public safety 145,117 230,112 240,451 (10,339)
Total expenditures 145,117 330,189 328,991 1,198
Other financing sources
Transfers in 77,169 77,169 85,794 8,625
Total other financing sources 77,169 77,169 85,794 8,625
Net change in fund balance 2,052 (183,020) 9,139 192,159
Fund balance, beginning of year 10,316 10,316 10,316 -
Fund balance, end of year 12,368$ 172,704)($ 19,455$ 192,159$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL
POLICE SEIZED ASSETS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2016
91
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income -$ -$ 1,672$ 1,672$
Other revenues - - 3,771 3,771
Total revenues - - 5,443 5,443
Expenditures
Public safety 235,092 235,092 258,309 (23,217)
Total expenditures 235,092 235,092 258,309 (23,217)
Net change in fund balance (235,092) (235,092) (252,866) (17,774)
Fund balance, beginning of year 675,653 675,653 675,653 -
Fund balance, end of year 440,561$ 440,561$ 422,787$ (17,774)$
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, 2016
92
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income 30$ 30$ 536$ 506$
Other revenues 101,000 101,000 102,557 1,557
Total revenues 101,030 101,030 103,093 2,063
Expenditures
General and administrative 86,010 86,010 80,463 5,547
Total expenditures 86,010 86,010 80,463 5,547
Net change in fund balance 15,020 15,020 22,630 7,610
Fund balance, beginning of year 190,756 190,756 190,756 -
Fund balance, end of year 205,776$ 205,776$ 213,386$ 7,610$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL
GLADE PARKS PID SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2016
93
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Other financing uses
Transfers out (49,635)$ (49,635)$ -$ 49,635$
Total other financing uses (49,635) (49,635) - 49,635
Net change in fund balance (49,635) (49,635) - 49,635
Fund balance, beginning of year 750,000 750,000 750,000 -
Fund balance, end of year 700,365$ 700,365$ 750,000$ 49,635$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL
TIRZ #3 GLADE PARKS SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2016
94
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax 451,972$ 451,972$ 461,007$ 9,035$
General sales tax 109,872 109,872 153,708 43,836
Total revenues 561,844 561,844 614,715 52,871
Other financing uses
Transfers out (564,359) (564,359) (519,624) 44,735
Total other
financing uses (564,359) (564,359) (519,624) 44,735
Net change in fund balance (2,515) (2,515) 95,091 97,606
Fund balance, beginning of year 30,270 30,270 30,270 -
Fund balance, end of year 27,755$ 27,755$ 125,361$ 97,606$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL
EULESS MIDTOWN PUBLIC IMPROVEMENT DISTRICT FUND
YEAR ENDED SEPTEMBER 30, 2016
95
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues -$ -$ 350,920$ 350,920$
Total revenues - - 350,920 350,920
Other financing uses
Transfers out - 350,920 315,920 35,000
Total other financing uses - 350,920 315,920 35,000
Net change in fund balance - (350,920) 35,000 385,920
Fund balance, beginning of year - - - -
Fund balance, end of year -$ (350,920)$ 35,000$ 385,920$
Budgeted Amounts
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL
CABLE PEG FEES SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2016
96
Variance with
Actual Final Budget
GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax 120,000$ 120,000$ 146,536$ 26,536$
Investment income - - 1,219 1,219$
Total revenues 120,000 120,000 147,755 27,755
Expenditures
General and administrative 60,000 60,000 18,631 41,369
Capital outlay 60,000 60,000 10,558 49,442
Total expenditures 120,000 120,000 29,189 90,811
Excess of revenues over
expenditures - - 118,566 118,566
Fund balance, beginning of year 406,885 406,885 406,885 -
Fund balance, end of year 406,885$ 406,885$ 525,451$ 118,566$
Budgeted Amounts
97
NON-MAJOR PROPRIETARY FUNDS
Enterprise funds are used to account for operations financed and operated in a manner similar to
private business enterprises where the intent of the government's council is to recover the costs
of providing goods or services to the general public on a continuing basis primarily through user
charges; or where the government's council has decided that periodic determination of net
income is appropriate for accountability purposes.
Recreation Classes – to account for the operation of recreational programs and
activities which are offered to groups and individuals on a fee basis.
Texas Star Sports Complex – to account for the operation and maintenance of
Softball World and The Parks at Texas Star Complexes, supported primarily by
user charges.
Arbor Daze Fund – to account for the receipts and disbursements of the annual
Arbor Daze Festival, supported primarily by user charges.
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2016
(1 of 2)
98
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
ASSETS
Current assets
Deposits and investments 302,019$ 3,040,948$ 16,440$ 3,359,407$
Accounts receivable and
unbilled revenue - 21,461 - 21,461
Interest receivable - 2,088 - 2,088
Prepaids and deposits 3,700 14,327 - 18,027
Inventory - 83,852 - 83,852
Total current assets 305,719 3,162,676 16,440 3,484,835
Non-current assets
Net OPEB asset 555 5,805 - 6,360
Property, plant, and equipment, at cost
Land - 584,532 - 584,532
Building - 488,275 - 488,275
Equipment 141,585 115,030 - 256,615
Improvements - 8,006,174 - 8,006,174
Construction in progress - 466,396 - 466,396
Total property, plant, and equipment 141,585 9,660,407 - 9,801,992
Less accumulated depreciation 85,018 4,796,961 - 4,881,979
Net property, plant, and equipment 56,567 4,863,446 - 4,920,013
Total non-current assets 57,122 4,869,251 - 4,926,373
Total assets 362,841 8,031,927 16,440 8,411,208
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions - 52,719 - 52,719
Total deferred outflows of resources - 52,719 - 52,719
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2016
(2 of 2)
99
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable 10,827$ 217,410$ - $ 228,237$
Accrued salaries and wages 6,156 13,417 - 19,573
Current portion of compensated absences - 929 - 929
Total current liabilities 16,983 231,756 - 248,739
Non-current liabilities
Net pension liability - 101,352 - 101,352
Compensated absences - 8,366 - 8,366
Total non-current liabilities - 109,718 - 109,718
Total liabilities 16,983 341,474 - 358,457
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions - 5,729 - 5,729
Total deferred inflows of resources - 5,729 - 5,729
NET POSITION
Net investment in capital assets 56,567 4,863,446 - 4,920,013
Unrestricted 289,291 2,873,997 16,440 3,179,728
Total net position 345,858$ 7,737,443$ 16,440$ 8,099,741$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2016
100
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
Operating revenues
Recreation fees 702,298$ -$ -$ 702,298$
Service fees and miscellaneous - 1,356,190 925 1,357,115
Total operating revenues 702,298 1,356,190 925 2,059,413
Operating expenses
Recreation classes 690,148 - - 690,148
Texas Star Sports Complex - 1,147,305 - 1,147,305
Arbor Daze - - 52,312 52,312
Depreciation 11,705 305,002 - 316,707
Amortization - (1,279) - (1,279)
Total operating expenses 701,853 1,451,028 52,312 2,205,193
Operating income (loss) 445 (94,838) (51,387) (145,780)
Nonoperating revenues (expenses)
Gain on sale of capital asset 2,935 - - 2,935
Investment income 761 12,320 6 13,087
Interest expense - (2,400) - (2,400)
Total nonoperating revenues 3,696 9,920 6 13,622
Transfers In - 1,430,000 51,386 1,481,386
Change in net position 4,141 1,345,082 5 1,349,228
Net position, beginning of year 341,717 6,392,361 16,435 6,750,513
Net position, end of year 345,858$ 7,737,443$ 16,440$ 8,099,741$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2016
101
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers 704,893$ 1,351,942$ 925$ 2,057,760$
Cash payments to suppliers for goods and services (432,371) (691,188) (52,312) (1,175,871)
Cash payments to employees for services (256,619) (260,112) - (516,731)
Net cash provided by (used in) operating activities 15,903 400,642 (51,387) 365,158
NON-CAPITAL FINANCING ACTIVITIES
Transfers in - 1,430,000 51,386 1,481,386
Net cash provided by non-capital
and related financing activities - 1,430,000 51,386 1,481,386
CAPITAL AND RELATED FINANCING ACTIVITIES
Interest paid on bonds - (3,200) - (3,200)
Reduction in bonds payable - (160,000) - (160,000)
Purchase of capital assets (52,774) (466,396) - (519,170)
Proceeds from sale of capital assets 2,935 - - 2,935
Net cash used in capital
and related financing activities (49,839) (629,596) - (679,435)
INVESTING ACTIVITIES
Interest received on investments 761 11,258 6 12,025
Net cash provided by investing activities 761 11,258 6 12,025
Net change in cash and
and cash equivalents (33,175) 1,212,304 5 1,179,134
Cash and cash equivalents, be ginning of year 335,194 1,828,644 16,435 2,180,273
Cash and cash equivalents, end of year 302,019$ 3,040,948$ 16,440$ 3,359,407$
Reconciliation of operating income (loss) to net cas h
provided by (used in) operating activities
Operating income (loss) 445$ (94,838)$ (51,387)$ (145,780)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities
Depreciation and amortization 11,705 303,723 - 315,428
Changes in assets and liabilities
Accounts receivable and unbilled revenue 2,595 (7,517) - (4,922)
Prepaids and deposits (200) 3,840 - 3,640
Inventory - 5,763 - 5,763
Net OPEB asset - (2,318) - (2,318)
Net pension liability - 34,714 - 34,714
Deferred outflows - (33,531) - (33,531)
Deferred inflows - 3,269 - 3,269
Accounts payable (350) 188,417 - 188,067
Accrued salaries and wages 1,708 424 - 2,132
Compensated absences - (1,304) - (1,304)
Net cash provided by (used in) operating activities 15,903$ 400,642$ (51,387)$ 365,158$
102
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the City and to other government units on a cost
reimbursement basis.
Equipment Replacement Fund – to account for the accumulation of funds to be used
for replacement of existing equipment. Funding is provided annually by the user
departments.
Insurance Fund – to account for the revenues and expenses resulting from providing
health insurance to the City's employees.
Risk Management/Workers’ Compensation (Risk/WC) Fund – to account for the
revenue and expenses applicable to providing workers’ compensation coverage for
all City employees, as well as, general liability and property coverage.
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2016
103
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Deposits and investments 2,764,686$ 3,227,830$ 2,280,375$ 8,272,891$
Accounts receivable - 401,113 - 401,113
Prepaid expenses 467,449 2,200 - 469,649
Accrued interest receivable 885 1,567 972 3,424
Total current assets 3,233,020 3,632,710 2,281,347 9,147,077
Property, plant, and equipment, at cost
Equipment 11,260,555 - 70,214 11,330,769
Less accumulated depreciation 7,875,686 - 26,439 7,902,125
Net property, plant, and equipment 3,384,869 - 43,775 3,428,644
Total assets 6,617,889 3,632,710 2,325,122 12,575,721
Accounts payable - 6,400 283,145 289,545
Accrued salary and wages - 10,260 2,429 12,689
Accrued insurance claims - 849,000 2,843 851,843
Total liabilities - 865,660 288,417 1,154,077
Net investment in capital assets 3,384,869 - 43,775 3,428,644
Unrestricted 3,233,020 2,767,050 1,992,930 7,993,000
Total net position 6,617,889$ 2,767,050$ 2,036,705$ 11,421,644$
ASSETS
LIABILITIES
NET POSITION
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2016
104
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Operating revenues
Insurance premiums -$ 5,330,761$ 419,436$ 5,750,197$
Service fees and miscellaneous 1,209,320 526,229 61,540 1,797,089
Total operating revenues 1,209,320 5,856,990 480,976 7,547,286
Operating expenses
General and administrative 95,180 1,558,840 73,303 1,727,323
Insurance costs - 5,218,563 251,169 5,469,732
Depreciation 956,887 - 6,397 963,284
Total operating expenses 1,052,067 6,777,403 330,869 8,160,339
Operating income (loss) 157,253 (920,413) 150,107 (613,053)
Nonoperating revenues
Gain on sale of capital assets 33,151 - - 33,151
Investment income 10,854 15,334 7,649 33,837
Total nonoperating revenues 44,005 15,334 7,649 66,988
Income (loss) before transfers 201,258 (905,079) 157,756 (546,065)
Transfers
Transfers in 336,252 350,000 450,000 1,136,252
Change in net position 537,510 (555,079) 607,756 590,187
Net position, beginning of year 6,080,379 3,322,129 1,428,949 10,831,457
Net position, end of year 6,617,889$ 2,767,050$ 2,036,705$ 11,421,644$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2016
105
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers 1,209,320$ 5,567,592$ 480,976$ 7,257,888$
Cash payments to suppliers for goods and services (562,629) (6,361,998) (682,083) (7,606,710)
Cash payments to employees for services - (67,815) (51,897) (119,712)
Net cash provided by (used in) operating activities 646,691 (862,221) (253,004) (468,534)
NONCAPITAL FINANCING ACTIVITIES
Transfers in 336,252 350,000 450,000 1,136,252
Net cash provided by noncapital financing activities 336,252 350,000 450,000 1,136,252
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (1,226,768) - - (1,226,768)
Proceeds from sale of capital assets 41,555 - - 41,555
Net cash used in capital and related financing activities (1,185,213) - - (1,185,213)
INVESTING ACTIVITIES
Interest received on investments 10,854 16,832 7,511 35,197
Net cash provided by investing activities 10,854 16,832 7,511 35,197
Net increase (decrease) in cash and cash equivalents (191,416) (495,389) 204,507 (482,298)
Cash and cash equivalents, beginning of year 2,956,102 3,723,219 2,075,868 8,755,189
Cash and cash equivalents, end of year 2,764,686$ 3,227,830$ 2,280,375$ 8,272,891$
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss) 157,253$ (920,413)$ 150,107$ (613,053)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities
Depreciation expense 956,887 - 6,397 963,284
Change in assets and liabilities
Receivables - (289,398) - (289,398)
Prepaids (467,449) (2,200) - (469,649)
Accounts payable - (1,970) (81,978) (83,948)
Accrued salaries and wages - 10,260 (1,628) 8,632
Accrued insurance claims - 341,500 (325,902) 15,598
Net cash provided by (used in) operating activities 646,691$ (862,221)$ (253,004)$ (468,534)$
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ESCROW AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2016
106
Balance Balance
October 1, September 30,
2015 Additions Deductions 2016
Stars Center Escrow Fund
Assets
Investments at fair value 1,420,809$ 4,097$ (3,019)$ 1,421,887$
Total assets 1,420,809$ 4,097$ (3,019)$ 1,421,887$
Liabilities
Due to other entities 1,420,547$ -$ -$ 1,420,547$
Refunds payable 262 1,340 (262) 1,340
Total liabilities 1,420,809$ 1,340$ (262)$ 1,421,887$
STATISTICAL SECTION
(Unaudited)
THIS PAGE INTENTIONALLY LEFT BLANK
107
STATISTICAL SECTION
(Unaudited)
The statistical section of the City of Euless’ comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the City’s
overall financial health.
Contents Tables
Financial Trends 1-4
The financial trend schedules contain trend information to help the reader
understand how the City’s financial performance and well-being have changed
over time.
Revenue Capacity 5-8
The revenue capacity schedules contain information to help the reader assess
the City’s most significant local revenue source, the property tax.
Debt Capacity 9-13
The debt capacity schedules present information to help the reader assess the
affordability of the City’s current level of outstanding debt (including that of
its blended component units) and the City’s ability to issue additional debt in
the future.
Demographic and Economic Information 14-15
The demographic and economic schedules offer demographic and economic
indicators to help the reader understand the environment within which the
City’s financial activities occur.
Operating Information 16-18
The operating information schedules contain service and infrastructure data to
help the reader understand how the information in the City’s financial report
relates to the services it provides and the activities it performs.
CITY OF EULESS, TEXAS NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 1 108 Fiscal Year2007 2008 2009 2010 2011* 2012 2013 2014 2015 2016Governmental activitiesNet investment in capital assets 58,251,542$ 60,799,897$ 66,241,593$ 73,815,504$ 71,051,094$ 77,828,950$ 88,228,282$ 94,162,906$ 99,539,958$ 108,135,655$ Restricted 1,725,998 1,813,871 1,845,987 1,375,950 1,818,957 4,426,819 4,138,774 4,999,085 5,666,450 17,508,943 Unrestricted 27,104,410 31,041,434 29,885,070 24,933,443 31,448,528 27,192,202 24,910,579 23,921,367 17,302,574 3,610,521 Total governmental activities net position 87,081,950$ 93,655,202$ 97,972,650$ 100,124,897$ 104,318,579$ 109,447,971$ 117,277,635$ 123,083,358$ 122,508,982$ 129,255,119$ Business-type activitiesNet investment in capital assets 50,186,697$ 52,155,251$ 53,569,070$ 53,318,214$ 53,132,882$ 52,202,849$ 52,334,570$ 55,160,900$ 55,396,268$ 59,184,256$ Restricted for debt service - - 3,963,919 438,340 438,948 309,595 314,171 317,758 733,562 733,164 Restricted for capital projects - - - - - - - 232,300 1,183,350 4,265,268 Restricted for impact fees and debt service - - - 2,999,156 2,649,336 2,401,217 2,740,656 1,876,393 1,966,315 1,980,150 Unrestricted 16,421,971 16,900,637 12,980,130 13,987,730 16,947,928 17,703,257 18,150,441 15,047,592 12,554,695 11,122,601 Total business-type activities net position 66,608,668$ 69,055,888$ 70,513,119$ 70,743,440$ 73,169,094$ 72,616,918$ 73,539,838$ 72,634,943$ 71,834,190$ 77,285,439$ Primary governmentNet investment in capital assets 108,438,239$ 112,955,148$ 119,810,663$ 127,133,718$ 124,183,976$ 130,031,799$ 140,562,852$ 149,323,806$ 154,936,226$ 167,319,911$ Restricted 1,725,998 1,813,871 5,809,906 4,813,446 4,907,241 7,137,631 7,193,601 7,425,536 9,549,677 24,487,525 Unrestricted 43,526,381 47,942,071 42,865,200 38,921,173 48,396,456 44,895,459 43,061,020 38,968,959 29,857,269 14,733,122 Total primary government net position 153,690,618$ 162,711,090$ 168,485,769$ 170,868,337$ * 177,487,673$ 182,064,889$ 190,817,473$ 195,718,301$ 194,343,172$ 206,540,558$ Source: Comprehensive Annual Financial Reports* Recalculated
CITY OF EULESS, TEXAS CHANGES IN NET POSITION – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) Table 2 109 Fiscal Year2007 2008 2009 2010 2011 2012 2013 2014 2015 2016ExpensesGovernmental activities:Culture and recreation 5,002,569$ 4,862,749$ 4,892,936$ 5,004,580$ 5,091,589$ 5,680,772$ 6,025,540$ 6,424,683$ 6,468,332$ 6,998,904$ Development services 1,487,102 1,420,477 1,707,421 1,692,845 1,707,148 972,770 1,155,089 1,367,005 877,713 918,214 General and administrative 16,495,449 17,733,714 17,267,094 14,571,600 15,698,832 15,910,313 17,145,752 18,017,535 19,949,733 20,722,236 Highways and streets 2,206,697 2,534,856 2,057,123 2,662,949 2,923,241 2,968,770 3,334,188 3,578,341 3,374,422 3,708,184 Public safety 17,047,334 18,708,849 19,379,290 21,416,966 20,754,733 22,316,429 23,324,328 24,278,144 23,807,143 26,673,966 Interest on long-term debt 2,664,658 3,151,039 2,377,564 1,885,177 1,618,420 1,327,482 1,227,084 1,126,017 1,136,786 1,807,001 Total governmental activities expenses 44,903,809 48,411,684 47,681,428 47,234,117 47,793,963 49,176,536 52,211,981 54,791,725 55,614,129 60,828,505 Business-type activities:Water and wastewater 15,418,299 16,462,599 15,623,464 17,035,520 17,827,272 17,813,199 18,554,761 20,298,024 19,970,346 21,009,701 Drainage utility 1,059,272 932,771 947,869 1,107,206 1,177,938 1,283,617 1,245,838 1,373,036 1,319,999 1,414,483 Golf 4,250,866 4,421,256 4,690,701 4,460,627 4,483,252 4,599,099 4,750,359 4,152,015 4,155,834 4,409,773 Other recreation enterprises 2,109,291 2,155,131 2,016,273 1,866,786 1,982,613 2,115,730 2,312,949 2,288,337 2,009,582 2,211,065 Total business-type activities expenses 22,837,728 23,971,757 23,278,307 24,470,139 25,471,075 25,811,645 26,863,907 28,111,412 27,455,761 29,045,022 Total primary government expenses 67,741,537 72,383,441 70,959,735 71,704,256 73,265,038 74,988,181 79,075,888 82,903,137 83,069,890 89,873,527 Program RevenuesGovernmental activities:Fees, fines, and charges for servicesCulture and recreation 83,084 65,349 67,283 66,368 69,950 65,912 297,361 304,283 317,024 291,349 Development services 833,822 688,348 783,955 751,323 779,939 1,263,477 1,186,347 1,321,040 1,409,703 1,717,416 General and administrative 1,252,030 1,391,437 4,092,387 1,548,497 1,707,890 1,760,023 1,383,779 1,347,600 1,342,091 1,285,797 Highways and streets (8,026) 722,334 11,008 - - 54,622 112,736 218,012 93,258 350,920 Public safety 4,423,564 5,439,171 4,030,566 4,345,101 3,271,115 3,097,141 3,355,604 3,567,917 3,452,086 3,383,743 Operating grants and contributions 411,857 486,862 487,059 511,093 469,404 481,655 2,978,933 633,080 597,437 578,007 Capital grants and contributions 2,199,106 1,885,266 268,130 602,372 1,015,402 689,642 1,213,341 1,552,118 3,228,945 3,375,733 Total governmental activities program revenues 9,195,437 10,678,767 9,740,388 7,824,754 7,313,700 7,412,472 10,528,101 8,944,050 10,440,544 10,982,965 Business-type activities:Charges for servicesWater and wastewater 13,730,467 15,849,209 16,381,801 17,321,670 19,978,802 18,437,963 19,183,198 19,353,144 20,593,262 23,759,236 Drainage utility 701,476 661,725 689,889 691,800 694,751 705,474 708,984 712,971 716,595 725,152 Golf 3,825,486 3,904,008 4,069,151 5,279,259 4,746,242 4,335,149 4,520,224 3,622,952 4,168,578 4,187,728 Other recreation enterprises 1,636,883 1,819,459 1,703,196 1,937,416 2,684,905 2,041,878 2,138,600 2,241,920 1,848,434 2,059,413 Operating grants and contributions - - - - - - - - - - Capital grants and contributions 1,012,919 2,183,600 1,705,746 26,400 772,714 368,882 1,847,097 2,037,263 1,746,638 2,943,188 Total business-type activities program revenues 20,907,231 24,418,001 24,549,783 25,256,545 28,877,414 25,889,346 28,398,103 27,968,250 29,073,507 33,674,717 Total primary government program revenues 30,102,668 35,096,768 34,290,171 33,081,299 36,191,114 33,301,818 38,926,204 36,912,300 39,514,051 44,657,682 (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued)
CITY OF EULESS, TEXAS CHANGES IN NET POSITION – LAST TEN FISCAL YEARS (Accrual Basis of Accounting – Unaudited) – Continued Table 2 110 Net (Expense) RevenueGovernmental activities (35,708,372)$ (37,732,917)$ (37,941,040)$ (39,409,363)$ (40,480,263)$ (41,764,064)$ (41,683,880)$ (45,847,675)$ (45,173,585)$ (49,845,540)$ Business-type activities (1,930,497) 446,244 1,271,476 786,406 3,406,339 77,701 1,534,196 (143,162) 1,617,746 4,629,695 Total primary government net expense (37,638,869) (37,286,673) (36,669,564) (38,622,957) (37,073,924) (41,686,363) (40,149,684) (45,990,837) (43,555,839) (45,215,845) General Revenues and Other Changes in Net PositionGovernmental activities:TaxesProperty taxes, levied for general purposes 12,343,359 12,231,294 12,685,268 12,306,387 11,855,993 12,451,543 12,744,753 13,488,816 14,358,074 14,752,044 Sales taxes 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 14,957,757 16,142,357 17,525,123 18,359,717 20,364,878 Car rental taxes 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 12,933,884 13,592,255 14,082,518 14,112,552 14,842,109 Mixed beverage taxes 87,400 84,653 76,433 71,653 66,383 54,138 60,823 69,160 84,533 101,503 Hotel/motel occupancy taxes 240,457 234,780 185,417 237,429 272,809 292,931 329,368 343,312 391,991 696,805 Gross receipts taxes 3,619,955 3,816,501 4,074,355 3,967,036 4,174,627 4,276,136 4,209,564 4,458,682 4,556,355 4,467,535 Investment income 2,031,580 1,727,542 863,225 292,761 168,929 132,607 106,521 70,374 127,367 271,786 Rents and royalties - - - - - 397,527 1,481,305 1,390,283 1,166,832 1,105,829 Gain/(loss) on disposal of assets 74,163 71,143 37,909 116,978 100,110 68,329 117,763 84,664 - - Miscellaneous - - 11,018 103,569 1,419,512 637,975 35,884 48,773 35,128 692,939 Transfers 617,418 (1,012,140) 90,303 647,463 904,867 690,629 692,951 531,974 722,702 (703,751) Total governmental activities 45,960,866 44,306,169 42,258,488 41,561,610 44,673,945 46,893,456 49,513,544 52,093,679 53,915,251 56,591,677 Business-type activities:Investment income 1,023,865 726,385 254,071 87,799 66,161 60,752 40,045 34,063 40,282 104,618 Contributions from property owners 253,786 252,045 - - - - - - - - Gain on disposal of assets 277,004 - - 3,579 (141,979) - 41,630 - 4,199 13,185 Miscellaneous 224,001 10,406 21,987 - - - - - - - Transfers (617,418) 1,012,140 (90,303) (647,463) (904,867) (690,629) (692,951) (531,974) (722,702) 703,751 Total business-type activities 1,161,238 2,000,976 185,755 (556,085) (980,685) (629,877) (611,276) (497,911) (678,221) 821,554 Total primary government 47,122,104 46,307,145 42,444,243 41,005,525 43,693,260 46,263,579 48,902,268 51,595,768 53,237,030 57,413,231 Change in Net PositionGovernmental activities 10,252,494 6,573,252 4,317,448 2,152,247 4,193,682 5,129,392 7,829,664 6,246,004 8,741,666 6,746,137 Business-type activities (769,259) 2,447,220 1,457,231 230,321 2,425,654 (552,176) 922,920 (641,073) 939,525 5,451,249 Total primary government 9,483,235$ 9,020,472$ 5,774,679$ 2,382,568$ 6,619,336$ 4,577,216$ 8,752,584$ 5,604,931$ 9,681,191$ 12,197,386$ (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 3 111 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016General FundReserved for other 392,950$ 362,018$ 354,882$ 492,776$ -$ -$ -$ -$ -$ -$ Nonspendable - - - - 19,344 28,796 49,262 48,072 47,834 35,250 Restricted - - - - 311,076 258,765 124,312 120,093 109,618 121,041 Assigned - - - - 103,423 111,096 121,542 121,334 116,336 113,655 Unreserved/Unassigned 10,594,492 8,355,946 7,288,976 7,121,683 7,296,719 8,913,078 9,595,558 10,560,958 10,775,542 11,973,524 Total general fund 10,987,442$ 8,717,964$ 7,643,858$ 7,614,459$ 7,730,562$ 9,311,735$ 9,890,674$ 10,850,457$ 11,049,330$ 12,243,470$ All Other Governmental FundsReserved for:Debt service 1,893,893$ 1,967,502$ 1,987,783$ 1,622,584$ -$ -$ -$ -$ -$ -$ Development Agreements 1,598,658 1,671,038 1,553,876 1,454,496 - - - - - - Other 1,245 1,245 1,245 7,677 - - - - - - Unreserved, reported in:Special revenue funds 11,330,717 5,741,072 6,020,996 7,780,378 - - - - - - Capital funds 4,627,428 10,940,619 10,918,516 5,792,872 - - - - - - Nonspendable - - - - 5,665 5,803 9,464 34,704 15,399 7,738 Restricted for:Debt service - - - - 1,818,957 1,867,971 1,776,644 2,377,710 2,477,981 1,995,548 Capital projects - - - - 2,168,956 606,505 365,641 398,756 594,211 12,715,424 Other - - - - 87,972 1,694,821 1,872,178 2,089,735 2,455,941 2,718,045 Assigned - - - - 14,855,820 15,802,863 13,504,412 12,692,185 13,765,385 12,541,184 Total all other governmental funds 19,451,941$ 20,321,476$ 20,482,416$ 16,658,007$ 18,937,370$ 19,977,963$ 17,528,339$ 17,593,090$ 19,308,917$ 29,977,939$ 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 4 112 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Revenues:General property tax 12,482,090$ 12,200,974$ 12,735,324$ 12,277,457$ 11,786,579$ 12,382,757$ 12,893,583$ 13,468,394$ 14,351,598$ 14,771,632$ Gross receipts tax 3,947,812 4,135,934 4,336,205 4,276,110 4,513,819 4,623,205 4,599,755 4,871,154 5,032,879 5,265,843 General sales tax 13,990,652 14,319,938 12,602,345 12,337,598 13,252,805 14,957,757 16,142,357 17,525,123 18,359,717 20,364,878 Car rental tax 12,955,882 12,832,458 11,632,215 11,480,736 12,457,910 12,933,884 13,592,255 14,082,518 14,112,552 14,842,109 Fines and fees 4,348,839 4,297,304 4,086,594 4,336,063 4,033,868 4,278,738 4,627,199 4,646,390 4,289,681 4,461,439 Licenses and permits 804,404 752,421 783,955 719,918 744,978 1,233,465 1,152,875 1,286,753 1,379,332 1,682,431 Investment income 1,784,492 1,512,898 742,444 253,302 143,564 107,195 92,118 57,880 105,443 237,949 DEA revenues 5,360 26,580 14,883 15,350 6,589 12,488 3,571 15,316 39,292 18,274 Intergovernmental 334,979 353,567 379,503 376,512 377,660 1,012,673 2,839,545 461,484 906,695 507,966 Rents and royalties - - - 1,620,210 1,233,686 1,111,873 1,024,021 1,390,283 637,196 612,365 Other revenues 1,513,511 2,924,573 4,300,564 978,179 1,194,966 1,206,611 1,383,172 1,210,086 1,795,395 1,943,007 Total Revenues 52,168,021 53,356,647 51,614,032 48,671,435 49,746,424 53,860,646 58,350,451 59,015,381 61,009,780 64,707,893 Expenditures:Culture and recreation 4,500,202 4,461,329 4,350,573 4,120,435 4,335,786 4,676,100 5,171,477 5,558,463 5,704,520 6,023,057 Development services 1,461,222 1,232,277 1,355,105 1,251,706 1,340,898 688,296 806,275 1,017,903 882,212 862,571 General and administrative 16,377,711 17,660,608 16,230,408 14,796,474 15,610,772 15,539,673 17,207,934 17,711,441 18,357,428 18,975,116 Highways and streets 693,711 943,171 861,885 610,996 713,742 861,748 1,144,223 1,351,404 1,606,372 1,688,714 Public safety 16,958,988 17,930,526 18,560,852 19,011,663 19,492,862 21,074,399 22,192,488 23,121,457 23,521,280 24,698,550 Debt Service:Principal 3,030,000 3,010,000 2,990,000 3,110,000 3,445,000 8,210,000 3,975,000 5,567,404 4,284,197 3,530,000 Interest and fiscal charges 2,577,106 2,437,894 2,312,734 2,189,070 1,798,615 1,361,259 1,241,776 1,148,069 1,243,589 1,743,450 Issuance costs 5,946 - - 95,000 178,229 184,966 26,064 - - - Capital outlay 3,777,225 5,843,641 5,730,944 6,865,802 4,805,147 3,727,193 10,390,582 2,672,010 9,086,345 14,871,624 Total expenditures 49,382,111 53,519,446 52,392,501 52,051,146 51,721,051 56,323,634 62,155,819 58,148,151 64,685,943 72,393,082 Excess (deficiency) of revenuesover (under) expenditures 2,785,910 (162,799) (778,469) (3,379,711) (1,974,627) (2,462,988) (3,805,368) 867,230 (3,676,163) (7,685,189) Other Financing Sources (Uses):Capital lease - - - - 494,322 - 1,446,603 - - - Issuance of debt - - - 8,110,000 9,610,000 9,740,000 1,160,000 - 11,400,000 20,760,000 Payment of escrow for refunding - - - (8,443,763) (6,804,790) (5,381,310) (1,190,252) - (6,074,450) - Bond premium - - - - 390,694 260,435 79,046 - 789,428 403,354 Bond discount - - - (94,828) - - - - - - Transfers in 2,920,599 12,313,757 4,461,419 3,371,742 5,696,323 8,134,018 6,278,531 4,366,649 5,897,789 7,468,038 Transfers out (2,818,181) (13,550,897) (4,596,116) (3,417,248) (5,016,456) (7,668,389) (5,839,245) (4,209,345) (6,421,904) (9,083,041) Total other financing sources 102,418 (1,237,140) (134,697) (474,097) 4,370,093 5,084,754 1,934,683 157,304 5,590,863 19,548,351 Net change in fund balances 2,888,328$ (1,399,939)$ (913,166)$ (3,853,808)$ 2,395,466$ 2,621,766$ (1,870,685)$ 1,024,534$ 1,914,700$ 11,863,162$ Debt service as a percentageof noncapital expenditures 12.3% 11.4% 11.4% 11.9% 11.6% 18.5% 10.1% 12.1% 9.9% 9.2%Source: Comprehensive Annual Financial Reports
CITY OF EULESS, TEXAS ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY – LAST TEN FISCAL YEARS (Unaudited) Table 5 113 Total Less: DirectFiscal Real Personal Total Tax-Exempt Total Taxable TaxYear Property Property Value Property Value Rate2007 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(1)2,473,997,250 390,731,885 2,864,729,135 341,730,427 2,522,998,708 0.4700002012 2,610,172,289 389,778,962 2,999,951,251 348,227,246 2,651,724,005 0.4700002013 2,661,959,213 445,909,463 3,107,868,676 351,726,906 2,756,141,770 0.4700002014 2,759,268,619 461,065,240 3,220,333,859 356,283,956 2,864,049,903 0.4700002015(2)2,920,206,326 509,189,960 3,429,396,286 369,393,032 3,060,003,254 0.4675002016 3,352,029,682 513,118,652 3,865,148,334 410,557,810 3,454,590,524 0.467500Source: Tarrant Appraisal District(1) Amounts prior to 2011 are shown at market value and amounts from 2011 forward are shown at appraised value.(2) Amount restated to fiscal year end values.Estimated Value
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES (per $100 of Assessed Value) – LAST TEN FISCAL YEARS (Unaudited) Table 6 114 Fiscal YearOperating / General RateGeneral Obligation Debt Service Total Direct RateHurst-Euless-Bedford ISDGrapevine-Colleyville ISD Tarrant CountyTarrant County Hospital DistrictTarrant County Community College2007 0.343227 0.146273 0.489500 1.5975 1.5743 0.2715 0.2354 0.13942008 0.340341 0.129659 0.470000 1.3037 1.2900 0.2665 0.2304 0.13942009 0.351937 0.118063 0.470000 1.2950 1.2900 0.2640 0.2279 0.13802010 0.360791 0.109209 0.470000 1.2955 1.2900 0.2640 0.2280 0.13772011 0.343905 0.126095 0.470000 1.2882 1.2900 0.2640 0.2279 0.13762012 0.345388 0.124612 0.470000 1.4140 1.3100 0.2640 0.2280 0.14902013 0.355130 0.114870 0.470000 1.4075 1.3201 0.2640 0.2279 0.14902014 0.360619 0.109381 0.470000 1.3875 1.3201 0.2640 0.2279 0.14952015 0.364505 0.102995 0.467500 1.3750 1.3201 0.2640 0.2279 0.14952016 0.366571 0.100929 0.467500 1.3500 1.3201 0.2640 0.2279 0.1495Sources: City of Euless Budget Office, Tarrant Appraisal DistrictOverlapping RatesCity Direct Rates
CITY OF EULESS, TEXAS PRINCIPAL PROPERTY TAX PAYERS Current Year and Nine Years Ago (Unaudited) Table 7 115 Percentage Percentageof Total City of Total CityTaxable Taxable Taxable TaxableAssessed Assessed Assessed AssessedTaxpayerValue Value (1) TaxpayerValue Value (2)Ean Holdings, LLC 80,436,972$ 2.33 % Avis Rent a Car System, LLC 72,277,544$ 2.96 %CH Realty VI/MF Colleyville 2801 LP 70,000,000 2.03 Hertz Corp 62,247,645 2.55Westdale Hills 2013 LP 56,777,649 1.64 Vanguard Car Rental USA, Inc. 61,184,876 2.51UDR The Mandolin, LLC 55,219,730 1.60 IRA Stoneleigh FEECO LLC 39,469,294 1.62LSREF3 Bravo (Dallas) LLC 52,560,000 1.52 Colonial Realty LP 37,400,000 1.53Stoneleigh at Bear Creek Apts. 49,747,562 1.44 TXU Electric Delivery Co. 37,026,203 1.52AT&T Mobility, LLC 45,106,267 1.31 AT&T Mobility 34,397,589 1.41AP WP Vineyard Reit, LLC 45,070,127 1.30 Somerset Village Partners LP 30,299,136 1.24AP WP Seramont Reit, LLC 44,435,528 1.29 Seramont II LP 29,611,000 1.21CMF 15 Portfolio LLC 42,295,050 1.22 Western Rim Investors 1994-3 25,302,710 1.04Total 541,648,885$ 15.68 % Total 429,215,997$ 17.59 %Source: Tarrant County Tax OfficeNote: (1) Total Taxable Value including real and personal property for tax year 2015 (fiscal year 2016) is $3,454,590,524.(2) Total Taxable Value including real and personal property for tax year 2006 (fiscal year 2007) is $2,440,482,117.Fiscal Year 2016 Fiscal Year 2007
CITY OF EULESS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS – LAST TEN FISCAL YEARS (Unaudited) Table 8 116 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 Levy2007 11,908,489 (9,276) 11,899,213 11,801,183 99.18% 86,188 11,887,371 99.90% 11,842 0.10%2008 12,083,956 (39,312) 12,044,644 11,986,396 99.52% 45,768 12,032,164 99.90% 12,480 0.10%2009 12,747,343 (125,503) 12,621,840 12,556,281 99.48% 22,101 12,578,382 99.66% 43,458 0.34%2010 12,318,061 (12,857) 12,305,204 12,182,266 99.00% 109,219 12,291,485 99.89% 13,719 0.11%2011 11,796,659 (39,682) 11,756,977 11,637,719 98.99% 105,046 11,742,765 99.88% 14,212 0.12%2012 12,436,816 (88,827) 12,347,989 12,252,510 99.23% 77,165 12,329,675 99.85% 18,314 0.15%2013 12,926,215 (220,842) 12,705,373 12,648,635 99.55% 36,280 12,684,915 99.84% 20,458 0.16%2014 13,426,248 (68,231) 13,358,017 13,303,694 99.59% 30,402 13,334,096 99.82% 23,921 0.18%2015 14,245,865 (187,522) 14,058,343 14,049,020 99.93% (30,432) 14,018,588 99.72% 39,755 0.28%2016 13,671,980 870,514 14,542,494 14,481,033 99.58% - 14,481,033 99.58% 61,461 0.42%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 9 117 Premiums/ Premiums/Taxable Discounts General DiscountsGeneral Certificates Certificates Sales Tax on Debt Issues W&S Drainage Obligation on Debt Issues Total PercentageFiscal Obligation of of Tax Revenue Capital and Losses on Revenue Revenue Refunding and Losses on Primary of Personal PerYear Bonds Obligation Obligation Notes Bonds Leases Refundings (1)Bonds Bonds Bonds Refundings (1)Government Income (2)Capita (2)2007 27,350,000 6,475,000 9,080,000 - 6,540,000 - (656,941) 4,585,000 600,000 10,560,000 (1,068,353) 63,464,706 4.28% 1,200$ 2008 25,985,000 5,735,000 8,840,000 - 5,875,000 - (603,663) 4,350,000 410,000 10,105,000 (1,007,626) 59,688,711 4.04% 1,118$ 2009 24,350,000 5,330,000 8,580,000 - 5,185,000 - (550,383) 4,105,000 210,000 9,640,000 (946,900) 55,902,717 3.68% 1,034$ 2010 30,765,000 4,910,000 - - 4,470,000 438,227 (735,696) 3,850,000 - 9,160,000 (886,175) 51,971,356 3.29% 959$ 2011 29,235,000 6,590,000 - - 3,715,000 356,897 (373,493) 3,580,000 - 8,675,000 (825,449) 50,952,955 3.60% 994$ 2012 29,915,000 3,230,000 - - 2,910,000 272,526 (495,831) 3,435,000 - 8,165,000 (930,576) 46,501,119 3.37% 903$ 2013 27,095,000 2,910,000 - - 2,050,000 1,631,602 (396,737) 4,690,000 - 7,495,000 (610,729) 44,864,136 3.30% 867$ 2014 24,070,000 2,780,000 - - 1,175,000 94,196 (352,156) 4,285,000 - 6,915,000 (564,683) 38,402,357 2.53% 731$ 2015 20,655,000 8,365,000 - - 285,000 - 200,512 10,940,000 - 6,320,000 (518,643) 46,246,869 2.89% 856$ 2016 17,425,000 27,710,000 - 1,280,000 120,000 - 579,273 10,305,000 - 5,695,000 (472,596) 62,641,677 3.84% 1,155$ Note: Details regarding the City's outstanding debt can be found in the notes to the Financial Statements.(1)Column added to table in 2016; prior year figures have been restated to include amounts reflected.(2)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 10 118 Premiums/DiscountsGeneral Certificates on Debt Issues Less: Debt Net O/S Net Debt Net GeneralFiscal Obligation of Tax and Losses on Capital Service Debt Estimated Taxable to Taxable Debt PerYear Bonds Obligation Notes Refundings (1)Leases Reserves Total Population (2)Value (3)Value Capita2007 37,910,000 6,475,000 - (591,387) - 955,555 42,838,058 52,900 2,440,482,117 1.76% 810$ 2008 36,090,000 5,735,000 - (1,447,435) - 1,029,164 39,348,401 53,400 2,582,911,400 1.52% 737$ 2009 33,990,000 5,330,000 - (1,346,693) - 1,049,445 36,923,862 54,073 2,660,000,740 1.39% 683$ 2010 39,925,000 4,910,000 - (1,484,544) 438,227 684,246 43,104,437 54,200 2,589,844,156 1.66% 795$ 2011 37,910,000 6,590,000 - (1,074,877) 356,897 880,619 42,901,401 51,277 2,522,998,708 1.70% 837$ 2012 38,080,000 3,230,000 - (1,126,577) 272,526 956,430 39,499,519 51,500 2,651,724,005 1.49% 767$ 2013 34,590,000 2,910,000 - (721,626) 1,631,602 807,054 37,602,922 51,750 2,756,141,770 1.36% 727$ 2014 30,985,000 2,780,000 - (660,173) 94,196 796,454 32,402,569 53,780 2,864,049,903 1.13% 603$ 2015(4)26,975,000 8,365,000 - (90,640) - 813,841 34,435,519 54,050 3,060,003,254 1.13% 637$ 2016 23,120,000 27,710,000 1,280,000 304,993 - 1,056,021 51,358,972 54,250 3,454,590,524 1.49% 947$ Note: Source:(1) Column added to table in 2016, prior years restated to include amounts shown.(2) Estimates by North Central Texas Council of Governments and Euless Planning and Development Department(3) Tarrant Appraisal District(4) Taxable value restated to fiscal year end amounts. General Bonded Debt OutstandingDetails regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Total does not include revenue bonds.
CITY OF EULESS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2016 – (Unaudited) Table 11 119 Estimated Estimated Share ofDebt Percentage OverlappingGovernmental Unit Outstanding Applicable DebtDebt repaid with property taxesGrapevine-Colleyville Independent School District470,887,687$ 8.78% 41,343,939$ Hurst-Euless-Bedford Independent School District 261,627,580 20.61% 53,921,444Tarrant County 344,185,000 2.22% 7,640,907Tarrant County Hospital District 22,335,000 2.22% 495,837Tarrant County College District - 2.22% - Subtotal, overlapping debt103,402,127Debt repaid with property taxesCity of Euless (direct debt)47,022,267 100.00% 47,022,267Total direct and overlapping debt repaid with property taxes150,424,394$ Notes:The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages wereestimated by determining the portion of another governmental unit's taxable value that is within the City's boundaries anddividing it by each unit's total taxable value.The current year calculation of direct debt includes all general governmental activities debt excluding sales taxrevenue bonds which are not repaid with property taxes. Amounts shown have been adjusted for losses on prior refundings, premiums, and discounts.Source: Debt outstanding data provided by Municipal Advisory Council of Texas and City records.
CITY OF EULESS, TEXAS SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS – LAST TEN FISCAL YEARS (Unaudited) Table 12 120 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2007 14,645,201 13,668,755 976,446 220,000 213,643 433,643 2.252008 16,369,368 14,722,644 1,646,724 235,000 191,228 426,228 3.862009 16,594,856 13,722,593 2,872,263 245,000 180,820 425,820 6.752010 17,475,984 14,799,879 2,676,105 255,000 171,452 426,452 6.282011 20,148,834 15,952,372 4,196,462 270,000 161,333 431,333 9.732012 18,714,408 15,824,724 2,889,684 90,000 105,785 195,785 14.762013 19,399,314 16,660,397 2,738,917 330,000 82,110 412,110 6.652014 19,729,539 18,269,093 1,460,446 405,000 122,229 527,229 2.772015 21,182,560 17,879,209 3,303,351 410,000 129,703 539,703 6.122016 24,311,965 18,625,302 5,686,663 635,000 181,747 816,747 6.96Notes: (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 13 121 Less InterestTotal Operating Net andFiscal Revenues Expenses Revenue Fiscal CoverageYear (1) (2) Available Principal Charges Total Ratio2007 790,647 420,586 370,061 185,000 34,303 219,303 1.692008 736,433 298,712 437,721 190,000 21,565 211,565 2.072009 714,250 286,741 427,509 200,000 14,417 214,417 1.992010 700,827 457,376 243,451 210,000 8,400 218,400 1.112011 699,709 519,622 180,087 - - - n/a2012 707,165 604,994 102,171 - - - n/a2013 711,154 567,215 143,939 - - - n/a2014 715,800 663,625 52,175 - - - n/a2015 717,763 581,364 136,399 - - - n/a2016 812,399 666,628 145,771 - - - 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 14 122 Per Personal Estimated Capita Income School UnemploymentFiscal Population Income (thousands Median Age Enrollment RateYear (1) (2) of dollars) (2) (3) (4)2007 52,900 28,029$ 1,482,734$ 34.1 20,318 3.8%2008 53,400 27,634$ 1,475,656$ 34.2 20,048 4.5%2009 54,073 28,110$ 1,519,992$ 34.4 20,504 7.3%2010 54,200 29,179$ 1,581,502$ 32.4 20,898 7.9%2011 51,277 27,590$ 1,414,732$ 34.4 21,071 7.3%2012 51,500 26,820$ 1,381,230$ 34.4 21,570 6.6%2013 51,750 26,299$ 1,360,973$ 34.6 21,814 5.4%2014 53,780 28,947$ 1,556,770$ 31.8 22,138 5.0%2015 54,050 29,651$ 1,602,637$ 34.7 22,762 3.6%2016 54,250 30,054$ 1,630,430$ 34.9 23,090 3.8%Notes: 1. Estimates by North Central Texas Council of Governments 2. Estimates by Claritas Site Reports; Research & Demographic Solutions; 2014-2016 from US Census Bureau3. Hurst-Euless-Bedford Independent School District4. Texas Workforce Commission; Bureau of Labor Statistics
CITY OF EULESS, TEXAS PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (Unaudited) Table 15 123 Percentage Percentageof Total City of Total CityEmployerEmployees Employment EmployerEmployees EmploymentHEB ISD 808 3.77% City of Euless 383 1.55%LSG Sky Chefs, Inc. 600 2.80% TJ Lambrecht Construction 275 1.11%Autogrill Group, Inc. 450 2.10% Super Target 225 0.91%City of Euless 433 2.02% Life Outreach International 180 0.73%Lazy Dog 215 1.00% Federal Heath Sign Company 135 0.55%Life Outreach International 186 0.87% Home Depot 132 0.53%Lowe's 150 0.70% Lowe's 127 0.51%Dave & Busters 150 0.70% First Odyssey Group 100 0.40%Legend Oaks Healthcare 134 0.63% Office Depot 100 0.40%Redi-Mix Concrete 132 0.62% Atlas Match 80 0.32%Total 3,258 15.21% 1,737 7.01%Source: City of Euless Planning and Development Department2016 2007
CITY OF EULESS, TEXAS FULL–TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 16 124 Function/Program2007 2008 2009 2010 2011 2012 2013 2014 2015 2016General Governmentand Administration 53.00 54.50 54.50 50.00 48.50 48.50 48.50 48.50 48.00 49.50 Public Safety 123.00 126.00 126.00 118.00 121.00 129.00 132.00 135.00 136.00 136.00 Fire Safety 70.00 73.00 73.00 71.00 71.00 72.00 72.00 72.00 72.00 72.00 Development Services 12.00 12.00 12.00 11.50 13.50 6.00 6.00 7.50 7.50 7.50 Culture and Recreational36.50 36.00 36.00 30.00 31.00 32.00 30.50 33.25 34.25 34.25 Water and Wastewater 50.00 50.00 50.00 46.00 42.00 42.50 42.00 42.00 42.00 42.50 Golf Course 15.25 15.25 17.25 13.00 13.00 13.00 12.00 10.75 11.75 11.75 Public Works 15.75 15.75 15.75 14.00 17.50 18.50 18.50 18.50 20.00 20.00 Service Center6.00 6.00 6.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Risk Management / Insurance 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Total 383.00 390.00 392.00 360.00 364.00 368.00 368.00 374.00 378.00 380.00 Source: City Budget Office
CITY OF EULESS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 17 125 Function/Program2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Public SafetyPoliceNumber of Certified Officers 82 85 85 85 85 85 87 92 92 92Number of Citations Issued 34,368 26,503 29,925 24,126 21,790 22,787 26,356 25,500 24,573 18,483FireNumber of Certified Firefighters 68 71 70 69 69 70 70 70 70 70Number of Alarms 3,675 4,197 3,827 4,097 4,196 4,204 4,296 4,505 4,686 4,770Number of EMS Calls 2,561 2,688 2,634 2,793 2,848 2,982 3,108 3,230 3,424 3,431Municipal CourtCases Filed 39,096 30,551 33,670 31,442 27,022 26,889 32,192 31,172 28,885 25,957DevelopmentNumber Residential Inspections - New 58 77 100 101 52 44 42 107 176 186Number Commercial Inspections - New 24 28 16 14 11 29 16 29 33 15Number Multifamily Inspections - New 0 0 0 0 0 0 0 1 1 0Public WorksStreet Overlay (Square Footage) 664,472 999,285 797,326 770,380 953,406 368,654 540,613 631,260 430,504 1,156,833Cultural and RecreationalParks and RecreationRecreation Center Memberships 3,990 3,944 3,703 2,443 4,337 3,654 5,137 6,261 6,742(1)6,975Water and WastewaterNumber of Water Consumers 24,484 24,608 24,677 24,760 24,924 24,428 25,039 25,319 26,014 25,812Water Produced (In Gallons x 1000) 414,934 348,548 730,291 579,154 477,914 299,107 416,843 380,864 741,225 540,921Water Purchased - TRA (In Gallons x 1000) 2,202,426 2,291,974 1,955,535 2,028,760 2,566,370 2,440,539 2,133,211 2,154,469 1,628,651 1,787,547Water Supplied (In Gallons x 1000) 2,617,360 2,640,522 2,685,826 2,607,914 3,044,284 2,739,646 2,550,054 2,535,333 2,369,876 2,328,468Annual Rainfall (In Inches) 53.51 27.10 36.32 38.65 22.26 36.57 24.41 23.98 44.45 53.16Golf CourseNumber of Paid Rounds Played 35,094 36,528 43,029 32,996 35,075 34,550 35,890 22,110(2)33,735 32,852Source: City DepartmentsComprehensive Annual Financial ReportCity Budget OfficeNotes:(1) Amount restated to include recreation, aquatic and senior memberships.(2) Golf course closed for 3½ months for renovations in 2014.
CITY OF EULESS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM – LAST TEN FISCAL YEARS (Unaudited) Table 18 126 Function/Program2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Public SafetyPolice Stations 1 1 1 1111 1 1 1Fire Stations 3 3 3 3333 3 3 3Public WorksStreets - Paved (1)211.0 217.6 217.6 217.6 332.1 332.4 333.36 340.62 342.80 344.77 Cultural and RecreationalSwimming Pools 3 3 3 3 3 3 4 3 3 3 Parks (2)16 16 16 16 16 16 16 16 16 16 Parks Land (Acres) (3)341 341 341 341 341 341 341 341 341 341 Other Facilities (Acres) (3)291 291 291 291 291 291 291 291 291 291 Community Buildings 5 5 5 5 6 6 6 6 6 6 Ampitheater 2 2 2 2 2 2 2 3 3 3 Conference Centre 1 1 1 1 1 1 1 1 1 1 Golf Course 1 1 1 1 1 1 1 1 1 1 Softball Facility (4)1 1 1 1 1 1 1 1 1 1 Athletic Fields 35 35 35 33 33 33 33 28 28 30 Library Holdings 98,613 101,672 103,122 106,121 110,149 111,230 111,312 105,500 98,596 101,160 Water and WastewaterWater Mains - Potable (5)222.10 226.80 226.80 228.20 228.50 227.99 231.06 232.28 234.84 235.50 Water Mains - Reclaimed (5)- - - - - - 1.73 3.22 3.70 3.82 Fire Hydrants 1,441 1,477 1,477 1,525 1,526 1,550 1,579 1,633 1,648 1,674 Wastewater Mains (5)168.0 186.3 186.3 186.5 186.7 187.6 187.6 191.3 192.4 193.2 Source: City Departments(1) Fiscal years to 2010 are reported in linear miles. 2011 to current are reported in lane miles.(2) Restated to exclude Softball Facility(3) Restated to reflect Golf Course and Softball Facility land separately(4) Added Softball Facility(5) Miles of lines. Fiscal year 2012 figures have been restated to exclude approximately two miles of TRA lines that had been accidentally included as City lines.