HomeMy WebLinkAboutCity of Euless Comprehensive Annual Financial Report FY2017 C • t f
Euless
Comprehensive Annual Financial Report
Fiscal Year Ending September 30, 2017
201 North Ector Drive Euless, Texas 76039
www.eulesstx.gov
1-
THE CITY OF
City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2017
Prepared by
City of Euless
Finance Department
201 North Ector Drive
Euless, TX 76039
THE CITY OF
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30,2017
CONTENTS
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 24-27
Statement of Revenues,Expenses, and Changes in Net Position 28-31
Statement of Cash Flows 32-35
Fiduciary Funds
Statement of Net Position 36
Statement of Changes in Fiduciary Net Position 37
Notes to Basic Financial Statements 38-80
Required Supplementary Information
Schedule of Changes in Net Pension Liability
and Related Ratios(Texas Municipal Retirement System) 82
Schedule of Pension Contributions(Texas Municipal Retirement System) 83
Schedule of Changes in the OPEB Liability and Related Ratios 84
Schedule of Contributions—OPEB Trust 85
Schedule of Funding Progress—OPEB Trust 86
Schedule of Investment Returns—OPEB Trust 86
Budgetary Comparison Schedules 87-89
Notes to Required Supplementary Information 90
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 94-97
Combining Statement of Revenues,Expenditures, and Changes
in Fund Balances 98-101
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30,2017
CONTENTS - 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 102
Half-Penny Sales Tax Special Revenue Fund 103
Police Drug Enforcement Special Revenue Fund 104
Crime Control and Prevention District Special Revenue Fund 105
Grant Special Revenue Fund 106
Police Seized Assets Special Revenue Fund 107
Juvenile Case Special Revenue Fund 108
TIRZ#3 Glade Parks Special Revenue Fund 109
Euless Midtown Public Improvement District Fund 110
Cable PEG Fees Special Revenue Fund 111
Non-Major Proprietary Funds
Combining Statement of Net Position 113-114
Combining Statement of Revenues, Expenses, and Changes in Net Position 115
Combining Statement of Cash Flows 116
Internal Service Funds
Combining Statement of Net Position 118
Combining Statement of Revenues,Expenses, and Changes in Net Position 119
Combining Statement of Cash Flows 120
Escrow Agency Funds
Combining Statement of Changes in Assets and Liabilities 121
STATISTICAL SECTION(Unaudited) Table Page(s)
Net Position by Component 1 125
Changes in Net Position 2 126-127
Fund Balances, Governmental Funds 3 128
Changes in Fund Balances,Governmental Funds 4 129
Estimated Actual Value of Taxable Property 5 130
Direct and Overlapping Property Tax Rates 6 131
Principal Property Tax Payers 7 132
Property Tax Levies and Collections 8 133
Ratio of Outstanding Debt by Type 9 134
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 10 135
Direct and Overlapping Governmental Activities Debt 11 136
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 137
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 138
Demographic Statistics 14 139
Principal Employers 15 140
Full-time Equivalent City Government Employees by Function/Program 16 141
Operating Indicators by Function/Program 17 142
Capital Asset Statistics by Function/Program 18 143
INTRODUCTORY SECTION
THE CITY OF
THE CITY OF
EULESS
February 27, 2018
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, 2017. 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, 2017, 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 September 30, 2017, 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.
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2101 A1_Ector Drive,Euless TX 76039-3595
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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"), one of the world's busiest airports. The City is approximately 16.9 square
miles and serves a population of approximately 54,870.
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 atop-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 franchise agreements, provide solid waste and
recycling collections and disposal services for the City.
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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 223
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 7.2 million, a Gross Metro Product of$504 billion, a labor force of
over 3.5 million, a 2.6%job growth rate, 22 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+ employees, and is anchored
by the inland port known as the Alliance Global Logistics Hub. This areaoffers 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).
Taxable value for all residential and commercial property in the City of Euless is estimated at
approximately $4.0 billion for tax year 2017, which is a 12.6% increase from the prior year, due
to increases in both residential and commercial real estate property values. Sales tax collections
increased during FY2016-17. 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 614 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 currently under
construction.
The Dallas Cowboys AT&T Stadium and Texas Rangers Globe Life Park in Arlington, within
minutes of Euless, continue to attract additional tourism to the City by hosting major concerts
and sporting events, including Super Bowl XLV in 2011, World Series in 2010 and 2011,NCAA
Regional Basketball Tournament in 2013, the NCAA Final Four Basketball Tournament in 2014,
the first College Playoff National Championship game in 2015, and the 2015, 2016 and 2017
Cotton Bowls.
During the fiscal year, the City continued the annual street overlay program, Americans with
Disability Act (ADA) improvements, and street light and sidewalk maintenance programs.
Additionally, the City completed wastewater line replacements for sections of Glenn Drive
and Oakwood Terrace Phase I, water line replacement at Ector Drive, Texas Star Sports
Complex Phase VI, Municipal Plaza Improvements Phase I, and Public Works Yard
Improvements.
Population with a median age of 34.9 years (U.S. Census Bureau American Fact Finder
2015) has increased from 54,013 to 54,870 in ten years. The City's median household income
is $54,974, which compares favorably to $53,207 for the State of Texas (U.S. Census Bureau
American Fact Finder 2015). The educational level is 90.3% high school graduate or higher
(U.S. Census Bureau American Fact Finder 2015).
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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 at 110 days of operations which equates to
approximately 30% 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 85.8-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, 2017, 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 infolmation about the rating agencies or the
significance of the ratings provided may be obtained from each agency's web site.
v
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 2017, 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. Fiscal Year 2018 will continue these programs as well as start a significant street
reconstruction project including portions of Fuller Wiser Road and Bear Creek Parkway.
Work on wastewater lines for Oakwood Terrace Addition Phase II is underway. Water well
replacement design work has also started for the Fuller and Far North wells. A water meter
replacement program is 100% complete and includes a customer portal for customers to track and
manage their accounts. The City will seek more low interest financing from the Texas Water
Development Board to complete the reclaimed water line project.
Glade Parks Trail Connection is near completion. Library remodel design is currently underway
and the actual construction will begin in the fall of 2018.
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
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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 service for these additional public improvements. This
construction is anticipated to be complete in 2018.
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 five (5) subdivisions within the RiverWalk!
mixed use project, including The Dominion at Bear Creek, which is a 174 lot single-family
subdivision located south of Midway Drive, between Fuller-Wiser Road and Bear Creek Parkway.
The Dominion Phase V includes an additional 67 lots. 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. Through FY2016-17, Lennar
constructed over 330 homes. The NRP Group began construction of an additional 200-unit urban
loft project.
The City also approved a 56 acre mixed-use development called Founders Pare, previously
known as Midtown, 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, 393 urban lofts, and over 67 thousand square feet of retail space. Both a TIRZ and a PID
have been created by the City to support debt for public improvements needed for the area
including roadways, water distribution system, sanitary sewer and storm sewer collections
systems, hardscaping, and amenities. These public improvements are nearing completion.
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, 2016. 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 30 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 26 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.
vii
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,
ifrf4 '
YIG"llet
Loretta Getchell Janina Jewell
City Manager Director of Finance
viii
CITY OF EULESS
FISCAL YEAR 2016-2017
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LINDA MARTIN, MAYOR
Tim Stinneford, Council Member - Place One
Jeremy Tompkins, Council Member - Place Two
Eddie Price, Council Member - Place Three, Mayor Pro Tem
Linda Eilenfeldt, Council Member - Place Four
Harry Zimmer, Council Member - Place Five
Perry Bynum, Council Member - Place Six
Loretta Getchell, City Manager
Bob Freeman, Deputy City Manager
Chris Barker, Assistant City Manager
ix
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Euless
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2016
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Executive Director/CEO
xi
THE CITY OF
EuLEss
xii
FINANCIAL SECTION
xiii
THE CITY OF
EuLEss
xiv
weaver
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Independent Auditor's Report
To the Honorable Mayor,
City Council and City Manager
City of Euless, Texas
Report on the Financial Statements
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, 2017, 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
The City's 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.
1
AN INDEPENDENT MEMBER OF WEAVER AND TIDWELL LLP 2821 WEST SEVENTH STREET,SUITE 700,FORT WORTH,TX 76107
BAKER TILLY INTERNATIONAL CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS P:817.332.7905 F:817.429.5936
To the Honorable Mayor,
City Council and City Manager
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,
2017, 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, and the required supplementary information, as listed in the
table of contents, 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 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.
2
To the Honorable Mayor,
City Council and City Manager
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 23,
2018, 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.
maAtft aiA4 1-rcuA.tu, W
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 23, 2018
3
THE CITY OF
EuLEss
4
CITY OF EULESS, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2017
(Unaudited)
Management of the City of Euless offers the readers of the City's financial statements this
narrative overview and analysis of the financial activities and financial position of the City for
the fiscal year ended September 30, 2017. 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 123-143 of this report)
as well as information in the annual budget and the capital improvement plan along with other
community information found on the City's website at www.eulesstx.gov. It should be noted
that the Independent Auditor's Report describes the auditors' association with the various
sections of this report and that all of the additional information from the website and other City
sources are unaudited.
Financial Highlights
• The assets of the City of Euless exceeded its liabilities at the close of the most recent fiscal
year by $217,585,971 (net position). This number must be viewed in the context that the vast
majority of the City's net position of$175,930,373 (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
$14,659,858 (7%). The remaining $26,995,740 (12%) 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$7,013,970 and business-
type activities realized an increase in total net position of $4,031,443 bringing the total
increase in net position for the City to $11,045,413.
• At the close of the current fiscal year, the City of Euless' governmental funds reported
combined ending fund balances of$38,425,466 which represents a decrease of$3,795,943.
Within this total, $2,285,719 is restricted for debt service; $4,985,922 is restricted by bond
covenant for capital projects; $104,340 and $242,557 are restricted for court technology and
juvenile case management, respectively; and another $2,091,529 is restricted for capital
projects by developer agreements. Amounts restricted for cable PEG fees and historical
preservation total $616,827 and $1,245, respectively. Nonspendable fund balance of$74,078
5
represents fund balance amounts for inventories and prepaid items. Fund balances of
$14,837,828 represent assigned fund balance in the general, special revenue, and capital
projects funds. The unassigned fund balance in the General Fund of$13,185,421 can be used
for any lawful purpose. The General Fund unassigned balance represents 35% of fiscal year
2017 total fund expenditures.
• The City's total capital assets (net of accumulated depreciation) increased by $13,804,222
which is attributed to completion of capital improvement projects and other asset additions
exceeding current year depreciation expense and asset retirements.
• The City's debt payable decreased by $4.82 million or 8% due primarily to scheduled
principal payments on existing debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless' basic
financial statements which are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3)notes to the financial statements. This report also
contains other required supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial Statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Euless' finances, in a manner
similar to a private-sector business.
The statement of net 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 — Midtown which are legally separate entities that are financially
accountable to the City. A blended presentation has been used to report the financial information
of these component units.
6
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-two individual governmental funds. Information is presented
separately in the governmental funds balance sheet and in the governmental funds statement of
revenues, expenditures, and changes in fund balances for the General, Debt Service, and Car
Rental Tax funds, all of which are considered to be major funds. Data from the other 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,
a portion of the activities in these funds is included within governmental activities in the
government-wide financial statements.
7
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 24-35 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 36 and 37 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 38-80 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 and Car Rental Tax funds are also located in this section of the report. Required
supplementary information can be found on page 81-90 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 91-121 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$217,585,971 as of September 30, 2017.
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
available for future spending and with the exception of business-type assets, do not generate
direct revenue for the City. They do, however, represent an obligation on the part of the City to
maintain these assets into the future.
8
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 (7%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
position of$26,995,740 (12%) 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
2017 2016 2017 2016 2017 2016
Current and other assets $ 60,955 $ 64,607 $ 27,185 $ 29,791 $ 88,140 $ 94,398
Capital assets 150,352 141,711 75,609 70,446 225,961 212,157
Total assets 211,307 206,318 102,794 100,237 314,101 306,555
Deferred outflows 9,678 11,784 2,284 2,715 11,962 14,499
Long-term liabilities 68,306 72,227 19,392 20,630 87,698 92,857
Other liabilities 15,255 15,411 4,156 4,813 19,411 20,224
Total liabilities 83,561 87,638 23,548 25,443 107,109 113,081
Deferred inflows 1,155 1,209 213 223 1,368 1,432
Net position:
Net investment in capital
assets 113,509 108,136 62,421 59,184 175,930 167,320
Restricted 10,293 17,509 4,367 6,979 14,660 24,488
Unrestricted 12,467 3,610 14,529 11,123 26,996 14,733
Total net position $ 136,269 $ 129,255 $ 81,317 $ 77,286 $ 217,586 $ 206,541
As of September 30, 2017 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 2016.
The City's unrestricted net position increased by $12,262,618 in fiscal year 2017 as compared to
the unrestricted net position for the prior year. Restricted net position realized a decrease of
$9,827,667 and the amount invested in capital assets, net of related debt increased by
$8,610,462. The increase in total net position of$11 million results primarily from current year
operating results flowing to the unrestricted category of net position. The decrease in restricted
net position resulted primarily from the payment of capital project expenses from restricted debt
funds during FY2017. The increase in the net investment in capital assets portion of net position
primarily results from asset additions outpacing current year depreciation expenses, asset
disposals, and the reduction of debt used to acquire those capital assets. The details of the results
of current year operations are found in the table shown on the following page.
9
Changes in Net Position
Governmental Business-type
Amounts shown in 000's Activities Activities Totals
2017 2016 2017 2016 2017 2016
REVENUES
Program revenues:
Charges for services $ 7,200 $ 7,029 $ 31,325 $ 30,732 $ 38,525 $ 37,761
Operating grants and
contributions 593 578 - - 593 578
Capital grants and
contributions 2,356 3,376 2,281 2,943 4,637 6,319
General revenues:
Property taxes 16,656 14,752 - - 16,656 14,752
Sales taxes 21,252 20,365 - - 21,252 20,365
Car rental taxes 14,402 14,842 - - 14,402 14,842
Mixed beverage taxes 128 101 - - 128 101
Occupancy taxes 799 697 - - 799 697
Gross receipts taxes 4,455 4,467 - - 4,455 4,467
Investment income 451 272 159 105 610 377
Rents and royalties 1,150 1,106 - - 1,150 1,106
Gain(loss)on asset
disposal 125 - 57 13 182 13
Miscellaneous 756 693 - - 756 693
Total revenues 70,323 68,278 33,822 33,793 104,145 102,071
EXPENSES
Culture and recreation 7,349 6,999 - - 7,349 6,999
Development services 999 918 - - 999 918
General government 20,816 20,722 - - 20,816 20,722
Highways and streets 4,143 3,708 - - 4,143 3,708
Public safety 28,265 26,674 - - 28,265 26,674
Interest and fiscal charges 1,503 1,807 - - 1,503 1,807
Water and wastewater - - 21,674 21,010 21,674 21,010
Drainage utility - - 1,397 1,414 1,397 1,414
Golf course - - 4,633 4,410 4,633 4,410
Recreational enterprises - - 2,321 2,211 2,321 2,211
Total expenses 63,075 60,828 30,025 29,045 93,100 89,873
Increase(decrease)in net
position before transfers 7,248 7,450 3,797 4,748 11,045 12,198
Transfers (234) (704) 234 704 - -
Increase in net position 7,014 6,746 4,031 5,452 11,045 12,198
Net position,beginning 129,255 122,509 77,286 71,834 206,541 194,343
Net position ending $ 136,269 $ 129,255 $ 81,317 $ 77,286 $ 217,586 $ 206,541
• Governmental activities. Governmental activities increased the City's net position by
$7,013,970 thereby accounting for most of the growth (64%) in total net position. Most
revenue categories, including property taxes, sales taxes, occupancy taxes, investment
income, charges for services, and operating 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
$7,247,539.
10
Total revenue for the governmental activities (excluding transfers) increased from the
previous year by $2,044,878. General revenue, which is primarily comprised of property
taxes, sales taxes, and car rental taxes, realized a net increase of $2,878,874. Property tax
revenue increased due to an overall increase in taxable values of 12.7% over the prior year
values. Sales tax collections increased as a result of new business openings and continued
improvement in the local economy. Occupancy taxes realized an increase from the
completion of a full year of operations of the new hotel at the airport. Total governmental
program revenues, which consist primarily of charges for services, grants, and contributions,
net to a decrease of$833,996. Development charges account for approximately $302,000 of
the increase in charges for services which results from strong local development activity in
both the commercial and residential markets. The Midtown PID assessment for the current
year accounts for the increase in highways and streets program revenues. Public safety
program revenues decreased approximately$232,000 primarily as a result of decreases in jail
revenues and municipal court fines and arrest fees combined with an increase in revenues
resulting from the recognition of unearned revenue. General and administrative charges for
services decreased by just over $129,000 due in large part to the decline in other municipal
court collections. The decrease of over $1 million in capital grants and contributions
primarily results from the decline in developer contributions of capital assets of more than
$1.7 million combined with the increases in CDBG revenues of $185,000 and $614,000 in
Glade Parks Trail Connector grant revenues.
Total expenses of governmental activities increased by $2,247,227 from FY2016 to FY2017.
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 addition of three new firefighters, a
public works field tech, and an athletic coordinator also added to salary and benefit costs.
Pension-related entries increased expenses primarily due to the amortization of deferred
outflows. The allocation of internal service fund activity increased expenses over the prior
year by $115,000. Furthermore, fluctuations in depreciation expense as a result of the
acquisition and disposal of capital assets affect the various expense categories. General and
administrative and streets and highways realized expense increases of $205,000 and
$459,000, respectively, due to depreciation charges. Other than salary and related benefit
expenses, public safety expenses grew as a result of increased costs for equipment
replacement and body camera grant matching requirements. 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
$4,031,443. The change in net position before transfers is $3,797,874. Charges for services
program revenues for the business-type activities increased from the previous year by
$593,774 due primarily to increased water and wastewater revenues and recreation enterprise
revenues. Capital grants and contributions decreased by $662,419 primarily due to a
reduction in developer contributions of infrastructure.
Some expense categories realized decreases for the year, but overall business-type expenses
increased 3.4%, a portion of which is attributable to the employee raise package and related
benefits. An increase in the suppliers' volume rates resulted in increases in water purchase
costs (in relation to purchased volume), reclaimed water expenses, and wastewater treatment
charges. Franchise fees and administrative costs also increased. Net position for business-
type activities represents 37% of total net position.
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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$38,425,466, which represents a decrease of$3,795,943 in comparison
with prior year. Approximately 34% or $13 million constitutes unassigned fund balance in the
general fund that is available for spending at the City's discretion. Another $74,078 in non-
spendable fund balance represents amounts invested in inventories and prepayments. Another
portion is restricted to indicate that it is not available for new spending because it has already
been committed 1) to pay debt service ($2,285,719); 2) to pay for specific capital improvements
per developer agreements ($2,091,529); 3) restricted by bond covenant for specific capital
projects ($4,985,922); and 4) for a variety of other restricted purposes ($964,969). Assigned
fund balance includes funds that management intends to use for a specific purpose as well as any
residual balances of governmental funds other than the general fund. Assigned fund balance
totals $14,837,828 and includes assigned fund balance in the general fund of $107,657 and
$14,730,171 which represents residual balances in other governmental funds. See discussion
under Fund Balance Classifications in Note 1 of the Notes to 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 $2,091,809 which was later revised to a drawdown of $2,366,809. Due to a
positive budget variance in overall revenues and expenditures, the General Fund ended the year
with an increase to fund balance of$1,205,998. This figure represents a positive revised budget
variance of$3,572,807 resulting primarily from increased revenues of approximately $465,000
and expenditure savings of$2.85 million, before transfers.
Several General Fund revenue categories realized increases over the prior year and surpassed
budget estimates as well. Sales tax receipts, 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, but did surpass prior year levels primarily as a result of increases in gas and water and
wastewater collections. Municipal court fines fell short of budgetary parameters and failed to
attain prior year levels.
Personnel and related benefit budgetary savings of approximately $1.5 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 $140,000
remained unspent at the end of the year. Part-time salary expenses realized a favorable budget
variance of$266,000, while overtime exceeded budget expectations by $36,000. In addition to
overall salary and benefit savings, general and administrative expenditures realized savings in
12
capital, supplies, training, and contingencies. Increased rebate incentive payments from the
improvement in sales tax revenues resulted in additional expenditures of approximately $82,000
combined, while the revenue sharing agreement with the cities of Dallas and Fort Worth realized
budgetary savings of approximately $187,000. Transportation costs realized savings of just
under $50,000 for the year and utility costs compared favorably to budget parameters by more
than $133,000. Budgetary overages in facilities repair and maintenance costs totaled
approximately $15,000 due primarily to overruns in cooling system maintenance, plumbing,
signs and markings, and janitorial supplies. Budgetary savings in roof repair, painting, and
contingencies offset the majority of these overages.
Aside from salaries and benefits, public safety expenditure savings were also noted in supplies of
$47,000; training and certifications of $10,000; and maintenance of $49,000. Jail food
expenditures realized a positive budget variance of more than $10,000 due to a reduction in
federal detainees. Savings in mowing services, travel and training, and supplies are primarily
responsible for the positive budget variance in culture and recreation. Salaries and related
benefits account for the majority of the budgetary savings in streets and highways as well as
development services. One-time expenditures were under budget as a result of cost savings and
timing of purchases (for which the funds will roll into the next fiscal year).
The Debt Service fund balance decreased $907,526 which is $306,571 better than the revised
budgeted drawdown of $1,214,097. The positive variance results primarily from investment
income surpassing budgetary projections. The Car Rental Tax fund balance was originally
anticipated to decrease $378,428, but rather ended the year with an increase of $209,804
resulting from an increase in net car rental taxes and savings in capital outlay.
The non-major governmental funds realized a combined decrease in fund balance of$4,304,219;
special revenues contributed $435,105 to this decrease, while the capital projects funds
contributed $3,869,114. Planned drawdowns of fund balance in the Half-Penny Sales Tax
("EDC") and Crime Control and Prevention District ("CCPD") funds resulted in the reduction of
special revenue fund balances by $729,579 and $45,972, respectively. Increased hotel/motel
occupancy taxes resulting from a full year of operations of the new hotel at the airport combined
with operating results of the Glade Parks TIRZ #3 and Cable PEG funds partially offset those
decreases in fund balances. The net decrease from CIP funds results primarily from spending
$6.5 million in previously-issued debt proceeds recorded in the TIRZ #4 Midtown CIP fund.
Conversely, the EDC and Car Rental CIP funds realized increases in fund balances of $2.4
million as a result of current year project funding. The remaining CIP funds added
approximately $257,000 to fund balances. The combined net effect of these changes in
governmental fund balances results in a decrease of$3.8 million.
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 spring months, rainfall was under a "normal" year by more than six inches.
However, during the summer months, rainfall exceeded the norm by nearly nine inches. The
effects of this substantial increase in rainfall during peak operating season resulted in revenue
shortfalls in many of the City's enterprise funds.
Unrestricted net position of the enterprise funds at the close of the fiscal year was: Water and
Wastewater fund $8,802,848; Drainage Utility fund $1,367,687; Golf Course fund $914,990; and
13
all other non-major recreation enterprise funds combined $967,776. The Water and Wastewater
fund realized an increase in operating income resulting primarily from increased water and
wastewater rates. Water consumption and wastewater treatment volume were 6% and 4% lower
than anticipated, respectively. Despite the shortfall in consumption, water purchases were on
target with budget parameters. However, budgetary savings of approximately $550,000 were
realized 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 in the last quarter of the fiscal year are likely responsible for the negative
variance in water consumption. Impact fee revenues and developer dedication of assets of$2.1
million contributed to the overall net income in the Water and Wastewater fund.
The decrease in net position of the Drainage Utility fund results primarily from depreciation on
drainage infrastructure and capital assets. Net position for the Golf Course fund increased
$57,601 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$907,426 in net position. The increase is attributable to transfers to the Texas Star
Sports Complex fund for Phase VI improvements that included additional parking and the
transition to synthetic turf infields. The combined net effect of these changes in enterprise fund
net position totals an increase of$4,000,915.
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, 2017, totaled $225,961,829 (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 $13,804,222 or about 6.5%.
Major capital asset activity that occurred during the current fiscal year included the following:
• Capital asset contributions were comprised of$295,000 in Community Development Block
Grant (CDBG) expenditures for ADA/TAS infrastructure improvements and developer asset
dedications totaling nearly $2.7 million in street infrastructure, land, water and wastewater
facilities, and drainage structures.
• Street improvement projects located throughout the City in the amount of approximately $1
million were finalized during the year. The remodel of the Development/Engineering
building was also completed in FY2017.
• Capital asset additions for governmental activities include, but are not limited to, an aerial
ladder firetruck, platform firetruck, upgrade of emergency operations center audio/visual
system, body-worn camera system and software, mini skid, brush chipper, phone system and
other scheduled annual vehicle and equipment replacements.
• Construction-in-progress related to general government activity of $15,721,866 primarily
consists of Midtown infrastructure ($14.1 million), the Harwood/Bear Creek signal project
($242,000), and the Glade Parks Trail ($1.1 million).
• Phase II of the reclaimed water line was completed at a total cost of $1.8 million and the
fixed base meter reading and water meter replacement project was also completed during the
14
year at a cost of$5.4 million. Both of these projects were funded primarily with low interest
loans and loan forgiveness from the Texas Water Development Board.
• Other notable project completions include the wastewater line replacements along Glenn
Drive, Cedar Hill/Hollywood, and Oakwood Terrace Phase I as well as the water line
replacement along Ector Drive. Both Phase V and Phase VI of the TSSC improvements were
finalized during the year at a cost of$2.5 million and $1.25 million, respectively. Remodel
of the maintenance building at the golf course was also finished during fiscal year 2017.
• Capital asset additions for the business-type activities include, but are not limited to, a truck
lift, icemakers for the maintenance building, and a new scoreboard for TSSC. Well motor
and related equipment were purchased for the Fuller well site.
• Construction-in-progress related to business-type operations of$71,854 consists of Phase III
of the Reclaimed Water System Extension.
Capital Assets (Net of Accumulated Depreciation)
Governmental Bus ines s-type
Amounts shown in 000s activities activities Total
2017 2016 2017 2016 2017 2016
Land $ 30,462 $ 29,694 $ 3,619 $ 3,619 $ 34,081 $ 33,313
Buildings 36,620 35,825 1,800 1,823 38,420 37,648
Other improvements 7,669 7,670 10,566 8,832 18,235 16,502
M&E 10,064 7,890 2,438 786 12,502 8,676
Infrastructure 49,815 50,333 57,115 50,116 106,930 100,449
Construction in
Progress 15,722 10,299 72 5,270 15,794 15,569
Total $ 150,352 $ 141,711 $ 75,610 $ 70,446 $ 225,962 $ 212,157
Additional information on the City's capital assets can be found in Note 3 on pages 55-57 of this
report.
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of
$56,578,961 net of unamortized losses on prior refundings. Of this amount, $47,112,524
comprises debt backed by the full faith and credit of the government, where $9,439,508 is the
amount of self-supported debt for Texas Star Golf Course and Stars Center. The remainder of
the City's debt, $9,466,437, represents bonds secured solely by specific revenue sources (i.e.
revenue bonds).
Outstanding Bonded Debt
Governmental Bus ines s-Type
Amounts shown in 000s activities activities Total
2017 2016 2017 2016 2017 2016
GO bonds $ 14,490 $ 17,425 $ 5,240 $ 5,695 $ 19,730 $ 23,120
COs 27,350 27,710 - - 27,350 27,710
GO/CO deferred loss (524) (631) (464) (510) (988) (1,141)
Tax notes 860 1,280 - - 860 1,280
Capital lease 161 - - - 161 -
Revenue bonds 75 120 9,540 10,305 9,615 10,425
Revenue deferred loss (19) (28) (130) (149) (149) (177)
Totals $ 42,393 $ 45,876 $ 14,186 $ 15,341 $ 56,579 $ 61,217
15
In fiscal year 2017, the City did not issue any new bonded debt, but entered into a capital lease.
The City's total debt decreased $4,819,455 or 8% during fiscal year 2017 which is attributed to
the addition of the capital lease less scheduled annual principal payments.
Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. rates the
City's general obligation debt and revenue debt at AA and the water and wastewater revenue
debt at AA+. Moody's Investor Service, Inc. rates the general obligation debt and the water and
wastewater revenue debt at Aa2 and the sales tax revenue debt at Al. Additional information on
the City's long-term debt can be found in Note 4 on pages 57-63.
Economic Factors and Next Year's Budgets and Rates
In the FY2017-18 budget, General Fund revenues and transfers are budgeted to increase by 4%
from the 2016-17 original budget. Property taxes account for 33% of budgeted revenues and
sales taxes comprise approximately 33% of budgeted revenues. Certified assessed valuations as
of July 25, 2017 increased 12.6% from the preceding year.
As of September 30, 2017, the City's unemployment rate is 3.2% compared to the State of
Texas, which is 4%. In the FY2017-18 budget, sales tax receipts are projected to increase 1%
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 4%
from the FY2016-17 original budget. This increase is primarily attributed to the employee raise
package and related costs, and the addition of three new positions. Increased transfers for
equipment replacement 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, equipment for
the Euless Family Life Center, AV system replacement at the conference center, a street
condition assessment, and various facility maintenance items. In addition, the FY2017-18
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 improvements. The property tax rate
remained at .46250 per$100 of assessed valuation for FY2017-18.
For the Water and Wastewater Fund, the FY2017-18 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 $3.58 to $6.21 per thousand gallons.
Monthly water base rates are increasing by 9.3% for both residential and commercial customers.
A wastewater volume charge of$3.98 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 increased the annual funding for pay-as-you-
go capital expenses in the Water and Wastewater Fund to $1,075,000. Funding for Fuller/Far
North well design, SH183 Phase II water and wastewater line relocations, and miscellaneous
valve replacements is included in next year's budget. CDBG funding for Phase II of the
Oakwood Terrace wastewater line replacement is also included. One-time capital in the amount
of $225,000 is approved for miscellaneous wastewater rehab, miscellaneous water rehab, and
well repair projects.
16
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
$4,540,896 and proposed operating expenses of$4,518,975 comprise the FY2017-18 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
ewell(a,eulesstx.gov.
17
CITY OF EULESS, TEXAS
GOVERNMENT-WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Deposits and investments $ 46,707,758 $ 16,162,603 $ 62,870,361
Receivables,net of allowances 8,863,588 3,603,790 12,467,378
Internal balances (2,475,496) 2,475,496 -
Inventories, at cost 10,467 284,781 295,248
Prepaid items 68,983 37,877 106,860
Restricted assets
Deposits and investments 6,649,023 4,366,801 11,015,824
Net OPEB asset 1,130,559 253,369 1,383,928
Capital assets
Land and construction in progress 46,184,077 3,690,399 49,874,476
Other capital assets,net of
accumulated depreciation 104,168,184 71,919,169 176,087,353
Total assets 211,307,143 102,794,285 314,101,428
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 9,134,887 1,690,158 10,825,045
Deferred charges onrefunding 542,864 593,720 1,136,584
Total deferred outflows ofresources 9,677,751 2,283,878 11,961,629
LIABILITIES
Accounts payable 12,542,016 1,789,828 14,331,844
Accrued liabilities 2,330,679 277,623 2,608,302
Accrued interest payable 185,736 51,348 237,084
Unearned revenue 196,006 93,423 289,429
Money held in escrow - 1,944,148 1,944,148
Noncurrent liabilities
Due within one year 4,772,434 1,297,227 6,069,661
Due in more than one year 63,533,811 18,094,239 81,628,050
Total liabilities 83,560,682 23,547,836 107,108,518
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension 1,155,123 213,445 1,368,568
Total deferred inflows ofresources 1,155,123 213,445 1,368,568
NET POSITION
Net investment in capital assets 113,509,089 62,421,284 175,930,373
Restricted for
Debt service 2,250,637 733,264 2,983,901
Capital projects 4,985,922 1,166,442 6,152,364
Impact fees - 2,467,095 2,467,095
Developer agreements 2,091,529 - 2,091,529
Court technology 104,340 - 104,340
Juvenile cases 242,557 - 242,557
Cable PEG fees 616,827 - 616,827
Historical preservation 1,245 - 1,245
Unrestricted 12,466,943 14,528,797 26,995,740
Total net position $ 136,269,089 $ 81,316,882 $ 217,585,971
The Notes to the Basic Financial Statements
are an integral part of these statements.
18
CITY OF EULESS, TEXAS
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2017
Program Net(Expense)Revenue and
Revenues Changes in Net Position
Primary Government
Operating Capital Business-
Charges Grants and Grants and Governmental Type
Program Activities Expenses for Services Contributions Contributions Activities Activities Total
Primary government
Governmental activities
Culture and recreation $ 7,349,035 $ 264,307 $ 417 $ 618,511 $ (6,465,800) $ - $ (6,465,800)
Development services 999,153 2,019,496 - - 1,020,343 - 1,020,343
General and administrative 20,816,148 1,156,745 15,452 - (19,643,951) - (19,643,951)
Highways and streets 4,143,412 607,588 - 1,738,045 (1,797,779) - (1,797,779)
Public safety 28,265,072 3,151,407 577,001 - (24,536,664) - (24,536,664)
Interest and fiscal agent charges 1,502,912 - - - (1,502,912) - (1,502,912)
Total governmental activities 63,075,732 7,199,543 592,870 2,356,556 (52,926,763) - (52,926,763)
Business-type activities
Water and wastewater 21,673,844 24,178,812 - 2,094,565 - 4,599,533 4,599,533
Drainage utility 1,396,736 730,202 - 177,654 - (488,880) (488,880)
Golf course 4,632,475 4,247,345 - - - (385,130) (385,130)
Other recreation enterprises 2,321,414 2,168,944 - 8,550 - (143,920) (143,920)
Total business-type activities 30,024,469 31,325,303 - 2,280,769 - 3,581,603 3,581,603
Total primary government $93,100,201 $38,524,846 $ 592,870 $ 4,637,325 (52,926,763) 3,581,603 (49,345,160)
General Revenues
Taxes
Property taxes,levied for general purposes 16,656,028 - 16,656,028
Sales taxes 21,252,491 - 21,252,491
Car rental taxes 14,401,763 - 14,401,763
Mixed beverage taxes 128,250 - 128,250
Hotel/motel occupancy taxes 798,905 - 798,905
Gross receipts taxes 4,455,137 - 4,455,137
Investment income 451,406 158,805 610,211
Rents and royalties 1,149,534 - 1,149,534
Gain on sale of capital assets 124,792 57,466 182,258
Miscellaneous 755,996 - 755,996
Transfers (233,569) 233,569 -
Total general revenues and transfers 59,940,733 449,840 60,390,573
Change in net position 7,013,970 4,031,443 11,045,413
NET POSITION,beginning of year 129,255,119 77,285,439 206,540,558
NET POSITION,end of year $136,269,089 $81,316,882 $217,585,971
The Notes to the Basic Financial Statements
are an integral part of these statements.
19
CITY OF EULESS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
Debt Car Non-major Total
General Service Rental Tax Governmental Governmental
Fund Fund Fund Funds Funds
ASSETS
Deposits and investments $ 13,468,226 $1,395,548 $ 9,064,498 $ 14,481,664 $ 38,409,936
Receivables
Property taxes 384,559 153,629 - 30,356 568,544
Accounts receivable 919,265 - - 422,329 1,341,594
Accrued interest receivable 34,855 2,980 6,322 13,308 57,465
Due from other governments 2,264,545 - 2,662,214 1,360,601 6,287,360
Prepaids and deposits 41,583 - - 22,028 63,611
Inventories,at cost 10,467 - - - 10,467
Restricted deposits and investments - - - 6,601,723 6,601,723
Total assets $ 17,123,500 $1,552,157 $ 11,733,034 $ 22,932,009 $ 53,340,700
LIABILITIES
Liabilities
Accounts payable $ 1,426,932 $ - $ 8,745,342 $ 2,068,238 $ 12,240,512
Accrued liabilities 1,219,184 3,008 - 213,588 1,435,780
Unearned revenue 140,165 - - 55,841 196,006
Total liabilities 2,786,281 3,008 8,745,342 2,337,667 13,872,298
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes 384,559 150,654 - - 535,213
Unavailable revenue- other 503,192 - - 4,531 507,723
Total deferred inflows of resources 887,751 150,654 - 4,531 1,042,936
FUND BALANCES
Fund Balances
Nonspendable
Prepaids,deposits,and inventories 52,050 - - 22,028 74,078
Restricted for
Debt service - 1,398,495 - 887,224 2,285,719
Capital projects - - - 4,985,922 4,985,922
Developer agreements - - - 2,091,529 2,091,529
Court technology 104,340 - - - 104,340
Juvenile case management - - - 242,557 242,557
Cable PEG fees - - - 616,827 616,827
Historical preservation - - - 1,245 1,245
Assigned 107,657 - 2,987,692 11,742,479 14,837,828
Unassigned 13,185,421 - - - 13,185,421
Total fund balances 13,449,468 1,398,495 2,987,692 20,589,811 38,425,466
Total liabilities,deferred inflows ofresources,
and fund balances $ 17,123,500 $1,552,157 $ 11,733,034 $ 22,932,009 $ 53,340,700
The Notes to the Basic Financial Statements
are an integral part of these statements.
20
CITY OF EULESS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
Total fund balances - governmental funds $ 38,425,466
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets of governmental funds are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 144,719,196
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. (185,736)
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. 10,915,007
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,042,936
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. 1,130,559
Funds comprising the net pension liability ($22,304,176), deferred inflows
($1,155,123) and deferred outflows $9,134,887 of resources related to the
pension are not current financial resources and therefore are not reported in the
governmental funds balance sheet. (14,324,412)
Long-term liabilities, including bonds payable, deferred charges on refundings, and
compensated absences (excluding those of internal service funds) are not due and
payable in the current period and therefore are not reported in the field financial
statements. (45,453,927)
Net position of governmental activities $ 136,269,089
The Notes to the Basic Financial Statements
are an integral part of these statements.
21
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCES -GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Debt Car Non-major Total
General Service Rental Tax Governmental Governmental
Fund Fund _ Fund Funds _ Funds
Revenues
General property tax $ 12,390,631 $3,515,464 $ - $ 768,578 $ 16,674,673
Gross receipts tax 4,330,670 - - 923,372 5,254,042
Mixed beverage tax 128,250 - - - 128,250
General sales tax 13,093,980 - - 8,158,511 21,252,491
Car rental tax - - 14,401,763 - 14,401,763
Fines and fees 3,961,369 - - - 3,961,369
Licenses and permits 1,997,082 - - - 1,997,082
Investment income 140,239 83,598 57,029 104,903 385,769
DEA revenues - - - 9,994 9,994
Intergovernmental 402,549 - - 1,087,593 1,490,142
Rents and royalties - 548,802 - 79,684 628,486
Other revenues 991,233 - - 813,828 1,805,061
Total revenues 37,436,003 4,147,864 14,458,792 11,946,463 67,989,122
Expenditures
Current
Culture and recreation 3,093,614 - - 3,230,822 6,324,436
Development services 726,357 - - 204,762 931,119
General and administrative 8,675,828 - 9,732,789 576,872 18,985,489
Highways and streets 1,586,557 - - 30,157 1,616,714
Public safety 23,097,254 - - 2,971,739 26,068,993
Debt service
Principal - 3,803,825 - 45,000 3,848,825
Interest and fiscal charges - 1,514,920 - 2,016 1,516,936
Capital outlay 912,727 - - 9,687,904 10,600,631
Total expenditures 38,092,337 5,318,745 9,732,789 16,749,272 69,893,143
Excess(deficiency)of
revenues over(under)expenditures (656,334) (1,170,881) 4,726,003 (4,802,809) (1,904,021)
Other financing sources (uses)
Proceeds from sale of assets 27,293 - - 164,020 191,313
Issuance of capital lease 249,370 - - - 249,370
Transfers in 2,771,596 1,513,355 - 4,560,110 8,845,061
Transfers out (1,185,927) (1,250,000) (4,516,199) (4,225,540) (11,177,666)
Total other financing sources(uses) 1,862,332 263,355 (4,516,199) 498,590 (1,891,922)
Net change in find balances 1,205,998 (907,526) 209,804 (4,304,219) (3,795,943)
Fund balances,beginning of year 12,243,470 2,306,021 2,777,888 24,894,030 42,221,409
Fund balances,end of year $ 13,449,468 $1,398,495 $2,987,692 $ 20,589,811 $ 38,425,466
The Notes to the Basic Financial Statements
are an integral part of these statements.
22
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, 2017
Net change in fund balances-total governmental funds $ (3,795,943)
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over the estimated useful lives and reported
as depreciation expense. This is the amount of capital expenditures recorded in the
current period. 10,600,631
Governmental funds report cash proceeds from the disposal of capital assets as revenues,
while only the net gain/loss on the transaction is reported in the statement of activities and
capital contributions are not reported in governmental funds. This is the amount of capital
contributions and disposals recorded in the current period. 1,222,729
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. (5,386,738)
The issuance of long-term debt provides current financial resources to governmental
funds,but has no effect on net position. (249,370)
The repayment of the principal of long-term debt consumes current financial resources of
governmental funds,but has no effect on net position. 3,848,825
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. 22,498
Current year changes in the long-term liabilities for compensated absences and other post
employment assets (obligations) do not require the use of current financial resources;
therefore,they are not reported as expenditures in governmental funds. 489,038
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. 14,023
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. (1,750,440)
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual funds. The net revenue of the
internal service funds is reported with governmental activities net of the amount allocated
to business-type activities. 1,938,331
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. 60,386
Change in net position of governmental activities $ 7,013,970
The Notes to the Basic Financial Statements
are an integral part of these statements.
23
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION—PROPRIETARY FUNDS
SEPTEMBER 30, 2017
Business -Type Activities -
Enterpris a Funds
Water and Drainage
ASSETS Wastewater Utility
Current assets
Deposits and investments $ 12,245,300 $1,511,597
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$27,791 for water and wastewater and
$522 for drainage utility 3,274,979 84,430
Accrued interest receivable 22,724 -
Prepaids and deposits 11,194 -
Inventory 118,914 -
Total unrestricted current assets 15,673,111 1,596,027
Restricted deposits and investments
Restricted for equipment purchases - -
W&WW itupact fees 2,467,095
Capital projects 1,166,442 -
Revenue bond reserve for debt service 733,264 -
Total restricted assets 4,366,801 -
Total current assets 20,039,912 1,596,027
Non-current assets
Net OPEB asset 182,014 19,069
Property, plant, and equipment in service, at cost
Land 1,576,667 559,826
Building 97,094 -
Equipment 1,585,512 10,380
Improvements 1,055,901 993,875
Construction in progress 71,854 -
Utility system 83,255,729 27,784,690
Total property,plant, and equipment in service 87,642,757 29,348,771
Less accumulated depreciation 41,837,398 14,189,100
Net property,plant, and equipment in service 45,805,359 15,159,671
Total non-current assets 45,987,373 15,178,740
Total assets 66,027,285 16,774,767
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 1,258,633 136,489
Deferred charges on refunding 129,901
Total deferred outflows of resources 1,388,534 136,489
The Notes to the Basic Financial Statements
are an integral part of these statements.
24
(1 of 2)
Business -Type Activities - Governmental
Enterprise Funds Activities -
Non-major Total Internal
Golf Enterprise Enterprise Service
Course Funds Funds Funds
$1,321,093 $1,084,613 $ 16,162,603 $ 8,297,822
196,823 24,834 3,581,066 599,906
22,724 8,719
7,536 19,147 37,877 5,374
106,190 59,677 284,781 -
1,631,642 1,188,271 20,089,051 8,911,821
- - - 47,300
- - 2,467,095 -
- - 1,166,442 -
- - 733,264 -
- - 4,366,801 47,300
1,631,642 1,188,271 24,455,852 8,959,121
43,598 8,688 253,369 -
897,520 584,532 3,618,545 -
3,621,666 488,275 4,207,035 -
737,641 1,711,820 4,045,353 13,496,505
8,614,304 10,384,415 21,048,495 -
71,854 -
- - 111,040,419 -
13,871,131 13,169,042 144,031,701 13,496,505
7,265,984 5,129,651 68,422,133 7,863,440
6,605,147 8,039,391 75,609,568 5,633,065
6,648,745 8,048,079 75,862,937 5,633,065
8,280,387 9,236,350 100,318,789 14,592,186
251,742 43,294 1,690,158 -
463,819 - 593,720 -
715,561 43,294 2,283,878 -
25
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION—PROPRIETARY FUNDS
SEPTEMBER 30, 2017
Business -Type Activities -
Enterpris a Funds
Water and Drainage
LIABILITIES Wastewater Utility
Current liabilities
Payable from current assets
Accounts payable $ 1,581,906 $ 2,070
Accrued salaries and wages 192,977 23,203
Current portion of bonds payable 780,000 -
Current portion of compensated absences 22,335 1,225
Accrued insurance claims - -
Unearned revenue - -
Accrued interest 35,082 -
Total current liabilities 2,612,300 26,498
Non-current liabilities
Customer and escrow deposits 1,832,302
Net pension liability 3,120,199 329,215
Bonds payable 8,739,422 -
Compensated absences 201,016 11,029
Total non-current liabilities 13,892,939 340,244
Total liabilities 16,505,239 366,742
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 158,651 17,156
Total deferred inflows of resources 158,651 17,156
NET POSITION
Net investment in capital assets 37,582,280 15,159,671
Restricted for
Impact fees 2,467,095 -
Capital projects 1,166,442 -
Debt service 733,264 -
Unrestricted 8,802,848 1,367,687
Total net position $ 50,751,929 $ 16,527,358
Reconciliation to government-wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Net position of business-type activities
The Notes to the Basic Financial Statements
are an integral part of these statements.
26
(2 of 2)
Business -Type Activities - Governmental
Enterprise Funds Activities -
Non-major Total Internal
Golf Enterprise Enterprise Service
Course Funds Funds Funds
$ 69,796 $ 136,056 $ 1,789,828 $ 301,504
38,989 22,454 277,623 12,336
470,000 - 1,250,000 -
5,250 802 29,612 -
- - - 887,843
93,423 - 93,423 -
16,266 - 51,348 -
693,724 159,312 3,491,834 1,201,683
111,846 - 1,944,148 -
597,012 100,470 4,146,896 -
4,959,024 - 13,698,446 -
47,246 7,221 266,512 -
5,715,128 107,691 20,056,002 -
6,408,852 267,003 23,547,836 1,201,683
32,164 5,474 213,445 -
32,164 5,474 213,445 -
1,639,942 8,039,391 62,421,284 5,680,365
- - 2,467,095 -
1,166,442 -
733,264 -
914,990 967,776 12,053,301 7,710,138
$ 2,554,932 $ 9,007,167 78,841,386 $ 13,390,503
2,475,496
$ 81,316,882
27
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION—
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Business -Type Activities -
Enterprise Funds
Water and Drainage
Wastewater Utility
Operating revenues
Water service $ 12,517,495 $ -
Reclaimed water service 511,593 -
Wastewater service 8,386,398 -
Drainage fees - 730,202
Recreation fees - -
Insurance premiums - -
Service fees and miscellaneous 2,763,326 -
Total operating revenues 24,178,812 730,202
Operating expenses
General and administrative 474,404 -
Water production 7,520,566 -
Water distribution 1,040,073 -
Utility engineering 383,641 -
Wastewater collection and treatment 3,881,277 -
Nondepartmental 4,251,995 -
Geographic information systems 570,335 -
Service center 1,127,408 -
Drainage - 629,112
Recreation classes - -
Golf course - -
Pro shop - -
Food and beverage - -
Conference center - -
Cart operations - -
Texas Star Sports Complex - -
Arbor Daze - -
Insurance costs - -
Depreciation 2,054,519 767,623
Amortization 19,843 -
Total operating expenses 21,324,061 1,396,735
Operating income (loss) 2,854,751 (666,533)
The Notes to the Basic Financial Statements
are an integral part of these statements.
28
Business -Type Activities - Governmental
Enterprise Funds Activities -
Non-major Total Internal
Golf Enterprise Enterprise Service
Course Funds Funds Funds
$ - $ - $ 12,517,495 $ -
- 511,593 -
- - 8,386,398 -
- 730,202 -
732,446 732,446 -
- - - 6,370,808
4,247,345 1,436,498 8,447,169 1,907,950
4,247,345 2,168,944 31,325,303 8,278,758
- 474,404 2,170,709
- - 7,520,566 -
- 1,040,073 -
- 383,641 -
- 3,881,277 -
- - 4,251,995 -
- - 570,335 -
- - 1,127,408 -
- - 629,112 -
- 700,185 700,185 -
1,724,152 - 1,724,152 -
405,797 - 405,797 -
1,179,394 - 1,179,394 -
529,175 - 529,175 -
214,946 - 214,946 -
- 1,248,559 1,248,559 -
- 66,274 66,274 -
- - - 5,566,864
391,669 295,350 3,509,161 1,166,531
27,480 - 47,323 -
4,472,613 2,310,368 29,503,777 8,904,104
(225,268) (141,424) 1,821,526 (625,346)
29
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION—
PROPRIETARY FUNDS—CONTINUED
YEAR ENDED SEPTEMBER 30, 2017
Business -Type Activities -
Enterprise Funds
Water and Drainage
Wastewater Utility
Nonoperating revenues (expenses)
Gain(loss) on sale of capital assets $ 53,161 $ -
Investment income 121,552 10,853
Interest expense (175,682) -
Total nonoperating revenues
(expenses), net (969) 10,853
Income (loss)before contributions
and transfers 2,853,782 (655,680)
Developer contributions 2,094,565 177,654
Transfers in - -
Transfers out (1,397,834) (36,599)
Net income 3,550,513 (514,625)
Net position, beginning 47,201,416 17,041,983
Net position, end of year $ 50,751,929 $ 16,527,358
Reconciliation to government-wide statement of net position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Change in net position of business-type activities
The Notes to the Basic Financial Statements
are an integral part of these statements.
30
Business -Type Activities - Governmental
Enterprise Funds Activities -
Non-major Total Internal
Golf Enterprise Enterprise Service
Course Funds Funds Funds
$ 4,155 $ 150 $ 57,466 $ 187,524
9,936 16,464 158,805 65,645
(133,538) - (309,220) -
(119,447) 16,614 (92,949) 253,169
(344,715) (124,810) 1,728,577 (372,177)
8,550 2,280,769 -
402,316 1,023,686 1,426,002 2,341,036
- - (1,434,433) -
57,601 907,426 4,000,915 1,968,859
2,497,331 8,099,741 11,421,644
$ 2,554,932 $ 9,007,167 $ 13,390,503
30,528
$ 4,031,443
31
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS —PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Business -Type Activities -
Enterpris a Funds
Water and Drainage
Wastewater Utility
OPERATING ACTIVITIES
Cash received from customers $ 24,146,721 $ 743,779
Cash payments to suppliers for goods and services (16,420,152) (304,445)
Cash payments to employees for services (3,254,253) (329,193)
Net cash provided by
operating activities 4,472,316 110,141
NONCAPITAL FINANCING ACTIVITIES
Transfer in - -
Transfer out (1,397,834) (36,599)
Net cash provided by(used in)
noncapital financing activities (1,397,834) (36,599)
CAPITAL AND RELATED FINANCING ACTIVITIES
Impact fees 939,587 -
Purchase of capital assets (3,664,607) (19,329)
Interest paid on bonds (177,600) -
Principal paid on bonds (765,000) -
Proceeds from sale of capital assets 53,161 -
Net cash used in capital
and related financing activities (3,614,459) (19,329)
INVESTING ACTIVITIES
Interest received on investments 114,881 13,838
Net cash provided by investing activities 114,881 13,838
Net change in cash and cash equivalents (425,096) 68,051
Cash and cash equivalents, beginning of year 17,037,197 1,443,546
Cash and cash equivalents, end of year $ 16,612,101 $ 1,511,597
The Notes to the Basic Financial Statements
are an integral part of these statements.
32
Business -Type Activities - Governmental
Enterprise Funds Activities -
Non-major Total Internal
Golf Enterprise Enterprise Service
Course Funds Funds Funds
$ 4,291,119 $ 2,165,315 $ 31,346,934 $ 8,079,965
(2,349,801) (1,533,453) (20,607,851) (7,096,706)
(1,675,693) (542,866) (5,802,005) (128,986)
265,625 88,996 4,937,078 854,273
402,316 1,023,686 1,426,002 2,341,036
- - (1,434,433) -
402,316 1,023,686 (8,431) 2,341,036
- - 939,587 -
(241,040) (3,406,178) (7,331,154) (3,390,077)
(134,675) - (312,275) -
(455,000) - (1,220,000) -
4,155 150 57,466 206,649
(826,560) (3,406,028) (7,866,376) (3,183,428)
13,525 18,552 160,796 60,350
13,525 18,552 160,796 60,350
(145,094) (2,274,794) (2,776,933) 72,231
1,466,187 3,359,407 23,306,337 8,272,891
$ 1,321,093 $ 1,084,613 $ 20,529,404 $ 8,345,122
33
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS—PROPRIETARY FUNDS—CONTINUED
YEAR ENDED SEPTEMBER 30, 2017
Business -Type Activities -
EnteEnterprise Funds
Water and Drainage
Wastewater Utility
Reconciliation of operating income (loss)
to net cash provided by
operating activities
Operating income (loss) $ 2,854,751 $ (666,533)
Adjustments to reconcile operating
income (loss)to net cash provided
by operating activities:
Depreciation and amortization 2,074,362 767,623
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue (93,346) 14,562
Prepaids and deposits (9,664) -
Inventory (2,657)
Net OPEB asset (73,725) (10,864)
Net pension liability (25,554) (2,643)
Deferred outflows 270,491 30,458
Deferred inflows (7,488) (985)
Accounts payable (618,653) (11,596)
Accrued salaries and wages 10,180 (565)
Accrued insurance claims - -
Compensated absences 32,364 (9,316)
Customer and escrow
deposits 61,255 -
Unearned revenue -Net cash provided by
operating activities $ 4,472,316 $ 110,141
Noncash fmancing activities
Developer contributed assets $ 1,154,978 $ 177,654
Reconciliation of cash to balance sheet:
Cash- current $ 12,245,300 $ 1,511,597
Cash- restricted 4,366,801 -
Cash and cash equivalents $ 16,612,101 $ 1,511,597
The Notes to the Basic Financial Statements
are an integral part of these statements.
34
Business -Type Activities - Governmental
Enterprise Funds Activities -
Non-major Total Internal
Golf Enterprise Enterprise Service
Course Funds Funds Funds
$ (225,268) $ (141,424) $ 1,821,526 $ (625,346)
419,149 295,350 3,556,484 1,166,531
4,415 (3,373) (77,742) (198,793)
45,696 (1,120) 34,912 464,275
(15,876) 24,175 5,642 -
(18,237) (2,328) (105,154) -
(5,288) (882) (34,367) -
55,776 9,425 366,150 -
(1,253) (255) (9,981) -
(45,784) (92,181) (768,214) 11,959
1,654 2,881 14,150 (353)
- - - 36,000
11,281 (1,272) 33,057 -
43,551 - 104,806 -
(4,191) - (4,191) -
$ 265,625 $ 88,996 $ 4,937,078 $ 854,273
$ - $ 8,550 $ 1,341,182 $ -
$ 1,321,093 $ 1,084,613 $ 16,162,603 $ 8,297,822
- - 4,366,801 47,300
$ 1,321,093 $ 1,084,613 $ 20,529,404 $ 8,345,122
35
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION—FIDUCIARY FUNDS
SEPTEMBER 30, 2017
Agency OPEB
Fund Trust Fund
ASSETS
Investments at fair value
Money market account $ 1,424,113 $ 206,881
Fixed income funds - 1,935,354
Equity funds - 3,217,373
Total assets $ 1,424,113 $ 5,359,608
LIABILITIES
Due to other entities $ 1,420,547 $ -
Refunds payable 3,566 -
Total liabilities $ 1,424,113 -
NET POSITION
Held in trust for OPEB $ 5,359,608
The Notes to the Basic Financial Statements
are an integral part of these statements.
36
CITY OF EULESS, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
OPEB TRUST FUND
YEAR ENDED SEPTEMBER 30, 2017
OPEB
Trust Fund
ADDITIONS
Employer contributions $ 1,832,839
Other contributions 348,933
Investment income
Interest and dividends 128,735
Net increase in fair value of investments 430,981
Less:investment expense (26,060)
Total investment income 533,656
Total additions 2,715,428
DEDUCTIONS
Insurance claims 1,515,629
Administrative expenses 153,608
Total deductions 1,669,237
Change in net position 1,046,191
Net position- beginning 4,313,417
Net position- ending $ 5,359,608
The Notes to the Basic Financial Statements
are an integral part of these statements.
37
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Euless (the 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.
38
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
39
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
40
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
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.
41
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
42
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
Property 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 $.4625
per $100 of assessed valuation ($.4675 per $100 last year) and assessed valuation is
approximately 100% of estimated value.
43
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —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.
44
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
45
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Fund Balance Classifications
Fund balances are classified as follows on the governmental fund financial statements:
Reported in
Nonmajor Total
Debt Service Car Rental Governmental Governmental
General Fund Fund Tax Fund Funds Funds
Nonspendable 52,050 $ - $ - $ 22,028 $ 74,078
Restricted for
Debt service - 1,398,495 - 887,224 2,285,719
Capital projects - - - 4,985,922 4,985,922
Developer agreements - - - 2,091,529 2,091,529
Court technology 104,340 - - - 104,340
Juvenile case processing - - - 242,557 242,557
Cable PEG fees - - - 616,827 616,827
Historical preservation - - - 1,245 1,245
Assigned
Capital projects - - - 6,303,050 6,303,050
Betterments 35,695 - - - 35,695
Emergency/radio systems 41,232 - - - 41,232
Tourism and
conference facilities - - - 602,779 602,779
Parks, library, and
economic development - - - 2,375,986 2,375,986
Police department - - - 2,080,688 2,080,688
Grants - - - 24,188 24,188
Other 30,730 - 2,987,692 355,788 3,374,210
Unassigned 13,185,421 - - - 13,185,421
Total $ 13,449,468 $1,398,495 $2,987,692 $20,589,811 $ 38,425,466
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.
46
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
47
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
48
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
Tax Abatements
The City provides tax abatement programs through economic development agreements designed
to promote local economic development and redevelopment; spur economic improvement;
stimulate business and commercial activity within the City; retain, create, and attract jobs; train
and retrain employees of local businesses; generate additional sales tax and enhance the property
tax base and economic condition of the City. Agreements generally contain recapture provisions
which may require repayment or termination if the recipients do not meet the required
provisions.
49
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Tax Abatements
As of September 30, 2017, the City has two categories of tax abatement programs for economic
development:
Tax Abatements —The City has designated tax reinvestment zones and negotiated tax abatement
agreements with applicants as authorized by the Texas Tax Code Chapter 312 and administered
through the City's Tax Abatement Policy to promote development and redevelopment within the
City. Such abatement agreements authorize the appraisal district to reduce the assessed value of
the taxpayer's property by a percentage specified in the agreement, and the taxpayer will pay
taxes on the lower assessed value during the term of the agreement. Recipients receiving tax
abatements generally commit to the creation of new value of eligible property improvements,
either for new or improved existing facilities, made subsequent to the agreement ranging from
35% to 75% for up to 10 years. Property taxes abated under this program were $1,076 in fiscal
year 2017, or less than 0.01% of the total property tax levy.
General Economic Development Agreements — The City has entered into various agreements
under Texas Local Government Code Chapter 380 to stimulate economic development. Such
agreements may provide rebates, grants, or loans for promotion of economic development
including attracting new business and encouraging expansion or retention of existing businesses.
Rebates may be a flat amount or percentage of property taxes or sales taxes received by the City.
For fiscal year 2017 the City rebated $1,438,671 in sales taxes, or 6.8% of the total sales tax
revenues. These rebates are reflected in non-departmental expenditures in the general fund and
in general and administrative expenditures in the EDC fund.
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, 2017. At year-end, the
carrying amount of the City's deposits was $1,989,362 with a bank balance of$2,808,081.
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 $2,639,750. 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.
50
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS —CONTINUED
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, 2017, the City did not own any types of securities other than those
permitted by statute.
Fair Value % of Rating
Investment Type Book Value Level 2 Portfolio WAM Rating Agency
Interest bearing bank deposits $ 1,166,442 2%
Investments measured at amortized cost:
Investment Pools:
TexPool 17,508,779 23% 37 AAAm S&P
TexSTAR 17,454,012 23% 27 AAAm S&P
Investments measured at fair value:
U.S. Government Agency Securities:
FNMA 5,008,452 5,018,528 7% 11 AA+/Aaa S&P/Moody's
FFCB 8,489,520 8,492,425 11% 14 AA+/Aaa S&P/Moody's
FHLB 13,033,768 13,027,894 17% 38 AA+/Aaa S&P/Moody's
FHLMC 10,278,157 10,290,124 14% 22 AA+/Aaa S&P/Moody's
FAMCA 2,016,236 2,017,523 3% 7 Not rated
Investments measured at cost:
Bank of Texas-CD 41,000 0% N/A Not rated
Total $74,996,366 $38,846,494 100%
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: FNMA—Federal National Mortgage Association, FFCB —Federal Farm Credit Bank, FHLB —Federal
Home Loan Bank, FHLMC — Federal Home Loan Mortgage Corporation, and FAMCA — Federal Agricultural Mortgage
Corporation. The rating agency acronyms are defined as follows: S&P—Standard and Poor's Ratings Services,a division of
the McGraw-Hill Companies, Inc. and Moody's — Moody's Investor Service, Inc. Additional information about the rating
agency or the significance of the ratings provided may be obtained from the agency's web site.
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.
51
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS —CONTINUED
Investments— Continued
Fair Value— Continued
• 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.
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 pool's liquidity.
52
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 pool's 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, 2017, 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.
53
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS—CONTINUED
Investments—Continued
The following table details the maturity schedule for the City's investments as of
September 30, 2017:
Maturity Schedule Book Value Fair Value %of Portfolio
Overnight $ 36,129,233 $ 36,129,233 48%
Less than 1 month 3,734,449 3,734,508 5%
1 to 6 months 18,755,829 18,763,874 25%
6 to 9 months 9,894,831 9,897,445 13%
9 to 12 months 4,486,663 4,495,691 6%
12 to 18 months 1,495,361 1,496,139 2%
18 to 24 months 500,000 499,875 1%
Total $ 74,996,366 $ 75,016,765 100%
Credit Risk
In compliance with the City's Investment Policy, as of September 30, 2017, 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, 2017, the
City's bank balances were insured or fully collateralized.
Credit Risk
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.
54
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2017, was as follows:
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land $ 29,693,697 $ 644,277 $ (68,750) $ 192,987 $ 30,462,211
Construction in progress 10,298,787 9,960,727 - (4,537,648) 15,721,866
Total capital assets
not being depreciated 39,992,484 10,605,004 (68,750) (4,344,661) 46,184,077
Capital assets being depreciated
Buildings 58,369,631 - (33,062) 2,543,930 60,880,499
Improvements other than buildings 11,655,606 - - 392,717 12,048,323
Infrastructure 87,839,920 701,744 - 1,184,903 89,726,567
Machinery and equipment 9,819,572 639,904 (490,036) 223,111 10,192,551
Total capital assets
being depreciated 167,684,729 1,341,648 (523,098) 4,344,661 172,847,940
Less accumulated depreciation
Buildings (22,544,343) (1,717,330) 909 - (24,260,764)
Improvements other than buildings (3,985,371) (393,562) - - (4,378,933)
Infrastructure (37,506,910) (2,404,432) - - (39,911,342)
Machinery and equipment (5,358,017) (871,414) 467,649 - (5,761,782)
Total accumulated depreciation (69,394,641) (5,386,738) 468,558 - (74,312,821)
Total capital assets being
depreciated,net 98,290,088 (4,045,090) (54,540) 4,344,661 98,535,119
Total governmental fund capital
assets,net 138,282,572 6,559,914 (123,290) - 144,719,196
Internal service funds
Capital assets being depreciated
Machinery and equipment 11,330,769 3,390,077 (1,224,341) - 13,496,505
Total internal service assets
being depreciated 11,330,769 3,390,077 (1,224,341) - 13,496,505
Less accumulated depreciation
Machinery and equipment (7,902,125) (1,166,531) 1,205,216 - (7,863,440)
Total internal service funds
capital assets,net 3,428,644 2,223,546 (19,125) - 5,633,065
Total governmental activities
capital assets,net $ 141,711,216 $ 8,783,460 $ (142,415) $ - $ 150,352,261
55
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS—CONTINUED
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Business-type activities
Capital assets not being depreciated
Land $ 3,618,545 $ - $ - $ - $ 3,618,545
Construction in progress 5,269,623 5,205,424 - (10,403,193) 71,854
Total capital assets
not being depreciated 8,888,168 5,205,424 - (10,403,193) 3,690,399
Capital assets being depreciated
Buildings 4,109,101 - - 97,934 4,207,035
Equipment 2,382,970 1,774,032 (149,214) 37,565 4,045,353
Improvements 18,650,380 - - 2,398,115 21,048,495
Utility system 101,477,958 1,692,882 - 7,869,579 111,040,419
Total capital assets being
depreciated 126,620,409 3,466,914 (149,214) 10,403,193 140,341,302
Less accumulated depreciation
Buildings (2,285,893) (121,279) - - (2,407,172)
Equipment (1,596,423) (160,010) 149,214 - (1,607,219)
Improvements (9,818,186) (664,490) - (10,482,676)
Utility system (51,361,684) (2,563,382) - - (53,925,066)
Total accumulated depreciation (65,062,186) (3,509,161) 149,214 - (68,422,133)
Total capital assets being
depreciated,net 61,558,223 (42,247) - 10,403,193 71,919,169
Total business-type activities
capital assets,net $70,446,391 $ 5,163,177 $ - $ - $75,609,568
Depreciation expense was charged as a direct expense to programs of the primary government as
follows:
Governmental activities
Culture and recreation $ 789,055
General administrative 2,717,938
Highways and streets 2,459,792
Public safety 586,484
Total depreciation expense - governmental activities $ 6,553,269
Business-type activities
Water and wastewater $ 2,054,519
Drainage utility 767,623
Golf course 391,669
Other recreation enterprises 295,350
Total depreciation expense -business-type activities $ 3,509,161
56
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 3. CAPITAL ASSETS—CONTINUED
Outstanding commitments at September 30, 2017, under authorized construction contracts, were
$5,474,371. 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, 2017:
Balance Balance Due
Beginning End within
of Year Increases Decreases of Year One Year
Governmental activities
General obligation bonds $17,425,000 $ - $ (2,935,000) $ 14,490,000 $3,030,000
Certificates of obligation 27,710,000 - (360,000) 27,350,000 870,000
Sales tax revenue bonds 120,000 - (45,000) 75,000 35,000
Tax notes 1,280,000 - (420,000) 860,000 425,000
Capital lease - 249,370 (88,825) 160,545 76,697
Premium on bonds 1,368,284 - (151,784) 1,216,500 151,785
Discount on bonds (129,592) - 12,732 (116,860) (12,736)
Net pension liability 22,490,102 - (185,926) 22,304,176 -
Compensated absences 1,963,079 411,807 (408,002) 1,966,884 196,688
Total governmental activities 72,226,873 661,177 (4,581,805) 68,306,245 4,772,434
Business-type activities
Water and sewer revenue bonds 10,305,000 - (765,000) 9,540,000 780,000
General obligation refunding bonds 5,695,000 - (455,000) 5,240,000 470,000
Premiums on bonds 213,692 - (19,241) 194,451 19,240
Discounts on bonds (27,629) - 1,624 (26,005) (1,625)
Net pension liability 4,181,262 - (34,366) 4,146,896 -
Compensated absences 263,065 68,351 (35,292) 296,124 29,612
Total business-type activities 20,630,390 68,351 (1,307,275) 19,391,466 1,297,227
Total primary government $92,857,263 $ 729,528 $ (5,889,080) $ 87,697,711 $6,069,661
Governmental fund net pension liability is typically liquidated by the general, half-penny sales
tax, crime control and prevention district, and juvenile case funds.
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.
57
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2017, general obligation bonds currently outstanding are as follows:
Interest Issue Maturity Principal
Rate % Date Date Outstanding
General Obligation Bonds
Taxable Refunding, Series 2010 .68%— 08/15/2010 08/01/2025 $4,740,000
4.4%
Refunding, Series 2011 2%—4% 01/15/2011 08/15/2021 3,220,000
Refunding, Series 2012 2%—4% 12/01/2011 02/15/2024 3,400,000
Refunding, Series 2012A 2%—4% 11/01/2012 02/15/2027 5,240,000
Refunding, Series 2014 3% 10/15/2014 02/15/2020 3,130,000
Total $19,730,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Governmental Activities Business-Type Activities
Year Principal Interest Principal Interest Total
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 1,105,000 152,439 520,000 71,276 1,848,715
2023-2027 3,010,000 207,778 2,775,000 175,350 6,168,128
Total $ 14,490,000 $ 1,808,665 $ 5,240,000 $ 668,901 $ 22,207,566
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.
58
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 $2,375,000
Series 2014 0%— 5% 10/15/2014 08/15/2034 5,495,000
Series 2015 3%—5% 10/27/2015 02/15/2035 3,030,000
Series 2016 2%—4% 01/12/2016 *02/15/2041 16,450,000
Total $27,350,000
*previously reported as 08/15/2041
Annual debt service requirements to maturity for the certificates of obligation are as follows:
Fiscal Governmental Activities
Year Principal Interest Total
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 1,135,000 747,581 1,882,581
2023-2027 6,330,000 3,080,830 9,410,830
2028-2032 6,950,000 2,008,610 8,958,610
2033-2037 5,530,000 989,747 6,519,747
2038-2041 3,340,000 246,213 3,586,213
Total $ 27,350,000 $10,429,855 $37,779,855
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.
59
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 '/20 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 $ 75,000
W&WW Refunding, Series 2012 2.03% 03/29/2012 07/15/2024 1,690,000
W&WW Improvement, Series 2013 2%—5% 06/25/2013 07/15/2033 1,345,000
W&WW Improvement, Series 2015A 0%— 1.98% 06/15/2015 07/15/2035 4,245,000
W&WW Improvement, Series 2015B 0%— 1.68% 06/15/2015 07/15/2035 2,260,000
Total $ 9,615,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Governmental
Fiscal Activities Business-Type Activities
Year Principal Interest Principal Interest Total
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 540,000 131,201 671,201
2023-2027 — — 2,410,000 534,714 2,944,714
2028-2032 2,370,000 309,680 2,679,680
2033-2035 1,310,000 50,162 1,360,162
Total $75,000 $1,645 $9,540,000 $1,639,820 $11,256,465
60
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT—CONTINUED
Revenue Bonds—Continued
The gross '/20 sales tax revenues of the EDC recognized in the year ending September 30, 2017
totaled $5,316,453. The principal and interest payments on the EDC debt for the same period
totaled$46,716 which equates to approximately .9% of the gross %2¢ sales tax revenues.
The recognized net revenues of the water and wastewater fund totaled $3,029,464 for the year
ending September 30, 2017. Principal and interest payments on the water and sewer revenue
bonds totaled $942,600 which equates to approximately 31.1% 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
purchase 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 *08/15/2019 $860,000
*previously reported as 02/15/2019
Annual debt service requirements to maturity for the tax notes are as follows:
Fiscal Governmental Activities
Year Principal Interest Total
2018 $425,000 $ 9,976 $434,976
2019 435,000 5,046 440,046
Total $860,000 $15,022 $875,022
61
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Capital Leases
The City entered into a lease/purchase agreement to finance a new telephone system. Under the
terms of the agreement, the related capital equipment will become the property of the City when
all terms of the lease agreement are met. The agreement includes a stated interest rate of 0%;
however, an implied interest rate approximating 9.32% was utilized to calculate the interest
portion of the future lease payments. Furthermore, the agreement states $249,370 is the amount
being financed and the amount to be repaid over three years is $275,000. The value of the
telephone equipment is $275,000.
As of September 30, 2017, capital lease annual amortization is as follows:
2018 $ 91,667
2019 91,666
Total 183,333
Less interest (22,788)
Present value of
remaining payments $ 160,545
Governmental
Activities
Equipment $ 275,000
Less:accumulated
amortization (32,738)
Net book value $ 242,262
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.
62
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Annual Requirements to Retire Debt Obligations - Continued
Revenue bond reserve — a reserve established at the time of issuance 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, 2017.
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, 2017, 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.
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 $9,815,413
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 $217,514 in the year ended
September 30, 2017 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.
63
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the operating costs
of the City's service center, which provides services to all City departments.
NOTE 7. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations of
those funds.
Transfers in
Non-major Subtotal
General Debt service governmental governmental
Transfers out
General $ - $ - $ 928,480 $ 928,480
Debt service - - - -
Carrentaltax 1,579,163 - 2,330,000 3,909,163
Water and wastewater 1,155,834 - - 1,155,834
Drainage utility 36,599 - - 36,599
Nonmajor governmental - 1,513,355 1,301,630 2,814,985
Total transfers in $ 2,771,596 $ 1,513,355 $ 4,560,110 $ 8,845,061
Transfers in
Golf Non-major Internal Subtotal Total
course proprietary service proprietary transfers out
Transfers out
General $ 15,447 $ - $ 242,000 $ 257,447 $ 1,185,927
Debt service - - 1,250,000 1,250,000 1,250,000
Car rental tax - - 607,036 607,036 4,516,199
Water and wastewater - - 242,000 242,000 1,397,834
Drainage utility - - - - 36,599
Nonmajor governmental 386,869 1,023,686 - 1,410,555 4,225,540
Total transfers in $ 402,316 $ 1,023,686 $ 2,341,036 $ 3,767,038 $ 12,612,099
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 non-major governmental funds to provide funding for approved
capital projects.
• The non-major government funds to debt service funds for the debt service payments on
bonds.
64
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS —CONTINUED
• The non-major governmental funds to the other non-major governmental funds for approved
projects and to satisfy grant matching requirements.
• 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 and debt service fund to the internal service fund for equipment
purchases.
• The non-major governmental funds to the golf course fund to cover a portion of the operating
and debt costs associated with the conference center.
• The non-major governmental funds to the non-major enterprise funds to provide funding for
approved capital projects.
NOTE 8. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the
Texas Municipal League Joint Self-Insurance Fund (TMLIF) to provide both general liability and
property insurance.
The City, along with other participating entities, contributes annual amounts determined by TMLIF
management. As claims arise they are submitted to and paid by TMLIF. The City is not liable for
payments beyond their annual contributions to TMLIF and related deductibles.
In fiscal year 2006, the City contracted with the Texas Municipal League Intergovernmental Risk
Pool to provide workers' compensation insurance and effectively discontinued being self-insured for
workers' compensation claims. This policy has no deductibles, includes all claims handling, and has
a fixed premium.
In fiscal years prior to 2006, the City was self-insured for workers' compensation claims.
Contributions were made to a separate risk management fund by other funds and were available to
pay claims, claim reserves, and administrative costs of the program. The City remains liable under
its self-insurance program for any claims occurring prior to October 1, 2005.
The City provides employee health insurance coverage on a self-insured basis. Premiums are paid
into a separate insurance fund by other funds, by the City's employees, and by retirees. The
premiums are used to fund claims, administrative costs of the program, and claim reserves. An
excess coverage insurance policy covers individual claims in excess of $100,000 and aggregate
claims in excess of $5,722,208. During fiscal year 2017, the City and the City's employees
contributed approximately $4,422,797 and $1,455,715 respectively, for medical coverage.
65
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 8. RISK MANAGEMENT—CONTINUED
The City's contributions are accounted for as interfund services provided and used. Claims liabilities
are based on estimates of the ultimate cost of claims (including future claim adjustment expenses)
that have been reported but not settled, and of claims that have been incurred but not reported, and
are accounted for in the Insurance Internal Service Fund.
Changes in the balances of health and dental claims liabilities for the years ended
September 30, 2017 and 2016 are as follows:
2017 2016
Unpaid claims, beginning of year $ 849,000 $ 507,500
Incurred claims 5,644,625 5,498,859
Paid claims (5,608,625) (5,157,359)
Unpaid claims, end ofyear $ 885,000 $ 849,000
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2017 or any of the three preceding years ended September 30.
NOTE 9. DEFINED BENEFIT PENSION PLAN
Plan Description
The City participates as one of 872 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.
66
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 payment 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
Employees Covered By Benefit Terms
At the December 31, 2016 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 218
Inactive employees entitled to,but not yet receiving benefits 150
Active employees 376
Total 744
67
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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, 2017. The contribution rates for the City were 17.49% and 17.76% in
calendar years 2016 and 2017, respectively. The City's contributions to TMRS for the year
ended September 30, 2017 were $4,917,397 and were equal to the required contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2016, 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, 2016 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 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.
68
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN—CONTINUED
Actuarial Assumptions —Continued
Actuarial assumptions used in the December 31, 2016, 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. 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).
The target allocation and best estimates of real rates of return for each major asset class are
summarized in the following table:
Target Long-Term Expected Real
Asset Class Allocation Rate of Return(Arithmetic)
Domestic Equity 17.5% 4.55%
International Equity 17.5% 6.35%
Core Fixed Income 10.0% 1.00%
Non-Core Fixed Income 20.0% 4.15%
Real Return 10.0% 4.15%
Real Estate 10.0% 4.75%
Absolute Return 10.0% 4.00%
Private Equity 5.0% 7.75%
Total 100.0%
69
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN—CONTINUED
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.
Changes in the Net Pension Liability
Increase (Decrease)
Plan Fiduciary
TPL Net Position NPL
(a) (b) (a) - (b)
Balance at 12/31/2015 $ 185,689,330 $ 159,017,966 $26,671,364
Changes for the year:
Service cost 4,868,631 - 4,868,631
Interest 12,462,429 - 12,462,429
Change ofbenefit terms - - -
Difference between expected
and actual experience (361,966) - (361,966)
Changes of assumptions - - -
Contributions - employer - 4,691,585 (4,691,585)
Contributions - employee - 1,877,709 (1,877,709)
Net investment income - 10,748,002 (10,748,002)
Benefit payments, including
refunds of employee contributions (6,990,135) (6,990,135) -
Administrative expense - (121,371) 121,371
Other changes - (6,539) 6,539
Net changes 9,978,959 10,199,251 (220,292)
Balance at 12/31/2016 $ 195,668,289 $ 169,217,217 $26,451,072
Plan fiduciary net position as a percentage of the TPL 86.48%
Covered payroll $26,824,411
NPL as a percentage of covered payroll 98.61%
70
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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 1%Increase in
Discount Rate Discount Rate Discount Rate
(5.75%) (6.75%) (7.75%)
City's net pension liability $ 54,526,967 $26,451,072 $ 3,410,777
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's Fiduciary Net Position is available in a separately-
issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended September 30, 2017, the City recognized pension expense of$6,989,641.
At September 30, 2017, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected
and actual experience $ - $ 997,202
Changes in actuarial assumptions - 371,366
Difference between projected and
actual investment earnings 7,314,222 -
Contributions subsequent to the
measurement date 3,510,823 -
Total $ 10,825,045 $ 1,368,568
71
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 9. DEFINED BENEFIT PENSION PLAN—CONTINUED
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions—Continued
$3,510,823 reported as deferred outflows of resources related to the pensions resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the year ended September 30, 2018. 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
2017 $ 2,142,092
2018 2,142,092
2019 1,826,811
2020 (138,529)
2021 (26,812)
Total $ 5,945,654
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.
72
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Postemployment Healthcare Plan — Continued
Benefits provided. 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 actuarially determined contribution (ADC) as determined in
accordance with GASB 74. However, it is currently the intent of the Plan Administrator to
annually fund an amount equal to, or in excess of, the ADC. This intent is subject to change and
is subject to annual appropriation.
73
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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:
Monthly Contribution
Medical Plan A Medical Plan B Dental Vision
Retiree Only $ 811.05 $ 698.72 $ 29.10 $ 8.26
Retiree plus Children 1,541.00 1,327.58 55.28 13.50
Retiree plus Spouse 1,865.42 1,607.07 66.92 16.04
Retiree plus Family 2,352.05 2,026.30 84.38 22.68
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 following table.
Retired employees meeting all eligibility requirements as set forth in the Plan that were hired
after October 1, 2006 and before October 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:
Discounts on Premiums
Hired Pre-10/2006 Hired Post-10/2006
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%
74
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
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.
Per the requirements of GASB 74 Financial Reporting for Postemployment Benefit Plans Other
Than Pension Plans, which the City Plan implemented in fiscal year 2017, the following data is
presented.
Plan Membership
On September 30, 2017, plan membership consisted of the following:
Inactive plan members or beneficiaries currently receiving benefit payments 92
Inactive plan members entitled to, but not yet receiving benefit payments 47
Active plan members 749
888
Investments
Investment policy. The City's policy in regard to the allocation of invested assets is established
and may be amended by the City Manager. The City Council appointed the City Manager or her
successor or her designee as the City's Plan Administrator. The City Manager selected the
balanced, moderately aggressive actively-managed investment option (HighMark PLUS) to
provide growth of principal and income. While dividend and interest income are an important
component of the objective's total return, it is expected that capital appreciation will comprise a
larger portion of the total return. The portfolio will be allocated between equity and fixed
income investments.
Strategic Target 9/30/2017
Asset Class Range Allocation Allocation
Equity 50-70% 60.00% 60.03%
Fixed income 30-50% 35.00% 36.11%
Cash 0-20% 5.00% 3.86%
100.00% 100.00%
75
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Investments—Continued
Rate of return. For the year ended September 30, 2017, the annual money-weighted rate of
return on investments, net of investment expense, was 12.38%. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Concentrations. The following investments comprised 5% or more of the OPEB plan's fiduciary
net position as of September 30, 2017:
%of
Asset Class Investment Vehicle Portfolio
Equity Vanguard Growth&Income Adm 12.07%
Equity Dodge &Cox Stock Fund 7.05%
Fixed Income Nationwide HighMark Bond Fund 11.53%
Fixed Income Prudential Total Rtrn BD 9.15%
Fixed Income PIMCO Total Return Intl Fund 9.79%
Net OPEB Liability of the City
The components of the net OPEB liability of the City at September 30, 2017 were as follows:
Total OPEB liability $ 17,064,452
Plan fiduciary net position (5,359,608)
City's net OPEB liability $ 11,704,844
Plan fiduciary net assets as a percent
of the total OPEB liability 31.41%
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.
76
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Actuarial Methods and Assumptions—Continued
An actuarial valuation was performed as of October 1, 2016 using the entry age normal actuarial
cost method. The liability was then projected forward to the measurement date of September 30,
2017. The actuarial assumptions include:
Discount rate 7.50%
Salary increases 2.00%
Investment rate of return 7.50%
Healthcare cost trend rates 7.0%with annual increases/decreases to
an ultimate rate of 4.0%in 2074
Dental cost trend rates 3.9%through 2074; dropping to 3.8%in 2074
Long-term expected rate of return 7.50%
Municipal bond rate N/A
Mortality rates were based on the Adjusted RPH-2014 Generational with MP-2017 projection.
The plan has not had a formal actuarial experience study performed.
The expected return of each asset class is determined through a combination of historical rates of
return, valuation projections, and economic expectations. Expected rates of return are developed
and annually reviewed by HighMark's Asset Allocation Committee. The long-term expected
rate of return on OPEB plan investments is then calculated by weighting the returns for each
asset class according to the exposure as determined by the current strategic allocation. The
anticipated long-term rate of return is 6.85% with an expected standard deviation of 8.84%.
Anticipated long-term returns by asset class are not available.
Discount rate. The discount rate used to measure the total OPEB liability was 7.5%. The
projection of cash flows used to determine the discount rate assumed the City contributions will
be made at rates at least equal to the actuarially determined contribution rates. Based on those
assumptions, the OPEB Plan's fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on OPEB plan investments was applied to all periods of projected benefit payments
to determine the total OPEB liability.
77
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Actuarial Methods and Assumptions—Continued
Sensitivity of the OPEB liability to changes in the discount rate. The following presents the net
OPEB liability of the City as well as what the City's net OPEB liability would be if it were
calculated using a discount rate that is one percentage point lower(6.5%) or one percentage point
higher(8.5%)than the current discount rate:
1%Decrease Discount Rate 1%Increase
(6.5%) (7.5%) (8.5%)
Net OPEB liability $ 14,221,364 $ 11,704,844 $ 9,673,635
Sensitivity of the OPEB liability to changes in the healthcare cost trend rates. The following
presents the net OPEB liability of the City as well as what the City's net OPEB liability would be
if it were calculated using healthcare cost trend rates that are one percentage point lower or one
percentage point higher than the current healthcare cost trend rates:
Current Trend
1%Decrease Rates 1%Increase
Net OPEB liability $ 9,172,110 $ 11,704,844 $ 14,189,928
Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) for the Plan is calculated based on the ARC, an amount
actuarially determined in accordance with the parameters of GASB 45. The ARC represents the
level of funding that, if paid on an on-going basis, is projected to cover normal cost each year
and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed
thirty years.
For the year ended September 30, 2017, the City has estimated the cost of providing these
benefits through an actuarial valuation dated October 1, 2016. The projected unit credit actuarial
cost method was used in the actuarial valuation. The actuarial assumptions include a 7.5%
investment rate of return, an annual healthcare cost trend rate of 7.0% initially with annual
increases and decreases to an ultimate rate of 4.0% in 2074, and a dental cost trend rate of 3.9%
through 2074 at which time the rate drops to 3.8%. An inflation rate of 2.3% is utilized along
with a discount rate of 7.5%.
78
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Annual OPEB Cost and Net OPEB Obligation—Continued
The following table represents the components of the City's annual OPEB cost for the fiscal
year, the amount actually contributed to the Plan, and any changes in the City's net OPEB
obligation.
Annual required contribution $ 1,226,144
Interest on net OPEB obligation (58,862)
Adjustments to annual required contribution 66,452
Annual OPEB cost(expense) 1,233,734
Contributions made (1,832,839)
Change in OPEB obligation (599,105)
Net OPEB obligation(asset) - beginning of year (784,823)
Net OPEB obligation(asset) - end of year $ (1,383,928)
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for fiscal year 2017 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
10/1/2014 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)
10/1/2016 9/30/2017 7.5% 1,233,734 148.56% (1,383,928)
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
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%
2016 2017 4,313,417 7.5% 14,725,964 10,412,547 29% 28,113,691 37%
79
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Funding Status and Funding Progress — Continued
As of October 1, 2016, the Plan was 71% unfunded. The value of assets was $4,313,417,
resulting in an UAAL of$10,412,547.
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, 2017, the grant special revenue fund had an excess of expenditures over
appropriations of$63,552.
80
REQUIRED SUPPLEMENTARY INFORMATION
81
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
FOR THE MEASUREMENT YEAR ENDED DECEMBER 31, 2016
2016* 2015* 2014*
Total pension liability
Service cost $ 4,868,631 $ 4,539,237 $ 4,331,759
Interest(on the total pension liability) 12,462,429 12,302,430 11,698,243
Difference in expected and actual experience (361,966) (579,992) (752,184)
Change in assumptions - (595,757) -
Benefit payments,including refunds of employee contributions (6,990,135) (6,911,946) (6,588,671)
Net change in total pension liability 9,978,959 8,753,972 8,689,147
Total pension liability,beginning of year 185,689,330 176,935,358 168,246,211
Total pension liability,ending of year $ 195,668,289 $ 185,689,330 $176,935,358
Plan fiduciary net position
Contributions-employer $ 4,691,585 $ 4,644,735 $ 4,787,533
Contributions-employee 1,877,709 1,801,285 1,789,251
Net investment income 10,748,002 235,212 8,631,343
Benefit payments,including refunds of employee contributions (6,990,135) (6,911,946) (6,588,671)
Administrative expense (121,371) (143,262) (90,113)
Other (6,539) (7,076) (7,409)
Net change in plan fiduciary net position 10,199,251 (381,052) 8,521,934
Plan fiduciary net position-beginning 159,017,966 159,399,018 150,877,084
Plan fiduciary net position-ending $ 169,217,217 $ 159,017,966 $159,399,018
Net pension liability-ending $ 26,451,072 $ 26,671,364 $ 17,536,340
Plan fiduciary net position as a%of total pension liability 86.48% 85.64% 90.09%
Covered employee payroll $ 26,824,411 $ 25,732,638 $ 25,560,729
Net pension liability as a%of covered employee payroll 98.61% 103.65% 68.61%
* The schedule is intended to show information for 10 years.Additional years
will be displayed as they become available.
82
CITY OF EULESS, TEXAS
SCHEDULE OF PENSION CONTRIBUTIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
2017* 2016* 2015*
Actuarially determined contributions $ 4,971,811 $ 4,670,520 $ 4,602,538
Actual contributions (4,971,811) (4,670,520) (4,602,538)
Contributions deficiency(excess)
City covered employee payroll $ 28,113,691 $ 26,464,297 $ 25,453,407
Ratio of actual contributions to covered payroll amount 17.49%and 17.76% 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 Actuarial determined contribution rates are calculated as of December
31st each year and become effective in January, 12 months and 1 day
later
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 Experience-based table of rates that are specific to the City's plan of
benefits. Last updated for the 2015 valuation pursuant to an
experience study of the period 2010-2014.
Mortality 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.
83
CITY OF EULESS, TEXAS
SCHEDULE OF CHANGES IN THE OPEB LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Total OPEB liability
Service cost $ 75,083
Interest on total OPEB liability 825,331
Effect of changes of benefit terms -
Effect of difference between expected
and actual experience 432,425
Effect of changes of assumptions 5,480,748
Benefit payments (1,332,839)
Net change in OPEB liability 5,480,748
Beginning balance 11,583,704
Ending balance $ 17,064,452
Plan fiduciary net position
Contributions - employer $ 1,832,839
Net investment income 559,716
Benefit payments (1,332,839)
Administrative expense (13,525)
Net change in plan fiduciary
net position 1,046,191
Beginning balance 4,313,417
Ending balance $ 5,359,608
City's net OPEB liability ending $ 11,704,844
Plan fiduciary net position as a %
of the total OPEB liability 31%
Covered employee payroll $ 25,944,080
City's net OPEB liability as a %
of covered employee payroll 45%
This schedule is presented to illustrate the requirement to show ten
years of information. However,until a full ten-year trend is available,
the schedule will present the information that is available.
84
CITY OF EULESS, TEXAS
SCHEDULE OF CONTRIBUTIONS—OPEB TRUST
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Actuarially determined contribution $ 1,226,144
Contributed in relation to the actuarially
determined contribution 1,832,839
Contribution deficiency(excess) $ (606,695)
Covered employee payroll $ 25,944,080
Contributions as a percentage of
covered employee payroll 7.1%
Notes to Schedule
Significant assumptions used in preparation of actuarial valuation
Valuation date 10/1/2016
Actuarial cost method Entry Age Normal
Amortization method Level Dollar Method
Asset valuation method Market value
Discount rate 7.5%
Inflation 2.3%
Healthcare cost trend rates 7.0% increasing/declining annually to 4.00% in 2074
Salary increases including inflation 2.0%
Long-term investment rate of return,net of investment expense 7.5%
Retirement age Varies with age and service level
Mortality Adjusted RPH-2014 Generational table with MP-2017 Projection
This schedule is presented to illustrate the requirement to show ten
years of information. However,until a full ten-year trend is available,
the schedule will present the information that is available.
85
CITY OF EULESS, TEXAS
SCHEDULE OF FUNDING PROGRESS—OPEB TRUST
SEPTEMBER 30, 2017
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
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%
2016 2017 4,313,417 7.5% 14,725,964 10,412,547 29% 28,113,691 37%
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, 2016 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, 2017, the plan's funded ratio was 29%.
For more information concerning the plan and the actuarial method and assumptions, see
Note 10 Other Post Employment Benefits in the Notes to the Financial Statements.
CITY OF EULESS, TEXAS
SCHEDULE OF INVESTMENT RETURNS —OPEB TRUST
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Annual money-weighted rate of
Year return, net of investment expense
2017 12.38%
This schedule is presented to illustrate the requirement to show ten
years of information. However,until a full ten-year trend is available,
the schedule will present the information that is available.
86
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes $ 12,380,137 $ 12,380,137 $ 12,322,016 $ (58,121)
Penalty and interest 58,000 58,000 68,615 10,615
Total property tax 12,438,137 12,438,137 12,390,631 (47,506)
Gross receipts and mixed beverage tax
Telephone line access fee 300,000 300,000 282,336 (17,664)
Electric company 1,675,882 1,675,882 1,633,066 (42,816)
Gas company 385,000 385,000 384,230 (770)
Cable TV 778,000 778,000 623,174 (154,826)
City garbage service 233,000 233,000 232,445 (555)
Water and wastewater system 1,174,635 1,174,635 1,155,834 (18,801)
Others 118,690 118,690 147,835 29,145
Total gross receipts and
mixed beverage tax 4,665,207 4,665,207 4,458,920 (206,287)
General sales tax 13,005,514 13,005,514 13,093,980 88,466
Fines and fees
Municipal court fines 2,959,513 2,959,513 2,446,962 (512,551)
Jail income 175,000 175,000 302,115 127,115
Dog licenses and pound fees 3,800 3,800 8,640 4,840
Ambulance fees 1,060,000 1,060,000 1,043,748 (16,252)
Library fees 7,100 7,100 8,172 1,072
Zoning fees 25,000 25,000 16,114 (8,886)
Deferred adjudication fee 155,000 155,000 135,618 (19,382)
Total fines and fees 4,385,413 4,385,413 3,961,369 (424,044)
Licenses and permits
Building permits 590,000 590,000 1,624,178 1,034,178
Miscellaneous permits 235,535 235,535 271,281 35,746
Minimum housing 122,000 122,000 101,623 (20,377)
Total licenses and permits 947,535 947,535 1,997,082 1,049,547
Investment income 35,000 35,000 140,239 105,239
Intergovernmental 402,725 402,725 402,549 (176)
Other revenues
Rental income 587,928 587,928 521,406 (66,522)
Swimming pools 225,000 225,000 233,555 8,555
Miscellaneous income 279,000 279,000 236,272 (42,728)
Total other revenues 1,091,928 1,091,928 991,233 (100,695)
Total revenues 36,971,459 36,971,459 37,436,003 464,544
87
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Expenditures
Current
Culture and recreation $ 3,351,070 $ 3,351,070 $ 3,093,614 $ 257,456
Development services 826,376 826,376 726,357 100,019
General and administrative 10,844,285 11,119,285 9,588,555 1,530,730
Highways and streets 1,675,324 1,675,324 1,586,557 88,767
Public safety 23,972,235 23,972,235 23,097,254 874,981
Total expenditures 40,669,290 40,944,290 38,092,337 2,851,953
Excess(deficiency)ofrevenues
over(under)expenditures (3,697,831) (3,972,831) (656,334) 3,316,497
Other financing sources (uses)
Proceeds from sale of assets - - 27,293 27,293
Issuance of a capital lease - - 249,370 249,370
Transfers in 2,788,798 2,788,798 2,771,596 (17,202)
Transfers out (1,182,776) (1,182,776) (1,185,927) (3,151)
Total other financing
sources(uses),net 1,606,022 1,606,022 1,862,332 256,310
Net change in fund balance (2,091,809) (2,366,809) 1,205,998 3,572,807
Fund balance,
beginning of year 12,243,470 12,243,470 12,243,470 -
Fund balance, end of year $ 10,151,661 $ 9,876,661 $ 13,449,468 $ 3,572,807
88
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax $ 14,212,470 $ 14,212,470 $ 14,401,763 $ 189,293
Investment income 15,000 15,000 57,029 42,029
Total revenues 14,227,470 14,227,470 14,458,792 231,322
Expenditures
General and administrative 9,490,453 9,490,453 9,732,789 (242,336)
Capital outlay 599,246 599,246 - 599,246
Total expenditures 10,089,699 10,089,699 9,732,789 356,910
Excess of revenues over
expenditures 4,137,771 4,137,771 4,726,003 588,232
Other fmancing uses
Transfers out (4,516,199) (4,516,199) (4,516,199) -
Total other
financing uses (4,516,199) (4,516,199) (4,516,199) -
Net change in fund balance (378,428) (378,428) 209,804 588,232
Fund balance, beginning of year 2,777,888 2,777,888 2,777,888 -
Fund balance, end of year $ 2,399,460 $ 2,399,460 $ 2,987,692 $ 588,232
89
CITY OF EULESS, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
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.
90
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
91
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.
92
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.
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.
TIRZ #4 Midtown CIP Fund — to account for construction projects and the means of financing
such projects within the development area generally known as Euless Midtown.
Car Rental CIP Fund — to account for the building and infrastructure projects that are funded
from the short-term motor vehicle rental tax.
93
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
Special Revenue Funds
Police Crime
Drug Control and
Hotel/ Half-Penny Enforce- Prevention
Motel Sales Tax ment District Grant
Fund Fund Fund Fund Fund
ASSETS
Deposits and investments $ 624,932 $1,901,416 $508,958 $ 943,061 $ 19,180
Accounts receivable 239,651 - - - 8,821
Property taxes receivable - - - - -
Accrued interest receivable - 912 - - -
Due from other governments - 905,817 - 454,784 -
Prepaids - 7,028 - 15,000 -
Restricted deposits and investments - - - - -
Total assets $ 864,583 $2,815,173 $508,958 $1,412,845 $ 28,001
LIABILITIES
Liabilities
Accounts payable $ 204,718 $ 203,290 $ - $ 8,874 $ -
Accrued salaries and wages - 91,645 - 109,164 3,813
Unearned revenue 55,841 - - - -
Total liabilities 260,559 294,935 - 118,038 3,813
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES
Fund Balances
Nonspendable - 7,028 - 15,000 -
Restricted,debt service - 137,224 - - -
Restricted,capital projects - - - - -
Restricted,developer agreements - - - - -
Restricted,juvenile case management - - - - -
Restricted,cable PEG fees - - - - -
Restricted,historical preservation 1,245 - - - -
Assigned 602,779 2,375,986 508,958 1,279,807 24,188
Total fund balances 604,024 2,520,238 508,958 1,294,807 24,188
Total liabilities,deferred inflows of
resources, and fund balances $ 864,583 $2,815,173 $508,958 $1,412,845 $ 28,001
94
Special Revenue Funds
Police Cable Special
Seized Juvenile Glade Parks TIRZ#3 Midtown PEG Revenue
Assets Case PID Glade Parks PID Fees Funds
Fund Fund Fund Fund Fund Fund Total
$298,694 $250,074 $ 750,000 $ 251,695 $ 43,833 $ 587,723 $6,179,566
- 4,531 - 29,904 - 30,000 312,907
- - - 30,356 - - 30,356
- - - - - - 912
- - - - - - 1,360,601
- - - - - - 22,028
$298,694 $254,605 $ 750,000 $ 311,955 $ 43,833 $ 617,723 $7,906,370
$ 1,499 $ 3,823 $ - $ - $ - $ 896 $ 423,100
5,272 3,694 - - - - 213,588
- - - - - - 55,841
6,771 7,517 - - - 896 692,529
- 4,531 - - - - 4,531
- 4,531 - - - - 4,531
- - - - - - 22,028
- - 750,000 - - - 887,224
- 242,557 - - - - 242,557
- - - - - 616,827 616,827
- - - - - - 1,245
291,923 - - 311,955 43,833 - 5,439,429
291,923 242,557 750,000 311,955 43,833 616,827 7,209,310
$298,694 $254,605 $ 750,000 $ 311,955 $ 43,833 $ 617,723 $7,906,370
95
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
Capital Project Funds
Half-Penny
Sales Tax Developers' General Redevelopment
CIP Contribution CIP CIP
Fund Fund Fund Fund
ASSETS
Deposits and investments $2,026,353 $2,088,362 $1,279,733 $ 115,551
Accounts receivable - - 20,873 -
Property taxes receivable - - - -
Accrued interest receivable 583 3,167 - -
Due from other governments - - - -
Prepaids - - - -
Restricted deposits and investments - - - -
Total assets $2,026,936 $2,091,529 $1,300,606 $ 115,551
LIABILITIES
Liabilities
Accounts payable $ - $ - $ 1,596 $ -
Accrued salaries and wages - - - -
Unearned revenue - - - -
Totalliabi7ities - - 1,596 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -
Total deferred inflows of resources - - - -
FUND BALANCES
Fund Balances
Nonspendable - - - -
Restricted,debt service - - - -
Restricted,capital projects - - - -
Restricted,developer agreements - 2,091,529 - -
Restricted,juvenile case management - - - -
Restricted,cable PEG fees - - - -
Restricted,historical preservation - - - -
Assigned 2,026,936 - 1,299,010 115,551
Total fund balances 2,026,936 2,091,529 1,299,010 115,551
Total liabilities,deferred inflows of
resources,and fund balances $2,026,936 $2,091,529 $1,300,606 $ 115,551
96
Capital Project Funds
TIRZ#4 Car Capital Total
Streets Midtown Midtown Rental Project Non-major
CIP Reserve CIP CIP Funds Governmental
Fund Fund Fund Fund Totals Funds
$ 357,420 $ - $ - $2,434,679 $ 8,302,098 $ 14,481,664
- - 88,549 109,422 422,329
- - - - - 30,356
- 124 - 8,522 12,396 13,308
- - - - - 1,360,601
- - - 22,028
999,601 5,602,122 - 6,601,723 6,601,723
$ 357,420 $ 999,725 $5,602,122 $2,531,750 $ 15,025,639 $ 22,932,009
$ 8,490 $ - $1,615,925 $ 19,127 $ 1,645,138 $ 2,068,238
- - - - 213,588
- - - - - 55,841
8,490 - 1,615,925 19,127 1,645,138 2,337,667
- - - - - 4,531
- - - - - 4,531
- - - 22,028
- - - 887,224
999,725 3,986,197 - 4,985,922 4,985,922
- - 2,091,529 2,091,529
- - - - - 242,557
- - - - - 616,827
- - - - - 1,245
348,930 - - 2,512,623 6,303,050 11,742,479
348,930 999,725 3,986,197 2,512,623 13,380,501 20,589,811
$ 357,420 $ 999,725 $5,602,122 $2,531,750 $ 15,025,639 $ 22,932,009
97
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND
BALANCES-NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Special Revenue Funds
Police Crime
Drug Control and
Hotel/ Half-Penny Enforce- Prevention
Motel Sales Tax ment District Grant
Fund Fund Fund Fund Fund
Revenues
General property tax $ - $ - $ - $ - $ -
Gross receipts tax 798,905 - - - -
General sales tax - 5,316,453 - 2,644,904 -
Investment income 3,969 9,582 3,358 6,230 -
DEA revenues - - 9,994 - -
Intergovernmental - - - - 178,552
Rents and royalties - - - - -
Other revenues - - - - -
Total revenues 802,874 5,326,035 13,352 2,651,134 178,552
Expenditures
Culture and recreation - 3,146,540 - - 4,100
Development services - 204,762 - - -
General and administrative 210,304 247,973 - - -
Highways and streets - - - - -
Public safety - - 9,381 2,610,556 218,493
Debt service
Principal - 45,000 - - -
Interest and fiscal charges - 2,016 - - -
Capital outlay - 61,574 - 90,000 53,706
Total expenditures 210,304 3,707,865 9,381 2,700,556 276,299
Excess(deficiency)of revenues
over(under)expenditures 592,570 1,618,170 3,971 (49,422) (97,747)
Other fmancing sources (uses)
Proceeds from sale of assets - 95 5,725 27,450 -
Transfers in - - - - 102,480
Transfers out (451,663) (2,347,844) - (24,000) -
Total other
financing sources(uses) (451,663) (2,347,749) 5,725 3,450 102,480
Net change in fund balances 140,907 (729,579) 9,696 (45,972) 4,733
Fund balance,
beginning of year 463,117 3,249,817 499,262 1,340,779 19,455
Fund balance,end of year $ 604,024 $ 2,520,238 $ 508,958 $ 1,294,807 $ 24,188
98
Special Revenue Funds
Police Cable Special
Seized Juvenile Glade Parks TIRZ#3 Midtown PEG Revenue
Asset Case PID Glade Parks PID Fees Funds
Fund Fund Fund Fund Fund Fund Totals
$ - $ - $ - $ 768,578 $ - $ - $ 768,578
- - - - - 124,467 923,372
- - - 197,154 - - 8,158,511
2,445 1,569 - 606 - 3,777 31,536
- - - - - - 9,994
- - - - - - 178,552
- 90,165 - - 607,588 - 697,753
2,445 91,734 - 966,338 607,588 128,244 10,768,296
- - - - - - 3,150,640
- - - - - - 204,762
- 62,563 - - 26,466 19,905 567,211
133,309 - - - - - 2,971,739
- - - - - - 45,000
- - - - - - 2,016
- - - - - 16,963 222,243
133,309 62,563 - - 26,466 36,868 7,163,611
(130,864) 29,171 - 966,338 581,122 91,376 3,604,685
- - 33,270
- - - - - - 102,480
- (779,744) (572,289) - (4,175,540)
- - - (779,744) (572,289) - (4,039,790)
(130,864) 29,171 - 186,594 8,833 91,376 (435,105)
422,787 213,386 750,000 125,361 35,000 525,451 7,644,415
$ 291,923 $ 242,557 $ 750,000 $ 311,955 $ 43,833 $ 616,827 $ 7,209,310
99
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND
BALANCES-NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Capital Project Funds
Half-Penny
Sales Tax Developers' General Redevelopment
CIP Contribution CIP CIP
Fund Fund Fund Fund
Revenues
General property tax $ - $ - $ - $ -
Gross receipts tax - - - -
General sales tax - - - -
Investment income 15,283 19,386 8,997 1,303
DEA revenues - - - -
Intergovernmental - - - -
Rents and royalties - - 79,684 -
Other revenues - 97,393 - 18,682
Total revenues 15,283 116,779 88,681 19,985
Expenditures
Culture and recreation 79,032 1,150 - -
Development services - - - -
General and administrative - - - -
Highways and streets - 2,063 - -
Public safety - - - -
Debt service
Principal - - - -
Interest and fiscal charges - - - -
Capital outlay 93,626 - 158,401 292,414
Total expenditures 172,658 3,213 158,401 292,414
Excess(deficiency)ofrevenues
over(under)expenditures (157,375) 113,566 (69,720) (272,429)
Other financing sources(uses)
Proceeds from sale of assets - - - 130,750
Transfers in 1,227,630 - 250,000 50,000
Transfers out - - - -
Total other
financing sources(uses) 1,227,630 - 250,000 180,750
Net change in fund balances 1,070,255 113,566 180,280 (91,679)
Fund balance,
beginning of year 956,681 1,977,963 1,118,730 207,230
Fund balance,end of year $ 2,026,936 $ 2,091,529 $ 1,299,010 $ 115,551
100
Capital Project Funds
TIRZ#4 Car Capital Total
Streets Midtown Midtown Rental Project Non-major
CIP Reserve CIP CIP Funds Governmental
Fund Fund Fund Fund Totals Funds
$ - $ - $ - $ - $ - $ 768,578
- - - - - 923,372
- - - - - 8,158,511
5,903 - - 22,495 73,367 104,903
- - - - - 9,994
294,630 - - 614,411 909,041 1,087,593
- - - - 79,684 79,684
- - - - 116,075 813,828
300,533 - - 636,906 1,178,167 11,946,463
- - - - 80,182 3,230,822
- - - - - 204,762
- - - 9,661 9,661 576,872
28,094 - - - 30,157 30,157
- - - - - 2,971,739
- - - - - 45,000
- - - - - 2,016
1,147,297 6,479,502 1,294,421 9,465,661 9,687,904
1,175,391 - 6,479,502 1,304,082 9,585,661 16,749,272
(874,858) - (6,479,502) (667,176) (8,407,494) (4,802,809)
- - - 130,750 164,020
930,000 2,000,000 4,457,630 4,560,110
- - - (50,000) (50,000) (4,225,540)
930,000 - - 1,950,000 4,538,380 498,590
55,142 - (6,479,502) 1,282,824 (3,869,114) (4,304,219)
293,788 999,725 10,465,699 1,229,799 17,249,615 24,894,030
$ 348,930 $999,725 $ 3,986,197 $ 2,512,623 $ 13,380,501 $ 20,589,811
101
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax $ 651,596 $ 651,596 $ 798,905 $ 147,309
Investment income 70 70 3,969 3,899
Total revenues 651,666 651,666 802,874 151,208
Expenditures
General and administrative 324,516 346,809 210,304 136,505
Total expenditures 324,516 346,809 210,304 136,505
Other financing uses
Transfers out (466,869) (466,869) (451,663) 15,206
Total other financing uses (466,869) (466,869) (451,663) 15,206
Net change in fund balance (139,719) (162,012) 140,907 302,919
Fund balance, beginning of year 463,117 463,117 463,117 -
Fund balance, end of year $ 323,398 $ 301,105 $ 604,024 $ 302,919
102
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax $ 5,302,550 $ 5,302,550 $ 5,316,453 $ 13,903
Investment income 3,050 3,050 9,582 6,532
Total revenues 5,305,600 5,305,600 5,326,035 20,435
Expenditures
Culture and recreation 3,603,788 3,603,788 3,208,114 395,674
Development services 919,880 919,880 204,762 715,118
General and administrative 371,965 371,965 247,973 123,992
Debt service
Principal 45,000 45,000 45,000 -
Interest and fiscal charges 2,016 2,016 2,016 -
Total expenditures 4,942,649 4,942,649 3,707,865 1,234,784
Excess (deficiency)ofrevenues
over(under) expenditures 362,951 362,951 1,618,170 1,255,219
Other fmancing sources (uses)
Proceeds from sale of assets - - 95 95
Transfers out (2,403,178) (2,403,178) (2,347,844) 55,334
Total other financing
sources (uses) (2,403,178) (2,403,178) (2,347,749) 55,429
Net change in fund balance (2,040,227) (2,040,227) (729,579) 1,310,648
Fund balance, beginning of year 3,249,817 3,249,817 3,249,817 -
Fund balance, end of year $ 1,209,590 $ 1,209,590 $ 2,520,238 $ 1,310,648
103
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 700 $ 700 $ 3,358 $ 2,658
DEA revenues - - 9,994 9,994
Total revenues 700 700 13,352 12,652
Expenditure s
Public safety 200,700 200,700 9,381 191,319
Total expenditures 200,700 200,700 9,381 191,319
Excess (deficiency) of revenues
over(under)expenditures (200,000) (200,000) 3,971 $ 203,971
Other financing sources
Proceeds from sale of assets - - 5,725 5,725
Total other
financing sources - - 5,725 5,725
Net change in fund balance (200,000) (200,000) 9,696 209,696
Fund balance, beginning of year 499,262 499,262 499,262 -
Fund balance, end of year $ 299,262 $ 299,262 $ 508,958 $ 209,696
104
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax $ 2,600,325 $ 2,600,325 $ 2,644,904 $ 44,579
Investment income 1,000 1,000 6,230 5,230
Total revenues 2,601,325 2,601,325 2,651,134 49,809
Expenditures
Public safety 2,848,679 2,848,679 2,700,556 148,123
Total expenditures 2,848,679 2,848,679 2,700,556 148,123
Excess (deficiency) of revenues
over(under)expenditures (247,354) (247,354) (49,422) $ 197,932
Other financing sources (uses)
Proceeds from sale of assets - - 27,450 27,450
Transfers out (24,000) (24,000) (24,000) -
Total other
financing uses (24,000) (24,000) 3,450 27,450
Net change in fund balance (271,354) (271,354) (45,972) 225,382
Fund balance, beginning of year 1,340,779 1,340,779 1,340,779 -
Fund balance, end of year $ 1,069,425 $ 1,069,425 $ 1,294,807 $ 225,382
105
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
GRANT SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Intergovernmental $ 113,586 $ 113,586 $ 178,552 $ 64,966
Total revenues 113,586 113,586 178,552 64,966
Expenditures
Culture and recreation - - 4,100 (4,100)
Public safety 212,747 212,747 272,199 (59,452)
Total expenditures 212,747 212,747 276,299 (63,552)
Excess (deficiency)ofrevenues
over(under) expenditures (99,161) (99,161) (97,747) $ 1,414
Other fmancing sources
Transfers in 99,161 99,161 102,480 3,319
Total other financing sources 99,161 99,161 102,480 3,319
Net change in fund balance - - 4,733 4,733
Fund balance, beginning of year 19,455 19,455 19,455 -
Fund balance, end of year $ 19,455 $ 19,455 $ 24,188 $ 4,733
106
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 1,000 $ 1,000 $ 2,445 $ 1,445
Total revenues 1,000 1,000 2,445 1,445
Expenditures
Public safety 156,108 156,108 133,309 22,799
Total expenditures 156,108 156,108 133,309 22,799
Net change in fund balance (155,108) (155,108) (130,864) 24,244
Fund balance, beginning of year 422,787 422,787 422,787 -
Fund balance, end of year $ 267,679 $ 267,679 $ 291,923 $ 24,244
107
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 200 $ 200 $ 1,569 $ 1,369
Other revenues 113,500 113,500 90,165 (23,335)
Total revenues 113,700 113,700 91,734 (21,966)
Expenditures
General and administrative 90,681 90,681 62,563 28,118
Total expenditures 90,681 90,681 62,563 28,118
Net change in fund balance 23,019 23,019 29,171 6,152
Fund balance, beginning of year 213,386 213,386 213,386 -
Fund balance, end of year $ 236,405 $ 236,405 $ 242,557 $ 6,152
108
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax $ 818,893 $ 818,893 $ 768,578 $ (50,315)
General sales tax 250,861 250,861 197,154 (53,707)
Investment income - - 606 606
Total revenues 1,069,754 1,069,754 966,338 (103,416)
Other fmancing uses
Transfers out (943,589) (943,589) (779,744) 163,845
Total other
financing uses (943,589) (943,589) (779,744) 163,845
Net change in fund balance 126,165 126,165 186,594 60,429
Fund balance, beginning of year 125,361 125,361 125,361 -
Fund balance, end of year $ 251,526 $ 251,526 $ 311,955 $ 60,429
109
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
MIDTOWN PID SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues $ 642,288 $ 642,288 $ 607,588 $ (34,700)
Total revenues 642,288 642,288 607,588 (34,700)
Expenditures
General and administrative 70,000 70,000 26,466 43,534
Total expenditures 70,000 70,000 26,466 43,534
Excess (deficiency) ofrevenues
over(under)expenditures 572,288 572,288 581,122 8,834
Other financing uses
Transfers out 572,288 572,288 572,289 (1)
Total other financing uses 572,288 572,288 572,289 (1)
Net change in fund balance - - 8,833 8,833
Fund balance, beginning of year 35,000 35,000 35,000 -
Fund balance, end of year $ 35,000 $ 35,000 $ 43,833 $ 8,833
110
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, 2017
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax $ 120,000 $ 120,000 $ 124,467 $ 4,467
Investment income - - 3,777 $ 3,777
Total revenues 120,000 120,000 128,244 8,244
Expenditures
General and administrative 60,000 60,000 19,905 40,095
Capital outlay 60,000 60,000 16,963 43,037
Total expenditures 120,000 120,000 36,868 83,132
Net change in fund balance - - 91,376 91,376
Fund balance, beginning of year 525,451 525,451 525,451 -
Fund balance, end of year $ 525,451 $ 525,451 $ 616,827 $ 91,376
111
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 — to account for the receipts and disbursements of the annual Arbor Daze
Festival, supported primarily by user charges.
112
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2017
(1 of 2)
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
ASSETS
Current assets
Deposits and investments $ 312,762 $ 755,410 $ 16,441 $ 1,084,613
Accounts receivable and
unbilled revenue - 24,834 - 24,834
Prepaids and deposits 3,900 15,247 - 19,147
Inventory - 59,677 - 59,677
Total current assets 316,662 855,168 16,441 1,188,271
Non-current assets
Net OPEB asset 555 8,133 - 8,688
Property,plant, and equipment, at cost
Land - 584,532 - 584,532
Building - 488,275 - 488,275
Equipment 167,414 1,544,406 - 1,711,820
Improvements - 10,384,415 - 10,384,415
Total property,plant, and equipment 167,414 13,001,628 - 13,169,042
Less accumulated depreciation 100,717 5,028,934 - 5,129,651
Net property,plant,and equipment 66,697 7,972,694 - 8,039,391
Total non-current assets 67,252 7,980,827 - 8,048,079
Total assets 383,914 8,835,995 16,441 9,236,350
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions - 43,294 - 43,294
Total deferred outflows of resources - 43,294 - 43,294
113
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
SEPTEMBER 30, 2017
(2 of 2)
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
LIABILITIES
Current liabilities
Payable from current assets
Accounts payable $ 12,554 $ 123,502 $ - $ 136,056
Accrued salaries and wages 6,797 15,657 - 22,454
Current portion of compensated absences - 802 - 802
Total current liabilities 19,351 139,961 - 159,312
Non-current liabilities
Net pension liability - 100,470 - 100,470
Compensated absences - 7,221 - 7,221
Total non-current liabilities - 107,691 - 107,691
Total liabilities 19,351 247,652 - 267,003
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions - 5,474 - 5,474
Total deferred inflows of resources - 5,474 - 5,474
NET POSITION
Net investment in capital assets 66,697 7,972,694 - 8,039,391
Unrestricted 297,866 653,469 16,441 967,776
Total net position $ 364,563 $ 8,626,163 $ 16,441 $ 9,007,167
114
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES
IN NET POSITION
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
Operating revenues
Recreation fees $ 732,446 $ - $ - $ 732,446
Service fees and miscellaneous - 1,435,057 1,441 1,436,498
Total operating revenues 732,446 1,435,057 1,441 2,168,944
Operating expenses
Recreation classes 700,185 - - 700,185
Texas Star Sports Complex - 1,248,559 - 1,248,559
Arbor Daze - - 66,274 66,274
Depreciation 15,699 279,651 - 295,350
Total operating expenses 715,884 1,528,210 66,274 2,310,368
Operating income (loss) 16,562 (93,153) (64,833) (141,424)
Nonoperating revenues (expenses)
Gain on sale of capital asset 150 - - 150
Investment income 1,993 14,431 40 16,464
Total nonoperating revenues 2,143 14,431 40 16,614
Transfers In - 958,892 64,794 1,023,686
Developer contributions - 8,550 - 8,550
Change in net position 18,705 888,720 1 907,426
Net position, beginning of year 345,858 7,737,443 16,440 8,099,741
Net position, end of year $ 364,563 $ 8,626,163 $ 16,441 $ 9,007,167
115
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Recreation Texas Star Arbor
Classes Sports Complex Daze Totals
OPERATING ACTIVITIES
Cash received from customers $ 732,445 $ 1,431,429 $ 1,441 $2,165,315
Cash payments to suppliers for goods and services (416,228) (1,050,951) (66,274) (1,533,453)
Cash payments to employees for services (281,788) (261,078) - (542,866)
Net cash provided by(used in)operating activities 34,429 119,400 (64,833) 88,996
NON-CAPITAL FINANCING ACTIVITIES
Transfers in - 958,892 64,794 1,023,686
Net cash provided by non-capital
and related financing activities - 958,892 64,794 1,023,686
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (25,829) (3,380,349) - (3,406,178)
Proceeds from sale of capital assets 150 - - 150
Net cash used in capital
and related financing activities (25,679) (3,380,349) - (3,406,028)
INVESTING ACTIVITIES
Interest received on investments 1,993 16,519 40 18,552
Net cash provided by investing activities 1,993 16,519 40 18,552
Net change in cash and
and cash equivalents 10,743 (2,285,538) 1 (2,274,794)
Cash and cash equivalents, beginning of year 302,019 3,040,948 16,440 3,359,407
Cash and cash equivalents,end of year $ 312,762 $ 755,410 $ 16,441 $1,084,613
Reconciliation of operating income (loss)to net cash
provided by(used in)operating activities
Operating income(loss) $ 16,562 $ (93,153) $ (64,833) $ (141,424)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in)operating activities
Depreciation and amortization 15,699 279,651 - 295,350
Changes in assets and liabilities
Accounts receivable and unbilled revenue - (3,373) - (3,373)
Prepaids and deposits (200) (920) - (1,120)
Inventory - 24,175 - 24,175
Net OPEB asset - (2,328) - (2,328)
Net pension liability - (882) - (882)
Deferred outflows - 9,425 - 9,425
Deferred inflows - (255) - (255)
Accounts payable 1,727 (93,908) - (92,181)
Accrued salaries and wages 641 2,240 - 2,881
Compensated absences - (1,272) - (1,272)
Net cash provided by(used in)operating activities $ 34,429 $ 119,400 $ (64,833) $ 88,996
116
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.
117
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2017
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
ASSETS
Deposits and investments $ 3,075,176 $ 2,817,953 $ 2,404,693 $ 8,297,822
Restricted deposits and investments 47,300 - - 47,300
Accounts receivable 25,870 574,036 - 599,906
Prepaid expenses - 5,374 - 5,374
Accrued interest receivable 559 7,188 972 8,719
Total current assets 3,148,905 3,404,551 2,405,665 8,959,121
Property, plant, and equipment, at cost
Equipment 13,426,291 - 70,214 13,496,505
Less accumulated depreciation 7,830,604 - 32,836 7,863,440
Net property, plant, and equipment 5,595,687 - 37,378 5,633,065
Total assets 8,744,592 3,404,551 2,443,043 14,592,186
LIABILITIES
Accounts payable - 19,604 281,900 301,504
Accrued salary and wages - 7,790 4,546 12,336
Accrued insurance claims - 885,000 2,843 887,843
Total liabilities - 912,394 289,289 1,201,683
NET POSITION
Net investment in capital assets 5,642,987 - 37,378 5,680,365
Unrestricted 3,101,605 2,492,157 2,116,376 7,710,138
Total net position $ 8,744,592 $ 2,492,157 $ 2,153,754 $ 13,390,503
118
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES
IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Equipment
Replacement Insurance RiskIWC
Fund Fund Fund Total
Operating revenues
Insurance premiums $ - $ 5,902,600 $ 468,208 $ 6,370,808
Service fees and miscellaneous 1,301,389 606,561 - 1,907,950
Total operating revenues 1,301,389 6,509,161 468,208 8,278,758
Operating expenses
General and administrative 84,708 2,008,357 77,644 2,170,709
Insurance costs - 4,800,476 766,388 5,566,864
Depreciation 1,160,134 - 6,397 1,166,531
Total operating expenses 1,244,842 6,808,833 850,429 8,904,104
Operating income (loss) 56,547 (299,672) (382,221) (625,346)
Nonoperating revenues
Gain on sale of capital assets 187,524 - - 187,524
Investment income 25,596 24,779 15,270 65,645
Total nonoperating revenues 213,120 24,779 15,270 253,169
Income (loss)before transfers 269,667 (274,893) (366,951) (372,177)
Transfers
Transfers in 1,857,036 - 484,000 2,341,036
Change in net position 2,126,703 (274,893) 117,049 1,968,859
Net position, beginning of year 6,617,889 2,767,050 2,036,705 11,421,644
Net position, end of year $ 8,744,592 $ 2,492,157 $ 2,153,754 $ 13,390,503
119
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers $ 1,275,519 $ 6,336,238 $ 468,208 $ 8,079,965
Cash payments to suppliers for goods and services 382,741 (6,690,942) (788,505) (7,096,706)
Cash payments to employees for services - (74,331) (54,655) (128,986)
Net cash provided by(used in)operating activities 1,658,260 (429,035) (374,952) 854,273
NONCAPITAL FINANCING ACTIVITIES
Transfers in 1,857,036 - 484,000 2,341,036
Net cash provided by noncapital financing activities 1,857,036 - 484,000 2,341,036
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (3,390,077) - - (3,390,077)
Proceeds from sale of capital assets 206,649 - - 206,649
Net cash used in capital and related financing activities (3,183,428) - - (3,183,428)
INVESTING ACTIVITIES
Interest received on investments 25,922 19,158 15,270 60,350
Net cash provided by investing activities 25,922 19,158 15,270 60,350
Net increase(decrease)in cash and cash equivalents 357,790 (409,877) 124,318 72,231
Cash and cash equivalents,beginning of year 2,764,686 3,227,830 2,280,375 8,272,891
Cash and cash equivalents,end of year $ 3,122,476 $ 2,817,953 $ 2,404,693 $ 8,345,122
Reconciliation of operating income(loss)to net
cash provided by(used in)operating activities
Operating income(loss) $ 56,547 $ (299,672) $ (382,221) $ (625,346)
Adjustments to reconcile operating income(loss)to
net cash provided by(used in)operating activities
Depreciation expense 1,160,134 - 6,397 1,166,531
Change in assets and liabilities
Receivables (25,870) (172,923) - (198,793)
Prepaids 467,449 (3,174) - 464,275
Accounts payable - 13,204 (1,245) 11,959
Accrued salaries and wages - (2,470) 2,117 (353)
Accrued insurance claims - 36,000 - 36,000
Net cash provided by(used in)operating activities $ 1,658,260 $ (429,035) $ (374,952) $ 854,273
Reconciliation of cash to balance sheet:
Cash-current $ 3,075,176 $ 2,817,953 $ 2,404,693 $ 8,297,822
Cash-restricted 47,300 - - 47,300
Cash and cash equivalents $ 3,122,476 $ 2,817,953 $ 2,404,693 $ 8,345,122
120
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ESCROW AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2017
Balance Balance
October 1, September 30,
2016 Additions Deductions 2017
Stars Center Escrow Fund
Assets
Investments at fair value $ 1,421,887 $ 11,326 $ (9,100) $ 1,424,113
Total assets $ 1,421,887 $ 11,326 $ (9,100) $ 1,424,113
Liabilities
Due to other entities $ 1,420,547 $ - $ - $ 1,420,547
Refunds payable 1,340 3,566 (1,340) 3,566
Total liabilities $ 1,421,887 $ 3,566 $ (1,340) $ 1,424,113
121
THE CITY OF
EuLEss
122
STATISTICAL SECTION
(Unaudited)
123
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.
124
CITY OF EULESS, TEXAS
NET POSITION BY COMPONENT—LAST TEN FISCAL YEARS
(Accrual Basis of Accounting—Unaudited)
Table 1
Fiscal Year
2008 2009 2010* 2011 2012 2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets $ 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 $ 113,509,089
Restricted 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 10,293,057
Unrestricted 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 12,466,943
Total governmental activities net position $ 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 $ 136,269,089
Business-type activities
Net investment in capital assets $ 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 $ 62,421,284
Restricted for debt service - 3,963,919 438,340 438,948 309,595 314,171 317,758 733,562 733,164 733,264
Restricted for capikalprojects - - - - - - 232,300 1,183,350 4,265,268 1,166,442
Restricted for impact fees - - 2,999,156 2,649,336 2,401,217 2,740,656 1,876,393 1,966,315 1,980,150 2,467,095
Unrestricted 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 14,528,797
Totalbusiness-typeactivitiesnetposition $ 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 $ 81,316,882
Primary government
Net investment in capital assets $ 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 $ 175,930,373
Restricted 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 14,659,858
Unrestricted 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 26,995,740
Total primary government net position $ 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 $ 217,585,971
Source: Comprehensive Annual Financial Reports
* Recalculated
125
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION-LAST TEN FISCAL YEARS
(Accrual Basis of Accounting-Unaudited)
Table 2
Fiscal Year
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Expenses
Governmental activities:
Culture and recreation $ 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 $ 7,349,035
Development services 1,420,477 1,707,421 1,692,845 1,707,148 972,770 1,155,089 1,367,005 877,713 918,214 999,153
General and administrative 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 20,816,148
Highways and streets 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 4,143,412
Public safety 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 28,265,072
Interest onlong-term debt 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 1,502,912
Total governmental activities expenses 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 63,075,732
Business-type activities:
Water and wastewater 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 21,673,844
Drainage utility 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 1,396,736
Golf 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 4,632,475
Other recreation enterprises 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 2,321,414
Total business-type activities expenses 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 30,024,469
Total primary government expenses 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 93,100,201
Program Revenues
Governmental activities:
Fees,fines,and charges for services
Culture and recreation 65,349 67,283 66,368 69,950 65,912 297,361 304,283 317,024 291,349 264,307
Development services 688,348 783,955 751,323 779,939 1,263,477 1,186,347 1,321,040 1,409,703 1,717,416 2,019,496
General and administrative 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 1,156,745
Highways and streets 722,334 11,008 - - 54,622 112,736 218,012 93,258 350,920 607,588
Public safety 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 3,151,407
Operating grants and contributions 486,862 487,059 511,093 469,404 481,655 2,978,933 633,080 597,437 578,007 592,870
Capital grants and contributions 1,885,266 268,130 602,372 1,015,402 689,642 1,213,341 1,552,118 3,228,945 3,375,733 2,356,556
Total governmental activities programrevenues 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 10,148,969
Business-type activities:
Charges for services
Water and wastewater 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 24,178,812
Drainage utility 661,725 689,889 691,800 694,751 705,474 708,984 712,971 716,595 725,152 730,202
Golf 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 4,247,345
Other recreation enterprises 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 2,168,944
Operating grants and contributions - - - - - - - - - -
Capital grants and contributions 2,183,600 1,705,746 26,400 772,714 368,882 1,847,097 2,037,263 1,746,638 2,943,188 2,280,769
Total business-type activities program revenues 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 33,606,072
Total primary governentprogramrevenues 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 43,755,041
(Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued)
126
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION-LAST TEN FISCAL YEARS
(Accrual Basis of Accounting-Unaudited)-Continued
Table 2
Net(Expense)Revenue
Governmental activities $ (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) $ (52,926,763)
Business-type activities 446,244 1,271,476 786,406 3,406,339 77,701 1,534,196 (143,162) 1,617,746 4,629,695 3,581,603
Total primary government net expense (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) (49,345,160)
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes,levied for general purposes 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 16,656,028
Sales taxes 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 21,252,491
Car rental taxes 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 14,401,763
Mixed beverage taxes 84,653 76,433 71,653 66,383 54,138 60,823 69,160 84,533 101,503 128,250
HoteVmotel occupancy taxes 234,780 185,417 237,429 272,809 292,931 329,368 343,312 391,991 696,805 798,905
Gross receipts taxes 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 4,455,137
Investment income 1,727,542 863,225 292,761 168,929 132,607 106,521 70,374 127,367 271,786 451,406
Rents and royalties - - - - 397,527 1,481,305 1,390,283 1,166,832 1,105,829 1,149,534
Gain/(loss)ondisposalofassets 71,143 37,909 116,978 100,110 68,329 117,763 84,664 - - 124,792
Miscellaneous - 11,018 103,569 1,419,512 637,975 35,884 48,773 35,128 692,939 755,996
Transfers (1,012,140) 90,303 647,463 904,867 690,629 692,951 531,974 722,702 (703,751) (233,569)
Total governmental activities 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 59,940,733
Business-type activities:
Investment income 726,385 254,071 87,799 66,161 60,752 40,045 34,063 40,282 104,618 158,805
Contributions from property owners 252,045 - - - - - - - - -
Gain ondisposal ofassets - - 3,579 (141,979) - 41,630 - 4,199 13,185 57,466
Miscellaneous 10,406 21,987 - - - - - - - -
Transfers 1,012,140 (90,303) (647,463) (904,867) (690,629) (692,951) (531,974) (722,702) 703,751 233,569
Total business-type activities 2,000,976 185,755 (556,085) (980,685) (629,877) (611,276) (497,911) (678,221) 821,554 449,840
Total primary government 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 60,390,573
Change in Net Position
Governmental activities 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 7,013,970
Business-type activities 2,447,220 1,457,231 230,321 2,425,654 (552,176) 922,920 (641,073) 939,525 5,451,249 4,031,443
Total primaygovenmient $ 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 $ 11,045,413
(concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded)
Source: Comprehensive Annual Financial Reports
127
CITY OF EULESS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS-LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting-Unaudited)
Table 3
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Fund
Reserved for other $ 362,018 $ 354,882 $ 492,776 $ - $ - $ - $ - $ - $ - $ -
Nonspendable - - - 19,344 28,796 49,262 48,072 47,834 35,250 52,050
Restricted - - - 311,076 258,765 124,312 120,093 109,618 121,041 104,340
Assigned - - - 103,423 111,096 121,542 121,334 116,336 113,655 107,657
Unreserved/Unassigned 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 13,185,421
Total general fund $ 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 $ 13,449,468
All Other Governmental Funds
Reserved for:
Debt service $ 1,967,502 $ 1,987,783 $ 1,622,584 $ - $ - $ - $ - $ - $ - $ -
Development Agreements 1,671,038 1,553,876 1,454,496 - - - - - - -
Other 1,245 1,245 7,677 - - - - - - -
Unreserved,reported in:
Special revenue finds 5,741,072 6,020,996 7,780,378 - - - - - - -
Capital funds 10,940,619 10,918,516 5,792,872 - - - - - - -
Nonspendable - - - 5,665 5,803 9,464 34,704 15,399 7,738 22,028
Restricted for:
Debt service - - - 1,818,957 1,867,971 1,776,644 2,377,710 2,477,981 1,995,548 2,285,719
Capital projects - - - 2,168,956 606,505 365,641 398,756 594,211 12,715,424 4,985,922
Other - - - 87,972 1,694,821 1,872,178 2,089,735 2,455,941 2,718,045 2,952,158
Assigned - - - 14,855,820 15,802,863 13,504,412 12,692,185 13,765,385 12,541,184 14,730,171
Total all other governmental funds $ 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 $ 24,975,998
Note: The City of Euless first applied GASB Statement No.54'Fund Balance Reporting and Governmental Fund Type Definitions'in fiscal year 2011. Reclassification of find balances for prior years was not required.
Source: Comprehensive Annual Financial Reports
128
CITY OF EULESS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting-Unaudited)
Table 4
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenues:
General property tax $ 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 $ 16,674,673
Gross receipts tax 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 5,382,292
General sales tax 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 21,252,491
Car rental tax 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 14,401,763
Fines and fees 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 3,961,369
Licenses and permits 752,421 783,955 719,918 744,978 1,233,465 1,152,875 1,286,753 1,379,332 1,682,431 1,997,082
Investment income 1,512,898 742,444 253,302 143,564 107,195 92,118 57,880 105,443 237,949 385,769
DEA revenues 26,580 14,883 15,350 6,589 12,488 3,571 15,316 39,292 18,274 9,994
Intergovernmental 353,567 379,503 376,512 377,660 1,012,673 2,839,545 461,484 906,695 507,966 1,490,142
Rents and royalties - - 1,620,210 1,233,686 1,111,873 1,024,021 1,390,283 637,196 612,365 628,486
Other revenues 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 1,996,374
Total Revenues 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 68,180,435
Expenditures:
Culture and recreation 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 6,324,436
Development services 1,232,277 1,355,105 1,251,706 1,340,898 688,296 806,275 1,017,903 882,212 862,571 931,119
General and administrative 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 18,985,489
Highways and streets 943,171 861,885 610,996 713,742 861,748 1,144,223 1,351,404 1,606,372 1,688,714 1,616,714
Public safety 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 26,068,993
Debt Service:
Principal 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 3,848,825
Interest and fiscal charges 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 1,516,936
Issuance costs - - 95,000 178,229 184,966 26,064 - - - -
Capital outlay 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 10,600,631
Totalexpenditures 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 69,893,143
Excess(deficiency)of revenues
over(under)expenditures (162,799) (778,469) (3,379,711) (1,974,627) (2,462,988) (3,805,368) 867,230 (3,676,163) (7,685,189) (1,712,708)
Other Financing Sources(Uses):
Capital lease - - - 494,322 - 1,446,603 - - - 249,370
Issuance of debt - - 8,110,000 9,610,000 9,740,000 1,160,000 - 11,400,000 20,760,000 -
Payment of escrow fbrreftinding - - (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 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 8,845,061
Transfers out (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) (11,177,666)
Total other financing sources (1,237,140) (134,697) (474,097) 4,370,093 5,084,754 1,934,683 157,304 5,590,863 19,548,351 (2,083,235)
Net change in fiord balances $ (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 $ (3,795,943)
Debt service as a percentage
ofnoncapitalexpenditures 11.4% 11.4% 11.9% 11.6% 18.5% 10.1% 12.1% 9.9% 9.2% 9.0%
Source: Comprehensive Annual Financial Reports
129
CITY OF EULESS, TEXAS
ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY—LAST TEN FISCAL YEARS
(Unaudited)
Table 5
Estimated Value Total
Less: Direct
Fiscal Real Personal Total Tax-Exempt Total Taxable Tax
Year Property Property Value Property Value Rate
2008 2,438,826,320 464,735,670 2,903,561,990 320,650,590 2,582,911,400 0.470000
2009 2,477,673,867 508,213,527 2,985,887,394 325,886,654 2,660,000,740 0.470000
2010 2,470,282,654 449,954,489 2,920,237,143 330,392,987 2,589,844,156 0.470000
2011 (1) 2,473,997,250 390,731,885 2,864,729,135 341,730,427 2,522,998,708 0.470000
2012 2,610,172,289 389,778,962 2,999,951,251 348,227,246 2,651,724,005 0.470000
2013 2,661,959,213 445,909,463 3,107,868,676 351,726,906 2,756,141,770 0.470000
2014 2,759,268,619 461,065,240 3,220,333,859 356,283,956 2,864,049,903 0.470000
2015 2,920,206,326 509,189,960 3,429,396,286 369,393,032 3,060,003,254 0.467500
2016 3,352,029,682 513,118,652 3,865,148,334 410,557,810 3,454,590,524 0.467500
2017 3,470,371,005 531,751,946 4,002,122,951 450,853,105 3,551,269,846 0.462500
Source: Tarrant Appraisal District
(1) Amounts prior to 2011 are shown at market value and amounts from 2011 forward are shown at appraised value.
130
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES (per$100 of Assessed Value)-LAST TEN FISCAL YEARS
(Unaudited)
Table 6
City Direct Rates Overlapping Rates
General Tarrant County
Fiscal Operating/ Obligation Debt Hurst-Euless- Grapevine- Tarrant County Community
Year General Rate Service Total Direct Rate Bedford ISD Coffeyville ISD Tarrant County Hospital District College
2008 0.340341 0.129659 0.470000 1.3037 1.2900 0.2665 0.2304 0.1394
2009 0.351937 0.118063 0.470000 1.2950 1.2900 0.2640 0.2279 0.1380
2010 0.360791 0.109209 0.470000 1.2955 1.2900 0.2640 0.2280 0.1377
2011 0.343905 0.126095 0.470000 1.2882 1.2900 0.2640 0.2279 0.1376
2012 0.345388 0.124612 0.470000 1.4140 1.3100 0.2640 0.2280 0.1490
2013 0.355130 0.114870 0.470000 1.4075 1.3201 0.2640 0.2279 0.1490
2014 0.360619 0.109381 0.470000 1.3875 1.3201 0.2640 0.2279 0.1495
2015 0.364505 0.102995 0.467500 1.3750 1.3201 0.2640 0.2279 0.1495
2016 0.366571 0.100929 0.467500 1.3500 1.3201 0.2640 0.2279 0.1495
2017 0.363053 0.099447 0.462500 1.3160 1.3967 0.2540 0.2279 0.1447
Sources: City of Euless Budget Office,Tarrant Appraisal District
131
CITY OF EULESS, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited)
Table 7
Fiscal Year 2017 Fiscal Year 2008
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value(1) Taxpayer Value Value(2)
Ean Holdings,LLC $ 86,646,346 2.44 % Avis Budget Group,LLC $ 72,277,544 2.80 %
CH Realty VI/MF Colleyville 2801 LP 72,630,000 2.05 Hertz Corp 62,247,645 2.41
Westdale Hills 2013 LP 67,629,899 1.90 Vanguard Car Rental USA,Inc. 61,184,876 2.37
TX Apt 2525 Texas 360 LP 61,170,000 1.72 IRA Stoneleigh FEECO LLC 39,469,294 1.53
Stoneleigh at Bear Creek Apts. 54,489,998 1.53 Colonial Realty LP 37,400,000 1.45
Star Monticello LLC 52,200,000 1.47 TXU Electric Delivery Co. 37,026,203 1.43
CMF 15 Portfolio LLC 50,203,700 1.41 AT&T Mobility 34,397,589 1.33
LSREF3 Bravo(Dallas)LLC 48,000,000 1.35 Somerset Village Partners LP 30,299,136 1.17
Star Kensington LLC 46,200,000 1.30 Seramont II LP 29,611,000 1.15
Avis Budget Car Rental LLC 40,173,004 1.13 Western Rim Investors 1994-3 25,302,710 0.98
Total $ 579,342,947 16.30 % Total $ 429,215,997 16.62 %
Source: Tarrant County Tax Office
Note:
(1) Total Taxable Value including real and personal property for tax year 2016(fiscal year 2017)is$3,551,369,846.
(2) Total Taxable Value including real and personal property for tax year 2007(fiscal year 2008)is$2,582,911,400.
132
CITY OF EULESS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS —LAST TEN FISCAL YEARS
(Unaudited)
Table 8
Collected within the
Taxes Levied Adjustments Adjusted Fiscal Year of the Levy Total Collection Delinquent Taxes
Within the to Levy in Taxes Levied Collections
Fiscal Fiscal Year Subsequent for the Percentage in Subsequent Percentage Percentage
Year of the Levy Years Fiscal Year Amount of Levy Years Amount of Levy Amount of Levy
2008 12,083,956 (39,312) 12,044,644 11,986,396 99.52% 48,322 12,034,718 99.92% 9,926 0.08%
2009 12,747,343 (125,503) 12,621,840 12,556,281 99.48% 24,638 12,580,919 99.68% 40,921 0.32%
2010 12,318,061 (12,857) 12,305,204 12,182,266 99.00% 112,068 12,294,334 99.91% 10,870 0.09%
2011 11,796,659 (39,581) 11,757,078 11,637,719 98.98% 106,905 11,744,624 99.89% 12,454 0.11%
2012 12,436,816 (89,517) 12,347,299 12,252,510 99.23% 78,338 12,330,848 99.87% 16,451 0.13%
2013 12,926,215 (222,077) 12,704,138 12,648,635 99.56% 37,831 12,686,466 99.86% 17,672 0.14%
2014 13,426,248 (68,959) 13,357,289 13,303,694 99.60% 33,427 13,337,121 99.85% 20,168 0.15%
2015 14,245,865 (191,969) 14,053,896 14,049,020 99.97% (17,018) 14,032,002 99.84% 21,894 0.16%
2016 13,671,980 870,252 14,542,232 14,481,033 99.58% 25,502 14,506,535 99.75% 35,697 0.25%
2017 15,828,162 443,814 16,271,976 16,191,555 99.51% - 16,191,555 99.51% 80,421 0.49%
Source: Tarrant County Tax Office and Tarrant Appraisal District
133
CITY OF EULESS, TEXAS
RATIO OF OUTSTANDING DEBT BY TYPE —LAST TEN FISCAL YEARS
(Unaudited)
Table 9
Governmental Activities Business-Type Activities
Premiums/ Premiums/
Taxable Discounts General Discounts
General Certificates Certificates Sales Tax on Debt Issues W&S Drainage Obligation on Debt Issues Total Percentage
Fiscal Obligation of of Tax Revenue Capital and Losses on Revenue Revenue Refunding and Losses on Primary of Personal Per
Year Bonds Obligation Obligation Notes Bonds Leases Refundings(1) Bonds Bonds Bonds Refimdings(1) Government Income(3) Capita(3)
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 94,196 622,367 (2) 4,285,0006,915,000 237,146 (2) 40,178,709 2.53% $ 731
2015 20,655,000 8,365,000 285,000 994,148 (2) 10,940,000 - 6,320,000211,601 (2) 47,770,749 2.98% $ 884
2016 17,425,000 27,710,000 - 1,280,000 120,000 - 1,497,876 (2) 10,305,000 - 5,695,000186,063 (2) 64,218,939 3.94% $ 1,184
2017 14,490,000 27,350,000 - 860,000 75,000 160,545 1,099,640 9,540,000 - 5,240,000 168,446 58,983,631 3.62% $ 1,075
Note: Details regarding the City's outstanding debt can be found in the notes to the Financial Statements.
(I)Column added to table in 2016;prior year figures have been restated to include amounts reflected.
(2)In 2014,losses on refundings were reclassified to Deferred Inflows of Resources on the balance sheet. Fiscal years 2014 through 2016 have been restated to exclude the losses from the calculations.
(3)See Table 14 for personal income and population data.
134
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
General Bonded Debt Outstanding
Premiums/
Discounts
General Certificates on Debt Issues Less:Debt Net 0/S Net Debt Net General
Fiscal Obligation of Tax and Losses on Capital Service Debt Estimated Taxable to Taxable Debt Per
Year Bonds Obligation Notes Refundings(1) Leases Reserves Total Population(2) Value(3) Value Capita
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 - 883,948 (5) 94,196 796,454 33,946,690 53,780 2,864,049,903 1.19% $ 631
2015 '") 26,975,000 8,365,000 - 1,228,901 0 - 813,841 35,755,060 54,050 3,060,003,254 1.17% $ 662
2016 23,120,000 27,710,000 1,280,000 1,446,619 0 - 1,056,021 52,500,598 54,250 3,454,590,524 1.52% $ 968
2017 19,730,000 27,350,000 860,000 1,288,664 160,545 1,398,495 47,990,714 54,870 3,551,269,846 1.35% $ 875
Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Total does not include revenue bonds.
Source: (1) 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.
(5) Due to balance sheet reclassification to Deferred Inflows of Resources,losses on refundings have been removed from fiscal years 2014 to 2016.
135
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2017
(Unaudited)
Table 11
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable Debt
Debt repaid with property taxes
Grapevine-Colleyville Independent School District $ 438,049,452 8.82% $ 38,635,962
Hurst-Euless-Bedford Independent School District 412,119,890 21.06% 86,792,449
Tarrant County 321,795,000 2.53% 8,141,414
Tarrant County Hospital District 20,835,000 2.53% 527,126
Tarrant County College District - 2.53% -
Subtotal, overlapping debt 134,096,951
Debt repaid with property taxes
City of Euless (direct debt) 43,435,983 100.00% 43,435,983
Total direct and overlapping debt repaid with property taxes $ 177,532,934
Notes: The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were
estimated by determining the portion of another governmental unit's taxable value that is within the City's boundaries and
dividing it by each unit's total taxable value.
The current year calculation of direct debt includes all general governmental activities debt excluding sales tax
revenue 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.
136
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS —LAST TEN FISCAL YEARS
(Unaudited)
Table 12
Less Interest
Total Operating Net and
Fiscal Revenues Expenses Revenue Fiscal Coverage
Year (1) (2) Available Principal Charges Total Ratio
2008 16,369,368 14,722,644 1,646,724 235,000 191,228 426,228 3.86
2009 16,594,856 13,722,593 2,872,263 245,000 180,820 425,820 6.75
2010 17,475,984 14,799,879 2,676,105 255,000 171,452 426,452 6.28
2011 20,148,834 15,952,372 4,196,462 270,000 161,333 431,333 9.73
2012 18,714,408 15,824,724 2,889,684 90,000 105,785 195,785 14.76
2013 19,399,314 16,660,397 2,738,917 330,000 82,110 412,110 6.65
2014 19,729,539 18,269,093 1,460,446 405,000 122,229 527,229 2.77
2015 21,182,560 17,879,209 3,303,351 410,000 129,703 539,703 6.12
2016 24,311,965 18,625,302 5,686,663 635,000 181,747 816,747 6.96
2017 24,353,525 19,249,699 5,103,826 765,000 175,682 940,682 5.43
Notes: (1) Operating and nonoperating revenues of water and wastewater fund
(2) Total operating expenses of water and wastewater fund exclusive of depreciation and amortization
137
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE DRAINAGE UTILITY BONDS-LAST TEN FISCAL YEARS
(Unaudited)
Table 13
Less Interest
Total Operating Net and
Fiscal Revenues Expenses Revenue Fiscal Coverage
Year (1) (2) Available Principal Charges Total Ratio
2008 736,433 298,712 437,721 190,000 21,565 2l 1,565 2.07
2009 714,250 286,741 427,509 200,000 14,417 214,417 1.99
2010 700,827 457,376 243,451 210,000 8,400 218,400 1.11
2011 699,709 519,622 180,087 - - - n/a
2012 707,165 604,994 102,171 - - - n/a
2013 711,154 567,215 143,939 - - - n/a
2014 715,800 663,625 52,175 - - - n/a
2015 717,763 581,364 136,399 - - - n/a
2016 812,399 666,628 145,771 - - - n/a
2017 741,055 629,112 111,943 - - - n/a
Notes: (1) Operating and nonoperating revenues of drainage utility fund
(2)Total operating expenses of drainage utility fund exclusive of depreciation and amortization
138
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS —LAST TEN FISCAL YEARS
(Unaudited)
Table 14
Per Personal
Estimated Capita Income School Unemployment
Fiscal Population Income (thousands Median Age Enrollment Rate
Year (1) (2) of dollars) (2) (3) (4)
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%
2017 54,870 $ 29,730 $ 1,631,285 34.9 23,425 3.2%
Notes: 1. Estimates by North Central Texas Council of Governments
2. Estimates by Claritas Site Reports;Research &Demographic Solutions; 2014 forward from US Census Bureau
3. Hurst-Euless-Bedford Independent School District
4. Texas Workforce Commission; Bureau of Labor Statistics
139
CITY OF EULESS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited)
Table 15
2017 2008
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employer Employees Employment
LSG Sky Chefs, Inc. 900 4.08% HEB ISD 817 3.21%
HEB ISD 809 3.66% LSG Sky Chefs, Inc. 800 3.14%
Autogrill Group, Inc. 450 2.04% City of Euless 390 1.53%
City of Euless 386 1.75% Autogrill Group, Inc. 325 1.28%
Redi Mix Concrete 187 0.85% Beall Concrete 250 0.98%
Life Outreach International 186 0.84% Super Target 200 0.78%
Target 175 0.79% Life Outreach International 186 0.73%
Lowe's 160 0.72% TJ Lambrecht Construction 185 0.73%
Legend Oaks Healthcare 145 0.66% Home Depot 140 0.55%
Lazy Dog 125 0.57% Lowe's 135 0.53%
Total 3,523 15.96% 3,428 13.46%
Source: City of Euless Planning and Development Department
140
CITY OF EULESS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM-LAST TEN FISCAL YEARS
(Unaudited)
Table 16
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Government
and Administration 54.50 54.50 50.00 48.50 48.50 48.50 48.50 48.00 49.50 50.00
Public Safety 126.00 126.00 118.00 121.00 129.00 132.00 135.00 136.00 136.00 136.00
Fire Safety 73.00 73.00 71.00 71.00 72.00 72.00 72.00 72.00 72.00 75.00
Development Services 12.00 12.00 11.50 13.50 6.00 6.00 7.50 7.50 7.50 8.00
Culture and Recreational 36.00 36.00 30.00 31.00 32.00 30.50 33.25 34.25 34.25 35.25
Water and Wastewater 50.00 50.00 46.00 42.00 42.50 42.00 42.00 42.00 42.50 42.50
Golf Course 15.25 17.25 13.00 13.00 13.00 12.00 10.75 11.75 11.75 11.75
Public Works 15.75 15.75 14.00 17.50 18.50 18.50 18.50 20.00 20.00 21.00
Service Center 6.00 6.00 5.00 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 390.00 392.00 360.00 364.00 368.00 368.00 374.00 378.00 380.00 386.00
Source: City Budget Office
141
CITY OF EULESS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM-LAST TEN FISCAL YEARS
(Unaudited)
Table 17
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Public Safety
Police
Number of Certified Officers 85 85 85 85 85 87 92 92 92 87
Number of Citations Issued 26,503 29,925 24,126 21,790 22,787 26,356 25,500 24,573 18,483 25,061
Fire
Number of Certified Firefighters 71 70 69 69 70 70 70 70 70 72
Number of Alarms 4,197 3,827 4,097 4,196 4,204 4,296 4,505 4,686 4,770 4,678
Number of EMS Calls 2,688 2,634 2,793 2,848 2,982 3,108 3,230 3,424 3,431 3,772
Municipal Court
Cases Filed 30,551 33,670 31,442 27,022 26,889 32,192 31,172 28,885 25,957 25,061
Development
Number Residential Inspections-New 77 100 101 52 44 42 107 176 186 176
Number Couuirrcial Inspections-New 28 16 14 11 29 16 29 33 15 36
Number Multifamily Inspections-New 0 0 0 0 0 0 1 1 0 0
Public Works
Street Overlay(Square Footage) 999,285 797,326 770,380 953,406 368,654 540,613 631,260 430,504 1,156,833 1,549,065
Cultural and Recreational
Parks and Recreation
Recreation Center Memberships 3,944 3,703 2,443 4,337 3,654 5,137 6,261 6,742(1) 6,975 6,528
Water and Wastewater
Number of Water Consumers 24,608 24,677 24,760 24,924 24,428 25,039 25,319 26,014 25,812 25,970
Water Produced(In Gallons x 1000) 348,548 730,291 579,154 477,914 299,107 416,843 380,864 741,225 540,921 439,255
Water Purchased-TRA(In Gallons x 1000) 2,291,974 1,955,535 2,028,760 2,566,370 2,440,539 2,133,211 2,154,469 1,628,651 1,787,547 1,766,692
Water Supplied(In Gallons x 1000) 2,640,522 2,685,826 2,607,914 3,044,284 2,739,646 2,550,054 2,535,333 2,369,876 2,328,468 2,205,947
Annual Rainfall(In Inches) 27.10 36.32 38.65 22.26 36.57 24.41 23.98 44.45 53.16 34.96
Golf Course
Number of Paid Rounds Played 36,528 43,029 32,996 35,075 34,550 35,890 22,110(2) 33,735 32,852 33,237
Source: City Departments
Comprehensive Annual Financial Report
City Budget Office
Notes:
(1) Amount restated to include recreation,aquatic and senior memberships.
(2) Golf course closed for 3'/2 months for renovations in 2014.
142
CITY OF EULESS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM-LAST TEN FISCAL YEARS
(Unaudited)
Table 18
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Fire Stations 3 3 3 3 3 3 3 3 3 3
Public Works
Streets-Paved(1) 217.6 217.6 217.6 332.1 332.4 333.36 340.62 342.80 344.77 350.12
Cultural and Recreational
Swimming Pools 3 3 3 3 3 4 3 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 6 6 6 6 6 6 6
Ampitheater 2 2 2 2 2 2 3 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 33 33 33 33 28 28 30 30
LlbraryHoldings 101,672 103,122 106,121 110,149 111,230 111,312 105,500 98,596 101,160 85,123
Water and Wastewater
Water Mains-Potable(5) 226.80 226.80 228.20 228.50 227.99 231.06 232.28 234.84 235.50 236.30
Water Mains-Reclaimed(5) - - - - - 1.73 3.22 3.70 3.82 3.96
Fire Hydrants 1,477 1,477 1,525 1,526 1,550 1,579 1,633 1,648 1,674 1,719
Wastewater Mains(5) 186.3 186.3 186.5 186.7 187.6 187.6 191.3 192.4 193.2 195.2
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.
143