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Comprehensive Annual Financial Report
Fiscal Year Ending September 30, 2018
201 N. Ector Drive, Euless, TX 76039 www.eulesstx.gov
THE CITY OF
City of Euless, Texas
Comprehensive Annual Financial Report
Fiscal Year Ending
September 30, 2018
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 30,2018
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 Contributions—Pension(Texas Municipal Retirement System) 83
Schedule of Changes in Net OPEB Liability and Related Ratios 84
Schedule of Contributions—OPEB Trust 85
Budgetary Comparison Schedule—General Fund 86-87
Budgetary Comparison Schedule—Car Rental Special Revenue Fund 88
Notes to Required Supplementary Information 89
Combining and Individual Fund Statements and Schedules
Non-Major Governmental Funds
Combining Balance Sheet 94-97
CITY OF EULESS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2018
CONTENTS - CONTINUED
Page(s)
Combining and Individual Fund Statements and Schedules - Continued
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances 98-101
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
Midtown Public Improvement District Special Revenue Fund 110
Cable PEG Fees Special Revenue Fund 111
Internal Service Funds
Combining Statement ofNet Position 113
Combining Statement of Revenues, Expenses, and Changes in Net Position 114
Combining Statement of Cash Flows 115
Escrow Agency Funds
Combining Statement of Changes in Assets and Liabilities 116
STATISTICAL SECTION (Unaudited) Table
Net Position by Component 1 120
Changes in Net Position 2 121-122
Fund Balances, Governmental Funds 3 123
Changes in Fund Balances, Governmental Funds 4 124
Estimated Actual Value of Taxable Property 5 125
Direct and Overlapping Property Tax Rates 6 126
Principal Property Tax Payers 7 127
Property Tax Levies and Collections 8 128
Ratio of Outstanding Debt by Type 9 129
Ratio ofNet General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita. 10 130
Direct and Overlapping Governmental Activities Debt 11 131
Schedule of Revenue Bond Coverage Water and Wastewater Bonds 12 132
Schedule of Revenue Bond Coverage Drainage Utility Bonds 13 133
Demographic Statistics 14 134
Principal Employers 15 135
Full-time Equivalent City Government Employees by Function/Program 16 136
Operating Indicators by Function/Program 17 137
Capital Asset Statistics by Function/Program 18 138
INTRODUCTORY SECTION
THE CITY OF
T H E CITY OF
EuLESS
February 26, 2019
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, 2018. 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, 2018, 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, 2018, 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.
i
201 N.Ector Drive,Euless TX 76039-3595
817/685-1400 Metro 817/267-4403 Fax 817/685-1416
www.eulesstx.gov
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 16.2 square
miles and serves a population of approximately 55,170.
The City of Euless was incorporated February 24, 1953 and is a home rule city operating under a
Council/Manager form of government. The City Council is comprised of the mayor and six
council members who are elected at large. The Council has the authority to enact local
legislation, levy taxes, adopt budgets, determine policies, incur debt, and appoint the City
Secretary, City Attorney, Municipal Court Judge, and the City Manager. The City Manager
reports directly to the City Council, and is responsible for the daily management of the various
City departments. Council members serve three-year staggered terms, with two council
members elected each year. The Mayor is elected to serve a three-year term. In addition, several
boards and commissions were created to assist the City Council in deciding matters of policy and
procedure and meet on various issues throughout the year.
The City of Euless provides a full range of services to its citizens including: police and fire
protection; emergency ambulance services; municipal court operations; development and code
services; construction and maintenance of streets and highways, parks, and recreational facilities;
water service and wastewater collection and treatment; and library operations. The City also
operates a top-ranked, 18-hole golf course and conference center, an adult softball facility, youth
athletic complex, and an aquatics center. Internal services of the City account for risk
management, equipment replacement, and employee insurance coverage activities on a cost
reimbursement basis. Private contractors, through 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 in
and presented as special revenue funds in 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 Pt 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 fourth largest airport in terms of
operations and twelfth largest in terms of passengers in the world, handling over 65 million
passengers a year. DFW Airport reports service is provided to 244 destinations. Furthermore,
the airport reports economic activity across North Texas 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 7.4 million, a Gross Metro Product of$511.6 billion, a labor force
of over 3.9 million, a 2.8% 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 a 26,000-acre master-planned, mixed-
use community which is home to more than 480 companies, 48,000+ employees, and is anchored
by the inland port known as the Alliance Global Logistics Hub. This area offers a variety of
commercial real estate options, industrial space, office space, and retail facilities and had a $4.73
billion annual impact in North Texas in 2017 (www.allianceairport.com, Alliance Texas Facts).
Taxable value for all residential and commercial property in the City of Euless is estimated at
approximately $4.4 billion for tax year 2018, which is a 10.3% increase from the prior year, due
to increases in both residential and commercial real estate property values. Sales tax collections
decreased during FY2017-18. 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 525 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 has been completed
or is 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 annual Cotton Bowl
game.
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 the water and wastewater line relocations for Phase II of the
SH183 expansion, Phase II wastewater line replacement in Oakwood Terrace, signal installation
at Harwood and Bear Creek, FY2018 street improvements, several property purchases, and the
Glade Parks Trail Connection.
Population with a median age of 34.9 years (U.S. Census Bureau American Fact Finder 2016)
has increased from 54,200 to 55,170 in ten years. The City's median household income is
$58,606, which compares favorably to $54,727 for the State of Texas (U.S. Census Bureau
American Fact Finder 2016). The educational level is 89.5% high school graduate or higher
(U.S. Census Bureau American Fact Finder 2016).
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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.
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 117 days of operations which equates to
approximately 32% 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, 2018, the revenue
bond reserve totaled $682,366 which meets the required average annual debt service per bond
covenants.
Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. rates the
City's general obligation debt and sales tax revenue debt at AA and the water and wastewater
revenue debt at AA+. Moody's Investor Service, Inc. rates the general obligation debt and water
and wastewater revenue debt at Aa2. Additional information 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 these partnerships, 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 2018, several street overlay projects were completed in accordance with Pavement
Condition Index scoring. Fiscal Year 2019 will continue this program as well as begin the
construction phase of the street reconstruction project that includes portions of Fuller Wiser
Road and Bear Creek Parkway. Additionally, the design phase of the FY2019 street
reconstruction project that includes portions of West Pipeline Road, South Pipeline Road,
Harwood Road, and Mills Drive will begin.
The design/engineering work on Phase III of the Reclaimed Water Line is in progress. The
construction phase is scheduled to begin in Fiscal Year 2019. Water well replacement design
work is underway for the Fuller and Far North wells. The City will seek additional low interest
financing from the Texas Water Development Board to complete the well replacement project.
Replacement of the wastewater lines in Cedar Hills North and Oakwood Terrace Phase III is
scheduled for 2019. The water line located along Kynette Drive is scheduled for replacement in
the upcoming year as well.
Glade Parks Trail Connection was completed prior to the end of the fiscal year. Library remodel
design is underway and the construction phase began in early 2019 and is scheduled for
completion in the spring of 2020.
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
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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. The infrastructure
improvements were completed in fiscal year 2015. Over the last several fiscal years, numerous
businesses opened in this development creating increased property values and retail sales. The
single family residential component continues to add value to the property tax base as well. 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 was
completed in early FY2019.
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. At the end of FY2018,
Lennar has completed construction of 415 homes and has thirty-two lots remaining in the three
active subdivisions. The NRP Group 200 unit urban loft project was completed in early FY 2019.
The City also approved a 56-acre mixed-use development called Founders Parc, 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, 285 urban lofts, and over 57,000 square feet of retail and commercial 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 were completed in
FY2018.
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, 2017. 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 31 consecutive years. We believe that the current
CAFR meets the Certificate of Achievement program requirements and are submitting it to
GFOA for review.
vii
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 27 years. In order to qualify for the award, the City's budget document was
judged to be proficient in several categories, including as a policy document, a financial plan, an
operations guide, and a communications device.
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of the entire staff of the Finance Department. Appreciation is
expressed to City employees throughout the organization, especially those who were
instrumental in the successful completion of this report.
We would like to thank the Mayor and members of the City Council for their support in planning
and conducting the financial operations of the City in a responsible, professional, and
progressive manner. As always, the City of Euless staff welcomes and appreciates your
comments.
Respectfully Submitted,
i‘9
Loretta Getchell Janina Jewell
City Manager Director of Finance
viii
CITY OF EULESS
FISCAL YEAR 2 017-2018
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THE CITY
EUU LESS
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LINDA MARTIN, MAYOR
Tim Stinneford, Place One, Mayor Pro Tern
Jeremy Tompkins, Council Member - Place Two
Eddie Price, Council Member - Place Three
Linda Eilenfeldt, Council Member - Place Four
Harry Zimmer, Council Member - Place Five
Salman Bhojani, 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, 2017
0442444. P )fetiv:a
Executive Director/CEO
xi
THE CITY OF
BuLEss
xii
FINANCIAL SECTION
xiii
THE CITY OF
EuLEss
xiv
weaver Austin I Conroe I Dallas I Fort Worth I Houston
Los Angeles I Midland I New York City I San Antonio
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, 2018, 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.
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,
2018, 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.
1 Weaver and Tidwell, L.L.P.
2300 North Field Street,Suite 1000 I Dallas,Texas 75201
Main:972.490.1970 I Fax:972.702.8321
CPAs AND ADVISORS I WEAVER.COM
The Honorable Mayor,
City Council and City Manager
Emphasis of Matter
As discussed in Note 13 to the financial statements, the City adopted the provisions of Government
Accounting Standards Board Statement No. 75, Accounting and Reporting for Postemployment Benefits
Other than Pensions, as of September 30, 2018. Our opinions are not modified with respect to this
matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, 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
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 21,
2019, 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.
6444,e1 Qn ,ge-,d+•d `D.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 21, 2019
3
THE CITY OF
EuLEss
CITY OF EULESS, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2018
(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, 2018. 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 119-138 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
$220,475,725 (net position). This number must be viewed in the context that the vast majority of the
City's net position of$175,993,392 (80%) is net investment in capital assets and that most capital
assets in government do not directly generate revenue nor can they be sold to generate liquid capital.
The net position restricted for specific purposes totaled $21,497,351 (10%). The remaining
$22,984,982 (10%) 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$11,758,647 and business-type
activities realized an increase in total net position of $4,219,878 bringing the total increase in net
position for the City to $15,978,525.
• At the close of the current fiscal year, the City of Euless' governmental funds reported combined
ending fund balances of$49,418,649 which represents an increase of$10,993,183. Within this total,
$2,765,013 is restricted for debt service; $7,503,695 is restricted by bond covenant for capital
projects; $123,067 and $269,506 are restricted for court technology and juvenile case management,
respectively; and another $2,268,071 is restricted for capital projects by developer agreements.
Amounts restricted for cable PEG fees and historical preservation total $690,396 and $1,245,
respectively. Nonspendable fund balance of $63,836 represents fund balance amounts for
inventories and prepaid items. Fund balances of$21,477,997 represent assigned fund balance in the
5
general, special revenue, and capital projects funds. The unassigned fund balance in the General
Fund of $14,255,823 can be used for any lawful purpose. The General Fund unassigned balance
represents 37% of fiscal year 2018 total fund expenditures.
• The City's total capital assets (net of accumulated depreciation) increased by $3,047,719 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 increased by $6.7 million or 11% due primarily to the issuance of
certificates of obligation, tax notes, and water and wastewater revenue bonds less scheduled
principal payments.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of Euless' basic financial
statements which are comprised of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other required
supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City of Euless' finances, in a manner similar to a private-
sector business.
The statement of net position presents information on all of the City of Euless' assets and deferred
outflows of resources and liabilities and deferred inflows of resources, with the difference between them
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City of Euless is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash receipts and cash outlays in future fiscal
periods (e.g.,uncollected taxes and earned but unused compensated absences).
The government-wide financial statements distinguish between functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general government and administration,
public safety, highways and streets, development, and culture and recreation. The business-type
activities of the City include water and wastewater system, drainage system, golf course, and other
recreational activities.
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.
The government-wide financial statements can be found on pages 18-19 of this report.
6
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, Car Rental Tax, and Street
CIP funds, all of which are considered to be major funds. Data from the other eighteen 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 course operations, as well as other recreational enterprises. Internal service funds are an accounting
device used to accumulate resources and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its equipment replacement, risk management, and
health insurance services. Because these services predominately benefit governmental rather than
business-type functions, a portion of the activities in these funds is included within governmental
activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for Water
and Wastewater, Drainage Utility, Golf Course, and Other Recreation Enterprises all of which are
considered to be major funds of the City. The internal service funds are combined into a single,
7
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 36-37 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 82-
89 of this report.
The combining statements referred to earlier in connection with non-major governmental 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 94-116 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$220,475,725 as of September 30, 2018.
The largest portion of the City's net position (80%) reflects its investment in capital assets (i.e., land,
buildings, equipment, improvements, construction in progress, and infrastructure) net of accumulated
depreciation, less any debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently these assets are not available for future
spending and with 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.
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 (10%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position of
$22,984,982 (10%) may be used to meet the City's ongoing obligations to citizens, creditors, and
employees.
8
Net Position
Governmental Business-type
Amounts shown in 000's activities activities Total
2018 2017* 2018 2017* 2018 2017*
Current and other assets $ 71,687 $ 59,823 $ 35,247 $ 26,932 $ 106,934 $ 86,755
Capital assets 153,752 150,353 75,257 75,609 229,009 225,962
Total assets 225,439 210,176 110,504 102,541 335,943 312,717
Deferred outflows 4,450 9,678 1,282 2,284 5,732 11,962
Long-term liabilities 73,470 78,173 20,930 21,229 94,400 99,402
Other liabilities 14,064 15,255 6,410 4,157 20,474 19,412
Total liabilities 87,534 93,428 27,340 25,386 114,874 118,814
Deferred inflows 5,325 1,155 1,001 213 6,326 1,368
Net position:
Net investment in capital
assets 112,710 113,509 63,283 62,421 175,993 175,930
Restricted 13,621 10,293 7,876 4,367 21,497 14,660
Unrestricted* 10,699 1,469 12,286 12,438 22,985 13,907
Total net position* $ 137,030 $ 125,271 $ 83,445 $ 79,226 $ 220,475 $ 204,497
*restated 9/30/17 balances for implementation of GASB Statement#75
As of September 30, 2018 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 2017.
In fiscal year 2018, the City implemented GASB Statement#75 Accounting and Financial Reporting for
Postemployment Benefits Other than Pensions. Implementation required the restatement of the prior
year net position for the government-wide financial statements as well as the enterprise statements.
Additional information concerning this change in accounting principles can be found in Note 13 in the
Notes to the Financial Statements.
The City's unrestricted net position increased by $9,078,013 in fiscal year 2018 as compared to the
unrestricted net position for the prior year as restated. Restricted net position realized an increase of
$6,837,493 and the amount invested in capital assets, net of related debt increased by $63,019. The
increase in total net position of almost $16 million results primarily from current year operating results
flowing to the unrestricted and restricted categories of net position. The increase in the net investment
in capital assets portion of net position primarily results from asset additions and unspent debt proceeds
outpacing current year depreciation expenses, asset disposals, and the scheduled payments on 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
2018 2017 2018 2017 2018 2017
REVENUES
Program revenues:
Charges for services $ 7,286 $ 7,200 $ 34,784 $ 31,325 $ 42,070 $ 38,525
Operating grants and
contributions 741 593 - - 741 593
Capital grants and
contributions 2,355 2,356 1,729 2,281 4,084 4,637
General revenues:
Property taxes 18,630 16,656 - - 18,630 16,656
Sales taxes 20,728 21,252 - - 20,728 21,252
Car rental taxes 14,776 14,402 - - 14,776 14,402
Mixed beverage taxes 154 128 - - 154 128
Occupancy taxes 865 799 - - 865 799
Gross receipts taxes 4,811 4,455 - - 4,811 4,455
Investment income 964 451 385 159 1,349 610
Rents and royalties 1,224 1,150 - - 1,224 1,150
Gain(loss)on asset
disposal - 125 3 57 3 182
Miscellaneous 773 756 - - 773 756
Total revenues 73,307 70,323 36,901 33,822 110,208 104,145
EXPENSES
Culture and recreation 7,071 7,349 - - 7,071 7,349
Development services 1,038 999 - - 1,038 999
General government 21,357 20,816 - - 21,357 20,816
Highways and streets 3,787 4,143 - - 3,787 4,143
Public safety 27,424 28,265 - - 27,424 28,265
Interest and fiscal charges 1,632 1,503 - - 1,632 1,503
Water and wastewater - - 23,226 21,674 23,226 21,674
Drainage utility - - 1,515 1,397 1,515 1,397
Golf course - - 4,764 4,633 4,764 4,633
Recreational enterprises - - 2,416 2,321 2,416 2,321
Total expenses 62,309 63,075 31,921 30,025 94,230 93,100
Increase(decrease)in net
position before transfers 10,998 7,248 4,980 3,797 15,978 11,045
Transfers 761 (234) (761) 234 - -
Increase(decrease)in net
position 11,759 7,014 4,219 4,031 15,978 11,045
Net position,beginning* 125,271 118,257 79,226 75,195 204,497 193,452
Net position ending $ 137,030 $ 125,271 $ 83,445 $ 79,226 $ 220,475 $ 204,497
*restated 9/30/17 balances for implementation of GASB Statement#75
• Governmental activities. Governmental activities increased the City's net position by $11,758,647
thereby accounting for most of the growth (74%) in total net position. Most revenue categories,
including property taxes, car rental taxes, occupancy taxes, gross receipts taxes, investment income,
charges for services, and operating grants and contributions, exceeded prior year receipts. Sound
10
fiscal management and close monitoring of revenues and expenses allowed the City to realize an
increase in governmental activities net position before transfers of$10,998,057.
Total revenue for the governmental activities (excluding transfers) increased from the previous year
by $2,983,831. General revenue, which is primarily comprised of property taxes, sales taxes, and
car rental taxes, realized a net increase of $2,750,989. Property tax revenue increased due to an
overall increase in taxable values of 12.6% over the prior year values. Sales tax collections
decreased as a result of a decline in taxable sales for several large taxpayers. Additionally, unusually
high rainfall throughout the year adversely impacted the construction sector sales tax collections.
New business openings and continued improvement in the local economy helped to partially offset
these declines. Car rental taxes realized an increase of nearly $375,000 over the prior year due to an
upswing in rentals at the consolidated car rental facility located at DFW Airport. Total
governmental program revenues, which consist primarily of charges for services, grants, and
contributions, net to an increase of $233,000. Charges for services account for approximately
$87,000 of this increase. The Midtown PID assessment for the current year accounts for the increase
in highways and streets program revenues of $381,000. Although development remained strong
throughout the year, development charges fell short of last year's revenues by $144,000. General
and administrative charges for services decreased by $91,000 due in large part to the decline in other
municipal court collections. Public safety charges for services decreased due to a decline in
restricted jail revenues of$110,000 combined with an increase in municipal court fines of$59,000.
The police department received$148,000 more in grant revenues in FY2018 than in the prior year.
Total expenses of governmental activities decreased by $767,000 from FY2017 to FY2018. The
raise package for employees included an increase of 2.5% which accounts for an increase in
expenses across all functions. Pension-related entries decreased expenses $270,000 primarily due to
the recording of changes in and amortization of deferred outflows and deferred inflows combined
with the decline in the net pension liability. OPEB-related expenses which includes the change in
the net OPEB liability, related deferred inflows and deferred outflows, as well as the amortization of
the deferrals decreased expenses by approximately $412,000. The allocation of internal service fund
activity decreased expenses compared to the prior year. 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
$78,000 and $31,000, respectively, due to depreciation charges. Approximately half of the decrease
in public safety expenses results from the internal service fund allocation. The net position of general
governmental operations accounts for 62% of total net position.
• Business-type activities. Business-type activities increased the City's net position by $4,219,878.
The change in net position before transfers is $4,980,468. Charges for services program revenues
for the business-type activities increased from the previous year by $3.5 million due primarily to
increased water and wastewater revenues. Capital grants and contributions decreased by $552,000
due to a reduction in developer contributions.
Some expense categories realized decreases for the year, but overall business-type expenses
increased 6.3%, 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. Pension entries reduced business-type expenses by
approximately $97,000 for the year, while OPEB-related entries decreased expenses $77,000. Net
position for business-type activities represents 38% of total net position.
11
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 $49,418,649, which represents an increase of $10,993,183 in comparison with prior
year. Approximately 29% or $14 million constitutes unassigned fund balance in the general fund that is
available for spending at the City's discretion. Another $63,836 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
($2,765,013); 2) to pay for specific capital improvements per developer agreements ($2,268,071); 3)
restricted by bond covenant for specific capital projects ($7,503,695); and 4) for a variety of other
restricted purposes ($1,084,214). 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 $21,477,997 and includes assigned fund balance in the general fund
of $121,708 and $21,356,289 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
$2,742,035 which was later revised to a drawdown of$6,010,946. Due to a positive budget variance in
overall revenues and expenditures, the General Fund ended the year with an increase to fund balance of
$1,105,225. This figure represents a positive revised budget variance of$7,116,171 resulting primarily
from the issuance of debt of approximately $3.3 million and expenditure savings of$3.7 million, before
transfers.
Several General Fund revenue categories realized increases over the prior year and surpassed budget
estimates as well. Gross receipts taxes, intergovernmental revenue, and investment income are in this
category. An increase in property values resulted in property tax collections surpassing prior year
revenues. However, current year collections fell short of budget expectations. Sales taxes also fell short
of budget estimates and prior year collections due to declines in the construction sector. Municipal court
fines,jail income, and ambulance fees fell short of budgetary parameters and failed to attain prior year
levels. Licenses and permits revenues exceeded budget estimates due to continued development and a
strong local economy. However, this revenue stream fell short of prior year receipts by$150,000.
Due to an anticipated shortfall in sales tax revenues, departments turned in budget reductions totaling
$1.36 million in the general fund. Personnel and related benefit budgetary savings of approximately $1.2
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 $88,000
remained unspent at the end of the year. Part-time salary expenses realized a favorable budget variance
of$145,000, while OPEB exceeded budget expectations by $12,000. In addition to overall salary and
benefit savings, general and administrative expenditures realized savings in capital, utilities, and other
purchased services as well as professional services. Maintenance expenditures exceeded budget
parameters by approximately $91,000 due primarily to HVAC repairs. Service fees exceeded
12
appropriations by just under $40,000 and water service went over budget by $21,000. The general and
administrative budget reduction totaled $734,000.
Aside from salaries and benefits, public safety expenditure savings were also noted in supplies of
$28,000; alarm fees of $16,000; and special services of $7,000. Jail food expenditures realized a
positive budget variance of$9,000 due to a reduction in federal detainees. Budget reductions for public
safety totaled $193,000. Savings in mowing services, maintenance, professional services, and supplies
are primarily responsible for the positive budget variance in culture and recreation. Budget reductions
of$83,000 were attained in culture and recreation. Development savings were realized in salaries and
related benefits and training and certifications. Budget reductions for development were $65,000 and
were $282,000 for streets and highways. Streets and highways also saw savings in salaries and related
benefits as well as capital outlay such as sidewalks, lighting, and signs and markings. One-time capital
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). Transfers out increased as a result of funding the City's portion of the
final phase of Glade Parks Improvements.
The Debt Service fund balance increased $515,646 which is $459,925 better than the revised budgeted
increase of $55,721. The positive variance results primarily from property tax collections and
investment income surpassing budgetary projections. Savings in expenditures resulted from reductions
in interest and issuance costs. The Car Rental Tax fund balance was originally anticipated to increase
$657,784, but rather ended the year with an increase of$1,720,934 resulting from an increase in net car
rental taxes and savings in capital outlay.
The non-major governmental funds realized a combined decrease in fund balance of$1,615,101; special
revenue funds contributed $346,460 in positive fund balance, while the capital projects funds declined
$1,961,561. Of the special revenue funds, the Glade Parks TIRZ#3 realized the largest increase in fund
balance in the amount of almost $390,000. The net decrease from CIP funds results primarily from
spending $3.6 million in previously-issued debt proceeds recorded in the TIRZ #4 Midtown CIP fund.
Conversely, the EDC, General and Redevelopment CIP funds realized increases in fund balances of$1.8
million primarily as a result of current year project funding. The Car Rental CIP fund decreased
combined fund balances by about $370,000; while Developers Escrow added approximately$177,000 to
fund balances. The combined net effect of these changes in governmental fund balances results in a
decrease of$1.6 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 $6,547,725; Drainage Utility fund $1,228,583; Golf Course fund $711,784; and Other
Recreation Enterprise fund $1,138,101. 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 7% and 4% higher than anticipated, respectively. Water
purchases exceeded budget parameters by approximately $407,000 resulting primarily from the
additional volume. However, wastewater costs were in line with budgetary expectations. The additional
volume is largely attributed to growth in the customer base. Impact fee revenues and developer
13
dedication of assets of$1.6 million contributed to the overall net income in the Water and Wastewater
fund.
The decrease in net position of the Drainage Utility fund results primarily from depreciation on drainage
infrastructure and capital assets. Net position for the Golf Course fund increased $185,709 due in large
part to transfers from other funds offsetting negative operating income and interest and fiscal charges.
Other Recreation Enterprises fund realized a decrease of $246,685 in net position. The combined net
effect of these changes in enterprise fund net position totals an increase of$4,035,248.
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, 2018, totaled $229,009,548 (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 $3,047,719 or about 1.3%.
Major capital asset activity that occurred during the current fiscal year included the following:
• Capital asset contributions were comprised of $65,000 in Community Development Block Grant
(CDBG) expenditures for ADA/TAS infrastructure improvements and developer asset dedications
totaling nearly $3 million in street infrastructure, land, water and wastewater facilities, and drainage
structures.
• Street improvement projects located throughout the City in the amount of approximately $711,000
were finalized during the year. The Glade Parks Trail was completed in fiscal year 2018 at a total
cost of$1.45 million.
• Capital asset additions for governmental activities include, but are not limited to, preparation of the
temporary library facility, police training simulator, Council chambers voting system, fire
equipment, wayfinding signs, traffic detection systems, and other scheduled annual vehicle and
equipment replacements.
• Construction-in-progress related to general government activity of$18,099,872 primarily consists of
Midtown infrastructure ($17.7 million), the Library Design project ($214,000), and the Municipal
Plaza($61,000).
• Phase II of the SH183 water and wastewater line relocations at a total cost of$1.4 million and the
Oakwood Terrace wastewater line replacement project were completed during the fiscal year.
• Capital asset additions for the business-type activities include, but are not limited to, upgrade to the
fuel island and outfield fencing at the Parks at Texas Star.
• Construction-in-progress related to business-type operations of$953,413 consists of Phase III of the
Reclaimed Water System Extension and the Well Replacement projects.
14
Capital Assets (Net of Accumulated Depreciation)
Governmental Business-type
Amounts shown in 000s activities activities Total
2018 2017 2018 2017 2018 2017
Land $ 32,539 $ 30,462 $ 3,618 $ 3,619 $ 36,157 $ 34,081
Buildings 35,616 36,620 1,676 1,800 37,292 38,420
Other improvements 8,811 7,669 10,033 10,566 18,844 18,235
M&E 10,094 10,064 2,131 2,438 12,225 12,502
Infrastructure 48,592 49,815 56,846 57,115 105,438 106,930
Construction in
Progress 18,100 15,722 953 72 19,053 15,794
Total $ 153,752 $ 150,352 $ 75,257 $ 75,610 $ 229,009 $ 225,962
Additional information on the City's capital assets can be found in Note 3 on pages 55-56 of this report.
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of
$63,338,753 net of unamortized losses on prior refundings. Of this amount, $51,874,427 comprises debt
backed by the full faith and credit of the government, including $8,510,474 which is self-supported debt
for Texas Star Golf Course and Stars Center. The remainder of the City's debt, $11,464,326, represents
bonds secured solely by specific revenue sources (i.e. revenue bonds).
Outstanding Bonded Debt
Governmental Business-Type
Amounts shown in 000s activities activities Total
2018 2017 2018 2017 2018 2017
GO bonds $ 11,460 $ 14,490 $ 4,770 $ 5,240 $ 16,230 $ 19,730
COs 35,660 27,350 - - 35,660 27,350
GO/CO deferred loss (417) (524) (417) (464) (834) (988)
Taxnotes 735 860 - - 735 860
Capital lease 84 161 - - 84 161
Revenue bonds 40 75 11,545 9,540 11,585 9,615
Revenue deferred loss (9) (19) (111) (130) (120) (149)
Totals $ 47,553 $ 42,393 $ 15,787 $ 14,186 $ 63,340 $ 56,579
In fiscal year 2018, the City issued $9.18 million in new certificates of obligation and $625,000 in tax
notes. Additionally, $2.785 million in water and sewer revenue bonds were issued utilizing the Texas
Water Development Board Clean Water State Revolving Fund. The fund also provided an additional
$473,300 in debt forgiveness proceeds. The City's total debt increased $6,672,549 or 12% during fiscal
year 2018 which is attributed to the addition of the new debt less scheduled annual principal payments
and annual amortization of premiums and discounts on debt issues.
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.
15
Economic Factors and Next Year's Budgets and Rates
In the FY2018-19 budget, General Fund revenues and transfers are budgeted to increase by 2% from the
2017-18 original budget. Property taxes account for 36% of budgeted revenues and sales taxes comprise
approximately 32% of budgeted revenues. Certified assessed valuations as of July 25, 2018 increased
10.3% from the preceding year.
In the FY2018-19 budget, sales tax receipts are projected to decrease 2% below the prior year budget.
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 2% from
the FY2017-18 original budget. This increase is partially attributed to the employee raise package and
related costs and the addition of a full-time street maintenance position. Funding for court technology,
computer hardware and software, HVAC maintenance, street maintenance, and the lease payment for the
police integrated camera and taser system has been included in the baseline budget. The City elected to
use excess reserves to cash flow capital programs including career preparation program in conjunction
with the local school district, continuation of the part-time fire inspector program, HVAC repairs and
upgrades, furniture and floor replacement at the Euless Family Life Center, aquatic park slide
resurfacing, public works yard reconstruction, and various facility maintenance items. In addition, the
FY2018-19 budget includes continued funding for the City's contribution to the Tarrant County Home
Program and community revitalization. The property tax rate remained at .46250 per $100 of assessed
valuation for FY2018-19.
For the Water and Wastewater Fund, the FY2018-19 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 $3.88 to $6.51 per thousand gallons. Monthly water base rates are increasing by 6.4% for
both residential and commercial customers. A wastewater volume charge of$4.27 per thousand gallons
applies to all customer classes and monthly base rates are increasing by 250. Residential wastewater
volume charges are capped at a maximum of 12,000 gallons per month. The City maintained the annual
funding for pay-as-you-go capital expenses in the Water and Wastewater Fund of$1,075,000. Funding
for Cedar Hill Estates North wastewater line replacement, Kynette Drive water line replacement, and
miscellaneous valve replacements is included in next year's budget. CDBG funding for Phase III of the
Oakwood Terrace wastewater line replacement is also included. One-time capital in the amount of
$125,000 is approved for an enclosed cab backhoe.
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 $4,636,280 and proposed operating expenses of
$4,620,972 comprise the FY2018-19 operating budget.
16
Request for Information
The financial report is designed to provide citizens, customers, investors, and creditors with a general
overview of the City's finances. If you have questions about this report or need additional information,
contact the Finance Department, Attn: Janina Jewell, Director of Finance, at 201 North Ector Drive,
Euless, Texas 76039, call (817) 685-1626, or e-mail jjewell@eulesstx.gov.
17
CITY OF EULESS, TEXAS
GOVERNMENT-WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2018
Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Deposits and investments $ 58,218,487 $ 20,388,798 $ 78,607,285
Receivables, net of allowances 8,336,895 4,037,937 12,374,832
Internal balances (2,660,126) 2,660,126 -
Inventories, at cost 9,247 260,611 269,858
Prepaid items 59,789 22,662 82,451
Restricted assets
Deposits and investments 7,722,288 7,876,358 15,598,646
Capital assets
Land and construction in progress 50,638,540 4,571,958 55,210,498
Other capital assets,net of
accumulated depreciation 103,113,549 70,685,501 173,799,050
Total assets 225,438,669 110,503,951 335,942,620
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 3,013,270 564,689 3,577,959
Deferred outflows related to OPEB 1,010,564 188,206 1,198,770
Deferred charges on refunding 426,314 528,781 955,095
Total deferred outflows ofresources 4,450,148 1,281,676 5,731,824
LIABILITIES
Accounts payable 11,594,100 3,480,160 15,074,260
Accrued liabilities 2,231,630 285,004 2,516,634
Accrued interest payable 238,379 65,936 304,315
Unearned revenue - 570,108 570,108
Money held in escrow - 2,008,149 2,008,149
Noncurrent liabilities
Due within one year 5,104,994 1,441,140 6,546,134
Due in more than one year 68,364,458 19,488,969 87,853,427
Total liabilities 87,533,561 27,339,466 114,873,027
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 538,268 100,247 638,515
Deferred inflows related to pension 4,786,994 900,183 5,687,177
Total deferred inflows ofresources 5,325,262 1,000,430 6,325,692
NET POSITION
Net investment in capital assets 112,710,338 63,283,054 175,993,392
Restricted for
Debt service 2,765,013 1,018,037 3,783,050
Capital projects 7,503,695 3,962,644 11,466,339
Impact fees - 2,895,677 2,895,677
Developer agreements 2,268,071 - 2,268,071
Court technology 123,067 - 123,067
Juvenile cases 269,506 - 269,506
Cable PEG fees 690,396 - 690,396
Historical preservation 1,245 - 1,245
Unrestricted 10,698,663 12,286,319 22,984,982
Total net position $ 137,029,994 $ 83,445,731 $ 220,475,725
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, 2018
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 $ 7,070,484 $ 252,000 $ 258 $ 88,424 $ (6,729,802) $ - $ (6,729,802)
Development services 1,038,328 1,875,120 - - 836,792 - 836,792
General and administrative 21,356,342 1,066,075 15,502 - (20,274,765) - (20,274,765)
Highways and streets 3,787,336 988,302 - 2,266,026 (533,008) - (533,008)
Public safety 27,424,253 3,104,895 725,209 - (23,594,149) - (23,594,149)
Interest and fiscal agent charges 1,632,302 - - - (1,632,302) - (1,632,302)
Total governmental activities 62,309,045 7,286,392 740,969 2,354,450 (51,927,234) - (51,927,234)
Business-type activities
Water and wastewater 23,225,786 27,504,814 - 1,611,398 - 5,890,426 5,890,426
Drainage utility 1,515,183 818,622 - 117,821 - (578,740) (578,740)
Golf course 4,764,095 4,337,003 - - - (427,092) (427,092)
Other recreation enterprises 2,416,337 2,123,825 - - - (292,512) (292,512)
Total business-type activities 31,921,401 34,784,264 - 1,729,219 - 4,592,082 4,592,082
Total primary government $94,230,446 $42,070,656 $ 740,969 $ 4,083,669 (51,927,234) 4,592,082 (47,335,152)
General Revenues
Taxes
Property taxes,levied for general purposes 18,630,301 - 18,630,301
Sales taxes 20,728,210 - 20,728,210
Car rental taxes 14,776,566 - 14,776,566
Mixed beverage taxes 154,035 - 154,035
Hotelmotel occupancy taxes 864,829 - 864,829
Gross receipts taxes 4,811,119 - 4,811,119
Investment income 963,670 385,513 1,349,183
Rents and royalties 1,223,788 - 1,223,788
Gain on sale of capital assets - 2,873 2,873
Miscellaneous 772,773 - 772,773
Transfers 760,590 (760,590) -
Total general revenues and transfers 63,685,881 (372,204) 63,313,677
Change in net position 11,758,647 4,219,878 15,978,525
NET POSITION,beginning of year,as restated(Note 13) 125,271,347 79,225,853 204,497,200
NET POSITION,end of year $137,029,994 $83,445,731 $220,475,725
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, 2018
Debt Car Streets Non-major Total
General Service Rental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
ASSETS
Deposits and investments $14,498,929 $1,912,030 $11,094,267 $ 3,504,695 $ 16,410,690 $ 47,420,611
Receivables
Property taxes 368,191 147,660 - - 23,604 539,455
Accounts receivable 1,026,651 9,435 - - 417,556 1,453,642
Accrued interest receivable 54,056 - 8,307 8,887 24,356 95,606
Due from other governments 2,294,415 - 2,499,611 - 1,377,015 6,171,041
Prepaids and deposits 42,162 - - - 12,427 54,589
Inventories,at cost 9,247 - - - - 9,247
Restricted deposits and investments 2,686 - - 6,118,932 1,594,916 7,716,534
Total assets $18,296,337 $2,069,125 $13,602,185 $ 9,632,514 $ 19,860,564 $ 63,460,725
LIABILITIES
Accounts payable $ 1,323,400 $ 7,288 $ 8,893,559 $ 17,105 $ 1,037,658 $ 11,279,010
Accrued liabilities 1,421,029 - - - 192,682 1,613,711
Accrued interest payable - 3,010 - - - 3,010
Total liabilities 2,744,429 10,298 8,893,559 17,105 1,230,340 12,895,731
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes 368,191 144,686 - - - 512,877
Unavailable revenue-other 629,024 - - - 4,444 633,468
Total deferred inflows of resources 997,215 144,686 - - 4,444 1,146,345
FUND BALANCES
Nonspendable
Prepaids,deposits,and inventories 51,409 - - - 12,427 63,836
Restricted for
Debt service - 1,914,141 - - 850,872 2,765,013
Capital projects 2,686 - - 6,118,932 1,382,077 7,503,695
Developer agreements - - - - 2,268,071 2,268,071
Court technology 123,067 - - - - 123,067
Juvenile case management - - - - 269,506 269,506
Cable PEG fees - - - - 690,396 690,396
Historical preservation - - - - 1,245 1,245
Assigned 121,708 - 4,708,626 3,496,477 13,151,186 21,477,997
Unassigned 14,255,823 - - - 14,255,823
Total fiord balances 14,554,693 1,914,141 4,708,626 9,615,409 18,625,780 49,418,649
Total liabilities,deferred inflows of resources,
and fund balances $18,296,337 $2,069,125 $13,602,185 $ 9,632,514 $ 19,860,564 $ 63,460,725
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, 2018
Total fund balances - governmental funds $ 49,418,649
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. 147,797,080
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. (235,369)
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. 13,243,587
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 1,146,345
Funds comprising the OPEB liability ($9,927,619), deferred inflows ($538,268)
and deferred outflows $1,010,564 of resources related to the OPEB are not
current financial resources and therefore are not reported in the governmental
funds balance sheet. (9,455,323)
Funds comprising the net pension liability ($12,280,508), deferred inflows
($4,786,994) and deferred outflows $3,013,270 of resources related to the
pension are not current financial resources and therefore are not reported in the
governmental funds balance sheet. (14,054,232)
Long-term liabilities, including bonds payable, deferred charges on refindings, and
compensated absences (excluding those of internal service funds) are not due and
payable in the current period and therefore are not reported in the fund financial
statements. (50,830,743)
Net position of governmental activities $ 137,029,994
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, 2018
Debt Car Streets Non-major Total
General Service Rental Tax CIP Governmental Governmental
Fund Fund Fund Fund Funds Funds
Revenues
General property tax $13,639,517 $4,000,125 $ - $ - $ 1,012,997 $ 18,652,639
Gross receipts tax 4,692,782 - - - 983,166 5,675,948
Mixed beverage tax 154,035 - - - - 154,035
General sales tax 12,698,602 - - - 8,029,607 20,728,209
Car rental tax - - 14,776,566 - - 14,776,566
Fines and fees 3,806,964 - - - - 3,806,964
Licenses and permits 1,847,315 - - - - 1,847,315
Investment income 256,724 107,132 137,758 94,316 225,712 821,642
DEA revenues - - - - 2,656 2,656
Intergovernmental 418,111 - - - 395,522 813,633
Rents and royalties - 553,200 - - 114,836 668,036
Other revenues 991,594 - - - 1,226,203 2,217,797
Total revenues 38,505,644 4,660,457 14,914,324 94,316 11,990,699 70,165,440
Expenditures
Current
Culture and recreation 3,230,048 - - - 3,142,487 6,372,535
Development services 748,329 - - - 287,949 1,036,278
General and administrative 9,132,243 - 9,817,396 - 840,382 19,790,021
Highways and streets 1,187,976 - - 34,929 - 1,222,905
Public safety 24,162,056 - - - 2,815,306 26,977,362
Debt service
Principal - 4,726,697 - - 35,000 4,761,697
Interest and fiscal charges - 1,581,296 - 79,730 1,373 1,662,399
Capital outlay 464,527 - - 587,709 5,787,628 6,839,864
Total expenditures 38,925,179 6,307,993 9,817,396 702,368 12,910,125 68,663,061
Excess(deficiency)of
revenues over(under)expenditures (419,535) (1,647,536) 5,096,928 (608,052) (919,426) 1,502,379
Other fmancing sources(uses)
Issuance of debt 3,268,911 628,176 - 5,907,913 - 9,805,000
Premiums on issuance of debt - 141,409 - 122,707 - 264,116
Proceeds from sale of assets 9,408 - - - 14,105 23,513
Transfers in 2,844,592 1,993,156 - 3,843,911 5,261,188 13,942,847
Transfers out (4,598,151) (599,559) (3,375,994) - (5,970,968) (14,544,672)
Total other financing sources(uses) 1,524,760 2,163,182 (3,375,994) 9,874,531 (695,675) 9,490,804
Net change in fund balances 1,105,225 515,646 1,720,934 9,266,479 (1,615,101) 10,993,183
Fund balances,beginning of year 13,449,468 1,398,495 2,987,692 348,930 20,240,881 38,425,466
Fund balances,end of year $14,554,693 $1,914,141 $4,708,626 $ 9,615,409 $ 18,625,780 $ 49,418,649
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, 2018
Net change in fund balances-total governmental funds $ 10,993,183
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. 6,839,864
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. 1,719,129
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 finds. (5,481,107)
The issuance of long-term debt provides current financial resources to governmental
funds,but has no effect on net position. (9,805,000)
The repayment of the principal of long-term debt consumes current financial resources of
governmental funds,but has no effect on net position. 4,761,697
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. (228,413)
Current year changes in the long-term liabilities for compensated absences do not require
the use of current financial resources;therefore,they are not reported as expenditures in
governmental funds. (105,100)
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. (49,633)
Changes in the OPEB 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. 411,859
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. 270,179
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and fleet management, to individual finds. The net revenue of the
internal service funds is reported with governmental activities net of the amount allocated
to business-type activities. 2,328,580
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. 103,409
Change in net position of governmental activities $ 11,758,647
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, 2018
Business -Type Activities -
Enterprise Funds
Water and Drainage
ASSETS Wastewater Utility
Current assets
Deposits and investments $ 16,228,256 $ 1,520,560
Accounts receivable and unbilled revenue
less allowance for uncollectibles of
$34,979 for water and wastewater and
$448 for drainage utility 3,651,362 99,899
Accrued interest receivable 63,840 -
Prepaids and deposits 1,500 -
Inventory 130,806 -
Total unrestricted current assets 20,075,764 1,620,459
Restricted deposits and investments
W&WW impact fees 2,895,677 -
Capital projects 3,962,644 -
Revenue bond reserve for debt service 1,018,037 -
Total restricted assets 7,876,358 -
Total current assets 27,952,122 1,620,459
Property,plant, and equipment in service, at cost
Land 1,576,667 559,826
Building 97,094 -
Equipment 1,591,571 10,380
Improvements 1,055,901 1,019,625
Construction in progress 953,413 -
Utility system 85,616,221 27,902,511
Total property, plant, and equipment in service 90,890,867 29,492,342
Less accumulated depreciation 43,957,332 14,962,320
Net property,plant, and equipment in service 46,933,535 14,530,022
Total non-current assets 46,933,535 14,530,022
Total assets 74,885,657 16,150,481
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension 427,991 43,037
Deferred outflows related to OPEB 139,057 15,584
Deferred charges on refunding 111,344 -
Total deferred outflows ofresources 678,392 58,621
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 -
Other Total Internal
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ 1,416,727 $ 1,223,255 $ 20,388,798 $ 10,797,876
195,483 27,353 3,974,097 47,793
- - 63,840 29,358
6,835 14,327 22,662 5,200
101,248 28,557 260,611 -
1,720,293 1,293,492 24,710,008 10,880,227
- 2,895,677 -
- 3,962,644 5,754
- - 1,018,037 -
- 7,876,358 5,754
1,720,293 1,293,492 32,586,366 10,885,981
897,520 584,532 3,618,545 -
3,621,666 488,275 4,207,035 -
663,825 1,704,826 3,970,602 13,602,771
8,652,077 10,444,294 21,171,897 -
953,413 -
- 113,518,732 -
13,835,088 13,221,927 147,440,224 13,602,771
7,608,060 5,655,053 72,182,765 7,647,762
6,227,028 7,566,874 75,257,459 5,955,009
6,227,028 7,566,874 75,257,459 5,955,009
7,947,321 8,860,366 107,843,825 16,840,990
79,356 14,305 564,689 -
28,770 4,795 188,206 -
417,437 - 528,781 -
525,563 19,100 1,281,676 -
25
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION—PROPRIETARY FUNDS
SEPTEMBER 30, 2018
Business -Type Activities -
Ente rpris a Funds
Water and Drainage
LIABILITIES Wastewater Utility
Current liabilities
Payable from current assets
Accounts payable $ 3,387,032 $ 3,190
Accrued salaries and wages 198,877 25,179
Current portion of bonds payable 915,000 -
Current portion of compensated absences 25,436 1,221
Accrued insurance claims - -
Unearned revenue 473,300 -
Accrued interest 50,845 -
Total current liabilities 5,050,490 29,590
Non-current liabilities
Customer and escrow deposits 1,920,252 Net pension liability 1,740,934 174,642
OPEB liability 1,366,079 153,095
Bonds payable 10,610,708 -
Compensated absences 228,921 10,990
Total non-current liabilities 15,866,894 338,727
Total liabilities 20,917,384 368,317
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 666,699 73,879
Deferred inflows related to OPEB 74,068 8,301
Total deferred inflows of resources 740,767 82,180
NET POSITION
Net investment in capital assets 39,481,815 14,530,022
Restricted for
Impact fees 2,895,677 -
Capital projects 3,962,644 -
Debt service 1,018,037 -
Unrestricted 6,547,725 1,228,583
Total net position $ 53,905,898 $ 15,758,605
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 -
Othe r Total Inte real
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ 68,132 $ 21,806 $ 3,480,160 $ 315,087
41,206 19,742 285,004 11,347
475,000 - 1,390,000 -
6,104 763 33,524 -
- - - 610,843
96,808 - 570,108 -
15,091 - 65,936 -
702,341 42,311 5,824,732 937,277
87,897 - 2,008,149 -
311,647 52,910 2,280,133 -
282,637 47,106 1,848,917 -
4,465,122 - 15,075,830 -
54,932 6,862 301,705 -
5,202,235 106,878 21,514,734 -
5,904,576 149,189 27,339,466 937,277
136,857 22,748 900,183 -
15,324 2,554 100,247 -
152,181 25,302 1,000,430 -
1,704,343 7,566,874 63,283,054 5,960,763
- - 2,895,677 -
- - 3,962,644 -
- 1,018,037 -
711,784 1,13 8,101 9,626,193 9,942,950
$ 2,416,127 $ 8,704,975 80,785,605 $ 15,903,713
2,660,126
$ 83,445,731
27
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION—
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2018
Business -Type Activities -
Enterprise Funds
Water and Drainage
Wastewater Utility
Operating revenues
Water service $ 14,272,800 $ -
Reclaimed water service 607,955 -
Wastewater service 9,498,280 -
Drainage fees - 818,623
Recreation fees - -
Insurance premiums - -
Service fees and miscellaneous 3,125,779 -
Total operating revenues 27,504,814 818,623
Operating expenses
General and administrative 496,414 -
Water production 8,112,473 -
Water distribution 1,205,851 -
Utility engineering 501,861 -
Wastewater collection and treatment 4,641,973 -
Nondepartmental 4,188,777 -
Geographic information systems 600,580 -
Service center 1,133,055 -
Drainage - 741,964
Recreation classes - -
Golf course - -
Pro shop - -
Food and beverage - -
Conference center - -
Cart operations - -
Texas Star Sports Complex - -
Arbor Daze - -
Insurance costs - -
Depreciation 2,125,842 773,219
Amortization 19,843 -
Total operating expenses 23,026,669 1,515,183
Operating income (loss) 4,478,145 (696,560)
The Notes to the Basic Financial Statements
are an integral part of these statements.
28
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ - $ - $ 14,272,800 $ -
607,955 -
- - 9,498,280 -
- - 818,623 -
- 763,777 763,777 -
- - - 6,638,814
4,337,002 1,360,047 8,822,828 2,236,929
4,337,002 2,123,824 34,784,263 8,875,743
- - 496,414 2,338,550
- - 8,112,473 -
- - 1,205,851- - 501,861- - 4,641,973- - 4,188,777- - 600,580 -
- - 1,133,055 -
- - 741,964 -
- 653,270 653,270 -
1,759,278 - 1,759,278 -
420,277 - 420,277 -
1,154,994 - 1,154,994 -
625,053 - 625,053 -
204,149 - 204,149 -
- 1,178,856 1,178,856 -
- 42,929 42,929 -
- - - 4,692,737
401,135 532,397 3,832,593 1,323,093
27,480 - 47,323 -
4,592,366 2,407,452 31,541,670 8,354,380
(255,364) (283,628) 3,242,593 521,363
29
CITY OF EULESS, TEXAS
STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION—
PROPRIETARY FUNDS—CONTINUED
YEAR ENDED SEPTEMBER 30, 2018
Business -Type Activities -
Ente rpris a Funds
Water and Drainage
Wastewater Utility
Nonoperating revenues (expenses)
Gain(loss) on sale of capital assets $ 2,558 $ -
Investment income 321,276 22,293
Interest expense (184,154) -
Total nonoperating revenues
(expenses), net 139,680 22,293
Income (loss)before contributions
and transfers 4,617,825 (674,267)
Developer contributions 1,611,398 117,821
Transfers in - -
Transfers out (1,535,478) (41,075)
Net income (loss) 4,693,745 (597,521)
Net position,beginning, as restated(Note 13) 49,212,153 16,356,126
Net position, end of year $ 53,905,898 $ 15,758,605
Reconciliation to government-wide statement ofnet position
Adjustment to reflect the consolidation of internal
service funds' activities related to enterprise funds
Change in net position ofbusiness-type activities
The Notes to the Basic Financial Statements
are an integral part of these statements.
30
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ (13,957) $ 315 $ (11,084) $ 245,405
20,730 21,214 385,513 142,028
(124,250) - (308,404) -
(117,477) 21,529 66,025 387,433
(372,841) (262,099) 3,308,618 908,796
- - 1,729,219 -
558,550 80,000 638,550 1,604,414
- (64,586) (1,641,139) -
185,709 (246,685) 4,035,248 2,513,210
2,230,418 8,951,660 13,390,503
$ 2,416,127 $ 8,704,975 $ 15,903,713
184,630
$ 4,219,878
31
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS —PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2018
Business -Type Activities -
Enterprise Funds
Water and Drainage
Wastewater Utility
OPERATING ACTIVITIES
Cash received from customers $ 27,216,381 $ 803,154
Cash payments to suppliers for goods and services (15,298,919) (368,464)
Cash payments to employees for services (3,366,178) (381,196)
Net cash provided by
operating activities 8,551,284 53,494
NONCAPITAL FINANCING ACTIVITIES
Transfer in - -
Transfer out (1,535,478) (41,075)
Net cash provided by(used in)
noncapital financing activities (1,535,478) (41,075)
CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from bond issuances 2,785,000 -
Impact fees 860,029 -
Purchase of capital assets (2,508,364) (25,749)
Interest paid on bonds (168,391) -
Principal paid on bonds (780,000) -
Proceeds from sale of capital assets 8,273 Net cash provided by(used in)capital
and related financing activities 196,547 (25,749)
INVESTING ACTIVITIES
Interest received on investments 280,160 22,293
Net cash provided by investing activities 280,160 22,293
Net change in cash and cash equivalents 7,492,513 8,963
Cash and cash equivalents,beginning of year 16,612,101 1,511,597
Cash and cash equivalents, end of year $ 24,104,614 $ 1,520,560
The Notes to the Basic Financial Statements
are an integral part of these statements.
32
Business -Type Activities - Governmental
Enterprise Funds Activities -
Other Total Internal
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ 4,317,778 $ 2,121,305 $ 34,458,618 $ 9,427,856
(2,425,383) (1,439,111) (19,531,877) (7,160,168)
(1,743,643) (520,616) (6,011,633) (135,351)
148,752 161,578 8,915,108 2,132,337
558,550 80,000 638,550 1,604,414
- (64,586) (1,641,139) -
558,550 15,414 (1,002,589) 1,604,414
- - 2,785,000 -
- - 860,029 -
(37,773) (59,879) (2,631,765) (1,670,672)
(125,425) - (293,816) -
(470,000) - (1,250,000) -
800 315 9,388 271,041
(632,398) (59,564) (521,164) (1,399,631)
20,730 21,214 344,397 121,388
20,730 21,214 344,397 121,388
95,634 138,642 7,735,752 2,458,508
1,321,093 1,084,613 20,529,404 8,345,122
$ 1,416,727 $ 1,223,255 $ 28,265,156 $ 10,803,630
33
CITY OF EULESS, TEXAS
STATEMENT OF CASH FLOWS—PROPRIETARY FUNDS—CONTINUED
YEAR ENDED SEPTEMBER 30, 2018
Business -Type Activities -
Enterprise Funds
Water and Drainage
Wastewater Utility
Reconciliation of operating income (loss)
to net cash provided by
operating activities
Operating income (loss) $ 4,478,145 $ (696,560)
Adjustments to reconcile operating
income (loss)to net cash provided
by operating activities:
Depreciation and amortization 2,145,685 773,219
Changes in assets and liabilities:
Accounts receivable and
unbilled revenue (376,383) (15,469)
Prepaids and deposits 9,694 -
Inventory (11,892)Net OPEB Liability 8,317 932
Net pension liability (1,379,265) (154,573)
Deferred outflows 691,585 77,868
Deferred inflows 582,116 65,024
Accounts payable 1,805,126 1,120
Accrued salaries and wages 5,900 1,976
Accrued insurance claims - -
Compensated absences 31,006 (43)
Customer and escrow
deposits 87,950 -
Unearned revenue 473,300 Net cash provided by
operating activities $ 8,551,284 $ 53,494
Noncash fmancing activities
Developer contributed assets $ 751,369 $ 117,821
Reconciliation of cash to balance sheet:
Cash- current $ 16,228,256 $ 1,520,560
Cash- restricted 7,876,358 -
Cash and cash equivalents $ 24,104,614 $ 1,520,560
The Notes to the Basic Financial Statements
are an integral part of these statements.
34
Business -Type Activities - Govermnental
Enterprise Funds Activities -
Other Total Internal
Golf Recreation Enterprise Service
Course Enterprises Funds Funds
$ (255,364) $ (283,628) $ 3,242,593 $ 521,363
428,615 532,397 3,879,916 1,323,093
1,340 (2,519) (393,031) 552,113
701 4,820 15,215 174
4,942 31,120 24,170 -
1,721 286 11,256 -
(285,365) (47,560) (1,866,763) -
143,616 24,194 937,263 -
120,017 19,828 786,985 -
(1,664) (114,250) 1,690,332 13,583
2,217 (2,712) 7,381 (989)
- - - (277,000)
8,540 (398) 39,105 -
(23,949) - 64,001 -
3,385 - 476,685 -
$ 148,752 $ 161,578 $ 8,915,108 $ 2,132,337
$ - $ - $ 869,190 $ -
$ 1,416,727 $ 1,223,255 $ 20,388,798 $ 10,797,876
- - 7,876,358 5,754
$ 1,416,727 $ 1,223,255 $ 28,265,156 $ 10,803,630
35
CITY OF EULESS, TEXAS
STATEMENT OF NET POSITION—FIDUCIARY FUNDS
SEPTEMBER 30, 2018
Agency OPEB
Fund Trust Fund
ASSETS
Investments at fair value
Money market account $ 1,427,488 $ 1,540,000
Fixed income funds - 1,833,576
Equity funds - 3,064,542
Total assets $ 1,427,488 $ 6,438,118
LIABILITIES
Due to other entities $ 1,420,547 $ -
Refunds payable 6,941 -
Total liabilities $ 1,427,488 -
NET POSITION
Held in trust for OPEB $ 6,43 8,118
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, 2018
OPEB
Trust Fund
ADDITIONS
Employer contributions $ 1,754,093
Other contributions 320,471
Investment income
Net increase in fair value of investments 416,847
Less:investment expense (35,023)
Total investment income 381,824
Total additions 2,456,388
DEDUCTIONS
Insurance claims 1,230,281
Administrative expenses 147,597
Total deductions 1,377,878
Change in net position 1,078,510
Net position- beginning 5,359,608
Net position- ending $ 6,438,118
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.
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.
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
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.
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.
39
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation—Continued
Fund Financial Statements
The City segregates transactions related to certain functions or activities in separate funds in
order to aid financial management and to demonstrate compliance with various legal
provisions. Separate statements are presented for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. These statements present each major fund as a separate column on the fund
financial statements; all non-major funds are aggregated and presented in a single column.
Governmental funds are those funds through which most governmental functions are
typically financed. The measurement focus of governmental funds is on the sources, uses,
and balances of current financial resources. The City has presented the following major
governmental funds:
General Fund
The General Fund is the main operating fund of the City. This fund is used to account for
all financial resources not accounted for in other funds. All general tax revenues and
other receipts that are not restricted by law or contractual agreement to some other fund
are accounted for in this fund. General operating expenditures, fixed charges, and capital
improvement costs that are not paid through other funds are paid from the General Fund.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of financial resources for
the payment of principal, interest, and related costs on general long-term debt paid
primarily from property taxes levied by the City. The fund balance of the Debt Service
Fund is restricted for debt service expenditures.
Car Rental Tax Fund
The Car Rental Tax Fund is used to account for revenues received from the collection of
short-term motor vehicle rental taxes and the expenditures thereof. Per contractual
agreement, revenues are shared with the cities of Dallas and Fort Worth. The City's
portion of the revenue is used primarily for debt reduction, one-time capital projects, and
to maintain the property tax rate.
Streets CIP Fund
The Streets CIP Fund is used to account for street construction and reconstruction
projects and the means of financing such improvements.
40
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation—Continued
Proprietary funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. The accounting objectives are determinations of net income,
financial position, and cash flow. All assets and liabilities are included on the statement of
net position. The City has presented the following major proprietary funds:
Water and Wastewater Fund
Water and Wastewater Fund is used to account for the acquisition, operation and
maintenance of a municipal water and wastewater utility, supported primarily by user
charges.
Drainage Utility Fund
Drainage Utility Fund is used to account for the acquisition, operation, and maintenance
of a municipal drainage utility, supported primarily by user charges.
Golf Course Fund
Golf Course Fund is used to account for operation and maintenance of the City's golf
course, supported primarily by user charges.
Other Recreation Enterprises Fund
Other Recreation Enterprises Fund is used to account for operations and maintenance of
recreation programming, Arbor Daze, and the Texas Star Sports Complex, supported 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.
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.
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.
41
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made, regardless of the
measurement focus applied.
The government-wide and proprietary fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. The economic resources
measurement focus means all assets, deferred inflows/outflows of resources, and liabilities
(whether current or noncurrent) are included on the statement of net position and the operating
statements present increases and decreases in total net position. Under the accrual basis of
accounting, revenues are recognized when earned, including unbilled water, wastewater, and
drainage services which are accrued. Expenses are recognized at the time the liability is
incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting. Under
the modified accrual basis of accounting, revenues are recognized when susceptible to accrual;
i.e., become both measurable and available. "Measurable" means the amount of the transaction
can be determined and "available" means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period. The City considers property taxes
and other revenues as available if they are collected within 60 days of year end. Expenditures are
recorded when the related fund liability is incurred. However, debt service expenditures, as well
as expenditures related to compensated absences and other long-term liabilities are recorded only
when payment is due.
The significant revenues susceptible to accrual are property taxes, franchise fees, licenses,
charges for service, interest income, and intergovernmental revenues. Sales taxes and short-term
motor vehicle rental taxes collected and held by the state at year end on behalf of the City are
also recognized as revenue. All other governmental fund revenues are recognized when
received.
Deposits and Investments
Substantially all operating cash, deposits, and short-term investments are maintained in
consolidated cash accounts or individual fund investment accounts. Related interest income is
allocated to the various funds based primarily on ownership by each fund of specific
investments. Cash equivalents consist of highly-liquid investments with original maturities of
three months or less.
For purposes of the statement of cash flows, the City considers all highly liquid investments to
be cash equivalents.
42
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Deposits and Investments—Continued
Investments in U.S. Treasury and agency obligations with maturities of one year or less when
purchased are reported at amortized cost. All other investments are reported at fair value.
State statutes authorize the City to invest in obligations of the U.S. Government or its agencies;
obligations of the State of Texas or its agencies; and certain other obligations, repurchase
agreements, money market mutual funds, and certificates of deposits within established criterion.
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 $100 of assessed valuation ($.4625 per $100 last year) and assessed valuation is
approximately 100% of estimated value.
Inventories
Inventories, which are recognized as expenditures/expenses as consumed, are stated at cost (first-
in, first-out method) for the General Fund and Enterprise Funds. Inventories consist primarily of
expendable supplies for the General Fund and merchandise for resale for the Enterprise Funds.
Prepaid Items
Prepaid balances are for payments made by the City in the current year to provide services
occurring in the subsequent fiscal year, and are recognized as expenditures utilizing the
consumption method.
Interfund Receivables and Payables
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as "internal balances."
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.
43
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
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.
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.
44
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 Tax Streets CIP Govetutieental Governmental
General Fund Fund Fund Fund Funds Funds
Nonspendable $ 51,409 $ - $ - $ - $ 12,427 $ 63,836
Restricted for
Debt service - 1,914,141 - - 850,872 2,765,013
Capital projects 2,686 - - 6,118,932 1,382,077 7,503,695
Developer agreements - - - - 2,268,071 2,268,071
Court technology 123,067 - - - - 123,067
Juvenile case management - - - - 269,506 269,506
Cable PEG fees - - - - 690,396 690,396
Historical preservation - - - - 1,245 1,245
Assigned
Capital projects - - - 3,496,477 7,419,862 10,916,339
Betterments 39,906 - - - - 39,906
Emergency/radio systems 47,230 - - - - 47,230
Tourism and
conference ficilities - - - - 422,201 422,201
Parks,library,and
economic development - - - - 2,450,450 2,450,450
Police department - - - - 2,086,423 2,086,423
Grants - - - - 406 406
Other 34,572 - 4,708,626 - 771,844 5,515,042
Unassigned 14,255,823 - - - - 14,255,823
Total $ 14,554,693 $ 1,914,141 $ 4,708,626 $ 9,615,409 $ 18,625,780 $ 49,418,649
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.
45
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 intended
use 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.
46
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.
47
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.
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, OPEB related deferred outflows and inflows of
resources, and OPEB expense, City specific information about its Fiduciary Net Position and
additions to/deductions from the City's Fiduciary Net Position have been determined on the same
basis as they are reported. 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 OPEB liability is obtained
from an actuarial valuation through a report prepared for the City by their consulting actuary in
compliance with Governmental Accounting Standards Board (GASB) Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits other than 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 as deferred outflows of resources:
• 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 OPEB assets — this difference is deferred
and amortized over a closed five-year period.
48
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Deferred Outflows/Inflows of Resources - Continued
• Difference in expected and actual OPEB experience — this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
In addition to liabilities, the City has the following items that qualify for reporting as deferred
inflows of resources:
• Difference in expected and actual pension experience — this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
• Difference in projected and actual investment earnings for pension assets — this difference
is deferred and amortized over a closed five-year period.
• Difference in pension actuarial assumption changes — this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on the measurement date.
• Difference in OPEB actuarial assumption changes — this difference is deferred and
amortized over a closed period that approximates the estimated average remaining lives of
all members on 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.
As of September 30, 2018, 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 $1,246 in fiscal
year 2018, or less than 0.01% of the total property tax levy.
49
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Tax Abatements—Continued
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 2018 the City rebated $1,266,260 in sales taxes, or 6.11% 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 or by a letter of credit issued
by a federal home loan bank. The City's deposits were fully insured or collateralized as required
by state statutes as of September 30, 2018. At year-end, the carrying amount of the City's
deposits was $4,456,440 with a bank balance of$4,958,547.
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 $2,475,263. The balances at Bank of Texas (BOT) are covered by FDIC
insurance and collateral pledged to cover the balances in the BOT short-term cash fund.
Investments
State statutes, City bond ordinances, and City resolutions authorize the City's investments. The
City is authorized to invest in obligations of the U.S. Government and its agencies and
instrumentalities, obligations of the State of Texas and its agencies and instrumentalities, fully-
insured or collateralized certificates of deposit, fully-collateralized repurchase agreements and
reverse repurchase agreements, government pools, and no-load SEC-registered money market
funds consisting of any of these securities listed.
Because the City is responsible for the investment portfolio of its component units, the City's
investment practices and policies disclosed herein apply equally to its component units. During
the year ended September 30, 2018, the City did not own any types of securities other than those
permitted by statute.
50
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS —CONTINUED
Investments—Continued
Fair Value % of Rating
Investment Type Book Value Level 2 Portfolio WAM Rating Agency
Interest bearing bank deposits $ 3,962,643 4%
Investments measured at amortized cost:
Investment Pools:
TexPool 26,025,385 26% 28 AAAm S&P
TexSTAR 24,658,114 26% 43 AAAm S&P
Investments measured at fair value:
U.S. Government Agency Securities:
FNMA 1,459,169 1,483,370 2% 6 AA+/Aaa S&P/Moody's
FFCB 11,985,421 11,976,930 13% 28 AA+/Aaa S&P/Moody's
FHLB 23,869,385 23,930,336 25% 55 AA+/Aaa S&P/Moody's
FHLMC 2,479,129 2,493,695 3% 3 AA+/Aaa S&P/Moody's
FAMCA 1,000,000 998,760 1% 2 Not rated
Investments measured at cost:
Bank of Texas -CD 41,000 0% N/A Not rated
Total $95,480,246 $40,883,091 100%
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.
• 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.
51
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS —CONTINUED
Investments— Continued
Fair Value—Continued
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to
Level 3 inputs. If a price for an identical asset or liability is not observable, a government
should measure fair value using another valuation technique that maximizes the use of
relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of
an asset or a liability is measured using inputs from more than one level of the fair value
hierarchy, the measurement is considered to be based on the lowest priority level input that is
significant to the entire measurement.
The City has recurring fair value measurements as presented in the previous table. The City's
investment balances and weighted average maturity of such investments are as shown.
Investment pools are measured at amortized cost and are exempt from fair value reporting.
U.S. Government Agency Securities classified in Level 2 of the fair value hierarchy are
valued using a matrix pricing technique. Matrix pricing is used to value securities based on
the securities' relationship to benchmark quoted prices.
Certificates of deposit are measured at cost and are exempt from fair value reporting.
Both of the public fund investment pools (pools) in which the City is a participant use
amortized cost to value the portfolio. Amortized cost, in most cases, approximates the
market value of the securities held. In order to meet the criteria to be recorded at amortized
cost, investment pools must transact at a stable net asset value per share and maintain certain
maturity, quality, liquidity and diversification requirements within the investment pool. The
pools in which the City invests transact at a net asset value of $1.00 per share, have a
weighted average maturity of 60 days or less and weighted average life of 120 days or less,
hold investments that are highly rated by a nationally recognized statistical rating
organization, have no more than 5% of the portfolio with one issuer (excluding US
government securities), and can meet reasonably foreseeable redemptions.
The TexPool investment pool is an external investment pool valued at amortized costs.
TexPool, has a redemption notice period of one day and has no maximum transaction
amounts. The investment pools' authorities may only impose restrictions on redemptions in
the event of a general suspension of trading on major securities markets, general banking
moratorium or national or state emergency that affects the 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, 2018, 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 investment portfolio as of
September 30, 2018:
Maturity Schedule Book Value Fair Value %of Portfolio
Overnight $ 54,646,142 $ 54,646,142 56%
Less than 1 month 1,496,627 1,499,825 2%
1 to 6 months 17,954,605 17,973,790 19%
6 to 9 months 8,492,483 8,482,140 9%
9 to 12 months 4,526,679 4,526,328 5%
12 to 18 months 8,363,710 8,441,996 9%
Total $ 95,480,246 $ 95,570,221 100%
Credit Risk
In compliance with the City's Investment Policy, as of September 30, 2018, 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 — 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 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, 2018, the City's bank
balances were fully insured or 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, 2018, was as follows:
Balance Balance
Beginning Adjustment/ End of
of Year Increase Decrease Transfer Year
Governmental activities
Capital assets not being depreciated
Land $ 30,462,211 $ 1,657,151 $ - $ 419,306 $ 32,538,668
Construction in progress 15,721,866 6,181,835 - (3,803,829) 18,099,872
Total capital assets
not being depreciated 46,184,077 7,838,986 - (3,384,523) 50,638,540
Capital assets being depreciated
Buildings 60,880,499 16,241 (367,452) 1,128,343 61,657,631
Improvements other than buildings 12,048,323 132,879 - 1,394,224 13,575,426
Infrastructure 89,726,567 422,200 - 775,948 90,924,715
Machinery and equipment 10,192,551 555,690 (258,989) 86,008 10,575,260
Total capital assets
being depreciated 172,847,940 1,127,010 (626,441) 3,384,523 176,733,032
Less accumulated depreciation
Buildings (24,260,764) (1,789,175) 8,802 - (26,041,137)
Improvements other than buildings (4,378,933) (385,048) - - (4,763,981)
Infrastructure (39,911,342) (2,421,582) - - (42,332,924)
Machinery and equipment (5,761,782) (885,302) 210,634 - (6,436,450)
Total accumulated depreciation (74,312,821) (5,481,107) 219,436 - (79,574,492)
Total capital assets being
depreciated,net 98,535,119 (4,354,097) (407,005) 3,384,523 97,158,540
Total governmental fund capital
assets,net 144,719,196 3,484,889 (407,005) - 147,797,080
Internal service funds
Capital assets being depreciated
Machinery and equipment 13,496,505 1,670,672 (1,564,406) - 13,602,771
Total internal service assets
being depreciated 13,496,505 1,670,672 (1,564,406) - 13,602,771
Less accumulated depreciation
Machinery and equipment (7,863,440) (1,323,093) 1,538,771 - (7,647,762)
Total internal service funds
capital assets,net 5,633,065 347,579 (25,635) - 5,955,009
Total governmental activities
capital assets,net $ 150,352,261 $ 3,832,468 $ (432,640) $ - $ 153,752,089
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 71,854 2,449,683 - (1,568,124) 953,413
Total capital assets
not being depreciated 3,690,399 2,449,683 - (1,568,124) 4,571,958
Capital assets being depreciated
Buildings 4,207,035 - - - 4,207,035
Equipment 4,045,353 17,682 (92,433) - 3,970,602
Improvements 21,048,495 123,402 - - 21,171,897
Utility system 111,040,419 910,189 - 1,568,124 113,518,732
Total capital assets being
depreciated 140,341,302 1,051,273 (92,433) 1,568,124 142,868,266
Less accumulated depreciation
Buildings (2,407,172) (124,217) - - (2,531,389)
Equipment (1,607,219) (304,716) 71,961 - (1,839,974)
Improvements (10,482,676) (655,927) - - (11,138,603)
Utility system (53,925,066) (2,747,733) - - (56,672,799)
Total accumulated depreciation (68,422,133) (3,832,593) 71,961 - (72,182,765)
Total capital assets being
depreciated,net 71,919,169 (2,781,320) (20,472) 1,568,124 70,685,501
Total business-type activities
capital assets,net $75,609,568 $ (331,637) $ (20,472) $ - $75,257,459
Depreciation expense was charged as a direct expense to programs of the primary government as
follows:
Governmental activities
Culture and recreation $ 782,595
Development 16,002
General administrative 2,952,747
Highways and streets 2,490,298
Public safety 562,558
Total depreciation expense - governmental activities $ 6,804,200
Business-type activities
Water and wastewater $ 2,125,842
Drainage utility 773,220
Golf course 401,136
Other recreation enterprises 532,395
Total depreciation expense -business-type activities $ 3,832,593
Outstanding commitments at September 30, 2018, under authorized construction contracts, were
$2,110,135. These outstanding commitments are to be financed by available deposit and investment
balances, which include proceeds from previous bond issuances.
56
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT
The following is a summary of long-term debt activity, including the restatement for the net OPEB
liability, of the City for the year ended September 30, 2018:
Balance
Beginning Balance Due
of Year End within
(As Restated) Increases Decreases of Year One Year
Governmental activities
General obligation bonds $14,490,000 $ - $ (3,030,000) $ 11,460,000 $2,655,000
Certificates of obligation 27,350,000 9,180,000 (870,000) 35,660,000 1,245,000
Sales tax revenue bonds 75,000 - (35,000) 40,000 40,000
Tax notes 860,000 625,000 (750,000) 735,000 735,000
Capital lease 160,545 - (76,697) 83,848 83,848
Premium on bonds 1,216,500 264,116 (164,991) 1,315,625 151,785
Discount on bonds (116,860) - 12,737 (104,123) (12,736)
Net pension liability 22,304,176 - (10,023,668) 12,280,508 -
Net OPEB liability 9,867,183 60,436 - 9,927,619 -
Compensated absences 1,966,884 467,734 (363,643) 2,070,975 207,097
Total governmental activities 78,173,428 10,597,286 (15,301,262) 73,469,452 5,104,994
Business-type activities
Water and sewer revenue bonds 9,540,000 2,785,000 (780,000) 11,545,000 915,000
General obligation refunding bonds 5,240,000 - (470,000) 4,770,000 475,000
Premiums on bonds 194,451 - (19,241) 175,210 19,242
Discounts on bonds (26,005) - 1,625 (24,380) (1,625)
Net pension liability 4,146,896 - (1,866,763) 2,280,133 -
Net OPEB liability 1,837,660 11,257 - 1,848,917 -
Compensated absences 296,124 56,929 (17,824) 335,229 33,523
Total business-type activities 21,229,126 2,853,186 (3,152,203) 20,930,109 1,441,140
Total primary government $99,402,554 $13,450,472 $(18,453,465) $ 94,399,561 $6,546,134
Governmental fund net pension liability and OPEB liability are 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, 2018, 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 $4,225,000
4.4%
Refunding, Series 2011 2%—4% 01/15/2011 08/15/2021 2,460,000
Refunding, Series 2012 2%—4% 12/01/2011 02/15/2024 2,965,000
Refunding, Series 2012A 2%—4% 11/01/2012 02/15/2027 4,770,000
Refunding, Series 2014 3% 10/15/2014 02/15/2020 1,810,000
Total $16,230,000
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
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 71,275 1,848,714
2023 1,140,000 110,539 530,000 60,444 1,840,983
2024-2027 1,870,000 97,239 2,245,000 114,907 4,327,146
Total $ 11,460,000 $ 1,311,821 $ 4,770,000 $ 543,476 $ 18,085,297
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.
In 2018, certificates of obligation were issued for the purpose of construction of public works and the
related professional services rendered in relation to such projects and the financing thereof.
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%— 01/15/2011 08/15/2030 $2,230,000
4.25%
Series 2014 0%— 5% 10/15/2014 08/15/2034 5,265,000
Series 2015 3%—5% 10/27/2015 02/15/2035 2,915,000
Series 2016 2%—4% 01/12/2016 02/15/2041 16,070,000
Series 2018 3%—4% 03/01/2018 02/15/2038 9,180,000
Total $35,660,000
Annual debt service requirements to maturity for the certificates of obligation are as follows:
Fiscal Governmental Activities
Year Principal Interest Total
2019 $ 1,245,000 $ 1,278,889 $ 2,523,889
2020 1,410,000 1,122,095 2,532,095
2021 1,450,000 1,075,569 2,525,569
2022 1,495,000 1,027,594 2,522,594
2023 1,555,000 972,419 2,527,419
2024-2028 8,625,000 3,984,788 12,609,788
2029-2033 9,435,000 2,485,954 11,920,954
2034-2038 7,995,000 1,081,016 9,076,016
2039-2041 2,450,000 138,775 2,588,775
Total $ 35,660,000 $13,167,099 $48,827,099
59
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT—CONTINUED
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.
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 1/2¢ 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.
In 2018, water and sewer revenue bonds were issued for the Reclaimed Water Line Extension
Phase III Construction Project and related financing costs thereof.
Interest Issue Maturity Principal
Rate % Date Date Outstanding
Revenue Bonds
STRB Refunding, Series 2012 1.43% 01/12/2012 09/15/2019 $ 40,000
W&WW Refunding, Series 2012 2.03% 03/29/2012 07/15/2024 1,315,000
W&WW Improvement, Series 2013 2%—5% 06/25/2013 07/15/2033 1,280,000
W&WW Improvement, Series 2015A 0% - 1.98% 06/15/2015 07/15/2035 4,025,000
W&WW Improvement, Series 2015B 0% - 1.68% 06/15/2015 07/15/2035 2,140,000
W&WW Improvement, Series 2018 0% - 1.49% 04/15/2018 07/15/2038 2,785,000
Total $ 11,585,000
60
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT—CONTINUED
Revenue Bonds—Continued
Annual debt service requirements to maturity for revenue bonds are as follows:
Governmental Business-Type
Fiscal Activities Activities
Year Principal Interest Principal Interest Total
2019 $40,000 $572 $915,000 $191,112 $1,146,684
2020 930,000 174,649 1,104,649
2021 670,000 163,849 833,849
2022 670,000 156,923 826,923
2023 685,000 149,074 834,074
2024-2028 2,980,000 608,601 3,588,601
2029-2033 3,140,000 336,278 3,476,278
2034-2038 1,555,000 55,814 1,610,814
Total $40,000 $572 $11,545,000 $1,836,300 $13,421,872
The gross 1/2¢ sales tax revenues of the EDC recognized in the year ending September 30, 2018
totaled $5,184,401. The principal and interest payments on the EDC debt for the same period
totaled$36,073 which equates to approximately .7% of the gross %2¢ sales tax revenues.
The recognized net revenues of the water and wastewater fund totaled $4,801,979 for the year
ending September 30, 2018. Principal and interest payments on the water and sewer revenue
bonds totaled $948,392, which equates to approximately 19.8% 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 2018, tax notes were issued to pay
contractual obligations incurred (i) primarily for the purchase of public safety related equipment
and street maintenance equipment; and(ii)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 $435,000
Series 2017 1.17% 09/11/2017 08/15/2019 300,000
$735,000
61
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Tax Notes - Continued
Annual debt service requirements to maturity for the tax notes are as follows:
Fiscal Governmental Activities
Year Principal Interest Total
2019 $735,000 $8,556 $743,556
Total $735,000 $8,556 $743,556
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 initial value of the
telephone equipment is $275,000.
As of September 30, 2018, capital lease annual amortization is as follows:
2019 $ 91,667
Total 91,667
Less interest (7,819)
Present value of
remaining payments $ 83,848
Governmental
Activities
Equipment $ 275,000
Less:accumulated
amortization (72,024)
Net book value $ 202,976
62
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 4. LONG-TERM DEBT — CONTINUED
Annual Requirements to Retire Debt Obligations - Continued
In accordance with the water and sewer revenue and refunding bond ordinances, the following
reserves were established:
Reserve for revenue bond debt service — to be used for retirement of the current portion of
principal and interest payments due.
Reserve for emergency— to be used for payment of extraordinary repairs or replacements to
the system necessitated by an emergency for which no other funds are available.
Revenue bond reserve — a reserve established 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, 2018.
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, 2018, 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 $11,086,103
and are included as operating expenses of the water and wastewater fund.
63
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES—CONTINUED
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 $321,558 in the year ended
September 30, 2018 and are included as operating expenses of the water and wastewater fund.
The City is involved in a number of lawsuits arising in the ordinary course of business. In the
opinion of the City's legal counsel and management, any liability resulting from such litigation
would not be material in relation to the City's financial position.
NOTE 6. SERVICE CENTER
The water and wastewater enterprise fund historically bears the major portion of the operating costs
of the City's service center, which provides services to all City departments.
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 Street CIP governmental governmental
Transfers out
General $ - $ - $ 3,843,911 $ 246,211 $ 4,090,122
Debt service - - - - -
Car rental tax 1,510,039 - - 1,595,100 3,105,139
Water and wastewater 1,293,478 - - - 1,293,478
Drainage utility 41,075 - - - 41,075
Other recreation enterprises - - - 64,586 64,586
Nonmajor governmental - 1,993,156 - 3,355,291 5,348,447
Total transfers in $ 2,844,592 $ 1,993,156 $ 3,843,911 $ 5,261,188 $ 13,942,847
Transfers in
Golf Other recreation Subtotal Total
course enterprises Internal service proprietary transfers out
Transfers out
General $ 16,029 $ - $ 492,000 $ 508,029 $ 4,598,151
Debt service - - 599,559 599,559 599,559
Car rental tax - - 270,855 270,855 3,375,994
Water and wastewater - - 242,000 242,000 1,535,478
Drainage utility - - - - 41,075
Other recreation enterprises - - - - 64,586
Nonmajor governmental 542,521 80,000 - 622,521 5,970,968
Total transfers in $ 558,550 $ 80,000 $ 1,604,414 $ 2,242,964 $ 16,185,811
64
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 7. INTERFUND TRANSFERS —CONTINUED
Transfers are primarily used to move funds from:
• The general fund to the street CIP fund and non-major governmental fund to satisfy grant
matching requirements and to fund 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 governmental funds to non-major governmental funds to provide funding for
approved projects.
• The non-major government funds to debt service funds for debt payments on previously
issued debt.
• The general fund and water and wastewater fund to the internal service funds for health and
dental claims, 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 and to fund approved projects.
• The non-major governmental funds to the other recreation enterprises fund to provide
funding for approved projects.
• The other recreation enterprises fund to the non-major governmental funds to provide
funding for approved 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.
65
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 8. RISK MANAGEMENT—CONTINUED
The City provides employee health insurance coverage on a self-insured basis. Premiums are paid
into a separate insurance fund by other funds, by the City's employees, and by retirees. The
premiums are used to fund claims, administrative costs of the program, and claim reserves. An
excess coverage insurance policy covers individual claims in excess of $125,000 and aggregate
claims in excess of $6,264,980. During fiscal year 2018, the City and the City's employees
contributed approximately $4,616,836 and $1,506,977 respectively, for medical coverage.
The City's contributions are accounted for as interfund services provided and used. Claims liabilities
are based on estimates of the ultimate cost of claims (including future claim adjustment expenses)
that have been reported but not settled, and of claims that have been incurred but not reported, and
are accounted for in the Insurance Internal Service Fund.
Changes in the balances of health and dental claims liabilities for the years ended
September 30, 2018 and 2017 are as follows:
2018 2017
Unpaid claims, beginning of year $ 885,000 $ 849,000
Incurred claims 2,946,653 5,644,625
Paid claims (3,223,653) (5,608,625)
Unpaid claims, end ofyear $ 608,000 $ 885,000
Settlement amounts have not exceeded stop loss insurance coverage for the year ended
September 30, 2018 or any of the three preceding years ended September 30.
NOTE 9. DEFINED BENEFIT PENSION PLAN
Plan Description
The City participates as one of 883 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, 2017 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 234
Inactive employees entitled to, but not yet receiving benefits 159
Active employees 384
Total 777
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, 2018. The contribution rates for the City were 17.76% and 17.80% in
calendar years 2017 and 2018, respectively. The City's contributions to TMRS for the year
ended September 30, 2018 were $5,094,779 and were equal to the required contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2017, 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, 2017 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%.
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
The actuarial assumptions were developed primarily from the actuarial investigation of the
experience of TMRS over the four year period from December 31, 2010 to December 31, 2014.
They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The
post-retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs)
are based on the Mortality Experience Investigation Study covering 2009 through 2011 and
dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013
valuation, the System adopted the Entry Age Normal actuarial cost method and a one-time
change to the amortization policy. 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 in fiscal year 2018
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 Total Pension Liability 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 12/31/2016 $ 195,668,289 $ 169,217,217 $26,451,072
Changes for the year:
Service cost 5,149,378 - 5,149,378
Interest 13,129,452 - 13,129,452
Change ofbenefit terms - - -
Difference between expected
and actual experience 169,296 - 169,296
Changes of assumptions - - -
Contributions - employer - 5,027,855 (5,027,855)
Contributions - employee - 1,981,736 (1,981,736)
Net investment income - 23,456,668 (23,456,668)
Benefit payments, including
refunds of employee contributions (7,465,146) (7,465,146) -
Administrative expense - (121,542) 121,542
Other changes - (6,160) 6,160
Net changes 10,982,980 22,873,411 (11,890,431)
Balance at 12/31/2017 $206,651,269 $ 192,090,628 $ 14,560,641
Plan fiduciary net position as a percentage of the TPL 92.95%
Covered payroll $28,308,838
NPL as a percentage of covered payroll 51.44%
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 $ 44,016,348 $ 14,560,641 $(9,608,987)
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, 2018, the City recognized pension expense of$4,770,259.
At September 30, 2018, 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 $ - $ 546,926
Changes in actuarial assumptions - 259,171
Difference between projected and
actual investment earnings - 4,881,080
Contributions subsequent to the
measurement date 3,577,959 -
Total $ 3,577,959 $ 5,687,177
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
$3,577,959 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, 2019. 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
2018 $ (232,378)
2019 (547,660)
2020 (2,513,001)
2021 (2,401,281)
2022 7,143
Total $ (5,687,177)
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 $ 863.18 $ 743.60 $ 30.79 $ 8.26
Retiree plus Children 1,640.04 1,412.83 58.51 13.50
Retiree plus Spouse 1,985.31 1,710.27 70.83 16.04
Retiree plus Family 2,503.22 2,156.43 89.30 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 of 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 and GASB 75, the following data is presented.
Plan Membership
On September 30, 2018, plan membership consisted of the following:
Inactive plan members or beneficiaries currently receiving benefit payments 76
Inactive plan members entitled to, but not yet receiving benefit payments 25
Active plan members 761
862
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 9/30/2018
Asset Class Range Allocation Allocation
Equity 50-70% 60.00% 47.60%
Fixed income 30-50% 35.00% 28.48%
Cash 0-20% 5.00% 23.92%
100.00% 100.00%
Rate of return. For the year ended September 30, 2018, the annual money-weighted rate of
return on investments, net of investment expense, was 6.70%. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
75
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS—CONTINUED
Investments—Continued
Concentrations. The following investments comprised 5% or more of the OPEB plan's fiduciary
net position as of September 30, 2018:
%of
Asset Class Investment Vehicle Portfolio
Equity Vanguard Growth&Income Adm 9.98%
Equity Dodge &Cox Stock Fund 6.21%
Fixed Income PIMCO Total Return Intl Fund 8.01%
Fixed Income Prudential Total Return Bond Fund 7.99%
Fixed Income DoubleLine Core Fixed Income I 7.98%
Cash First American Government Oblig Z 23.92%
Net OPEB Liability of the City
The components of the net OPEB liability of the City at September 30 were as follows:
2018 2017
Total OPEB liability $ 18,214,654 $ 17,064,452
Plan fiduciary net position (6,438,118) (5,359,608)
City's net OPEB liability $ 11,776,536 $ 11,704,844
Plan fiduciary net assets as a percent
of the total OPEB liability 35.35% 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 September 30, 2018 using the entry age normal
actuarial cost method. The liability was then projected forward to the measurement date of
September 30, 2018. The actuarial assumptions include:
Inflation 2.5%per annum
Salary increases 2.75%
Investment rate ofreturn 7.50%
Healthcare cost trend rates 5.71%/6.10%with annual increases/decreases to
an ultimate rate of 3.82%in 2073
Dental cost trend rates 3.00%
Mortality rates were based on the Adjusted RPH-2014 Generational with MP-2018 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.
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 $ 15,237,320 $ 11,776,536 $ 9,044,338
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 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 $ 8,993,723 $ 11,776,536 $ 14,757,443
Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability(a) Net Position Liability
(a) (b) (a) - (b)
Balance at 9/30/2017 $ 17,064,452 $ 5,359,608 $ 11,704,844
Changes for the year:
Service cost 447,155 - 447,155
Interest 1,271,483 - 1,271,483
Change of benefit terms - - -
Difference between expected
and actual experience 1,459,988 - 1,459,988
Changes of assumptions (798,143) - (798,143)
Contributions- employer - 1,754,093 (1,754,093)
Contributions- employee - 320,471 (320,471)
Net investment income - 381,824 (381,824)
Benefit payments, including
refunds of employee contributions (1,230,281) (1,230,281) -
Administrative expense - (147,597) 147,597
Net changes 1,150,202 1,078,510 71,692
Balance at 9/30/2018 $ 18,214,654 $ 6,438,118 $ 11,776,536
Assumption Changes. Since the prior valuation, the mortality improvement scale was updated
from MP-2017 to the MP-2018 table. Also, the per capita claims costs and trend were updated to
reflect recent experience.
78
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 10. OTHER POSTEMPLOYMENT BENEFITS —CONTINUED
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended September 30, 2018, the City recognized OPEB expense of$1,585,999.
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected
and actual experience $ 1,167,990 $ -
Changes in actuarial assumptions - 638,515
Difference between projected and
actual investment earnings 30,780 -
Total $ 1,198,770 $ 638,515
Amounts reported as deferred outflows and inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Measurement Net Deferred
Year Outflows/(Inflows)
September 30, of Resources
2019 $ 140,064
2020 140,064
2021 140,064
2022 140,063
Total $ 560,255
NOTE 11. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of September 30, 2018, the grant special revenue fund had an excess of expenditures over
appropriations of$162,102.
79
CITY OF EULESS, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 12. SUBSEQUENT EVENT
On October 23, 2018, the Euless Development Corporation issued $1,635,000 of Euless
Development Corporation Sales Tax Revenue Bonds, Series 2018. The Bonds had interest rates
ranging from 3% to 4%, with maturities through September 2034. Proceeds will be used to finance
the costs of the construction of parks and park facilities within the City and pay the costs associated
with the issuance of such bonds.
On January 22, 2019, the Euless City Council approved the issuance of $11,785,000 of City of
Euless, Texas Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of
Obligation, Series 2019. Proceeds will be used for construction of public works; and/or the purchase
of materials, supplies, equipment, machinery, land, and rights-of-way for authorized needs and
purposes; and professional services rendered in relation to such projects and the financing thereof.
NOTE 13. CHANGE IN ACCOUNTING PRINCIPLE
The City implemented GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions during the fiscal year ended September 30, 2018.
The implementation of GASB Statement No. 75 resulted in the following restatement:
Government-wide Statements
Governmental Business- type
Activities Activities
Net position, beginning of year,
prior to restatement $136,269,089 $81,316,882
Cumulative effect of change
in accounting principle (10,997,742) (2,091,029)
Net position, beginning of year,
as restated $125,271,347 $79,225,853
Fund Level Statements
Other
Water and Recreation
Wastewater Drainage Utility Golf Course Enterprises
Net position, beginning of year,
prior to restatement $50,751,929 $ 16,527,358 $ 2,554,932 $ 9,007,167
Cumulative effect of change
in accounting principle (1,539,776) (171,232) (324,514) (55,507)
Net position, beginning of year,
as restated $49,212,153 $ 16,356,126 $ 2,230,418 $ 8,951,660
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, 2017
2017* 2016* 2015* 2014*
Total pension liability
Service cost $ 5,149,378 $ 4,868,631 $ 4,539,237 $ 4,331,759
Interest(on the total pension liability) 13,129,452 12,462,429 12,302,430 11,698,243
Difference in expected and actual experience 169,296 (361,966) (579,992) (752,184)
Change in assumptions - - (595,757)Benefit payments, including refunds of employee contributions (7,465,146) (6,990,135) (6,911,946) (6,588,671)
Net change in total pension liability 10,982,980 9,978,959 8,753,972 8,689,147
Total pension liability,beginning of year 195,668,289 185,689,330 176,935,358 168,246,211
Total pension liability, ending of year $ 206,651,269 $ 195,668,289 $ 185,689,330 $ 176,935,358
Plan fiduciary net position
Contributions- employer $ 5,027,855 $ 4,691,585 $ 4,644,735 $ 4,787,533
Contributions- employee 1,981,736 1,877,709 1,801,285 1,789,251
Net investment income 23,456,668 10,748,002 235,212 8,631,343
Benefit payments, including refunds of employee contributions (7,465,146) (6,990,135) (6,911,946) (6,588,671)
Administrative expense (121,542) (121,371) (143,262) (90,113)
Other (6,160) (6,539) (7,076) (7,409)
Net change in plan fiduciary net position 22,873,411 10,199,251 (381,052) 8,521,934
Plan fiduciary net position- beginning 169,217,217 159,017,966 159,399,018 150,877,084
Plan fiduciary net position- ending $ 192,090,628 $ 169,217,217 $ 159,017,966 $ 159,399,018
Net pension liability- ending $ 14,560,641 $ 26,451,072 $ 26,671,364 $ 17,536,340
Plan fiduciary net position as a%of total pension liability 92.95% 86.48% 85.64% 90.09%
Covered employee payroll $ 28,308,838 $ 26,824,411 $ 25,732,638 $ 25,560,729
Net pension liability as a%of covered employee payroll 51.44% 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 CONTRIBUTIONS-PENSION
FOR THE YEAR ENDED SEPTEMBER 30, 2018
2018* 2017* 2016* 2015*
Actuarially determined contributions $ 5,094,779 $ 4,971,811 $ 4,670,520 $ 4,602,538
Actual contributions (5,094,779) (4,971,811) (4,670,520) (4,602,538)
Contributions deficiency(excess)
City covered employee payroll $ 28,640,420 $ 28,113,691 $ 26,464,297 $ 25,453,407
Ratio of actual contributions to covered payroll amount 17.80%and 17.76% 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 detetiuined contribution rates are calculated as of December
31 st each year and become effective in January, 13 months 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 24 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 NET OPEB LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
2018 2017
Total OPEB liability
Service cost $ 447,155 $ 75,083
Interest on total OPEB liability 1,271,483 825,331
Effect of changes of benefit terms - -
Effect of difference between expected
and actual experience 1,459,988 432,425
Effect of changes of assumptions (798,143) 5,480,748
Benefit payments (1,230,281) (1,332,839)
Net change in OPEB liability 1,150,202 5,480,748
Beginning balance 17,064,452 11,583,704
Ending balance $ 18,214,654 $ 17,064,452
Plan fiduciary net position
Contributions - employer $ 1,754,093 $ 1,832,839
Contributions - other 320,471 Net investment income 381,824 559,716
Benefit payments (1,230,281) (1,332,839)
Administrative expense (147,597) (13,525)
Net change in plan fiduciary
net position 1,078,510 1,046,191
Beginning balance 5,359,608 4,313,417
Ending balance $ 6,438,118 $ 5,359,608
City's net OPEB liability ending $ 11,776,536 $ 11,704,844
Plan fiduciary net position as a%
of the total OPEB liability 35% 31%
Covered employee payroll $ 28,640,420 $ 25,944,080
City's net OPEB liability as a%
of covered employee payroll 41% 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, 2018
Schedule of City OPEB Contributions 2018 2017
Actuarially determined contribution $ 1,492,738 $ 1,226,144
Contributed in relation to the actuarially
determined contribution 1,754,093 1,832,839
Contribution deficiency(excess) $ (261,355) $ (606,695)
Covered employee payroll $28,640,420 $25,944,080
Contributions as a percentage of
covered employee payroll 6.1% 7.1%
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.
Notes to Schedule
Significant assumptions used in preparation of actuarial valuation
Valuation date 9/30/2018
Actuarial cost method Entry Age Normal
Amortization method Level Dollar Method
Remaining amortization period 29 years - closed period
Amortization period for new losses 25-year closed
Asset valuation method Market value
Discount rate 7.5%
Inflation 2.5%
Healthcare cost trend rates 5.0% increasing/declining annually to 3.82% in 2073
Dental cost trend rates 3.0% per annum
Salary increases including inflation 2.75%
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-2018 Projection
85
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax
Current and delinquent taxes $ 13,669,048 $ 13,669,048 $ 13,581,642 $ (87,406)
Penalty and interest 65,000 65,000 57,875 (7,125)
Total property tax 13,734,048 13,734,048 13,639,517 (94,531)
Gross receipts and mixed beverage tax
Telephone line access fee 309,000 309,000 284,053 (24,947)
Electric company 1,683,432 1,683,432 1,805,014 121,582
Gas company 380,000 380,000 444,043 64,043
Cable TV 658,000 658,000 591,685 (66,315)
City garbage service 232,800 232,800 253,808 21,008
Water and wastewater system 1,222,844 1,222,844 1,293,478 70,634
Others 164,200 164,200 174,736 10,536
Total gross receipts and
mixed beverage tax 4,650,276 4,650,276 4,846,817 196,541
General sales tax 13,577,161 13,577,161 12,698,602 (878,559)
Fines and fees
Municipal court fines 2,520,846 2,520,846 2,412,695 (108,151)
Jail income 210,000 210,000 192,555 (17,445)
Dog licenses and pound fees 6,800 6,800 7,580 780
Ambulance fees 1,150,000 1,150,000 1,005,170 (144,830)
Library fees 8,835 8,835 7,498 (1,337)
Zoning fees 16,500 16,500 22,450 5,950
Deferred adjudication fee 130,000 130,000 159,016 29,016
Total fines and fees 4,042,981 4,042,981 3,806,964 (236,017)
Licenses and permits
Building permits 500,000 500,000 1,446,746 946,746
Miscellaneous permits 249,000 249,000 308,435 59,435
Minimum housing 100,000 100,000 92,134 (7,866)
Total licenses and permits 849,000 849,000 1,847,315 998,315
Investment income 140,000 140,000 256,724 116,724
Intergovernmental 410,778 410,778 418,111 7,333
Other revenues
Rental income 562,328 562,328 555,992 (6,336)
Swimming pools 210,000 210,000 224,213 14,213
Miscellaneous income 267,550 267,550 211,389 (56,161)
Total other revenues 1,039,878 1,039,878 991,594 (48,284)
Total revenues 38,444,122 38,444,122 38,505,644 61,522
86
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Expenditure s
Current
Culture and recreation $ 3,497,777 $ 3,497,777 $ 3,230,048 $ 267,729
Development services 843,234 843,234 748,329 94,905
General and administrative 11,507,971 11,325,859 9,596,770 1,729,089
Highways and streets 1,955,713 1,955,713 1,187,976 767,737
Public safety 25,026,276 25,026,276 24,162,056 864,220
Total expenditures 42,830,971 42,648,859 38,925,179 3,723,680
Excess(deficiency)of revenues
over(under)expenditures (4,386,849) (4,204,737) (419,535) 3,785,202
Other fmancing sources (uses)
Proceeds from sale of assets 10,000 10,000 9,408 (592)
Issuance of debt - - 3,268,911 3,268,911
Transfers in 2,771,496 2,771,496 2,844,592 73,096
Transfers out (1,136,682) (4,587,705) (4,598,151) (10,446)
Total other financing
sources(uses),net 1,644,814 (1,806,209) 1,524,760 3,330,969
Net change in fund balance (2,742,035) (6,010,946) 1,105,225 7,116,171
Fund balance,
beginning of year 13,449,468 13,449,468 13,449,468 -
Fund balance, end of year $ 10,707,433 $ 7,438,522 $ 14,554,693 $ 7,116,171
87
CITY OF EULESS, TEXAS
BUDGETARY COMPARISON SCHEDULE
CAR RENTAL SPECIAL REVENUE FUND
YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Car rental tax $ 13,590,352 $ 13,590,352 $ 14,776,566 $1,186,214
Investment income 35,000 35,000 137,758 102,758
Total revenues 13,625,352 13,625,352 14,914,324 1,288,972
Expenditures
General and administrative 9,160,235 9,985,093 9,817,396 167,697
Capital outlay 431,339 431,339 - 431,339
Total expenditures 9,591,574 10,416,432 9,817,396 599,036
Excess of revenues over
expenditures 4,033,778 3,208,920 5,096,928 1,888,008
Other financing uses
Transfers out (3,375,994) (3,375,994) (3,375,994) -
Total other
financing uses (3,375,994) (3,375,994) (3,375,994) -
Net change in fund balance 657,784 (167,074) 1,720,934 1,888,008
Fund balance, beginning of year 2,987,692 2,987,692 2,987,692 -
Fund balance, end of year $ 3,645,476 $ 2,820,618 $ 4,708,626 $ 1,888,008
88
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 depaitiiients 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 projects
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.
89
THE CITY OF
EuLEss
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 FUNDS
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.
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, 2018
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 $ 537,919 $ 1,884,264 $ 519,110 $ 967,389 $ -
Accounts receivable 213,000 - - - 153,312
Property taxes receivable - - - - -
Accrued interest receivable - 4,664 - - -
Due from other governments - 917,765 - 459,250 -
Prepaids - 4,927 - 7,500 -
Restricted deposits and investments - - - - -
Total assets $ 750,919 $ 2,811,620 $ 519,110 $ 1,434,139 $ 153,312
LIABILITIES
Liabilities
Accounts payable $ 327,473 $ 176,445 $ - $ 40,747 $ 152,906
Accrued salaries and wages - 78,926 - 109,219 -
Total liabilities 327,473 255,371 - 149,966 152,906
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
FUND BALANCES
Fund Balances
Nonspendable - 4,927 - 7,500 -
Restricted, debt service - 100,872 - - -
Restricted, capital projects - - - - -
Restricted, developer agreements - - - - -
Restricted,juvenile case management - - - - -
Restricted, cable PEG fees - - - - -
Restricted,historical preservation 1,245 - - - -
Assigned 422,201 2,450,450 519,110 1,276,673 406
Total find balances 423,446 2,556,249 519,110 1,284,173 406
Total liabilities, deferred inflows of
resources, and fund balances $ 750,919 $ 2,81 1,620 $ 519,110 $ 1,434,139 $ 153,312
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
$ 291,959 $ 276,045 $ 750,000 $ 678,217 $ 72,252 $ 661,291 $ 6,638,446
- 4,444 - - - 30,000 400,756
- - - 23,604 - - 23,604
- - - - - - 4,664
- - - - - - 1,377,015
- - - - - - 12,427
$ 291,959 $ 280,489 $ 750,000 $ 701,821 $ 72,252 $ 691,291 $ 8,456,912
$ - $ 3,321 $ - $ - $ 2,229 $ 895 $ 704,016
1,319 3,218 - - - - 192,682
1,319 6,539 - - 2,229 895 896,698
- 4,444 - - - - 4,444
- 4,444 - - - - 4,444
- - - - - - 12,427
- - 750,000 - - - 850,872
- 269,506 - - - - 269,506
- - - - - 690,396 690,396
- - - - - - 1,245
290,640 - - 701,821 70,023 - 5,731,324
290,640 269,506 750,000 701,821 70,023 690,396 7,555,770
$ 291,959 $ 280,489 $ 750,000 $ 701,821 $ 72,252 $ 691,291 $ 8,456,912
95
CITY OF EULESS, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2018
Capital Project Funds
Half-Penny
Sales Tax Developers' General Redevelopment
CIP Contribution CIP CIP
Fund Fund Fund Fund
ASSETS
Deposits and investments $ 2,377,114 $ 2,262,109 $ 1,561,779 $ 1,438,739
Accounts receivable - - 16,800 -
Property taxes receivable - - - -
Accrued interest receivable 3,995 5,962 - -
Due from other governments - - - -
Prepaids - - - -
Restricted deposits and investments - - - -
Total assets $ 2,381,109 $ 2,268,071 $ 1,578,579 $ 1,438,739
LIABILITIES
Liabilities
Accounts payable $ 20,803 $ - $ - $ 100,000
Accrued salaries and wages - - - -
Total liabilities 20,803 - - 100,000
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 - 2,268,071 - -
Restricted,juvenile case management - - - -
Restricted,cable PEG fees - - - -
Restricted,historical preservation - - - -
Assigned 2,360,306 - 1,578,579 1,338,739
Total fiord balances 2,360,306 2,268,071 1,578,579 1,338,739
Total liabilities,deferred inflows of
resources,and fund balances $ 2,381,109 $ 2,268,071 $ 1,578,579 $ 1,438,739
96
TIRZ#4 Car Capital Total
Midtown Midtown Rental Project Non-major
Reserve CIP CIP Funds Governmental
Fund Fund Fund Totals Funds
$ - $ - $ 2,132,503 $ 9,772,244 $ 16,410,690
- - - 16,800 417,556
- - - - 23,604
- - 9,735 19,692 24,356
- - - - 1,377,015
- - - - 12,427
999,725 595,191 - 1,594,916 1,594,916
$ 999,725 $ 595,191 $ 2,142,238 $ 11,403,652 $ 19,860,564
$ - $ 212,839 $ - $ 333,642 $ 1,037,658
- - - - 192,682
212,839 - 333,642 1,230,340
- - - - 4,444
- - - 4,444
- - - 12,427
- - - 850,872
999,725 382,352 - 1,382,077 1,382,077
- - 2,268,071 2,268,071
- - - - 269,506
- - - 690,396
- - - - 1,245
- - 2,142,238 7,419,862 13,151,186
999,725 382,352 2,142,238 11,070,010 18,625,780
$ 999,725 $ 595,191 $ 2,142,238 $ 11,403,652 $ 19,860,564
97
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND
BALANCES-NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2018
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 864,829 - - - -
General sales tax - 5,184,401 - 2,582,805 -
Investment income 8,254 17,974 7,496 13,639 -
DEA revenues - - 2,656 - -
Intergovernmental - - - - 309,758
Rents and royalties - 36,790 - - -
Other revenues - - - - -
Total revenues 873,083 5,239,165 10,152 2,596,444 309,758
Expenditures
Culture and recreation - 3,050,944 - - -
Development services - 287,949 - - -
General and administrative 324,323 259,940 - - -
Public safety - - - 2,519,245 290,420
Debt service
Principal - 35,000 - - -
Interest and fiscal charges - 1,373 - - -
Capital outlay 106,817 63,857 - 101,938 107,219
Total expenditures 431,140 3,699,063 - 2,621,183 397,639
Excess(deficiency)of revenues
over(under)expenditures 441,943 1,540,102 10,152 (24,739) (87,881)
Other financing sources (uses)
Proceeds from sale of assets - - - 14,105 -
Transfers in - - - - 64,099
Transfers out (622,521) (1,504,091) - - -
Total other
financing sources(uses) (622,521) (1,504,091) - 14,105 64,099
Net change in fund balances (180,578) 36,011 10,152 (10,634) (23,782)
Fund balance,
beginning of year 604,024 2,520,238 508,958 1,294,807 24,188
Fund balance,end of year $ 423,446 $ 2,556,249 $ 519,110 $ 1,284,173 $ 406
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
$ - $ - $ - $ 1,012,997 $ - $ - $ 1,012,997
- - - - 118,337 983,166
- - - 262,401 - - 8,029,607
4,358 3,644 - 6,936 - 9,327 71,628
- - - - - 2,656
- - - - - 309,758
- - - - - - 36,790
95,334 - - 988,302 - 1,083,636
4,358 98,978 - 1,282,334 988,302 127,664 11,530,238
- - - - - - 3,050,944
- - - - 287,949
72,029 - - 10,224 24,037 690,553
5,641 - - - - - 2,815,306
- - - - 35,000
- - - - - 1,373
- - - - 30,058 409,889
5,641 72,029 - - 10,224 54,095 7,291,014
(1,283) 26,949 - 1,282,334 978,078 73,569 4,239,224
- - - - - 14,105
- - - - - - 64,099
- - - (892,468) (951,888) - (3,970,968)
- - - (892,468) (951,888) - (3,892,764)
(1,283) 26,949 - 389,866 26,190 73,569 346,460
291,923 242,557 750,000 311,955 43,833 616,827 7,209,310
$ 290,640 $ 269,506 $ 750,000 $ 701,821 $ 70,023 $ 690,396 $ 7,555,770
99
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND
BALANCES-NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2018
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 37,460 36,792 20,251 26,218
DEA revenues - - - -
Intergovernmental - - - -
Rents and royalties - - 78,046 -
Other revenues - 139,892 - 2,675
Total revenues 37,460 176,684 98,297 28,893
Expenditures
Culture and recreation 90,561 142 840 -
Development services - - - -
General and administrative - - - 148,352
Public safety - - - -
Debt service
Principal - - - -
Interest and fiscal charges - - -Capital outlay 1,033,406 - - 657,353
Total expenditures 1,123,967 142 840 805,705
Excess(deficiency)of revenues
over(under)expenditures (1,086,507) 176,542 97,457 (776,812)
Other financing sources (uses)
Proceeds from sale of assets - - -
Transfers in 1,419,877 - 182,112 2,000,000
Transfers out - - - -
Total other
financing sources(uses) 1,419,877 - 182,112 2,000,000
Net change in fund balances 333,370 176,542 279,569 1,223,188
Fund balance,
beginning of year 2,026,936 2,091,529 1,299,010 115,551
Fund balance,end of year $ 2,360,306 $ 2,268,071 $ 1,578,579 $ 1,338,739
100
TIRZ#4 Car Capital Total
Midtown Midtown Rental Project Non-major
Reserve CIP CIP Funds Governmental
Fund Fund Fund Totals Funds
$ $ $ - $ - $ 1,012,997
- - - - 983,166
- - - - 8,029,607
- - 33,363 154,084 225,712
- - - - 2,656
- - 85,764 85,764 395,522
- - - 78,046 114,836
- - - 142,567 1,226,203
- - 119,127 460,461 11,990,699
- - - 91,543 3,142,487
- - - - 287,949
- - 1,477 149,829 840,382
- - - - 2,815,306
- - - - 35,000
- - - - 1,373
3,603,845 83,135 5,377,739 5,787,628
- 3,603,845 84,612 5,619,111 12,910,125
- (3,603,845) 34,515 (5,158,650) (919,426)
- - - - 14,105
1,595,100 5,197,089 5,261,188
- - (2,000,000) (2,000,000) (5,970,968)
- - (404,900) 3,197,089 (695,675)
- (3,603,845) (370,385) (1,961,561) (1,615,101)
999,725 3,986,197 2,512,623 13,031,571 20,240,881
$ 999,725 $ 382,352 $ 2,142,238 $ 11,070,010 $ 18,625,780
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax $ 922,950 $ 922,950 $ 864,829 $ (58,121)
Investment income 1,500 1,500 8,254 6,754
Total revenues 924,450 924,450 873,083 (51,367)
Expenditures
General and administrative 369,655 441,655 431,140 10,515
Total expenditures 369,655 441,655 431,140 10,515
Other financing uses
Transfers out (622,521) (622,521) (622,521) -
Total other financing uses (622,521) (622,521) (622,521) -
Net change in fund balance (67,726) (139,726) (180,578) (40,852)
Fund balance, beginning of year 604,024 604,024 604,024 -
Fund balance, end of year $ 536,298 $ 464,298 $ 423,446 ($ 40,852)
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax $ 5,542,604 $ 5,542,604 $ 5,184,401 $ (358,203)
Investment income 3,550 3,550 17,974 14,424
Rents and royalties - - 36,790 36,790
Total revenues 5,546,154 5,546,154 5,239,165 (306,989)
Expenditures
Culture and recreation 3,501,608 3,501,608 3,114,801 386,807
Development services 1,007,541 1,007,541 287,949 719,592
General and administrative 389,170 389,170 259,940 129,230
Debt service
Principal 35,000 35,000 35,000 -
Interest and fiscal charges 1,372 1,372 1,373 (1)
Total expenditures 4,934,691 4,934,691 3,699,063 1,235,628
Excess (deficiency) of revenues
over(under)expenditures 611,463 611,463 1,540,102 928,639
Other financing sources (uses)
Transfers out (1,715,770) (1,815,770) (1,504,091) 311,679
Total other financing
sources (uses) (1,715,770) (1,815,770) (1,504,091) 311,679
Net change in fund balance (1,104,307) (1,204,307) 36,011 1,240,318
Fund balance, beginning of year 2,520,238 2,520,238 2,520,238 -
Fund balance, end of year $ 1,415,931 $ 1,315,931 $ 2,556,249 $ 1,240,318
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 1,400 $ 1,400 $ 7,496 $ 6,096
DEA revenues - - 2,656 2,656
Total revenues 1,400 1,400 10,152 8,752
Expenditures
Public safety 200,500 200,500 - 200,500
Total expenditures 200,500 200,500 - 200,500
Excess (deficiency) of revenues
over(under)expenditures (199,100) (199,100) 10,152 209,252
Net change in fund balance (199,100) (199,100) 10,152 209,252
Fund balance, beginning of year 508,958 508,958 508,958 -
Fund balance, end of year $ 309,858 $ 309,858 $ 519,110 $ 209,252
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General sales tax $ 2,735,459 $ 2,735,459 $ 2,582,805 $ (152,654)
Investment income 3,200 3,200 13,639 10,439
Total revenues 2,738,659 2,738,659 2,596,444 (142,215)
Expenditures
Public safety 2,907,796 2,907,796 2,621,183 286,613
Total expenditures 2,907,796 2,907,796 2,621,183 286,613
Deficiency of revenues
under expenditures (169,137) (169,137) (24,739) 144,398
Other financing sources
Proceeds from sale of assets - - 14,105 14,105
Total other financing sources - - 14,105 14,105
Net change in fund balance (169,137) (169,137) (10,634) 158,503
Fund balance, beginning of year 1,294,807 1,294,807 1,294,807 -
Fund balance, end of year $ 1,125,670 $ 1,125,670 $ 1,284,173 $ 158,503
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Intergovernmental $ 181,855 $ 181,855 $ 309,758 $ 127,903
Total revenues 181,855 181,855 309,758 127,903
Expenditures
Public safety 235,537 235,537 397,639 (162,102)
Total expenditures 235,537 235,537 397,639 (162,102)
Deficiency of revenues
under expenditures (53,682) (53,682) (87,881) (34,199)
Other financing sources
Transfers in 53,682 53,682 64,099 10,417
Total other financing sources 53,682 53,682 64,099 10,417
Net change in fund balance - - (23,782) (23,782)
Fund balance, beginning of year 24,188 24,188 24,188 -
Fund balance, end of year $ 24,188 $ 24,188 $ 406 $ (23,782)
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 1,250 $ 1,250 $ 4,358 $ 3,108
Total revenues 1,250 1,250 4,358 3,108
Expenditures
Public safety 61,956 61,956 5,641 56,315
Total expenditures 61,956 61,956 5,641 56,315
Net change in fund balance (60,706) (60,706) (1,283) 59,423
Fund balance, beginning of year 291,923 291,923 291,923 -
Fund balance, end of year $ 231,217 $ 231,217 $ 290,640 $ 59,423
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Investment income $ 800 $ 800 $ 3,644 $ 2,844
Other revenues 91,000 91,000 95,334 4,334
Total revenues 91,800 91,800 98,978 7,178
Expenditures
General and administrative 90,167 90,167 72,029 18,138
Total expenditures 90,167 90,167 72,029 18,138
Net change in fund balance 1,633 1,633 26,949 25,316
Fund balance, beginning of year 242,557 242,557 242,557 -
Fund balance, end of year $ 244,190 $ 244,190 $ 269,506 $ 25,316
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
General property tax $ 1,083,308 $ 1,083,308 $ 1,012,997 $ (70,311)
General sales tax 279,342 279,342 262,401 (16,941)
Investment income - - 6,936 6,936
Total revenues 1,362,650 1,362,650 1,282,334 (80,316)
Other financing uses
Transfers out (965,350) (965,350) (892,468) 72,882
Total other
financing uses (965,350) (965,350) (892,468) 72,882
Net change in fund balance 397,300 397,300 389,866 (7,434)
Fund balance, beginning of year 311,955 311,955 311,955 -
Fund balance, end of year $ 709,255 $ 709,255 $ 701,821 $ (7,434)
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Other revenues $ 988,302 $ 988,302 $ 988,302 $ -
Total revenues 988,302 988,302 988,302 -
Expenditure s
General and administrative 36,014 36,014 10,224 25,790
Total expenditures 36,014 36,014 10,224 25,790
Excess of revenues over expenditures 952,288 952,288 978,078 25,790
Other fmancing uses
Transfers out (952,288) (952,288) (951,888) 400
Total other financing uses (952,288) (952,288) (951,888) 400
Net change in fund balance - - 26,190 26,190
Fund balance,beginning of year 43,833 43,833 43,833 -
Fund balance, end of year $ 43,833 $ 43,833 $ 70,023 $ 26,190
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, 2018
Variance with
Actual Final Budget
Budgeted Amounts GAAP Positive
Original Final Basis (Negative)
Revenues
Gross receipts tax $ 128,000 $ 128,000 $ 118,337 $ (9,663)
Investment income - - 9,327 9,327
Total revenues 128,000 128,000 127,664 (336)
Expenditures
General and administrative 60,000 60,000 24,037 35,963
Capital outlay 60,000 60,000 30,058 29,942
Total expenditures 120,000 120,000 54,095 65,905
Net change in fund balance 8,000 8,000 73,569 65,569
Fund balance,beginning of year 616,827 616,827 616,827 -
Fund balance, end of year $ 624,827 $ 624,827 $ 690,396 $ 65,569
111
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.
112
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2018
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
ASSETS
Deposits and investments $ 3,807,974 $ 4,508,945 $ 2,480,957 $ 10,797,876
Restricted deposits and investments 5,754 - - 5,754
Accounts receivable - 47,793 - 47,793
Prepaid expenses - 2,200 3,000 5,200
Accrued interest receivable 8,448 15,285 5,625 29,358
Total current assets 3,822,176 4,574,223 2,489,582 10,885,981
Property, plant, and equipment, at cost
Equipment 13,532,557 - 70,214 13,602,771
Less accumulated depreciation 7,608,530 - 39,232 7,647,762
Net property, plant, and equipment 5,924,027 - 30,982 5,955,009
Total assets 9,746,203 4,574,223 2,520,564 16,840,990
LIABILITIES
Accounts payable 8,282 10,763 296,042 315,087
Accrued salary and wages - 8,443 2,904 11,347
Accrued insurance claims - 608,000 2,843 610,843
Total current liabilities 8,282 627,206 301,789 937,277
Total liabilities 8,282 627,206 301,789 937,277
NET POSITION
Net investment in capital assets 5,929,781 - 30,982 5,960,763
Unrestricted 3,808,140 3,947,017 2,187,793 9,942,950
Total net position $ 9,737,921 $ 3,947,017 $ 2,218,775 $ 15,903,713
113
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES
IN NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2018
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
Operating revenues
Insurance premiums $ - $ 6,123,813 $ 515,001 $ 6,638,814
Service fees and miscellaneous 1,466,832 770,097 - 2,236,929
Total operating revenues 1,466,832 6,893,910 515,001 8,875,743
Operating expenses
General and administrative 325,112 1,924,693 88,745 2,338,550
Insurance costs - 3,821,353 871,384 4,692,737
Depreciation 1,316,696 - 6,397 1,323,093
Total operating expenses 1,641,808 5,746,046 966,526 8,354,380
Operating income (loss) (174,976) 1,147,864 (451,525) 521,363
Nonoperating revenues
Gain on sale of capital assets 245,405 - - 245,405
Investment income 52,486 56,996 32,546 142,028
Total nonoperating revenues 297,891 56,996 32,546 387,433
Income (loss)before transfers 122,915 1,204,860 (418,979) 908,796
Transfers
Transfers in 870,414 250,000 484,000 1,604,414
Change in net position 993,329 1,454,860 65,021 2,513,210
Net position, beginning of year 8,744,592 2,492,157 2,153,754 13,390,503
Net position, end of year $ 9,737,921 $ 3,947,017 $ 2,218,775 $ 15,903,713
114
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED SEPTEMBER 30, 2018
Equipment
Replacement Insurance Risk/WC
Fund Fund Fund Total
OPERATING ACTIVITIES
Cash received from customers $ 1,492,702 $ 7,420,153 $ 515,001 $ 9,427,856
Cash payments to suppliers for goods and services (316,830) (5,951,083) (892,255) (7,160,168)
Cash payments to employees for services - (76,977) (58,374) (135,351)
Net cash provided by(used in)operating activities 1,175,872 1,392,093 (435,628) 2,132,337
NONCAPITAL FINANCING ACTIVITIES
Transfers in 870,414 250,000 484,000 1,604,414
Net cash provided by noncapital financing activities 870,414 250,000 484,000 1,604,414
CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets (1,670,672) - - (1,670,672)
Proceeds from sale of capital assets 271,041 - - 271,041
Net cash used in capital and related financing activities (1,399,631) - - (1,399,631)
INVESTING ACTIVITIES
Interest received on investments 44,597 48,899 27,892 121,388
Net cash provided by investing activities 44,597 48,899 27,892 121,388
Net increase in cash and cash equivalents 691,252 1,690,992 76,264 2,458,508
Cash and cash equivalents,beginning of year 3,122,476 2,817,953 2,404,693 8,345,122
Cash and cash equivalents,end of year $ 3,813,728 $ 4,508,945 $ 2,480,957 $ 10,803,630
Reconciliation of operating income (loss)to net
cash provided by(used in)operating activities
Operating income(loss) $ (174,976) $ 1,147,864 $ (451,525) $ 521,363
Adjustments to reconcile operating income(loss)to
net cash provided by(used in)operating activities
Depreciation expense 1,316,696 - 6,397 1,323,093
Change in assets and liabilities
Receivables 25,870 526,243 - 552,113
Prepaids - 3,174 (3,000) 174
Accounts payable 8,282 (8,841) 14,142 13,583
Accrued salaries and wages - 653 (1,642) (989)
Accrued insurance claims - (277,000) - (277,000)
Net cash provided by(used in)operating activities $ 1,175,872 $ 1,392,093 $ (435,628) $ 2,132,337
Reconciliation of cash to balance sheet:
Cash- current $ 3,807,974 $ 4,508,945 $ 2,480,957 $ 10,797,876
Cash-restricted 5,754 - - 5,754
Cash and cash equivalents $ 3,813,728 $ 4,508,945 $ 2,480,957 $ 10,803,630
115
CITY OF EULESS, TEXAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ESCROW AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2018
Balance Balance
October 1, September 30,
2017 Additions Deductions 2018
Stars Center Escrow Fund
Assets
Investments at fair value $ 1,424,113 $ 25,754 $ (22,379) $ 1,427,488
Total assets $ 1,424,113 $ 25,754 $ (22,379) $ 1,427,488
Liabilities
Due to other entities $ 1,420,547 $ - $ - $ 1,420,547
Refunds payable 3,566 6,941 (3,566) 6,941
Total liabilities $ 1,424,113 $ 6,941 $ (3,566) $ 1,427,488
116
STATISTICAL SECTION
(Unaudited)
117
THE CITY OF
EuLEss
118
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.
119
CITY OF EULESS, TEXAS
NET POSITION BY COMPONENT—LAST TEN FISCAL YEARS
(Accrual Basis of Accounting—Unaudited)
Table 1
Fiscal Year
2009 2010* 2011 2012 2013 2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets $ 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 $ 112,710,338
Restricted 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 13,620,993
Unrestricted 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 10,698,663
Total governmental activities net position $ 97,972,650 $ 100,124,897 $ 104,318,579 $ 109,447,971 $ 117,277,635 S 123,083,358 $ 122,508,982 $ 129,255,119 $ 136,269,089 5 137,029,994
Business-type activities
Net investment in capital assets $ 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 $ 63,283,054
Restricted for debt service 3,963,919 438,340 438,948 309,595 314,171 317,758 733,562 733,164 733,264 1,018,037
Restricted for capital projects - - - - - 232,300 1,183,350 4,265,268 1,166,442 3,962,644
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 2,895,677
Unrestricted 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 12,286,319
Totalbusiness-typeactivitiesnetposition $ 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 $ 83,445,731
Primary government
Net investmentincapitalassets $ 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 $ 175,993,392
Restricted 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 21,497,351
Unrestricted 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 22,984,982
Total primary government net position $ 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 $ 220,475,725
Source: Comprehensive Annual Financial Reports
* Recalculated
120
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION-LAST TEN FISCAL YEARS
(Accrual Basis of Accounting-Unaudited)
Table 2
Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Expenses
Governmental activities:
Culture and recreation $ 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 $ 7,070,484
Development services 1,707,421 1,692,845 1,707,148 972,770 1,155,089 1,367,005 877,713 918,214 999,153 1,038,328
General and administrative 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 21,356,342
Highways and streets 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 3,787,336
Public safety 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 27,424,253
Interest on long-term debt 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 1,632,302
Total governmental activities expenses 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 62,309,045
Business-type activities:
Water and wastewater 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 23,225,786
Drainage utility 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 1,515,183
Golf 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 4,764,095
Other recreation enterprises 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 2,416,337
Total business-type activities expenses 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 31,921,401
Total printary government expenses 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 94,230,446
Program Revenues
Governmental activities:
Fees,fines,and charges for services
Culture and recreation 67,283 66,368 69,950 65,912 297,361 304,283 317,024 291,349 264,307 252,000
Development services 783,955 751,323 779,939 1,263,477 1,186,347 1,321,040 1,409,703 1,717,416 2,019,496 1,875,120
General and administrative 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 1,066,075
Highways and streets 11,008 - - 54,622 112,736 218,012 93,258 350,920 607,588 988,302
Public safety 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 3,104,895
Operating grants and contributions 487,059 511,093 469,404 481,655 2,978,933 633,080 597,437 578,007 592,870 740,969
Capital grants and contributions 268,130 602,372 1,015,402 689,642 1,213,341 1,552,118 3,228,945 3,375,733 2,356,556 2,354,450
Total governmental activities program revenues 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 10,381,811
Business-type activities:
Charges for services
Water and wastewater 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 27,504,814
Drainage utility 689,889 691,800 694,751 705,474 708,984 712,971 716,595 725,152 730,202 818,622
Golf 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 4,337,003
Other recreation enterprises 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 2,123,825
Operating grants and contributions - - - - - - - - - -
Capital grants and contributions 1,705,746 26,400 772,714 368,882 1,847,097 2,037,263 1,746,638 2,943,188 2,280,769 1,729,219
Total business-type activities program revenues 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 36,513,483
Total pruriarygoveum>rnt program revenues 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 46,895,294
(Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued) (Continued)
121
CITY OF EULESS, TEXAS
CHANGES IN NET POSITION-LAST TEN FISCAL YEARS
(Accrual Basis of Accounting-Unaudited)-Continued
Table 2
Net(Expense)Revenue
Goveuu,sentalactivities $ (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) $ (51,927,234)
Business-type activities 1,271,476 786,406 3,406,339 77,701 1,534,196 (143,162) 1,617,746 4,629,695 3,581,603 4,592,082
Total primary government net expense (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) (47,335,152)
General Revenues
and Other Changes in Net Position
Goveuunental activities:
Taxes
Property taxes,levied for general purposes 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 18,630,301
Sales taxes 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 20,728,210
Car rental taxes 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 14,776,566
Mixed beverage taxes 76,433 71,653 66,383 54,138 60,823 69,160 84,533 101,503 128,250 154,035
HoteVmotel occupancy taxes 185,417 237,429 272,809 292,931 329,368 343,312 391,991 696,805 798,905 864,829
Gross receipts taxes 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 4,811,119
Investment income 863,225 292,761 168,929 132,607 106,521 70,374 127,367 271,786 451,406 963,670
Rents and royalties - - - 397,527 1,481,305 1,390,283 1,166,832 1,105,829 1,149,534 1,223,788
Gain/(loss)on disposal of assets 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 35,128 692,939 755,996 772,773
Transfers 90,303 647,463 904,867 690,629 692,951 531,974 722,702 (703,751) (233,569) 760,590
Total governmental activities 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 63,685,881
Business-type activities:
Investment income 254,071 87,799 66,161 60,752 40,045 34,063 40,282 104,618 158,805 385,513
Gain on disposal of assets - 3,579 (141,979) - 41,630 - 4,199 13,185 57,466 2,873
Miscellaneous 21,987 - - - - - - - - -
Transfers (90,303) (647,463) (904,867) (690,629) (692,951) (531,974) (722,702) 703,751 233,569 (760,590)
Total business-type activities 185,755 (556,085) (980,685) (629,877) (611,276) (497,911) (678,221) 821,554 449,840 (372,204)
Total primary government 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 63,313,677
Change in Net Position
Goveuunentalactivities 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 11,758,647
Business-type activities 1,457,231 230,321 2,425,654 (552,176) 922,920 (641,073) 939,525 5,451,249 4,031,443 4,219,878
Total primary goverment $ 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 $ 15,978,525
(concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded) (concluded)
Source: Comprehensive Annual Financial Reports
122
CITY OF EULESS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS-LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting-Unaudited)
Table 3
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Fund
Reserved for other $ 354,882 $ 492,776 $ - $ - $ - $ - $ - $ - $ - $ -
Nonspendable - - 19,344 28,796 49,262 48,072 47,834 35,250 52,050 51,409
Restricted - - 311,076 258,765 124,312 120,093 109,618 121,041 104,340 125,753
Assigned - - 103,423 111,096 121,542 121,334 116,336 113,655 107,657 121,708
Unreserved/Unassigned 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 14,255,823
Total general fund $ 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 $ 14,554,693
All Other Governmental Funds
Reserved for:
Debt service $ 1,987,783 $ 1,622,584 $ - $ - $ - $ - $ - $ - $ - $ -
Development Agreements 1,553,876 1,454,496 - - - - - - - -
Other 1,245 7,677 - - - - - - - -
Unreserved,reported in:
Special revenue fiords 6,020,996 7,780,378 - - - - - - - -
Capital Inds 10,918,516 5,792,872 - - - - - - - -
Nonspendable - - 5,665 5,803 9,464 34,704 15,399 7,738 22,028 12,427
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 2,765,013
Capital projects - - 2,168,956 606,505 365,641 398,756 594,211 12,715,424 4,985,922 7,501,009
Other - - 87,972 1,694,821 1,872,178 2,089,735 2,455,941 2,718,045 2,952,158 3,229,218
Assigned - - 14,855,820 15,802,863 13,504,412 12,692,185 13,765,385 12,541,184 14,730,171 21,356,289
Total all other governmental fiords $ 20,482,416 $ 16,658,007 $ 18,937,370 S 19,977,963 $ 17,528,339 $ 17,593,090 $ 19,308.917 $ 29,977,939 $ 24,975,998 $ 34,863,956
Note: The City of Euless first applied GASB Statement No.54'Fund Balance Reporting and Governmental Fund Type Definitions"'in fiscal year 2011. Reclassification of fund balances for prior years was not required.
Source: Comprehensive Annual Financial Reports
123
CITY OF EULESS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting-Unaudited)
Table 4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues:
General property tax $ 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 18,652,639
Gross receipts tax 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 5,829,983
General sales tax 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 20,728,209
Car rental tax 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 14,776,566
Fines and fees 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 3,806,964
Licenses and permits 783,955 719,918 744,978 1,233,465 1,152,875 1,286,753 1,379,332 1,682,431 1,997,082 1,847,315
Investment income 742,444 253,302 143,564 107,195 92,118 57,880 105,443 237,949 385,769 821,642
DEA revenues 14,883 15,350 6,589 12,488 3,571 15,316 39,292 18,274 9,994 2,656
Intergovernmental 379,503 376,512 377,660 1,012,673 2,839,545 461,484 906,695 507,966 1,490,142 813,633
Rents and royalties - 1,620,210 1,233,686 1,111,873 1,024,021 1,390,283 637,196 612,365 628,486 668,036
Other revenues 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 2,217,797
Total Revenues 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 70,165,440
Expenditures:
Culture and recreation 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 6,372,535
Development services 1,355,105 1,251,706 1,340,898 688,296 806,275 1,017,903 882,212 862,571 931,119 1,036,278
General and administrative 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 19,790,021
Highways and streets 861,885 610,996 713,742 861,748 1,144,223 1,351,404 1,606,372 1,688,714 1,616,714 1,222,905
Public safety 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 26,977,362
Debt Service:
Principal 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 4,761,697
Interest and fiscal charges 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 1,662,399
Issuance costs - 95,000 178,229 184,966 26,064 - - - - -
Capital outlay 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 6,839,864
Total expenditures 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 68,663,061
Excess(deficiency)of revenues
over(under)expenditures (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) 1,502,379
Other Financing Sources(Uses):
Capital lease - - 494,322 - 1,446,603 - - - 249,370 -
Issuance ofdebt - 8,110,000 9,610,000 9,740,000 1,160,000 - 11,400,000 20,760,000 - 9,805,000
Payment of escrow for refunding - (8,443,763) (6,804,790) (5,381,310) (1,190,252) - (6,074,450) - - -
Bond premium - - 390,694 260,435 79,046 - 789,428 403,354 - 264,116
Bond discount - (94,828) - - - - - - - 23,513
Transfers in 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 13,942,847
Transfers out (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) (14,544,672)
Total other financing sources (134,697) (474,097) 4,370,093 5,084,754 1,934,683 157,304 5,590,863 19,548,351 (2,083,235) 9,490,804
Net change in fund balances $ (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) $ 10,993,183
Debt service as a percentage
ofnoncapital expenditures 11.4% 11.9% 11.6% 18.5% 10.1% 12.1% 9.9% 9.2% 9.0% 10.4%
Source: Comprehensive Annual Financial Reports
124
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
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
2018 3,922,338,493 564,286,167 4,486,624,660 492,318,425 3,994,306,235 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.
125
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 Colleyville ISD Tarrant County Hospital District College
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
2018 0.361056 0.101444 0.462500 1.2630 1.3967 0.2440 0.2244 0.1401
Sources: City of Euless Budget Office,Tarrant Appraisal District
126
CITY OF EULESS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
(Unaudited)
Table 7
Fiscal Year 2018 Fiscal Year 2009
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value(1) Taxpayer Value Value(2)
Star Monticello LLC/Star Kensington LLC $ 95,840,000 2.40 % Avis Budget Group LLC $ 71,494,412 2.69%
EAN Holdings LLC 81,218,610 2.03 Hertz Corp 59,138,506 2.22
Westdale Hllls 2013 LP 77,281,893 1.93 Vanguard Car Rental USA,Inc. 55,180,417 2.07
CH Realty VI/MF Colleyville 2801 LP 76,600,000 1.92 UDR The Mandolin LLC 38,448,160 1.45
WOP Mandolin LLC 76,035,193 1.90 Somerset Village Partners LP 36,903,507 1.39
Stoneleigh at Bear Creek Apt. 62,675,000 1.57 Oncor Electric Delivery Co.LLC 36,706,608 1.38
CMF 15 Portfolio LLC 58,401,630 1.46 CMF 15 Portfolio LLC 32,500,000 1.22
Avenue 900 Holdings LLC 53,900,000 1.35 IRA Stoneleigh FEECO LLC 32,200,000 1.21
LSREF3 Bravo(Dallas)LLC 53,760,000 1.35 Vineyard Village MSV LLC 31,421,752 1.18
Avis Rent a Car System LLC/Budget Car Rental 50,884,895 1.27 Seramont II LP 30,563,740 1.15
Total $ 686,597,221 17.18 % Total $ 424,557,102 15.96%
Source: Tarrant County Tax Office
Notes:
(1) Total Taxable Value including real and personal property for tax year 2017(fiscal year 2018)is$3,994,306,235.
(2) Total Taxable Value including real and personal property for tax year 2008(fiscal year 2009)is$2,660,000,740.
127
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
2009 12,747,343 (125,632) 12,621,711 12,556,281 99.48% 25,856 12,582,137 99.69% 39,574 0.31%
2010 12,318,061 (12,986) 12,305,075 12,182,266 99.00% 113,155 12,295,421 99.92% 9,654 0.08%
2011 11,796,659 (39,704) 11,756,955 11,637,719 98.99% 108,502 11,746,221 99.91% 10,734 0.09%
2012 12,436,816 (89,925) 12,346,891 12,252,510 99.23% 80,358 12,332,868 99.89% 14,023 0.11%
2013 12,926,215 (222,482) 12,703,733 12,648,635 99.55% 39,879 12,688,514 99.88% 15,219 0.12%
2014 13,426,248 (69,281) 13,356,967 13,303,694 99.59% 35,820 13,339,514 99.87% 17,453 0.13%
2015 14,245,865 (192,511) 14,053,354 14,049,020 99.93% (12,658) 14,036,362 99.88% 16,991 0.12%
2016 13,671,980 869,794 14,541,774 14,481,033 99.58% 38,929 14,519,962 99.85% 21,812 0.15%
2017 15,828,162 383,475 16,211,637 16,191,555 99.51% (9,188) 16,182,367 99.82% 29,270 0.18%
2018 18,199,497 - 18,199,497 18,131,429 99.63% - 18,131,429 99.63% 68,068 0.37%
Source: Tarrant County Tax Office and Tarrant Appraisal District
128
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 Refimdings(1) Bonds Bonds Bonds Refiandings(1) Government Income(3) Capita(3)
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) 4,285,000 6,915,000 237,146 (2) 40,178,709 2.53% $ 731
2015 20,655,000 8,365,000 285,000 -
994,148 (2) 10,940,000 6,320,000 211,601 (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 - 5,695,000 186,063 (2) 64,218,939 3.94% $ 1,184
2017 14,490,000 27,350,000 - 860,000 75,000 160,545 1,099,640 (2) 9,540,000 - 5,240,000 168,446 (2) 58,983,631 3.62% $ 1,075
2018 11,460,000 35,660,000 735,000 40,000 83,848 1,211,502 1�1 11,545,000 - 4,770,000 150,830 (2) 65,656,180 3.82% $ 1,190
Note: Details regarding the City's outstanding debt can be found in the notes to the Financial Statements.
(1)Column added to table in 2016;prior year figures have been restated to include amounts reflected.
(2)Calculations for fiscal years after 2013 do not include losses on refiandings due to their balance sheet reclassification to Deferred Inflows of Resources.
(3)See Table 14 for personal income and population data.
129
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 Recalculated(6)
General Certificates on Debt Issues Less:Debt Net 0/S Net Debt Net General
Fiscal Obligation of and Losses on Service Debt Estimated Taxable to Taxable Debt Per
Year Bonds Obligation Refundings(1) Reserves Total(6) Population(2) Value(3) Value Capita
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) 684,246 42,666,210 54,200 2,589,844,156 1.65% $ 787
2011 37,910,000 6,590,000 (1,074,877) 880,619 42,544,504 51,277 2,522,998,708 1.69% $ 830
2012 38,080,000 3,230,000 (1,126,577) 956,430 39,226,993 51,500 2,651,724,005 1.48% $ 762
2013 34,590,000 2,910,000 (721,626) 807,054 35,971,320 51,750 2,756,141,770 1.31% $ 695
2014 30,985,000 2,780,000 883,948 (5) 796,454 33,852,494 53,780 2,864,049,903 1.18% $ 629
2015 (4) 26,975,000 8,365,000 1,228,901 (5) 813,841 35,755,060 54,050 3,060,003,254 1.17% $ 662
2016 23,120,000 27,710,000 1,446,619 (5) 1,056,021 51,220,598 54,250 3,454,590,524 1.48% $ 944
2017 19,730,000 27,350,000 1,288,664 (5) 1,398,495 46,970,169 54,870 3,551,269,846 1.32% $ 856
2018 16,230,000 35,660,000 1,381,631 (5) 1,914,141 51,357,490 55,170 3,994,306,235 1.29% $ 931
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) Calculations for fiscal years after 2013 do not include losses on refundngs due to their balance sheet reclassification to Deferred Inflows of Resources.
(6) For the 9/30/2018 presentation,tax notes and leases were removed as these debt instruments are not considered bonded debt.
130
CITY OF EULESS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2018—(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 $ 415,917,406 8.82% $ 36,683,915
Hurst-Euless-Bedford Independent School District 299,715,000 21.19% 63,509,609
Tarrant County 294,500,000 2.20% 6,479,000
Tarrant County Hospital District 19,300,000 2.20% 424,600
Tarrant County College District - 2.20% -
Subtotal, overlapping debt 107,097,124
Debt repaid with property taxes
City of Euless (direct debt) 48,733,366 100.00% 48,733,366
Total direct and overlapping debt repaid with property taxes $ 155,830,490
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.
131
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE WATER AND WASTEWATER BONDS —LAST TEN FISCAL YEARS
(Unaudited)
Table 12
Interest
Less Net and
Fiscal Total Operating Revenue Fiscal Coverage
Year Revenues(1) Expenses(2) Available Principal Charges Total Ratio
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
2018 27,828,648 20,880,984 6,947,664 780,000 184,154 964,154 7.21
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
132
CITY OF EULESS, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE DRAINAGE UTILITY BONDS -LAST TEN FISCAL YEARS
(Unaudited)
Table 13
Interest
Less Net and
Fiscal Total Operating Revenue Fiscal Coverage
Year Revenues (1) Expenses(2) Available Principal Charges Total Ratio
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 - - - -
2012 707,165 604,994 102,171 - - - -
2013 711,154 567,215 143,939 - - - -
2014 715,800 663,625 52,175 - - - -
2015 717,763 581,364 136,399 - - - -
2016 812,399 666,628 145,771 - - - -
2017 741,055 629,112 111,943 - - - -
2018 840,916 741,964 98,952 - - - -
Notes: (1) Operating and nonoperating revenues of drainage utility fund
(2) Total operating expenses of drainage utility fund exclusive of depreciation and amortization
133
CITY OF EULESS, TEXAS
DEMOGRAPHIC STATISTICS —LAST TEN FISCAL YEARS
(Unaudited)
Table 14
Personal
Per Income
Fiscal Estimated Capita (thousands Median School Unemployment
Year Population(1) Income (2) of dollars) Age(2) Enrollment(3) Rate (4)
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%
2018 55,170 $ 31,117 $ 1,716,725 34.9 23,632 3.5%
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
134
CITY OF EULESS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited)
Table 15
2018 2009
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employer Employees Employment
LSG Sky Chefs, Inc. 1,000 4.40% HEB ISD 818 3.55%
HEB ISD 845 3.72% LSG Sky Chefs, Inc. 800 3.47%
Autogrill Group, Inc. 450 1.98% City of Euless 392 1.70%
City of Euless 390 1.71% Autogrill Group, Inc. 350 1.52%
Target 250 1.10% Beall Concrete 250 1.08%
Lowe's 225 0.99% Super Target 190 0.82%
Redi Mix Concrete 190 0.84% Life Outreach International 185 0.80%
Life Outreach International 186 0.82% TJ Lambrecht Construction 122 0.53%
Dave and Buster's 150 0.66% Home Depot 125 0.54%
Lazy Dog 125 0.55% Lowe's 114 0.49%
Total 3,811 16.77% 3,346 14.50%
Source: City of Euless Planning and Development Department
135
CITY OF EULESS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM-LAST TEN FISCAL YEARS
(Unaudited)
Table 16
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Government
and Administration 54.50 50.00 48.50 48.50 48.50 48.50 48.00 49.50 50.00 51.00
Public Safety 126.00 118.00 121.00 129.00 132.00 135.00 136.00 136.00 136.00 137.00
Fire Safety 73.00 71.00 71.00 72.00 72.00 72.00 72.00 72.00 75.00 75.00
Development Services 12.00 11.50 13.50 6.00 6.00 7.50 7.50 7.50 8.00 7.50
Culture and Recreational 36.00 30.00 31.00 32.00 30.50 33.25 34.25 34.25 35.25 35.25
Water and Wastewater 50.00 46.00 42.00 42.50 42.00 42.00 42.00 42.50 42.50 43.50
Golf Course 17.25 13.00 13.00 13.00 12.00 10.75 11.75 11.75 11.75 11.75
Public Works 15.75 14.00 17.50 18.50 18.50 18.50 20.00 20.00 21.00 22.50
Service Center 6.00 5.00 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 392.00 360.00 364.00 368.00 368.00 374.00 378.00 380.00 386.00 390.00
Source: City Budget Office
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CITY OF EULESS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM-LAST TEN FISCAL YEARS
(Unaudited)
Table 17
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Safety
Police
Number of Certified Officers 85 85 85 85 87 92 92 92 87 91
Number of Citations Issued 29,925 24,126 21,790 22,787 26,356 25,500 24,573 18,483 25,061 19,100
Fire
Number of Certified Firefighters 70 69 69 70 70 70 70 70 72 73
Number of Alarms 3,827 4,097 4,196 4,204 4,296 4,505 4,686 4,770 4,678 3,758
Number of EMS Calls 2,634 2,793 2,848 2,982 3,108 3,230 3,424 3,431 3,772 3,468
Municipal Court
Cases Filed 33,670 31,442 27,022 26,889 32,192 31,172 28,885 25,957 25,061 25,101
Development
Number Residential Inspections-New 100 101 52 44 42 107 176 186 176 214
Number Commercial Inspections-New 16 14 11 29 16 29 33 15 36 32
Number Multifamily Inspections-New 0 0 0 0 0 1 1 0 0 1
Public Works
StreetOverlay(SquareFootage) 797,326 770,380 953,406 368,654 540,613 631,260 430,504 1,156,833 1,549,065 1,063,046
Cultural and Recreational
Parks and Recreation
Recreation Center Memberships 3,703 2,443 4,337 3,654 5,137 6,261 6,742 (1) 6,975 6,528 7,183
Water and Wastewater
Number of Water Consumers 24,677 24,760 24,924 24,428 25,039 25,319 26,014 25,812 25,970 26,200
Water Produced(In Gallons x 1000) 730,291 579,154 477,914 299,107 416,843 380,864 741,225 540,921 439,255 580,337
Water Purchased-TRA(In Gallons x 1000) 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 1,767,677
Water Supplied(In Gallons x 1000) 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 2,348,014
Annual Rainfall(In Inches) 36.32 38.65 22.26 36.57 24.41 23.98 44.45 53.16 34.96 42.39
Golf Course
Number of Paid Rounds Played 43,029 32,996 35,075 34,550 35,890 22,110 (2) 33,735 32,852 33,237 32,557
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'V2 months for renovations in 2014.
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CITY OF EULESS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM-LAST TEN FISCAL YEARS
(Unaudited)
Table 18
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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) 217.6 217.6 332.1 332.4 333.36 340.62 342.80 344.77 350.12 350.12
Cultural and Recreational
Swimming Pools 3 3 3 3 4 3 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 6 6 6 6 6 6 6 6
Ampitheater 2 2 2 2 2 3 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 33 33 33 33 28 28 30 30 30
Library Holdings 103,122 106,121 110,149 111,230 111,312 105,500 98,596 101,160 85,123 80,241
Water and Wastewater
Water Mains-Potable(5) 226.80 228.20 228.50 227.99 231.06 232.28 234.84 235.50 236.30 239.10
Water Mains-Reclaimed(5) - - - - 1.73 3.22 3.70 3.82 3.96 4.12
Fire Hydrants 1,477 1,525 1,526 1,550 1,579 1,633 1,648 1,674 1,719 1,798
Wastewater Mains(5) 186.3 186.5 186.7 187.6 187.6 191.3 192.4 193.2 195.2 197.0
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.
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