HomeMy WebLinkAboutComprehensive Annual Financial Report (CAFR)-Audit Records-9/30/2003
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PATTILLO. BROWN & HILL.L.L.p.
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS CONSULTANTS
The Mayor, Members of
City Council and City Manager
City ofColleyvilIe, Texas
Gentlemen:
In planning and performing our audit of the basic financial statements of the City of Colleyville,
Texas, for the year ended September 30, 2003, we considered the City's internal control structure to
determine our auditing procedures for the purpose of expressing an opinion on the basic financial
statements and not to provide assurance on the internal control structure.
However, during our audit we became aware of several matters that, while not involving material
weaknesses in internal accounting control, are opportunities for strengthening internal controls and
operating efficiency. The memorandum that accompanies this letter summarizes our comments and
suggestions regarding those matters. This letter does not affect our report dated November 21,2003, on
the basic financial statements of the City ofColleyvilIe, Texas.
We will review the status of these comments during our next audit engagement. We have already
discussed many ofthese comments and suggestions with various City personnel, and we will be pleased to
discuss them in further detail at your convenience, to perform any additional study of these matters, or to
assist you in implementing the recommendations.
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November 21, 2003
401 WEST HIGHWAY 6 . P. O. BOX 20725 . COLLEYVILLE, TX 76702-0725 . (254) 772-4901. FAX: (254) 772-4920. www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 . HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460. ALBUQUERQUE, NM (505) 266-5904. RIO RANCHO, NM (505) 898-3516
CITY OF COLLEYVILLE, TEXAS
COMMENTS AND SUGGESTIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
EVALUATION OF POTENTIAL COMPONENT UNITS
Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting
Entity, establishes standards for defining and reporting on the financial reporting entity. Recently,
GASB amended Statement No. 14 with GASB Statement No. 39, Determining Whether Certain
Organizations Are Components Units. Statement No. 39 establishes additional guidance on the
application of existing standards for the assessment of potential component units in determining the
financial reporting entity. Generally, it requires reporting as a component unit an organization that
raises and holds economic resources for the direct benefit of the City, its component units or its
constituents. This additional guidance will require the City to determine whether certain organizations
for which the City is not financially accountable should be reported as component units based on their
relationship with the City.
We recommend the City reevaluate potential component units using the additional criteria. If an
organization is identified as a new component unit, the City will need to obtain its financial statements
and include the entity as part of the City's financial statements. The City will be required to implement
the new standard in the fiscal year ending September 30, 2004.
ANTIFRAUD PROGRAMS AND CONTROLS
Antifraud programs and controls are the policies and procedures put in place by an organization
to help ensure that management directives are carried out. They are part of the overall system of internal
control established to achieve reliability of financial reporting, effectiveness and efficiency of operations
and compliance with applicable laws and regulations. An organization's management is responsible for
designing and implementing effective systems and procedures for preventing, deterring and detecting
fraud. With the recently intensified focus on fraudulent financial statement reporting, as well as the
ever-present risk of misappropriation of assets, many organizations are now more interested in
establishing effective antifraud programs and controls,
The risk of fraud can be reduced through a combination of prevention, deterrence and detection
measures. However, fraud can be difficult to detect, and the time and expense required for fraud
investigation can be very costly. Therefore, it is essential to place a strong emphasis on fraud prevention
to reduce opportunities for fraud and fraud deterrence that discourages individuals from committing
fraud because of the likelihood of detection and punishment.
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The AICP A fraud task force of the Auditing Standards Board commissioned a group of
organizations and individuals with expertise in the area of fraud prevention, deterrence and detection to
develop guidance to help companies improve their antifraud programs and controls. In November 2002,
the AICP A and six other professional organizations jointly published a document titled, "Management
Antifraud Programs and Controls: Guidance to Help Prevent. Deter and Detect Fraud." This document
identifies measures entities can implement to prevent, deter and detect fraud. It discusses these
measures in the context of three fundamental elements. Broadly stated, these fundamental elements are:
1) create and maintain a culture of honesty and high ethics;
2) evaluate the risks of fraud and implement the processes, procedures and controls
needed to mitigate the risks and reduce the opportunities for fraud; and
3) develop an appropriate oversight process.
Although we detected no fraud during our test work, Statement of Auditing Standards No. 99
"Consideration of Fraud in a Financial Statement Audit" recommends the City develop a heightened
"fraud awareness" and an appropriate fraud risk-management program. An effective system of antifraud
program and controls should encompass prevention, deterrence and detection techniques and activities.
PRIOR YEAR COMMENTS
VALUATION OF INVESTMENTS
Prior Year Comment:
In accordance with GASB Statement No. 31, investments, which have a remaining term of one
year or more at the time of purchase, should be reported at their fair value. The City held investments at
year-end with remaining terms from date of purchase of a year or more which should have been reported
at fair value.
The City should evaluate investments at year-end to determine the amount of investments with
maturities in excess of one year from date of purchase and the potential impact of adjusting such
investments to fair value. We will meet with the City accounting personnel during the year to assist in
developing these procedures and will also review any necessary adjustments prior to the closing of the
books.
Current Status:
This matter has been resolved.
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We appreciate this opportunity to be of service to the City of Colleyville, Texas. Should you
have any questions or require further information, please do not hesitate to call.
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CITY OF
COLLEYVILLE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2003
CITY OF COLLEYVILLE, TEXAS
TABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30, 2003
INTRODUCTORY SECTION
Letter of Transmittal.........................
Organizational Chart........... ......... ........
Certificate of Achievement.
Principal Officials ...............
FINANCIAL SECTION
Independent Auditors' Report.........
Management's Discussion and Analysis ...........
Basic Financial Statements
Statement of Net Assets.....
Statement of Activities............................. ........................
Balance Sheet - Govemmental Funds .................................................
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds ...... .................
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balance of Governmental Funds to the
Statement of Activities................................. ...............
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - General Fund.
(continued)
Exhibit/Table
Page
Number
2-5
6
7
8
11 - 12
14 - 22
24 - 25
26 - 27
28 - 29
30 - 31
32
33
CITY OF COLLEYVILLE, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30, 2003
FINANCIAL SECTION (Continued)
Basic Financial Statements (Continued)
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Debt Service Fund
Statement of Net Assets - Proprietary Funds .....................
Statement of Revenues, Expenses and Changes in Fund
Net Assets - Proprietary Funds...................... ..............
Statement of Cash Flows - Proprietary Funds...
Statement of Fiduciary Net Assets..................
Notes to Basic Financial Statements
Nonmajor Governmental Funds
Combining Balance Sheet...........
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances........ ............. ....................
Al!encv Funds
Combining Statement of Fiduciary Net Assets.
Combining Statement of Changes in Assets and Liabilities................
(continued)
Exhibit/Table
Page
Number
34
35
36
37 - 38
39
40-64
68 - 71
72 - 75
78
79
CITY OF COLLEYVILLE, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30, 2003
STATISTICAL SECTION (Unaudited)
General Govemmental Expenditures by Function
General Govemmental Revenue by Source
Property Tax Levies and Collections......................................................
Assessed and Estimated Actual Value of Taxable Property...................
Property Tax Rates - Direct and Overlapping Governments
(Per $100 of Assessed Value).......... ....................... ................
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita....................... ....................
Computation of Legal Debt Margin..............
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Govemmental Expenditures .....
Computation of Direct and Overlapping Debt........................................
Revenue Bond and Certificates of Obligation Coverage.................
Demographic Statistics ......................
Property Value, Construction..............
Principal Taxpayers ...........................
Miscellaneous Statistical Data...........
Exhibit/Table
I
2
3
4
5
6
7
8
9
10
11
12
13
14
Page
Number
82 - 83
84 - 85
86 - 87
88
90 - 91
92 - 93
94
95
96
98 - 99
100
101
102
103
INTRODUCTORY SECTION
1
February 17, 2004
To the Citizens of the City of Colleyville:
The Comprehensive Annual Financial Report ofthe City ofColleyville (the "City") for the fiscal year ended
September 30,2003 is hereby submitted. Responsibility for both the accuracy ofthe data, and completeness
and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge
and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to
present fairly the financial position, results of operations and cash flows ofthe various funds ofthe City. All
disclosures necessary to enable the reader to gain an understanding of the City's financial activities have
been included.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal
accounting controls. These controls are designed to provide reasonable, but not absolute, assurance
regarding the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of
financial records for preparing financial statements and maintaining accountability for assets. The concept
of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of costs and benefits requires estimates and judgments by management. We
believe that the City's current systern of internal controls adequately safeguards assets and provides
reasonable assurance of proper recording of financial transactions.
As required by the City's charter, the financial statements have been audited by Pattillo, Brown & Hill,
L.L.P., a firm of certified public accountants. The goal of the independent audit was to provide reasonable
assurances that the financial statements of the City of Colleyville for the fiscal year ended Septernber 30,
2003, 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 estirnates made by managernent; and evaluating the overall financial statement presentation.
The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an
unqualified opinion that the City ofColleyville's financial statements for fiscal year ended September 30,
2003, are presented in conformity with generally accepted accounting principles (GAAP).
The Cornprehensive Annual Financial Report is presented in three sections: introductory, financial and
statistical. The introductory section includes this transmittal letter and the City's organizational chart. The
financial section includes auditor's report on the financial statements, a narrative introduction, overview and
analysis required by GAAP in the form of the Management's Discussion and Analysis, the basic financial
statements, fund financial statements, and combining and individual financial statements. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction ,"vith it. The City's MD &
A can be found immediately following the report of the independent auditors. The statistical section includes
selected unaudited financial and demographic information generally presented on a multi-year basis.
2
PROFILE OF THE GOVERNMENT
On January 10, 1956 the City of Colleyville was incorporated and adopted a home-rule charter on January
15, 1977. It has a council-manager form of government with policy making and legislative authority vested
in a goveming body consisting of a mayor and five council members. The mayor and council are
responsible for passing ordinances, adopting the budget, appointing board and committee members, and
hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of
the mayor and council, overseeing the day-to-day operations ofthe City, and appointing department heads.
The mayor and council are elected on an at large, non-partisan basis. The mayor is elected for a two-year
term. The Council's terms are staggered with three Council members elected for a two year term and the
two remaining Council members elected for a two year term at the same time as the mayor.
The City provides a full range of municipal services. These services include police and fire protection,
municipal court, streets, drainage utility; leisure services\ (parks and recreation, Colleyville Center and
library); water and sewer, engineering community development, and general administrative services. Based
upon the criterion set forth in generally accepted accounting principles, the following organizations are
includable within the City's reporting entity:
Entity
Method ofInclusion
Colleyville Economic Development Corporation (CEDC)
Colleyville Crime Control and Prevention District
Colleyville Tax Investment Financing Reinvestment Zone
Zone Number One (TIF)
Blended
Blended
Discretely Presented
ECONOMIC CONDITION AND OUTLOOK
The City of Colleyville is a residential-oriented community located 11 miles northeast of the City of Fort
Worth, 22 miles northwest of Dallas and 5 miles west of Dallas/Fort Worth International Airport in
Northeast Tarrant County. Relocations of residents to the City continued in fiscal year 2003, as did
commercial development. During the fiscal year, the City issued 135 residential building permits and the
average square footage of a residence was over four thousand square feet. Also, approximately 186,000
square feet of new commercial development was completed or in process during FY 2003.
For the Future. In March 2002, construction began on a new 29,500 square foot City Hall and a new
24,000 square foot Library within the Village, a 600,000 square foot mixed-use development with a
European design. The Village is located within the boundaries of 633-acre tax increment financing district
(TIF) to encourage commercial development along the Colleyville Boulevard corridor, which was
established in 1998. A TIF is a partnership between local taxing authorities, who work together to
accelerate commercial growth in a given area by paying a share of the development costs. Growth within a
TIF district is taxed at the normal rate, but the tax revenues are used within the district to fund roads,
drainage, or other infrastructure improvements that developers might otherwise be expected to provide. A
portion of these revenues will be used to repay the bonds sold in FY 2001 to fund the City Hall and library.
3
Long Term Financial Planning. As a part ofthe Fiscal Year 2004 budget process the Mayor and Council
and City Staff embarked upon developing a rnulti-year capital improvements program. The process
identified projects in the following sub-categories: facilities, parks and recreations, streets, subdivisions,
sidewalks, drainage, water and wastewater, and equipment. Additional topics discussed were financing
mechanisms and debt capacity.
FINANCIAL INFORMATION
Budgeting Controls. The City Charter of the City of Colleyville establishes the fiscal year as October 1
through September 30. The Charter requires the City Manager to submit a proposed budget and
accompanying budget message to the City Council each year. The proposed budget is presented to the City
Council at a budget work session. Department directors have an opportunity to make a budget presentation
to the City Council and are available for questions. Copies of the proposed budget are made available to the
public and the press and the public hearing schedule is confirmed. Before the public hearings are held,
notices of the public hearings on the proposed budget are posted and published in the newspaper. After
public hearings at two consecutive regular City Council meetings, the Council may adopt the proposed
budget, with or without amendment. The budget ordinance is to be adopted no later than the 30th day of
September and requires an affirmative vote of a majority of the Council. The Council adopts the tax rate
ordinance at the same meeting as the budget. The City maintains budgetary control by adopting an annual
operating budget for the General Fund, Debt Service Fund, Drainage Utility Fund, and Water and Sewer
Enterprise Fund. Detail control is maintained at the line item level by encumbering available funds at the
time a purchase order is written. Encumbrances lapse at fiscal year end, but can be re-appropriated through a
budget amendment during the following fiscal year. The City Manager is authorized to transfer budgeted
amounts between departments within any fund. However, any revisions that alter the total expenditures of
any fund must be approved by the City Council.
Cash Management. Cash temporarily idle during the year was invested in U.S. Treasury Bills and Notes,
Agency Discount Notes and Medium Term Notes and a local govemment investment pool (LOGIC). The
average yield on investments for the year was approximately 1.83%. The primary objectives of the City's
investment policy, in priority order, are safety (preservation of capital), liquidity (to provide adequate and
timely working funds), and return on investment (obtaining a rate of return comrnensurate with investment
risk constraints and cash flow needs). All deposits were either insured by federal deposit insurance or
collateralized and the collateral was held by a trustee bank in the City's name, which is the lowest category
of risk as defined by the Governmental Accounting Standards Board. The City currently holds the
Certificate of Distincti on from the Govemment Treasurer's Organization of Texas for its investrnent policy.
Risk Management. Insurance coverage for property, liability and workers' compensation is provided by the
Texas Municipal League Intergovemmental Risk Pool, a State Insurance Pool. Contributions to the Risk
Pool for workers' rates are based on the City's past claims history. The Risk Pool retains a limit ofloss and
reinsurance companies insure the risks beyond those limits. During the fiscal year, representatives from the
Risk Pool physically reviewed City facilities to identifY possible risks. City employees also participated in
Risk Pool sponsored safety training classes.
4
AWARDS AND ACKNOWLEDGEMENTS
Awards. The Govemrnent Finance Officers Association ofthe United States and Canada (GFOA) awarded
a Certificate of Achievernent for Excellence in Financial Reporting to the City of Colleyville for its
comprehensive annual financial report for the fiscal year ended September 30,2002. This was the fourteenth
consecutive year the City has received this prestigious award. In order to be awarded a Certificate of
Achievernent, a govemment must publish an easily readable and efficiently organized cornprehensive annual
financial report. This 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. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
In addition, the City also received the GFOA's Distinguished Budget Presentation award for its annual
budget dated October 1,2002. In order to qualify for this 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.
Acknowledgements: The preparation ofthis report could not be accomplished on a timely basis without the
dedicated endeavors of the entire staff of the Finance Department. I would like to express my sincere
appreciation to all employees who contributed to the preparation Additionally, I would also like to thank
the Mayor, City Council, and City Manager for their support in planning and conducting the financial
operations of the City in a responsible and progressive manner.
Respectfully submitted,
Terry Leake
Finance Director
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CITY OF COLLEYVILLE
ORGANIZATIONAL CHART
FISCAL YEAR 2002-2003
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CITY OF COLLEYVILLE, TEXAS
HOME RULE, COUNCIL - MANAGER
FORM OF GOVERNMENT
CITY OFFICIALS
YEAR ENDED SEPTEMBER 30, 2003
Joe Hocutt
Mayor
Mark Skinner
Councilmember, Place I
Elaine Dolan
Councilmember, Place 2
Rich Hendler
Councilrnernber, Place 3
Jon Ayers
Councilmember, Place 4
Ginny Tigue
Mayor Pro Tem and
Councilmember, Place 5
William Lindley
City Manager
Terry Leake
Finance Director
8
FINANCIAL SECTION
9
TillS PAGE INTENTIONALLY LEFT BLANK
10
m~
PAT T ILL 0, B ROW N & H ILL, L. L. P.
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
Members of the City Council
City of Colleyville, Texas
We have audited the accompanying financial statements of the govemmental actiVItIes, the
business-type activities, the aggregate discretely presented component unit, each major fund, and the
aggregate remaining fund information of City of Colleyville, Texas, as of and for the year ended
September 30, 2003, which collectively cornprise the City's basic financial statements as listed in the table
of contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and 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 of material misstatement An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the govemmental activities, the business-type activities, the aggregate discretely
presented component unit, each maj or fund, and the aggregate remaining fund information of the City of
Colleyville, Texas, as of September 30, 2003, and the respective changes in financial position and the cash
flows, where applicable, and the respective budgetary comparison for the General and Debt Service Fund
for the year then ended in conformity with accounting principles generally accepted in the United States of
America.
As described in Note 1, the City has implemented a new financial reporting model, as required by
the provisions of GASB Statement No. 34, Basic Financia/ Statements-and Management's Discussion
and Analysis-for State and Loca/ Governments, as of September 30, 2003.
In accordance 'With Govemment Auditing Standards, we have also issued our report dated
November 2,2003, on our consideration of the City's intemal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an
integral part of an audit performed in accordance with Govemment Auditing Standards, and should be
read in conjunction with this report in considering the results of our audit.
11
401 WEST HIGHWAY 6 .P. O. BOX 20725. WACO, TX 76702-0725. (254) 772-4901. FAX: (254) 772-4920. www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 . HlLLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460 . ALBUQUERQUE, NM (505) 266-5904 . RIO RANCHO, NM (505) 898-3516
The management's discussion and analysis on page 14 is not a required part of the basic financial
statements but is supplementary information required by accounting principles generally accepted in the
United States of America. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of rneasurement and presentation of the supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial staternents that
collectively comprise the City of Colleyville, Texas' basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements, and statistical tables are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual nonmajor fund financial statements have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory section
and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we express no opinion on them.
November 2, 2003
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MANAGEMENT'S
DISCUSSION AND ANALYSIS
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Management's Discussion and Analysis
As management of the City of Colleyville, we offer readers of the City's financial statement this
narrative overview and analysis of the financial activities of the City for the fiscal year ended September
30, 2003. We encourage readers to consider the information presented here in conjunction with
additional information that we have fumished in our letter of transmittal, which can be found on pages 2
- 5 of this report. The City implemented Governmental Accounting Standards Board Statement 34 -
Basic Financial Statements and Management's Discussion and Analysis for State and Local
Governments (GASB 34) for the first time this year.
FINANCIAL HIGHLIGHTS
. The assets of the City of Colleyville exceeded its liabilities as of September 30,2003, by
$110,411,757 (net assets). Of this amount, $30,148,380 (unrestricted net assets) may be
used to meet the City's ongoing obligations to citizens and creditors in accordance with
the City's fund designation and fiscal policies.
. The City's total net assets increased by $10,148,873.
. As of the close of the current fiscal year, the City of Colleyville's govemmental funds
reported combined ending fund balances of$17,196,421. Of this amount, $14,521,935 is
unreserved fund balance available for use within the City's fund designation and fiscal
policies.
. As of September 30, 2003, unreserved, undesignated fund balance for the General Fund
was $6,440,152 or 54% of the total General Fund budgeted expenditures and other
financing uses.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components: (1) govemment-
wide financial staternents, (2) fund financial statements and (3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements - The govemment-wide financial staternents, which begin on
page 24 of this report, are designed to provide readers with a broad overview of the City's finances, in a
manner similar to a private-sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
14
The Statement of Activities presents information showing how the City's net assets changed during the
fiscal year. All changes in net assets are reported when 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 sorne items that will only result in cash flows in the future fiscal periods (eg., uncollected
taxes and eamed but unused compensated absences).
Both of the govemment-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovemmental revenues (governmental activities) from functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities) The govemmental activities of the City include General Govemment, Community
Development and Engineering, Fire and Rescue, Leisure Services, Maintenance, Municipal Court,
Police, and Streets and Drainage. The business-type activities of the City include Water and
Wastewater, and Drainage Utility.
Fund financial statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All funds of the City can be divided into two categories - govemmental funds and
proprietary funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions
reported as governmental activities in the govemment-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on current sources
and uses 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 govemment's near-term financing
requirements.
Because the focus of govemmental 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 govemmental activities in the govemment-wide financial statements. By
doing so, readers may better understand the long-term irnpact of the govemment's near-term financing
decisions. Both the govemmental funds balance sheet and the govemmental fund statements of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between govemmental funds and govemmental activities.
Beginning on page 28 of this report, information is presented separately in the Governmental Fund
Balance Sheet and in the Govemmental Fund Statement of Revenues, Expenditures, and Changes in
Fund Balances for the General Fund, which is considered to be a major fund. Data from the other
govemmental funds are combined into a single, aggregated presentation. Individual fund data for each
of these non-major governmental funds is provided in the form of combining statements elsewhere in
this report.
15
Proprietary Funds - The City maintains one type of proprietary funds. Enterprise Funds are used to
report the same functions presented as business-type activities in the govemment-wide financial
statements. The City uses Enterprise Funds to account for the Water and Wastewater and Drainage
Utility Funds.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The basic proprietary fund financial statements which begin on page 35 of this
report provide separate information for the Water and Wastewater and Drainage Utility Enterprise Funds
since these are considered to be major funds of the City.
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the govemment-wide and fund financial statements. The notes to
the financial statements can be found on pages 40 - 64 of this report.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents combining fund statements and schedules that further support the information in the
financial statements. The combining fund statements and schedules for nonmajor funds are presented
immediately following the notes to the financial statements beginning on pages 65 of this report.
GOVERNMENTAL-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of government's financial position.
In the case of the City of Colleyville, assets exceeded liabilities by $1 10,411,757 as of September 30,
2003.
The largest portion of the City's net assets ($78,554,854) reflects its investments in capital assets (e.g.,
land, building, equipment, improvements, construction in progress and infrastructure), less any
outstanding debt used to acquire those assets. The City uses these capital assets to provide service to
citizens; consequently, these assets are not available for future spending. 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.
With the first year implementation of GASB 34, the City is not presenting comparable columns in the
various comparisons and analyses for the prior year.
16
CITY OF COLLEYVILLE'S NET ASSETS
Governmental Business-type
Activities Activities
2003 2003 Total
CllITent and other assets $ 18,689,258 $ 16,372,931 $ 35,062,189
Capital assets 83,914,653 34,845,252 118,759,905
Total assets 102,603,911 51,218,183 153,822,094
Long-term liabilities 26,872,583 11,587,820 38,460,403
Other liabilities 3,078,676 1,871,258 4,949,934
Total liabilities 29,951,259 13,459,078 43,410,337
Net assets:
Invested in capital assets,
net of related debt 55,965,990 22,588,864 78,554,854
Restricted 1,040,403 668,120 1,708,523
Unrestricted 15,646,259 14,502,121 30,148,380
Total net assets $ 72,652,652 $ 37,759,105 $ 110,411,757
A portion of the City's net assets ($1,780,523) represents resources that are subject to extemal
restriction on how they may be used. The remaining balance ($30,148,380) of unrestricted net assets
may be used to meet the City's ongoing obligation to citizens and creditors in accordance with the City's
fund designation and fiscal policies.
As of Septernber 30, 2003, the City has positive balances in all three categories of net assets, both for the
City as a whole, as well as for its govemmental and business-type activities separately.
Analysis of the City's Operations - The following table provides a summary of the City's operations
for the year ended Septernber 30, 2003. The City first implemented GASB 34 in 2003; therefore,
comparative data is not presented. Govemmental activities increased the City of Colleyville's net assets
by $8,879,623, accounting for 87.5% of the total growth in net assets. Business-type activities increased
the City's net assets by $1,269,250, accounting for 12.5% of the total growth in net assets.
17
CITY OF COLLEYVILLE'S CHANGES IN NET ASSETS
Governmental Business-type
Activities Activities
2003 2003 Total
Revenues:
Program revenues:
Charges for services $ 2,556,405 $ 9,262,270 $ 11,818,675
Operating grants and contributions 328,324 328,3 24
Capital grants and contributions 8,014,501 1,443,502 9,458,003
General revenues:
Ad valorem taxes 8,183,790 8,183,790
Sales taxes 2,964,331 2,964,331
Franchise taxes 1,395,569 1,395,569
Other taxes 32,123 32,123
Investment earnings 468,656 282,661 751,317
Miscellaneous 63,052 63,052
Total revenues 24,006,751 10,988,433 34,995,184
Expenses:
General government 1,551,989 1,551,989
Community development 1,280,410 1,280,410
F ire and rescue 3,010,260 3,010,260
Leisure services 2,728,287 2,728,287
Maintenance 193,865 193,865
Municipal court 235,053 235,053
Police 3,498,419 3,498,419
Streets and drainage 2,195,256 2,195,256
Interest on long-term debt 1,491,649 601,560 2,093,209
Water and wastewater 7,704,603 7,704,603
Drainage 354,960 354,960
Total Expenses 16,185,188 8,661,123 24,846,311
Increases in net assets before transfers 7,821,563 2,327,3 10 10,148,873
Transfers 1,058,060 1,058,060)
Increase in net assets 8,879,623 1,269,250 10, I 48,873
Net assets, October I, 2002 63,773,029 36,489,855 100,262,884
Net assets, September 30,2003 $ 72,652,652 $ 37,759,105 $ 110,411,757
18
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental funds - The focus of the City of Colleyville's governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve
as a useful rneasure of a govemment's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Colleyville's govemmental funds reported combined
ending fund balances of $17,196,421. Approximately 84% of this total amount ($14,521,935)
constitutes unreserved fund balance. The remainder of the fund balance ($2,674,486) is reserved to
indicate that is not available for new spending because it has already been committed to pay for
encumbrances or debt service or to provide for other items. Refer to page 28 of this report for a more
detailed presentation of govemmental fund balances.
In the General Fund, the City originally budgeted for a decrease in the fund balance of $60,000 as a
planned reduction of excess fund balance to fund "pay-as-you-go" capital expenditures. With budget
amendments made, the final budgeted decrease in fund balance was $140,000. The actual increase to
fund balance for the General Fund was $424,505 for fiscal year 2003.
Proprietary funds - The City's proprietary fund statements beginning on page 35 of this report provide
the same type of information found in the government-wide financial statements, but in more detail.
Unrestricted net assets of the respective major proprietary funds are Water and Wastewater
($13,047,019), and Drainage Utility ($1,455,102). These funds experienced increases in total net assets
during 2003 as follows: Water and Wastewater ($1,064,596), and Drainage Utility ($204,654).
Governmental Activities - The major increase in revenues comes from the tax category. The property
tax base increased over $244 million, due to construction of new residences, businesses, and revaluation
of property. The current year tax collection rate was close to 99% of the levy for the twelfth year in a
row. There was an increase in both license and permit revenues and engineering and inspection
revenues due an increase in both residential and commercial building permits. Fines and forfeitures
were down due to a decrease in citations issued and more appeals to Tarrant County. Investment income
is down due to the continued low interest rates.
Fiscal Year 2003 was a year of preparation for the opening of Colleyville's first library in autumn 2003,
as staff was added and supplies purchased. Increases in the Police area relate to the rnove to the new
Justice Center. The increase in the Community Development and Engineering area was due to the
update of the City's Master Plan. The Debt Service Fund's expenditures increased due to the first year
payment on the 2002 Certificates of Obligations to furnish the City Hall and Library.
Business-type Activities - The City has two enterprise operations, the Water and Sewer Fund and the
Drainage Utility Fund. Total operating revenues of the Water and Sewer fund were $8,595,871 for the
fiscal year. Water sales increased due to a lack of rainfall from April through mid-August. Wastewater
sales increased primarily due to new residential and commercial construction. The coverage ratio for
debt for this fund was 2.07 for the fiscal year. The increase in the Drainage Utility fund's revenues was
due to new residential and commercial construction.
19
Increases in the Water and Sewer Fund expenses relate to the increase in cost of purchased water and
treatment of wastewater from Trinity River Authority. The Authority's increase relates to higher cost
for electricity, debt issuance for plant expansion and compliance with federal water and wastewater
mandates. The increase in the Drainage Utility Fund expenses relates to purchase supplies for small
neighborhood drainage projects completed by City crews.
General Fund Budgetary Highlights - The City made reVISIOns to the original appropnatIOns
approved by the City Council. Overall, these changes resulted in an increase from the original budget of
$12,210,599. The increase was for a traffic signal at the new intersection of Colley vi lie Boulevard and
Church Street.
The General Fund's overall budgeted revenue increased by $179,660. The rnajor increase was due to
$261,563 in strong delinquent tax collections and a settlement from an electric franchise tax provider
and $106,268 in building permit revenues from the Town Center and the Villages at Colleyville
developments. This increase was partially offset by a $124,161 reduction in anticipated investment
earnings due to continued low interest rates and an $84,113 reduction due to a lower number of traffic
citations and higher number of appeals.
Refer to the General Fund Statement of Revenue, Expenditures and Changes in Fund Balances - Budget
and Actual on page 33 of this report for a detailed presentation of the actual General Fund operations
compared to both the original and final budget for fiscal year 2003.
CAPITAL ASSETS
The City of Colleyville's investment in capital assets for its govemmental and business-type activities as
of September 30,2003, amounts to $118,759,905 (net of accumulated depreciation). This investment in
capital assets includes land, building, equiprnent, irnprovements other than buildings, infrastructure and
construction work in progress. Major capital asset events occurring during the current fiscal year
included the following:
. Capitalized approximately $1.1 million in drainage improvements and contributions;
. Capitalized approximately $2.5 million in street irnprovements and contributions;
. Capitalized approximately $1.8 million on various water and wastewater system
projects and contributions; and
. Completed the renovation of the historic Webb House and completed construction of
the Pleasant Run Park practice fields.
20
CITY OF COLLEYVILLE'S CAPITAL ASSETS AT YEAR-END
Governmental Business-type
Activities Activities
2003 2003 Total
Land $ 6,360,180 $ 313,057 $ 6,673,237
Buildings and improvements 12,775,932 53,922 12,829,854
Equipment 4,609,685 977,481 5,587,166
Infrastructure/w ater distI~bution
SeWer collection 54,402,230 47,324,063 101,726,293
Construction in progress 21,783,326 934,168 22,717,494
Less: accumulated depreciation 16,016,700) 14,7 57 ,439) 30,774,139)
Total assets $ 83,914,653 $ 34,845,252 $ 118,759,905
Additional information on the City's capital assets can be found in Note 4, page 55 of this report.
DEBT ADMINISTRATION
At the end of the current fiscal year, the City of Colleyville had total bonded debt, notes payable and
capital lease obligations of $40,353,663. Of this amount, $13,820,000 represents bonded debt backed by
the full faith and credit of the govemment, $13,937,722 represents bonds secured by sales tax revenues,
$9,605,000 represents bonds secured solely by water and sewer revenues, and $2,800,000 represents
bonds secured solely by drainage utility system revenues. The notes payable of $160,047 pertains to the
purchase of land and radio tower communications system. The City's capitalized lease obligations of
$30,894 pertain to the purchase of an ambulance.
OUTSTANDING DEBT AT YEAR-END
BONDS, NOTES AND CAPITALIZED LEASE OBLIGATIONS PAYABLE
Governmental Business-type
Activities Activities
2003 2003 Total
General obligation certificates
of obligation $ 13,820,000 $ $ 13,820,000
Sale tax reVenUe bonds 13,937,722 13,937,722
Revenue bonds payable 12,405,000 12,405,000
Notes payable 160,047 160,047
Capitalized lease obligations 30,894 30,894
Accreted interest 80,424 80,424
Total $ 28,029,087 $ 12,405,000 $ 40,434,087
During the fiscal year, the City issued $2,580,000 in Water and Wastewater Revenue Refunding Bonds.
The refunding resulted in a net present value savings of $92,768.
21
The City's General Obligation, Tax and Water Works and Sewer System Certificates of Obligation, and
Water Works and Sewer Systern Revenue Bond ratings are listed below.
Fitch leBA
Standard
and Poor's
General Obligation Bonds
Water Revenue Bonds
AA+
AA+
AA+
AA-
Most of the City's Bonds are insured, thus holding a Triple A credit rating from both Fitch ICBA and
Standard & Poor's. Additional information on the City of Colleyville's long term-debt can be found in
footnote 4 on pages 57 - 61 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The General Fund budget (including transfers in and planned utilization of surplus) for fiscal year 2004
is based on projected revenue growth of 5.4% compared to the fiscal year 2003 budget. Taxes account
for the majority of the increase. Property taxes, which are about 53% of General Fund revenues, are
budgeted at a 10.5% increase compared to the 2003 budget. This reflects the net effect of valuation
increases and new construction, combined with a recently adopted increase in the over-65 and disabled
exemption to $65,000. Approximately 12% of General Fund revenues are sales taxes. Sales taxes have
been budgeted to remain almost even with the FY 2003 budget. The 2004 budget includes a planned
$262,761 utilization of surplus fund balance to fund one -time capital expenditures.
The 2004 budget includes for the General Fund and other funds a 2% salary increase for all classes of
employees. The General Fund has budgeted add $64,902 to the Street department budget for the street
overlay budget bringing the total budgeted for that program to $239,433. Also included in the General
Fund budget is funding for an Economic Development manager position in order to expand economic
development activities.
There is no rate increase in the 2004 budget for either the Water and Wastewater Fund or the Drainage
Utility Fund. Included in the Water and Wastewater Fund is $30,000 for the funding of a study to assess
the vulnerability of the City's water system. This assessment will aid the City in meeting the
requirements of the Bioterrorism Act for community water systems.
REQUEST FOR INFORMATION
The financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of the City's finances. If you have questions about this report or need any additional
information, contact Terry Leake, Finance Director, at 100 Main Street, Colleyville, Texas 76034, or
call (817) 503-1015.
22
BASIC
FINANCIAL STATEMENTS
23
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2003
Primary Government Component Unit
Tax
Increment
Governmental Business-type Financing
Activities Activities Total District
ASSETS
Cash and cash equivalents $ 4,401,610 $ 3,803,989 $ 8,205,599 $ 3,409,182
Investments 12,522,243 10,706,817 23,229,060
Receivables (net of allowances for
uncollectibles of $113,984)
Accounts 348,564 1,301,306 1,649,870 72,907
Property taxes 181,823 181,823
Due from other governments 1,131,533 1,131,533
Other assets 311,583 311,583
Inventories 158,652 158,652
Accrued interest 103,485 90,584 194,069
Capital assets:
Land 6,360,180 313,057 6,673,237
Buildings and improvements 12,775,932 53,922 12,829,854
Equipment 4,609,685 977,481 5,587,166
Infrastructure/water distribution!
sewer collection 54,402,230 47,324,063 101,726,293
Construction in progress 21,783,326 934,168 22,717,494
Less: acclUTlulated depreciation 16,016,700) ( 14,757,439) 30,774,139)
Total capital assets 83,914,653 34,845,252 118,759,905
Total assets $ 102,603,911 $ 51,218,183 $ 153,822,094 $ 3,482,089
(continued)
24
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET ASSETS
(Continued)
SEPTEMBER 30, 2003
Primary Government Component Unit
Governmental Business-type Tax Increment
Activities Activities Total Financing District
LIABILITIES
Accounts payable $ 697,729 $ 482,220 $ ],179,949 $ 747,548
Accrued liabilities 322,245 46,114 368,359
Accrued interest payable 171,413 124,124 295,537 59,665
Advances from developers 220,702 6,728 227,430
Escrow funds ],643 1,643
Customer deposits 48,954 350,429 399,383
Noncurrent liabilities:
Due within one year 1,617,633 860,000 2,477,633 695,000
Due in more than one year 26,872,583 11,587,820 38,460,403 10,165,000
T otalliabilities 29,951,259 13,459,078 43,4]0,337 11,667,213
NET ASSETS
Invested in capital assets,
net of related debt 55,965,990 $ 22,588,864 $ 78,554,854 $
Restricted for:
Court security and technology 14,873 14,873
Debt service 1,025,530 668,120 ],693,650
Umestricted 15,646,259 14,502,121 30,]48,380 8,185,124)
Total net assets $ 72,652,652 $ 37,759,105 $ 110,411,757 $( 8, I 85,124)
The notes to the financial statements are an integral part of this statement.
25
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2003
Functions/Prowams
Primary Government:
Governmental activities:
General government
Community development and engineering
Fire and rescue
Leisure services
Maintenance
Municipal court
Police
Streets and drainage
Interest on long-term debt
Total governmental activities
Business-type activities:
Water and wastewater
Drainage
Interest on long-term debt
Total business-type activities
Total primary government
Component Unit:
Tax increment financing
Interest on long-term debt
Total component unit
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 1,551,989 $ 18,000 $ 5,700 $
1,280,410 1,242,838 25,075
3,010,260 104,990 14,090
2,728,287 394,098 204,174 1,020,736
193,865
235,053 510,544
3,498,4 19 45,626 79,285
2,195,256 240,309 6,993,765
1,491,649
16,185,188 2,556,405 328,324 8,014,50 I
7,704,603 8,595,871 1,443,502
354,960 666,399
60 I ,560
8.661,123 9,262,270 1,443,502
$ 24,846,311 $ 11,818,675 $ 328,324 $ 9,458,003
$
3,881,962
529,053
4,411,0]5
$
$
$
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
TIF tax
Sales taxes
Franchise taxes
Mixed beverage tax
Other taxes
In vestment earnings
Miscellaneous
Transfers
Total general revenues, special items, and transfers
Change in net a'Ssets
Net assets, beginning
Net assets, ending
The notes to the financial statements are an integral part of this statement.
26
Net (Expense) Revenue and
Changes in Net Assets Component Unit
Primary Government
Governmental Business-type Tax Increment
Activities Activities Total Financing District
$( 1,528,289) $ $( 1,528,289) $
( 12,497) ( 12,497)
( 2,891,180) ( 2,891,180)
( 1,109,279) ( 1,109,279)
( 193,865) ( 193,865)
275,491 275,491
3,373,508) 3,373,508)
5,038,818 5,038,818
1,491,649) 1,491,649)
5,285,958) 5,285,958)
2,334,770 2,334,770
311,439 311,439
601,560) 601,560)
2,044,649 2,044,649
$( 5,285,958) $ 2,044,649 $( 3,241,309) $
( 3,881,962)
( 529,053)
$ $ $ $( 4,411,015)
6,412,256 6,412,256
1,771,534 1,771,534
1,426,117
2,964,331 2,964,331
1,395,569 1,395,569
32,123 32,123
468,656 282,661 751,317 53,175
63,052 63,052 72,907
1,058,060 1,058,060)
14,165,581 775,399) 13,390,182 1,552,199
8,879,623 1,269,250 10,148,873 2,858,816)
63,773,029 36,489,855 100,262,884 5,326,308)
$ 72,652,652 $ 37.759,105 $ 110,411,757 $( 8,185,124)
27
CITY OF COLLEYVILLE, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2003
Major Funds
CEDC
Debt Capital Capital
General Service Project Project
ASSETS
Cash and cash equivalents S 988,733 $ 495,128 $ 1,413,907 $ 978,5 16
In vestments 5,391,917 523,254 3,252,257
Receivables (net of allowances for uncollectibles)
Accounts 249,219 130,159
Property taxes 142,993 40,667
Interfund receivables 1,001,583
Due from other governments 332,130 1,243
Accrued interest 44,916 5,905 29,830
Total assets $ 7,149,908 $ 1,066, 197 $ 5,827,736 $ 978,516
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 143,366 $ $ 197,549 $
Accrued liabilities 322,245
Deferred revenue 195,191 40,667
Interfund payables
Advances from developers 200,079
Customer deposits 48,954
Total liabilities 709,756 40,667 397,628
Fund balances:
Reserved for:
Court security/technology
Debt service 1,025.530
Developer fees 1,634,083
Unreserved, reported in:
General fund 6,440,152
Special revenue funds
Capital projects fund 3,796,025 978,516
Total fund balances 6,440,152 1,025,530 5,430.108 978,516
Total liabilities and lund balances $ 7,149,908 S 1,066,197 $ 5,827,736 $ 978,516
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds.
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.
Net assets of governmental activities
The notes to the financial statements are an integral part of this statement.
28
Other Total
Governmental Governmental
Funds Funds
$ 525,326 $ 4,401,610
3,354,815 12,522,243
379,378
183,660
1,001,583
798,160 1,131,533
22,834 103,485
$ 4,701,135 $ 19,723,492
$ 356,814 $ 697,729
322,245
235.858
1,001,583 1,001,583
20,623 220,702
48,954
1,379,020 2,527,071
14.873 14,873
1,025,530
1,634,083
6,440,152
2,068,938 2,068,938
1,238,304 6,012,845
3,322,115 17,196,421
$ 4,701,135
83,914,653
203,207
28,661,629)
$ 72,652,652
29
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
Major Funds
CEDC
Debt Capital Capital
General Service Proi ect Proi ect
REVENUES
Taxes $ 9,397,257 $ 1,777,839 $ $
Intergovernmental
Licenses and permits 926,083
Fines and forfeitures 470,887
Charges for services 793,527
Capital improvement fees 300,252
Donations
Investment earnings 151,839 18,906 145,950 57,542
Developer contributions 277,084
Other 49,308 25,684
Total revenues 11,788,90 I 1,822,429 723,286 57,542
EXPENDITURES
Current:
General government 1,452,723
Community development and engineering 1,274,096
Fire and rescue 2,819,601
Leisure services 1,771,329 415,691
Maintenance 162,865
Municipal court 222,769
Police 3,019,273
Streets and drainage 1,092,703
Debt service:
Principal retirement 1,388,469 90,750
Interest and liscal charges 1,012,186 7,261
Capital outlay 73,755 2,069,879 2,672,143
Total expenditures 11,889,114 2,400,655 2,485,570 2,770, I 54
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 100,213) 578,226) 1,762,284) 2,712,612)
OTHER FINANCING SOURCES (USES)
T ran sfers in 524,718 1,241,393
Transfers out 66,658)
Payment to bond refunding escrow agent 600,000)
Total other linancing sources and uses 524,718 641,393 66,658)
NET CHANGE IN FUND BALANCES 424,505 63,167 1,828,942) 2,712,612)
FUND BALANCE, BEGINNING 6,015,647 962,363 5,450.809 3,691,128
PRIOR PERIOD ADJUSTMENT 1,808,241
FUND BALANCES, ENDING $ 6,440, I 52 $ 1,025,530 $ 5,430,108 $ 978,516
The notes to the financial statements are an integral part of this statement.
30
Other Total
Governmental Governmental
Funds Funds
$ 1,421,683 $ 12,596,779
504,71 8 504,718
926,083
38,508 509,395
122,167 915,694
300,252
707,829 707,829
94,419 468,656
277,084
21,865 96,857
2,911,189 17,303,347
17,002 1,469,725
1,274,096
6,617 2,826,218
75,458 2,262,478
162,865
11,411 234,180
312,588 3,331,861
1,092,703
185,000 1,664,219
419,114 1,438,561
2,614,926 7,430,703
3,642,116 23,187,609
730,927) 5,884,262)
1,766,1 I 1
641,393) 708,051)
600,000)
641,393) 458,060
1,372,320) 5,426,202)
4.694,435 20,814,382
1,808,241
$ 3,322,115 $ 17, 196,421
31
CITY OF COLLEYVILLE, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2003
Amounts reported for governmental activities in the Statement of Activities (pages 26 - 27)
are different because:
Net change in fund balances - total governmental foods (page 28)
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense.
The net effect of various miscellaneous transactions involving capital assets (i.e. , sales, trade-
ins, and donations) is to increase net assets.
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the foods.
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds.
Some expenses reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Change in net assets of governmental activities (pages 26 - 21)
The notes to the financial statements are an integral part of this statement.
32
$( 5,426)02)
5,442,164
6,716,681
13,277)
2,264,219
103,962)
$ 8,879,623
CITY OF COLLEYVILLE, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2003
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 9,135,694 $ 9,135,694 $ 9,397,257 $ 261,563
License and permits 819,815 819,815 926,083 106,268
Fines and forfeitures 555,000 555,000 470,887 84,113)
Charges for services 768,232 768,232 793,527 25,295
Investment earnings 276,000 276,000 151,839 124,161)
Other 54,500 54,500 49,308 5,192)
Total revenues 11,609,241 11,609,241 11,788,901 179,660
EXPENDITURES
Current:
General government 1,470,287 1,470,287 1,452,723 17,564
Community development and engineering 1,329,492 1,329,492 1,274,096 55,396
Fire and rescue 2,821,303 2,821,303 2,819,601 1,702
Leisure services 2,025,477 2,025,477 1,771,329 254,148
Maintenance 183,484 183,484 162,865 20,619
Municipal court 236,682 236,682 222,769 13,913
Police 3,020,925 3,020,925 3,019,273 1,652
Streets and drainage 1,048,949 1,128,949 1,092,703 36,246
Capital outlay 74,000 74,000 73,755 245
Total expenditures 12,210,599 12,290,599 11,889,114 401,485
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 601,358) 681,358) 100,213) 221,825)
OTHER FINANCING SOURCES (USES)
Transfers in 541,718 541,718 524,718 17 ,000)
Total other financing sources and uses 541,718 541,718 524,718 17,000)
NET CHANGE IN FUND BALANCES 59,640) 139,640) 424,505 564,145
FUND BALANCE, BEGINNING 6,015,647 6,015,647
FUND BALANCES, ENDING $( 59,640) $( 139,640) $ 6,440,152 $ 6,579,792
The notes to the financial statements are an integral part of this statement.
33
CITY OF COLLEYVILLE, TEXAS
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative )
REVENUES
Property taxes $ 1,772,416 $ 1,772,416 $ 1,777,839 $ 5,423
Investment earnings 19,000 19,000 18,906 ( 94)
Other 25,684 25,684
Total revenues 1,791,416 1,791,416 1,822,429 31,013
EXPENDITURES
Debt service:
Principal retirement 1,390,094 1,390,094 1,388,469 1,625
Interest and fiscal charges 1,028,139 1,028,139 1,012,186 15,953
Total expenditures 2,418,233 2,418,233 2,400,655 17,578
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 626,817) 626,817) 578,226) 48,591
OTHER FINANCING SOURCES
Transfers in 641,393 641,393 1,241,393 600,000
Payment to bond refunding escrow agent ( 600,000) 600,000)
Total other financing sources 641,393 600,000)
NET CHANGE IN FUND BALANCES 626,817) 626,817) 63,167 689,984
FUND BALANCES, BEGINNING 962,363 962,363
FUND BALANCES, ENDING $( 626,817) $( 626,817) 1,025,530 $ 1,652,347
The notes to the financial statements are an integral part of this statement.
34
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2003
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
ASSETS
Current assets:
Cash and cash equivalents $ 2,823,7 11 $ 980,278 $ 3,803,989
Investments 10,066,389 640,428 10,706,817
Accounts receivable, net of allowances 1,226,575 74,731 1,301,306
Other assets 311,583 311,583
Inventories 158.652 158,652
Total current assets 14,586,910 1.695,437 16,282,347
Noncurrent assets:
Accrued interest receivable 81,972 8,612 90,584
Capital assets:
Land 313,057 313,057
Buildings 53,922 53,922
Equipment 756,178 221,303 977,481
Water distribution 45,120,898 2,203, 165 47,324,063
Construction in progress 141,386 792,782 934,168
Less: accumulated depreciation 14,415,877) 341,562) 14,757,439)
Total capital assets 31,969,564 2,875,688 34,845,252
Total noncurrent assets 32,051,536 2,884,300 34,935,836
T atal assets $ 46,638,446 $ 4,579,737 $ 51,218,183
LIABILITIES
Current liabilities:
Accounts payable 409,869 72,351 482,220
Accrued liabilities 39,157 6,957 46,114
Accrued interest payable 108,450 15,674 124,124
Advances from developers 6.728 6,728
Escrow funds 1,643 1,643
Customer deposits 350,429 350,429
Revenue bonds payable 720,000 140,000 860,000
Total current liabilities 1,636,276 234,982 1,871,258
Noncurrent liabilities:
Compensated absences 37,467 5,353 42,820
Revenue bonds payable 8,885,000 2,660,000 11,545,000
Total noncurrent liabilities 8,922,467 2,665,353 11,587,820
Total liabilities 10,558,743 2,900,335 13,459,078
NET ASSETS
In vested in capital assets, net of related debt 22,364,564 224,300 22,588.864
Restricted for debt service 668,120 668,120
Unrestricted 13,047,019 1,455,102 14,502,12 I
Total net assets $ 36,079,703 $ 1,679,402 $ 37,759,105
The notes to the financial statements are an integral part of this statement.
35
CITY OF CITY OF COLLEYVILLE, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
OPERATING REVENUES
Metered water sales $ 5,968,330 $ $ 5,968,330
Wastewater services charges 1,921,099 1,921,099
Drainage service charges 656,446 656,446
Other charges and services 706,442 9,953 716,395
T ota1 operating revenues 8,595,871 666,399 9,262,270
OPERATING EXPENSES
Personnel services 1,289,058 223,207 1,512,265
Maintenance and contractual services 5,022,940 26,783 5,049,723
Materials and supplies 111,335 28,636 139,971
Miscellaneous expenses 2],]49 21,149
Depreciation and amortization 1,260,121 76,334 1,336,455
T otal operating expenses 7,704,603 354,960 8,059,563
OPERATING INCOME 891,268 311,439 ],202,707
NONOPERATING REVENUES (EXPENSES)
Investment earnings 245,029 37,632 282,661
Interest expense and fiscal charges 457,143) ]44,417) 60 I ,560)
Total nonoperating revenues (expenses) 212,114) ] 06,785) 318,899)
INCOME BEFORE CONTRIBUTIONS
AND TRANSFERS 679,154 204,654 883,808
CAPITAL CONTRIBUTIONS 1,443,502 ] ,443,502
TRANSFERS OUT 1,058,060) 1,058,060)
CHANGES IN NET ASSETS 1,064,596 204,654 1,269,250
TOTAL NET ASSETS, BEGINNING OF YEAR 35,015,107 1,474,748 36,489,855
TOTAL NET ASSETS, END OF YEAR $ 36,079,703 $ 1,679,402 $ 37,759,105
The notes to the financial statements are an integral part of this statement.
36
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2003
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 8,757,858 $ 828,450 $ 9,586,308
Cash paid to suppliers for goods and services ( 5,300,822) ( 14,614) ( 5,315,436)
Cash paid to employees for services ( 1,105,425) ( 216,250) ( 1,321,675)
Net cash provided by (used for) operating activities 2,351,611 597 ,586 2,949,197
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Transfers out ( 1,058,060) 1,058,060)
Payments from other lunds 315,895 315,895
Net cash provided by (used for) noncapital
financing activities 742,165) 742,165)
CASH FLOWS FROM CAPn AL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets 2,646,962) 954,167) 3,601,129)
Capital grants and contributions 1,443,502 1,443,502
Proceeds from debt issues 2,580,000 2,580,000
Principal paid on debt 622,000) 140,000) 762,000)
Interest paid on debt 457,143) 144,417) 60 I ,560)
Net cash provided by (used lor) capital and
related financing activities 297,397 1,238,584) 941,187)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase (sale) of investments 599,072) 2,604 596,468)
Earnings on investments 245,029 37,632 282,66 I
Net cash provided by investing activities 354,043) 40,236 313,807)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,552,800 600,762) 952,038
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,270,911 1,581,040 2,851,95 I
CASH AND CASH EQUIVALENTS, END OF YEAR $ 2,823,711 $ 980,278 $ 3,803,989
The accompanying notes are an integral part of this financial statement.
37
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
(Continued)
YEAR ENDED SEPTEMBER 30, 2003
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
Reconciliation of operating income (loss) to net cash
provided (used) by opemting activities:
Opemting income (loss) $ 891,268 $ 311,439 $ 1,202,707
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization expense 1,260.121 76,334 1,336,455
Changes in assets and liabilities:
Decrease (increase) in assets:
Accounts receivable 161,987 38,271) 123,716
Due from other funds 143,453 200,322 343,775
Due from other governments 228,772 228,772
Inventory 21,325) 21,325)
Accrued interest recei vable 67,998) 42) 68,040)
Other assets 107,915) 107,915)
Increase (decrease) in liabilities:
Accounts payable 145,398) 41,547 103,851)
Accrued liabilities 39,157 6,957 46,114
Compensated absences payable 5,612 5,612
Customer deposits 20,118 20,118
Advances from developers 2.332 2,332
Accrued interest payable 60,216) 700) 60,916)
Escrow funds 1,643 1,643
Net cash provided by (used for) operations $ 2,351,6 I 1 $ 597.586 $ 2.949,197
Noncash investing, capital, and financing activities:
Contributions of capital assets $ 1,443,502 $ $ 1,443,502
The notes to the financial statements are an integral part of this statement.
38
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2003
Agency
Funds
ASSETS
Cash and investments $ 3,959
Total assets $ 3,959
LIABILITIES
Due to other agencies and individuals $ 3,959
Total liabilities $ 3,959
The notes to the financial statements are an integral part of this statement.
39
CITY OF COLLEYVILLE, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Colleyville Home Rule Charter was adopted by the voters at an election held on
January 15, 1977. The City operates under a Council-Manager forrn of governrnent.
The accounting policies of the City of Colleyville, Texas (the "City") conforrn to generally
accepted accounting principles as applicable to governmental units. The following is a summary
of the more significant of such policies:
A. Reportin2 Entity
As required by generally accepted accounting principles, these financial statements present
the governrnent and its component units, entities for which the govemrnent is considered to
be financially accountable. Blended component units, although legally separate entities are,
in substance, part of the government's operations and so data from these units are combined
with data of the primary government. Each directly presented component unit, on the other
hand, is reported in a separate column in the combined financial statements to emphasize it is
legally separate from the govemment. Each blended cornponent unit has a September 30
year-end.
Blended Component Unit - The Colleyville Economic Development Corporation (CEDC)
was incorporated on September 3, 1996, as a nonprofit industrial development corporation
under the Development Corporation Act of 1979 ("Ace). The CEDC operates under a seven
(7) member Board of Directors appointed by the City Council. Each of the directors shall be
a resident of the City. The Corporation is organized exclusively for the purposes of
benefiting and accomplishing public purposes of and to act on behalf of, the City, and the
specific purposes for which the Corporation is organized. This includes municipal park
improvements, the purchase of land and improvements for additional neighborhood parks,
the construction of a community center and library. Although it is legally separate from the
City, the CEDC is reported as if it were part of the primary govemment, because CEDC is
financing public irnprovements and the City is the primary beneficiary of the services
provided.
(continued)
40
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. ReuortiDl! Entity (Continued)
Blended Component Unit - Colleyville Crime Control and Prevention District (the District)
was formed under Chapter 363 of the Texas Local Govemrnent Code, the Crime Control and
Prevention District Act. The District is organized to act on behalf of the City for financing,
development of crime control throughout the City. The District is governed by a six-member
board consisting of all members of the City Council. The District is reported as a part of the
primary govemment because it provides services entirely for the City.
Directly Presented Component Unit - Colleyville Tax Increment Financing Reinvestment
Zone Number One (the TIF) was formed to make public improvements, under the authority
of the Tax Increment Financing Act. The TIF is governed by a nine-member board
consisting of five members appointed by the City Council and one member each appointed
by the four other participating taxing entities. The TIF is presented in the accornpanying
financial staternents. Separate financial statements of the individual component units are not
available.
B. Government-wide Fund Financial Statements
The govemment-wide financial statements (i.e., the statement of net assets and the statement
of activities) report information on all of the nonfiduciary activities of the primary
government and its component units. For the most part, the effect of interfund activity has
been rernoved from these staternents. Governmental activities, which normally are supported
by taxes and intergovemmental revenue, are reported separately from business-like activities,
which rely to a significant extent on fees and charges for support. Likewise, the primary
government is reported separately from certain legally separate component units for which
the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenue. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenue includes 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenue are reported
instead as general revenue.
Separate financial statements are provided for govemmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the govemment-wide financial
statements. Major individual governmental funds and major individual Enterprise Funds are
reported as separate columns in the fund financial statements.
(continued)
41
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus. Basis Of Accountinl! and Financial Statement Presentation
The govemment-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Revenues are recorded when eamed and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenue in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the government considers revenue to be available if
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, franchise taxes, sales taxes, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenue
of the current fiscal period. All other revenue items are considered to be measurable and
available only when cash is received by the City.
GOVERNMENTAL FUNDS
Governmental Funds are those through which most governmental functions of the City
are financed. The acquisition, use, and balances of the City's expendable financial
resources and the related liabilities (except those accounted for in the proprietary fund
type) are accounted for through governrnental funds. The measurement focus is upon
determination of changes in financial position, rather than upon net income
determination. The following are the City's governmental fund types:
The City has the following major govemmental funds:
The General Fund - is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for in
another fund.
The Debt Service Fund - is used to account for the accumulation of resources
for, and the payment of, general long-term debt principal and interest, and
related costs.
(continued)
42
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus. Basis Of Accountinl! and Financial Statement Presentation
(Continued)
GOVERNMENTAL FUNDS (Continued)
The Capital Proiects Fund - is used to account for financial resources to be
used for the acquisition or construction of general maj or capital facilities.
Financing is provided primarily by the sale of general obligation bonds and
developer contributions.
The Collevville Economic Development Corporation (CEDC) Capital
Proiect Fund - is used to account for financial resources to be used for the
acquisition or construction of CEDC capital facilities. Financing is provided
primarily by the revenue certificate of obligation bonds.
PROPRIETARY FUNDS
Proprietary Funds are used to account for activities that are similar to those often found
in the private sector. The measurement focus is upon determination of net income and
capital maintenance.
The City reports the following major proprietary funds:
The Water and Wastewater Fund - is used to account for operations (a) that
are financed and operated in a manner similar to private business enterprises -
where the intent of the goveming body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or
(b) where the goveming body has decided that periodic determination of
revenue eamed, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or
other purposes. This fund is used to account for water and wastewater
operations.
The Drainaee Utilitv Fund - is used to account for the establishment and
maintenance of drainage facilities within the municipal boundaries of the City.
All activities necessary to provide such facilities are accounted for in this
fund, included but not limited to, administration, operations, maintenance,
billing and collections.
(continued)
43
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis Of Accountinl! and Financial Statement Presentation
(Continued)
FIDUCIARY FUNDS
A~encv Fund - Fiduciary Funds are used to account for assets held by the
City in a trustee capacity or as an agent on behalf of others. Agency funds are
custodial in nature and do not present results of operations or have a
measurement focus. The City has two agency funds: Employee Activity and
the Sesquicentennial Fund.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments also have the option offollowing
subsequent private-sector guidance for their business-like activities and Enterprise Funds,
subject to this same limitation. The City has elected not to follow subsequent private-sector
guidance.
As a general ruIe, the effect of interfund activity has been eliminated from the govemment-
wide financial statements. Exceptions to this general rule are charges between the City's
water and wastewater function and various other functions of the govemment. Elimination
of these charges wouId distort the direct costs and program revenue reported for the various
functions concemed.
Amounts reported as program revenues include: 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenue. Likewise, general revenue
includes all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating 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. The
principal operating revenues of the City's Enterprise Funds are charges to customers for sales
and services. Operating expenses for Enterprise Funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenue and expenses not
meeting this definition are reported as nonoperating revenue and expenses.
(continued)
44
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Cash and Cash Equivalents
For purposes of the statement of cash flows, the Enterprise Fund considers all highly liquid
investments (investments with original maturities less than 90 days, including restricted
assets) to be cash equi valents.
E. Investments
In accordance with GASB Statement No. 31, the City's general policy is to report money
market investments and short-term participating interest-eaming investment contracts at
amortized cost and to report nonparticipating interest-eaming investment contracts using a
cost-based measure. However, if the fair value of an investment is significantly affected by
the impairment of the credit standing of the issuer or by other factors, it is reported at fair
value. All other investments are reported at fair value unless a legal contract exists which
guarantees a higher value. The term "short-term" refers to investments, which have a
remaining term of one year or less at time of purchase. The term "nonparticipating" means
that the investment's value does not vary with market interest rate changes.
F. Receivables and Pavables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds"
(i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the
noncurrent portion of interfund loans). All other outstanding balances between funds are
reported as "due to/from other funds." Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide
financial statements as "intemal balances."
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable govemmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles.
Trade accounts receivable in excess of 30 days comprise the trade accounts receivable
allowance for uncollectibles. The property tax receivable allowance is equal to one percent
of outstanding property taxes at September 30,2003.
Property taxes are levied on October 1 and attach as an enforceable lien on property as of
January 1. Staternents are mailed on October 1, or as soon thereafter as possible, and are due
upon receipt. All unpaid taxes become delinquent if not paid before February 1 of the
following year.u
( continued)
45
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Inventories
Inventories in the Enterprise Fund are valued at cost (first-in, first-out method).
H. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads,
bridges, sidewalks and similar items) are reported in the applicable govemmental or
business-type activities columns in the govemment-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $5,000 (amount
not rounded) and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets' lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant and equiprnent is depreciated using the straight-line method over the
following estirnated useful lives:
Assets
Years
Buildings
Improvements
Equipment
Infrastructure (streets and drainage)
Water distribution/sewer collection
I5 - 50
20 - 50
5 - IO
50
5 - 40
I. Other Assets - Enterprise Fund
Other assets consist of expenses incurred in connection with the issuance of certain outstanding
revenue bonds. Such charges are amortized on a straight-line basis over the lives of the bonds.
J. Compensated Absences
City employees are granted vacation and sick pay in varying amounts. In the event of
termination, an employee is paid for all accumulated, unused vacation. Vacation pay is
accrued as it vests to the employee. Sick pay is recorded when paid or upon retirement when
a maximum of 90 days is paid. The accrued sick pay is not recorded, as the City's policy is
not to compensate employees upon separation of services with the City, except for
retirement, and such amounts are not considered material. All vacation pay is accrued when
incurred in the government-wide and proprietary fund financial statements.
(continued)
46
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Lonl!-term Oblil!ations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable govemmental activities, business-type activities, or proprietary fund type
statement of net assets.
In the fund financial statements, the face amount of debt issued is reported as other financing
sources for the governmental fund types.
For govemmental fund types, bond premiums and discounts, as well as issuance costs, are
recognized during the current period. Bond proceeds are reported as an other financing
source. Issuance costs, even if withheld from the actual net proceeds received, are reported
as expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance
costs, are charged to current operations rather than being deferred and amortized due to the
relatively immaterial effect on the basic financial statements taken as a whole.
L. Fund Equity
Reservations of fund balance represent amounts that are not available for appropriation or are
legally segregated for specific purposes. Reservations of retained eamings are limited to
outside third party restrictions. Designations offund balance represent tentative management
plans that are subject to change.
In the Special Revenue Funds, fund balances reserved for other represent amounts which are
restricted for expenditure in accordance with the purposes for which the fund was
established, such as park and library improvements, tree preservation, hosting recreational
events and tournaments, and increasing recycling efforts within the City. Amounts under
these reservations are listed on the accompanying general purpose financial statements as
reserved for other.
M. Risk Manal!ement
Insurance coverage for property, liability and workers' compensation is provided by the
Texas Municipal League Intergovemmental Risk Pool, a state insurance pool. Contributions
to the Risk Pool for workers' cornpensation are based on the City's past claims history. The
Risk Pool is self-sustaining through members' contributions and maintains insurance to limit
risk of loss with an external insurance company. Settlement claims have not exceeded
aggregate limits in the past three fiscal years.
47
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STA TEMENTS
Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the
Government-wide Statement of Net Assets
The governmental fund balance sheet includes a reconciliation between fund balance - total
governmental funds and net assets - governmental activities as reported in the govemment-wide
statement of net assets. One element of that reconciliation explains, "long-term liabilities are not
due and payable in the current period and therefore are not reported in the funds." The details of
this $(28,661,629) difference are as follows
Serial Bonds and Certificates of Obligation
Accrued interest payable
Compensated absences
Principal retirement
Payment to bond refunding escrow agent
$( 30,677,347)
( 197,628)
( 50,873)
1,664,219
600,000
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities
$( 28,661,629)
Explanation of Certain Differences Between the Governmental Fund Statement of Revenue,
Expenditures and Chanl!:es in Fund Balances and the Government-wide Statement of
Activities
The governmental fund statement of revenue, expenditures and changes in fund balances
includes a reconciliation between net changes in fund balances - total governmental fund and
changes in net assets of governmental activities as reported in the govemment-wide statement of
activities. One element of that reconciliation explains, "Govemmental funds report capital
outlays as expenditures. However, in the statement of activities the cost of those assets is
allocated over their estimated useful lives and reported as depreciation expense." The details of
this $5,442,164 difference are as follows:
Capital outlay
Depreciation expense
$ 7,430,703
( 1,988,539)
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
$ 5,442,164
Another element of that reconciliation states, "the issuance oflong-term debt (e.g., bonds, leases)
provides current financial resources to govemmental funds, while the repayment of the principal
of long-term debt consumes the current financial resources of govemmental funds. Neither
transaction, however, has any effect on net assets. The details f this $55,576 difference are as
follows
(continued)
48
2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
(Continued)
Explanation of Certain Differences Between the Governmental Fund Statement of Revenue,
Expenditures and Chanl!:es in Fund Balances and the Government-wide Statement of
Activities (Continued)
Principal payments
Fund intrest paid
Full accrual interest expense
Change in compensated absences
Net adjustment to reduce fund balance -total
governmental funds to arrive at net assets -
governmental activities
$
70,000
27,717
26,841)
15,300)
$
55,576
Another element of that reconciliation states, "Revenues in the staternent of activities that do not
provide current financial resources are not reported as revenues in the funds." The details of this
$(13,277) difference are as follows:
Property taxes
Ambulance revenue
Adjudicated fines
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
$(
20,966)
1,263
6,426
$(
13,277)
Another element of that reconciliation states, "The issuance of long-term debt (e.g., bonds, leases)
provides current financial resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of govemmental funds. Neither
transaction, however, has any effect on net assets. The details of this $2,264,219 difference are as
follows:
Debt issued or incurred:
Payment to bond refunding escrow agent
Principal repayments
Net adjustment to decrease net changes infimd balances -
total governmental funds to arrive at changes in net
assets of governmental activities
$
600,000
1,664,219
$
2,264,219
Another element of that reconciliation states, "Some expenses reported in the statement of
activities do not require the use of current financial resources and therefore are not reported as
expenditures in governmental funds." The details of this $(103,961) difference are as follows:
Compensated absences
Accrued interest
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
49
$(
(
50,873)
53,089)
$(
103,962)
3. STEW ARDSHlP, COMPLIANCE AND ACCOUNT ABILITY
A. Budl!etarv Information
The City Council follows these procedures in establishing budgetary data reflected in the
basic financial statements:
(1) Prior to September 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 the
means of financing them.
(2) Public hearings are conducted to obtain taxpayer comments
(3) Prior to September 30, the budget is legally enacted through passage of an
ordinance.
(4) The City Manager is authorized to transfer budgeted amounts between
departrnents within any fund; however, any revisions that alter the total
expenditures of any fund must be approved by the City Council.
(5) Formal budgetary integration is employed as a management control device
during the year for the General, Debt Service, and Enterprise Funds.
Budgetary control is maintained at the function level.
Internal budgets are prepared and reviewed by the City Council for
expenditures of Special Revenue Funds. These budgeted expenditures are not
formally adopted by the City Council. No budgets were prepared for revenue
of these funds for the year ended September 30,2003.
(6) Budgets for the General and the Debt Service Funds are adopted on a basis
consistent with generally accepted accounting principles (GAAP). Formal
budgeted amounts are as amended by the City Council for the General, Debt
Service and Enterprise Funds.
(7) Budgetary data for the Capital Projects Fund has not been presented in the
accornpanying basic financial statements, as such funds are budgeted over the
life of the respective project and not on an annual basis. Accordingly, formal
budgetary integration of the Capital Projects Fund is not employed and
comparison of actual results of operations to budgetary data for such fund is
not presented.
(8) Budgetary data for the Enterprise and Drainage Utility Funds has not been
presented since the reporting on such budgets is not legally required.
(continued)
50
3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budl!etarv Data (Continued)
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other
commitrnents for the expenditure of funds are recorded in order to reserve that portion of
the applicable fund balance, is employed in the govemmental funds. Encumbrances are
reported as reservations of fund balances because they do not constitute expenditures or
liabilities.
Deficit Fund Balance
The City's component unit, the Tax Incrernent Financing District, has negative net assets
of $8,185,124. This deficit is due to the conversion to the new reporting model GASB
No. 34. The component unit has long-term debt with no assets. Purchases made by this
fund are contributed to the City or other entities that participate in the District. This fund
will continue to have a deficit fund balance until the entities' debt has been repaid.
4. DETAILED NOTES ON ALL FUNDS
Deposits and Investments
Substantially all cash, cash equivalents and investments are maintained in consolidated cash and
investment accounts. Interest income relating to consolidated cash, cash equivalents and
investrnents is allocated to the individual funds monthly based on each fund's prorate share of
total consolidated cash, cash equivalents and investments.
Legal provisions generally permit the City to invest in certificates of deposit, repurchase
agreements, public funds investment pools, direct obligations of the United States of America or
its subdivisions and state and local government securities. During the year ended September 30,
2003, the City did not OViD any types of securities other than those permitted by statute.
The City's cash deposits are categorized to give an indication of the level of credit risk assumed
by the City at year-end. Category 1 includes cash deposits that are insured or collateralized with
securities held by the City or its agent in the City's name. Category 2 includes cash deposits that
are collateralized with securities held by the pledging financial institution's trust department or
agent in the City's name. Category 3 includes cash deposits that are uncollateralized, including
any cash deposit that is collateralized with securities held by the pledging financial institution's
trust departrnent or agent, but not in the City's name. At September 30, 2003, the carrying
amount of the City's cash deposits (primarily interest bearing deposits) was $1,360,117 and the
bank balance was $605)65. The entire bank balance qualified as Category 1.
(continued)
51
4. DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and Investments (Continued)
During the year ended September 30, 2003, the City invested in Texas Local Government
Investment Cooperative (LOGIC) Liquid Asset Portfolio and United States govemrnent agency
securities. LOGIC, a public funds investment pool managed by Southwest Securities Group, Inc.
Authorized investments of LOGIC include obligations of the United States of America or its
agencies and instrumentalities, other obligations unconditionally guaranteed by the U. S.
government, and collateralized repurchase agreements. The fair value of the City's position in the
investment pool is the same as the value of the pool shares. At September 30, 2003, the City's
investments in LOGIC are considered cash equivalents. These investments in LOGIC are not
categorized because they are not evidenced by securities that exist in physical or book entry form.
The City's investments are categorized to given an indication of the level of credit risk assumed
by the City at year-end. Category 1 includes investments that are insured or registered for which
the securities are held by the City or its agent in the City's name. Category 2 includes uninsured
and unregistered investments for which the securities are held by the counterparty's trust
department or agent in the City's name. Category 3 includes uninsured and unregistered
investments for which the securities are held by the counterparty, or by its trust department or
agent but not in the City's name. All of the City's investments at September 30, 2003, were
Category 1 investments.
Investments in the United States govemment agency securities are considered to be short-term
and are stated at cost and all such investment activity is conducted through a depository bank.
During the fiscal year ended September 30, 2003, the City did not invest through any security
brokers or dealers. All investments in United States govemment agency securities qualified as
Category 1.
A summary of the City's cash, cash equivalents and investments follows:
Carrying Fair
Amount Value
Cash in bank $ 1,360,117 $ 1,360,117
LOGIC 10,258,623 10,258,623
Cash and cash equivalents, net 11,618,740 11,618,740
Investments - United States govenunent
agency security 23,229,060 23,229,060
$ 34,847,800 $ 34,847,800
$3,409,182 of total cash and cash equivalents represents the City's component units' portion
52
4. DETAILED NOTES ON ALL FUNDS (Continued)
Receivables
Receivables as of year-end for the govemment's individual major funds, nonmajor funds and
enterprise funds in the aggregate, including the applicable allowances for uncollectible accounts,
are as follows:
Governmental Funds Enterprise Funds
Debt Capital Nonmajor Water and Drainage
General Service Projects Funds \Vastewater Utility Total
Receivables:
Accounts $ 249,219 $ $ 130,159 $ $ 1,243,651 $ 74,731 $ 1,697,760
Taxes 142,993 40,667 183,660
Due from other
governments 332,130 1,243 798,160 1,131,533
Accrued interest 44,916 ~ 29,830 22,834 103,485
Gross receivables 769,258 47,815 159.989 820,994 1,243,651 74,731 3,116,438
Less: allowance for
uncollectibles - 17,076 17,076
Net Total Receivables $ 769,258 $ 47,815 $ 159,989 $ 820,994 $ 1,226,575 $ 74,731 $ 3,099,362
Governrnental funds report deferred revenue in connection with receivables for revenue that is
not considered to be available to liquidate liabilities of the current period. Governmental funds
also defer revenue recognition in connection with resources that have been received, but not yet
earned. At the end of the current fiscal year, the various components of deferred revenue and
unearned revenue reported in the governmental funds were as follows:
Unavailable
Unearned
General Fund
Delinquent property taxes receivable
Other
Total General Food
$
142,993
52,198
195,191
$
Debt SeIVice Food
Delinquent property taxes receivable
Total Debt SeIVice Fund
Total Governmental Foods
40,667
40,667
235,858
$
$
The City's property tax is levied each October 1 on the assessed value listed as of the prior
January 1 for all real property and certain personal property located in the City. Tax liens attach
as of January 1. The assessed value, net of exemptions, upon which the fiscal 2003 levy was
based, was $8,233,543.
Property taxes are limited by the Texas constitution to $2.50 per $100 of assessed valuation and
by City Charter to $1.50 per $100 valuation. Also, the tax rate set per budget year shall not
result in property tax revenue increase greater than seven percent of the total property tax
revenue collected in the preceding budget year, adjusted for new construction, unless authorized
by the voters of the City at a special election. The combined tax rate to finance general
governmental service and debt service for the year ended Septernber 30, 2003, was $.3474 per
$100 of assessed valuation.
(continued)
53
4. DETAILED NOTES ON ALL FUNDS (Continued)
Receivables (Continued)
Taxes are due by January 31 following the levy date. Tax collections, including related penalties
and interest, for the year ended September 30, 2003. Property taxes receivable at
September 30, 2003, were $183,660.
The appraisal of property within the City is the responsibility of a countywide appraisal district
as required by legislation passed by the Texas Legislature. The appraisal district is required
under such legislation to assess all property within the appraisal district on the basis of 100% of
its appraised value and is prohibited from applying any assessment ratios. The value of property
\vithin the appraisal district must be reviewed every three years; however, the City may, at its
own expense, require annual reviews of appraised values. The City rnay challenge appraised
values established by the appraisal district through various appeals and, if necessary, legal action.
Cauital Assets
Capital asset activity for the year ended September 30, 2003, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreas es Adjustment Balance
Goverruuent Activities:
Capital assets, not being depreciated:
Land $ 6,363,888 $ $ $( 3,708) $ 6,360,180
Construction in progress 12,056,743 11,137,507 1,410,924 21,783,326
Total assets not being depreciated 18,420,631 11,137,507 1,410,924 3,708) 28,143,506
Capital assets, being depreciated:
Buildings and improvements 12,209,537 646,610 46,816 33,399) 12,775,932
Machinery and equipment 6,612,446 175,155 952,171 1,225,745) 4,609,685
Infras trncture 50,837,010 3,599,036 33.816) 54,402.230
Total capital assets being depreciated 69,658,993 4,420,80 I 998,987 1,292,960) 71,787,847
Less accumulated depreciation:
Buildings and improvements 2,724,653 513,193 3,237,846
Machinery and equipment 3,648,577 387,301 4,035,878
Improements other than buildings 7,654,931 1,088,045 8,742,976
Total accumulated depreciation 14,028,161 1,988,539 16,016,700
Total capital assets being depreciated, net 55,630,832 2,432,262 998,987 1,292,960) 55,771,147
Governmental activities capital
assets, net $ 74,051,463 $ 13,569,769 $ 2,409,911 $( 1,296,668) $ 83,914,653
The City changed their threshold for capitalization effective October 1, 2002, the adjustment
column reflects deletions for assets that were below the new threshold.
(continued)
54
4. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets (Continued)
Beginning Ending
Balance Increases Decreases Adjustments Balance
Business-t)'pe Activities:
Capital assets? not being depreciated:
Land $ 313,057 $ $ $ $ 313,057
Construction in progress 571,747 729,236 366.815 934,168
Total assets not being depreciated 884,804 729,236 366,815 1,247,225
Capital assets, being depreciated:
Buildings 53,922 53,922
rvlachinery and equipment 1,091,836 142,218 137,338 119,235) 977,481
hnprovements other than buildings 45,181,740 2,142,323 47,324,063
Total capital assets being depreciated 46,327,498 2,284,541 137,338 119,235) 48,355,466
Less accumulated depreciation:
Buildings and improvements 40,645 817 41,462
Machinery and equipment 718.323 85,368 91,955) 711,736
Infms tructure 13,922,322 1,196,530 1,114,611) 14,004,241
Total accumulated depreciation 14,681,290 1,282,715 1,206,566) 14,757,439
Total capital assets being depreciated, net 31,646,208 1,001,826 137,338 1,087,331 33,598,027
Business-type activities capital assets, net $ 32,531,012 $ 1,731,062 $ 504,153 $ 1,087,331 $ 34,845,252
The City changed their threshold for capitalization effective October 1, 2002. The adjustment
colurrm reflects deletions for assets that were below the new threshold.
Depreciation expense was charged to functions/programs of the primary govemment as follows:
Governmental Activities:
General government
Fire and rescue
Leisure services
Maintenance
Police
Streets and drainage
Total Depreciation Expense - Business-type Activities
$ 76,483
170,722
460,286
30,179
151,351
1,099,518
$ 1,988,539
1,206,381
76,334
$ 1,282,715
Total Depreciation Expense - Governmental Activities
Business-type Activities:
Water and wastewater
Drainage utility
(continued)
55
4. DETAILED NOTES ON ALL FUNDS (Continued)
Interfund Receivables. Pavables and Transfers
Interfund Receivables, Payable,~ and Transfers
The composition of interfund balances as of September 30, 2003, is as follows:
Interfund receivables/payables:
Receivable Fund
Pavable Food
Amooot
$ 264,923
680,030
56,630
$ 1,001,583
Capital Proj ect Food
Nonrnajor Foods:
lIollUltaryLibrary
Crime District
Parkland Dedication
Total
Balances resulted from the time lag between the dates that 1) interfund goods and services are
provided on reimbursable expenditures occur, and 2) transactions are recorded in the accounting
systern, and 3) payments between funds are made.
Interfund transfers:
Transfer In
Debt
General Service Total
Transfer Out:
Capital Project Fund $ 66,658 $ $ 66,658
Nonmajor Governmental Funds 641,393 641,393
Water and Wastewater Fund 458,060 600,000 1,058,060
Total Transfers Out $ 524,718 $ 1,241,393 $ 1,766,111
The transfer of $66,658 from the Capital Projects Fund to the General Fund was to finance salary
and benefits associated to the construction of City Hall. The transfer of $458,060 from the
Utility Fund to the General Fund represents the 2003 Administrative transfer and the franchise
fee based on gross water and wastewater revenue of the prior audited financial statements. The
transfer of $600,000 from the Utility Fund to the Debt Service Fund is for the portion of the
refunding bond issued associated with govemmental funds. The remaining transfer of$64l,393
from the Crime District to the Debt Service Fund is for the repayment of debt. All principal and
interest is paid from the Debt Service Fund's bank account.
(continued)
56
4. DETAILED NOTES ON ALL FUNDS (Continued)
Cauital Leases
The City has acquired an ambulance through the use of a lease purchase agreernent. This lease
agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded
at the present value offuture minimum lease payrnents as of the inception date.
Capital lease obligations:
32,222
1,328
2004
Less interest
$
Total principal requirements
$
30,894
Lonl!-term Liabilities
Long-term liability activity for the year ended September 30, 2003, was a follows:
Balance Balance Amounts
October I, September 30, Due Within
2002 Additions Retirements 2003 One Year
Governmental Activities
General obligation bonds and
certificates of obligation $ 15,315,000 $ $ 1,495,000 $ 13,820,000 S 895,000
Sales tax revenue bonds 14,472,722 535.000 13,937,722 560,000
Capital lease obligations 60.516 29,622 30,894 30,894
Note payable 364,645 204,598 160,047 131,739
Compensated absences 410,256 50,873 461,129
Accreted interest 54,209 26,215 80,424
Total Governmental Activities 30,677,348 77,088 2,264,220 28,490.216 1,617,633
Business-type Activities
Revenue bonds and certificate
of obligation 12,443,000 2,580,000 2,618,000 12,405,000 860,000
Compensated absences 37,208 5,612 42,820
Total Business-type Activities 12,480,208 2,585,612 2,618,000 12,447,820 860,000
Total Primary Government $ 43,157,556 $ 2,662,700 $ 4,882,220 $ 40,938,036 $ 2,477,633
Component Unit:
Tax Increment Financing Fund
Revenue Bonds 10,860,000 10,860,000 695.000
Total Component Unit $ 10,860,000 $ S $ 10,860,000 $ 695,000
(continued)
57
4. DETAILED NOTES ON ALL FUNDS (Continued)
Lonl!:-term Liabilities (Continued)
Govemmental Activities long-term liabilities at September 30,2003, consisted of the following:
General obligation bonds and certificates of 0 bligation selViced by property tax revenue:
$4,515,000 Series 1994 General Obligation Refunding and Improvement
Bonds due in annual installments of $115,000 to $405,000 through
February 1, 2013; interest at 3.60% to 5.60%.
$
1,385,000
$2,520,000 Series 1995 General Obligation Bonds due in annual
installments of $75,000 to $215,000 through February 15, 2015; interest
at 5.40% to 8.00%.
110,000
$2,205,000 Series 1996 General Obligation Bonds due in annual
installments of $75,000 to $170,000 through February 15, 2016; interest
at 3.75% to 5.80%.
290,000
$500,000 Series 1999 General Obligation Bonds due in annual
installments of $5,000 to $40,000 through February 15, 2019; interest at
4.00% to 6.00%.
445,000
$9,045,000 Series 2001 General Obligation Bonds due in annual
installments of $55,000 to $1,030,000 through February 15, 2014;
interest at 4.00% to 4.60%.
8,590,000
$3,000,000 Series 2002 Tax and Waterworks and Sewer System Surplus
Revenue Certificates of Obligation Bonds due in annual installments of
$110,000 to $170,000 through February 15, 2020; interest at 4.20% to
4.70%.
3,000,000
Total General Obligation Bonds and Certiticates of Obligation
$
13,820,000
Revenue bonds selViced by sales tax revenue:
$6,460,000 Series 1997 Colleyville Economic Development Corporation
Sales Tax Revenue Bonds due in annual installments of $150,000 to
$480,000 through February 15, 2022; interest at 5.00% to 7.00%.
$
5,700,000
$7,170,000 Series 1999 Texas Tax and Waterworks and Sewer System
Certificates of Obligation due in annual installments of $5,000 to
$565,000 through February 15, 20J 9; interest at 3.60% to 5.60%.
6,155,000
$2,122,722 Series 2000 Colleyville Economic Development Corporation
Sales Tax Revenue Bonds due in annual installments through February
15,2027; interest at 5.50% to 6.250%
2,082,722
Total Revenue Bonds
$
13,937,722
(continued)
58
4. DETAILED NOTES ON ALL FUNDS (Continued)
LODl!:-term Liabilities (Continued)
Notes payable:
Note payable served by property taxes; $108,144 note payable due in
various arumal installments plus interest; interest rate at 5.4%.
$
69,297
Note payable serviced by property taxes, $363,000 note payable due in
annual installments of $90,700 plus interest; interest rate at 4.00%.
90,750
Total Notes Payable
$
160,047
The funds utilized for the repayment of long-term liabilities for govemmental activities are the
Debt Service Fund and the Crime District Fund.
In years past, the City has issued refunding bonds. As a result, the refunded debt is considered to
be defeased and the liability has been removed from the books. The City's defeased debt as of
September 30, 2003, was $4,935,000.
Business-type Activities long-term liabilities at September 30,2003, consisted of the following:
Water and Wastewater Fund:
$2,860,000 Series 1994 Waterworks and Wastewater System Revenue
Bonds due in annual installments of $100,000 to $200,000 through
January 1, 2014; interest at 3.15% to 5.40%.
$
1,800,000
$4,220,000 Series 1996 Waterworks and Wastewater System Revenue
and Refunding Bonds due in annual installments of $100,000 to
$335,000 through January 1, 2017; interest at 3.75% to 5.60%
2,875,000
$2,825,000 Series 1998 Waterworks and Wastewater System Revenue
Bonds due in annaul installments of $85,000 to $220,000 through
January 1, 2018; interest at 4.25% to 6.75%.
2,350,000
$2,580,000 Series 2002 Waterworks and Wastewater System Revenue
Bonds due in annual installments of $130,000 to $255,000 through
January 1, 2015; interest at 2.00% - 4.00%.
2,580,000
Total Water and Wastewater Fund
$
9,605,000
Drainage Utility Fund:
$3,025,000 Series 2001 municipal drainage utility system revenue bonds
due in annual installments of $85,000 to $220,000 through February 15,
2021; interest at 4.00% to 5.00%.
Total Drainage Utility Fund
$
$
$
2,800,000
2,800,000
Total Business-type activities
12,405,000
In years past, the City has issued refunding bonds. As a result, the refunded debt is considered to
be defeased and the liability has been removed from the books. The City's defeased debt as of
September 30,2003, was $1,120,000.
(continued)
59
4. DET AILED NOTES ON ALL FUNDS (Continued)
Lone:-term Liabilities (Continued)
The ordinances authorizing the issuance of Waterworks and Wastewater System Revenue Bonds
created the Interest and Sinking Fund and Reserve Fund. The gross revenue of the waterworks
and wastewater system, after deduction of reasonable expenses of operations and maintenance,
are pledged to such funds in amounts equal to the total annual principal and interest requirements
of the bonds and amounts required to rnaintain the Reserve Fund. At September 30, 2003, the
City was in compliance with these requirements.
The City's component unit, the Tax Increment Financing District, long-term liabilities at
September 30, 2003, consisted of the following:
Tax Increment Financing District
$2,895,000 Series 2000 Tax Notes due in installments of $670,000 to
$780,000 begirming in 2004 through February 15, 2007; interest at
4.95% to 5.20%.
$680,000 Series 2002 Tax and Tax Increment Revenue Certificates of
Obligation due in installments of $25,000 to $40,000 beginning in 2004
through February 2012; interest at 400% to 5.00%.
$7,285,000 Series 2001 Tax Notes due in installments of $350,000 to
$66,000 begirming in 2006 through February 15, 2020; interest at 4.30%
to 5.00%.
Total Tax Increment Financing District
Governmental Activities
General
Obligation Bonds and
Certificates of Obligation Revenue Bonds
September 30, Principal Interest Principal Interest
2004 $ 895,000 $ 583,603 $ 560,000 $ 682,296
2005 930,000 543,453 590,000 652,090
2006 1,330,000 495,440 505,000 622,408
2007 1,400,000 437,915 525,000 596,818
2008 1,470,000 377,986 550,000 572,223
2009-2013 6,185,000 998,195 3,1 90,000 2,435,027
2014-2018 1,240,000 199,099 4,115,000 1,540,655
2019-2023 370,000 16,715 2,990,000 558,769
2024-2028 912,722 1,504,974
$ 13,820,000 $ 3,652,406 $ 13,937,722 $ 9,165,260
(continued)
60
$
2,895,000
680,000
7,285,000
$
10,860,000
Notes Payable
Principal Interest
$ 13 I ,739 $ 6,556
28,308 719
$ 160,047 $ 7,275
4. DETAILED NOTES ON ALL FUNDS (Continued)
Lonl!:-term Liabilities (Continued)
Business- Type Activities
Revenue Bonds
September 30, Principal Interest
2004 $ 860,000 $ 541,495
2005 900,000 505,652
2006 935,000 467,968
2007 975,000 427,081
2008 855,000 387,534
2009- 2013 4,450,000 1,373,336
2014-2018 3,060,000 396,329
2019- 2023 370,000 28,500
$ 12,405,000 $ 4,127,895
Discretely Presented Component Unit -
Tax Increment Financing Fund
September 30,
Revenue Bonds
Principal Interest
2004
2005
2006
2007
2008
2009-2013
2014-2018
2019-2023
$ 695,000 $ 502,208
730,000 466,824
1,120,000 421,435
1,175,000 365,620
410,000 327,660
2,355,000 1,339,750
2,970,000 728,306
1,405,000 71,008
$ 10,860,000 $ 4,222,811
(continued)
61
4. DETAILED NOTES ON ALL FUNDS (Continued)
Employees' Retirement System
Plan Description
The City provides pension benefits for all of its fulltime employees through a nontraditional,
joint contributory, defined benefit plan in the statewide Texas Municipal Retirement System
(TMRS), one of 774 administered by TMRS, an agent multiple-employer public employee
retirement system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the
City-financed monetary credits, with interest. At the date the plan began, the City granted
monetary credits for service rendered before the plan began of a theoretical amount equal to two
times what would have been contributed by the employee, with interest, prior to establishment of
the plan. Monetary credits for service since the plan began are a percent (l00%, 150%, or 200%)
of the employee's accumulated contributions. In addition, the City can grant, as often as
annually, another type of monetary credit referred to as an updated service credit which is a
theoretical amount which, when added to the employee's accumulated contributions and the
monetary credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution rate and
City matching percent had always been in existence and if the employee's salary had always
been the average of his salary in the last three years that are one year before the effective date.
At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions
with interest and the employer-financed monetary credits with interest were used to purchase an
annuity.
Members can retire at ages 60 and above with 5 or more years of service or with 20 years of
service regardless of age. A member is vested after 5 years. The plan provisions are adopted by
the goveming body of the City, within the options available in the state statutes goveming TMRS
and within the actuarial constraints also in the statutes.
TMRS issues a publicly available annual financial report that includes financial statements and
required supplementary information. The report may be obtained by writing to TMRS, P. O.
Box 149153, Austin, Texas 78714-9153.
( continued)
62
4. DETAILED NOTES ON ALL FUNDS (Continued)
Contributions
The contribution rate for the employees is 7%, and the City matching percent is currently 200%,
both as adopted by the governing body of the City. Under the state law governing TMRS, the
actuary annually determines the City contribution rate. This rate consists of the normal cost
contribution rate and the prior service contribution rate, both of which are calculated to be a level
percent of payroll from year to year. The normal cost contribution rate fiances the currently
accruing monetary credits due to the City matching percent, which are the obligation of the City as
of an employee's retirement date, not at the time the employee's contributions are made. The
normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfY
the obligation of the City to each employee at the time his retirement becomes effective. The prior
service contribution rate amortized the unfunded actuarial liability over the remainder of the plan's
25-year amortization period. When the City periodically adopts updated service credits and
increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a
new 25-year period. The unit credit actuarial cost method is used for determining the City
contribution rate. Contributions are made monthly by both the employees and the City. Since the
City needs to know its contribution rate in advance to budget for it, there is a one-year delay
between the actuarial valuation that is the basis for the rate and the calendar year when the rate
goes into effect.
Schedule of Actuarial Liabilities and Funding Progress
Actual valuation date 12/31102 12/31/0 I
Actuarial value of assets
Actuarial accrued liability
Percentage funded
Unfunded (over-ti.mded)
actuarial accrued liability (UAAL)
Annual covered payroll
UAAL as a percentage of covered payroll
Net pension obligation
(NPO) at the beginning of period
Annual Pension Cost:
Annual required contribution (ARC)
Contributions made
Increase in NPO
NPO at the end of period
12/31/00
$ 13,959,261 $ 12,000,548
17,190,512 13,378,986
81.2% 89.7%
3,231,251 1,378,438
7,071,220 7,195,064
45.7% 19.2%
$ 10,248,735
11,213,832
91.4%
965,097
6,112,380
15.8%
864,1 08
864,108
740,452
740,452
710,577
71 0,577
Actuarial Assumptions
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Investment Rate of Retwn
Proiected Salary Increases
Includes Inflation At
Cost-of-Living Adjustments
Unit Credit
Level percent of Payroll
25 Years - Open Period
Amortized Cost (to accurately retlect
the requirements of G ASB Statement
No. 25, paragraphs 36e and 138)
8%
None
None
None
(continued)
63
4. DET AILED NOTES ON ALL FUNDS (Continued)
Water and Wastewater Contracts
The City has two contracts with the Trinity River Authority of Texas (TRA) for the purchase of
treated water and for the transportation, treatment and disposal of sanitary sewage and other
waste. The initial terms of the contracts are 35 and 50 years, and they expire in 2015 and 2025.
While the provisions of each of the contracts vary, each contract basically requires the City to
pay varying amounts based on the costs associated with water purchased and sewage transported
and/or treated and disposed. The cost includes the City's proportionate share ofTRA's operating
and maintenance expenses, related debt service costs, and certain other miscellaneous charges.
Purchases of treated water and charges for the transportation, treatment and disposal of sewage
and other wastes during 2003 amounted to approximately $3,807,381 and $882,458,
respecti vely.
Advances from Developers
Developers are required by ordinance to construct perimeter streets and related storm drainage
facilities. The developer may request a waver from the Council for the construction
requirements and instead deposit escrow funds with the City equal to one-half of the estimated
cost of construction, which are utilized by the City to complete the project at some later date. At
September 30, 2003, developers had escrowed $220,702 with the City in connection with
developer agreements.
Contingent Liabilities
The City has been named as a defendant or co-defendant in a number of legal actions. While the
outcome of these cases is not known at this tirne, City management believes that any awards to
insured parties which must be paid in excess of amounts covered by insurance will not be
material to the financial position of the City.
Risk Financing and Insurance
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. During the fiscal
year 1974, the City joined the Texas Municipal League Workers Compensation Joint Insurance
Fund for risks related to ernployees. During the fiscal year 1992, the City joined the Texas
Municipal League Joint Insurance Fund for risks related to general liability , property and errors
and omissions. Premiums are paid to the Pool, which retains a limit of loss. Reinsurance
companies insure the risks beyond those limits. The City retains, as a risk, only the deductible
amount of each policy. There have been no significant reductions in insurance coverage during
the past three years.
Prior Period Adiustment
The City's Capital Projects Fund has a prior period adjustment of $1,808,241. This adjustment
resulted from a change due to GASB Statement No. 33. and the recognition of revenues.
64
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally restricted to
expenditure for particular purposes.
Voluntary Park - This fund is used to account for the operations for which voluntary
contributions by citizens are used. Contributions are used primarily to support park
activities.
Voluntary Library - This fund is used to account for the operations for which voluntary
contributions by citizens are used. Contributions are used primarily to support library
activities.
Police Asset Forfeiture -This fund is used to account for activity related to seizure of assets
in criminal-related activities.
Tree Preservation - This fund is used to account for operations related to replacement of
trees, which are eliminated due to commercial development. Contributions are received from
entities that are developing the property.
Library Donation - This fund is used to account for private and corporate donations for
capital purchases related to the new library building for the City.
Recreational Event - This fund is used to account for activities related to athletic events for
the City.
Community Center Development - This fund is used to account for contributions received to
construct a community center.
65
Recycling - This fund is used to account for the promotion of recycling activities in the City of
Colleyville. Contributions are received from the holder of the City's recycling franchise.
LEaSE (Law Enforcement Officer Standards and Education) - This fund is used to account
for activities related to the continuing education of qualified law enforcement officers as funded
by the State of Texas LEOSE Account.
Colleyville Economic Development - This fund is used to account for the use of bond proceeds
and sales tax revenues for municipal park improvements, the purchase of land and equipment for
additional neighborhood parks and for the construction of a community center and library.
Crime District - This fund is used to account for the Colleyville Crime Control and Prevention
District formed to act on behalf of the City for financing the development of crime control
throughout the City.
Kidsville Maintenance - This fund IS used to account for contributions received for the
maintenance of Kidsville Playground.
Special Donations - This fund is used to account for various donations made to the City for
specific projects.
Court Technology - This fund is used to account for the collection and use of fines collected to
be specifically used on technology for the court.
Court Security - This fund is used to account for the collection and use of fines collected to be
specifically used for security purposes.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction of major capital
facilities other than those financed by proprietary funds and trust funds.
Parkland Dedication Fund - This fund is used to account for the acquisition of land for new
park sites and to make irnprovements to or expand existing parks to better serve new
development. Fees collected from the developers of residential and commercial development
finance the improvements.
Kimzey Park - This fund is used to account for the construction of Kimzey Park. The source of
funding was a Texas Parks and Wildlife state grant
66
TillS PAGE INTENTIONALLY LEFT BLANK
67
CITY OF COLLEYVILLE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2003
Special Revenue Funds
Police
Voluntary Voluntary Asset Tree Library
Park Library Forfeiture Preservation Donation
ASSETS
Cash and cash equivalents $ 4,949 $ $ 2,984 $ 25,827 $ 103,054
Investments 497,589 525,044
Due from other governments
Accrued interest 5,192 5,454
Total assets $ 507,730 $ 530,498 $ 2,984 $ 25,827 $ 103,054
LIABILITIES
Accounts payable $ $ $ $ $
lnterfund payable 264,923
Advances from developers 20,623
Total liabilities 264,923 20,623
FUND BALANCES
Special revenue funds 507,730 265,575 2,984 5,204 103,054
Capital project funds
Total fund balances 507,730 265,575 2,984 5,204 103,054
Total liabilities and
fund balances $ 507,730 $ 530,498 $ 2,984 $ 25,827 $ 103,054
68
Special Revenue Funds
Recreational
Event
Community
Center
Development
Recycling
LEOSE
CoIleyviIle
Economic
Development
Crime
District
KidsviIle
Maintenance
$ 3,011 $ 22,756 S 4,294 S 16,890 $ 260,895 $ $ 24,298
403,882 1,103,753
163,148 130,294
624 1,915
$ 3,01 ] $ 22,756 S 4,294 $ 16,890 $ 828,549 $ 1,235,962 $ 24,298
$
3.011
3,011
$
3,011
s
22,756
22,756
$
22,756
$
2,600
2,600
1,694
1,694
$
4,294
$
16,890
16,890
$ 16,890
(continued)
69
$
828,549
828,549
$
828,549
s
295,498
680,030
975,528
260,434
260,434
$ 1,235,962
$
24,298
24,298
$
24,298
CITY OF COLLEYVILLE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
SEPTEMBER 30, 2003
Special Revenue Funds
Total
Nonrnajor
Special Court Building Special Revenue
Donations Technology Security Funds
ASSETS
Cash and cash equivalents $ 26,759 $ 2,354 $ 12,519 $ 510,590
Investments 2,530,268
Due from other governments 293,442
Accrued intere~1 13,185
Total assets $ 26,759 $ 2,354 $ 12,519 $ 3,347,485
LIABILITIES
Accounts payable $ $ $ $ 298,098
Interfund payable 944,953
Advances from developers 20,623
T otalliabilities 1,263,674
FUND BALANCES
Special revenue funds 26,759 2,354 12,519 2,083,811
Capital project funds
Total fund balances 26,759 2,354 12,519 2,083,811
Total liabilities and
fund balances $ 26,759 $ 2,354 $ 12,519 $ 3,347,485
70
Capital Project Funds
Parkland
Dedication
Kimzey
Park
Total
Nonmajor
Capital Project
Funds
Total
Nonmajor
Funds
$ S 14.736 $ 14,736 S 525,326
824,547 824,547 3,354,815
504,718 504,7\8 798,160
9,649 9,649 22,834
$ 1,338,914 $ 14,736 $ 1,353,650 $ 4,701,135
$ 58,716 $ $ 58,716 $ 356,814
56,630 56,630 1,001,583
20,623
115,346 115,346 1,379,020
2,083,811
1,223,568 14,736 \,238,304 1,238,304
1,223.568 14,736 1,238,304 3,322,115
$ 1,338,914 S 14,736 S 1,353,650 $ 4,701,135
71
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
Special Revenue Funds
Police
Voluntary Voluntary Asset Tree Library
Park Library Forfeiture Preservation Donation
REVENUES
Taxes $ $ $ $ $
Intergovernmental
Fines and forfeitures 2,48\
Charges for services 122,167
Donations 25,075 61,104 137,654
Investment earnings 10,682 20,065
Other
T Dtal revenues 157,924 81,169 2,481 137,654
EXPENDITURES
Current:
General government
Fire and rescue
Leisure services 65,085 1,535
Municipal court
Police 2,506
Debt service:
Principal retirement
Interest and fiscal charges
Capital outlay 18,000 400,000 42,365
Total expenditures 83,085 400,000 2,506 43,900
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 74,839 318,83 I) 25) 93,754
OTHER FINANCING SOURCES (USES)
Transfers out
T atal other financing sources
and (uses)
NET CHANGE IN FUND BALANCES 74,839 318,831) 25) 93,754
FUND BALANCES, BEGINNING 432,891 584,406 3,009 5,204 9,300
FUND BALANCES, ENDING $ 507,730 $ 265,575 $ 2.984 $ 5,204 $ 103,054
72
Special Revenue Funds
Recreational
Event
Community ColIeyvilIe
Center Economic Crime KidsvilIe
Development Recycling LEOSE Development District Maintenance
$ $ $ $ 768,846 $ 652,837 $
s
3,417
4,617
37,526
18,000
18,000
3,865
3,865
3,417
773,463
690,363
16,827 175
3.117 5,160
4,582 295,982
185,000
419,114
130,516 1,384,271
3,117 16,827 4,582 739,965 1,680,253
300 1,173 717) 33,498 989,890)
641,393)
641,393)
300 1,173 717) 33,498 1,631,283)
3,011 22,456 521 17,607 795,051 1,891.717 24,298
$ 3,011 $ 22,756 $ 1,694 $ 16,890 $ 828,549 $ 260,434 S 24,298
(continued)
73
74
Capital Project Funds
Total
Nonmajor Total
Parkland Kimzey Capital Project Nonmajor
Dedication Park Funds Funds
S S $ $ 1,421,683
504,718 504,718 504,718
38,508
122.167
456,075 456,075 707,829
21.529 21,529 94,419
21,865
982,322 982.322 2,911,189
17,002
6,617
75,458
11,411
312,588
185,000
419,114
630,031 630,031 2,614,926
630,031 630,031 3,642,116
352,291 352,29l 730,927)
641,393)
641,393)
352,291 352,291 1,372,320)
871,277 14,736 886,013 4,694,435
$ 1,223,568 $ 14,736 $ 1,238,304 $ 3,322,115
75
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76
AGENCY FUNDS
Employee Activity Fund - This fund is used to account for funds held by the City for the benefit
of employees ofthe City.
Sesquicentennial Fund - This fund is used to account for funds held by the city for the benefit
of the City of Colleyville's historical purposes.
77
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
SEPTEMBER 30, 2003
Employee
Activity Sesquicentennial
Fund Fund Total
ASSETS
Cash and cash equivalents $ 1,915 $ 2,044 $ 3,959
Total assets $ 1,915 $ 2,044 $ 3,959
LIABILITIES
Due to other agencies and individuals
$
1,915
$
2,044
$
3,959
Total liabilities
$
1,915
$
2,044
$
3,959
78
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF CHANGES IN
ASSETS AND LIABILITIES
AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2003
79
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80
STATISTICAL SECTION
81
CITY OF COLLEYVILLE, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(UNAUDITED)
Corrummity
Fiscal General Development Fire and Leisure Municipal
Year Government and Engineering Rescue Services Maintenance Court
1994 $ 868,583 $ 754,853 $ 1,023,923 $ 431,081 $ 89,680 $ 60,497
1995 948,638 772,827 939,541 491,266 89,751 63,635
1996 1,354,952 788,195 1,380,287 597,757 91,831 84,018
1997 1,219,562 813,136 1,283,509 585,805 103,521 81,924
1998 1,674,400 928,845 1,446,339 756,356 121,628 90,060
1999 1,687,141 1,071,373 2,153,203 1,002,355 138,697 102,204
2000 2,032,011 1,229,405 2,307,966 1,045,624 132,520 105,375
2001 1,936,372 1,335,758 2,852,223 1,625,850 125,049 118,219
2002 1,925,674 1,226,877 2,783,968 1,665,598 182,814 150,056
2003 1,469,725 1,27 4,096 2,826,218 1,846,787 162,865 234,180
Note: Includes General, Special Revenue and Debt Service Funds.
82
TABLE 1
Streets and Debt Capital
Police Drainage Service Outlays Totals
$ 1,909,486 $ 1,038,865 $ 848,696 $ 113,006 $ 7,138,670
1,523,665 988,442 1,085,980 272,618 7,176,363
1,639,642 1,059,242 1,545,305 441,121 8,982,350
1,805,924 1,522,489 2,003,854 224,595 9,644,3] 9
] ,924,456 ],643,967 2,070,234 539,735 ] 1,196,020
3,438,183 1,383,782 2,269,543 202,154 13,448,635
2,597,915 1,618,551 3,075,557 20,171 14,165,095
4,122,612 1,408,092 3,189,490 208,396 ] 6,922,06]
6,711,870 1,239,090 3,210,409 603,955 19,700,311
3,331,861 1,092,703 3,004,769 2,058,650 17,301,854
83
CITY OF COLLEYVILLE, TEXAS
GENERAL GOVERNMENTAL REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(UNAUDITED)
Engineering,
Licenses Inspection
Fiscal Developer and Fines and and Other
Year Taxes Contributions Permits Forfeitures Charges
1994 $ 5,464,287 $ $ 417,473 $ 250,050 $ 151,627
1995 6,064,309 482 401,480 279,321 61,555
1996 6,880,942 8,447 417,941 371,183 89,756
1997 7,808,425 1,173 489,185 341,21 I 87,338
1998 8,689,822 14,745 596,502 406,292 252,649
1999 9,363,995 45,094 852,489 472,120 307,483
2000 10,612,927 1,161,363 574,769 533,665
2001 11,170,915 326,637 855,255 557,439 311,991
2002 12,296,418 334,502 913,426 534,590 464,515
2003 12,596,779 926,083 509,395 915,694
Note: Includes General, Special Revenue and Debt Service Funds.
84
Interest
Income Donations Miscellaneous Totals
$ 118,099 $ 201,648 $ 128,857 $ 6,732,041
281,731 212,038 201,743 7,502,659
378,426 194,554 212,046 8,553,295
403,773 141,250 285,732 9,558,087
460,713 360,488 257,411 11,038,622
502,075 274,928 304,375 12,122,559
882,718 173,934 560,068 14,499,444
900,734 184,607 375,878 14,683,456
436,596 206,358 554,564 15,740,969
243,635 251,754 96,857 15,540,197
85
TABLE 2
CITY OF COLLEYVILLE, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Current Percent Delinquent
Fiscal Total Tax of Levy Tax Total Tax
Year Tax LeV\' Collections (1) Collected Collections (1) Collections
1994 $ 3,501,386 $ 3,476,646 9929% $ 33,978 $ 3,510,624
1995 3,914,475 3,988,795 101.90% 40,856 4,029,651
1996 4,521,281 4,536,704 100.34% 44,926 4,581,630
1997 4,847,786 4,859,910 100.25% 68,438 4,928,348
1998 5,179,670 5,146,115 9935% 45,216 5,191,331
1999 5,534,817 5,479,798 99.01% 98,586 5,578,384
2000 6,008,914 5,994,435 99.76% 65,745 6,060,180
2001 6,664,042 6,614,200 99.25% 74,961 6,689,161
2002 7,399,976 7,344,042 99.24% 81,733 7,425,775
2003 8,233,543 8,251,059 100.21% 155,622 8,406,681
(l) Includes related penalties and interest.
Source: Tarrant County Appraisal District; Grapevine-Colleyville, Tax Assessor-Collector.
86
TABLE 3
Percent of Percent of
Total Tax Outstanding Delinquent
Collections Delinquent Taxes to
to Tax Levy Taxes Tax Levy
100.26% $ 87,698 2.50%
102.94% 93,461 2.39%
10133% 88,996 1.97%
10 1.66% 100,964 2.08%
100.23% 97,842 1.89%
100.79% 111,044 2.01%
100.85% 127,878 2.13%
100.38% 143,615 2.16%
100.35% 204,837 2.77%
102.10% 183,660 2.23%
87
TABLE 4
CITY OF COLLEYVILLE, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal Real Property Personal Property
Year Assessed Value (I) Assessed Value (I) Assessed Value (I)
1994 $ 1,082,012,034 $ 47,467,394 $ 1,129,479,428
1995 1,187,856,360 50,131,950 1,237,988,310
1996 1,283,285,015 56,748,974 1,340,033,989
1997 1,378,523,815 62,251,717 1,440,775,532
1998 1,426,690,278 64,255,538 1,490,945,816
1999 1,516,190,807 65,897,793 1,582,088,600
2000 1,654,879,062 74,802,432 1,729,681,494
2001 1,833,222,942 78,663,705 1,911,886,647
2002 2,043,344,918 80,447,537 2,123,792,455
2003 2,284,434,686 82,599,959 2,367,034,645
(l) Ratio of total assessed value to total estimated actual value equals 100%.
Source Tarrant County Appraisal District; Grapevine-Colleyville, Tax Assessor-Collector.
88
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89
CITY OF COLLEYVILLE, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(pER $100 OF ASSESSED VALUE)
LAST TEN F1SCAL YEARS
(UNAUDITED)
Grapevine-
Birdville Carroll Colleyville
Fiscal City of Independent Independent Independent
Year Colleyville School District School District School District
1994 $ 0.3100 $ I. 48990 $ 1.6295 $ 1.4191
1995 0.3263 1.51150 1.6295 1.4791
1996 0.3474 1.50150 1.6295 1.5350
1997 0.3474 1.50150 1.7400 1.5378
1998 0.3474 1.50050 1.7400 1.5378
1999 0.3474 1.53850 1.7400 1.5378
2000 0.3474 1.53250 1.7900 1.5523
2001 0.3474 1.5 6980 1.8850 1.5823
2002 0.3474 1.56980 1.9500 1.61679
2003 0.3474 1.61700 1.9350 1.65979
Source: Information furnished by various assessors.
90
Tarrant
Hurst Tarrant County
Eu1ess-Bedford County Junior
Independent Tarrant Hospital College
School District County District District
$ 1.5150 $ 0.271880 $ 0.242100 $ 0.046710
1.5350 0271870 0.244640 0.056510
1.5345 0.266600 0.239800 0.055500
1.6169 0.264836 0.234070 0.057720
1.6063 0.234836 0.234070 0.057690
1.6063 0.234836 0.234070 0.106410
1.6318 0.234836 0.234070 0.1 0641 0
1.6775 0.274785 0.234070 0.106410
1.6530 0.274785 0.234070 0.106410
1.7119 0.272500 0234000 0.139380
91
TABLE 5
CITY OF COLLEYVILLE, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO
ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(UNAUDITED)
Gross General
Fiscal Estimated Obligation
Year Population Assessed Value Bonded Debt
1994 16,000 $ 1,129,479,428 $ 11,300,000
1995 16,550 1,199,654,988 13,575,000
1996 16,750 1,301,462,527 15,400,000
1997 17,400 1,395,447,797 14,840,000
1998 18,100 1,490,945,816 14,255,000
1999 18,700 1,582,088,600 14,150,000
2000 19,200 1,729,681,494 13,490,000
2001 19,500 1,911,886,647 12,975,000
2002 19,850 2,123,792,455 15,315,000
2003 20,150 2,367,034,645 13,820,000
Source: Various departments within the City and Grapevine-Colleyville
Tax Assessor-Collector and Tarrant County Appraisal District.
92
TABLE 6
Percent of Net Net
Less Debt Net Bonded Debt to Bonded Debt
Service Funds Bonded Debt Assessed Value Per Capita
$ 388,003 $ 10,911,997 0.97% $ 682
464,366 13,110,634 1. 09% 492
548,756 14,851,244 1.14% 887
540,849 14,299,151 1.02% 822
614,437 13,640,563 0.91% 754
676,097 13,473,903 0.85% 721
756,106 12,733,894 0.74% 663
863,320 12,111,680 0.63% 612
962,636 14,352,364 0.68% 707
1,025,530 12,794,470 0.54% 635
93
TABLE 7
CITY OF COLLEYVILLE, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2003
(UNAUDITED)
Article Xl, Section 5 of the State of Texas Constitution states in part:
"... but no tax for any purpose shall ever be lawful for anyone year, which shall exceed two and one-half
percent of the taxable property of such city."
Article X, Section 3 of the Charter of IColleyville, Texas states:
"The maximum tax rate shall not exceed $1.50 on the one hundred dollars ($100) valuation of taxable
property with the City."
The tax rate at October 1, 2002, is $.3474 per $100 of assessed valuation at 100% of market value. The City
operates under a Home Rule Charter, which adopts the constitutional provision. The tax rate is 23% of the legal
limit.
94
TABLE 8
CITY OF COLLEYVILLE, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
LAST TEN FISCAL YEARS
(UNAUDITED)
Ratio of
Total Debt Service
Total General to General
Fiscal Interest Debt Government Government
Year Principal and Fees Service Expenditures (1) Expenditures
1994 $ 187,917 $ 743,924 $ 931,841 $ 7,138,670 $ 13.05
1995 245,000 734,770 979,770 7,206,491 13.60
1996 380,000 832,655 1,212,655 8,982,350 13.50
1997 560,000 905,592 1,465,592 9,644,319 15.20
1998 585,000 821,790 1,406,790 11,196,020 12.57
1999 605,000 783,494 1,388,494 13,448,635 10.29
2000 665,000 1,238,770 1,903,770 14,165,095 10.14
2001 1,040,000 818,282 1,858,282 16,922,061 6.96
2002 1,015,000 1,096,464 2,111 ,464 19,700,311 7.25
2003 1,495,000 721,390 2,216,390 17,301,854 12.80
(1) Includes General, Special Revenue and Debt Service Funds.
95
TABLE 9
CITY OF COLLEYVILLE, TEXAS
cOMPUT ATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2003
(UNAUDITED)
Debt Percent Overlapping
Jurisdiction Outstanding Overlapping Debt
City of Colleyville $ 40,938,036 (1) 100.00% $ 40,938,036
Birdville Independent School District 152,958,037 (1) 0.07% 107,071
Carroll Independent School District 164,487,671 (1) 0.43% 707,297
Grapevine-Colleyville Independent School District 242,715,813 (1) 22.94% 55,679,008
Hurst-Eules-Bedford Independent School District 235,925,613 (1) 130% 3,067,033
Keller Independent School District 400,520,390 (1) 0.05% 200,260
T arrant County 153,200,000 (1) 3.01% 4,611,320
Tarrant County Hospital District 2,410,000 (1) 3.01% 72,541
Tarrant County Jurrior College District 76,790,000 (1) 301% 2,311,379
Total Direct and Overlapping Debt $ 1,469,945,560 $ 107,693,944
Estimated Population as of January 1,2003 $ 20,150 (2)
Per Capita Overlapping General Obligation Tax Debt $ 4,039
(1) Source: Texas Municipal Reports
(2) Source: North Central Texas Council of Governments Research and Information Services.
96
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97
CITY OF COLLEYVILLE, TEXAS
REVENUE BOND AND CERTIFICATES OF OBLIGATION COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service
1994 $ 5,065,153 $ 4,031,526 $ 1,033,627
1995 5,369,721 3,827,749 1,541,972
1996 6,754,594 4,628,183 2,126,411
1997 6,759,061 3,757,793 3,001,268
1998 7,775,729 4,366,860 3,408,869
1999 8,321,893 4,196,771 4,125,122
2000 9,540,064 5,698,694 3,841,370
2001 8,477,716 5,793,366 2,684,350
2002 8,407,033 5,909,848 2,497,185
2003 9,544,931 6,723,108 2,821,823
(1) Includes interest income and other income, exclusive of capital contributions.
(2) Excludes depreciation and amortization.
98
TABLE 10
Debt Service Requirements
Principal Interest Total Coverage
$ 214,000 $ 291,929 $ 505,929 2.04
309,000 374,789 683,789 2.26
280,000 398,420 678,420 3.13
420,000 471,594 891,594 3.37
410,000 486,163 896,163 3.80
510,000 576,767 1,086,767 3.79
541,000 556,761 1,097,761 3.49
566,000 515,003 1,081,003 2.48
597,000 485,984 1,082,984 2.30
762,000 601,560 1,363,560 2.07
99
CITY OF COLLEYVILLE, TEXAS
TABLE 11
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal
Year
Population
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Source: North Central Texas Council of Governments.
100
16,000
16,550
16,750
17,400
18,100
18,700
19,200
19,500
19,850
20,150
TABLE 12
CITY OF COLLEYVILLE, TEXAS
PROPERTY VALUE, CONSTRUCTION
LAST TEN FISCAL YEARS
(UNAUDITED)
Commercial Residential
Fiscal Property Construction (2) Construction (2)
Year Value (1) Units Value Units Value
1994 $ 1,129,479,428 34 $ 9,502,000 235 $ 58,750,000
1995 1,237,988,310 11 3,625,000 169 42,250,000
1996 1,340,033,989 17 6,3 09,200 224 56,000,000
1997 1,440,775,532 17 5,328,000 209 50,337,000
1998 1,490,945,816 46 6,430,727 220 56,650,000
1999 1,582,088,600 20 7,946,222 194 50,806,000
2000 1,729,681,494 11 5,470,600 246 64,791,553
2001 1,911,886,647 6 6,449,762 183 55,086,037
2002 2,123,792,455 14 33,895,087 132 50,173,140
2003 2,367,034,645 18 14,244,049 136 51,989,544
(1) Tarrant County Appraisal District
(2) City records
101
TABLE 13
CITY OF COLLEYVILLE, TEXAS
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2003
(UNAUDITED)
Percentage
2003 of Total
Assessed Assessed
Valuation Valuation
Oncor ElectriclTXU Gas $ 17,636,353 0.75%
Albertsons, Inc. 16,611,570 0.70%
Herman Smith & Co, LTD. 9,420,769 0.40%
Colleyville Plaza 6,700,000 0.28%
RH -One LP 5,999,935 0.25%
Paul & Sheila Johnson 4,000,000 0.17%
Goodacre L TD Partnership 3,880,617 0.16%
Southwestern Bell 3,858,383 0.16%
Paul and Rebecca Kramer 3,842,326 0.16%
Village Management, LTD 3,719,827 0.16%
Total $ 75,669,780 3.20%
102
TABLE 14
CITY OF COLLEYVILLE, TEXAS
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 2003
(UNAUDITED)
Date of Incorporation
January 10, 1956
Date of City Charter Adoplion
January 15, 1977
Form of Government
Council - Manager
Area - square miles 13 Municipal water system:
Number of customers 7,781
Miles of streels 147 Annual gallons of water
pumped in millions 1,942
Stored capacity in millions 4.9
Miles of sanitary sewers 147 Miles of water mains 160
Number of fire hydrants 958
Building Permits:
Permits issued 154 Number of street lights 745
Value in millions $ 66,233
Fire Protection: City Employees:
Number of stations 3 Fulltime 161
N umber of firefighters 30 Part-time 8
Police Protection: Registered voters 15,383
Number of employees 40
Number of uniformed officers 30 Votes in last Council election 2,997
Recreation: Population (City's estimate) 20,150
Parks - number of acres 185
Number of playgrounds 5
103