HomeMy WebLinkAboutComprehensive Annual Financial Report (CAFR)-Audit Records-9/30/2005
CITY OF
COLLEYVILLE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2005
CITY OF COLLEYVILLE, TEXAS
T ABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30, 2005
Page
Number
INTRODUCTORY SECTION
Letter 0 f Transmittal ........................................................................................................... 3 - 6
Organizational Chart........................................................................................................... 7
Certificate of Achievement................................................................................................. 8
Princ i pal Official s ............................................................................................................... 9
FINANCIAL SECTION
Independent Auditors' Report.............................................................................................
13 - 14
Management's Discussion and Analysis............................................................................
1 7 - 25
Basic Financial Statements
Statement of Net Assets...................................................................................................
28 - 29
S ta tement 0 fActi viti e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30 - 31
Balance Sheet - Governmental Funds.............................................................................
32 - 33
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds.........................................................................
34 - 35
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balance of Governmental Funds to the
S ta tement 0 fActi viti e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual- General Fund...................................................
37
( continued)
CITY OF COLLEYVILLE, TEXAS
T ABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30, 2005
FINANCIAL SECTION (Continued)
Basic Financial Statements (Continued)
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 F iduciary Net Assets...................................................................................
Notes to Basic Financial Statements................................................................................
Nonmajor Governmental Funds
Combining Balance Sheet................................................................................................
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances............................................................................................
Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Debt Service Fund...........................................
Agency Funds
Page
Number
38
39
40 - 41
42
43 - 68
72 - 75
76 - 79
80
Combining Statement of Fiduciary Net Assets................................................................ 82
Combining Statement of Changes in Assets and Liabilities............................................ 83
( continued)
CITY OF COLLEYVILLE, TEXAS
T ABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30, 2005
STATISTICAL SECTION (Unaudited)
General Governmental Expenditures by Function..................................
General Governmental 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 Governmental Expenditures ...............
Computation of Direct and Overlapping Debt........................................
Revenue Bond and Certificates of Obligation Coverage ........................
Demographic Statistics...........................................................................
Property Value, Construction..................................................................
Princ i pal T axpay ers ................................................................................
Miscellaneous Statistical Data................................................................
Exhibit/Table
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Page
Number
86 - 87
88 - 89
90 - 91
92
94 - 95
96 - 97
98
99
100
102 - 103
104
105
106
107
INTRODUCTORY SECTION
1
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2
city OF
e
Texas
February 7, 2006
To the Citizens of the City of Colley vii Ie:
The Comprehensive Annual Financial Report of the City of Colley vii Ie (the "City") for the fiscal year ended
September 30, 2005, is hereby submitted. Responsibility for both the accuracy of the 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 of the various
funds of the 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 ofintemal
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 system 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 September 30,
2005, are free of material misstatement. The independent audit involved examining on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting principles used
and significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an
unqualified opinion that the City of Colley vii Ie's financial statements for fiscal year ended September 30,
2005, are presented in conformity with generally accepted accounting principles (GAAP).
The Comprehensive 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 with 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.
3
100 MAIN STREET COLLEYVILLE, TEXAS 76034 (817) 503-1000
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 governing 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 of the 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 of Inclusion
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 2005, as did
commercial development. During the fiscal year, the City issued 244 residential building permits and the
average square footage of a residence was over four thousand square feet. Also, approximately 16,000
square feet of new commercial development was completed or in process during FY 2005.
For the Future. In December 2005, construction began on an IMAX theatre in Town Center which will
have six screens including the IMAX screen, and two private viewing rooms. Additionally, the Village at
Colleyville has partnered with a nationally recognized development company, who plan to complete the
build-out of the mixed-use development in the next two years.
Long-term Financial Planning. As a part of the fiscal year 2005 budget process, the Mayor and Council
and City Staff embarked upon developing a multi-year capital improvements program. In February 2005,
voters approved the issuance of $4,575,000 for fire station facilities and an outdoor warning system. The
process will continue in fiscal year 2006, as the Council will appoint a citizen committee to review street
infrastructure needs and financing opportunities.
4
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 government investment pool (LOGIC). The
average yield on investments for the year was approximately 2.42%. 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 commensurate 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 Distinction from the Government Treasurer's Organization of Texas for its investment policy.
Risk Management. Insurance coverage for property, liability and workers' compensation is provided by the
Texas Municipal League Intergovernmental 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 of loss 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.
AWARDS AND ACKNOWLEDGEMENTS
Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of Colleyville for its
comprehensive annual financial report for the fiscal year ended September 30, 2004. This was the sixteenth
consecutive year the City has received this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive annual
financial report. This report must satisfy both generally accepted accounting principles and applicable legal
requirements.
5
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, 2004. 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 of this 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,
lYu~~
Terry Leake
Finance Director
6
CITY OF COLLEYVILLE
ORGANIZA TIONAL CHART
FISCAL YEAR 2005
I I I I
I I I I
I I
I I I
I
I
7
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Colleyville,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
govermnent wits and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and fmancial reporting.
~~x~
President
~/~
Executive Director
8
CITY OF COLLEYVILLE, TEXAS
HOME RULE, COUNCIL - MANAGER
FORM OF GOVERNMENT
CITY OFFICIALS
YEAR ENDED SEPTEMBER 30, 2005
David Kelly
Mayor
George Boll
Councilmember, Place 1
Tony Licata
Councilmember, Place 2
Rich Hendler
Councilmember, Place 3
Jon Ayers
Mayor Pro Tem and
Councilmember, Place 4
Tom Hart
Councilmember, Place 5
William Lindley
City Manager
Terry Leake
Finance Director
9
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10
FINANCIAL SECTION
11
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12
PH~
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 governmental 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, 2005, which collectively comprise the City's basic financial statements as listed in the table
of contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express opinions on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business-type activities, the aggregate discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of
Colleyville, Texas, as of September 30, 2005, and the respective changes in financial position and the cash
flows, where applicable, and the respective budgetary comparison for the General Fund, thereof for the
year then ended in conformity with accounting principles generally accepted in the United States of
America.
13
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 . HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460 . ALBUQUERQUE, NM (505) 266-5904
The management's discussion and analysis on pages 1 7 through 25 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 measurement and presentation of the
required 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 statements 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.
1) ~ \l'no)L.L.f.
r ct. -\f ~ / \S 1uoV\lY\ 1'1 \.AA,
December 2, 2005
14
MANAGEMENT'S
DISCUSSION AND ANALYSIS
15
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16
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, 2005. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished 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 30,2005, by
$122,785,434 (net assets). Of this amount, $35,503,612 (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 $5,928,859.
. As of the close of the current fiscal year, the City of Colleyville's governmental funds
reported combined ending fund balances of $20,500,612. Of this amount, $17,541,029 is
unreserved fund balance available for use within the City's fund designation and fiscal
policies.
. As of September 30, 2005, unreserved, undesignated fund balance for the General Fund
was $6,850,731 or 46% 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) government-
wide financial statements, (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 government-wide financial statements, 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.
17
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 some items that will only result in cash flows in the future fiscal periods (e.g., uncollected
taxes and earned but unused compensated absences).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental 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 governmental activities of the City include General Government, 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 - governmental funds and
proprietary funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-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 government's near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental funds balance sheet and the governmental fund statements of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
Beginning on page 28 of this report, information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental 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
governmental 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.
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 government-wide financial
statements. The City uses Enterprise Funds to account for the Water and Wastewater and Drainage
Utility Funds.
18
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 34 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 government-wide and fund financial statements. The notes to
the financial statements can be found on pages 43 - 68 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 page 72 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 $122,785,434 as of September 30,
2005.
The largest portion of the City's net assets ($85,712,121) 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.
CITY OF COLLEYVILLE'S NET ASSETS
Governmental Activities Business-type Activities Totals
2005 2004 2005 2004 2005 2004
Current and other assets $ 21,561,854 $ 18,536,560 $ 18,906,388 $ 17,336,224 $ 40,468,242 $ 35,872,784
Capital assets 87,874,144 86,386,646 35,543,442 35,391,552 123,417,586 121,778,198
Total assets 109,435,998 104,923,206 54,449,830 52,727,776 163,885,828 157,650,982
Other liabilities 2,699,448 3,078,676 1,806,789 1,905,217 4,506,237 4,983,893
Long-term liabilities 25,823,288 26,872,583 10,770,869 10,727,613 36,594,157 37,600,196
Total liabilities 28,522,736 29,951,259 12,577,658 12,632,830 41,100,394 42,584,089
Net assets:
Invested in capital assets,
net of related debt 60,884,756 55,965,990 24,827,365 23,957,432 85,712,121 79,923,422
Restricted 896,130 1,040,403 670,571 668,239 1,566,701 1,708,642
Unrestricted 19,132,376 15,646,259 16,374,236 15,470,275 35,506,612 31,116,534
Total net assets $ 80,913,262 $ 72,652,652 $ 41,872,172 $ 40,095,946 $ 122,785,434 $ 112,748,598
19
A portion of the City's net assets ($1,566,701) represents resources that are subject to external
restriction on how they may be used. The remaining balance ($35,506,612) 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 September 30, 2005, the City has positive balances in all three categories of net assets, both for the
City as a whole, as well as for its governmental 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 September 30, 2005. Governmental activities increased the City of Colleyville's net
assets by $4,918,766, accounting for 85% of the total growth in net assets. Business-type activities
increased the City's net assets by $869,933, accounting for 15% of the total growth in net assets.
CITY OF COLLEYVILLE'S CHANGES IN NET ASSETS
Governmental Activities Business-type Activities Totals
2005 2004 2005 2004 2005 2003
Revenues:
Program revenues:
Charges for services $ 2,968,358 $ 3,315,199 $ 10,531,934 $ 9,602,855 $ 13,500,292 $ 12,918,054
Operating grants
and contributions 523,704 619,459 523,704 619,459
Capital grants
and contributions 3,283,774 3,857,202 844,256 1,412,990 4,128,030 5,270,192
General revenues:
Ad valorem taxes 8,938,888 8,534,388 8,938,888 8,534,388
Sales taxes 3,801,369 3,381,634 3,801,369 3,381,634
Franchise taxes 1,477,749 1,458,079 1,477,749 1,458,079
Other taxes 53,974 37,296 53,974 37,296
Investment earnings 443,570 217,316 377,064 162,645 820,634 379,961
Miscellaneous 153,947 53,538 153,947 53,538
Total revenues 21,645,333 21,474,111 11,753,254 11,178,490 33,398,587 32,652,601
Expenses:
General government 2,245,964 2,542,016 2,245,964 2,542,016
Community development
and engineering 1,164,345 1,281,429 1,164,345 1,281,429
Fire and rescue 3,325,103 3,144,814 3,325,103 3,144,814
Leisure services 2,923,958 2,953,528 2,923,958 2,953,528
Maintenance 364,434 364,256 364,434 364,256
Municipal court 238,874 250,551 238,874 250,551
Police 3,533,083 3,295,263 3,533,083 3,295,263
Streets and drainage 2,970,475 2,562,499 2,970,475 2,562,499
Water and wastewater 8,600,654 7,444,264 8,600,654 7,444,264
Drainage 433,573 395,450 433,573 395,450
Interest on
long-term debt 1,190,857 1,290,825 478,408 528,569 1,669,265 1,819,394
Total expenses 17,957,093 17,685,181 9,512,635 8,368,283 27,469,728 26,053,464
Increases in net assets
before transfers 3,688,240 3,788,930 2,240,619 2,810,207 5,928,859 6,599,137
Transfers 464,393 473,366 464,393) 473,366)
Change in net assets 4,152,633 4,262,296 1,776,226 2,336,841 5,928,859 6,599,137
Net assets, beginning 76,760,629 72,652,652 40,095,946 37,759,105 116,856,575 110,411,757
Prior period adjustments 154,319) 154,319)
Net assets, ending $ 80,913,262 $ 76,760,629 $ 41,872,172 $ 40,095,946 $ 122,785,434 $ 116,856,575
20
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 measure of a government'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 governmental funds reported combined
ending fund balances of $20,500,612. Approximately 85% of this total amount ($17,541,029)
constitutes unreserved fund balance. The remainder of the fund balance ($2,959,583) 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 32 of this report for a more
detailed presentation of governmental fund balances.
In the General Fund, the City originally budgeted for an increase in the fund balance of $383. 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 $914,812, as a planned reduction of
excess fund balance to fund "pay-as-you-go" capital expenditures. The actual increase to fund balance
for the General Fund was $83,139 for fiscal year 2005.
Proprietary funds - The City's proprietary fund statements beginning on page 38 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
($14,796,925), and Drainage Utility ($1,577,311). These funds experienced increases in total net assets
during 2005 as follows: Water and Wastewater ($689,387), and Drainage Utility ($214,574).
Governmental Activities - The major increase in revenues comes from the tax category. The property
tax base increased over $72 million, due to construction of new residences, businesses, and revaluation
of property. The current year tax collection rate is over 99% of the levy. 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 up due to higher interest rates.
Enhancements to the fiscal year 2005 budget include a renewed focus on street maintenance with a
budget of $445,000 for resurfacing and funding for an asphalt patch truck and pneumatic roller. The
increase in the fire and police areas relate to the acquisition of new side arms for the police and fire
hydrant modification for quick hose coupling and fire incident reporting software. Lighting was added
to the football practice fields for the first full year of library operations, three part-time positions were
added. The Debt Service Fund's expenditures decreased due to larger principal payments on existing
debt.
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 $9,856,889 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 2.39 for the fiscal year. The increase in the Drainage Utility fund's revenues was
due to new residential and commercial construction.
21
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 appropriations
approved by the City Council. Overall, these changes resulted in an increase from the original budget of
$13,920,075. The increase was for a burying power lines along John McCain Road and Pleasant Run
Park, drainage work in the Tara Subdivision, publication of a history book in conjunction with the
Colleyville 50th anniversary in 2006, and acquisition of various capital equipment.
The General Fund's overall budgeted revenue increased by $440,020. The major increase was due to
$463,653 in greater than anticipated sales tax collections and strong current and delinquent tax
collections. This increase was partially offset by a $43,755 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 37 of this report for a detailed presentation of the actual General Fund operations
compared to both the original and final budget for fiscal year 2005.
CAPIT AL ASSETS
The City of Colleyville's investment in capital assets for its governmental and business-type activities as
of September 30,2005, amounts to $123,417,586 (net of accumulated depreciation). This investment in
capital assets includes land, building, equipment, improvements other than buildings, infrastructure and
construction work in progress. Major capital asset events occurring during the current fiscal year
included the following:
. Capitalized approximately $.2 million in drainage improvements and contributions;
. Capitalized approximately $1.9 million in street improvements and contributions;
. Capitalized approximately $1.0 million on various water and wastewater system
projects and contributions; and
. Completed construction of the new City Hall/Library complex, Justice Center and
Reagan Park practice ball fields.
22
CITY OF COLLEYVILLE'S CAPITAL ASSETS AT YEAR-END
Governmental Activities Business-type Activities Totals
2005 2004 2005 2004 2005 2004
Land $ 7,292,291 $ 6,360,180 $ 313,057 $ 313,057 $ 7,605,348 $ 6,673,237
Buildings and improvements 31,623,092 12,782,014 53,922 53,922 31,677,014 12,835,936
Equipment 5,943,474 4,818,713 1,099,220 969,344 7,042,694 5,788,057
Infrastructure/water
distribution sewer collection 58,555,434 56,674,159 50,519,782 49,305,050 109,075,216 105,979,209
Construction in
progress 4,884,985 23,668,324 1,050,582 827,548 5,935,567 24,495,872
Less: accumulated
depreciation 20,425,132) 17,916,744) 17,493,121) 16,077,369) 37,918,253) 33,994,113)
Total capital assets $ 87,874,144 $ 86,386,646 $ 35,543,442 $ 35,391,552 $ 123,417,586 $ 121,778,198
Additional information on the City's capital assets can be found in Note 4, pages 57 - 59 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$38,034,468. Of this amount, $11,995,000 represents bonded debt backed by
the full faith and credit of the government, $26,015,554 represents bonds secured by sales tax revenues,
$8,160,000 represents bonds secured solely by water and sewer revenues, and $2,515,000 represents
bonds secured solely by drainage utility system revenues. The City's capitalized lease obligations of
$108,438 pertain to the purchase of an asphalt distributor, mini-excavator, and skid steer loader.
OUTSTANDING DEBT AT YEAR-END
BONDS, NOTES AND CAPITALIZED LEASE OBLIGATIONS PAYABLE
Governmental Activities Business-type Activities Totals
2005 2004 2005 2004 2005 2004
General obligation bonds
and certificates of
obligation $ 11,995,000 $ 12,925,000 $ $ $ 11,995,000 $ 12,925,000
Sales tax revenue bonds 15,015,554 13,377,722 10,675,000 11,595,000
Revenue bonds payable
Notes payable 28,308 28,308
Capitalized lease
obligations 69,187 41,077 110,264
Accreted interest 108,438 108,438
$ 27,079,741 $ 26,439,468 $ 10,716,077 $ 11,595,000 $ 37,795,818 $ 38,034,468
23
During the fiscal year, the City issued $9,570,000 in Sales Tax Revenue and Refunding Bonds. The
refunding resulted in an economic gain of$1,032,110.
The City's General Obligation, Tax and Water Works and Sewer System Certificates of Obligation, and
Water Works and Sewer System 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 60 - 65 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 2006
is based on projected revenue growth of 6.8% compared to the fiscal year 2006 budget. Taxes account
for the majority of the increase. Property taxes, which are about 51 % of General Fund revenues, are
budgeted at a 2.2% increase compared to the 2006 budget. This reflects the net effect of valuation
increases and new construction. Approximately 13% of General Fund revenues are sales taxes, and
sales taxes are budgeted at a 12% increase over the fiscal year 2005 budget. The 2006 budget includes a
planned $200,000 utilization of surplus fund balance to fund one-time capital expenditures.
The 2006 budget includes for the General Fund and other funds a 5% merit salary increase for all classes
of employees based upon the employee's performance. The General Fund has budgeted add $95,000 to
the Street department budget for the street overlay budget bringing the total budgeted for that program to
$650,000. Also included in the General Fund budget is funding for three firefighter positions and a
Police lieutenant position for an increased emphasis on public safety.
There is a rate increase in the 2006 budget both the Water and Wastewater Fund and the Drainage
Utility Fund. The rate increase of $.14 and $.06 per thousand gallons for water and wastewater,
respectively, will be used to fund an estimated $5 million bond issue to relocate utility lines in
conjunction with the planned expansion of Colleyville Boulevard. Also included in the Water and
Wastewater Fund is $55,794 for the funding of a Vulnerability/ Emergency Operations Manager to aid
the City in meeting the requirements of the Bioterrorism Act for community water systems. The $1 per
month increase in the residential Drainage Utility Fund will be used to fund two additional drainage
crew employees.
24
REQUESTS 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 (81 7) 503 -1 015.
25
THIS PAGE INTENTIONALLY LEFT BLANK
26
BASIC
FINANCIAL STATEMENTS
27
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2005
Primary Government Component Unit
Tax
Increment
Governmental Business-type Financing
Activities Activities Total District
ASSETS
Cash and cash equivalents $ 4,172,674 $ 5,661,933 $ 9,834,607 $ 2,678,674
Investments 16,203,488 11,027,972 27,231,460 198,605
Receivables (net of allowances for
uncollectibles of $158,696)
Accounts 45,526 1,744,120 1,789,646
Property taxes 149,845 149,845
Due from other governments 781,900 781,900
Other assets 237,301 237,301
Inventories 154,333 154,333
Deferred charges 90,353 90,353
Accrued interest 118,068 80,729 198,797 269
Capital assets:
Land 7,292,291 313,057 7,605,348
Buildings and improvements 31,623,092 53,922 31,677,014
Equipment 5,943,474 1,099,220 7,042,694
Infrastructure/water distribution!
sewer collection 58,555,434 50,519,782 109,075,216
Construction in progress 4,884,985 1,050,582 5,935,567
Less: accumulated depreciation 20,425,132) 17,493,121) 37,918,253)
Total capital assets 87,874,144 35,543,442 123,417,586
Total assets 109,435,998 54,449,830 163,885,828 2,877,548
( continued)
28
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET ASSETS
(Continued)
SEPTEMBER 30, 2005
Primary Government Component Unit
Tax
Increment
Governmental Business-type Financing
Activities Activities Total District
LIABILITIES
Accounts payable $ 352,062 $ 1,295,088 $ 1,647,150 $
Accrued liabilities 142,524 23,036 165,560
Deferred revenue 9,788
Due to other governments 336
Accrued interest payable 147,798 102,480 250,278 56,065
Advances from developers 235,550 9,213 244,763
Escrow funds 1,168 1,168
Customer deposits 52,021 375,804 427,825
Noncurrent liabilities:
Due within one year 1,759,369 970,023 2,729,392 1,120,000
Due in more than one year 25,823,288 9,800,846 35,624,134 8,315,000
Total liabilities 28,522,736 12,577,658 41,100,394 9,491,065
NET ASSETS
Invested in capital assets,
net of related debt 60,884,756 24,827,365 85,712,121
Restricted for:
Court security and technology 54,310 54,310
Debt service 841,820 670,571 1,512,391
Unrestricted 19,132,376 16,374,236 35,506,612 6,613,517)
Total net assets $ 80,913,262 $ 41,872,172 $ 122,785,434 $( 6,613,517)
The notes to the financial statements are an integral part of this statement.
29
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Functions/Pro~rams
Primary Government:
Governmental activities:
General government
Community development and engineering
F ire 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
Total business-type activities
Total primary government
Component unit:
Tax increment financing
Total component unit
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 2,245,964 $ 6,000 $ 13,950 $ 37,000
1,164,345 1,515,052
3,325,103 136,498 130,534
2,923,958 386,658 297,159 357,715
364,434
238,874 492,805
3,533,083 95,234 82,061 77,330
2,970,475 336,111 2,811,729
1,190,857
17,957,093 2,968,358 523,704 3,283,774
8,962,630 9,856,889 844,256
550,005 675,045
9,512,635 10,531,934 844,256
$ 27,469,728 $ 13,500,292 $ 523,704 $ 4,128,030
845,175
$ 845,175 $ $ $
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
TIF tax
Sales taxes
Franchise taxes
Other taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues, special items, and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The notes to the financial statements are an integral part of this statement.
30
Net (Expense) Revenue and
Changes in Net Assets
Component Unit
Governmental
Activities
$( 2,189,014)
350,707
3,058,071)
1,882,426)
364,434)
253,931
3,278,458)
177,365
1,190,857)
11,181,257)
11,181,257)
Primary Government
B usiness- type
Activities
$
1,738,515
125,040
1,863,555
1,863,555
Total
Tax Increment
Financing District
$( 2,189,014)
350,707
3,058,071)
1,882,426)
364,434)
253,931
3,278,458)
177,365
1,190,857)
11,181,257)
$
1,738,515
125,040
1,863,555
9,317,702)
845,175)
845,175)
31
CITY OF COLLEYVILLE, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
Major Funds
Debt Capital
General Service Proj ect
ASSETS
Cash and cash equivalents $ 501,603 $ 465,159 $ 1,195,199
Investments 6,313,957 521,081 3,817,055
Receivables (net of allowances for uncollectibles)
Accounts 45,526
Property taxes 121,668 28,177
Due from other governments 387,232 343
Accrued interest 66,468 3,035 15,928
Total assets $ 7,436,454 $ 1,017,795 $ 5,028,182
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 230,623 110,799
Accrued liabilities 142,524
Deferred revenue 160,219 28,177
Due to other governments 336
Advances from developers 204,927
Customer deposits 52,021
Total liabilities 585,723 28,177 315,726
Fund balances:
Reserved for:
Court security/technology
Debt service 989,618
Developer fees 1,915,655
Unreserved, reported in:
General fund 6,850,731
Special revenue funds
Capital proj ects funds 2,796,801
Total fund balances 6,850,731 989,618 4,712,456
Total liabilities and fund balances $ 7,436,454 $ 1,017,795 $ 5,028,182
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.
32
Other Total
Governmental Governmental
Funds Funds
$ 2,010,713 $ 4,172,674
5,551,395 16,203,488
45,526
149,845
394,325 781,900
32,637 118,068
$ 7,989,070 $ 21,471,501
10,640 352,062
142,524
188,396
336
30,623 235,550
52,021
41,263 970,889
54,310 54,310
989,618
1,915,655
6,850,731
3,251,861 3,251,861
4,641,636 7,438,437
7,947,807 20,500,612
$ 7,989,070
87,874,144
178,608
27,640,102)
$ 80,913,262
33
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Major Funds
Debt Capital
General Service Proi ect
REVENUES
Taxes $ 10,982,239 $ 1,462,041 $
Intergovernmental
Licenses and permits 1,359,329
Fines and forfeitures 482,245
Charges for services 808,461
Capital improvement fees 366,111
Donations
Investment earnings 193,412 21,966 100,429
Developer contributions 274,996
Other 70,399 15,410
Total revenues 13,896,085 1,499,417 741,536
EXPENDITURES
Current:
General government 1,822,875 22,173
Community development and engineering 1,160,232
F ire and rescue 3,061,449
Leisure services 2,134,827 49,166
Maintenance 357,983
Municipal court 236,152
Police 3,216,345
Streets and drainage 1,656,187
Debt service:
Principal retirement 25,000 1,338,308
Interest and fiscal charges 805,788
Issuance costs
Capital outlay 127,323 1,113,329
Total expenditures 13,798,373 2,144,096 1,184,668
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 97,712 644,679) 443,132)
OTHER FINANCING SOURCES (USES)
Transfers in 464,393 638,408 568,569
Transfers out 573,153)
Proceeds from bond issue
Proceeds from capital lease 94,187
Payment to bond escrow agent
Total other financing sources and uses 14,573) 638,408 568,569
NET CHANGE IN FUND BALANCES 83,139 6,271) 125,437
FUND BALANCES, BEGINNING 6,767,592 995,889 4,587,019
FUND BALANCES, ENDING $ 6,850,731 $ 989,618 $ 4,712,456
The notes to the financial statements are an integral part of this statement.
34
Other Total
Governmental Governmental
Funds Funds
$ 1,832,730 $ 14,277,010
167,293 167,293
1,359,329
30,884 513,129
131,751 940,212
366,111
502,789 502,789
127,763 443,570
274,996
98,093 183,902
2,891,303 19,028,341
28,043 1,873,091
1,160,232
105,392 3,166,841
204,768 2,388,761
357,983
2,093 238,245
76,975 3,293,320
1,656,187
210,000 1,573,308
393,725 1,199,513
90,353 90,353
219,288 1,459,940
1,330,637 18,457,774
1,560,666 570,567
4,584 1,675,954
638,408) 1,211,561)
9,570,000 9,570,000
94,187
7,450,606) 7,450,606)
1,485,570 2,677,974
3,046,236 3,248,541
4,901,571 17,252,071
$ 7,947,807 $ 20,500,612
35
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, 2005
Amounts reported for governmental activities in the Statement of Activities (pages 30 - 31)
are different because:
Net change in fund balances - total governmental funds (page 34 - 35)
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.
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds.
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 30 - 31)
The notes to the financial statements are an integral part of this statement.
36
$ 3,248,541
1,565,615
2,929
549,920)
114,532)
$ 4,152,633
CITY OF COLLEYVILLE, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (N egative)
REVENUES
Taxes $ 10,518,586 $ 10,518,586 $ 10,982,239 $ 463,653
License and permits 1,123,208 1,123,208 1,359,329 236,121
Fines and forfeitures 526,000 526,000 482,245 43,755)
Charges for services 966,422 966,422 808,461 157,961)
Investment earnings 170,000 170,000 193,412 23,412
Other 141,242 141,242 70,399 70,843)
Total revenues 13,445,458 13,445,458 13,896,085 450,627
EXPENDITURES
Current:
General government 1,918,879 2,056,879 1,822,875 234,004
Community development and engineering 1,228,586 1,228,586 1,160,232 68,354
Fire and rescue 3,061,688 3,081,688 3,061,449 20,239
Leisure services 2,383,465 2,428,465 2,134,827 293,638
Maintenance 421,826 421,826 357,983 63,843
Municipal court 241,788 241,788 236,152 5,636
Police 3,159,577 3,216,772 3,216,345 427
Streets and drainage 1,458,526 2,113,526 1,656,187 457,339
Debt service:
Principal retirement 25,000 25,000)
Capital outlay 45,740 45,740 127,323 81,583)
Total expenditures 13,920,075 14,835,270 13,798,373 1,036,897
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 474,617) 1,389,812) 97,712 1,487,524
OTHER FINANCING SOURCES (USES)
Transfers in 475,000 475,000 464,393 10,607)
Transfers out 573,153) 573,153)
Proceeds from capital lease 94,187 94,187
Total other financing sources and uses 475,000 475,000 14,573) 489,573)
NET CHANGE IN FUND BALANCE 383 914,812) 83,139 997,951
FUND BALANCE, BEGINNING 6,767,592 6,767,592 6,767,592
FUND BALANCE, ENDING $ 6,767,975 $ 5,852,780 $ 6,850,731 $ 997,951
The notes to the financial statements are an integral part of this statement.
37
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2005
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
ASSETS
Current assets:
Cash and cash equivalents $ 4,782,142 $ 879,791 $ 5,661,933
Investments 10,388,780 639,192 11,027,972
Accounts receivable, net of allowances 1,665,250 78,870 1,744,120
Other assets 237,301 237,301
Inventories 154,333 154,333
Total current assets 17,227,806 1,597,853 18,825,659
Noncurrent assets
Accrued interest receivable 77,449 3,280 80,729
Capital assets:
Land 313,057 313,057
Buildings 53,922 53,922
Equipment 819,321 279,899 1,099,220
Water distribution 47,787,263 2,732,519 50,519,782
Construction in progress 560,530 490,052 1,050,582
Less: accumulated depreciation 16,985,562) 507,559) 17,493,121)
Total capital assets 32,548,531 2,994,911 35,543,442
Total noncurrent assets 32,625,980 2,998,191 35,624,171
Total assets 49,853,786 4,596,044 54,449,830
LIABILITIES
Current liabilities:
Accounts payable 1,295,088 1,295,088
Accrued liabilities 19,974 3,062 23,036
Accrued interest payable 88,068 14,412 102,480
Advances from developers 9,213 9,213
Escrow funds 1,168 1,168
Customer deposits 375,804 375,804
Compensated absences 9,687 1,193 10,880
Capital lease 14,143 14,143
Revenue bonds payable 795,000 150,000 945,000
Total current liabilities 2,594,002 182,810 2,776,812
Long-term liabilities:
Compensated absences 38,757 5,155 43,912
Capital lease 26,934 26,934
Revenue bonds payable 7,365,000 2,365,000 9,730,000
Total long-term liabilities 7,403,757 2,397,089 9,800,846
T otalliabilities 9,997,759 2,579,899 12,577,658
NET ASSETS
Invested in capital assets, net of related debt 24,388,531 438,834 24,827,365
Restricted for debt service 670,571 670,571
Unrestricted 14,796,925 1,577,311 16,374,236
Total net assets $ 39,856,027 $ 2,016,145 $ 41,872,172
The notes to the financial statements are an integral part of this statement.
38
CITY OF CITY OF COLLEYVILLE, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
OPERATING REVENUES
Metered water sales $ 6,935,045 $ $ 6,935,045
Wastewater services charges 1,937,571 1,937,571
Drainage service charges 663,925 663,925
Other charges and services 969,826 11,120 980,946
Miscellaneous 14,447 14,447
Total operating revenues 9,856,889 675,045 10,531,934
OPERATING EXPENSES
Personnel services 1,496,754 217,963 1,714,717
Maintenance and contractual services 5,644,363 87,376 5,731,739
Materials and supplies 110,881 32,971 143,852
Depreciation and amortization 1,348,656 95,263 1,443,919
Total operating expenses 8,600,654 433,573 9,034,227
OPERATING INCOME 1,256,235 241,472 1,497,707
NONOPERATING REVENUES (EXPENSES)
Investment earnings 341,844 35,220 377,064
Interest expense and fiscal charges 361,976) 116,432) 478,408)
Total nonoperating revenues (expenses) 20,132) 81 ,212) 101,344)
INCOME BEFORE CONTRIBUTIONS
AND TRANSFERS 1,236,103 160,260 1,396,363
CAPITAL CONTRIBUTIONS 844,256 844,256
TRANSFERS OUT 464,393) 464,393)
CHANGE IN NET ASSETS 1,615,966 160,260 1,776,226
TOTAL NET ASSETS, BEGINNING 38,240,061 1,855,885 40,095,946
TOTAL NET ASSETS, ENDING $ 39,856,027 $ 2,016,145 $ 41,872,172
The notes to the financial statements are an integral part of this statement.
39
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 9,462,523 $ 675,045 $ 10,137,568
Cash paid to suppliers for goods and services ( 4,951,273) ( 155,710) ( 5,106,983)
Cash paid to employees for services ( 1,490,312) ( 217,963) ( 1,708,275)
Net cash provided by operating activities 3,020,938 301,372 3,322,310
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out 464,393) 464,393)
Net cash used for noncapital
financing activities 464,393) 464,393)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets 1,507,903) 87,906) 1,595,809)
Capital grants and contributions 844,256 844,256
Proceeds from debt issues 71,077 71,077
Principal paid on debt 765,000) 175,000) 940,000 )
Interest paid on debt 361,976) 116,432) 478,408)
Net cash used for capital and
related financing activities 1,790,623) 308,261 ) 2,098,884)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase (sale) of investments 723,829) 33,703 690,126)
Earnings on investments 341,844 35,220 377,064
Net cash provided (used) for investing activities 381,985) 68,923 313,062)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIV ALENTS 383,937 62,034 445,971
CASH AND CASH EQUIV ALENTS, BEGINNING 4,398,205 817,757 5,215,962
CASH AND CASH EQUIV ALENTS, ENDING $ 4,782,142 $ 879,791 $ 5,661,933
( continued)
40
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
(Continued)
YEAR ENDED SEPTEMBER 30, 2005
Enterprise Funds
Water and Drainage
Wastewater Utility Totals
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income $ 1,256,235 $ 241,472 $ 1,497,707
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization expense 1,348,656 95,263 1,443,919
Changes in assets and liabilities:
Decrease (increase) in assets:
Accounts receivable 410,585) 1,931 ) 412,516)
Inventory 27,991) 27,991)
Accrued interest receivable 28,431 ) 2,600 25,831 )
Due from other governments 5, 1 04
Other assets 28,167 28,167
Increase (decrease) in liabilities:
Accounts payable 841,450 35,883) 805,567
Accrued liabilities 4,632
Compensated absences payable 1,810 369 2,179
Customer deposits 9,105 9,105
Advances from developers 2,485 2,485
Accrued interest payable 9,224 ) 518) 9,742)
Escrow funds 475) 475)
Net cash provided by operations $ 3,020,938 $ 301,372 $ 3,322,310
Noncash investing, capital, and financing activities:
Contributions of capital assets $ 844,256 $ $ 844,256
Increase (decrease) in fair value of investments 723,829 ( 33,703) 690,126
The notes to the financial statements are an integral part of this statement.
41
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2005
Agency
Funds
ASSETS
Cash and investments $ 7,739
Total assets $ 7,739
LIABILITIES
Due to other agencies and individuals $ 7,739
T otalliabilities $ 7,739
The notes to the financial statements are an integral part of this statement.
42
CITY OF COLLEYVILLE, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
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 form of government.
The accounting policies of the City of Colleyville, Texas (the "City") conform to generally
accepted accounting principles as applicable to governmental units. The following is a summary
of the more significant of such policies:
A. ReDortin2 Entity
As required by generally accepted accounting principles, these financial statements present
the government and its component units, entities for which the government 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 government. Each blended component 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 ("Act"). 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 government, because CEDC is
financing public improvements and the City is the primary beneficiary of the services
provided.
( continued)
43
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. ReDortin2 Entity (Continued)
Blended Component Unit - Colleyville Crime Control and Prevention District (the District)
was formed under Chapter 363 of the Texas Local Government 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 government 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 primary government appoints a voting
majority of the unit's governing body and the City has a potential economic benefit from this
unit. Therefore, the TIF is presented in the accompanying financial statements as a discretely
presented component unit. Separate financial statements of the individual component units
are not available.
B. Government-wide Fund Financial Statements
The government-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 removed from these statements. Governmental activities, which normally are supported
by taxes and intergovernmental 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 governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual Enterprise Funds are
reported as separate columns in the fund financial statements.
( continued)
44
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus.. Basis of Accountin2 and Financial Statement Presentation
The government-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 earned 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 governmental 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 reports the following major governmental 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 acquisition of resources
for, and the payment of, general long-term debt principal and interest, and
related costs.
( continued)
45
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus.. Basis of Accountin2 and Financial Statement Presentation
(Continued)
GOVERNMENTAL FUNDS (Continued)
The Caoital Proiects Fund - is used to account for financial resources to be
used for the acquisition or construction of general major capital facilities.
Financing is provided primarily by the sale of general obligation bonds and
developer contributions.
Additionally, the City also reports the following fund type:
The Soecial Revenue Fund - accounts for the revenues and expenditures
associated with a special project or purpose.
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 governing 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 governing body has decided that periodic determination of
revenue earned, 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.
FIDUCIARY FUNDS
Aeencv 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.
(continued)
46
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus.. Basis Of Accountin2 and Financial Statement Presentation
(Continued)
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 of following
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 rule, the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are charges between the City's
water and wastewater function and various other functions of the government. Elimination
of these charges would distort the direct costs and program revenue reported for the various
functions concerned.
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.
D. Cash and Cash Eauivalents
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 equivalents.
( continued)
47
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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-earning investment contracts at
amortized cost and to report nonparticipating interest-earning 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 "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable governmental 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, 2005.
Property taxes are levied on October 1 and attach as an enforceable lien on property as of
January 1. Statements 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.
G. Inventories
Inventories in the Enterprise Fund are valued at cost (first-in, first-out method).
( continued)
48
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 governmental or
business-type activities columns in the government-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 equipment is depreciated using the straight-line method over the
following estimated useful lives:
Assets
Years
Buildings
Improvements
Equipment
Infrastructure (streets and drainage)
Water distribution/sewer collection
15 - 50
20 - 50
5 - 10
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)
49
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Lon2-term Obli2ations
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 governmental 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 governmental 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 Eauitv
Reservations of fund balance represent amounts that are not available for appropriation or are
legally segregated for specific purposes. Reservations of retained earnings are limited to
outside third party restrictions. Designations of fund 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 Mana2ement
Insurance coverage for property, liability and workers' compensation is provided by the
Texas Municipal League Intergovernmental Risk Pool, a state insurance pool. Contributions
to the Risk Pool for workers' compensation 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.
50
2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
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 government-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 $(27,640,102) difference are as follows:
Serial Bonds and Certificates of Obligation
Accrued interest payable
Compensated absences
Debt issued or incurred
Principal retirement
$( 26,897,313)
( 147,798)
( 45,071)
( 9,500,950)
8,951,030
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities
$( 27,640,102)
Explanation of Certain Differences Between the Governmental Fund Statement of Revenue..
Expenditures and Chan2es 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 government-wide statement of
activities. One element of that reconciliation explains, "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 details of
this $1,565,615 difference are as follows:
Capital outlay
Depreciation expense
Net adjustment to increase net changes infund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
$ 4,074,003
( 2,508,388)
$ 1,565,615
( continued)
51
2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
(Continued)
Exolanation of Certain Differences Between the Governmental Fund Statement of Revenue..
Exoenditures and Chan2es in Fund Balances and the Government-wide Statement of
Activities (Continued)
Another element of that reconciliation states, "Revenues in the statement of activities that do not
provide current financial resources are not reported as revenues in the funds." The details of this
$2,929 difference are as follows:
Property taxes
Ambulance revenue
Adjudicated fines
Net adjustment to increase net changes infund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
$(
5,030)
5,586
2,373
$
2,929
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 governmental funds."
Neither transaction, however, has any effect on net assets. The details of this $(549.920)
difference are as follows:
Debt issued or incurred
Principal payments
Net adjustment to reduce fund balance -total
governmental funds to arrive at net assets -
governmental activities
$( 9,500,950)
8,951,030
$( 549,920)
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 $(114,532) difference are as follows:
Compensated absences
Accrued interest
Loss on sale of assets
$(
45,071 )
8,656
78,117)
(
Net adjustment to decrease net changes infund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
$(
114,532)
52
3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Bud2etarv 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
departments 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 fund 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, 2005.
(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
accompanying basic financial statements, as such funds are budgeted over the
life of the respective project and not on an annual basis. Accordingly, formal
budgetary integration of the Capital Projects 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.
Expenditures Over Appropriations
Debt Service Fund expenditures exceeded appropriations by $11,825. The City plans to
fund this through available fund balance.
( continued)
53
3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Bud2etarv Data (Continued)
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments
for the expenditure of funds are recorded in order to reserve that portion of the applicable
fund balance, is employed in the governmental funds. Encumbrances are reported as
reservations of fund balances because they do not constitute expenditures or liabilities.
Deficit Net Assets
The City's component unit, the Tax Increment Financing District, has negative net assets of
$(6,613,517). This deficit is due to the conversion to the new reporting model GASB No.
34. The component unit has long-term debt with no capital 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
Deoosits and Investments
As of September 20, 2005, the City had the following investments:
Fair
Value
$ 13,415,257
25,416,776
$ 38,832,033
Weighted Average
Maturity (Days)
Investment Type
LOGIC
U. S. Treasuries
40
213
Total fair value
Portfolio weighted average maturity (days)
153
( continued)
54
4. DETAILED NOTES ON ALL FUNDS (Continued)
Deoosits and Investments (Continued)
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions
in the areas of investment practices, management reports and establishment of appropriate
policies. Among other things, it requires the City to adopt, implement, and publicize an
investment policy. That policy must address the following areas: (1) safety of principal and
liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5)
expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7)
maximum average dollar-weighted maturity allowed based on the stated maturity date for the
portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for
certificates of deposit. Statutes authorize the City to invest in (1) obligations of the U. S.
Treasury, certain U. S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain
municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers
acceptances, (7) Mutual Funds, (8) investment pools, (9) guaranteed investment contracts, and
(10) common trust funds. The Act also requires the City to have independent auditors perform
test procedures related to investment practices as provided by the Act. The City is in substantial
compliance with the requirements of the Act and with local policies.
The City's investment pools are 2a7-like pools. A 2a7-like pool is one which is not registered
with the Securities and Exchange Commission ("SEC") as an investment company, but
nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's
Rule 2a7 of the Investment Company Act of 1940.
Interest Rate Risk. In accordance with its investment policy, the government manages its
exposure to declines in fair market values by limiting the average dollar weighted maturity of its
investment portfolios to a maximum of 90 days.
Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure,
the City's deposits may not be returned to it. As of September 30, 2005, $2,518,038 of the
City's $2,713,084 deposit balance was collateralized with securities held by the pledging
financial institution. The remaining balance, $195,046, was covered by FDIC insurance.
Credit Risk. It is the City's policy to limit its investments to investment types with an
investment quality rating not less than A or its equivalent by a nationally recognized statistical
rating organization. The City's investment pools are rated as follows by Standard and Poor's
Investors Service.
LOGIC
AAA
( continued)
55
4. DETAILED NOTES ON ALL FUNDS (Continued)
Receivables
Receivables as of year-end for the government'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 Wastewater Utility Total
Receivables:
Accounts $ 251,113 $ $ $ $ 1,691,306 $ 78,870 $ 2,021,289
Taxes 121,668 28,177 149,845
Due from other
governments 387,232 343 394,325 781,900
Accrued interest 66,468 3,035 15,928 32,906 77,449 3,280 199,066
Gross receivables 826,481 31,555 15,928 427,231 1,768,755 82,150 3,152,100
Less: allowance for
uncollectibles 205,587) 26,056) 231,643)
Net Total Receivables $ 620,894 $ 31,555 $ 15,928 $ 427,231 $ 1,742,699 $ 82,150 $ 2,920,457
Governmental 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 Fund
$
121,668
38,551
160,219
$
Debt Service Fund
Delinquent property taxes receivable
Total Debt Service Fund
Total Governmental Funds
28,177
28,177
188,396
$
$
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 2005 levy was
based, was $2,652,596,865.
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 September 30, 2005, was $.3474 per
$100 of assessed valuation.
( continued)
56
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, 2005. Property taxes receivable at
September 30,2005, were $149,845.
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
within 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 may challenge appraised
values established by the appraisal district through various appeals and, ifnecessary, legal action.
Caoital Assets
Capital asset activity for the year ended September 30, 2005, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $ 6,360,180 $ 932,111 $ $ 7,292,291
Construction in progress 23,668,324 1,633,573 ( 20,416,912) 4,884,985
Total assets not being depreciated 30,028,504 2,565,684 ( 20,416,912) 12,177,276
Capital assets, being depreciated:
Buildings and improvements 12,782,014 18,841,078 31,623,092
Machinery and equipment 4,818,713 1,124,761 5,943,474
Infrastructure 56,674,159 1,881,275 58,555,434
Total capital assets being depreciated 74,274,886 21,847,114 96,122,000
Less accumulated depreciation:
Buildings and improvements 3,751,345 940,447 4,691,792
Machinery and equipment 4,288,940 396,833 4,685,773
Improvements other than buildings 9,876,459 1,171,108 11,047,567
Total accumulated depreciation 17,916,744 2,508,388 20,425,132
Total capital assets being depreciated, net 56,358,142 19,338,726 75,696,868
Governmental activities capital
assets, net $ 86,386,646 $ 21,904,410 $( 20,416,912) $ 87,874,144
( continued)
57
4. DETAILED NOTES ON ALL FUNDS (Continued)
Caoital Assets (Continued)
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land $ 313,057 $ $ $ 313,057
Construction in progress 827,548 391,473 ( 168,439) 1,050,582
Total assets not being depreciated 1,140,605 391,473 ( 168,439) 1,363,639
Capital assets, being depreciated:
Buildings and improvements 53,922 53,922
Machinery and equipment 969,344 129,876 1,099,220
Improvements other than buildings 49,305,050 1,214,732 50,519,782
Total capital assets being depreciated 50,328,316 1,344,608 51,672,924
Less accumulated depreciation:
Buildings and improvements 42,278 818 43,096
Machinery and equipment 765,903 90,406 856,309
Improvements other than buildings 15,269,188 1,324,528 16,593,716
Total accumulated depreciation 16,077,369 1,415,752 17,493,121
Total capital assets being depreciated, net 34,250,947 71,144 ) 34,179,803
Business-type activities capital assets, net $ 35,391,552 $ 320,329 $( 168,439) $ 35,543,442
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
Fire and rescue
Leisure services
Maintenance
Police
Streets and drainage
$
368,078
141,659
530,311
6,206
227,516
1,234,618
Total depreciation expense - governmental activities
$
2,508,388
Business-type activities:
Water and wastewater
Drainage utility
$
1,320,488
95,264
Total depreciation expense - business-type activities
$
1,415,752
( continued)
58
4. DETAILED NOTES ON ALL FUNDS (Continued)
Caoital Assets (Continued)
Construction Commitments
The government has active construction projects as of September 30, 2005. The major projects
are improvements to the intersection of McDonwel1 School Road and sidewalk trail
improvements along McDonwel1 School Road.
Proiect
Spent-to-date
Remaining
Commitment
McDonwell School Road and sidewalk trail
$
901,101
$
45,000
Interfund Total Transfers
The composition of interfund balances as of September 30, 2005, is as follows:
Transfer In
Nonmajor
Debt Capital Government
General Service Projects Funds Total
Transfer Out:
General Fund $ $ $ 568,569 $ 4,584 $ 573,153
Nonmajor Governmental Funds 638,408 638,408
Water and Wastewater Fund 464,393 464,393
Total Transfers Out $ 464,393 $ 638,408 $ 568,569 $ 4,584 $ 1,675,954
The transfer of $464,393 from the Utility Fund to the General Fund represents the 2005
Administrative transfer and the franchise fee based on gross water and wastewater revenue of the
prior year's audited financial statements. The transfer of $568,569 to the Capital Projects Fund
is for the purchase of capital equipment with excess revenues from the General Fund. The
remaining transfer of $638,408 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.
Caoital Leases
The City has entered into a lease agreement as lessee for financing and acquisition of machinery
and equipment for the Street Department with a down payment of $25,000. The City also has
financed the acquisition of certain machinery and equipment for its Drainage Utility Department
by means of a lease with a down payment of $30,000. These lease agreements qualify as capital
leases for accounting purposes and, therefore, have been recorded at the present value of their
future minimum lease payments as of the inception date.
( continued)
59
4. DETAILED NOTES ON ALL FUNDS (Continued)
Caoital Leases (Continued)
The assets acquired through capital leases are as follows:
Governmental
Activities
Business-type
Activities
Asset:
Machinery and equipment $ 96,715 $ 71,077
Less: accumulated depreciation ( 19,883) ( 8,342)
Total $ 76,832 $ 62,735
The future minimum lease obligations and the net present value of these minimum lease
payments as of September 30, 2005, were as follows:
Governmental
Activities
2006
2007
2008
Total minimum lease payments
$
24,324
24,324
24,323
72,971
3,784 )
Less: amount representing interest
(
Present value of minimum lease payments
$
69,187
Lon2-term Liabilities
General Obligation Bonds
Business-type
Activities
$
14,479
14,479
14,479
43,437
2,360)
(
$
41,077
The government issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds have been issued for
governmental activities. The original amount of general obligation bonds issued in prior years
was $18,785,000.
General obligation bonds are direct obligations and pledge the full faith and credit of the
government. These bonds generally are issued as 20-year serial bonds with equal amounts of
principal maturing each year. General obligation bonds currently outstanding are as follows:
Purpose
Interest Rates
Governmental activities
3.6% - 6%
( continued)
60
Amount
$ 27,010,554
$ 27,010,554
4. DETAILED NOTES ON ALL FUNDS (Continued)
Lon2-term Liabilities (Continued)
Advance Refunding
The government issued $9,570,000 of refunding and improvement sales tax revenue bonds, of
which $7,377,722 is refunding bonds, to provide resources to purchase U. S. Government State
and Local Government Series Securities that were placed in an irrevocable trust for the purpose
of generating resources for all future debt service payments of $7,602,606 of unlimited bonds.
As a result, the refunded bonds are considered to be defeased and the liability has been removed
from the governmental activities column of the statement of net assets. The reacquisition price
was lower than the net carrying amount of the old debt by $35,554. This amount is being netted
against the new debt and amortized over the remaining life of the refunded debt, which is shorter
than the life of the new debt issued. This advance refunding was undertaken to decrease total
debt service payments over the next 23 years by $1,347,116 and resulted in an economic gain of
$1,032,110.
Long-term liability activity for the year ended September 30, 2005, was a follows:
Balance Balance Amounts
October 1, September 30, Due Within
2004 Additions Retirements 2005 One Year
Governmental activities
General obligation bonds and
certificates of obligation $ 12,925,000 $ $ 930,000 $ 11,995,000 $ 1,330,000
Sales tax revenue bonds 13,377,722 9,570,000 7,932,168 15,015,554 305,000
Capital lease obligations 94,187 25,000 69,187 23,786
Note payable 28,308 28,308
Compensated absences 457,845 265,389 220,318 502,916 100,583
Accreted interest 108,438 108,438
Total governmental activities 26,897,313 9,929,576 9,244,232 27,582,657 1,759,369
Business-tvpe activities
Revenue bonds and certificates
of obligation 11,585,000 910,000 10,675,000 945,000
Capital lease obligation 71,077 30,000 41,077 14,143
Compensated absences 52,613 32,505 30,326 54,792 10,880
Total business-type activities 11,637,613 103,582 970,326 10,770,869 970,023
Total primary government $ 38,534,926 $ 10,033,158 $ 10,214,558 $ 38,353,526 $ 2,729,392
Component unit:
Tax Increment Financing Fund
Revenue Bonds 10,165,000 730,000 9,435,000 1,120,000
Total component unit $ 10,165,000 $ $ 730,000 $ 9,435,000 $ 1,120,000
For the governmental activities, compensated absences are generally liquidated by the General
Fund.
( continued)
61
4. DETAILED NOTES ON ALL FUNDS (Continued)
Lon2-term Liabilities (Continued)
Governmental Activities long-term liabilities at September 30, 2005, consisted of the following:
General obligation bonds and certificates of obligation serviced 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%.
$
1,025,000
$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%.
100,000
$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%.
405,000
$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%.
7,465,000
$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 Certificates of Obligation
$
11,995,000
$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 15,2019; interest at 3.60% to 5.60%.
$
5,410,000
$9,570,000 Series 2005 Colleyville Economic Development Corporation
Refunding and Improvement Sales Tax Revenue Bonds due in annual
installments through February 15, 2029; interest at 4.10%
9,570,000
Unamortized gain on refunding
35,554
Total Revenue Bonds
$
15,015,554
The funds utilized for the repayment of long-term liabilities for governmental activities are the
Debt Service Fund, the Crime District Fund and the Colleyville Economic Development
Corporation.
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, 2005, was $8,678,006.
( continued)
62
4. DETAILED NOTES ON ALL FUNDS (Continued)
Lon2-term Liabilities (Continued)
Business-type Activities long-term liabilities at September 30, 2005, consisted of the following:
Water and Wastewater Fund:
$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%.
$
2,290,000
$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%.
2,125,000
$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%.
$1,710,000 Series 2004 Waterworks and Wastewater System Refunding
Bonds due in annual installments of $150,000 to $195,000 through
January 1,2014; interest at 3.73%.
2,185,000
1,560,000
Total Water and Wastewater Fund
$
8,160,000
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
$
$
2,515,000
2,515,000
Total Business-type activities
$
10,675,000
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 maintain the Reserve Fund. At September 30, 2005, the
City was in compliance with these requirements.
( continued)
63
4. DETAILED NOTES ON ALL FUNDS (Continued)
Lon2-term Liabilities (Continued)
The City's component unit, the Tax Increment Financing District, long-term liabilities at
September 30, 2005, consisted of the following:
Tax Increment Financing District
$2,895,000 Series 2000 Tax Notes due in installments of $670,000 to
$780,000 beginning in 2004 through February 15, 2007; interest at
4.95% to 5.20%.
$
1,520,000
$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 4.00% to 5.00%.
630,000
$7,285,000 Series 2001 Tax Notes due in installments of $350,000 to
$66,000 beginning in 2006 through February 15,2020; interest at 4.30%
to 5.00%.
7,285,000
Total Tax Increment Financing District
$
9,435,000
Governmental Activities
General
Obligation Bonds and
Certificates of Obligation Revenue Bonds
September 30, Principal Interest Principal Interest
2006 $ 1,330,000 $ 495,440 $ 305,000 $ 631,748
2007 1,400,000 437,915 525,000 612,595
2008 1,470,000 377,986 545,000 590,584
2009 1,535,000 314,773 565,000 567,592
2010 1,295,000 254,091 625,000 542,703
2011-2015 4,055,000 537,871 3,575,000 2,278,685
2016-2020 910,000 107,274 3,960,000 1,406,067
2021-2025 2,485,000 754,093
2026-2029 2,395,000 201,412
$ 11,995,000 $ 2,525,350 $ 14,980,000 $ 7,585,479
( continued)
64
4. DETAILED NOTES ON ALL FUNDS (Continued)
Lon2-term Liabilities (Continued)
Business- Type Activities
Revenue Bonds
September 30, Principal Interest
2006 $ 945,000 $ 446,830
2007 985,000 407,372
2008 865,000 369,465
2009 810,000 335,902
2010 855,000 302,203
2011-2015 4,510,000 927,131
2016-2020 1,575,000 173,127
2021 130,000 3,250
$ 10,675,000 $ 2,965,280
Discretely Presented Component Unit-
Tax Increment Financing Fund
September 30,
Revenue Bonds
Principal Interest
2006
2007
2008
2009
2010
2011-2015
2016-2018
$ 1,120,000 $ 421,435
1,175,000 365,620
410,000 327,660
430,000 308,665
450,000 289,209
2,580,000 1,118,074
3,270,000 423,117
$ 9,435,000 $ 3,253,780
( continued)
65
4. DETAILED NOTES ON ALL FUNDS (Continued)
Emolovees' Retirement System
Plan Description
The City provides pension benefits for all of its full time employees through a nontraditional,
joint contributory, hybrid defined benefit plan in the statewide Texas Municipal Retirement
System (TMRS), one of 801 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 (100%,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 governing body of the City, within the options available in the state statutes governing 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)
66
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 cost contribution rate, both of which are calculated to be a
level percent of payroll from year to year. The normal cost contribution rate finances 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/her retirement
becomes effective. The prior service contribution rate amortizes the unfunded (overfunded)
actuarial liability (asset) over the remainder of the plan's 25-year amortization 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 for budgetary purposes, there is a one-year delay between the actuarial valuation
that serves as the basis for the rate and the calendar year when the rate goes into effect.
Actual valuation date
Schedule of Actuarial Liabilities and Funding Progress
Actuarial value of assets
Actuarial accrued liability
Percentage funded
Unfunded (over-funded)
actuarial accrued liability (U AAL )
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
12/31/04 12/31/03 12/31/02
$ 17,670,462 $ 15,892,324 $ 13,959,261
19,579,931 19,889,831 17,190,512
90.2% 79.9% 81.2%
1,909,469 3,997,507 3,231,251
7,145,708 7,482,837 7,071,220
26.7% 53.4% 45.7%
1,010,830
1,010,830
973,844
973,844
864,108
864,108
Actuarial Assumotions
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Investment Rate of Return
Proj ected Salary Increases
Includes Inflation At
Cost-of-Living Adjustments
Unit Credit
Level percent of Payroll
25 Years - Open Period
Amortized Cost (to accurately reflect
the requirements of GASB Statement
No. 25, paragraphs 36e and 138)
7%
None
3.5%
None
( continued)
67
4. DETAILED 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 of TRA'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 2005 amounted to approximately $4,458,162 and $805,067, respectively.
Advances from Develooers
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, 2005, developers had escrowed $235,550 with the City in connection with
developer agreements.
Contin2ent 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 time, 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 Financin2 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 employees. 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 and no
settlements exceeded insurance coverage in the past three fiscal years.
68
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.
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.
69
LEOSE (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.
TDPA Grant - This fund is used to account for grant proceeds received for the acquisition of
equipment and expenditures relating to fires and rescue.
Cable Equipment - This fund is used to account for the replacement of cable and other
equipment.
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 improvements to or expand existing parks to better serve new
development. Fees collected from the developers of residential and commercial development
finance the improvements.
Colleyville Economic Development Corporation (CEDC) - This fund is used to account for
financial resources to be used for the acquisition of construction of CEDC capital facilities.
Financing is provided primarily by the revenue from certificate of obligation bonds.
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.
70
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71
CITY OF COLLEYVILLE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
Special Revenue Funds
Police
Voluntary Voluntary Asset Tree Library
Park Library Forfeiture Preservation Donation
ASSETS
Cash and cash equivalents $ 626 $ 8,443 $ 1,833 $ 35,827 $ 97,941
Investments 706,595 322,018
Due from other governments
Accrued interest 5,045 1,347
Total assets $ 712,266 $ 331,808 $ 1,833 $ 35,827 $ 97,941
LIABILITIES
Accounts payable $ $ $ 998 $ $
Advances from developers 30,623
Total liabilities 998 30,623
FUND BALANCES
Special revenue funds 712,266 331,808 835 5,204 97,941
Capital proj ect funds
Total fund balances 712,266 331,808 835 5,204 97,941
Total liabilities and
fund balances $ 712,266 $ 331,808 $ 1,833 $ 35,827 $ 97,941
72
Special Revenue Funds
Community Colleyville
Recreational Center Economic Crime Kidsville
Event Development Recycling LEOSE Development District Maintenance
$ 5,595 $ 22,750 $ 793 $ 20,247 $ 771,024 $ 357,402 $ 21,343
497,194
190,900 148,662
2,370
$ 5,595 $ 22,750 $ 793 $ 20,247 $ 1,461,488 $ 506,064 $ 21,343
$ $ $ $ $ 485 $ 843 $
485 843
5,595
22,750
793
20,247
1,461,003
505,221
21,343
5,595
22,750
793
20,247
1,461,003
505,221
21,343
$
5,595
$
22,750
$
793
$ 20,247
$
1,461,488
$
506,064
$
21,343
( continued)
73
CITY OF COLLEYVILLE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
SEPTEMBER 30, 2005
Special Revenue Funds
Total
Nonmajor
Special Court Court TDPA Cable Special Revenue
Donations Technology Security Grant Equipment Funds
ASSETS
Cash and cash equivalents $ 33,870 $ 19,832 $ 34,478 $ $ 32,985 $ 1,464,989
Investments 1,525,807
Due from other governments 339,562
Accrued interest 8,762
Total assets $ 33,870 $ 19,832 $ 34,478 $ $ 32,985 $ 3,339,120
LIABILITIES
Accounts payable $ $ $ $ $ $ 2,326
Advances from developers 30,623
Total liabilities 32,949
FUND BALANCES
Special revenue funds 33,870 19,832 34,478 32,985 3,306,171
Capital proj ect funds
Total fund balances 33,870 19,832 34,478 32,985 3,306,171
Total liabilities and
fund balances $ 33,870 $ 19,832 $ 34,478 $ $ 32,985 $ 3,339,120
74
Capital Proj ect Funds
Total
CEDC Nonmajor Total
Parkland Capital Kimzey Capital Proj ect Nonmajor
Dedication Proj ect Park Funds Funds
$ 99 $ 530,889 $ 14,736 $ 545,724 $ 2,010,713
2,011,984 2,013,604 4,025,588 5,551,395
32,362 22,401 54,763 394,325
23,875 23,875 32,637
$ 2,068,320 $ 2,566,894 $ 14,736 $ 4,649,950 $ 7,989,070
$ 8,314 $ $ $ 8,314 $ 10,640
30,623
8,314 8,314 41,263
3,306,171
2,060,006 2,566,894 14,736 4,641,636 4,641,636
2,060,006 2,566,894 14,736 4,641,636 7,947,807
$ 2,068,320 $ 2,566,894 $ 14,736 $ 4,649,950 $ 7,989,070
75
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Special Revenue Funds
Po li ce
Voluntary Voluntary Asset Tree Library
Park Library Forfeiture Preservation Donation
REVENUES
Taxes $ $ $ $ $
Intergovernmental
Fines and forfeitures
Charges for services 131,751
Donations 65,876 98,779
Investment earnings 15,457 8,475
Other
Total revenues 147,208 74,351 98,779
EXPENDITURES
Current:
General government
F ire and rescue
Leisure services 3,541 56,511 76,472
Municipal court
Police 2,149
Debt service:
Principal retirement
Interest and fiscal charges
Issuance costs
Capital outlay 7,326
Total expenditures 10,867 56,511 2,149 76,472
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 136,341 17,840 2,149) 22,307
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from bond issue
Payment to bond escrow agent
Total other financing sources
and (uses)
NET CHANGE IN FUND BALANCES 136,341 17,840 2,149) 22,307
FUND BALANCES, BEGINNING 575,925 313,968 2,984 5,204 75,634
FUND BALANCES, ENDING $ 712,266 $ 331,808 $ 835 $ 5,204 $ 97,941
76
Special Revenue Funds
Recreational
Event
Community Colleyville
Center Economic Crime Kidsville
Development Recycling LEOSE Development District Maintenance
$ $ $ $ 982,844 $ 849,886 $
$
6,632
7,370
78,330
935,586
16,000
16,000
3,763
3,763
989,476
2,543 16,901
381 27,992 2,955
1,894 66,916
210,000
387,085
9,923 998
2,543 381 16,901 1,894 635,000 67,914 2,955
2,543) 381) 901) 1,869 354,476 867,672 2,955)
638,408)
638,408)
2,543) 381) 901) 1,869 354,476 229,264 2,955)
8,138 23, 13 1 1,694 18,378 1,106,527 275,957 24,298
$ 5,595 $ 22,750 $ 793 $ 20,247 $ 1,461,003 $ 505,221 $ 21,343
( continued)
77
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Special Revenue Funds
Total
Nonmajor
Special Court Court TDPA Cable Special Revenue
Donations Technology Security Grant Equipment Funds
REVENUES
Taxes $ $ $ $ $ $ 1,832,730
Intergovernmental 129,509 129,509
Fines and forfeitures 16,812 14,072 30,884
Charges for services 131,751
Donations 11,203 37,000 212,858
Investment earnings 37,934
Other 98,093
Total revenues 11,203 16,812 14,072 129,509 37,000 2,473,759
EXPENDITURES
Current:
General government 8,599 28,043
F ire and rescue 3,576 101,816 105,392
Leisure services 1,729 169,581
Municipal court 2,093 2,093
Police 6,016 76,975
Debt service:
Principal retirement 210,000
Interest and fiscal charges 387,085
Issuance costs
Capital outlay 21,677 39,924
Total expenditures 5,305 2,093 129,509 8,599 1,019,093
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,898 14,719 14,072 28,401 1,426,265
OTHER FINANCING SOURCES (USES)
Transfers in 4,584 4,584
Transfers out 638,408)
Proceeds from bond issue
Payment to bond escrow agent
Total other financing sources
and (uses) 4,584 633,824)
NET CHANGE IN FUND BALANCES 5,898 14,719 14,072 32,985 820,842
FUND BALANCES, BEGINNING 27,972 5,113 20,406 2,485,329
FUND BALANCES, ENDING $ 33,870 $ 19,832 $ 34,478 $ $ 32,985 $ 3,306,171
78
Capital Proj ect Funds
Total
CEDC Nonmajor Total
Parkland Capital Kimzey Capital Proj ect Nonmajor
Dedication Project Park Funds Funds
$ $ $ $ $ 1,832,730
37,784 37,784 167,293
30,884
131,751
289,931 289,931 502,789
51,921 37,908 89,829 127,763
98,093
379,636 37,908 417,544 2,891,303
28,043
105,392
35,187 35,187 204,768
2,093
76,975
210,000
6,640 6,640 393,725
90,353 90,353 90,353
179,364 179,364 219,288
179,364 132,180 311,544 1,330,637
200,272 94,272) 106,000 1,532,265
4,584
638,408)
9,570,000 9,570,000 9,570,000
7,450,606) 7,450,606) 7,450,606)
2,119,394 2,119,394 1,485,570
200,272 2,025,122 2,225,394 3,046,236
1,859,734 541,772 14,736 2,416,242 4,901,571
$ 2,060,006 $ 2,566,894 $ 14,736 $ 4,641,636 $ 7,947,807
79
CITY OF COLLEYVILLE, TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2005
80
AGENCY FUNDS
Employee Activity Fund - This fund is used to account for funds held by the City for the benefit
of employees of the 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.
81
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
SEPTEMBER 30, 2005
Employee
Activity Sesquicentennial
Fund Fund Total
ASSETS
Cash and cash equivalents $ 1,076 $ 6,663 $ 7,739
Total assets $ 1,076 $ 6,663 $ 7,739
LIABILITIES
Due to other agencies and individuals
$
1,076
$
6,663
$
7,739
T otalliabilities
$
1,076
$
6,663
$
7,739
82
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF CHANGES IN
ASSETS AND LIABILITIES
AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2005
Employee Activity Fund
Balance Balance
1 % 1/04 Additions Deletions 09/30/05
Cash and cash equivalents $ 2,074 $ 3,281 $ 4,279 $ 1,076
Total assets $ 2,074 $ 3,281 $ 4,279 $ 1,076
Due to other agencies and individuals $ 2,074 $ 3,281 $ 4,279 $ 1,076
T otalliabilities $ 2,074 $ 3,281 $ 4,279 $ 1,076
Sesquicentennial Fund
Balance Balance
1 % 1/04 Additions Deletions 09/30/05
Cash and cash equivalents $ 2,294 $ 4,369 $ $ 6,663
Total assets $ 2,294 $ 4,369 $ $ 6,663
Due to other agencies and individuals $ 2,294 $ 4,369 $ $ 6,663
T otalliabilities $ 2,294 $ 4,369 $ $ 6,663
Total Agency Funds
Balance Balance
1 % 1/04 Additions Deletions 09/30/05
Cash and cash equivalents $ 4,368 $ 7,650 $ 4,279 $ 7,739
Total assets $ 4,368 $ 7,650 $ 4,279 $ 7,739
Due to other agencies and individuals $ 4,368 $ 7,650 $ 4,279 $ 7,739
T otalliabilities $ 4,368 $ 7,650 $ 4,279 $ 7,739
83
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84
STATISTICAL SECTION
85
CITY OF COLLEYVILLE, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(UNAUDITED)
Community
Fiscal General Development Fire and Leisure Municipal
Year Government and Engineering Rescue Services Maintenance Court
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 1,274,096 2,826,218 1,846,787 162,865 234,180
2004 1,596,990 1,281,745 3,057,879 2,076,964 356,819 250,597
2005 1,850,918 1,160,232 3,166,841 2,339,595 357,983 238,245
Note: Includes General, Special Revenue and Debt Service Funds.
86
TABLE 1
Streets and Debt Capital
Police Drainage Service Outlay Totals
$ 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 9,644,319
1,924,456 1,643,967 2,070,234 539,735 11,196,020
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 16,922,061
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
3,126,469 1,420,620 2,800,846 854,820 16,823,749
3,293,320 1,656,187 2,863,174 346,611 17,273,106
87
CITY OF COLLEYVILLE, TEXAS
GENERAL GOVERNMENTAL REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(UNAUDITED)
Engineering,
Licenses Inspection Donations
Fiscal and Fines and and Other and
Year Taxes Permits Forfeitures Charges Contributions
1996 $ 6,880,942 $ 417,941 $ 371,183 $ 89,756 $ 194,554
1997 7,808,425 489,185 341,211 87,338 141,250
1998 8,689,822 596,502 406,292 252,649 360,488
1999 9,363,995 852,489 472,120 307,483 274,928
2000 10,612,927 1,161,363 574,769 533,665 173,934
2001 11,170,915 855,255 557,439 311,991 184,607
2002 12,296,418 913,426 534,590 464,515 206,358
2003 12,596,779 926,083 509,395 915,694 251,754
2004 13,438,345 1,505,512 520,926 952,452 411, 164
2005 14,277,010 1,359,329 513,129 940,212 502,789
Note: Includes General, Special Revenue and Debt Service Funds.
88
TABLE 2
Investment Developer
Earnings Contributions Other Totals
$ 378,426 $ 8,447 $ 212,046 $ 8,553,295
403,773 1,173 285,732 9,558,087
460,713 14,745 257,411 11,038,622
502,075 45,094 304,375 12,122,559
882,718 560,068 14,499,444
900,734 326,637 375,878 14,683,456
436,596 334,502 554,564 15,740,969
243,635 96,857 15,540,197
129,103 92,198 17,049,700
343,141 183,902 18,119,512
89
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 Levy Collections (1) Collected Collections ( 1) Collections
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 99.35% 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
2004 8,719,444 8,701,794 99.80% 94,628 8,796,422
2005 9,201,770 9,183,942 99.81% 86,491 9,270,433
(1) Includes related penalties and interest.
Source: Tarrant County Appraisal District; Grapevine-Colleyville, Tax Assessor-Collector.
90
TABLE 3
Percent of Percent of
Total Tax Outstanding Delinquent
Collections Delinquent Taxes to
to Tax Levy Taxes Tax Levy
101.33% $ 88,996 1.97%
101.66% 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%
100.88% 154,875 1.78%
100.75% 149,845 1.63%
91
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 (1) Assessed Value (1) Assessed Value (1)
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
2004 2,506,636,348 73,845,277 2,580,481,625
2005 2,574,341,822 78,255,043 2,652,596,865
(1) Ratio of total assessed value to total estimated actual value equals 100%.
Source: Tarrant County Appraisal District; Grapevine-Colleyville, Tax Assessor-Collector.
92
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93
CITY OF COLLEYVILLE, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
(UNAUDITED)
Grapevine-
B irdville Carroll Colleyville
Fiscal City of Independent Independent Independent
Year Colleyville School District School District School District
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 1.56980 1.8850 1.5823
2002 0.3474 1.56980 1.9500 1.61679
2003 0.3474 1.61700 1.9350 1.65979
2004 0.3474 1.61700 1.9025 1.70105
2005 0.3474 1.61700 1.9350 1.70000
Source: Information furnished by various assessors.
94
TABLE 5
Tarrant
Hurst Tarrant County
Euless- Bedford County Junior
Independent Tarrant Hospital College
School District County District District
$ 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 0.106410
1.6775 0.274785 0.234070 0.106410
1.6530 0.274785 0.234070 0.106410
1.7119 0.272500 0.234000 0.139380
1.6616 0.272500 0.235397 0.139380
1.7105 0.272500 0.235397 0.139380
95
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
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
2004 20,500 2,580,481,625 12,925,000
2005 21,000 2,652,596,865 11,995,000
Source: Various departments within the City and Grapevine-Colleyville
Tax Assessor-Collector and Tarrant County Appraisal District.
96
TABLE 6
Percent of Net Net
Less Debt Net Bonded Debt to Bonded Debt
Service Funds Bonded Debt Assessed Value Per Capita
$ 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
966,248 11,958,752 0.46% 583
989,618 11,005,382 0.41 % 524
97
TABLE 7
CITY OF COLLEYVILLE, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2005
(UNAUDITED)
Article XI, 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 /Colleyville, 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, 2004, 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 25% of the legal
limit.
98
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
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
2004 895,000 583,599 1,478,599 16,823,749 8.79
2005 930,000 538,296 1,468,296 17,273,106 11.76
(1) Includes General, Special Revenue and Debt Service Funds.
99
TABLE 9
CITY OF COLLEYVILLE, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2005
(UNAUDITED)
Debt Percent Overlapping
Jurisdiction Outstanding Overlapping Debt
City of Colleyville $ 11,995,000 (1) 100.00% $ 11,995,000
Birdville Independent School District 146,953,810 (1) 7.00% 102,868
Carroll Independent School District 152,624,220 (1) 43.00% 656,284
Grapevine-Colleyville Independent School District 242,615,813 (1) 22.94% 55,656,068
Hurst-Eules-Bedford Independent School District 231,039,586 (1) 1.30% 3,003,515
Keller Independent School District 399,478,535 (1) 78.00% 3,131,912
Tarrant County 175,615,000 (1) 2.98% 5,233,327
Tarrant County Hospital District 1,190,000 (1) 2.96% 35,224
Tarrant County Junior College District 71,895,000 (1) 2.98% 2,142,471
Total Direct and Overlapping Debt $ 1,433,406,964 $ 81,956,669
Estimated Population as of January 1, 2005 $ 21,000 (2)
Per Capita Overlapping General Obligation Tax Debt $ 3,903
(1) Source: Texas Municipal Reports
(2) Source: North Central Texas Council of Governments Research and Information Services.
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CITY OF COLLEYVILLE, TEXAS
REVENUE BOND AND CERTIFICATES OF OBLIGATION COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Net Revenue
Fiscal Gross Operating A vailable for
Year Revenue (1) Expenses (2) Debt Service
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
2004 9,765,500 6,429,513 3,335,987
2005 10,908,998 7,590,308 3,318,690
(1) Includes interest income and other income, exclusive of capital contributions.
(2) Excludes depreciation and amortization.
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TABLE 10
Debt Service Requirements
Principal Interest Total Coverage
$ 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
910,000 487,187 1,397,187 2.39
910,000 478,408 1,388,408 2.39
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TABLE 11
CITY OF COLLEYVILLE, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal
Year Population
1996 16,750
1997 17,400
1998 18,100
1999 18,700
2000 19,200
2001 19,500
2002 19,850
2003 20,150
2004 20,500
2005 21,000
Source: North Central Texas Council of Governments.
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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
1996 $ 1,340,033,989 17 $ 6,309,200 224 $ 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
2004 2,506,636,348 16 21,257,852 275 104,205,111
2005 2,574,341,822 8 14,844,383 244 106,477,788
(1) Tarrant County Appraisal District
(2) City records
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TABLE 13
CITY OF COLLEYVILLE, TEXAS
PRINCIP AL T AXP AYERS
SEPTEMBER 30, 2005
(UNAUDITED)
Percentage
2005 of Total
Assessed Assessed
Valuation Valuation
Oncor Electric Delivery Co. $ 16,670,636 0.63%
Albertsons, Inc. 9,450,228 0.36%
Broughton L TD Partnership 7,391,268 0.28%
Colleyville Plaza 6,500,480 0.25%
Uhlmann-Colleyville, LLC 6,093,083 0.23%
Market Street 6,033,600 0.23%
Broadland Limited Partnership 5,510,559 0.21 %
Industrial Bank Japan Trust Co. 5,145,107 0.19%
Village Management, Ltd. 4,794,100 0.18%
Melvin & Martindale, Ltd. 4,594,495 0.17%
Total $ 72,183,556 2.72%
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TABLE 14
CITY OF COLLEYVILLE, TEXAS
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 2005
(UNAUDITED)
Date of Incorporation
January 10, 1956
Date of City Charter Adoption
January 15, 1977
Form of Govemment
Council - Manager
Area - square miles
13
Municipal water system:
Number of customers
Annual gallons of water
pumped in millions
Stored capacity in millions
8,271
Miles of streets
331
2,172
4.9
Miles of sanitary sewers
150
Miles of water mains
Number of fire hydrants
173
1,149
Building Permits:
Permits issued 252 Number of street lights 788
Value in millions $ 121,322
Fire Protection: City Employees:
Number of stations 3 Fulltime 166
Number of firefighters 30 Part-time 11
Police Protection: Registered voters 15,938
Number of employees 40
Number of uniformed officers 30 V otes in last Council election 1,982
Recreation: Population (City's estimate) 21,000
Parks - number of acres 190
Number of playgrounds 5
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