HomeMy WebLinkAboutAudit Committee-Agenda Packets-03/05/2019City of Colleyville Page 1
City of Colleyville
Audit Committee
Agenda
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, March 5, 2019
4:30 p.m.
City Manager’s Conference Room
Third Floor – City Hall
1.CALL TO ORDER
2. APPROVAL OF MINUTES
December 4, 2018
3.REGULAR AGENDA ITEMS
3a Discussion of the draft Fiscal Year 2018 (FY18) Audit and SAS 114
Letter
3b Quarterly Investment Report for the quarter ended December 31,
2018
4.ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday, March
8, 2019, by 5:00 p.m.
Christine Loven, TRMC
City Secretary
A quorum of the Colleyville City Council and/or any other Colleyville Board,
Commission, or Committee may be in attendance at this meeting.
Any matter on this agenda may, at the discretion of the governing body, be
opened for public comment and discussion.
If you plan to attend this public meeting and have a disability that requires special
accommodations, please advise Executive Secretary at least 48 hours in advance
at 817.503.1111, and reasonable accommodations will be made to assist you.
City of Colleyville Page 1
City of Colleyville
Audit Committee
MINUTES
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, December 4, 2018
5:00 p.m.
City Manager’s Conference Room
Third Floor – City Hall
Chief Financial Officer Shereen Gendy called the Audit Committee to order on
December 4, 2018, at 5:00 p.m.
ROLL CALL: Committee members present George Dodson, Kathy Wheat, Bobby
Lindamood, and Susan Mathisen
Also Present: Chief Financial Officer Shereen Gendy, City Manager Jerry Ducay,
Assistant City Manager Mark Wood and City Secretary Christine Loven
2. APPROVAL OF MINUTES
June 5, 2018
August 28, 2018
Committee member Dodson made a motion to approve the Audit Committee
minutes of June 5 and August 28, 2018, and Committee member Lindamood
seconded the motion. All approved by acclamation.
3. REGULAR AGENDA ITEMS
3a Quarterly Investment Report for the quarter ended September 30, 2018
CFO Gendy stated the City has restructured the investment portfolio with an
expansion to government only pools. She noted the benefits of government pools
include a better interest rate, liquidity, daily compounded interest and
diversification of the investments.
There was general discussion regarding sweep accounts, commercial CD’s offering
higher interest gains than CDARS (commercial offering 2.5% versus CDARS at
.5%), and jumbo CDs.
CFO Gendy noted in this quarter one of the CDARS matured and they were able to
negotiate a higher one year rate and the City is in compliance with the Act.
CFO Gendy stated after the audit, they will begin looking at a Banking RFP
for 2020, however, it is a big project and will require some time.
The committee thanked CFO Gendy and her team for the work they have
accomplished.
City of Colleyville Page 2
Audit Committee Minutes December 4, 2018
4. ADJOURNMENT
The meeting was adjourned at 5:15 p.m.
PASSED BY A VOTE OF _ AYES, _ NAYS, AND _ ABSTENTIONS, THIS 5TH DAY OF
MARCH, 2019.
Minutes taken and prepared by:
Christine Loven, TRMC
City Secretary
City of Colleyville Page 1
City of Colleyville
Audit Committee
Agenda Briefing
City Hall
100 Main Street
Colleyville, Texas 76034
www.colleyville.com
Agenda Number 3a Agenda Date 03/05/2019 Number
Type Presentation and Discussion
Department City Manager
Title
Discussion of the draft Fiscal Year 2018 (FY18) Audit and SAS 114 Letter
Strategic Plan
F1- Protect and preserve the City’s top financial ratings
Explanation
Jennifer Ripka, Partner with Weaver, L.L.P., will meet with the Audit Committee to
discuss the draft of the Fiscal Year September 30, 2018 audit and SAS 114 Letter.
Attachments
1.Comprehensive Annual Financial Report as of September 30, 2018
Comprehensive Annual
Financial Report
Fiscal Year ended September 30, 2018
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2018
Prepared by
Finance Department
Shereen Gendy
Chief Financial Officer
Karen Hines
Accounting Manager
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2018
Table of Contents
i
Exhibit Page
Int roductory Section
Letter of Transmittal v
Certificate of Achievement xi
Organizational Chart xii
Principal Officials xiii
Financial Section
Independent Auditor’s Report 3
Management's Discussion and Analysis 7
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position 1 21
Statement of Activities 2 22
Fund Financial Statements:
Governmental Funds Financial Statements:
Balance Sheet 3 29
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 4 30
Statement of Revenues, Expenditures, and Changes in Fund Balance 5 31
Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures and Changes in
Fund Balance to the Statement of Activities 6 32
Proprietary Funds Financial Statements:
Statement of Net Position 7 34
Statement of Revenues, Expenses, and Changes in Net Position 8 35
Statement of Cash Flows 9 36
Fiduciary Fund Financial Statement:
Statement of Fiduciary Net Position 10 39
Notes to the Basic Financial Statements 41
Required Supplementary Information
Budgetary Comparison Schedules:
Budgetary Comparison Schedule - General Fund A-1 72
Budgetary Comparison Schedule - Colleyville Economic Development Fund A-2 73
Notes to Budgetary Comparison Schedules 75
Schedule of Changes in Net Pension Liability and Related Ratios - TMRS A-3 76
Schedule of Contributions - TMRS A-4 77
Notes to Texas Municipal Retirement System
Required Supplementary Information 78
Schedule of Changes in Net OPEB Liability and Related Ratios - TMRS A-5 79
Notes to Texas Municipal Retirement System- OPEB Liability 80
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2018
Table of Contents – Continued
ii
Exhibit Page
Combining And Individual Fund Financial Statements And Schedules
Bu d getary Comparison Schedule - Debt Service Fund B-1 83
Non-Major Governmental Funds 85
Combining Balance Sheet B-2 88
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances B-3 92
Budgetary Comparison Schedule - Crime District Fund B-4 96
Agency Funds:
Statement of Changes in Assets and Liabilities C-1 98
Combining Statement of Changes in Assets and Liabilities C-2 99
Statistical Section
Net Position By Component 1 104
Changes in Net Position 2 106
Fund Balances - Governmental Funds 3 108
Changes in Fund Balances - Governmental Funds 4 109
Assessed Value and Estimated Actual Value of Taxable Property 5 110
Direct and Overlapping Property Tax Rates 6 111
Principal Property Tax Payers 7 112
Property Tax Levies and Collections 8 113
Principal Water Customers 9 114
Ratios of Outstanding Debt by Type 10 115
Direct and Overlapping Governmental Activities Debt 11 117
Pledged Revenue Coverage 12 118
Demographic and Economic Statistics 13 120
Principal Employers 14 121
Full-Time Equivalent City Government Employees By Function/Program 15 122
Operating Indicators By Function/Program 16 123
Capital Asset Statistics By Function/Program 17 124
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
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Introductory Section
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
iv
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
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Month Day, 2019
To the Citizens of the City of Colleyville:
The Comprehensive Annual Financial Report (CAFR) of the City of Colleyville (the "City") for the fiscal year
ended September 30, 2018, 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 of
internal accounting controls. These controls are designed to provide reasonable, but not absolute,
assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, and the
reliability of financial records for preparing financial statements and maintaining accountability for assets.
The concept of reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments
by management. We believe that the City's current 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 Weaver and Tidwell,
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, 2018, are free of material misstatement. The independent audit involved examining on a
test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditor concluded, based upon the audit, that there
was a reasonable basis for rendering an unmodified opinion that the City of Colleyville’s financial
statements for fiscal year ended September 30, 2018, are presented in conformity with generally
accepted accounting principles (GAAP).
As required by GAAP, management provides a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A).
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 independent auditors report.
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 six 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 six Council members are elected on an at large, non-partisan basis
for three year terms. The three year terms are staggered so that the Mayor and City Council persons
from Place 1 and 2 are elected in year one, City Council persons from Places 3 and 4 are elected in year
two, and City Council persons from Places 5 and 6 are elected in year three.
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revision and should not be relied upon
or distributed.
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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) Blended
Colleyville Crime Control and Prevention District Blended
Colleyville Tax Investment Financing Reinvestment Zone
Zone Number One (TIF) Discretely Presented
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 and the proposed budget is presented to the City Council at a
budget work session. 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 City maintains budgetary control by adopting an annual operating budget for the General Fund,
Debt Service Fund, Drainage Utility Fund, and Water and Wastewater 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 a new purchase order can be processed to re-appropriated
the encumbrance against the following fiscal year’s budget. 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.
LOCAL ECONOMY
The City of Colleyville is a primarily 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.
During the fiscal year, the City issued 169 new residential building permits, and the average appraised
value of a residential property was $571,103. The City issued 77 certificates of occupancy for new,
remodeled, and expanding businesses. The City’s strong economy supports a 95% occupancy rate of
existing retail and office spaces.
In fiscal year 2018, commercial developments continued to bring new tenants and sales tax dollars to
Colleyville including:
• Shanty2Chic LLC
• Texas Ketamine Specialists, PLLC
• Embroidme
• Chipotle Mexican Grill
• Ver Halen Aesthetics & Plastic Surgery
• Visionary Technology Systems
• Hotworx
DRAFT FOR DISCUSSION PURPOSES ONLY –
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In addition to these new businesses and tenants, Colleyville expects to see the following developments in
the near future:
• A new ±9,000 square foot wedding & event venue (Mont Claire) off of Colleyville Boulevard in the
Winding Creek development
• Zoning has been approved for a new ±86,675 square foot self-storage warehouse (Advantage
Storage) on Precinct Line Rd on the western city limits
• Domino’s restaurant intends to occupy a portion of the Bear Creek Wine & Spirits at 7101 Colleyville
Blvd
• Lilium Florists is expanding the building at their location at 4800 Colleyville Blvd, doubling their
existing square footage
• New commercial building permits were issued for a 6,200 square foot building that will be home
to a new optometry office and a Vietnamese restaurant
• A tenant finish out permit has been submitted for Chef Point fine dining restaurant on State Hwy
121
Fiscal year 2018 capital projects included the completion of Pleasant Run Road Reconstruction including
the upsizing of a waterline, drainage improvements, ribbon curbs, and sidewalk on the east side of the
road; and the Manning Drive Wastewater Project including the replacement of the wastewater line
along with street rehabilitation of Manning, Stafford, Bowman, and Oak Knoll Drives. Street rehabilitation
projects included John McCain Road from Pleasant Run Road to Marantha Court; L.D. Lockett from
Precinct Line Road to Pleasant Run Road, and Oak Timbers Court, Tyler Street, Behrens Road, and Behrens
Court, Bluebonnet, Montclair, and Wayne Drives, and Pleasant Run Road (John McCain to North City
Limit).
Transportation projects in progress at the end of fiscal year 2018 are State Highway 26/Colleyville
Boulevard (construction of Phases II and III).
For the Future. In Fiscal Year 2019 street rehabilitation projects will include Cheek-Sparger Road from
Bedford Road to Silverwood Lane, Bransford Road, Patterson Lane, Van Oaks Drive, White Drive, Bill
Simmons, Curtis, Sherbert, and McDonwell School Roads. Major construction projects will include the
reconstruction of Frontier Court and Cheek-Sparger Road from San Bar Lane to Oak Briar Lane.
Construction of SH26 is scheduled to conclude in 2019.
FINANCIAL INFORMATION:
Financial Policies
The City of Colleyville operates under financial policies that include multiple components to provide
consistency, clarity, and appropriate statutory compliance in the City’s financial processes. The City’s
Charter provides a strong foundation, outlining requirements for the annual budget, monthly financial
reports, and annual audit. Additional policies such as the Investment Policy which is reviewed annually
by the City Council and the Fund Balance Policy which is reviewed every three years by the Audit
Committee provide further details and guidance. Decisions are also made in accordance with any
existing bond covenants or state law.
In July 2018, the investment policy was updated to limit the maximum allowable investment in Local
Government Investment Pools that invests in commercial paper to 5% of the portfolio, which reflects the
City’s conservative risk tolerance. To diversify the investment portfolio, the updated policy allows investing
up to 75% of the portfolio in government only Local Government Investment Pools. To seek higher return
on investments while maintaining liquidity, the city expanded the investment portfolio to include
investments in TexPool, TexStar and Texas CLASS.
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Long Term Financial Planning
In Fiscal Year 2005, the City Council adopted a Fund Balance Policy requiring a ninety day reserve for
fund balance in both the General Fund and the Utility Fund. In Fiscal Year 2011, the policy was updated
to reflect the designations of non-spendable, restricted, committed, assigned and unassigned as required
by GASB 54 and was reviewed for update in Fiscal Year 2017. At the end of Fiscal Year 2018, both the
General Fund and the Utility Fund have a fund balance in excess of the required ninety day
reserve. Amount in excess of the reserve may be used to fund one-time capital expenditures.
In January 2017, the City Council held a Visioning Workshop and created a new Strategic Plan, with
support from an outside facilitator and senior staff. The Strategic Plan included an updated Vision,
Mission, and Values. The Strategic Plan also articulated six overall goals and several strategies to achieve
each, as shown below in the version that was updated in June 2018. For each strategy identified, one or
more objectives were assigned.
In June 2018, the City Council held their annual priority setting work session, at which nine consensus
priorities were identified (listed below).
• SH26 corridor enhancements - design & bid
• City Plaza – finalize design & construct
• Multi-purpose Center study to determine scope (Senior/Rec/Community) – Go/No Go decision =
intended outcome
• 5-Year Capital Trail Master Plan
• Communications Strategy & Enhancements
• Develop TIF 5-Year Plan Strategy
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• Set priorities & implement Parks Master Plan
• Continue improving City events and opportunities for engagement
• Explore, develop and expand community partnerships – Chamber, County road projects, other
cities, Entrepreneur Center, etc.
Staff’s role is to manage City activities and finances in a way that reflects the City Council’s and the
community’s highest priorities. Development of the annual budget is guided by the priorities outlined in
the City of Colleyville’s Strategic Plan. Every new effort and element of the City’s budget, including
existing programs, is tied to one or more of these goals, strategies, and objectives.
As a part of the annual budget process, an updated five-year forecast for the General Fund, Utility Fund,
Drainage Fund, and Debt Service Fund is presented to the City Council with the proposed budget. The
budget process also includes an annual update of the five-year capital improvement program
(CIP). Projects in the CIP are funded from a variety of sources including the Capital Projects Fund, Utility
Capital Projects Fund, the Tax Increment Financing (TIF) District Fund, or Special Revenue Funds. The
Capital Projects Fund accounts for money transferred from the General Fund for use on capital projects,
street impact fees, perimeter street fees, and other funds for general capital projects. For internal
reporting and tracking, a Utility Capital Projects Fund was created in Fiscal Year 2017 to account for
money transferred from the Utility Fund (the operating fund) for use on utility capital projects, water
impact fees, and wastewater impact fees. For the CAFR purposes, the activity for the Utility Fund and the
Utility Capital Projects Fund are combined as the Water and Wastewater Fund activity.
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 CAFR for the fiscal year ended September 30, 2017. This was the 29th consecutive year that 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 CAFR. This report must satisfy both GAAP and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
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 Government Finance Officers Association of the United States and Canada (GFOA)
awarded (GFOA) awarded an Outstanding Achievement in Popular Annual Financial Reporting (PAFR)
Award to the City of Colleyville for its PAFR for the fiscal year ended September 30, 2017. The PAFR award
is valid for one year. This was the first year that the City has received this prestigious award. The GFOA
established the PAFR Program in 1991 to encourage and assist state and local governments to extract
information from their comprehensive annual financial report to produce high quality popular annual
financial reports specifically designed to be readily accessible and easily understandable to the general
public and other interested parties without a background in public finance and then to recognize
individual governments that are successful in achieving that goal. Fiscal year 2018 PAFR will be submitted
to GFOA to determine its eligibility for another certificate.
The City also received the GFOA’s Distinguished Budget Presentation award for its annual budget dated
October 1, 2017. 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.
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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. We would like to express our
sincere appreciation to all employees who contributed to the preparation. Additionally, we 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,
Shereen Gendy, MSA, CPA, CGFO
Chief Financial Officer
Karen Hines
Accounting Manager
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CITY OF COLLEYVILLLE, TEXAS
HOME RULE, COUNCIL – MANAGER
FORM OF GOVERNMENT
CITY OFFICIALS
YEAR ENDED SEPTEMBER 30, 2018
Richard Newton
Mayor
Tammy Nakamura
Councilmember, Place 1
Bobby Lindamood
Mayor Pro Tem and
Councilmember, Place 2
Kathy Wheat
Councilmember, Place 3
George W. Dodson
Councilmember, Place 4
Chuck Kelley
Councilmember, Place 5
Callie Rigney
Councilmember, Place 6
Jerry Ducay
City Manager
Shereen Gendy
Chief Finance Office
Karen Hines
Accounting Manager
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1
Financial Section
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2
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Independent Auditor’s Report
To the Members of the City Council
and City Manager
City of Colleyville, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the , Texas
(the City) as of and for the year ended September 30, 2018, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of September 30, 2018, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
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revision and should not be relied upon
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The Members of the City Council and Manager of
City of Colleyville, Texas
4
Emphasis of Matter
As discussed in Note 9 and 14 to the financial statements, the City adopted new accounting guidance
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis (pages 7 through 16), budgetary comparison information (pages
72 through 75), and TMRS pension and OPEB schedules (pages 76 through 80) be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual fund
financial statements and schedules, and statistical section, are presented for purposes of additional
analysis and are not a required part of the financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining
and individual fund financial statements and schedules are fairly stated in all material respects in relation
to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
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The Members of the City Council and Manager of
City of Colleyville, Texas
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March __,
2019, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
(Name of Firm)
Dallas, Texas
March __, 2019
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revision and should not be relied upon
or distributed.
6
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
7
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, 2018.
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 v – x of this
report
Financial Highlights
• The assets of the City of Colleyville exceeded its liabilities as of September 30, 2018, by $210,726,373
(net position). Of this amount, $58,279,057 (unrestricted net position) 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 position increased by $4,843,898 from FY 2018 operations.
• As of the close of the current fiscal year, the City of Colleyville’s governmental funds reported
combined ending fund balances of $42,241,171. Of this amount, $8,991,999 is unassigned fund
balance available for use within the City’s fund designation and fiscal policies.
• As of September 30, 2018, unreserved, unassigned fund balance for the General Fund was
$8,991,999 or 42.99% of the total General Fund expenditures.
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 19 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 Position presents information on all of the City’s assets, liabilities, and deferred
inflows/outflows of resources, with the difference between the two reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of
the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the
fiscal year. All changes in net position are reported 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, Public Safety, Public
Works, and Cultural and Recreation. The business-type activities of the City include Water and
Wastewater, and Drainage Utility.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
8
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 of the funds of the City can be divided into three categories: governmental, funds,
proprietary funds, and fiduciary funds. The fund financial statements for governmental funds, proprietary
funds, and fiduciary funds can be found in the financial section of this report.
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 evaluation 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 27 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, Capital projects and Debt Service Fund, all of which are considered
to be major funds. 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 fund. 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.
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 33 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.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside
the City. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support the City’s own programs. The Fiduciary fund
statement is presented on page 37. The accounting used for fiduciary funds is similar to the accounting
used for proprietary funds. The City has two agency funds: Employee Activity and Sesquicentennial Fund.
Agency funds are one of the City’s fiduciary fund types. The agency funds account for funds held in an
agency capacity for the benefit of the City employees and for the benefit of the City’s historical purposes.
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 41 – 67 of this report.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
9
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 non-major funds are presented
beginning on page 83 of this report.
Governmental-wide Financial Analysis
As noted earlier, net position 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 $210,726,373 as of September 30, 2018.
The largest portion of the City’s net position ($143,942,986) reflects its investments in capital assets (e.g.,
land, building, equipment, improvements, construction in progress and infrastructure), less any
outstanding debt used to acquire those assets. The City uses these capital assets to provide service to
citizens; consequently, these assets are not available for future spending. Although the City’s investment
in its capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
City of Colleyville’s Net Position
2018 2017 2018 2017 2018 2017
Current and other assets 48,868,523$ 44,138,502$ 24,338,315$ 20,613,149$ 73,206,838$ 64,751,651$
Capital assets, net 112,588,679 112,067,401 43,923,237 44,698,792 156,511,916 156,766,193
Total assets 161,457,202 156,205,903 68,261,552 65,311,941 229,718,754 221,517,844
Deferred outflows of
resources 2,547,481 3,354,608 342,092 496,362 2,889,573 3,850,970
Current liabilities 2,594,456 3,565,444 1,722,655 1,960,547 4,317,111 5,525,991
Long-term liabilities 14,054,032 13,393,803 543,069 534,348 14,597,101 13,928,151
Total liabilities 16,648,488 16,959,247 2,265,724 2,494,895 18,914,212 19,454,142
Deferred inflows of
resources 2,590,749 28,414 376,993 3,783 2,967,742 32,197
Net position
Net Investment in
capital assets 100,382,597 99,881,334 43,560,389 44,123,735 143,942,986 144,005,069
Restricted 8,504,330 6,918,143 - - 8,504,330 6,918,143
Unrestricted 35,878,519 35,773,373 22,400,538 19,185,890 58,279,057 54,959,263
Total net position 144,765,446$ 142,572,850$ 65,960,927$ 63,309,625$ 210,726,373$ 205,882,475$
Activities Activities Primary Government
Governmental Business-type Total
A portion of the City’s net position ($8,504,330) represents resources that are subject to external
restriction on how they may be used. The remaining balance ($58,279,057) of unrestricted net position
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.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
10
As of September 30, 2018, the City has positive balances in all three categories of net position, both for
the City as a whole, as well as for its governmental and business-type activities separately. The increase
of $2,192,596 in net position relating to governmental activities and the increase in net position of business-
type activities ($2,651,302) are primarily due to the increase in current and other assets. In fiscal year 2018,
the governmental activities cash and investments increased by $2,739,794 and the business type activities
increased by $3,381,869. The increase in cash and investment balances are primarily due to the increase
in revenues and the city’s successful efforts to cut down on expenses.
As of September 30, 2018, the City had $1,522,000 in capital projects outstanding that are funded by the
business-type activities. Pleasant Run John McCain to Tinker Waterline Replacement ($1,055,000), repairs
of elevated storage tanks ($20,000), design of pressure valve improvements ($48,000), pleasant run road
rehabilitation- Shelton Drive to John McCain ($124,000) and Replacement of 6” and 8” wastewater
pipelines ($275,000).
Tiered rates which have been in place since December 2012 were replaced with a flat rate structure in
July 2016. The flat rate provides a more equitable basis for our residents by charging a flat base rate that
varies depending on the meter size (rather than consumption) and a flat volumetric rate per thousand
gallons of usage. The new rate structure gave the residents a relief from high water bills in summer months.
Risk to the City is minimized under the new utility rate structure adopted in Fiscal Year 2016, which recovers
all of the City’s distribution and collection costs in the base rate component and costs related to the
purchase of treated water or wastewater treatment are recovered in the volumetric component of the
rate.
Analysis of the City’s Operations – The following table provides a summary of the City’s operations for the
year ended September 30, 2018. Governmental activities increased the City of Colleyville’s net position
by $2,192,596. Business-type activities contributed an increase to the City’s net position of $2,651,302.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
11
City of Colleyville’s Changes in Net Position
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues:
Charges for services 4,395,586$ 4,296,470$ 18,334,071$ 16,941,965$ 22,729,657$ 21,238,435$
Operating grants and
contributions 614,794 507,616 - - 614,794 507,616
Capital grants and
contributions 406,094 1,302,174 277,639 481,413 683,733 1,783,587
General revenues:
Property tax 15,471,246 14,548,461 - - 15,471,246 14,548,461
Sales tax 7,578,861 7,304,507 - - 7,578,861 7,304,507
Franchise tax 1,982,578 2,105,881 - - 1,982,578 2,105,881
Other tax 351,715 263,587 - - 351,715 263,587
Investment income 315,611 148,933 167,427 100,525 483,038 249,458
Miscellaneous 126,859 168,865 183,685 - 310,544 168,865
Gain on sale of
capital assets 51,620 17,000 - - 51,620 17,000
Total revenues 31,294,964 30,663,494 18,962,822 17,523,903 50,257,786 48,187,397
Expenses:
General government 5,330,690$ 4,881,741 - - 5,330,690 4,881,741
Community development 1,387,909 1,672,823 - - 1,387,909 1,672,823
Fire and rescue 5,690,454 5,524,975 - - 5,690,454 5,524,975
Leisure services 4,271,760 4,987,965 - - 4,271,760 4,987,965
Maintenance 738,834 1,243,614 - - 738,834 1,243,614
Municipal court 595,879 606,269 - - 595,879 606,269
Police 6,634,046 6,093,309 - - 6,634,046 6,093,309
Streets and drainage 4,009,383 3,578,365 - - 4,009,383 3,578,365
Water and wastewater - - 15,257,125 14,779,262 15,257,125 14,779,262
Drainage - - 740,994 646,145 740,994 646,145
Interest on long-term debt 334,839 408,268 - - 334,839 408,268
Total expenses 28,993,794 28,997,329 15,998,119 15,425,407 44,991,913 44,422,736
Increases (decreases) in
net positionbefore transfers 2,301,170 1,666,165 2,964,703 2,098,496 5,265,873 3,764,661
Transfers 260,238 63,319 (260,238) (63,319) - -
Change in net position 2,561,408 1,729,484 2,704,465 2,035,177 5,265,873 3,764,661
Net position - October 1 142,572,850 140,843,366 63,309,625 61,274,448 205,882,475 202,117,814
Cummulative effect of change
in accounting principle (368,812) - (53,163) - (421,975) -
Net position - October 1, as restated 142,204,038 140,843,366 63,256,462 61,274,448 205,460,500 202,117,814
Net position - September 30 144,765,446$ 142,572,850$ 65,960,927$ 63,309,625$ 210,726,373$ 205,882,475$
Activities Activities Primary Government
Governmental Business-type Total
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, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
12
In fiscal year 2018, the governmental funds’ unrestricted fund balance increased by $125,239 due to a
number of factors. The General Fund is the only governmental fund that can have an unrestricted fund
balance. The total General Fund revenue was $997,488 above budget, including $830,519 in tax revenue
(property taxes, sales taxes and franchise taxes). Colleyville benefits from a strong residential base which
helps mitigate the negative effects of economic fluctuations. Despite the property tax rate reduction, the
General Fund’s property tax revenue was more than $350,000 above budget. Sales tax is the second
largest revenue source. Despite the massive construction project in the City’s primary commercial corridor
along Colleyville Boulevard (SH26), the sales tax revenue was $198,740 above budget due to the city’s
continuous efforts to support and market the impacted businesses during construction. The City began
quarterly promotion programs in 2018 to assist businesses impacted by State Highway 26 construction, a
3-mile $38 million roadway expansion project through the City’s main commercial corridor. Each quarter,
the City rolled out a new program. Quarter 1 was a business advertising grant, where 80 businesses utilized
grant funding to advertise their business. Quarter 2 was a partnership with the Grapevine-Colleyville ISD
in which school PTAs competed in the Colleyville Receipt Race. Schools collected receipts from Colleyville
businesses and the City provided first, second, and third place prizes for the PTAs who collected the most
receipts. During Quarter 3, the mailed each Colleyville household a $10 gift card twice to use at any
Colleyville business. The business provided a $10 discount with a minimum $20 purchase, and the City
reimbursed the businesses for the gift cards. Quarter 4 was called Colleyville Gives. The City brought back,
upon request, the advertising grants but this time, offered to double the grant if the business would donate
$500 to a local non-profit. Over $28,000 was donated to local charities.
Also, in fiscal year 2018, the City Council provided direction to transfer the excess fund balance above
100 days of reserves (policy minimum requires 90 day reserve) to the Capital Projects Fund to fund future
capital projects. The fiscal year 2018 excess fund balance allowed the Council to authorize a transfer of
$2,300,000 to the Capital Projects Fund, in addition to the originally budgeted transfers of $1,500,000, for
a total transfer of $3,800,000 which contributed to the net increase in the Capital Projects Fund balance
of $685,854. The aforementioned transfers from the General Fund to the Capital Projects Fund were
contained within funds that are in the governmental fund classification and did not change the total
governmental activities fund balance.
Fiscal year 2018 Debt Service Fund balance increased by $4,780 primarily due to $132,517 in greater than
anticipated property tax and investment interest revenues combined with a planned budgeted utilization
of $125,000 of surplus fund balance for the down payment on the lease-purchase agreement for a new
ambulance. The City of Colleyville has been focused on reducing and eliminating debt, working toward
a pay as you go method. The city has not issued any new tax supported debt since 2007. All debt
issuances after that were refunding debts.
The unrestricted net position of the proprietary funds are $20,043,241 for the Water and Wastewater Fund
and $2,357,297 for the Drainage Utility Fund. The net position of the Water and Wastewater Fund increased
by $2,428,194 and the Drainage Fund increased by $276,271. During fiscal year 2018, the revenues
collected exceeded the budgeted amounts in many areas including $1,126,820 in water and wastewater
impact fees, $200,418 capital project rate revenues and $277,639 in developer’s contributions. The
Drainage fees were $39,047.51 above budget and the water and wastewater sales were $491,846 above
budget. The increase is primarily due to the expansion of the city’s customer base by 2% and an increase
in consumption by 10%. Tiered rates which have been in place since December 2012 were replaced with
a flat rate structure in July 2016. The flat rate provides a more equitable basis for our residents by charging
a flat base rate that varies depending on the meter size (rather than consumption) and a flat volumetric
rate per thousand gallons of usage. The new rate structure gave the residents a relief from high water bills
in summer months. The new rates did include the continued pass-through of the Trinity River Authority
water and wastewater rate increases.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
13
Governmental activities – There was an increase of $1,804,260 in revenue compared to fiscal year 2017.
About $1,456,175 of that increase was related to tax revenues. Colleyville benefits from a strong residential
base which helps mitigate the negative effects of economic fluctuations. Property values have
experienced a 10.04% growth over the prior year’s certified values. Despite the tax rate reduction from
$0.33913/$100 valuation to $0.333834/$100 valuation, the City’s actual property tax revenue was
$1,018,623 more than last year’s collections for the General Fund and the Debt Service Fund. The current
year tax collection rate was 99.6% of the levy. The sales tax revenues increased by $274,351 for the
General Fund, Colleyville Economic Development and the Colleyville Crime Control District. In 2017, the
City’s first hotel opened for business and the City collected $95,387 in hotel occupancy taxes more than
last year.
Business-type activities – The City has two enterprise operations, the Waste and Wastewater Fund and the
Drainage Utility Fund. The total operating revenue of the Water and Sewer Fund was $17,516,576 for the
fiscal year with an increase of about $1,560,247 from the prior year due to many factors including an
increase of $352,150 in impact fees and an increase of $876,804 in the water and wastewater sales. In
fiscal year 2018, the water consumption increased by 10% with only 2% increase in the customer base.
Also, in December 2017, the volumetric rates went up to pass through the rate increase from the Trinity
River Authority, the City’s provider of treated water. The increase in the Trinity River Authority rates was the
primary factor behind the increase in the fund’s operating expense of about $484,725. The coverage ratio
for debt for this fund was 26.57 for the fiscal year, exclusive of transfers. The slight increase in the Drainage
Utility Fund’s operating revenue increase of about $15,544 was due to new residential and commercial
construction.
General fund budgetary highlights – With the FY18 budget, resources were allocated according to the
priorities of our citizens and City Council, while maintaining the conservative fiscal approach that has
allowed Colleyville to attain and maintain an AAA bond rating. Cost increases were absorbed via
reductions in other expenses or by identifying alternative fund sources, to allow any new revenue to be
allocated for priority areas.
The FY 2018 budget took a more aggressive approach to using the most restrictive funding source first, in
order to reduce the burden on the General Fund. Approximately $200,000 of eligible expenditures were
shifted to both the Colleyville Economic Development Corporation (CEDC) Fund and the Tax Increment
Financing (TIF) Fund. This generated a General Fund operating surplus that allows high priority issues to be
addressed.
In fiscal year 2017, a compensation and classification study was performed. It was a six month effort
guided by a committee of citizens, Councilmembers, and staff and it resulted in a new compensation
structure that was implemented in fiscal year 2018. Employees earning below the new minimum salary of
their position’s pay range received a market adjustment to bring them into the new ranges, and
feathering tenured employees into their ranges based on years of service to address compression. The
Fiscal year 2018 budget reflected the City Council’s bold vision of fully implementing the
recommendations of the 2017 Compensation and Classification Study for a total cost of just over $657,000.
Also in the fiscal year 2018, the City provided a staffing level of 206 full-time equivalents (FTEs), 2 FTEs more
than in fiscal year 2017. The two new FTEs were added by bringing certain landscaping work in-house, as
opposed to paying a contractor, and did not result in any net increase to the budget. Major capital
purchases included six vehicles for the police department, a pothole patching unit for public works and
a four-wheel drive fairway mower for the Parks department.
For the year ended September 30, 2018, revenues exceeded the final budget in the General Fund due
to tax receipts being greater than anticipated, and overall expenditures were lower than the budget due
to the City’s efforts to cut down on expenditures and when possible, moving expenditures out of the
General Fund to other eligible funding sources.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
14
Refer to the General Fund Statement of Revenue, Expenditures and Changes in Fund Balances – Budget
and Actual on page 72 of this report for a detailed presentation of the actual General Fund operations
compared to both the original and final budget for fiscal year 2018.
Capital Assets
The City of Colleyville’s investment in capital assets for its governmental and business-type activities as of
September 30, 2018 amounts to $156,511,916 (net of accumulated depreciation). This investment in
capital assets includes land, building, equipment, improvements other than buildings, infrastructure, and
construction work in progress. Declines in overall asset valuations were due to accumulated
depreciation on aging assets. Major capital asset events occurring during the current fiscal year
included the following:
• Capitalized $1,336,000 in street improvements, including Glade Road ($249,000), Bedford Road
($72,000) and Bedford Road retaining wall ($1,000,000).
• Capitalized $350,000 for the Ambulance capital lease.
• Capitalized $506,000 in water and $159,000 in wastewater.
City of Colleyville’s Capital Assets at Year End
2018 2017 2018 2017 2018 2017
Land 9,178,641$ 9,178,641$ 304,839$ 304,839$ 9,483,480$ 9,483,480$
Buildings and improvements 50,400,558 50,400,558 53,922 53,922 50,454,480 50,454,480
Equipment 14,018,330 12,872,812 2,264,969 2,019,281 16,283,299 14,892,093
Infrastructure/water distribution
sewer collection 99,522,267 98,134,864 80,398,064 79,732,627 179,920,331 177,867,491
Construction in progress 4,663,882 2,309,931 1,522,362 1,100,366 6,186,244 3,410,297
Less: accumulated depreciation (65,194,999) (60,829,405) (40,620,919) (38,512,243) (105,815,918) (99,341,648)
Total capital assets, net 112,588,679$ 112,067,401$ 43,923,237$ 44,698,792$ 156,511,916$ 156,766,193$
Primary GovernmentActivities Activities
Governmental Business-type Total
Additional information on the City’s capital assets can be found in Note 5, pages 53 – 55 of this report.
Debt Administration
At the end of the current fiscal year, the City of Colleyville had total bonded debt, notes payable and
capital lease obligations of $12,217,664. Of this amount, $5,665,000 represents bonded debt backed by
the full faith and credit of the government, $6,105,000 represents bonds secured by sales tax revenues
and sewer revenues, and $365,000 represents bonds secured solely by drainage utility system revenues.
The city paid off the water and sewer revenue bonds in fiscal year 2018.
The City’s capitalized lease obligations of $637,365 pertain to the prior year lease purchase of a fire
pumper truck and mid-mount aerial platform fire apparatus and the newly added ambulance lease.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
15
Outstanding Debt and Year End
Bonds, Notes and Capitalized Lease Obligations Payable
2018 2017 2018 2017 2018 2017
General obligation bonds and
certificates of obligation 5,665,000$ 7,125,000$ -$ -$ 5,665,000$ 7,125,000$
Sales tax revenue bonds 5,680,000 6,105,000 - - 5,680,000 6,105,000
Revenue bonds payable - - 365,000 630,000 365,000 630,000
Capital lease oligations 637,365 597,110 - - 637,365 597,110
Total long-term debt 11,982,365$ 13,827,110$ 365,000$ 630,000$ 12,347,365$ 14,457,110$
Long-term debt to net
position percentage 8%10%1%1%6%7%
Activities Activities Primary Government
Governmental Business-type Total
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.
Standard
Fitch Ratings & Poor's
General Obligations Bonds AAA AAA
Water Revenue Bonds AAA AAA
In July 2016, the AAA rating on the City’s General Obligation Bonds was reaffirmed by both Standard and
Poor’s and Fitch Ratings. These are the highest bond ratings assigned to municipal debt by these
agencies. The City’s Water Works and Sewer System Revenue Bond were paid off in fiscal year 2018.
Additional information on the City of Colleyville’s long-term debt can be found in Note 7 on pages 56 –
59 of this report
Economic Factors and Next Year’s Budgets and Rates
Colleyville benefits from a strong residential base, which helps mitigate the negative effects of economic
fluctuations. Property values have rebounded from the declines experienced in fiscal years 2011 and
2012, and have experienced tremendous growth in the last several years. 2018 certified values increased
7.7% in total, compared to 2017 certified values. One of the City Council’s highest priorities is minimizing
the tax burden of our citizens. As such, careful consideration is given to the amount of revenue (and
associated tax rate) needed, as opposed to simply maintaining a tax rate that brings in ever increasing
amounts of revenue due to increased property values. Any tax rate above the effective rate (i.e., that
brings in more revenue than the prior year, excluding revenue from new construction) must be fully
justified, with the reasons for adopting such a rate clearly communicated. For fiscal year 2019, the City
had a goal of adopting the effective tax rate, which was achieved by adopting a tax rate of
$0.320800/$100 valuation, a $0.013034 reduction from the fiscal year 2018 tax rate of $0.333834/$100
valuation. This rate reduction serves to provide some relief to property owners receiving higher appraisal
values, while also providing the revenue necessary to fund programs and services.
Sales tax is the second largest revenue source; however, the City’s primary commercial corridor along
Colleyville Boulevard (SH26) continues to be under full reconstruction. The City was pleased to see a 4%
increase in sales tax revenue from the previous year even with construction. Sales tax has been budgeted
conservatively with two percent growth for fiscal year 2019, and limited growth in future years, until
reconstruction has been completed. The City led aggressive efforts in 2018 to help businesses along the
commercial corridor which included advertising grants, a business receipt competition with school district
PTAs, and gift cards mailed to all Colleyville homes.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
16
At the budget work session presentation on August 7, staff reviewed a five-year forecast for all operating
funds. That forecast includes estimates for expenditures and the revenues necessary to continue
balancing the budget. Ad valorem revenue was projected with growth of 0% in fiscal year 2019, reflecting
an effective tax rate, and sales tax was projected with limited growth for the reasons mentioned above.
The forecast for General Fund expenditures includes general cost increases of 3.2% for materials and
contractual services required each year, as well as personnel costs to continue funding appropriate
market and merit adjustments and increasing healthcare costs. These forecasts help staff and the City
Council focus on the long-term budgetary implications of current funding decisions. They also help to put
long-term goals into perspective relative to the overall resources available.
The fiscal year 2019 budget provides a staffing level of 200.5 full-time equivalents (FTEs), 4.0 FTEs less than
in fiscal year 2018. This was largely possible by eliminating layers of management within the organization
and developing a flatter organizational chart. These staffing efficiencies were all accomplished without
any layoffs, but rather through organic opportunities through vacancies. For fiscal year 2019, the City was
able to fully absorb a 7% increase in health insurance premiums as well as implement a second-dollar
health reimbursement account for employees to help offset deductible costs.
Water and wastewater base rates are directly related to the City’s budget for the Utility Fund, and rates
are set to only recover the City’s cost of operating the utility system. Based on the fiscal year 2019
budget, which includes declining debt payments and a slight increase in the number of customers, water
and wastewater base rates were lowered and the incremental difference was added to the capital
improvement plan base rate. The CIP base rate is a capital funding component of the rate structure to
ensure adequate cash funding of future utility capital projects. The total City portion of the utility bill for a
typical residential 1-inch water meter customer did not change.
Request for Information
The financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of the City’s finances. If you have questions about this report or need any additional information,
contact Shereen Gendy, Chief Financial Officer, at 100 Main Street, Colleyville, Texas 76034, or call
(817) 503-1014.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
17
Basic Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
18
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
19
Government-Wide
Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
20
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 1
Statement of Net Position
September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
21
Governmental Business-type Component
Activities Activities Total Units
ASSETS
Cash and cash equivalents 18,411,475$ 7,493,985$ 25,905,460$ 1,575,549$
Investments 24,663,490 13,085,425 37,748,915 19,479,093
Receivables (net of allowance for uncollectibles of $293,344)
Accounts 107,034 2,600,700 2,707,734 7,721
Taxes 991,869 - 991,869 -
Loans 1,405,750 - 1,405,750 -
Due from other governments 702,750 - 702,750 -
Inventories 1,613 161,624 163,237 -
Prepaid items 2,175 - 2,175 -
Restricted assets:
Investments - 612,987 612,987 -
Accrued interest 58,718 14,873 73,591 9,474
Net pension asset 2,523,649 368,721 2,892,370 -
Capital assets:
Non-depreciable 13,842,523 1,827,201 15,669,724 10,033,568
Depreciable (net of depreciation)98,746,156 42,096,036 140,842,192 10,151,658
Total assets 161,457,202 68,261,552 229,718,754 41,257,063
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge for refunding 11,582 2,152 13,734 -
Deferred outflows - TMRS pension and OPEB 2,535,899 339,940 2,875,839 -
Total deferred outflows of resources 2,547,481 342,092 2,889,573 -
LIABILITIES
Accounts payable 1,881,478 985,743 2,867,221 152,532
Accrued liabilities 478,292 41,153 519,445 -
Accrued interest payable 54,986 1,583 56,569 4,763
Advances from developers 141,698 212,506 354,204 -
Customer deposits 38,002 481,670 519,672 -
Non-current liabilities:
Due within one year 2,416,347 117,577 2,533,924 649,040
Due in more than one year 11,637,685 425,492 12,063,177 669,041
Total liabilities 16,648,488 2,265,724 18,914,212 1,475,376
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - TMRS pension 2,590,749 376,993 2,967,742 -
Total deferred inflows of resources 2,590,749 376,993 2,967,742 -
NET POSITION
Net investment in capital assets 100,382,597 43,560,389 143,942,986 18,867,145
Restricted:
Debt service 1,936,893 - 1,936,893 -
Court security and technology 74,767 - 74,767 -
Grant Programs 1,554 - 1,554 -
Leisure services 564,555 - 564,555 -
Economic development 4,471,253 - 4,471,253 -
Police 1,455,308 - 1,455,308 -
Unrestricted 35,878,519 22,400,538 58,279,057 20,914,542
TOTAL NET POSITION 144,765,446$ 65,960,927$ 210,726,373$ 39,781,687$
Primary Government
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Statement of Activities
For the Fiscal Year Ended September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
22
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
PRIMARY GOVERNMENT
Governmental activities:
General government 5,330,690$ 35,684$ 1,767$ 302,150$
Community development 1,387,909 1,447,081 - -
Fire and rescue 5,690,454 378,019 102,380 -
Leisure services 4,271,760 563,228 407,040 -
Maintenance 738,834 - - -
Municipal court 595,879 1,110,960 - -
Police 6,634,046 101,662 103,607 -
Streets and drainage 4,009,383 758,952 - 103,944
Interest on long-term debt 334,839 - - -
Total governmental activities 28,993,794 4,395,586 614,794 406,094
Business-type activities:
Water and sewer 15,257,125 17,332,891 - 277,639
Drainage 740,994 1,001,180 - -
Total business-type activities 15,998,119 18,334,071 - 277,639
TOTAL PRIMARY GOVERNMENT 44,991,913$ 22,729,657$ 614,794$ 683,733$
COMPONENT UNIT
Tax increment financing 1,307,440$ -$ -$ -$
Total component unit 1,307,440$ -$ -$ -$
General revenues and transfers:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Other taxes
Interest on investments
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Cumulative effect of change in
accounting principle
NET POSITION, end of year
Functions/Program Activities
Program Revenues
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Exhibit 2
23
Governmental Business-type Component
Activities Activities Total Unit
(4,991,089)$ -$ (4,991,089)$ -
59,172 - 59,172 -
(5,210,055) - (5,210,055) -
(3,301,492) - (3,301,492) -
(738,834) - (738,834) -
515,081 - 515,081 -
(6,428,777) - (6,428,777) -
(3,146,487) - (3,146,487) -
(334,839) - (334,839) -
(23,577,320) - (23,577,320) -
- 2,353,405 2,353,405 -
- 260,186 260,186 -
- 2,613,591 2,613,591 -
(23,577,320)$ 2,613,591$ (20,963,729)$ -$
-$ -$ -$ (1,307,440)$
-$ -$ -$ (1,307,440)$
15,471,246$ -$ 15,471,246$ 5,628,258$
7,578,861 - 7,578,861 -
1,982,578 - 1,982,578 -
351,715 - 351,715 -
315,611 167,427 483,038 242,419
51,620 - 51,620 -
126,859 183,685 310,544 -
260,238 (260,238) - (257,950)
26,138,728 90,874 26,229,602 5,612,727
2,561,408 2,704,465 5,265,873 4,305,287
142,572,850 63,309,625 205,882,475 35,476,400
(368,812) (53,163) (421,975) -
144,765,446$ 65,960,927$ 210,726,373$ 39,781,687$
Net (Expense) Revenue and
Changes in Net Position
Primary Government
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
24
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
25
Fund Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
26
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
27
Governmental Funds
Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
28
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 3
Balance Sheet
Governmental Funds
September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
29
Colleyville Non-Major
Debt Capital Economic Governmental Governmental
General Service Projects Development Funds Funds
ASSETS
Cash and cash equivalents 289,390$ 662,683$ 10,920,988$ 2,956,116$ 3,582,298$ 18,411,475$
Investments 9,601,219 34,969 7,067,379 1,516,371 6,443,552 24,663,490
Receivables, net of allowances for
uncollectibles:
Accounts 107,034 - - - - 107,034
Taxes 967,642 24,227 - - - 991,869
Loans 135,750 1,270,000 - - - 1,405,750
Due from other funds 4,803 - - - - 4,803
Due from other governments - - - 337,581 365,169 702,750
Inventories 1,613 - - - - 1,613
Accrued interest 28,221 - 11,982 6,421 12,094 58,718
Prepaid items 2,175 - - - - 2,175
TOTAL ASSETS 11,137,847$ 1,991,879$ 18,000,349$ 4,816,489$ 10,403,113$ 46,349,677$
LIABILITIES
Accounts payable 894,624$ -$ 646,924$ 336,482$ 3,448$ 1,881,478$
Accrued liabilities 231,845 - 222,355 8,754 15,338 478,292
Advances from developers 47,548 - 94,150 - - 141,698
Due to other funds - - - - 4,803 4,803
Customer deposits 38,002 - - - - 38,002
Total liabilities 1,212,019 - 963,429 345,236 23,589 2,544,273
DEFERRED INFLOWS OF RESOURCES
Unavailable resources 270,329 1,293,904 - - - 1,564,233
TOTAL DEFERRED INFLOWS OF RESOURCES 270,329 1,293,904 - - - 1,564,233
FUND BALANCES
Nonspendable for:
Inventories 1,613 - - - - 1,613
Prepaid items 2,175 - - - - 2,175
Restricted for:
Debt service - 697,975 - - - 697,975
Court security and technology - - - - 74,767 74,767
Grant programs - - - - 1,554 1,554
Leisure services - - 564,555 564,555
Economic development - - - 4,471,253 - 4,471,253
Police - - - - 1,455,308 1,455,308
Committed for:
Strategic initiatives 659,712 - - - - 659,712
Leisure services - - - - 1,884,152 1,884,152
Capital projects - - 17,036,920 - 4,953,463 21,990,383
Assigned for:
Capital projects - - - - 1,423,668 1,423,668
Leisure services - - - - 22,057 22,057
Unassigned 8,991,999 - - - - 8,991,999
Total fund balances 9,655,499 697,975 17,036,920 4,471,253 10,379,524 42,241,171
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 11,137,847$ 1,991,879$ 18,000,349$ 4,816,489$ 10,403,113$ 46,349,677$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 4
Reconciliation of the Governmental Funds
Balance Sheet to the Statement of Net Position
As of September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
30
TOTAL FUND BALANCES - GOVERNMENT FUNDS 42,241,171$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the governmental funds balance sheet 112,588,679
Interest payable on long-term debt does not require current financial resources;
therefore, interest payable is not reported as a liability in the governmental
funds balance sheet.(54,986)
OPEB asset has not been included in the governmental fund financial statements, as
these assets do not represent current financial resources.2,523,649
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.1,564,233
Net deferred outflows of resources related to the City's net pension liability results in
an increase in net position in the government-wide financial statements.(54,850)
Long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported in the fund financial statements.(14,054,032)
Net position of governmental activities 144,765,446$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 5
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
31
Colleyville Non-Major To ta l
Debt Capital Economic Governmental Governmental
General Service Projects Development Funds Funds
REVENUES
Taxes 20,863,094$ 830,318$ -$ 1,947,711$ 1,974,068$ 25,615,191$
Fines and forfeitures 746,988 - - - 111,721 858,709
Licenses, permits and fees 1,237,198 - - - - 1,237,198
Intergovernmental 210,377 654,200 - - 86,240 950,817
Charges for services 1,419,613 - - - 181,504 1,601,117
Capital improvement fees - - 744,465 - - 744,465
Grants/Contributions 34,570 - - - 294,028 328,598
Investment earnings 119,745 566 85,291 26,749 83,260 315,611
Miscellaneous 98,449 - - - 29,177 127,626
Total revenues 24,730,034 1,485,084 829,756 1,974,460 2,759,998 31,779,332
EXPENDITURES
Current:
General government 4,481,360 57,974 75,326 169,545 4,784,205
Community development and engineering 1,342,270 - 7,554 - 0 1,349,824
Fire and rescue 4,913,773 - - - 29,166 4,942,939
Leisure services 2,514,730 - - 540,232 227,891 3,282,853
Maintenance 701,424 - - - - 701,424
Municipal court 390,348 - - - 205,531 595,879
Police services 4,775,859 - - - 978,611 5,754,470
Streets and drainage 1,201,900 - 596,452 - - 1,798,352
Capital outlay 594,141 - 3,281,922 580,270 493,869 4,950,202
Debt service:
Principal retirement - 1,776,206 - 425,000 - 2,201,206
Interest and fiscal charges - 205,943 - 169,704 - 375,647
Total expenditures 20,915,805 1,982,149 3,943,902 1,790,532 2,104,613 30,737,001
Excess (deficiency) of revenues
over (under) expenditures 3,814,229 (497,065)(3,114,146) 183,928 655,385 1,042,331
OTHER FINANCING SOURCES (USES)
Proceeds from a capital lease 356,459 - - - - 356,459
Proceeds from the sale of property 34,396 - - - 16,255 50,651
Transfers in 205,053 501,845 3,800,000 65,794 588,024 5,160,716
Transfers out (4,314,706) - - - (585,772) (4,900,478)
Total other financing sources (uses)(3,718,798) 501,845 3,800,000 65,794 18,507 667,348
Net change in fund balances 95,431 4,780 685,854 249,722 673,892 1,709,679
Fund balances, beginning of year 9,560,068 693,195 16,351,066 4,221,531 9,705,632 40,531,492
FUND BALANCES, END OF YEAR 9,655,499$ 697,975$ 17,036,920$ 4,471,253$ 10,379,524$ 42,241,171$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 6
Reconciliation of the Statement of Revenues,
Expenditures and Changes In Fund Balances of
Governmental Funds to the Statement of Activities
For the Fiscal Year Ended September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
32
TOTAL NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS 1,709,679$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount of capital assets recorded in
the current period.4,950,202
Depreciation expense on capital assets is reported in the statement of activities but does
not require the use of current financial resources. Therefore, depreciation expense is not
reported as expenditures in the governmental funds.(4,532,868)
The issuance of long-term debt (e.g. bonds) 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 position.
Also, governmental funds report the effect of premiums, discounts, and similar items when debt
is first issued, whereas the amounts are deferred and amortized in the statement of activities.
This amount is the net effect of the following items:
Proceeds from capital leases (356,459)$
Principal payments 2,201,206
Amortization of premiums and deferred losses (2,133) 1,842,614
Implementation of GASB 68 requires certain expenditures to be de-expended and recorded
as deferred. The following is the net effect of the current year pension expense ($1,344,796)
and contributions made during the year of $1,005,508.(339,288)
Current year changes in the long-term liability for compensated absences do not require
the use of current financial resources; and therefore, are not reported as expenditures
in governmental funds.(541,338)
Changes in the other post employment benefit assets and liabilities are not reported at
the fund level; however they are reported at the government-wide level.(21,937)
Current year changes in accrued interest payable do not require the use of current financial
resources; and therefore, are not reported as expenditures in governmental funds.25,568
Governmental funds do not recognize assets contributed by developers. However, in the
statement of activities the fair market value of those assets are recognized as revenue,
then allocated over their estimated useful lives and reported as depreciation expense.103,944
Certain revenues in the government-wide statement of activities that do not provide
current financial resources are not reported as revenue in the governmental funds.(635,168)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 2,561,408$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
33
Proprietary Funds
Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 7
Statement of Net Position
Proprietary Funds
September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
34
Water and Sewer Drainage Utility
Fund Fund T otal
ASSETS
Current assets:
Cash and cash equivalents 6,884,859$ 609,126$ 7,493,985$
Investments 11,492,929 1,592,496 13,085,425
Accounts receivable, net of allowance 2,463,983 136,717 2,600,700
Inventories 161,624 - 161,624
Restricted assets:
Investments 481,670 131,317 612,987
Total current assets 21,485,065 2,469,656 23,954,721
Noncurrent assets:
Accrued interest 14,017 856 14,873
Net pension asset 302,419 66,302 368,721
Capital assets:
Land and improvements 304,839 - 304,839
Buildings 53,922 - 53,922
Utility system 76,095,052 4,303,012 80,398,064
Equipment and furniture 1,558,004 706,965 2,264,969
Construction in progress 1,522,362 - 1,522,362
Less: accumulated depreciation (38,797,782) (1,823,137) (40,620,919)
Total non-current assets 41,052,833 3,253,998 44,306,831
Total assets 62,537,898 5,723,654 68,261,552
DEFERRED OUTFLOW OF RESOURCES
Deferred charge for refunding - 2,152 2,152
Deferred outflows - TMRS pension and OPEB 284,623 55,317 339,940
Total deferred outflows of resources 284,623 57,469 342,092
LIABILITIES
Current liabilities:
Accounts payable 974,503 11,240 985,743
Accrued liabilities 35,190 5,963 41,153
Accrued interest payable - 1,583 1,583
Advances from developers 95,613 116,893 212,506
Customer deposits 481,670 - 481,670
Compensated absences - 2,577 2,577
Revenue bonds payable - 115,000 115,000
Total current liabilities 1,586,976 253,256 1,840,232
Noncurrent liabilities:
Compensated absences 93,536 18,849 112,385
Revenue bonds payable - 250,000 250,000
Net OPEB liability 51,940 11,167 63,107
Total non-current liabilities 145,476 280,016 425,492
Total liabilities 1,732,452 533,272 2,265,724
DEFERRED INFLOW OF RESOURCES
Deferred inflows - TMRS pension 310,431 66,562 376,993
Total deferred inflows of resources 310,431 66,562 376,993
NET POSITION
Net investment in capital assets 40,736,397 2,823,992 43,560,389
Unrestricted 20,043,241 2,357,297 22,400,538
TOTAL NET POSITION 60,779,638$ 5,181,289$ 65,960,927$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 8
Statement of Revenues, Expenses
and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
35
Water and Sewer Drainage Utility
Fund Fund Total
OPERATING REVENUES
Metered water sales 11,329,423$ -$ 11,329,423$
Wastewater service charges 4,382,440 - 4,382,440
Drainage service charges - 989,926 989,926
Other charges and services 1,621,028 11,254 1,632,282
Miscellaneous 183,685 - 183,685
Total operating revenues 17,516,576 1,001,180 18,517,756
OPERATING EXPENSES
Personnel services 1,882,513 425,107 2,307,620
Maintenance and contractual services 11,075,599 103,110 11,178,709
Material and supplies 268,939 52,285 321,224
Depreciation and amortization 2,028,911 147,146 2,176,057
Total operating expenses 15,255,962 727,648 15,983,610
OPERATING INCOME (LOSS)2,260,614 273,532 2,534,146
NON-OPERATING REVENUES (EXPENSES)
Interest income 132,310 35,117 167,427
Interest expense (1,163) (13,346) (14,509)
Total non-operating revenues (expenses)131,147 21,771 152,918
Income (loss) before capital contributions and transfers 2,391,761 295,303 2,687,064
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 277,639 - 277,639
Transfers out (241,206) (19,032) (260,238)
Total capital contributions and transfers 36,433 (19,032) 17,401
Change in net position 2,428,194 276,271 2,704,465
Net position, beginning of year 58,395,200 4,914,425 63,309,625
Cumulative effect of change in accounting
principle (43,756) (9,407) (53,163)
NET POSITION, END OF YEAR 60,779,638$ 5,181,289$ 65,960,927$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 9
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2018
The Notes to the Financial Statements are an integral part of this statement.
36
Water and Sewer Drainage Utility
Fund Fund Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 17,414,806$ 982,026$ 18,396,832$
Cash payments to suppliers for goods and services (11,284,509) (153,115) (11,437,624)
Cash payments to employees for services (1,810,317) (414,265) (2,224,582)
Net cash provided by (used in) operating activities 4,319,980 414,646 4,734,626
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers out (241,206) (19,032) (260,238)
Net cash provided by non-capital financing activities (241,206) (19,032) (260,238)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets (851,225) (255,925) (1,107,150)
Principal payments on bonds (155,000) (110,000) (265,000)
Interest paid of debt (2,326) (14,510) (16,836)
Net cash used in capital and related financing activities (1,008,551) (380,435) (1,388,986)
CASH FLOWS FROM INVESTING ACTIVITIES
(Purchase) sale of investments (8,783,978) (1,524,199) (10,308,177)
Earnings on investments 125,617 34,566 160,183
Net cash provided by (used in) investing activities (8,658,361) (1,489,633) (10,147,994)
Net change in cash and cash equivalents (5,588,138) (1,474,454) (7,062,592)
Cash and cash equivalents, beginning of year 12,472,997 2,083,580 14,556,577
CASH AND CASH EQUIVALENTS, END OF YEAR 6,884,859$ 609,126$ 7,493,985$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss)2,260,614$ 273,532$ 2,534,146$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization 2,028,911 147,146 2,176,057
Decrease (increase) in assets and deferred outflows of resources:
Receivables (113,680) (19,154) (132,834)
Inventory 29,218 - 29,218
Net pension asset (302,419) (66,302) (368,721)
Deferred outflows - TMRS pension and OPEB 49,712 10,743 60,455
Increase (decrease) in liabilities and deferred outflows of resources:
Accounts payable 21,991 1,427 23,418
Accrued liabilities 8,820 852 9,672
Compensated absences 27,728 1,280 29,008
Customer deposits 11,910 - 11,910
Net pension liability (61,980) (12,040) (74,020)
Net OPEB liability 51,940 11,167 63,107
Deferred inflows - TMRS pension 307,215 65,995 373,210
Net cash provided by (used in) operating activities 4,319,980$ 414,646$ 4,734,626$
NON-CASH CAPITAL AND RELATED FINANCING
Contributions of capital assets from developers 277,639$ -$ 277,639$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
37
Fiduciary Fund
Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
38
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit 10
Employee Activity Fund and Sesquicentennial Fund
Statement of Fiduciary Net Position
September 30, 2018
The Notes to Financial Statements are an integral part of this statement.
39
Agency Fund
ASSETS
Cash and cash equivalents 24,997$
TOTAL ASSETS 24,997$
LIABILITIES
Due to other agencies and individuals 24,997$
TOTAL LIABILITIES 24,997$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
40
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
41
Note 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. Reporting 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 discretely 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-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.
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 seven-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.
Discretely 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.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
42
B. Government-wide Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position 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-type 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.
C. Measurement Focus, Basis of Accounting 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, except for Agency Funds, which have no measurement focus. 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.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
43
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 Capital Projects 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.
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.
The Colleyville Economic Development 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.
Additionally, the City also reports the following funds:
Special Revenue Funds — 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 Drainage Utility 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.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
44
Fiduciary Funds
Agency 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. These funds are held for the benefit of City employees and to benefit the
City's historical purposes.
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 Equivalents and Investments
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.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and
short-term investments with original maturities of three months or less from the date of acquisition.
Investments for the City are reported at fair value, except for the position in investment pools. The City's
investment in pools are reported at the net asset value per share (which approximates fair value) even
though it is calculated using the amortized cost method.
E. Receivables and Payables
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.
The allowance for uncollectible accounts receivable for utility billing is estimated as a percentage of
sales calculated based on historical experience. Ambulance receivables in excess of 180 days
comprise the ambulance allowance for uncollectables. The allowance for uncollectable accounts for
capias warrants is set at 90% of outstanding receivables.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
45
Property taxes are imposed nonexchange revenues. Assets from imposed nonexchange transactions
are recorded when the entity has enforceable legal claim to the asset, or when the entity receives
resources, whichever comes first. The enforceable legal claim date for property taxes is
the assessment date. The assessment date has been designated in the enabling legislation as of
October 1. The City's property tax is levied on the assessed value listed as of the prior January 1. Taxes
are due upon receipt of the tax bill. All unpaid taxes become delinquent if not paid before
February 1 of the current fiscal year.
F. Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of expendable supplies
and vehicle repair parts. The cost of such inventories is recorded as expenditures/expenses when
consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both the government-wide and fund financial statements. The cost of prepaid
items is recorded as expenditures/expenses when consumed rather than when purchased.
G. 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 acquisition cost, which is the
price that would be paid to acquire an asset with equivalent service potential at the acquisition date.
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 15-50
Improvements 20-50
Equipment 5-10
Infrastructure (streets and drainage)50
Water distribution/sewer collection 5-40
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
46
H. 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.
All vacation and sick pay is accrued when incurred in the government-wide and proprietary fund
financial statements.
I. Long-term Obligations
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 position.
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 another 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.
J. Fund Balance Classification
The governmental fund financial statements present fund balances based on classifications that
comprise a hierarchy that is based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which amounts in the respective governmental funds can be
spent. The classifications used in the governmental fund financial statements are as follows:
Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not
in spendable form or (b) are legally or contractually required to be maintained intact. Nonspendable
items are not expected to be converted to cash or are not expected to be converted to cash within the
next year.
Restricted: This classification includes amounts for which constraints have been placed on the use of the
resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments, or (b) imposed by law through constitutional provisions or enabling legislation.
Committed: This classification includes amounts that can be used only for specific purposes pursuant to
constraints imposed by resolution of the City Council, the City's highest level of decision making authority.
These amounts cannot be used for any other purpose unless the Council removes or changes the
specified use by taking the same type of action that was employed when the funds were initially
committed. This classification also includes contractual obligations to the extent that existing resources
have been specifically committed for use in satisfying those contractual requirements.
Assigned: This classification includes amounts that are constrained by the City's intent to be used for a
specific purpose but are neither restricted nor committed. This is done through resolution of the City
Council. This intent can be expressed by the Chief Financial Officer.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
47
Unassigned: This classification includes the residual fund balance for the General Fund. The unassigned
classification also includes negative residual fund balance of any other governmental fund that cannot
be eliminated by offsetting of assigned fund balance amounts.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is
available, the City considers restricted funds to have been spent first. When an expenditure is incurred for
which committed, assigned, or unassigned fund balances are available, the City considers amounts to
have been spent first out of committed funds, then assigned funds, and finally unassigned funds.
K. Minimum Unassigned Fund Balance
It is the goal of the City to achieve and maintain an unassigned fund balance in the General Fund equal
to three months of that year's budgeted expenditures for both the General and Utility Funds. The City
Council may declare a fiscal emergency and withdraw any amount of the unassigned General and Utility
Funds' balances for purposes of addressing the fiscal emergency. Any such action must also provide for
necessary appropriations to restore the designated fund balance to the balance within a three-year
period.
L. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond
or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted
net position and unrestricted net position in the government-wide and proprietary fund financial
statements, a flow assumption must be made about the order in which the resources are considered to
be applied. It is the City's policy to consider restricted net position to have been depleted before
unrestricted net position is applied.
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The City has the following items
that qualify for reporting in this category.
Deferred charges on refundings – A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over
the shorter of the life of the refunded or refunding debt.
Pension/OPEB contributions after measurement date — These contributions are deferred and recognized
in the following fiscal year.
Difference in projected and actual earnings on pension assets and OPEB liabilities — This difference is
deferred and amortized over a closed five year period.
Difference in expected actual pension/OPEB experience — This difference is deferred and recognized
over the estimated average remaining lives of all members determined as of the measurement date.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
48
In addition to liabilities, the balance sheet will sometimes report a separate section for deferred inflows
of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of fund that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The government has one type of item, which arises only under a
modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the
item, unavailable revenue, is reported only in the governmental funds balance sheet. The
governmental funds report unavailable revenues from four sources: property taxes, municipal fines
and ambulance fees, and a note payable from the component unit. These amounts are deferred and
recognized as an inflow of resources in that period that the amounts become available. The City also
had a deferred inflow of resources for the following:
Difference in projected and actual earnings on pension assets and OPEB liabilities – The difference will be
amortized over a closed five year period.
N. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from
those estimates.
O. 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' 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.
P. Pensions
For purposes of measuring the net pension asset, pension related deferred outflows and inflows of
resources, and pension expense, City specific information about its Fiduciary Net Position in the Texas
Municipal Retirement System (TMRS) and additions to/deductions from the City's Fiduciary Net Position
have been determined on the same basis as they are reported by TMRS. For this purpose, plan
contributions are recognized in the period that compensation is reported for the employee, which is
when contributions are legally due. Benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value. Information
regarding the City's Total Pension Asset is obtained from TMRS through a report prepared for the City
by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for
Pensions.
Q. Other Post-Employment Benefits
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows
of resources related to OPEB, and OPEB expense, information has been determined based on the
City’s actuary report. For this purpose, OPEB expense recognized each fiscal year is equal to the
change in the total OPEB liability from the beginning of the year to the end of the year, adjusted for
deferred recognition of certain changes in the liability. Benefit payments are treated as being equal
to the employer’s yearly contributions for retirees. Information regarding the City’s Total OPEB Liability
is obtained from TMRS through a report prepared for the City by TMRS consulting actuary, Gabriel
Roeder Smith & Company, in compliance with Governmental Accounting Standards Board (GASB)
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
49
Note 2. Stewardship, Compliance and Accountability
Budgetary 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, Colleyville Economic Development Fund, Crime District Fund, Debt Service,
and Enterprise Funds. Budgetary control is maintained at the fund level. Internal budgets
prepared for various boards are reviewed by the City Council for expenditures of other Special
Revenue Funds. These budgeted expenditures are not formally adopted by the City Council.
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, Colleyville Economic Development Fund, Crime
District Fund, 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.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
50
Note 3. Deposits and Investments
In fiscal year 2016, the City adopted GASB Statement No. 72 (GASB 72), Fair Value Measurement and
Application. GASB 72 was issued to address accounting and financial reporting issues related to fair value
measurements.
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. As of
September 30, 2018, the City held the following fair value measurements:
Value at
September
30, 2018
Level 1
Inputs
Level 2
Inputs
Level 3
Inputs
Percent of
Total
Inv estments
Primary government:
Cash and cash equivalents:
Cash deposits - City 25,900,501$ -$ -$ -$
Petty Cash - City 4,959
Cash deposits - trust
and agency 24,997 - - -
Total cash and cash
equivalents 25,930,457 - - -
Investments not subject to
fair value:
Investment pools:
TexPool 11,825,221$ -$ -$ -$ 30%28
TexStar 10 - - - 0%30
Texas CLASS 9,015,892 - - - 23%55
LOGIC 439,754 - - - 1%34
Investments in certificates
of deposits:
Certificates of deposits 3,820,248 - - -
Investments by fair value level:
Federal Farm Credit Bonds 7,437,537 - 7,437,537 - 19%100
Federal Home Loan Bank Bonds 4,637,795 - 4,637,795 - 12%88
Freddie Mac 2,368,136 - 2,368,136 - 6%319
Total 39,544,593$ -$ 14,443,468$ -$
Component unit:
Cash and cash equivalents:
Cash deposits 1,575,549$ -$ -$ -$
Investments not subject to
fair value:
Investment pools:
Texas CLASS 4,007,061 - - - 19%55
TexPool 13,276,109 - - - 63%28
Investments by fair value level:
Federal Farm Credit Bonds 499,872 - 499,872 - 2%100
Federal Home Loan Bank Bonds 1,199,812 - 1,199,812 - 6%100
Freddie Mac 513,360 - 513,360 - 2%88
Total cash and investments
of the component 21,071,763 - 2,213,044 -
Total cash and investments of the
reporting entity 86,546,813$ -$ 16,656,512$ -$
Fair Value Measurements Weighted
Average
Maturity
(Days)
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
51
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
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.
Investment Pools and non-negotiable Certificates of Deposit are measured at amortized cost or net
asset value and are exempt from fair value reporting and therefore have been excluded from the
hierarchy.
The amounts for TexStar, Texas Class, Logic and TexPool (pooled investments) are reported as
investments in the Statement of Net Position.
The Texpool, TexasClass and Logic investment pools are an external investment pool measured at
amortized cost. In order to meet the criteria to be recorded at amortized cost, the investment pool
must transact at a stable net asset value per share and maintain certain maturity, quality, liquidity
and diversification requirements within the investment pool. The investment pool transacts at a net
asset value of $1.00 per share, has weighted average maturities of sixty days or less and weighted
average lives of 120 days or less. Investments held are highly rated by nationally recognized
statistical rating organizations, have not more than 5% of portfolio with one issuer (excluding U.S.
government securities) and can meet reasonably foreseeable redemptions. Texpool has a
redemption notice period of one day and may redeem daily. The investment pool’s authority may
only impose restrictions on redemptions in the event of a general suspension of trading on major
securities markets, general banking moratorium or national state emergency that affects the pool’s
liquidity.
The TexStar investment pool is an external pool measured at NAV. TexStar’s strategy is to seek
preservation of principal, liquidity and current income through investment in a diversified portfolio of
short-term marketable securities. The City has no unfunded commitments related to the investment
pools. TexStar has a redemption notice period of one day and may redeem daily. The investment
pool’s authorities may only impose restrictions on redemptions in the event of a general suspension
of trading on major securities markets, general banking moratorium or national or state emergency
that affects the pool’s liquidity.
U.S. Government Agency Securities classified in Level 2 of the fair value hierarchy are valued using
a matrix pricing technique. Matrix pricing is used to value securities based on the securities’
relationship to benchmark quoted prices.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
52
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 540 days.
Custodial Credit Risk. The City maintains a cash and investment pool that combines cash of the
various funds in order to maximize investment opportunities. The City's policy and state statutes require
that all deposits in financial institutions be insured by the Federal Depository Insurance Corporation
(FDIC) or fully collateralized as per the Public Funds Collateral Act. The City's deposits were fully insured
or collateralized as required by state statutes as of September 30, 2018.
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
assets in investments meet the requirements as noted above.
Note 4. 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:
Water
Debt and Drainage
General Service Sewer Fee Total
Receivables:
Accounts 359,158$ 24,227$ 2,505,203$ 136,717$ 3,025,305$
Taxes 967,642 - - - 967,642
Loans 135,750 - - - 135,750
Less allowance 252,124 - 41,220 - 293,344
Net total
receivables 1,210,426$ 24,227$ 2,463,983$ 136,717$ 3,835,353$
Governmental Funds Enterprise Funds
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. The assessed value, net of exemptions,
upon which the fiscal 2018 levy was based, was $4,875,661,443.
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, 2018, was $.333834 per $100 of assessed valuation.
Taxes are due by January 31 following the levy date. Tax collections, including related penalties
and interest, was $16,690,402 for the year ended September 30, 2018. Property taxes receivable at
September 30, 2018, were $204,478.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
53
The appraisal of property within the City is the responsibility of a countywide appraisal district as
required by legislation passed by the Texas Legislature. The appraisal district is required under such
legislation to assess all property within the appraisal district on the basis of 100% of its appraised value
and is prohibited from applying any assessment ratios. The value of property within the appraisal district
must be reviewed every three years; however, the City may, at its own expense, require annual reviews
of appraised values. The City may challenge appraised values established by the appraisal district
through various appeals and, if necessary, legal action.
Note 5. Capital Assets
Capital asset activity for the year ended September 30, 2018, was as follows:
Primary Government
Beginning Capital Sales or Adjustments/Ending
Balance Acquisitions Disposals Transfers Balance
Governmental activities:
Capital assets not being depreciated:
Land 9,178,641$ -$ -$ -$ 9,178,641$
Construction-in-progress 2,309,931 3,769,392 - (1,415,441) 4,663,882
Total capital assets not
being depreciated 11,488,572 3,769,392 - (1,415,441) 13,842,523
Capital assets being depreciated:
Buildings and building improvements 50,400,558 - - - 50,400,558
Machinery and Equipment 12,872,812 1,233,236 (167,274) 79,556 14,018,330
Improvements other than buildings 98,134,864 51,518 - 1,335,885 99,522,267
Total capital assets being depreciated 161,408,234 1,284,754 (167,274) 1,415,441 163,941,155
Accumulated depreciation:
Buildings and building improvements (20,634,185) (1,368,995) - - (22,003,180)
Machinery and Equipment (9,997,434) (1,113,519) 167,274 - (10,943,679)
Improvements other than buildings (30,197,786) (2,050,354) - - (32,248,140)
Total accumulated depreciation (60,829,405) (4,532,868) 167,274 - (65,194,999)
Total capital assets being depreciated, net 100,578,829 (3,248,114) - 1,415,441 98,746,156
Governmental activities capital assets, net 112,067,401$ 521,278$ -$ -$ 112,588,679$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
54
Beginning Capital Sales or Adjustments/Ending
Balance Acquisitions Disposals Transfers Balance
Business-Type activities:
Capital assets not being depreciated:
Land 304,839$ -$ -$ -$ 304,839$
Construction in progress 1,100,366 763,269 - (341,273) 1,522,362
Total capital assets not
being depreciated 1,405,205 763,269 - (341,273) 1,827,201
Capital assets being depreciated:
Buildings and building improvements 53,922 - - - 53,922
Machinery and equipment 2,019,281 297,356 (51,668) - 2,264,969
Improvements other than buildings 79,732,627 324,164 - 341,273 80,398,064
Total capital assets being depreciated 81,805,830 621,520 (51,668) 341,273 82,716,955
Accumulated depreciation:
Buildings and building improvements (51,439) (622) - - (52,061)
Machinery and equipment (1,643,690) (210,908) 51,668 - (1,802,930)
Improvements other than buildings (36,817,114) (1,948,814) - - (38,765,928)
Total accumulated depreciation (38,512,243) (2,160,344) 51,668 - (40,620,919)
Total capital assets being depreciated, net 43,293,587 (1,538,824) - 341,273 42,096,036
Business type activities capital assets, net 44,698,792$ (775,555)$ -$ -$ 43,923,237$
Beginning Capital Sales or Adjustments/Ending
Balance Acquisitions Disposals Transfers Balance
Component unit activities:
Capital assets not being depreciated:
Construction-in-progress 12,655,623$ 1,360,225$ -$ (3,982,280)$ 10,033,568$
Total capital assets not
being depreciated 12,655,623 1,360,225 - (3,982,280) 10,033,568
Capital assets being depreciated:
Improvements other than buildings 6,878,536 62,758 - 3,982,280 10,923,574
Total capital assets being depreciated 6,878,536 62,758 - 3,982,280 10,923,574
Accumulated depreciation:
Improvements other than buildings (546,145) (225,771) - - (771,916)
Total accumulated depreciation (546,145) (225,771) - - (771,916)
Total capital assets being depreciated, net 6,332,391 (163,013) - 3,982,280 10,151,658
Component unit activities capital assets, net 18,988,014$ 1,197,212$ -$ -$ 20,185,226$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
55
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 422,939$
Public safety 1,098,751
Public works 2,096,078
Culture and recreation 915,100
Total depreciation expense -
governmental activities 4,532,868$
Business-type activities:
Water and sewer 2,013,915
Drainage utility 146,429
2,160,344$
Construction Commitments
The government has active construction projects as of September 30, 2018. The major projects are listed
as follows:
Remaining
Project Spent-to-date Commitment
Glade Road reconstruction Phase 1 1,733,074$ 270,273$
Glade Road design Phases 2-4 795,518.52 146,611.88
Glad Road (Phase 2 - Manning to Pool) - ROW 342,673.00 87,327.00
Glade Road PH II ROW Consultant 89,684.10 42,815.90
Pleasant Run - John McCain to Shelton - design 327,613.35 37,486.65
Pleasant Run - John McCain to Shelton 4,081,160.46 857,400.72
Water Project 9 20,400.00 206,200.00
Frontier Court drainage - design 41,600.00 6,400.00
McDonwell School Road and Westcoat Drive Roundabout- design 76,159.51 80,519.49
Water Project 8 - design 47,960.00 3,380.00
WW Project 3 - design 20,915.76 6,084.24
WW Project 3 - donstruction 157,404.28 463,789.22
Total 7,734,163$ 2,208,288$
Note 6. Interfund Transactions
The composition of interfund transfers as of September 30, 2018, is as follows:
Colleyville Nonmajor
Debt Capital Economic Government
General Service Projects Development Funds Total
Transfer out:
General fund -$ -$ 3,800,000$ -$ 514,706$ 4,314,706$
Nonmajor governmental funds 8,133 501,845 - 65,794 10,000 585,772
Water and wastewater 196,920 - - - 44,286 241,206
Drainage fee - - - - 19,032 19,032
Total 205,053$ 501,845$ 3,800,000$ 65,794$ 588,024$ 5,160,716$
Transfer in
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
56
Note 7. Long-term Liabilities
General Obligation Bonds
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 $35,540,000.
General obligation bonds are direct obligations and pledge the full faith and credit of the
government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal
maturing each year.
Long-term liability activity for the year ended September 30, 2018, was as follows:
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Governmental activities:
General obligation bonds and
certificates of obligation 7,125,000$ -$ (1,460,000)$ 5,665,000$ 1,510,000$
Sales tax revenue bonds 6,105,000 - (425,000) 5,680,000 445,000
Bond premiums 238,957 - (3,658) 235,299 10,020
Capital leases payable 597,112 356,459 (316,206) 637,365 193,690
Compensated absences 857,241 541,338 - 1,398,579 257,637
Net OPEB liability 371,316 66,473 - 437,789 -
Total governmental activities 15,294,626$ 964,270$ (2,204,864)$ 14,054,032$ 2,416,347$
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Business-type activities:
Revenue bonds and certificates
of obligation 630,000$ -$ (265,000)$ 365,000$ 115,000$
Bond premiums 24,939 - (24,939) - -
Compensated absences 85,954 29,008 - 114,962 2,577
Net OPEB liability 53,531 9,576 - 63,107 -
Total business-type activities 794,424$ 38,584$ (289,939)$ 543,069$ 117,577$
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Component unit:
Note payable to primary government 1,880,000$ -$ (610,000)$ 1,270,000$ 625,000$
Bond premiums 72,121 - (24,040) 48,081 24,040
Total component unit 1,952,121$ -$ (634,040)$ 1,318,081$ 649,040$
For the governmental activities, compensated absences are generally liquidated by the General
Fund.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
57
Long-term liabilities at September 30, 2018, consisted of the following:
Final Interest Business-
General Obligation Bonds and Certificates of Obligation Maturity Rates Governmental Type
$4,895,000 Series 2006, General Obligation Refunding Bonds 2019 3.64%540,000$ -$
$2,945,000 Series 2011, General Obligation Refunding Bonds 2020 2.0 - 4.0%330,000 -
$6,225,000 Series 2016, General Obligation Refunding Bonds 2027 2.0 - 3.0%4,795,000 -
5,665,000$ -$
Final Interest Business-
Governmental Revenue Bonds Maturity Rates Governmental Type
$7,330,000 Series 2013, Refunding and Improvement
Sales Tax Revenue Bonds 2029 2.88%5,680,000$ -$
$1,550,000 Series 2011, Waterworks and Wastewater
System Refunding Bonds 2021 3.47%- 365,000
5,680,000$ 365,000$
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, 2018, the City was in compliance with these
requirements.
The City's component unit, the Tax Increment Financing District, long-term liabilities at September 30, 2018,
consisted of the following:
Tax Increment Financing District
Final Int erest Component
Notes Payable Maturity Rates Unit
$2,480,000 Note payable to primary government 2020 2.0 - 4.0%1,270,000$
1,270,000$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
58
Governmental-type Activities
General Obligation Bonds and Certificates of Obligation
Fiscal Years Ending
September 30,Principal Int erest Total
2019 1,510,000$ 133,128$ 1,643,128$
2020 1,045,000 91,425 1,136,425
2021 410,000 68,750 478,750
2022 425,000 56,225 481,225
2023 435,000 43,325 478,325
2024-2027 1,840,000 74,600 1,914,600
Total 5,665,000$ 467,453$ 6,132,453$
Governmental Activities
General Revenue Bonds
Fiscal Years Ending
September 30,Principal Int erest Total
2019 445,000$ 157,176$ 602,176$
2020 460,000 144,144 604,144
2021 470,000 130,752 600,752
2022 490,000 130,752 620,752
2023 500,000 102,672 602,672
2024-2028 2,720,000 286,272 3,006,272
2029 595,000 8,568 603,568
Total 5,680,000$ 960,336$ 6,640,336$
Governmental Activities
Business-type Activities
Revenue Bonds and Certificates of Obligation
Fiscal Years Ending
September 30,Principal Interest Total
2019 115,000$ 10,670$ 125,670$
2020 125,000 6,506 131,506
2021 125,000 2,169 127,169
Total 365,000$ 19,345$ 384,345$
Business-Type Activities
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
59
Discretely Presented Component Unit – Tax Increment Financing Fund
Revenue Bonds and Certificates of Obligation
Fiscal Years Ending
September 30,Principal Interest Total
2019 625,000$ 28,725$ 653,725$
2020 645,000 9,675 654,675
Total 1,270,000$ 38,400$ 1,308,400$
Tax Increment Financing Fund
Capital Leases
The City has entered into lease agreements as lessee for financing and acquisition of vehicles and
equipment for public safety. These lease agreements qualify as capital leases for accounting purposes
and, therefore, have been recorded at the present value of its future minimum lease payments as of
the inception date.
In October 2017, the City entered into a capital lease agreement for a 2017 Ambulance. The total
amount financed was $356,459. The City will make annual payments of $49,988 through June 2022 at
an interest rate of 3.42%.
The future minimum lease obligations and the net present value of these minimum lease payments as
of September 30, 2018, were as follows:
Fiscal Years Ending
September 30,
2019 208,418$
2020 93,673
2021 95,219
2022 96,818
2023 48,484
2024-2027 194,134
Total minimum lease payments 736,746
Less: amount representing interest (99,381)
Present value of minimum lease payments 637,365$
Governmental
Activities
Note 8. Defined Benefit Pension Policies
Plan Descriptions
The City participates as one of 883 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8,
Texas Government Code (the TMRS Act) as an agency multiple-employer retirement system for
municipal employees in the State of Texas. The TMRS Act places the general administration and
management of the System with a six-member Board of Trustees. Although the Governor, with the
advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of
Texas. TMRS's defined benefit pension plan is a tax-qualified plan under Sections 401(a) of the Internal
Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that
can be obtained at www.tmrs.org.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
60
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest,
and the City-financed monetary credits with interest were used to purchase an annuity. Members
may choose to receive their retirement benefit in one of seven payments options. Members may also
choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to
12, 24, or 36 monthly payments, which cannot exceed 75% of the member's deposits and interest.
A summary of plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee)2 to 1
Years required for vesting 5
Service retirement eligibility Twenty years to any age, five
years at age 60 and above
Updated service credit 100% repeating, transfers
Annuity increase to retirees 0% of CPI
Employees Covered by Benefit Terms
At the December 31, 2017 valuation and measurement date, the following employees were covered by
the benefit –terms:
Inactive employees or beneficiaries currently receiving benefits 123
Inactive employees entitled to but not yet receiving benefits 141
Active employees 185
449
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and
the City matching percentages are with 100%, 150%, or 200%, both as adopted by the governing
body of the City. Under the state law governing TMRS, the contributions rate for each city is
determined as the estimated amount necessary to finance the cost of benefits earned by employees
during the year, with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 8.57% and 8.97% in calendar years 2017 and 2018, respectively.
The city's contributions to TMRS for the year ended September 30, 2018, were $1,150,466, and were equal
to the required contributions.
Net Pension Liability/(Asset)
The City's Net Pension Liability/(Asset) was measured as of December 31, 2017, and the Total Pension
Liability/(Asset) used to calculate the Net Pension Liability was determined by an actuarial valuation as
of that date.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
61
Actuarial Assumptions
The Total Pension Liability/(Asset) in the December 31, 2017 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.00% per year
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with
Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. Based
on the size of the city, rates are multiplied by a factor of 100%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements. For disabled annuitants,
the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustments are used
with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year-set-forward for
both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment
for younger members who become disabled. The rates are projected on a fully generational basis by
scale BB to account for future mortality improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the
experience of TMRS over the four year period from December 31, 2010 to December 31, 2014. They
were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post-retirement
mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the
Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013.
In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted
the Entry Age Normal Actuarial cost method and a one-time change to the amortization policy. Plan
assets are manages on a total return basis with an emphasis on both capital appreciation as well as
the production of income, in order to satisfy the short-term and long-term funding needs of TMRS.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
62
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimate ranges of expected future real rates of return (expected
returns, net of pension plan investment expenses and inflation) are developed for each major asset
class. These rangers are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation. In determining their best estimate of a recommended investment return
assumption under the various alternative asset allocation portfolios, GRS focused on the area between
(1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric
mean (conservative) with an adjustment for time (aggressive). The target allocation and best
estimates of arithmetic real rates of return for each major assets class in fiscal year 2018 are summarized
in the following table:
Long-Term
Expected Real
Target Rate of Return
Asset Class Allocation (Arithmetic)
Domestic equity 17.5%4.55%
International equity 17.5%6.35%
Core fixed income 10.0%1.00%
Non-core fixed income 20.0%3.90%
Real return 10.0%3.80%
Real estate 10.0%4.50%
Absolute return 10.0%3.75%
Private equity 5.0%7.50%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability/(Asset) was 6.75%. The projection of cash
flows used to determine the discount rate assumed that employee and employer contributions will
be made at the rates specified in statue. Based on that assumption, the pension plan's Fiduciary Net
Position was projected to be available to make all projected future benefit payments of current
active and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all period of projected benefit payments to determine the Total Pension
Liability/(Asset).
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
63
Changes in the Net Pension Liability/(Asset)
Total Plan Net
Pension Fiduciary Pension
Liability(Asset)Net Position Liability(Asset)
(a)(b)(a) - (b)
Balance at December 31, 2016 52,324,015$ 51,702,218$ 621,797$
Changes for the year:
Service cost 2,045,941 - 2,045,941
Interest 3,528,308 - 3,528,308
Change of benefit terms - - -
Difference between expected and
actual experience 19,139 - 19,139
Changes of assumptions - - -
Contributions - employer - 1,082,013 (1,082,013)
Contributions - employee - 898,468 (898,468)
Net investment income - 7,166,092 (7,166,092)
Benefit payments, including refunds
of employee contributions (2,151,523) (2,151,523) -
Administrative expense - (37,136) 37,136
Other changes - (1,882) 1,882
Net changes 3,441,865 6,956,032 (3,514,167)
Balance at December 31, 2017 55,765,880$ 58,658,250$ (2,892,370)$
Increase (Decrease)
The following presents the net pension liability/(asset) of the City, calculated using the discount rate of
6.75%, as well as what the City's net pension liability would be if it were calculated using a discount rate
that is one-percentage-point lower (5.75%) or one-percentage-higher (7.75%) than the current rate:
1% Decrease 1% Increase
in Discount Discount in Discount
Rate (5.75%) Rate (6.75%) Rate (7.75%)
Net pension liability(asset)4,887,914$ (2,892,370)$ (9,300,270)$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's Fiduciary Net Position is available in a separately-issued TMRS
financial report. The report may be obtained on the Internet at www.tmrs.org.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions.
For the year ended September 30, 2018, the City recognized pension expense of $1,538,670.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
64
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 156,165$ (20,575)$
Changes in actuarial assumptions 347,736 -
Difference between projected and actual investment earnings (1,485,094)
Contributions subsequent to the measurement date 875,367 -
Total 1,379,268$ (1,505,669)$
$875,367 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension
liability/(asset) for the measurement year ending December 30, 2018 (i.e. recognized in the City’s
financial statements for the year ended September 30, 2019). Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Fiscal
Net Deferred
Outfows
Years Ended (Inflows) of
September 30, Resources
2018 309,392$
2019 124,230
2020 (702,313)
2021 (733,077)
2022 -
Total (1,001,768)$
Note 9. Other Postemployment Benefits
Plan Description
The City participates in a defined benefit group-term life insurance plan known as the Supplemental
Death Benefits Fund (SDBF) administered by the Texas Municipal Retirement System (TMRS). The City has
elected, by ordinance, to participate in this program and provide group-term life insurance coverage for
their active members and retirees. As the SDBF covers both active and retiree participants, with no
segregation of assets, the SDBF is considered to be a single-employer unfunded OPEB plan.
Membership in the plan at December 31, 2017, the date of the latest actuarial valuation, consists of the
following:
Inactive employees currently receiving benefits 83
Inactive employees entitled to but not yet receiving benefits 18
Active employees 185
Total 286
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
65
Valuation of Assets
For purposes of calculating the Total OPEB Liability, the plan is considered to be unfunded and therefore
no assets are accumulated for OPEB.
Actuarial Assumptions:
The OPEB Liability in the December 31, 2017 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50%
Salar y increases 3.00% per year
Discount rate 3.31%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with
Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. Based
on the size of the city, rates are multiplied by a factor of 100%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements. For disabled annuitants,
the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustments are used
with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year-set-forward for
both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment
for younger members who become disabled. The rates are projected on a fully generational basis by
scale BB to account for future mortality improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the
experience of TMRS over the four year period from December 31, 2010 to December 31, 2014. They
were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post-retirement
mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the
Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013.
In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted
the Entry Age Normal actuarial cost method.
Discount Rate
Because the Supplemental Death Benefits Fund is considered an unfunded trust under GASB
Statement No. 75, the relevant discount rate for calculating the Total OPEB Liability is based on the
Fidelity Index’s “20-Year Municipal GO AA Index” rate as of the measurement date.
OPEB
Liability
Balance at December 31, 2016 424,847$
Changes for the year:
Service cost 21,820
Interest 16,399
Change of benefit terms -
Difference between expected and
actual experience -
Changes of assumptions 41,681
Benefit payments, including refunds
of employee contributions (3,851)
Net changes 76,049
Balance at December 31, 2017 500,896$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
66
The following presents the OPEB liability of the City, calculated using the discount rate of 3.31%, as well
as what the City's net pension liability would be if it were calculated using a discount rate that is
one-percentage-point lower (2.31%) or one-percentage-higher (4.31%) than the current rate:
1% Decrease in
Discount Discount
1% Increase
in Discount
(2.31%)Rate (3.31%)(4.31%)
Net OPEB liability 608,797$ 500,896$ 417,957$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB.
For the year ended September 30, 2018, the City recognized OPEB expense of $44,592.
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred
outflows of
Resources
Deferred
inflows of
Resources
Differences between expected and actual experience -$ -$
Changes in assumptions and other inputs 35,308 -
Contributions made subsequent to measurement date 2,977 -
Total 38,285$ -$
$2,977 reported as deferred outflows of resources related to OPEB resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the OPEB liability for the
measurement year ending December 30, 2018 (i.e. recognized in the City’s financial statements for
the year ended September 30, 2019). Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Net Deferred
Outfows
Ye ars Ending (Inflows) of
September 30,Resources
2018 6,373$
2019 6,373
2020 6,373
2021 6,373
2022 6,373
Thereafter 3,443
Total 35,308$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Basic Financial Statements
67
Note 10. 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 term of
the contracts are 35 years (water — April 2014) and 50 years (wastewater — November 2023), however
both contain language that they will continue in effect until all related bonds and refunding bonds in lieu
of debt have been paid. 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 fiscal year 2018 amounted to approximately $7,833,464 and $2,733,723,
respectively.
Note 11. Contingent Liabilities
The City has been named as a defendant or co-defendant in a number of legal actions. While the
outcome of these cases is not known at this 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.
Note 12. Risk Financing and Insurance
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. During the fiscal year 1974,
the City joined the Texas Municipal League Workers Compensation Joint Insurance Fund for risks
related to 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.
Note 13. Tax Abatements
The City negotiates Chapter 380 sales tax rebate agreements on an individual basis. The City has tax
rebate agreements with one entity as of September 30, 2018. The agreement states that the company
desires to purchase and use new building materials within the City to generate additional sales and
use tax revenue for the City. Sales taxes abated under this agreement was 80% for a total of $28,178
for the year ended September 30, 2018.
Note 14. Cumulative Effect of Change in Accounting Principle
As a result of the implementation of GASB Statement No. 75, “Accounting and Financial Reporting for
Postemployment Benefits other than Pensions”, an adjustment has been made to record the City’s
total OPEB liability as of October 1, 2017. As a result, beginning net position of the governmental
activities has been decreased by $368,812 and business-type activities has been decreased by
$53,163.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
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DRAFT FOR DISCUSSION PURPOSES ONLY –
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69
Required Supplementary Information
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
70
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DRAFT FOR DISCUSSION PURPOSES ONLY –
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71
Budgetary Comparison
Schedules
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit A-1
General Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Fiscal Year Ended September 30, 2018
See Notes to the Budgetary Comparison Schedules
72
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes 20,032,575$ 20,032,575$ 20,863,094$ 830,519$
Fines and forfeitures 920,460 920,460 746,988 (173,472)
Licenses, permits and fees 984,600 984,600 1,237,198 252,598
Intergovernmental 210,377 210,377 210,377 -
Charges for services 1,479,534 1,479,534 1,419,613 (59,921)
Grants/Contributions - - 34,570 34,570
Investment earnings 45,000 45,000 119,745 74,745
Miscellaneous 60,000 60,000 98,449 38,449
TOTAL REVENUES 23,732,546 23,732,546 24,730,034 997,488
EXPENDITURES
Current:
General government 5,145,324 5,145,324 4,481,360 663,964
Community development and engineering 1,556,643 1,556,643 1,342,270 214,373
Fire and rescue 4,972,946 4,972,946 4,913,773 59,173
Leisure services 2,649,708 2,649,708 2,514,730 134,978
Maintenance 726,724 726,724 701,424 25,300
Municipal court 438,865 438,865 390,348 48,517
Police services 4,878,543 4,878,543 4,775,859 102,684
Streets and drainage 1,690,994 1,690,994 1,201,900 489,094
Capital outlay 14,000 14,000 594,141 (580,141)
TOTAL EXPENDITURES 22,073,747 22,073,747 20,915,805 1,157,942
Excess of revenues over expenditures 1,658,799 1,658,799 3,814,229 2,155,430
OTHER FINANCING SOURCES (USES)
Proceeds from a capital lease - - 356,459 356,459
Proceeds from the sale of property 5,100 5,100 34,396 29,296
Transfers from other funds 196,920 196,920 205,053 8,133
Transfers to other funds (2,014,706) (2,014,706) (4,314,706) (2,300,000)
TOTAL OTHER FINANCING SOURCES (USES)(1,812,686) (1,812,686) (3,718,798) (1,906,112)
NET CHANGE IN FUND BALANCE (153,887) (153,887) 95,431 249,318
FUND BALANCES, beginning of year 9,560,068 9,560,068 9,560,068 -
FUND BALANCES, end of year 9,406,181$ 9,406,181$ 9,655,499$ 249,318$
Budgeted Amounts
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit A-2
Colleyville Economic Development Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Fiscal Year Ended September 30, 2018
See Notes to the Budgetary Comparison Schedules
73
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes 1,850,000$ 1,850,000$ 1,947,711$ 97,711$
Interest 9,090 9,090 26,749 17,659
Total revenues 1,859,090 1,859,090 1,974,460 115,370
EXPENDITURES
General government 94,035$ 94,035$ 75,326$ 18,709
Leisure services 1,021,885 1,016,885 540,232 476,653
Capital outlay - 847,990 580,270 267,720
Debt service:
Principal retirement 425,000 425,000 425,000 -
Interest and fiscal charges 169,704 169,704 169,704 -
Total expenditures 1,710,624 2,553,614 1,790,532 763,082
Excess (deficiency) of revenues
over (under) expenditures 148,466 (694,524) 183,928 878,452
OTHER FINANCING SOURCES (USES)
Transfers from other funds - - 65,794 65,794
Total other financing sources (uses)- - 65,794 65,794
Net change in fund balance 148,466 (694,524) 249,722 944,246
FUND BALANCE, beginning of year 4,221,531 4,221,531 4,221,531 -
FUND BALANCE, end of year 4,369,997$ 3,527,007$ 4,471,253$ 944,246$
Budgeted Amounts
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
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DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to the Budgetary Comparison Schedules
For the Fiscal Year Ended September 30, 2018
75
Budgetary Data
The City Council adheres to the following procedures in establishing the budgets reflected in the 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 taxpayers' comments.
3. Prior to September 30, the budget is legally enacted through passage of an ordinance.
4. Annual budgets are legally adopted for the General Fund, Debt Service Fund, the Colleyville
Economic Development Fund, and the Crime District Fund all on a basis consistent with
accounting principles generally accepted in the United States of America. Formal budgetary
integration is not employed for Proprietary Funds. However, the City does adopt an annual budget
for those funds for managerial control. Budgetary data for the Capital Projects Fund has not been
presented in the budgetary comparison schedules, as such funds are budgeted over the life of
the respective project and not on an annual basis. Accordingly, formal budgetary integration is
not employed for the Capital Projects Funds.
5. 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.
6. Expenditures in excess of appropriations for the year ended September 30, 2018 were:
General Fund:
Capital Outlay ($580,141)
The General Fund capital outlay expenditures exceeded appropriations by $580,141 mainly
due to the $356,459 ambulance lease, $168,396 streets equipment and $54,970 for a 14 passenger
shuttle for the senior center. This overage was funded by underspending in other functions. The
transfers to other funds was $2,300,000 due to the transfer of general fund excess fund balance to
the capital project fund in accordance with the city’s minimum fund balance policy and as
approved by council on Ordinance O-18-2058.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit A-3
Schedule of Changes in Net Pension Liability
and Related Ratios
Texas Municipal Retirement System
Last Four Measurement Years
76
Measurement Measurement Measurement Measurement
Year Year Year Year
2017 2016 2015 2014
Total pension liability:
Service cost 2,045,940$ 1,920,420$ 1,820,192$ 1,598,908$
Interest 3,528,308 3,302,291 3,149,676 2,938,763
Changes of benefit terms - - - -
Difference between expected and actual
experience 19,139 205,568 (55,444) 136,216
Change in assumptions - - 937,119 -
Benefit payments, including refunds of
employee contributions (2,151,523) (2,133,755) (1,814,665) (1,728,299)
Net change in total pension liability 3,441,864 3,294,524 4,036,878 2,945,588
Total pension liability - beginning 52,324,015 49,029,491 44,992,613 42,047,025
Total pension liability - ending (a)55,765,879 52,324,015 49,029,491 44,992,613
Plan fiduciary net position:
Contributions - employer 1,082,013 922,484 903,631 745,874
Contributions - employee 898,468 851,897 822,553 763,324
Net investment income 7,166,092 3,298,224 72,103 2,657,437
Benefit payments, including refunds of
employee contributions (2,151,523) (2,133,755) (1,814,665) (1,728,299)
Administrative expense (37,136) (37,249) (43,918) (27,747)
Other (1,882) (2,007) (2,170) (2,281)
Net change in plan fiduciary net position 6,956,032 2,899,594 (62,466) 2,408,308
Plan fiduciary net position - beginning 51,702,218 48,802,624 48,865,090 46,456,782
Plan fiduciary net position - ending (b)58,658,250 51,702,218 48,802,624 48,865,090
Net pension liability - ending (a) - (b)(2,892,371)$ 621,797$ 226,867$ (3,872,477)$
Plan fiduciary net position as a
percentage of total pension liability 105.19%98.81%99.54%108.61%
Covered payroll 12,835,255 12,169,964 11,750,753 10,904,635$
Net pension liability as a percentage
of covered payroll -22.53%5.11%1.93%-35.51% Note: Only four years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-
year schedules that are required to be presented as required supplementary information may be available initially. In these cases,
during the transition period, that information should be presented for as many periods as are available. The schedules should not
include information that is not measured in accordance with the requirements of this statement. Additional years’ information will
be displayed as it becomes available.”
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit A-4
Schedule of Contributions
Texas Municipal Retirement System
Last Five Fiscal Years
77
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2018 2017 2016 2015 2014
Actuarially determined contribution 1,538,670$ 1,048,848$ 941,907$ 868,363$ 738,034$
Contribution in relation of the actuarially
determined contribution 1,538,670 1,048,848 941,907 868,363 738,034
Contribution deficiency (excess)-$ -$ -$ -$ -$
Covered payroll 12,835,255$ 12,528,384$ 12,281,471$ 11,640,489$ 10,707,890$
Contributions as a percentage of covered
payroll 11.99%8.37%7.67%7.46%6.89%
Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the City’s fiscal year as opposed to
the time period covered by the measurement date.
Note: Only five years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-
year schedules that are required to be presented as required supplementary information may be available initially. In these cases,
during the transition period, that information should be presented for as many periods as are available. The schedules should not
include information that is not measured in accordance with the requirements of this statement. Additional years’ information will
be displayed as it becomes available.”
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to Texas Municipal Retirement System- Net Pension Asset
Required Supplementary Information
For the Fiscal Year Ended September 30, 2018
78
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 29 years
Asset Valuation Method 10 Year smoothed market; 15% soft corridor
Inflation 2.50%
Salary Increases 3.50% to 10.5% including inflation
Investment Rate of Return 6.75%
Retirement Age Experience-based table of rates that are specific
to the City's plan of benefits. Last updated for the
2015 valuation pursuant to an experience study of
the period 2010 - 2014.
Mortality RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and
female rates multiplied by 103% and projected on
a fully generational basis with scale BB
Other Information There were no benefit changes during the year.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit A-5
Schedule of Changes in Net OPEB Liability
and Related Ratios
Texas Municipal Retirement System
Last Measurement Year
79
Measurement
Year 2017
Total OPEB liability:
Service cost 21,820$
Interest 16,399
Changes of benefit terms -
Difference between expected and actual
experience -
Change in assumptions 41,681
Benefit payments, including refunds of
employee contributions (3,851)
Net changes 76,049
Net OPEB liability - beginning 424,847
Net OPEB liability - ending 500,896
Covered payroll 12,835,255
Net OPEB liability as a percentage
of covered payroll 3.90% Note: Only one year of data is presented in accordance with GASB #75. “The information for all period
for the 10-year schedules that are required to be presented as required supplementary information may
be available initially. In these cases, during the transition period, that information should be presented for
as many periods as are available. The schedules should not include information that is not measured in
accordance with the requirements of this statement. Additional years’ information will be displayed as it
becomes available.”
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Notes to Texas Municipal Retirement System- Net OPEB Liability
Required Supplementary Information
For the Fiscal Year Ended September 30, 2018
80
Inflation 2.50%
Salary Increases 3.50% to 10.5% including inflation
Discount Rate 3.31%
Retirees' share of benefit-related cost $0
Administrative expenses
Mortality rates - service retirees
Mortality rates - disabled retirees
All administratvie expenses are paid through the
Pension Trust and accounted for under reporting
requirements under GASB Statement No. 68.
RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and
female rates multiplied by 103% and projected on
a fully generational basis with scale BB.
PR2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and
female rates multiplied by 103% with a 3 year set-
forward for both males and females. The rates are
projected on a fully generational basis with scale
BB to account for future mortality improvements
subject to the 3% floor.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
81
Combining and Individual Fund
Financial Statements and Schedules
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
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Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit B-1
Debt Service Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Fiscal Year Ended September 30, 2018
83
Variance with
Final Budget -
Positive
Original Final Actual (Negative)
REVENUES
Taxes 693,367$ 693,367$ 830,318$ 136,951$
Intergovernmental 654,200 654,200 654,200 -
Interest 5,000 5,000 566 (4,434)
Total revenues 1,352,567 1,352,567 1,485,084 132,517
EXPENDITURES
Principal retirement 1,978,162$ 1,978,162$ 1,776,206 201,956
Interest and fiscal charges 1,250 1,250 205,943 (204,693)
Total expenditures 1,979,412 1,979,412 1,982,149 (2,737)
Deficiency of revenues
under expenditures (626,845) (626,845) (497,065) 129,780
OTHER FINANCING SOURCES (USES)
Transfers from other funds 501,845 501,845 501,845 -
Total other financing sources (uses)501,845 501,845 501,845 -
Net change in fund balance (125,000) (125,000) 4,780 129,780
FUND BALANCE, beginning of year 693,195 693,195 693,195 -
FUND BALANCE, end of year 568,195$ 568,195$ 697,975$ 129,780$
Budgeted Amounts
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
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85
Non-Major 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 library building for the City.
Recreational Event — This fund is used to account for activities related to special events for the City.
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.
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 court security purposes.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
86
Grant Fund — This fund is used to account for grant related activity.
Public Art — This fund is used to account for the acquisition of art to be placed in City owned facilities
with high public visibility.
Juvenile Case Manager — This fund is used to account for staff, whose primary role is handling juvenile
defendants in terms of teen court dockets, all school violations including truancy, failure to attend school
and parental noncompliance violations, and mandatory classes for drug, tobacco and alcohol
defendants, as permitted by state statute.
Hotel Tax Fund — This fund is used to account for all hotel occupancy tax revenues which are restricted
by state statute and can only be used on expenditures related to tourism activities.
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.
Colleyville Tomorrow Fund — is used to account for proceeds received on gas leases on City-owned
property to be used for capital purchases.
Parks Tomorrow Fund — This fund is used to account for proceeds received on gas leases on City-owned
parks property for parks capital projects.
Park Land 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 or construction or CEDC capital facilities. Financing is provided
primarily by the revenue from certificate of obligation bonds.
Vehicle/Equipment Replacement — This fund is used to account for the replacement of vehicle and other
capital equipment.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
87
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2018
88
Voluntary Police Asset Tree Library
Voluntary Park Library Forfeiture Preservation Donation
Cash and cash equivalents 362,815$ 98,859$ 23,292$ 316,668$ 137,002$
Investments 744,198 356,861 - - -
Due from other governments - - - - -
Accrued interest 3,211 1,540 - - -
TOTAL ASSETS 1,110,224$ 457,260$ 23,292$ 316,668$ 137,002$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$
Accrued liabilities - - - - -
Due to other funds - - - - -
TOTAL LIABILITIES - - - - -
FUND BALANCES
Restricted - - 23,292 - 137,002
Committed 1,110,224 457,260 - 316,668 -
Assigned - - - - -
Unassigned - - - - -
TOTAL FUND BALANCES 1,110,224 457,260 23,292 316,668 137,002
TOTAL LIABILITIES AND FUND BALANCES 1,110,224$ 457,260$ 23,292$ 316,668$ 137,002$
LIABILITIES AND FUND BALANCES
ASSETS
Special Revenue
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Exhibit B-2
89
Recreational Kidsville Special
Event LEOSE Crime District Maintenance Donations
14,153$ 1,554$ 377,225$ 5,813$ 58,082$
- - 785,088 - -
- - 286,437 - 45
- - - - -
14,153$ 1,554$ 1,448,750$ 5,813$ 58,127$
-$ -$ 2,463$ -$ -$
- - 14,271 - -
- - - - -
- - 16,734 - -
- 1,554 1,432,016 5,813 58,127
- - - - -
14,153 - - - -
- - - - -
14,153 1,554 1,432,016 5,813 58,127
14,153$ 1,554$ 1,448,750$ 5,813$ 58,127$
Special Revenue
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Non-Major Governmental Fund
Combining Balance Sheet
September 30, 2018
90
Court Court Juvenile Case
Technology Security Grant Fund Public Art Manager Hotel Fund
ASSETS
Cash and cash equivalents -$ 45,276$ -$ 7,904$ 13,147$ 307,143$
Investments - - - - - -
Accounts receivable 5,645 3,333 4,803 - 8,436 56,470
Accrued interest - - - - - -
TOTAL ASSETS 5,645$ 48,609$ 4,803$ 7,904$ 21,583$ 363,613$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable -$ -$ -$ -$ 3$ -$
Accrued liabilities - 135 - - 932 -
Due to other funds - - 4,803 - - -
TOTAL LIABILITIES - 135 4,803 - 935 -
FUND BALANCES
Restricted 5,645 48,474 - - 20,648 363,613
Committed - - - - - -
Assigned - - - 7,904 - -
Unassigned - - - - - -
TOTAL FUND BALANCES 5,645 48,474 - 7,904 20,648 363,613
TOTAL LIABILITIES AND FUND BALANCES 5,645$ 48,609$ 4,803$ 7,904$ 21,583$ 363,613$
Special Revenue
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Exhibit B-2
91
Total
Vehicle/ Non-Major
Colleyville Parks Park Land CEDC Capital Equipment Governmental
Tomorrow Tomorrow Dedication Project Replacement Funds
707,393$ 2,331$ 126,570$ -$ 977,071$ 3,582,298$
1,747,312 1,048,359 1,315,715 - 446,019 6,443,552
- - - - - 365,169
107 - 5,676 - 1,560 12,094
2,454,812$ 1,050,690$ 1,447,961$ -$ 1,424,650$ 10,403,113$
-$ -$ -$ -$ 982$ 3,448$
- - - - - 15,338
- - - - - 4,803
- - - - 982 23,589
- - - - - 2,096,184
2,454,812 1,050,690 1,447,961 - - 6,837,615
- - - - 1,423,668 1,445,725
- - - - - -
2,454,812 1,050,690 1,447,961 - 1,423,668 10,379,524
2,454,812$ 1,050,690$ 1,447,961$ -$ 1,424,650$ 10,403,113$
Capital Projects
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes In Fund Balances
For the Fiscal Year Ended September 30, 2018
92
Voluntary Police Asset Tree Library
Voluntary Park Library Forfeiture Preservation Donation
REVENUES
Taxes -$ -$ -$ -$ -$
Fines and forfeitures - - - 19,250 -
Intergovernmental 47,573 - - - 5,696
Charges for services - 181,504 - - -
Grants/contributions 181,504 - - - 20,286
Investment earnings 4,767 1,215 - - -
Miscellaneous - - 14,557 - -
Total revenues 233,844 182,719 14,557 19,250 25,982
EXPENDITURES
Current:
General government - - - 14,278 -
Community development and engineering - - - - -
Fire and rescue - - - - -
Leisure services - 154,486 - - 26,275
Municipal court - - - - -
Police services - - 342 - -
Capital outlay - - - - -
Debt service:
Principal retirement - - - - -
Interest and fiscal charges - - - - -
Total expenditures - 154,486 342 14,278 26,275
Excess (deficiency) of revenues over
expenditures 233,844 28,233 14,215 4,972 (293)
OTHER FINANCING SOURCES (USES)
Proceeds from the sale of property - - - - -
Transfers from other funds - - - - -
Transfers to other funds - - - - -
Total other financing sources (uses)- - - - -
NET CHANGE IN FUND BALANCES 233,844 28,233 14,215 4,972 (293)
FUND BALANCES, BEGINNING OF YEAR 876,380 429,027 9,077 311,696 137,295
FUND BALANCES, END OF YEAR 1,110,224$ 457,260$ 23,292$ 316,668$ 137,002$
Special Revenue
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Exhibit B-3
93
Recreational Kidsville Special
Event LEOSE Crime District Maintenance Donations
-$ -$ 1,732,409$ -$ -$
20 - - - -
- 3,977 - - -
- - - - -
11,507 - - - 24,731
- - 13,428 - -
4,888 - - - -
16,415 3,977 1,745,837 - 24,731
- - - - -
- - - - -
- 2,961 - - 16,392
12,963 - - 2,595 7,254
- - - - -
- 2,859 924,679 - 4,544
- - 444,502 - -
- - - - -
- - - - -
12,963 5,820 1,369,181 2,595 28,190
3,452 (1,843) 376,656 (2,595) (3,459)
- - 16,255 - -
- - - - -
- - (511,845) - -
- - (495,590) - -
3,452 (1,843) (118,934) (2,595) (3,459)
10,701 3,397 1,550,950 8,408 61,586
14,153$ 1,554$ 1,432,016$ 5,813$ 58,127$
Special Revenue
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Year Ended September 30, 2018
94
Court Court Public Juvenile Case Hotel
Technology Security Grant Fund Art Manager Fund
REVENUES
Taxes -$ -$ -$ -$ -$ 241,659$
Fines and forfeitures 19,620 14,693 - - 58,138 -
Intergovernmental 22,580 6,414 - - - -
Licenses, permits and fees - - - - - -
Grants/contributions - - 56,000 - - -
Investment earnings - - - - - -
Miscellaneous - - - - - -
Total revenues 42,200 21,107 56,000 - 58,138 241,659
EXPENDITURES
Current:
General government - - - - - -
Community development and engineering - - - - - -
Fire and rescue - - 9,813 - - -
Leisure services - - - - - 24,318
Municipal court 111,733 32,567 - - 61,231 -
Police services - - 46,187 - - -
Capital outlay - - - - - -
Debt service:
Principal retirement - - - - - -
Interest and fiscal charges - - - - - -
Total expenditures 111,733 32,567 56,000 - 61,231 24,318
Excess (deficiency) of revenues over
expenditures (69,533) (11,460) - - (3,093) 217,341
OTHER FINANCING SOURCES (USES)
Proceeds from the sale of property - - - - - -
Transfers from other funds - - - - - -
Transfers to other funds - - (8,133) - - -
Total other financing sources (uses)- - (8,133) - - -
NET CHANGE IN FUND BALANCES (69,533) (11,460) (8,133) - (3,093) 217,341
FUND BALANCES, BEGINNING OF YEAR 75,178 59,934 8,133 7,904 23,741 146,272
FUND BALANCES, END OF YEAR 5,645$ 48,474$ -$ 7,904$ 20,648$ 363,613$
Special Revenue
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Exhibit B-3
95
Total
Vehicle/ Non-Major
Colleyville Parks Park Land CEDC Capital Equipment Governmental
Tomorrow Tomorrow Dedication Project Replacement Funds
-$ -$ -$ -$ -$ 1,974,068$
- - - - - 111,721
- - - - - 86,240
- - - - - 181,504
- - - - - 294,028
31,658 17,053 12,000 - 3,139 83,260
- - 9,732 - - 29,177
31,658 17,053 21,732 - 3,139 2,759,998
- - - - 155,267 169,545
- - - - - -
- - - - - 29,166
- - - - - 227,891
- - - - - 205,531
- - - - - 978,611
- - - - 49,367 493,869
- - - - - -
- - - - - -
- - - - 204,634 2,104,613
31,658 17,053 21,732 - (201,495) 655,385
- - - - - 16,255
63,318 - - - 524,706 588,024
- - - (65,794) - (585,772)
63,318 - - (65,794) 524,706 18,507
94,976 17,053 21,732 (65,794) 323,211 673,892
2,359,836 1,033,637 1,426,229 65,794 1,100,457 9,705,632
2,454,812$ 1,050,690$ 1,447,961$ -$ 1,423,668$ 10,379,524$
Capital Projects
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit B-4
Crime District Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Fiscal Year Ended September 30, 2018
96
Variance with
Final Budget -
Positive
Original F inal Actual (Negative)
REVENUES
Ad valorem taxes 1,700,000$ 1,700,000$ 1,732,409$ 32,409$
Interest 1,500 1,500 13,428 11,928
Total revenues 1,701,500 1,701,500 1,745,837 44,337
EXPENDITURES
Police services 1,433,560 1,433,560 1,369,181 64,379
Total expenditures 1,433,560 1,433,560 1,369,181 64,379
Excess of revenues
over expenditures 267,940 267,940 376,656 108,716
OTHER FINANCING SOURCES (USES)
Proceeds from the sale of property - - 16,255 16,255
Transfers to other funds (511,845) (511,845) (511,845) -
Total other financing sources (uses)(511,845) (511,845) (495,590) 16,255
Net change in fund balance (243,905) (243,905) (118,934) 124,971
FUND BALANCE, beginning of year 1,550,950 1,550,950 1,550,950 -
FUND BALANCE, end of year 1,307,045$ 1,307,045$ 1,432,016$ 124,971$
Budgeted Amounts
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
97
Agency Funds
The Agency Funds are used to account for resources held for others in a custodial capacity. The City
maintains the following Agency Fund:
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.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit C-1
Employee Activity Fund and Sesquicentennial Fund
Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended September 30, 2018
98
Employee
Activity Sesquicentennial
Fund Fund Total
Cash and cash equivalents 3,963$ 21,034$ 24,997$
TOTAL ASSETS 3,963$ 21,034$ 24,997$
Due to other agencies and individuals 3,963$ 21,034$ 24,997$
TOTAL LIABILITIES 3,963$ 21,034$ 24,997$
ASSETS
LIABILITIES
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Exhibit C-2
Employee Activity Fund and Sesquicentennial Fund
Combing Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended September 30, 2018
99
Balance Balance
10/1/2017 Additions Deletions 9/30/2018
ASSETS
Cash and cash equivalents 4,700$ 3,568$ (4,305)$ 3,963$
TOTAL ASSETS 4,700$ 3,568$ (4,305)$ 3,963$
LIABILITIES
Due to other agencies and individuals 4,700$ 3,568$ (4,305)$ 3,963$
TOTAL LIABILITIES 4,700$ 3,568$ (4,305)$ 3,963$
Balance Balance
10/1/2017 Additions Deletions 9/30/2018
ASSETS
Cash and cash equivalents 20,546$ 528$ (40)$ 21,034$
TOTAL ASSETS 20,546$ 528$ (40)$ 21,034$
LIABILITIES
Due to other agencies and individuals 20,546$ 528$ (40)$ 21,034$
TOTAL LIABILITIES 20,546$ 528$ (40)$ 21,034$
Balance Balance
10/1/2017 Additions Deletions 9/30/2018
ASSETS
Cash and cash equivalents 25,246$ 4,096$ (4,345)$ 24,997$
TOTAL ASSETS 25,246$ 4,096$ (4,345)$ 24,997$
LIABILITIES
Due to other agencies and individuals 25,246$ 4,096$ (4,345)$ 24,997$
TOTAL LIABILITIES 25,246$ 4,096$ (4,345)$ 24,997$
Employee Activity Fund
Sesquicentennial Fund
Total Agency Funds
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
100
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
101
Statistical Section
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
102
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
103
Statistical Section
This part of the City of Colleyville comprehensive annual financial report present detailed information as
a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the government's overall financial health.
Contents:
Financial Trends Information .................................................................................................................................. 104
These schedules contain trend information intended to help the reader understand how the District's
financial position has changed over time.
Revenue Capacity Information ............................................................................................................................ 110
These schedules contain information intended to help the reader assess the District's most significant
revenue source, state tax collections.
Debt Capacity Information ................................................................................................................................... 115
These schedules contain information intended to assist users in understanding and assessing the District's
current levels of outstanding debt and the ability to issue additional debt.
Demographic and Economic Information ......................................................................................................... 120
These schedules provide demographic and economic indicators intended to help the readers
understand the socioeconomic environment within which the District's financial activities take place.
Operating Information ........................................................................................................................................... 123
These schedules provide contextual information about the District's operations and resources intended to
assist readers in using financial statement information to understand and assess the District's economic
condition.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Unaudited)
104
2009 2010 2011 2012 2013 2014
Governmental activities
Net investment in capital assets 79,243,497$ 81,970,674$ 83,166,142$ 83,211,988$ 84,414,252$ 89,754,051$
Restricted for:
Debt service 1,040,896 1,057,699 1,106,893 1,159,092 857,143 831,073
Court Security and technology - - 153,420 91,637 101,411 109,766
Grant programs - - 23,208 21,116 16,489 9,190
Leisure services - - 201,184 207,736 207,770 224,064
Economic development - - 1,863,900 1,998,845 2,277,373 2,733,995
Police - - 994,913 1,143,454 1,223,271 1,403,502
Unrestricted 27,498,864 25,936,703 24,265,699 27,752,287 27,113,566 30,119,775
Total governmental activities net position 107,783,257$ 108,965,076$ 111,775,359$ 115,586,155$ 116,211,275$ 125,185,416$
Business-type activities
Net investment in capital assets 39,174,562$ 39,080,043$ 38,892,098$ 38,395,708$ 39,269,943$ 41,567,161$
Restricted for:
Debt service 987,181 983,225 662,050 - - -
Unrestricted 8,127,736 7,747,336 10,111,776 12,332,238 13,702,724 14,827,594
Total business-type activities net position 48,289,479$ 47,810,604$ 49,665,924$ 50,727,946$ 52,972,667$ 56,394,755$
Primary government
Net investment in capital assets 118,418,059$ 121,050,717$ 122,058,240$ 121,607,696$ 123,684,195$ 131,321,212$
Restricted for:
Debt service 2,028,077 2,040,924 1,768,943 1,159,092 857,143 831,073
Court Security and technology - - 153,420 91,637 101,411 109,766
Grant programs - - 23,208 21,116 16,489 9,190
Leisure services - - 201,184 207,736 207,770 224,064
Economic development - - 1,863,900 1,998,845 2,277,373 2,733,995
Streets and drainage - - - - - -
Police - - 994,913 1,143,454 1,223,271 1,403,502
Unrestricted 35,626,600 33,684,039 34,377,475 40,084,525 40,816,290 44,947,369
Total primary governmental net position 156,072,736$ 156,775,680$ 161,441,283$ 166,314,101$ 169,183,942$ 181,580,171$
Source: Comprehensive Annual Financial Report
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Table 1
105
2015 2016 2017 2018
98,958,693$ 97,982,160$ 99,881,334$ 100,382,597$
744,295 692,093 612,641 1,936,893
154,901 215,142 158,853 74,767
9,844 10,751 11,530 1,554
233,472 233,290 353,561 564,555
2,975,894 3,456,897 4,221,531 4,471,253
1,485,735 1,485,771 1,560,027 1,455,308
34,519,503 36,767,262 35,773,373 35,878,519
139,082,337$ 140,843,366$ 142,572,850$ 144,765,446$
44,823,618$ 44,010,618$ 44,123,735$ 43,560,389$
- - - -
15,260,882 17,263,830 19,185,890 22,400,538
60,084,500$ 61,274,448$ 63,309,625$ 65,960,927$
143,782,311$ 141,992,778$ 144,005,069$ 143,942,986$
744,295 692,093 612,641 1,936,893
154,901 215,142 158,853 74,767
9,844 10,751 11,530 1,554
233,472 233,290 353,561 564,555
2,975,894 3,456,897 4,221,531 4,471,253
- - - -
1,485,735 1,485,771 1,560,027 1,455,308
49,780,385 54,031,092 54,959,263 58,279,057
199,166,837$ 202,117,814$ 205,882,475$ 210,726,373$
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Unaudited)
106
2009 2010 2011 2012 2013 2014
Expenses
Governmental activities:
General government 2,945,481$ 2,691,905$ 2,715,154$ 3,125,214$ 4,075,001$ 4,103,928$
Community development and engineering 1,530,901 1,645,221 1,402,669 1,397,839 1,429,755 1,613,311
Fire 4,113,793 4,419,945 4,421,496 4,321,929 4,529,225 4,625,036
Leisure services 3,941,259 4,118,769 4,191,960 4,124,619 4,106,822 3,776,068
Maintenance 455,752 423,783 412,513 400,306 494,545 575,696
Municipal court 291,724 302,756 303,839 319,445 586,709 501,604
Police 4,841,217 4,836,274 4,878,055 4,579,570 4,961,444 5,019,343
Streets and drainage 3,503,519 3,885,185 3,657,591 3,073,530 5,322,510 4,128,365
Interest on long-term debt 1,051,180 1,000,061 849,390 780,029 724,458 717,045
Total governmental activities expenses 22,674,826 23,323,899 22,832,667 22,122,481 26,230,469 25,060,396
Business-type activities:
Water and sewer 10,612,372 11,242,553 12,009,187 12,258,587 12,544,530 13,238,893
Drainage 658,016 572,234 742,160 723,994 707,647 571,886
Interest on long-term debt 331,361 296,288 - - - -
Total business-type activities expenses 11,601,749 12,111,075 12,751,347 12,982,581 13,252,177 13,810,779
Total primary government expenses 34,276,575$ 35,434,974$ 35,584,014$ 35,105,062$ 39,482,646$ 38,871,175$
Program revenues
Governmental activities:
Charges for Services:
General government 15,000$ 15,000$ 97,234$ 28,408$ 15,000$ 15,000$
Community development 666,914 647,298 868,363 1,146,518 927,690 1,387,329
Fire and rescue 271,216 235,225 305,882 335,308 308,339 377,021
Leisure services 6,595,487 468,426 1,213,167 520,433 501,260 510,991
Municipal court 1,002,008 1,213,178 970,143 1,015,804 1,271,095 1,268,447
Police 51,631 94,059 70,709 81,056 70,513 71,022
Streets and drainage 215,619 345,780 296,350 338,845 316,338 347,565
Operating grants and contributions 713,189 543,516 822,056 490,069 468,361 486,689
Capital grants and contributions 360,023 423,873 405,347 381,308 1,158,050 5,943,465
Total governmental activities program revenues 9,891,087 3,986,355 5,049,251 4,337,749 5,036,646 10,407,529
Business-type activities:
Charges for services:
Water and sewer 11,303,868 11,414,425 14,355,418 14,034,600 14,661,491 14,789,641
Drainage 874,637 897,361 903,089 918,323 928,863 939,868
Capital grants and contributions 63,293 147,014 168,365 169,464 876,660 2,707,835
Total business-type activities program revenues 12,241,798 12,458,800 15,426,872 15,122,387 16,467,014 18,437,344
Total primary government program revenues 22,132,885$ 16,445,155$ 20,476,123$ 19,460,136$ 21,503,660$ 28,844,873$
Net (expenses) revenue
Governmental activities (12,783,739)$ (19,337,544)$ (17,783,416)$ (17,784,732)$ (21,193,823)$ (14,652,867)$
Business-type activities 640,049 347,725 2,675,525 2,139,806 3,214,837 4,626,565
Total primary government net expenses (12,143,690)$ (18,989,819)$ (15,107,891)$ (15,644,926)$ (17,978,986)$ (10,026,302)$
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 12,121,420$ 12,557,716$ 12,414,948$ 12,414,457$ 12,497,692$ 12,950,832$
Franchise taxes 2,017,440 1,867,065 2,031,268 2,207,463 2,074,731 2,172,801
Sales taxes 4,718,976 4,936,484 5,056,597 5,495,730 5,902,557 6,472,195
Other 74,198 75,365 80,731 65,808 68,592 98,160
Interest on investments 471,524 76,968 95,822 108,192 77,269 39,697
Gain (Loss) on sale of capital assets 25,237 65,306 - 147,969 - 810,020
Transfers 823,797 857,622 858,879 1,081,868 1,112,540 1,180,292
Miscellaneous 77,854 82,833 55,454 74,041 85,562 61,643
Total governmental activities 20,330,446 20,519,359 20,593,699 21,595,528 21,818,943 23,785,640
Business-type activities:
Interest on investments 168,940 15,158 38,674 4,084 38,987 23,655
Gain (Loss) on sale of capital assets - 15,864 - - 103,437 40,814
Transfers (823,797) (857,622) (858,879) (1,081,868) (1,112,540) (1,180,292)
Miscellaneous - - - - - -
Total business-type activities (654,857) (826,600) (820,205) (1,077,784) (970,116) (1,115,823)
Total primary government 19,675,589$ 19,692,759$ 19,773,494$ 20,517,744$ 20,848,827$ 22,669,817$
Change in net position
Governmental activities 7,546,707$ 1,181,815$ 2,810,283$ 3,810,796$ 625,120$ 9,132,773$
Business-type activities (14,808) (478,875) 1,855,320 1,062,022 2,244,721 3,510,742
Total primary government 7,531,899$ 702,940$ 4,665,603$ 4,872,818$ 2,869,841$ 12,643,515$
Source: Comprehensive Annual Financial Report
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Table 2
107
2015 2016 2017 2018
4,676,185$ 4,449,317$ 4,881,741$ 5,330,690$
1,582,461 1,558,750 1,672,823 1,387,909
5,264,026 4,783,421 5,524,975 5,690,454
4,042,252 4,701,443 4,987,965 4,271,760
684,301 689,861 1,243,614 738,834
522,422 448,420 606,269 595,879
5,681,698 5,734,116 6,093,309 6,634,046
4,404,701 5,150,390 3,578,365 4,009,383
536,161 614,159 408,268 334,839
27,394,207 28,129,877 28,997,329 28,993,794
14,055,232 13,995,038 14,779,262 15,257,125
833,599 563,268 646,145 740,994
- - - -
14,888,831 14,558,306 15,425,407 15,998,119
42,283,038$ 42,688,183$ 44,422,736$ 44,991,913$
17,500$ 15,075$ 338,857$ 35,684$
1,587,038 1,356,581 1,148,293 1,447,081
327,264 387,705 340,630 378,019
503,098 505,203 553,633 563,228
1,474,485 1,306,924 1,181,280 1,110,960
75,415 93,566 98,859 101,662
802,551 794,169 634,918 758,952
450,559 514,845 507,616 614,794
7,712,266 319,541 1,302,174 406,094
12,950,176 5,293,609 6,106,260 5,416,474
15,800,163 15,499,159 15,956,329 17,332,891
948,565 954,642 985,636 1,001,180
2,362,261 43,104 481,413 277,639
19,110,989 16,496,905 17,423,378 18,611,710
32,061,165$ 21,790,514$ 23,529,638$ 24,028,184$
(14,444,031)$ (22,836,268)$ (22,891,069)$ (23,577,320)$
4,222,158 1,938,599 1,997,971 2,613,591
(10,221,873)$ (20,897,669)$ (20,893,098)$ (20,963,729)$
13,493,621$ 13,790,347$ 14,548,461$ 15,471,246$
2,319,723 2,206,890 7,304,507 7,578,861
6,705,914 7,252,963 2,105,881 1,982,578
107,977 106,607 263,587 351,715
100,843 142,343 148,933 315,611
- 51,849 17,000 51,620
1,178,590 895,668 63,319 260,238
82,873 150,630 168,865 126,859
23,989,541 24,597,297 24,620,553 26,138,728
52,480 76,014 100,525 167,427
5,062 71,003 - -
(1,178,590) (895,668) (63,319) (260,238)
- - - 183,685
(1,121,048) (748,651) 37,206 90,874
22,868,493$ 23,848,646$ 24,657,759$ 26,229,602$
9,545,510$ 1,761,029$ 1,729,484$ 2,561,408$
3,101,110 1,189,948 2,035,177 2,704,465
12,646,620$ 2,950,977$ 3,764,661$ 5,265,873$
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 3
Fund Balances, Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(Unaudited)
108
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General fund
Nonspendable -$ -$ 2,147$ 132,664$ 1,759$ 1,269$ 2,119$ 9,388$ 11,152$ 3,788$
Committed - - 706,942 813,536 813,536 813,536 813,536 796,438 682,156 659,712
Unassigned 8,207,420 8,813,597 10,223,232 11,762,625 11,006,716 10,080,617 8,736,746 8,719,620 8,866,760 8,991,999
Total general fund 8,207,420$ 8,813,597$ 10,932,321$ 12,708,825$ 11,822,011$ 10,895,422$ 9,552,401$ 9,525,446$ 9,560,068$ 9,655,499$
All other governmental funds
Non-spendable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted 1,121,567 1,154,570 4,425,532 4,702,200 4,757,937 5,383,007 5,689,356 6,162,352 6,998,697 7,265,412
Committed - - 12,395,726 14,385,628 14,695,028 18,982,072 20,988,217 22,372,620 22,853,666 23,874,535
Assigned - - 1,148,548 954,818 910,611 765,908 812,939 996,929 1,119,062 1,445,725
Unassigned - - - - (4,975) - - - - -
Unassigned, reported in:
Special revenue funds 7,267,350 5,664,493 - - - - - - - -
Capital projects funds 12,369,631 11,524,206 - - - - - - - -
Total all other governmental funds 20,758,548$ 18,343,269$ 17,969,806$ 20,042,646$ 20,358,601$ 25,130,987$ 27,490,512$ 29,531,901$ 30,971,425$ 32,585,672$
Source: Comprehensive Annual Financial Report
Notes: Includes encumbrances and prepaid items.
The City implemented GASB 54 in 2011
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 4
Changes In Fund Balances, Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(Unaudited)
109
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
REVENUES
Taxes 18,889,480$ 19,353,358$ 19,627,734$ 20,235,012$ 20,541,466$ 21,747,244$ 22,620,506$ 23,367,715$ 24,159,016$ 25,615,191$
Developer contribution - - - - - - - - -
Licenses, permits and fees 646,302 607,132 923,590 1,130,426 857,135 1,090,012 1,303,710 1,337,928 1,049,673 1,237,198
Capital improvement fees 208,622 334,075 281,260 322,498 300,900 333,496 785,992 766,398 612,134 744,465
Charges for services 1,028,425 1,244,146 998,221 1,051,899 1,000,954 1,043,821 1,217,654 1,023,202 1,218,194 1,601,117
Fines and forfeitures 7,129,322 917,884 1,694,993 1,030,439 1,321,927 1,577,564 1,571,510 1,398,579 1,485,658 858,709
Interest 471,524 76,968 95,823 110,550 77,269 39,697 100,842 142,330 148,909 315,611
Intergovernmental 350,468 100,807 541,709 124,056 76,506 556,954 1,377,763 224,367 668,469 950,817
Grants/Contributions 401,432 379,853 602,401 406,789 487,066 918,613 981,282 421,497 449,130 328,598
Miscellaneous 155,100 97,833 70,453 89,041 100,562 76,643 97,873 165,642 183,889 127,626
Total revenues 29,280,675 23,112,056 24,836,184 24,500,710 24,763,785 27,384,044 30,057,132 28,847,658 29,975,072 31,779,332
EXPENDITURES
General government 2,639,218 2,423,869 2,383,276 2,753,457 3,171,582 3,746,619 4,126,132 4,036,395 4,166,735 4,784,205
Community development 1,531,785 1,642,047 1,397,256 1,396,259 1,429,574 1,606,589 1,524,342 1,623,972 1,511,400 1,349,824
Fire 3,840,118 3,955,407 3,972,053 3,888,225 4,062,535 4,174,745 4,618,103 4,568,639 4,870,759 4,942,939
Police 4,588,576 4,552,947 4,596,862 4,304,710 4,670,639 4,707,315 5,143,662 5,393,431 3,295,197 5,754,470
Leisure services 3,058,332 3,173,352 3,177,878 3,049,908 3,035,583 2,702,313 2,996,371 3,588,611 727,986 3,282,853
Streets and drainage 1,917,536 2,297,719 2,052,298 1,388,970 3,597,965 2,055,631 2,407,780 3,148,848 543,129 1,798,352
Municipal court 291,893 302,172 302,666 319,084 586,911 501,027 508,566 461,393 5,498,406 595,879
Maintenance 449,806 417,946 405,911 394,830 489,685 570,011 662,480 690,007 1,515,283 701,424
Capital outlay 2,759,774 4,935,053 2,510,027 2,515,115 2,668,074 3,250,508 6,268,273 2,373,025 4,421,734 4,950,202
Debt service
Principal retirement 2,275,553 2,180,061 2,259,004 2,007,585 2,246,921 1,342,586 1,459,693 1,467,094 2,151,212 2,201,206
Interest and fiscal charges 1,033,148 944,751 838,320 757,594 697,140 716,228 524,414 563,660 420,477 375,647
Total expenditures 24,385,739 26,825,324 23,895,551 22,775,737 26,656,609 25,373,572 30,239,816 27,915,075 29,122,318 30,737,001
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,894,936 (3,713,268) 940,633 1,724,973 (1,892,824) 2,010,472 (182,684) 932,583 852,754 1,042,331
OTHER FINANCING SOURCES (USES)
Bonds issued - - 2,945,000 - - - - - - -
Refunding bonds - - - - - 7,330,000 - 6,225,000 - -
Notes payable - - - - - - - - - -
Capital lease - 981,238 - 894,534 209,425 - - - 541,073 356,459
Sale of capital assets 33,759 65,306 7,098 147,969 - 925,033 20,598 95,796 17,000 50,651
Premium on bond issue - - 6,561 - - - - 239,163 - -
Payments to escrow - - (3,012,910) - - (7,600,000) - (6,373,776) - -
Transfers in 2,338,776 1,884,896 2,458,396 3,893,584 4,189,380 7,355,334 6,497,252 5,665,493 4,552,668 5,160,716
Transfers out (1,514,979) (1,027,274) (1,599,517) (2,811,716) (3,076,840) (6,175,042) (5,318,662) (4,769,825) (4,489,349) (4,900,478)
Total other financing sources (uses)857,556 1,904,166 804,628 2,124,371 1,321,965 1,835,325 1,199,188 1,081,851 621,392 667,348
NET CHANGE IN FUND BALANCES 5,752,492$ (1,809,102)$ 1,745,261$ 3,849,344$ (570,859)$ 3,845,797$ 1,016,504$ 2,014,434$ 1,474,146$ 1,709,679$
Fiscal Year Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 5
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(Unaudited)
110
Fiscal Year
Real
Property
Personal
Property
Less: Tax-Exempt
Property
Total Taxable
Assessed Value
Total Direct Tax
Rate
2009 3,748,968,313$ 99,556,111$ 230,676,995$ 3,617,847,429$ 0.35590
2010 3,907,288,105 95,261,420 237,293,931 3,765,255,594 0.35590
2011 3,917,415,346 92,176,541 253,414,335 3,756,177,552 0.35590
2012 3,941,020,477 89,758,416 277,077,387 3,753,701,506 0.35590
2013 3,997,250,723 91,264,033 296,807,896 3,791,706,860 0.35590
2014 4,129,613,419 93,604,217 307,729,550 3,915,488,086 0.35590
2015 4,314,297,434 102,095,151 313,245,782 4,103,146,803 0.35590
2016 4,332,288,268 106,282,459 301,657,610 4,136,913,117 0.35590
2017 4,712,035,716 113,056,889 323,256,895 4,501,835,710 0.33910
2018 5,154,444,185 113,416,769 392,199,511 4,875,661,443 0.33383
Source: Tarrant Appraisal District
Note:
Estimated Market Value
Property in Tarrant County is reassessed once every two years. The Appraisal District assesses property at 100 percent of
actual value for residential and personal. Tax rates are per $100 of assessed value.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 6
Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value)
Last Ten Fiscal Years
(Unaudited)
111
Fiscal Year
Operating/
General Rate
General
Obligation
Debt Service Total Direct
Birdville
Independent
School
District
Carroll
Independent
School
District
Grapevine-
Colleyville
Independent
School
District
Hurst-Euless
Bedford
Independent
School
District
Keller
Independent
School
District
Tarrant
County
Tarrant
County
College
District
Tarrant
County
Hospital
District
2009 0.28860 0.06731 0.35591 1.41000 1.415000 1.290000 1.295500 1.416900 0.264000 0.13796 0.227897
2010 0.29864 0.05726 0.35590 1.40500 1.415000 1.290000 1.295500 1.486300 0.264000 0.13767 0.227897
2011 0.29758 0.05832 0.35590 1.42500 1.415000 1.290000 1.288200 1.530600 0.264000 0.13764 0.227897
2012 0.30881 0.04709 0.35590 1.43500 1.415100 1.320100 1.414000 1.540000 0.264000 0.14897 0.227897
2013 0.31385 0.04205 0.35590 1.43500 1.400000 1.320100 1.407500 1.540000 0.264000 0.14897 0.227897
2014 0.32442 0.03148 0.35590 1.43500 1.400000 1.320100 1.387500 1.540000 0.264000 0.14950 0.227897
2015 0.33461 0.02129 0.35590 1.43500 1.400000 1.320100 1.375000 1.540000 0.264000 0.14950 0.227897
2016 0.33624 0.01966 0.35590 1.45390 1.395000 1.320100 1.350000 1.540000 0.264000 0.14950 0.227897
2017 0.32191 0.01722 0.33913 1.45390 1.390000 1.396700 1.316000 1.520000 0.254000 0.14473 0.227897
2018 0.31600 0.01783 0.33383 1.45390 1.385000 1.396700 1.263000 1.520000 0.244000 0.14006 0.224429
Source: Tarrant Appraisal District
Notes:
City Direct Rates Overlapping Rates
Overlapping rates are those of local and county governments that apply to property owners within the City of Colleyville, Texas. Not all school district overlapping rates apply to all Colleyville
property owners because the City is served by five different independent school districts; for example, although the county property tax rates apply to all City property owners, the Grapevine-
Colleyville Independent School District rates apply only to the approximately two-thirds of City property owners whose property is located within that school district's geographic boundaries.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 7
Principal Property Tax Payers
Current Year and Five Years Ago
(Unaudited)
112
Percentage of Percentage of
Taxable Assessed Total City Taxable Taxable Assessed Total City Taxable
Taxpayer Value Assessed Value a Taxpayer Value Assessed Value b
1 KRG Colleyville LLC 33,883,995$ 0.69%Melvin & Martindale LTD 23,800,000$ 0.63%
2 Velocis Colleyville LP 33,603,245 0.69%Toll Dallas TX LLC 18,694,881 0.49%
3 Toll Dallas TX LLC 20,154,400 0.41%Oncor Electric Delivery Co LLC 15,915,723 0.42%
4 Oncor Electric Delivery Co LLC 16,036,630 0.33%LTF Real Estate Company Inc 12,304,570 0.32%
5 LTF Real Estate MP I LLC 13,685,000 0.28%RCC Village Properties LLC 8,831,175 0.23%
6 Standard Pacific of Texas Inc 12,032,695 0.25%AC Village Park Partners LLC 7,124,273 0.19%
7 Welltower Inc 10,965,235 0.22%Colleyville Riverwalk LP 6,054,975 0.16%
8 Colleyville Lofts Venture LLC 9,502,079 0.19%Hudson, Leonard 4,830,200 0.13%
9 Mainvue TX LLC 7,689,461 0.16%Wilson, Donald 4,250,700 0.11%
10 Atmos Energy/Mid Tex Division 7,046,620 0.14%Wal-Mart Real Estate Bus Trust 4,200,000 0.11%
Total 164,599,360$ 10.54%Total 106,006,497$ 8.91%
Total assessed valuation 4,875,661,443 100.00%Total assessed valuation 3,791,706,860 100.00%
Source: Tarrant Appraisal District
a Taxpayers are assessed on January 1, 2017 (2017 tax year) for the 2018 fiscal year.
b Taxpayers are assessed on January 1, 2012 (2012 tax year) for the 2013 fiscal year.
20132018
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 8
Ad Valorem Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
113
Fiscal Year
Taxes Levied for
the Fiscal Year Amount
Percentage of
Levy
Collections in
Subsequent Years Amount
Percentage of
Levy
2009 12,875,919$ 12,734,871$ 98.90%130,351$ 12,865,222$ 99.92%
2010 13,351,922 13,166,515 98.61%176,914 13,343,429 99.94%
2011 13,183,932 13,063,575 99.09%111,584 13,175,159 99.93%
2012 13,163,735 13,082,029 99.38%76,773 13,158,802 99.96%
2013 13,291,462 13,207,902 99.37%77,723 13,285,625 99.96%
2014 13,722,602 13,681,269 99.70%33,256 13,714,525 99.94%
2015 14,305,704 14,242,584 99.56%49,525 14,292,109 99.90%
2016 14,675,127 14,612,632 99.57%33,200 14,645,832 99.80%
2017 15,508,345 15,423,832 99.46%31,394 15,455,226 99.66%
2018 16,651,773 16,590,832 99.63%- 16,590,832 99.63%
Source: Tarrant County Tax Office
Total Collections
Collected within the Fiscal Year
of the Levy
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 9
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(Unaudited)
114
General Sales Tax Water and Drainage Total Percentage
Fiscal Obligation Revenue Capital Sewer Revenue Revenue Capital Primary of Personal
Year Bonds Bonds Leases Premium Bonds Bonds Leases Premium Government Income
a Per Capita a
2009 14,665,000$ 9,170,000$ 359,996$ -$ 5,200,000$ 1,870,000$ -$ -$ 31,264,996$ 18827.19%1,386$
2010 13,300,000 8,545,000 1,151,173 - 4,520,000 1,695,000 - - 29,211,173 17590.42%1,281
2011 11,510,000 8,245,000 972,170 5,905 3,600,000 1,550,000 - 99,756 25,982,831 13045.69%1,137
2012 9,975,000 7,930,000 1,709,120 5,249 2,850,000 1,345,000 - 89,780 23,904,149 12002.00%1,042
2013 8,675,000 7,600,000 1,301,624 4,593 2,085,000 1,135,000 - 79,805 20,881,022 10484.12%904
2014 7,660,000 7,330,000 974,038 - 1,310,000 915,000 - 69,830 18,258,868 9092.07%769
2015 6,920,000 6,935,000 649,345 - 850,000 690,000 - 59,854 16,104,199 8019.14%676
2016 8,550,000 6,525,000 362,251 239,163 505,000 585,000 - 49,878 16,816,292 8373.73%696
2017 7,125,000 6,105,000 597,110 238,957 155,000 475,000 - 24,939 14,721,006 7096.58%598
2018 5,665,000 5,680,000 637,365 235,299 - 365,000 - - 12,582,664 6065.75%503
Note: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
a See Table 13 for personal income and population data.
Governmental Activities Business-Type Activities
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 10
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Unaudited)
115
Percentage of
General Less: Available Actual Taxable
Fiscal Obligation Debt Service V al ue of
Year Bonds Funds Total Property a Per Capita b
2009 14,665,000$ 1,040,896$ 13,624,104$ 0.36%604$
2010 13,300,000 1,057,699 12,242,301 0.33%537
2011 11,510,000 1,106,893 10,403,107 0.28%455
2012 9,933,921 1,159,092 8,774,829 0.23%382
2013 8,639,056 857,143 7,781,913 0.20%337
2014 7,660,000 831,073 6,828,927 0.17%288
2015 6,920,000 744,295 6,175,705 0.15%259
2016 8,550,000 692,093 7,857,907 0.17%324
2017 7,363,957 612,641 6,751,316 0.14%274
2018 5,665,000 1,936,893 3,728,107 0.08%236
Note: Details regarding the city's outstanding debt can be found in the notes to the
financial statements.
a See Table 5 for property value data.
b See Table 13 for population data.
General Bonded Debt Outstanding
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
116
This Page Intentionally Left Blank
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 11
Direct and Overlapping Governmental Activities Debt
As of September 30, 2018
(Unaudited)
117
Gross Bonded
Debt
Percentage of
Debt Applicable
to Area
Share of
Overlapping
Debt
Debt repaid with property taxes
Birdville Independent School District 253,562,467$ 0.07%177,494$
Carroll Independent School District 254,924,999 0.37%943,222
Grapevine-Colleyville Independent School District 415,917,406 22.76%94,662,802
Hurst-Euless-Bedford Independent School District 299,715,000 1.58%4,735,497
Keller Independent School District 680,508,707 3.50%23,817,805
Tarrant County 294,500,000 2.96%8,717,200
Tarrant County Hospital District 19,300,000 2.96%571,280
Subtotal, overlapping debt 133,625,300
City of Colleyville (direct debt)12,217,664 100.00%12,217,664
Total direct and overlapping debt 145,842,964$
Source: Debt outstanding data provided by each school district and county.
Percentage of debt provided by the Municipal Advisory Council of Texas.
Governmental Unit
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas
Pledged-Revenue Coverage
Last Ten Fiscal Years
(Unaudited)
118
Fiscal Total Less: Operating Net Available Annual Times
Year Revenues a Expenses b Revenue Requirement c Coverage
2009 11,458,282$ 8,943,803$ 2,514,479$ 881,223$ 2.85
2010 11,427,074 9,458,355 1,968,719 893,358 2.20
2011 14,391,910 10,120,678 4,271,232 977,819 4.37
2012 13,986,067 10,395,517 3,590,550 827,947 4.34
2013 14,802,351 10,707,017 4,095,334 823,430 4.97
2014 14,852,535 11,331,749 3,520,786 819,137 4.30
2015 15,856,242 12,043,267 3,812,975 490,100 7.78
2016 15,638,670 11,965,525 3,673,145 365,325 10.05
2017 16,045,635 12,673,136 3,372,499 359,900 9.37
2018 17,648,886 13,468,257 4,180,629 157,325 26.57
a Includes operating and non-operating revenues.
b Includes operating expenses minus depreciation plus transfers out.
c Includes principal and interest.
Water and Sewer System Revenue Bonds
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
Table 12
119
Fiscal Total Less: Operating Net Available Annual Times Sales Tax Annual Times
Year Revenues a Expenses b Revenue Requirement
c Coverage Increment Requirement c Coverage
2009 889,163$ 500,677$ 388,486$ 260,138$ 1.49 1,264,385$ 643,195$ 1.97
2010 915,734 484,712 431,022 257,930 1.67 1,317,161 646,290 2.04
2011 905,271 551,049 354,222 211,142 1.68 1,319,517 644,195 2.05
2012 908,387 531,705 376,682 256,244 1.47 1,426,909 646,588 2.21
2013 930,427 541,598 388,829 251,733 1.54 1,534,635 648,365 2.37
2014 941,416 416,957 524,459 255,398 2.05 1,673,351 138,390 12.09
2015 959,833 700,939 258,894 252,847 1.02 1,725,809 600,416 2.87
2016 966,687 414,619 552,068 127,121 4.34 1,864,084 603,824 3.09
2017 996,855 493,796 503,059 128,391 3.92 1,872,563 601,872 3.11
2018 1,036,297 599,534 436,763 124,574 3.51 1,947,710 594,704 -
Drainage Revenue Bonds Sales Tax Bonds
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 13
Demographic and Economic Statistics
Last Ten Calendar Years
(Unaudited)
120
Per Capital
Fiscal Estimated Personal Personal School Unemployment
Year Population a Income Income Enrollment b Rate c
2009 22,550 166,063$ 55,170$ 13,691 8.2%
2010 22,807 166,063 55,354 13,657 7.9%
2011 22,860 199,168 65,516 13,514 8.3%
2012 22,950 199,168 65,516 13,378 6.2%
2013 23,090 199,168 65,516 13,513 6.0%
2014 23,740 200,822 66,060 13,751 5.0%
2015 23,830 200,822 66,060 13,824 4.0%
2016 24,230 200,822 66,060 13,830 4.1%
2017 24,630 207,438 68,236 13,972 3.4%
2018 25,010 207,438 66,301 13,882 2.8%
a North Central Texas Council of Governments
b Grapevine-Colleyville Independent School District
d Texas Workforce Commission
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 14
Principal Employers
Current Year and Nine Years Ago
(Unaudited)
121
Employer Employees
Percentage of
Total City
Employment Employer Employees
Percentage of
Total City
Employment
Grapevine Colleyville ISD 611 5.90%Grapevine Colleyville ISD 681 6.68%
Market Street 345 3.33%Market Street 369 3.62%
Lifetime Fitness 250 2.41%Lifetime Fitness 230 2.26%
City of Colleyville 206 1.99%City of Colleyville 188 1.84%
Covenant Christian Academy 130 1.26%Albertsons 110 1.08%
Whole Foods Market 125 1.21%Covenant Christian Academy 107 1.05%
Albertsons 118 1.14%LaHacienda Ranch 100 0.98%
LaHacienda Ranch 100 0.97%Walmart Neighborhood Market 90 0.88%
Walmart Neighborhood Market 72 0.70%Sonshine Academy 60 0.59%
US Memory Care 60 0.58%US Memory Care 60 0.59%
Total 2,017 19.47%Total 1,995 19.56%
Total Colleyville Daytime Employees 10,358 Total Colleyville Daytime Employees 10,198
Source: City of Colleyville Economic Development
2018 2009
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 15
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
(Unaudited)
122
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General government
Management services 4.00 4.00 4.00 4.00 4.00 4.00 4.00 3.75 5.00 4.20
Finance/court 6.00 6.00 6.00 6.00 8.00 8.00 8.00 8.00 9.00 9.00
Planning 3.00 2.00 2.00 2.00 2.00 4.00 3.00 4.00 4.00 4.00
Building 6.00 5.00 4.00 3.00 3.00 3.50 5.00 5.00 5.00 5.00
Other 7.50 9.50 11.00 11.00 13.00 11.63 13.52 14.14 12.14 12.80
Police
Officers 38.00 38.00 38.00 39.00 40.00 41.00 42.50 43.00 43.00 41.00
Civilians 14.00 13.00 6.00 6.00 6.00 6.50 7.00 6.50 6.00 8.00
Fire
Firefighters and officers 33.00 33.00 33.00 35.00 36.00 38.00 41.00 41.00 41.00 40.00
Civilians 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50
Other public works
Engineering 5.00 4.00 4.50 3.00 3.00 4.05 3.95 4.75 2.75 2.75
Other 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Streets 10.00 10.00 10.00 10.00 7.00 8.35 8.35 8.35 8.35 8.35
Parks and recreation 13.50 16.50 16.00 16.00 16.00 15.75 15.00 15.00 17.00 17.00
Library 8.00 9.50 11.50 11.50 12.00 13.00 13.63 13.00 13.00 13.00
Colleyville Center 4.50 4.50 4.50 4.50 3.50 4.00 4.50 4.50 4.00 4.00
Water/wastewater 29.00 28.00 24.00 24.50 23.00 24.68 25.03 24.23 25.60 24.70
Drainage 6.00 6.00 6.00 6.00 7.00 6.00 6.00 6.41 6.41 6.20
Total 191.50 194.00 184.50 185.50 187.50 196.45 204.47 205.63 206.25 204.50
Source: City budget
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 16
Operating Indicators by Function/Program
Last Ten Fiscal Years
(Unaudited)
123
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General government
Building permits issued 90 77 104 155 103 108 181 182 136 169
Building inspections conducted 5,641 6,149 6,737 8,310 8,292 7,807 7,307 8,940 10,666 11,981
Police
Physical arrests 809 764 666 653 632 863 800 918 602 715
Calls for service 23,480 12,242 27,254 48,076 61,270 58,522 51,537 43,492 34,437 33,765
Traffic violations 12,550 13,822 11,354 11,980 11,766 19,955 21,450 20,790 13,016 15,832
Fire
Emergency responses 737 762 830 724 557 627 694 1,783 1,768 1,758
Ambulance calls 693 751 765 803 829 950 959 1,037 967 1,000
Inspections 796 784 397 342 306 317 363 400 361 239
Other public works
Street resurfacing (miles)13.9 8.0 6.2 1.0 4.0 1.7 3.7 10.9 6.8 6.0
Parks and recreation
Athletic field participants 4,617 4,296 4,378 3,946 4,287 4,315 4,434 4,302 4,517 4,386
Community center rentals 507 373 410 404 398 412 452 376 405 314
Library
Volumes in collection 54,659 58,147 62,997 65,740 69,736 74,525 77,664 80,452 82,182 71,188
Total volumes borrowed 238,459 244,458 235,238 244,613 250,737 234,667 228,160 222,128 227,252 237,124
Water
Customers 8,960 9,014 9,103 9,285 9,396 9,507 9,631 9,858 9,987 10,215
Average daily consumption
(thousands of gallons)6,578 5,990 7,928 7,217 6,785 6,539 6,451 5,889 6,355 6,508
Peak daily consumption
(thousands of gallons)16,674 18,207 18,935 18,707 17,052 15,204 19,866 15,724 12,434 15,830
Wastewater
Customers 8,315 8,389 8,457 8,603 8,731 8,817 8,905 9,071 9,270 9,444
Source: City departments
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville, Texas Table 17
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
(Unaudited)
124
Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol unites 13 13 13 12 12 12 13 13 13 13
Fire
Stations 3 3 3 3 3 3 3 3 3 3
Public works
Streets (miles)312 318 282 282 282 283 283 283 289 289
Streetlights 1,168 1,188 1,169 1,169 1,175 1,175 1,227 1,269 1,269 1,338
Traffic signals 2 2 2 2 2 2 2 2 2 2
Parks and recreation
Acreage 224 224 224 224 224 224 224 225 225 225
Playgrounds 6 6 6 6 6 6 6 7 7 7
Baseball/softball diamond 9 9 9 9 9 9 9 9 9 9
Soccer fields 14 14 14 14 14 14 14 14 14 14
Community center 1 1 1 1 1 1 1 1 1 1
Water
Water mains (miles)199 200 195 201 202 204 205 206 206 206
Fire hydrants 1,340 1,345 1,362 1,389 1,389 1,403 1,422 1,507 1,517 1,521
Storage capacity 9,900 9,900 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500
(thousands of gallons)
Wastewater
Sanitary sewer (miles 166 170 162 169 170 172 172 179 180 180
Storm sewers (miles)63 63 58 64 58 60 67 69 70 70
Source: City departments
a Baseball, softball, soccer and multipurpose fields combined through 2014
Fiscal Year
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed.
City of Colleyville Page 1
City of Colleyville
Audit Committee
Agenda Briefing
City Hall
100 Main Street
Colleyville, Texas 76034
www.colleyville.com
Agenda Number 3b Agenda Date 03/05/2019 Number
Type Presentation
Department City Manager
Title
Quarterly Investment Report for the quarter ended December 31, 2018
Strategic Plan
1.4 Communicate thoroughly and strategically
1.3 Assure convenient access to public information
2.4 Demonstrate stewardship of public resources
Explanation
Investment Summary for period ending December 31, 2018:
Cash & Cash Equivalents (Local Government Investment Pools) were $70,266,800. The
total funds held by the City equaled $88,164,452 and were allocated as follows:
Current as of Last Quarter as of
12/31/2018 9/30/2018
Cash $ 5,660,207.69 $ 6,737,135.00
Sweep 13,338,876.81 20,763,304.00
Commercial Paper
Investment Pool 2,419,045.00 439,754.00
Government Only
Investment Pool 48,848,670.00 38,124,292.00
Government Issuances 14,582,431.19 15,583,011.00
CDARS 2,571,221.46 3,076,248.00
Certificates of Deposit 744,000.00 744,000.00
Total Cash & Investments $ 88,164,452.15 $ 85,467,744.00
Investment Benchmark 2.13%As of
12/31/2018
Bank Earned Income Credit 2.25%
Sweep 2.16%
Commercial Paper Investment Pool Average Quarterly Yield 2.41%
TexSTAR Government Only Investment Pool Average
Quarterly Yield 2.17%
TexPOOL Government Only Investment Pool Average
Quarterly Yield 2.11%
CLASS Government Only Investment Pool Average 2.25%
City of Colleyville Page 2
Audit Committee Agenda Briefing 3b
Quarterly Yield
Total Government Only Investment Pool Average Quarterly
Yield 2.18%
Average Weighted Yield: Agency 1.53%
Average Weighted Yield: CDARS 1.44%
Average Weighted Yield: CD'S 2.53%
Interest earnings for the quarter were $331,028 versus $221,568 for the prior
quarter, an increase of $109,460 or 49% over last quarter. The significant increase is
due to the 28% increase in funds invested in Government only investment pools and
switching to a higher yielding sweep account.
These percentages are within the guidelines of the City investment policy.
Attachments
1.December 31 2018 - Quarterly Investment Report
QUARTERLY INVESTMENT REPORT
FOR QUARTER ENDING DECEMBER 31, 2018
THIS REPORT IS IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT
AND ADOPTED INVESTMENT POLICY STRATEGY
Shereen Gendy
Karen Hines
Portfolio Investment Reportfor the Quarter Ending December 31, 2018CONSOLIDATED INVESTMENT REPORTCurrent Last QuarterAs of As ofCash and Investment Balances12/31/20189/30/2018Cash 5,660,208$ 6,737,135$ Sweep 13,338,877$ 20,763,304$ Commercial Paper Investment Pool 2,419,045$ 439,754$ Government Only Investment Pool 48,848,670$ 38,124,292$ Government Issuances14,582,431$ 15,583,011$ CDARS2,571,221$ 3,076,248$ Certificates of Deposit 744,000$ 744,000$ Total Cash & Investments88,164,452$ 85,467,744$ Investment Yields, Maturities, and InterestCurrentCurrentAs ofAs of12/31/20189/30/2018Bank Earned Income Credit2.25%1.97%Bank Earnings Allowance35,474$ 34,139$ 13 Week Treasury Benchmark2.31%2.04%Sweep2.16%0.18%Commercial Paper Investment Pool Average Quarterly Yield2.41%2.19%Commercial Paper Investment Pool Quarter's Average Weighted Maturity43 33 TexSTAR Government Only Investment Pool Average Quarterly Yield2.17%1.94%TexSTAR Government Only Investment Pool Quarter's Average Weighted Maturity36 24 TexPOOL Government Only Investment Pool Average Quarterly Yield2.11%1.87%TexPOOL Government Only Investment Pool Quarter's Average Weighted Maturity31 27 CLASS Government Only Investment Pool Average Quarterly Yield 2.25% 1.99%CLASS Government Only Investment Pool Quarter's Average Weighted Maturity 38 34 Total Government Only Investment Pool Average Quarterly Yield 2.18% 1.93%Total Government Only Investment Pool Quarter's Average Weighted Maturity 35 28 Average Weighted Yield: Agency 1.53% 1.49%Average Weighted Maturity in Days: Agency 252 319 Average Weighted Yield: CDARS 1.44% 0.63%Average Weighted Maturity in Days: CDARS 250 285 Average Weighted Yield: CD'S 2.53% 2.53%Average Weighted Maturity in Days: CD'S 455 581 Interest Earnings - Quarter 331,028$ 221,568$
Portfolio Investment Reportfor the Quarter Ending December 31, 2018CONSOLIDATED INVESTMENT REPORTCash 6%Sweep 15%Commercial Paper Investment Pool 3%Government Only Investment Pool 55%Government Issuances17%CDARS3%Certificates of Deposit 1%CASH & INVESTMENT BALANCES
Portfolio Investment Reportfor the Quarter Ending December 31, 2018CONSOLIDATED INVESTMENT REPORT Distribution by MaturityNumber1 to 90 days 21,999,812$ 13.71% 1,998,001.00$ 91 to 180 days 11,000,000$ 6.86%996,310.00$ 181 to 365 days 88,583,356$ 58.86% 8,520,921.19$ Over 365 days 32,999,263$ 20.57% 2,988,518.00$ Total1414,582,431$ 100% 14,503,750$ Distribution by Type of InvestmentNumberFederal Home Loan Bank (FHLB)4$5,197,645 36% $5,166,459Federal Farm Credit Bank (FFCB)7$6,989,916 48% $6,960,941Federal Home Loan Mortgage Corporation (FHLMC)3$2,394,870 16% $2,376,350Total1414,582,431$ 100% 14,503,750$ Outstanding Security PortfolioPurchase PricePercent (Value)Market ValueOutstanding Security Portfolio Purchase PricePercent (Value)Market Value36%, Federal Home Loan Bank (FHLB)48%, Federal Farm Credit Bank (FFCB)16%, Federal Home Loan Mortgage Corporation (FHLMC)INVESTMENT SECURITY DISTRIBUTION BY TYPE
ALL FUNDS CASH & INVESTMENT REPORTS
CASH & SWEEP CP POOLS GOV. POOLS INVESTMENTS CDARS CD'S AS OF DEC 31, 2018
Ran 2.20.19
001 GENERAL FUND - - 5,143,819 3,794,835 1,543,297 744,000 11,225,951
036 STRATEGIC INITIATIVE - - 526,784 - - - 526,784
004 DEBT SERVICE FUND 1,374,245 - 35,165 - - - 1,409,409
003 CAPITAL PROJECTS 10,048,781 816,514 4,695,912 2,289,216 512,577 - 18,362,999
012 PARK LAND DEDICATION - - 247,211 1,210,000 - - 1,457,211
032 VEHICLE AND CAPITAL REPLACEMENT 908,139 - 87,204 364,300 - - 1,359,643
034 COLLEYVILLE TOMORROW - - 2,465,368 - - - 2,465,368
035 PARKS TOMORROW - - 1,056,547 - - - 1,056,547
005 VOLUNTARY PARK FUND 40,613 - 366,868 750,000 - - 1,157,481
007 DONATIONS FUND 43,625 - - - - - 43,625
011 VOLUNTARY LIBRARY FUND 37,422 - 400,762 - - - 438,184
015 POLICE ASSET FORFEITURE - - 23,320 - - - 23,320
016 GRANTS (ADVANCE PAYMENTS)462 - - - - - 462
018 TREE PRESERVATION - - 317,019 - - - 317,019
019 LIBRARY DONATION - - 34,777 - - - 34,777
020 RECREATIONAL EVENT 14,155 - - - - - 14,155
023 LEOSE 975 - - - - - 975
027 CRIME DISTRICT - - 792,208 - - - 792,208
028 KIDSVILLE MAINTENANCE - - 5,820 - - - 5,820
029 COURT TECHNOLOGY 329 - 5,964 - - - 6,292
030 COURT SECURITY - - 49,797 - - - 49,797
033 PUBLIC ART - - 7,913 - - - 7,913
037 JUVENILE CASE MANAGER - - 11,523 - - - 11,523
038 HOTEL / MOTEL FUND - - 305,691 - - - 305,691
002 UTILITY FUND - - 5,735,098 2,704,116 515,348 - 8,954,562
039 UTILITY CAPITAL PROJECTS FUND 3,275,396 1,470,587 6,026,897 56,793 - - 10,829,673
017 DRAINAGE FEE - 131,928 1,398,625 200,000 - - 1,730,554
041 DRAINAGE CAPITAL PROJECTS FUND - - 724,094 - - - 724,094
006 SESQUICENTINIAL FUND 17,876 - 3,237 - - - 21,113
008 EMPLOYEE ACTIVITY 3,023 - - - - - 3,023
040 INSURANCE TRUST FUND (ADV PMNT) (55,684) - - - - - (55,684)
026 TIF FUND 388,530 - 18,381,047 1,713,172 - - 20,482,749
16,097,888 2,419,029 48,848,670 13,082,431 2,571,221 744,000 83,763,240
024 CEDC 2,901,197 16 - 1,500,000 - - 4,401,213
18,999,085 2,419,045 48,848,670 14,582,431 2,571,221 744,000 88,164,452
Cash and cash equivalents are just one aspect of the City’s overall financial status, and it is necessary to look at the complete financial statements/CAFR for a comprehensive assessment.
This is a management report prepared not in accordance with GASB
GOVERNMENTAL FUNDS
COLOR CODE
CITY OF COLLEYVILLE
ALL FUNDS CASH & INVESTMENT REPORT - TOTAL BY FUND
CASH & INVESTMENT
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COMPONENT UNIT
COLLEYVILLE ECON DEV CORP
GRAND TOTAL
DEBT SERVICE FUNDS
CAPITAL PROJECT FUNDS
SPECIAL REVENUE FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
1
Available Available for Approved Restricted AS OF DEC 31, 2018
Unrestricted Restricted Purpose Projects Unavailable Ran 2.20.19
001 GENERAL FUND 11,108,490 32,548 - 84,913 11,225,951
036 STRATEGIC INITIATIVE 526,784 - - - 526,784
004 DEBT SERVICE FUND - 1,409,409 - - 1,409,409
003 CAPITAL PROJECTS 8,669,634 7,034,290 2,508,453 150,623 18,362,999
012 PARK LAND DEDICATION - 1,457,211 - - 1,457,211
032 VEHICLE AND CAPITAL REPLACEMENT - 1,359,643 - - 1,359,643
034 COLLEYVILLE TOMORROW 2,465,368 - - - 2,465,368
035 PARKS TOMORROW 1,056,547 - - - 1,056,547
005 VOLUNTARY PARK FUND - 1,157,481 - - 1,157,481
007 DONATIONS FUND - 43,625 - - 43,625
011 VOLUNTARY LIBRARY FUND - 438,184 - - 438,184
015 POLICE ASSET FORFEITURE 23,320 23,320
016 GRANTS - 462 - - 462
018 TREE PRESERVATION - 317,019 - - 317,019
019 LIBRARY DONATION - 0 34,777 - 34,777
020 RECREATIONAL EVENT - 14,155 - - 14,155
023 LEOSE - 975 - - 975
027 CRIME DISTRICT - 792,208 - - 792,208
028 KIDSVILLE MAINTENANCE - 5,820 - - 5,820
029 COURT TECHNOLOGY - 6,292 - - 6,292
030 COURT SECURITY - 49,797 - - 49,797
033 PUBLIC ART - 7,913 - - 7,913
037 JUVENILE CASE MANAGER - 11,523 - - 11,523
038 HOTEL / MOTEL FUND - 305,691 - - 305,691
002 UTILITY FUND 5,480,391 2,992,501 - 481,670 8,954,562
039 UTILITY CAPITAL PROJECTS FUND 4,672,919 4,853,123 1,247,861 55,770 10,829,673
017 DRAINAGE FEE 1,598,625 - - 131,928 1,730,554
041 DRAINAGE CAPITAL PROJECTS FUND 724,094 - - - 724,094
006 SESQUICENTINIAL FUND 3,237 17,876 - - 21,113
008 EMPLOYEE ACTIVITY - - - 3,023 3,023
040 INSURANCE TRUST FUND (55,684) (55,684)
026 TIF FUND 19,732,749 - 750,000 - 20,482,749
56,038,839 22,331,067 4,541,091 852,243 83,763,240
024 CEDC 4,401,212.82 - - - 4,401,212.82
60,440,052 22,331,067 4,541,091 852,243 88,164,453
Cash and cash equivalents are just one aspect of the City’s overall financial status, and it is necessary to look at the complete financial statements/CAFR for a comprehensive assessment.
This is a management report prepared not in accordance with GASB
DEBT SERVICE FUNDS
CAPITAL PROJECT FUNDS
SPECIAL REVENUE FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COLOR CODE
CITY OF COLLEYVILLE
ALL FUNDS CASH & INVESTMENT REPORT - RESTRICTIONS BY FUND
CASH & INVESTMENTS
GOVERNMENTAL FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COMPONENT UNIT
COLLEYVILLE ECON DEV CORP
GRAND TOTAL
2
REVENUE SOURCEPURPOSE/RESTRICTION001 GENERAL FUNDM&O portion of tax rate, sales tax, charges for service, etc.General government purposes036 STRATEGIC INITIATIVESTransfers from the General FundPrograms/projects linked to the strategic plan; primarily used on eco. dev. incentives004 DEBT SERVICEDebt (I&S) portion of the tax ratePayments on debt issued003 CAPITAL PROJECTSTransfers from the General Fund, street impact fees, escrows Capital projects; some funding sources have restricted uses012 PARK LAND DEDICATIONFees on new residential & commercial developmentAcquisition of land for new park sites or improvements/expansions of existing parks (no M&O)032 VEHICLE AND CAPITAL REPLACEMENT Transfers from the General FundCommitted to server, equipment, and vehicle replacements034 COLLEYVILLE TOMORROWGas leases on City propertyCapital purchases/at Council discretion035 PARKS TOMORROWGas leases on City park propertyParks capital projects005 VOLUNTARY PARK FUNDDonations through utility billsNew or existing park capital costs (no M&O)007 DONATIONS FUNDDonationsOnly restricted if specified by donor011 VOLUNTARY LIBRARY FUNDDonations through utility billsLibrary activities‐ primarily purchase of books and materials (no M&O)015 POLICE ASSET FORFEITURESeizuresPolice operations as restricted by law016 GRANTSGrantsTrack grant actvity018 TREE PRESERVATIONTree mitigation feesTree replanting on city‐owned property019 LIBRARY DONATIONDonationsLibrary needs or as specified by donor020 RECREATIONAL EVENTEvent revenue (like sale of tables)Special events expenses023 LEOSEState of TexasPolice training027 CRIME DISTRICT (CCCPD)0.5 cent sales taxPublic safety and crime control activities028 KIDSVILLE MAINTENANCERemaining donationsKidsville maintenance029 COURT TECHNOLOGYMunicipal court technology fee Court technology repairs, replacements, and upgrades030 COURT SECURITYMunicipal court building security fee Security‐related expenses for the court (Bailiff)033 PUBLIC ART2008‐9 Transfers from General, Utility, Drainage, CEDC Funds Public Art037 JUVENILE CASE MANAGERJuvenile case manager fee Staff who handle juvenile defendants and their training038 HOTEL/MOTEL FUNDHotel/Motel taxAttract "heads in beds"; specific uses outlined in state law002 UTILITY OPERATING FUNDWater and wastewater base rates and volumetric ratesUtility operations and payments to TRA017 DRAINAGE FEE FUNDMonthly drainage feeOperations and capital projects related to drainage maintenance and improvement039 UTILITY CAPITAL PROJECTS FUND Transfers from Utility Operating Fund, impact fees, CIP base rate Utility capital projects; water and wastewater impact fees have restricted uses041 DRAINAGE‐ CAPITAL PROJECTS FUND Transfers from Drainage Operating FundDrainage capital projects006 SESQUICENTINIAL FUNDCurrently, sale of the Colleyville History bookCreated for fund raising for festivities related to 150th anniversary of Texas’ independence from Mexico (1986)008 EMPLOYEE ACTIVITYEmployee contributionsEmployee luncheons and other employee activities; governed by by‐laws040 INSURANCE TRUST FUNDPayroll deductions and city's contributionsPass through trust fund used to account for employee insurance costs. Created cost savings for the city.026 TIF FUNDIncremental A/V revenue in the TIF DistrictProjects in the Project Plan approved by all TIF partners024 CEDC0.5 cent sales taxFor Library, Parks, and Colleyville Center; max. 10% on promotional expenses and special events025 CEDC ‐ CAPITALBond proceedsBond projects: Library, City Park, McPherson Park, Colleyville Center capital projectsCOLOR CODEDEBT SERVICE FUNDSCAPITAL PROJECT FUNDSSPECIAL REVENUE FUNDSENTERPRISE FUNDSFIDUCIARY FUNDSCOLLEYVILLE ECON DEV CORPCITY FUNDS ‐ BACKGROUNDGOVERNMENTAL FUNDSENTERPRISE FUNDSFIDUCIARY FUNDSCOMPONENT UNIT
LISTING OF INVESTMENTS
BY TYPE
FUND ALLOCATIONAMOUNTPURCHASE DATEMATURITY DATEINTEREST RATEINTEREST EARNED DURING QUARTERUTILITY FUND$515,348 7/27/2017 7/25/2019 0.40% $520GENERAL FUND$1,543,297 9/19/2018 9/19/2019 2.08% $8,085CAPITAL PROJECTS$512,577 9/21/2017 9/19/2019 0.58% $749PURCHASED DURING THIS QUARTER$0$0OUTSTANDING CDARS AT THE END OF THE QUARTER $2,571,221$9,354MATURED DURING THIS QUARTERGENERAL FUND$510,048 9/22/2016 10/2/2018 0.50% $14CDARS MATURED DURING THE QUARTER$510,048$14GRAND TOTAL3,081,269 9,368 CDARS CERTIFICATES OF DEPOSIT
FUND ALLOCATIONAMOUNTPURCHASEDATEMATURITY/SALE DATEMarket ValueINTEREST RATEINTEREST EARNED DURING QUARTERGENERAL FUND - CITIBANK$248,000 3/29/2018 3/30/2020 247,276.09 2.50% $1,563GENERAL FUND - GOLDMAN SACHS BANK$248,000 4/11/2018 4/13/2020 247,064.30 2.55% $1,594GENERAL FUND - HOPE BANK$248,000 9/14/2018 3/16/2020 247,151.84 2.55% $1,594PURCHASED DURING THIS QUARTER$0- $0OUTSTANDING CD'S AT THE END OF THE QUARTER$744,000$4,751MATURED/SOLD DURING THIS QUARTER$0$0CD'S MATURED DURING THE QUARTER-- GRAND TOTAL744,000 4,751CD'S - CERTIFICATES OF DEPOSIT
INTERESTCUSIP SECURITY PURCHASE MATURITY PURCHASE PAR MARKET LESS PLUS MARKET YIELD ON INTEREST TO MATURITYDATE DATE PRICE VALUE VALUE MATURITY PERIOD VALUE INVESTMENT9/30/2018PROCEEDS PURCHASES12/31/20183133EG5Q4 FFCB NOTE 2/1/2017 2/1/2019 $1,000,000 $1,000,000 $994,737 $999,219 1.300% $3,277 $26,0003133EHHN6 FFCB NOTE 5/3/2017 5/2/2019 $1,000,000 $1,000,000 $992,031 $996,310 1.350% $3,403 $26,9633130AAS41 FHLB NOTE 3/24/2017 2/8/2019 $999,812 $1,000,000 $994,232 $998,782 1.280% $3,226 $24,0573133EHP98 FFCB NOTE 11/6/2017 11/6/2019 $1,000,000 $1,000,000 $988,254 $990,968 1.600% $4,033 $32,0003137EAEH8 FHLMC NOTE 7/31/2017 8/15/2019 $500,000 $500,000 $494,145 $495,983 1.475% $1,859 $15,053313380FB8 FHLB NOTE 8/29/2017 9/13/2019 $1,000,000 $1,000,000 $988,026 $991,312 1.375% $3,466 $28,0653137EADM8 FHLMC NOTE 9/14/2017 10/2/2019 $998,788 $1,000,000 $907,435$911,914.31 1.250% $3,151 $25,6163137EADM8 FHLMC NOTE 10/13/2017 10/2/2019 $896,082 $900,000 $963,696 $968,452.99 1.475% $3,346 $26,1503130ACLS1 FHLB NOTE 10/26/2017 10/11/2019 $2,200,000 $2,200,000 $2,175,149 $2,181,049 1.550% $8,594 $66,7943133EHV75 FFCB NOTE 12/8/2017 11/21/2019 $749,711 $750,000 $742,176 $743,639 1.730% $3,270 $25,3463133EGJ30 FFCB NOTE 12/29/2017 11/18/2019 $1,238,775 $1,255,000 $1,255,000 $1,237,603 1.100% $3,480 $26,0593133EJCN7 FFCB NOTE 2/14/2018 2/14/2020 $1,000,000 $1,000,000 $992,624$995,052 2.070% $5,218 $41,4003130ADN32 FHLB NOTE 3/7/2018 2/11/2020 $997,834 $1,000,000 $993,892$995,316 2.240% $5,646 $43,3273133EJHL6 FFCB NOTE 4/9/2018 3/27/2020 $1,001,430 $1,000,000 $996,916$998,150 2.375% $5,986 $46,719PURCHASED DURING THIS QUARTER$0$0OUTSTANDING SECURITIES AT THE END OF THE QUARTER14,582,431 14,605,000 14,478,313 - -14,503,750 57,954 453,549 MATURED DURING THIS QUARTER3133EFX69 FFCB NOTE 10/17/201610/5/2018$1,000,580 $1,000,000 $997,102$999,873 0.930% $127 $18,294SECURITIES MATURED DURING THE QUARTER1,000,580 1,000,000 997,102 - 999,873 127 18,294 GRAND TOTAL15,583,011 15,605,000 15,475,415 - -15,503,623 58,082 471,844 CITY OF COLLEYVILLE INVESTMENT SECURITIES HELD JUNE 30 - SEPTEMBER 30, 2018
INVESTMENT
DATE ACQUIRED
MATURITY DATE
26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE
YIELD TO MATURITY
CUSIP#
ACCOUNT ALLOCATION OF INVESTMENT INVESTMENT- G/L TOTAL
001-1172 GENERAL FUND OPERATING 3,794,835.42
002-1172 UTILITY FUND OPERATING 2,231,432.70
002-1178 CUSTOMER DEPOSITS 472,683.04
039-1557 THE RESERVE LIFT STATION 56,792.76
003-1121 INV-PERIMETER FEES 1,965,370.14
003-1307 INV-ROAD RECONSTRUCTION 323,845.40
005-1172 VOLUNTARY PARK FUND 750,000.00
012-1172 PARK LAND DEDICATION FUND 1,210,000.00
017-1172 DRAINAGE FUND OPERATING 200,000.00
024-1172 CEDC OPERATING 1,500,000.00
026-1172 TIF OPERATING 1,713,171.73
032-1519 CAPITAL EQUIPMENT RESERVE 364,300.00
PER GENERAL LEDGER 14,582,431.19
VALUE AT MATURITY 14,605,000.00
INVESTMENT
DATE ACQUIRED
MATURITY DATE
26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE
YIELD TO MATURITY
CUSIP#
ACCOUNT ALLOCATION OF INVESTMENT
001-1172 GENERAL FUND OPERATING
002-1172 UTILITY FUND OPERATING
002-1178 CUSTOMER DEPOSITS
039-1557 THE RESERVE LIFT STATION
003-1121 INV-PERIMETER FEES
003-1307 INV-ROAD RECONSTRUCTION
005-1172 VOLUNTARY PARK FUND
012-1172 PARK LAND DEDICATION FUND
017-1172 DRAINAGE FUND OPERATING
024-1172 CEDC OPERATING
026-1172 TIF OPERATING
032-1519 CAPITAL EQUIPMENT RESERVE
PER GENERAL LEDGER
VALUE AT MATURITY
FHLB NOTE FFCB NOTE FFCB NOTE TREASURY NOTE
42,818.00 42,767.00 42,858.00 42,947.00
43,504.00 43,497.00 43,587.00 43,692.00
0.01 0.01 0.01 0.01
0.01 0.01 0.01 0.01
3130AAS41 3133EG5Q4 3133EHHN6 3137EAEH8
500,000.00 1,000,000.00
1,000,000.00 500,000.00
499,811.73
999,811.73 1,000,000.00 1,000,000.00 500,000.00
1,000,000.00 1,000,000.00 1,000,000.00 500,000.00
INVESTMENT
DATE ACQUIRED
MATURITY DATE
26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE
YIELD TO MATURITY
CUSIP#
ACCOUNT ALLOCATION OF INVESTMENT
001-1172 GENERAL FUND OPERATING
002-1172 UTILITY FUND OPERATING
002-1178 CUSTOMER DEPOSITS
039-1557 THE RESERVE LIFT STATION
003-1121 INV-PERIMETER FEES
003-1307 INV-ROAD RECONSTRUCTION
005-1172 VOLUNTARY PARK FUND
012-1172 PARK LAND DEDICATION FUND
017-1172 DRAINAGE FUND OPERATING
024-1172 CEDC OPERATING
026-1172 TIF OPERATING
032-1519 CAPITAL EQUIPMENT RESERVE
PER GENERAL LEDGER
VALUE AT MATURITY
FHLB NOTE FHLMC NOTE FHLMC NOTE FHLB
42,976.00 42,992.00 43,021.00 43,034.00
43,721.00 43,740.00 43,740.00 43,749.00
0.01 0.01 0.01 0.01
0.01 0.01 0.01 0.02
313380FB8 3137EADM8 3137EADM8 3130ACLS1
7,789.01 18,422.28 500,000.00
56,792.76
712,932.38 998,788.00
222,485.85
500,000.00
300,000.00
200,000.00
513,360.00 700,000.00
364,300.00
1,000,000.00 998,788.00 896,082.28 2,200,000.00
1,000,000.00 1,000,000.00 900,000.00 2,200,000.00
INVESTMENT
DATE ACQUIRED
MATURITY DATE
26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE
YIELD TO MATURITY
CUSIP#
ACCOUNT ALLOCATION OF INVESTMENT
001-1172 GENERAL FUND OPERATING
002-1172 UTILITY FUND OPERATING
002-1178 CUSTOMER DEPOSITS
039-1557 THE RESERVE LIFT STATION
003-1121 INV-PERIMETER FEES
003-1307 INV-ROAD RECONSTRUCTION
005-1172 VOLUNTARY PARK FUND
012-1172 PARK LAND DEDICATION FUND
017-1172 DRAINAGE FUND OPERATING
024-1172 CEDC OPERATING
026-1172 TIF OPERATING
032-1519 CAPITAL EQUIPMENT RESERVE
PER GENERAL LEDGER
VALUE AT MATURITY
FFCB NOTE FFCB NOTE FFCB NOTE FFCB NOTE
43,045.00 43,077.00 43,098.00 43,145.00
43,775.00 43,790.00 43,787.00 43,875.00
0.01 0.01 0.02 0.02
0.02 0.02 0.01 0.02
3133EHP98 3133EHV75 3133EGJ30 3133EJCN7
- 255,571.93 1,000,000.00
250,985.36 503,143.19 951,092.86
194,005.33 246,567.66 32,110.05
253,649.76
101,359.55
200,000.00
1,000,000.00 749,710.85 1,238,774.84 1,000,000.00
1,000,000.00 750,000.00 1,255,000.00 1,000,000.00
INVESTMENT
DATE ACQUIRED
MATURITY DATE
26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE
YIELD TO MATURITY
CUSIP#
ACCOUNT ALLOCATION OF INVESTMENT
001-1172 GENERAL FUND OPERATING
002-1172 UTILITY FUND OPERATING
002-1178 CUSTOMER DEPOSITS
039-1557 THE RESERVE LIFT STATION
003-1121 INV-PERIMETER FEES
003-1307 INV-ROAD RECONSTRUCTION
005-1172 VOLUNTARY PARK FUND
012-1172 PARK LAND DEDICATION FUND
017-1172 DRAINAGE FUND OPERATING
024-1172 CEDC OPERATING
026-1172 TIF OPERATING
032-1519 CAPITAL EQUIPMENT RESERVE
PER GENERAL LEDGER
VALUE AT MATURITY
FHLB NOTE FFCB NOTE
43,166.00 43,199.00
43,872.00 43,917.00
0.02 0.02
0.02 0.02
3130ADN32 3133EJHL6
37,833.62 1,001,429.87
250,000.00
710,000.00
997,833.62 1,001,429.87
1,000,000.00 1,000,000.00
DESCRIPTION BALANCE
UTILITY FUND - CAPITAL PROJECTS
LOGIC POOL- WATER IMPACT FEES $1,140,214
LOGIC-RES CASH-UTILITY LINE RE $1,266
LOGIC - WW IMPACT FEES $329,107
CAPITAL PROJECTS FUND
LOGIC POOL-ROADS SA I CASH $23,381
LOGIC-CAPITAL PROJ/STREET RESU $793,133
DRAINAGE FUND
LOGIC- I&S FUND/DRAINAGE $131,928
Subtotal - LOGIC balances excluding CEDC $2,419,029
CEDC Logic Balance
LOGIC POOL- OPERATING CASH $16
Total LOGIC Balance $2,419,045
INTEREST EARNED $7,267
CITY OF COLLEYVILLE - INVESTMENT POOLS
LOCAL GOVERNMENT INVESTMENT COOPERATIVE / "LOGIC"
ACCOUNT ALLOCATION AT DECEMBER 2018
DESCRIPTION BALANCE
GENERAL FUND
TEXPOOL - OPERATING CASH $546,820
UTILITY FUND
TEXPOOL - OPERATING CASH $2,742,598
UTILITY FUND - CAPITAL PROJECTS
TEXPOOL - WW IMPACT FEES $686,694
TEXPOOL - WATER IMPACT FEE $2,317,826
DEBT SERVICE FUND
TEXPOOL - OPERATING CASH $35,165
DRAINAGE FUND
TEXPOOL - OPERATING CASH $1,398,625
TIF FUND
TEXPOOL - OPERATING CASH $13,350,242
CCCPD FUND
TEXPOOL - OPERATING CASH $789,473
CAPITAL EQUIPMENT REPLACEMENT FUND
TEXPOOL - OPERATING CASH $85,009
COLLEYVILLE TOMORROW FUND
TEXPOOL - OPERATING CASH $1,732,033
PARKS TOMORROW FUND
TEXPOOL - OPERATING CASH $1,054,213
STRATEGIC INITIATIVES FUND
TEXPOOL - OPERATING CASH $502,809
Total TexPool Balance $25,241,506
INTEREST EARNED $140,176
TEXPOOL
ACCOUNT ALLOCATION AT DECEMBER 2018
DESCRIPTION BALANCE
GENERAL FUND
TEXAS CLASS $1,348,847
CAPITAL PROJECTS FUND
TEXAS CLASS $4,695,912
UTILITY FUND - CAPITAL PROJECTS
TEXAS CLASS $3,022,377
TIF FUND
TEXAS CLASS $4,029,836
Total Texas CLASS Balance $13,096,972
INTEREST EARNED $74,020
TEXAS CLASS
ACCOUNT ALLOCATION AT DECEMBER 2018
DESCRIPTION BALANCE
GENERAL FUND
TEXSTAR - OPERATING CASH $3,248,152
UTILITY FUND
TEXSTAR - OPERATING CASH $2,992,501
VOLUNTARY PARK FUND
TEXSTAR - OPERATING CASH $366,868
SESQUICENTINIAL FUND
TEXSTAR - OPERATING CASH $3,237
VOLUNTARY LIBRARY FUND
TEXSTAR - OPERATING CASH $400,762
PARK LAND DEDICATION FUND
TEXSTAR - OPERATING CASH $247,211
POLICE ASSET FORFEITURE FUND
TEXSTAR - OPERATING CASH $23,320
TREE PRESERVATION FUND
TEXSTAR - OPERATING CASH $317,019
LIBRARY DONATION FUND
TEXSTAR - OPERATING CASH $34,777
TIF FUND
TEXSTAR - OPERATING CASH $1,000,970
CRIME DISTRICT (CCCPD) FUND
TEXSTAR - OPERATING CASH $2,736
KIDSVILLE MAINTENANCE FUND
TEXSTAR - OPERATING CASH $5,820
COURT TECHNOLOGY FUND
TEXSTAR - OPERATING CASH $5,964
COURT SECURITY FUND
TEXSTAR - OPERATING CASH $49,797
ACCOUNT ALLOCATION AT DECEMBER 2018
TEXSTAR
VEHICLE AND CAPITAL REPLACEMENT FUND
TEXSTAR - OPERATING CASH $2,195
PUBLIC ART FUND
TEXSTAR - OPERATING CASH $7,913
COLLEYVILLE TOMORROW FUND
TEXSTAR - OPERATING CASH $733,336
PARKS TOMORROW FUND
TEXSTAR - OPERATING CASH $2,333
STRATEGIC INITIATIVES FUND
TEXSTAR - OPERATING CASH $23,975
JUVENILE CASE MANAGER FUND
TEXSTAR - OPERATING CASH $11,523
HOTEL/MOTEL FUND FUND
TEXSTAR - OPERATING CASH $305,691
DRAINAGE- CAPITAL PROJECTS FUND
TEXSTAR - OPERATING CASH $724,094
Total TexSTAR Balance $10,510,192
INTEREST EARNED $3,394
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(continued page 6)
ANNOUNCEMENTS Economic and Market Commentary:
Neutral November
December 1, 2018
The buzzwords in November for cash managers were not “market volatility,” but “neutral
rate.” Vice Chair Richard Clarida discussed it and Chair Powell made it a focus of public
comments. Of course, Fed economists and offi cials view a neutral rate of interest, the
level at which the economy doesn’t need stimulus or tightening, as a central policy
concept. Some even give it a number: 2.9%, making it seem a precisely calculated point.
But there’s nothing magical about 2.9%, and ultimately it is more confusing than helpful,
especially when the head of the central bank waffl es on it.
In early October, Powell said that interest rates were “a long way from neutral.” Only
a few weeks later, in his speech Wednesday at the Economic Club of New York, he said
rates were “just below” that level. The markets were indeed volatile during that span,
but economic data hardly changed, so perhaps his view of equilibrium has.
Powell’s shifting stance is almost certainly not going to stop the Fed from raising rates
25 basis points to a 2.25-2.50% federal funds target range in its policy-making meeting
later this month, as the increase is all but fully expected by the markets. The takeaway
probably will be that the policymakers intimate only two hikes in 2019 instead of three.
We also continue to expect the neutral rate will be reached in the fi rst half of 2019.
TexPool Participant Services Managed and
1001 Texas Avenue, Suite 1400 ● Houston, TX 77002 Serviced by ee eratdd
Phone: 1-866-TEXPOOL (839-7665) ● Fax: 1-866-839-3291 ● TexPool.com G35884-24 (12/18)
We welcome the following
entities who joined TexPool in
November 2018:
TexPool
Harris County MUD 171
Town of Shady Shores
Bexar Medina Atascosa WCID 1
City of Eagle Pass
Memorial-Heights Redevelopment Authority
TexPool Prime
City of Morgan’s Point
Morgan’s Point Development Corp
Town of Shady Shores
City of Fate
Bexar Medina Atascosa WCID 1
Memorial-Heights Redevelopment Authority
Bammel Utility District
Upcoming Events
Jan 26, 2019 - Jan 30, 2019
Austin
TASA Midwinter Conference
Feb 25, 2019 - Feb 27, 2019
San Antonio
GTOT Winter Conference
TexPool Advisory Board Members
Jose Elizondo, Jr. Vivian Wood
Belinda Weaver Jerry Dale
Patrick Krishock Sharon Matthews
Michele Tuttle David Landeros
Overseen by the State of Texas Comptroller
of Public Accounts Glenn Hegar.
Operated under the supervision of the
Texas Treasury Safekeeping Trust Company
Monthly Newsletter: December 2018
Performance as of November 30, 2018
TexPool TexPool Prime
Current Invested Balance $16,233,825,019.66 $5,071,543,374.80
Weighted Average Maturity** 32 31
Weighted Average Life** 99 65
Net Asset Value 0.99991 0.99989
Total Number of Participants 2515 354
Management Fee on Invested Balance 0.0473% 0.0638%
Interest Distributed $29,744,579.20 $9,776,002.90
Management Fee Collected $603,547.68 $234,438.31
Standard & Poor's Current Rating AAAm AAAm
Month Averages
Average Invested Balance $16,432,516,178.89 $4,968,193,239.17
Average Monthly Rate* 2.20% 2.39%
Average Weighted Average Maturity** 34 34
Average Weighted Average Life** 98 69
*This average monthly rate for TexPool Prime for each date may refl ect a waiver of some portion or all of each of the management fees.
**See page 2 for defi nitions.
Past performance is no guarantee of future results.
Pg: 2
Portfolio by Maturity (%)
As of November 30, 2018
■ 1-7 days 43.7
■ 8-30 days 23.7
■ 31-90 days 25.2
■ 91-180 days 5.7
■ 181+ days 1.7
Portfolio by Type of Investment (%)
As of November 30, 2018
■ Agencies 47.6
■ Repurchase Agreements 32.6
■ Treasurys 16.1
■ Money Market Funds 3.7
Portfolio Asset Summary as of November 30, 2018
Book Value Market Value
Uninvested Balance -$946,400.84 -$946,400.84
Receivable for Investments Sold 0.00 0.00
Accrual of Interest Income 10,705,293.28 10,705,293.28
Interest and Management Fees Payable -29,745,031.43 -29,745,031.43
Payable for Investments Purchased -63,998,260.00 -63,998,260.00
Accrued Expenses & Taxes -19,380.61 -19,380.61
Repurchase Agreements 5,330,064,000.00 5,330,064,000.00
Mutual Fund Investments 600,175,103.88 600,175,103.88
Government Securities 7,766,951,660.32 7,765,495,392.12
U.S. Treasury Infl ation Protected Securities 162,986,336.72 163,023,321.73
US Treasury Bills 2,322,018,329.66 2,322,090,585.96
US Treasury Notes 135,633,368.68 135,594,995.18
Total $16,233,825,019.66 $16,232,439,619.26
Market value of collateral supporting the Repurchase Agreements is at least 102% of the Book Value. The portfolio is managed by Federated Investment Counseling and the assets are safe kept in a separate
custodial account at State Street Bank in the name of TexPool. The only source of payment to the Participants is the assets of TexPool. There is no secondary source of payment for the pool such as insurance or
State guarantee. Should you require a copy of the portfolio, please contact TexPool Participant Services.
Participant Summary
Number of Participants Balance
School District 589 $4,688,577,931.24
Higher Education 58 $579,085,500.44
Healthcare 83 $458,414,540.60
Utility District 799 $2,430,259,886.25
City 463 $4,229,978,560.73
County 186 $1,583,972,347.20
Other 337 $2,257,178,231.00
**Defi nition of Weighted Average Maturity and Weighted Average Life
WAM is the mean average of the periods of time remaining until the securities held in TexPool (a) are scheduled to be repaid, (b) would be repaid upon a demand by TexPool, or (c) are scheduled to have their
interest rate readjusted to refl ect current market rates. Securities with adjustable rates payable upon demand are treated as maturing on the earlier of the two dates set forth in (b) and (c) if their
scheduled maturity is 397 days or less; and the later of the two dates set forth in (b) and (c) if their scheduled maturity is more than 397 days. The mean is weighted based on the percentage of the amortized
cost of the portfolio invested in each period.
WAL is calculated in the same manner as WAM, but is based solely on the periods of time remaining until the securities held in TexPool (a) are scheduled to be repaid or (b) would be repaid upon a demand by
TexPool, without reference to when interest rates of securities within TexPool are scheduled to be readjusted.
Monthly Newsletter: December 2018
Pg: 3
Daily Summary
Date
Money Mkt. Fund
Equiv. (SEC Std.)
Dividend
Factor
TexPool Invested
Balance NAV WAM Days WAL Days
11/1 2.1758%0.000059612 $16,410,191,872.99 0.99988 32 96
11/2 2.1901%0.000060003 $16,361,545,472.48 0.99988 33 98
11/3 2.1901%0.000060003 $16,361,545,472.48 0.99988 33 98
11/4 2.1901%0.000060003 $16,361,545,472.48 0.99988 33 98
11/5 2.1984%0.000060229 $16,427,220,058.94 0.99988 32 96
11/6 2.1816%0.000059770 $16,420,150,621.82 0.99988 32 94
11/7 2.1794%0.000059710 $16,422,494,387.99 0.99988 33 97
11/8 2.1916%0.000060045 $16,479,444,474.67 0.99987 35 98
11/9 2.1942%0.000060114 $16,647,827,819.86 0.99987 36 99
11/10 2.1942%0.000060114 $16,647,827,819.86 0.99987 36 99
11/11 2.1942%0.000060114 $16,647,827,819.86 0.99987 36 99
11/12 2.1942%0.000060114 $16,647,827,819.86 0.99987 36 99
11/13 2.1944%0.000060120 $16,606,271,035.81 0.99988 35 96
11/14 2.1915%0.000060040 $16,533,437,170.84 0.99988 35 96
11/15 2.2203%0.000060830 $16,357,622,513.74 0.99988 36 99
11/16 2.2155%0.000060698 $16,297,039,166.78 0.99989 36 100
11/17 2.2155%0.000060698 $16,297,039,166.78 0.99989 36 100
11/18 2.2155%0.000060698 $16,297,039,166.78 0.99989 36 100
11/19 2.2125%0.000060617 $16,305,150,683.46 0.99989 35 99
11/20 2.2049%0.000060409 $16,242,531,154.05 0.99988 35 99
11/21 2.1978%0.000060215 $16,270,562,887.86 0.99986 35 98
11/22 2.1978%0.000060215 $16,270,562,887.86 0.99986 35 98
11/23 2.2169%0.000060738 $16,546,346,741.13 0.99988 34 96
11/24 2.2169%0.000060738 $16,546,346,741.13 0.99988 34 96
11/25 2.2169%0.000060738 $16,546,346,741.13 0.99988 34 96
11/26 2.2107%0.000060567 $16,591,577,669.48 0.99988 32 93
11/27 2.2058%0.000060434 $16,470,385,768.14 0.99988 32 93
11/28 2.2141%0.000060660 $16,432,908,408.81 0.99988 32 98
11/29 2.2260%0.000060987 $16,295,043,329.98 0.99988 32 99
11/30 2.2433%0.000061460 $16,233,825,019.66 0.99991 32 99
Average 2.2030% 0.000060356 $16,432,516,178.89 0.99988 34 98
Pg: 4
TEXPOOL PRIME
Monthly Newsletter: December 2018
Portfolio by Maturity (%)
As of November 30, 2018
■ 1-7 days 40.6
■ 8-30 days 29.0
■ 31-90 days 19.7
■ 91-180 days 10.8
■ 181+ days 0.0
Portfolio by Type of Investment (%)
As of November 30, 2018
■ Commercial Paper 38.4
■ Variable Rate Notes 29.2
■ Repurchase Agreements 22.1
■ Money Market Funds 9.3
■ Government 1.0
Portfolio Asset Summary as of November 30, 2018
Book Value Market Value
Uninvested Balance -$8,756.61 -$8,756.61
Receivable for Investments Sold 0.00 0.00
Accrual of Interest Income 3,345,179.13 3,345,179.13
Interest and Management Fees Payable -9,776,001.35 -9,776,001.35
Payable for Investments Purchased 0.00 0.00
Accrued Expenses & Taxes -8,021.50 -8,021.50
Repurchase Agreements 1,119,936,000.00 1,119,936,000.00
Commercial Paper 1,951,013,588.36 1,950,627,577.56
Bank Instruments 0.00 0.00
Mutual Fund Investments 472,097,499.35 472,052,003.75
Government Securities 49,945,375.00 49,949,206.50
Variable Rate Notes 1,484,998,512.42 1,484,878,671.00
Total $5,071,543,374.80 $5,070,995,858.48
Market value of collateral supporting the Repurchase Agreements is at least 102% of the Book Value. The portfolio is managed by Federated Investment Counseling and the assets are safe kept in a separate
custodial account at State Street Bank in the name of TexPool Prime. The assets of TexPool Prime are the only source of payments to the Participants. There is no secondary source of payment for the pool such as
insurance or State guarantee. Should you require a copy of the portfolio, please contact TexPool Participant Services
Participant Summary
Number of Participants Balance
School District 117 $1,651,210,476.51
Higher Education 17 $615,654,251.08
Healthcare 14 $227,211,789.98
Utility District 32 $410,413,135.17
City 69 $838,076,977.78
County 38 $401,334,684.76
Other 67 $927,644,403.94
Pg: 5
TEXPOOL PRIME
Daily Summary
Date
Money Mkt. Fund
Equiv. (SEC Std.)
Dividend
Factor
TexPool Prime
Invested Balance NAV WAM Days WAL Days
11/1 2.3671%0.000064851 $4,967,136,651.57 0.99995 35 72
11/2 2.3811%0.000065236 $4,941,377,932.96 0.99988 36 74
11/3 2.3811%0.000065236 $4,941,377,932.96 0.99988 36 74
11/4 2.3811%0.000065236 $4,941,377,932.96 0.99988 36 74
11/5 2.3822%0.000065266 $4,927,047,469.56 0.99992 34 71
11/6 2.3762%0.000065100 $4,956,954,318.71 0.99989 34 71
11/7 2.3696%0.000064921 $4,920,192,615.94 0.99988 34 71
11/8 2.3775%0.000065137 $4,912,307,358.58 0.99988 36 70
11/9 2.3711%0.000064963 $4,962,549,617.66 0.99981 35 70
11/10 2.3711%0.000064963 $4,962,549,617.66 0.99981 35 70
11/11 2.3711%0.000064963 $4,962,549,617.66 0.99981 35 70
11/12 2.3711%0.000064963 $4,962,549,617.66 0.99981 35 70
11/13 2.3781%0.000065154 $4,969,896,858.09 0.99989 33 68
11/14 2.3809%0.000065229 $4,960,602,232.30 0.99989 33 67
11/15 2.3988%0.000065721 $5,021,145,478.53 0.99988 33 67
11/16 2.4127%0.000066102 $4,944,037,076.18 0.99983 35 70
11/17 2.4127%0.000066102 $4,944,037,076.18 0.99983 35 70
11/18 2.4127%0.000066102 $4,944,037,076.18 0.99983 35 70
11/19 2.4001%0.000065757 $4,939,666,697.33 0.99989 33 67
11/20 2.4025%0.000065822 $4,937,649,470.70 0.99988 33 68
11/21 2.3990%0.000065726 $4,908,798,773.48 0.99984 33 68
11/22 2.3990%0.000065726 $4,908,798,773.48 0.99984 33 68
11/23 2.4114%0.000066066 $4,962,698,912.78 0.99985 32 66
11/24 2.4114%0.000066066 $4,962,698,912.78 0.99985 32 66
11/25 2.4114%0.000066066 $4,962,698,912.78 0.99985 32 66
11/26 2.4154%0.000066175 $5,004,428,035.94 0.99992 30 64
11/27 2.4044%0.000065873 $5,044,202,639.49 0.99992 30 66
11/28 2.4126%0.000066099 $5,108,235,327.84 0.99990 30 65
11/29 2.4259%0.000066463 $5,092,650,862.41 0.99989 31 65
11/30 2.4392%0.000066827 $5,071,543,374.80 0.99989 31 65
Average 2.3943%0.000065597 $4,968,193,239.17 0.99987 34 69
Until that time it is normalizing—or dare we say neutralizing—
rates, not tightening them. And that is a point often lost in the
discussion and debate on monetary policy: the Fed isn’t obligated
to stop at neutral. If it still feels that the economy is overheating
and causing infl ationary pressures, it will push right past that. And
if policymakers think the economy is slowing but infl ation is
growing, they will react to infl ation.
It remains to be seen if the Fed addresses its plan for quantitative
tightening at the meeting. We anticipate it to continue rolling off
$50 billion of securities a month. The focus will be on the dots,
which come with the statement in December. As for what those
dots may indicate, we off er this suggestion: perhaps the Fed
should leave neutral to electric wires and car transmissions.
In November, the London interbank off ered rate (Libor)
steepened over the course of month ahead of the likely December
move. One-month rose from 2.30% to 2.35%, 3-month from
2.52% to 2.74% and 6-month from 2.78% to 2.89%. The
weighted average maturity (WAM) target ranges of our funds
were unchanged in November, with prime and municipal funds
in a 30-40 day span and government funds in a 25-35 day range.
Participant Services
1001 Texas Ave. 14th Floor
Houston, TX 77002
90-Day Treasury Bill is a short-term debt instrument backed by the national government. These are
used to collect immediate cash to meet outstanding obligations.
Any private investor can invest in a Treasury bill. The 90-Day Treasury Bill is a weighted average
rate of the weekly auctions of 90-Day Treasury Bills.
Past performance is no guarantee of future results.
TexPool
Prime Rate
TexPool & TexPool Prime vs. 90-Day Treasury Bill
90-Day
T-Bill Rate
TexPool
Rate
1.9%
2.0%
2.1%
2.2%
2.3%
2.4%
2.5%
11/3011/1510/3110/159/309/15
Texas CLASS Portfolio Characteristics
The following information is provided in accordance with Texas State Statute 2256.0016.
As of December 31, 2018:
Participant Breakdown byBalance Participant Breakdown by Entity Type Performance vs. BenchmarkS&P AAA/AA GIP* (Average Monthly Yields)
Texas CLASS Portfolio Breakdown Texas CLASS GovernmentPortfolio Breakdown Weighted Average Maturity (InDays)
December 2018 Portfolio Characteristics - Texas CLASS
2/22/2019https://www.texasclass.com/december-2018-portfolio-characteristics/
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Texas CLASS Prior Month Comparison
Oct-18
2.34%
$6,627,088,330
$6,627,258,649
$6,625,547,176
$6,625,717,494
1.00
53
81
Nov-18
2.42%
$6,676,683,335
$6,677,594,401
$6,675,726,558
$6,676,637,624
1.00
52
72
December 2018 Portfolio Characteristics - Texas CLASS
https://www.texasclass.com/december-2018-portfolio-characteristics/
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Dec-18
2.50%
$7,879,926,736
$7,880,668,450
$7,878,181,910
$7,878,923,624
1.00
42
56
**Average monthly yield ***As of the end of the last day of the month
December 2018 Portfolio Characteristics - Texas CLASS
https://www.texasclass.com/december-2018-portfolio-characteristics/
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Texas CLASS Government Prior Month Comparison
Oct-18
2.14%
$404,704,487
$404,738,381
$404,478,214
$404,512,108
1.00
35
66
Nov-18
2.26%
$423,554,985
$423,609,629
$423,264,207
$423,318,851
1.00
46
83
December 2018 Portfolio Characteristics - Texas CLASS
https://www.texasclass.com/december-2018-portfolio-characteristics/
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Dec-18
2.34%
$456,640,675
$456,671,551
$456,348,062
$456,378,937
1.00
33
71
**Average monthly yield ***As of the end of the last day of the month
December 2018 Portfolio Characteristics - Texas CLASS
https://www.texasclass.com/december-2018-portfolio-characteristics/
Fund Highlights as of December, 31 2018 (Unaudited)
For the month of December 2018, the Program Administrator accrued fees of $591,316.10 and had average shares outstanding of $7,069,188,433.24 for Texas CLASS. For Texas CLASS Government, the Program Administrator accrued fees of $0.00 and had average shares outstanding of $434,184,263.60. The fees for both Texas CLASS and Texas CLASS Government are accrued on a daily basis by multiplying the investment property value by the applicable fee rate, and divided by 365 or 366 days in the event of a leap year. The investment property value shall be based on the current day’s shares outstanding. For weekend days and holidays, the shares outstanding for the previous business day will be utilized for the calculation of fees. The applicable fee rate is located in Exhibit F of the Seventh Amended and Restated Trust Agreement. The Program Administrator reserves the right to abate fees listed in the Seventh Amended and Restated Trust Agreement. The monthly fee is the sum of all daily fee accruals for the month of December. The fees are paid monthly upon notification to the custodian bank. As of December 31, 2018 the fee for Texas CLASS was 10 basis points and the fee for Texas CLASS Government was 0.00 basis points.
• Both funds are rated ‘AAAm’ by S&P Global Ratings.• Net Asset Value for both funds from December 1 to December 31, 2018 is equalto $1.00.• The final maturity dates of all securities were less than one year.• The custodian bank for Texas CLASS is Wells Fargo Bank, N.A.• Total number of Participants is 716.• There are currently no investments that have a stated maturity greater than oneyear.• The portfolio managers for Texas CLASS are Randy Palomba, CFA and Neil Waud,CFA.• All sources of payment are the underlying assets of the local governmentinvestment pool at market value.• The Seventh Amended and Restated Trust Agreement was adopted by the Boardof Trustees on August 5, 2016. You can access your copy of the Seventh Amendedand Restated Trust Agreement by clicking here (https://texasclass.com/wp-
December 2018 Portfolio Characteristics - Texas CLASS
https://www.texasclass.com/december-2018-portfolio-characteristics/
content/uploads/2017/06/2016-08-05-Seventh-Amended-and-Restated-Trust-Agreement.pdf).
December 2018 Portfolio Characteristics - Texas CLASS
https://www.texasclass.com/december-2018-portfolio-characteristics/
Data unaudited. Charts may not equal 100% due to rounding. Performance results are shown net of all fees and expenses and reflect thereinvestment of dividends and other earnings. Many factors affect performance including changes in market conditions and interest ratesand in response to other economic, political, or financial developments. Investment involves risk including the possible loss of principal. Noassurance can be given that the performance objectives of a given strategy will be achieved. All comments and discussion presented arepurely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseenevents. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy,sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should bemade only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose.Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses. A ‘AAAm’ ratingby S&P Global Ratings is obtained after S&P evaluates a number of factors including credit quality, market price exposure, andmanagement. Ratings are subject to change and do not remove credit risk.
*The benchmark, the S&P US AAA & AA Rated GIP All 30 Day Net Yield (LGIP30D) is a performance indicator of rated GIPs that maintain astable net asset value of $1.00 per share and is an unmanaged market index representative of the LGIP universe. The S&P benchmarkutilized in this comparison is a composite of all rated stable net asset value pools. GIPs in the index include only those rated based on S&P’smoney market criteria. Pools rated ‘AAAm’ provide excellent safety and a superior capacity to maintain principal value while those rated‘AAm’ offer very good safety and a strong capacity to maintain principal value (Source: S&P Global Ratings’ website). The comparisonbetween this index and the portfolio may differ in holdings, duration, fees, and percentage composition of each holding. Such differencesmay account for variances in yield.
*The benchmark, the S&P AAA & AA Rated GIP Govt 30 Day Net Yield (LGIPG30N) is a performance indicator of rated GIPs that maintain astable net asset value of $1.00 per share and is an unmanaged market index representative of the LGIP universe. The S&P benchmarkutilized in this comparison is comprised of pools that invest in U.S. Government securities, U.S. Treasury securities, Repurchaseagreements collateralized by U.S. government and treasury securities or any combination of the above. GIPs in the index include onlythose rated based on S&P’s money market criteria. Pools rated ‘AAAm’ provide excellent safety and a superior capacity to maintainprincipal value while those rated ‘AAm’ offer very good safety and a strong capacity to maintain principal value (Source: S&P GlobalRatings’ website). The comparison between this index and the portfolio may differ in holdings, duration, fees, and percentage compositionof each holding. Such differences may account for variances in yield.
December 2018 Portfolio Characteristics - Texas CLASS
https://www.texasclass.com/december-2018-portfolio-characteristics/
Monthly Newsletter — December 2018
For more information about TexSTAR, please visit our web site at www.texstar.org.
Performance
As of December 31, 2018
Current Invested Balance $7,738,483,374.11
Weighted Average Maturity (1) 35 Days
Weighted Average Maturity (2) 82 Days
Net Asset Value 0.999940
Total Number of Participants 888
Management Fee on Invested Balance 0.06%*
Interest Distributed $14,132,454.19
Management Fee Collected $357,800.37
% of Portfolio Invested Beyond 1 Year 6.96%
Standard & Poor’s Current Rating AAAm
Rates reflect historical information and are not an indication of future performance.
December Averages
Average Invested Balance $7,021,075,852.64
Average Monthly Yield, on a simple basis 2.3069%
Average Weighted Average Maturity (1)* 40 Days
Average Weighted Average Maturity (2)* 95 Days
Definition of Weighted Average Maturity (1) & (2)
(1) This weighted average maturity calculation uses the SEC Rule 2a-7 def nition for stated maturity for any f oating rate instrument held in the portfolio to determine the weighted average maturity for the pool. This Rule specif es that a variable rate instrument to be paid in 397 calendar days or less shall be deemed to have a maturity equal to the period remaining until the next readjustment of the interest rate.
(2) This weighted average maturity calculation uses the f nal maturity of any f oating rate instruments held in the portfolio to calculate the weighted average maturity for the pool.
* The maximum management fee authorized for the TexSTAR Cash Reserve Fund is 12 basis points. This fee may be waived in full or in part in the discretion of the TexSTAR co-administrators at any time as provided for in the TexSTAR Information Statement.
Economic Commentary
The fourth quarter was the most tumultuous of 2018 as uncertainty challenged the markets culminating in high volatility. Concerns
about further escalations in the US-China trade dispute, a poorer earnings growth outlook, the threat of a global economic
slowdown, and a plunge in energy prices weighed on sentiment. The Fed raised the fed funds rate by 25 bps to 2.25%-2.50% at
its December Federal Open Market Committee meeting, a move that was widely anticipated. The median interest rate forecast
“dot plot” was revised lower, now telegraphing two rate hikes in 2019 instead of three. The committee altered its statement slightly,
recognizing the impact of volatility on f nancial conditions as well as the softening global economic backdrop. Nonetheless, the
committee described risks as “roughly balanced” and still views further rates hikes as appropriate. Markets expected dovish
Fed commentary to accompany the hike, but Powell failed to placate investors and the selling of risk accelerated. Our base
case scenario remains above trend global growth led by the U.S. economy. The U.S. consumer remains resilient and the labor
market has become increasingly tight. Wages are rising across developed markets while inf ation remains subdued. Under this
backdrop, we expect some additional rate hikes in the U.S. and the 10-year Treasury yields to rise back towards 3.25% over
the coming quarters.
Three very real risks to our somewhat optimistic bias are looming larger on the horizon: tariffs, central bank policy and geopolitics.
Further escalation of a trade war would damage growth and pull forward recession expectations. The pressure is signif cant to
return policy rates to something that looks normal on a real yield basis. But rate increases from the Fed, ECB and the Bank of
Japan - on top of quantitative tightening - are too much for the economy and the markets to absorb and may cause the Fed to
pause on the balance sheet runoff. How the U.S. administration handles a gridlocked Congress will do a lot to shape the U.S.
economy. Equally important will be how Europe handles Brexit, the Italian budget and the growing unrest in France. As a decade
of quantitative easing proved to be more about asset price inf ation than economic ref ation, it stood to reason that quantitative
tightening would cause some degree of asset price def ation. It is true that there are growing economic headwinds and a few
risks to stability, but nothing of the magnitude ref ected by many of the risk-assets markets. As risks have become magnif ed and
central bank policy responses underappreciated, we are using the increased volatility to f nd opportunities.
This information is an excerpt from an economic report dated December 2018 provided to TexSTAR by JP Morgan Asset Management, Inc., the investment manager of the TexSTAR pool.
New Participants
We would like to welcome the following entities who joined the TexSTAR program in December:
Galveston County ESD No. 2 North Collin Special Utility District
Holiday Reminders
In observance of Martin Luther King Jr. holiday, TexSTAR will be closed Monday, January 21, 2019. All ACH transactions initiated
on Friday, January 18th will settle on Tuesday, January 22nd.
Distribution of
Participants by Type
As of December 31, 2018
Portfolio by
Type of Investment
As of December 31, 2018
Book Value Market Value
Uninvested Balance $ 656.99 $ 656.99
Accrual of Interest Income 4,598,849.68 4,598,849.68
Interest and Management Fees Payable (14,171,521.67) (14,171,521.67)
Payable for Investment Purchased 0.00 0.00
Repurchase Agreement 2,512,506,999.80 2,512,506,999.80
Government Securities 5,235,548,389.31 5,235,310,302.80
Total $ 7,738,483,374.11 $ 7,738,245,287.60
Market value of collateral supporting the Repurchase Agreements is at least 102% of the Book Value. The portfolio is managed by J.P. Morgan Chase & Co. and the assets are safekept
in a separate custodial account at the Federal Reserve Bank in the name of TexSTAR. The only source of payment to the Participants are the assets of TexSTAR. There is
no secondary source of payment for the pool such as insurance or guarantee. Should you require a copy of the portfolio, please contact TexSTAR Participant Services.
Information at a Glance
Portfolio Asset Summary as of December 31, 2018
Average Book Market Net Number of
Month Rate Value Value Asset Value WAM (1)* WAM (2)* Participants
Dec 18 2.3069% $7,738,483,374.11 $7,738,245,287.60 0.999940 40 95 888
Nov 18 2.2176% 6,683,233,268.87 6,682,898,473.43 0.999949 41 102 886
Oct 18 2.1615% 6,581,942,899.40 6,581,269,831.00 0.999897 41 101 884
Sep 18 1.9995% 6,458,418,968.50 6,458,002,746.78 0.999935 30 96 883
Aug 18 1.9225% 6,701,017,159.16 6,701,228,119.73 0.999971 24 91 879
Jul 18 1.8965% 6,837,425,331.68 6,837,427,966.67 1.000000 19 84 877
Jun 18 1.8300% 6,250,002,595.51 6,250,027,195.61 0.999991 26 99 874
May 18 1.7258% 6,489,773,533.02 6,489,474,005.73 0.999953 29 106 868
Apr 18 1.6304% 6,358,425,417.53 6,358,101,312.82 0.999949 18 99 861
Mar 18 1.4995% 6,461,363,510.56 6,460,804,379.93 0.999892 28 105 857
Feb 18 1.3518% 7,130,310,070.00 7,129,718,573.04 0.999917 28 97 854
Jan 18 1.2900% 7,090,345,755.93 7,090,199,741.00 0.999979 31 83 853
Agencies
51.36%1 to 7 days
40.34%
31 to 90 days
30.39%
8 to 30 days
18.61%
City
26.01%
Health Care
3.04%
County
6.08%
Other
7.88%
Historical Program Information
Portfolio by
Maturity
As of December 31, 2018
Repurchase
Agreements
32.43%
Treasuries
16.21%
School District
30.86%
Higher
Education
2.82%
Utility District
23.31%
91 to 180 days
10.66%
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
TexSTAR Rate 90 Day T-BILL Rate
TexSTAR versus 90-Day Treasury Bill
Mny Mkt Fund Daily Allocation TexSTAR Invested Market Value WAM WAM
Date Equiv. [SEC Std.] Factor Balance Per Share Days (1)* Days (2)*
12/1/2018 2.2582% 0.000061869 $6,683,233,268.87 0.999892 41 101
12/2/2018 2.2582% 0.000061869 $6,683,233,268.87 0.999892 41 101
12/3/2018 2.2396% 0.000061360 $6,669,461,268.41 0.999891 41 100
12/4/2018 2.2431% 0.000061455 $6,673,994,024.30 0.999882 39 99
12/5/2018 2.2431% 0.000061455 $6,673,994,024.30 0.999882 39 99
12/6/2018 2.2676% 0.000062127 $6,745,323,131.99 0.999882 38 97
12/7/2018 2.2588% 0.000061884 $6,743,660,576.98 0.999891 37 95
12/8/2018 2.2588% 0.000061884 $6,743,660,576.98 0.999891 37 95
12/9/2018 2.2588% 0.000061884 $6,743,660,576.98 0.999891 37 95
12/10/2018 2.2379% 0.000061312 $6,702,503,302.01 0.999896 36 95
12/11/2018 2.2236% 0.000060921 $6,679,262,778.64 0.999913 36 95
12/12/2018 2.2371% 0.000061291 $6,636,266,496.58 0.999904 41 98
12/13/2018 2.2574% 0.000061847 $6,705,222,040.34 0.999898 44 100
12/14/2018 2.2705% 0.000062205 $6,839,954,019.88 0.999895 47 102
12/15/2018 2.2705% 0.000062205 $6,839,954,019.88 0.999895 47 102
12/16/2018 2.2705% 0.000062205 $6,839,954,019.88 0.999895 47 102
12/17/2018 2.3045% 0.000063138 $7,014,159,694.11 0.999903 45 99
12/18/2018 2.3088% 0.000063255 $7,025,102,103.69 0.999913 44 98
12/19/2018 2.3027% 0.000063088 $7,283,937,691.14 0.999927 42 94
12/20/2018 2.3386% 0.000064070 $7,305,316,080.72 0.999926 42 94
12/21/2018 2.3481% 0.000064331 $7,218,965,114.03 0.999918 41 93
12/22/2018 2.3481% 0.000064331 $7,218,965,114.03 0.999918 41 93
12/23/2018 2.3481% 0.000064331 $7,218,965,114.03 0.999918 41 93
12/24/2018 2.3597% 0.000064650 $7,259,974,683.13 0.999932 40 91
12/25/2018 2.3597% 0.000064650 $7,259,974,683.13 0.999932 40 91
12/26/2018 2.3739% 0.000065039 $7,335,089,989.69 0.999919 39 90
12/27/2018 2.3724% 0.000064998 $7,484,502,647.15 0.999929 39 88
12/28/2018 2.3802% 0.000065212 $7,562,192,582.63 0.999942 36 85
12/29/2018 2.3802% 0.000065212 $7,562,192,582.63 0.999942 36 85
12/30/2018 2.3802% 0.000065212 $7,562,192,582.63 0.999942 36 85
12/31/2018 2.5549% 0.000069998 $7,738,483,374.11 0.999940 35 82
Average 2.3069% 0.000063203 $7,021,075,852.64 40 95
Daily Summary for December 2018
This material is for information purposes only. This information does not represent an offer to buy or sell a security. The above rate information is obtained from sources that are believed to be reliable; however, its accuracy or completeness may be subject to change. The TexSTAR management fee may be waived in full or in part at the discretion of the TexSTAR co-administrators and the TexSTAR rate for the period shown ref ects waiver of fees. This table represents historical investment performance/return to the customer, net of fees, and is not an indication of future performance. An investment in the security is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the issuer seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the security. Information about these and other program details are in the fund’s Information Statement which should be read carefully before investing. The yield on the 90-Day Treasury Bill (“T-Bill Yield”) is shown for comparative purposes only. When comparing the investment returns of the TexSTAR pool to the T-Bill Yield, you should know that the TexSTAR pool consist of allocations of specif c diversif ed securities as detailed in the respective Information Statements. The T-Bill Yield is taken from Bloomberg Finance L.P. and represents the daily closing yield on the then current 90-day T-Bill. The TexSTAR yield is calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940 as promulgated from time to time by the federal Securities and Exchange Commission.
TexSTAR Board Members
William Chapman Central Texas Regional Mobility Authority Governing Board President
Nell Lange City of Frisco Governing Board Vice President
Eric Cannon City of Allen Governing Board Treasurer
David Medanich Hilltop Securities Governing Board Secretary
Jennifer Novak J.P. Morgan Asset Management Governing Board Asst. Sec./Treas.
Monte Mercer North Central TX Council of Government Advisory Board
Becky Brooks City of Grand Prairie Advisory Board
Nicole Conley Austin ISD Advisory Board
David Pate Richardson ISD Advisory Board
James Mauldin University of North Texas System Advisory Board
Ron Whitehead Qualif ed Non-Participant Advisory Board
TexSTAR Participant Services
1201 Elm Street, Suite 3500
Dallas, TX 75270
1-800-839-7827
The material provided to TexSTAR from J.P. Morgan Asset Management, Inc., the investment manager of the TexSTAR pool, is for informational and educational purposes only, as of the date of writing and may change at any time based on market or other conditions and may not come to pass. While we believe the information presented is reliable, we cannot guarantee its accuracy.HilltopSecurities is a wholly owned subsidiary of Hilltop Holdings, Inc. (NYSE: HTH) located at 1201 Elm Street, Suite 3500, Dallas, Texas 75270, (214) 859-1800. Past performance is no guarantee of future results.
Investment Management Services are offered through J.P. Morgan Asset Management Inc. and/or its aff liates. Marketing and Enrollment duties are offered through HilltopSecurities and/or its aff liates. HilltopSecurities and J.P. Morgan Asset Management Inc. are separate entities.
ECONOMIC HIGHLIGHTS
Monthly Economic Review
Losing Faith in the Fed
Data unaudited. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial
developments. Investment involves risk including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be
achieved. All comments and discussions presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on
foreseen and unforeseen events. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell,
implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable
research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an indication of future
performance. Any financial and/or investment decision may incur losses.
The outcome of the Federal Reserve’s December
meeting unleashed a tidal wave of volatility in
the financial markets. While raising its target
rate 25 basis points and indicating “some
further gradual increases” are warranted, the
Fed stoked concerns that it is ignoring market
signals indicating the U.S. economy is cooling to
a point where additional rate hikes may
jeopardize the second longest economic
expansion in U.S. history. As a result, equity
markets were down sharply, and Treasury yields
were considerably lower in the aftermath of the
meeting.
Although the U.S. economy may be cooling, it is
far from collapsing. Despite the sharp decline in
the stock market, a government shutdown, and
unprecedented open criticism of the Fed from
President Trump, consumer spending appeared
quite strong over the holiday season. With the
unemployment rate historically low and wages
on the rise, December’s Fed rate hike was
largely anticipated. However, the storm clouds
on the horizon have given the market, but not
the Fed, pause.
The laundry list of market concerns is well
known from ongoing trade tensions between the
U.S. and China to the upcoming U.K. vote on a
Brexit deal and the budget showdown between
President Trump and Congress. The market
craves clarity, and in its absence, volatility
typically ensues. The Fed’s dubious track record
forecasting economic growth and the lag in
which monetary policy works have the markets
concerned a policy error may occur.
Having acknowledged the need to monitor
global economic and financial market events, it
would be hard for the Fed to ignore the negative
sentiment at year end. While the Fed may forge
ahead with additional rate hikes in 2019, the
impression that monetary policy is on auto-pilot
has dented the market’s confidence. If the Fed
were to convey a bit more flexibility, it may find
the road a bit less bumpy as we kick off the new
year.
Current Economic Releases
Data Period Value
GDP QoQ Q3’ 18 3.40%
US Unemployment Dec '18 3.90%
ISM Manufacturing Dec '18 54.10
PPI YoY Nov '18 1.60%
CPI YoY Nov '18 2.20%
Fed Funds Target Jan. 7,
2018
2.25% -
2.50%
Treasury Yields
Maturity 1/7/19 12/7/18 CHANGE
3-Month 2.366% 2.386% -0.020%
6-Month 2.502% 2.533% -0.031%
1-Year 2.567% 2.676% -0.108%
2-Year 2.520% 2.711% -0.191%
3-Year 2.500% 2.713% -0.213%
5-Year 2.519% 2.689% -0.170%
10-Year 2.682% 2.845% -0.163%
30-Year 2.980% 3.140% -0.160%
Agency Yields
Maturity 1/4/19 12/7/18 CHANGE
3-Month 2.514% 2.411% 0.103%
6-Month 2.603% 2.525% 0.078%
1-Year 2.709% 2.674% 0.035%
2-Year 2.584% 2.783% -0.199%
3-Year 2.576% 2.809% -0.233%
5-Year 2.662% 2.873% -0.211%
Commercial Paper (A1/P1)
Maturity 1/4/19 12/7/18 CHANGE
1-Month 2.480% 2.350% 0.130%
3-Month 2.710% 2.680% 0.030%
6-Month 2.830% 2.850% -0.020%
9-Month 2.900% 2.990% -0.090%
Source: Bloomberg
January 2019
1
Federal Reserve Bank of Dallas U.S. Economic Update
U.S. Economy Finishes the Year Strong
December 24, 2018
The U.S. economy continued its expansion in the fourth quarter, fueled in part by strong consumption and ris-ing wage growth. Inflation remained at or around the Federal Reserve’s 2 percent target. Volatility in financial markets persisted, but its effects on the near-term out-look remain murky.
Fourth-Quarter Growth Suggests Return to Normal Levels
Preliminary estimates suggest that output growth re-mains healthy but has slowed in the fourth quarter, following strong growth in the previous two quarters. Forecasts from the Survey of Professional Forecasters and the Atlanta and New York Federal Reserve Banks show fourth-quarter gross domestic product (GDP) growth of around 2.5 percent, a decline of nearly 1 per-centage point from the third-quarter rate of 3.4 percent (third estimate). Weaker growth in the fourth quarter may be a result of the waning effects of the tax cuts enacted earlier this year and uncertainty surrounding current trade disputes.
A decomposition of third-quarter GDP shows personal consumption expenditures (PCE) and inventory invest-ment were strong positive contributors to output growth at 2.5 and 2.3 percentage points, respectively. Drags on output included net exports (exports minus imports) and residential investment.
Labor Market Tightens, Wages Rise
Unemployment remained at 3.7 percent for the third straight month in November. Total nonfarm payrolls increased by 155,000 in November compared with Oc-tober’s 237,000 gain. The Job Openings and Labor Turnover Survey (JOLTS) provides data on labor mar-ket conditions two months prior to its release. Using JOLTS, labor market tightness can be estimated and is typically measured as the number of job openings per unemployed person. This value reached 1.18 in Octo-ber, its highest level since the early 1970s. The JOLTS “quits rate,” which measures voluntary departures (typically due to workers switching jobs) as a fraction of total employment, was 2.3 percent in October, close to its highest rate on record since 2000. This elevated quits rate suggests workers are increasingly being poached, further pressuring wages.
Wage growth continued its upward trajectory in No-vember (Chart 1). Growth in average hourly earnings was 3.05 percent, near its October increase of 3.1 per-cent. October was the first time since the Great Moder-ation period (1985–2007) that growth in average hour-ly wages exceeded 3 percent. The Atlanta Fed Wage Tracker’s three-month moving average and the Em-ployment Cost Index, two other measures of wage growth, also saw slightly higher growth rates in their
latest readings. Nominal wage growth is now outpacing in-flation, indicating steady growth in real wages. After adjust-ing for inflation, the recent estimates of all three measures are about 1 percentage point above their 2008–13 averag-es.
Inflation Remains Near Fed’s Target
Inflation remained at or close to the Federal Reserve’s 2 percent target in November (Chart 2). The headline Con-sumer Price Index (CPI) experienced a modest decline, dropping from 2.5 percent in October to 2.2 percent in No-vember. Similarly, headline PCE dipped to 1.8 percent in November from its October level of 2.0 percent.
Excluding energy and food from inflation estimates, rates were little changed from October to November. Core CPI inched up by 0.1 percent to 2.2 in November, while core PCE rose to 1.9 percent over the same period. Long-term inflation expectations remain stable as well. The Survey of
2
Federal Reserve Bank of Dallas U.S. Economic Update
Professional Forecasters’ five-year/five-year-forward median CPI expectation (expected average inflation over the five-year period beginning five years from now) remained at its third-quarter level of 2.2 per-cent in the fourth quarter.
Financial Sector Experiences Higher Volatility
In recent weeks, investors’ unease has been reflect-ed in Treasury note yield spreads. As of Dec. 14, the average 10-year Treasury yield for the month stands at 2.9 percent—its lowest monthly average since Au-gust. Similarly, yields of several other maturities have declined at varying rates during the past four weeks, leading to partial inversions of the yield curve. For instance, on Dec. 10, the difference be-tween the five-year and three-year note yields turned negative. The 10-year/one-year and 10-year/two-year spreads have also seen steady declines since the beginning of the year and are currently hovering near 0.1 percent.
Financial markets pay close attention to yield-curve inversions due to their correspondence with a higher perceived probability of recession. The Federal Re-serve Banks of Cleveland, Dallas and New York pub-lish estimates on the probability of an impending re-cession (Chart 3). Though there has been an uptick in all three probability estimates, ranging from 1 to 17 percent, these values are still significantly below those observed prior to previous recessions. In addi-tion, volatility in the financial sector has not yet spread to the real economy, though it does bear watching in the near term.
—Andrew Gross
……………………………………………………………………………………
About the Author
Gross is a research assistant in the Research Depart-ment at the Federal Reserve Bank of Dallas.
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