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HomeMy WebLinkAbout2015 Comprehensive Annual Financial ReportCITY OF COLLEYVILLE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 Prepared by Finance Department Brian Hogan Chief Financial Officer Karen Hines Accounting Manager CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS YEAR ENDED SEPTEMBER 30, 2015 INTRODUCTORY SECTION Page Number Letter of Transmittal .. . .. . .. . . . . .. . .. . . . .. .. .. .. .. .. .. .. .... .. ...... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . ... ... . . .. . . . . . . .. .. 3 - 6 Organizational Chart........................................................................................................... 7 Certificate of Achievement................................................................................................. 8 Principal Officials . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . ... . . . . . .. . .. . . . . 9 FINANCIAL SECTION Independent Auditors' Report ............................................................................................ . Management's Discussion and Analysis ........................................................................... . Basic Financial Statements Statement of Net Position ............................................................................................... . Statement of Activities .................................................................................................... . Balance Sheet -Governrnental Funds ............................................................................ . Statement of Revenues, Expenditures and Changes in Fund Balances -Governrnental Funds ........................................................................ . Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities ................................................................................................. . Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -General Fund .................................................. . 13 -15 19-28 30-31 32-33 34-35 36-37 39 41 CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS (Continued) YEAR ENDED SEPTEMBER 30, 2015 FINANCIAL SECTION (Continued) Basic Financial Statements (Continued) Statement of Net Position-Proprietary Funds ............................................................... . Statement of Revenues, Expenses and Changes in Fund Net Position -Proprietary Funds ........................................................................ . Statement of Cash Flows -Proprietary Funds ................................................................ . Statement of Fiduciary Net Position-Fiduciary Funds ................................................. . Notes to the Financial Statements ................................................................................... . Required Supplementary Information Page Number 42 43 44-45 46 47-74 Schedule of Changes in Net Pension Liability and Related Ratios................................. 76 Schedule of Contributions................................................................................................ 77 Nonmajor Governmental Funds Combining Balance Sheet ............................................................................................... . 80-85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................... . 86-91 Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual -Debt Service Fund ........................................... . 93 Agency Funds Combining Statement of Fiduciary Net Position............................................................. 96 Combining Statement of Changes in Assets and Liabilities............................................ 97 CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS (Continued) YEAR ENDED SEPTEMBER 30, 2015 STATISTICAL SECTION (Unaudited) Net Position by Component ................................................................... . Changes in Net Position ......................................................................... . Fund Balances -Governmental Funds .................................................. . Changes in Fund Balances -Governmental Funds ............................... . Assessed Value and Estimated Actual Value of Taxable Property ............................................................................. . Direct and Overlapping Property Tax Rates ......................................... .. Principal Property Taxpayers ................................................................. . Property Tax Levies and Collections ..................................................... . Principal Water Customers .................................................................... . Ratios of Outstanding Debt by Type ..................................................... . Ratios of General Bonded Debt Outstanding ........................................ .. Direct and Overlapping Governmental Activities Debt.. ...................... .. Legal Debt Margin Information ............................................................. . Pledged Revenue Coverage ................................................................... . Demographic and Economic Statistics .................................................. . Principal Employers ............................................................................... . Fulltime Equivalent City Government Employees by Function/Program ............................................................................... . Operating Indicators by Function/Program ........................................... . Capital Asset Statistics by Function/Program ....................................... .. Exhibitff able 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Page Number 100-101 102-105 107 108 -109 110 111 112 113 114 115 116 117 119 120-121 122 123 124 125 126 COMPLIANCE CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS (Continued) YEAR ENDED SEPTEMBER 30, 2015 Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................................... . Independent Auditors' Report on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-133 ...................................................................................................... . Schedule of Expenditures of Federal Awards .................................................................... . Notes to Schedule of Expenditures of Federal Awards ..................................................... . Schedule of Findings and Questioned Costs ...................................................................... . Summary Schedule of Prior Audit Findings ...................................................................... . Pa g e N umb er 129-130 131-132 133 134 135 136 INTRODUCTORY SECTION 1 THIS PAGE INTENTIONALLY LEFT BLANK 2 PROFILE OF THE GOVERNMENT On January 10, 1956, the City of Colleyville was incorporated and adopted a home-rule charter on January 15, 1977. It has a Council-Manager form of government with policy making and legislative authority vested in a 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. 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 Colleyville Economic Development Corporation (CEDC) Colleyville Crime Control and Prevention District Colleyville Tax Investment Financing Reinvestment Zone Zone Number One (TIF) Method of Inclusion Blended Blended 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 Sewer Enterprise Fund. Detail control is maintained at the line item level by encumbering available funds at the time a purchase order is written. Encumbrances lapse at fiscal year-end, but can be re-appropriated through a budget amendment during the following fiscal year. The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the City Council. LOCAL ECONOMY The City of Colleyville is a residential-oriented community located 11 miles northeast of the City of Fort Worth, 22 miles northwest of Dallas and 5 miles west of Dallas/Fort Worth International Airport in Northeast Tarrant County. Relocations of residents to the City continued in fiscal year 2015, as did commercial development. During the fiscal year, the City issued 181 residential building permits and the average square footage of a residence was almost five thousand square feet. The City also issued 105 certificates of occupancy for new, remodeled, and expanding businesses. The City's strong economy supports a 94% occupancy rate of existing retail and office spaces. 4 In fiscal year 2015, two multi-tenant retail centers were completed. Both projects continue to bring new tenants and sales tax dollars to Colleyville. • Colleyville Downs, a 200,910 square foot Class "A" multi-tenant retail property anchored by Whole Foods, Petco, and Ace Hardware, added an outparcel pad site in 2015 that is shared by a Zoes Kitchen and Snuffer's Restaurant and Bar. • Colleyville Stampede includes 12,84 7 square feet of new retail and restaurant space. Transportation projects completed in fiscal year 2015 include the roundabout at the Jackson Road and Cheek-Sparger Road intersection, the Kingston Addition street rehabilitation project, and three quiet zone grade crossings of the Cotton Belt railroad at John McCain, Bransford, and Pleasant Run roads. Transportation projects in progress at the end of fiscal year 2015 are State Highway/Colleyville Boulevard (final construction of Phase 1 and final design of Phases II and III), Pleasant Run Road street reconstruction and trail improvements, and final design for Phase I of Glade Road. Destination Colleyville, an update to the City's comprehensive master plan, was adopted on December 15, 2015. The plan provides a common vision and goals for economic stability, transportation, housing and neighborhoods, City services and facilities, future land use, and character and placemaking. For the Future. In fiscal year 2016, scheduled major transportation projects include construction for Phases II and III of State Highway 26/Colleyville Boulevard, and Glade Road (completion of Phase I and design work for Phases II, III, and IV). 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 2015. At the end of fiscal year 2015, 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 Fiscal Year 2014, the City Council adopted the City's Strategy Map, which incorporated focus areas that had been present in prior strategic plans dating back to 2010. The four focus areas are: • Protect and Preserve Colleyville Neighborhoods • Provide Sustainable Government • Encourage Economic Development • Provide Core Services There are four perspectives from which to view, and address, the focus areas: • Leaming and Growth • Financial Stewardship • Business Management • Customer Service Each perspective is represented by a tier on the Strategy Map and contains objectives that must be achieved to ensure we are ultimately delivering on our focus areas. Input from the biennial citizen survey, biennial employee survey, and the City Council was used to select objectives included on the Strategy Map. 5 In fiscal year 2015, departments created Business Plans, which identify their core services, as well as strengths and opportunities for each. Each core service is also linked to one or more objectives on the City's Strategy Map, providing linkages and responsibility for furthering the City's goals. Department business plans are updated in advance of, and ultimately drive, all budget requests. The future outlook section of the Business Plans ensures that staff is constantly monitoring needs and trends on the horizon. As a part of the annual budget process, an updated five-year forecast for operating funds is presented to City Council at the first of two budget work sessions. The budget process also includes an annual update of the five-year capital improvements program (CIP). Improving the process each year, the CIP now includes specific street projects to be completed as opposed to a single project budget for all street maintenance that does not specifically identify streets to be improved. In Fiscal Year 2015, the City's Water and Wastewater Master Plan was updated and identifies future utility projects that are needed, which will be prioritized and scheduled in future CIPs. The City updated the water/waste water rate schedule in July of 2015 in order to provide resources for reinvestment into the system. A WARDS AND ACKNOWLEDGEMENTS Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Colleyville for its comprehensive annual financial report for the fiscal year ended September 30, 2014. This was the twenty fifth 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 comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA's Distinguished Budget Presentation award for its annual budget dated October 1, 2014. In order to qualify for this award, the City's budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. Acknowledgements.:. The preparation of this report could not be accomplished on a timely basis without the dedicated endeavors of the entire staff of the Finance Department. 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, B~,CGFO hief Financial Officer L/()~ Karen Hines Accounting Manager 6 PARKS AND PLANNING AND RECREATION I ZONING ADVISORY LIBRARY COMMISSION BOARD BOARD L I I 1 I I COLLEYVILLE ZONING SIGN ECONOMIC BOARD OF BOARD OF DEVELOPMENT ADJUSTMENT APPEALS CORPORATION - - COMMUNICATIONS ._ DIRECTOR ~ MARKETING IJ Mona Gandy L CHIEF FINANCIAL H '--OFFICER Brian Hogan L.__ - HUMAN RESOURCES I 1--DIRECTOR JJ Rachel Huitt STRATEGIC SERVICES ..._ MANAGER ,_ Adrienne Lathery I C\TY 0/:' ~ COLLEYVILLE 1'cx/\s UTILI1Y BILLING MUNICIPAL COURT COLLEYVILLE CENTER MANAGER Leslie Hill CITIZENS OF COLLEYVILLE l I CllY CRIME CONTROL AD HOC AND PREVENTION COUNCIL DISTRICT COMMITTEES BOARD I' I I ' CITY ATTORNEY CilY MANAGER MUNICIPAL COURT Matthew Boyle Jennifer Fadden JUDGE Sara Jane de/ Carmen I I DEPUTY CilY MANAGER H 1-- I-- ..._ ,_ j Chris Fuller -I CI1Y SECRETARY Amy Shelley ~ COMMUNI1Y DEVELOPMENT BUILDING DIRECTOR -INSPECTION Abra Nusser PLANNING ECONOMIC DEVELOPMENT I r GIS DIRECTOR Marty Wieder ~-- LIBRARY AND ~ RECREATION DIRECTOR SENIOR Mary Rodne CENTER SH 26 PROJECT COORDINATOR James Hubbard PUBLIC V :ECTOR I J 'eremyHutt ENGINEERING CONSTRUCTION MANAGEMENT & INSPECTION WATER AND WASTEWATER OPERATIONS STREET MAINTENANCE DRAINAGE BUILDING MAINTENANCE FLEET MAINTENANCE 7 j TAX INCREMENT COLLEYVILLE FINANCING CENTER DISTRICT BOARD ADVISORY BOARD I 1 T EVENTS HISTORICAL STEERING PRESERVATION COMMITTEE COMMITTEE j ASSISTANT CITY MANAGER/ DIRECTOR OF PUBLIC SAFETY Mike Holder - PATROL INVESTIGATIONS ....___ CODE ENFORCEMENT PARKS MANAGER Heather Dowell I- ~ INFORMATION SERVICES MANAGER I- Chris Pena FIRE CHIEF Brian Riley ,____ I FIRE/EMS OPERATIONS INSPECTIONS INVESTIGATIONS EMERGENCY MANAGEMENT Effective 1/4/16 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Colleyville Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2014 Executive Director/CEO 8 CITY OF COLLEYVILLE, TEXAS HOME RULE, COUNCIL -MANAGER FORM OF GOVERNMENT CITY OFFICIALS YEAR ENDED SEPTEMBER 30, 2015 David Kelly Mayor Carol Wollin Councilmember, Place 1 Chuck Mogged Councilmember, Place 2 Chris Putnam Councilmember, Place 3 Jody Short Councilmember, Place 4 Nancy Coplen Councilmember, Place 5 Mike Taylor Mayor Pro Tern and Councilmember, Place 6 Jennifer Fadden City Manager Brian Hogan Chief Financial Officer Karen Hines Accounting Manager 9 THIS PAGE INTENTIONALLY LEFT BLANK 10 FINANCIAL SECTION 11 THIS PAGE INTENTIONALLY LEFT BLANK 12 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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Colleyville, Texas, as of September 30, 2015, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note I to the financial statements, in 2015 the City adopted new accounting guidance, Governmental Account Standards (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27 and Governmental Account Standards (GASB) Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment ofGASB Statement No. 68. 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, schedule of changes in net pension liability and related ratios and schedule of contributions, on pages 19-28 and 76-77 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. 14 THIS PAGE INTENTIONALLY LEFT BLANK 16 MANAGEMENT'S DISCUSSION AND ANALYSIS 17 THIS PAGE INTENTIONALLY LEFT BLANK 18 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, 2015. 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 3 - 6 of this report. FINANCIAL HIGHLIGHTS • The assets of the City of Colleyville exceeded its liabilities as of September 30, 2015, by $199,166,837 (net position). Of this amount, $35,942,295 (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 $17,586,666 including pnor period adjustment. • As of the close of the current fiscal year, the City of Colleyville's governmental funds reported combined ending fund balances of $37,042,913. Of this amount, $8,736,746 is unassigned fund balance available for use within the City's fund designation and fiscal policies. • As of September 30, 2015, unreserved, unassigned fund balance for the General Fund was $8,736,746 or 43.1 % 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 30 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. 19 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, Community Development and Engineering, Fire and Rescue, Leisure Services, Maintenance, Municipal Court, Police, and Streets and Drainage. The business-type activities of the City include Water and Wastewater, and Drainage Utility. Fund financial statements -A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the City can be divided into two categories -governmental funds and proprietary funds. Governmental Funds -Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Beginning on page 34 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. 20 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 42 of this report provide separate information for the Water and Wastewater and Drainage Utility Enterprise Funds since these are considered to be major funds of the City. Notes to the Financial Statements -The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 47 -74 of this report. Other Information -In addition to the basic financial statements and accompanying notes, this report also presents combining fund statements and schedules that further support the information in the financial statements. The combining fund statements and schedules for nonmajor funds are presented immediately following the notes to the financial statements beginning on page 80 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 $199 ,166,837 as of September 30, 2015. The largest portion of the City's net position ($143,782,311) 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. Current and other assets Capital assets Total assets Deferred outflow of resources Total deferred outflow of resourc es Other liabiliti es Long-term li abilities Total liabilities Net position : Net investment in cap ital assets Restricted Unrestricted Total net position $ CITY OF COLLEYVILLE'S NET POSITION Governmental Activities 2015 42,899,632 $ 11 3 ,463,038 156,362,670 325.573 325,573 3 ,937,454 13,668,452 17 ,605 ,906 98,958,693 19,442,231 20,681,413 2014 38 ,081 ,951 $ l 05, 718,089 143 ,800,040 3,511 ,944 15,102.680 18 ,614,624 89,754,051 17,500,426 17 ,930,939 Bu siness-typ e Activities Totals 2015 2014 2015 2014 17,075,594 $ 16,207,650 $ 59,975,226 $ 46,323 ,327 43,861,991 159,786,365 63 ,398,921 60 ,0 69.64 1 219 ,761,591 142,715 142 ,715 2,247,804 1,209,332 3,457,136 44,823,618 15 ,260 ,882 116,835 116,835 2,100 ,979 J ,690,742 3,79 1,721 41,567,161 14,827,594 468 ,288 468,288 6,185 ,258 14 877,784 21,063,042 143,782,311 19,442,231 35 ,942,295 54,289,601 149 ,580,080 203,869,68 .1 116,835 116,835 5,612,923 16 ,793,422 22,406,345 131,321,212 17 ,500,426 32,758,533 $ 139,082,337 $ 125 ,185,416 $ 60,084,500 $ 56,394,755 $ 199,166,837 $ 181,580,171 21 A portion of the City's net position ($19,442,231) represents resources that are subject to external restriction on how they may be used. The remaining balance ($35,942,295) 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. As of September 30, 2015, 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 $9,545,509 in net position relating to governmental activities is primarily due to the acquisition of infrastructure improvements from developer contributions, increases in cash due to increases in sales tax, property tax, and building related revenues, and repayment of long term debt. The increase in net position of business type activities $3,101,110 is related to the contributions of water and sewer infrastructure improvements from developers, repayment of long term debt and from water sales, as a tiered rate structure has been in place since December 2012, whereby customers who have monthly use greater than 20,000 gallons pay higher rates in increasing tiers. Analysis of the City's Operations -The following table provides a summary of the City's operations for the year ended September 30, 2015. Governmental activities increased the City of Colleyville's net position by $9,545,509. Business-type activities contributed an increase to the City's net position of $3,101,110. 22 CITY OF COLLEYVILLE'S CHANGES IN NET POSITION Governmental Activities Bus iness-type Activities Totals 2015 2014 2015 2 014 2015 2014 Revenues : Program revenues: Charges for services $ 4,787,351 $ 3,977,375 $ 16,748,728 $ 15,729,482 $ 21,536,079 $ 19,706,857 Operating grants and contributions 450,559 486 ,869 450,559 486,869 Capital grants and contributions 7,712,266 5,943,465 2,362,261 2,707,835 10,074,527 8,651,300 General revenues: Ad valorem taxes 13,493,621 12,950,832 13,493 ,621 12,950,832 Sales taxes 6,705,914 6,472,195 6,705,914 6,472,195 Franchise taxes 2,319,723 2,172,801 2 ,319,723 2,172,801 Other taxes 107,977 98,160 107,977 98,160 Investment earnings 100,842 39,697 52,480 23,655 153,322 63,352 Miscellaneous 82,873 61,643 82,873 61,643 Gain on sale of cap i tat assets 810,020 5,062 40,814 5,062 850.834 Total revenues 35,761,126 33,013 ,057 19,168 ,531 18 ,501 ,786 54,92 9,657 51,514,843 Expenses : General government 4,676,185 4,103,928 4,676,185 4,103,928 Community development and engineering 1,582,461 1,613 ,311 1,582,461 1,613,311 Fire and rescue 5,264,026 4,625 ,036 5,264,026 4,625,036 Leisure services 4,042,252 3,776,068 4,042,252 3,776,068 Maintenance 684,301 575,696 684,301 575,696 Municipal court 522,422 501,604 522,422 501,604 Police 5,681 ,698 5,019,343 5,681,698 5,019,343 Streets and drainage 4 ,404,701 4 ,128 ,365 4 ,404,701 4,128,365 Water and wastewater 14,055 ,232 13,238,893 14,055,232 13,238,893 Drainage 833 ,599 571 ,886 833,599 571,886 Interest on long-term debt 536,161 717 ,045 536,161 717,045 Total expenses 27 ,394,207 25 ,060,396 14,888,831 13 ,810.779 42 ,283 ,038 38,871,175 Increases in net position before transfers 8,366,919 7,952,661 4,279,700 4,691 ,007 12 ,646,619 12,643,668 Transfers 1,178,590 1,180,292 1,178 ,5 90) 1,180,292) Change in net position 9,545,509 9,132,953 3,101,110 3,510,715 12 ,646,619 12,643,668 Net position, beginning 125,185,416 116 ,211 ,275 56,3 94,755 52,972,667 181 ,580,171 169,183 .942 Prior period adjustments 4,351.412 158 ,81 2 ) 588,635 88 ,62 7) 4 ,940,047 247,4 39) Net position, ending $ 139,082,337 $ 125,185,416 $ 60,084,500 $ 56,394,755 $ 199,166 ,837 $ 181,580,171 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS Governmental funds -The focus of the City of Colleyville's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City 's financing requirements. In particular, 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. 23 At the end of the current fiscal year, the City of Colleyville's governmental funds reported combined ending fund balances of $37,042,913. Approximately 24% of this total amount ($8,736,746) constitutes unassigned fund balance. The remainder of the fund balance ($28,306,167) is reserved to indicate that it is not available for new spending because it has already been committed to pay for encumbrances or debt service or to provide for other items. Refer to page 34 and 35 of this report for a more detailed presentation of governmental fund balances. The decrease of approximately $1,344,000 in unrestricted fund balance in the governmental funds for fiscal year 2015 is due to a number of the following factors. In the General Fund, the City's original budgeted expenditures exceeded budgeted revenues by ($1,164,638). A one-time funding of $300,000 to the Capital Projects Fund was budgeted for use on future capital projects. In addition, the adopted budget provides a base level of $2,000,000 for street maintenance and rehabilitation and an additional $1,000,000 through a strategic draw-down of the General Fund balance. This is a $600,000 increase from fiscal year 2014 and will be used as a funding source in the comprehensive CIP plan to be distributed among various projects based on relative priority. This planned utilization of fund balance in the General Fund was included in the ten year financial forecast, and the fiscal year 2015 ending fund balance is greater than the three month policy requirement. The actual decrease to fund balance for the General Fund was $(1,343,021) for fiscal year 2015, primarily due to greater than anticipated revenues from sales taxes, ambulance revenues, building permits, property taxes and reductions to overall departmental expenditures. Also included was City Council approved authorization to provide for a transfer of unspent street maintenance funds at the end of the fiscal year ($1,708,929) and the authorized transfer of the difference in total revenues and expenditures of the General Fund to the Capital Projects Fund ($4,265,677) for use in future CIP street rehabilitation projects that includes ($2,356,749) for Colleyville Boulevard (SH26) enhancements. The aforementioned year end transfers to the Capital Projects Fund resulted in a net increase of $1,649,254 to that fund balance, and will be used for future street capital projects. As the aforementioned transfers from the General Fund to the Capital Projects Fund were contained within funds that are in the governmental fund classification, there was not a major increase or decrease reflected in the unrestricted total for governmental funds. Additionally, there was a utilization of $152,666 of surplus fund balance in the adopted fiscal year 2015 Debt Service budget for the third year lease payment on the radio tower and equipment, due to the current level of existing fund balance and declining future debt obligations. The actual fiscal year 2015 decrease to fund balance for the Debt Service Fund was ($72,980), due to greater than anticipated property tax collections. Proprietary funds -The City's proprietary fund statements beginning on page 42 of this report provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the respective major proprietary funds are Water and Wastewater ($13,665,689), and Drainage Utility ($1,595,193). The Water and Wastewater Fund experienced an increase in total net position of $3,003,713 during Fiscal Year 2015 due to revenue from the pass through of the Trinity River Authority wastewater rate increase and the receipt of developer contributions from the eight new subdivisions, which accounted for approximately $2.4 million. The Drainage Utility fund's net position increased by $97,397, due to increased service charge revenue from new accounts and reductions to expenditures. 24 Governmental Activities -There was an increase in revenues from sales tax due to improving economic conditions and the capital grants category from increased developer contributions and impact fees stemming from new development and the addition of eight subdivisions in Colleyville in fiscal year 2015. There was an increase in license and permit revenues due to an increase of 73 residential building permits from fiscal year 2014 and additional commercial construction. The property tax base increased approximately $124 million (4.8%), due to the new residential and commercial construction, and the current year tax collection rate was over 99.56% of the levy. In fiscal year 2013, there was a compensation and classification study performed. This resulted in a new compensation structure that was implemented in fiscal year 2014. Employees earning below the new minimum salary of their position's pay range received a market adjustment, not to exceed 10 percent, of this new structure. Employees earning more than 10 percent below the new minimum salary will receive the remainder of the adjustment over the next one to two fiscal years so that an individual's pay increase does not exceed 10 percent in any given year. Fiscal year 2015 will fund year 2 of this 3 year program. Also in fiscal year 2015, the City added several new positions including one police officer, three firefighter/paramedics, and a temporary construction manager to serve through fiscal year 2019 as a coordinator for the Colleyville Boulevard (SH26) project. Some positions were upgraded from part-time to full-time positions including an administrative support position in the library, a records clerk in the police department, and a maintenance and operations technician. Major capital equipment purchases included five vehicles for the police department (crime control district), maintenance equipment for the parks department, and new media equipment for the fire department training room. Business-type Activities -The City has two enterprise operations, the Water and Wastewater Fund and the Drainage Utility Fund. Total operating revenues of the Water and Sewer fund were $15,800,163 for the fiscal year. Water revenues increased due to the Stage 1 water restrictions being lifted and an increased usage during the summer months. Water usage during these months was billed at higher rates per the tiered rate structure that was implemented to encourage conservation. Wastewater revenues decreased compared to fiscal year 2014 due to an abnormally wet spring and overall decreased water usage for the entire year. The coverage ratio for debt for this fund was 7.63 for the fiscal year, exclusive of transfers. The slight increase in the Drainage Utility Fund's revenues was due to new residential and commercial construction. Increases in the Water and Wastewater Fund expenses relate to the increase in cost of purchased water and treatment of wastewater from Trinity River Authority. The Authority's rate increase relates to higher cost for electricity, debt issuance for plant expansion, rehabilitation and replacement of system-wide aging infrastructure, and compliance with federal water and wastewater mandates. General Fund Budgetary Highlights -The City made revisions to the original appropriations approved by the City Council, which resulted in an increase to the General Fund budget of $200,000 for a transfer to the Capital Projects Fund for future expenditures for the SH 26 reconstruction. Also included with this revision was a City Council adopted authorization to transfer unspent street resurfacing appropriations to the Capital Projects fund and the difference between total revenues and expenses for future street capital projects ($4,265,677). This transfer was funded primarily by the receipt of higher than anticipated sales tax, permit revenues, property tax collections, inspection fees for the eight new subdivisions, ambulance collections, and lower than anticipated expenditures due to unfilled positions. This accounted for the variance in transfers out from the adopted budget. 25 The General Fund's overall budgeted revenue increased by $1,737,822. Major increases in General Fund property taxes are due to the declining allocation of the interest and sinking fund rate (Debt Service portion) to repayment of debt and an increase to the operations and maintenance portion of the rate (General Fund portion), as the total tax rate was unchanged from the prior year. There was a budgetary and actual increase in sales tax revenue due to improving economic conditions and continued growth in commercial retail development. Also, revenue increases were derived from the transfer from the Utility Fund for the administrative and franchise fee that is based upon water and wastewater sales. Also included is the $1,000,000 drawdown of General Fund balance, which funded the increase in the street overlay budget. Refer to the General Fund Statement of Revenue, Expenditures and Changes in Fund Balances -Budget and Actual on page 41 of this report for a detailed presentation of the actual General Fund operations compared to both the original and final budget for fiscal year 2015. CAPITAL ASSETS The City of Colleyville' s investment in capital assets for its governmental and business-type activities as of September 30, 2015, amounts to $159,786 ,365 (net of accumulated depreciation). This investment in capital assets includes land, building, equipment, improvements other than buildings, infrastructure, and construction work in progress . Major capital asset events occurring during the current fiscal year included the following: Land • Capitalized almost $4.9 million in street improvements and developer contributions , primarily with the completion of eight new subdivisions. • Capitalized approximately $2.4 million in water and wastewater system developer contributions and, • Capitalized approximately $335 ,000 in park improvements, including landscaping and amenities for City Park. CITY OF COLLEYVILLE'S CAPITAL ASSETS AT YEAR-END Governmental Activities Business-type Activities Total'i 2015 2014 2015 2014 2015 $ 9,178,641 $ 9,178 ,641 $ 304,839 $ 304,839 $ 9,483,480 $ Buildings and improvements 46,882,488 46,132,834 53,922 53,922 46,936,410 Equipment 11,007,458 10 ,773,596 2,008,921 2,133,927 13,016,379 Infrastructure/water 2014 9,483,480 46,186,756 12,907,523 di<ltribution sewer collection 93,599,298 84,231,649 74,597,681 72 ,218,901 168,196,979 156,450,550 Construction in progress 5,122,642 3,831,697 3 ,773,157 1,715,997 8,895,799 5,547,694 Less: accumulated depreciation 52,327,489) 48,430,328) 34,4 15,193 ) 32,565,595 ) 1!6, 742,682) 80,9 95,923) Total capital assets $ 113,463,038 $ 105 ,718,089 $ 46,323,327 $ 43,861,991 $ 159,786,365 $ 149,580,080 Additional information on the City's capital assets can be found in Note 4, pages 61 -62 of this report. 26 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 $16 ,044 ,345. Of this amount, $6 ,920 ,000 represents bonded debt backed by the full faith and credit of the government, $6,935 ,000 represents bonds secured by sales tax revenues, $850,000 represents bonds secured solely by water and sewer revenues, and $690,000 represents bonds secured solely by drainage utility system revenues . The City's capitalized lease obligations of $649,345 pertain to the prior year lease purchase of a fire pumper truck and mid-mount aerial platform fire apparatus, and P25 radio tower and equipment conversion. OUTSTANDING DEBT AT YEAR-END BONDS, NOTES AND CAPITALIZED LEASE OBLIGATIONS PAYABLE Governme ntal Activities Business-type Activities Totals 2015 2014 2015 2014 2015 2014 General obligation bonds and certificates of obligation $ 6,920,000 $ 7,660,000 $ $ $ 6,920,000 $ 7,660,000 Sales tax revenue bonds 6,935,000 7,330,000 6,935,000 7,330,000 Revenue bonds payable 1,540,000 2 ,225,000 1,540,000 2,225,000 Capitalized lease obligations 649,345 974,038 649 .345 974,038 $ 14,504,345 $ 15,964,038 $ 1,540,000 $ 2,225,000 $ 16,044,345 $ 18 ,189,038 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. General Obligation Bonds Water Revenue Bonds Fitch Ratings AAA AAA Standard & Poor's AAA AAA The City's General Obligation bonds and Water Revenue bonds are both rated AAA by both Standard and Poor's and Fitch Ratings. These are the highest bond ratings assigned to municipal debt by these ratings agencies. Additional information on the City of Colleyville's long term debt can be found in footnote 4 on pages 63-67 of this report. 27 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The fiscal year 2016 General Fund budget including transfers is based on a projected revenue increase of 4 .1 % as compared to the fiscal year 2015 adopted budget. There is a 3 .1 % increase projected in General Fund property tax revenue, due to a declining portion of the total tax rate committed to debt service repayment (interest and sinking portion) thereby increasing the amount allocated to the General Fund (operations and maintenance portion) and a 2.8% increase in valuation. This is the largest revenue source and comprises 53.8% of General Fund revenues. The total tax rate for fiscal year 2016 is $.3559, which is unchanged since fiscal year 2008. Sales tax is the second largest revenue source, however, the city's primary commercial corridor along Colleyville Boulevard (SH26) will be under construction for the next several years. Fiscal year 2016 sales tax is only projected to grow 1 % from fiscal year 2015 as construction is expected to impact traffic to nearby businesses. There continues to be a planned utilization of $1,000,000 surplus fund balance in the adopted fiscal year 2016 General Fund budget to provide funding for a portion of the $3.0 million street rehabilitation budget. Additionally, there is a utilization of $152,666 of fund balance in the adopted fiscal year 2016 Debt Service budget for the fourth year lease payment on the radio tower and equipment due to the current level of existing fund balance. The use of fund unrestricted fund balance in both funds is contained in the ten year financial plan. As a local government, we exist to provide certain services that citizens expect, at the level they expect, for a good value. The adopted fiscal year 2016 budget provides a staffing level increase of 2.5 more full time equivalent employees to fully fund the programs and services expected by the citizens. The positions include the addition of one urban forester in the Community Development department, one police officer, increasing one part-time building inspector to full time, and increasing one part-time marketing coordinator to full time. One vacant part-time building attendant position was eliminated and the funding repurposed for the previously mentioned changes. Slight revenue growth in the Water and Wastewater Fund will come from additional residential and commercial customers. A new rate structure that was adopted by the City Council in July 2015 will generate additional resources for needed water and waste water infrastructure projects. There was also the incorporation of the pass through of projected Trinity River Authority (TRA) rate increases to maintain the financial stability of the Water and Wastewater Fund in future years. 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 Brian Hogan, Chief Financial Officer, at 100 Main Street, Colleyville, Texas 76034, or call (817) 503-1014. 28 BASIC FINANCIAL STATEMENTS 29 CITY OF COLLEYVILLE, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2015 ASSETS Cash and equivalents Investments Receivables (net of allowances for uncollectibles of$500,621) Accounts Property taxes Loans Due from other governments Inventories Net pension asset Accrued interest Restricted assets: Cash and equivalents Capital assets: Land Buildings and improvements Equipment Infrastructure/water distribution/sewer collection Construction in progress Less: accumulated depreciation Total capital assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding Deferred outflows related to pensions Total deferred outflows of resources LIABILITIES Accounts payable Accrued liabilities Unearned revenues Accrued interest payable Advances from developers Escrow funds Customer deposits Noncurrent liabilities: Due within one year Due in more than one year Total liabilities NET POSITION Net investment in capital assets Restricted: Debt service Court security and technology Grant programs Leisure services Economic development Streets and drainage Police $ Governmental Activities 26,840,660 10,695,251 137,715 184,385 160,000 1,447,231 2,119 3,408,572 23,699 9,178,641 46,882,488 11,007,458 93,599,298 5,122,642 52,327 .489) 113,463,038 156,362,670 325 ,573 325,573 1,347,900 605,268 1,182 110,833 192,508 54,869 1,624,894 13,668,452 17,605,906 98,958,693 744,295 154,901 9,844 233,472 2,975,894 13,838,090 1,485,735 Unrestricted 20,681,413 Total net position $ 139,082,337 The accompanying notes are an integral part of these financial statements. 30 $ Business-type Activities 4,067,584 7,770,591 3,168,318 224,190 463,905 16,805 1,364,201 304,839 53,922 2,008,921 74,597,681 3,773,157 34,415 193) 46.323,327 63,398,921 100,145 42,570 142 715 1,156,300 64,895 10,366 69,000 26,613 455,760 464,870 1.209 ,332 3,457,136 44,823,618 15,260,882 $ ___ 6;;..;0""',0""8~4,:.;..50.;..;;.0 Total Component Units $ 30,908,244 $ 12,751,890 18,465,842 3,871,407 3,306,033 184,385 160,000 1,447,231 226,309 3,872,477 40,504 774 1,3 64,201 9,483,480 1,853,241 46,936,410 13,016,379 168,196,979 12,217,863 8,895,799 86, 742,682) 262,623) 159,786,365 13 808.481 219 ,761.591 30,432,552 100,145 20,896 368,143 468,288 20,896 2,504,200 758,690 670,163 1,182 121,199 13,275 261,508 26,613 510,629 2,089,764 585,000 14,877,784 2.603.900 21.063.042 3,960.865 143,782,311 10,640,477 744,295 154,901 9,844 233,472 2,975,894 13,838,090 1,485,735 35.942.295 15,852.106 $ 199,166 ,837 $ 26,492,583 31 Functions/Programs Primary government Governmental activities: General government Community development Fire and rescue Leisure services Maintenance Municipal court Police Streets and drainage Interest on long-term debt Total governmental activities Business-type activities: Water and wastewater Drainage Total business-type activities Total primary government Component unit Tax increment financing Total component unit CITY OF COLLEYVILLE, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2015 Expenses Charges for Services $ 4 ,676,185 $ 17,500 1,582,461 1,587,038 5,264,026 327,264 4,042,252 503,098 684,301 522,422 1,474,485 5,681,698 75,415 4,404,701 802,551 536,161 27,394,207 4,787,351 14,055,232 15,800,163 833,599 948,565 14.888.831 16,748,728 $ 42,283 ,038 $ 21 ,536,079 $ 873,149 $ $ 873,149 $ Genernl revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service TIF taxes Sales taxes Franchise taxes Other taxes Investment earnings Miscellaneous Gain on sale of capital assets Transfers Total general revenues and transfers Change in net position Net position -beginning Prior period adjustment Net position -ending Program Revenue Operating Grants and Contributions $ $ $ $ 435 11,105 336,969 102,050 450,559 450,559 The accompanying notes are an integral part of these financial statements. 32 Capital Grants and Contributions $ 634,122 7,078,144 7,712 266 2,362,261 2,362,26 1 $ __ 1_0._07_4.._5_2_7 $ ____ _ $ ------ $( $ Governmental Activities 4,658,250) 4,577 4,925,657) 2,568,063) 684,301) 952,063 5,504,233) 3,475,994 536,161) 14 ,444,03 1) 14,444 .031) 12,686,911 806,710 6,705,914 2,319,723 107,977 100,842 82,873 1,178,590 23,989,540 9,545,509 125,185,416 4,351,412 139,082,337 Net (Expense) Revenue and Changes in Net Position Primary Government $ $ Business-type Activities 4,107,192 114,966 4,222,158 4,222,158 52,480 5,062 1,178 ,590) I, L2 I ,04$) 3.10 1,110 56,394 ,755 588,635 60,084,500 $( .( $ Total 4,658,250) 4,577 4,925,657) 2,568,063) 684,301) 952,063 5,504,233) 3,475,994 536,161) 14 ,444,03 1) 4,107,192 114 966 4,222,158 I 0,221,873) 12,686,911 806,710 6,705,914 2,319,723 107,977 153,322 82,873 5,062 22 ,868,492 12,646,619 181,580,171 4 ,940.047 199,166,837 33 Component Units $ 873,149) 873 ,149) 4,043,790 12 ,840 4,056,630 3,183,481 23.309.102 $ 26,492,583 CITY OF COLLEYVILLE, TEXAS BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 General Capital Projects Debt Service ASSETS Cash and cash equivalents $ 6,458,498 $ 11,935,309 $ 829,283 Investments 3,753,362 2,282,746 Receivables (net of allowances for uncollectibles) Accounts 137,715 Taxes 158,767 25,618 Loans 160,000 Due from other governments 670,005 185 ,487 227 Inventories 2,119 Accrued interest 12,356 4.644 Total assets 11,352,822 14,408,186 855.128 LIABILITIES Accounts payable 897,530 438,860 Accrued liabilities 578,490 Unearned revenue 1,182 Advances from developers 47,548 131,236 Customer deposits 54,869 Total liabilities 1,579.619 570,096 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -property taxes 158,767 25,618 Unavailable revenue -municipal fines 12,650 Unavailable revenue -ambulance fees 49,385 Total deferred inflows of resources 220,802 25,618 FUND BALANCES Non-spendable: Inventories 2,119 Restricted: Streets and drainage 13,838,090 Debt service 829,510 Court security and technology Grant programs Leisure services Economic development Police Committed: Strategic incentives 295,198 Sales tax incentives 518,338 Leisure services Capital projects Assigned: Capital projects Recycling Leisure services Unassigned 8,736,746 Total fund balances 9 ,552,401 13,838,09 0 829 ,510 Total liabilities, deferred inflows of resources, and fund balances $ 11,352,822 $ 14,408,186 $ 855,128 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Other long-term assets are not available to pay for current-period expenditures and, therefore are deferred in the funds . Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net position of governmental activities The accompanying notes are an integral part of these financial statements. 34 Total Governmental Other Governmental Funds $ 7,617,570 $ 26,840,660 4,659,143 10,695,251 137,715 184,385 160,000 591,512 1,447,231 2,119 6.699 23,699 12,874,924 39.491 060 11,510 1,347,900 26,778 605,268 1,182 13,724 192,508 54 869 52 ,012 2.201.727 184,385 12,650 49.385 246,420 2,119 13,838,090 829,510 154,901 154,901 9,844 9,844 233,472 233,472 2,975,894 2,975,894 1,485,735 1,485,735 295,198 518,338 1,281,722 1,281,722 5,868,405 5,868,405 797,959 797,959 1,627 1,627 13,353 13,353 8,736,746 12 ,822,912 37,042.913 $ 12 ,874,924 113,463,038 3,734,145 246,420 15,404 ,179) $ 139,082,337 35 CITY OF COLLEYVILLE, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 General Capital Projects Debt Service REVENUES Taxes $ 18,562,464 $ $ 808,761 Fees and fines 1,084,100 Licenses and permits 1,303,710 Intergovernmental 1,368,596 Charges for services 1,517,950 Capital improvement fees 785,992 Donations Investment earnings 62,386 19,250 965 Miscellaneous 82,873 Total revenues 22,613,483 2, 173,838 809,726 EXPENDITURES Current: General government 3,867,015 72,147 Community development and engineering 1,357,919 165,173 Fire and rescue 4,614,700 1,306 Leisure services 2,493,699 Maintenance 632,480 30,000 Municipal court 366,587 Police 4,393,623 Streets and drainage 2,284,515 123,265 Debt service: Principal 1,064,693 Interest and other charges 318,998 Capital outlay 257,359 4,698,370 Total expenditures 20,267,897 5,090,261 1,383,691 EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER)EXPENDITURES 2,345,586 2,9 16,423) 573,965) OTHER FINANCING SOURCES (USES) Sale of capital assets 3,798 Transfers in 1,115,272 4,565,677 500,985 Transfers out 4 ,807.677) Total other financing sources and uses 3 ,688 ,607) 4,565,677 500,985 NET CHANGE IN FUND BALANCES 1,343,021) 1,649,254 72,980) FUND BALANCES, BEGINNING 10,895,422 12,188,836 902,490 FUND BALANCES, ENDING $ 9,552.401 $ 13,838,090 $ 829,510 The accompanying notes are an integral part of these financial statements. 36 Total Other Governmental Governmental Funds $ 3,249,281 $ 22,620,506 133,554 1,217,654 1,303,710 9,167 1,377,763 53,560 1,571,510 785,992 981,282 981,282 18,241 100,842 15.000 97,873 4,460,085 30,057.132 186,970 4,126,132 1,250 1,524,342 2,097 4,618,103 502,672 2,996,371 662,480 141,979 508,566 750,039 5,143,662 2,407,780 395,000 1,459,693 205,416 524,414 1,312,544 6,268,273 3,497,967 30,239 816 962,118 182 684) 16,800 20,598 315,318 6 497,252 510,985) 5,3 18,662) 178,867) 1,199.188 783,251 1,016,504 12.039 ,66 1 36,026,409 $ 12,822,912 $ 37,042,913 37 THIS PAGE INTENTIONALLY LEFT BLANK 38 CITY OF COLLEYVILLE, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENT AL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2015 Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances -total governmental funds : Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The net effect of transactions involving capital assets is to increase net position. Revenues, in the statement of activities, that do not provide current financial resources, are not reported as revenues in the funds. The issuance of long-term debt (e .g., bonds , leases) provides current financial resources to governmental funds, while the repayment of the principal of long- term debt consumes the current financial resources of governmental funds. Certain pension expenditures are not expended in the government-wide financial statements and recorded as deferred resource outflows or inflow. This item relates to contributions made after the measurement date. Additionally, a portion of the City's unrecognized deferred resource outflows related to the pension liability were amortized. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds . Change in net position of governmental activities The accompanying notes are an integral part of these financial statements. 39 $ 1,016,504 2,042,040 5,702,909 ( 5,554) 1,459,693 ( 617,267) ( 52 ,816) $ 9,545,509 THIS PAGE INTENTIONALLY LEFT BLANK 40 CITY OF COLLEYVILLE, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2015 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative2 REVENUES Taxes $ 17,830,254 $ 17,830,254 $ 18,562,464 $ 732,210 License and permits 856,500 856,500 1,303,710 447,210 Fees and fines 810,288 810,288 1,084,100 273,812 Charges for services 1,288,519 1,288,519 1,517,950 229,431 Investment earnings 35,000 35,000 62,386 27,386 Other 55,100 55 ,100 82,873 27 773 Total revenues 20,875,661 20,875,661 22,613,483 1,737,822 EXPENDITURES Current: General government 4,206,772 4,206,772 3,867,015 339,757 Community development and engineering 1,314,446 1,314,446 1,357,919 ( 43,473) Fire and rescue 4,557,537 4,557,537 4,614,700 ( 57,163) Leisure services 2,740,360 2,740,360 2,493,699 246,661 Maintenance 749,942 749,942 632,480 117,462 Municipal court 399,733 399,733 366,587 33,146 Police 4,408,293 4,408,293 4,393,623 14,670 Streets and drainage 4,083,178 4,083,178 2,284,515 1,798,663 Capital outlay 25,957 25,957 257,359 ( 23 1,402) Total expenditures 22,486,218 22,486,218 20,267,897 2,218,321 EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER)EXPENDITURES ( 1,610,557) ( 1,610,557) 2,345,586 3,956,143 OTHER FINANCING SOURCES (USES) Transfers in 1,182,919 1,182,919 1,115,272 ( 67,647) Transfers out ( 742,000) ( 4,807,677) ( 4,807,677) Sale of capital assets 5,000 5,000 3 798 ( 1,202) Total other financing sources and uses 445,919 ( 3,619,758) ( 3,688 607) ( 68 ,849) NET CHANGE IN FUND BALANCE ( 1,164,638) ( 5,230,315) ( 1,343,021) 3,887,294 FUND BALANCE, BEGINNING 10,895,422 10,895,422 10,895,422 FUND BALANCE, ENDING $ 9,730,784 $ 5,665,107 $ 9,552,401 $ 3,887,294 The notes to the financial statements are an integral part of this statement. 41 CITY OF COLLEYVILLE, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2015 Enterprise Funds Water and Wastewater Drainage Utility Total ASSETS Current assets: Cash and cash equivalents $ 2,839,349 $ 1,228,235 $ 4,067,584 Investments 7,551,218 219,373 7,770,591 Accounts receivable, net of allowances 3,054,156 114,162 3,168,318 Inventories 224,190 224,190 Restricted assets: Cash and cash equivalents 1,364.201 1.364,201 Total current assets 15,033 114 1,561 770 16,594 884 Non-current assets: Accrued interest receivable 16,463 342 16,805 Net pension asset 397,726 66,179 463,905 Capital assets: Land and improvements 304,839 304,839 Buildings 53,922 53,922 Utility system 70,469,317 4,128,364 74,597,681 Equipment and furniture 1,575,418 433,503 2,008,921 Construction in progress 3,598,510 174,647 3,773 ,157 Less accumulated depreciation 32,97 ~083) 1,443 ,110) ( 34 ,415,193) Total non-current assets 43,444,112 3,359,925 46.804.037 Total assets 58,477,226 4,921 ,695 63,398 ,921 DEFERRED OUTLOWS OF RESOURCES Deferred charge on refunding 95,843 4,302 100,145 Deferred outflows related to pensions 36.103 6,467 42 ,570 Total deferred outflows of resources 131,946 10,769 142,715 LIABILITIES Current liabilities: Accounts payable 1,140,633 15,667 1,156,300 Accrued liabilities 54,138 10,757 64,895 Accrued interest payable 6,375 3,991 10,366 Advances from developers 69,000 69,000 Escrow funds 26,613 26,613 Customer deposits 455,760 455,760 Compensated absences 13,040 1,830 14,870 Revenue bonds payable 345 ,000 105.000 450,000 Total current liabilities 2 ,110,559 137,245 2,247,804 Non-current liabilities: Compensated absences 52,158 7,320 59,478 Revenue bonds payable 564,854 585,000 1,149,854 Total non-current liabilities 617,012 592,320 1,209,332 Total liabilities 2,727,571 729,565 3,457,136 NET POSITION Net investment in capital assets 42,215,912 2,607,706 44,823,618 Unrestricted 13 ,665 ,689 1,595,193 15,260,882 Total net position $ 55 ,881,601 $ 4,202,899 $ 60,084,500 The accompanying notes are an integral part of these financial statements. 42 CITY OF COLLEYVILLE, TEXAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Enterprise Funds Water and Wastewater Drainage Utility OPERA TING REVENUES Metered water sales $ 10,817,312 $ Wastewater service charges 3,414,577 Drainage service charges 944,382 Other charges and services 1,545,745 4,183 Miscellaneous 22,529 Total operating revenues 15,800,163 948,565 OPERA TING EXPENSES Personnel services 1,652,266 305,484 Maintenance and contractual services 10,331,440 378,272 Materials and supplies 126,171 14, 183 Depreciation and amortization 1,916,805 119,028 Total operating expenses 14,026,682 816,967 OPERATING INCOME 1,773,481 131 ,598 NON-OPERA TING REVENUES (EXPENSES) Interest and investment revenues 51,017 1,463 Interest expense and fiscal charges ( 28,550) ( 26,437) Gain (loss) on disposal of property 5,062 9,805 Total non-operating revenues (expenses) 27,529 15,169) INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 1,801,010 116,429 Capital contributions 2,362,261 Transfers out ( I 159 558) ( 19 032) CHANGE IN NET POSITION 3,003,713 97,397 TOTAL NET POSITION, BEGINNING 52,391,637 4,003,118 PRIOR PERIOD ADJUSTMENT 486,251 102,384 TOTAL NET POSITION, ENDING $ 55,881,601 $ 4,202,899 The accompanying notes are an integral part of these financial statements. 43 Total $ 10,817,312 3,414,577 944,382 1,549,928 22,529 16,748,728 1,957,750 10,709,712 140,354 2,035,833 14,843,649 1,905,079 52,480 ( 54,987) 14,867 12,360 1,917,439 2,362,261 ( I , 178 ,590) 3,101,110 56,394,755 588 ,635 $ 60,084,500 CITY OF COLLEYVILLE, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Water and Wastewater CASH FLOWS FROM OPERA TING ACTIVITIES Cash received from customers $ 15, 160,051 Cash paid to suppliers for goods and services ( I 0, 11 1, 170) Cash paid to employees for services ( 1,642,5 10) Net cash provided by operating activities 3,406,371 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers out I. I 59,558) Net cash used for noncapital financing activities 1,159558) CASH FLOWS FROM CAP IT AL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets 4,460,413) Proceeds from sale of capital assets 5,062 Capital grants and contributions 2,362,261 Principal paid on debt 469,976) Interest paid on debt 28,550) Net cash used for capital and related financing activities 2,59 1 6 16) CASH FLOWS FROM INVESTING ACTIVITIES (Purchase) sale of investments 652,958) Earnings on investments 51 ,017 Net cash provided (used) by investing activities 60 1,94 I ) NET INCREASE IN CASH AND CASH EQUIVALENTS 946,744) CASH AND CASH EQUIVALENTS, BEGINNING 5,150,294 CASH AND CASH EQUIVALENTS, ENDING $ 4,203.550 44 Enterprise Funds Drainage Utility Totals $ 938,299 $ 16,098,350 ( 399,943) ( 10,511,113) ~ 298.0 13) ( 1,940,523) 240,343 3,646,714 19,032) I, 178,590) 19.032) 1,178.5 0) 30,041) 4,490,454) 9,805 14,867 2,362,261 225,000) 694,976) 26,437) 54,987) 271 ,673) 2,863,289) 190 652,768) 1.463 52,480 1,653 600,288) 48,709) 995,453) I,276 944 6,427,238 $ 1,228,235 $ 5,431,785 CITY OF COLLEYVILLE, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 2015 Water and Wastewater Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income $ 1,773,481 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities : Depreciation and amortization expense 1,926,781 Changes in assets and liabilities: Decrease (increase) in assets: Accounts receivable 640,112) Inventory 88,799) Accrued interest receivable 7,496) Increase (decrease) in liabilities: Accounts payable 389,175 Accrued liabilities 13,249 Compensated absences payable 23,005) Customer deposits 12,975 Net pension liability 52,422 Accrued interest payable 2,300) Net cash provided by operations $ 3,406,371 Noncash investing, capital, and financing activities: Contributions of capital assets $ 2,707,835 Enterprise Funds Drainage Utility $ 131,598 ll9,028 10,266) 51) 28,299) 3,684 3,787) 29,738 l,302) $ 240.343 $ The notes to the financial statements are an integral part of this statement. 45 Totals $ 1,905,079 2,045,809 650,378) 88,799) 7,547) 360,876 16,933 26,792) 12,975 82,160 3,602) $ 3,646,714 $ 2,707,835 ASSETS Cash and investments Total assets LIABILITIES CITY OF COLLEYVILLE, TEXAS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2015 Due to other agencies and individuals Total liabilities The accompanying notes are an integral part of these financial statements. 46 Agency Fund $ 25,318 $ 25,318 $ 25,318 $ 25,318 CITY OF COLLEYVILLE, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2015 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 directly presented component unit, on the other hand, is reported in a separate column in the combined financial statements to emphasize it is legally separate from the government. Each blended component unit has a September 30 year-end. Blended Component Unit -The Colleyville Economic Development Corporation (CEDC) was incorporated on September 3, 1996, as a nonprofit industrial development corporation under the Development Corporation Act of 1979 ("Act"). The CEDC operates under a seven (7) member Board of Directors appointed by the City Council. Each of the directors shall be a resident of the City. The Corporation is organized exclusively for the purposes of benefiting and accomplishing public purposes of and to act on behalf of, the City, and the specific purposes for which the Corporation is organized. This includes municipal park improvements, the purchase of land and improvements for additional neighborhood parks, the construction of a community center and library. Although it is legally separate from the City, the CEDC is reported as if it were part of the primary government, because CEDC is financing public improvements and the City is the primary beneficiary of the services provided. 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. 47 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. Complete financial statements for the TIF may be obtained from the City of Colleyville Finance Department, 100 Main Street, Colleyville, Texas 76034. 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. Measw·cment 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. 48 Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenue to be available if collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, sales taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. GOVERNMENTAL FUNDS Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (except those accounted for in the proprietary fund type) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the City's governmental fund types: The City reports the following major governmental funds: The General Fund -is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The 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. Additionally, the City also reports the following fund type: The Special Revenue Fund -accounts for the revenues and expenditures associated with a special project or purpose. PROPRIETARY FUNDS Proprietary Funds are used to account for activities that are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance. 49 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 Drai1tage Utility Fmul -is used to account for the establishment and maintenance of drainage facilities within the municipal boundaries of the City. All activities necessary to provide such facilities are accounted for in this fund, included but not limited to, administration, operations, maintenance, billing and collections. FIDUCIARY FUNDS Ageucv 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. 50 D. Cash and Cash Equivalents For purposes of the statement of cash flows, the Enterprise Fund considers all highly liquid investments (investments with original maturities less than 90 days, including restricted assets) to be cash equivalents. E. Investments In accordance with GASB Statement No. 31, the City's general policy is to report money market investments and short-term participating interest-earning investment contracts at amortized cost and to report nonparticipating interest-earning investment contracts using a cost-based measure. However, if the fair value of an investment is significantly affected by the impairment of the credit standing of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless a legal contract exists which guarantees a higher value. The term "short-term" refers to investments, which have a remaining term of one year or less at time of purchase. The term "nonparticipating" means that the investment's value does not vary with market interest rate changes. F. Receivables and 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 utility receivables is the total of final bills that have been sent out by the City. Final bills are bills that have been sent out to customers that have notified the City of a discontinuation of service. 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. Property taxes are levied on October 1 and attach as an enforceable lien on property as of January 1. Statements are mailed on October 1, or as soon thereafter as possible, and are due upon receipt. All unpaid taxes become delinquent if not paid before February 1 of the following year. G. Inventories Inventories in the Enterprise Fund are valued at cost (first-in, first-out method). 51 H. Canital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, bridges, sidewalks and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives: Buildings Improvements Equipment Assets Infrastructure (streets and drainage) Water distribution/sewer collection I. ComJJensated Absences Years 15-50 20-50 5-10 50 5 -40 City employees are granted vacation and sick pay in varying amounts. In the event of termination, an employee is paid for all accumulated, unused vacation. Vacation pay is accrued as it vests to the employee. Sick pay is recorded when paid or upon retirement when a maximum of 90 days is paid. The accrued sick pay is not recorded, as the City's policy is not to compensate employees upon separation of services with the City, except for retirement, and such amounts are not considered material. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. J. 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. 52 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. K. 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, granters, 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. • 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. 53 L. 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. M. 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. N. 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 contributions after measurement date -These contributions are deferred and recognized in the following fiscal year. • Difference in projected and actual earnings on pension assets -This difference is deferred and amortized over a closed five year period. • Difference in expected actual pension experience -This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. 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 only one type of item, which arises only under a modified accrual basis of accounting, that 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 three sources: property taxes, municipal fines and ambulance fees. These amounts are deferred and recognized as an inflow of resources in that period that the amounts become available. 54 0. 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. P. 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. Q. Pensions For purposes of measuring the net pension liability, pension related deferred outflows and inflows of resources, and pension expense, City specific information about its Fiduciary Net Position in the Texas Municipal Retirement System (TMRS) and additions to/deductions from the City's Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Information regarding the City's Total Pension Liability is obtained from TMRS through a report prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. R. Prior Period Ac1 justment -Change in Accounting Principles As a result of implementing GASB Statement 68, the City has increased beginning net position as of October 1 2014 by $4,351,412 for the governmental activities and $588,635 for the business-type activities. 55 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Governn1ent-wide Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net position -governmental activities as reported in the government- wide statement of net position. One element of that reconciliation explains, "Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds." The details of this $(15,404,179) difference are as follows: Bonds payable Capital leases payable Accrued interest payable Compensated absences Net adjustment to reducefand balance -total governmentalfands to arrive at net assets - governmental a c tivities $( ( ( $( 13,855,000) 649,345) 110,833) 789,001) 1.5 404 179) Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Govemn1ent-wide Statement of Activities The governmental fund statement of revenue, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances -total governmental fund and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains, "Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $(2,042,040) difference are as follows: Capital outlay Depreciation expense Net adjustment to increase net changes infand balances - total governmentalfands to arrive at c hanges in net assets of governmental activities $ ( 6,268,273 4,226,233) $ 2,042,040 ==:::::::::==== Another element of that reconciliation states, "Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds." The details of this $(5,554) difference are as follows: Property taxes Ambulance revenue Adjudicated fines Net adjustment to increase net changes infand balances - total governmental.funds to arrive at changes in net assets of governmental activities 56 $ ( ( 6,729 9,120) 3,163) $=( ===5=55=4.) Another element of that reconciliation states, "The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds." Neither transaction, however, has any effect on net position. The details of this $1,459,693 difference are as follows: Principal payments and refundings Net adjustment to reducefand balance -total governmentalfands to arrive at net assets - governmental activities $ 1,459,693 --~~- $ 1,459,693 ========== Another element of that reconciliation states, "Some expenses reported in the statement of activities do not require the use of current financial resources, and therefore are not reported as expenditures in governmental funds." The details of this $(52,816) difference are as follows: Compensated absences Accrued interest Net adjustment to decrease net changes infand balances - total governmentalfands to arrive at changes in net assets of governmental activities 3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information $( ( $( 41,069) 11,747) 52,816) The City Council follows these procedures in establishing budgetary data reflected in the basic financial statements: (1) Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. (2) Public hearings are conducted to obtain taxpayer comments. (3) Prior to September 30, the budget is legally enacted through passage of an ordinance. ( 4) The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. (5) Formal budgetary integration is employed as a management control device during the year for the General, Debt Service, and Enterprise Funds. Budgetary control is maintained at the fund level. 57 Internal budgets are prepared and reviewed by the City Council for expenditures of Special Revenue Funds. These budgeted expenditures are not formally adopted by the City Council. No budgets were prepared for revenue of these funds for the year ended September 30, 2015. (6) Budgets for the General and the Debt Service Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Formal budgeted amounts are as amended by the City Council for the General , Debt Service and Enterprise Funds. (7) Budgetary data for the Capital Projects Fund has not been presented in the accompanying basic financial statements, as such funds are budgeted over the life of the respective project and not on an annual basis. Accordingly, formal budgetary integration of the Capital Projects Fund is not employed and comparison of actual results of operations to budgetary data for such fund is not presented . (8)Budgetary data for the Enterprise and Drainage Utility Funds has not been presented since the reporting on such budgets is not legally required. Expenditures Over Appropriations Community development and engineering, fire and rescue, and capital outlay expenditures in the general fund exceeded appropriations by $43,473, $57,163, and $231,402. This overage was funded by under spending in other functions . 4. DETAILED NOTES ON ALL FUNDS Deposits and Investmen ts As of September 30, 2015, the City had the following investments: Investment Type I.DGIC U.S. Treasuries and Agencies Total fair value 58 $ $ Fair Value 24,851,107 22,326,370 47,177,477 Weighted Average M a turity (Day s ) 33 353 The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the City to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the City to invest in (1) obligations of the U. S. Treasury, certain U. S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) Mutual Funds, (8) investment pools, (9) guaranteed investment contracts, and (10) common trust funds. The Act also requires the City to have independent auditors perform test procedures related to investment practices as provided by the Act. The City is in substantial compliance with the requirements of the Act and with local policies. The City's investment pools are 2a7-like pools. A 2a7-like pool is one which is not registered with the Securities and Exchange Commission ("SEC") as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. Interest Rate Risk. In accordance with its investment policy, the government manages its exposure to declines in fair market values by limiting the average dollar weighted maturity of its investment portfolios to a maximum of 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, 2015. Credit Risk. It is the City's policy to limit its investments to investment types with an investment quality rating not less than A or its equivalent by a nationally recognized statistical rating organization. The City's investment pools are rated as follows by Standard & Poor's Investors Service. LOGIC U. S. Treasuries and Agencies 59 AA Am AA+ Receivables Receivables as of year-end for the government's individual major funds, nonmajor funds and enterprise funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Governmental Funds Enterprise Ftmds Capital Debt Nonmajor Water and Drainage General Projects Service Funds W asteooter Utility Total Receivables: Accounts $ 585,604 $ $ $ $ 3,106,888 $ 114,162 $ 3,806,654 Taxes 158,767 25,618 184,385 Due from other governments 670,005 I 85,487 227 591,512 1,447,231 Loans 160,000 160,000 Accrued interest 12,356 4,644 6,699 16,463 342 40,504 Gross receivables 1,586,732 190,131 25,845 598,21 I 3,123,351 114,504 5,638,774 Less: allooonce for uncollectibles ( 447,889) 52,732) ( 500,621) Net total receivables $ 1,138 ,843 $ 190,131 $ 25,845 $ 598,2 I 1 $ 3,070,619 $ 114,504 $ 5,138,153 The City's property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real property and certain personal property located in the City. Tax liens attach as of January 1. The assessed value, net of exemptions, upon which the fiscal 2015 levy was based, was $4, 103, 146,803. 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, 2015, was $.3559 per $100 of assessed valuation. Taxes are due by January 31 following the levy date. Tax collections, including related penalties and interest, was $13,486,892 for the year ended September 30, 2015. Property taxes receivable at September 30, 2015, were $184,385. 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. 60 Capital Assets Capital asset activity for the year ended September 30, 2015, was as follows: Primary Government Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $ 9, 178,641 $ $ $ 9, 178,641 Construction in progress 3,831,697 4,343,983 ( 3 ,053,03 8) 5, 122,642 Total assets not being depreciated 13 ,010,338 4,343 ,983 3,053 ,038) 14 ,301 ,283 Capital assets, being depreciated: Buildings and improvements 46,132,834 749,654 46,882 ,488 Machinery and equipment 10,773 ,596 569,573 335,711) 11,007 ,45 8 lnfrastructtu·e 84,231,649 9,367 ,649 93 ,599,298 Total capital assets being depreciated 141,138,079 10,686,876 335 ,711) 151,489,244 Less accumulated depreciation: Buildings and improvements ( 15,946,886) 1,413,351) 17,360,237) Machinery and equipment ( 8,039 ,593) 940,296) 329,072 8,650 ,817) Improvements other than buildings ( 24,443,849) 1,872,586) 26 ,316 ,435) Total acctunulated depreciation ( 48,430,328) ( 4,226,233) 329 ,072 52,32 7 ,489) Total capital assets being depreciated, net 92,707,751 6,460,643 6,639) 99,161,755 Governmental activities capital assets, net $ 105,718,089 $ 10,804,626 $( 3,059,677) $ 113,463,038 Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $ 304,839 $ $ $ 304,839 Construction in progress 1,715 ,997 2,057,160 3 ,773,157 Total assets not being depreciated 2,020,836 2 ,057 ,160 4 ,077,996 Capital assets, being depreciated: Buildings and improvements 53,922 53,922 Machinery and equipment 2,133 ,927 13,630 138 ,636) 2 ,008 ,921 Improvements other than buildings 72,218 ,901 2,419 ,666 40,886) 74 ,597,681 Total capital assets being depreciated 74,406,750 2,433 ,296 179 ,522) 76,660,524 Less accumulated depreciation: Buildings and improvements 49,573) 622) 50,195) Machinery and equipment 1,344,990) 214,630) 138,636 1,420,984) Improvements other than buildings 31,171,032) 1,813,868) 40 ,886 32,944,014) Total accumulated depreciation 32,565,595) ( 2,029, 120) 179 ,522 34,415,193 Total capital assets being depreciated, net 41,841,155 404,176 42,245 ,331 Business-type activities capital assets, net $ 43,861 ,991 $ 2 ,461 ,336 $ $ 46,323,327 61 Beginning Ending Balance Increases Decreases Balance Component unit: Capital assets, not being depreciated: Construction in progress $ 8,055,352 $ 4,162,511 $ $ 12,217.863 Total assets not being depreciated 8,055,352 4,162,511 12,217,863 Capital assets, being depreciated: Improvements other than buildings 1,845,976 7,265 1,853,241 Total capital assets being depreciated 1,845,976 7,265 1,853,241 Less accumulated depreciation: Improvements other than buildings 221,374) 41,249) 262,623) Total accumulated depreciation 221,374) 4 1,249) 262,623) Total capital assets being depreciated, net 1,624,602 ( 3,984) 1,590,618 Component unit capital assets, net $ 9,679,954 $ 41128,527 $ $ 13,808,481 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities : General government Community Development Fire and rescue Leisure services Maintenance Police Streets and drainage Total depreciation expense -governmental activities Business-type activities: Water and wastewater Drainage utility Total depreciation expense -business-type activities Construction Commitments $ $ $ $ 476,303 6,193 453,322 968,226 5,029 343,157 1,974,003 4,226,233 1,910,807 118,313 2,029,120 The government has active construction projects as of September 30, 2015. The major projects are listed as follows: Remaining Pro ject S2ent-to-date Commitment Kingston $ 2,008,659 $ 159,472 Hwy 26 waterline/sewerline relocation project 3,210,223 59,637 Pleasant Run (Mission to Bogart) 1,692,072 319,578 W estem Trails, Area 1 1,157,306 206,898 Reagan Estates, Area 2 451,015 58,901 Total $ 8,519,275 $ 804,486 62 Interfund Transactions The composition of interfund transfers as of September 30, 2015 , is as follows: Interfund Transfers Transfer In Nonmajor Capital Debt Government General Projects Service Funds Total Transfer Out: General $ $ 4 ,565,677 $ $ 242,000 $ 4,807,677 Nonmajor governmental 500,985 10,000 510,985 Water and wastewater 1,115,272 44,286 1,159,558 Drainage fee 19,032 19,032 Total Transfers Out $ 1, 115 ,272 $ 4,565 ,677 $ 500,985 $ 315 ,318 $ 6,497,252 The transfer of $1,115,272 from the Water and Wastewater Fund to the General Fund represents the 2015 Administrative transfer and the franchise fee based on gross water and wastewater revenue of the prior year's audited financial statements. The transfer of $4,807,677 from the General Fund to the Capital Projects and nonmajor governmental funds represents transfers for capital replacement. The transfer of $500,985 from the Crime District to the Debt Service Fund is for the repayment of debt. All principal and interest is paid from the Debt Service Fund's bank account. 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 $29 ,315 ,000. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. General obligation bonds currently outstanding are as follows: Pur p se Interest Rates Amount Governmental activities 2%-5% $ 13,855,000 $ 13 855 000 63 Long-term liability activity for the year ended September 30, 2015, was as follows: Balance Balance AmoW1ts September 30, September 30, Due Within 2014 Additions Retirements 2015 One Year Governmental activities General obligation bonds and certificates of obligation $ 7,660,000 $ $ 740,000 $ 6 ,92 0,000 $ 770 ,000 Sales tax revenue bonds 7,330,000 395,000 6,935,000 410,000 Capital lease obligations 974,038 324,693 649,345 287,094 Compensated absences 747,932 508,296 467,227 789,001 157,800 Total governmental activities 16,711,970 508,296 1,926,920 15,293,346 1,624,894 Business-t;rnc activities Revenue bonds and certificates of obligation 2,225,000 685,000 1,540,000 450,000 Premium on bonds 69,830 9,976 59,854 Compensated absences 101,140 55,926 82,718 74,348 14,870 Total business-type activities 2,395,970 55,926 777,694 1,674,202 464,870 Total primary government $ 19,107,940 $ 564,222 $ 2,704,614 $ 16,967,548 $ 2,089,764 Co m po n en t uni t Tax increment financing fund revenue bonds $ 3,670,000 $ $ 565,000 $ 3,105,000 $ 585,000 Bond premium 104,876 20,976 83,900 Total component unit $ 3,774,876 $ $ 585,976 $ 3,188,900 $ 585,000 For the governmental activities, compensated absences are generally liquidated by the General Fund. Governmental activities long-term liabilities at September 30, 2015, consisted of the following: General obligation bonds and certificates of obligation serviced by property tax revenue: $2,915,000 Series 2006 General Obligation Refunding bonds due in annual installments of$25,000 to $540,000 through February 15, 2019; interest at 3.64%. $4,325,000 Series 2007 General Obligation Bonds due in annual installments of$50,000 to $555,000 through February 15, 2027; interest at 4.00% to 5.00%. $1,435,000 Series 2011 General Obligation Refunding Bonds due in annual installments of $135,000 to $800,000 through February 15, 2020; interest at 2.00% to 4.00%. Total General Obligation Bonds and Certificates of Obligation 64 $ 2,020,000 4,125,000 775,000 $ 6,920,000 ========~ $9,570,000 Series 2013 Colleyville Economic Development Corporation Refunding and Improvement Sales Tax Revenue Bonds due in annual installments of $340,000 to $635,000 through February 15, 2029; interest at 2.88% Total Revenue Bonds The City's defeased debt as of September 30, 2015, was $9,795,000. $ 6,935,000 ----'----'-- $ 6,935,000 Business-type activities long-term liabilities at September 30, 2015, consisted of the following: Water and Wastewater Fund: $1,890,000 Series 2010 Waterworks and Wastewater System Refunding Bonds due in annual installments of $155 ,000 to $580,000 through January 1, 2018; interest at 2.00% -3.00%. Total Water and Wastewater Fund Drainage Utility Fund: $1,135,000 Series 2011 Waterworks and Wastewater System Refunding Bonds due in annual installments of $105,000 to $225,000 through February 15, 2021; interest at 3.47%. Total Drainage Utility Fund Total Business-type activities $ 850,000 ----- $ 850,000 ===== $ 690,000 ---~- $ 690,000 ======= $ 1,540,000 ========= 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, 2015, the City was in compliance with these requirements. The City's component unit, the Tax Increment Financing District, long-term liabilities at September 30, 2015, consisted of the following: Tax Increment Financing District $4,225,000 Series 2011 Refunding Bonds due in installments of $490,000 to $665,000 beginning in 2012 through February 15, 2020; interest at 2.0% to 4.0%. Total Tax Increment Financing District 65 $ 3,105,000 $ 3 105,000 ======== September 30, 2016 2017 2018 2019 2020 2021-2025 2026-2030 September 3 0, 2016 2017 2018 2019 2020 2021-2025 S e ptember 30 , 2016 2017 2018 2019 2020 Capital Leases $ $ Governmental Activities General Obligation Bonds and Certificates of Obli~ation Revenue Bonds Principal Interest Principal Interest 770,000 $ 251,258 $ 410,000 $ 193,824 795,000 223,179 420,000 181,872 810,000 194,388 425,000 169,704 850,000 163,828 445,000 157,176 320,000 141,400 460,000 144,144 2,290,000 455,000 2,500,000 511,632 1,085,000 43 ,900 2,275,000 133,560 6,920,000 $ 1,472 ,953 $ 6,935,000 $ 1,49 '1 91 2 Business-type Activities Revenue Bonds Principal Interest $ 450,000 $ 42,446 460,000 28,291 265,000 16,899 115,000 10,670 125,000 6,506 125,000 2,169 $ 1,540,000 $ 106,981 Discretely Presented Component Unit - Tax Increment Financing Fund Revenue Bonds Principal Interest $ 585,000 $ 97,425 600,000 79,650 615,000 61,425 640,000 39,400 665,000 13,300 $ 3,105,000 $ 291,200 The City has entered into lease agreements as lessee for financing and acquisition of equipment for the Fire Department. 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. 66 The assets acquired through capital leases are as follows: Asset: Machinery and equipment Less: accumulated depreciation Total Governmental Activities $ 2,030,652 ( 618 843) $ 1,411,809 The future m1mmum lease obligations and the net present value of these mm1mum lease payments as of September 30, 2015, were as follows: 2016 2017 2018 2019 Total minimum lease payments Less: amount representing interest Present value of minimum lease payments Defined Benefit Pension Policies Plan Descriptions Governmenta l Activities $ $ 314,086 161,419 116,839 116,839 709 18 3 59 ,83 8) 64 9 ,3 4 5 The City participates as one of 860 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. All eligible employees of the City are required to participate in TMRS. 67 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 Matching ratio (City to employee) Years required for vesting Service retirement eligibility Updated service credit Annuity increase to retirees Employees covered by benefit terms 7% 2 to I 5 20 years to any age, 5 years at age 60 and above 100% repeating, transfers 0%ofCPI At the December 31, 2014 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees Contributions 99 108 180 387 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 annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. 68 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 6.84% and 7.69% in calendar years 2014 and 2015, respectively. The city's contributions to TMRS for the year ended September 30, 2015, were $868,363, and were equal to the required contributions. Net Pension Liability The city's Net Pension Liability (NPL) was measured as of December 31, 2014, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total Pension Liability in the December 31, 2014 actuarial valuation was determined using the following actuarial assumptions: Inflation Overall payroll growth Investment Rate of Return 3.0% per year 3.0% per year 7.0%, net of pension plan investment expense, including inflation Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments. Actuarial assumptions used in the December 31, 2014 valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period January 1, 2006 through December 31, 2009, first used in the December 31, 2010 valuation. Healthy post- retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering the 2009 through 2011, and the dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional changes were made for the 2014 valuation. The long-term expected rate of return on pension plan investments is 7.0%. The pension plan's policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs ofTMRS. 69 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 ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates return for each major assets class are summarized in the following table: Asset Class Domestic Equity International Equity Core Fixed Income Non-Core Fixed Income Real Return Real Estate Absolute Return Private Equity Total Discount Rate Target Allocation 17.5% 17.5% 30.0% 10.0% 5.0% 10.0% 5.0% 5.0% 100.0% Long-Term Expected Real Rate of Return (Arithmetic) 4.80% 6.05% 1.50% 3.50% 1.75% 5.25% 4.25% 8.50% The discount rate used to measure the Total Pension Liability was 7.0%. 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. 70 Changes in the Net Pension Liability Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a)-(b) Balance at 12/31 /2013 $ 42,047,025 $ 46,456,782 $( 4,409,757) Changes for the year: Service cost 1,598,908 1,598,908 Interest 2,938,763 2,938,763 Difference between expected and actual experience 136,216 136,216 Contributions -employer 745,874 745,874) Contributions -employee ( 1,728,299) 763,324 ( 2,491,623) Net investment income 2,657,437 2,657,437) Benefit payments, including refunds of employee contributions ( 1,728,299) 1,728,299 Administrative expense ( 27,747) 27,747 Other changes ( 2,281) 2,281 Net changes 2,945,588 2,408,308 537,280 Balance at 12/31/2014 $ 44,992,613 $ 48,865,090 $( 3,872,477) The following presents the net pension liability of the City, calculated using the discount rate of 7.0%, as well as what the City's net pension liability would be if it were calculated using a discount rate that is I-percentage-point lower (6.0%) of I-percentage-higher (8.0%) than the current rate: 1% Decrease in Discount Rate (6.0%) Discount Rate (7.0%) 1 % Increase in Discount Rate (8.0%) City's net pension liability $ Pension Plan Fiduciary Net Position 2,425 ,275 $( 3,872,477) $( 9,066,776) 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, 20I5, the City recognized pension expense of $699,427. 71 At September 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience Difference between projected and actual investment earnings Total Deferred Outflows of Resources $ 108,097 475 ,630 $ 583,727 ======'-=== Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expenses as follows: Year ended Dec 31 2015 $ 147,027 2016 147,027 2017 147,027 2018 142,646 $ 583,727 Subsequent event Pursuant to TMRS policy of conducting experience studies every four years, the TMRS Board at their July 31, 2015 meeting determined that they would be changing certain actuarial assumptions including reducing the long term expected rate of return from the current 7% to 6.75% and changing the inflation assumption from 3% to 2.5%. Reduction of expected investment return and related discount rate will increase projected pension liabilities. Reducing the inflation assumption reduces liabilities as future annuity levels and future cost of living adjustments are not projected to be as large as originally projected. While the actual impact on the City's valuation for December 31, 2015 is not known the City does expect some downward pressure on its funded status and upward pressure on its 2017 actuarially determined contribution (ADC) due to this change. 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 ofTRA's operating and maintenance expenses, related debt service costs, and certain other miscellaneous charges. Purchases of treated water and charges for the transportation, treatment and disposal of sewage and other wastes during fiscal year 2015 amounted to approximately $7,727,104 and $2,102,605, respectively. 72 Advances from Developers Developers are required by ordinance to construct perimeter streets and related storm drainage facilities. The developer may request a waiver from the Council for the construction requirements and instead deposit escrow funds with the City equal to one-half of the estimated cost of construction, which are utilized by the City to complete the project at some later date. At September 30, 2015, developers had escrowed $3,023,466 with the City in connection with developer agreements. Contingent Liabilities The City has been named as a defendant or co-defendant in a number of legal actions. While the outcome of these cases is not known at this time, City management believes that any awards to insured parties which must be paid in excess of amounts covered by insurance will not be material to the financial position of the City. Risk 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. Other PostempJoyment Benefits Supplemental Death Benefits Fund The City also participates in the cost sharing multiple-employer defined benefit group term life insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Fund (SDBF). The City elected, by ordinance to provide group term life insurance coverage to both current and retired employees. The City may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. The death benefit for active employees provides a lump sum payment approximately equal to the employee's annual salary (calculated based on the employee's actual earnings, for the 12-month period preceding the month of death); retired employees are insured for $7,500; this coverage is an "other postemployment benefit," or OPEB. The City contributes to SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year; the intent is not to pre-fund retiree life insurance during employees' entire careers. 73 The City's contributions to the TMRS SDBF for the years ended 2015, 2014, and 2013 were $17,776, 16,837, and $15,132, respectively, which equaled the required contributions each year. Schedule of Contribution Rates Annual Actual Accounting Required Contribution Percentage Year Contribution Made of ARC Ending (Rate) (Rate) Contributed 09/30/13 .015% .015% 100% 09/30/14 .016% .016% 100% 09/30/15 .015% .015% 100% 74 REQUIRED SUPPLEMENT ARY INFORMATION 75 CITY OF COLLEYVILLE, TEXAS SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Plan Year A. Total pension liability Service Cost Interest (on the Total Pension Liability) Difference between expected and actual experience Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability -beginning Total pension liability -ending (a) B. Plan fiduciary net position Contributions -Employer Contributions -Employee Net Investment Income Benefit payments, including refunds of employee contributions Administrative Expenses Other Net change in pl an fiduciary net position Plan fiduciary net position -beginning Plan fiduciary net position -ending (b) C. Net pension liability -ending (a) -(b) D. Plan fiduciary net position as a percentage of total pension liability E. Covered employee payroll F. Net position liability as a percentage of covered employee payroll 76 2014 $ 1,598,908 2,938 ,763 136,216 ( 1,728,299) 2 ,945,588 42,047 ,025 $ 44,992,613 $ 745,874 763,324 2,657,437 ( 1,728,299) ( 27 ,747) ( 2,281) 2 ,408,308 46,456,782 $ 48,865,090 $( 3,872 ,477) 108 .61 % $ 10 904 63 5 -35.5 1% CITY OF COLLEYVILLE, TEXAS SCHEDULE OF CONTRIBUTIONS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Fiscal Year 2014 2015 Actuarial determined contribution $ 738,034 $ 868,363 Contributions in relation to the actuarially determined contribution 738,034 868,363 Contribution deficiency (excess) Covered employee payroll 10,707,890 11,640,489 Contributions as a percentage of covered employee payroll 6.89% 7.46% Valuation Date: NOTES TO SCHEDULE OF CONTRIBUTIONS Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return Retirement Age Mortality Other Information: Notes Entry Age Normal Level Percentage of Payroll, Closed 25 years 10 Year smoothed market; 15% soft corridor 3.00% 3.50% to 12.00% including inflation 7.00% Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2010 valuation pursuant to an experience study of the period 2005-2009. 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 of with BB. There were no benefit changes during the year. 77 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Voluntary Park -This fund is used to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support park activities. Voluntary Library -This fund is used to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support library activities. Police Asset Forfeiture -This fund is used to account for activity related to seizure of assets in criminal-related activities. Tree Preservation -This fund is used to account for operations related to replacement of trees, which are eliminated due to commercial development. Contributions are received from entities that are developing the property. Library Donation -This fund is used to account for private and corporate donations for capital purchases related to the library building for the City. Recreational Event -This fund is used to account for activities related to special events for the City. Colleyville Center Development -This fund is used to account for contributions received to construct a community center. Recycling -This fund is used to account for the promotion of recycling activities in the City of Colleyville. Contributions are received from the holder of the City's recycling franchise. LEOSE (Law Enforcement Officer Standards and Education) -This fund is used to account for activities related to the continuing education of qualified law enforcement officers as funded by the State of Texas LEOSE Account. Colleyville Economic Development -This fund is used to account for the use of bond proceeds and sales tax revenues for municipal park improvements, the purchase of land and equipment for additional neighborhood parks and for the construction of a community center and library. Crime District -This fund is used to account for the Colleyville Crime Control and Prevention District formed to act on behalf of the City for financing the development of crime control throughout the City. 78 Kidsville Maintenance -This fund is used to account for contributions received for the maintenance of Kidsville Playground. Special Donations -This fund is used to account for various donations made to the City for specific projects. Court Technology -This fund is used to account for the collection and use of fines collected to be specifically used on technology for the court. Court Security -This fund is used to account for the collection and use of fines collected to be specifically used for security purposes. TDPA Grant -This fund is used to account for grant proceeds received for the acquisition of equipment and expenditures relating to fire and rescue. 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. 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. Capital and Cable Equipment Replacement -This fund is used to account for the replacement of cable equipment and other capital equipment. Kimzey Park -This fund is used to account for the construction of Kimzey Park. The source of funding was a Texas Parks and Wildlife state grant. 79 ASSETS Cash and cash equivalents Investments Due from other governments Accrued interest Total assets LIABILITIES Accounts payable Accrued liabilities Advances from developers Total liabilities FUND BALANCES Restricted Committed Assigned Total fund balances CITY OF COLLEYVILLE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2015 Special Revenue Funds Voluntary Voluntary Park Library $ 1,310 $ 51,257 849,617 359,532 1,299 820 852,226 411,609 6,848 6,848 852,226 404,761 852,226 404,761 Total liabilities and fund balances $ 852 226 $ 411,609 80 Police Asset Forfeiture $ 4,092 4,092 4,092 4,092 $ 4,092 Special Revenue Funds Colleyville Tree Library Recreational Center Preservation Donation Event Development Recycling LEOSE $ 38,459 $ 136,301 $ 5,449 $ 5,857 $ 1,627 $ 1,711 38,459 136,301 5,449 5,857 1,627 1,711 1,240 13,724 13,724 1,240 135,061 5,857 1,711 24,735 5,449 1,627 24,735 135 ,061 5,449 5 ,857 1,627 l 711 $ 38,459 ======= $ 136,301 ===~= $ 5,449 ======= $ 5,857 ======= $ 1,627 ======= $ 1,711 ======= 81 ASSETS Cash and cash equivalents Investments Due from other governments Accrued interest Total assets LIABILITIES Accounts payable Accrued liabilities Advances from developers Total liabilities FUND BALANCES Restricted Committed Assigned Total fund balances CITY OF COLLEYVILLE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) SEPTEMBER 30, 2015 Special Revenue Funds Colleyville Economic Development Crime District $ 2,146,379 $ 1,233,158 510,424 319,352 272,160 524 2,976 ,679 I 505 ,3 18 785 79 23,596 785 23,675 2,975,894 1,481,643 2 ,975,894 1,481,643 Total liabilities and fund balances $ 2,976 ,679 $ 1,505,318 82 Kids ville Maintenance $ 20,251 20 251 20,251 20,251 $ 20 ,251 $ Special Donations 72,303 72,303 72,303 72,303 $===7=2-"=,3=0=3 $ Court Technology 61,707 61 ,707 61,707 61 707 $===6=1.f., 7=0=7 Special Revenue Funds Court Security TDPAGrant $ 73,838 $ 8,133 73 ,838 8,133 878 878 72,960 8,133 72,960 8,133 $===7=3==,8=3=8 $ 8,133 ======= 83 Public Art $ 7,904 7,904 7 904 7,904 $ 7,904 ====== $ Juvenile Case Manager 22,551 22,551 13 2,304 2,317 20,234 20,234 $ 22,551 ======== ASSETS Cash and cash equivalents Investments Due from other governments Accrued interest Total assets LIABILITIES Accounts payable Accrued liabilities Advances from developers Total liabilities FUND BALANCES Restricted Committed Assigned Total fund balances CITY OF COLLEYVILLE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) SEPTEMBER 30, 2015 Capital Project Funds Colleyville Parks Tomorrow Tomorrow $ 1,907,749 $ 1,197,656 375,326 462 2,283,537 1,197,656 2,283,537 1,197,656 2,283,537 1,197,656 Total liabilities and fund balances $ 2 283 !537 $ 1,197,656 84 Park Land Dedication $ 200,510 2,114,383 2,949 2,317,842 2,317,842 2,317,842 $ 2,317,842 Ca.12ita l Proj ect Funds Capital and Cable Total CEDC Capital Equipment Governmental Proj ect Replacement Kimzey Park Funds $ 65 ,794 $ 349,998 $ 3,576 $ 7,617,570 449,861 4,659,143 591,512 645 6,699 65,794 800,504 3,576 12 ,874,924 2,545 11,510 26,778 13 724 2,545 52,012 4,859,846 65,794 3,576 7,150,127 797 959 812 ,939 65,794 797 ,959 3,576 12,822,912 $ 65,794 $ 800,504 $ 3,576 $ 12,874,924 85 CITY OF COLLEYVILLE, TEXAS COMBINING ST A TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Special Revenue Funds Voluntary Police Asset Voluntary Park Libra!l'. Forfeiture REVENUES Taxes $ $ $ Fees and fines Intergovernmental Charges for services Donations 150,092 150,090 Investment earnings 2,146 1,961 Miscellaneous Total revenues 152,238 152,051 EXPENDITURES Current: General government Community development and engineering Fire and rescue Leisure services 61,556 151,391 Municipal court Police 96 Debt service: Principal Interest and other charges Capital outlay Total expenditures 61,556 151,391 96 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 90,682 660 ( 9~ OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net Payment to bond escrow agent Sale of capital assets Transfers in Transfers out Total other financing sources and uses NET CHANGE IN FUND BALANCES 90,682 660 ( 96) FUND BALANCES, BEGINNING 761 544 404,101 4,188 FUND BALANCES, ENDING $ 852,226 $ 404,761 $ 4,092 86 $ ( ( Tree Preservation 820 820 820) 820) 25 ,555 $ 24,735 ==="""== $ ( ( Library Donation 1,830 21,068 22.898 23,096 2 3 096 198) 198) 135,259 $ 135,061 ===""'== Special Revenue Funds $ Recreational Event 4,900 4,900 3,926 3 ,926 974 974 4,475 $ 5,449 ==="'=== 87 Colleyville Center Development $ 5,857 $ 5,857 ===""'== Recycling $ 15,000 15,000 15,000 15.000 1,627 $ 1,627 ======= $ LEOSE 3,970 3,970 1,253 2,063 3,3 16 654 654 1,057 $ 1,711 ======== CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENT AL FUNDS (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 2015 Special Revenue Funds Colleyville Economic Kidsville Development Crime District Maintenance REVENUES Taxes $ 1,725,811 $ 1,523,470 $ Fees and fines Intergovernmental Charges for services Donations Investment earnings 2,259 987 Miscellaneous Total revenues 1,728,070 1,52 4,457 EXPENDITURES Current: General government 51,949 Community development and engineering Fire and rescue Leisure services 237,477 175 Municipal court Police 729,301 Debt service: Principal 395,000 Interest and other charges 205,416 Capital outlay 596 ,329 218,642 Total expenditures 1,486 171 947,943 175 EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER)EXPENDITURES 241,899 576,514 ( 175) OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net Payment to bond escrow agent Sale of capital assets 16 800 Transfers in Transfers out ( 510,985) Total other financing sources and uses ( 494 , 185 ) NET CHANGE IN FUND BALANCES 241,899 82329 ( 175) FUND BALANCES, BEGINNING 2,733 ,995 1,3 99,314 20,426 FUND BALANCES, ENDING $ 2,975,894 $ 1,481,643 $ 20 ,251 88 $ Special Donations 3,367 21,010 24,377 844 10,139 3,613 14,596 9,781 9,781 62,522 $ 72,303 ========= $ Court Technology 32,148 53,560 85 ,708 52,67 3 52,673 33,035 33,035 28,672 $===61,,,;,,,7=0=7 Special Revenue Funds Court Security $ 34,394 34,394 34,080 34,080 314 314 72,646 $===72,,,;,,,9=6=0 89 TDPA Grant $ 8,133 $===8==, 1=3=3 Public Art $ 7,904 $==7==,9=0=4 Juvenile Case Manager $ $ 67,012 67,012 55,226 55 ,226 11 ,786 11,786 8,448 20,234 CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 2015 Capital Project Funds Colleyville Parks Park Land Tomorrow Tomorrow Dedication REVENUES Taxes $ $ $ Fees and fines Intergovernmental Charges for services Donations 634,122 Investment earnings 3,697 1,292 4,685 Miscellaneous Total revenues 3,697 1,292 638,807 EXPENDITURES Current: General government Community development and engineering Fire and rescue Leisure services 5,291 Municipal court Police Debt service: Principal Interest and other charges Capital outlay 2,132 352,291 Total expenditures 7,423 352,291 EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER)EXPENDITURES { 3,726) 1,292 286,516 OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net Payment to bond escrow agent Sale of capital assets Transfers in 63,318 Transfers out Total other financing sources and uses 63,318 NET CHANGE IN FUND BALANCES 59,592 l,292 286,516 FUND BALANCES, BEGINNING 2,223,945 1,196,364 2,031,326 FUND BALANCES, ENDING $ 2,283,537 $ 1,197,656 $ 2,317,842 90 CEDC Capital Project $ 10,398 1,250 8,801 60,582 81,031 ( 81 ,031) ( 81,031) 146,825 $ 65,794 Capital Project Funds Capital and Cable Equipment Replacement $ 1,214 1,214 109,623 14,966 82,568 207,157 ( 205,943) 252,000 252 ,000 46,057 751,902 $ 797 ,959 Kimzey Park $ $ ( 3,576 $ 3,576 $ 91 Total Governmental Funds 3,249,281 133,554 9,167 53,560 981,282 18,241 15,000 4 ,460,085 186,970 1,250 2,097 502,672 141,979 750,039 395,000 205,416 1,312,544 3,497,967 962,118 16 ,8 00 3 15,318 510 ,985) J 78 ,867) 783,251 12,039,661 12,822,9 12 THIS PAGE INTENTIONALLY LEFT BLANK 92 CITY OF COLLEYVILLE, TEXAS DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2015 Budget Actual REVENUES Taxes $ 727,816 $ 808,761 Investment earnings 1,975 965 Total revenues 729 ,791 809,726 EXPENDITURES Debt service: Principal retirement 1,064,693 1,064,693 Interest and fiscal charges 318,749 318 ,998 Total expenditures 1,383,442 1,383,691 EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER)EXPENDITURES ( 653 651 ( 573 ,965) OTHER FINANCING SOURCES Transfers in 500,985 500,985 Total other financing sources 500,985 500,985 NET CHANGE IN FUND BALANCE ( 152,666) ( 72,980) FUND BALANCE, BEGINNING 902,490 902,490 FUND BALANCE, ENDING $ 749,824 $ 829,510 93 Varianc e with Budget - Positive (Negativ e) $ 80,945 ( 1 010) 79 ,935 { 249) ( 24 9) 79 ,686 79,686 $ 79 ,686 THIS PAGE INTENTIONALLY LEFT BLANK 94 AGENCY FUNDS Employee Activity Fund -This fund is used to account for funds held by the City for the benefit of employees of the City. Sesquicentennial Fund -This fund is used to account for funds held by the City for the benefit of the City of Colleyville's historical purposes. 95 CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2015 Employee Activity Sesquicentennial Fund Fund ASSETS Cash and cash equivalents $ 6,330 $ 18,988 Total assets $ 6,330 $ 18,988 LIABILITIES Due to other agencies and individuals $ 6,330 --~- $ __ 18---'--,9_8_8 Total liabilities $~==6"""=,3=3=0 $ 18 988 ===~- 96 Total $ 25,318 $ 25,318 $ __ 2_5...._,3_1_8 $ 25,318 =~====== Cash and cash equivalents Total assets CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Employee Activity Fund Balance 10/01/14 Additions Deletions $ 7,106 $ 3,697 $ 4,473 $ 7,106 $ 3,697 $ 4,473 Due to other agencies and individuals $ 7,106 $ 3,697 $ 4,473 Total liabilities $ 7,106 $ 3,697 $ 4,473 Sesquicentennial Fund Balance 10/01/14 Additions Deletions Cash and cash equivalents $ 18,405 $ 583 $ Total assets $ 18,405 $ 583 $ Due to other agencies and individuals $ 18,405 $ 583 $ Total liabilities $ 18,405 $ 583 $ Total Agency Funds Balance 10/01/14 Additions Deletions Cash and cash equivalents $ 25 ,511 $ 4,280 $ 4 473 Total assets $ 25,511 $ 4,280 $ 4,473 Due to other agencies and individuals $ 25 ,511 $ 4,280 $ 4,473 Total liabilities $ 25,511 $ 4,280 $ 4,473 97 Balance 09/30/15 $ 6,330 $ 6,330 $ 6,330 $ 6,330 Balance 09/30/15 $ 18 ,988 $ 18 ,988 $ 18,988 $ 18,988 Balance 09/30/15 $ 25,318 $ 25,318 $ 25 ,318 $ 25 ,318 THIS PAGE INTENTIONALLY LEFT BLANK 98 STATISTICAL SECTION This part of the City of Colleyville, Texas' comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 100 These schedules contain trend information to help the reader understand how the government's financial performance and well- being have changed over time. Revenue Capacity 110 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 115 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 122 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 124 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 99 CITY OF COLLEYVILLE, TEXAS NET POSITION BY COMPONENT (Accrual Basis of Accounting) Fiscal Year 2006 2007 2008 Governmental activities: Net investment in capital assets $ 66,991,146 $ 71,824,719 $ 77,484,725 Restricted for: Debt service 937,578 1,032,586 889,689 Court security and technology Grant programs Leisure services Economic development Streets and drainage Police Unrestricted L9002 ,816 21,987,778 21,862,136 Total governmental activities net position $ 86,931,540 $ 94,845,083 $ 100,236,550 Business-type activities: Net investment in capital assets $ 25,919,619 $ 32,804,703 $ 39,442,148 Restricted for: Debt service 882,821 1,080,751 1,024,349 Unrestricted 19,253,772 13 626,2 74 7,837,790 Total business-type activities net position $ 46,056,212 $ 47,511,728 $ 48,304,287 Primary government: Net investment in capital assets $ 92,910,765 $ 104,629,422 $ 116,926,873 Restricted for: Debt service 1,820,399 2,113,337 1,914,038 Court security and technology Grant programs Leisure services Economic development Streets and drainage Police Unrestricted 38,256,588 35,614,052 29,699,926 Total primary government net position $ 132,987,752 $ 142,356,811 $ 148,540,837 Note: The City implemented GASB 54 in fiscal year 2011 to provide clearer fund balance classifications . Prior years were not restated. 100 TABLE 1 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 $ 79,243,497 $ 81,970,674 $ 83,166,142 $ 83,211,988 $ 84,414,252 $ 89,754,051 $ 98,958,693 1,040,896 1,057,699 1,106,893 1,159,092 857,143 831,073 744,295 153,420 91,637 101,411 109,766 154,901 23,208 21,116 16,489 9,190 9,844 201,184 207,736 207,770 224,064 233,472 1,863,900 1,998,845 2,277,373 2,733,995 2,975,894 6,428,106 8, 192,568 8,432,946 12,188,836 13,838,090 994,913 1,143,454 1,223,271 1,403,502 1,485,735 27,498,864 25,936,703 17,837,593 19,559.719 18,680,620 17,930,939 20,681,413 $ 107,783,257 $ 108,965 ,076 $ 111,775,359 $ 115,586,155 $ 116,211,275 $ 125,185,416 $ 139,082,337 $ 39,174,562 $ 39,080,043 $ 38,892,098 $ 38,395,708 $ 39,269,943 $ 41,567,161 $ 44,823,618 987,181 983,225 662,050 8,127.736 7,747,336 10,111,776 12,332,238 13,702,724 14,827 ,594 15,260,882 $ 48,289,479 $ 47,810,604 $ 49,665,924 $ 50,727,946 $ 52,972,667 $ 56,394,755 $ 60,084,500 $ 118,418,059 $ 121,050,717 $ 122,058,240 $ 121,607,696 $ 123,684, 195 $ 131,321,212 $ 143,782,311 2,028,077 2,040,924 1,768,943 1, 159,092 857,143 831,073 744,295 153,420 91,637 101,411 109,766 154,901 23,208 21,116 16,489 9,190 9,844 201,184 207,736 207,770 224,064 233,472 1,863,900 1,998,845 2,277,373 2,733,995 2,975,894 6,428,106 8,192,568 8,432,946 12,188,836 13,838,090 994,913 1,143,454 1,223,271 1,403,502 1,485,735 35,626,600 33,684,039 27,949,369 31,891,957 32,383,344 32,758,533 35,942,295 $ 156,072,736 $ 156,775,680 $ 161,441,283 $ 166,314,101 $ 169,183,942 $ 181,580,171 $ 199,166,837 101 CITY OF COLLEYVILLE, TEXAS CHANGES IN NET POSITION (Accrual Basis of Accounting) Fiscal Year 2006 2007 2008 EXPENSES Governmental activities: General government $ 2,729,064 $ 2,438,051 $ 2,814,874 Community Development and Engineering 1,267,136 1,523,768 1,481,124 Fire and rescue 3,814,585 3,790,831 3,958, 111 Leisure services 3,513,992 3,525,094 4,033,105 Maintenance 383,504 434,984 417,265 Municipal court 270,345 262,198 324,020 Police 3,801,644 4,232,185 4,657,438 Streets and drainage 2,932,465 2,890,995 3,129,730 Interest on long-term debt 1,142,043 1,032,374 1,101,714 Total governmental activities expenses 19,854,778 20,130,480 21,917,381 Business-type activities: Water and wastewater 9,428,373 9,337,282 11,179,548 Drainage 548,963 671,773 593,600 Interest on long-term debt 440,703 400,752 362 642 Total business-type activities expenses 10,418,039 10,409,807 12,135,790 Total primary government program expenses $ 30,272,817 $ 30 540,287 $ 34,053, 171 PROGRAM REVENUES Governmental activities: Charges for services: General government $ 6,000 $ 6,000 $ 16,000 Community Development and Engineering 2,163,596 1,454,744 1,332,453 Fire and rescue 239,386 303,868 250,814 Leisure services 448,606 424,024 563,738 Municipal court 813,781 932,452 1, 171,919 Police 70,899 81,054 79,699 Streets and drainage 472,860 355,157 358,688 Operating grants and contributions 399,819 431,683 1,856,567 Capital grants and contributions 4,355,357 5,372,281 3,973,954 Total governmental activities program revenues 8 970,304 9,361,263 9 603,832 102 TABLE2 Fiscal Year 2009 2010 2011 2012 2013 2014 2015 $ 2 ,945,481 $ 2,691,905 $ 2,715,154 $ 3,125,214 $ 4,075,001 $ 4,103,928 $ 4,676,185 1,530,901 1,645,221 1,402,669 1,397,839 1,429,755 1,613,311 1,582,461 4,113,793 4,419,945 4,421,496 4,321,929 4,529,225 4,625,036 5,264,026 3,941,259 4,118,769 4 ,191 ,960 4 ,124,619 4,106,822 3,776,068 4,042,252 455,752 423,783 412,513 400,306 494,545 575,696 684,301 291,724 302,756 303,839 319,445 586,709 501,604 522,422 4,841,217 4,836,274 4,878,055 4,579,570 4 ,961,444 5,019,343 5,681,698 3,503,519 3,885,182 3,657,591 3,073,530 5,322,510 4,128,365 4,404 ,701 1,051 , 180 1,000,061 849,390 780,029 724,458 717,045 536,161 22 ,6 74,82 6 23,323,896 22,832,667 22,122,481 26 ,230,469 25,060,396 27 ,394,2 07 10 ,612,372 11,242,553 12,009,187 12,258,587 12,544,530 13 ,238,893 14,055,232 658,016 572,234 742,160 723,994 707,647 571 ,886 833,599 331,361 296,288 11,601 ,749 12, 111 ,075 12,751 ,347 12 ,982 ,581 13 ,2 52 177 13 ,810,779 14 ,888 ,831 $ 34,276,575 $ 35,434,971 $ 35,584,014 $ 35,105,062 $ 39,482,646 $ 38,871,175 $ 42,283,038 $ 15 ,000 $ 15,000 $ 97,234 $ 28,408 $ 15,000 $ 15 ,000 $ 17,500 666,914 647,298 868,363 1, 146,518 927,690 1,387,329 1,587,038 271,216 235,225 305,882 335,308 308,339 377,021 327,264 6,595,487 468,426 1,213 ,167 520,433 501,260 510,991 503,098 1,002 ,008 1,213,178 970,143 1,015,804 1,271,095 1,268,447 1,474,485 51 ,631 94,059 70,709 81,056 70,513 71,022 75,415 215,619 345,780 296,350 338,845 316,338 347,565 802,551 713, 189 543,516 822,056 490,069 468,361 486,869 450,559 360,023 423,873 405 ,347 381,308 1,158,050 5,943 ,465 7,712,266 9,891,087 3,986,355 5,04 9!25 1 4,337,749 5,036,646 10,407,709 12,950,176 103 CITY OF COLLEYVILLE, TEXAS CHANGES IN NET POSITION (Accrual Basis of Accounting) Fiscal Year 2006 2007 2008 PROGRAM REVENUES Business-type activities: Charges for services: Water and wastewater $ 12,357,576 $ 9,127,470 $ 11,114,892 Drainage 830,292 841,972 859,013 Capital grants and contributions 1,100,354 1,561,255 1,415,785 Total business-type activities program revenues 14,288,222 11,530,697 13,389,690 Total primary government program revenues $ 23,258,526 $ 20,891,960 $ 22,993,522 NET(EXPENSE)REVENUES Governmental activities $( 10,884,474) $( 10,769,217) $( 12 ,313,549 Business-type activities 3,870,183 1,120,890 L,253 900 Total primary government net expense ( 7 014 291) ( 9,648 ,327) ( 11,059,649) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Taxes Property 9,483,546 10,153,775 11,367,967 Franchise 1,790,543 1,779,376 1,818,060 Sales 4,355,627 4,674,068 4,740,964 Other 76,005 89,132 82,532 Investment earnings 904,361 1,224,361 804,864 Miscellaneous 65,313 97,963 96,348 Gain on sale of capital assets 116,112 Transfers 532,357 664,085 841,936 Total governmental activities 17,207,752 18,682,760 19 868 ,783 Business-type activities: Investment earnings 846,214 998,710 3 80 ,5 95 Gain on sale of capital assets Transfers ( 532,357) 664 085) 841,936) Total business-type activities 313,857 334,625 ( 461,341) Total primary government 17,521,609 19,017,385 19,407,442 CHANGE IN NET POSITION Governmental activities 6,323,278 7,913,543 7,555,234 Business-type activities 4,184,040 1,455,515 792,559 Total primary government $ 10,507,318 $ 9,369,058 $ 8,347,793 Note: See Table 9 for information about Water and Wastewater Charges for services 104 TABLE2 (continued) Fiscal Year 2009 2010 2011 2012 2013 2014 2015 $ 11,303 ,868 $ 11,414,425 $ 14,355,418 $ 14 ,034 ,600 $ 14,661 ,491 $ 14 ,789,614 $ 15,800,163 874,637 897,361 903 ,089 918,323 928,863 939 ,868 948,565 63 ,293 147 ,014 168,365 169 ,464 876,660 2,707,835 2,362 ,261 12,241 ,798 12,458,800 15 4 26 ,872 15,122,387 16 ,467,014 18,437,317 19,110,989 $ 22,132,885 $ 16 ,445 155 $ 20,476,123 $ 19,460,136 $ 2 1,5 03 ,660 $ 2 8,845 026 $ 32,061 ,165 $( 12,783 ,739) $( I ,337,54 1) $( 17,783,416) $( 17,784,732) $( 21,193,823) $( 14,652,687) $( 14 ,444,031) 640,049 347 725 2,675,525 2,139,806 3,214,837 4 ,62 6!53 8 4,222,158 ( 12, 14 3!690 ) 18 98 9 816) ( 15,107,891 ) { 15 644 92 6) ( 17 ,978,986) { I 0 ,026 , 149) { I 0 ,22 1,873) 12,121,420 12 ,557,716 12,414,948 12,414,457 12,497,692 12,950,832 13,493,621 2,017,440 1,867,065 2,031,268 2,207,463 2,074,731 2,172,801 2,319,723 4,718,976 4,936,484 5,056,597 5,495,730 5,902,557 6,472,195 6,705,914 74,198 75,365 80,731 65,808 68 ,592 98,160 107,977 471 ,524 76,968 95,822 108,192 77,269 39,697 100,843 77,854 82,833 55,454 74,041 85,562 61,643 82,873 25,237 65,306 147,969 810,020 823 797 857,622 858,879 1,081 ,868 1,112,540 1,180,292 1,178,590 20,330,446 20,519,359 2 0,593 699 21 ,595 ,528 21,818,943 23,785 ,640 23,989,541 168,940 15,158 3 8,674 4,08 4 3 8,98 7 23 655 52,480 15,864 10 3,4 37 40,81 4 5 06 2 { 823 ,797) ( 857,622) ( 858 87 9) { 108 '1!868) ( 1,11 2 540) ( I 180 ,292) ( I , 178 ,5 90) ( 654,857) ( 826 ,600) ( 82 0,2 05) ( I 077 784) ( 970 ,116) ( I, 115 ,823) ( 1,12 1,048) 19 ,675,5 89 19 ,692,759 19,773,494 20,517,744 20,848,827 22,669,817 22,868,493 7,546,707 1,18!,818 2,810,283 3,810,796 625,120 9,132,953 9,545,510 ( 14,808) ( 4 78 ,87 5) 1,855,320 1,062,022 2,244,721 3,510,715 3101110 $ 7,531 ,899 $ 702,943 $ 4,665,603 $ 4,872,818 $ 2,869 841 $ 12,643,668 $ 12,646 62 0 105 THIS PAGE INTENTIONALLY LEFT BLANK 106 2006 2007 General fund Non-spendable $ -$ -$ Restricted Committed Assigned Unassigned 7,575.662 _J ,495,329 Total general fund $ 7,575,662 $ _J_,495,329 $ All other governmental funds Non-spendable $ -$ -$ Restricted 1,082,681 1,254,686 Committed - Assigned - - Unassigned Unassigned, reported in: Special revenue funds 4,760,679 4,814,412 Capital projects funds 7.012.225 9,055,431 Total all other governmental funds $ 12,855,585 $ 15,124,529 $ CITY OF COLLEYVILLE, TEXAS 2008 - j!,717.398 ___1, 717.398 - 987,681 - - 5,696,905 7.811.492 14,496,078 FUND BALANCES GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) Fiscal Year 2009 2010 2011 $ $ -$ 2,147 706,942 _1,207,420 ~,813.597 11),223,232 $ __J,207,420 $ J,813.597 $ 10,932,321 $ -$ -$ - 1,121,567 1,154,570 10,853 ,638 -5,967,620 - - 1,148,548 7,267,350 5,664,493 12.369,631 11 ,524,206 $ 20.758.548 $ 18 ,343,269 $ 17,969,806 Note: This schedule does not restate prior years for Special Revenue and Capital Projects Funds. 2012 2013 $ 132,664 $ 1,759 813,536 813 ,536 11 ,762,625 11,006,716 $ 12,708,825 $ 11,822,0ll $ -$ - 12,894,768 13 ,190,883 6,193,060 6,262,082 954,818 910,611 ( 4,975) $ __ 20,042,646 $ _20.358,60!_ The City implemented GASB 54 in fiscal year 2011 to provide clearer fund balance classifications. Prior years were not restated. 107 TABLE3 2014 2015 $ 1,269 $ 2,119 813 ,536 813 ,536 10.080.617 8,736,746 $ 10,895,422 $ 9,552,401 $ -$ 17,571 ,843 19,527,446 6,793,236 7,150,127 765,908 812 ,939 $ 25,130,987 $ 27,490,512 2006 2007 REVENUES Taxes $ 15,708,945 $ 16,701,290 $ Developer contributions 549,911 683,425 Licenses, fees and permits 1,931,265 1,244,218 Capital improvement fees 482,860 389,657 Fines and penalties 841,595 965,416 Charges for services 1,173,394 1,190,327 Interest 904,361 1,224,361 Intergovernmental 5,409 4,361 Donations 396,627 735,756 Miscellaneous 83,730 107 700 Total revenues 22.078.097 23.246,511 EXPENDITURES General government 2,107,398 2,247,359 Comm Development/Eng 1,265,251 1,467,216 Fire 3,657,554 3,517,817 Police 3,558,154 3,961,975 Leisure services 2,838,637 2,913,798 Streets and drainage 1,604,425 1,485,756 Municipal court 270,037 252,961 Maintenance 377,144 415,708 Capital outlay 4,491,341 6,337,656 Debt service: Interest 1,141,817 1,094,001 Principal 1,929,047 2.005.204 Total expenditures _23,240,805 25.699.451 CITY OF COLLEYVILLE, TEXAS CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) 2008 2009 2010 2011 17,975,445 $ 18,889,480 $ 19,353,358 $ 19,627,734 $ 226,488 1,113,595 646,302 607,132 923,590 358,688 208,622 334,075 281,260 1,203,260 1,028,425 1,244,146 998,221 1,322,732 7,129,322 917,884 1,694,993 804,864 471,524 76,968 95,823 1,437,935 350,468 100,807 541,709 548,093 401,432 379,853 602,401 116.280 155.100 97,833 70.453 25,107.380 29.280,675 23.112,056 24.836,184 2,537,699 2,639,218 2,423,869 2,383,276 1,462,566 1,531,785 1,642,047 1,397,256 3,755,575 3,840,118 3,955,407 3,972,053 4,395,056 4,588,576 4,552,947 4,596,862 3,171,514 3,058,332 3,173,352 3,177,878 1,649,037 1,917,536 2,297,719 2,052,298 323,059 291,893 302,172 302,666 410,636 449,806 417,946 405,911 5,150,286 2,759,774 4,935,053 2,510,027 2,584,790 1,033,148 944,751 838,320 1.189,798 2.275,553 2.180.061 2,259,004 26,630,016 _24,385,739 26,82~324 23,895.551_ 108 TABLE4 2012 2013 2014 2015 20,235,012 $ 20,541,466 $ 21,747,244 $ 22,620,506 1,130,426 857,135 1,090,012 1,303,710 322,498 300,900 333,496 785,992 1,051,899 1,000,954 1,043,821 1,217,654 1,030,439 1,321,927 1,577,564 1,571,510 110,550 77,269 39,697 100,842 124,056 76,506 556,954 1,377,763 406,789 487,066 918,613 981,282 89.041 100.562 76.643 97,873 24,500.710 24.763,785 27,384,044 30,057,132 2,753,457 3,171,582 3,746,619 4,126,132 1,396,259 1,429,574 1,606,589 1,524,342 3,888,225 4,062,535 4,174,745 4,618,103 4,304,710 4,670,639 4,707,315 5,143,662 3,049,908 3,035,583 2,702,313 2,996,371 1,388,970 3,597,965 2,055,631 2,407,780 319,084 586,911 501,027 508,566 394,830 489,685 570,011 662,480 2,515, 115 2,668,074 3,250,508 6,268,273 757,594 697,140 716,228 524,414 2.007,585 2,246.921 1.342.586 1,459.693 22.775,737 26,656,609 25,373,572 30,239.816 2006 2007 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $( 1,162,708) $( 2,452,940) $( OTHER FINANCING SOURCES (USES) Bonds issued -9,890,000 Refunding bonds Notes payable Capital lease 408,716 Sale of capital assets 152,270 8,800 Premium on bond issue Payments to escrow -( 4,921,334) Transfers in 2,203.261 l.637.154 Transfers out ( 1,670,904) ( 973.069) ( Total other financing sources (uses) 1.093.343 5,641,551 NET CHANGE IN FUND BALANCES $( 69.365) $ 3,188,611 $( DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 16.4% 16.0% CITY OF COLLEYVILLE, TEXAS CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) 2008 2009 2010 1,522,636) $ 4,894,936 $( 3,713,268) $ - - 176,150 -981,238 98,168 33,759 65,306 -( 2,082,101 2,338,776 1,884,896 1.210_.165) ( 1,514,979) ( 1,027,274) ( 1.116,254 857.556 1.904.166 406,382) $ 5,752,492 $( 1,809, I 02) $ 17.6% 15.3% 14.3% 2011 940,633 $ 2,945,000 - 7,098 6,561 3,012,910) 2,458,396 1,599,517) 804 ,62~ 1,745,261 $ 14.5% Note: Capital Outlay does not include contributed capital assets received from developers. 109 2012 2013 2014 2015 1,724,973 $( 1,892,824) $ 2,010,472 $( 182.684) -7,330,000 894,534 209,425 147,969 -925,033 20,598 -( 7.600,000) 3,893,584 4,189,380 7,355 ,334 6,497,252 ( 2,811,716) ( 3,076,840) ( 6.175,042) ( 5,318,662) 2,124,371 1,321 ,965 1,835,325 1,199.188 3,849,344 $( 570,859) $ 3.845.797 $ 1,016,504 13 .6% 12.3% 9.3% 8.3% Fiscal Year 2006 $ 2007 2008 2009 2010 2011 2012 2013 2014 2015 CITY OF COLLEYVILLE, TEXAS ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Less: Total Taxable Total Residential Personal Tax-exempt Assessed Direct Property Property Propertv Value TaxRate - 3,015,929,674 $ 79,122,702 $ 221,809,521 $ 2,873,242,855 0.3474 3,229,353,459 86,080,918 228,115,791 3,087,318,586 0.3474 3,531,988,996 97,998,283 228,915,486 3,401,071,793 0.3559 3, 748,968,313 99,556,111 230,676,995 3,617,847,429 0.3559 3,907,288,105 95,261,420 237,293,931 3, 765,255,594 0.3559 3,917,415,346 92,176,541 253,414,335 3,756,177,552 0.3559 3,941,020,477 89,758,416 277,077,387 3,753,701,506 0.3559 3,997,250,723 91,264,033 296,807,896 3,791,706,860 0.3559 4,129,613,419 93,604,217 307,729,550 3,915,488,086 0.3559 4,314,297,434 102,095,151 313,245,782 4,103,146,803 0.3559 Source: Tarrant Appraisal District TABLES Estimated Actual Taxable Value $ 2,873,242,855 3,087,318,586 3,401,071,793 3,617,847,429 3, 765,255,594 3,756,177,552 3,753,701,506 3,791,706,860 3,915,488,086 4,103,146,803 Note: 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. 110 City Direct Rates General Operations and Obligation Total Fiscal Maintenance Debt Direct Year Rate Service Rate 2006 0.27771 0.06969 0.34740 2007 0.27873 0.06867 0.34740 2008 0.28299 0.07291 0.35590 2009 0.28860 0.06731 0.35590 2010 0.29864 0.05726 0.35590 2011 0.29758 0.05832 0.35590 2012 0.30881 0.04709 0.35590 2013 0.31385 0.04205 0.35590 2014 0.32442 0.03148 0.35590 2015 0.33461 0.02129 0.35590 Source: Tarrant Appraisal District CITY OF COLLEYVILLE, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RA TES LAST TEN FISCAL YEARS Overlapping Rates Grapevine-Hurst-Euless Birdville Carroll Colleyville Bedford Keller Independent Independent Independent Independent Independent School District School District School District School District School District l.6170 1.9350 1.70000 l.7230 1.7158 1.5650 l.7950 1.57430 1.5976 1.6080 l.4050 1.4650 l.29000 1.3037 1.3574 l.4100 1.4150 l.29000 1.2955 l.4169 1.4050 l.4150 l.29000 1.2955 1.4863 l.4250 l.4150 l.29000 1.2882 1.5306 1.4350 1.4150 1.32010 1.4140 1.5400 1.4350 1.4000 1.32010 1.4075 1.5400 1.4350 1.4000 1.32010 1.3875 1.5400 1.4350 1.4000 1.32010 1.3750 1.5400 TABLE6 Tarrant County Tarrant County Tarrant College Hospital County District District 0.27250 0.139380 0.235397 0.27150 0.139380 0.235397 0.26650 0.139380 0.230397 0.26400 0.137960 0.227897 0.26400 0.137670 0.227897 0.26400 0.137600 0.227900 0.26400 0.148970 0.227897 0.26400 0.148970 0.227897 0.26400 0.149500 0.227897 0.26400 0.149500 0.227897 Notes: 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. 111 Taxpayer Velocis Colleyville LP Oncor Electric Delivery Toll Dallas TX LLC Lifetime Fitness Real Estate AC Village Park Partners LLC USMC Colleyville LLC Wal-Mart Real Estate Business Trust RCC Village Properties Colleyville Riverwalk LP McCormick, Robert & Cynthia TXU Electric Delivery Albertsons Inc Melvin & Martindale Ltd Colleyville Plaza LP Colleyville 26 Crossing Ltd Broughton Ltd Partnership Uhlmann-Colleyville LLC G Points SC LTD Total Source: Tarrant Appraisal District CITY OF COLLEYVILLE, TEXAS PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2015 Percentage of Total City Taxable Taxable Assessed Assessed Value Value $ 26,210,380 0.67% 16,678,083 0.43% 12,557,166 0.32% 12,304,570 0.31% 10,903 ,756 0.28% 10,057,253 0.26% 8,487,901 0.22% 8,142,369 0.21% 5,925,000 0.15% 4,396,800 0.11% -% -% -% -% -% -% -% -% $ 115,663,278 2.95% 112 TABLE 7 2006 Percentage of Total City Taxable Taxable Assessed Assessed Value Value $ -% -% -% 16,414,232 0.57% -% -% -% -% -% -% 16,307,256 0.57% 9,934,354 0.35% 7,685,413 0.27% 6,500,480 0.23% 6,060,000 0 .21% 5,973 ,768 0.21% 5,784,142 0.20% 5,289,406 0.18% $ 79,949,051 2.78% TABLES CITY OF COLLEYVILLE, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected With the Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date Fiscal for the Percentage in Subsequent Percentage Year Ended Fiscal Year Amount of Levy Years Amount of Levy 2006 $ 9,981,646 $ 9,906,769 99.2% $ 68,541 $ 9,975,310 99.94% 2007 10,725 ,345 10,592 ,222 98 .8% 124,651 10,716,873 99.92% 2008 12,024,882 11,903,333 99.0% 109,102 12,012,435 99.90% 2009 12,875 ,919 12,734,871 98 .9% 125,669 12,860,540 99 .88% 2010 13,351,922 13,166,515 98.6% 164,082 13,330,597 99.84% 2011 13,183,932 13,063,575 99.1% 95,672 13 ,159,247 99 .81% 2012 13, 163,735 13,082,029 99.4% 43,962 13,125,991 99.71% 2013 13,291,462 13,207,902 99.4% 62,362 13,270,264 99.84% 2014 13,722,602 13,681,269 99.7% 41,333 13,722,602 100.00% 2015 14,305,704 14,242,584 99.6% 14,242,584 99.56% Sources: Tarrant County Appraisal District and City of Colleyville Finance Department. 113 Taxpayer Grapevine-Colleyville ISD Lifetime Fitness Town Center Shadowood Trail Market Street Bluebonnet Hills US Memory Care Mady Development Westmont Whittier Heights Villas at Oak Point Woodland Hills Wash Depot G Points SC Ltd Colleyville Downs-KRG Timarron Monticello HOA Highland Meadows HOA Keller ISO Total Source: City utility billing records CITY OF COLLEYVILLE, TEXAS PRINCIPAL WATER CUSTOMERS CURRENT YEAR AND NINE YEARS AGO 2015 Percentage of Total City Water Water Usage Usage 39,527,800 1.82% 16,682,900 0.77% 14, 112,300 0.65% 4,850,200 0.22% 4 ,775 ,000 0 .22% 4,694,000 0 .22% 4,312,300 0.20% 4,158,400 0.19% 3,840,200 0.18% 3,806,000 0.17% 3,722,500 0.17% 3,550,100 0 .16% 3,256,200 0.15% 3,195,200 0.15% 3,152,200 0 .14% 3,059,100 0.14% 3,022,500 0.14% 3,016,300 0.14% 2 ,551,800 0.12% 129,285,000 5.94% 114 TABLE9 2006 Percentage of Total City Water Water Usage Usage 40,620,600 1.38% 8,875,100 0.30% 7,091,100 0.24% 5,913,400 0.20% 7,598,600 0 .26% 11,933,300 0.40% -% -% 3,773,800 0.13% -% -% 3,333 ,000 0.11% 13,523,500 0.46% -% -% 5,267,000 0.18% -% 3,539,300 0.12% 3,458 ,4 00 0.12% 114,927 100 3.90% Governmental Activities General Sales Tax Fiscal Obligation Revenue Capital Year Bonds Bonds Leases 2006 $ 10,665,000 $ 14,760,000 $ 404,395 2007 17,770,000 10,340,000 349,189 2008 16,275,000 9,765,000 430,549 2009 14,665,000 9,170,000 359,996 2010 13,300,000 8,545,000 1,151,173 2011 11,510,000 8,245,000 972,170 2012 9,975,000 7,930,000 1,709,120 2013 8,675,000 7,600,000 1,301,624 2014 7,660,000 7,330,000 974,038 2015 6,920,000 6,935,000 649,345 CITY OF COLLEYVILLE, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Business-type Activities Water and Sewer Drainage Revenue Revenue Capital Premium Bonds Bonds Leases $ -$ 7,365,000 $ 2,365,000 $ 26,933 -6,540,000 2,205,000 13,793 -5,840,000 2,040,000 - -5,200,000 1,870,000 - -4,520,000 1,695,000 - 5,905 3,600,000 1,550,000 - 5,249 2,850,000 1,345,000 - 4,593 2,085,000 1,135,000 - -1,310,000 915,000 - -850,000 690,000 Premium $ - - - - - 99,756 89,780 79,805 69,830 59,854 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. See Table 15 for personal income and population data. 115 TABLE 10 Total Percentage Primary of Personal Per Government Income ~ita $ 35,586,328 2.96% $ 1,640 37,217,982 2.89% 1,680 34,350,549 2.64% 1,527 31,264,996 2.51% 1,386 29,211,173 2.31% 1,281 25,982,831 1.73% 1,137 23,904,149 1.57% 1,042 20,881,022 1.38% 904 18,258,868 1.16% 769 16,104,199 1.02% 676 Fiscal Year 2006 $ 2007 2008 2009 2010 2011 2012 2013 2014 2015 Notes: CITY OF COLLEYVILLE, TEXAS RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS General Bonded Debt Outstanding Percentage of General Less Amounts Actual Taxable Obligation Restricted to Value of Bonds Repaying Principal Total Property 10,665,000 $ 937,578 $ 9,727,422 0.34% 17,770,000 1,032,586 16,737,414 0.54% 16,275,000 889,689 15,385,311 0.45% 14,665,000 1,040,896 13,624,104 0.38% 13,300,000 1,057,699 12,242,301 0.33% 11,510,000 1,106,893 10,403,107 0.28% 9,933,921 1,159,092 8,774,829 0.23% 8,639,056 857,143 7,781,913 0.21% 7,660,000 831,073 6,828,927 0.17% 6,920,000 744,295 6,175,705 0.15% Details regarding the City's outstanding debt can be found in the notes to the financial statements. See Table 5 for property value data. Population data can be found in Table 15. 116 TABLE 11 Per Capita $ 448 756 684 604 537 455 382 337 288 259 TABLE12 CITY OF COLLEYVILLE, TEXAS DIRECT AND OVERLAPPING GOVERNMENT AL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2015 Estimated Share of Estimated Direct and Debt Percentage Overlapping Government Unit Outstanding Applicable Debt Debt repaid with property taxes Birdville Independent School District $ 256,161,620 0.080% $ 204,929 Carroll Independent School District 216,607,746 0.460% 996,396 Grapevine-Colleyville Independent School District 326,820, 150 21.320% 69,678,056 Hurst-Euless-Bedford Independent School District 274,883, 170 1.650% 4,535,572 Keller Independent School District 771,227 ,959 3.330% 25,681,891 Tarrant County 333,795,000 3.040% 10,147,368 Tarrant County Hospital District 23,440,000 3.040% 712,576 Subtotal overlapping debt 111,956,788 City direct debt 10,025,000 100.000% 10,025,000 Total direct and overlapping debt $ 121,981,788 Sources: Assessed value data used to estimate applicable percentages provided by the Tarrant County Appraisal District and debt outstanding data provided by each governmental unit. Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the propery taxpayers of the City of Colleyville, Texas. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 117 THIS PAGE INTENTIONALLY LEFT BLANK 118 2006 2007 Debt limit $ 71,831,071 $ 77,182,965 $ Total net debt applicable to limit 9,727,422 15,967,232 Legal debt margin $ 62,103,649 $ 61,215,733 $ Total net debt applicable to the limit as a percentage of debt limit. 13.54% 20.69% Note: CITY OF COLLEYVILLE, TEXAS LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Legal Debt Margin Calculation for Fiscal Year 2015 2008 2009 85,026,795 $ 87,755,997 15,385,131 13,624,104 69,641,664 $ 74,131,893 18.o9% 15.52% Assessed value Debt limit (2.5% of assessed value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin Fiscal Year ------2010 2011 2012 $ 94,131,390 $ 93,904,439 $ 93,842,538 12.242.JOI 10,403,107 8,815,908 $ 81,889,089 $ 83,501,332 $ 85,026,630 13.01% 11.08% 9.39% 2013 2014 $ 94,792,672 $ 97,887,202 7,817,857 6.828.927 $ 86.974.815 $ 91.129.692 8.25% 6.98% Under state finance law, the City's outstanding general obligation debt should not exceed 2.50 percent of total assessed property value. 119 TABLE13 $ 4,103,146,803 102,578,670 6,920,000 { 744,295) 6.175.705 $ 96,402,965 2015 $ 102,578,670 6.175.705 $ 96,402,965 6.02% Utility Fiscal Service Year Charges 2006 $ 13,136,476 $ 2007 10,046,030 2008 11,452,268 2009 11,458,282 2010 11,427,074 2011 14,391,910 2012 14,036,325 2013 14,698,914 2014 14,811,721 2015 15,894,829 CITY OF COLLEYVILLE, TEXAS Less: Operating PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS Water Revenue Bonds Net Available Debt Service Expenses Revenue Principal 8,067,565 $ 5,068,911 $ 795,000 $ 8,040,621 2,005,409 825,000 9,670,881 1,781,387 700,000 8,943,803 2,514,479 640,000 9,458,355 1,968,719 680,000 10,120,678 4,271,232 920,000 10,395,517 3,640,808 750,000 10,707,017 3,991,897 765,000 11,331,749 3,479,972 775,000 12,043,267 3,851,562 460,000 120 ----- Interest Coverage - 329,451 $ 3,944,460 296,546 883,863 265,658 815,729 241,223 1,633,256 213,358 1,075,361 57,819 3,293,413 77,947 2,812,861 58,430 3,168,467 44,137 2,660,835 30,100 3,361,462 TABLE 14 Drainage Revenue Bonds Sales Tax Bonds Drainage Drainage Net Service Operations Available Debt Service Sales Tax Debt Service Charges Expenses Revenue Principal Interest Coverage Increment Principal Interest _ Coverage $ 897,606 $ 444,700 $ 452,906 $ 150,000 $ 111,252 $ 191,654 $ 1,132,094 $ 240,000 $ 402,929 $ 489,165 922,123 462,387 459,736 160,000 104,206 195,530 1,208,379 255,000 391,366 562,013 902,232 510,259 391,973 165,000 96,984 129,989 1,300,260 270,000 380,013 650,247 889,163 500,677 388,486 170,000 90,138 128,348 1,264,385 275,000 368,195 621,190 899,870 484,712 415,158 175,000 82,930 157,228 1,317,161 290,000 356,290 670,871 905,271 551,049 354,222 152,163 58,979 143,080 1,319,517 300,000 344,195 675,322 920,682 531,705 388,977 205,000 51,244 132,733 1,426,909 315,000 331,588 780,321 930,427 541,598 388,829 210,000 41,733 137,096 1,534,635 330,000 318,365 886,270 941,416 416,957 524,459 220,000 35,398 269,061 1,673,351 -138,390 1,534,961 959,835 665,498 294,337 225,000 27,847 41,490 1,725,809 395,000 205,416 1,125,393 121 Calendar Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sources: TABLE15 CITY OF COLLEYVILLE, TEXAS DEMOGRAPIIlC AND ECONOMIC ST A TISTICS LAST TEN FISCAL YEARS Tarrant Per Capita County Personal Personal Unemployment Population Income Income Rate 21,700 $ 167,009 $ 55,485 4.5% 22,150 175,008 58,142 4.3% 22,500 173,853 57,758 5.1% 22,550 166,063 55,170 8.2% 22,807 166,063 55,354 7.9% 22,860 199,168 65,516 8.3% 22,950 199,168 65,516 6.2% 23,090 199,168 65,516 6.0% 23,740 200,822 66,060 5.0% 23,830 200,822 66,060 4.0% Population -North Central Texas Council of Governments, personal income -City of Colleyville Economic Development Department, Unemployment Rate -Texas Workforce Commission (unemployment rate is not available solely for the City of Colleyville) 122 E mpl oye r Grapevine Colleyville ISD Market Street Lifetime Fitness City of Colleyville Whole Foods Market Albertsons Covenant Christian Academy LaHacienda Ranch Walmart Neighborhood Market Sonshine Academy US Memory Care Mac's Steak and Seafood Compass Christian Church Total CITY OF COLLEYVILLE, TEXAS PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2015 Percentage of Total City Employees Employm ent 611 11.8% 345 6.7% 250 4.8% 205 4.0% 125 2.4% 118 2.3% 130 2.5% 100 1.9% 72 1.4% 60 1.2% 60 1.2% -% 50 1.0% 2,126 41.2% Source: City Economic Development Division *This information is unavailable. 123 TABLE 16 2006 Percentage of Total City Employee. Employme nt* 475 -% 415 -% -% 179 -% -% 205 -% -% 100 -% -% 60 -% -% 60 -% -% 1,494 -% Function/Pro~am General government Management services Finance/court Planning Building Other Police Officers Civilians Fire Firefighters and officers Civilians Other public works Engineering Other Streets Parks and recreation Library Colleyville center Water/wastewater Drainage Total Source: Notes: 2006 6 7 3 5 5 32 11 33 1 5 3 10 12 .5 5.5 4.5 28 6 177.5 CITY OF COLLEYVILLE TEXAS FULLTIME EQUN ALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fulltime Equivalent Employees as of September 30, 2007 2008 200 9 2010 2011 2012 5 5 4 4 4 4 6 6 6 6 6 6 3 3 3 2 2 2 5 6 6 5 4 3 6 6.5 7.5 9.5 11 11 35 37 38 38 38 39 13 14 14 13 6 6 33 33 33 33 33 35 1 1 1 2 5 5 5 4 4.5 3 3 3 3 3 3 3 10 10 10 10 10 10 13 .5 13.5 13.5 16.5 16 16 7.5 8 8 9.5 11.5 11.5 4 .5 4.5 4.5 4.5 4.5 4.5 29 29 29 28 24 25 6 6 6 6 6 6 185 .5 190.5 191.5 194.0 184.5 185.5 City Human Resources Office TABLE17 2013 2014 2015 4 4 4 8 8 8 2 4 3 3 3.5 5 13 12 14 40 41 44 6 6.5 6.0 36 38 41 3 4 4 3 3 3 7 8 8 16 16 15 12 13 14 3.5 4 4 .5 23 25 25 7 6 6 187.5 196.5 204.5 A fulltime employee is scheduled to work 2080 hours per year (including vacation and sick leave). Fulltime equivalent employment is calculated by dividing total labor hours by 2080 . 124 Function/Program 2006 General government Building permits issued 270 Building inspections conducted 9,599 Police Physical arrests 485 Calls for service 10,546 Traffic violations 11,218 Fire Emergency responses 656 Ambulance calls 589 Inspections 312 Other public works Street resurfacing (miles) 3 Parks and recreation Athletic field participants 602 Community center rentals 637 Library Volumes in collection 43,378 Total volumes borrowed 177,087 Water Customers 8,561 Average daily consumption (thousands of gallons) 8,081 Peak daily consumption (thousands of gallons) 16,732 Wastewater Customers 7,761 Source: Various City departments CITY OF COLLEYVILLE, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2007 2008 2009 2010 2011 140 131 90 77 104 8,941 8,108 5,641 6,149 6,737 666 514 809 764 666 17,629 15,292 23,480 12,242 27,254 12,438 15,621 12,550 13,822 11,354 715 681 737 762 830 630 667 693 751 765 503 666 796 784 397 4.5 8.5 13.9 8.0 6.2 4,960 5,159 4,617 4,296 4,378 592 627 507 373 410 46,311 50,348 54,659 58,147 62,997 197,712 211,674 238,459 244,458 235,238 8,700 8,893 8,960 9,014 9,103 5,123 6,619 6,578 5,990 7,928 13,068 16,764 16,674 18,207 18,935 7,966 8,138 8,315 8,389 8,457 125 TABLE18 2012 2013 2014 2015 155 103 108 181 8,310 8,292 7,807 7,307 653 632 863 800 48,076 61,270 58,522 51,537 11,980 11,766 19,955 21,450 724 557 627 694 803 829 950 959 342 306 317 363 1.0 4.0 1.7 3.7 3,946 4,287 4,315 4,434 404 398 412 452 65,740 69,736 74,525 77,664 244,613 250,737 234,667 228,160 9,285 9,396 9,507 9,631 7,217 6,785 6,539 6,451 18,707 17,052 15,204 19,866 8,603 8,731 8,817 8,905 Function/Program 2006 Police Stations 1 Patrol units 7 Fire Stations 2 Public works Streets (miles) 307 Streetlights 990 Traffic signals 2 Parks and recreation Acreage 212 Playgrounds 5 Baseball/softball diamonds 9 Soccer fields 14 Community centers 1 Water Water mains (miles) 175 Fire hydrants 1,206 Storage capacity 4,900 (thousands of gallons) Wastewater Sanitary sewers (miles) 154 Storm sewers (miles) 58 Source: Various City departments CITY OF COLLEYVILLE, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year 2007 2008 2009 2010 2011 2012 1 1 1 1 I 1 10 13 13 13 13 12 2 3 3 3 3 3 311 312 312 318 282 282 1,011 1,010 1,168 1,188 1,169 1,169 2 2 2 2 2 2 224 224 224 224 224 224 6 6 6 6 6 6 9 9 9 9 9 9 14 14 14 14 14 14 1 I 1 1 191 192 199 200 195 201 1,254 1,271 1,340 1,345 1,362 1,389 4,900 4,900 9,900 9,900 9,400 9,400 163 164 166 170 162 169 59 59 63 63 58 64 Note: No capital asset indicators are available for the general government or library function. 126 TABLE 19 2013 2014 2015 1 1 1 12 12 13 3 3 3 282 283 283 1,175 1,175 1,227 2 2 2 224 224 224 6 6 6 9 9 9 14 14 14 202 204 205 1,389 1,403 1,422 9,400 9,400 9,400 170 172 172 58 60 67 COMPLIANCE 127 THIS PAGE INTENTIONALLY LEFT BLANK 128 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Panm.., ,.(] MWM-..f 11 iJJ l. l. P. I I Waco, Texas March 17, 2016 130 We believe that our audit provides a reasonable basis for our opinion on compliance for each maJor federal program. However, our audit does not provide a legal determination of the City's compliance. Opinion on Each Major Federal Program In our opinion, the City of Colleyville, Texas complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2015. Report on Internal Control over Compliance Management of the City of Colleyville, Texas is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City of Colleyville, Texas', internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A- 133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. P~ B~ '4-7-IUJ l.t-.P. I I Waco, Texas March 17, 2016 132 CITY OF COLLEYVILLE, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Federal Grantor/Pass-through Grantor/ Program Title FEDERAL AWARDS U. . Department or Transpo rtation Passed through Texas Department of Transportation Highway Planning and Construction - Colleyville Quiet Zones Total Passed through Texas Department of Transportation Total U.S. Department of Transportation Total Expenditures of Federal Awards 133 Federal CFDA Number 20 .205 Pass-through Grantor's Number CSJ: 0902-48-756 Expenditures $_~1,~0_4 7-'-,3_4_7 1,047 ,347 1,047,347 $ 1,047,347 CITY OF COLLEYVILLE, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 1. GENERAL The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal programs of the City of Colleyville, Texas. The City's reporting entity is defined in Note I of the financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the Schedule of Expenditures of Federal Awards. 2. BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note I of the financial statements. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments. Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. 134 CITY OF COLLEYVILLE, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Summary of Auditors' Results Financial Statements: Type of auditors' report issued Internal control over financial reporting: Material weakness( es) identified? Significant deficiency(ies) identified? Noncompliance material to financial statements noted? Federal and State A wards: Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified? Type of auditors' report issued on compliance for major programs Any audit findings disclosed that are required to be reported in accordance with Section SIO(a) ofOMB Circular A-133? Identification of major programs: CFDA Numbers: 20.205 Dollar threshold used to distinguish between type A and type B federal programs Auditee qualified as low-risk auditee for federal single audit? Findings Relating to tile F inancial S tatements Which are Required to be Reported in Accordance With Generally Accepted Government Auditing Standards None Findings and Questioned Costs for Federal Awards None 135 Unmodified No None reported No No None reported Unmodified No Name of Federal Program: Highway Planning and Construction - Colleyville Quiet Zones $300,000 No None CITY OF COLLEYVILLE, TEXAS SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, 2015 136