HomeMy WebLinkAbout2016 Comprehensive Annual Financial ReportCITY OF
COLLEYVILLE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2016
Prepared by
Finance Department
Brian Hogan
Chief Financial Officer
Karen Hines
Accounting Manager
CITY OF COLLEYVILLE, TEXAS
TABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30, 2016
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................... 3 – 7
Organizational Chart ........................................................................................................... 8
Certificate of Achievement ................................................................................................. 9
Principal Officials ............................................................................................................... 10
FINANCIAL SECTION
Independent Auditors’ Report............................................................................................. 13 – 15
Management’s Discussion and Analysis ............................................................................ 19 – 29
Basic Financial Statements
Statement of Net Position ................................................................................................ 32 – 33
Statement of Activities ..................................................................................................... 34 – 35
Balance Sheet – Governmental Funds ............................................................................. 36 – 37
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ......................................................................... 38 – 39
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balance of Governmental Funds to the
Statement of Activities .................................................................................................. 41
Statement of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – General Fund ................................................... 43
CITY OF COLLEYVILLE, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30, 2016
Page
Number
FINANCIAL SECTION (Continued)
Basic Financial Statements (Continued)
Statement of Net Position – Proprietary Funds................................................................ 44
Statement of Revenues, Expenses and Changes in
Fund Net Position – Proprietary Funds ......................................................................... 45
Statement of Cash Flows – Proprietary Funds ................................................................. 46 – 47
Statement of Fiduciary Net Position – Fiduciary Funds .................................................. 48
Notes to the Financial Statements .................................................................................... 49 – 77
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios ................................. 80
Schedule of Contributions ................................................................................................ 81
Nonmajor Governmental Funds
Combining Balance Sheet ................................................................................................ 84 – 89
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances ............................................................................................ 90 – 95
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Debt Service Fund ............................................ 96
Agency Funds
Combining Statement of Fiduciary Net Position ............................................................. 99
Combining Statement of Changes in Assets and Liabilities ............................................ 100
CITY OF COLLEYVILLE, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30, 2016
Page
STATISTICAL SECTION (Unaudited) Exhibit/Table Number
Net Position by Component .................................................................... 1 102 – 103
Changes in Net Position .......................................................................... 2 104 – 107
Fund Balances – Governmental Funds ................................................... 3 109
Changes in Fund Balances – Governmental Funds ................................ 4 110 – 111
Assessed Value and Estimated Actual Value
of Taxable Property.............................................................................. 5 112
Direct and Overlapping Property Tax Rates ........................................... 6 113
Principal Property Taxpayers .................................................................. 7 114
Property Tax Levies and Collections ...................................................... 8 115
Principal Water Customers ..................................................................... 9 116
Ratios of Outstanding Debt by Type ...................................................... 10 117
Ratios of General Bonded Debt Outstanding.......................................... 11 118
Direct and Overlapping Governmental Activities Debt .......................... 12 119
Legal Debt Margin Information .............................................................. 13 121
Pledged Revenue Coverage .................................................................... 14 122 – 123
Demographic and Economic Statistics ................................................... 15 124
Principal Employers ................................................................................ 16 125
Fulltime Equivalent City Government Employees by
Function/Program ................................................................................ 17 126
Operating Indicators by Function/Program ............................................ 18 127
Capital Asset Statistics by Function/Program......................................... 19 128
Schedule of Pension Benefits Funding Progress .................................... 20 129
CITY OF COLLEYVILLE, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30, 2016
Page
Number
COMPLIANCE
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 ...................................................................................... 133 – 134
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INTRODUCTORY SECTION
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Integrity Service Innovation
February 7, 2017
To the Citizens of the City of Colleyville:
The Comprehensive Annual Financial Report of the City of Colleyville (the "City") for the fisc al year ended
September 30, 2016, is hereby submitted. Responsibility for both the accuracy of the data, and completeness and
fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief,
the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the
financial position, results of operations and cash flows of the various funds of the City. All disclosures necessary
to enable the reader to gain an understanding of the City's financial activities have been included.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal
accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the
safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for
preparing financial statements and maintaining accountability for assets. The concept of reasona ble assurance
recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs
and benefits requires estimates and judgments by management. We believe that the City's current system of
internal controls adequately safeguards assets and provides reasonable assurance of proper recording of financial
transactions.
As required by the City’s charter, the financial statements have been audited by Pattillo, Brown & Hill, L.L.P., a
firm of certified public accountants. The goal of the independent audit was to provide reasonable assurances that
the financial statements of the City of Colleyville for the fiscal year ended September 30, 2016, are free of
material misstatement. The independent audit involved examining on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. The independent
auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion
that the City of Colleyville’s financial statements for fiscal year ended September 30, 2016, are presented in
conformity with generally accepted accounting principles (GAAP).
As required by GAAP, management provides a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The City’s MD&A can be found immediately following the independent auditors
report.
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100 Main Street Colleyville, Texas 76034 817.503.1000 Colleyville.com
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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
directors upon confirmation by the City Council. 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. Per the
City Charter, no one person can serve as a council member or mayor for more than two consecutive three
year terms.
The City provides a full range of municipal services. These services include police and fire protection,
municipal court, streets, drainage utility, leisure services (parks and recreation, Colleyville Center and
library), water and sewer, engineering/community development, and general administrative services.
Based upon the criterion set forth in generally accepted accounting principles, the following organizations
are includable within the City's reporting entity:
Entity Method of Inclusion
Colleyville Economic Development Corporation (CEDC) Blended
Colleyville Crime Control and Prevention District Blended
Colleyville Tax Investment Financing Reinvestment Zone
Zone Number One (TIF) Discretely Presented
The City Charter of the City of Colleyville establishes the fiscal year as October 1 through September 30.
The Charter requires the City Manager to submit a proposed budget and accompanying budget message
to the City Council each year and the proposed budget is presented to the City Council at a budget work
session. After public hearings at two consecutive regular City Council meetings, the Council may adopt
the proposed budget, with or without amendment. The budget ordinance is to be adopted no later than the
30th day of September and requires an affirmative vote of a majority of the Council. The City maintains
budgetary control by adopting an annual operating budget for the General Fund, Debt Service Fund,
Drainage Utility Fund, and Water and 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 2016, as did
commercial development. During the fiscal year, the City issued 182 residential building permits and the
average appraised value of a residential property was $460,461. The City also issued 106 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.
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In fiscal year 2016, commercial developments continued to bring new tenants and sales tax dollars to
Colleyville. The City’s growing daytime population from businesses that employ professionals has helped
support many restaurant “firsts” that include
First Black Walnut Café in Tarrant County
First Teriyaki Madness in Tarrant County
First Tio Carlos Mexican-Latin Grill in Tarrant County
First Crepes Bistro in Texas
First Buttermilk Sky Pie Shop in Texas (based in Tennessee)
First Teddy’s Bigger Burgers in Texas (based in Hawaii)
Craft and Crab Seafood House (destination style concept)
Other commercial developments include
Green Office Park – a two building, 16,960 square foot development that will be anchored by
Lighthouse Family Medicine
Village Creek - a 30,000 square foot, three-story project by Compass Realty that will house
Colleyville’s first Class A office space
Renovations and improvements of a 10,000 square foot strip center across from Colleyville
Downs. The building is configured to house five tenants including an existing Pappa John’s. The
property ownership group is reviewing multiple Letters of Interest to select the best fits to complete
the site
Transportation projects completed in fiscal year 2016 include 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 the final design of Phase I for Glade Road. Local road rehabilitation and
resurfacing projects completed in 2016 include:
Renfro Road
Chisolm Court, Tumbleweed Court, and Wagonwheel Court
Bandit Trail, Overland Trail, Windswept Trail, and Sagebrush Street
Gary Lynne Drive, Jo Carol Drive, and Bedford Road
Reagan Road, Lowrie Road, and Westcoat Drive (L. D. Lockett to McDonwell School Road).
Transportation projects in progress at the end of fiscal year 2016 are State Highway/Colleyville Boulevard
(construction of Phases II and III) and Cheek-Sparger Road rehabilitation.
For the Future. In fiscal year 2017, major transportation projects include ongoing construction for Phases
II and III of State Highway 26/Colleyville Boulevard and Glade Road (right of way acquisition,
maintenance, and continuing design work for Phases II, III, and IV). Street rehabilitation projects
scheduled include Hunter Lane, John McCain Road, Westcoat Road (McDonwell School Road to John
McCain), L. D. Lockett, and Pleasant Run (Shelton to John McCain) roads.
FINANCIAL INFORMATION
Financial Policies
The City of Colleyville operates under financial policies that include multiple components to provide
consistency, clarity, and appropriate statutory compliance in the City’s financial processes. The City’s
Charter provides a strong foundation, outlining requirements for the annual budget, monthly financial
reports, and annual audit. Additional policies such as the Investment Policy, reviewed annually by the
City Council, and the Fund Balance Policy, reviewed every three years by the Audit Committee, provide
further detail and guidance. Decisions are also made in accordance with any existing bond covenants or
state law.
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Long Term Financial Planning
In Fiscal Year 2005, the City Council adopted a Fund Balance Policy requiring a 90 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. It was reviewed by the Audit Committee in May 2014 and there were no changes. At the end
of Fiscal Year 2016, both the General Fund and the Utility Fund have a fund balance in excess of the
required 90 day reserve. Amounts 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:
Learning 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.
In fiscal year 2016, departments updated 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 the general fund is presented to
the City Council. 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. In Fiscal Year 2016, an ad hoc Water and Wastewater citizen committee evaluated the rate
structure, ultimately recommending changes that were adopted by the City Council. Risk to the City is
minimized under the new rate structure, which recovers all of the City’s distribution and collection cost s
in the base rate component an costs related to the purchase of treated water or wastewater treatment are
recovered in the volumetric component of the rate. Capital projects will be funded using available cash
in the Utility Fund. In the next twelve months, the City Council intends to evaluate adding a third
component to the rate structure to fund capital projects, which will replenish available cash once current
balances have been spent down.
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, 2015. This was the 27th
consecutive year that the City has received t his 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 GF OA's Distinguished Budget Presentation award for its annual
budget dated October 1, 2015. 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 commilnications 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.
R espec-f~mitted, ~Hog ,CPA,CGFO
Chief Financial Officer
Ull fl
Karen Hines
Accounting Manager
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CITY
COUNCIL
CITIZENS OF COLLEYVILLE
ZONING
BOARD OF
ADJUSTMENT
PLANNING AND
ZONING
COMMISSION LIBRARY
BOARD AD HOC
COMMITTEES
PARKS AND
RECREATION
ADVISORY
BOARD
SIGN
BOARD OF
APPEALS
CRIME CONTROL
AND PREVENTION
DISTRICT
BOARD
TAX INCREMENT
FINANCING
DISTRICT BOARD
CITY MANAGER
Jennifer Fadden
CITY ATTORNEY
Whitt Wyatt MUNICIPAL COURT
JUDGE
Sara Jane del Carmen
COLLEYVILLE CENTER
MANAGER
Leslie Hill
LIBRARY AND
RECREATION
DIRECTOR
Mary Rodne
EXECUTIVE DIRECTOR
OF ECONOMIC
DEVELOPMENT AND
COMMUNICATIONS
Mark Wood
COMMUNITY
DEVELOPMENT
DIRECTOR
Benjamin Bryner
ASSISTANT CITY MANAGER/
DIRECTOR OF PUBLIC SAFETY
Mike Holder
PUBLIC WORKS
DIRECTOR
Jeremy Hutt
FIRE CHIEF
Brian Riley
CHIEF FINANCIAL
OFFICER
Brian Hogan
CITY SECRETARY
Amy Shelley
ENGINEERING
CONSTRUCTION MANAGEMENT & INSPECTION
WATER AND WASTEWATER OPERATIONS
STREET MAINTENANCE
DRAINAGE
BUILDING MAINTENANCE
FLEET MAINTENANCE
FIRE/EMS OPERATIONS
INSPECTIONS
INVESTIGATIONS
EMERGENCY MANAGEMENT
UTILITY BILLING
MUNICIPAL COURT
PATROL
INVESTIGATIONS
CODE ENFORCEMENT
BUILDING
INSPECTION
PLANNING
INFORMATION
SERVICES MANAGER
Chris Pena
STRATEGIC SERVICES
MANAGER
Adrienne Lothery
GIS
COLLEYVILLE
ECONOMIC
DEVELOPMENT
CORPORATION
HUMAN RESOURCES
DIRECTOR
Rachel Huitt
DEPUTY CITY MANAGER
Chris Fuller
PARKS MANAGER
Heather Dowell
COLLEYVILLE
CENTER
ADVISORY
BOARD
HISTORICAL
PRESERVATION
COMMITTEE
SENIOR
CENTER
Effective 11/01/16
COMMUNICATIONS
AND MARKETING
SH26 PROJECT
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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, 2015
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CITY OF COLLEYVILLE, TEXAS
HOME RULE, COUNCIL – MANAGER
FORM OF GOVERNMENT
CITY OFFICIALS
YEAR ENDED SEPTEMBER 30, 2016
Richard Newton
Mayor
Tammy Nakamura
Councilmember, Place 1
Bobby Lindamood
Councilmember, Place 2
Chris Putnam
Mayor Pro Tem and
Councilmember, Place 3
Jody Short
Councilmember, Place 4
Nancy Coplen
Councilmember, Place 5
Mike Taylor
Councilmember, Place 6
Jennifer Fadden
City Manager
Brian Hogan
Chief Financial Officer
Karen Hines
Accounting Manager
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FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and
Members of the City Council
City of Colleyville, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of City of Colleyville, Texas, as of and for the year ended September 30,
2016, and the related notes to the financial statements, which collectively comprise the City of
Colleyville, Texas’ basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
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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, 2016, 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.
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 19-29 and 81-82 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Colleyville, Texas’ basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements and schedules, and statistical section, are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
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The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the combining and individual nonmajor fund financial
statements and schedules are fairly stated in all material respects in relation to the basic financial
statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 3, 2017, on our consideration of the City of Colleyville, Texas’ internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering City of
Colleyville, Texas’ internal control over financial reporting and compliance.
Waco, Texas
February 3, 2017
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17
MANAGEMENT’S
DISCUSSION AND ANALYSIS
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Management’s Discussion and Analysis
As management of the City of Colleyville, we offer readers of the City’s financial statement this
narrative overview and analysis of the financial activities of the City for the fiscal year ended September
30, 2016. 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
– 7 of this report.
FINANCIAL HIGHLIGHTS
The assets of the City of Colleyville exceeded its liabilities as of September 30, 2016,
by $202,117,814 (net position). Of this amount, $38,061,029 (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 $2,950,977 from FY 2016 operations.
As of the close of the current fiscal year, the City of Colleyville’s governmental funds
reported combined ending fund balances of $39,057,347. Of this amount, $8,719,620
is unassigned fund balance available for use within the City’s fund designation and
fiscal policies.
As of September 30, 2016, unreserved, unassigned fund balance for the General Fund
was $8,719,620 or 44.8% 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 33 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.
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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 37 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.
21
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 45 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 50 – 78 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 85 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 $202,117,814 as of
September 30, 2016.
The largest portion of the City’s net position ($141,992,778) reflects its investments in capital assets
(e.g., land, building, equipment, improvements, construction in progress and infrastructure), less any
outstanding debt used to acquire those assets. The City uses these capital assets to provide service to
citizens; consequently, these assets are not available for future spending. Although the City’s investment
in its capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
CITY OF COLLEYVILLE’S NET POSITION
2016 2015 2016 2015 2016 2015
Current and other assets 44,128,921$ 42,899,632$ 17,675,366$ 17,075,594$ 61,804,287$ 59,975,226$
Capital assets 111,178,574 113,463,038 45,067,040 46,323,327 156,245,614 159,786,365
Total assets 155,307,495 156,362,670 62,742,406 63,398,921 218,049,901 219,761,591
Deferred outflow of resources 4,730,558 325,573 723,084 142,715 5,453,642 468,288
Total deferred outflow
of resources 4,730,558 325,573 723,084 142,715 5,453,642 468,288
Other liabilities 3,997,794 3,937,454 1,862,421 2,247,804 5,860,215 6,185,258
Long-term liabilities 15,158,243 13,668,452 780,000 1,209,332 15,938,243 14,877,784
Total liabilities 19,156,037 17,605,906 2,642,421 3,457,136 21,798,458 21,063,042
Deferred inflow of resources 38,650 - 5,171 - 43,821 -
Total deferred inflow
of resources 38,650 - 5,171 - 43,821 -
Net position:
Net investment in
capital assets 97,982,160 98,958,693 44,010,618 44,823,618 141,992,778 143,782,311
Restricted 22,064,007 19,442,231 - - 22,064,007 19,442,231
Unrestricted 20,797,199 20,681,413 17,263,830 15,260,882 38,061,029 35,942,295
Total net position 140,843,366$ 139,082,337$ 61,274,448$ 60,084,500$ 202,117,814$ 199,166,837$
Governmental Activities Business-type Activities Totals
22
A portion of the City’s net position ($22,064,007) represents resources that are subject to external
restriction on how they may be used. The remaining balance ($38,061,029) 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, 2016, 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 $1,761,029 in net position relating to governmental activities is primarily due to the deferred outflow
of resources related to the City’s defined benefit pension plan administered by the Texas Municipal
Retirement System (TMRS). Deferred outflows arise with differences between expected and actual plan
expenditures and earnings, or changes in plan and actuarial assumptions. These deferred outflows
represent future pension expenditures. The plan, including the related notes and disclosures, is discussed
in detail starting on page 71 of the report. The increase in net position of business type activities
$1,189,948 is related to an increase in the deferred outflows of resources related to the TMRS defined
benefit pension plan and a decrease in liabilities in the fund. In addition to the repayment of debt, the
City did not have any open, on-going capital projects funded by the business-type activities at year end.
Tiered water rates, which had been in place since December 2012, were replaced with a flat rate
structure in July to give residents temporary relief from high water bills during the summer months.
Analysis of the City’s Operations – The following table provides a summary of the City’s operations
for the year ended September 30, 2016. Governmental activities increased the City of Colleyville’s net
position by $1,761,029. Business-type activities contributed an increase to the City’s net position of
$1,189,948.
23
CITY OF COLLEYVILLE’S CHANGES IN NET POSITION
2016 2015 2016 2015 2016 2015
Revenues:
Program revenues:
Charges for services 4,459,223$ 4,787,351$ 16,453,801$ 16,748,728$ 20,913,024$ 21,536,079$
Operating grants
and contributions 514,845 450,559 - - 514,845 450,559
Capital grants
and contributions 319,541 7,712,266 43,104 2,362,261 362,645 10,074,527
General revenues:
Ad valorem taxes 13,790,347 13,493,621 - - 13,790,347 13,493,621
Sales taxes 7,252,963 6,705,914 - - 7,252,963 6,705,914
Franchise taxes 2,206,890 2,319,723 - - 2,206,890 2,319,723
Other taxes 106,607 107,977 - - 106,607 107,977
Investment earnings 142,343 100,842 76,014 52,480 218,357 153,322
Miscellaneous 150,630 82,873 - - 150,630 82,873
Gain on sale of
capital assets 51,849 - 71,003 5,062 122,852 5,062
Total revenues 28,995,238 35,761,126 16,643,922 19,168,531 45,639,160 54,929,657
Expenses:
General government 4,449,317 4,676,185 - - 4,449,317 4,676,185
Community development
and engineering 1,558,750 1,582,461 - - 1,558,750 1,582,461
Fire and rescue 4,783,421 5,264,026 - - 4,783,421 5,264,026
Leisure services 4,701,443 4,042,252 - - 4,701,443 4,042,252
Maintenance 689,861 684,301 - - 689,861 684,301
Municipal court 448,420 522,422 - - 448,420 522,422
Police 5,734,116 5,681,698 - - 5,734,116 5,681,698
Streets and drainage 5,150,390 4,404,701 - - 5,150,390 4,404,701
Water and wastewater - - 13,995,038 14,055,232 13,995,038 14,055,232
Drainage - - 563,268 833,599 563,268 833,599
Interest on
long-term debt 614,159 536,161 - - 614,159 536,161
Total expenses 28,129,877 27,394,207 14,558,306 14,888,831 42,688,183 42,283,038
Increases in net position
before transfers 865,361 8,366,919 2,085,616 4,279,700 2,950,977 12,646,619
Transfers 895,668 1,178,590 895,668)( 1,178,590)( - -
Change in net position 1,761,029 9,545,509 1,189,948 3,101,110 2,950,977 12,646,619
Net position, beginning 139,082,337 125,185,416 60,084,500 56,394,755 199,166,837 181,580,171
Prior period adjustments - 4,351,412 - 588,635 - 4,940,047
Net position, ending 140,843,366$ 139,082,337$ 61,274,448$ 60,084,500$ 202,117,814$ 199,166,837$
Governmental Activities Business-type Activities Totals
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.
24
At the end of the current fiscal year, the City of Colleyville’s governmental funds reported combined
ending fund balances of $39,057,347. Approximately 22% of this total amount ($8,719,620) constitutes
unassigned fund balance. The remainder of the fund balance ($30,337,727 ) is reserved to indicate that it
is not available for new spending because it has already been comm itted to pay for encumbrances, debt
service or to provide for other items. Refer to page 37 and 38 of this report for a more detailed
presentation of governmental fund balances.
The increase of approximately $17,000 in unrestricted fund balance in the governmental funds for fiscal
year 2016 is due to a number of the following factors. In the General Fund, the City’s original budgeted
expenditures exceeded budgeted revenues by ($1,085,851). A one-time dedicated funding of $500,000
for concrete repairs and a $200,000 transfer to the Capital Projects Fund for future capital projects was
included in the budget. 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 planned utilization of fund balance in the General Fund was included in the
five year financial forecast, and the fiscal year 2016 ending fund balance is greater than the three month
policy requirement. The fund balance for the General Fund actually decreased ($26,955) for fiscal year
2016. Actual revenues from sales taxes, franchise taxes, ambulance revenues, building permits, and
property taxes were greater than anticipated and there were reductions in overall departmental
expenditures. Also included was City Council authorized transfer of the difference in total revenues and
expenditures of the General Fund to the Capital Projects Fund ($850,618) for use in future CIP street
rehabilitation projects that includes ($120,000) for Colleyville Boulevard (SH26) enhancements. The
aforementioned year end transfers to the Capital Projects Fund resulted in a net increase of $2,131,973
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 planned utilization of $49,723 of surplus fund
balance in the adopted fiscal year 2017 Debt Service budget for the first annual payment of a ten -year
lease-purchase agreement for a new fire engine. The actual fiscal year 2016 decrease to fund balance
was ($69,009) due primarily to greater than anticipated property tax collections and additional costs
incurred for a City Council authorized issuance of $6,225,000 general obligation refunding bonds. The
refunding had an all-in cost of 1.85% and will achieve future debt service savings of $673,534.
Proprietary funds – The City’s proprietary fund statements beginning on page 45 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
($15,308,003), and Drainage Utility ($1,955,827). The Water and Wastewater Fund experienced an
increase in total net position of $810,100 during Fiscal Year 2016 due to a reduction of expenditures.
Water revenues were lower in than fiscal year 2016 ($573,581) due to Council adopting a flat rate
structure for water consumption. This change was made in July to provide relief from high water bills
during the summer months. The rates did include the continued pass through of the Trinity River
Authority water and wastewater rate increases. To offset this decrease in revenue, the transfer of
administrative expenditures and franchise fees to the General Fund was also eliminated at that time. The
Drainage Utility fund’s net position increased by $379,848, due to reductions in expenditures.
25
Governmental Activities – There was an increase in revenue from the sales tax due to continued
improving economic conditions and the addition and expansion of Colleyville retail businesses. There
was an increase in license and permit revenues due to 182 residential permits issued and additional
commercial construction. The property tax base increased approximately $113 million (2.8%), due to the
new residential and commercial construction, and the current year tax collection rate was over 99.57%
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 2016 funded year 3 of this 3 year program.
Also in fiscal year 2016, the City added 2.5 more full time equivalent positions. The new or upgraded
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 position to a full time. One vacant, part-time building attendant position was
eliminated and the funding was repurposed for the previously mentioned changes. Major capital
equipment purchases included seven vehicles for the police department including four marked vehicles,
one unmarked vehicle (crime control district), and two motorcycles. A replacement and upgrade of the
audio-visual technology infrastructure was also completed for the Colleyville Center.
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 $15,499,159 for
the fiscal year. Water revenues decreased slightly due to lower consumption and the Council’s adoption
of a flat rate structure in July to provide customers some relief during the high consumption summer
months. Wastewater revenues increased due to a rate increase in December 2015, which passed through
a rate increase from the Trinity River Authority, the City’s provider of treated water. The coverage ratio
for debt for this fund was 9.86 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.
There was a slight decrease in operating expenditures for the Water and Wastewater Fund compared to
fiscal year 2015 ($50,132). Decreased spending in maintenance and contractual services were used to
offset increases in the 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 and
rehabilitation of aging infrastructure, 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. The first was to
transfer $120,000 from the General Fund to the Capital Projects Fund for management support of the
Colleyville Boulevard/SH26 reconstruction project. 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 ($850,618).
This transfer was funded primarily by the receipt of higher than anticipated sales tax, permit revenues,
property tax collections, and lower than anticipated expenditures due to vacancies. This accounted for
the variance in transfers out from the adopted budget.
26
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 continued improving
economic conditions and the resulting addition and expansion of retail businesses in the City. Also
included is the $1,000,000 drawdown of General Fund balance, which funded the increase in the street
overlay budget. In July, to offset the revenue reduction from moving from a tiered rate structure to a flat
rate structure, Council also reduced the transfer to the General Fund from the Utility Fund for the
administrative and franchise fees that are based upon prior year’s operating revenues.
Refer to the General Fund Statement of Revenue, Expenditures and Changes in Fund Balances – Budget
and Actual on page 44 of this report for a detailed presentation of the actual General Fund operations
compared to both the original and final budget for fiscal year 2016.
CAPITAL ASSETS
The City of Colleyville’s investment in capital assets for its governmental and business-type activities as
of September 30, 2016, amounts to $156,245,614 (net of accumulated depreciation). This investment in
capital assets includes land, building, equipment, improvements other than buildings, infrastructure, and
construction work in progress. Declines in overall asset valuations were due to accumulated depreciation
on aging assets. Major capital asset events occurring during the current fiscal year included the
following:
Capitalized $2.2 million in street improvements including the Kingston Street project
($1.8 million) and Phase 1 of the Colleyville Boulevard/SH26 reconstruction
($400,000).
Capitalized $2.9 million in infrastructure improvements including trail from Pleasant
Run to Bogart ($1.8 million) and Phase III of the Cottonbelt Trail ($670,000).
Capitalized $979,000 from the final payment of the radio tower lease ($833,000
police department/$146,000 fire department).
Capitalized $4.3 million in water ($3.8 million) and wastewater ($500,000).
CITY OF COLLEYVILLE’S CAPITAL ASSETS AT YEAR-END
2016 2015 2016 2015 2016 2015
Land 9,178,641$ 9,178,641$ 304,839$ 304,839$ 9,483,480$ 9,483,480$
Buildings and improvements 49,775,646 46,882,488 53,922 53,922 49,829,568 46,936,410
Equipment 12,404,954 11,007,458 1,966,904 2,008,921 14,371,858 13,016,379
Infrastructure/water
distribution sewer collection 95,872,787 93,599,298 79,044,264 74,597,681 174,917,051 168,196,979
Construction in progress 661,576 5,122,642 - 3,773,157 661,576 8,895,799
Less: accumulated
depreciation 56,715,030)( 52,327,489)( 36,302,889)( 34,415,193)( 93,017,919)( 86,742,682)(
Total capital assets 111,178,574$ 113,463,038$ 45,067,040$ 46,323,327$ 156,245,614$ 159,786,365$
Governmental Activities Business-type Activities Totals
Additional information on the City’s capital assets can be found in Note 4, pages 64 – 65 of this report.
27
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 $16,527,251. Of this amount, $8,550,000 represents bonded debt backed by
the full faith and credit of the government, $6,525,000 represents bonds secured by sales tax revenues,
$505,000 represents bonds secured solely by water and sewer revenues, and $585,000 represents bonds
secured solely by drainage utility system revenues. The City’s capitalized lease obligations of $362,251
pertain to the prior year lease purchase of a fire pumper truck and mid-mount aerial platform fire
apparatus, and P25 radio tower and equipment conversion.
OUTSTANDING DEBT AT YEAR-END
BONDS, NOTES AND CAPITALIZED LEASE OBLIGATIONS PAYABLE
2016 2015 2016 2015 2016 2015
General obligation bonds
and certificates of
obligation 8,550,000$ 6,920,000$ -$ -$ 8,550,000$ 6,920,000$
Sales tax revenue bonds 6,525,000 6,935,000 - - 6,525,000 6,935,000
Revenue bonds payable - - 1,090,000 1,540,000 1,090,000 1,540,000
Capitalized lease
obligations 362,251 649,345 - - 362,251 649,345
15,437,251$ 14,504,345$ 1,090,000$ 1,540,000$ 16,527,251$ 16,044,345$
Governmental Activities Business-type Activities Totals
The City's General Obligation, Tax and Water Works and Sewer System Certificates of Obligation, and
Water Works and Sewer System Revenue Bond ratings are listed below.
Standard
Fitch Ratings & Poor's
General Obligation Bonds AAA AAA
Water Revenue Bonds AAA AAA
In July 2016, the AAA rating on the City’s General Obligation Bonds was reaffirmed by both Standard
and Poor’s and Fitch Ratings. These are the highest bond ratings assigned to municipal debt by these
agencies. During the year the City Council also authorized issuance of $6,225,000 of General Obligation
Refunding Bonds, Series 2016, at an all in interest cost of 1.85%.This refunded $3,825,000 of General
Obligation Bonds, Series 2007 and $2,520,000 of Combination Tax & Tax Increment Revenue
Refunding Bonds, Series 2011 for debt service savings. Additional information on the City of
Colleyville’s long term debt can be found in footnote 4 on pages 66-71 of this report.
28
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The Fiscal Year 2017 General Fund budget is based on a projected revenue decrease of 2.7% as
compared to the Fiscal Year 2016 adopted budget. Colleyville benefits from a strong residential base,
which helps mitigate the negative effects of economic fluctuations. Property values have rebounded
from the declines experienced in fiscal years 2011 and 2012, and have experienced tremendous growth
in the last year. 2016 certified values increased 9.14% in total, compared to 2015 certified values. The
fiscal year 2017 budget includes a tax rate of $0.33913/$100 of valuation, a $0.01677 reduction from the
$0.3559 tax rate in place since 2008. This rate reduction serves to provide some relief to property
owners receiving higher appraisal values, while also providing the revenue necessary to continue
funding programs and services at a sustainable level. The fiscal year 2017 rate represents a 3.2%
increase in general fund ad valorem revenue compared to the prior year. It is slightly less than one cent
above the effective rate of $0.329138 and represents a $53.79 increase in the average annual property
tax payment ($4.48 per month).
While appraisal values have soared, increases in property values does not necessarily result in equally
greater property tax revenue. In 2003, the City Council increased the over-65 property tax exemption to
$65,000 and approved the senior property tax freeze in 2004, which serves as a significant benefit to
residents. Demographic trends indicate that this benefit will continue to increase; the number of senior
frozen accounts went from 1,908 in 2015 to 2,039 in 2016. Currently, over 21 percent of all residential
property tax accounts are frozen, representing a significant benefit for Colleyville seniors.
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 2017
sales tax is projected to have zero growth from fiscal year 2016 year-end projections, with zero growth
projected for the next several years as well due to the potential for construction to impact traffic to
nearby businesses.
At the budget work session presentation on August 10, staff reviewed a five-year General Fund budget
forecast to fiscal year 2021. That forecast includes estimates for expenditures and the revenues
necessary to continue balancing the budget. Ad valorem revenue was projected with growth of 5%, and
sales tax was projected with no increase for the reasons mentioned above. The forecast for expenditures
includes general cost increases of 3.5% for materials and contractual services required each year, as well
as personnel costs to continue funding appropriate market and merit adjustments and increasing
healthcare costs. The forecast also includes the planned draw down of $1,000,000 of fund balance for
street maintenance through fiscal year 2018. This forecast helps staff and the City Council focus on the
long-term budgetary implications of current funding decisions. It also helps to put long-term goals into
perspective relative to the overall resources available in the general fund.
29
As a local government, we exist to provide certain services that citizens expect, at the level they e xpect,
for a good value. The adopted Fiscal Year 2017 budget provides a staffing level net decrease of 1.5
fewer full time equivalent employees to fully fund the programs and services expected by the citizens.
Careful consideration was given to all position requests to ensure that decisions are both appropriate and
sustainable in the long-term. Positions added include a staff accountant in the Finance department and
the conversion of temporary staff funding in the Utility Billing department into a utility billing analyst
position. Positions eliminated were selected based on those that would have the least impact to citizen
services, while maintaining the Council’s priority of fiscal stewardship. One part-time and three full-
time positions were eliminated, including a part-time police records clerk, the communications and
marketing director, economic development coordinator, and a secondary construction manager position
recently vacated as a result of a retirement.
A slight revenue decrease is projected for the Water and Wastewater Fund. One of the top priorities of
the City Council was to restructure water rates. In July 2016, the City Council directed staff to eliminate
the two transfers from the utility fund to the general fund (franchise fee and general and administrative
transfers) in order to eliminate tiered water rates and implement a flat rate model. Elimination of these
transfers reduces utility fund revenues and expenditures by approximately $1.2 million annually. There
was also the incorporation of the pass through of projected Trinity River Authority (TRA) rate increases
to maintain the financial stability of the Water and Wastewater Fund in future years.
REQUEST FOR INFORMATION
The financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of the City’s finances. If you have questions about this report or need any additional
information, contact Brian Hogan, Chief Financial Officer, at 100 Main Street, Colleyville, Texas
76034, or call (817) 503-1014.
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31
BASIC
FINANCIAL STATEMENTS
Governmental
Activities
Business-type
Activities
ASSETS
Cash and equivalents 23,726,230$ 6,737,498$
Investments 16,001,828 8,022,586
Receivables (net of allowances for uncollectibles of $472,547)
Accounts 104,305 2,279,947
Property taxes 173,477 -
Loans 2,622,500 -
Due from other governments 1,336,615 -
Prepaid expenses 132,800 -
Inventories 1,588 135,225
Accrued interest 29,578 22,385
Restricted assets:
Cash and equivalents - 477,725
Investments - 456,550
Capital assets:
Land 9,178,641 304,839
Buildings and improvements 49,775,646 53,922
Equipment 12,404,954 1,966,904
Infrastructure/water distribution/sewer collection 95,872,787 79,044,264
Construction in progress 661,576 -
Less: accumulated depreciation 56,715,030)( 36,302,889)(
Total capital assets 111,178,574 45,067,040
Total assets 155,307,495 63,198,956
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 83,456
Deferred outflows related to pensions 4,730,558 639,628
4,730,558 723,084
LIABILITIES
Accounts payable 928,230 798,992
Accrued liabilities 199,385 25,820
Unearned revenues 1,710 -
Accrued interest payable 92,556 7,171
Advances from developers 1,175,898 69,000
Escrow funds - 26,613
Customer deposits 42,367 456,550
Noncurrent liabilities:
Due within one year 1,557,648 478,275
Due in more than one year 15,158,243 780,000
Total liabilities 19,156,037 2,642,421
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 38,650 5,171
Total deferred outflows of resources 38,650 5,171
NET POSITION
Net investment in capital assets 97,982,160 44,010,618
Restricted:
Debt service 692,093 -
Court security and technology 215,142 -
Grant programs 10,751 -
Leisure services 233,290 -
Economic development 3,456,897 -
Streets and drainage 15,970,063 -
Police 1,485,771 -
Unrestricted 20,797,199 17,263,830
Total net position 140,843,366$ 61,274,448$
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2016
The accompanying notes are an integral
part of these financial statements.32
Total Component Units
30,463,728$ 11,093,838$
24,024,414 6,420,409
2,384,252 -
173,477 -
2,622,500 -
1,336,615 -
132,800 -
136,813 -
51,963 14,065
477,725 -
456,550
9,483,480 6,879,118
49,829,568 -
14,371,858 -
174,917,051 9,418,864
661,576 -
93,017,919)( 404,390)(
156,245,614 15,893,592
218,506,451 33,421,904
83,456 -
5,370,186 -
5,453,642 -
1,727,222 89,898
225,205 -
1,710 -
99,727 -
1,244,898 -
26,613 -
498,917 -
2,035,923 600,000
15,938,243 1,976,161
21,798,458 2,666,059
43,821 -
43,821 -
141,992,778 13,317,431
692,093 -
215,142 -
10,751 -
233,290 -
3,456,897 -
15,970,063 -
1,485,771 -
38,061,029 17,438,414
202,117,814$ 30,755,845$
33
Functions/Programs Expenses Charges for Services
Operating Grants
and Contributions
Capital Grants and
Contributions
Primary government
Governmental activities:
General government 4,449,317$ 15,075$ 46,017$ -$
Community development 1,558,750 1,356,581 - -
Fire and rescue 4,783,421 387,705 11,175 -
Leisure services 4,701,443 505,203 358,246 7,208
Maintenance 689,861 - - -
Municipal court 448,420 1,306,924 - -
Police 5,734,116 93,566 99,407 -
Streets and drainage 5,150,390 794,169 - 312,333
Interest on long-term debt 614,159 - - -
Total governmental activities 28,129,877 4,459,223 514,845 319,541
Business-type activities:
Water and wastewater 13,995,038 15,499,159 - 43,104
Drainage 563,268 954,642 - -
Total business-type activities 14,558,306 16,453,801 - 43,104
Total primary government 42,688,183$ 20,913,024$ 514,845$ 362,645$
Component unit
Tax increment financing 220,123$ -$ -$ 271,173$
Total component unit 220,123$ -$ -$ 271,173$
General 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
Net position - ending
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Program Revenue
34
Governmental
Activities
Business-type
Activities Total Component Units
4,388,225)$( -$ 4,388,225)$( -$
202,169)( - 202,169)( -
4,384,541)( - 4,384,541)( -
3,830,786)( - 3,830,786)( -
689,861)( - 689,861)( -
858,504 - 858,504 -
5,541,143)( - 5,541,143)( -
4,043,888)( - 4,043,888)( -
614,159)( - 614,159)( -
22,836,268)( - 22,836,268)( -
- 1,547,225 1,547,225 -
- 391,374 391,374 -
- 1,938,599 1,938,599 -
22,836,268)( 1,938,599 20,897,669)( -
- - - 51,050
- - - 51,050
13,028,378 - 13,028,378 -
761,969 - 761,969 -
- - - 4,134,433
7,252,963 - 7,252,963 -
2,206,890 - 2,206,890 -
106,607 - 106,607 -
142,343 76,014 218,357 77,779
150,630 - 150,630 -
51,849 71,003 122,852 -
895,668 895,668)( - -
24,597,297 748,651)( 23,848,646 4,212,212
1,761,029 1,189,948 2,950,977 4,263,262
139,082,337 60,084,500 199,166,837 26,492,583
140,843,366$ 61,274,448$ 202,117,814$ 30,755,845$
Net (Expense) Revenue and Changes in Net Position
Primary Government
35
General Capital Projects Debt Service
ASSETS
Cash and cash equivalents 4,659,586$ 10,530,551$ 635,240$
Investments 5,013,069 6,612,722 -
Receivables (net of allowances for uncollectibles)
Accounts 104,305 - -
Taxes 149,329 - 24,148
Loans 142,500 - 2,480,000
Due from other governments 681,882 - 261
Inventories 1,588 - -
Accrued interest 14,313 4,868 -
Prepaid items 7,800 - 125,000
Total assets 10,774,372 17,148,141 3,264,649
LIABILITIES
Accounts payable 749,757 63,452 -
Accrued liabilities 187,708 - -
Unearned revenue 1,710 - -
Advances from developers 47,548 1,114,626 -
Customer deposits 42,367 - -
Total liabilities 1,029,090 1,178,078 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 149,329 - 24,148
Unavailable revenue - municipal fines 12,000 - -
Unavailable revenue - ambulance fees 58,507 - -
Unavailable revenue - receivable from component unit - - 2,480,000
Total deferred inflows of resources 219,836 - 2,504,148
FUND BALANCES
Non-spendable:
Inventories 1,588 - -
Prepaid items 7,800 - -
Restricted:
Streets and drainage - 15,970,063 -
Debt service - - 760,501
Court security and technology - - -
Grant programs - - -
Leisure services - - -
Economic development - - -
Police - - -
Committed:
Strategic incentives 358,974 - -
Sales tax incentives 437,464 - -
Leisure services - - -
Capital projects - - -
Assigned:
Capital projects - - -
Recycling - - -
Leisure services - - -
Unassigned 8,719,620 - -
Total fund balances 9,525,446 15,970,063 760,501
Total liabilities, deferred inflows of resources, and fund balances 10,774,372$ 17,148,141$ 3,264,649$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Long term assets are not available for net pension obligation.
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
CITY OF COLLEYVILLE, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
36
Other Governmental
Total Governmental
Funds
7,900,853$ 23,726,230$
4,376,037 16,001,828
- 104,305
- 173,477
- 2,622,500
654,472 1,336,615
- 1,588
10,397 29,578
- 132,800
12,941,759 44,128,921
115,021 928,230
11,677 199,385
- 1,710
13,724 1,175,898
- 42,367
140,422 2,347,590
- 173,477
12,000
- 58,507
- 2,480,000
- 2,723,984
- 1,588
- 7,800
- 15,970,063
- 760,501
215,142 215,142
10,751 10,751
233,290 233,290
3,456,897 3,456,897
1,485,771 1,485,771
- 358,974
- 437,464
1,249,024 1,249,024
5,153,533 5,153,533
976,792 976,792
1,627 1,627
18,510 18,510
- 8,719,620
12,801,337 39,057,347
12,941,759$
111,178,574
4,691,908
2,723,984
16,808,447)(
140,843,366$
37
General Capital Projects Debt Service
REVENUES
Taxes 19,078,821$ -$ 763,439$
Fees and fines 912,532 - -
Licenses and permits 1,337,928 - -
Intergovernmental - 214,166 -
Charges for services 1,336,915 - -
Capital improvement fees - 766,398 -
Donations - - -
Investment earnings 62,882 17,507 3,853
Miscellaneous 100,433 39,682 -
Total revenues 22,829,511 1,037,753 767,292
EXPENDITURES
Current:
General government 3,897,398 28,978 -
Community development and engineering 1,477,483 146,489 -
Fire and rescue 4,547,455 2,243 -
Leisure services 2,601,493 - -
Maintenance 651,976 38,031 -
Municipal court 349,300 - -
Police 4,446,774 13,972 -
Streets and drainage 1,476,301 1,672,547 -
Debt service:
Principal - - 1,057,094
Interest and other charges - - 369,836
Capital outlay 34,010 1,011,103 -
Total expenditures 19,482,190 2,913,363 1,426,930
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,347,321 1,875,610)( 659,638)(
OTHER FINANCING SOURCES (USES)
Refunding bonds issued - - 6,225,000
Payment to bond escrow agent - - 6,373,776)(
Premium on bond issue - - 239,163
Sale of capital assets 52,957 - -
Transfers in 832,350 4,007,583 500,242
Transfers out 4,259,583)( - -
Total other financing sources and uses 3,374,276)( 4,007,583 590,629
NET CHANGE IN FUND BALANCES 26,955)( 2,131,973 69,009)(
FUND BALANCES, BEGINNING 9,552,401 13,838,090 829,510
FUND BALANCES, ENDING 9,525,446$ 15,970,063$ 760,501$
FOR THE YEAR ENDED SEPTEMBER 30, 2016
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
38
Other
Governmental
Total
Governmental
Funds
3,525,455$ 23,367,715$
99,839 1,012,371
- 1,337,928
10,201 224,367
72,495 1,409,410
- 766,398
421,497 421,497
58,088 142,330
25,527 165,642
4,213,102 28,847,658
110,019 4,036,395
- 1,623,972
18,941 4,568,639
987,118 3,588,611
- 690,007
112,093 461,393
932,685 5,393,431
- 3,148,848
410,000 1,467,094
193,824 563,660
1,327,912 2,373,025
4,092,592 27,915,075
120,510 932,583
- 6,225,000
- 6,373,776)(
- 239,163
42,839 95,796
325,318 5,665,493
510,242)( 4,769,825)(
142,085)( 1,081,851
21,575)( 2,014,434
12,822,912 37,042,913
12,801,337$ 39,057,347$
39
40
THIS PAGE INTENTIONALLY LEFT BLANK
Net change in fund balances - total governmental funds:2,014,434$
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. 2,240,517)(
The net effect of transactions involving capital assets is to decrease net position.43,947)(
Revenues,in the statement of activities,that do not provide current financial
resources, are not reported as revenues in the funds.2,436)(
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.1,307,931
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.757,920
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.32,356)(
1,761,029$
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Amounts reported for governmental activities in the Statement of Activities are
different because:
CITY OF COLLEYVILLE, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Change in net position of governmental activities
The accompanying notes are an integral
part of these financial statements.41
42
THIS PAGE INTENTIONALLY LEFT BLANK
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 18,469,456$ 18,469,456$ 19,078,821$ 609,365$
License and permits 882,800 882,800 1,337,928 455,128
Fees and fines 876,000 876,000 912,532 36,532
Charges for services 1,471,719 1,471,719 1,336,915 134,804)(
Investment earnings 25,000 25,000 62,882 37,882
Other 55,100 55,100 100,433 45,333
Total revenues 21,780,075 21,780,075 22,829,511 1,049,436
EXPENDITURES
Current:
General government 4,183,823 4,183,823 3,897,398 286,425
Community development and engineering 1,678,152 1,678,152 1,477,483 200,669
Fire and rescue 4,429,822 4,429,822 4,547,455 117,633)(
Leisure services 2,836,717 2,836,717 2,601,493 235,224
Maintenance 766,599 766,599 651,976 114,623
Municipal court 394,860 394,860 349,300 45,560
Police 4,635,010 4,635,010 4,446,774 188,236
Streets and drainage 1,649,720 1,649,720 1,476,301 173,419
Capital outlay 27,640 27,640 34,010 6,370)(
Total expenditures 20,602,343 20,602,343 19,482,190 1,120,153
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,177,732 1,177,732 3,347,321 2,169,589
OTHER FINANCING SOURCES (USES)
Transfers in 1,233,417 1,233,417 832,350 401,067)(
Transfers out 3,502,000)( 3,502,000)( 4,259,583)( 757,583)(
Sale of capital assets 5,000 5,000 52,957 47,957
Total other financing sources and uses 2,263,583)( 2,263,583)( 3,374,276)( 1,110,693)(
NET CHANGE IN FUND BALANCE 1,085,851)( 1,085,851)( 26,955)( 1,058,896
FUND BALANCE, BEGINNING 9,552,401 9,552,401 9,552,401 -
FUND BALANCE, ENDING 8,466,550$ 8,466,550$ 9,525,446$ 1,058,896$
Budgeted Amounts
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2016
GENERAL FUND
The accompanying notes are an integral
part of these financial statements.43
Water and
Wastewater Drainage Utility Total
ASSETS
Current assets:
Cash and cash equivalents 5,499,690$ 1,237,808$ 6,737,498$
Investments 7,603,337 419,249 8,022,586
Accounts receivable, net of allowances 2,169,783 110,164 2,279,947
Inventories 135,225 - 135,225
Restricted assets:
Cash and cash equivalents 357,575 120,150 477,725
Investments 456,550 - 456,550
Total current assets 16,222,160 1,887,371 18,109,531
Non-current assets:
Accrued interest receivable 20,967 1,418 22,385
Capital assets:
Land and improvements 304,839 - 304,839
Buildings 53,922 - 53,922
Utility system 74,741,252 4,303,012 79,044,264
Equipment and furniture 1,515,864 451,040 1,966,904
Construction in progress - - -
Less accumulated depreciation 34,757,170)( 1,545,719)( 36,302,889)(
Total non-current assets 41,879,674 3,209,751 45,089,425
Total assets 58,101,834 5,097,122 63,198,956
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 79,869 3,587 83,456
Deferred outflows related to pensions 539,797 99,831 639,628
Total deferred outflows of resources 619,666 103,418 723,084
LIABILITIES
Current liabilities:
Accounts payable 796,680 2,312 798,992
Accrued liabilities 21,911 3,909 25,820
Accrued interest payable 3,788 3,383 7,171
Advances from developers 69,000 - 69,000
Escrow funds 26,613 - 26,613
Customer deposits 456,550 - 456,550
Compensated absences 14,630 3,645 18,275
Revenue bonds payable 350,000 110,000 460,000
Total current liabilities 1,739,172 123,249 1,862,421
Non-current liabilities:
Compensated absences 58,520 14,579 73,099
Net pension obligation 22,803 4,220 27,023
Revenue bonds payable 204,878 475,000 679,878
Total non-current liabilities 286,201 493,799 780,000
Total liabilities 2,025,373 617,048 2,642,421
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 4,426 745 5,171
Total deferred inflows of resources 4,426 745 5,171
NET POSITION
Net investment in capital assets 41,383,698 2,626,920 44,010,618
Unrestricted 15,308,003 1,955,827 17,263,830
Total net position 56,691,701$ 4,582,747$ 61,274,448$
SEPTEMBER 30, 2016
Enterprise Funds
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
The accompanying notes are an integral
part of these financial statements.44
Water and
Wastewater Drainage Utility Total
OPERATING REVENUES
Metered water sales 10,243,727$ -$ 10,243,727$
Wastewater service charges 3,693,142 - 3,693,142
Drainage service charges - 954,642 954,642
Other charges and services 1,529,072 - 1,529,072
Miscellaneous 33,218 - 33,218
Total operating revenues 15,499,159 954,642 16,453,801
OPERATING EXPENSES
Personnel services 1,569,364 300,736 1,870,100
Maintenance and contractual services 10,132,987 86,410 10,219,397
Materials and supplies 263,174 27,473 290,647
Depreciation and amortization 2,011,025 131,704 2,142,729
Total operating expenses 13,976,550 546,323 14,522,873
OPERATING INCOME 1,522,609 408,319 1,930,928
NON-OPERATING REVENUES (EXPENSES)
Interest and investment revenues 68,508 7,506 76,014
Interest expense and fiscal charges 18,488)( 21,484)( 39,972)(
Gain (loss) on disposal of property 71,003 4,539 75,542
Total non-operating revenues (expenses)121,023 9,439)( 111,584
INCOME BEFORE CONTRIBUTIONS
AND TRANSFERS 1,643,632 398,880 2,042,512
Capital contributions 43,104 - 43,104
Transfers out 876,636)( 19,032)( 895,668)(
CHANGE IN NET POSITION 810,100 379,848 1,189,948
TOTAL NET POSITION, BEGINNING 55,881,601 4,202,899 60,084,500
TOTAL NET POSITION, ENDING 56,691,701$ 4,582,747$ 61,274,448$
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Enterprise Funds
The accompanying notes are an integral
part of these financial statements.45
Water and Drainage
Wastewater Utility Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 16,383,532$ 958,640$ 17,342,172$
Cash paid to suppliers for goods and services 10,784,739)( 132,995)( 10,917,734)(
Cash paid to employees for services 1,545,089)( 316,658)( 1,861,747)(
Net cash provided by operating activities 4,053,704 508,987 4,562,691
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out 876,636)( 19,032)( 895,668)(
Net cash used for noncapital
financing activities 876,636)( 19,032)( 895,668)(
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets 780,731)( 45,917)( 826,648)(
Proceeds from sale of capital assets 71,003 4,539 75,542
Principal paid on debt 354,976)( 105,000)( 459,976)(
Interest paid on debt 18,488)( 21,484)( 39,972)(
Net cash used for capital and
related financing activities 1,083,192)( 167,862)( 1,251,054)(
CASH FLOWS FROM INVESTING ACTIVITIES
(Purchase) sale of investments 508,669)( 199,876)( 708,545)(
Earnings on investments 68,508 7,506 76,014
Net cash provided (used) by investing activities 440,161)( 192,370)( 632,531)(
NET INCREASE IN CASH
AND CASH EQUIVALENTS 1,653,715 129,723 1,783,438
CASH AND CASH EQUIVALENTS, BEGINNING 4,203,550 1,228,235 5,431,785
CASH AND CASH EQUIVALENTS, ENDING 5,857,265$ 1,357,958$ 7,215,223$
Enterprise Funds
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
The accompanying notes are an integral
part of these financial statements.46
Water and Drainage
Wastewater Utility Totals
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income 1,522,609$ 408,319$ 1,930,928$
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization expense 2,011,025 131,704 2,142,729
Changes in assets and liabilities:
Decrease (increase) in assets:
Accounts receivable 884,373 3,998 888,371
Inventory 88,965 - 88,965
Accrued interest receivable 4,504)( 1,076)( 5,580)(
Increase (decrease) in liabilities:
Accounts payable 343,953)( 13,355)( 357,308)(
Accrued liabilities 32,227)( 6,848)( 39,075)(
Compensated absences payable 7,952 9,074 17,026
Customer deposits 790 - 790
Net pension liability 78,739)( 26,440)( 105,179)(
Accrued interest payable 2,587)( 3,611 1,024
Net cash provided by operations 4,053,704$ 508,987$ 4,562,691$
Noncash investing, capital, and financing activities:
Contributions of capital assets 43,104$ -$ 43,104$
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Enterprise Funds
FOR THE YEAR ENDED SEPTEMBER 30, 2016
(Continued)
The accompanying notes are an integral
part of these financial statements.47
Agency Fund
ASSETS
Cash and investments 25,489$
Total assets 25,489$
LIABILITIES
Due to other agencies and individuals 25,489$
Total liabilities 25,489$
CITY OF COLLEYVILLE, TEXAS
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2016
The accompanying notes are an integral
part of these financial statements.48
49
CITY OF COLLEYVILLE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 i t 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.
50
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. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements, except for Agency Funds, which have no measurement
focus. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenue in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
51
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, d ebt 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.
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The City reports the following major proprietary funds:
The Water and Wastewater Fund – is used to account for operations (a) that
are financed and operated in a manner similar to private business enterprises –
where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or
(b) where the governing body has decided that periodic determination of
revenue earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or
other purposes. This fund is used to account for water and wastewater
operations.
The Drainage Utility Fund – is used to account for the establishment and
maintenance of drainage facilities within the municipal boundaries of the City.
All activities necessary to provide such facilities are accounted for in this
fund, included but not limited to, administration, operations, maintenance,
billing and collections.
FIDUCIARY FUNDS
Agency Fund – Fiduciary Funds are used to account for assets held by the
City in a trustee capacity or as an agent on behalf of others. Agency funds are
custodial in nature and do not present results of operations or have a
measurement focus. The City has two agency funds: Employee Activity and
the Sesquicentennial Fund. These funds are held for the benefit of City
employees and to benefit the City’s historical purposes.
As a general rule, the effect of interfund activity has been eliminated from the government -
wide financial statements. Exceptions to this general rule are charges between the City’s
water and wastewater function and various other functions of the government. Elimination of
these charges would distort the direct costs and program revenue reported for the various
functions concerned.
Amounts reported as program revenues include: 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenue. Likewise, general revenue
includes all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the City’s Enterprise Funds are charges to customers for sales
and services. Operating expenses for Enterprise Funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenue and expenses not
meeting this definition are reported as nonoperating revenue and expenses.
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D. Cash and Cash Equivalents and Investments
For purposes of the statement of cash flows, the Enterprise Fund considers all highly liquid
investments (investments with original maturities less than 90 days, including restricted
assets) to be cash equivalents.
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and
short-term investments with original maturities of three moths or less from the date of
acquisition. Investments for the City are reported at fair value, except for the position in
investment pools. The City’s investment in pools are 2a7 -like pools and are reported at the
net asset value per share (with approximates fair value) even though it is calculated using the
amortized cost method. 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
will, and does, operating in a manner consistent with the SEC’s Rule 2a7 of the Investment
Company Act of 1940.
E. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due to/from other funds”
(i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the
noncurrent portion of interfund loans). All other outstanding balances between funds are
reported as “due to/from other funds.” Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide
financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
The allowance for 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 cust omers 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.
F. Inventories
Inventories in the Enterprise Fund are valued at cost (first-in, first-out method).
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G. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads,
bridges, sidewalks and similar items) are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $5,000 (amount
not rounded) and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at acquisition value, which is the price that would be paid to acquire an asset
with equivalent service potential at the acquisition date.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets’ lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant and equipment is depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Buildings 15 - 50
Improvements 20 - 50
Equipment 5 - 10
Infrastructure (streets and drainage)50
Water distribution/sewer collection 5 - 40
H. Compensated Absences
City employees are granted vacation and sick pay in varying amounts. In the event of
termination, an employee is paid for all accumulated, unused vacation. Vacation pay is
accrued as it vests to the employee. Sick pay is recorded when paid or upon retirement when
a maximum of 90 days is paid. 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.
I. Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement
of net position.
In the fund financial statements, the face amount of debt issued is reported as other financing
sources for the governmental fund types.
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For governmental fund types, bond premiums and discounts, as well as issuance costs, are
recognized during the current period. Bond proceeds are reported as another financing source.
Issuance costs, even if withheld from the actual net proceeds received, are reported as
expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance
costs, are charged to current operations rather than being deferred and amortized due to the
relatively immaterial effect on the basic financial statements taken as a whole.
J. Fund Balance Classification
The governmental fund financial statements present fund balances based on classifications that
comprise a hierarchy that is based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which amounts in the respective governmental funds
can be spent. The classifications used in the governmental fund financial statements are as
follows:
Nonspendable: This classification includes amounts that cannot be spent because they
are either (a) not in spendable form or (b) are legally or contractually required to be
maintained intact. Nonspendable items are not expected to be converted to cash or are
not expected to be converted to cash within the next year.
Restricted: This classification includes amounts for which constraints have been
placed on the use of the resources either (a) externally imposed by creditors, grantors,
contributors, or laws or regulations of other governments, or (b) imposed by law
through constitutional provisions or enabling legislation.
Committed: This classification includes amounts that can be used only for specific
purposes pursuant to constraints imposed by resolution of the City Council, the City’s
highest level of decision making authority. These amounts cannot be used for any
other purpose unless the Council removes or changes the specified use by taking the
same type of action that was employed when the funds were initially committed. This
classification also includes contractual obligations to the extent that existing resources
have been specifically committed for use in satisfying those contractual requirements.
Assigned: This classification includes amounts that are constrained by the City’s
intent to be used for a specific purpose but are neither restricted nor committed. This
is done through resolution of the City Council. This intent can be expressed by the
Chief Financial Officer.
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.
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K. Minimum Unassigned Fund Balance
It is the goal of the City to achieve and maintain an unassigned fund balance in the General
Fund equal to three months of that year’s budgeted expenditures for both the General and
Utility Funds. The City Council may declare a fiscal emergency and withdraw any amount of
the unassigned General and Utility Funds’ balances for purposes of addressing the fiscal
emergency. Any such action must also provide for necessary appropriations to restore the
designated fund balance to the balance within a three-year period.
L. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g.,
restricted bond or grant proceeds) and unrestricted resources. In order to calculate the
amounts to report as restricted – net position and unrestricted – net position in the
government-wide and proprietary fund financial statements, a flow assumption must be made
about the order in which the resources are considered to be applied. It is the City’s policy to
consider restricted – net position to have been depleted before unrestricted – net position is
applied.
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a
future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The City has the following items that qualify for reporting
in this category.
Deferred charges on refundings - A deferred charge on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
Pension 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.
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In addition to liabilities, the balance sheet will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of fund that applies to a future period(s) and so will not
be recognized as an inflow of resources (revenue) until that time. The government has one
type of item, which arises only under a modified accrual basis of accounting, 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 four sources: property taxes, municipal fines and ambulance fees, and a note payable
from the component unit. These amounts are deferred and recognized as an inflow of
resources in that period that the amounts become available. The City also had a deferred
inflow of resources for the following:
Difference in projected and actual earnings on pension assets. The difference will be
amortized over a closed five year period.
N. Estimates
The preparation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual amounts could differ from those estimates.
O. Risk Management
Insurance coverage for property, liability and workers’ compensation is provided by the
Texas Municipal League Intergovernmental Risk Pool, a state insurance pool. Contributions
to the Risk Pool for workers’ compensation are based on the City’s past claims history. The
Risk Pool is self-sustaining through members’ contributions and maintains insurance to limit
risk of loss with an external insurance company. Settlement claims have not exceeded
aggregate limits in the past three fiscal years.
P. Pensions
For purposes of measuring the net pension 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.
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2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the
Government-wide Statement of Net 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 $(16,808,447) difference are as follows:
Bonds payable 15,075,000)$(
Bond premiums 239,163)(
Capital leases payable 362,251)(
Accrued interest payable 92,556)(
Compensated absences 839,634)(
Net pension 199,843)(
Net adjustment to reduce fund balance - total
governmental funds to arrive at net position -
governmental activities 16,808,447)$(
Explanation of Certain Differences Between the Governmental Fund Statement of Revenue,
Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities
The governmental fund statement of revenue, expenditures and changes in fund balances includes
a reconciliation between net changes in fund balances – total governmental fund and changes in
net 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 $(2,240,517)
difference are as follows:
Capital outlay 2,471,192$
Depreciation expense 4,711,709)(
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities 2,240,517)$(
Another element of that reconciliation states, “Revenues in the statement of activities that do not
provide current financial resources are not reported as revenues in the funds.” The details of this
$(2,436) difference are as follows:
Property taxes 10,908)$(
Ambulance revenue 9,122
Adjudicated fines 650)(
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities 2,436)$(
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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 $1,307,931
difference are as follows:
Principal payments and refundings 1,398,318$
Debt refunding - proceeds 6,225,000)(
Bond premium 239,163)(
Payment to escrow agent 6,373,776
Net adjustment to reduce fund balance -total
governmental funds to arrive at net position -
governmental activities 1,307,931$
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 $(32,356) difference are as follows:
Compensated absences 50,633)$(
Accrued interest 18,277
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities 32,356)$(
3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
The City Council follows these procedures in establishing budgetary data reflected in the
basic financial statements:
(1) Prior to September 1, the City Manager submits to the City Council a
proposed operating budget for the fiscal year commencing the following
October 1. The operating budget includes proposed expenditures and the
means of financing them.
(2) Public hearings are conducted to obtain taxpayer comments.
(3) Prior to September 30, the budget is legally enacted through passage of an
ordinance.
(4) The City Manager is authorized to transfer budgeted amounts between
departments within any fund; however, any revisions that alter the total
expenditures of any fund must be approved by the City Council.
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(5) Formal budgetary integration is employed as a management control device
during the year for the General, Debt Service, and Enterprise Funds.
Budgetary control is maintained at the fund level.
Internal budgets are prepared and reviewed by the City Council for
expenditures of Special Revenue Funds. These budgeted expenditures are not
formally adopted by the City Council. No budgets were prepared for revenue
of these funds for the year ended September 30, 2016.
(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
Fire and rescue, and capital outlay expenditures in the general fund exceeded
appropriations by $117,663, and $6,370. This overage was funded by under spending in
other functions.
4. DETAILED NOTES ON ALL FUNDS
Deposits and Investments
As of September 30, 2016, the City had the following investments:
Fair Weighted Average
Investment Type Value Maturity (Days)
LOGIC 24,915,955$ 45
U. S. Treasuries and Agencies 26,329,029 353
Total fair value 51,244,984$
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The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are
significant unobservable inputs.
The City has the following recurring fair value measurements as of September 30, 2016:
U.S. Treasury and Agency securities of $8,199,795 are valued using quoted prices in
an active market for identical assets (Level 1 inputs).
U.S. Treasury and Agency securities of $18,129,234 are valued using a matrix pricing
model (Level 2 inputs).
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions
in the areas of investment practices, management reports and establishment of appropriate
policies. Among other things, it requires the City to adopt, implement, and publicize an
investment policy. That policy must address the following areas: (1) safety of principal and
liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5)
expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7)
maximum average dollar-weighted maturity allowed based on the stated maturity date for the
portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for
certificates of deposit. Statutes authorize the City to invest in (1) obligations of the U. S.
Treasury, certain U. S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain
municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers
acceptances, (7) Mutual Funds, (8) investment pools, (9) guaranteed investment contracts, and
(10) common trust funds. The Act also requires the City to have independent auditors perform
test procedures related to investment practices as provided by the Act. The City is in substantial
compliance with the requirements of the Act and with local policies.
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 statu tes
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,
2016.
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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 AAAm
U. S. Treasuries and Agencies 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:
Capital Debt Nonmajor Water and Drainage
General Projects Service Funds Wastewater Utility Total
Receivables:
Accounts 531,298$ -$ -$ -$ 2,215,337$ 110,164$ 2,856,799$
Taxes 149,329 - 24,148 - - - 173,477
Due from other
governments 681,882 - 261 654,472 - - 1,336,615
Loans 142,500 - 2,480,000 - - - 2,622,500
Accrued interest 14,313 4,868 - 10,397 20,967 1,418 51,963
Gross receivables 1,519,322 4,868 2,504,409 664,869 2,236,304 111,582 7,041,354
Less: allowance for
uncollectibles 426,993)( - - - 45,554)( - 472,547)(
Net total receivables 1,092,329$ 4,868$ 2,504,409$ 664,869$ 2,190,750$ 111,582$ 6,568,807$
Governmental Funds Enterprise Funds
The City’s property tax is levied each October 1 on the assessed value listed as of the prior
January 1 for all real property and certain personal property located in the City. Tax liens attach
as of January 1. The assessed value, net of exemptions, upon which the fiscal 2016 levy was
based, was $4,136,913,117.
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, 2016, 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 $13,800,935 for the year ended September 30, 2016. Property taxes receivable
at September 30, 2016, were $173,477.
The appraisal of property within the City is the responsibility of a countywide appraisal district
as required by legislation passed by the Texas Legislature. The appraisal district is required
under such legislation to assess all property within the appraisal district on the basis of 100% of
its appraised value and is prohibited from applying any assessment ratios. The value of property
within the appraisal district must be reviewed every three years; however, the City may, at its
own expense, require annual reviews of appraised values. The City may challenge appraised
values established by the appraisal district through various appeals and, if necessary, legal action.
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Capital Assets
Capital asset activity for the year ended September 30, 2016, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land 9,178,641$ -$ -$ 9,178,641$
Construction in progress 5,122,642 1,031,140 5,492,206)( 661,576
Total assets not being depreciated 14,301,283 1,031,140 5,492,206)( 9,840,217
Capital assets, being depreciated:
Buildings and improvements 46,882,488 2,893,158 - 49,775,646
Machinery and equipment 11,007,458 1,744,367 346,871)( 12,404,954
Infrastructure 93,599,298 2,273,489 - 95,872,787
Total capital assets being depreciated 151,489,244 6,911,014 346,871)( 158,053,387
Less accumulated depreciation:
Buildings and improvements 17,360,237)( 1,621,117)( - 18,981,354)(
Machinery and equipment 8,650,817)( 1,172,538)( 324,168 9,499,187)(
Improvements other than buildings 26,316,435)( 1,918,054)( - 28,234,489)(
Total accumulated depreciation 52,327,489)( 4,711,709)( 324,168 56,715,030)(
Total capital assets being depreciated, net 99,161,755 2,199,305 22,703)( 101,338,357
Governmental activities capital
assets, net 113,463,038$ 3,230,445$ 5,514,909)$( 111,178,574$
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land 304,839$ -$ -$ 304,839$
Construction in progress 3,773,157 - 3,773,157)( -
Total assets not being depreciated 4,077,996 - 3,773,157)( 304,839
Capital assets, being depreciated:
Buildings and improvements 53,922 - - 53,922
Machinery and equipment 2,008,921 206,303 248,320)( 1,966,904
Improvements other than buildings 74,597,681 4,446,583 - 79,044,264
Total capital assets being depreciated 76,660,524 4,652,886 248,320)( 81,065,090
Less accumulated depreciation:
Buildings and improvements 50,195)( 622)( - 50,817)(
Machinery and equipment 1,420,984)( 230,404)( 248,320 1,403,068)(
Improvements other than buildings 32,944,014)( 1,904,990)( - 34,849,004)(
Total accumulated depreciation 34,415,193)( 2,136,016)( 248,320 36,302,889)(
Total capital assets being depreciated, net 42,245,331 2,516,870 - 44,762,201
Business-type activities capital assets, net 46,323,327$ 2,516,870$ 3,773,157)$( 45,067,040$
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Beginning Ending
Balance Increases Decreases Balance
Component unit:
Capital assets, not being depreciated:
Construction in progress 12,217,863$ -$ 2,798,999)$( 9,418,864$
Total assets not being depreciated 12,217,863 - 2,798,999)( 9,418,864
Capital assets, being depreciated:
Improvements other than buildings 1,853,241 5,025,877 - 6,879,118
Total capital assets being depreciated 1,853,241 5,025,877 - 6,879,118
Less accumulated depreciation:
Improvements other than buildings 262,623)( 141,767)( - 404,390)(
Total accumulated depreciation 262,623)( 141,767)( - 404,390)(
Total capital assets being depreciated, net 1,590,618 4,884,110 - 6,474,728
Component unit capital assets, net 13,808,481$ 4,884,110$ 2,798,999)$( 15,893,592$
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 526,770$
Fire and rescue 426,675
Leisure services 1,173,705
Maintenance 9,203
Police 548,606
Streets and drainage 2,026,750
Total depreciation expense - governmental activities 4,711,709$
Business-type activities:
Water and wastewater 2,005,027$
Drainage utility 130,989
Total depreciation expense - business-type activities 2,136,016$
Construction Commitments
The government has active construction projects as of September 30, 2016. The major projects
are listed as follows:
Remaining
Project Spent-to-date Commitment
Bedford Road Retaining Wall 52,265$ 300,035$
Glade Road Design Phase 1 622,894 41,471
Glade Road Design Phases 2-4 195,013 1,245,926
Glade Road ROW Phase 1 459,985 465,015
Westcoat 356,092 257,757
Total 1,686,249$ 2,310,204$
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Interfund Transactions
The composition of interfund transfers as of September 30, 2016, is as follows:
Interfund Transfers
Nonmajor
Capital Debt Government
General Projects Service Funds Total
Transfer Out:
General -$ 4,007,583$ -$ 252,000$ 4,259,583$
Nonmajor governmental - - 500,242 10,000 510,242
Water and wastewater 832,350 - - 44,286 876,636
Drainage fee - - - 19,032 19,032
Total Transfers Out 832,350$ 4,007,583$ 500,242$ 325,318$ 5,665,493$
Transfer In
The transfer of $832,350 from the Water and Wastewater Fund to the General Fund represents
the 2016 Administrative transfer and the franchise fee based on gross water and wastewater
revenue of the prior year’s audited financial statements. The transfer of $3,542,178 from the
General Fund to the Capital Projects and nonmajor governmental funds represents transfers for
capital replacement. The transfer of $500,242 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 $35,540,000.
General obligation bonds are direct obligations and pledge the full faith and credit of the
government. These bonds generally are issued as 20-year serial bonds with equal amounts of
principal maturing each year. General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Amount
Governmental activities 2% - 5%15,075,000$
15,075,000$
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Long-term liability activity for the year ended September 30, 2016, was as follows:
Balance Balance Amounts
September 30,September 30,Due Within
2015 Additions Retirements 2016 One Year
Governmental activities
General obligation bonds and
certificates of obligation 6,920,000$ 6,225,000$ 4,595,000$ 8,550,000$ 825,000$
Premium on bonds - 239,163 - 239,163 -
Sales tax revenue bonds 6,935,000 - 410,000 6,525,000 420,000
Capital lease obligations 649,345 - 287,094 362,251 144,721
Net pension obligation 199,843 199,843 -
Compensated absences 789,001 513,460 462,826 839,635 167,927
Total governmental activities 15,293,346 7,177,466 5,754,920 16,715,892 1,557,648
Business-type activities
Revenue bonds and certificates
of obligation 1,540,000 - 450,000 1,090,000 460,000
Premium on bonds 59,854 - 9,976 49,878 -
Net pension obligation - 27,023 - 27,023 -
Compensated absences 74,348 61,597 44,571 91,374 18,275
Total business-type activities 1,674,202 88,620 504,547 1,258,275 478,275
Total primary government 16,967,548$ 7,266,086$ 6,259,467$ 17,974,167$ 2,035,923$
Component unit
Tax increment financing fund
Note payable to primary government 3,105,000$ 2,480,000$ 3,105,000$ 2,480,000$ 600,000$
Bond premium 83,900 96,161 83,900 96,161 -
Total component unit 3,188,900$ 2,576,161$ 3,188,900$ 2,576,161$ 600,000$
For the governmental activities, compensated absences are generally liquidated by the General
Fund.
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Governmental activities long-term liabilities at September 30, 2016, consisted of the following:
$2,915,000 Series 2006 General Obligation Refunding bonds due in
annual installments of $25,000 to $540,000 through February 15,2019;
interest at 3.64%.1,545,000$
$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%. Partially refunded in 2016.150,000
$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%.630,000
$6,225,000 Series 2016 General Obligation Refunding Bonds due in
annual installments of $475,000 to $875,000 through February 15,
2027; interest at 2.00% to 3.00%.6,225,000
Total General Obligation Bonds and Certificates of Obligation 8,550,000$
General obligation bonds and certificates of obligation serviced by property tax revenue:
$9,570,000 Series 2013 Colleyville Economic Development Corporation
Refunding and Improvement Sales Tax Revenue Bonds due in annual
installments of $340,000 to $635,000 through February 15,2029;
interest at 2.88%6,525,000$
Total Revenue Bonds 6,525,000$
The City’s defeased debt as of September 30, 2016, was $3,825,000.
Business-type activities long-term liabilities at September 30, 2016, consisted of the following:
$1,890,000 Series 2010 Waterworks and Wastewater System
Refunding Bonds due in annual installments of $155,000 to $580,000
through January 1, 2018; interest at 2.00% - 3.00%.505,000$
Total Water and Wastewater Fund 505,000$
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 $225,000
through February 15, 2021; interest at 3.47%.585,000$
Total Drainage Utility Fund 585,000$
Total Business-type activities 1,090,000$
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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, 2016, the
City was in compliance with these requirements.
The City’s component unit, the Tax Increment Financing District, long-term liabilities at
September 30, 2016, consisted of the following:
$2,480,000 Note Payable to Primary Government due in annual
installments of $600,000 to $645,000 through February 15,2020;
interest at 2.00% to 4.00%.2,480,000$
Total Tax Increment Financing District 2,480,000$
Tax Increment Financing District
September 30,Principal Interest Principal Interest
2017 1,425,000$ 216,645$ 420,000$ 181,872$
2018 1,460,000 177,838 425,000 169,704
2019 1,510,000 133,128 445,000 157,176
2020 1,045,000 91,425 460,000 144,144
2021 410,000 68,750 470,000 130,752
2022-2026 2,225,000 169,400 2,570,000 438,624
2027-2031 475,000 4,750 1,735,000 75,816
8,550,000$ 861,936$ 6,525,000$ 1,298,088$
Governmental Activities
General
Obligation Bonds and
Certificates of Obligation Revenue Bonds
September 30,Principal Interest
2017 460,000$ 28,291$
2018 265,000 16,899
2019 115,000 10,670
2020 125,000 6,506
2021 125,000 2,169
1,090,000$ 64,535$
Business-type Activities
Revenue Bonds
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September 30,Principal Interest
2017 600,000$ 55,781$
2018 610,000 44,200
2019 625,000 28,725
2020 645,000 9,675
2,480,000$ 138,381$
Discretely Presented Component Unit -
Tax Increment Financing Fund
Revenue Bonds
Bond Refunding
On July 15, 2016, the City issued $6,225,000 of General Obligation Refunding Bonds, Series
2016. The net proceeds from the issuance of the bonds were used to purchase U.S. Government
Securities and those securities were deposited in an irrevocable trust with an escrow agent to
provide future debt service payments. The refunded bonds are considered legally defeased and
the liability for these bonds have been removed. The new bonds defeased the GO Bonds, Series
2007 and the Combination Tax and Tax Increment Revenue Refunding Bonds, Series 2011
bonds. The reacquisition price exceeded the net carrying amount of the old deb t by $7,743. The
City refunded to reduce its total debt service payments by $673,534 and to obtain an economic
gain of $602,797 (present value).
Capital Leases
The City has entered into lease agreements as lessee for financing and acquisition of equipment
for the Fire Department. These lease agreements qualify as capital leases for accounting purposes
and, therefore, have been recorded at the present value of its future minimum lease payments as
of the inception date.
The assets acquired through capital leases are as follows:
Governmental
Activities
Asset:
Machinery and equipment 1,552,161$
Less: accumulated depreciation 732,455)(
Total 819,706$
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The future minimum lease obligations and the net present value of these minimum lease
payments as of September 30, 2016, were as follows:
Governmental
Activities
2017 161,419$
2018 116,839
2019 116,839
Total minimum lease payments 395,097
Less: amount representing interest 32,846)(
Present value of minimum lease payments 362,251$
Defined Benefit Pension Policies
Plan Descriptions
The City participates as one of 866 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.
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 Cit y-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.
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A summary of plan provisions for the City are as follows:
Employee deposit rate 7%
Matching ratio (City to employee)2 to 1
Years required for vesting 5
Service retirement eligibility 20 years to any age,
5 years at age 60 and above
Updated service credit 100% repeating, transfers
Annuity increase to retirees 0% of CPI
Employees covered by benefit terms
At the December 31, 2015 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 106
Inactive employees entitled to but not yet receiving benefits 117
Active employees 181
404
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross
earnings, and the City matching percentages are with 100%, 150%, or 200%, both as adopted by
the governing body of the City. Under the state law governing TMRS, the contributions rate for
each city is determined as the estimated amount necessary to finance the cost of benefits earned
by employees during the year, with an additional amount to finance any unfunded accrued
liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the
fiscal year. The contribution rates for the City were 7.69% and 7.58% in calendar years 2015 and
2016, respectively. The city’s contributions to TMRS for the year ended September 30, 2016,
were $941,907, and were equal to the required contributions.
Net Pension Liability
The city’s Net Pension Liability (NPL) was measured as of December 31, 2015, 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, 2015 actuarial valuation was determined using
the following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
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Salary increases were based on a service-related table. Mortality rates for active members,
retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy
Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female
rates multiplied by 103%. Based on the size of the city, rates are multiplied by a factor of 100%.
The rates are projected on a fully generational basis by scale BB to account for future mortality
improvements. For disabled annuitants, the gender-distinct RP2000 Combined Healthy Mortality
Tables with Blue Collar Adjustments are used with males rates multiplied by 109% and female
rates multiplied by 103% with a 3-year-set-forward for both males and females. In addition, a
3% minimum mortality rate is applied to reflect the impairment for younger members who
become disabled. The rates are projected on a fully generational basis by scale BB to account for
future mortality improvements subject to the 3% floor.
Actuarial assumptions used in the December 31, 2015, valuation were based on the results of
actuarial experience studies. The experience study in TMRS was for the period of December 31,
2010 through December 31, 2014. Healthy post-retirement morality 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. After the Asset Allocation Study analysis and experience investigation study, the
Board amended the long-term expected rate of return on pension plan investments from 7% to
6.75%. Plan assets are managed on a total return basis with an emphasis on both capital
appreciation as well as the production of income, in order to satisfy the short-term and long-term
funding needs of TMRS.
73
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. These rangers are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage an d
by adding expected inflation. In determining their best estimate of a recommended investment
return assumption under the various alternative asset allocation portfolios, GRS focused on the
area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and
(2) the geometric mean (conservative) with an adjustment for time (aggressive). At its meeting
on July 30, 2015, the TMRS Board approved a new portfolio target allocation. 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 of TMRS. The target allocation and best estimates of
arithmetic real rates of return for each major assets class are summarized in the following table:
Asset Class Target Allocation Long-Term Expected Real Rate of Return (Arithmetic)
Domestic Equity 17.5%4.55%
International Equity 17.5%6.10%
Core Fixed Income 10.0%1.00%
Non-Core Fixed Income 20.0%3.65%
Real Return 10.0%4.03%
Real Estate 10.0%5.00%
Absolute Return 10.0%4.00%
Private Equity 5.0%8.50%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash
flows used to determine the discount rate assumed that employee and employer contributions
will be made at the rates specified in 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 proj ected benefit payments to
determine the Total Pension Liability.
74
Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at 12/31/2014 44,992,613$ 48,865,090$ 3,872,477)$(
Changes for the year:
Service cost 1,820,192 - 1,820,192
Interest 3,149,676 - 3,149,676
Difference between expected and actual experience 55,444)( - 55,444)(
Changes of assumptions 937,119 - 937,119
Contributions - employer - 903,631 903,631)(
Contributions - employee 1,814,665)( 822,553 2,637,218)(
Net investment income - 72,103 72,103)(
Benefit payments, including refunds of employee
contributions - 1,814,665)( 1,814,665
Administrative expense - 43,918)( 43,918
Other changes - 2,170)( 2,170
Net changes 4,036,878 62,466)( 4,099,344
Balance at 12/31/2015 49,029,491$ 48,802,624$ 226,867$
Increase (Decrease)
The following presents the net pension liability of the City, calculated using the discount rate of
6.75%, as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (5.75%) of 1-percentage-higher (7.75%) than the
current rate:
1% Decrease in 1% Increase in
Discount Rate (5.75%) Discount Rate (6.75%) Discount Rate (7.75%)
City's net pension
liability 7,152,669$ 226,867$ 5,472,292)$(
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-
issued TMRS financial report. The report may be obtained on the Internet at www.tmrs.org.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions. For the year ended September 30, 2016, the City recognized pension
expense of $1,774,402.
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At September 30, 2016, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Resources Inflows of Resources
Differences between expected and
actual economic experience 79,978$ 43,821$
Changes in actuarial assumptions 740,658 -
Difference between projected and actual
investment earnings 3,035,484 -
Contributions subsequent to the
measurement date 1,514,067 -
Total 5,370,187$ 43,821$
$1,514,067 reported as deferred outflows of resources related to pensions resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the year ending September 30, 2017. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expenses as
follows:
Year ended Dec 31
2016 1,001,556$
2017 1,001,556
2018 997,175
2019 812,012
3,812,299$
Water and Wastewater Contracts
The City has two contracts with the Trinity River Authority of Texas (TRA) for the purchase of
treated water and for the transportation, treatment and disposal of sanitary sewage and other waste.
The initial term of the contracts are 35 years (water – April 2014) and 50 years (wastewater –
November 2023), however both contain language that they will continue in effect until all related
bonds and refunding bonds in lieu of debt have been paid. While the provisions of each of the
contracts vary, each contract basically requires the City to pay varying amounts based on the costs
associated with water purchased and sewage transported and/or treated and disposed. The cost
includes the City’s proportionate share of TRA’s operating and maintenance expenses, related debt
service costs, and certain other miscellaneous charges. Purchases of treated water and charges for
the transportation, treatment and disposal of sewage and other wastes during fiscal year 2016
amounted to approximately $7,275,679 and $2,375,369, respectively.
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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, 2016, developers had escrowed $3,052,842 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. R einsurance
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 Postemployment 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.
77
The City’s contributions to the TMRS SDBF for the years ended 2016, 2015, and 2014 were
$18,639, $17,776, and $16,837, respectively, which equaled the required contributions each year.
Annual Actual
Accounting Required Contribution Percentage
Year Contribution Made of ARC
Ending (Rate)(Rate)Contributed
09/30/14 .016%.016%100%
09/30/15 .015%.015%100%
09/30/16 .015%.015%100%
Schedule of Contribution Rates
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REQUIRED
SUPPLEMENTARY INFORMATION
Plan Year 2014 2015
A. Total pension liability
Service Cost 1,598,908$ 1,820,192$
Interest (on the Total Pension Liability)2,938,763 3,149,676
Difference between expected and actual experience 136,216 55,444)(
Changes in assumptions - 937,119
Benefit payments, including refunds of employee contributions 1,728,299)( 1,814,665)(
Net change in total pension liability 2,945,588 4,036,878
Total pension liability - beginning 42,047,025 44,992,613
Total pension liability - ending (a)44,992,613$ 49,029,491$
B. Plan fiduciary net position
Contributions - Employer 745,874$ 903,631$
Contributions - Employee 763,324 822,553
Net Investment Income 2,657,437 72,103
Benefit payments, including refunds of employee contributions 1,728,299)( 1,814,665)(
Administrative Expenses 27,747)( 43,918)(
Other 2,281)( 2,170)(
Net change in plan fiduciary net position 2,408,308 62,466)(
Plan fiduciary net position - beginning 46,456,782 48,865,090
Plan fiduciary net position - ending (b)48,865,090$ 48,802,624$
C. Net pension liability - ending (a) - (b)3,872,477)$( 226,867$
D. Plan fiduciary net position as a percentage of total pension liability 108.61%99.54%
E. Covered employee payroll 10,904,635$ 11,750,753$
F. Net position liability as a percentage of covered employee payroll -35.51%1.93%
Note: This schedule is required to have 10 years of information, but the information prior to 2014 is not available.
FOR THE YEAR ENDED SEPTEMBER 30, 2016
AND RELATED RATIOS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
CITY OF COLLEYVILLE, TEXAS
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Fiscal Year 2014 2015 2016
Actuarial determined contribution 738,034$ 868,363$ 941,907$
Contributions in relation to the actuarially determined contribution 738,034 868,363 941,907
Contribution deficiency (excess)- - -
Covered employee payroll 10,707,890 11,640,489 12,281,471
Contributions as a percentage of covered employee payroll 6.89%7.46%7.67%
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization 25 years
Period
Asset Valuation Method 10 Year smoothed market; 15% soft corridor
Inflation 2.50%
Salary Increases 3.50% to 10.5% including inflation
Investment Rate of Return 6.75%
Retirement Age
Mortality
Other Information:
Notes There were no benefit changes during the year.
Note: This schedule is required to have 10 years of information, but the information prior to 2014 is not available.
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.
FOR THE YEAR ENDED SEPTEMBER 30, 2016
SCHEDULE OF CONTRIBUTIONS
CITY OF COLLEYVILLE, TEXAS
NOTES TO SCHEDULE OF CONTRIBUTIONS
Actuarially determined contribution rates are calculated as of December 31 and become
effective in January 13 months later.
Experience-based table of rates that are specific to the City's plan of benefits.Last updated
for the 2015 valuation pursuant to an experience study of the period 2010-2014.
81
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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.
83
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.
Voluntary Park
Voluntary
Library
Police Asset
Forfeiture
ASSETS
Cash and cash equivalents 1,924$ 53,163$ 2,112$
Investments 817,413 359,478 -
Due from other governments - - -
Accrued interest 2,192 812 -
Total assets 821,529 413,453 2,112
LIABILITIES
Accounts payable - - -
Accrued liabilities - - -
Advances from developers - - -
Total liabilities - - -
FUND BALANCES
Restricted - - 2,112
Committed 821,529 413,453 -
Assigned - - -
Total fund balances 821,529 413,453 2,112
Total liabilities and fund balances 821,529$ 413,453$ 2,112$
CITY OF COLLEYVILLE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
Special Revenue Funds
84
Tree
Preservation
Library
Donation
Recreational
Event
Colleyville
Center
Development Recycling LEOSE
27,766$ 139,223$ 10,606$ 5,857$ 1,627$ 2,618$
- - - - - -
- - - - - -
- - - - - -
27,766 139,223 10,606 5,857 1,627 2,618
- - - - - -
- - - - - -
13,724 - - - - -
13,724 - - - - -
- 139,223 - 5,857 - 2,618
14,042 - - - - -
- - 10,606 - 1,627 -
14,042 139,223 10,606 5,857 1,627 2,618
27,766$ 139,223$ 10,606$ 5,857$ 1,627$ 2,618$
Special Revenue Funds
85
Colleyville
Economic
Development Crime District
Kidsville
Maintenance
ASSETS
Cash and cash equivalents 2,602,046$ 1,295,306$ 20,237$
Investments 510,349 - -
Due from other governments 343,988 299,653 -
Accrued interest 514 - -
Total assets 3,456,897 1,594,959 20,237
LIABILITIES
Accounts payable - 100,474 -
Accrued liabilities - 10,826 -
Advances from developers - - -
Total liabilities - 111,300 -
FUND BALANCES
Restricted 3,456,897 1,483,659 20,237
Committed - - -
Assigned - - -
Total fund balances 3,456,897 1,483,659 20,237
Total liabilities and fund balances 3,456,897$ 1,594,959$ 20,237$
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
(Continued)
CITY OF COLLEYVILLE, TEXAS
COMBINING BALANCE SHEET
Special Revenue Funds
86
Special
Donations
Court
Technology Court Security TDPA Grant Public Art
Juvenile Case
Manager
67,973$ 121,820$ 57,495$ 8,133$ 7,904$ 25,881$
- - - - - -
- - 10,831 - - -
- - - - - -
67,973 121,820 68,326 8,133 7,904 25,881
- - - - - 34
- - 98 - - 753
- - - - - -
- - 98 - - 787
67,973 121,820 68,228 8,133 - 25,094
- - - - - -
- - - - 7,904 -
67,973 121,820 68,228 8,133 7,904 25,094
67,973$ 121,820$ 68,326$ 8,133$ 7,904$ 25,881$
Special Revenue Funds
87
Colleyville
Tomorrow
Parks
Tomorrow
Park Land
Dedication
ASSETS
Cash and cash equivalents 1,799,950$ 1,050,062$ 158,186$
Investments 475,224 - 1,613,848
Due from other governments - - -
Accrued interest 1,123 - 3,859
Total assets 2,276,297 1,050,062 1,775,893
LIABILITIES
Accounts payable 500 14,013 -
Accrued liabilities - - -
Advances from developers - - -
Total liabilities 500 14,013 -
FUND BALANCES
Restricted - - -
Committed 2,275,797 1,036,049 1,775,893
Assigned - - -
Total fund balances 2,275,797 1,036,049 1,775,893
Total liabilities and fund balances 2,276,297$ 1,050,062$ 1,775,893$
SEPTEMBER 30, 2016
Capital Project Funds
CITY OF COLLEYVILLE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
88
CEDC Capital
Project
Capital and
Cable
Equipment
Replacement Kimzey Park
Total
Governmental
Funds
65,794$ 375,170$ -$ 7,900,853$
- 599,725 - 4,376,037
- - - 654,472
- 1,897 - 10,397
65,794 976,792 - 12,941,759
- - - 115,021
- - - 11,677
- - - 13,724
- - - 140,422
- - - 5,401,851
65,794 - - 6,402,557
- 976,792 - 996,929
65,794 976,792 - 12,801,337
65,794$ 976,792$ -$ 12,941,759$
Capital Project Funds
89
Voluntary Park
Voluntary
Library
Police Asset
Forfeiture
REVENUES
Taxes -$ -$ -$
Fees and fines - - -
Intergovernmental - - -
Charges for services - - -
Donations 159,873 159,873 -
Investment earnings 7,501 1,736 -
Miscellaneous - - 183
Total revenues 167,374 161,609 183
EXPENDITURES
Current:
General government - - -
Fire and rescue - - -
Leisure services 103,118 152,917 -
Municipal court - - -
Police - - 2,163
Debt service:
Principal - - -
Interest and other charges - - -
Capital outlay 94,953 - -
Total expenditures 198,071 152,917 2,163
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 30,697)( 8,692 1,980)(
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - -
Transfers in - - -
Transfers out - - -
Total other financing sources and uses - - -
NET CHANGE IN FUND BALANCES 30,697)( 8,692 1,980)(
FUND BALANCES, BEGINNING 852,226 404,761 4,092
FUND BALANCES, ENDING 821,529$ 413,453$ 2,112$
Special Revenue Funds
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
90
Tree
Preservation
Library
Donation
Recreational
Event
Colleyville
Center
Development Recycling LEOSE
-$ -$ -$ -$ -$ -$
- - - - - -
- 2,175 - - - 4,026
- - - - - -
- 19,040 13,772 - - -
- - - - - -
- - - - 15,000 -
- 21,215 13,772 - 15,000 4,026
10,693 - - - 15,000 -
- - - - - -
- 17,053 8,615 - - -
- - - - - -
- - - - - 3,119
- - - - - -
- - - - - -
- - - - - -
10,693 17,053 8,615 - 15,000 3,119
10,693)( 4,162 5,157 - - 907
- - - - - -
- - - - - -
- - - - - -
- - - - - -
10,693)( 4,162 5,157 - - 907
24,735 135,061 5,449 5,857 1,627 1,711
14,042$ 139,223$ 10,606$ 5,857$ 1,627$ 2,618$
Special Revenue Funds
91
Colleyville
Economic
Development Crime District
Kidsville
Maintenance
REVENUES
Taxes 1,864,083$ 1,661,372$ -$
Fees and fines - - -
Intergovernmental - - -
Charges for services - - -
Donations - - -
Investment earnings 8,347 3,931 -
Miscellaneous - - -
Total revenues 1,872,430 1,665,303 -
EXPENDITURES
Current:
General government 65,746 - -
Fire and rescue - - -
Leisure services 413,915 - 14
Municipal court - - -
Police - 912,379 -
Debt service:
Principal 410,000 - -
Interest and other charges 193,824 - -
Capital outlay 307,942 283,505 -
Total expenditures 1,391,427 1,195,884 14
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 481,003 469,419 14)(
OTHER FINANCING SOURCES (USES)
Sale of capital assets - 42,839 -
Transfers in - - -
Transfers out - 510,242)( -
Total other financing sources and uses - 467,403)( -
NET CHANGE IN FUND BALANCES 481,003 2,016 14)(
FUND BALANCES, BEGINNING 2,975,894 1,481,643 20,251
FUND BALANCES, ENDING 3,456,897$ 1,483,659$ 20,237$
Special Revenue Funds
AND CHANGES IN FUND BALANCES
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
FOR THE YEAR ENDED SEPTEMBER 30, 2016
92
Special
Donations
Court
Technology Court Security TDPA Grant Public Art
Juvenile Case
Manager
-$ -$ -$ -$ -$ -$
- 23,834 17,845 - - 58,160
4,000 - - - - -
- 61,664 10,831 - - -
61,731 - - - - -
- - - - - -
- - - - - -
65,731 85,498 28,676 - - 58,160
- - - - - -
18,941 - - - - -
20,313 - - - - -
- 25,385 33,408 - - 53,300
807 - - - - -
- - - - - -
- - - - - -
30,000 - - - - -
70,061 25,385 33,408 - - 53,300
4,330)( 60,113 4,732)( - - 4,860
- - - - - -
- - - - - -
- - - - - -
- - - - - -
4,330)( 60,113 4,732)( - - 4,860
72,303 61,707 72,960 8,133 7,904 20,234
67,973$ 121,820$ 68,228$ 8,133$ 7,904$ 25,094$
Special Revenue Funds
93
Colleyville
Tomorrow
Parks
Tomorrow
Park Land
Dedication
REVENUES
Taxes -$ -$ -$
Fees and fines - - -
Intergovernmental - - -
Charges for services - - -
Donations - - 7,208
Investment earnings 10,155 5,306 16,910
Miscellaneous - - -
Total revenues 10,155 5,306 24,118
EXPENDITURES
Current:
General government - 18,580 -
Fire and rescue - - -
Leisure services - 20,586 250,587
Municipal court - - -
Police - - -
Debt service:
Principal - - -
Interest and other charges - - -
Capital outlay 81,213 127,747 315,480
Total expenditures 81,213 166,913 566,067
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 71,058)( 161,607)( 541,949)(
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - -
Transfers in 63,318 - -
Transfers out - - -
Total other financing sources and uses 63,318 - -
NET CHANGE IN FUND BALANCES 7,740)( 161,607)( 541,949)(
FUND BALANCES, BEGINNING 2,283,537 1,197,656 2,317,842
FUND BALANCES, ENDING 2,275,797$ 1,036,049$ 1,775,893$
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
FOR THE YEAR ENDED SEPTEMBER 30, 2016
Capital Project Funds
94
CEDC Capital
Project
Capital and
Cable
Equipment
Replacement Kimzey Park
Total
Governmental
Funds
-$ -$ -$ 3,525,455$
- - - 99,839
- - - 10,201
- - - 72,495
- - - 421,497
- 4,202 - 58,088
- 10,344 - 25,527
- 14,546 - 4,213,102
- - - 110,019
- - - 18,941
- - - 987,118
- - - 112,093
- 14,217 - 932,685
- - - 410,000
- - - 193,824
- 83,496 3,576 1,327,912
- 97,713 3,576 4,092,592
- 83,167)( 3,576)( 120,510
- - - 42,839
- 262,000 - 325,318
- - - 510,242)(
- 262,000 - 142,085)(
- 178,833 3,576)( 21,575)(
65,794 797,959 3,576 12,822,912
65,794$ 976,792$ -$ 12,801,337$
Capital Project Funds
95
Variance with
Budget -
Positive
Budget Actual (Negative)
REVENUES
Taxes 681,434$ 763,439$ 82,005$
Investment earnings 2,251 3,853 1,602
Total revenues 683,685 767,292 83,607
EXPENDITURES
Debt service:
Principal retirement 1,182,094 1,057,094 125,000
Interest and fiscal charges 369,886 369,836 50
Total expenditures 1,551,980 1,426,930 125,050
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 868,295)( 659,638)( 208,657
OTHER FINANCING SOURCES
Refunding bonds issued 6,225,000 6,225,000 -
Payment to bond escrow agent 6,373,776)( 6,373,776)( -
Premium on bond issuance 239,163 239,163 -
Transfers in 500,242 500,242 -
Total other financing sources 590,629 590,629 -
NET CHANGE IN FUND BALANCE 277,666)( 69,009)( 208,657
FUND BALANCE, BEGINNING 829,510 829,510 -
FUND BALANCE, ENDING 551,844$ 760,501$ 208,657$
FOR THE YEAR ENDED SEPTEMBER 30, 2016
CITY OF COLLEYVILLE, TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
96
97
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.
98
THIS PAGE INTENTIONALLY LEFT BLANK
Employee
Activity Sesquicentennial
Fund Fund Total
ASSETS
Cash and cash equivalents 5,773$ 19,716$ 25,489$
Total assets 5,773$ 19,716$ 25,489$
LIABILITIES
Due to other agencies and individuals 5,773$ 19,716$ 25,489$
Total liabilities 5,773$ 19,716$ 25,489$
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
SEPTEMBER 30, 2016
99
Balance Balance
10/01/15 Additions Deletions 09/30/16
Cash and cash equivalents 6,330$ 3,651$ 4,208$ 5,773$
Total assets 6,330$ 3,651$ 4,208$ 5,773$
Due to other agencies and individuals 6,330$ 3,651$ 4,208$ 5,773$
Total liabilities 6,330$ 3,651$ 4,208$ 5,773$
Balance Balance
10/01/15 Additions Deletions 09/30/16
Cash and cash equivalents 18,988$ 728$ -$ 19,716$
Total assets 18,988$ 728$ -$ 19,716$
Due to other agencies and individuals 18,988$ 728$ -$ 19,716$
Total liabilities 18,988$ 728$ -$ 19,716$
Balance Balance
10/01/15 Additions Deletions 09/30/16
Cash and cash equivalents 25,318$ 4,379$ 4,208$ 25,489$
Total assets 25,318$ 4,379$ 4,208$ 25,489$
Due to other agencies and individuals 25,318$ 4,379$ 4,208$ 25,489$
Total liabilities 25,318$ 4,379$ 4,208$ 25,489$
Employee Activity Fund
Sesquicentennial Fund
Total Agency Funds
CITY OF COLLEYVILLE, TEXAS
COMBINING STATEMENT OF CHANGES IN
AGENCY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2016
ASSETS AND LIABILITIES
100
101
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 103
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 113
These schedules contain information to help the reader assess the
government’s most significant local revenue source, the property
tax.
Debt Capacity 118
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 125
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 127
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.
2007 2008 2009
Governmental activities:
Net investment in capital assets 71,824,719$ 77,484,725$ 79,243,497$
Restricted for:
Debt service 1,032,586 889,689 1,040,896
Court security and technology - - -
Grant programs - - -
Leisure services - - -
Economic development - - -
Streets and drainage - - -
Police - - -
Unrestricted 21,987,778 21,862,136 27,498,864
Total governmental activities net position 94,845,083$ 100,236,550$ 107,783,257$
Business-type activities:
Net investment in capital assets 32,804,703$ 39,442,148$ 39,174,562$
Restricted for:
Debt service 1,080,751 1,024,349 987,181
Unrestricted 13,626,274 7,837,790 8,127,736
Total business-type activities net position 47,511,728$ 48,304,287$ 48,289,479$
Primary government:
Net investment in capital assets 104,629,422$ 116,926,873$ 118,418,059$
Restricted for:
Debt service 2,113,337 1,914,038 2,028,077
Court security and technology - - -
Grant programs - - -
Leisure services - - -
Economic development - - -
Streets and drainage - - -
Police - - -
Unrestricted 35,614,052 29,699,926 35,626,600
Total primary government net position 142,356,811$ 148,540,837$ 156,072,736$
Note: The City implemented GASB 54 in fiscal year 2011 to provide clearer fund balance classifications.
Prior years were not restated.
Fiscal Year
CITY OF COLLEYVILLE, TEXAS
NET POSITION BY COMPONENT
(Accrual Basis of Accounting)
102
TABLE 1
2010 2011 2012 2013 2014 2015 2016
81,970,674$ 83,166,142$ 83,211,988$ 84,414,252$ 89,754,051$ 98,958,693$ 97,982,160$
1,057,699 1,106,893 1,159,092 857,143 831,073 744,295 692,093
- 153,420 91,637 101,411 109,766 154,901 215,142
- 23,208 21,116 16,489 9,190 9,844 10,751
- 201,184 207,736 207,770 224,064 233,472 233,290
- 1,863,900 1,998,845 2,277,373 2,733,995 2,975,894 3,456,897
- 6,428,106 8,192,568 8,432,946 12,188,836 13,838,090 15,970,063
- 994,913 1,143,454 1,223,271 1,403,502 1,485,735 1,485,771
25,936,703 17,837,593 19,559,719 18,680,620 17,930,939 20,681,413 20,797,199
108,965,076$ 111,775,359$ 115,586,155$ 116,211,275$ 125,185,416$ 139,082,337$ 140,843,366$
39,080,043$ 38,892,098$ 38,395,708$ 39,269,943$ 41,567,161$ 44,823,618$ 44,010,618$
983,225 662,050 - - - -
7,747,336 10,111,776 12,332,238 13,702,724 14,827,594 15,260,882 17,263,830
47,810,604$ 49,665,924$ 50,727,946$ 52,972,667$ 56,394,755$ 60,084,500$ 61,274,448$
121,050,717$ 122,058,240$ 121,607,696$ 123,684,195$ 131,321,212$ 143,782,311$ 141,992,778$
2,040,924 1,768,943 1,159,092 857,143 831,073 744,295 692,093
- 153,420 91,637 101,411 109,766 154,901 215,142
- 23,208 21,116 16,489 9,190 9,844 10,751
- 201,184 207,736 207,770 224,064 233,472 233,290
- 1,863,900 1,998,845 2,277,373 2,733,995 2,975,894 3,456,897
- 6,428,106 8,192,568 8,432,946 12,188,836 13,838,090 15,970,063
- 994,913 1,143,454 1,223,271 1,403,502 1,485,735 1,485,771
33,684,039 27,949,369 31,891,957 32,383,344 32,758,533 35,942,295 38,061,029
156,775,680$ 161,441,283$ 166,314,101$ 169,183,942$ 181,580,171$ 199,166,837$ 202,117,814$
Fiscal Year
103
2007 2008 2009
EXPENSES
Governmental activities:
General government 2,438,051$ 2,814,874$ 2,945,481$
Community Development and Engineering 1,523,768 1,481,124 1,530,901
Fire and rescue 3,790,831 3,958,111 4,113,793
Leisure services 3,525,094 4,033,105 3,941,259
Maintenance 434,984 417,265 455,752
Municipal court 262,198 324,020 291,724
Police 4,232,185 4,657,438 4,841,217
Streets and drainage 2,890,995 3,129,730 3,503,519
Interest on long-term debt 1,032,374 1,101,714 1,051,180
Total governmental activities expenses 20,130,480 21,917,381 22,674,826
Business-type activities:
Water and wastewater 9,337,282 11,179,548 10,612,372
Drainage 671,773 593,600 658,016
Interest on long-term debt 400,752 362,642 331,361
Total business-type activities expenses 10,409,807 12,135,790 11,601,749
Total primary government program expenses 30,540,287$ 34,053,171$ 34,276,575$
PROGRAM REVENUES
Governmental activities:
Charges for services:
General government 6,000$ 16,000$ 15,000$
Community Development and Engineering 1,454,744 1,332,453 666,914
Fire and rescue 303,868 250,814 271,216
Leisure services 424,024 563,738 6,595,487
Municipal court 932,452 1,171,919 1,002,008
Police 81,054 79,699 51,631
Streets and drainage 355,157 358,688 215,619
Operating grants and contributions 431,683 1,856,567 713,189
Capital grants and contributions 5,372,281 3,973,954 360,023
Total governmental activities program revenues 9,361,263 9,603,832 9,891,087
CITY OF COLLEYVILLE, TEXAS
CHANGES IN NET POSITION
(Accrual Basis of Accounting)
Fiscal Year
104
2010 2011 2012 2013 2014 2015 2016
2,691,905$ 2,715,154$ 3,125,214$ 4,075,001$ 4,103,928$ 4,676,185$ 4,449,317$
1,645,221 1,402,669 1,397,839 1,429,755 1,613,311 1,582,461 1,558,750
4,419,945 4,421,496 4,321,929 4,529,225 4,625,036 5,264,026 4,783,421
4,118,769 4,191,960 4,124,619 4,106,822 3,776,068 4,042,252 4,701,443
423,783 412,513 400,306 494,545 575,696 684,301 689,861
302,756 303,839 319,445 586,709 501,604 522,422 448,420
4,836,274 4,878,055 4,579,570 4,961,444 5,019,343 5,681,698 5,734,116
3,885,182 3,657,591 3,073,530 5,322,510 4,128,365 4,404,701 5,150,390
1,000,061 849,390 780,029 724,458 717,045 536,161 614,159
23,323,896 22,832,667 22,122,481 26,230,469 25,060,396 27,394,207 28,129,877
11,242,553 12,009,187 12,258,587 12,544,530 13,238,893 14,055,232 13,995,038
572,234 742,160 723,994 707,647 571,886 833,599 563,268
296,288 - - - - - -
12,111,075 12,751,347 12,982,581 13,252,177 13,810,779 14,888,831 14,558,306
35,434,971$ 35,584,014$ 35,105,062$ 39,482,646$ 38,871,175$ 42,283,038$ 42,688,183$
15,000$ 97,234$ 28,408$ 15,000$ 15,000$ 17,500$ 15,075$
647,298 868,363 1,146,518 927,690 1,387,329 1,587,038 1,356,581
235,225 305,882 335,308 308,339 377,021 327,264 387,705
468,426 1,213,167 520,433 501,260 510,991 503,098 505,203
1,213,178 970,143 1,015,804 1,271,095 1,268,447 1,474,485 1,306,924
94,059 70,709 81,056 70,513 71,022 75,415 93,566
345,780 296,350 338,845 316,338 347,565 802,551 794,169
543,516 822,056 490,069 468,361 486,869 450,559 514,845
423,873 405,347 381,308 1,158,050 5,943,465 7,712,266 319,541
3,986,355 5,049,251 4,337,749 5,036,646 10,407,709 12,950,176 5,293,609
TABLE 2
Fiscal Year
105
2007 2008 2009
PROGRAM REVENUES
Business-type activities:
Charges for services:
Water and wastewater 9,127,470$ 11,114,892$ 11,303,868$
Drainage 841,972 859,013 874,637
Capital grants and contributions 1,561,255 1,415,785 63,293
Total business-type activities program revenues 11,530,697 13,389,690 12,241,798
Total primary government program revenues 20,891,960$ 22,993,522$ 22,132,885$
NET (EXPENSE) REVENUES
Governmental activities 10,769,217)$( 12,313,549)$( 12,783,739)$(
Business-type activities 1,120,890 1,253,900 640,049
Total primary government net expense 9,648,327)( 11,059,649)( 12,143,690)(
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental activities:
Taxes
Property 10,153,775 11,367,967 12,121,420
Franchise 1,779,376 1,818,060 2,017,440
Sales 4,674,068 4,740,964 4,718,976
Other 89,132 82,532 74,198
Investment earnings 1,224,361 804,864 471,524
Miscellaneous 97,963 96,348 77,854
Gain on sale of capital assets - 116,112 25,237
Transfers 664,085 841,936 823,797
Total governmental activities 18,682,760 19,868,783 20,330,446
Business-type activities:
Investment earnings 998,710 380,595 168,940
Gain on sale of capital assets - - -
Transfers 664,085)( 841,936)( 823,797)(
Total business-type activities 334,625 461,341)( 654,857)(
Total primary government 19,017,385 19,407,442 19,675,589
CHANGE IN NET POSITION
Governmental activities 7,913,543 7,555,234 7,546,707
Business-type activities 1,455,515 792,559 14,808)(
Total primary government 9,369,058$ 8,347,793$ 7,531,899$
Note: See Table 9 for information about Water and Wastewater Charges for services
CITY OF COLLEYVILLE, TEXAS
CHANGES IN NET POSITION
Fiscal Year
(Accrual Basis of Accounting)
106
(continued)
2010 2011 2012 2013 2014 2015 2016
11,414,425$ 14,355,418$ 14,034,600$ 14,661,491$ 14,789,614$ 15,800,163$ 15,499,159$
897,361 903,089 918,323 928,863 939,868 948,565 954,642
147,014 168,365 169,464 876,660 2,707,835 2,362,261 43,104
12,458,800 15,426,872 15,122,387 16,467,014 18,437,317 19,110,989 16,496,905
16,445,155$ 20,476,123$ 19,460,136$ 21,503,660$ 28,845,026$ 32,061,165$ 21,790,514$
19,337,541)$( 17,783,416)$( 17,784,732)$( 21,193,823)$( 14,652,687)$( 14,444,031)$( 22,836,268)$(
347,725 2,675,525 2,139,806 3,214,837 4,626,538 4,222,158 1,938,599
18,989,816)( 15,107,891)( 15,644,926)( 17,978,986)( 10,026,149)( 10,221,873)( 20,897,669)(
12,557,716 12,414,948 12,414,457 12,497,692 12,950,832 13,493,621 13,790,347
1,867,065 2,031,268 2,207,463 2,074,731 2,172,801 2,319,723 2,206,890
4,936,484 5,056,597 5,495,730 5,902,557 6,472,195 6,705,914 7,252,963
75,365 80,731 65,808 68,592 98,160 107,977 106,607
76,968 95,822 108,192 77,269 39,697 100,843 142,343
82,833 55,454 74,041 85,562 61,643 82,873 150,630
65,306 - 147,969 - 810,020 - 51,849
857,622 858,879 1,081,868 1,112,540 1,180,292 1,178,590 895,668
20,519,359 20,593,699 21,595,528 21,818,943 23,785,640 23,989,541 24,597,297
15,158 38,674 4,084 38,987 23,655 52,480 76,014
15,864 - - 103,437 40,814 5,062 71,003
857,622)( 858,879)( 1,081,868)( 1,112,540)( 1,180,292)( 1,178,590)( 895,668)(
826,600)( 820,205)( 1,077,784)( 970,116)( 1,115,823)( 1,121,048)( 748,651)(
19,692,759 19,773,494 20,517,744 20,848,827 22,669,817 22,868,493 23,848,646
1,181,818 2,810,283 3,810,796 625,120 9,132,953 9,545,510 1,761,029
478,875)( 1,855,320 1,062,022 2,244,721 3,510,715 3,101,110 1,189,948
702,943$ 4,665,603$ 4,872,818$ 2,869,841$ 12,643,668$ 12,646,620$ 2,950,977$
Fiscal Year
TABLE 2
107
108
THIS PAGE INTENTIONALLY LEFT BLANK
TABLE 3
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General fund
Non-spendable -$ -$ -$ -$ 2,147$ 132,664$ 1,759$ 1,269$ 2,119$ 9,388$
Restricted - - - - - - - - - -
Committed - - - - 706,942 813,536 813,536 813,536 813,536 796,438
Assigned - - - - - - - - - -
Unassigned 8,495,329 8,717,398 8,207,420 8,813,597 10,223,232 11,762,625 11,006,716 10,080,617 8,736,746 8,719,620
Total general fund 8,495,329$ 8,717,398$ 8,207,420$ 8,813,597$ 10,932,321$ 12,708,825$ 11,822,011$ 10,895,422$ 9,552,401$ 9,525,446$
All other governmental funds
Non-spendable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted 1,254,686 987,681 1,121,567 1,154,570 10,853,638 12,894,768 13,190,883 17,571,843 19,527,446 22,132,415
Committed - - - - 5,967,620 6,193,060 6,262,082 6,793,236 7,150,127 6,402,557
Assigned - - - - 1,148,548 954,818 910,611 765,908 812,939 996,929
Unassigned - - - - 4,975)( - - -
Unassigned, reported in:
Special revenue funds 4,814,412 5,696,905 7,267,350 5,664,493 - - - - - -
Capital projects funds 9,055,431 7,811,492 12,369,631 11,524,206 - - - - - -
Total all other
governmental funds 15,124,529$ 14,496,078$ 20,758,548$ 18,343,269$ 17,969,806$ 20,042,646$ 20,358,601$ 25,130,987$ 27,490,512$ 29,531,901$
Note: This schedule does not restate prior years for Special Revenue and Capital Projects Funds.
The City implemented GASB 54 in fiscal year 2011 to provide clearer fund balance classifications. Prior years were not restated.
(Modified Accrual Basis of Accounting)
Fiscal Year
CITY OF COLLEYVILLE, TEXAS
FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
109
TABLE 4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
REVENUES
Taxes 16,701,290$ 17,975,445$ 18,889,480$ 19,353,358$ 19,627,734$ 20,235,012$ 20,541,466$ 21,747,244$ 22,620,506$ 23,367,715$
Developer contributions 683,425 226,488 - - - - - - - -
Licenses, fees and permits 1,244,218 1,113,595 646,302 607,132 923,590 1,130,426 857,135 1,090,012 1,303,710 1,337,928
Capital improvement fees 389,657 358,688 208,622 334,075 281,260 322,498 300,900 333,496 785,992 766,398
Fines and penalties 965,416 1,203,260 1,028,425 1,244,146 998,221 1,051,899 1,000,954 1,043,821 1,217,654 1,023,202
Charges for services 1,190,327 1,322,732 7,129,322 917,884 1,694,993 1,030,439 1,321,927 1,577,564 1,571,510 1,398,579
Interest 1,224,361 804,864 471,524 76,968 95,823 110,550 77,269 39,697 100,842 142,330
Intergovernmental 4,361 1,437,935 350,468 100,807 541,709 124,056 76,506 556,954 1,377,763 224,367
Donations 735,756 548,093 401,432 379,853 602,401 406,789 487,066 918,613 981,282 421,497
Miscellaneous 107,700 116,280 155,100 97,833 70,453 89,041 100,562 76,643 97,873 165,642
Total revenues 23,246,511 25,107,380 29,280,675 23,112,056 24,836,184 24,500,710 24,763,785 27,384,044 30,057,132 28,847,658
-
EXPENDITURES
General government 2,247,359 2,537,699 2,639,218 2,423,869 2,383,276 2,753,457 3,171,582 3,746,619 4,126,132 4,036,395
Comm Development/Eng 1,467,216 1,462,566 1,531,785 1,642,047 1,397,256 1,396,259 1,429,574 1,606,589 1,524,342 1,623,972
Fire 3,517,817 3,755,575 3,840,118 3,955,407 3,972,053 3,888,225 4,062,535 4,174,745 4,618,103 4,568,639
Police 3,961,975 4,395,056 4,588,576 4,552,947 4,596,862 4,304,710 4,670,639 4,707,315 5,143,662 5,393,431
Leisure services 2,913,798 3,171,514 3,058,332 3,173,352 3,177,878 3,049,908 3,035,583 2,702,313 2,996,371 3,588,611
Streets and drainage 1,485,756 1,649,037 1,917,536 2,297,719 2,052,298 1,388,970 3,597,965 2,055,631 2,407,780 3,148,848
Municipal court 252,961 323,059 291,893 302,172 302,666 319,084 586,911 501,027 508,566 461,393
Maintenance 415,708 410,636 449,806 417,946 405,911 394,830 489,685 570,011 662,480 690,007
Capital outlay 6,337,656 5,150,286 2,759,774 4,935,053 2,510,027 2,515,115 2,668,074 3,250,508 6,268,273 2,373,025
Debt service:
Interest 1,094,001 2,584,790 1,033,148 944,751 838,320 757,594 697,140 716,228 524,414 563,660
Principal 2,005,204 1,189,798 2,275,553 2,180,061 2,259,004 2,007,585 2,246,921 1,342,586 1,459,693 1,467,094
Total expenditures 25,699,451 26,630,016 24,385,739 26,825,324 23,895,551 22,775,737 26,656,609 25,373,572 30,239,816 27,915,075
CITY OF COLLEYVILLE, TEXAS
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
110
TABLE 4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EXCESS OF REVENUES
OVER (UNDER)
EXPENDITURES 2,452,940)$( 1,522,636)$( 4,894,936$ 3,713,268)$( 940,633$ 1,724,973$ 1,892,824)$( 2,010,472$ 182,684)$( 932,583$
OTHER FINANCING
SOURCES (USES)
Bonds issued 9,890,000 - - - 2,945,000 - -
Refunding bonds -- - - - - - 7,330,000 - 6,225,000
Notes payable -- - - - - -
Capital lease -176,150 - 981,238 - 894,534 209,425 -
Sale of capital assets 8,800 98,168 33,759 65,306 7,098 147,969 - 925,033 20,598 95,796
Premium on bond issue 6,561 - - 239,163
Payments to escrow 4,921,334)( - - - 3,012,910)( - - 7,600,000)( - 6,373,776)(
Transfers in 1,637,154 2,082,101 2,338,776 1,884,896 2,458,396 3,893,584 4,189,380 7,355,334 6,497,252 5,665,493
Transfers out 973,069)( 1,240,165)( 1,514,979)( 1,027,274)( 1,599,517)( 2,811,716)( 3,076,840)( 6,175,042)( 5,318,662)( 4,769,825)(
Total other financing
sources (uses)5,641,551 1,116,254 857,556 1,904,166 804,628 2,124,371 1,321,965 1,835,325 1,199,188 1,081,851
NET CHANGE IN
FUND BALANCES 3,188,611$ 406,382)$( 5,752,492$ 1,809,102)$( 1,745,261$ 3,849,344$ 570,859)$( 3,845,797$ 1,016,504$ 2,014,434$
DEBT SERVICE AS
A PERCENTAGE
OF NONCAPITAL
EXPENDITURES 16.0% 17.6% 15.3% 14.3% 14.5% 13.6% 12.3% 9.3% 8.3% 8.0%
Note: Capital Outlay does not include contributed capital assets received from developers.
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
CITY OF COLLEYVILLE, TEXAS
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
111
TABLE 5
Estimated
Less:Total Taxable Total Actual
Fiscal Residential Personal Tax-exempt Assessed Direct Taxable
Year Property Property Property Value Tax Rate Value
2007 3,229,353,459$ 86,080,918$ 228,115,791$ 3,087,318,586$ 0.3474 3,087,318,586$
2008 3,531,988,996 97,998,283 228,915,486 3,401,071,793 0.3559 3,401,071,793
2009 3,748,968,313 99,556,111 230,676,995 3,617,847,429 0.3559 3,617,847,429
2010 3,907,288,105 95,261,420 237,293,931 3,765,255,594 0.3559 3,765,255,594
2011 3,917,415,346 92,176,541 253,414,335 3,756,177,552 0.3559 3,756,177,552
2012 3,941,020,477 89,758,416 277,077,387 3,753,701,506 0.3559 3,753,701,506
2013 3,997,250,723 91,264,033 296,807,896 3,791,706,860 0.3559 3,791,706,860
2014 4,129,613,419 93,604,217 307,729,550 3,915,488,086 0.3559 3,915,488,086
2015 4,314,297,434 102,095,151 313,245,782 4,103,146,803 0.3559 4,103,146,803
2016 4,332,288,268 106,282,459 301,657,610 4,136,913,117 0.3559 4,136,913,117
Source:Tarrant Appraisal District
Note:
CITY OF COLLEYVILLE, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
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.
112
TABLE 6
General Grapevine-Hurst-Euless
Operations and Obligation Total Birdville Carroll Colleyville Bedford Keller Tarrant County Tarrant County
Fiscal Maintenance Debt Direct Independent Independent Independent Independent Independent Tarrant College Hospital
Year Rate Service Rate School District School District School District School District School District County District District
2007 0.27873 0.06867 0.34740 1.5650 1.7950 1.57430 1.5976 1.6080 0.27150 0.139380 0.235397
2008 0.28299 0.07291 0.35590 1.4050 1.4650 1.29000 1.3037 1.3574 0.26650 0.139380 0.230397
2009 0.28860 0.06731 0.35590 1.4100 1.4150 1.29000 1.2955 1.4169 0.26400 0.137960 0.227897
2010 0.29864 0.05726 0.35590 1.4050 1.4150 1.29000 1.2955 1.4863 0.26400 0.137670 0.227897
2011 0.29758 0.05832 0.35590 1.4250 1.4150 1.29000 1.2882 1.5306 0.26400 0.137600 0.227900
2012 0.30881 0.04709 0.35590 1.4350 1.4150 1.32010 1.4140 1.5400 0.26400 0.148970 0.227897
2013 0.31385 0.04205 0.35590 1.4350 1.4000 1.32010 1.4075 1.5400 0.26400 0.148970 0.227897
2014 0.32442 0.03148 0.35590 1.4350 1.4000 1.32010 1.3875 1.5400 0.26400 0.149500 0.227897
2015 0.33461 0.02129 0.35590 1.4350 1.4000 1.32010 1.3750 1.5400 0.26400 0.149500 0.227897
2016 0.33624 0.01966 0.35590 1.4539 1.3950 1.32010 1.3500 1.5400 0.26400 0.149500 0.227897
Source:Tarrant Appraisal District
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.
CITY OF COLLEYVILLE, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
City Direct Rates Overlapping Rates
113
TABLE 7
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Velocis Colleyville LP 28,834,127$ 0.70% -$ -%
Toll Dallas TX LLC 25,472,505 0.62% - -%
Oncor Electric Delivery 15,253,623 0.37% - -%
Lifetime Fitness Real Estate 14,150,256 0.34% 13,914,232 0.45%
Colleyville Lofts Venture LLC 9,502,079 0.23% - -%
USMC Colleyville LLC 8,510,000 0.21% - -%
Wal-Mart Real Estate Business Trust 7,388,287 0.18% - -%
Standard Pacific of Texas Inc 6,045,302 0.15% - -%
G Points SC LTD 5,750,000 0.14% 5,609,430 0.18%
Duke Realty BEMC Colleyville 5,229,575 0.13% - -%
TXU Electric Delivery - -% 17,816,746 0.58%
Albertsons Inc - -% 14,416,298 0.47%
Melvin & Martindale Ltd - -% 11,785,732 0.38%
Colleyville Plaza LP - -% 6,424,393 0.21%
Uhlmann-Colleyville LLC - -% 5,771,840 0.19%
Market Street - -% 5,418,279 0.18%
Village Management - -% 5,390,100 0.17%
Realty Capital Colleyville Square 4,794,059 0.16%
Total 126,135,754$ 3.05% 91,341,109$ 2.96%
Source: Tarrant Appraisal District
2016 2007
CITY OF COLLEYVILLE, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
114
TABLE 8
Taxes Levied Collections
Fiscal for the Percentage in Subsequent Percentage
Year Ended Fiscal Year Amount of Levy Years Amount of Levy
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% 64,244 13,272,146 99.85%
2014 13,722,602 13,681,269 99.7% 34,475 13,715,743 99.95%
2015 14,305,704 14,242,584 99.6% 41,847 14,284,431 99.85%
2016 14,675,127 14,612,632 99.6% - 14,612,632 99.57%
Sources: Tarrant County Appraisal District and City of Colleyville Finance Department.
Fiscal Year of the Levy
Collected With the
Total Collections to Date
CITY OF COLLEYVILLE, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
115
TABLE 9
Percentage Percentage
of Total City of Total City
Water Water Water Water
Taxpayer Usage Usage Usage Usage
Grapevine-Colleyville ISD 31,294,000 1.42% 31,758,500 1.70%
Lifetime Fitness 15,804,800 0.72% 7,057,900 0.38%
Town Center (Velocis Colleyville)14,982,700 0.68% - -%
US Memory Care 5,839,700 0.27% - -%
Bluebonnet Hills 4,989,400 0.23% 9,097,700 0.49%
KRG Colleyville LLC 4,629,900 0.21% - -%
Shadowood Trail 4,488,800 0.20% 3,062,100 0.16%
Market Street 3,946,700 0.18% 8,127,100 0.43%
Woodland Hills 3,752,100 0.17% - -%
Whittier Heights 3,663,000 0.17% - -%
Mady Development 3,632,900 0.17% - -%
Wash Depot 3,609,100 0.16% 3,222,400 0.17%
Westmont 3,840,200 0.17% - -%
Timarron Owners Assoc 3,286,700 0.15% - -%
Highland Meadows HOA 3,205,600 0.15% - -%
Keller ISD 3,051,400 0.14% - -%
La Hacienda Ranch 3,000,200 0.14% 4,021,000 0.21%
Rio Mambo Tex Mex 2,915,300 0.13% - -%
Villas at Oak Point 2,638,500 0.12% - -%
Total 122,571,000 5.58% 66,346,700 3.54%
Source: City utility billing records
2016 2007
CITY OF COLLEYVILLE, TEXAS
PRINCIPAL WATER CUSTOMERS
CURRENT YEAR AND NINE YEARS AGO
116
TABLE 10
General Sales Tax Water and Sewer Drainage Total Percentage
Fiscal Obligation Revenue Capital Revenue Revenue Capital Primary of Personal Per
Year Bonds Bonds Leases Premium Bonds Bonds Leases Premium Government Income Capita
2007 17,770,000$ 10,340,000$ 349,189$ -$ 6,540,000$ 2,205,000$ 13,793$ -$ 37,217,982$ 2.89% 1,680$
2008 16,275,000 9,765,000 430,549 - 5,840,000 2,040,000 - - 34,350,549 2.64% 1,527
2009 14,665,000 9,170,000 359,996 - 5,200,000 1,870,000 - - 31,264,996 2.51% 1,386
2010 13,300,000 8,545,000 1,151,173 - 4,520,000 1,695,000 - - 29,211,173 2.31% 1,281
2011 11,510,000 8,245,000 972,170 5,905 3,600,000 1,550,000 - 99,756 25,982,831 1.73% 1,137
2012 9,975,000 7,930,000 1,709,120 5,249 2,850,000 1,345,000 - 89,780 23,904,149 1.57% 1,042
2013 8,675,000 7,600,000 1,301,624 4,593 2,085,000 1,135,000 - 79,805 20,881,022 1.38% 904
2014 7,660,000 7,330,000 974,038 - 1,310,000 915,000 - 69,830 18,258,868 1.16% 769
2015 6,920,000 6,935,000 649,345 - 850,000 690,000 - 59,854 16,104,199 1.02% 676
2016 8,550,000 6,525,000 778,323 - 505,000 585,000 - 49,878 16,993,201 1.06% 701
Notes:Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See Table 14 for personal income and population data.
CITY OF COLLEYVILLE, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business-type Activities
117
TABLE 11
Percentage of
General Less Amounts Actual Taxable
Fiscal Obligation Restricted to Value of Per
Year Bonds Repaying Principal Total Property Capita
2007 17,770,000$ 1,032,586$ 16,737,414$ 0.54% 756$
2008 16,275,000 889,689 15,385,311 0.45% 684
2009 14,665,000 1,040,896 13,624,104 0.38% 604
2010 13,300,000 1,057,699 12,242,301 0.33% 537
2011 11,510,000 1,106,893 10,403,107 0.28% 455
2012 9,933,921 1,159,092 8,774,829 0.23% 382
2013 8,639,056 857,143 7,781,913 0.21% 337
2014 7,660,000 831,073 6,828,927 0.17% 288
2015 6,920,000 744,295 6,175,705 0.15% 259
2016 8,550,000 692,093 7,857,907 0.19% 324
Notes:
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 14.
General Bonded Debt Outstanding
CITY OF COLLEYVILLE, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
118
TABLE 12
Estimated
Share of
Estimated Direct and
Debt Percentage Overlapping
Outstanding Applicable Debt
Debt repaid with property taxes
Birdville Independent School District 279,353,750$ 0.080% 223,483$
Carroll Independent School District 203,421,047 0.480% 976,421
Grapevine-Colleyville Independent School District 470,887,687 21.320% 100,393,255
Hurst-Euless-Bedford Independent School District 261,627,579 1.630% 4,264,530
Keller Independent School District 728,705,387 3.330% 24,265,889
Tarrant County 344,185,000 2.960% 10,187,876
Tarrant County Hospital District 22,335,000 2.960% 661,116
Subtotal overlapping debt 140,972,570
City direct debt 15,676,414 100.000% 15,676,414
Total direct and overlapping debt 156,648,984$
Sources:
Government Unit
Assessed value data used to estimate applicable percentages provided by the Tarrant County Appraisal District
and debt outstanding data provided by each governmental unit.
CITY OF COLLEYVILLE, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2016
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TABLE 13
Assessed value 4,136,913,117$
Debt limit (2.5% of assessed value)103,422,828
Debt applicable to limit:
General obligation bonds 8,550,000
Less: Amount set aside for
repayment of general
obligation debt 692,093)(
Total net debt applicable to limit 7,857,907
Legal debt margin 95,564,921$
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Debt limit 77,182,965$ 85,026,795$ 87,755,997$ 94,131,390$ 93,904,439$ 93,842,538$ 94,792,672$ 97,887,202$ 102,578,670$ 103,422,828$
Total net debt applicable to limit 15,967,232 15,385,131 13,624,104 12,242,301 10,403,107 8,815,908 7,817,857 6,828,927 6,175,705 7,857,907
Legal debt margin 61,215,733$ 69,641,664$ 74,131,893$ 81,889,089$ 83,501,332$ 85,026,630$ 86,974,815$ 91,129,692$ 96,402,965$ 95,564,921$
Total net debt applicable to the limit
as a percentage of debt limit.20.69% 18.09% 15.52% 13.01% 11.08% 9.39% 8.25% 6.98% 6.02% 7.60%
Note:
Under state finance law, the City's outstanding general obligation debt should not exceed 2.50 percent of total assessed property value.
Fiscal Year
CITY OF COLLEYVILLE, TEXAS
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Legal Debt Margin Calculation for Fiscal Year 2016
121
Utility Less:Net
Fiscal Service Operating Available
Year Charges Expenses Revenue Principal Interest Coverage
2007 10,046,030$ 8,040,621$ 2,005,409$ 825,000$ 296,546$ 883,863$
2008 11,452,268 9,670,881 1,781,387 700,000 265,658 815,729
2009 11,458,282 8,943,803 2,514,479 640,000 241,223 1,633,256
2010 11,427,074 9,458,355 1,968,719 680,000 213,358 1,075,361
2011 14,391,910 10,120,678 4,271,232 920,000 57,819 3,293,413
2012 13,986,067 10,395,517 3,590,550 750,000 77,947 2,762,603
2013 14,802,351 10,707,017 4,095,334 765,000 58,430 3,271,904
2014 14,852,535 11,331,749 3,520,786 775,000 44,137 2,701,649
2015 15,856,242 12,043,267 3,746,365 460,000 30,100 3,256,265
2016 15,638,670 11,965,525 3,533,634 345,000 20,325 3,168,309
Debt Service
Water Revenue Bonds
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
CITY OF COLLEYVILLE, TEXAS
122
TABLE 14
Drainage Drainage Net
Service Operations Available Sales Tax
Charges Expenses Revenue Principal Interest Coverage Increment Principal Interest Coverage
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
915,734 484,712 431,022 175,000 82,930 173,092 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
908,387 531,705 376,682 205,000 51,244 120,438 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
959,833 700,939 258,894 225,000 27,847 6,047 1,725,809 395,000 205,416 1,125,393
966,687 414,619 552,068 105,000 22,121 424,947 1,864,084 410,000 193,824 1,260,260
Debt Service Debt Service
Sales Tax BondsDrainage Revenue Bonds
123
TABLE 15
Tarrant
Per Capita County
Calendar Personal Personal Unemployment
Year Population Income Income Rate
2007 22,150 175,008$ 58,142$ 4.3%
2008 22,500 173,853 57,758 5.1%
2009 22,550 166,063 55,170 8.2%
2010 22,807 166,063 55,354 7.9%
2011 22,860 199,168 65,516 8.3%
2012 22,950 199,168 65,516 6.2%
2013 23,090 199,168 65,516 6.0%
2014 23,740 200,822 66,060 5.0%
2015 23,830 200,822 66,060 4.0%
2016 24,230 200,822 66,060 4.1%
Sources:
CITY OF COLLEYVILLE, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
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)
124
TABLE 16
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employees Employment
Grapevine Colleyville ISD 611 5.9% 475 8.2%
Market Street 345 3.3% 415 7.2%
Lifetime Fitness 250 2.4% 100 1.7%
City of Colleyville 205 2.0% 186 3.2%
Covenant Christian Academy 130 1.3% - -%
Whole Foods Market 125 1.2% - -%
Albertsons 118 1.1% 100 1.7%
LaHacienda Ranch 100 1.0% 100 1.7%
Walmart Neighborhood Market 72 0.7% - -%
US Memory Care 60 0.6% - -%
Mac's Steak and Seafood - -% 60 1.0%
RWA, Inc.- -% 60 1.0%
Crème de la Crème - -% 60 1.0%
Emler Swim School - -% 50 0.9%
Ebby Halliday Realtors - -% 50 0.9%
TGW Insurance - -% 50 0.9%
Total 2,016 19.5% 1,706 29.5%
Source: City Economic Development Division
CITY OF COLLEYVILLE, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2016 2007
125
Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General government
Management services 5 5 4 4 4 4 4 4 4 3.75
Finance/court 6 6 6 6 6 6 8 8 8 8
Planning 3 3 3 2 2 2 2 4 3 4
Building 5 6 6 5 4 3 3 3.5 5 5
Other 6 6.5 7.5 9.5 11 11 13 11.625 13.52 14.14
Police
Officers 35 37 38 38 38 39 40 41 42.5 43
Civilians 13 14 14 13 6 6 6 6.5 7 6.5
Fire
Firefighters and officers 33 33 33 33 33 35 36 38 41 41
Civilians 1 1 1 2 1 1 1 1 1 1
Other public works
Engineering 5 5 5 4 4.5 3 3 4.05 3.95 4.75
Other 3 3 3 3 3 3 3 3 3 3
Streets 10 10 10 10 10 10 7 8.35 8.35 8.35
Parks and recreation 13.5 13.5 13.5 16.5 16 16 16 15.75 15 15
Library 7.5 8 8 9.5 11.5 11.5 12 13 13.625 13
Colleyville center 4.5 4.5 4.5 4.5 4.5 4.5 3.5 4 4.5 4.5
Water/wastewater 29 29 29 28 24 24.5 23 24.675 25.025 24.225
Drainage 6 6 6 6 6 6 7 6 6 6.41
Total 185.5 190.5 191.5 194.0 184.5 185.5 187.5 196.5 204.5 205.6
Source:City Human Resources Office
Notes: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.
TABLE 17
Fulltime Equivalent Employees as of September 30,
CITY OF COLLEYVILLE TEXAS
FULLTIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
126
TABLE 18
Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General government
Building permits issued 140 131 90 77 104 155 103 108 181 182
Building inspections conducted 8,941 8,108 5,641 6,149 6,737 8,310 8,292 7,807 7,307 8,940
Police
Physical arrests 666 514 809 764 666 653 632 863 800 918
Calls for service 17,629 15,292 23,480 12,242 27,254 48,076 61,270 58,522 51,537 43,492
Traffic violations 12,438 15,621 12,550 13,822 11,354 11,980 11,766 19,955 21,450 20,790
Fire
Emergency responses 715 681 737 762 830 724 557 627 694 1,783
Ambulance calls 630 667 693 751 765 803 829 950 959 1,037
Inspections 503 666 796 784 397 342 306 317 363 400
Other public works
Street resurfacing (miles)4.5 8.5 13.9 8.0 6.2 1.0 4.0 1.7 3.7 10.9
Parks and recreation
Athletic field participants 4,960 5,159 4,617 4,296 4,378 3,946 4,287 4,315 4,434 4,302
Community center rentals 592 627 507 373 410 404 398 412 452 376
Library
Volumes in collection 46,311 50,348 54,659 58,147 62,997 65,740 69,736 74,525 77,664 80,452
Total volumes borrowed 197,712 211,674 238,459 244,458 235,238 244,613 250,737 234,667 228,160 222,128
Water
Customers 8,700 8,893 8,960 9,014 9,103 9,285 9,396 9,507 9,631 9,858
Average daily consumption
(thousands of gallons)5,123 6,619 6,578 5,990 7,928 7,217 6,785 6,539 6,451 5,889
Peak daily consumption
(thousands of gallons)13,068 16,764 16,674 18,207 18,935 18,707 17,052 15,204 19,866 15,724
Wastewater
Customers 7,966 8,138 8,315 8,389 8,457 8,603 8,731 8,817 8,905 9,071
Source: Various City departments
CITY OF COLLEYVILLE, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
127
Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 10 13 13 13 13 12 12 12 13 13
Fire
Stations 2 3 3 3 3 3 3 3 3 3
Public works
Streets (miles)311 312 312 318 282 282 282 283 283 283
Streetlights 1,011 1,010 1,168 1,188 1,169 1,169 1,175 1,175 1,227 1,269
Traffic signals 2 2 2 2 2 2 2 2 2 2
Parks and recreation
Acreage 224 224 224 224 224 224 224 224 224 225
Playgrounds 6 6 6 6 6 6 6 6 6 7
Baseball/softball diamonds 9 9 9 9 9 9 9 9 9 9
Soccer fields 14 14 14 14 14 14 14 14 14 14
Community centers 1 1 1 1 1 1 1 1 1 1
Water
Water mains (miles)191 192 199 200 195 201 202 204 205 206
Fire hydrants 1,254 1,271 1,340 1,345 1,362 1,389 1,389 1,403 1,422 1,507
Storage capacity 4,900 4,900 9,900 9,900 9,400 9,400 9,400 9,400 9,400 9,400
(thousands of gallons)
Wastewater
Sanitary sewers (miles)163 164 166 170 162 169 170 172 172 179
Storm sewers (miles)59 59 63 63 58 64 58 60 67 69
Source: Various City departments
Note: No capital asset indicators are available for the general government or library function.
Fiscal Year
TABLE 19
CITY OF COLLEYVILLE, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
128
TABLE 20
(a)(b)(c)(d)(e)
Unfunded UAAL as a
Actuarial Actuarial Funded ALL Annual percentage of
Actuarial value accrued ratio (%)(UAAL)covered covered payroll (%)
valuation date Fiscal Year of assets liability (AAL)(a)/(b)(b)-(a)payroll (1)(d)/(c) (2)
12/31/06 2007 20,045,209$ 22,297,535$ 89.90 2,252,326$ 8,175,810$ 27.55
12/31/07 (3)2008 21,257,894 28,297,826 75.12 7,039,932 9,383,755 75.02
12/31/08 2009 23,644,963 31,826,557 74.29 8,181,594 10,348,960 79.06
12/31/09 2010 24,573,182 27,697,975 88.72 3,124,793 10,073,870 31.02
12/31/10 (4)2011 35,451,160 34,974,234 101.36 (476,926) 10,125,274 (4.71)
12/31/11 2012 38,477,205 36,643,865 105.00 (1,833,340) 9,661,349 (18.98)
12/31/12 2013 41,091,987 38,639,275 106.35 (2,452,712) 9,940,381 (24.67)
12/31/13 (5)2014 43,722,138 42,047,025 103.98 (1,675,113) 10,452,089 (16.03)
12/31/14 2015 46,766,941 44,992,613 103.94 (1,774,328) 10,904,635 (16.27)
12/31/15 2016 49,852,738 49,029,491 101.68 (823,247) 11,750,753 (7.01)
(1)
(2)
(3)
(4)
(5)
(6)The data presented in this table comes directly from the TMRS rate letter for the City of Colleyville.This information can be obtained from the website at
http//www.tmrs.com/city_rate_letters.
The Texas State Legislature met in 2011 and passed Senate Bill 350,which restructured TMRS'internal account structure.This change was incorporated into the
TMRS 2010 actuarial valuation and had the net effect of increasing the City's funded ratio.
In 2013,the TMRS Board,in preparation for implementation of GASB Statement No.68,Accounting and Financial Reporting for Pensions -an amendment of
GASB Statement No.27,changed the actuarial cost method to entry age normal and updated post-retirement mortality assumptions.These changes were
incorporated into the TMRS 2013 actuarial valuation which had the net effect of reducing the City's funded ratio and increasing these changes were incorporated
into the TMRS 2013 actuarial valuation which had the net effect of reducing the City's funded ration and increasing the remaining amortization period from 26.8
to 27.7 years for the City's fiscal year 2014.
CITY OF COLLEYVILLE, TEXAS
SCHEDULE OF PENSION BENEFITS FUNDING PROGRESS
LAST TEN FISCAL YEARS
(Unaudited)
This schedule shows the pension benefit on a funding basis,as reported by TMRS each year.The funding basis,which is used to determine the City's annual
contribution rate,uses an actuarial value for plan assets rather than a market value.This data is used to show ongoing funding progress of the plan with the normal
cyclical swings of the stock market smoothed out.
Covered annual payroll and UAAL as a percentage of covered payroll are based on the fiscal year.The rest of the information is provided by TMRS on a calendar
year basis.
In 2007,the TMRS board made several changes to the actuarial methods and plan assumptions.The actuarial method changed from unit credit to projected unit
credit.Benefits changed from a pay-as-you-go basis to a pre-funded basis and to mitigate that change the TMRS Board approved an eight year transition period.
In addition,the amortization period changed from a 25-year open period to a 30-year closed period.These changes were incorporated into the TMRS 2007
actuarial valuation.
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131
COMPLIANCE
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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
To the Honorable Mayor and
Members of the City Council
City of Colleyville, Texas
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements 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 and for the
year ended September 30, 2016, and the related notes to the financial statements, which collectively
comprise the City of Colleyville Texas’ basic financial statements, and have issued our report thereon
dated February, 3, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Colleyville Texas’ internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of
Colleyville Texas’ internal control. Accordingly, we do not express an opinion on the effectiveness of
the City of Colleyville Texas’ internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
133
134
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 over financial
reporting that might be material weaknesses or, significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control over financial report 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 of Colleyville Texas’ 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.
Waco, Texas
February 3, 2017