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HomeMy WebLinkAboutFY19 Comprehensive Annual Financial ReportCOLLEYVILLE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2019 City of Colleyville, Texas Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2019 Prepared by Finance Department Kyle Lester Director of Finance Karen Hines Accounting Manager This Page Intentionally Left Blank City of Colleyville, Texas Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2019 Table of Contents i Exhibit Page Introductory Section Letter of Transmittal v Certificate of Achievement x Organizational Chart xi Principal Officials xii Financial Section Independent Auditor’s Report 3 Management's Discussion and Analysis 7 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 1 21 Statement of Activities 2 22 Fund Financial Statements: Governmental Funds Financial Statements: Balance Sheet 329 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 4 30 Statement of Revenues, Expenditures, and Changes in Fund Balance 5 31 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 6 32 Proprietary Funds Financial Statements: Statement of Net Position 7 34 Statement of Revenues, Expenses, and Changes in Net Position 8 35 Statement of Cash Flows 9 36 Fiduciary Fund Financial Statement: Statement of Fiduciary Net Position 10 39 Notes to the Basic Financial Statements 41 Required Supplementary Information Budgetary Comparison Schedules: Budgetary Comparison Schedule - General Fund A-1 74 Budgetary Comparison Schedule - Colleyville Economic Development Fund A-2 75 Notes to Budgetary Comparison Schedules 77 Schedule of Changes in Net Pension Liability and Related Ratios - TMRS A-3 78 Schedule of Contributions - TMRS A-4 79 Notes to Texas Municipal Retirement System Required Supplementary Information 80 Schedule of Changes in Net OPEB Liability and Related Ratios - TMRS A-5 81 Notes to Texas Municipal Retirement System- OPEB Liability 82 City of Colleyville, Texas Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2019 Table of Contents – Continued ii Exhibit Page Combining And Individual Fund Financial Statements And Schedules Budgetary Comparison Schedule - Debt Service Fund B-1 85 Non-Major Governmental Funds 87 Combining Balance Sheet B-2 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-3 94 Budgetary Comparison Schedule - Crime District Fund B-4 98 Agency Funds: Statement of Changes in Assets and Liabilities C-1 100 Combining Statement of Changes in Assets and Liabilities C-2 101 Statistical Section Net Position By Component 1106 Changes in Net Position 2108 Fund Balances - Governmental Funds 3 110 Changes in Fund Balances - Governmental Funds 4 111 Assessed Value and Estimated Actual Value of Taxable Property 5 112 Direct and Overlapping Property Tax Rates 6 113 Principal Property Tax Payers 7 114 Property Tax Levies and Collections 8 115 Principal Water Customers 9116 Ratios of Outstanding Debt by Type 10 117 Ratio of General Bonded Debt Outstanding 11 118 Direct and Overlapping Governmental Activities Debt 12 119 Pledged Revenue Coverage 13 120 Demographic and Economic Statistics 14 122 Principal Employers 15 123 Full-Time Equivalent City Government Employees By Function/Program 16 124 Operating Indicators By Function/Program 17 125 Capital Asset Statistics By Function/Program 18 126 iii Introductory Section iv This Page Intentionally Left Blank v February 18, 2020 To the Citizens of the City of Colleyville: The Comprehensive Annual Financial Report of the City of Colleyville (the "City") for the fiscal year ended September 30, 2019, is hereby submitted. Responsibility for both the accuracy of the data, and completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position, results of operations and cash flows of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. We believe that the City's current system of internal controls adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions. As required by the City’s charter, the financial statements have been audited by Weaver and Tidwell, L.L.P., a firm of certified public accountants. The goal of the independent audit was to provide reasonable assurances that the financial statements of the City of Colleyville for the fiscal year ended September 30, 2019, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Colleyville’s financial statements for fiscal year ended September 30, 2019, are presented in conformity with generally accepted accounting principles (GAAP). As required by GAAP, management provides a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditors report. PROFILE OF THE GOVERNMENT On January 10, 1956, the City of Colleyville was incorporated and adopted a home-rule charter on January 15, 1977. It has a Council-Manager form of government with policy making and legislative authority vested in a governing body consisting of a Mayor and six Council members. The Mayor and Council are responsible for passing ordinances, adopting the budget, appointing board and committee members, and hiring the City Manager. vi 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. During the fiscal year, the City issued 111 residential building permits and the average appraised value of a residential property was $521,831. The City also issued 86 certificates of occupancy for new, remodeled, and expanding businesses. In fiscal year 2019, commercial developments continued to bring new tenants and sales tax dollars to Colleyville including:  Burger IM  Muggle Shakes  Benny’s Café  Brazos Running Company  Townhouse Brunch  Mother Clucker  Simply Eyes vii  Dominos  Montclair Event Venue  Uptown Cheapskate  My Lan Kitchen  Chef Point In addition to these new businesses and tenants, Colleyville expects to see the following developments in the near future:  Zoning has been approved for a new ±86,675 square foot self-storage warehouse (Advantage Storage) on Precinct Line Rd on the western city limits  A new Chick-fil-A has been approved at the intersection of SH26 and Pleasant Run, with the restaurant expected to open in Fall 2020  The Enterprise rental car store has chosen to increase their investment in Colleyville, moving from their tenant space in Colleyville Downs to a brand new building to be constructed at SH26 and Old Glade Road  The “stonehouse” building at State Highway 26 and Thompson Terrace is in the process of being transformed into the Stonehouse Restaurant, offering high quality food in a warm and inviting atmosphere  The Wachovia Bank building will be subleased and transformed into the Colleyville Business Center, which will include a new home for the Colleyville Chamber of Commerce Infrastructure projects completed in fiscal year 2019 include Pleasant Run Road improvements from Shelton Road to John McCain Road, Glade Road right-of-way acquisition, SH26 water line relocation, and key water/wastewater line repairs. Over 21 lane miles were resurfaced in 2019, including:  Acuff Lane  Bettinger Drive  Bell Simmons Lane  Felps Drive  Frontier Court  Glade Road  Holly Lane  Hix Court  Patterson Lane  Van Oaks Drive  Bransford Road  Cheek-Sparger Road  White Drive  McDonwell School Road Projects in progress at the end of fiscal year 2019 are the McDonwell & Westcoat roundabout, Roberts Road rehab and LD Locket Turn Lane (both of which are in the design phase). For the Future. Future infrastructure and street rehabilitation projects scheduled include sidewalk/trail construction (grant-funded), Bransford Road Trail (from Field Street to Cotton Belt Trail) design, Pleasant Run Road rehab and waterline construction, LD Locket turn lane construction, Pleasant Run waterline vault construction, Glade Road waterline construction (phase 2 – State Highway 26 to Pool), and various other drainage and waterline improvements throughout the City. viii 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. 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. At the end of Fiscal Year 2019, 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 January 2017, the City Council held a Visioning Workshop and created a new Strategic Plan, with support from an outside facilitator and senior staff. The Strategic Plan included an updated Vision, Mission, and Values. The Strategic Plan also articulated six overall goals and several strategies to achieve each, as shown below in the version that was updated in June 2018. For each strategy identified, one or more objectives were assigned. Staff’s role is to manage City activities and finances in a way that reflects the City Council’s and the community’s highest priorities. Development of the annual budget is guided by the priorities outlined in the City of Colleyville’s Strategic Plan. Every new effort and element of the City’s budget, including existing programs, is tied to one or more of these goals, strategies, and objectives. ix As a part of the annual budget process, an updated five-year forecast for the General Fund, Utility Fund, Drainage Fund, and Debt Service Fund is presented to the City Council with the proposed budget. The budget process also includes an annual update of the five-year capital improvement program (CIP). Projects in the CIP are funded from a variety of sources including the Capital Projects Fund, Utility Capital Projects Fund, the Tax Increment Financing (TIF) District Fund, or Special Revenue Funds. The Capital Projects Fund accounts for money transferred from the General Fund for use on capital projects, street impact fees, perimeter street fees, and other funds for general capital projects. For internal reporting and tracking, a Utility Capital Projects Fund was created in Fiscal Year 2017 to account for money transferred from the Utility Fund (the operating fund) for use on utility capital projects, water impact fees, and wastewater impact fees. For the CAFR purposes, the activity for the Utility Fund and the Utility Capital Projects Fund are combined as the Water and Wastewater Fund activity. AWARDS AND ACKNOWLEDGEMENTS Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Colleyville for its comprehensive annual financial report for the fiscal year ended September 30, 2018. This was the 30th consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA’s Distinguished Budget Presentation award for its annual budget dated October 1, 2019. In order to qualify for this award, the City’s budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. Acknowledgements. The preparation of this report could not be accomplished on a timely basis without the dedicated endeavors of the entire staff of the Finance Department. We would like to express our sincere appreciation to all employees who contributed to the preparation. Additionally, we would also like to thank the Mayor, City Council, and City Manager for their support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Kyle Lester, CGFO Finance Director Karen Hines Accounting Manager x xi xii CITY OF COLLEYVILLLE, TEXAS HOME RULE, COUNCIL – MANAGER FORM OF GOVERNMENT CITY OFFICIALS YEAR ENDED SEPTEMBER 30, 2019 Richard Newton Mayor Tammy Nakamura Councilmember, Place 1 Bobby Lindamood Mayor Pro Tem and Councilmember, Place 2 Kathy Wheat Councilmember, Place 3 George W. Dodson Councilmember, Place 4 Chuck Kelley Councilmember, Place 5 Callie Rigney Councilmember, Place 6 Jerry Ducay City Manager Kyle Lester Director of Finance Karen Hines Accounting Manager 1 Financial Section 2 This Page Intentionally Left Blank Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 | Dallas, Texas 75201 Main: 972.490.1970 | Fax: 972.702.8321 CPAs AND ADVISORS | WEAVER.COM Independent Auditor’s Report To the Members of the City Council and City Manager City of Colleyville, Texas We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Colleyville, Texas (the City) as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements The City’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2019, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. The Members of the City Council and Manager of City of Colleyville, Texas 4 Emphasis of Matter As discussed in Note 14 to the financial statements, beginning net position was restated to correct an error in the reporting revenues in previous years. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis (pages 7 through 16), budgetary comparison information (pages 74 through 75), and TMRS pension and OPEB schedules (pages 78 through 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’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. The Members of the City Council and Manager of City of Colleyville, Texas 5 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 12, 2020, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. WEAVER AND TIDWELL, L.L.P. Dallas, Texas February 12, 2020 6 This Page Intentionally Left Blank 7 Management’s Discussion and Analysis As management of the City of Colleyville, we offer readers of the City’s financial statement this narrative overview and analysis of the financial activities of the City for the fiscal year Ended September 30, 2019. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages v – x of this report Financial Highlights  The assets of the City of Colleyville exceeded its liabilities as of September 30, 2019, by $211,651,659 (net position). Of this amount, $60,222,891 (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 $750,486 from FY 2019 operations.  As of the close of the current fiscal year, the City of Colleyville’s governmental funds reported combined ending fund balances of $43,751,124. Of this amount, $9,102,499 is unassigned fund balance available for use within the City’s fund designation and fiscal policies.  As of September 30, 2019, unreserved, unassigned fund balance for the General Fund was $9,102,499 or 44.00% of the total General Fund expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements, which begin on page 19 of this report, are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the fiscal year. All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include General Government, Public Safety, Public Works, and Cultural and Recreation. The business-type activities of the City include Water and Wastewater, and Drainage Utility. 8 Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental, funds, proprietary funds, and fiduciary funds. The fund financial statements for governmental funds, proprietary funds, and fiduciary funds can be found in the financial section of this report. Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluation a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Beginning on page 27 of this report, information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Capital Projects, Colleyville Economic Development, and Debt Service Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary Funds – The City maintains one type of proprietary fund. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses Enterprise Funds to account for the Water and Wastewater and Drainage Utility Funds. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The basic proprietary fund financial statements, which begin on page 33 of this report, provide separate information for the Water and Wastewater and Drainage Utility Enterprise Funds since these are considered to be major funds of the City. Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The Fiduciary fund statement is presented on page 37. The accounting used for fiduciary funds is similar to the accounting used for proprietary funds. The City has two agency funds: Employee Activity and Sesquicentennial Fund. Agency funds are one of the City’s fiduciary fund types. The agency funds account for funds held in an agency capacity for the benefit of the City employees and for the benefit of the City’s historical purposes. Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41 – 69 of this report. 9 Other Information – In addition to the basic financial statements and accompanying notes, this report also presents combining fund statements and schedules that further support the information in the financial statements. The combining fund statements and schedules for non-major funds are presented beginning on page 83 of this report. Governmental-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of government’s financial position. In the case of the City of Colleyville, assets exceeded liabilities by $211,651,659 as of September 30, 2019. The largest portion of the City’s net position ($143,733,599) reflects its investments in capital assets (e.g., land, building, equipment, improvements, construction in progress and infrastructure), less any outstanding debt used to acquire those assets. The City uses these capital assets to provide service to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Colleyville’s Net Position 2019 2018 2019 2018 2019 2018 Current and other assets 46,754,575$ 48,868,523$ 26,827,955$ 24,338,315$ 73,582,530$ 73,206,838$ Capital assets, net 111,134,567 112,588,679 42,900,760 43,923,237 154,035,327 156,511,916 Total assets 157,889,142 161,457,202 69,728,715 68,261,552 227,617,857 229,718,754 Deferred outflows of resources 4,168,228 2,547,481 571,450 342,092 4,739,678 2,889,573 Current liabilities 2,077,934 2,594,456 2,287,107 1,722,655 4,365,041 4,317,111 Long-term liabilities 15,381,846 14,054,032 913,141 543,069 16,294,987 14,597,101 Total liabilities 17,459,780 16,648,488 3,200,248 2,265,724 20,660,028 18,914,212 Deferred inflows of resources 40,068 2,590,749 5,780 376,993 45,848 2,967,742 Net position Net Investment in capital assets 101,081,404 100,382,597 42,652,195 43,560,389 143,733,599 143,942,986 Restricted 7,695,169 8,504,330 - - 7,695,169 8,504,330 Unrestricted 35,780,949 35,878,519 24,441,942 22,400,538 60,222,891 58,279,057 Total net position 144,557,522$ 144,765,446$ 67,094,137$ 65,960,927$ 211,651,659$ 210,726,373$ Activities Activities Primary Government Governmental Business-type Total A portion of the City’s net position ($7,695,169) represents resources that are subject to external restriction on how they may be used. The remaining balance ($60,222,891) 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. 10 As of September 30, 2019, 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. Fiscal year 2019 governmental activities resulted in a $382,724 decrease in net position. That decrease was primarily due to increased spending on public safety and streets/drainage, mostly associated with the city’s capital improvement plan. Fiscal year 2019 business-type activities resulted in a $1,133,210 increase in net position. 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. In fiscal year 2019, TRA refunded the City more than $450,000 after calculating the authority’s true up balances. The City also experienced a 2% increase in the water and wastewater customer base as well as an increase in impact fees. Tiered rates which have been in place since December 2012 were replaced with a flat rate structure in July 2016. The flat rate provides a more equitable basis for our residents by charging a flat base rate that varies depending on the meter size (rather than consumption) and a flat volumetric rate per thousand gallons of usage. The new rate structure gave the residents a relief from high water bills in summer months. Risk to the City is minimized under the new utility rate structure adopted in Fiscal Year 2016, which recovers all of the City’s distribution and collection costs in the base rate component and costs related to the purchase of treated water or wastewater treatment are recovered in the volumetric component of the rate. Analysis of the City’s Operations – The following table provides a summary of the City’s operations for the year ended September 30, 2019. Governmental activities decreased the City of Colleyville’s net position by $207,924, net of the cumulative effect of change in accounting principle related to the adoption of GASB 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions that increased the beginning net position by $174,800. Business-type activities contributed an increase to the City’s net position of $1,133,210. 11 City of Colleyville’s Changes in Net Position 2019 2018 2019 2018 2019 2018 Revenues: Program revenues: Charges for services 4,106,919$ 4,395,586$ 17,068,448$ 18,334,071$ 21,175,367$ 22,729,657$ Operating grants and contributions 771,681 614,794 - - 771,681 614,794 Capital grants and contributions 369,126 406,094 188,749 277,639 557,875 683,733 General revenues: Property tax 15,676,533 15,471,246 - - 15,676,533 15,471,246 Sales tax 7,584,353 7,578,861 - - 7,584,353 7,578,861 Franchise tax 2,086,683 1,982,578 - - 2,086,683 1,982,578 Other tax 350,411 351,715 - - 350,411 351,715 Investment income 967,396 315,611 455,178 167,427 1,422,574 483,038 Miscellaneous 89,869 126,859 18,706 183,685 108,575 310,544 Gain on sale of capital assets 14,116 51,620 - - 14,116 51,620 Total revenues 32,017,087 31,294,964 17,731,081 18,962,822 49,748,168 50,257,786 Expenses: General government 5,791,827 5,330,690 - - 5,791,827 5,330,690 Community development 1,398,052 1,387,909 - - 1,398,052 1,387,909 Fire and rescue 6,192,307 5,690,454 - - 6,192,307 5,690,454 Leisure services 4,710,673 4,271,760 - - 4,710,673 4,271,760 Maintenance 770,762 738,834 - - 770,762 738,834 Municipal court 575,098 595,879 - - 575,098 595,879 Police 6,749,202 6,634,046 - - 6,749,202 6,634,046 Streets and drainage 6,181,453 4,009,383 - 6,181,453 4,009,383 Water and wastewater - - 15,463,642 15,257,125 15,463,642 15,257,125 Drainage - - 863,826 740,994 863,826 740,994 Interest on long-term debt 300,840 334,839 - - 300,840 334,839 Total expenses 32,670,214 28,993,794 16,327,468 15,998,119 48,997,682 44,991,913 Increases (decreases) in net position before transfers (653,127) 2,301,170 1,403,613 2,964,703 750,486 5,265,873 Transfers 270,403 260,238 (270,403) (260,238) - - Change in net position (382,724) 2,561,408 1,133,210 2,704,465 750,486 5,265,873 Net position - October 1 144,765,446 142,572,850 65,960,927 63,309,625 210,726,373 205,882,475 Cumulative effect of change in accounting principle and prior period adjustment 174,800 (368,812) - (53,163) 174,800 (421,975) Net position - October 1, as restated 144,940,246 142,204,038 65,960,927 63,256,462 210,901,173 205,460,500 Net position - September 30 144,557,522$ 144,765,446$ 67,094,137$ 65,960,927$ 211,651,659$ 210,726,373$ Activities Activities Primary Government Governmental Business-type Total Governmental funds – The focus of the City of Colleyville’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. 12 In fiscal year 2019, the governmental funds’ unassigned fund balance increased by $110,500 due to a number of factors. The General Fund is the only governmental fund that can have an unassigned fund balance. The total General Fund revenue was $1,092,554 above budget, including $673,997 in tax revenue (property taxes, sales taxes and franchise taxes). Colleyville benefits from a strong residential base which helps mitigate the negative effects of economic fluctuations. Despite the property tax rate reduction, the General Fund’s property tax revenue was almost $500,000 above budget. Sales tax is the second largest revenue source. Despite the massive construction project in the City’s primary commercial corridor along Colleyville Boulevard (SH26), the sales tax revenue was only $14,000 shy of its budget due to the city’s continuous efforts to support and market the impacted businesses during construction. During FY18, the City began quarterly promotion programs in 2018 to assist businesses impacted by State Highway 26 construction, a 3-mile $38 million roadway expansion project through the City’s main commercial corridor. These initiatives were expanded upon in FY19. During this year, Colleyville initiated several grant programs, each with a different focus. The BEST (Business Enhancements to Support Transformation) Grant provides matching grant funding to local businesses to assist with beautification of commercial buildings and properties. This may include work such as façade, parking lot, and landscaping improvements. The SIGN (Sign Improvements to Get Noticed) Grant provides grant funds of 50% up to $5,000 for permanent sign improvements. And the SAFER (Support for Adequate Fire & Emergency Response) Grant provides grant funds of 50% up to $50,000 for costs associated with installing a sprinkler system for fire suppression in commercial buildings. Each of these programs utilizes the City’s Tax Increment Financing funds to partner with local business to reinvest in Colleyville and improve quality of life for the community. To date there have been 14 BEST Grants, 4 SIGN Grants, and 1 SAFER Grant. Also, in fiscal year 2019, the City Council provided direction to transfer the excess fund balance above budget to the Capital Projects Fund to fund future capital projects. The fiscal year 2019 excess fund balance allowed the Council to authorize a transfer of $2,400,000 to the Capital Projects Fund, in addition to the originally budgeted transfers of $1,500,000, for a total transfer of $3,900,000. This contributed to the net increase in the Capital Projects Fund balance of $1,213,568. The aforementioned transfers from the General Fund to the Capital Projects Fund were contained within funds that are in the governmental fund classification and did not change the total governmental activities fund balance. Fiscal year 2019 Debt Service Fund balance increased by $146,891, solely due to greater than anticipated property tax and investment interest revenues. Additionally, the City of Colleyville has been focused on reducing and eliminating debt, working toward a pay as you go method for large-scale capital improvements and purchases. To that end, the city has not issued any new tax supported debt since 2007. All debt issuances after that were refunding debts. Proprietary funds- The unrestricted net position of the proprietary funds are $21,859,675 for the Water and Wastewater Fund and $2,582,267 for the Drainage Utility Fund. Additionally, fiscal year 2019 activities resulted in a net position increase of $931,136 in the Water and Sewer fund and $202,074 for the Drainage fund. Tiered water and wastewater rates which have been in place since December 2012 were replaced with a flat rate structure in July 2016. The flat rate provides a more equitable basis for our residents by charging a flat base rate that varies depending on the meter size (rather than consumption) and a flat volumetric rate per thousand gallons of usage. The new rate structure gave the residents a relief from high water bills in summer months. The new rates did include the continued pass-through of the Trinity River Authority water and wastewater rate increases. Fiscal year 2019 was a wet year, and the revenues collected reflect this. However, Colleyville’s unique rate structure helps mitigate the financial effects of major weather changes by ensuring the utility operations are covered through customers’ base rates. The volumetric portion of the rates solely cover charges from the Trinity River Authority, which are passed through to customers. So while operating revenues fell short of budget by $1.2 million, this shortage was on the volumetric side of Colleyville’s rates. This shortage was more than offset by lower fees from the Trinity River Authority due to the low consumption. As a result, the Water and Wastewater fund ended with a large budget surplus of over $1.4 million. The Drainage fees, which are set monthly charges and therefore much more stable, were $64,401 above budget. Additionally, the city’s customer base by expanded by close to 2% during the year. 13 Governmental activities – There was an increase of $722,123 in governmental activities revenue compared to fiscal year 2018. Colleyville benefits from a strong residential base which helps mitigate the negative effects of economic fluctuations. Property values have experienced a 7% growth over the prior year’s certified values. Despite the tax rate reduction from $0.333834/$100 valuation to $0.3208/$100 valuation, the City’s actual property tax revenue was $205,287 more than last year’s for the General Fund and the Debt Service Fund, with a current year tax collection rate of 99.8% of the levy. Total sales tax revenues increased by a modest $5,492 for the General Fund, Colleyville Economic Development Corporation (CEDC) and the Colleyville Crime Control and Prevention District (CCCPD). However, it should be noted that this slight increase was solely as a result of the city authorizing the CCCPD to collect sales taxes on telecommunications services, which was not previously authorized. Sales tax collections for the General Fund and CEDC did decrease slightly from the previous year. In total, governmental activities experienced a total of $313,580 increase in tax revenues. Business-type activities – Colleyville has two enterprise operations, the Waste and Wastewater Fund and the Drainage Utility Fund. The total operating revenue of the Water and Sewer Fund was $16,075,726 for the fiscal year with the aforementioned, consumption-related decrease of about $1.2 million. In fiscal year 2019, the water consumption decreased by 22% with a steady 2% increase in the customer base. Also, in December 2018, the volumetric rates went up to pass through the rate increase from the Trinity River Authority, the city’s provider of treated water. A total of 50.64 inches of rainfall hit DFW in FY19, compared to the 42.39 inches that came in FY18, resulting in lower charges from the Trinity River Authority and therefore lower volumetric revenues from Colleyville customers. Net of those pass-through charges, the utility’s operational costs came in under FY18 by just over $200,000. This is primarily due to the utility’s remaining revenue bond issue having been paid off in FY18, and therefore no debt costs were incurred by the fund. Revenues from the Drainage Utility fund were essentially flat, with a small increase in drainage fees being offset by a decrease in miscellaneous revenues. Expenses were lower than FY18 by $1.7 million due to a large, one-time transfer that occurred in FY18. Net of this transfer, FY19 spent approximately $65,000 more than the previous year. General fund budgetary highlights – With the FY19 budget, resources were allocated according to the priorities of our citizens and City Council, while maintaining the conservative fiscal approach that has allowed Colleyville to attain and maintain an AAA bond rating. Cost increases were absorbed via reductions in other expenses or by identifying alternative fund sources to allow any new revenue to be allocated for priority areas. Colleyville’s approach to budgeting places emphasis on maintaining business-like efficiency and keeping as low a tax rate as possible while maintaining or expanding service levels. As such, FY19 was the first year that the city adopted an effective property tax rate, meaning properties on both the 2017 and 2018 tax rolls would not pay a higher tax bill to the city over those two years. Any increases in property tax revenue would come as a result of new development, rather than a higher tax rate. Staff also managed to absorb a 7% increase in health insurance costs within its existing budget. Maximizing position openings through attrition helped the city accomplish cost absorption and a low tax rate, as FY19 funded 5.5 fewer full-time equivalents (FTEs) than FY18. This was largely possible by eliminating layers of management within the organization and developing a flatter organizational chart. These staffing efficiencies were all accomplished without any layoffs, but rather through organic opportunities through vacancies. In FY17, a compensation and classification study was performed. It was a six month effort guided by a committee of citizens, Councilmembers, and staff and it resulted in a new compensation structure that was first implemented in fiscal year 2018. Employees earning below the new minimum salary of their position’s pay range received a market adjustment to bring them into the new ranges, and feathering tenured employees into their ranges based on years of service to address compression. The FY19 budget continued to reflect the City Council’s bold vision of fully implementing the recommendations of the 2017 Compensation and Classification Study. 14 Refer to the General Fund Statement of Revenue, Expenditures and Changes in Fund Balances – Budget and Actual on page 74 of this report for a detailed presentation of the actual General Fund operations compared to both the original and final budget for fiscal year 2019. Capital Assets The City of Colleyville’s investment in capital assets for its governmental and business-type activities as of September 30, 2019 amounts to $154,035,327 (net of accumulated depreciation). This investment in capital assets includes land, building and 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 over $1.5 million in street improvements, including Glade Road ($450,000), and John McCain Road ($1,050,000).  Capitalized over $1 million for facility renovations, including the library spatial reconfiguration ($400,000), the renovation of Webb House ($250,000), and Colleyville Center Courtyard ($400,000).  Capitalized $1.8 million in water and over $300,000 in wastewater. City of Colleyville’s Capital Assets at Year End 2019 2018 2019 2018 2019 2018 Land 9,178,641$ 9,178,641$ 304,839$ 304,839$ 9,483,480$ 9,483,480$ Buildings and improvements 51,374,588 50,400,558 53,922 53,922 51,428,510 50,454,480 Equipment 14,425,752 14,018,330 2,299,310 2,264,969 16,725,062 16,283,299 Infrastructure/water distribution sewer collection 104,196,498 99,522,267 82,704,453 80,398,064 186,900,951 179,920,331 Construction in progress 1,571,033 4,663,882 281,743 1,522,362 1,852,776 6,186,244 Less: accumulated depreciation (69,611,945) (65,194,999) (42,743,507) (40,620,919) (112,355,452) (105,815,918) Total capital assets, net 111,134,567$ 112,588,679$ 42,900,760$ 43,923,237$ 154,035,327$ 156,511,916$ Primary GovernmentActivities Activities Governmental Business-type Total Additional information on the City’s capital assets can be found in Note 5, pages 53 – 55 of this report. Debt Administration At the end of the current fiscal year, the City of Colleyville had total bonded debt, notes payable and capital lease obligations of $10,308,954. Of this amount, $4,155,000 represents bonded debt backed by the full faith and credit of the government, $5,235,000 represents bonds secured by sales tax revenues, and $250,000 represents bonds secured solely by drainage utility system revenues. The city paid off the remaining water and sewer revenue bonds in fiscal year 2018. The City’s capitalized lease obligations of $443,675 pertain to the prior year lease purchase of a fire pumper truck and a newly added ambulance lease. 15 Outstanding Debt and Year End Bonds, Notes and Capitalized Lease Obligations Payable 2019 2018 2019 2018 2019 2018 General obligation bonds and certificates of obligation 4,155,000$ 5,665,000$ -$ -$ 4,155,000$ 5,665,000$ Sales tax revenue bonds 5,235,000 5,680,000 - - 5,235,000 5,680,000 Revenue bonds payable - 250,000 365,000 250,000 365,000 Capital lease obligations 443,675 637,365 - 443,675 637,365 Bond premiums 225,279 235,299 - - 225,279 235,299 Total long-term debt 10,058,954$ 12,217,664$ 250,000$ 365,000$ 10,308,954$ 12,582,664$ Long-term debt to net position percentage 7% 8% 0% 1% 5% 6% Activities Activities Primary Government Governmental Business-type Total The City’s General Obligation, Tax and Water Works and Sewer System Certificates of Obligation, and Water Works and Sewer System Revenue Bond ratings are listed below. Standard Fitch Ratings & Poor's General Obligations Bonds AAA AAA Water Revenue Bonds AAA AAA In July 2016, the AAA rating on the City’s General Obligation Bonds was reaffirmed by both Standard and Poor’s and Fitch Ratings. These are the highest bond ratings assigned to municipal debt by these agencies. Additional information on the City of Colleyville’s long-term debt can be found in Note 7 on pages 57 – 60 of this report Economic Factors and Next Year’s Budgets and Rates Colleyville benefits from a strong residential base, which helps mitigate the negative effects of economic fluctuations. Property values have rebounded from the declines experienced in fiscal years 2011 and 2012, and have experienced tremendous growth in the last several years. Certified values increased 7% in total from 2018 to 2019. However, one of the City Council’s highest priorities is minimizing the tax burden of our citizens. As such, careful consideration is given to the amount of revenue (and associated tax rate) needed, as opposed to simply maintaining a tax rate that brings in ever increasing amounts of revenue due to increased property values. Any tax rate above the effective rate (i.e., that brings in more revenue than the prior year, excluding revenue from new construction) must be fully justified, with the reasons for adopting such a rate clearly communicated. For fiscal year 2020, the City had a goal of adopting the effective tax rate, which was achieved by adopting a tax rate of $0.306807/$100 valuation, a $0.013993 reduction from the fiscal year 2019 tax rate of $0.3208/$100 valuation. This rate reduction serves to provide some relief to property owners receiving higher appraisal values, while also providing the revenue necessary to fund programs and services. Sales tax is the second largest revenue source; however, the city’s primary commercial corridor along Colleyville Boulevard (SH26) continues to be under full reconstruction. The General Fund and CEDC did experience a slight decline in this revenue stream for FY19, but the loss was minimal and offset by lower spending. Sales tax has been budgeted conservatively with no growth for FY20 and limited growth in future years, until reconstruction has been completed. As of the date of this report, the city’s two FY 2020 collections have shown a 7% increase over FY 2019. 16 At the budget work session presentation in August, staff reviewed a five-year forecast for all operating funds. That forecast includes estimates for expenditures and the revenues necessary to continue balancing the budget. Ad valorem revenue was projected with growth of 3.5% in fiscal year 2020, reflecting potential new growth on top of an effective tax rate, and sales tax was projected with limited growth as well. The forecast for General Fund expenditures includes general cost increases of approximately 3% for materials and contractual services required each year, as well as personnel costs to continue funding appropriate market and merit adjustments and increasing healthcare costs. These forecasts help staff and the City Council focus on the long-term budgetary implications of current funding decisions. They also help to put long-term goals into perspective relative to the overall resources available. The fiscal year 2020 budget provides a staffing level of 205.23 full-time equivalents (FTEs), 5.0 FTEs more than in fiscal year 2019. Staff accomplished this by relying on the Capital Projects fund and Crime Control and Prevention District fund to take on their appropriate operating costs, thereby freeing up room in the General Fund. Water and wastewater base rates are directly related to the City’s budget for the Utility Fund, and rates are set to only recover the City’s cost of operating the utility system. Based on the fiscal year 2020 budget, which includes zero debt payments and a slight increase in the number of customers, water and wastewater base rates were maintained at their current level, with a higher capital improvement plan base rate and correspondingly lower operating rate. The CIP base rate is a capital funding component of the rate structure to ensure adequate cash funding of future utility capital projects. 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 Kyle Lester, Director of Finance, at 100 Main Street, Colleyville, Texas 76034, or call (817) 503-1014. 17 Basic Financial Statements 18 This Page Intentionally Left Blank 19 Government-Wide Financial Statements 20 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit 1 Statement of Net Position September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 21 Governmental Business-type Component Activities Activities Total Units ASSETS Cash and cash equivalents 10,981,520$ 4,214,127$ 15,195,647$ 3,932,618$ Investments 33,008,396 18,677,291 51,685,687 19,742,566 Receivables (net of allowance for uncollectibles of $278,478) Accounts 267,347 3,269,761 3,537,108 5,025 Taxes 966,243 - 966,243 - Loans 780,750 - 780,750 - Due from other governments 705,399 - 705,399 - Inventories 1,291 191,478 192,769 - Restricted assets: Investments - 473,753 473,753 - Accrued interest 43,629 1,545 45,174 14,545 Capital assets: Non-depreciable 10,749,674 586,582 11,336,256 12,391,954 Depreciable (net of depreciation)100,384,893 42,314,178 142,699,071 10,585,236 Total assets 157,889,142 69,728,715 227,617,857 46,671,944 DEFERRED OUTFLOWS OF RESOURCES Deferred charge for refunding 5,791 1,435 7,226 - Deferred outflows - TMRS pension and OPEB 4,162,437 570,015 4,732,452 - Total deferred outflows of resources 4,168,228 571,450 4,739,678 - LIABILITIES Accounts payable 1,436,690 1,538,279 2,974,969 877,471 Accrued liabilities 366,666 41,887 408,553 85,118 Accrued interest payable 37,944 1,085 39,029 2,419 Advances from developers 195,373 212,506 407,879 - Customer deposits 41,261 493,350 534,611 - Non-current liabilities: Due within one year 1,971,967 140,654 2,112,621 669,041 Due in more than one year 10,042,908 291,995 10,334,903 - Net pension liability 2,932,903 417,921 3,350,824 - OPEB liability 434,068 62,571 496,639 - Total liabilities 17,459,780 3,200,248 20,660,028 1,634,049 DEFERRED INFLOWS OF RESOURCES Deferred inflows - TMRS pension 40,068 5,780 45,848 - Total deferred inflows of resources 40,068 5,780 45,848 - NET POSITION Net investment in capital assets 101,081,404 42,652,195 143,733,599 22,977,190 Restricted: Debt service 1,476,905 - 1,476,905 - Court security and technology 63,506 - 63,506 - Grant Programs 74,119 - 74,119 - Leisure services 612,500 - 612,500 - Economic development 4,150,118 - 4,150,118 - Police 1,318,021 - 1,318,021 - Unrestricted 35,780,949 24,441,942 60,222,891 22,060,705 TOTAL NET POSITION 144,557,522$ 67,094,137$ 211,651,659$ 45,037,895$ Primary Government City of Colleyville, Texas Statement of Activities For the Fiscal Year Ended September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 22 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions PRIMARY GOVERNMENT Governmental activities: General government 5,791,827$ 29,800$ 26,667$ 188,115$ Community development 1,398,052 1,361,965 - - Fire and rescue 6,192,307 397,646 233,165 - Leisure services 4,710,673 521,448 402,992 - Maintenance 770,762 - - - Municipal court 575,098 1,123,157 - - Police 6,749,415 93,495 108,857 - Streets and drainage 6,181,453 579,408 - 181,011 Interest on long-term debt 300,627 - - - Total governmental activities 32,670,214 4,106,919 771,681 369,126 Business-type activities: Water and sewer 15,463,642 16,057,020 - 188,749 Drainage 863,826 1,011,428 - - Total business-type activities 16,327,468 17,068,448 - 188,749 TOTAL PRIMARY GOVERNMENT 48,997,682$ 21,175,367$ 771,681$ 557,875$ COMPONENT UNIT Tax increment financing 1,521,737$ -$ -$ -$ Total component unit 1,521,737$ -$ -$ -$ General revenues and transfers: Taxes: Property taxes Sales taxes Franchise taxes Other taxes Interest on investments Gain on sale of capital assets Miscellaneous Transfers Total general revenues and transfers Change in net position Net position, beginning of year Prior period adj ustment NET POSITION, end of year Functions/Program Activities Program Revenues Exhibit 2 23 Governmental Business-type Component Activities Activities Total Unit (5,547,245)$ -$ (5,547,245)$ -$ (36,087) - (36,087) - (5,561,496) - (5,561,496) - (3,786,233) - (3,786,233) - (770,762) - (770,762) - 548,059 - 548,059 - (6,547,063) - (6,547,063) - (5,421,034) - (5,421,034) - (300,627) - (300,627) - (27,422,488) - (27,422,488) - - 782,127 782,127 - - 147,602 147,602 - - 929,729 929,729 - (27,422,488)$ 929,729$ (26,492,759)$ -$ -$ -$ -$ (1,521,737)$ -$ -$ -$ (1,521,737)$ 15,676,533$ -$ 15,676,533$ 6,002,033$ 7,584,353 - 7,584,353 - 2,086,683 - 2,086,683 - 350,411 - 350,411 - 967,396 455,178 1,422,574 519,432 14,116 - 14,116 - 89,869 18,706 108,575 - 270,403 (270,403) - - 27,039,764 203,481 27,243,245 6,521,465 (382,724) 1,133,210 750,486 4,999,728 144,765,446 65,960,927 210,726,373 40,038,167 174,800 - 174,800 - 144,557,522$ 67,094,137$ 211,651,659$ 45,037,895$ Net (Expense) Revenue and Changes in Net Position Primary Government 24 This Page Intentionally Left Blank 25 Fund Financial Statements 26 This Page Intentionally Left Blank 27 Governmental Funds Financial Statements 28 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit 3 Balance Sheet Governmental Funds September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 29 Colleyville Non-Major Debt Capital Economic Governmental Governmental General Service Projects Development Funds Funds ASSETS Cash and cash equivalents 781,656$ 807,750$ 4,749,982$ 2,369,349$ 2,272,783$ 10,981,520$ Investments 13,945,981 35,787 9,371,193 1,502,375 8,153,060 33,008,396 Receivables, net of allowances for uncollectibles: Accounts 101,775 - 12,459 - 153,117 267,351 Taxes 939,931 26,312 - - - 966,243 Loans 135,750 645,000 - - - 780,750 Due from other funds - - 5,000,000 - 100,000 5,100,000 Due from other governments - - - 342,406 362,989 705,395 Accrued interest 21,140 - 8,486 2,823 11,180 43,629 Inventories 1,291 - - - - 1,291 TOTAL ASSETS 15,927,524$ 1,514,849$ 19,142,120$ 4,216,953$ 11,053,129$ 51,854,575$ LIABILITIES Accounts payable 511,052$ -$ 691,196$ 55,766$ 178,676$ 1,436,690$ Accrued liabilities 274,849 - 52,611 11,069 28,137 366,666 Advances from developers 47,548 - 147,825 - - 195,373 Due to other funds 5,000,000 - - - 100,000 5,100,000 Customer deposits 41,261 - - - - 41,261 Total liabilities 5,874,710 - 891,632 66,835 306,813 7,139,990 DEFERRED INFLOWS OF RESOURCES Unavailable resources 293,478 669,983 - - - 963,461 TOTAL DEFERRED INFLOWS OF RESOURCES 293,478 669,983 - - - 963,461 FUND BALANCES Nonspendable for: Inventories 1,291 - - - - 1,291 Restricted for: Debt service - 844,866 - - - 844,866 Court security and technology- - - - 63,506 63,506 Grant pro grams - - - - 74,119 74,119 Leisure services - - 612,500 612,500 Economic development - - - 4,150,118 - 4,150,118 Police - - - - 1,318,021 1,318,021 Committed for: Strategic initiatives 655,546 - - - - 655,546 Leisure services - - - - 2,033,971 2,033,971 Capital projects - - 18,250,488 - 5,136,858 23,387,346 Assigned for: Capital projects - - - - 1,483,539 1,483,539 Leisure services - - - - 23,802 23,802 Unassi gned 9,102,499 - - - - 9,102,499 Total fund balances 9,759,336 844,866 18,250,488 4,150,118 10,746,316 43,751,124 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 15,927,524$ 1,514,849$ 19,142,120$ 4,216,953$ 11,053,129$ 51,854,575$ City of Colleyville, Texas Exhibit 4 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position As of September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 30 TOTAL FUND BALANCES - GOVERNMENT FUNDS 43,751,124$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet 111,134,567 Interest payable on long-term debt does not require current financial resources; therefore, interest payable is not reported as a liability in the governmental funds balance sheet.(37,944) Revenues earned but not available within sixty days of the year end are not recognized as revenue on the fund financial statements. 963,461 For debt refundings, the difference between the acquisition price and net carrying amount of the debt has been deferred and amortized in the government-wide financial statements.5,791 Net deferred outflows of resources related to the City's net pension liability results in an increase in net position in the government-wide financial statements. 4,122,369 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the fund financial statements. These noncurrent liabilities are as follows: Long term debt (9,833,675) Unamortized bond premium/discount, net (225,279) Compensated absences (1,955,921) Other post employment benefits liability (434,068) Net pension liability (2,932,903) (15,381,846) Net position of governmental activities 144,557,522$ City of Colleyville, Texas Exhibit 5 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 31 Colleyville Non-Major Total Debt Capital Economic Governmental Governmental General Service Projects Development Funds Funds REVENUES Taxes 21,109,864$ 831,406$ -$ 1,943,228$ 2,003,291$ 25,887,789$ Fines and forfeitures 702,909 - - - 103,663 806,572 Licenses, permits and fees 1,141,959 - - - - 1,141,959 Intergovernmental 159,390 653,725 - - 40,890 854,005 Charges for services 1,442,807 - - - - 1,442,807 Capital improvement fees - - 568,533 - - 568,533 Grants/contributions - - - - 667,736 667,736 Investment earnings 376,662 12,162 309,771 44,900 223,901 967,396 Miscellaneous 38,807 - 24,697 - 22,431 85,935 Total revenues 24,972,398 1,497,293 903,001 1,988,128 3,061,912 32,422,732 EXPENDITURES Current: General government 3,773,064 - - 76,039 197,356 4,046,459 Community development and engineering 1,366,898 - 2,959 - - 1,369,857 Fire and rescue 5,470,304 - 368 - 21,758 5,492,430 Leisure services 2,518,475 - - 833,603 279,264 3,631,342 Maintenance 741,907 - 2,200 - - 744,107 Municipal court 432,537 - - - 142,561 575,098 Police services 4,780,246 - - - 1,188,863 5,969,109 Streets and drainage 1,537,425 - 2,403,022 - - 3,940,447 Capital outlay 65,152 - 1,188,964 972,245 915,210 3,141,571 Debt service: Principal retirement - 1,703,690 - 445,000 - 2,148,690 Interest and fiscal charges - 155,812 - 157,176 - 312,988 Total expenditures 20,686,008 1,859,502 3,597,513 2,484,063 2,745,012 31,372,098 Excess (deficiency) of revenues over (under) expenditures 4,286,390 (362,209) (2,694,512) (495,935) 316,900 1,050,634 OTHER FINANCING SOURCES (USES) Proceeds from the sale of property 14,116 - - - - 14,116 Transfers in 226,117 509,100 3,908,080 - 568,992 5,212,289 Transfers out (4,422,786) - - - (519,100) (4,941,886) Total other financing sources (uses) (4,182,553) 509,100 3,908,080 - 49,892 284,519 Net change in fund balances 103,837 146,891 1,213,568 (495,935) 366,792 1,335,153 Fund balances, beginning of year, as restated (see note 14) 9,655,499 697,975 17,036,920 4,646,053 10,379,524 42,415,971 FUND BALANCES, END OF YEAR 9,759,336$ 844,866$ 18,250,488$ 4,150,118$ 10,746,316$ 43,751,124$ City of Colleyville, Texas Exhibit 6 Reconciliation of the Statement of Revenues, Expenditures and Changes In Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 32 TOTAL NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS 1,335,153$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount of capital assets recorded in the current period.3,173,525 Depreciation expense on capital assets is reported in the statement of activities but does not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in the governmental funds.(4,767,292) The issuance of long-term debt (e.g. bonds ) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amortized in the statement of activities. This amount is the net effect of the following items: Principal payments 2,148,690$ Amortization of premiums and deferred losses (4,229) 2,144,461 The net change in net pension liability, deferred outflows and deferred inflows is report in the statement of activities but does not require the use of current financial resources and, therefore is not reported as an expenditure in the governmental funds.(1,235,256) Current year changes in the long-term liability for compensated absences do not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds.(557,342) The net change in OPEB liability, deferred outflows and deferred inflow is reported in the statement of activities but does not require the use of current financial resources and, therefore is not reported as expenditures in the governmental funds. (31,522) Current year changes in accrued interest payable do not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds. 16,666 Governmental funds do not recognize assets contributed by developers. However, in the statement of activities the fair market value of those assets are recognized as revenue, then allocated over their estimated useful lives and reported as depreciation expense. 181,011 In the governmental fund financial statements the proceeds from sale of assets are shown as an increase in financial resources. In the the government-wide financial statements, the (41,356) gain or loss is calculated and reported. Certain revenues in the government-wide statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds.(600,772) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (382,724)$ 33 Proprietary Funds Financial Statements City of Colleyville, Texas Exhibit 7 Statement of Net Position Proprietary Funds September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 34 Water and Sewer Drainage Utility Fund Fund Total ASSETS Current assets: Cash and cash equivalents 3,458,353$ 755,774$ 4,214,127$ Investments 16,835,308 1,841,983 18,677,291 Accounts receivable, net of allowance 3,136,161 133,600 3,269,761 Inventories 191,478 - 191,478 Restricted assets: Investments 440,573 33,180 473,753 Total current assets 24,061,873 2,764,537 26,826,410 Noncurrent assets: Accrued interest 84 1,461 1,545 Capital assets: Land and improvements 304,839 - 304,839 Buildings 53,922 - 53,922 Utility system 78,401,441 4,303,012 82,704,453 Equipment and furniture 1,592,345 706,965 2,299,310 Construction in progress 272,493 9,250 281,743 Less: accumulated depreciation (40,773,941) (1,969,566) (42,743,507) Total non-current assets 39,851,183 3,051,122 42,902,305 Total assets 63,913,056 5,815,659 69,728,715 DEFERRED OUTFLOW OF RESOURCES Deferred charge for refunding - 1,435 1,435 Deferred outflows - TMRS pension and OPEB 470,441 99,574 570,015 Total deferred outflows of resources 470,441 101,009 571,450 LIABILITIES Current liabilities: Accounts payable 1,506,128 32,151 1,538,279 Accrued liabilities 34,290 7,597 41,887 Accrued interest payable - 1,085 1,085 Advances from developers 95,613 116,893 212,506 Customer deposits 493,350 - 493,350 Compensated absences - 15,654 15,654 Revenue bonds payable - 125,000 125,000 Total current liabilities 2,129,381 298,380 2,427,761 Noncurrent liabilities: Compensated absences 142,086 24,909 166,995 Revenue bonds payable - 125,000 125,000 Net pension liability 345,000 72,921 417,921 Net OPEB liability 51,499 11,072 62,571 Total non-current liabilities 538,585 233,902 772,487 Total liabilities 2,667,966 532,282 3,200,248 DEFERRED INFLOW OF RESOURCES Deferred inflows - TMRS pension and OPEB 4,757 1,023 5,780 Total deferred inflows of resources 4,757 1,023 5,780 NET POSITION Net investment in capital assets 39,851,099 2,801,096 42,652,195 Unrestricted 21,859,675 2,582,267 24,441,942 TOTAL NET POSITION 61,710,774$ 5,383,363$ 67,094,137$ City of Colleyville, Texas Exhibit 8 Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Fiscal Year Ended September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 35 Water and Sewer Drainage Utility Fund Fund Total OPERATING REVENUES Metered water sales 10,352,045$ -$ 10,352,045$ Wastewater service charges 4,399,186 - 4,399,186 Drainage service charges - 1,000,521 1,000,521 Other charges and services 1,305,789 10,907 1,316,696 Miscellaneous 18,706 - 18,706 Total operating revenues 16,075,726 1,011,428 17,087,154 OPERATING EXPENSES Personnel services 2,013,905 490,549 2,504,454 Maintenance and contractual services 11,270,485 137,309 11,407,794 Material and supplies 203,093 78,672 281,765 Depreciation and amortization 1,976,159 147,146 2,123,305 Total operating expenses 15,463,642 853,676 16,317,318 OPERATING INCOME (LOSS)612,084 157,752 769,836 NON-OPERATING REVENUES (EXPENSES) Interest income 400,706 54,472 455,178 Interest expense - (10,150) (10,150) Total non-operating revenues (expenses) 400,706 44,322 445,028 Income (loss) before capital contributions and transfers 1,012,790 202,074 1,214,864 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital contributions 188,749 - 188,749 Transfers out (270,403) - (270,403) Total capital contributions and transfers (81,654) - (81,654) Change in net position 931,136 202,074 1,133,210 Net position, beginning of year 60,779,638 5,181,289 65,960,927 NET POSITION, END OF YEAR 61,710,774$ 5,383,363$ 67,094,137$ City of Colleyville, Texas Exhibit 9 Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2019 The Notes to the Financial Statements are an integral part of this statement. 36 Water and Sewer Drainage Utility Fund Fund Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 15,415,228$ 1,014,545$ 16,429,773$ Cash payments to suppliers for goods and services (10,972,708) (193,436) (11,166,144) Cash payments to employees for services (1,809,869) (442,080) (2,251,949) Net cash provided by operating activities 2,632,651 379,029 3,011,680 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers out (270,403) - (270,403) Net cash used in non-capital financing activities (270,403) - (270,403) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (902,111) (9,250) (911,361) Principal payments on bonds - (115,000) (115,000) Interest paid of debt - (10,648) (10,648) Net cash used in capital and related financing activities (902,111) (134,898) (1,037,009) CASH FLOWS FROM INVESTING ACTIVITIES (Purchase) sale of investments (5,301,282) (151,350) (5,452,632) Earnings on investments 414,639 53,867 468,506 Net cash provided by (used in) investing activities (4,886,643) (97,483) (4,984,126) Net change in cash and cash equivalents (3,426,506) 146,648 (3,279,858) Cash and cash equivalents, beginning of year 6,884,859 609,126 7,493,985 CASH AND CASH EQUIVALENTS, END OF YEAR 3,458,353$ 755,774$ 4,214,127$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income 612,084$ 157,752$ 769,836$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,976,159 147,146 2,123,305 Decrease (increase) in assets and deferred outflows of resources: Receivables (672,178) 3,117 (669,061) Inventory (29,854) - (29,854) Net pension asset 302,419 66,302 368,721 Deferred outflows - TMRS pension and OPEB (185,818) (44,257) (230,075) Increase (decrease) in liabilities and deferred outflows of resources: Accounts payable 531,624 20,911 552,535 Accrued liabilities (900) 1,634 734 Compensated absences 48,550 19,137 67,687 Customer deposits 11,680 - 11,680 Net pension liability 345,000 72,921 417,921 Total OPEB liability (441) (95) (536) Deferred inflows - TMRS pension and OPEB (305,674) (65,539) (371,213) Net cash provided by operating activities 2,632,651$ 379,029$ 3,011,680$ NON-CASH CAPITAL AND RELATED FINANCING Contributions of capital assets from developers 188,749$ -$ 188,749$ 37 Fiduciary Fund Financial Statements 38 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit 10 Employee Activity Fund and Sesquicentennial Fund Statement of Fiduciary Net Position September 30, 2019 The Notes to Financial Statements are an integral part of this statement. 39 Agency Fund ASSETS Cash and cash equivalents 20,861$ Investments 3,293 Accounts receivable 26 TOTAL ASSETS 24,180$ LIABILITIES Due to other agencies and individuals 24,180$ TOTAL LIABILITIES 24,180$ 40 This Page Intentionally Left Blank City of Colleyville, Texas Notes to the Basic Financial Statements 41 Note 1. Summary of Significant Accounting Policies The City of Colleyville Home Rule Charter was adopted by the voters at an election held on January 15, 1977. The City operates under a Council-Manager form of government. The accounting policies of the City of Colleyville, Texas (the City) conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of the more significant of such policies: A. Reporting Entity As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. Each discretely presented component unit, on the other hand, is reported in a separate column in the combined financial statements to emphasize it is legally separate from the government. Each blended component unit has a September 30 year-end. Blended Component Unit — The Colleyville Economic Development Corporation (CEDC) was incorporated on September 3, 1996, as a nonprofit industrial development corporation under the Development Corporation Act of 1979 (Act). The CEDC operates under a seven-member board of directors appointed by the City Council. Each of the directors shall be a resident of the City. The Corporation is organized exclusively for the purposes of benefiting and accomplishing public purposes of and to act on behalf of, the City, and the specific purposes for which the Corporation is organized. This includes municipal park improvements, the purchase of land and improvements for additional neighborhood parks, the construction of a community center and library. Although it is legally separate from the City, the CEDC is reported as if it were part of the primary government, because CEDC is financing public improvements and the City is the primary beneficiary of the services provided. Blended Component Unit — Colleyville Crime Control and Prevention District (the District) was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention District Act. The District is organized to act on behalf of the City for financing, development of crime control throughout the City. The District is governed by a seven-member board consisting of all members of the City Council. The District is reported as a part of the primary government because it provides services entirely for the City. Discretely Presented Component Unit — Colleyville Tax Increment Financing Reinvestment Zone Number One (the TIF) was formed to make public improvements, under the authority of the Tax Increment Financing Act. The TIF is governed by a nine-member board consisting of five members appointed by the City Council and one member each appointed by the four other participating taxing entities. The primary government appoints a voting majority of the unit's governing body and the City has a potential economic benefit from this unit. Therefore, the TIF is presented in the accompanying financial statements as a discretely presented component unit. Complete financial statements for the TIF may be obtained from the City of Colleyville Finance Department, 100 Main Street, Colleyville, Texas 76034. City of Colleyville, Texas Notes to the Basic Financial Statements 42 B. Government-wide Fund Financial Statements The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenue, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenue. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenue includes 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenue are reported instead as general revenue. Separate financial statements are provided for Governmental Funds, Proprietary Funds, and Fiduciary Funds, even though the latter are excluded from the government-wide financial statements. Major individual Governmental Funds and major individual Enterprise Funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the Proprietary Fund and Fiduciary Fund financial statements, except for Agency Funds, which have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenue to be available if collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, sales taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. City of Colleyville, Texas Notes to the Basic Financial Statements 43 Governmental Funds Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (except those accounted for in the proprietary fund type) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the City's Governmental Fund types: The City reports the following major Governmental Funds: The General Fund — is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Capital Projects Fund — is used to account for financial resources to be used for the acquisition or construction of general major capital facilities. Financing is provided primarily by the sale of general obligation bonds and developer contributions. The Debt Service Fund — is used to account for the acquisition of resources for, and the payment of, general long-term debt principal and interest, and related costs. The Colleyville Economic Development Fund — is used to account for the use of bond proceeds and sales tax revenues for municipal park improvements, the purchase of land and equipment for additional neighborhood parks and for the construction of a community center and library. Additionally, the City also reports the following funds: Special Revenue Funds — accounts for the revenues and expenditures associated with a special project or purpose. Proprietary Funds Proprietary Funds are used to account for activities that are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance. The City reports the following major Proprietary Funds: The Water and Wastewater Fund — is used to account for operations (a) that are financed and operated in a manner similar to private business enterprises — where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. This fund is used to account for water and wastewater operations. The Drainage Utility Fund — is used to account for the establishment and maintenance of drainage facilities within the municipal boundaries of the City. All activities necessary to provide such facilities are accounted for in this fund, included but not limited to, administration, operations, maintenance, billing and collections. City of Colleyville, Texas Notes to the Basic Financial Statements 44 Fiduciary Funds Agency Fund — Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent on behalf of others. Agency Funds are custodial in nature and do not present results of operations or have a measurement focus. The City has two Agency Funds: Employee Activity and the Sesquicentennial Fund. These funds are held for the benefit of City employees and to benefit the City's historical purposes. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City's water and wastewater function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenue reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenue. Likewise, general revenue includes all taxes. Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund's principal ongoing operations. The principal operating revenues of the City's Enterprise Funds are charges to customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. D. Cash and Cash Equivalents and Investments For purposes of the statement of cash flows, the Enterprise Fund considers all highly liquid investments (investments with original maturities less than 90 days, including restricted assets) to be cash equivalents. The City's cash and cash equivalents are considered to be cash on hand and demand deposits. Investments for the City are reported at fair value, except for the position in investment pools. The City's investment in pools are reported at the net asset value per share (which approximates fair value) even though it is calculated using the amortized cost method. E. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. The allowance for uncollectible accounts receivable for utility billing is estimated as a percentage of sales calculated based on historical experience. Ambulance receivables in excess of 180 days comprise the ambulance allowance for uncollectables. The allowance for uncollectable accounts for capias warrants is set at 90% of outstanding receivables. City of Colleyville, Texas Notes to the Basic Financial Statements 45 Property taxes are imposed nonexchange revenues. Assets from imposed nonexchange transactions are recorded when the entity has enforceable legal claim to the asset, or when the entity receives resources, whichever comes first. The enforceable legal claim date for property taxes is the assessment date. The assessment date has been designated in the enabling legislation as of October 1. The City's property tax is levied on the assessed value listed as of the prior January 1. Taxes are due upon receipt of the tax bill. All unpaid taxes become delinquent if not paid before February 1 of the current fiscal year. F. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of expendable supplies and vehicle repair parts. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. G. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, bridges, sidewalks and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition cost, which is the price that would be paid to acquire an asset with equivalent service potential at the acquisition date. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings15-50 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. All vacation and sick pay is accrued when incurred in the government-wide and proprietary fund financial statements. City of Colleyville, Texas Notes to the Basic Financial Statements 46 I. Long-term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. In the fund financial statements, the face amount of debt issued is reported as other financing sources for the governmental fund types. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as another financing source. Issuance costs, even if withheld from the actual net proceeds received, are reported as expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are charged to current operations rather than being deferred and amortized due to the relatively immaterial effect on the basic financial statements taken as a whole. J. Fund Balance Classification The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. Nonspendable items are not expected to be converted to cash or are not expected to be converted to cash within the next year. Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by resolution of the City Council, the City's highest level of decision making authority. These amounts cannot be used for any other purpose unless the Council removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. Assigned: This classification includes amounts that are constrained by the City's intent to be used for a specific purpose but are neither restricted nor committed. This is done through resolution of the City Council. This intent can be expressed by the Chief Financial Officer. 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. City of Colleyville, Texas Notes to the Basic Financial Statements 47 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 refunding – A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Pension/OPEB contributions after measurement date — These contributions are deferred and recognized in the following fiscal year. Difference in projected and actual earnings on pension assets and OPEB liabilities — This difference is deferred and amortized over a closed five year period. Difference in expected actual pension/OPEB experience — This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. In addition to liabilities, the balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has one type of item, which arises only under a modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from four sources: property taxes, municipal fines and ambulance fees, and a note payable from the component unit. These amounts are deferred and recognized as an inflow of resources in that period that the amounts become available. The City also had a deferred inflow of resources for the following: Difference in projected and actual earnings on pension assets and OPEB liabilities – The difference will be amortized over a closed five year period. City of Colleyville, Texas Notes to the Basic Financial Statements 48 N. Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. O. Risk Management Insurance coverage for property, liability and workers' compensation is provided by the Texas Municipal League Intergovernmental Risk Pool, a state insurance pool. Contributions to the Risk Pool for workers' compensation are based on the City's past claims history. The Risk Pool is self-sustaining through members' contributions and maintains insurance to limit risk of loss with an external insurance company. Settlement claims have not exceeded aggregate limits in the past three fiscal years. P. Pensions For purposes of measuring the net pension asset, pension related deferred outflows and inflows of resources, and pension expense, City specific information about its Fiduciary Net Position in the Texas Municipal Retirement System (TMRS) and additions to/deductions from the City's Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Information regarding the City's Total Pension Asset is obtained from TMRS through a report prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. Q. Other Post-Employment Benefits For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information has been determined based on the City’s actuary report. For this purpose, OPEB expense recognized each fiscal year is equal to the change in the total OPEB liability from the beginning of the year to the end of the year, adjusted for deferred recognition of certain changes in the liability. Benefit payments are treated as being equal to the employer’s yearly contributions for retirees. Information regarding the City’s Total OPEB Liability is obtained from TMRS through a report prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Note 2. Stewardship, Compliance and Accountability Budgetary Information The City Council follows these procedures in establishing budgetary data reflected in the basic financial statements: 1. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. City of Colleyville, Texas Notes to the Basic Financial Statements 49 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to September 30, the budget is legally enacted through passage of an ordinance. 4. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. 5. Formal budgetary integration is employed as a management control device during the year for the General, Colleyville Economic Development Fund, Crime District Fund, Debt Service, and Enterprise Funds. Budgetary control is maintained at the fund level. Internal budgets prepared for various boards are reviewed by the City Council for expenditures of other Special Revenue Funds. These budgeted expenditures are not formally adopted by the City Council. 6. Budgets for the General and the Debt Service Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Formal budgeted amounts are as amended by the City Council for the General, Colleyville Economic Development Fund, Crime District Fund, Debt Service and Enterprise Funds. 7. Budgetary data for the Capital Projects Fund has not been presented in the accompanying basic financial statements, as such funds are budgeted over the life of the respective project and not on an annual basis. Accordingly, formal budgetary integration of the Capital Projects Fund is not employed and comparison of actual results of operations to budgetary data for such fund is not presented. 8. Budgetary data for the Enterprise and Drainage Utility Funds has not been presented since the reporting on such budgets is not legally required. Note 3. Deposits and Investments In fiscal year 2016, the City adopted GASB Statement No. 72 (GASB 72), Fair Value Measurement and Application. GASB 72 was issued to address accounting and financial reporting issues related to fair value measurements. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. City of Colleyville, Texas Notes to the Basic Financial Statements 50 As of September 30, 2019, the City held the following fair value measurements: Value at September 30, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Percent of Total Investments City: Cash and cash equivalents: Cash deposits - City 15,193,185$ -$ -$ -$ Petty Cash - City 2,462 Cash deposits - trust and agency 20,861 - - - Investments not subject to fair value: Investment pools: TexPool 14,301,770 - - - 21% 28 TexStar 14,735,526 - - - 22% 30 Texas CLASS 9,673,420 - - - 14% 27 LOGIC 1,654,708 - - - 2% 34 Investments in certificates of deposits: Certificates of deposits 4,045,292 - - - Investments by fair value level: Federal Farm Credit Bonds 3,750,000 - 3,750,000 - 6% 100 Federal Home Loan Bank Bonds 2,593,786 - 2,593,786 - 4% 88 Freddie Mac 1,408,231 - 1,408,231 - 2% 319 Total cash and investments of the city 67,379,241 - 7,752,017 - Component unit: Cash and cash equivalents: Cash deposits 3,932,618 - - - Investments not subject to fair value: Investment pools: Texas CLASS 4,100,045 - - - 17% 55 TexPool 10,956,182 - - - 46% 30 TexStar 1,018,600 - - - 4% 28 Logic 809,844 - - - 3% 34 Investments by fair value level: Federal Farm Credit Bonds 1,255,000 - 1,255,000 - 5% 100 Federal Home Loan Bank Bonds 1,088,367 - 1,088,367 - 5% 100 Freddie Mac 514,528 - 514,528 - 2% 88 Total cash and investments of the component unit 23,675,184 - 2,857,895 - Total cash and investments of the reporting entity 91,054,425$ -$ 10,609,912$ -$ Fair Value Measurements Weighted Average Maturity (Days) 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. City of Colleyville, Texas Notes to the Basic Financial Statements 51 The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the City to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the City to invest in (1) obligations of the U. S. Treasury, certain U. S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) Mutual Funds, (8) investment pools, (9) guaranteed investment contracts, and (10) common trust funds. The Act also requires the City to have independent auditors perform test procedures related to investment practices as provided by the Act. The City is in substantial compliance with the requirements of the Act and with local policies. Investment Pools and non-negotiable Certificates of Deposit are measured at amortized cost or net asset value and are exempt from fair value reporting and therefore have been excluded from the hierarchy. The amounts for TexStar, Texas CLASS, Logic and TexPool (pooled investments) are reported as investments in the Statement of Net Position. TexPool is duly chartered and overseen by the State Comptroller’s Office, administered and managed by Federated Investors, Inc. State Street Bank serves as the custodial bank. The portfolio consists of U.S. Government securities; collateralized repurchase and reverse repurchase agreements; and AAA rated money market mutual funds. The investment pool transacts at a net asset value of $1.00 per share, has a weighted average maturity of 60 days or less and weighted average life of 120 days or less, investments held are highly rated by a nationally recognized statistical rating organization, have no more than 5% of portfolio with one issuer (excluding US government securities), and can meet reasonably foreseeable redemptions. The investment pool has a redemption notice period of one day and no maximum transaction amounts. The investment pools’ authorities may only impose restrictions on redemptions in the event of a general suspension of trading on major securities market, general banking moratorium or national or state emergency that affects the pools’ liquidity U.S. Government Agency Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Texas CLASS is an external investment pool measured at fair value, i.e. net asset value. The investment pool’s strategy is to seek preservation of principal, liquidity and current income through investment in a diversified portfolio of short term marketable securities. There are no unfunded commitments related to the investment pool. Texas CLASS has a redemption notice period of one day and may redeem daily. The investment pool’s authorities may only impose restrictions on redemptions in the event of a general suspension of trading on major securities market, general banking moratorium or national or state emergency that affects the pool’s liquidity. The Texas CLASS portfolio consists of U.S. Government securities; collateralized repurchase and reverse repurchase agreements; AAA rated money market mutual funds; and commercial paper. LOGIC is duly chartered by the State of Texas Interlocal Cooperation Act, is administered by Hilltop Securities, Inc. and J.P. Morgan Investment Management, Inc. (JPMIM), and managed by JPMIM, who provides custody and investment management. City of Colleyville, Texas Notes to the Basic Financial Statements 52 LOGIC's investment objectives are to seek preservation of principal, liquidity, and current income through investment in a diversified portfolio of short-term marketable securities. The portfolio will maintain a dollar-weighted average maturity that does not exceed 60 days and seeks to maintain a net asset value of $1.00 per share. LOGIC may invest in securities including: obligations of the United States or its agencies and instrumentalities, including the Federal Home Loan Banks; other obligations which are unconditionally guaranteed or insured by the U.S.; fully collateralized repurchase agreements with a defined termination date and unconditionally guaranteed or insured by the U.S. or its agencies and instrumentalities; SEC-registered money-market fund rated in the highest rating category by at least one nationally recognized statistical rating organization (NRSRO); and commercial paper as authorized under the Public Funds Investment Act. The investment pool has a redemption notice period of one day and no maximum transaction amounts. The investment pools’ authorities may only impose restrictions on redemptions in the event of a general suspension of trading on major securities market, general banking moratorium or national or state emergency that affects the pools’ liquidity. TexSTAR is duly chartered by the State of Texas Interlocal Cooperation Act, is administered by Hilltop Securities, Inc. and J.P. Morgan Investment Management, Inc. (JPMIM), and managed by JPMIM, who provides custody and investment management. The primary objectives of TexSTAR are, in order of priority, preservation and protection of principal, maintenance of sufficient liquidity to meet Participants’ needs, and yield. The portfolio will maintain a dollar-weighted average maturity that does not exceed 60 days and seeks to maintain a net asset value of $1.00 per share. TexSTAR may invest in securities including: obligations of the United States or its agencies and instrumentalities, including the Federal Home Loan Banks; other obligations which are unconditionally guaranteed or insured by the U.S.; fully collateralized repurchase agreements with a defined termination date and unconditionally guaranteed or insured by the U.S. or its agencies and instrumentalities; and SEC-registered no-load money-market fund which meet the requirements of the Public Funds Investment Act. The investment pool has a redemption notice period of one day and no maximum transaction amounts. The investment pools’ authorities may only impose restrictions on redemptions in the event of a general suspension of trading on major securities market, general banking moratorium or national or state emergency that affects the pools’ liquidity. Interest Rate Risk. In accordance with its investment policy, the government manages its exposure to declines in fair market values by limiting the average dollar weighted maturity of its investment portfolios to a maximum of 540 days. Custodial Credit Risk. The City maintains a cash and investment pool that combines cash of the various funds in order to maximize investment opportunities. The City's policy and state statutes require that all deposits in financial institutions be insured by the Federal Depository Insurance Corporation (FDIC) or fully collateralized as per the Public Funds Collateral Act. The City's deposits were fully insured or collateralized as required by state statutes as of September 30, 2019. Credit Risk. It is the City's policy to limit its investments to investment types with an investment quality rating not less than A or its equivalent by a nationally recognized statistical rating organization. The City's assets in investments meet the requirements as noted above. City of Colleyville, Texas Notes to the Basic Financial Statements 53 Note 4. Receivables Receivables as of year-end for the government's individual major funds, nonmajor funds and enterprise funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Water Debt Capital Non-Major and Drainage General Service Pro jects Governmental Sewer Fee Total Receivables: Accounts 357,315$ -$ 12,459$ 153,117$ 3,159,492$ 133,600$ 3,815,983$ Taxes 939,931 26,312 - - - - 966,243 Loans 135,750 645,000 - - - - 780,750 Gross receivables 1,432,996 671,312 12,459 153,117 3,159,492 133,600 5,562,976 Less allowance 255,540 - - - 23,331 - 278,871 Net total receivables 1,177,456$ 671,312$ 12,459$ 153,117$ 3,136,161$ 133,600$ 5,284,105$ Governmental Funds Enterprise Funds The City's property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real property and certain personal property located in the City. The assessed value, net of exemptions, upon which the fiscal 2019 levy was based, was $5,456,363,643. 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, 2019, was $0.3208 per $100 of assessed valuation. Taxes are due by January 31 following the levy date. Tax collections, including related penalties and interest, was $16,877,275 for the year ended September 30, 2019. Property taxes receivable at September 30, 2019, were $225,264. The appraisal of property within the City is the responsibility of a countywide appraisal district as required by legislation passed by the Texas Legislature. The appraisal district is required under such legislation to assess all property within the appraisal district on the basis of 100% of its appraised value and is prohibited from applying any assessment ratios. The value of property within the appraisal district must be reviewed every three years; however, the City may, at its own expense, require annual reviews of appraised values. The City may challenge appraised values established by the appraisal district through various appeals and, if necessary, legal action. City of Colleyville, Texas Notes to the Basic Financial Statements 54 Note 5. Capital Assets Capital asset activity for the year ended September 30, 2019, was as follows: Primary Government Beginning Capital Sales or Adj ustments/ Ending Balance Acquisitions Disposals Transfers Balance Governmental activities: Capital assets not being depreciated: Land 9,178,641$ -$ -$ -$ 9,178,641$ Construction-in-progress 4,663,882 2,387,216 - (5,480,065) 1,571,033 Total capital assets not being depreciated 13,842,523 2,387,216 - (5,480,065) 10,749,674 Capital assets being depreciated: Buildings and building improvements 50,400,558 28,541 - 945,489 51,374,588 Machinery and Equipment 14,018,330 757,768 (350,346) - 14,425,752 Improvements other than buildings 99,522,267 181,011 - 4,493,220 104,196,498 Total capital assets being depreciated 163,941,155 967,320 (350,346) 5,438,709 169,996,838 Accumulated depreciation: Buildings and building improvements (22,003,180) (1,465,074) - - (23,468,254) Machinery and Equipment (10,943,679) (1,162,578) 350,346 - (11,755,911) Improvements other than buildings (32,248,140) (2,139,640) - - (34,387,780) Total accumulated depreciation (65,194,999) (4,767,292) 350,346 - (69,611,945) Total capital assets being depreciated, net 98,746,156 (3,799,972) - 5,438,709 100,384,893 Governmental activities capital assets, net 112,588,679$ (1,412,756)$ -$ (41,356)$ 111,134,567$ Beginning Capital Sales or Adj ustments/ Ending Balance Acquisitions Disposals Transfers Balance Business-Type activities: Capital assets not being depreciated: Land 304,839$ -$ -$ -$ 304,839$ Construction in progress 1,522,362 - - (1,240,619) 281,743 Total capital assets not being depreciated 1,827,201 - - (1,240,619) 586,582 Capital assets being depreciated: Buildings and building improvements 53,922 - - - 53,922 Machinery and equipment 2,264,969 34,341 - - 2,299,310 Improvements other than buildings 80,398,064 1,065,770 - 1,240,619 82,704,453 Total capital assets being depreciated 82,716,955 1,100,111 - 1,240,619 85,057,685 Accumulated depreciation: Buildings and building improvements (52,061) (86,683) - - (138,744) Machinery and equipment (1,802,930) (135,617) - - (1,938,547) Improvements other than buildings (38,765,928) (1,900,288) - - (40,666,216) Total accumulated depreciation (40,620,919) (2,122,588) - - (42,743,507) Total capital assets being depreciated, net 42,096,036 (1,022,477) - 1,240,619 42,314,178 Business type activities capital assets, net 43,923,237$ (1,022,477)$ -$ -$ 42,900,760$ City of Colleyville, Texas Notes to the Basic Financial Statements 55 Component Unit Beginning Capital Sales or Adjustments/ Ending Balance Acquisitions Disposals Transfers Balance Component unit activities: Capital assets not being depreciated: Land 6,413,874$ -$ -$ -$ 6,413,874$ Construction-in-progress 3,876,174 2,101,906 - - 5,978,080 Total capital assets not being depreciated 10,290,048 2,101,906 - - 12,391,954 Capital assets being depreciated: Improvements other than buildings 10,923,574 675,184 - - 11,598,758 Total capital assets being depreciated 10,923,574 675,184 - - 11,598,758 Accumulated depreciation: Improvements other than buildings (771,916) (241,606) - - (1,013,522) Total accumulated depreciation (771,916) (241,606) - - (1,013,522) Total capital assets being depreciated, net 10,151,658 433,578 - - 10,585,236 Component unit activities capital assets, net 20,441,706$ 2,535,484$ -$ -$ 22,977,190$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 387,172$ Public safety 1,139,167 Public works 2,240,186 Culture and recreation 1,000,767 Total depreciation expense - governmental activities 4,767,292$ Business-type activities: Water and sewer 1,975,313$ Drainage utility 147,275 2,122,588$ City of Colleyville, Texas Notes to the Basic Financial Statements 56 Construction Commitments The government has active construction projects as of September 30, 2019. The major projects are listed as follows: Remaining Project Spent-to-date Commitment Frontier Court Project 107,325$ 282,914$ McDonwell School Road and Westcoat Drive Roundabout - design 184,940 28,784 Roberts Road - Design 85,515 177,196 LD Lockett Designated Right Turn Lane 11,899 59,541 Generator at City Hall 127,608 287,213 Tree Restoration Project 73,330 3,667 Water Project 10: Apple Valley 46,650 3,000 SCADA Upgrade 22,244 75,059 Water Tower Rehab/Demo 143,008 1,501 Green Meadow Creek Mitigation 9,250 33,750 Glade Road Phase 2,3,4 Design 951,716 146,351 Colleyville Plaza Renovation 1,848,897 1,178,046 Cheek-Sparger Road Improvements 297,964 127,699 Westcoat/John McCain Roundabout 4,800 61,711 Drainage Master Plan 197,387 243,394 State Highway 26 Corridor Enhancements - Design 414,154 289,846 Total 4,526,687$ 2,999,671$ Note 6. Interfund Transactions The composition of interfund transfers as of September 30, 2019, is as follows: Nonmajor Debt Capital Government General Service Projects Funds Total Transfer out: General fund -$ -$ 3,908,080$ 514,706$ 4,422,786$ Nonmajor governmental funds - 509,100 - 10,000 519,100 Water and wastewater 226,117 - - 44,286 270,403 Total 226,117$ 509,100$ 3,908,080$ 568,992$ 5,212,289$ Transfer in The most significant interfund transfers include the transfer of $3,908,080 from the General Fund to the Capital Projects and no major governmental funds represents transfers for capital replacement. The transfer of $509,100 from the Crime Control District to the Debt Service Fund is for the repayment of debt. All principal and interest is paid from the Debts Service Fund. The $226,117 from the water and wastewater fund to the General Fund is a budgeted transfer for the fund’s share of administrative expenses. City of Colleyville, Texas Notes to the Basic Financial Statements 57 Note 7. Long-term Liabilities General Obligation Bonds The government issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. The original amount of general obligation bonds issued in prior years was $35,540,000. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. Long-term liability activity for the year ended September 30, 2019, was as follows: Amount Beginning Ending Due within Balance Additions Reductions Balance One Year Governmental activities: General obligation bonds and certificates of obligation 5,665,000$ -$ (1,510,000)$ 4,155,000$ 1,045,000$ Sales tax revenue bonds 5,680,000 - (445,000) 5,235,000 460,000 Bond premiums 235,299 - (10,020) 225,279 16,565 Capital leases payable 637,365 - (193,690) 443,675 84,927 Compensated absences 1,398,579 2,560,782 (2,003,440) 1,955,921 365,475 Net pension liability - 2,932,903 - 2,932,903 - Total OPEB liability 437,789 - (3,721) 434,068 - Total governmental activities 14,054,032$ 5,493,685$ (4,165,871)$ 15,381,846$ 1,971,967$ Amount Beginning Ending Due within Balance Additions Reductions Balance One Year Business-type activities: Revenue bonds and certificates of obligation 365,000$ -$ (115,000)$ 250,000$ 125,000$ Bond premiums - - - - - Compensated absences 114,962 233,642 (165,955) 182,649 15,654 Net pension liability - 417,921 - 417,921 - Total OPEB liability 63,107 - (536) 62,571 - Total business-type activities 543,069$ 651,563$ (281,491)$ 913,141$ 140,654$ Beginning Ending Due within Balance Additions Reductions Balance One Year Component unit: Note payable to primary government 1,270,000$ -$ (625,000)$ 645,000$ 645,000$ Bond premiums 48,081 - (24,040) 24,041 24,041 Total component unit 1,318,081$ -$ (649,040)$ 669,041$ 669,041$ For the governmental activities, compensated absences are generally liquidated by the General Fund. City of Colleyville, Texas Notes to the Basic Financial Statements 58 Long-term liabilities at September 30, 2019, consisted of the following: Final Interest Business- General Obli gation Bonds and Certificates of Obligation Maturity Rates Governmental Type $2,945,000 Series 2011, General Obli gation Refunding Bonds 2020 2.0 - 4.0% 170,000$ -$ $6,225,000 Series 2016, General Obli gation Refunding Bonds 2027 2.0 - 3.0% 3,985,000 - 4,155,000$ -$ Final Interest Business- Governmental Revenue Bonds Maturity Rates Governmental Type $7,330,000 Series 2013, Refunding and Improvement Sales Tax Revenue Bonds 2029 2.88% 5,235,000$ -$ $1,550,000 Series 2011, Waterworks and Wastewater System Refunding Bonds 2021 3.47% - 250,000 5,235,000$ 250,000$ The ordinances authorizing the issuance of Waterworks and Wastewater System Revenue Bonds created the Interest and Sinking Fund and Reserve Fund. The gross revenue of the waterworks and wastewater system, after deduction of reasonable expenses of operations and maintenance, are pledged to such funds in amounts equal to the total annual principal and interest requirements of the bonds and amounts required to maintain the Reserve Fund. At September 30, 2019, the City was in compliance with these requirements. The City's component unit, the Tax Increment Financing District, long-term liabilities at September 30, 2019, consisted of the following: Tax Increment Financing District Final Interest Component Notes Payable Maturity Rates Unit $2,480,000 Note payable to primary government 2020 2.0 - 4.0% 645,000$ 645,000$ City of Colleyville, Texas Notes to the Basic Financial Statements 59 Governmental-type Activities General Obligation Bonds and Certificates of Obligation Fiscal Years Ending September 30, Principal Interest Total 2020 1,045,000$ 91,425$ 1,136,425$ 2021 410,000 68,750 478,750 2022 425,000 56,225 481,225 2023 435,000 43,325 478,325 2024 445,000 32,350 477,350 2025-2027 1,395,000 42,250 1,437,250 Total 4,155,000$ 334,325$ 4,489,325$ Governmental Activities General Revenue Bonds Fiscal Years Ending September 30, Principal Interest Total 2020 460,000$ 144,144$ 604,144$ 2021 470,000 130,752 600,752 2022 490,000 130,752 620,752 2023 500,000 102,672 602,672 2024 510,000 88,128 598,128 2025-2029 2,805,000 206,712 3,011,712 Total 5,235,000$ 803,160$ 6,038,160$ Governmental Activities Business-type Activities Revenue Bonds and Certificates of Obligation Fiscal Years Ending September 30, Principal Interest Total 2020 125,000$ 6,506$ 131,506$ 2021 125,000 2,169 127,169 Total 250,000$ 8,675$ 258,675$ Business-Type Activities City of Colleyville, Texas Notes to the Basic Financial Statements 60 Discretely Presented Component Unit – Tax Increment Financing Fund Revenue Bonds and Certificates of Obligation Fiscal Years Ending September 30, Principal Interest Total 2020 645,000$ 9,675$ 654,675$ Total 645,000$ 9,675$ 654,675$ Tax Increment Financing Fund Capital Leases The City has entered into lease agreements as lessee for financing and acquisition of vehicles and equipment for public safety. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of its future minimum lease payments as of the inception date. The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2019, were as follows: Fiscal Years Ending September 30, 2020 93,674$ 2021 95,219 2022 96,818 2023 48,484 2024 48,484 2025-2027 145,650 Total minimum lease payments 528,329 Less: amount representing interest (84,654) Present value of minimum lease payments 443,675$ Governmental Activities Note 8. Defined Benefit Pension Policies Plan Descriptions The City participates as one of 887 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. City of Colleyville, Texas Notes to the Basic Financial Statements 61 All eligible employees of the City are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the City-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member's deposits and interest. A summary of plan provisions for the City are as follows: Employee deposit rate 7% Matching ratio (City to employee) 2 to 1 Years required for vesting 5 Service retirement eligibility Twenty years to any age, five years at age 60 and above Updated service credit 100% repeating, transfers Annuity increase to retirees 0% of CPI Employees Covered by Benefit Terms At the December 31, 2018 valuation and measurement date, the following employees were covered by the benefit –terms: Inactive employees or beneficiaries currently receiving benefits 136 Inactive employees entitled to but not yet receiving benefits 149 Active employees 177 462 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 annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 7% of their annual gr oss earnings during the fiscal year. The contribution rates for the City were 8.82% and 8.72% in calendar years 2018 and 2019, respectively. The city's contributions to TMRS for the year ended September 30, 2019, were $1,175,648, and were equal to the required contributions. City of Colleyville, Texas Notes to the Basic Financial Statements 62 Net Pension Liability/(Asset) The City's Net Pension Liability/(Asset) was measured as of December 31, 2018, and the Total Pension Liability/(Asset) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial Assumptions The Total Pension Liability/(Asset) in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 3.00% per year Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. Based on the size of the city, rates are multiplied by a factor of 100%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustments are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year-set-forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four year period from December 31, 2010 to December 31, 2014. They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post-retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal Actuarial cost method and a one-time change to the amortization policy. Plan assets are manages on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. City of Colleyville, Texas Notes to the Basic Financial Statements 63 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These rangers are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of arithmetic real rates of return for each major assets class in fiscal year 2019 are summarized in the following table: Long-Term Expected Real Tar get Rate of Return Asset Class Allocation (Arithmetic) Domestic equity 17.5% 4.30% International equity 17.5% 6.10% Core fixed income 10.0% 1.00% Non-core fixed income 20.0% 3.39% Real return 10.0% 3.78% Real estate 10.0% 4.44% Absolute return 10.0% 3.56% Private equity 5.0% 7.75% T otal 100.0% Discount Rate The discount rate used to measure the Total Pension Liability/(Asset) was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statue. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the Total Pension Liability/(Asset). City of Colleyville, Texas Notes to the Basic Financial Statements 64 Changes in the Net Pension Liability/(Asset) Total Plan Net Pension Fiduciary Pension Liability(Asset )Net Position Liability(Asset ) (a)(b)(a) - (b) Balance at December 31, 2017 55,765,880$ 58,658,250$ (2,892,370)$ Chan ges for the year: Service cost 2,067,935 - 2,067,935 Interest 3,748,186 - 3,748,186 Change of benefit terms - - - Difference between expected and actual experience 713,928 - 713,928 Changes of assumptions - - - Contributions - employer - 1,159,516 (1,159,516) Contributions - employee - 920,251 (920,251) Net investment income - (1,757,178) 1,757,178 Benefit payments, including refunds of employee contributions (2,542,340) (2,542,340) - Administrative expense - (33,960) 33,960 Other changes - (1,774) 1,774 Net changes 3,987,709 (2,255,485) 6,243,194 Balance at December 31, 2018 59,753,589$ 56,402,765$ 3,350,824$ Increase (Decrease) The following presents the net pension liability/(asset) of the City, calculated using the discount rate of 6.75%, as well as what the City's net pension liability would be if it were calculated using a discount rate that is one-percentage-point lower (5.75%) or one-percentage-higher (7.75%) than the current rate: 1% Decrease 1% Increase in Discount Discount in Discount Rate (5.75%)Rate (6.75%)Rate (7.75%) Net pension liability(asset )11,642,653$ 3,350,824$ (3,479,184)$ 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, 2019, the City recognized pension expense of $2,596,090. The General Fund, Capital Projects Fund, Colleyville Economic Development Fund, Water and Sewer Fund, Drainage Utility Fund, Crime District Fund, and Juvenile Case Manger Fund have been used to liquidate pension liabilities. City of Colleyville, Texas Notes to the Basic Financial Statements 65 At September 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience 626,833$ (8,952)$ Changes in actuarial assumptions 151,275 - Difference between proj ected and actual investment earnings 3,035,690 - Contributions subsequent to the measurement date 886,669 - Total 4,700,467$ (8,952)$ $886,669 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability/(asset) for the measurement year ending December 30, 2018 (i.e. recognized in the City’s financial statements for the year ended September 30, 2020). Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Net Deferred Outflows Years Ended (Inflows) of December 30, Resources 2019 1,438,756$ 2020 612,215 2021 581,451 2022 1,172,424 2023 - Total 3,804,846$ Note 9. Other Postemployment Benefits Plan Description The City participates in a defined benefit group-term life insurance plan known as the Supplemental Death Benefits Fund (SDBF) administered by the Texas Municipal Retirement System (TMRS). The City has elected, by ordinance, to participate in this program and provide group-term life insurance coverage for their active members and retirees. As the SDBF covers both active and retiree participants, with no segregation of assets, the SDBF is considered to be a single-employer unfunded OPEB plan. Membership in the plan at December 31, 2018, the date of the latest actuarial valuation, consists of the following: Inactive employees currently receiving benefits 91 Inactive employees entitled to but not yet receiving benefits 17 Active employees 177 Total 285 City of Colleyville, Texas Notes to the Basic Financial Statements 66 Valuation of Assets For purposes of calculating the Total OPEB Liability, the plan is considered to be unfunded and therefore no assets are accumulated for OPEB. Actuarial Assumptions: The OPEB Liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% Salary i ncreases 3.50% to 10.50 % i ncludi ng i nflati on Di scount rate 3.71% Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. Based on the size of the city, rates are multiplied by a factor of 100%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustments are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year-set-forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four year period from December 31, 2010 to December 31, 2014. They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post-retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method. Discount Rate Because the Supplemental Death Benefits Fund is considered an unfunded trust under GASB Statement No. 75, the relevant discount rate for calculating the Total OPEB Liability is based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of the measurement date. OPEB Liability Balance at December 31, 2017 500,896$ Chan ges for the year: Service cost 26,293 Interest 16,950 Change of benefit terms - Difference between expected and actual experience (5,282) Changes of assumptions (38,274) Benefit payments, including refunds of employee contributions (3,944) Net changes (4,257) Balance at December 31, 2018 496,639$ City of Colleyville, Texas Notes to the Basic Financial Statements 67 The following presents the OPEB liability of the City, calculated using the discount rate of 3.71%, as well as what the City's net pension liability would be if it were calculated using a discount rate that is one-percentage-point lower (2.71%) or one-percentage-higher (4.71%) than the current rate: 1% Decrease in Discount Discount 1% Increase in Discount (2.71%)Rate (3.71%)(4.71%) Total OPEB liability 600,488$ 496,639$ 416,712$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB. For the year ended September 30, 2019, the City recognized OPEB expense of $42,956. The General Fund, Capital Projects Fund, Colleyville Economic Development Fund, Water and Sewer Fund, Drainage Utility Fund, Crime District Fund, and Juvenile Case Manger Fund have been used to liquidate OPEB liabilities. At September 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred outflows of Resources Deferred inflows of Resources Differences between expected and actual experience 28,935$ (32,422)$ Changes in assumptions and other inputs - (4,474) Contributions made subsequent to measurement date 3,050 - Total 31,985$ (36,896)$ $3,050 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability for the measurement year ending December 30, 2018 (i.e. recognized in the City’s financial statements for the year ended September 30, 2020). Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Outflows Years Ending (Inflows) of December 30, Resources 2019 (287)$ 2020 (287) 2021 (287) 2022 (287) 2023 (3,217) Thereafter (3,596) Total (7,961)$ City of Colleyville, Texas Notes to the Basic Financial Statements 68 Note 10. Water and Wastewater Contracts The City has two contracts with the Trinity River Authority of Texas (TRA) for the purchase of treated water and for the transportation, treatment and disposal of sanitary sewage and other waste. The initial term of the contracts are 35 years (water — April 2014) and 50 years (wastewater — November 2023), however both contain language that they will continue in effect until all related bonds and refunding bonds in lieu of debt have been paid. While the provisions of each of the contracts vary, each contract basically requires the City to pay varying amounts based on the costs associated with water purchased and sewage transported and/or treated and disposed. The cost includes the City's proportionate share of TRA's operating and maintenance expenses, related debt service costs, and certain other miscellaneous charges. Purchases of treated water and charges for the transportation, treatment and disposal of sewage and other wastes during fiscal year 2019 amounted to approximately $8,151,943 and $2,817,036, respectively. Note 11. Contingent Liabilities The City has been named as a defendant or co-defendant in a number of legal actions. While the outcome of these cases is not known at this time, City management believes that any awards to insured parties which must be paid in excess of amounts covered by insurance will not be material to the financial position of the City. Note 12. Risk Financing and Insurance The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During the fiscal year 1974, the City joined the Texas Municipal League Workers Compensation Joint Insurance Fund for risks related to employees. During the fiscal year 1992, the City joined the Texas Municipal League Joint Insurance Fund for risks related to general liability, property and errors and omissions. Premiums are paid to the Pool, which retains a limit of loss. Reinsurance companies insure the risks beyond those limits. The City retains, as a risk, only the deductible amount of each policy. There have been no significant reductions in insurance coverage and no settlements exceeded insurance coverage in the past three fiscal years. Note 13. Tax Abatements The City negotiates Chapter 380 sales tax rebate agreements on an individual basis. The City has tax rebate agreements with one entity as of September 30, 2019. The agreement states that the company desires to purchase and use new building materials within the City to generate additional sales and use tax revenue for the City. Sales taxes abated under this agreement was 80% for a total of $11,041 for the year ended September 30, 2019. City of Colleyville, Texas Notes to the Basic Financial Statements 69 Note 14. Restatement of Fund Balance and Net Position In fiscal year 2017, the CEDC was awarded a cost reimbursement grant from North Central Texas Council of Governments (NCTCOG). The CEDC incurred costs related to the grant in fiscal year 2015. The reimbursement was not received by CEDC until FY 2019. This resulted in revenue that was not captured in the proper reporting period. As of September 30, 2018, the revenue and fund balance/net position of the CEDC and governmental activities of the City were understated by $174,800. The changes to revenue and fund balance/net position are as follows: Colleyville Economic Governmental Development Activities Fund balance/net position, September 30, 2018, as previously presented 4,471,253$ 144,765,446$ Increase in grants/contributions revenue 174,800 - Increase in program revenues- operating grants and contributions - 174,800 Fund balance/net position, September 30, 2018, as restated 4,646,053$ 144,940,246$ Note 15. New Accounting Pronouncements The GASB pronouncements effective in fiscal year 2019 and 2020 are listed as follows: The GASB issued Statement No. 83, Certain Asset Retirement Obligations, in November 2016. This statement establishes criteria for determining the timing and pattern of recognition of a liability and a corresponding deferred outflow of resources for asset retirement obligations. This standard became effective for the City in fiscal year 2019. The implementation had no effect on the City’s financial statements. The GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Debt Borrowings and Direct Placements, in April 2018. This statement improves the information that is disclosed in noted to the government financial statements related to debt, including direct borrowings and direct placements. This standard became effective for the City in fiscal year 2019. The implementation had no effect on the City’s financial statements. The GASB issued Statement No. 84, Fiduciary Activities, in January 2017. This statement establishes standards of accounting and financial reporting for fiduciary activities. This standard becomes effective for the City in fiscal year 2020. This City has not yet determined the impact of this statement. The GASB issued Statement No. 87, Leases, in June 2017. This Statement established standards of accounting and financial reporting for lease by lessees and lessors. This standard becomes effective for the City in fiscal year 2021. The City has not yet determined the impact of this statement. The GASB issued Statement No. 89, Accounting for interest Cost Incurred before the End of a Construction Period. This Statement establishes objectives to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period, and to simplify accounting for interest cost incurred before the end of a construction period. This standard becomes effective for the City in fiscal year 2021. The City has not yet determined the impact of this statement. 70 This Page Intentionally Left Blank 71 Required Supplementary Information 72 This Page Intentionally Left Blank 73 Budgetary Comparison Schedules City of Colleyville, Texas Exhibit A-1 General Fund Budgetary Comparison Schedule (GAAP Basis) For the Fiscal Year Ended September 30, 2019 See Notes to the Budgetary Comparison Schedules 74 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 20,435,867$ 20,435,867$ 21,109,864$ 673,997$ Fines and forfeitures 822,604 822,604 702,909 (119,695) Licenses, permits and fees 993,900 993,900 1,141,959 148,059 Intergovernmental 159,390 159,390 159,390 - Charges for services 1,352,983 1,352,983 1,442,807 89,824 Investment earnings 55,000 55,000 376,662 321,662 Miscellaneous 60,100 60,100 38,807 (21,293) TOTAL REVENUES 23,879,844 23,879,844 24,972,398 1,092,554 EXPENDITURES Current: General government 4,303,358 4,303,358 3,773,064 530,294 Community development and engineering 1,506,640 1,506,640 1,366,898 139,742 Fire and rescue 5,552,087 5,552,087 5,470,304 81,783 Leisure services 2,648,110 2,648,110 2,518,475 129,635 Maintenance 755,851 755,851 741,907 13,944 Municipal court 443,419 443,419 432,537 10,882 Police services 5,063,010 5,063,010 4,780,246 282,764 Streets and drainage 1,743,307 1,743,307 1,537,425 205,882 Capital outlay 14,000 14,000 65,152 (51,152) TOTAL EXPENDITURES 22,029,782 22,029,782 20,686,008 1,343,774 Excess of revenues over expenditures 1,850,062 1,850,062 4,286,390 2,436,328 OTHER FINANCING SOURCES (USES) Proceeds from the sale of property 5,000 5,000 14,116 9,116 Transfers in 226,117 226,117 226,117 - Transfers out (2,014,706) (2,014,706) (4,422,786) (2,408,080) TOTAL OTHER FINANCING SOURCES (USES)(1,783,589) (1,783,589) (4,182,553) (2,398,964) NET CHANGE IN FUND BALANCE 66,473 66,473 103,837 37,364 FUND BALANCES, beginning of year 9,655,499 9,655,499 9,655,499 - FUND BALANCES, end of year 9,721,972$ 9,721,972$ 9,759,336$ 37,364$ Budgeted Amounts City of Colleyville, Texas Exhibit A-2 Colleyville Economic Development Fund Budgetary Comparison Schedule (GAAP Basis) For the Fiscal Year Ended September 30, 2019 See Notes to the Budgetary Comparison Schedules 75 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 1,907,400$ 1,907,400$ 1,943,228$ 35,828$ Investment earnings 9,273 9,273 44,900 35,627 Total revenues 1,916,673 1,916,673 1,988,128 71,455 EXPENDITURES General government 80,666 80,666 76,039 4,627 Leisure services 637,827 637,827 833,603 (195,776) Capital outlay 1,425,195 1,425,195 972,245 452,950 Debt service: Principal retirement 602,176 602,176 445,000 157,176 Interest and fiscal charges - - 157,176 (157,176) Total expenditures 2,745,864 2,745,864 2,484,063 261,801 Excess (deficiency) of revenues over (under) expenditures (829,191) (829,191) (495,935) 333,256 Net change in fund balance (829,191) (829,191) (495,935) 333,256 FUND BALANCE, beginning of year 4,646,053 4,646,053 4,646,053 - FUND BALANCE, end of year 3,816,862$ 3,816,862$ 4,150,118$ 333,256$ Budgeted Amounts 76 This Page Intentionally Left Blank City of Colleyville, Texas Notes to the Budgetary Comparison Schedules For the Fiscal Year Ended September 30, 2019 77 Budgetary Data The City Council adheres to the following procedures in establishing the budgets reflected in the financial statements: 1. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayers' comments. 3. Prior to September 30, the budget is legally enacted through passage of an ordinance. 4. Annual budgets are legally adopted for the General Fund, Debt Service Fund, the Colleyville Economic Development Fund, and the Crime District Fund all on a basis consistent with accounting principles generally accepted in the United States of America. Formal budgetary integration is not employed for Proprietary Funds. However, the City does adopt an annual budget for those funds for managerial control. Budgetary data for the Capital Projects Fund has not been presented in the budgetary comparison schedules, as such funds are budgeted over the life of the respective project and not on an annual basis. Accordingly, formal budgetary integration is not employed for the Capital Projects Funds. 5. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. 6. Expenditures in excess of appropriations for the year ended September 30, 2019 were: General Fund: Capital Outlay ($51,152) The General Fund capital outlay expenditures exceeded appropriations by $51,152 mainly due to the $33,306 computer equipment for the conference room and $12,116 computer equipment for community development. This overage was funded by underspending in other functions. City of Colleyville, Texas Exhibit A-3 Schedule of Changes in Net Pension Liability and Related Ratios Texas Municipal Retirement System Last Five Measurement Years 78 Measurement Measurement Measurement Measurement Measurement Year Year Year Year Year 2018 2017 2016 2015 2014 Total pension liability: Service cost 2,067,935$ 2,045,941$ 1,920,420$ 1,820,192$ 1,598,908$ Interest 3,748,186 3,528,308 3,302,291 3,149,676 2,938,763 Changes of benefit terms - - - - - Difference between expected and actual experience 713,928 19,139 205,568 (55,444) 136,216 Change in assumptions - - - 937,119 - Benefit payments, including refunds of employee contributions (2,542,340) (2,151,523) (2,133,755) (1,814,665) (1,728,299) Net change in total pension liability 3,987,709 3,441,865 3,294,524 4,036,878 2,945,588 Total pension liability - beginning 55,765,880 52,324,015 49,029,491 44,992,613 42,047,025 Total pension liability - ending (a)59,753,589 55,765,880 52,324,015 49,029,491 44,992,613 Plan fiduciary net position: Contributions - employer 1,159,516 1,082,013 922,484 903,631 745,874 Contributions - employee 920,251 898,468 851,897 822,553 763,324 Net investment income (1,757,178) 7,166,092 3,298,224 72,103 2,657,437 Benefit payments, including refunds of employee contributions (2,542,340) (2,151,523) (2,133,755) (1,814,665) (1,728,299) Administrative expense (33,959) (37,136) (37,249) (43,918) (27,747) Other (1,774) (1,882) (2,007) (2,170) (2,281) Net change in plan fiduciary net position (2,255,485) 6,956,032 2,899,594 (62,466) 2,408,308 Plan fiduciary net position - beginning 58,658,250 51,702,218 48,802,624 48,865,090 46,456,782 Plan fiduciary net position - ending (b)56,402,765 58,658,250 51,702,218 48,802,624 48,865,090 Net pension liability(asset) - ending (a) - (b)3,350,824$ (2,892,370)$ 621,797$ 226,867$ (3,872,477)$ Plan fiduciary net position as a percentage of total pension liability(asset)94.39% 105.19% 98.81% 99.54% 108.61% Covered payroll 13,146,439$ 12,835,255$ 12,169,964$ 11,750,753$ 10,904,635$ Net pension liability(asset) as a percentage of covered payroll 25.49% -22.53% 5.11% 1.93% -35.51% Note: Only five years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ information will be displayed as it becomes available.” City of Colleyville, Texas Exhibit A-4 Schedule of Contributions Texas Municipal Retirement System Last Six Fiscal Years 79 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 2016 2015 2014 Actuarially determined contribution 2,596,092$ 1,538,670$ 1,048,848$ 941,907$ 868,363$ 738,034$ Contribution in relation of the actuarially determined contribution 2,596,092 1,538,670 1,048,848 941,907 868,363 738,034 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ Covered payroll 13,389,846$ 13,188,135$ 12,528,384$ 12,281,471$ 11,640,489$ 10,707,890$ Contributions as a percentage of covered payroll 19.39% 11.67% 8.37% 7.67% 7.46% 6.89% Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the City’s fiscal year as opposed to the time period covered by the measurement date. Note: Only six years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10- year schedules that are required to be presented as required supplementary information may be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ information will be displayed as it becomes available.” City of Colleyville, Texas Notes to Texas Municipal Retirement System- Net Pension Liability Required Supplementary Information For the Fiscal Year Ended September 30, 2019 80 Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 25 years Asset Valuation Method 10 Year smoothed market; 15% soft corridor Inflation 2.50% Salary Increases 3.50% to 10.5% including inflation Investment Rate of Return 6.75% Retirement Age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2015 valuation pursuant to an experience study of the period 2010 - 2014. Mortality RP2000 Combined Mortality Table with Blue Collar Adj ustment with male rates multiplied by 109% and female rates multiplied by 103% and proj ected on a fully generational basis with scale BB Other Information There were no benefit changes during the year. City of Colleyville, Texas Exhibit A-5 Schedule of Changes in Total OPEB Liability and Related Ratios Texas Municipal Retirement System Last Two Years 81 Measurement Measurement Year 2018 Year 2017 Total OPEB liability: Service cost 26,293$ 21,820$ Interest 16,950 16,399 Changes of benefit terms - - Difference between expected and actual experience (5,282) - Change in assumptions (38,274) 41,681 Benefit payments, including refunds of employee contributions (3,944) (3,851) Net changes (4,257) 76,049 Net OPEB liability - beginning 500,896 424,847 Net OPEB liability - ending 496,639$ 500,896$ Covered payroll 13,146,439$ 12,835,255$ Net OPEB liability as a percentage of covered payroll 3.78% 3.90% Note: Only two years of data is presented in accordance with GASB #75. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ information will be displayed as it becomes available.” City of Colleyville, Texas Notes to Texas Municipal Retirement System- Total OPEB Liability Required Supplementary Information For the Fiscal Year Ended September 30, 2019 82 Inflation 2.50% Salary Increases 3.50% to 10.5% including inflation Discount Rate* 3.71% Retirees' share of benefit-related cost $0 Administrative expenses Mortality rates - service retirees Mortality rates - disabled retirees All admi ni strati ve expenses are pai d through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68. RP2000 Combi ned Mort ality Tabl e with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a fully generational basis with scale RP2000 Combi ned Mort ality Tabl e with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% with a 3 year set-forward for both males and females. The rates are projected on a fully generational basis with scale BB to account for future mortality improvements subject to the 3% floor. 83 Combining and Individual Fund Financial Statements and Schedules 84 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit B-1 Debt Service Fund Budgetary Comparison Schedule (GAAP Basis) For the Fiscal Year Ended September 30, 2019 85 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 692,115$ 692,115$ 831,406$ 139,291$ Intergovernmental 653,725 653,725 653,725 - Investment earnings 5,000 5,000 12,162 7,162 Total revenues 1,350,840 1,350,840 1,497,293 146,453 EXPENDITURES Principal retirement 1,858,440 1,858,440 1,703,690 154,750 Interest and fiscal charges 1,500 1,500 155,812 (154,312) Total expenditures 1,859,940 1,859,940 1,859,502 438 Deficiency of revenues under expenditures (509,100) (509,100) (362,209) 146,891 OTHER FINANCING SOURCES (USES) Transfers in 509,100 509,100 509,100 - Total other financing sources (uses )509,100 509,100 509,100 - Net change in fund balance - - 146,891 146,891 FUND BALANCE, beginning of year 697,975 697,975 697,975 - FUND BALANCE, end of year 697,975$ 697,975$ 844,866$ 146,891$ Budgeted Amounts 86 This Page Intentionally Left Blank 87 Non-Major Governmental Funds Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Voluntary Park — This fund is used to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support park activities. Voluntary Library — This fund is used to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support library activities. Police Asset Forfeiture —This fund is used to account for activity related to seizure of assets in criminal- related activities. Tree Preservation — This fund is used to account for operations related to replacement of trees, which are eliminated due to commercial development. Contributions are received from entities that are developing the property. Library Donation — This fund is used to account for private and corporate donations for capital purchases related to the library building for the City. Recreational Event — This fund is used to account for activities related to special events for the City. LEOSE (Law Enforcement Officer Standards and Education) — This fund is used to account for activities related to the continuing education of qualified law enforcement officers as funded by the State of Texas LEOSE Account. Crime District — This fund is used to account for the Colleyville Crime Control and Prevention District formed to act on behalf of the City for financing the development of crime control throughout the City. Kidsville Maintenance — This fund is used to account for contributions received for the maintenance of Kidsville Playground. Special Donations — This fund is used to account for various donations made to the City for specific projects. Court Technology — This fund is used to account for the collection and use of fines collected to be specifically used on technology for the court. Court Security — This fund is used to account for the collection and use of fines collected to be specifically used for court security purposes. Grant Fund — This fund is used to account for grant related activity. Public Art — This fund is used to account for the acquisition of art to be placed in City owned facilities with high public visibility. Juvenile Case Manager — This fund is used to account for staff, whose primary role is handling juvenile defendants in terms of teen court dockets, all school violations including truancy, failure to attend school and parental noncompliance violations, and mandatory classes for drug, tobacco and alcohol defendants, as permitted by state statute. 88 Hotel Tax Fund — This fund is used to account for all hotel occupancy tax revenues which are restricted by state statute and can only be used on expenditures related to tourism activities. Capital Projects Funds Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Colleyville Tomorrow Fund — This 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. Vehicle/Equipment Replacement — This fund is used to account for the replacement of vehicle and other capital equipment. 89 This Page Intentionally Left Blank City of Colleyville, Texas Non-Major Governmental Funds Combining Balance Sheet September 30, 2019 90 Voluntary Police Asse t Tree Library Voluntary Park Library Forfeiture Preservation Donation Cash and cash equivalents 336,582$ 139,225$ 832$ 84,387$ 59,361$ Investments 959,277 342,066 17,016 241,673 - Accounts receivable 430 177 1 108 76 Due from other funds - - - - - Due from other governments - - - - - Accrued interest 3,652 - - - - TOTAL ASSETS 1,299,941$ 481,468$ 17,849$ 326,168$ 59,437$ LIABILITIES Accounts payable -$ 275$ -$ 69,664$ -$ Accrued liabilities - - - 3,667 - Due to other funds - - - - - TOTAL LIABILITIES - 275 - 73,331 - FUND BALANCES Restricted - - 17,849 - 59,437 Committed 1,299,941 481,193 - 252,837 - Assigned - - - - - TOTAL FUND BALANCES 1,299,941 481,193 17,849 252,837 59,437 TOTAL LIABILITIES AND FUND BALANCES 1,299,941$ 481,468$ 17,849$ 326,168$ 59,437$ LIABILITIES AND FUND BALANCES ASSETS Special Revenue Exhibit B-2 91 Recreational Kidsville Special Event LEOSE Crime Distric t Maintenance Donations 15,725$ 1,309$ 420,824$ 2,018$ 47,500$ - - 600,584 3,907 - 20 - - - - - - - - - - - 303,937 3 61 - - - - - 15,745$ 1,309$ 1,325,345$ 5,928$ 47,561$ -$ -$ 8,431$ -$ -$ - - 18,051 - - - - - - - - - 26,482 - - - 1,309 1,298,863 5,928 47,561 - - - - - 15,745 - - - - 15,745 1,309 1,298,863 5,928 47,561 15,745$ 1,309$ 1,325,345$ 5,928$ 47,561$ Special Revenue City of Colleyville, Texas Non-Major Governmental Fund Combining Balance Sheet September 30, 2019 92 Court Court Juvenile Case Hotel Technology Security Grant Fund Public Art Manager Tax Fund ASSETS Cash and cash equivalents 2,753$ 1,858$ 27,914$ 2,018$ 5,532$ 162,934$ Investments 6,069 34,336 - 6,036 11,730 280,847 Accounts receivable - - 150,956 3 7 - Due from other funds - - - - - - Due from other governments 4 3,191 - - - 55,793 Accrued interest - - - - - - TOTAL ASSETS 8,826$ 39,385$ 178,870$ 8,057$ 17,269$ 499,574$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 789$ -$ 99,513$ -$ 4$ -$ Accrued liabilities - 98 5,238 - 1,083 - Due to other funds - - - - - - TOTAL LIABILITIES 789 98 104,751 - 1,087 - FUND BALANCES Restricted 8,037 39,287 74,119 - 16,182 499,574 Committed - - - - - - Assigned - - - 8,057 - - TOTAL FUND BALANCES 8,037 39,287 74,119 8,057 16,182 499,574 TOTAL LIABILITIES AND FUND BALANCES 8,826$ 39,385$ 178,870$ 8,057$ 17,269$ 499,574$ Special Revenue Exhibit B-2 93 Total Vehicle/ Non-Major Colleyville Parks Park Land Equipment Governmental Tomorrow Tomorrow Dedication Replacement Funds 540,457$ 268,160$ 139,525$ 13,869$ 2,272,783$ 1,912,101 806,441 1,363,575 1,567,402 8,153,060 818 343 178 - 153,117 100,000 - - - 100,000 - - - - 362,989 - - 5,260 2,268 11,180 2,553,376$ 1,074,944$ 1,508,538$ 1,583,539$ 11,053,129$ -$ -$ -$ -$ 178,676$ - - - - 28,137 - - - 100,000 100,000 - - - 100,000 306,813 - - - - 2,068,146 2,553,376 1,074,944 1,508,538 - 7,170,829 - - - 1,483,539 1,507,341 2,553,376 1,074,944 1,508,538 1,483,539 10,746,316 2,553,376$ 1,074,944$ 1,508,538$ 1,583,539$ 11,053,129$ Capital Projects City of Colleyville, Texas Non-Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes In Fund Balances For the Fiscal Year Ended September 30, 2019 94 Voluntary Police Asset Tree Library Voluntary Park Library Forfeiture Preservation Donation REVENUES Taxes -$ -$ -$ -$ -$ Fines and forfeitures - - - 10,800 - Intergovernmental - - - - - Grants/contributions 162,223 162,223 - - 61,687 Investment earnings 27,494 10,969 418 6,161 625 Miscellaneous - - 1,688 - - Total revenues 189,717 173,192 2,106 16,961 62,312 EXPENDITURES Current: General government - - - 80,792 - Fire and rescue - - - - - Leisure services - 149,259 - - 34,494 Municipal court - - - - - Police services - - 7,549 - - Capital outlay - - - - 105,383 Total expenditures - 149,259 7,549 80,792 139,877 Excess (deficiency) of revenues over expenditures 189,717 23,933 (5,443) (63,831) (77,565) OTHER FINANCING SOURCES (USES) Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - NET CHANGE IN FUND BALANCES 189,717 23,933 (5,443) (63,831) (77,565) FUND BALANCES, BEGINNING OF YEAR 1,110,224 457,260 23,292 316,668 137,002 FUND BALANCES, END OF YEAR 1,299,941$ 481,193$ 17,849$ 252,837$ 59,437$ Special Revenue Exhibit B-3 95 Recreational Kidsville Special Event LEOSE Crime District Maintenance Donations -$ -$ 1,751,542$ -$ -$ - - - - - - 3,934 - - - 7,422 - - - 63,276 207 31 21,210 115 592 - - - - - 7,629 3,965 1,772,752 115 63,868 - - - - - - 1,020 - - 20,738 6,037 - - - 10,077 - - - - - - 3,190 1,146,932 - 4,538 - - 239,873 - 39,081 6,037 4,210 1,386,805 - 74,434 1,592 (245) 385,947 115 (10,566) - - - - - - - (519,100) - - - - (519,100) - - 1,592 (245) (133,153) 115 (10,566) 14,153 1,554 1,432,016 5,813 58,127 15,745$ 1,309$ 1,298,863$ 5,928$ 47,561$ Special Revenue City of Colleyville, Texas Non-Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended September 30, 2019 96 Court Court Public Juvenile Case Hotel Technology Security Grant Fund Ar t Manager Tax Fund REVENUES Taxes -$ -$ -$ -$ -$ 251,749$ Fines and forfeitures 18,826 14,098 - - 59,939 - Intergovernmental 30,469 6,487 - - - - Grants/contributions - - 210,905 - - - Investment earnings 223 978 227 153 280 7,060 Miscellaneous - - - - - - Total revenues 49,518 21,563 211,132 153 60,219 258,809 EXPENDITURES Current: General government - - - - - - Fire and rescue - - - - - - Leisure services - - - - - 79,397 Municipal court 47,126 30,750 - - 64,685 - Police services - - 9,404 - - - Capital outlay - - 127,609 - - 43,451 Total expenditures 47,126 30,750 137,013 - 64,685 122,848 Excess (deficiency) of revenues over expenditures 2,392 (9,187) 74,119 153 (4,466) 135,961 OTHER FINANCING SOURCES (USES) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses) - - - - - - NET CHANGE IN FUND BALANCES 2,392 (9,187) 74,119 153 (4,466) 135,961 FUND BALANCES, BEGINNING OF YEAR 5,645 48,474 - 7,904 20,648 363,613 FUND BALANCES, END OF YEAR 8,037$ 39,287$ 74,119$ 8,057$ 16,182$ 499,574$ Special Revenue Exhibit B-3 97 Total Vehicle/ Non-Major Colleyville Parks Park Land Equipment Governmental Tomorrow Tomorrow Dedication Replacement Funds -$ -$ -$ -$ 2,003,291$ - - - - 103,663 - - - - 40,890 - - - - 667,736 54,278 24,254 39,834 28,792 223,901 - - 20,743 - 22,431 54,278 24,254 60,577 28,792 3,061,912 - - - 116,564 197,356 - - - - 21,758 - - - - 279,264 - - - - 142,561 - - - 17,250 1,188,863 - - - 359,813 915,210 - - - 493,627 2,745,012 54,278 24,254 60,577 (464,835) 316,900 44,286 - - 524,706 568,992 - - - - (519,100) 44,286 - - 524,706 49,892 98,564 24,254 60,577 59,871 366,792 2,454,812 1,050,690 1,447,961 1,423,668 10,379,524 2,553,376$ 1,074,944$ 1,508,538$ 1,483,539$ 10,746,316$ Capital Pro jects City of Colleyville, Texas Exhibit B-4 Crime District Fund Budgetary Comparison Schedule (GAAP Basis) For the Fiscal Year Ended September 30, 2019 98 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 1,745,726$ 1,745,726$ 1,751,542$ 5,816$ Investment earnings 8,000 8,000 21,210 13,210 Total revenues 1,753,726 1,753,726 1,772,752 19,026 EXPENDITURES Police services 1,172,336 1,172,336 1,146,932 25,404 Capital outlay 295,600 295,600 239,873 55,727 Total expenditures 1,467,936 1,467,936 1,386,805 81,131 Excess of revenues over expenditures 285,790 285,790 385,947 100,157 OTHER FINANCING SOURCES (USES) Transfers out (519,100) (519,100) (519,100) - Total other financing sources (uses )(519,100) (519,100) (519,100) - Net change in fund balance (233,310) (233,310) (133,153) 100,157 FUND BALANCE, beginning of year 1,432,016 1,432,016 1,432,016 - FUND BALANCE, end of year 1,198,706$ 1,198,706$ 1,298,863$ 100,157$ Budgeted Amounts 99 Agency Funds The Agency Funds are used to account for resources held for others in a custodial capacity. The City maintains the following Agency Fund: Employee Activity Fund – This fund is used to account for funds held by the City for the benefit of employees of the City. Sesquicentennial Fund – This fund is used to account for funds held by the City for the benefit of the City of Colleyville’s historical purposes. City of Colleyville, Texas Exhibit C-1 Employee Activity Fund and Sesquicentennial Fund Statement of Changes in Assets and Liabilities September 30, 2019 100 Employee Activity Sesquicentennial Fund Fund Total Cash and cash equivalents 2,565$ 18,296$ 20,861$ Investments - 3,293 3,293 Accounts receivable 3 23 26 TOTAL ASSETS 2,568$ 21,612$ 24,180$ Due to other agencies and individuals 2,568$ 21,612$ 24,180$ TOTAL LIABILITIES 2,568$ 21,612$ 24,180$ ASSETS LIABILITIES City of Colleyville, Texas Exhibit C-2 Employee Activity Fund and Sesquicentennial Fund Combing Statement of Changes in Assets and Liabilities For the Fiscal Year Ended September 30, 2019 101 Balance Balance 10/1/2018 Additions Deletions 9/30/2019 ASSETS Cash and cash equivalents 3,963$ 3,781$ (5,180)$ 2,565$ Accounts receivable - 3 - 3 TOTAL ASSETS 3,963$ 3,784$ (5,180)$ 2,568$ LIABILITIES Due to other agencies and individuals 3,963$ 3,784$ (5,180)$ 2,568$ TOTAL LIABILITIES 3,963$ 3,784$ (5,180)$ 2,568$ Balance Balance 10/1/2018 Additions Deletions 9/30/2019 ASSETS Cash and cash equivalents 21,034$ 3,593$ (3,038)$ 18,296$ Investments - 3,299 (6) 3,293 Accounts receivable - 23 - 23 TOTAL ASSETS 21,034$ 6,915$ (3,044)$ 21,612$ LIABILITIES Due to other agencies and individuals 21,034$ 6,915$ (3,044)$ 21,612$ TOTAL LIABILITIES 21,034$ 6,915$ (3,044)$ 21,612$ Balance Balance 10/1/2018 Additions Deletions 9/30/2019 ASSETS Cash and cash equivalents 24,997$ 7,374$ (8,218)$ 20,861$ Investments - 3,299 (6) 3,293 Accounts receivable - 26 - 26 TOTAL ASSETS 24,997$ 10,699$ (8,224)$ 24,180$ LIABILITIES Due to other agencies and individuals 24,997$ 10,699$ (8,224)$ 24,180$ TOTAL LIABILITIES 24,997$ 10,699$ (8,224)$ 24,180$ Employee Activity Fund Sesquicentennial Fund Total Agency Funds 102 This Page Intentionally Left Blank 103 Statistical Section 104 This Page Intentionally Left Blank 105 Statistical Section This part of the City of Colleyville comprehensive annual financial report present detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents: Financial Trends Information .................................................................................................................................. 106 These schedules contain trend information intended to help the reader understand how the City's financial position has changed over time. Revenue Capacity Information ............................................................................................................................ 112 These schedules contain information intended to help the reader assess the City's most significant revenue source, property taxes. Debt Capacity Information ................................................................................................................................... 117 These schedules contain information intended to assist users in understanding and assessing the City's current levels of outstanding debt and the ability to issue additional debt. Demographic and Economic Information ......................................................................................................... 122 These schedules provide demographic and economic indicators intended to help the readers understand the socioeconomic environment within which the City's financial activities take place. Operating Information ........................................................................................................................................... 125 These schedules provide contextual information about the City's operations and resources intended to assist readers in using financial statement information to understand and assess the City's economic condition. City of Colleyville, Texas Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) (Unaudited) 106 2010 2011 2012 2013 2014 Governmental activities Net investment in capital assets 81,970,674$ 83,166,142$ 83,211,988$ 84,414,252$ 89,754,051$ Restricted for: Debt service 1,057,699 1,106,893 1,159,092 857,143 831,073 Court Security and technology- 153,420 91,637 101,411 109,766 Grant pro grams - 23,208 21,116 16,489 9,190 Leisure services - 201,184 207,736 207,770 224,064 Economic development - 1,863,900 1,998,845 2,277,373 2,733,995 Police - 994,913 1,143,454 1,223,271 1,403,502 Unrestricted 25,936,703 24,265,699 27,752,287 27,113,566 30,119,775 Total governmental activities net position 108,965,076$ 111,775,359$ 115,586,155$ 116,211,275$ 125,185,416$ Business-type activities Net investment in capital assets 39,080,043$ 38,892,098$ 38,395,708$ 39,269,943$ 41,567,161$ Restricted for: Debt service 983,225 662,050 - - - Unrestricted 7,747,336 10,111,776 12,332,238 13,702,724 14,827,594 Total business-type activities net position 47,810,604$ 49,665,924$ 50,727,946$ 52,972,667$ 56,394,755$ Primary government Net investment in capital assets 121,050,717$ 122,058,240$ 121,607,696$ 123,684,195$ 131,321,212$ Restricted for: Debt service 2,040,924 1,768,943 1,159,092 857,143 831,073 Court Security and technology- 153,420 91,637 101,411 109,766 Grant pro grams - 23,208 21,116 16,489 9,190 Leisure services - 201,184 207,736 207,770 224,064 Economic development - 1,863,900 1,998,845 2,277,373 2,733,995 Streets and drainage- - - - - Police - 994,913 1,143,454 1,223,271 1,403,502 Unrestricted 33,684,039 34,377,475 40,084,525 40,816,290 44,947,369 Total primary governmental net position 156,775,680$ 161,441,283$ 166,314,101$ 169,183,942$ 181,580,171$ Source: Comprehensive Annual Financial Report Fiscal Year Table 1 107 2015 2016 2017 2018 2019 98,958,693$ 97,982,160$ 99,881,334$ 100,382,597$ 101,081,404$ 744,295 692,093 612,641 1,936,893 1,476,905 154,901 215,142 158,853 74,767 63,506 9,844 10,751 11,530 1,554 74,119 233,472 233,290 353,561 564,555 612,500 2,975,894 3,456,897 4,221,531 4,471,253 4,150,118 1,485,735 1,485,771 1,560,027 1,455,308 1,318,021 34,519,503 36,767,262 35,773,373 35,878,519 35,780,949 139,082,337$ 140,843,366$ 142,572,850$ 144,765,446$ 144,557,522$ 44,823,618$ 44,010,618$ 44,123,735$ 43,560,389$ 42,652,195$ - - - - - 15,260,882 17,263,830 19,185,890 22,400,538 24,441,942 60,084,500$ 61,274,448$ 63,309,625$ 65,960,927$ 67,094,137$ 143,782,311$ 141,992,778$ 144,005,069$ 143,942,986$ 143,733,599$ 744,295 692,093 612,641 1,936,893 1,476,905 154,901 215,142 158,853 74,767 63,506 9,844 10,751 11,530 1,554 74,119 233,472 233,290 353,561 564,555 612,500 2,975,894 3,456,897 4,221,531 4,471,253 4,150,118 - - - - - 1,485,735 1,485,771 1,560,027 1,455,308 1,318,021 49,780,385 54,031,092 54,959,263 58,279,057 60,222,891 199,166,837$ 202,117,814$ 205,882,475$ 210,726,373$ 211,651,659$ Fiscal Year City of Colleyville, Texas Changes in Net Position, Last Ten Fiscal Years (Accrual Basis of Accounting) (Unaudited) 108 2010 2011 2012 2013 2014 Expenses Governmental activities: General government 2,691,905$ 2,715,154$ 3,125,214$ 4,075,001$ 4,103,928$ Community development and engineering 1,645,221 1,402,669 1,397,839 1,429,755 1,613,311 Fire 4,419,945 4,421,496 4,321,929 4,529,225 4,625,036 Leisure services 4,118,769 4,191,960 4,124,619 4,106,822 3,776,068 Maintenance 423,783 412,513 400,306 494,545 575,696 Municipal court 302,756 303,839 319,445 586,709 501,604 Police 4,836,274 4,878,055 4,579,570 4,961,444 5,019,343 Streets and drainage 3,885,185 3,657,591 3,073,530 5,322,510 4,128,365 Interest on long-term debt 1,000,061 849,390 780,029 724,458 717,045 Total governmental activities expenses 23,323,899 22,832,667 22,122,481 26,230,469 25,060,396 Business-type activities: Water and sewer 11,242,553 12,009,187 12,258,587 12,544,530 13,238,893 Drainage 572,234 742,160 723,994 707,647 571,886 Interest on long-term debt 296,288 - - - - Total business-type activities expenses 12,111,075 12,751,347 12,982,581 13,252,177 13,810,779 T otal primary government expenses 35,434,974$ 35,584,014$ 35,105,062$ 39,482,646$ 38,871,175$ Program revenues Governmental activities: Char ges for Services: General government 15,000$ 97,234$ 28,408$ 15,000$ 15,000$ Community development 647,298 868,363 1,146,518 927,690 1,387,329 Fire and rescue 235,225 305,882 335,308 308,339 377,021 Leisure services 468,426 1,213,167 520,433 501,260 510,991 Municipal court 1,213,178 970,143 1,015,804 1,271,095 1,268,447 Police 94,059 70,709 81,056 70,513 71,022 Streets and drainage 345,780 296,350 338,845 316,338 347,565 Operating grants and contributions 543,516 822,056 490,069 468,361 486,689 Capital grants and contributions 423,873 405,347 381,308 1,158,050 5,943,465 Total governmental activities program revenues 3,986,355 5,049,251 4,337,749 5,036,646 10,407,529 Business-type activities: Char ges for services: Water and sewer 11,414,425 14,355,418 14,034,600 14,661,491 14,789,641 Drainage 897,361 903,089 918,323 928,863 939,868 Capital grants and contributions 147,014 168,365 169,464 876,660 2,707,835 Total business-type activities program revenues 12,458,800 15,426,872 15,122,387 16,467,014 18,437,344 T otal primary government program revenues 16,445,155$ 20,476,123$ 19,460,136$ 21,503,660$ 28,844,873$ Net (expenses) revenue Governmental activities (19,337,544)$ (17,783,416)$ (17,784,732)$ (21,193,823 )$ (14,652,867)$ Business-type activities 347,725 2,675,525 2,139,806 3,214,837 4,626,565 T otal primary government net expenses (18,989,819)$ (15,107,891)$ (15,644,926)$ (17,978,986 )$ (10,026,302)$ General revenues and other changes in net position Governmental activities: Taxes: Property taxes 12,557,716$ 12,414,948$ 12,414,457$ 12,497,692$ 12,950,832$ Franchise taxes 1,867,065 2,031,268 2,207,463 2,074,731 2,172,801 Sales taxes 4,936,484 5,056,597 5,495,730 5,902,557 6,472,195 Other 75,365 80,731 65,808 68,592 98,160 Interest on investments 76,968 95,822 108,192 77,269 39,697 Gain (Loss) on sale of capital assets 65,306 - 147,969 - 810,020 Transfers 857,622 858,879 1,081,868 1,112,540 1,180,292 Miscellaneous 82,833 55,454 74,041 85,562 61,643 Total governmental activities 20,519,359 20,593,699 21,595,528 21,818,943 23,785,640 Business-type activities: Interest on investments 15,158 38,674 4,084 38,987 23,655 Gain (Loss) on sale of capital assets 15,864 - - 103,437 40,814 Transfers (857,622) (858,879) (1,081,868) (1,112,540) (1,180,292) Miscellaneous - - - - - Total business-type activities (826,600) (820,205) (1,077,784) (970,116) (1,115,823) T otal primary government 19,692,759$ 19,773,494$ 20,517,744$ 20,848,827$ 22,669,817$ Change in net position Governmental activities 1,181,815$ 2,810,283$ 3,810,796$ 625,120$ 9,132,773$ Business-type activities (478,875) 1,855,320 1,062,022 2,244,721 3,510,742 T otal primary government 702,940$ 4,665,603$ 4,872,818$ 2,869,841$ 12,643,515$ Source: Comprehensive Annual Financial Report Fi scal Year Table 2 109 2015 2016 2017 2018 2019 4,676,185$ 4,449,317$ 4,881,741$ 5,330,690$ 5,791,827$ 1,582,461 1,558,750 1,672,823 1,387,909 1,398,052 5,264,026 4,783,421 5,524,975 5,690,454 6,192,307 4,042,252 4,701,443 4,987,965 4,271,760 4,710,673 684,301 689,861 1,243,614 738,834 770,762 522,422 448,420 606,269 595,879 575,098 5,681,698 5,734,116 6,093,309 6,634,046 6,749,202 4,404,701 5,150,390 3,578,365 4,009,383 6,181,453 536,161 614,159 408,268 334,839 300,840 27,394,207 28,129,877 28,997,329 28,993,794 32,670,214 14,055,232 13,995,038 14,779,262 15,257,125 15,463,642 833,599 563,268 646,145 740,994 863,826 - - - - - 14,888,831 14,558,306 15,425,407 15,998,119 16,327,468 42,283,038$ 42,688,183$ 44,422,736$ 44,991,913$ 48,997,682$ 17,500$ 15,075$ 338,857$ 35,684$ 29,800$ 1,587,038 1,356,581 1,148,293 1,447,081 1,361,965 327,264 387,705 340,630 378,019 397,646 503,098 505,203 553,633 563,228 521,448 1,474,485 1,306,924 1,181,280 1,110,960 1,123,157 75,415 93,566 98,859 101,662 93,495 802,551 794,169 634,918 758,952 579,408 450,559 514,845 507,616 614,794 771,681 7,712,266 319,541 1,302,174 406,094 369,126 12,950,176 5,293,609 6,106,260 5,416,474 5,247,726 15,800,163 15,499,159 15,956,329 17,332,891 16,057,020 948,565 954,642 985,636 1,001,180 1,011,428 2,362,261 43,104 481,413 277,639 188,749 19,110,989 16,496,905 17,423,378 18,611,710 17,257,197 32,061,165$ 21,790,514$ 23,529,638$ 24,028,184$ 22,504,923$ (14,444,031)$ (22,836,268)$ (22,891,069)$ (23,577,320)$ (27,422,488)$ 4,222,158 1,938,599 1,997,971 2,613,591 929,729 (10,221,873)$ (20,897,669)$ (20,893,098)$ (20,963,729)$ (26,492,759)$ 13,493,621$ 13,790,347$ 14,548,461$ 15,471,246$ 15,676,533$ 2,319,723 2,206,890 2,105,881 1,982,578 2,086,683 6,705,914 7,252,963 7,304,507 7,578,861 7,584,353 107,977 106,607 263,587 351,715 350,411 100,843 142,343 148,933 315,611 967,396 - 51,849 17,000 51,620 14,116 1,178,590 895,668 63,319 - 270,403 82,873 150,630 168,865 126,859 89,869 23,989,541 24,597,297 24,620,553 25,878,490 27,039,764 52,480 76,014 100,525 - 455,178 5,062 71,003 - - - (1,178,590) (895,668) (63,319) (260,238) (270,403) - - - 183,685 18,706 (1,121,048) (748,651) 37,206 (76,553) 203,481 22,868,493$ 23,848,646$ 24,657,759$ 25,801,937$ 27,243,245$ 9,545,510$ 1,761,029$ 1,729,484$ 2,301,170$ (382,724)$ 3,101,110 1,189,948 2,035,177 2,537,038 1,133,210 12,646,620$ 2,950,977$ 3,764,661$ 4,838,208$ 750,486$ Fiscal Year City of Colleyville, Texas Table 3 Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (Unaudited) 110 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019General fundNonspendable -$ 2,147$ 132,664$ 1,759$ 1,269$ 2,119$ 9,388$ 11,152$ -$ 1,291$ Committed - 706,942 813,536 813,536 813,536 813,536 796,438 682,156 659,712 655,546 Unassigned 8,813,597 10,223,232 11,762,625 11,006,716 10,080,617 8,736,746 8,719,620 8,866,760 8,991,999 9,102,499 Total general fund8,813,597$ 10,932,321$ 12,708,825$ 11,822,011$ 10,895,422$ 9,552,401$ 9,525,446$ 9,560,068$ 9,651,711$ 9,759,336$ All other governmental fundsNon-spendable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Restricted 1,154,570 4,425,532 4,702,200 4,757,937 5,383,007 5,689,356 6,162,352 6,998,697 7,265,412 7,063,130 Committed - 12,395,726 14,385,628 14,695,028 18,982,072 20,988,217 22,372,620 22,853,666 23,874,535 25,421,317 Assigned - 1,148,548 954,818 910,611 765,908 812,939 996,929 1,119,062 1,445,725 1,507,341 Unassigned - - - (4,975) - - - - - - Unassigned, reported in:Special revenue funds 5,664,493 - - - - - - - - - Capital projects funds 11,524,206 - - - - - - - - - Total all other governmental funds18,343,269$ 17,969,806$ 20,042,646$ 20,358,601$ 25,130,987$ 27,490,512$ 29,531,901$ 30,971,425$ 32,585,672$ 33,991,788$ Source: Comprehensive Annual Financial ReportNotes: Includes encumbrances and prepaid items.The City implemented GASB 54 in 2011Fiscal Year City of Colleyville, Texas Table 4 Changes In Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (Unaudited) 111 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019REVENUESTaxes 19,353,358$ 19,627,734$ 20,235,012$ 20,541,466$ 21,747,244$ 22,620,506$ 23,367,715$ 24,159,016$ 25,615,191$ 25,887,789$ Licenses, permits and fees 607,132 923,590 1,130,426 857,135 1,090,012 1,303,710 1,337,928 1,049,673 1,237,198 1,141,959 Capital improvement fees 334,075 281,260 322,498 300,900 333,496 785,992 766,398 612,134 744,465 568,533 Charges for services 1,244,146 998,221 1,051,899 1,000,954 1,043,821 1,217,654 1,023,202 1,218,194 1,601,117 1,442,807 Fines and forfeitures 917,884 1,694,993 1,030,439 1,321,927 1,577,564 1,571,510 1,398,579 1,485,658 858,709 806,572 Interest 76,968 95,823 110,550 77,269 39,697 100,842 142,330 148,909 315,611 967,396 Intergovernmental 100,807 541,709 124,056 76,506 556,954 1,377,763 224,367 668,469 950,817 854,005 Grants/Contributions 379,853 602,401 406,789 487,066 918,613 981,282 421,497 449,130 328,598 667,736 Miscellaneous 97,833 70,453 89,041 100,562 76,643 97,873 165,642 183,889 127,626 85,935 Total revenues 23,112,056 24,836,184 24,500,710 24,763,785 27,384,044 30,057,132 28,847,658 29,975,072 31,779,332 32,422,732 EXPENDITURESGeneral government 2,423,869 2,383,276 2,753,457 3,171,582 3,746,619 4,126,132 4,036,395 4,166,735 4,784,205 4,046,459 Community development 1,642,047 1,397,256 1,396,259 1,429,574 1,606,589 1,524,342 1,623,972 1,511,400 1,349,824 1,369,857 Fire 3,955,407 3,972,053 3,888,225 4,062,535 4,174,745 4,618,103 4,568,639 4,870,759 4,942,939 5,492,430 Police 4,552,947 4,596,862 4,304,710 4,670,639 4,707,315 5,143,662 5,393,431 3,295,197 5,754,470 5,969,109 Leisure services 3,173,352 3,177,878 3,049,908 3,035,583 2,702,313 2,996,371 3,588,611 727,986 3,282,853 3,631,342 Streets and drainage 2,297,719 2,052,298 1,388,970 3,597,965 2,055,631 2,407,780 3,148,848 543,129 1,798,352 3,940,447 Municipal court 302,172 302,666 319,084 586,911 501,027 508,566 461,393 5,498,406 595,879 575,098 Maintenance 417,946 405,911 394,830 489,685 570,011 662,480 690,007 1,515,283 701,424 744,107 Capital outlay 4,935,053 2,510,027 2,515,115 2,668,074 3,250,508 6,268,273 2,373,025 4,421,734 4,950,202 3,141,571 Debt servicePrincipal retirement 2,180,061 2,259,004 2,007,585 2,246,921 1,342,586 1,459,693 1,467,094 2,151,212 2,201,206 2,148,690 Interest and fiscal charges 944,751 838,320 757,594 697,140 716,228 524,414 563,660 420,477 375,647 312,988 Total expenditures 26,825,324 23,895,551 22,775,737 26,656,609 25,373,572 30,239,816 27,915,075 29,122,318 30,737,001 31,372,098 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES(3,713,268) 940,633 1,724,973 (1,892,824) 2,010,472 (182,684) 932,583 852,754 1,042,331 1,050,634 OTHER FINANCING SOURCES (USES)Bonds issued - 2,945,000 - - - - - - - - Refunding bonds - - - - 7,330,000 - 6,225,000 - - - Capital lease 981,238 - 894,534 209,425 - - - 541,073 356,459 Sale of capital assets 65,306 7,098 147,969 - 925,033 20,598 95,796 17,000 50,651 14,116 Premium on bond issue - 6,561 - - - - 239,163 - - Payments to escrow - (3,012,910) - - (7,600,000) - (6,373,776) - - Transfers in 1,884,896 2,458,396 3,893,584 4,189,380 7,355,334 6,497,252 5,665,493 4,552,668 5,160,716 5,212,289 Transfers out(1,027,274) (1,599,517) (2,811,716) (3,076,840) (6,175,042) (5,318,662) (4,769,825) (4,489,349) (4,900,478) (4,941,886) Total other financing sources (uses)1,904,166 804,628 2,124,371 1,321,965 1,835,325 1,199,188 1,081,851 621,392 667,348 284,519 NET CHANGE IN FUND BALANCES(1,809,102)$ 1,745,261$ 3,849,344$ (570,859)$ 3,845,797$ 1,016,504$ 2,014,434$ 1,474,146$ 1,709,679$ 1,335,153$ Debt service as a percentage of noncapital expenditures 14.3% 14.5% 13.6% 12.3% 9.3% 8.3% 8.0% 10.4% 17.1% 15.6% Fiscal YearFiscal Year City of Colleyville, Texas Table 5 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) 112 Fiscal Year Real Property Personal Property Less: Tax-Exempt Property Total Taxable Assessed Value Total Direct Tax Rate 2010 3,907,288,105 95,261,420 237,293,931 3,765,255,594 0.35590 2011 3,917,415,346 92,176,541 253,414,335 3,756,177,552 0.35590 2012 3,941,020,477 89,758,416 277,077,387 3,753,701,506 0.35590 2013 3,997,250,723 91,264,033 296,807,896 3,791,706,860 0.35590 2014 4,129,613,419 93,604,217 307,729,550 3,915,488,086 0.35590 2015 4,314,297,434 102,095,151 313,245,782 4,103,146,803 0.35590 2016 4,332,288,268 106,282,459 301,657,610 4,136,913,117 0.35590 2017 4,712,035,716 113,056,889 323,256,895 4,501,835,710 0.33910 2018 5,154,444,185 113,416,769 392,199,511 4,875,661,443 0.33383 2019 5,756,183,387 114,509,388 414,329,132 5,456,363,643 0.32080 Source: Tarrant Appraisal District Note: Estimated Market Value Property in Tarrant County is reassessed once every two years. The Appraisal District assesses property at 100 percent of actual value for residential and personal. Tax rates are per $100 of assessed value. City of Colleyville, Texas Table 6 Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value) Last Ten Fiscal Years (Unaudited) 113 Fiscal YearOperating/ General RateGeneral Obligation Debt Service Total DirectBirdville Independent School DistrictCarroll Independent School DistrictGrapevine- Colleyville Independent School DistrictHurst-Euless Bedford Independent School DistrictKeller Independent School DistrictTarrant CountyTarrant County College DistrictTarrant County Hospital District2010 0.29864 0.05726 0.35590 1.40500 1.415000 1.290000 1.295500 1.486300 0.264000 0.13767 0.227897 2011 0.29758 0.05832 0.35590 1.42500 1.415000 1.290000 1.288200 1.530600 0.264000 0.13764 0.227897 2012 0.30881 0.04709 0.35590 1.43500 1.415100 1.320100 1.414000 1.540000 0.264000 0.14897 0.227897 2013 0.31385 0.04205 0.35590 1.43500 1.400000 1.320100 1.407500 1.540000 0.264000 0.14897 0.227897 2014 0.32442 0.03148 0.35590 1.43500 1.400000 1.320100 1.387500 1.540000 0.264000 0.14950 0.227897 2015 0.33461 0.02129 0.35590 1.43500 1.400000 1.320100 1.375000 1.540000 0.264000 0.14950 0.227897 2016 0.33624 0.01966 0.35590 1.45390 1.395000 1.320100 1.350000 1.540000 0.264000 0.14950 0.227897 2017 0.32191 0.01722 0.33913 1.45390 1.390000 1.396700 1.316000 1.520000 0.254000 0.14473 0.227897 2018 0.31600 0.01783 0.33383 1.45390 1.385000 1.396700 1.263000 1.520000 0.244000 0.14006 0.224429 2019 0.30376 0.01704 0.32080 1.38390 1.568400 1.326700 1.220000 1.408300 0.234000 0.13017 0.224429 Source: Tarrant Appraisal DistrictNotes: City Direct RatesOverlapping RatesOverlapping 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 Table 7 Principal Property Tax Payers Current Year and Five Years Ago (Unaudited) 114 Percentage of Percentage of Taxable Assessed Total City Taxable Taxable Assessed Total City Taxable Taxpayer Value Assessed Value a Taxpayer Value Assessed Value b 1 Velocis Colleyville LP 37,477,871$ 0.69% Melvin & Martindale 24,300,000$ 0.62% 2 KRG Colleyville LLC 27,000,000 0.49% Toll Dallas TX LLC 16,368,368 0.42% 3 LTF Real Estate MP I LLC 20,000,000 0.37% Oncor Electric Delivery Co LLC 16,288,033 0.42% 4 Oncor Electric Delivery Co LLC 15,507,523 0.28% Lifetime Fitness Real Estate 12,304,570 0.31% 5 Welltower Inc 11,189,018 0.21% AC Village Park Partners LLC 10,430,264 0.27% 6 Colleyville Lodging LLC 10,871,315 0.20% RCC Village Properties 8,831,175 0.23% 7 Colleyville Lofts Venture LLC 10,200,000 0.19% Wal-Mart Real Estate Business Trust 8,769,804 0.22% 8 Standard Pacific of Texas 9,650,387 0.18% Colleyville Riverwalk LP 6,054,975 0.15% 9 Atmos Energy/Mid Tex Division 8,570,080 0.16% Leonard Hudson 4,830,200 0.12% 10 Mainvue TX LLC 8,504,197 0.16% Donald and Gina Wilson 4,337,800 0.11% Total 158,970,391$ 3.38%Total 112,515,189$ 2,80% Total assessed valuation 5,456,363,643 100.00% Total assessed valuation 3,915,488,086 100.00% Source: Tarrant Appraisal District a Taxpayers are assessed on January 1, 2018 (2018 tax year) for the 2019 fiscal year. b Taxpayers are assessed on January 1, 2013 (2013 tax year) for the 2014 fiscal year. 20142019 City of Colleyville, Texas Table 8 Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) 115 Fiscal Year Taxes Levied for the Fiscal Year Amount Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 2010 13,351,922 13,166,515 98.61% 176,914 13,343,429 99.94% 2011 13,183,932 13,063,575 99.09% 111,584 13,175,159 99.93% 2012 13,163,735 13,082,029 99.38% 76,773 13,158,802 99.96% 2013 13,291,462 13,207,902 99.37% 77,723 13,285,625 99.96% 2014 13,722,602 13,681,269 99.70% 33,256 13,714,525 99.94% 2015 14,305,704 14,242,584 99.56% 49,525 14,292,109 99.90% 2016 14,675,127 14,612,632 99.57% 33,200 14,645,832 99.80% 2017 15,508,345 15,423,832 99.46% 31,394 15,455,226 99.66% 2018 16,651,773 16,590,832 99.63% - 16,590,832 99.63% 2019 16,902,499 16,847,431 99.70% 29,843 16,877,275 99.85% Source: Tarrant County Tax Office Total Collections Collected within the Fiscal Year of the Levy City of Colleyville, Texas Table 9 Principal Water Customers Current Year and Nine Years Ago (Unaudited) 116 Percentage Percentage of Total City of Total City Water Water Water Water Taxpayer Usage Usage Usage Usage City Government 45,337,300 1.81% 57,689,200 2.62% School District 43,739,500 1.74% 45,447,700 2.07% Shopping Center 24,180,700 0.96% 8,934,000 0.41% Homeowners Assoc 20,959,000 0.84% 4,023,300 0.18% Fitness Center 15,763,000 0.63% 10,758,700 0.49% Cemetery 13,017,200 0.52% 5,063,700 0.23% Irrigation 9,145,100 0.36% - - % Builder 5,773,700 0.23% - - % Radio Broadcasting 5,729,000 0.23% - - % Memory Care Center 5,517,200 0.22% - - % Total 189,161,700 7.55% 131,916,600 6.00% Notes: City chose not to include the exact names to protect the customers confidentiality. Source: City utility billing records 2019 2010 City of Colleyville, Texas Table 10 Ratio of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) 117 General Sales Tax Water and Drainage Total Percentage Fiscal Obligation Revenue Capital Sewer Revenue Revenue Capital Primary of PersonalYear Bonds Bonds Leases Premium Bonds Bonds Leases Premium Government Income aPer Capita a2010 13,300,000 8,545,000 1,151,173 - 4,520,000 1,695,000 - - 29,211,173 17590.42% 1,281 2011 11,510,000 8,245,000 972,170 5,905 3,600,000 1,550,000 - 99,756 25,982,831 13045.69% 1,137 2012 9,975,000 7,930,000 1,709,120 5,249 2,850,000 1,345,000 - 89,780 23,904,149 12002.00% 1,042 2013 8,675,000 7,600,000 1,301,624 4,593 2,085,000 1,135,000 - 79,805 20,881,022 10484.12% 904 2014 7,660,000 7,330,000 974,038 - 1,310,000 915,000 - 69,830 18,258,868 9092.07% 769 2015 6,920,000 6,935,000 649,345 - 850,000 690,000 - 59,854 16,104,199 8019.14% 676 2016 8,550,000 6,525,000 362,251 239,163 505,000 585,000 - 49,878 16,816,292 8373.73% 696 2017 7,125,000 6,105,000 597,110 238,957 155,000 475,000 - 24,939 14,721,006 7096.58% 598 2018 5,665,000 5,680,000 637,365 235,299 - 365,000 - - 12,582,664 6065.75% 503 2019 4,155,000 4,775,000 443,674 - - 250,000 - - 9,623,674 4639.30% 379 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.a See Table 14 for personal income and population data.Governmental Activities Business-Type Activities City of Colleyville, Texas Table 11 Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) 118 Percentage of General Less: Available Actual Taxable Fiscal Obligation Debt Service Value of Year Bonds Funds Total Property a Per Capita b 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 2017 7,363,957 612,641 6,751,316 0.15% 274 2018 5,665,000 697,975 4,967,025 0.10% 199 2019 4,155,000 844,867 3,310,133 0.06% 130 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a See Table 5 for property value data. b See Table 14 for population data. General Bonded Debt Outstanding City of Colleyville, Texas Table 12 Direct and Overlapping Governmental Activities Debt As of September 30, 2019 (Unaudited) 119 Gross Bonded Debt Percentage of Debt Applicable to Area Share of Overlapping Debt Debt repaid with property taxes Birdville Independent School District 397,327,084$ 0.07% 278,129$ Carroll Independent School District 306,677,164 0.37% 1,134,706 Grapevine-Colleyville Independent School District 435,416,058 22.76% 99,100,695 Hurst-Euless-Bedford Independent School District 383,550,000 1.58% 6,060,090 Keller Independent School District 649,855,320 3.50% 22,744,936 Tarrant County 266,375,000 2.96% 7,884,700 Tarrant County Hospital District 17,735,000 2.96% 524,956 Subtotal, overlapping debt 137,728,211 City of Colleyville (direct debt) 9,373,674 100.00% 9,373,674 Total direct and overlapping debt 147,101,885$ Source: Debt outstanding data provided by each school district and county. Percentage of debt provided by the Municipal Advisory Council of Texas. Governmental Unit City of Colleyville, Texas Pledged-Revenue Coverage Last Ten Fiscal Years (Unaudited) 120 Fiscal Total Less: Operating Net Available Annual Times Year Revenues a Expenses b Revenue Requirement c Coverage 2010 11,427,074 9,458,355 1,968,719 893,358 2.20 2011 14,391,910 10,120,678 4,271,232 977,819 4.37 2012 13,986,067 10,395,517 3,590,550 827,947 4.34 2013 14,802,351 10,707,017 4,095,334 823,430 4.97 2014 14,852,535 11,331,749 3,520,786 819,137 4.30 2015 15,856,242 12,043,267 3,812,975 490,100 7.78 2016 15,638,670 11,965,525 3,673,145 365,325 10.05 2017 16,045,635 12,673,136 3,372,499 359,900 9.37 2018 17,648,886 13,468,257 4,180,629 157,325 26.57 2019 15,167,016 13,779,337 1,387,679 - N/A a Includes operating and non-operating revenues. b Includes operating expenses minus depreciation plus transfers out. c Includes principal and interest. Water and Sewer System Revenue Bonds Table 13 121 Fiscal Total Less: Operating Net Available Annual Times Sales Tax Annual Times Year Revenues a Expenses b Revenue Requirement c Coverage Increment Requirement c Coverage 2010 915,734 484,712 431,022 257,930 1.67 1,317,161 646,290 2.04 2011 905,271 551,049 354,222 211,142 1.68 1,319,517 644,195 2.05 2012 908,387 531,705 376,682 256,244 1.47 1,426,909 646,588 2.21 2013 930,427 541,598 388,829 251,733 1.54 1,534,635 648,365 2.37 2014 941,416 416,957 524,459 255,398 2.05 1,673,351 138,390 12.09 2015 959,833 700,939 258,894 252,847 1.02 1,725,809 600,416 2.87 2016 966,687 414,619 552,068 127,121 4.34 1,864,084 603,824 3.09 2017 996,855 493,796 503,059 128,391 3.92 1,872,563 601,872 3.11 2018 1,036,297 599,534 436,763 124,574 3.51 1,949,370 594,704 3.28 2019 1,036,849 677,196 359,652 125,000 2.88 1,944,792 602,176 3.23 Drainage Revenue Bonds Sales Tax Bonds City of Colleyville, Texas Table 14 Demographic and Economic Statistics Last Ten Calendar Years (Unaudited) 122 Per Capital Fiscal Estimated Personal Personal School Unemployment Year Population a Income Income Enrollment b Rate c 2009 22,550 166,063$ 55,170$ 13,691 8.2% 2010 22,807 166,063 55,354 13,657 7.9% 2011 22,860 199,168 65,516 13,514 8.3% 2012 22,950 199,168 65,516 13,378 6.2% 2013 23,090 199,168 65,516 13,513 6.0% 2014 23,740 200,822 66,060 13,751 5.0% 2015 23,830 200,822 66,060 13,824 4.0% 2016 24,230 200,822 66,060 13,830 4.1% 2017 24,630 207,438 68,236 13,972 3.4% 2018 25,010 207,438 66,301 13,882 2.8% 2019 25,370 207,438 72,927 14,042 2.1% a North Central Texas Council of Governments b Grapevine-Colleyville Independent School District c Texas Workforce Commission City of Colleyville, Texas Table 15 Principal Employers Current Year and Nine Years Ago (Unaudited) 123 Employer Employees Percentage of Total City Employment Employer Employees Percentage of Total City EmploymentGrapevine Colleyville ISD 611 5.90% Grapevine Colleyville ISD 681 6.68%Market Street 345 3.33% Market Street 369 3.62%Lifetime Fitness 250 2.41% Lifetime Fitness 230 2.26%City of Colleyville 201 1.94% City of Colleyville 188 1.84%Covenant Christian Academy 130 1.26% Albertsons 110 1.08%Whole Foods Market 125 1.21% Covenant Christian Academy 107 1.05%Albertsons 118 1.14% LaHacienda Ranch 100 0.98%LaHacienda Ranch 100 0.97% Walmart Neighborhood Market 90 0.88%Walmart Neighborhood Market 72 0.70% Sonshine Academy 60 0.59%US Memory Care 60 0.58% US Memory Care 60 0.59%Total 2,012 19.44% Total 1,995 19.57%Total Colleyville Daytime Employees 10,358 Total Colleyville Daytime Employees 10,198Source: City of Colleyville Economic Development 20192010 City of Colleyville, Texas Table 16 Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years (Unaudited) 124 Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019General governmentManagement services 4.00 4.00 4.00 4.00 4.00 4.00 3.75 5.00 4.20 3.20 Finance/court 6.00 6.00 6.00 8.00 8.00 8.00 8.00 9.00 9.00 9.00 Planning2.00 2.00 2.00 2.00 4.00 3.00 4.00 4.00 4.00 4.00 Building5.00 4.00 3.00 3.00 3.50 5.00 5.00 5.00 5.00 5.00 Other 9.50 11.00 11.00 13.00 11.63 13.52 14.14 12.14 12.80 11.80 PoliceOfficers 38.00 38.00 39.00 40.00 41.00 42.50 43.00 43.00 41.00 41.00 Civilians 13.00 6.00 6.00 6.00 6.50 7.00 6.50 6.00 8.00 8.00 FireFirefighters and officers 33.00 33.00 35.00 36.00 38.00 41.00 41.00 41.00 40.00 40.00 Civilians 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 Other public worksEngineering4.00 4.50 3.00 3.00 4.05 3.95 4.75 2.75 2.75 2.75 Other 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Streets 10.00 10.00 10.00 7.00 8.35 8.35 8.35 8.35 8.35 8.35 Parks and recreation 16.50 16.00 16.00 16.00 15.75 15.00 15.00 17.00 17.00 16.00 Library 9.50 11.50 11.50 12.00 13.00 13.63 13.00 13.00 13.00 12.50 Colleyville Center 4.50 4.50 4.50 3.50 4.00 4.50 4.50 4.00 4.00 4.00 Water/wastewater 28.00 24.00 24.50 23.00 24.68 25.03 24.23 25.60 24.70 24.70 Drainage6.00 6.00 6.00 7.00 6.00 6.00 6.41 6.41 6.20 6.20 Total194.00 184.50 185.50 187.50 196.45 204.48 205.63 206.25 204.50 201.00 Source: City budgetFiscal Year City of Colleyville, Texas Table 17 Operating Indicators by Function/Program Last Ten Fiscal Years (Unaudited) 125 Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019General governmentBuilding permits issued 77 104 155 103 108 181 182 136 169 111Building inspections conducted 6,149 6,737 8,310 8,292 7,807 7,307 8,940 10,666 11,981 10,519PolicePhysical arrests 764 666 653 632 863 800 918 602 715 491Calls for service 12,242 27,254 48,076 61,270 58,522 51,537 43,492 34,437 33,765 30,296Traffic violations 13,822 11,354 11,980 11,766 19,955 21,450 20,790 13,016 15,832 12,804FireEmergency responses 762 830 724 557 627 694 1,783 1,768 1,758 1,797Ambulance calls 751 765 803 829 950 959 1,037 967 1,000 1,004Inspections 784 397 342 306 317 363 400 361 239 386Other public worksStreet resurfacing (miles) 8.0 6.2 1.0 4.0 1.7 3.7 10.9 6.8 6.0 21.9Parks and recreationAthletic field participants 4,296 4,378 3,946 4,287 4,315 4,434 4,302 4,517 4,386 4,570Community center rentals 373 410 404 398 412 452 376 405 320 314LibraryVolumes in collection 58,147 62,997 65,740 69,736 74,525 77,664 80,452 82,182 71,188 70,161Total volumes borrowed 244,458 235,238 244,613 250,737 234,667 228,160 222,128 227,252 237,124 234,477WaterCustomers 9,014 9,103 9,285 9,396 9,507 9,631 9,858 9,987 10,215 10,422Average daily consumption (thousands of gallons) 5,990 7,928 7,217 6,785 6,539 6,451 5,889 6,355 6,508 6,794Peak daily consumption (thousands of gallons) 18,207 18,935 18,707 17,052 15,204 19,866 15,724 12,434 15,830 14,616WastewaterCustomers 8,389 8,457 8,603 8,731 8,817 8,905 9,071 9,270 9,444 9,453Source: City departmentsFiscal Year City of Colleyville, Texas Table 18 Capital Asset Statistics by Function/Program Last Ten Fiscal Years (Unaudited) 126 Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol unites 13 13 12 12 12 13 13 13 13 13 FireStations 3 3 3 3 3 3 3 3 3 3 Public worksStreets (miles) 318 282 282 282 283 283 283 289 289 289 Streetlights 1,188 1,169 1,169 1,175 1,175 1,227 1,269 1,269 1,338 1,338 Traffic signals 2 2 2 2 2 2 2 2 2 2 Parks and recreationAcreage 224 224 224 224 224 224 225 225 225 225 Playgrounds 6 6 6 6 6 6 7 7 7 7 Baseball/softball diamond 9 9 9 9 9 9 9 9 9 9 Soccer fields 14 14 14 14 14 14 14 14 14 14 Community center 1 1 1 1 1 1 1 1 1 1 WaterWater mains (miles) 200 195 201 202 204 205 206 206 206 206 Fire hydrants 1,345 1,362 1,389 1,389 1,403 1,422 1,507 1,517 1,521 1,529 Storage capacity 9,900 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 (thousands of gallons)WastewaterSanitary sewer (miles 170 162 169 170 172 172 179 180 180 180 Storm sewers (miles) 63 58 64 58 60 67 69 70 70 70 Source: City departmentsa Baseball, softball, soccer and multipurpose fields combined through 2014Fiscal Year