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HomeMy WebLinkAboutFY22 Annual Comprehensive Financial Report This Page Intentionally Left Blank City of Colleyville, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 Prepared by Finance Department Kyle Lester Director of Finance Karen Hines Accounting Manager This Page Intentionally Left Blank City of Colleyville, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 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 23 Statement of Activities 2 24 Fund Financial Statements: Governmental Funds Financial Statements: Balance Sheet 3 31 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 4 32 Statement of Revenues, Expenditures, and Changes in Fund Balance 5 33 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities 6 34 Proprietary Funds Financial Statements: Statement of Net Position 7 37 Statement of Revenues, Expenses, and Changes in Net Position 8 38 Statement of Cash Flows 9 39 Custodial Fund Financial Statement: Statement of Fiduciary Net Position - Employee Activity Fund 10 43 and Police Asset Forfeiture Fund Statement of Changes in Fiduciary Net Position - Employee Activity Fund 11 44 and Police Asset Forfeiture Fund Notes to the Basic Financial Statements 45 Required Supplementary Information Budgetary Comparison Schedules: Budgetary Comparison Schedule - General Fund A-1 81 Budgetary Comparison Schedule - Colleyville Economic Development Fund A-2 82 Notes to Budgetary Comparison Schedules 83 Schedule of Changes in Net Pension Liability and Related Ratios - TMRS A-3 84 Schedule of Contributions - TMRS A-4 85 Notes to Texas Municipal Retirement System - Net Pension Liability Required Supplementary Information 86 Schedule of Changes in Net OPEB Liability and Related Ratios - TMRS A-5 87 Notes to Texas Municipal Retirement System- OPEB Liability 88 City of Colleyville, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2022 Table of Contents – Continued ii Exhibit Page Combining And Individual Fund Financial Statements And Schedules Budgetary Comparison Schedule - Debt Service Fund B-1 91 Non-Major Governmental Funds Combining Balance Sheet B-2 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-3 98 Budgetary Comparison Schedule - Crime District Fund B-4 102 Custodial Funds: Statement of Changes in Assets and Liabilities C-1 104 Combining Statement of Changes in Fiduciary Net Position C-2 105 Statistical Section Net Position By Component 1110 Changes in Net Position 2112 Fund Balances - Governmental Funds 3 114 Changes in Fund Balances - Governmental Funds 4 115 Assessed Value and Estimated Actual Value of Taxable Property 5 116 Direct and Overlapping Property Tax Rates 6 117 Principal Property Tax Payers 7118 Property Tax Levies and Collections 8 119 Principal Water Customers 9120 Ratio of Outstanding Debt by Type 10 121 Ratio of General Bonded Debt Outstanding 11 122 Direct and Overlapping Governmental Activities Debt 12 123 Pledged Revenue Coverage 13 124 Demographic and Economic Statistics 14 126 Principal Employers 15 127 Full-Time Equivalent City Government Employees By Function/Program 16 128 Operating Indicators By Function/Program 17 129 Capital Asset Statistics By Function/Program 18 130 iii Introductory Section iv This Page Intentionally Left Blank v March 21, 2023 To the Citizens of the City of Colleyville: The Annual Comprehensive Financial Report of the City of Colleyville (the "City") for the fiscal year ended September 30, 2022, 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, 2022, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Colleyville’s financial statements for fiscal year ended September 30, 2022, 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 auditor’s report. vi PROFILE OF THE GOVERNMENT On January 10, 1956, the City of Colleyville was incorporated and adopted a home-rule charter on January 15, 1977. It has a Council-Manager form of government with policy making and legislative authority vested in a governing body consisting of a Mayor and six Council members. The Mayor and Council are responsible for passing ordinances, adopting the budget, appointing board and committee members, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the Mayor and Council, overseeing the day-to-day operations of the City, and appointing department directors upon confirmation by the City Council. The Mayor and six Council members are elected on an at large, non-partisan basis for three year terms. The three year terms are staggered so that the Mayor and City Council persons from Place 1 and 2 are elected in year one, City Council persons from Places 3 and 4 are elected in year two, and City Council persons from Places 5 and 6 are elected in year three. Per the City Charter, no one person can serve as a council member or mayor for more than two consecutive three year terms. The City provides a full range of municipal services. These services include police and fire protection, municipal court, streets, drainage utility, leisure services (parks and recreation, Colleyville Center and library), water and sewer, engineering/community development, and general administrative services. Based upon the criterion set forth in generally accepted accounting principles, the following organizations are includable within the City's reporting entity: Entity Method of Inclusion Colleyville Economic Development Corporation (CEDC) Blended Colleyville Crime Control and Prevention District Blended Colleyville Tax Investment Financing Reinvestment Zone Zone Number One (TIF) Discretely Presented The City Charter of the City of Colleyville establishes the fiscal year as October 1 through September 30. The Charter requires the City Manager to submit a proposed budget and accompanying budget message to the City Council each year and the proposed budget is presented to the City Council at a budget work session. After public hearings at two consecutive regular City Council meetings, the Council may adopt the proposed budget, with or without amendment. The budget ordinance is to be adopted no later than the 30th day of September and requires an affirmative vote of a majority of the Council. The City maintains budgetary control by adopting an annual operating budget for the General Fund, Debt Service Fund, Hotel Tax Fund, Drainage Utility Fund, and Water and Sewer Enterprise Fund. In conjunction with two corresponding boards of directors, the City also adopts annual operating budgets for the Colleyville Crime Control and Prevention District as well as the Colleyville Economic Development Corporation. 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. The City issued 125 building permits during the year, including 87 commercial permits and 38 residential permits, and the average appraised value of a residential property increased from $586,348 to $610,051. In addition, the City has purchased parcels of land located in the northern and southern gateways of the City along State Highway 26 with the intention of selling the property for future development. The property along the southern portion of the City, purchased for $2.5 million and consisting of approximately 5.9 acres, has been the first to show firm interest. Staff anticipates this property will be under contract with a developer in the early months of calendar year 2023. The City will continue to search for interested parties for the northern property. vii Infrastructure projects completed in fiscal year 2022 include Glade Road improvements (a total of $11.6m capitalized), Cheek-Sparger Road, and State Highway 26 beautification, all of which were multi-year projects for the City. Additionally, the City capitalized $1.5 million in facility and property renovations, including floors and exhaust repairs in the Central Fire Station, HVAC and roof repairs in the Justice Center, and renovations to Colleyville parks. Finally, almost 14 lane miles were resurfaced throughout Colleyville. For the Future. Future infrastructure, rehabilitation and renovation projects scheduled include utility and roadway improvements on both Robert’s and Tinker Roads, connectivity sidewalk/trail construction as well as paths on Bedford and Bransford Roads, various street resurfacing improvements in partnership with Tarrant County, renovations and improvements to the Senior Center and newly acquired property designated for a recreation center, completion of site and landscape improvements to Colleyville Gateways including tower structures along Colleyville Boulevard from John McCain Road to Brown Trail, and water/wastewater line improvements in the Quail Crest/Woodbriar and Pecan Park areas. 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 2022, 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, which 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. viii Staff’s role is to manage City activities and finances in a way that reflects the City Council’s and the community’s highest priorities. Development of the annual budget is guided by the priorities outlined in the City of Colleyville’s Strategic Plan. Every new effort and element of the City’s budget, including existing programs, is tied to one or more of these goals, strategies, and objectives. As a part of the annual budget process, an updated five-year forecast for the General Fund, Hotel Tax Fund, Utility Fund, Drainage Fund, Crime Control and Prevention District Fund, Economic Development Corporation 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. ix 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, 2020. This was the 32nd 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, 2021. 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, 2022 Bobby Lindamood Mayor Brandi Elder Councilmember, Place 1 George Bond Councilmember, Place 2 Kathy Wheat Mayor Pro Tem and 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 Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 | Dallas, Texas 75201 Main: 972.490.1970 CPAs AND ADVISORS | WEAVER.COM Independent Auditor’s Report To the Members of the City Council and City Manager City of Colleyville, Texas Report on the Audit of the Financial Statements Opinions 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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. 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, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 14 to the basic financial statements, during the year ended September 30, 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter. Responsibilities of Management 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. The Members of the City Council and Manager of City of Colleyville, Texas 4 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. The Members of the City Council and Manager of City of Colleyville, Texas 5 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and TMRS pension and OPEB schedules (as listed in the table of contents), 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. Supplementary 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 combining and individual fund financial statements and schedules 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. Other Information Included in the Annual Comprehensive Financial Report (ACFR) Management is responsible for the other information included in the ACFR. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report The Members of the City Council and Manager of City of Colleyville, Texas 6 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2023, 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 March 16, 2023 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, 2022. 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 plus the deferred outflows of resources of the City of Colleyville exceeded its liabilities plus the deferred inflows of resources as of September 30, 2022, by $240,081,746 (net position). Of this amount, $68,591,715 (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 $10,902,937 over FY2021 operations.  As of the close of the current fiscal year, the City of Colleyville’s governmental funds reported combined ending fund balances of $52,929,879.  As of September 30, 2022, unassigned fund balance for the General Fund was $7,725,583, or 34% 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 23 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 31 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 36 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 statements begin on page 41 of this report. The accounting used for fiduciary funds is similar to the accounting used for proprietary funds. The City has two custodial funds: Employee Activity and Police Asset Forfeiture Fund. The custodial funds account for funds held in an agency capacity for the benefit of the City employees and for the benefit of law enforcement purposes. 9 Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 43 – 72 of this report. Other Information – In addition to the basic financial statements and accompanying notes, this report also presents combining fund statements and schedules that further support the information in the financial statements. The combining fund statements and schedules for non-major funds are presented beginning on page 90 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 plus deferred outflows of resources exceeded liabilities plus the deferred inflows of resources by $240,081,746 as of September 30, 2022. The largest portion of the City’s net position ($160,452,178) reflects its investments in capital assets (e.g., land, building, equipment, improvements, construction in progress and infrastructure), less any outstanding debt used to acquire those assets. The City uses these capital assets to provide service to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Colleyville’s Net Position 2022 2021 2022 2021 2022 2021 Current and other assets 58,640,646$ 51,458,888$ 29,568,665$ 26,017,659$ 88,209,311$ 77,476,547$ Capital assets, net 118,174,850 116,965,637 45,548,947 45,950,733 163,723,797 162,916,370 Total assets 176,815,496 168,424,525 75,117,612 71,968,392 251,933,108 240,392,917 Deferred outflows of resources 1,999,886 2,364,678 288,312 310,790 2,288,198 2,675,468 Current liabilities 1,791,440 2,773,761 2,022,081 2,230,938 3,813,521 5,004,699 Long-term liabilities 5,098,992 6,612,417 329,213 409,736 5,428,205 7,022,153 Total liabilities 6,890,432 9,386,178 2,351,294 2,640,674 9,241,726 12,026,852 Deferred inflows of resources 4,310,732 1,628,018 587,102 234,706 4,897,834 1,862,724 Net position Net Investment in capital assets 114,903,231 113,142,374 45,548,947 45,950,733 160,452,178 159,093,107 Restricted 11,037,853 10,370,421 - - 11,037,853 10,370,421 Unrestricted 41,673,134 36,262,212 26,918,581 23,453,069 68,591,715 59,715,281 Total net position 167,614,218$ 159,775,007$ 72,467,528$ 69,403,802$ 240,081,746$ 229,178,809$ Activities Activities Primary Government Governmental Business-type Total 10 A portion of the City’s net position ($11,037,853) represents resources that are subject to external restriction on how they may be used. The remaining balance ($68,591,715) of unrestricted net position may be used to meet the City’s ongoing obligation to citizens and creditors in accordance with the City’s fund designation and fiscal policies. As of September 30, 2022, 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 2022 governmental activities resulted in a $7,839,211 increase in net position. That increase was due to higher revenue intake, including approximately $3.356 million in Federal Coronavirus State and Local Fiscal Recovery funds, and continued investment in the City’s capital assets. Fiscal year 2022 business-type activities resulted in a $3,063,726 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 2022, TRA refunded the City more than $995,000 after calculating the authority’s true up balances. Additionally, the TRA did not invoice the City for October and November, resulting in a net gain to the City of over $1.3 million. Additionally, FY22 was the City’s first full year to reinstate charging penalties to customers, which had previously been suspended due to the pandemic. Whereas this revenue brought in $82,000 in FY21, a total of $190,867 was received in FY22. Colleyville is landlocked, and with fewer developable acreage available every year the monthly utility customer counts tend to remain fairly static. The City saw less than 0.5% growth for FY22. Tiered rates which had 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, 2022. Governmental activities increased the City of Colleyville’s net position by $7,839,211, and business-type activities contributed an increase to the City’s net position of $3,063,726. 11 City of Colleyville’s Changes in Net Position 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services 3,789,663$ 3,567,362$ 22,651,185$ 18,435,666$ 26,440,848$ 22,003,028$ Operating grants and contributions 4,253,340 3,491,361 250,596 - 4,503,936 3,491,361 Capital grants and contributions 895,376 198,935 326,850 - 1,222,226 198,935 General revenues: Property tax 16,292,731 16,398,025 - - 16,292,731 16,398,025 Sales tax 10,284,047 9,445,150 - - 10,284,047 9,445,150 Franchise tax 1,853,644 1,724,583 - - 1,853,644 1,724,583 Other tax 339,216 235,209 - - 339,216 235,209 Investment income 43,962 99,055 1,258 31,280 45,220 130,335 Miscellaneous 336,955 5,787,102 41,808 17,652 378,763 5,804,754 Gain on sale of capital assets 128,261 61,287 21,605 - 149,866 61,287 Total revenues 38,217,195 41,008,069 23,293,302 18,484,598 61,510,497 59,492,667 Expenses: General government 4,974,336 5,668,238 - - 4,974,336 5,668,238 Community development 1,567,235 1,591,996 - - 1,567,235 1,591,996 Fire and rescue 7,126,677 6,740,521 - - 7,126,677 6,740,521 Leisure services 4,668,826 4,499,889 - - 4,668,826 4,499,889 Maintenance 695,435 775,477 - - 695,435 775,477 Municipal court 559,820 638,025 - - 559,820 638,025 Police 7,276,394 6,978,311 - - 7,276,394 6,978,311 Streets and drainage 4,561,627 4,696,395 - - 4,561,627 4,696,395 Water and wastewater - - 19,205,539 16,334,509 19,205,539 16,334,509 Drainage - - 719,298 812,505 719,298 812,505 Interest on long-term debt 30,510 111,944 - - 30,510 111,944 Total expenses 31,460,860 31,700,796 19,924,837 17,147,014 51,385,697 48,847,810 Increases (decreases) in net position before transfers 6,756,335 9,307,273 3,368,465 1,337,584 10,124,800 10,644,857 Transfers 304,739 409,276 (304,739) (409,276) - - Change in net position 7,061,074 9,716,549 3,063,726 928,308 10,124,800 10,644,857 Net position - October 1 159,775,007 150,055,356 69,403,802 68,475,494 229,178,809 218,530,850 Cumulative effect of change in accounting principle 778,137 3,102 - - 778,137 3,102 Net position - October 1, as restated 160,553,144 150,058,458 69,403,802 68,475,494 229,956,946 218,533,952 Net position - September 30 167,614,218$ 159,775,007$ 72,467,528$ 69,403,802$ 240,081,746$ 229,178,809$ 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, as such information is useful in assessing the City’s financing requirements. In particular, examining the City’s spendable fund balances may serve as a useful measure of a government’s ability to meet its liabilities in the coming year. 12 Per GASB Statement 54, fund balance categories are reported as follows:  Nonspendable fund balance—amounts that are not in a spendable form (such as inventory) or are required to be maintained intact (such as the corpus of an endowment fund)  Restricted fund balance—amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation  Committed fund balance—amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint  Assigned fund balance—amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority  Unassigned fund balance—amounts that are available for any purpose, which are reported only in the general fund or deficit fund balances from other funds, required to be classified as unassigned. In fiscal year 2022, Colleyville’s total governmental fund balances increased by $4,580,120. This increase breaks down as follows: 2022 2021 Increase (Decrease) Nonspendable 39,899$ 23,150$ 16,749$ Restricted 11,032,881 10,377,614 655,267 Committed 32,787,265 26,314,781 6,472,484 Assigned 1,796,154 1,400,681 395,473 Unassigned 7,273,680 10,233,533 (2,959,853) 52,929,879$ 48,349,759$ 4,580,120$ Governmental Activities Fund Balances The largest change in fund balance fell in the Committed Fund Balance category, and more specifically, the amounts committed for capital improvement spending. The primary reason for this increase is a transfer of operating surpluses from the unassigned category to the committed category, which is reflected in the $2,507,950 decrease in the unassigned category depicted above. This shift from unassigned to committed fund balance shows up as an interfund transfer between the City’s General Fund and the Capital Projects Fund. Per policy enacted by City Council in the previous year, staff transferred all excess fund balances from any operating funds into their respective capital funds. For governmental funds, this breaks down as follows:  A total fiscal year transfer of $9,238,990 from the General Fund into the General Capital Fund: o $1,500,000 in the annual street maintenance transfer, which will be discontinued in FY23 o $2,529,864 in ARPA funds distributed in FY21 but moved to capital funds in FY22 o $2,604,397 in ARPA funds distributed in FY22 o $2,604,728 in excess General Fund balance accumulated in FY22  $1.5m from higher revenues including sales tax (+$809k), service charges (+$149k), fines (+$145k), grant proceeds (+$123k), franchise tax (+$122k), and other revenues (+$153k)  $570k in expenditure savings, predominately from personnel costs 13 All of these transfers are in accordance with the City’s policy to cash fund its capital improvement plan to reduce reliance on debt financing. 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. It does, however, reduce the unassigned fund balance and increase the committed balance. The same can be said for the Utility and Drainage proprietary funds. As with the previous year the City continued its targeted promotion and grant programs to assist with small business improvements and advertising as well as encourage citizens to continue to shop locally. The following programs detail the efforts the city gave to encourage economic improvements and activity within its boundaries: Program Description FY22 Amount Spent Gift Cards (5 rounds) $35 gift cards mailed directly to residents and accepted by area businesses. The businesses would then redeem these at City Hall. 1,093,045$ Façade Improvement Grants Grants designed to assist businesses with signage and façade improvements. 24,817$ Advertising/Promotional Grants Grants designed to help promote and advertise businesses within Colleyville City limits 56,000$ 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. Fiscal year 2022 Debt Service Fund balance decreased by $195,000 due to an adjustment in the State- mandated tax calculations that now account for any from previous years’ property tax collections that exceeded budget. Proprietary Funds- The unrestricted net position of the proprietary funds are $24,501,009 for the Water and Wastewater Fund and $2,417,572 for the Drainage Utility Fund. Additionally, fiscal year 2022 activities resulted in a total net position increase of $2,738,850 in the Water and Sewer fund and $324,876 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. An added benefit to the City is that the rate structure helps mitigate the financial effects of major weather changes by ensuring the utility operations are covered through customers’ base rates. The new rates did include the continued pass-through of the Trinity River Authority water and wastewater rate increases, which are the only volumetric rates Colleyville customers pay. The volumetric portion of the rates solely cover charges from the Trinity River Authority, which are passed through to customers. 14 In total, the Utility’s operating fund ended with a surplus of $2.9m. While this did include some savings on the Utility’s overhead budget, the majority of the surplus was from the City’s relationship with the Trinity River Authority, which included a large refund from the previous year’s payments for water treatment services. As explained with the General Fund, above, each utility operating fund subsequently transferred its surplus amounts over to their respective capital funds. For 2022, this breaks down as follows: o A total fiscal year transfer of $456,252 from the Drainage Operating Fund to the Drainage Capital Fund due to excess fund balance accumulated in FY22 o A total fiscal year transfer of $2,989,366 from the Utility Operating Fund to the Utility Capital Fund  $331k of which is attributable to the Utility’s direct operational cost savings over budget, and  The remaining $2.65m of which is attributable to the annual true-up and monthly invoices from the Trinity River Authority, which is Colleyville’s provider of water and wastewater treatment services. Governmental Activities – In total, there was a decrease of $3,564,512 in governmental activities revenue compared to fiscal year 2021. However, this decrease is an anomaly that is reflective of a $5.5m intergovernmental reimbursement payment the Colleyville Tax Increment Finance District made to the Colleyville Economic Development Corporation. This payment was to reimburse the Corporation for previous years’ debt service costs for bonds that financed TIF-eligible projects. This reimbursement was made in consultation with the City’s TIF District financial advisor. Netting out that planned anomaly, Colleyville’s governmental activities revenue increased $1,954,456. The bulk of this increase came from another strong year of sales tax revenue. This revenue stream represents the second highest revenue source for Colleyville’s governmental funds, and it experienced an impressive 8.9% growth rate, adding $840,000 across the City over 2021. Remote purchases continued at their heightened levels while in-person retail and restaurant purchases bounced back from the COVID-related declines of the past two years. Hotel occupancies also experienced a significant increase, albeit a smaller one than other sales taxes. Hotel taxes ended the year at just over $200,000 in revenue to the City. While this was not quite double the amount seen in 2020 and 2021, revenue here still lags behind pre-COVID levels. Colleyville’s primary source of General Fund revenue comes from its residential property values, which experienced a 4% growth over the prior year’s certified values. City leaders voted to adopt the City’s no-new-revenue rate for the fourth consecutive year, taking the tax rate from $0.304365/$100 valuation to $0.291778/$100 valuation. In spite of this reduction, some moderate new growth did bring in higher revenue for the City. The City also aggressively pursues intergovernmental grants to alleviate the financial burden that needed capital improvements can put on taxpayers. For 2022, Colleyville received a total of $471,955 in grant funding, the majority of which was for use on the Justice Center and Emergency Operations Center. This is a significant increase of the $206,592 received in 2021. Finally, 2022 represents the final year Colleyville will receive funding from the federal American Rescue Plan Act, which granted a total of $6,712,770 to the City for operational and capital costs in response to the COVID pandemic. The City will likely show a large decrease in intergovernmental revenue from 2022 to 2023 as a result of this program concluding. 15 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 $21,930,014 for the fiscal year for an increase of almost $4.5 million from fiscal year 2021. While consumption was lower than the previous fiscal year, increases to the City’s base rate and the Trinity River Authority’s (the Authority) volumetric rates, as well as a slight increase in Colleyville’s customer base, can be attributed to the revenue increase. Adding to the Utility’s surplus was a substantial refund from the Authority for overpayment in the previous fiscal year in the amount of $995,000. Furthermore, the Authority did not invoice Colleyville for water usage in the last two months of its fiscal year, resulting in the City collecting revenue it did not have to pay to the Authority. As per the City’s policy, this surplus will be reserved for use on the City’s cash-funded capital improvement plan. This policy helps staff and council to keep utility rates as low as possible. The Utility Fund ended with a total budget surplus of $2.9 million, which was transferred from operations to capital projects for use on the 5-year capital improvement plan. Revenues from the Drainage Utility fund were slightly over FY21, with a small increase in drainage fees. Expenses were lower by more than $75,000 due primarily to personnel costs. In total, the Drainage Utility posted a $456,252 surplus, which will be reserved for use on the City’s 5-year capital improvement plan. General Fund Budgetary Highlights – With the FY22 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, FY22 was the fourth year that the City adopted the no-new-revenue property tax rate, meaning properties on both the 2021 and 2022 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 has also managed to absorb annual operational increases within its existing budget through appropriate use of restricted revenues such as hotel and sales tax as well as maintaining lean operations. 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 FY22 budget continued to reflect the City Council’s bold vision of fully implementing the recommendations of the 2017 Compensation and Classification Study by providing annual merit raises for all staff. Additionally, an updated compensation study commenced in FY22 for implementation in the City’s personnel schedule in FY23. Not counting the Federal ARPA and CARES Act funding, the General Fund’s surplus was higher than the previous year due to turnover and supplies and contractual expenses, as well as revenues showing an increase from FY21. Refer to the General Fund Budgetary Comparison Schedule on page 77 of this report for a detailed presentation of the actual General Fund operations compared to both the original and final budget for fiscal year 2022. 16 Capital Assets The City of Colleyville’s investment in capital assets for its governmental and business-type activities as of September 30, 2022 amounts to $163,723,797, 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 $21 million in street improvements, including Glade Road ($11.6m), Cheek-Sparger Road ($4.078m) and State Highway 26 beautification ($5.879m).  Capitalized $1.5 million for facility and property renovations, including floors and exhaust repairs in the Central Fire Station, HVAC and roof repairs in the Justice Center, and renovations to Colleyville parks. City of Colleyville’s Capital Assets at Year End 2022 2021 2022 2021 2022 2021 Land 9,178,641$ 9,178,641$ 304,839$ 304,839$ 9,483,480$ 9,483,480$ Buildings and improvements 56,202,436 54,606,970 103,159 60,859 56,305,595 54,667,829 Equipment 14,391,876 14,853,817 2,911,023 2,806,093 17,302,899 17,659,910 Infrastructure/water distribution sewer collection 112,903,608 110,508,766 89,877,268 86,441,334 202,780,876 196,950,100 Right to use leased assets 1,777,428 1,390,260 - - 1,777,428 1,390,260 Construction in progress 5,476,577 4,701,098 1,252,614 3,055,761 6,729,191 7,756,859 Less: accumulated depreciation/amortization (81,755,716) (77,365,201) (48,899,956) (46,718,153) (130,655,672) (124,083,354) Total capital assets, net 118,174,850$ 117,874,351$ 45,548,947$ 45,950,733$ 163,723,797$ 163,825,084$ Primary GovernmentActivities Activities Governmental Business-type Total Additional information on the City’s capital assets can be found in Note 5, pages 57-59 of this report. Debt Administration At the end of the current fiscal year, the City of Colleyville had total bonded debt, notes payable and lease obligations of $3,141,672. Of this amount, $2,275,000 represents bonded debt backed by the full faith and credit of the government, and $736,802 represents debt from leases obligations. Outstanding Debt and Year End Bonds, Notes and Capitalized Lease Obligations Payable 2022 2021 2022 2021 2022 2021 General obligation bonds and certificates of obligation 2,275,000$ 2,700,000$ -$ -$ 2,275,000$ 2,700,000$ Revenue bonds payable - - - 125,000 - 125,000 Financed purchase liabilities 639,923 950,475 - - 639,923 950,475 Lease liabilities 96,879 130,576 - - 96,879 130,576 Bond premiums 129,870 172,787 - - 129,870 172,787 Total long-term debt 3,141,672$ 3,953,838$ -$ 125,000$ 3,141,672$ 4,078,838$ Long-term debt to net position percentage 2% 2% 0% 0% 1% 2% Activities Activities Primary Government Governmental Business-type Total 17 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 60-63 of this report. Standard Fitch Ratings & Poor's General Obligations Bonds AAA AAA Economic Factors and Next Year’s Budgets and Rates The properties in Colleyville City Limits are predominately residential, which tends to help 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 4% in total from 2021 to 2022. 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 no-new-revenue tax 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 2022, the City had a goal of adopting the no-new-revenue tax rate, which was achieved by adopting a tax rate of $0.291778/$100 valuation, a $0.012 reduction from the fiscal year 2021 tax rate of $0.304365/$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. This revenue stream makes up approximately 17% of the General Fund’s annual operating revenue, and it has endured two major disruptions in the past several years. The first is the construction that took place along Colleyville’s primary commercial corridor, Colleyville Boulevard (SH26), which concluded in 2020. The second disruption came in 2020 and 2021 as COVID-19 restricted commerce in the City’s restaurant and in-person services sectors. For several surrounding communities, Colleyville included, consumers shifted their purchasing habits to online vendors, meaning that while brick-and-mortar storefronts felt significant financial pressure Colleyville maintained an increasing trajectory for its overall sales tax. As a result, Colleyville came out of the past two years with a total revenue increase of more than $2 million. Acknowledging the difficulty facing businesses within City boundaries, Colleyville staff responded to these by providing grants to businesses and gift cards to residents to encourage local economic activity. As is the City’s policy, sales tax has been budgeted conservatively with slight growth for FY23 and limited growth in future years. As of the date of this report, the City has seen a 3.2% increase after two months’ worth of collections in FY23. 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 average annual growth of about 3.5%, reflecting potential new growth on top of an effective tax rate. Conversely, sales tax was projected with 2%-2.5% growth. The forecast for General Fund expenditures includes average annual cost increases of approximately 2.5% for materials and contractual services required each year, as well as personnel costs to continue funding appropriate market and merit adjustments and increasing healthcare costs. 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. 18 The fiscal year 2023 budget provides a staffing level of 216.84 full-time equivalents (FTEs), about 8 FTEs more than in fiscal year 2022, reflecting two additional full-time staff member for parks beautification efforts and six new school resource officers. Staff accomplished this by relying on the Colleyville Economic Development Corporation and the Crime Control and Prevention District to take on additional appropriate operating costs, thereby saving those costs 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 2023 budget, which includes zero debt payments and a slight increase in the number of customers, water and wastewater base rates experienced a moderate increase due to staffing costs as well as the cost for Trinity River Authority’s treatment services. Fortunately, no increase was needed in the CIP base rate due to the Utility’s five-year capital improvement program being sufficiently funded with the current rate structure. 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. 19 Basic Financial Statements 20 This Page Intentionally Left Blank 21 Government-Wide Financial Statements 22 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit 1 Statement of Net Position September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 23 Governmental Business-type Component Activities Activities Total Unit ASSETS Cash and cash equivalents 4,873,272$ 7,076,883$ 11,950,155$ 857,672$ Investments 32,545,486 17,602,328 50,147,814 597 Receivables (net of allowance for uncollectibles of $350,870) Accounts 359,334 3,712,761 4,072,095 1,580,968 Taxes 1,334,765 - 1,334,765 - Loans 15,252,761 - 15,252,761 - Leases 238,322 - 238,322 - Due from other governments 985,360 - 985,360 - Internal balances (400,000) 400,000 - - Inventories 1,231 245,887 247,118 - Prepaid items 38,666 - 38,666 - Restricted assets: Investments - 33,920 33,920 - Accrued interest 85,623 12,518 98,141 14,545 Net pension asset 3,325,826 484,368 3,810,194 - Capital assets: Non-depreciable 14,655,218 1,557,453 16,212,671 43,323,845 Right to use leased assets (net of amortization) 886,369 - 886,369 177,834 Depreciable (net of depreciation) 102,633,263 43,991,494 146,624,757 24,112,330 Total assets 176,815,496 75,117,612 251,933,108 70,067,791 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - TMRS pension and OPEB 1,999,886 288,312 2,288,198 - Total deferred outflows of resources 1,999,886 288,312 2,288,198 - LIABILITIES Accounts payable 975,631 1,225,357 2,200,988 1,572,808 Accrued liabilities 637,696 96,461 734,157 876,054 Accrued interest payable 20,185 - 20,185 - Advances from developers 73,424 185,893 259,317 - Unearned revenues 38,666 - 38,666 - Customer deposits 45,838 514,370 560,208 - Non-current liabilities: Due within one year 987,945 19,684 1,007,629 64,825 Due in more than one year 3,390,448 205,650 3,596,098 15,244,357 OPEB liability 720,599 103,879 824,478 - Total liabilities 6,890,432 2,351,294 9,241,726 17,758,044 DEFERRED INFLOWS OF RESOURCES Deferred inflows - Lease related 238,322 - 238,322 - Deferred inflows - TMRS pension and OPEB 4,072,410 587,102 4,659,512 - Total deferred inflows of resources 4,310,732 587,102 4,897,834 - NET POSITION Net investment in capital assets 114,903,231 45,548,947 160,452,178 51,495,447 Restricted: Debt service 876,349 - 876,349 - Court security and technology 162,389 - 162,389 - Leisure services 275,026 - 275,026 - Economic development 6,480,855 - 6,480,855 - Police 3,220,710 - 3,220,710 - Historical purposes 22,524 - 22,524 - Unrestricted 41,673,134 26,918,581 68,591,715 814,300 TOTAL NET POSITION 167,614,218$ 72,467,528$ 240,081,746$ 52,309,747$ Primary Government City of Colleyville, Texas Statement of Activities For the Fiscal Year Ended September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 24 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions PRIMARY GOVERNMENT Governmental activities: General government 4,974,336$ 27,857$ 3,121,032$ 194,318$ Community development 1,567,235 1,215,522 - - Fire and rescue 7,126,677 480,541 609,960 - Leisure services 4,668,826 531,775 399,220 - Maintenance 695,435 - - - Municipal court 559,820 1,261,507 - - Police 7,276,394 74,332 123,128 - Streets and drainage 4,561,627 198,129 - 701,058 Interest on long-term debt 30,510 - - - Total governmental activities 31,460,860 3,789,663 4,253,340 895,376 Business-type activities: Water and sewer 19,205,539 21,639,947 250,596 326,850 Drainage 719,298 1,011,238 - - Total business-type activities 19,924,837 22,651,185 250,596 326,850 TOTAL PRIMARY GOVERNMENT 51,385,697$ 26,440,848$ 4,503,936$ 1,222,226$ COMPONENT UNIT Tax increment financing 3,047,890$ -$ -$ -$ Total component unit 3,047,890$ -$ -$ -$ General revenues and transfers: Taxes: Property taxes Sales taxes Franchise taxes Other taxes Interest on investments Gain on sale of capital assets Miscellaneous Transfers Total general revenues and transfers Change in net position Net position, beginning of year Cumulative effect of change in accounting standard Net position, beginning of year, as restated NET POSITION, end of year Functions/Program Activities Program Revenues Exhibit 2 25 Governmental Business-type Component Activities Activities Total Unit (1,631,129)$ -$ (1,631,129)$ 630,723$ (351,713) - (351,713) - (6,036,176) - (6,036,176) - (3,737,831) - (3,737,831) - (695,435) - (695,435) - 701,687 - 701,687 - (7,078,934) - (7,078,934) - (3,662,440) - (3,662,440) - (30,510) - (30,510) - (22,522,481) - (22,522,481) 630,723 - 3,011,854 3,011,854 - - 291,940 291,940 - - 3,303,794 3,303,794 - (22,522,481)$ 3,303,794$ (19,218,687)$ 630,723$ -$ -$ -$ (3,047,890)$ -$ -$ -$ (3,047,890)$ 16,292,731$ -$ 16,292,731$ 6,193,901$ 10,284,047 - 10,284,047 - 1,853,644 - 1,853,644 - 339,216 - 339,216 - 43,962 1,258 45,220 - 128,261 21,605 149,866 - 336,955 41,808 378,763 197,342 304,739 (304,739) - - 29,583,555 (240,068) 29,343,487 6,391,243 7,061,074 3,063,726 10,124,800 3,974,076 159,775,007 69,403,802 229,178,809 48,327,420 778,137 - 778,137 8,251 160,553,144 69,403,802 229,956,946 48,335,671 167,614,218$ 72,467,528$ 240,081,746$ 52,309,747$ Net (Expense) Revenue and Changes in Net Position Primary Government 26 This Page Intentionally Left Blank 27 Fund Financial Statements 28 This Page Intentionally Left Blank 29 Governmental Funds Financial Statements 30 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit 3 Balance Sheet Governmental Funds September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 31 Colleyville Colleyville Non-Major Debt Capital Economic Grant Tomorrow Governmental Governmental General Service Projects Development Fund Fund Funds Funds ASSETS Cash and cash equivalents 38,474$ 8,042$ 2,944,632$ 634,448$ 11,484$ 34,364$ 1,201,826$ 4,873,270$ Investments 10,793,518 863,142 5,872,931 5,427,520 - 2,122,868 7,465,507 32,545,486 Receivables, net of allowances for uncollectibles: Accounts 155,609 - - - 203,725 - - 359,334 Taxes 1,309,415 25,350 - - - - - 1,334,765 Loans 118,500 - 15,134,261 - - - - 15,252,761 Leases 238,322 - - - - - - 238,322 Due from other funds 70,000 - 2,800,000 - - - - 2,870,000 Due from other governments - - - 461,200 - - 524,160 985,360 Accrued interest 67,990 - 15,433 1,276 - 308 616 85,623 Inventories 1,233 - - - - - - 1,233 Prepaid items - - - - 38,666 - - 38,666 TOTAL ASSETS 12,793,061$ 896,534$ 26,767,257$ 6,524,444$ 253,875$ 2,157,540$ 9,192,109$ 58,584,820$ LIABILITIES Accounts payable 506,028$ -$ 78,156$ 22,805$ 158,446 181,491$ 28,705$ 975,631$ Accrued liabilities 461,427 - 46,504 20,784 - 59,650 49,331 637,696 Advances from developers - - 73,424 - - - - 73,424 Due to other funds 2,800,000 - - - 470,000 - - 3,270,000 Unearned revenue - - - - 38,666 - - 38,666 Customer deposits 45,838 - - - - - - 45,838 Total liabilities 3,813,293 - 198,084 43,589 667,112 241,141 78,036 5,041,255 DEFERRED INFLOWS OF RESOURCES Deferred inflows - Lease related 238,322 - - - - - - 238,322 Unavailable resources 350,207 25,157 - - - - - 375,364 TOTAL DEFERRED INFLOWS OF RESOURCES 588,529 25,157 - - - - - 613,686 FUND BALANCES Nonspendable for: Inventories 1,233 - - - - - - 1,233 Prepaid items - - - - 38,666 - - 38,666 Restricted for: Debt service - 871,377 - - - - - 871,377 Court security and technology - - - - - - 162,389 162,389 Leisure services - - - 275,026 275,026 Economic development - - - 6,480,855 - - - 6,480,855 Police - - - - - - 3,220,710 3,220,710 Historical purposes - - - - - - 22,524 22,524 Committed for: Strategic initiatives 664,423 - - - - - - 664,423 Leisure services - - - - - 1,916,399 2,096,817 4,013,216 Capital projects - - 26,569,173 - - - 1,540,453 28,109,626 Assigned for: Capital projects - - - - - - 1,766,522 1,766,522 Leisure services - - - - - - 29,632 29,632 Unassigned 7,725,583 - - - (451,903) - - 7,273,680 Total fund balances (deficit) 8,391,239 871,377 26,569,173 6,480,855 (413,237) 1,916,399 9,114,073 52,929,879 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 12,793,061$ 896,534$ 26,767,257$ 6,524,444$ 253,875$ 2,157,540$ 9,192,109$ 58,584,820$ City of Colleyville, Texas Exhibit 4 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position As of September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 32 TOTAL FUND BALANCES - GOVERNMENT FUNDS 52,929,879$ 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 118,174,850 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.(20,185) Net Pension asset has not been included in the governmental fund financial statements, as these assets do not represent current financial resources. 3,325,826 Revenues earned but not available within sixty days of the year end are not recognized as revenue on the fund financial statements. 375,364 Net deferred outflows and inflows of resources related to net pension liability results in an increase in net position in the government-wide financial statements. (2,072,524) 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 (2,275,000)$ Unamortized bond premium/discount, net (129,870) Financed purchase liabilities (639,923) Lease liabilities (96,879) Compensated absences (1,236,721) Other post employment benefits liability (720,599) (5,098,992) Net position of governmental activities 167,614,218$ City of Colleyville, Texas Exhibit 5 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 33 Colleyville Colleyville Non-Major Total Debt Capital Economic Grant Tomorrow Governmental Governmental General Service Projects Development Fund Fund Funds Funds REVENUES Taxes 23,073,252$ 619,275$ -$ 2,583,813$ -$ -$ 2,725,006$ 29,001,346$ Fines and forfeitures 731,183 - - - - - 84,439 815,622 Licenses, permits and fees 929,415 - - - - - - 929,415 Intergovernmental 194,318 - - - - - 68,279 262,597 Charges for services 1,665,903 - - - - - - 1,665,903 Capital improvement fees - - 194,629 - - - - 194,629 Grants/contributions 2,728,151 - 350,000 - 471,956 - 577,905 4,128,012 Investment earnings (losses) (74,321) 6,452 23,269 28,053 - 16,749 43,760 43,962 Miscellaneous 168,898 - 159,644 255 - - 9,951 338,748 Total revenues 29,416,799 625,727 727,542 2,612,121 471,956 16,749 3,509,340 37,380,234 EXPENDITURES Current: General government 4,738,555 - - 306,502 - - 117,298 5,162,355 Community development and engineering 1,551,442 - 38,542 - - - - 1,589,984 Fire and rescue 6,692,324 - - - 167,215 - 14,188 6,873,727 Leisure services 2,284,832 - - 964,004 7,083 - 497,218 3,753,137 Maintenance 712,425 - 80,115 - - - - 792,540 Municipal court 480,884 - - - - - 78,936 559,820 Police services 5,138,559 - - - 4,185 - 1,611,256 6,754,000 Streets and drainage 866,110 - 1,019,004 - - - - 1,885,114 Capital outlay 77,984 - 1,703,781 1,078,220 708,141 692,998 796,654 5,057,778 Debt service: Principal retirement - 735,551 - - - - - 735,551 Interest and fiscal charges - 85,596 - - - - - 85,596 Total expenditures 22,543,115 821,147 2,841,442 2,348,726 886,624 692,998 3,115,550 33,249,602 Excess (deficiency) of revenues over (under) expenditures 6,873,684 (195,420) (2,113,900) 263,395 (414,668) (676,249) 393,790 4,130,632 OTHER FINANCING SOURCES (USES) Proceeds from leases - - - - - - 16,488 16,488 Proceeds from the sale of property 49,141 - - - - - 79,120 128,261 Transfers in 304,739 - 9,238,989 - - - 524,706 10,068,434 Transfers out (9,753,695) - - - - - (10,000) (9,763,695) Total other financing sources (uses) (9,399,815) - 9,238,989 - - - 610,314 449,488 Net change in fund balances (2,526,131) (195,420) 7,125,089 263,395 (414,668) (676,249) 1,004,104 4,580,120 Fund balances, beginning of year 10,917,370 1,066,797 19,444,084 6,217,460 1,431 2,592,648 8,109,969 48,349,759 FUND BALANCES (DEFICIT), END OF YEAR 8,391,239$ 871,377$ 26,569,173$ 6,480,855$ (413,237)$ 1,916,399$ 9,114,073$ 52,929,879$ City of Colleyville, Texas Exhibit 6 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes In Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 34 TOTAL NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS 4,580,120$ 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/amortization expense. This is the amount of capital assets recorded in the current period.5,057,778 Depreciation/amortization expense on capital assets is reported in the statement of activities but does not require the use of current financial resources. Therefore, depreciation/amortization expense is not reported as expenditures in the governmental funds.(5,458,337) The issuance of long-term debt (e.g. bonds or leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amortized in the statement of activities. This amount is the net effect of the following items: Proceeds from leases (16,488)$ Financed purchase liability payments 310,552 Lease liability payments 50,185 Principal payments 425,000 Amortization of premiums and deferred losses 42,917 812,166 The net change in net pension liability/asset, 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.763,682 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.658,073 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. (73,277) 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. 12,169 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/amortization expense. 701,058 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. 7,642 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 7,061,074$ 35 Proprietary Funds Financial Statements 36 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit 7 Statement of Net Position Proprietary Funds September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 37 Water and Sewer Drainage Utility Fund Fund Total ASSETS Current assets: Cash and cash equivalents 5,992,600$ 1,084,283$ 7,076,883$ Investments 16,255,497 1,346,831 17,602,328 Accounts receivable, net of allowance 3,580,896 131,865 3,712,761 Due from other funds 400,000 - 400,000 Inventories 245,887 - 245,887 Restricted assets: Investments - 33,920 33,920 Total current assets 26,474,880 2,596,899 29,071,779 Noncurrent assets: Accrued interest 12,518 - 12,518 Net pension asset 397,599 86,769 484,368 Capital assets: Land and improvements 304,839 - 304,839 Buildings 103,159 - 103,159 Utility system 84,726,531 5,150,737 89,877,268 Equipment and furniture 2,255,771 655,252 2,911,023 Construction in progress 906,502 346,112 1,252,614 Less: accumulated depreciation (46,558,565) (2,341,391) (48,899,956) Total non-current assets 42,148,354 3,897,479 46,045,833 Total assets 68,623,234 6,494,378 75,117,612 DEFERRED OUTFLOW OF RESOURCES Deferred outflows - TMRS pension and OPEB 237,286 51,026 288,312 Total deferred outflows of resources 237,286 51,026 288,312 LIABILITIES Current liabilities: Accounts payable 1,210,636 14,721 1,225,357 Accrued liabilities 84,380 12,081 96,461 Advances from developers 69,000 116,893 185,893 Customer deposits 514,370 - 514,370 Compensated absences - 19,684 19,684 Total current liabilities 1,878,386 163,379 2,041,765 Noncurrent liabilities: Compensated absences 174,202 31,448 205,650 OPEB liability 85,492 18,387 103,879 Total non-current liabilities 259,694 49,835 309,529 Total liabilities 2,138,080 213,214 2,351,294 DEFERRED INFLOW OF RESOURCES Deferred inflows - TMRS pension and OPEB 483,194 103,908 587,102 Total deferred inflows of resources 483,194 103,908 587,102 NET POSITION Net investment in capital assets 41,738,237 3,810,710 45,548,947 Unrestricted 24,501,009 2,417,572 26,918,581 TOTAL NET POSITION 66,239,246$ 6,228,282$ 72,467,528$ City of Colleyville, Texas Exhibit 8 Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Fiscal Year Ended September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 38 Water and Sewer Drainage Utility Fund Fund Total OPERATING REVENUES Metered water sales 14,075,059$ -$ 14,075,059$ Wastewater service charges 5,297,937 - 5,297,937 Drainage service charges - 1,001,458 1,001,458 Other charges and services 2,266,951 9,780 2,276,731 Grant/Contributions 248,259 2,337 250,596 Miscellaneous 41,808 - 41,808 Total operating revenues 21,930,014 1,013,575 22,943,589 OPERATING EXPENSES Personnel services 2,048,171 403,135 2,451,306 Maintenance and contractual services 14,786,549 110,179 14,896,728 Material and supplies 296,654 46,314 342,968 Depreciation and amortization 2,074,165 159,670 2,233,835 Total operating expenses 19,205,539 719,298 19,924,837 OPERATING INCOME (LOSS)2,724,475 294,277 3,018,752 NON-OPERATING REVENUES (EXPENSES) Investment income (loss) (7,736) 8,994 1,258 Proceeds from Sale of Property - 21,605 21,605 Total non-operating revenues (expenses) (7,736) 30,599 22,863 Income (loss) before capital contributions and transfers 2,716,739 324,876 3,041,615 CAPITAL CONTRIBUTIONS AND TRANSFERS Capital contributions 326,850 - 326,850 Transfers out (304,739) - (304,739) Total capital contributions and transfers 22,111 - 22,111 Change in net position 2,738,850 324,876 3,063,726 Net position, beginning of year 63,500,396 5,903,406 69,403,802 NET POSITION, END OF YEAR 66,239,246$ 6,228,282$ 72,467,528$ City of Colleyville, Texas Exhibit 9 Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2022 The Notes to the Financial Statements are an integral part of this statement. 39 Water and Sewer Drainage Utility Fund Fund Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 21,556,597$ 1,020,187$ 22,576,784$ Cash payments to suppliers for goods and services (15,172,231) (317,874) (15,490,105) Cash payments to employees for services (2,188,395) (452,928) (2,641,323) Net cash provided by (used in) operating activities 4,195,971 249,385 4,445,356 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Cash loaned to other funds (400,000) - (400,000) Transfers out (304,739) - (304,739) Net cash provided by (used in) non-capital financing activities (704,739) - (704,739) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (1,417,055) (88,144) (1,505,199) Proceeds from sale of capital assets - 21,605 21,605 Net cash provided by (used in) capital and related financing activities (1,417,055) (66,539) (1,483,594) CASH FLOWS FROM INVESTING ACTIVITIES Sale of investments (98,135) 611,009 512,874 Earnings (losses) on investments (16,827) 8,994 (7,833) Net cash provided by (used in) investing activities (114,962) 620,003 505,041 Net change in cash and cash equivalents 1,959,215 802,849 2,762,064 Cash and cash equivalents, beginning of year 4,033,385 281,434 4,314,819 CASH AND CASH EQUIVALENTS, END OF YEAR 5,992,600$ 1,084,283$ 7,076,883$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss)2,724,475$ 294,277$ 3,018,752$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 2,074,165 159,670 2,233,835 Decrease (increase) in assets and deferred outflows of resources: Receivables (373,507) 6,612 (366,895) Inventory (41,462) - (41,462) Net pension asset (397,599) (86,769) (484,368) Deferred outflows - TMRS pension and OPEB 19,809 2,669 22,478 Increase (decrease) in liabilities and deferred outflows of resources: Accounts payable (37,325) (163,912) (201,237) Accrued liabilities (10,241) 2,531 (7,710) Compensated absences (34,834) (25,539) (60,373) Customer deposits 90 - 90 Net pension liability (22,560) (3,583) (26,143) Total OPEB liability 4,933 1,060 5,993 Deferred inflows - TMRS pension and OPEB 290,027 62,369 352,396 Net cash provided by (used in) operating activities 4,195,971$ 249,385$ 4,445,356$ NONCASH DISCLOSURES: Developers' contributions 326,850$ -$ 326,850$ 40 This Page Intentionally Left Blank 41 Fiduciary Fund Financial Statements 42 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit 10 Statement of Fiduciary Net Position Custodial Funds September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 43 Custodial Funds ASSETS Cash and cash equivalents 23,108$ Investments 9,256 TOTAL ASSETS 32,364 LIABILITIES Accounts Payable 150$ TOTAL LIABILITIES 150 NET POSITION Restricted for other purposes 32,214 TOTAL NET POSITION 32,214$ City of Colleyville, Texas Exhibit 11 Statement of Changes in Fiduciary Net Position Custodial Funds For the Fiscal Year Ended September 30, 2022 The Notes to Financial Statements are an integral part of this statement. 44 Custodial Funds Contributions 5,446$ Forfeitures 1,683 Investment earnings 109 Other additions 4,548 TOTAL ADDITIONS 11,786 Operating expenses 20,113 TOTAL DEDUCTIONS 20,113 (8,327) Net position, beginning 40,541 32,214$ ADDITIONS DEDUCTIONS CHANGE IN NET POSITION NET POSITION, ENDING City of Colleyville, Texas Notes to the Basic Financial Statements 45 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 City (the City) was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention City Act. The City is organized to act on behalf of the City for financing, development of crime control throughout the City. The City is governed by a seven-member board consisting of all members of the City Council. The City 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. 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. City of Colleyville, Texas Notes to the Basic Financial Statements 46 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. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenue to be available if collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, sales taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. Governmental Funds Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (except those accounted for in the proprietary fund type) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the City's Governmental Fund types: City of Colleyville, Texas Notes to the Basic Financial Statements 47 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. The Grant fund — is used to account for grant related activity. The Colleyville Tomorrow Fund – is used to account for proceeds received on gas leases from City-owned property to be used for capital purchases. 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 48 Fiduciary Funds Custodial Funds are used to account for assets held by the City in a trustee capacity or as an agent on behalf of others. Certain Custodial Funds were previously reported as agency funds, see Note 14 for details of this change in accounting principle. The City has two Fiduciary Funds: Employee Activity and the Police Asset Forfeiture Fund. These funds are held for the benefit of City employees and to account for assets seized in criminal-related activities held until remittance. 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/amortization on capital assets/right to use 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) or amortized cost. 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 49 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/amortized using the straight-line method over the following estimated useful lives: Assets Years Buildings 15-50 Improvements 20-50 Equipment 5-10 Infrastructure (streets and drainage) 50 Water distribution/sewer collection 5-40 H. Compensated Absences City employees are granted vacation and sick pay in varying amounts. In the event of termination, an employee is paid for all accumulated, unused vacation. Vacation pay is accrued as it vests to the employee. Sick pay is recorded when paid or upon retirement when a maximum of 90 days is paid. 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 50 I. Leases The City is a lessee for a noncancellable leases of equipment, and is also a lessor for noncancellable leases of cell towers and other property. Effective October 1, 2021, the City implemented GASB Statement No. 87, Leases, which required the recognition of certain lease assets and liabilities for leases that previously were classified as operating or capital leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. Lessee – The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. At implementation of GASB Statement No. 87, the City initially measured the lease and financing lease liabilities at the present value of payments expected to be made during the remaining lease term. Subsequently, the lease liabilities are reduced by the principal portion of lease payments made. The lease right-to-use asset was initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease right-to use asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a re-measurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long- term debt on the Statement of Net Position. Lessor— The City recognizes a lease receivable and deferred inflow of resources in the government- wide, governmental funds and proprietary funds financial statements. At implementation of GASB Statement No. 87, the City measured the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. City of Colleyville, Texas Notes to the Basic Financial Statements 51 J. Long-term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. In the fund financial statements, the face amount of debt issued is reported as other financing sources for the governmental fund types. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as another financing source. Issuance costs, even if withheld from the actual net proceeds received, are reported as expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are charged to current operations rather than being deferred and amortized due to the relatively immaterial effect on the basic financial statements taken as a whole. K. Fund Balance Classification The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. Nonspendable items are not expected to be converted to cash or are not expected to be converted to cash within the next year. Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors, 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 Finance Director. 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 52 L. Minimum Unassigned Fund Balance It is the goal of the City to achieve and maintain an unassigned fund balance in the General Fund equal to three months of that year's budgeted expenditures for both the General and Utility Funds. The City Council may declare a fiscal emergency and withdraw any amount of the unassigned General and Utility Funds' balances for purposes of addressing the fiscal emergency. Any such action must also provide for necessary appropriations to restore the designated fund balance to the balance within a three-year period. M. Deficit Fund Balance At September 30, 2022, the Grants Fund, a major governmental fund, had a deficit fund balance of $413,237. The fund incurred expenditures under a grant that was not reimbursed in a timely manner under the modified accrual basis of accounting to be included in revenue. However, the City anticipates receiving reimbursement for these grants in fiscal year 2023. N. 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. O. 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 assets 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 net assets 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. City of Colleyville, Texas Notes to the Basic Financial Statements 53 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. Deferred inflows related to leases – The inflows will be recognized as they are received over the life of the lease receivables. P. 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. Q. 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. R. 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 Net 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. S. 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. City of Colleyville, Texas Notes to the Basic Financial Statements 54 T. Subsequent Events The City has reviewed its financial statements and evaluated subsequent events for the period of time from its year ended September 30, 2022 through March 16, 2023, the date the financial statements were issued. Management is not aware of any subsequent events, other than those described below, that would require recognition or disclosure in the accompanying financial statements.  On November 15, 2022, the City issued $10,030,000 of Combination Tax and Revenue Certificates of Obligation, Series 2022 for the purpose of paying contractual obligations to be incurred for constructing, improving, renovating, and equipping park and recreation facilities, including the acquisition of land therefor, and professional services rendered in connection therewith. Note 2. Stewardship, Compliance and Accountability Budgetary Information The City Council follows these procedures in establishing budgetary data reflected in the basic financial statements: 1. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to September 30, the budget is legally enacted through passage of an ordinance. 4. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. 5. Formal budgetary integration is employed as a management control device during the year for the General, Colleyville Economic Development Fund, Crime District Fund, Debt Service, and Enterprise Funds. Budgetary control is maintained at the fund level. Internal budgets prepared for various boards are reviewed by the City Council for expenditures of other Special Revenue Funds. These budgeted expenditures are not formally adopted by the City Council. 6. Budgets for the General and the Debt Service Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Formal budgeted amounts are as amended by the City Council for the General, Colleyville Economic Development Fund, Crime City 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. City of Colleyville, Texas Notes to the Basic Financial Statements 55 Note 3. Deposits and Investments In fiscal year 2016, the City adopted GASB Statement No. 72 (GASB 72), Fair Value Measurement and Application. GASB 72 was issued to address accounting and financial reporting issues related to fair value measurements. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. As of September 30, 2022, the City held the following fair value measurements: Value at September 30, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Percent of Total Investments City: Cash and cash equivalents: Cash deposits - City 11,947,543$ -$ -$ -$ Petty Cash - City 2,612 Cash deposits - trust and agency 23,108 - - - Investments not subject to fair value: Investment pools: TexPool 19,136,412 - - - 31% 38 TexStar 4,801,200 - - - 8% 39 Texas CLASS 4,892,411 - - - 8% 22 LOGIC 1,381,135 - - - 2% 54 Investments in certificates of deposits: Certificates of deposits 9,505,389 - 9,505,389 - Investments by fair value level: Federal Farm Credit Bonds 10,474,443 - 10,474,443 - 17% 100 Total cash and investments of the city 62,164,253 - 19,979,832 - Component unit: Cash and cash equivalents: Cash deposits 857,672 - - - Investments in certificates of deposits: Certificates of deposits 597 - 597 - Total cash and investments of the component unit 858,269 - 597 - Total cash and investments of the reporting entity 63,022,522$ -$ 19,980,429$ -$ Fair Value Measurements Weighted Average Maturity (Days) City of Colleyville, Texas Notes to the Basic Financial Statements 56 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 are measured at amortized cost or net asset value and are exempt from fair value reporting and therefore have been excluded from the hierarchy. Certificates of Deposit are reported as investments in the Statement of Net Position and are measured with Level 2 inputs on the fair value hierarchy. 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. 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. 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. City of Colleyville, Texas Notes to the Basic Financial Statements 57 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. 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, 2022. 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 58 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 and Drainage General Service Projects Grant Sewer Fee Total Receivables: Accounts 496,569$ -$ -$ 203,725$ 3,628,849$ 131,865$ 4,461,008$ Taxes 1,309,415 25,350 - - - - 1,334,765 Loans 118,500 - 15,134,261 - - - 15,252,761 Leases 238,322 - - - - - 238,322 Gross receivables 2,162,806 25,350 15,134,261 203,725 3,628,849 131,865 21,286,856 Less allowance 340,960 - - - 47,953 - 388,913 Net total receivables 1,821,846$ 25,350$ 15,134,261$ 203,725$ 3,580,896$ 131,865$ 20,897,943$ 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 2022 levy was based, was $6,161,836,618. 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, 2022, was $0.291778 per $100 of assessed valuation. Taxes are due by January 31 following the levy date. Tax collections, including related penalties and interest, was $17,130,486 for the year ended September 30, 2022. Property taxes receivable at September 30, 2022, were $241,294. The appraisal of property within the City is the responsibility of a countywide appraisal City as required by legislation passed by the Texas Legislature. The appraisal City is required under such legislation to assess all property within the appraisal City on the basis of 100% of its appraised value and is prohibited from applying any assessment ratios. The value of property within the appraisal City 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 City through various appeals and, if necessary, legal action. In 2012, the City extended a loan in the amount of $200,000 to The Londoner Pub to fund some improvements to the restaurant. The loan, which bears no interest, was restructured in 2020 and is receivable in monthly installments of $750. The balance of the loan was $118,500 as of September 30, 2022. City of Colleyville, Texas Notes to the Basic Financial Statements 59 During the year ended September 30, 2021, the primary government loaned $10 million to discretely presented component unit, Colleyville Tax Increment Financing Reinvestment Zone Number One (the TIF), and during the year ended September 30, 2022, the City loaned an additional $5,134,261. The purpose of the loan was to assist the TIF in cash-funding large scale capital improvements. As of September 30, 2022, the outstanding balance was $15,134,261. The TIF will repay the loan in installments beginning in the 2024 fiscal year, with the full balance due in the 2028 fiscal year. The loan will bear interest at 0%. As of September 30, 2022, the expected lease receivable receipts through the expiration of the leases for which the City is a lessor are as follows: Fiscal Years Ending September 30, Principal Interest Total 2023 89,015$ 4,836$ 93,851$ 2024 73,000 2,910 75,910 2025 51,350 1,450 52,800 2026 24,957 579 25,536 2027 - - - Total 238,322$ 9,775$ 248,097$ Governmental Activities Note 5. Capital Assets Capital asset activity for the year ended September 30, 2022, was as follows: Primary Government Beginning Capital Sales or Adjustments/ Ending Balance Acquisitions Disposals Transfers Balance Governmental activities: Capital assets not being depreciated/amortized: Land 9,178,641$ -$ -$ -$ 9,178,641$ Construction-in-progress 4,701,098 4,254,365 - (3,478,886) 5,476,577 Total capital assets not being depreciated/amortized 13,879,739 4,254,365 - (3,478,886) 14,655,218 Capital assets being depreciated/amortized: Buildings and building improvements 54,606,970 - - 1,595,466 56,202,436 Machinery and Equipment 14,853,817 416,245 (1,067,822) 189,635 14,391,875 Right to use leased assets 1,390,260 387,168 - - 1,777,428 Improvements other than buildings 110,508,766 701,058 - 1,693,785 112,903,609 Total capital assets being depreciated/amortized 181,359,813 1,504,471 (1,067,822) 3,478,886 185,275,348 Accumulated depreciation/amortization: Buildings and building improvements (26,607,622) (1,703,754) - - (28,311,376) Machinery and Equipment (11,501,754) (1,086,397) 1,067,822 - (11,520,329) Right to use leased assets (481,546) (409,513) - - (891,059) Improvements other than buildings (38,774,279) (2,258,673) - - (41,032,952) Total accumulated depreciation/amortization (77,365,201) (5,458,337) 1,067,822 - (81,755,716) Total capital assets being depreciated/ amortized, net 103,994,612 (3,953,866) - 3,478,886 103,519,632 Governmental activities capital assets, net 117,874,351$ 300,499$ -$ -$ 118,174,850$ City of Colleyville, Texas Notes to the Basic Financial Statements 60 Primary Government—Continued Beginning Capital Sales or Adjustments/ Ending Balance Acquisitions Disposals Transfers Balance Business-Type activities: Capital assets not being depreciated: Land 304,839$ -$ -$ -$ 304,839$ Construction in progress 3,055,761 860,314 - (2,663,461) 1,252,614 Total capital assets not being depreciated 3,360,600 860,314 - (2,663,461) 1,557,453 Capital assets being depreciated: Buildings and building improvements 60,859 42,300 - - 103,159 Machinery and equipment 2,806,093 156,962 (52,032) - 2,911,023 Improvements other than buildings 86,441,334 772,473 - 2,663,461 89,877,268 Total capital assets being depreciated 89,308,286 971,735 (52,032) 2,663,461 92,891,450 Accumulated depreciation: Buildings and building improvements (140,219) (1,872) - - (142,091) Machinery and equipment (1,939,114) (221,253) 52,032 - (2,108,335) Improvements other than buildings (44,638,820) (2,010,710) - - (46,649,530) Total accumulated depreciation (46,718,153) (2,233,835) 52,032 - (48,899,956) Total capital assets being depreciated, net 42,590,133 (1,262,100) - 2,663,461 43,991,494 Business type activities capital assets, net 45,950,733$ (401,786)$ -$ -$ 45,548,947$ Component Unit Beginning Capital Sales or Adjustments/ Ending Balance Acquisitions Disposals Transfers Balance Component unit activities: Capital assets not being depreciated: Land 17,104,291$ -$ -$ -$ 17,104,291$ Construction-in-progress 19,982,916 11,469,403 - (5,232,765) 26,219,554 Total capital assets not being depreciated 37,087,207 11,469,403 - (5,232,765) 43,323,845 Capital assets being depreciated: Right to use leased assets 305,652 - - - 305,652 Improvements other than buildings 21,943,664 558,368 - 5,232,765 27,734,797 Total capital assets being depreciated 22,249,316 558,368 - 5,232,765 28,040,449 Accumulated depreciation: Right to use leased assets (61,130) (66,688) - - (127,818) Improvements other than buildings (2,429,323) (1,193,144) - - (3,622,467) Total accumulated depreciation (2,490,453) (1,259,832) - - (3,750,285) Total capital assets being depreciated, net 19,758,863 (701,464) - 5,232,765 24,290,164 Component unit activities capital assets, net 56,846,070$ 10,767,939$ -$ -$ 67,614,009$ City of Colleyville, Texas Notes to the Basic Financial Statements 61 Depreciation and amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 522,381$ Public safety 1,238,726 Public works 2,601,201 Culture and recreation 1,096,029 Total depreciation and amortization expense - governmental activities 5,458,337$ Business-type activities: Water and sewer 2,074,165$ Drainage utility 159,670 Total depreciation and amortization expense - business-type activities 2,233,835$ Construction Commitments The government has active construction projects as of September 30, 2022. The major projects are listed as follows: Remaining Project Spent-to-date Commitment Bedford Road Trail 50,500$ 66,850$ Bransford Road Trail 11,540 17,040 Cheek-Sparger Road Improvements 4,078,266 25,694 City Hall & Library Interior Renovation 706,929 30,000 Colleyville Gateways 2,897,823 4,840,839 Drainage Master Plan 289,593 149,260 Exterior City Hall & Justice Center 105,680 555,322 Fire Station 3 Emergency Generator 11,492 46,309 Glade Rd Ph II - Construction 11,642,997 2,070,343 Glade at Bluebonnett 690,815 870,005 John McCain Culvert 20,858 68,979 Justice Center Exterior Site Improvements 737,552 62,924 Misc. Drainage Projects 387,584 300,000 Nature Center Trail 343,158 44,542 Overland Park - Playground Area 86,191 86,191 Public Works Facility Renovation 1,149,879 60,531 Quail Court & Woodbriar Improvements 216,403 137,189 Roberts Road Reconstruction 444,927 24,318 Senior Center/Multi Generational Facility Renovation 1,711,375 2,261,103 SH26 Beautification 5,879,414 322,842 Small Sidewalk Segments/Trails 529,233 1,340 Tinker Road Reconstruction 307,657 67,342 Waste Water Project 5: Quails Path 509,631 2,624 Water Project #18: Pecan Park 139,250 23,950 Total 32,948,747$ 12,135,537$ City of Colleyville, Texas Notes to the Basic Financial Statements 62 Note 6. Interfund Transactions Interfund balances reflect payments made by one fund on behalf of another fund for which cash settlement has not been made as of the end of the accounting period. As of September 30, 2022 interfund balances outstanding were as follows: Water and Capital Wastewater General Projects Funds Total Due From General fund -$ 2,800,000$ -$ 2,800,000$ Grant fund 70,000 - 400,000 470,000 Total 70,000$ 2,800,000$ 400,000$ 3,270,000$ Due to The composition of interfund transfers as of September 30, 2022, is as follows: Nonmajor Capital Government General Projects Funds Total Transfer out: General fund -$ 9,238,989$ 514,706$ 9,753,695$ Nonmajor governmental funds - 10,000 10,000 Water and wastewater 304,739 - - 304,739 Total 304,739$ 9,238,989$ 524,706$ 10,068,434$ Transfer in The most significant interfund transfers include the transfers of $9,238,989 and $514,706 from the General Fund to the Capital Projects fund and one Nonmajor Government fund, respectively, which represent transfers for capital replacement. The $304,739 from the water and wastewater fund to the General Fund is a budgeted transfer for the fund’s share of administrative expenses. 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 $35,540,000. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. City of Colleyville, Texas Notes to the Basic Financial Statements 63 Long-term liability activity for the year ended September 30, 2022, was as follows: Amount Beginning Ending Due within Balance Additions Reductions Balance One Year Governmental activities: General obligation bonds and certificates of obligation 2,700,000$ -$ (425,000)$ 2,275,000$ 435,000$ Bond premiums 172,787 - (42,917) 129,870 - Financed purchase liabilities 950,475 - (310,552) 639,923 270,468 Lease liabilities 130,576 16,488 (50,185) 96,879 48,327 Compensated absences 1,894,794 164,227 (822,300) 1,236,721 234,150 Net pension liability 215,335 - (215,335) - - Total OPEB liability 679,027 41,572 - 720,599 - Total governmental activities 6,742,994$ 222,287$ (1,866,289)$ 5,098,992$ 987,945$ Amount Beginning Ending Due within Balance Additions Reductions Balance One Year Business-type activities: Compensated absences 285,707$ 23,962$ (60,373)$ 225,334$ 19,684$ Net pension liability 26,143 - (26,143) - - Total OPEB liability 97,886 5,993 - 103,879 - Total business-type activities 409,736$ 29,955$ (86,516)$ 329,213$ 19,684$ For the governmental activities, compensated absences are generally liquidated by the General Fund. Amount Beginning Ending Due within Balance Additions Reductions Balance One Year Component unit activities Loans payable 10,000,000$ 5,134,261$ -$ 15,134,261$ -$ Lease liabilities 236,271 - (61,350) 174,921 64,825 Total component unit activities 10,236,271$ 5,134,261$ (61,350)$ 15,309,182$ 64,825$ Long-term liabilities at September 30, 2022, consisted of the following: Final Interest Business- General Obligation Bonds and Certificates of Obligation Maturity Rates Governmental Type $6,225,000 Series 2016, General Obligation Refunding Bonds 2027 2.0 - 3.0% 2,275,000$ -$ 2,275,000$ -$ 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, 2022, the City was in compliance with these requirements. City of Colleyville, Texas Notes to the Basic Financial Statements 64 Governmental-type Activities General Obligation Bonds and Certificates of Obligation Fiscal Years Ending September 30, Principal Interest Total 2023 435,000$ 43,325$ 478,325$ 2024 445,000 32,350 477,350 2025 455,000 23,350 478,350 2026 465,000 14,150 479,150 2027 475,000 4,750 479,750 Total 2,275,000$ 117,925$ 2,392,925$ Governmental Activities Financed Purchases The City is a lessee for a noncancellable financed purchase leases of equipment whose terms range from 3 to 5 years and incur interest at rates between 2.69% and 3.69%. The lease liabilities totaled $639,923 as of September 30, 2022. The underlying assets related to the leases are classified as machinery and equipment. The amortized value of the right-to-use assets as of the end of the current fiscal year was $973,998. Lease amortization expense has been included in depreciation/amortization expense for the year ended September 30, 2022. The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2022, were as follows: Fiscal Years Ending September 30, 2023 289,185$ 2024 169,185 2025 169,185 2026 48,485 Total minimum lease payments 676,040 Less: amount representing interest (676,040) Present value of minimum lease payments -$ Governmental Activities City of Colleyville, Texas Notes to the Basic Financial Statements 65 Lease Liabilities The City is a lessee for several noncancellable leases of equipment whose terms last three to six years, bearing interest at their implicit rate of 2.32% Effective October 1, 2021, the City implemented GASB Statement No. 87, Leases. At implementation of this statement, the City initially measured the lease liability at the present value of payments expected to be made during the remaining lease term. The annual requirements to amortize lease liabilities outstanding at September 30, 2022 are as follows: Fiscal Years Ending September 30, 2023 50,006$ 2024 30,926 2025 15,836 2026 2,941 Total minimum lease payments 99,709 Less: amount representing interest 540,214 Present value of minimum lease payments 639,923$ Governmental Activities Lease Liabilities of the TIF The TIF is a lessee for a noncancellable lease of property that bears interest at 2.32% for its five year term. Effective October 1, 2021, the City implemented GASB Statement No. 87, Leases. At implementation of this statement, the City initially measured the lease liability at the present value of payments expected to be made during the remaining lease term. The annual requirements to amortize lease liabilities outstanding at September 30, 2022 are as follows: f Fiscal Years Ending September 30, 2023 68,201$ 2024 70,261 2025 41,995 Total minimum lease payments 180,457 Less: amount representing interest (5,536) Present value of minimum lease payments 174,921$ Governmental Activities Note 8. Defined Benefit Pension Policies Plan Descriptions The City participates as one of 901 plans in the defined benefit cash-balance plan administered by the Texas Municipal Retirement System (TMRS). TMRS is a statewide public retirement plan 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 agent multiple-employer retirement system for employees of Texas participating cities. The TMRS Act places the general administration and management of TMRS with a six- member, Governor-appointed Board of Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS issues a publicly available Comprehensive Annual Financial Report (Annual Report) that can be obtained at tmrs.com. City of Colleyville, Texas Notes to the Basic Financial Statements 66 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, 2021 valuation and measurement date, the following employees were covered by the benefit –terms: Inactive employees or beneficiaries currently receiving benefits 163 Inactive employees entitled to but not yet receiving benefits 153 Active employees 184 500 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 gross earnings during the fiscal year. The contribution rates for the City were 9.57% and 9.96% in calendar years 2021 and 2022, respectively. The city's contributions to TMRS for the year ended September 30, 2022, were $1,513,292, and were equal to the required contributions. Net Pension Liability/(Asset) The City's Net Pension Liability/(Asset) was measured as of December 31, 2021, and the Total Pension Liability/(Asset) used to calculate the Net Pension Liability/(Asset) was determined by an actuarial valuation as of that date. City of Colleyville, Texas Notes to the Basic Financial Statements 67 Actuarial Assumptions The Total Pension Liability/(Asset) in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 2.75% per year, adjusted down for population declines, if any 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 are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees is used with a four-year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income in order to satisfy the short-term and long-term funding needs of TMRS. The 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 2021 are summarized in the following table: Target Long-Term Expected Real Asset Class Allocation Rate of Return (Arithmetic) Global equity 35.0% 7.55% Core fixed income 6.0% 2.00% Non-core fixed income 20.0% 5.68% Other public and private mar k 12.0% 7.22% Real estate 12.0% 6.85% Hedge funds 5.0% 5.35% Private equity 10.0% 10.00% Total 100.0% City of Colleyville, Texas Notes to the Basic Financial Statements 68 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). 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, 2020 69,269,965$ 69,028,487$ 241,478$ Changes for the year: Service cost 2,348,736 - 2,348,736 Interest 4,647,079 - 4,647,079 Change of benefit terms - - - Difference between expected and actual experience 375,286 - 375,286 Changes of assumptions - - - Contributions - employer - 1,412,852 (1,412,852) Contributions - employee - 1,053,245 (1,053,245) Net investment income - 8,998,028 (8,998,028) Benefit payments, including refunds of employee contributions (3,197,440) (3,197,440) - Administrative expense - (41,637) 41,637 Other changes - 285 (285) Net changes 4,173,661 8,225,333 (4,051,672) Balance at December 31, 2021 73,443,626$ 77,253,820$ (3,810,194)$ 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) 6,395,194$ (3,810,194)$ (12,230,028)$ City of Colleyville, Texas Notes to the Basic Financial Statements 69 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, 2022, the City recognized pension expense of $591,346. The General Fund, Capital Projects Fund, Colleyville Economic Development Fund, Water and Sewer Fund, Drainage Utility Fund, Crime City Fund, and Juvenile Case Manager Fund have been used to liquidate pension liabilities. At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual economic experience 957,994$ -$ Changes in actuarial assumptions 65,175 - Difference between projected and actual investment earnings - (4,617,888) Contributions subsequent to the measurement date 1,104,470 - Total 2,127,639$ (4,617,888)$ $1,104,470 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability/(asset) for the measurement year ending December 30, 2021 (i.e. recognized in the City’s financial statements for the year ended September 30, 2023). Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Net Deferred Outflows Years Ended (Inflows) of December 30, Resources 2022 (173,627)$ 2023 (1,659,198) 2024 (894,173) 2025 (867,721) 2026 - Total (3,594,719)$ City of Colleyville, Texas Notes to the Basic Financial Statements 70 Note 9. Other Postemployment Benefits Plan Description The City also participates in the cost sharing multiple-employer defined benefit group-term life insurance plan operated by the TMRS known as the Supplemental Death Benefits Fund (SDBF). The City elected, by ordinance, to provide group-term life insurance coverage to both current and retired employees. The City may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the month of death); retired employees are insured for $7,500; this coverage is an “other post-employment benefit,” or OPEB. Membership in the plan at December 31, 2021, the date of the latest actuarial valuation, consists of the following: Inactive employees currently receiving benefits 107 Inactive employees entitled to but not yet receiving benefits 18 Active employees 184 Total 309 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, 2021 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% Salary increases 3.50% to 11.50% including inflation Discount rate 1.84% Salary increases were based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender- distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees is used with a four-year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income in order to satisfy the short-term and long-term funding needs of TMRS. City of Colleyville, Texas Notes to the Basic Financial Statements 71 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, 2020 776,913$ Changes for the year: Service cost 40,625 Interest 15,809 Change of benefit terms - Difference between expected and actual experience (20,857) Changes of assumptions 25,530 Benefit payments, including refunds of employee contributions (13,542) Net changes 47,565 Balance at December 31, 2021 824,478$ The following presents the OPEB liability of the City, calculated using the discount rate of 1.84%, 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 (0.84%) or one-percentage-higher (2.84%) than the current rate: 1% Decrease in Discount Discount 1% Increase in Discount 0.84% Rate 1.84% 2.84% Total OPEB liability 1,010,499$ 824,478$ 680,633$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB. For the year ended September 30, 2022, the City recognized OPEB expense of $88,449. The General Fund, Capital Projects Fund, Colleyville Economic Development Fund, Water and Sewer Fund, Drainage Utility Fund, Crime City Fund, and Juvenile Case Manager Fund have been used to liquidate OPEB liabilities. City of Colleyville, Texas Notes to the Basic Financial Statements 72 At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience -$ (26,758)$ Changes in assumptions and other inputs 157,232 (14,866) Contributions made subsequent to measurement date 3,327 - Total 160,559$ (41,624)$ $3,237 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability for the measurement year ending December 30, 2021 (i.e. recognized in the City’s financial statements for the year ended September 30, 2023). Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Outflows Years Ending (Inflows) of December 30, Resources 2022 32,015$ 2023 29,085 2024 28,706 2025 22,285 2026 3,458 Thereafter 59 Total 115,608$ 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 2022 amounted to approximately $11,072,869 and $3,157,906, respectively. City of Colleyville, Texas Notes to the Basic Financial Statements 73 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 ea ch 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, 2022. 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. There were no sales taxes rebated under this agreement for the year ended September 30, 2022. Note 14. New Accounting Pronouncements The GASB pronouncements effective in fiscal year 2022 and future fiscal years are listed as follows: In June 2017, GASB issued Statement No. 87, Leases. This Statement requires recognition of certain lease assets and liabilities for leases that were previously classified as operating leases and recognized as inflows or outflows of resources based on the payment provisions of the contract. The City and the TIF (the City’s discretely presented component unit) implemented this Statement in fiscal year 2022, resulting in $778,137 and $8,251 increases to beginning net position balances, respectively, representing the cumulative effect of the change in accounting standard for the governmental and component unit activities. In December 2019, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement requires that interest costs incurred before the end of a construction period be recognized as expenses in the period in which the costs are incurred. As a result, the interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. This Statement is effective for the fiscal year ending September 30, 2022, but did not require any restatements or material changes to the City’s financial reporting. City of Colleyville, Texas Notes to the Basic Financial Statements 74 The GASB issued Statement No. 92, Omnibus 2020. This Statement establishes accounting and financial reporting requirements for specific issues related to leases, intensity transfers of assets, postemployment benefits, government acquisitions, risk financing and insurance-related activities of public entity risk pools, fair value measurements, and derivative instruments. This Statement is effective for the fiscal year ending September 30, 2022 but did not require any restatements or material changes to the City’s financial reporting. The GASB issued Statement No. 93, Replacement of Interbank Offered Rates. This Statement establishes accounting and financial reporting requirements related to the replacement of IBORs in hedging derivative instruments and leases. This Statement is effective for the fiscal year ending September 30, 2022, but did not require any restatements or material changes to the City’s financial reporting. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, improves financial reporting by addressing these relationships and availability payment arrangements. This Statement will be effective for the City in the fiscal year ending September 30, 2023. The City is currently evaluating the impact of this Statement. GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA), provides guidance on the accounting and financial reporting of contractual arrangements. It defines SBITA; establishes that a SBITA results in a right-to-use subscription asset; provides capitalization criteria; and requires note disclosures. This Statement will be effective for the City in the fiscal year ending September 30, 2023. The City is currently evaluating the impact of this Statement. The GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. This Statement modifies the applicability of certain component unit criteria as they relate to defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans. This Statement is effective for the fiscal year ending September 30, 2022, but did not require any restatements or material changes to the City’s financial reporting. GASB Statement No. 99, Omnibus 2022, enhances comparability in accounting and financial reporting and improves the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements of this Statement related to extension of use of London Interbank Offered Rate (LIBOR), accounting for Supplemental Nutrition Assistance Program (SNAP) distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement No. 34, as amended and terminology updates related to Statements No. 53 and 63 are effective immediately and implemented in the current year. All other requirements of this Statement will be effective for the City in the fiscal years ending September 30, 2023 and 2024. The City is currently evaluating the impact of this Statement. City of Colleyville, Texas Notes to the Basic Financial Statements 75 GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62, enhances the accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The City has implemented this Statement. GASB Statement No. 101, Compensated Absences, will better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement will be effective for the City in the fiscal year ending September 30, 2025. The City is currently evaluating the impact of this Statement. GASB Statement No. 101, Compensated Absences, will better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City is currently evaluating the impact of this Statement. 76 This Page Intentionally Left Blank 77 Required Supplementary Information 78 This Page Intentionally Left Blank 79 Budgetary Comparison Schedules 80 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit A-1 General Fund Budgetary Comparison Schedule (GAAP Basis) For the Fiscal Year Ended September 30, 2022 See Notes to the Budgetary Comparison Schedules 81 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 22,118,000$ 22,118,000$ 23,073,252$ 955,252$ Fines and forfeitures 586,000 586,000 731,183 145,183 Licenses, permits and fees 885,000 885,000 929,415 44,415 Intergovernmental 194,318 194,318 194,318 - Charges for services 1,466,533 1,466,533 1,665,903 199,370 Grants/Contributions - - 2,728,151 2,728,151 Investment earnings (losses) 25,000 25,000 (74,321) (99,321) Miscellaneous 60,100 60,100 168,898 108,798 TOTAL REVENUES 25,334,951 25,334,951 29,416,799 4,081,848 EXPENDITURES Current: General government 4,787,088 4,787,088 4,738,555 48,533 Community development and engineering 1,588,377 1,588,377 1,551,442 36,935 Fire and rescue 6,718,293 6,718,293 6,692,324 25,969 Leisure services 2,407,337 2,407,337 2,284,832 122,505 Maintenance 779,861 779,861 712,425 67,436 Municipal court 546,905 546,905 480,884 66,021 Police services 5,178,800 5,178,800 5,138,559 40,241 Streets and drainage 1,078,437 1,078,437 866,110 212,327 Capital outlay 30,340 30,340 77,984 (47,644) TOTAL EXPENDITURES 23,115,438 23,115,438 22,543,115 572,323 Excess of revenues over expenditures 2,219,513 2,219,513 6,873,684 4,654,171 OTHER FINANCING SOURCES (USES) Proceeds from the sale of property 20,000 20,000 49,141 29,141 Transfers in 304,739 304,739 304,739 - Transfers out (2,014,706) (9,753,695) (9,753,695) - TOTAL OTHER FINANCING SOURCES (USES)(1,689,967) (9,428,956) (9,399,815) 29,141 NET CHANGE IN FUND BALANCE 529,546 (7,209,443) (2,526,131) 4,683,312 FUND BALANCES, beginning of year 10,917,370 10,917,370 10,917,370 - FUND BALANCES, end of year 11,446,916$ 3,707,927$ 8,391,239$ 4,683,312$ 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, 2022 82 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 2,150,000$ 2,150,000$ 2,583,813$ 433,813$ Investment earnings 10,000 10,000 28,053 18,053 Miscellaneous 225,000 225,000 255 (224,745) Total revenues 2,385,000 2,385,000 2,612,121 227,121 EXPENDITURES General government 217,000 217,000 306,502 (89,502) Leisure services 1,141,975 1,141,975 964,004 177,971 Capital outlay 1,228,653 1,228,653 1,078,220 150,433 Total expenditures 2,587,628 2,587,628 2,348,726 238,902 Excess (deficiency) of revenues over (under) expenditures (202,628) (202,628) 263,395 466,023 OTHER FINANCING SOURCES (USES) Transfers from other funds (5,000,000) (5,000,000) - 5,000,000 Total other financing sources (uses) (5,000,000) (5,000,000) - 5,000,000 Net change in fund balance (5,202,628) (5,202,628) 263,395 5,466,023 FUND BALANCE, beginning of year 6,217,460 6,217,460 6,217,460 - FUND BALANCE, end of year 1,014,832$ 1,014,832$ 6,480,855$ 5,466,023$ Budgeted Amounts City of Colleyville, Texas Notes to the Budgetary Comparison Schedules For the Fiscal Year Ended September 30, 2022 83 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 City 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, 2022 were: General Fund: Capital Outlay ($47,644) Colleyville Economic Development Fund General Government ($89,502)  The General Fund capital outlay expenditures exceeded appropriations by $47,644 because of unbudgeted expenditures made for radios to meet operational needs, and floor scrubbers for the Colleyville Center.  The Colleyville Economic Development Fund (CEDC) general government expenditures exceeded appropriations by $89,502 primarily due to overspending on special events such as Stars and Guitars and the Tree Lighting. City of Colleyville, Texas Exhibit A-3 Schedule of Changes in Net Pension Liability and Related Ratios Texas Municipal Retirement System Last Eight Measurement Years 84 Measurement Measurement Measurement Measurement Measurement Measurement Measurement Measurement Year Year Year Year Year Year Year Year 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability: Service cost 2,348,736$ 2,314,748$ 2,114,121$ 2,067,935$ 2,045,941$ 1,920,420$ 1,820,192$ 1,598,908$ Interest 4,647,079 4,338,383 4,016,942 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 375,286 897,140 943,948 713,928 19,139 205,568 (55,444) 136,216 Change in assumptions - - 282,429 - - - 937,119 - Benefit payments, including refunds of employee contributions (3,197,440) (2,790,558) (2,600,777) (2,542,340) (2,151,523) (2,133,755) (1,814,665) (1,728,299) Net change in total pension liability 4,173,661 4,759,713 4,756,663 3,987,709 3,441,865 3,294,524 4,036,878 2,945,588 Total pension liability - beginning 69,269,965 64,510,252 59,753,589 55,765,880 52,324,015 49,029,491 44,992,613 42,047,025 Total pension liability - ending (a) 73,443,626 69,269,965 64,510,252 59,753,589 55,765,880 52,324,015 49,029,491 44,992,613 Plan fiduciary net position: Contributions - employer 1,412,852 1,330,792 1,159,312 1,159,516 1,082,013 922,484 903,631 745,874 Contributions - employee 1,053,245 1,042,009 948,036 920,251 898,468 851,897 822,553 763,324 Net investment income 8,998,028 4,901,713 8,718,902 (1,757,178) 7,166,092 3,298,224 72,103 2,657,437 Benefit payments, including refunds of employee contributions (3,197,440) (2,790,558) (2,600,777) (2,542,340) (2,151,523) (2,133,755) (1,814,665) (1,728,299) Administrative expense (41,637) (31,719) (49,271) (33,959) (37,136) (37,249) (43,918) (27,747) Other 285 (1,238) (1,480) (1,774) (1,882) (2,007) (2,170) (2,281) Net change in plan fiduciary net position 8,225,333 4,450,999 8,174,722 (2,255,484) 6,956,032 2,899,594 (62,466) 2,408,308 Plan fiduciary net position - beginning 69,028,487 64,577,488 56,402,766 58,658,250 51,702,218 48,802,624 48,865,090 46,456,782 Plan fiduciary net position - ending (b) 77,253,820 69,028,487 64,577,488 56,402,766 58,658,250 51,702,218 48,802,624 48,865,090 Net pension liability (asset) - ending (a) - (b)(3,810,194)$ 241,478$ (67,236)$ 3,350,823$ (2,892,370)$ 621,797$ 226,867$ (3,872,477)$ Plan fiduciary net position as a percentage of total pension liability (asset) 105.19% 99.65% 100.10% 94.39% 105.19% 98.81% 99.54% 108.61% Covered payroll 15,046,358$ 14,885,841$ 13,543,374$ 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 -25.32% 1.62% -0.50% 25.49% -22.53% 5.11% 1.93% -35.51% Note: Only eight 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 Nine Fiscal Years 85 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarially determined contribution 1,513,292$ 1,352,700$ 2,197,460$ 2,596,092$ 1,538,670$ 1,048,848$ 941,907$ 868,363$ 738,034$ Contribution in relation of the actuarially determined contribution 1,513,292 1,352,700 2,197,460 2,596,092 1,538,670 1,048,848 941,907 868,363 738,034 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 15,360,973$ 14,821,499$ 14,213,930$ 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 9.85% 9.13% 15.46% 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 nine 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, 2022 86 Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 23 years (longest amortization ladder) Asset Valuation Method 10 Year smoothed market; 12% soft corridor Inflation 2.50% Salary Increases 3.50% to 11.5% 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 2019 valuation pursuant to an experience study of the period 2014 - 2018. Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females. The rates are projected on a fully generational basis with scale UMP. 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 Five Years 87 Measurement Measurement Measurement Measurement Measurement Year 2021 Year 2020 Year 2019 Year 2018 Year 2017 Total OPEB liability: Service cost 40,625$ 32,749$ 23,024$ 26,293$ 21,820$ Interest 15,809 17,646 18,777 16,950 16,399 Changes of benefit terms - - - - - Difference between expected and actual experience (20,857) (3,392) (9,503) (5,282) - Change in assumptions 25,530 106,857 102,645 (38,274) 41,681 Benefit payments, including refunds of employee contributions (13,542) (4,466) (4,063) (3,944) (3,851) Net changes 47,565 149,394 130,880 (4,257) 76,049 Net OPEB liability - beginning 776,913 627,519 496,639 500,896 424,847 Net OPEB liability - ending 824,478$ 776,913$ 627,519$ 496,639$ 500,896$ Covered payroll 15,046,358$ 14,885,841$ 13,543,374$ 13,146,439$ 12,835,255$ Net OPEB liability as a percentage of covered payroll 5.48% 5.22% 4.63% 3.78% 3.90% Note: Only five 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- OPEB Liability Required Supplementary Information For the Fiscal Year Ended September 30, 2022 88 Inflation 2.50% Salary Increases 3.50% to 11.5% including inflation Discount Rate* 1.84% Retirees' share of benefit-related cost $0 Administrative expenses Mortality rates - service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Mortality rates - disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year setforward for males and a 3 year set-forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. * The discount rate was based on the Fidelity Index's "20-year Municipal GO AA Index" rates as of December 31, 2021. All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68. 89 Combining and Individual Fund Financial Statements and Schedules 90 This Page Intentionally Left Blank City of Colleyville, Texas Exhibit B-1 Debt Service Fund Budgetary Comparison Schedule (GAAP Basis) For the Fiscal Year Ended September 30, 2022 91 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 621,500$ 621,500$ 619,275$ (2,225)$ Investment earnings 6,000 6,000 6,452 452 Total revenues 627,500 627,500 625,727 (1,773) EXPENDITURES Principal retirement 764,173 764,173 735,551 28,622 Interest and fiscal charges 57,725 57,725 85,596 (27,871) Total expenditures 821,898 821,898 821,147 751 Deficiency of revenues under expenditures (194,398) (194,398) (195,420) (1,022) Net change in fund balance (194,398) (194,398) (195,420) (1,022) FUND BALANCE, beginning of year 1,066,797 1,066,797 1,066,797 - FUND BALANCE, end of year 872,399$ 872,399$ 871,377$ (1,022)$ Budgeted Amounts 92 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. Sesquicentennial Fund – This fund is used to account for sales of the City’s Sesquicentennial anniversary history book. Sales proceeds are used to benefit of the City of Colleyville’s historical purposes. 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 City formed to act on behalf of the City for financing the development of crime control throughout the City. 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. Public Art — This fund is used to account for the acquisition of art to be placed in City owned facilities with high public visibility. Juvenile Case Manager — This fund is used to account for staff, whose primary role is handling juvenile defendants in terms of teen court dockets, all school violations including truancy, failure to attend school and parental noncompliance violations, and mandatory classes for drug, tobacco and alcohol defendants, as permitted by state statute. Hotel Tax Fund — This fund is used to account for all hotel occupancy tax revenues which are restricted by state statute and can only be used on expenditures related to tourism activities. 93 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. 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. City of Colleyville, Texas Non-Major Governmental Funds Combining Balance Sheet September 30, 2022 94 Voluntary Sesquicentennial Tree Library Voluntary Park Library Fund Preservation Donation Cash and cash equivalents 179,204$ 58,610$ 19,178$ 21,100$ 68,759$ Investments 1,101,953 498,489 3,346 255,551 - Due from other governments - - - - - Accrued interest - - - - - TOTAL ASSETS 1,281,157$ 557,099$ 22,524$ 276,651$ 68,759$ LIABILITIES Accounts payable 17,437$ 653$ -$ -$ -$ Accrued liabilities - - - - - TOTAL LIABILITIES 17,437 653 - - - FUND BALANCES Restricted - - 22,524 - 68,759 Committed 1,263,720 556,446 - 276,651 - Assigned - - - - - TOTAL FUND BALANCES 1,263,720 556,446 22,524 276,651 68,759 TOTAL LIABILITIES AND FUND BALANCES 1,281,157$ 557,099$ 22,524$ 276,651$ 68,759$ LIABILITIES AND FUND BALANCES ASSETS Special Revenue Exhibit B-2 95 Recreational Special Event LEOSE Crime District Donations 21,468$ 373$ 370,307$ 45,619$ - - 2,449,412 - - - 450,975 - - - 616 - 21,468$ 373$ 3,271,310$ 45,619$ -$ -$ 8,692$ 1,294$ - - 42,281 - - - 50,973 1,294 - 373 3,220,337 44,325 - - - - 21,468 - - - 21,468 373 3,220,337 44,325 21,468$ 373$ 3,271,310$ 45,619$ Special Revenue City of Colleyville, Texas Non-Major Governmental Fund Combining Balance Sheet September 30, 2022 96 Court Court Juvenile Case Hotel Technology Security Public Art Manager Tax Fund ASSETS Cash and cash equivalents 856$ 27,934$ 2,033$ 78,331$ 12,839$ Investments 9,181 14,740 6,131 - 114,315 Due from other governments 7,051 24,296 - - 41,838 Accrued interest - - - - - TOTAL ASSETS 17,088$ 66,970$ 8,164$ 78,331$ 168,992$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ Accrued liabilities - - - - 7,050 TOTAL LIABILITIES - - - - 7,050 FUND BALANCES Restricted 17,088 66,970 - 78,331 161,942 Committed - - - - - Assigned - - 8,164 - - TOTAL FUND BALANCES 17,088 66,970 8,164 78,331 161,942 TOTAL LIABILITIES AND FUND BALANCES 17,088$ 66,970$ 8,164$ 78,331$ 168,992$ Special Revenue LIABILITIES AND FUND BALANCES Exhibit B-2 97 Total Vehicle/ Non-Major Parks Park Land Equipment Governmental Tomorrow Dedication Replacement Funds 19,708$ 29,482$ 246,025$ 1,201,826$ 882,845 608,418 1,521,126 7,465,507 - - - 524,160 - - - 616 902,553$ 637,900$ 1,767,151$ 9,192,109$ -$ -$ 629$ 28,705$ - - - 49,331 - - 629 78,036 - - - 3,680,649 902,553 637,900 - 3,637,270 - - 1,766,522 1,796,154 902,553 637,900 1,766,522 9,114,073 902,553$ 637,900$ 1,767,151$ 9,192,109$ 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, 2022 98 Voluntary Sesquincentennial Tree Library Voluntary Park Library Fund Preservation Donation REVENUES Taxes -$ -$ -$ -$ -$ Fines and forfeitures - - - 11,000 - Intergovernmental - - - - - Grants/contributions 180,641 180,642 - - 28,057 Investment earnings 7,509 3,223 22 1,653 - Miscellaneous - - 194 - - Total revenues 188,150 183,865 216 12,653 28,057 EXPENDITURES Current: General government - - - - - Fire and rescue - - - - - Leisure services 24,925 166,122 - - 19,303 Municipal court - - - - - Police services - - - - - Capital outlay 86,192 - - - - Total expenditures 111,117 166,122 - - 19,303 Excess (deficiency) of revenues over expenditures 77,033 17,743 216 12,653 8,754 OTHER FINANCING SOURCES (USES) Proceeds from financing leases - - - - - Proceeds from the sale of property - - - - - Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - NET CHANGE IN FUND BALANCES 77,033 17,743 216 12,653 8,754 FUND BALANCES, BEGINNING OF YEAR 1,186,687 538,703 22,308 263,998 60,005 FUND BALANCES, END OF YEAR 1,263,720$ 556,446$ 22,524$ 276,651$ 68,759$ Special Revenue Exhibit B-3 99 Recreational Special Event LEOSE Crime District Donations -$ -$ 2,524,850$ -$ - - - - - 3,207 - - 5,633 - 134,530 22,297 - - 9,240 - - - 2,549 - 5,633 3,207 2,671,169 22,297 - - - - - 885 - 13,303 - - - 2,263 - - - - - 2,549 1,608,707 - - - 466,542 - - 3,434 2,075,249 15,566 5,633 (227) 595,920 6,731 - - 11,220 - - - - - - - - - - (10,000) - - - 1,220 - 5,633 (227) 597,140 6,731 15,835 600 2,623,197 37,594 21,468$ 373$ 3,220,337$ 44,325$ 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, 2022 100 Court Court Public Juvenile Case Hotel Technology Security Art Manager Tax Fund REVENUES Taxes -$ -$ -$ -$ 200,156$ Fines and forfeitures 21,167 25,713 - 26,559 - Intergovernmental 28,204 36,868 - - - Grants/contributions - - - - - Investment earnings 57 95 39 - 831 Miscellaneous - - - - - Total revenues 49,428 62,676 39 26,559 200,987 EXPENDITURES Current: General government - - - - - Fire and rescue - - - - - Leisure services - - - - 284,605 Municipal court 51,948 26,988 - - - Police services - - - - - Capital outlay - - - - - Total expenditures 51,948 26,988 - - 284,605 Excess (deficiency) of revenues over expenditures (2,520) 35,688 39 26,559 (83,618) OTHER FINANCING SOURCES (USES) Proceeds from financing leases - - - - - Proceeds from the sale of property - - - - - Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - NET CHANGE IN FUND BALANCES (2,520) 35,688 39 26,559 (83,618) FUND BALANCES, BEGINNING OF YEAR 19,608 31,282 8,125 51,772 245,560 FUND BALANCES, END OF YEAR 17,088$ 66,970$ 8,164$ 78,331$ 161,942$ Special Revenue Exhibit B-3 101 Total Vehicle/ Non-Major Parks Park Land Equipment Governmental Tomorrow Dedication Replacement Funds -$ -$ -$ 2,725,006$ - - - 84,439 - - - 68,279 - - 26,105 577,905 6,507 4,011 10,573 43,760 - 7,208 - 9,951 6,507 11,219 36,678 3,509,340 - - 117,298 117,298 - - - 14,188 - - - 497,218 - - - 78,936 - - - 1,611,256 49,748 55,499 138,673 796,654 49,748 55,499 255,971 3,115,550 (43,241) (44,280) (219,293) 393,790 - - 5,268 16,488 - - 79,120 79,120 - - 524,706 524,706 - - - (10,000) - - 609,094 610,314 (43,241) (44,280) 389,801 1,004,104 945,794 682,180 1,376,721 8,109,969 902,553$ 637,900$ 1,766,522$ 9,114,073$ Capital Projects City of Colleyville, Texas Exhibit B-4 Crime District Fund Budgetary Comparison Schedule (GAAP Basis) For the Fiscal Year Ended September 30, 2022 102 Variance with Final Budget - Positive Original Final Actual (Negative) REVENUES Taxes 2,000,000$ 2,000,000$ 2,524,850$ 524,850$ Investment earnings 1,200 1,200 9,240 8,040 Grants/Contributions - - 134,530 134,530 Miscellaneous - - 2,549 2,549 Total revenues 2,001,200 2,001,200 2,671,169 669,969 EXPENDITURES Police services 1,694,420 1,694,420 1,608,707 85,713 Capital outlay 531,151 531,151 466,542 64,609 Total expenditures 2,225,571 2,225,571 2,075,249 150,322 Excess of revenues over expenditures (224,371) (224,371) 595,920 820,291 OTHER FINANCING SOURCES (USES) Lease proceeds - - 11,220 11,220 Transfers out (10,000) (10,000) (10,000) - Total other financing sources (uses) (10,000) (10,000) 1,220 11,220 Net change in fund balance (234,371) (234,371) 597,140 831,511 FUND BALANCE, beginning of year 2,623,197 2,623,197 2,623,197 - FUND BALANCE, end of year 2,388,826$ 2,388,826$ 3,220,337$ 831,511$ Budgeted Amounts 103 Custodial Funds The Custodial Funds are used to account for resources held for others in a custodial capacity. The City maintains the following Custodial Funds: Employee Activity Fund – This fund is used to account for funds held by the City for the benefit of employees of the City. Police Asset Forfeiture —This fund is used to account for funds received from the sale of assets seized in criminal-related activities held until their remittance. City of Colleyville, Texas Exhibit C-1 Statement of Fiduciary Net Position - Employee Activity Fund and Police Asset Forfeiture Fund September 30, 2022 104 Employee Police Asset Activity Forfeiture Fund Fund Total Cash and cash equivalents 8,579$ 14,529$ 23,108$ Investments - 9,256 9,256 TOTAL ASSETS 8,579 23,785 32,364 Accounts payable 150 - 150 Total liabilities 150 - 150 Restricted for other purposes 8,429 23,785 32,214 8,429$ 23,785$ 32,214$ ASSETS LIABILITIES NET POSITION TOTAL NET POSITION City of Colleyville, Texas Exhibit C-2 Statement of Changes in Fiduciary Net Position - Employee Activity Fund and Police Asset Forfeiture Fund For the Fiscal Year Ended September 30, 2022 105 Employee Police Asset Activity Forfeiture Fund Fund Total Contributions 5,446$ -$ 5,446$ Forfeitures - 1,683 1,683 Investment earnings - 109 109 Other additions 3,193 1,355 4,548 TOTAL ADDITIONS 8,639 3,147 11,786 Operating expenses 3,801 16,312 20,113 TOTAL DEDUCTIONS 3,801 16,312 20,113 4,838 (13,165) (8,327) Net position, beginning 3,591 36,950 40,541 8,429$ 23,785$ 32,214$ ADDITIONS DEDUCTIONS CHANGE IN NET POSITION NET POSITION, ENDING 106 This Page Intentionally Left Blank 107 Statistical Section 108 This Page Intentionally Left Blank 109 Statistical Section This part of the City of Colleyville Annual Comprehensive 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 .................................................................................................................................. 110 These schedules contain trend information intended to help the reader understand how the City's financial position has changed over time. Revenue Capacity Information ............................................................................................................................ 116 These schedules contain information intended to help the reader assess the City's most significant revenue source, property taxes. Debt Capacity Information ................................................................................................................................... 121 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 ......................................................................................................... 126 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 ........................................................................................................................................... 129 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) 110 2013 2014 2015 2016 2017 Governmental activities Net investment in capital assets 84,414,252$ 89,754,051$ 98,958,693$ 97,982,160$ 99,881,334$ Restricted for: Debt service 857,143 831,073 744,295 692,093 612,641 Court Security and technology 101,411 109,766 154,901 215,142 158,853 Grant programs 16,489 9,190 9,844 10,751 11,530 Leisure services 207,770 224,064 233,472 233,290 353,561 Economic development 2,277,373 2,733,995 2,975,894 3,456,897 4,221,531 Police 1,223,271 1,403,502 1,485,735 1,485,771 1,560,027 Historical purposes - - - - - Unrestricted 27,113,566 30,119,775 34,519,503 36,767,262 35,773,373 Total governmental activities net position 116,211,275$ 125,185,416$ 139,082,337$ 140,843,366$ 142,572,850$ Business-type activities Net investment in capital assets 39,269,943$ 41,567,161$ 44,823,618$ 44,010,618$ 44,123,735$ Unrestricted 13,702,724 14,827,594 15,260,882 17,263,830 19,185,890 Total business-type activities net position 52,972,667$ 56,394,755$ 60,084,500$ 61,274,448$ 63,309,625$ Primary government Net investment in capital assets 123,684,195$ 131,321,212$ 143,782,311$ 141,992,778$ 144,005,069$ Restricted for: Debt service 857,143 831,073 744,295 692,093 612,641 Court Security and technology 101,411 109,766 154,901 215,142 158,853 Grant programs 16,489 9,190 9,844 10,751 11,530 Leisure services 207,770 224,064 233,472 233,290 353,561 Economic development 2,277,373 2,733,995 2,975,894 3,456,897 4,221,531 Police 1,223,271 1,403,502 1,485,735 1,485,771 1,560,027 Historical purposes - - - - - Unrestricted 40,816,290 44,947,369 49,780,385 54,031,092 54,959,263 Total primary governmental net position 169,183,942$ 181,580,171$ 199,166,837$ 202,117,814$ 205,882,475$ Source: Comprehensive Annual Financial Report Fiscal Year Table 1 111 2018 2019 2020 2021 2022 100,382,597$ 101,081,404$ 106,590,088$ 113,142,374$ 114,903,231$ 1,936,893 1,476,905 1,116,977 1,059,604 876,349 74,767 63,506 72,041 102,662 162,389 1,554 74,119 4,520 1,431 - 564,555 612,500 509,204 343,159 275,026 4,471,253 4,150,118 4,479,889 6,217,460 6,480,855 1,455,308 1,318,021 1,693,079 2,623,797 3,220,710 - - - 23,308 22,524 35,878,519 35,780,949 35,586,831 36,262,212 41,673,134 144,765,446$ 144,557,522$ 150,052,629$ 159,776,007$ 167,614,218$ 43,560,389$ 42,652,195$ 44,311,565$ 45,950,733$ 45,548,947$ 22,400,538 24,441,942 24,163,534 23,453,069 26,918,581 65,960,927$ 67,094,137$ 68,475,099$ 69,403,802$ 72,467,528$ 143,942,986$ 143,733,599$ 150,901,653$ 159,093,107$ 160,452,178$ 1,936,893 1,476,905 1,116,977 1,059,604 876,349 74,767 63,506 72,041 102,662 162,389 1,554 74,119 4,520 1,431 - 564,555 612,500 509,204 343,159 275,026 4,471,253 4,150,118 4,479,889 6,217,460 6,480,855 1,455,308 1,318,021 1,693,079 2,623,797 3,220,710 - - - - 22,524 58,279,057 60,222,891 59,750,365 59,715,281 68,591,715 210,726,373$ 211,651,659$ 218,527,728$ 229,156,501$ 240,081,746$ Fiscal Year City of Colleyville, Texas Changes in Net Position, Last Ten Fiscal Years (Accrual Basis of Accounting) (Unaudited) 112 2013 2014 2015 2016 2017 Expenses Governmental activities: General government 4,075,001$ 4,103,928$ 4,676,185$ 4,449,317$ 4,881,741$ Community development and engineering 1,429,755 1,613,311 1,582,461 1,558,750 1,672,823 Fire 4,529,225 4,625,036 5,264,026 4,783,421 5,524,975 Leisure services 4,106,822 3,776,068 4,042,252 4,701,443 4,987,965 Maintenance 494,545 575,696 684,301 689,861 1,243,614 Municipal court 586,709 501,604 522,422 448,420 606,269 Police 4,961,444 5,019,343 5,681,698 5,734,116 6,093,309 Streets and drainage 5,322,510 4,128,365 4,404,701 5,150,390 3,578,365 Interest on long-term debt 724,458 717,045 536,161 614,159 408,268 Total governmental activities expenses 26,230,469 25,060,396 27,394,207 28,129,877 28,997,329 Business-type activities: Water and sewer 12,544,530 13,238,893 14,055,232 13,995,038 14,779,262 Drainage 707,647 571,886 833,599 563,268 646,145 Total business-type activities expenses 13,252,177 13,810,779 14,888,831 14,558,306 15,425,407 Total primary government expenses 39,482,646$ 38,871,175$ 42,283,038$ 42,688,183$ 44,422,736$ Program revenues Governmental activities: Charges for Services: General government 15,000$ 15,000$ 17,500$ 15,075$ 338,857$ Community development 927,690 1,387,329 1,587,038 1,356,581 1,148,293 Fire and rescue 308,339 377,021 327,264 387,705 340,630 Leisure services 501,260 510,991 503,098 505,203 553,633 Municipal court 1,271,095 1,268,447 1,474,485 1,306,924 1,181,280 Police 70,513 71,022 75,415 93,566 98,859 Streets and drainage 316,338 347,565 802,551 794,169 634,918 Operating grants and contributions 468,361 486,689 450,559 514,845 507,616 Capital grants and contributions 1,158,050 5,943,465 7,712,266 319,541 1,302,174 Total governmental activities program revenues 5,036,646 10,407,529 12,950,176 5,293,609 6,106,260 Business-type activities: Charges for services: Water and sewer 14,661,491 14,789,641 15,800,163 15,499,159 15,956,329 Drainage 928,863 939,868 948,565 954,642 985,636 Operating grants and contributions Capital grants and contributions 876,660 2,707,835 2,362,261 43,104 481,413 Total business-type activities program revenues 16,467,014 18,437,344 19,110,989 16,496,905 17,423,378 Total primary government program revenues 21,503,660$ 28,844,873$ 32,061,165$ 21,790,514$ 23,529,638$ Net (expenses) revenue Governmental activities (21,193,823)$ (14,652,867)$ (14,444,031)$ (22,836,268)$ (22,891,069)$ Business-type activities 3,214,837 4,626,565 4,222,158 1,938,599 1,997,971 Total primary government net expenses (17,978,986)$ (10,026,302)$ (10,221,873)$ (20,897,669)$ (20,893,098)$ General revenues and other changes in net position Governmental activities: Taxes: Property taxes 12,497,692$ 12,950,832$ 13,493,621$ 13,790,347$ 14,548,461$ Franchise taxes 2,074,731 2,172,801 2,319,723 2,206,890 2,105,881 Sales taxes 5,902,557 6,472,195 6,705,914 7,252,963 7,304,507 Other 68,592 98,160 107,977 106,607 263,587 Interest on investments 77,269 39,697 100,843 142,343 148,933 Gain (Loss) on sale of capital assets - 810,020 - 51,849 17,000 Transfers 1,112,540 1,180,292 1,178,590 895,668 63,319 Miscellaneous 85,562 61,643 82,873 150,630 168,865 Total governmental activities 21,818,943 23,785,640 23,989,541 24,597,297 24,620,553 Business-type activities: Interest on investments 38,987 23,655 52,480 76,014 100,525 Gain (Loss) on sale of capital assets 103,437 40,814 5,062 71,003 - Transfers (1,112,540) (1,180,292) (1,178,590) (895,668) (63,319) Miscellaneous - - - - - Total business-type activities (970,116) (1,115,823) (1,121,048) (748,651) 37,206 Total primary government 20,848,827$ 22,669,817$ 22,868,493$ 23,848,646$ 24,657,759$ Change in net position Governmental activities 625,120$ 9,132,773$ 9,545,510$ 1,761,029$ 1,729,484$ Business-type activities 2,244,721 3,510,742 3,101,110 1,189,948 2,035,177 Total primary government 2,869,841$ 12,643,515$ 12,646,620$ 2,950,977$ 3,764,661$ Source: Comprehensive Annual Financial Report Fiscal Year Table 2 113 2018 2019 2020 2021 2022 5,330,690$ 5,791,827$ 5,788,907$ 5,668,238$ 4,974,336$ 1,387,909 1,398,052 1,609,571 1,591,996 1,567,235 5,690,454 6,192,307 6,437,928 6,740,521 7,126,677 4,271,760 4,710,673 4,569,933 4,499,889 4,668,826 738,834 770,762 729,754 775,477 695,435 595,879 575,098 579,980 638,025 559,820 6,634,046 6,749,202 7,204,613 6,978,311 7,276,394 4,009,383 6,181,453 4,647,801 4,696,395 4,561,627 334,839 300,840 240,231 111,944 30,510 28,993,794 32,670,214 31,808,718 31,700,796 31,460,860 15,257,125 15,463,642 17,054,796 16,334,509 19,205,539 740,994 863,826 730,346 812,505 719,298 15,998,119 16,327,468 17,785,142 17,147,014 19,924,837 44,991,913$ 48,997,682$ 49,593,860$ 48,847,810$ 51,385,697$ 35,684$ 29,800$ 14,488$ 28,033$ 27,857$ 1,447,081 1,361,965 1,399,114 1,131,498 1,215,522 378,019 397,646 397,612 399,288 480,541 563,228 521,448 228,218 453,096 531,775 1,110,960 1,123,157 1,095,647 1,222,696 1,261,507 101,662 93,495 75,993 65,379 74,332 758,952 579,408 323,883 267,372 198,129 614,794 771,681 2,346,529 3,491,361 4,253,340 406,094 369,126 3,756,508 198,935 895,376 5,416,474 5,247,726 9,637,992 7,257,658 8,938,379 17,332,891 16,057,020 16,845,727 17,422,265 21,639,947 1,001,180 1,011,428 1,007,514 1,013,401 1,011,238 - - 250,596 277,639 188,749 1,244,335 - 326,850 18,611,710 17,257,197 19,097,576 18,435,666 23,228,631 24,028,184$ 22,504,923$ 28,735,568$ 25,693,324$ 32,167,010$ (23,577,320)$ (27,422,488)$ (22,170,726)$ (24,443,138)$ (22,522,481)$ 2,613,591 929,729 1,312,434 1,288,652 3,303,794 (20,963,729)$ (26,492,759)$ (20,858,292)$ (23,154,486)$ (19,218,687)$ 15,471,246$ 15,676,533$ 16,075,481$ 16,398,025$ 16,292,731$ 1,982,578 2,086,683 1,874,032 1,724,583 1,853,644 7,578,861 7,584,353 8,248,647 9,445,150 10,284,047 351,715 350,411 198,861 235,209 339,216 315,611 967,396 544,752 99,055 43,962 51,620 14,116 250,601 61,287 128,261 - 270,403 250,030 409,276 304,739 126,859 89,869 223,429 5,787,102 336,955 25,878,490 27,039,764 27,665,833 34,159,687 29,583,555 - 455,178 256,811 31,280 1,258 - - 18,980 - 21,605 (260,238) (270,403) (250,030) (409,276) (304,739) 183,685 18,706 42,767 17,652 41,808 (76,553) 203,481 68,528 (360,344) (240,068) 25,801,937$ 27,243,245$ 27,734,361$ 33,799,343$ 29,343,487$ 2,301,170$ (382,724)$ 5,495,107$ 9,716,549$ 7,061,074$ 2,537,038 1,133,210 1,380,962 928,308 3,063,726 4,838,208$ 750,486$ 6,876,069$ 10,644,857$ 10,124,800$ Fiscal Year City of Colleyville, Texas Table 3 Fund Balances - Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (Unaudited) 114 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022General fundNonspendable 1,759$ 1,269$ 2,119$ 9,388$ 11,152$ -$ 1,291$ 818$ 23,150$ 1,233$ Committed 813,536 813,536 813,536 796,438 682,156 659,712 655,546 655,546 660,687 664,423 Unassigned 11,006,716 10,080,617 8,736,746 8,719,620 8,866,760 8,991,999 9,102,499 12,614,900 10,233,533 7,725,583 Total general fund11,822,011$ 10,895,422$ 9,552,401$ 9,525,446$ 9,560,068$ 9,651,711$ 9,759,336$ 13,271,264$ 10,917,370$ 8,391,239$ All other governmental fundsNon-spendable -$ -$ -$ -$ -$ -$ -$ -$ -$ 38,666$ Restricted 4,757,937 5,383,007 5,689,356 6,162,352 6,998,697 7,265,412 7,063,130 7,884,736 10,377,614 11,032,881 Committed 14,695,028 18,982,072 20,988,217 22,372,620 22,853,666 23,874,535 25,421,317 22,934,331 25,654,094 32,122,842 Assigned 910,611 765,908 812,939 996,929 1,119,062 1,445,725 1,507,341 1,255,097 1,400,681 1,796,154 Unassigned (4,975) - - - - - - - - (451,903) Total all other governmental funds20,358,601$ 25,130,987$ 27,490,512$ 29,531,901$ 30,971,425$ 32,585,672$ 33,991,788$ 32,074,164$ 37,432,389$ 44,538,640$ 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) 115 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022REVENUESTaxes 20,541,466$ 21,747,244$ 22,620,506$ 23,367,715$ 24,159,016$ 25,615,191$ 25,887,789$ 26,580,500$ 28,047,838$ 29,001,346$ Licenses, permits and fees 857,135 1,090,012 1,303,710 1,337,928 1,049,673 1,237,198 1,141,959 974,336 911,816 929,415 Capital improvement fees 300,900 333,496 785,992 766,398 612,134 744,465 568,533 315,183 261,447 194,629 Charges for services 1,000,954 1,043,821 1,217,654 1,023,202 1,218,194 1,601,117 1,442,807 1,356,673 1,428,375 1,665,903 Fines and forfeitures 1,321,927 1,577,564 1,571,510 1,398,579 1,485,658 858,709 806,572 728,418 778,894 815,622 Interest 77,269 39,697 100,842 142,330 148,909 315,611 967,396 550,796 99,055 43,962 Intergovernmental 76,506 556,954 1,377,763 224,367 668,469 950,817 854,005 856,720 5,771,510 262,597 Grants/Contributions 487,066 918,613 981,282 421,497 449,130 328,598 667,736 2,062,719 3,371,752 4,128,012 Miscellaneous 100,562 76,643 97,873 165,642 183,889 127,626 85,935 313,260 274,059 338,748 Total revenues 24,763,785 27,384,044 30,057,132 28,847,658 29,975,072 31,779,332 32,422,732 33,738,605 40,944,746 37,380,234 EXPENDITURESGeneral government 3,171,582 3,746,619 4,126,132 4,036,395 4,166,735 4,784,205 4,046,459 4,447,211 5,085,306 5,162,355 Community development 1,429,574 1,606,589 1,524,342 1,623,972 1,511,400 1,349,824 1,369,857 1,642,331 1,606,549 1,589,984 Fire 4,062,535 4,174,745 4,618,103 4,568,639 4,870,759 4,942,939 5,492,430 6,046,058 6,361,196 6,873,727 Police 4,670,639 4,707,315 5,143,662 5,393,431 3,295,197 5,754,470 5,969,109 6,442,739 6,543,861 6,754,000 Leisure services 3,035,583 2,702,313 2,996,371 3,588,611 727,986 3,282,853 3,631,342 3,518,790 3,532,856 3,753,137 Streets and drainage 3,597,965 2,055,631 2,407,780 3,148,848 543,129 1,798,352 3,940,447 2,369,362 2,302,515 1,885,114 Municipal court 586,911 501,027 508,566 461,393 5,498,406 595,879 575,098 579,980 638,025 559,820 Maintenance 489,685 570,011 662,480 690,007 1,515,283 701,424 744,107 670,108 729,083 792,540 Capital outlay 2,668,074 3,250,508 6,268,273 2,373,025 4,421,734 4,950,202 3,141,571 5,194,206 6,840,537 5,057,778 Debt servicePrincipal retirement 2,246,921 1,342,586 1,459,693 1,467,094 2,151,212 2,201,206 2,148,690 1,584,683 5,531,733 735,551 Interest and fiscal charges 697,140 716,228 524,414 563,660 420,477 375,647 312,988 255,859 150,880 85,596 Total expenditures 26,656,609 25,373,572 30,239,816 27,915,075 29,122,318 30,737,001 31,372,098 32,751,327 39,322,541 33,249,602 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (1,892,824) 2,010,472 (182,684) 932,583 852,754 1,042,331 1,050,634 987,278 1,622,205 4,130,632 OTHER FINANCING SOURCES (USES)Refunding bonds - 7,330,000 - 6,225,000 - - - - - - Lease proceeds 209,425 - - - 541,073 356,459 - - 938,461 16,488 Sale of capital assets - 925,033 20,598 95,796 17,000 50,651 14,116 326,996 61,287 128,261 Premium on bond issue - - - 239,163 - - - - - - Payments to escrow - (7,600,000) - (6,373,776) - - - - - - Transfers in 4,189,380 7,355,334 6,497,252 5,665,493 4,552,668 5,160,716 5,212,289 2,275,198 4,226,761 10,068,434 Transfers out (3,076,840) (6,175,042) (5,318,662) (4,769,825) (4,489,349) (4,900,478) (4,941,886) (2,025,168) (3,817,485) (9,763,695) Total other financing sources (uses) 1,321,965 1,835,325 1,199,188 1,081,851 621,392 667,348 284,519 577,026 1,409,024 449,488 NET CHANGE IN FUND BALANCES(570,859)$ 3,845,797$ 1,016,504$ 2,014,434$ 1,474,146$ 1,709,679$ 1,335,153$ 1,564,304$ 3,031,229$ 4,580,120$ Debt service as a percentage of noncapital expenditures 12.3% 9.3% 8.3% 8.0% 10.4% 10.0% 8.7% 6.7% 17.5% 2.9% Source: Comprehensive Annual Financial ReportFiscal YearFiscal Year City of Colleyville, Texas Table 5 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) 116 Fiscal Year Real Property Personal Property Less: Tax-Exempt Property Total Taxable Assessed Value Total Direct Tax Rate 2013 3,973,653,709$ 92,906,015$ 295,979,344$ 3,775,194,699$ 0.35590 2014 4,110,956,030 94,096,963 305,274,674 3,909,272,694 0.35590 2015 4,290,260,905 101,386,687 311,122,707 4,091,303,521 0.35590 2016 4,454,110,130 112,948,913 295,992,599 4,204,340,103 0.35590 2017 5,276,637,668 110,675,076 314,305,247 4,588,707,342 0.33910 2018 5,784,914,251 155,608,995 398,722,284 5,065,743,299 0.33383 2019 5,995,502,975 165,783,371 414,329,132 5,456,363,643 0.32080 2020 6,407,168,658 175,745,491 444,673,050 5,839,829,017 0.30681 2021 6,476,173,723 179,108,894 444,673,050 5,966,966,320 0.30437 2022 6,686,159,826 173,267,357 451,190,644 6,161,836,618 0.29178 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) 117 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 District Tarrant CountyTarrant County College DistrictTarrant County Hospital District2013 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 1.45390 1.380000 1.396700 1.273000 1.510000 0.234000 0.13607 0.224429 2020 0.29043 0.01638 0.30681 1.38390 1.300000 1.326700 1.220000 1.408300 0.234000 0.13017 0.224429 2021 0.28944 0.01493 0.30437 1.38030 1.286400 1.303100 1.198000 1.394700 0.234000 0.13017 0.224429 2022 0.28069 0.01109 0.29178 1.33800 1.268600 1.275100 1.160800 1.344000 0.229000 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) 118 Percentage of Percentage of Taxable Assessed Total City Taxable Taxable Assessed Total City Taxable Taxpayer Value Assessed Value a Taxpayer Value Assessed Value b 1SVAP III TC Colleyville LLC 39,672,877$ 0.64% Colleyville Downs 33,883,995$ 0.74% 2 KRG Colleyville LLC 31,126,847 0.51% Town Center (Velocis Colleyville) 33,603,245 0.73% 3 Oncor Electric Delivery Co LLC 20,098,783 0.33% Toll Dallas TX LLC 20,154,400 0.44% 4 LTF Real Estate MP I LLC 13,685,000 0.22% Oncor Electric Delivery 16,036,630 0.35% 5 Welltower Inc 10,762,176 0.17% Lifetime Fitness Real Estate 13,685,000 0.30% 6 Colleyville Lofts Venture LLC 10,371,005 0.17% Standard Pacific of Texas Inc 12,032,695 0.26% 7 Atmos Energy/Mid Tex Division 10,171,634 0.17% Memory Care Facility 10,965,235 0.24% 8 Oak Alley Development Company 6,315,550 0.10% Colleyville Lofts Venture LLC 9,502,079 0.21% 9 Colleyville Plaza LP 6,125,094 0.10% Mainvue TX LLC 7,689,461 0.17% 10 Momentum USA RE:Ventures 6,030,136 0.10% Atmos Energy 7,046,620 0.15% Total 154,359,102$ 2.51%Total 164,599,360$ 3.59% Total assessed valuation 6,161,836,618 100.00% Total assessed valuation 4,588,707,342 100.00% Source: Tarrant Appraisal District a Taxpayers are assessed on January 1, 2021 (2021 tax year) for the 2022 fiscal year. b Taxpayers are assessed on January 1, 2016 (2016 tax year) for the 2017 fiscal year. 20172022 City of Colleyville, Texas Table 8 Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) 119 Fiscal Year Taxes Lev ied for the Fiscal Year Amount Percentage of Levy Collections in Subsequent Years Amount Percentage of Levy 2013 13,291,462$ 13,207,902$ 99.37% 77,946 13,285,848$ 99.97% 2014 13,722,602 13,681,269 99.70% 33,625 13,714,894 99.96% 2015 14,305,704 14,242,584 99.56% 53,287 14,295,871 99.94% 2016 14,675,127 14,612,632 99.57% 38,169 14,650,801 99.93% 2017 15,508,345 15,423,832 99.46% 48,978 15,472,810 99.83% 2018 16,651,773 16,590,832 99.63% 40,152 16,630,984 99.77% 2019 16,902,499 16,847,431 99.70% 58,840 16,906,271 99.63% 2020 17,317,428 17,220,445 99.44% 54,238 17,274,683 99.85% 2021 17,582,870 17,531,183 99.71% 22,287 17,553,469 99.75% 2022 17,489,659 17,438,697 99.71% - 17,438,697 99.83% 99.71% 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) 120 Percentage Percentage of Total City of Total City Water Water Water Water Taxpayer Usage Usage Usage Usage City Government 59,185,900 2.09% - - % Homeowners Assoc 32,404,100 1.15% 25,309,300 1.05% School District 28,271,800 1.00% 29,031,000 1.21% Fitness Center 11,940,500 0.42% 11,242,400 0.47% Building Construction 9,933,700 0.35% - - % Cemetery 9,392,800 0.33% 5,203,200 0.22% Shopping Center 8,630,800 0.31% 16,944,600 0.71% Irrigation 7,659,500 0.27% - - % Radio Broadcasting 4,722,200 0.17% - - % Grocery Store 3,873,100 0.14% 12,111,000 0.50% Church 3,681,000 0.13% 2,552,900 0.11% Hotel 3,212,000 0.11% - - % Restaurant 3,108,100 0.11% 2,868,300 0.12% Residential Home 3,028,000 0.11% 2,345,800 0.10% Shopping Center 2,727,900 - % - - % Total 191,771,400 6.79% 107,608,500 4.48% Notes: City chose not to include the exact names to protect the customers confidentiality. Source: City utility billing records 2022 2013 City of Colleyville, Texas Table 10 Ratio of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) 121 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 a2013 8,675,000$ 7,600,000$ 1,301,624$ 4,593$ 2,085,000$ 1,135,000$ -$ 79,805$ 20,881,022$ 105$ 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 5,235,000 443,675 225,279 - 250,000 - - 10,308,954 4969.66% 406 2020 3,110,000 4,775,000 358,747 208,716 - 125,000 - - 8,577,463 4055.06% 334 2021 2,700,000 - 950,476 172,787 - - - - 3,823,263 1807.48% 148 2022 2,275,000 - 639,922 129,870 - - - - 3,044,792 1389.88% 117 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) 122 Percentage of General Less: Available Actual Taxable Fiscal Obligation Debt Service Value of Year Bonds Funds Total Property a Per Capita b 2013 8,639,056$ 857,143$ 7,781,913$ 0.21% 374$ 2014 7,660,000 831,073 6,828,927 0.17% 323 2015 6,920,000 744,295 6,175,705 0.15% 290 2016 8,550,000 692,093 7,857,907 0.19% 353 2017 7,363,957 612,641 6,751,316 0.15% 299 2018 5,665,000 697,975 4,967,025 0.10% 227 2019 4,155,000 844,867 3,310,133 0.06% 164 2020 3,318,716 1,188,908 1,921,092 0.03% 121 2021 2,872,787 1,066,797 1,633,203 0.03% 104 2022 2,404,870 876,349 1,403,816 0.02% 87 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, 2022 (Unaudited) 123 Gross Bonded Debt Percentage of Debt Applicable to Area Share of Overlapping Debt Debt repaid with property taxes Birdville Independent School District 408,955,000$ 0.07% 286,269$ Carroll Independent School District 311,395,000 0.37% 1,152,162 Grapevine-Colleyville Independent School District 311,711,018 22.76% 70,945,428 Hurst-Euless-Bedford Independent School District 321,965,000 1.58% 5,087,047 Keller Independent School District 836,595,184 3.50% 29,280,831 Tarrant County 404,360,000 2.96% 11,969,056 Tarrant County College District 610,315,000 3.17% 19,346,986 Tarrant County Hospital District 12,825,000 2.96% 379,620 Subtotal, overlapping debt 138,447,398 City of Colleyville (direct debt) 3,044,792 100.00% 3,044,792 Total direct and overlapping debt 141,492,190$ 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) 124 Fiscal Total Less: Operating Net Available Annual Times Year Revenues a Expenses b Revenue Requirement c Coverage 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 2020 16,418,116 15,154,408 1,263,708 - N/A 2021 17,471,197 14,709,115 2,762,082 - 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 13 125 Fiscal Total Less: Operating Net Available Annual Times Sales Tax Annual Times Year Rev enues a Expenses b Revenue Requirement c Coverage Increment Requirement c Coverage 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 2020 1,034,662 691,758 342,904 125,000 2.74 2,096,882 600,752 3.49 2021 1,013,401 660,087 353,314 - N/A 2,390,336 481,225 4.97 Drainage Revenue Bonds Sales Tax Bonds City of Colleyville, Texas Table 14 Demographic and Economic Statistics Last Ten Calendar Years (Unaudited) 126 Per Capita Fiscal Estimated Personal Personal School Unemployment Year Population a Income Income Enrollment b Rate c 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% 2020 25,700 211,525 76,635 13,970 3.2% 2021 25,920 211,525 76,635 14,040 3.2% 2022 26,057 219,068 83,576 14,013 2.6% 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) 127 Employer Employees Percentage of Total City Employment Employer Employees Percentage of Total City EmploymentGrapevine Colleyville ISD 611 5.90% Grapevine Colleyville ISD1681 33.68%Market Street 345 3.33% Market Street 369 7.39%Lifetime Fitness 250 2.41% Lifetime Fitness 230 4.61%City of Colleyville 206 1.99% City of Colleyville 188 3.77%Covenant Christian Academy 130 1.26% Albertsons 110 2.20%Whole Foods Market 125 1.21% Covenant Christian Academy 107 2.14%Albertsons 118 1.14% LaHacienda Ranch 100 2.00%LaHacienda Ranch 100 0.97% Walmart Neighborhood Market 90 1.80%Walmart Neighborhood Market 72 0.70% Sonshine Academy 60 1.20%US Memory Care 60 0.58% US Memory Care 60 1.20%Total 2,017 19.47% Total 2,995 60.00%Total Colleyville Daytime Employees 10,358 Total Colleyville Daytime Employees 4,992Source: City of Colleyville Economic Development 20222013 City of Colleyville, Texas Table 16 Full-Time Equivalent City Government Employees By Function/Program Last Ten Fiscal Years (Unaudited) 128 Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022General governmentManagement services 4.00 4.00 4.00 3.75 5.00 4.20 3.20 3.20 3.20 3.20 *Court4.00 4.00 Finance/court 8.00 8.00 8.00 8.00 9.00 9.00 9.00 9.00 4.00 4.00 Planning 2.00 4.00 3.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Building 3.00 3.50 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Other 13.00 11.63 13.52 14.14 12.14 12.80 11.80 11.80 11.80 11.80 PoliceOfficers 40.00 41.00 42.50 43.00 43.00 41.00 41.00 44.00 44.00 44.00 Civilians 6.00 6.50 7.00 6.50 6.00 8.00 8.00 6.73 6.73 6.73 FireFirefighters and officers 36.00 38.00 41.00 41.00 41.00 40.00 40.00 43.00 43.00 44.00 Civilians 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50 1.50 2.00 Other public worksEngineering 3.00 4.05 3.95 4.75 2.75 2.75 2.75 2.75 2.75 2.75 Other 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 Streets 7.00 8.35 8.35 8.35 8.35 8.35 8.35 8.85 8.85 8.85 Parks and recreation 16.00 15.75 15.00 15.00 17.00 17.00 16.00 16.00 16.00 16.00 Library 12.00 13.00 13.63 13.00 13.00 13.00 12.50 12.50 12.50 12.50 Colleyville Center 3.50 4.00 4.50 4.50 4.00 4.00 4.00 4.00 4.00 4.00 Water/wastewater 23.00 24.68 25.03 24.23 25.60 24.70 24.70 24.70 26.70 26.70 Drainage 7.00 6.00 6.00 6.41 6.41 6.20 6.20 6.20 6.20 6.20 Total187.50 196.46 204.48 205.63 206.25 204.50 201.00 205.23 206.23 207.73 Source: City budgetFiscal Year*As of FY21, the Colleyville/Keller Municipal Court reports directly to City Management. Previously, it was out of the Finance Department. City of Colleyville, Texas Table 17 Operating Indicators By Function/Program Last Ten Fiscal Years (Unaudited) 129 Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022General governmentBuilding permits issued 103 108 181 182 136 169 111 82 61 125Building inspections conducted 8,292 7,807 7,307 8,940 10,666 11,981 10,519 7,321 6,970 7,954PolicePhysical arrests 632 863 800 918 602 715 491 190 234 267Calls for service 61,270 58,522 51,537 43,492 34,437 33,765 30,296 51,364 49,445 45,830Traffic violations 11,766 19,955 21,450 20,790 13,016 15,832 12,804 4,603 5,505 6,558FireEmergency responses 557 627 694 1,783 1,768 1,758 1,797 1,779 2,246 2,083Ambulance calls 829 950 959 1,037 967 1,000 1,004 939 1,089 1,228Inspections 306 317 363 400 361 239 386 352 393 340Other public worksStreet resurfacing (miles) 4.0 1.7 3.7 10.9 6.8 6.0 21.9 7.0 10.0 13.7Parks and recreationAthletic field participants 4,287 4,315 4,434 4,302 4,517 4,386 4,570 2,500 4,361 5,029Community center rentals 398 412 452 376 405 320 314 128 200 409LibraryVolumes in collection 69,736 74,525 77,664 80,452 82,182 71,188 70,161 74,939 72,871 73,208Total volumes borrowed 250,737 234,667 228,160 222,128 227,252 237,124 234,477 145,218 246,043 247,076WaterCustomers 9,396 9,507 9,631 9,858 9,987 10,215 10,422 10,487 10,608 9,945Average daily consumption (thousands of gallons) 6,785 6,539 6,451 5,889 6,355 6,508 6,794 7,274 6,679 8,464Peak daily consumption (thousands of gallons) 17,052 15,204 19,866 15,724 12,434 15,830 14,616 17,562 13,497 19,339WastewaterCustomers 8,731 8,817 8,905 9,071 9,270 9,444 9,453 9,619 9,832 9,760Source: City departmentsFiscal Year City of Colleyville, Texas Table 18 Capital Asset Statistics By Function/Program Last Ten Fiscal Years (Unaudited) 130 Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 12 12 13 13 13 13 13 13 13 13 FireStations 3 3 3 3 3 3 3 3 3 3 Public worksStreets (miles) 282 283 283 283 289 289 289 289 289 289 Streetlights 1,175 1,175 1,227 1,269 1,269 1,338 1,338 1,338 1,338 1,338 Traffic signals 2 2 2 2 2 2 2 2 2 2 Parks and recreationAcreage 224 224 224 225 225 225 225 225 225 225 Playgrounds 6 6 6 7 7 7 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) 202 204 205 206 206 206 206 206 206 206 Fire hydrants 1,389 1,403 1,422 1,507 1,517 1,521 1,529 1,529 1,529 1,529 Storage capacity 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 (thousands of gallons)WastewaterSanitary sewer (miles 170 172 172 179 180 180 180 180 180 180 Storm sewers (miles) 58 60 67 69 70 70 70 70 70 70 Source: City departmentsa Baseball, softball, soccer and multipurpose fields combined through 2014Fiscal Year