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HomeMy WebLinkAboutComprehensive Annual Financial Report (CAFR)-Audit Records-9/30/2002 CITY OF COLLEYVILLE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2002 Prepared by The Finance Department CITY OF COLLEYVlLLE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS ExhibiVTable ~ INTRODUCTORY SECTION Letter of Transmittal Organizational Chart VII Certificate of Achievement VIII Principal Officials IX FINANCIAL SECTION Independent AuditOl's Report 1 General Purpose Financial Statements: Combi ned balance sheet - all fund types and account groups 1 4 Combined statement of revenues, expenditures, and changes in fund balances - all govemmental fund types 2 8 Combined statement of revenues, expenditures, and changes in fund balances - budget and actual - general, budgeted special revenue, and debt service funds 3 10 Statement of revenues, expenses and changes in retained eamings - proprietary fund type - Water and Sewer Enterprise Fund 4 12 Statement of cash flOVl'S - proprietary fund type - Water and Sewer Enterprise Fund 5 13 Notes to general purpose financial statements 14 CITY OF COLLEYVILLE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS SUPPLEMENTARY INFORMATION ExhibiVTable Paae Combining, Individual Fund and Account Group Financial Statements and Schedules: Special Revenue Funds: Combining balance sheet Combining statement of revenues, expenditures and changes in fund balances A-1 . A-2 Agency Funds: Combining balance sheet Combining statement of changes in assets and liabilities B-1 B-2 General Fixed Assets Account Group: Schedule of general fixed assets by source Schedule of general fixed assets by function and activity Schedule of changes in general fixed assets by function and activity C-1 C-2 C-3 Debt Service Requirements: Schedule of debt service requirements to maturity - generallong-tenm debt - general obligation bonds and certificates of obligation Schedule of debt service requirements to maturity - generallong-tenm debt - drainage revenue bonds Schedule of debt service requirements to maturity - generallong-tenm debt - sales tax revenue bonds Schedule of debt service requirements to maturity - enterprise fund - revenue bonds and certificates of obligation Schedule of debt service requirements to maturity - capital lease obligations Schedule of debt service requirements to maturity - notes payable Schedule of debt service requirements to maturity - TIF- tax notes Schedule of debt service requirements to maturity - summary D-1 D-2 D-3 D-4 D-S D-6 D-7 D-8 33 35 38 39 41 42 43 45 46 47 48 49 50 51 52 CITY OF COLLEYVILLE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS STATISTICAL SECTION (Unaudited) General governmental expenditures by function - last ten fiscal years General governmental revenues by source - last ten fiscal years Property tax levies and collections - last ten fiscal years Assessed and estimated actual value of taxable property - last ten fiscal years Property tax rates - direct and overlapping govemments (per $100 of assessed value) -last ten fiscal years Ratio of net general bonded debt to assessed value and net bonded debt per capita - last ten fiscal years Computation of legal debt margin Ratio of annual debt service expenditures for general bonded debt to total general governmental expenditures - last ten fiscal years Computation of direct and overlapping net debt Revenue bond and certificates of obligation coverage - last ten fiscal years Demographic statistics - last ten fiscal years Property value, construction - last ten fiscal years Principal taxpayers Miscellaneous statistical data ExhibiVTable Paae 1 2 3 4 5 6 7 8 9 10 11 12 13 14 55 57 59 61 62 64 66 67 68 69 71 72 73 74 This page intentionally left blank INTRODUCTORY SECTION This page intentionally left blank City of ~ Texas December 20, 2002 To the Citizens of the City of Colleyville: The Comprehensive Annual Financial Report of the City of Colleyville (the "City") for the fiscal year ended September 30, 2002 is hereby submitted. Responsibility for both the accuracy of the data, and completeness and faimess 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 and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter and the City's organizational chart. The financial section includes the general purpose financial statements and the combining, individual fund and account group financial statements and schedules, as well as the independent auditor's report on the general purpose financial statements. The statistical section includes selected unaudited financial and demographic information generally presented on a multi-year basis. This report includes all funds and account groups of the City. The City provides a full range of municipal services. These services include police and fire protection; municipal court; streets and drainage; parks and recreation; water and sewer; building inspections; engineering; community development; code enforcement; and general administrative services. Based upon the criterion set forth in generally accepted accounting principles, the following govemmental organizations are includable within the City's reporting entity: E ntitv Method of Inclusion Colleyville Economic Development Corporation (CEDC) Colleyville Crime Control and Prevention District Colleyville Tax Investment Financing Reinvestment Zone Number One (TIF) Blended Blended Discretely Presented ECONOMIC CONDITION AND OUTLOOK 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 Intemational Airport in Northeast Tarrant County. Relocations of residents to the City continued in fiscal year 2002, as did commercial development. During the fiscal year, the City issued 132 residential building permits and the average square footage of a residence was over five thousand square feet. Also, approximately 164,000 square feet of new commercial development was completed or in process during FY 2002. P.O. BOX 185 COLLEYVILLE, TEXAS 76034 (817) 577-7575 MAJOR INITIATIVES For the Year. Construction is near completion on a $7 million Justice Center which will house both the Police Department and Municipal Court. The 31,145 square foot facility will include an emergency operations zone, larger communications area, armory and evidence. It is financed by revenue bonds backed by sales tax collected through the Crime Control and Prevention District voters approved in 1998. Additionally, practice fields at Pleasant Run Park were completed and construction was in progress on the renovation of the Webb House in Bransford Park. Infrastructure projects completed during the fiscal year include drainage improvements in the Brighton Oaks Addition and construction of Riverwalk Drive which provides access to the Justice Center and Colleyville Center. Utility projects that were completed include replacement of 2" water lines in Plymouth Hills, Laurel Oaks, and along L. D. Lockett Road, Beverly Lane, and Leta Lane. For the Future. In March 2002, construction began on a new 29,500 square foot City Hall and a new 24,000 square foot Library within the Village, a 600,000 square foot mixed-use development with a European design. The Village is located within the boundaries of 633-acre tax increment financing district (TIF) to encourage commercial development along the Colleyville Boulevard corridor, which was established in 1998. A T1F is a temporary partnership between local taxing authorities, who work together to accelerate commercial growth in a given area by paying a share of the development costs. Growth within a TIF district is taxed at the normal rate, but the tax revenues are used within the district to fund roads, drainage, or other expensive improvements that developers might otherwise be expected to provide. A portion of these revenues will be used to repay the bonds sold in FY 2001 to fund the City Hall and library. FINANCIAL INFORMATION In developing and evaluating the City's accounting system, consideration is given to the adequacy of intemal 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 intemal controls adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions. Budgeting Controls. The City maintains budgetary control by adopting an annual operating budget for the General Fund, Debt Service Fund, Drainage Utility Fund, and Water and Sewer Enterprise Fund. Detail control is maintained at the line item level by encumbering available funds at the time a purchase order is written. Encumbrances lapse at fiscal year end, but are normally reappropriated 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. II General Govemmental Functions. Revenues from general govemmental functions (General, Special Revenue and Debt Service Funds) in fiscal year 2002 totaled $16,021,566. The following tables present a summary of those revenues and expenditures for the current fiscal year and the amount and percentages of increase and decrease in relation to prior year revenues: Percentage Increase Increase Percent (Decrease) (Decrease) Revenues Amount OfTotal From FY 01 From FY 01 Taxes $12,296,418 76.75% $1,125,503 10.08% Licenses & Permits 913,426 5.70 58,171 6.80 Drainage Fees 615,099 3.84 21,269 3.58 Fines &Forfeitures 534,590 3.34 (22,849) -4.10 Engineering & Insp. 464,515 2.90 152,524 48.89 Interest Income 436,596 2.73 (464,138) -51.53 Donations 206,358 1.29 21,751 11.78 Miscellaneous 554,564 3.45 178,686 47.54 Total $16,021,566 100.00% $1,070,917 7.16% The major increase in revenues comes from the tax category. The property tax base increased over $212 million, due to construction of new residences, businesses, and revaluation of property. The rate for current year tax collection was close to 99% of the levy for the eleventh year in a row. There was an increase in both license and permit revenues and engineering and inspection revenues due to an increase in commercial building permits. Miscellaneous income was up due to Proceeds received from a pOlice grant and interest income declined due to the plunge in interest rates in the current fiscal year. Percentage Increase Increase Percent (Decrease) (Decrease) Expenditures Amount Of Total From FY 01 From FY 01 General Gov't $1,925,674 9.77% ($10,698 -0.55% Code Enforcement 1,226,877 6.23 (108,881 -8.15 Fire & Rescue 2,783,968 14.13 . (68 255 -2.39 Police 6,711,870 34.07 2,589,258 62.81 Parks & Recreation 1,665,598 8.45 39,748 2.44 Streets & Drainage 1,239,090 6.29 (-169,002) -12.00 Municipal Court 150,056 .76 31,837 26.93 Maintenance 182,814 .93 57,765 46.19 Capital Outlay 603,955 3.07 395,559 189.81 Debt Service 3,210,409 16.30 20,919 .66 Total $19,700,311 100.00% 2,778,250 16.42% III Decreases in the Code Enforcement relate to the re-organization of the Engineering, Economic Development, and Community Development departments. The increase in Police relates to the construction of the Justice Center. There was a transfer of a position from Streets to Maintenance, which accounts for a portion of the changes in those departments and a Deputy Court Clerk position was added in anticipation of the move to the Justice Center. Drainage improvements in Brighton Oaks accounted for the majority of the increased due in the Capital Outlay area. The decrease in Fire relates to the acquisition of an ambulance in the prior fiscal year. General Fund Balance. The unreserved fund balance of the General Fund increased by 10.51% due to conservative expenditures and greater than anticipated commercial building revenues. The unreserved fund balance allows for 190 days of working capital. Enterprise Operations. The City has only one enterprise operation, the Water and Sewer Enterprise Fund. Total operating revenues of that fund were $7,992,865 for the fiscal year. Comparative data for the past two fiscal years are presented in the following tabulation. Fiscal Year Fiscal Year 2002 2001 Gross Revenue (including interest income) $ 8,407,033 $8,477,716 Operating income before depreciation and amortization 2,083,017 2,000,692 Income Available for Debt Service (including interest income) 2,497,185 1,082,894 2,684,350 1,081,003 Debt Service Coverage (income available for debt divided by maximum debt service 2.30 2.48 Weather conditions in the current fiscal year were very unusual for Texas. Many daily rainfall records were broken in the spring, and we received considerable rainfall in June and July. Given these conditions, water and sewer sales only increased by 1.3% and 4.6% respectively over FY 2001. Debt Administration. General obligation bonds (gross bonded debt) outstanding as of September 30,2002 totaled $15,315,000, which are directly tax supported. The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to municipal management, citizens and investors. Net bonded debt per capita increased by $95.31 from the prior year due to the issuance of $3,000,000 in fiscal year 2002. This data for the City at the end of fiscal year 2002 is as follows: IV Net direct Bonded debt Ratio of debt to assessed value Net bonded debt per capita $14,352,364 .68% $707.01 During the fiscal year, the City's General Obligation bonds received an upgrade to AA+ by Standard and Poor's and is rated AA+ by Fitch ICBA. At the present time, the City has issued all voter authorized General Obligation bonds. Cash Management. Cash temporarily idle during the year was invested in U.S. Treasury Bills and Notes, Agency Discount Notes and Medium Tenn Notes and a local government investment pool (LOGIC). The average yield on investments for the year was approximately 2.91%. The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, all deposits were either insured by federal deposit insurance or collateralized and the collateral was held by a trustee bank in the City's name, which is the lowest category of risk as defined by the Govemmental Accounting Standards Board. The City currently holds the Certificate of Distinction from the Government Treasurer's Organization of Texas for its investment policy. 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' rates are based on the City's past claims history. The Risk Pool retains a limit of loss and reinsurance companies insure the risks beyond those limits. During the fiscal year, representatives from the Risk Pool physically reviewed City facilities to identify possible risks. City employees also participated in Risk Pool sponsored safety training classes. OTHER INFORMATION Independent Audit. The City Charter requires an annual audit of the financial records and other evidence of financial transactions of the City by independent certified public accountants selected by the City Council. This requirement has been complied with the independent auditors' report and is included in the Comprehensive Annual Financial Report. 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, 2001. This was the thirteenth consecutive year 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 detennine its eligibility for another certificate. v Acknowledaements. 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. I would like to express my sincere appreciation to all employees who contributed to the preparation. Additionally, I 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, Terry Leake Finance Director \ VI CITY OF COLLEYVILLE CITIZENS OF ORGANIZATIONAL CHART COLLEYVILLE FISCAL YEAR 2001-2002 LIBRARY PLANNING ZONING CRIME BOARD AND ZONING BOARD OF CONTROL COMMISSION ADJUSTMENT AND PREVENTION DISTRICT COLLEVYILLE CITY I ECONOMIC COUNCIL DEVELOPMENT SIGN BOARD PARKS AND AD HOC TAX CORPORATION OF APPEALS RECREATION COMMITTEES INCREMENT BOARD FINANCING DISTRICT I I MUNICIPAL CITY CITY MANAGER JUDGE ATTORNEY COMMUNITY PARKS AND CITY CENTER RECREATION SECRETARY MANAGER MANAGER HUMAN DEPUTY RESOURCES CITY MANAGER MANAGER I MARKETING RECORDS ADMINISTRA- . SPECIALIST MANAGER TIVE ASSISTANT FINANCE ECONOMIC PUBLIC FIRE CHIEF POLICE CHIEF DIRECTOR DEVELOPMENT SERVICES MANAGER DIRECTOR (CITY ENGINEER) I PUBLIC WORKS COMMUNITY MANAGER DEVELOPMENT MANAGER UTILITY STREETS & BUILDING RESPONSE PATROL BILLING DRAINAGE INSPECTION FLEET INVESTIGATIONS MUNICIPAL PLANNING INSPECTIONS! COURT MAINTENANCE INVESTIGATIONS ANIMAL UTILITY ADMIN. CODE CONTROL CITY HALL AND ENFORCEMENT RECEPTION OPERATION VII Certificate of Achievement for Excellence in Financial Reporting Presented to City of Colleyville, Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2001 A Certificate of Achievement for Excellence in rmancial Reporting is presented by the Government rmance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the hi9hest standards in government accoUnting and financial reporting. ~~ President jktz.~"" VIII CITY OF COLLEYVlLLE, TEXAS HOME RULE, COUNCIL - MANAGER FORM OF GOVERNMENT CITY OFFICIALS YEAR ENDED SEPTEMBER 30. 2002 DONNA ARP Mayor JOE HOCUTT Councilperson Place 1 BRAD RICE Councilperson Place 2 RICH HENDLER Councilperson Place 3 RICHARD NEWTON Council person Place 4 GINNY TIGUE Mayor Pro Tem and Councilperson Place 5 WILLIAM LINDLEY City Manager TERRY LEAKE Finance Director IX This page intentionally left blank FINANCIAL SECTION This page intentionally left blank , i , WEAVER ---- TIDWELL I..! (J CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS o. ilil' i(JI' "J'i'l;(, ~f'o',.r,r:",," ';\T_ ;'J ',~, I \J~) L ;. ,- 'J 0 l t,' - r 1 ~ ,',-, F ["' ,~:,7~: ; "i ; ",,',.~ TIC, ~,,\ L INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council CITY OF COLLEYVILLE, TEXAS We have audited the accompanying general purpose financial statements of the City of COlleyville, Texas, (the "City"), as of and for the year ended September 30, 2002, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonm the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City at September 30, 2002, and the results of its operations and cash fiows of its proprietary fund type for the year then ended in confonmity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 22, 2002, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfonmed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was made for the purpose of forming an opinion on the general PUrpose financial statements taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. The combining, individual fund and account group financial statements and schedules have been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in Our opinion, are fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. "','1) The statistical section has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on such data. ~~J.v~//r' WEAVER AND TIDWELL, L.L.P. Dallas, Texas November 22, 2002 1250 1 This page intentionally left blank 2 GENERAL PURPOSE FINANCIAL STATEMENTS - OVERVIEW 3 CITY OF COLLEYVILLE, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2002 (WITH COMPARATIVE TOTALS FOR 2001) ASSETS AND OTHER OEBITS GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS FUNO FUNDS FUND FUND $ 884,505 $ 3,092,892 $ 247,215 $ 6,161,139 6,147,351 2,673,159 511,274 5,875,999 72,364 36.460 12,962 157,802 47,035 91,046 34,873 5,700 56,200 295,310 263,951 588 855.406 212.434 690,227 359.160 Cash and cash equivalents Investments Receivables: Accounts (net of allowance of $25,577) Taxes Accrued interest Due from other governments Due from other funds Due from component unit Other Inventories, at cost Prepaid items Restricted assets: Cash and cash equivalents Investments Accrued Interest receivable Fixed assets (net, where applicable, of accumulated depreciation) Other assets Amount available in debt service fund Amount to be provided for reUrement of general long-term debt TOTAL ASSETS AND OTHER DEBITS $ 8,007,538 $ 6,956,741 $ 1,024,246 $ 12,796,527 The Notes to General Purpose Financial Statements are an integral part of these statements. 4 EXHIBIT 1 PAGE 1 OF2 PROPRIETARY FIDUCIARY TOTAL COMPONENT TOTALS FUND TYPE FUND TYPE ACCOUNT GROUPS PRIMARY UNIT (MEMORANDUM ONL YI GENERAL GENERAL GOVERNMENT TAX ENTERPRISE AGENCY FIXED LONG-TERM (MEMORANOUM INCREMENT FUND FUNDS ASSETS DEBT ONLY) FINANCING 2002 2001 $ 490.917 $ $ $ $ 10,876.668 $ 6.334.775 $ 17.211.443 $ 18,507.608 7,129.136 22,336.919 22.336,919 22.234.289 1,388.562 1,510.348 9,958 1.520,306 1,228.182 204.837 204,837 143.615 187,819 187,819 392,764 143,453 703.302 703.302 400,512 228.772 24.850 2,011.689 2,011.689 1.645.962 359,160 359.160 443,805 137,327 137.327 137.327 157.373 1.165 779,994 779.994 779.994 1,014.658 3,S36.323 3.536,323 3,536.323 3,219.858 13.974 13,974 13,974 12,920 31,519.770 90,342.707 121,862.477 121,862,477 107,783.792 203.668 203.668 203.668 220,448 962.363 962.363 962.363 863.320 32,546,840 32,546,840 10.860.000 43,406,840 41.246,015 $ 45,571,896 $ 24,850 $ 90,342,707 $ 33,509,203 $ 198,233,708 $ 17,204.733 $ 215,438,441 $ 199,516,286 5 CITY OF COLLEYVILLE, TEXAS COMBINED BALANCE SHEET - ALL FUNO TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2002 (WITH COMPARATIVE TOTALS FOR 2001) GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS FUNO FUNDS FUND FUNO LIABILITIES Accounts payable and accrued liabilities $ 543,240 $ 542,532 $ 14.848 $ 241,807 Due to other funds 1,238,039 187,221 S88.429 Due to primary govemment Deferred revenues 210,812 47,035 Advances from developers 20,624 1,940,341 Due to civic organizations Note payable Payable from restricted assets: Accounts payable Customer deposits Revenue bonds and certificates of obligation payable ~ current portion Accrued bond interest payable Obligations under capital leases General obligation bonds, certificates of obligation, and municipal drainage utility revenue bonds Revenue bonds and certificates of obligation - noncurrent Accretecllnterest Obligations for compensated absences TOTAL LIABILITIES 1,991,891 750,377 61,883 2,768,577 EQUITY AND OTHER CREDITS Contributed capital: City Other governments Developers Investment in general fixed assets Retained earnings: Reserved for debt service Unreserved Fund balances: Reserved for prepaid items Reserved for construction 2,416,894 10,027,950 Reserved for debt service 962.363 Reserved for other 3,789,470 Unreserved: Undesignated 6,015,647 TOTAL EQUITY AND OTHER CREDITS 6,015,647 6,206,364 962,363 10,027,950 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $ 8,007,538 $ 6,956,741 $ 1,024,246 $ 12,796,527 The Notes to General Purpose Financial Statements are an integral part of these statements. 6 EXHIBIT 1 PAGE 2 OF 2 PROPRIETARY FIOUCIARY TOTAL COMPONENT TOTALS FUND TYPE FUND TYPE ACCOUNT GROUPS PRIMARY UNIT (MEMORANDUM ONLY) GENERAL GENERAL GOVERNMENT TAX ENTERPRISE AGENCY FIXED LONG-TERM (MEMORANDUM INCREMENT FUND FUNDS ASSETS OEBT ONLY) FINANCING 2002 2001 $ 537,396 $ $ $ $ 1,879,823 $ 388,076 $ 2,267,899 $ 2,070,735 2,011,689 359,160 2,370,849 1,645,962 443,805 257,647 257,647 185,328 4,396 1,965,361 1,965,361 1,827,012 24,850 24,850 24,850 53,194 256,500 256,500 2S6,500 397,250 17,871 17,871 17,871 17,778 330,311 330.311 330,311 320,571 622,000 622,000 622,000 597,000 168,666 168,666 168,666 179,147 60,516 60,516 60,516 130,286 32,727,722 32,727,722 10,860,000 43,587,722 41,162,722 8,844,296 8,844,296 8,844,296 9,458,955 54,209 54.209 54,209 29,678 31,855 410,256 442,111 442,111 415,907 10,556,791 24,850 33,509,203 49,663,572 11,607,236 61,270,808 58,935,330 1,927,738 1,927,738 1,927,738 1,927,738 1,981,967 1,981,967 1,981,967 1,981,967 18,490,376 18,490,376 18,490,376 18,490,376 90,342,707 90,342,707 90,342,707 77,729,341 709,793 709,793 709,793 645,499 11,905,231 11,905.231 11,905,231 9.284,922 1,165 12,444,844 12,444.844 10,033,011 962,363 962,363 863.320 3,789,470 3,789,470 7,224,986 6,015,647 5,597,497 11,613,144 12,398,631 35,015,105 90,342,707 148,570,136 5,597,497 154,167,633 140,580,956 $ 45,571,896 $ 24,850 $ 90,342,707 $ 33,509,203 $ 198,233,708 $ 17,204,733 $ 215,438,441 $ 199,516,286 7 CITY OF COLLEYVILLE, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 2002 (WITH COMPARATIVE TOTALS FOR 2001) GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS FUND FUNDS FUND FUND REVENUES: Taxes $ 9,017,920 $ 1,633,089 $ 1,645,409 $ Developer contributions 334,502 Licenses and pennits 913,426 Capital improvement fees 270,872 Drainage fees 615,099 Fines and forfeitures 534,590 Charges for services 464,515 Interest 200,411 210.206 25,979 309,445 Intergovernmental 107,962 Donations 206,358 Miscellaneous 541,353 13,211 Total revenues 11,672,215 2,677,963 1,671,388 1,022,761 EXPENDITURES: Current: General government 1,918,176 7,498 Code enforcement 1,226,877 Fire and rescue 2,783,968 Police 3,018.151 3,693,719 Parks and recreation 1,286,249 379,349 Streets and drainage 982,224 256,866 Municipal court 150,056 Maintenance 182,814 Capital outlay 603,955 1.042,938 Debt service: Principal retirement 375,115 1,129,554 Interest and agent fees 618,616 1,087,124 102,038 Total expenditures 11,548,515 5,935,118 2,216,678 1,144,976 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 123,700 (3,257,155) (545,290) (122,195) OTHER FINANCING SOURCES (USES): Proceeds from bonds 3,000,000 Proceeds from refunding bonds Proceeds from notes payable Operating transfers in 448,635 644.333 Payments to refunding bond escrow agent Operating transfers out (644,333) Total other financing sources (uses) 448,635 (644,333) 644,333 3,000,000 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 572,335 (3,901,488) 99,043 2,877,805 FUND BALANCE AT BEGINNING OF YEAR 5,443,312 10,107,852 863,320 7,150,145 FUND BALANCE AT END OF YEAR $ 6,015,647 $ 6,206,364 $ 962,363 $ 10,027,950 The Notes to General Purpose Financial Statements are an integral part of these statements. 8 EXHIBIT 2 TOTAL COMPON,ENT TOTALS PRIMARY UNIT (MEMORANDUM ONLY) GOVERNMENT TAX (MEMORANDUM INCREMENT ONLY) FINANCING 2002 2001 $ 12,296,418 $ 917,350 $ 13,213,768 $ 11,734,408 334,502 334,502 326.637 913,426 913,426 855,255 270,872 270,872 232,155 615,099 615,099 593,830 534,590 534,590 557,439 464,515 464,515 311,991 746,041 171,947 917,988 1,738,024 107,962 107,962 217,037 206,358 206,358 184,607 554,564 564,584 375,878 17,044,347 1,089,297 18,133,844 17,127,261 1,925,674 422,881 2,348,555 2,075,581 1,226,877 1,226,877 1.906,597 2,783,968 2,783,968 2,852,223 6,711,870 6,711,870 4,122,612 1,665,598 1,665,598 1,625,850 1,239,090 353,276 1,592,366 3,078,868 150,056 150,056 118,219 182,814 182,814 125,049 1,846,893 1,845,290 3,292,183 1,053,372 1,504,669 1,504,669 1,452,151 1,807,778 706,837 2,514,615 1,995.668 20,845,287 3,128,284 23,973,571 20,406,190 (3,800,940) (2,038,987) (5,839,927) (3,278,929) 3,000,000 680,000 3,680,000 8,885,000 10,470,000 124,850 1,092,968 1,092,968 1,118.935 (10,091,360) (644,333) (644,333) (605,659) 3,448,635 680,000 4,128,835 9,901,766 (352,305) (1,358,987) (1,711,292) 6,622,837 23,564,629 6,956,484 30,521,113 23,898,276 $ 23,212,324 $ 5,597,497 $ 28,809,821 $ 30,521,113 9 CITY OF COLLEYVILLE, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL - GENERAL, BUDGETED SPECIAL REVENUE, AND DEBT SERVICE FUNDS YEAR ENDED SEPTEMBER 30, 2002 GENERAL FUND VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES: Taxes $ 8,747,101 $ 9,017,920 $ 270,819 Licenses and permits 1,061,335 913,426 (147,909) Drainage fees Fines and forfeitures 571 ,250 534,590 (36,660) Charges for services 589,913 464,515 (125,398) Interest 255,000 200,411 (54,589) Miscellaneous 180,214 541,353 361,139 Total revenues 11,404,813 11,672,215 267,402 EXPENDITURES: Current: General government 1,964,029 1,918,178 45,853 Gode enforcement 1,352,567 1,226,877 125,690 Fire and rescue 2,783,900 2,783,968 (68) Police 3,018,467 3,018,151 316 Parks and recreation 1,432,842 1,286,249 146,593 Streets and drainage 1,112,908 982,224 130,684 Municipal court 150,077 150,056 21 Maintenance 182,914 162,814 100 Capital outlay Debt service Total expenditures 11,997,704 11,548,515 449,189 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (592,891 ) 123,700 716,591 OTHER FINANCING SOURCES (USES): Operating transfers in 443,619 448,635 5,016 Total other financing sources (uses) 443,619 448,635 5,016 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (149,272) 572,335 721,607 FUND BALANCE AT BEGINNING OF YEAR 5,443,312 5,443,312 FUND BALANCE AT END OF YEAR $ 5,294,040 $ 6,015,647 $ 721,607 10 The Notes to General Purpose Financial Statements are an integral part of these statements EXHIBIT 3 BUDGETED SPECIAL REVENUE FUND DEBT SERVICE FUND VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE) $ $ $ $ 1,676,021 $ 1,645,409 $ (30,612) 617,955 615,099 (2,856) 55,000 67,503 12,503 42,000 25,979 (16,021) 9,269 (9,269) 682,224 682,602 378 1,718,021 1,671,388 (46,633) 308,979 256,866 52,113 601,043 (601,043) 290,115 290,665 (550) 2,298,354 2,216,678 81,676 599,094 1,148,574 (549,480) 2,298,354 2,216,678 81,676 83,130 (465,972) (549,102) (580,333) (545,290) 35,043 644,333 644,333 644,333 644,333 83,130 (465,972) (549,102) 64,000 99,043 35.043 2,882,866 2,882,866 863,320 863,320 962,363 $ $ 2,965,996 $ 2,416,894 $ (549,102) $ 927,320 $ 35,043 11 CITY OF COLLEYVILLE, TEXAS EXHIBIT 4 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS- PROPRIETARY FUND TYPE - WATER AND SEWER ENTERPRISE FUND YEAR ENDED SEPTEMBER 30, 2002 (WITH COMPARATIVE TOTALS FOR 2001) 2002 2001 OPERATING REVENUES: Metered water sales $ 5,778,866 $ 5,705,016 Sewer service charges 1,855,462 1,772,235 Miscellaneous charges and fees 358,537 316,807 Total operating revenues 7,992,865 7,794,058 OPERATING EXPENSES: Personal services 1,218,943 1,145,539 Maintenance and contractual services 4,540,557 4,570,038 Materials and supplies 150,348 77,789 Depreciation and amortization 1,199,724 1,179,575 Total operating expenses 7,109,572 6,972,941 OPERATING INCOME 883,293 821,117 NONOPERATING REVENUES (EXPENSES): Interest income 377,975 672,510 Interest expense and agent fees (485,984) (515,003) Other income 36,193 11,148 Total nonoperating revenues (expenses) (71,816) 168,655 INCOME BEFORE CONTRIBUTIONS AND OPERATING TRANSFERS 811,477 989,772 Capital Contributions 2,321,761 1,204,066 Operating transfer out (448,635) (513,276) NET INCOME 2,684,603 1,680,562 RETAINED EARNINGS AT BEGINNING OF YEAR 9,930,421 8,249,859 RETAINED EARNINGS AT END OF YEAR $ 12,615,024 $ 9,930,421 The Notes to General Purpose Financial Statements are an integral part ot this statement. 12 CITY OF COLLEYVILLE, TEXAS EXHIBIT 5 STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE - WATER AND SEWER ENTERPRISE FUND YEAR ENDED SEPTEMBER 30, 2002 (WITH COMPARATIVE TOTALS FOR 2001) 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES: Operating income $ 883,293 $ 821,117 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 1,199,724 1,179,575 (Increase) decrease in receivables (385,891 ) 614,475 (Increase) decrease in inventories 20,046 (99,887) Increase (decrease) in accounts payable and accrued liabilities 4,902 (293,256) Increase in restricted accounts payable 93 5,429 Increase in customer deposits 9,740 9,310 Increase in compensated absences 5,347 1,012 Other 36,193 11,148 Net cash provided by operating activities 1,773,647 2,24S,923 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfer out (448,635) (513,276) Advances from other funds (690,525) 908,423 Net cash provided by (used in) noncapital financing activities (1,139,160) 395,147 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (639,056) (1,957,859) Principal paid on revenue bonds and certificates of obligation (597,000) (566,000) Interest paid on revenue bonds and certificates of obligation (496,465) (524,206) Capital improvement fees received 319,894 323,334 Net cash (used in) capital and related financing activities (1,412,627) (2,724,731) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of investments (10,665,459) (9,357,052) Maturities of investments 9,357,052 8,892,286 Interest received 506,732 709,528 Net cash proVided by (used in) investing activities (801,675) 244,762 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,579,815) 164,101 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 2,850,728 2,686,625 CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,270,911 $ 2,850,726 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES: During 2002 and 2001 , developers contributed assets amounting to $2,001,867 and $880,732 respectively, to the City's water and sewer system. The Notes to General Purpose Financial Statements are an integral part of this statement. 13 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS 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 govemment. The accounting policies of the City of Colleyville, Texas (City) confonm to generally accepted accounting principles as applicabie 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 govemment. 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 govemment. Each blended component unit has a September 30 year-end. Biended Component Unit - The Water and Sewer Authority (Authority) serves all the citizens of the City and is governed by a board comprised of the City's elected council. The rates for user charges and bond issuance authorizations are approved by the City's council and the legal liability for the generai obligation portion of the Authority's debt remains with the City. The Authority is reported as an enterprise fund. Blended Component Unit . The Colleyville Economic Development Corporation (CEDC) was incorporated on September 3, 1996 as a nonprofit industriai deveiopment corporation under the Development Corporation Act of 1979 ("Acf'). The CEDC operates under a seven (7) member Board of Directors appointed by the City Council. Each of the directors shall be a resident of the City. The Corporation is organized exciusively for the purposes of benefiting and accomplishing pubiic purposes of and to act on behalf of, the City, and the specific purposes for which the Corporation is organized. This includes municipal park improvements, the purchase of land and improvements for additional neighborhood parks, the construction of a community center and library. Although it is legally separate from the City, the CEDC is reported as if it were part of the primary government, because CEDC is financing public improvements and the City is the primary beneficiary of the services provided. Blended Component Unit - Colleyville Crime Control and Prevention District (the District) was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention District Act. The District is organized to act on behalf of the City for financing, development of crime control throughout the City. The District is governed by a seven-member board consisting of all members of the City Council and one additional member appointed by the City Council. The District is reported as a part of the primary government because it provides services entirely for the City. Discretely Presented Component Unit - Colleyville Tax Increment Financing Reinvestment Zone Number One (the TIF) was formed to make public improvements, under the authority of the Tax Increment Financing Act. The TIF is governed by an eight-member board consisting of four members appointed by the City Council and one member each appointed by the four other participating taxing entities. The TIF is presented in the accompanying financial statements. Separate financial statements of the individual component units are not available. 14 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies - continued B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into the fund types and account groups listed below: 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 govemmental fund types: General fund - 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. Soecial revenue funds - Special revenue funds are used to account for specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Debt service fund - The debt service fund is used to account for the accumulation of resources for, and the payment of, generallong-tenm debt principal and interest, and related costs. Capital proiects fund - The capital projects fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by the proprietary fund). Financing is provided primarily by the sale of general obligation bonds and developer contributions. Proprietary Fund The proprietary fund is 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's proprietary fund type consists of: Enterorise 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 detenmination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Fiduciary Funds Aaencv Fund - Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent on behalf of others. Agency funds are custodial in nature and do not present results of operations or have a measurement focus. 15 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies - continued B. Fund Accounting - continued Account Groups Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt. The following are the City's account groups: General Fixed Assets Account Grouo - This account group is established to account for all fixed assets of the City, other than those accounted for in the proprietary fund. General Lone- T enm Debt Account Grouo - This account group is established to account for all long- term debt of the City except that accounted for in the proprietary fund. C. Basis of Accounting The modified accrual basis of accounting is followed by govemmental funds and the agency fund. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available to finance expenditures of the fiscal period. "Measurable" means the amount of the transaction can be detenmined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues not considered available are recorded as deferred revenue. Expenditures are recorded when the related fund liability is incurred except for (1) interest on general long-tenm obligations, which is recognized when due or when amounts have been accumulated in the Debt Service Fund for payments to be made early in the following year, and (2) a portion of compensated absences, which are recorded in the general long-term debt account group until the obligations are expected to be liquidated with expendable available financial resources. Property tax, franchise tax and sales tax revenues are recognized under the susceptible to accrual concept. Only revenue received within thirty days of year-end is considered available to finance expenditures of the current period. Licenses and penmits, capital improvement fees (received in the Capital Project Fund for street improvement), engineering and inspection fees, fines and forfeitures, contributions and donations, deveioper contributions, drainage fees and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Interest income is recorded as eamed since it is measurable and available. The accrual basis of accounting is utilized by the proprietary fund. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Unbilled utility service charges of the Enterprise Fund are estimated and recorded as receivables, net of estimated uncollectibles. Govemmental Accounting Standards Board (GASB) Statement 20 allows the City to elect to apply all Financial Accounting Standards (FASB) statements and interpretations issued after November 30, 1989, except those that conflict with or contradict GASB pronouncements, or to apply only GASB pronouncements and FASB statements issued before November 30, 1 989 in its Proprietary Fund types. The City has decided to apply only FASB statements issued before November 30, 1989. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the general fixed assets account group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets such as roads, bridges, streets, sidewalks, and drainage systems buill with public funds are capitalized along with other general fixed assets. 16 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies - continued D. Budgetary Data The City Council follows these procedures in establishing budgetary data reflected in the general purpose 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, Drainage Utility, Debt Service, and Enterprise Funds. Budgetary control is maintained at the function level. Internal budgets are prepared and reviewed by the City Council for expenditures of special revenue funds other than the Drainage Utility Fund. These budgeted expenditures are not formally adopted by the City Council. No budgets were prepared for revenues of these funds for the year ended September 3D, 2002. (6) Budgets for the General, Drainage Utility, and 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, Drainage Utility, Debt Service and Enterprise Funds. Actual expenditures exceeded budgeted amounts in the Drainage Utility Fund for the year ended September 30, 2002. (7) Budgetary data for the Capital Projects Fund has not been presented in the accompanying general purpose 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 Fund has not been presented since the reporting on such budgets is not legally required. E. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable fund balance, is employed in the governmental funds. Encumbrances are reported as reservations of fund balances because they do not constitute expenditures or liabilities. 17 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies - continued F. Cash and Cash Equivalents For purposes of the statement of cash flows, the Enterprise Fund considers all highly liquid investments (investments with original maturities less than 90 days, including restricted assets) to be cash equivalents. G. Investments In accordance with GASB Statement No. 31, the City's general policy is to report money market investments and short-term participating interest-earning investment contracts at amortized cost and to report nonparticipating interest-eaming investment contracts using a cost-based measure. However, if the fair value of an investment is significantly affected by the impainment of the credit standing of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless a legal contract exists which guarantees a higher value. The tenm "short-tenm" refers to investments, which have a remaining tenm of one year or less at time of purchase. The tenm "nonparticipating" means that the investment's value does not vary with market interest rate changes. H. Inventories Inventories in the Enterprise Fund are valued at cost (first-in, first-out method). I. Fixed Assets General fixed assets are recorded as expenditures in the General Fund, Capital Projects Fund, or Special Revenue Funds, and capitalized at cost in the General Fixed Assets Account Group. In the case of gifts or contributions, such assets are recorded in the General Fixed Assets Account Group at estimated fair market value at the time received. General fixed assets contributed by developers or other contractors consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, have been capitalized at estimated fair market value. Infrastructure constructed by the City has been capitalized at cost in the General Fixed Assets Account Group. No depreciation has been provided on general fixed assets, and no interest has been capitalized. Purchased fixed assets in the Enterprise Fund are recorded at cost, and donated fixed assets in the Enterprise Fund are recorded at their estimated fair value at the date of donation. These fixed assets are depreciated using the straight-line method over their estimated useful lives. J. Other Assets - Enterprise Fund Other assets consist of expenses incurred in connection with the issuance of certain outstanding revenue bonds. Such charges are amortized on a straight-line basis over the lives of the bonds. K. Compensated Absences City employees are granted vacation and sick pay in varying amounts. In the event of tenmination, an employee is paid for all accumulated, unused vacation. Vacation pay is accrued as it vests to the employee. Sick pay is recorded when paid or upon retirement when a maximum of 90 days is paid. The accrued sick pay is not recorded, as the City's policy is not to compensate employees upon separation of services with the City, except for retirement, and such amounts are not considered material. 18 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies - continued K. Compensated Absences - continued Accrued vacation pay that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. The short-term portion of accrued vacation pay is not considered material. Amounts of accrued vacation pay that are not expected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expenditure is reported for these amounts. Accrued vacation pay of the Enterprise Fund is recorded as an expense and liability of that fund as the benefits accrue to employees. L. Restricted Assets - Enterprise Fund Certain proceeds of Enterprise Fund bonds, as well as certain resources set aside for their repayment, are ciassified as restricted assets because their use is limited by applicable bond covenants. The City has restricted capital improvement fees received from developers for the construction of the City's water and sewer facilities. Such fees are recorded as capital contributions on the statement of revenues, expenses, and changes in retained earnings of the water and sewer enterprise fund. The City requires customers to make deposits at the time of connection to the water and sewer system. These deposits are designed to ensure payment of final service billings and to protect the Water and Sewer Enterprise Fund against damage to equipment located on the customer's property. Retained earnings have been reserved for the excess of restricted assets over related liabilities to the extent such restricted assets were accumulated from revenues (Le., in some cases, restricted assets were obtained in total or in part from bond proceeds). M. Long-Tenm Debt General obligation bonds, which have been issued to fund capital projects of the governmental fund types and are to be repaid principally from ad valorem property taxes, are recorded in the General Long-Tenm Debt Account Group. Revenue bonds and certificates of obligation issued to fund construction projects of the Enterprise Fund that are to be repaid from net revenues of the Enterprise Fund are recorded as Enterprise Fund debt. Certain general obligation bonds and certificates of obligation issued, in part, to fund construction projects of the Enterprise Fund are recorded as long-term debt in the General long-Tenm Debt Account Group and are to be repaid from ad valorem property taxes. Capital iease obligations represent the remaining principal amounts payable under lease purchase agreements for the acquisition of various equipment. The leases are recorded in the General Long- Term Debt Account Group and the leased equipment in the General Fixed Assets Account Group. N. Fund Equity Reservations of fund balance represent amounts that are not available for appropriation or are legally segregated for specific purpose. Reservations of retained earnings are limited to outside third-party restrictions. Designations of fund balance represent tentative management plans that are subject to change. The Enterprise Fund's contributed capital represents equity acquired through capital grants and capital contributions from developers, customers or other funds. 19 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies - continued N. Fund Equity - continued In the Special Revenue Funds, fund balances reserved for other represent amounts which are restricted for expenditure in accordance with the purposes for which the fund was established, such as park and library improvements, tree preservation, hosting recreational events and toumaments, and increasing recycling efforts within the City. Amounts under these reservations are listed on the accompanying general purpose financial statements as reserved for other. The following is a summary of the specific reservation within the Special Revenue Funds' reserved for other: Community center development Parks Library Police asset forfeiture Tree preservation Building donations Recreational events Recycling Law enforcement standards and education program Crime prevention district Kidsville park maintenance Economic development $ 22,456 432,892 584,405 3,009 5,203 9,300 3,011 521 17,607 1,891,717 24,298 795.051 $ 3789.470 O. Risk Management Insurance coverage for property, liability and workers' compensation is provided by the Texas Municipal League Intergovernmental Risk Pool, a state insurance pool. Contributions to the Risk Pool for workers' compensation are based on the City's past claims history. The Risk Pool is self-sustaining through member's contributions and maintains insurance to limit risk of loss with an external insurance company. Settlement claims have not exceeded aggregate limits in the past three fiscal years. P. Transactions Between Funds The General Fund charges the Water and Sewer Enterprise Fund an administration fee for certain general and administrative services provided to the fund. Such charges are arbitrarily detenmined and recorded as operating transfers by both funds, and amounted to $ 448,635 in 2002. Other transfers between funds are primarily treated as operating transfers and are included in the results of the governmental funds. Q. Comparative Data Comparative data for the prior year has been presented in the accompanying general purpose financial statements in order to provide an understanding of changes in the City's financial position and operations. R. Total Columns Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in confonmity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 20 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 1. Summary of Significant Accounting Policies - continued S. FASB Pronouncements The City has elected not to adopt those Statements and Interpretations of the Financial Accounting Standards Board issued after November 30, 1989 for proprietary funds unless adopted by the Governmental Accountin9 Standards Board. T. Reclassifications Certain prior year amounts have been reclassified to confonm to current year presentation. Note 2. Cash, Cash Equivalents and Investments Substantially all cash, cash equivalents and investments are maintained in consolidated cash and investment accounts. Interest income relating to consolidated cash, cash equivalents and investments is allocated to the individual funds monthly based on each fund's pro-rata share of total consolidated cash, cash equivalents and investments. Legal provisions generally penmit the City to invest in certificates of deposit, repurchase agreements, public funds investment pools, direct obligations of the United States of America or its subdivisions and state and local government securities. During the year ended September 30, 2002, the City did not own any types of securities other than those penmitted by statute. The City's cash deposits are categorized to give an indication of the level of credit risk assumed by the City at year-end. Category 1 includes cash deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 includes cash deposits that are collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3 includes cash deposits that are uncollateralized, including any cash deposit that is collateralized with securities held by the pledging financial institution's trust department or agent but not in the City's name. At September 30, 2002, the carrying amount of the City's cash deposits (primarily interest bearing deposits) was $100,300 and the bank balance was $185,300. The entire bank balance qualified as Category 1. During the year ended September 30, 2002, the City invested in Texas Local Govemment Investment Cooperative (LOGIC) Liquid Asset Portfolio and United States government agency securities. LOGIC, a public funds investment pool managed by Southwest Securities Group, Inc. Authorized investments of LOGIC include obligations of the United States of America or its agencies and instrumentalities, other obligations unconditionally guaranteed by the U.S. government, and collateralized repurchase agreements. The fair value of the City's position in the investment pool is the same as the value of the pool shares. At September 30, 2002, the City's investments in LOGIC are considered cash equivalents. These investments in LOGIC are not categorized because they are not evidenced by securities that exist in physical or book entry fonm. The City's investments are categorized to give an indication of the level of credit risk assumed by the City at year-end. Category 1 includes investments that are insured or registered for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the City's name. All ofthe City's investments at September 30, 2002 were Category 1 investments. Investments in United States government agency securities are considered to be short tenm and are stated at cost and all such investment activity is conducted through a depository bank. During the fiscal year ending September 30, 2002, the City did not invest through any security brokers or dealers. All investments in United States government agency securities qualified as Category 1. 21 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 2. Cash, Cash Equivalents and Investments - continued A summary of the City's cash, cash equivalents and investments follows: Cash on hand Cash in bank LOGIC Cash and cash equivalents, net Investments. United States government agency security Carryin9 Fair Amount Value $ 2,751 $ 2,751 969,106 969,106 17.019.580 17.019.580 17,991,437 17 ,991,437 25 673 242 26 076 002 s 4~ AA4 679 S 44 OR7 439 Cash, cash equivalents and investments are classified on the balance sheet as follows: Unrestricted cash and cash equivalents Unrestricted investments Restricted cash and cash equivalents Restrictedinvesbnents Carryin9 Amount $ 17,211,443 22,336,919 779,994 3 536.323 $ 43 A64 679 Note 3. Property Tax The City's property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real property and certain personal property located in the City. Tax liens attach as of January 1. The assessed value, net of exemptions, upon which the fiscal 2002 levy was based, was $ 2,123,792,455. 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 30,2002 was $ .3474 per $100 of assessed valuation. Taxes are due by January 31 following the levy date. Tax collections, including related penalties and interest, for the year ended September 30, 2002 were 100.34% of the tax levy. Property taxes receivable at September 30,2002 were $ 204,837. Property taxes levied for 2002 have been recorded as receivables, net of estimated uncollectibles. The net receivables collected during 2002 and those considered "available" at September 30, 2002 have been recognized as revenues in 2002. Prior year levies were recorded using these same principles. The remaining receivables have been reflected as deferred tax revenue ($ 204,837 at September 30, 2002). The appraisal of property within the City is the responsibility of a countywide Appraisal District as required by iegislation passed by the Texas Legislature. The Appraisal District is required under such legislation to assess all property within the Appraisal District on the basis of 100% of its appraised value and is prohibited from applying any assessment ratios. The value of property within the Appraisal District must be reviewed every three years; however, the City may, at its own expense, require annual reviews of appraised values. The City may challenge appraised values established by the Appraisal District through various appeals and, if necessary, legal action. 22 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 4. Fixed Assets A summary of changes in general fixed assets follows: Balance Balance October 1, September 30, 2001 Additions Retirements Transfers 2002 Land and buildings $ 17,837,621 $ 9,581 $ $ 726,223 $18,573,425 Improvements other than buildings 43.377,306 4.345,359 4,768.041 52,490,706 Equipment 6,990,088 287,885 119,691) 7,158,282 Construction in progress 9 524 326 8.090 232 5494 264) 12120294 s 77 7?Q~1 $1? 7~~ 057 ($ 11!=lA!=l1l $ S 00 :Y? 707 A summary of proprietary fund fixed assets at September 30, 2002 follows: Land Buildings Improvements Equipment Construction in progress Deoreciable Lives 30 years 40 years 5 years $ 313,057 53,922 43,175,125 898,914 508.201 44,949,219 13429.449 $ 31519770 Less accumulated depreciation Note 5. Long-Term Debt The following is a summary of long-tenm debt transactions of the City for the year ended September 30, 2002: Balance Balance October 1, September 30, 2001 Additions Retirements 2002 General Long-Term Debt General obligation bonds and certificates of obligation $12,975,000 $ 3,000,000 $ 660,000 $ 15,315,000 Revenue bonds 3,025,000 85,000 2,940,000 Sales tax revenue bonds 14,982,722 510,000 14,472,722 Capital lease obligations 130,286 69,770 60,516 Note payable 397,250 140,750 256,500 Compensated absences 389,399 20,857 410,256 Accreted interest 29 678 24531 54209 Total general long-term debt 31 929.335 3.045 388 1.465 520 33 509 203 Water and Sewer Enterprise Fund: Revenue bonds and certificate of obligation 10,100,000 597,000 9,503,000 Compensated absences 26 508 5347 31855 T atal water and sewer enterprise fund debt 10126508 5347 597 000 9534.855 Total S 47 055 R4::! S 3 050 735 S 2 OR? 5?O S 4~ 044 OSA 23 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 5. Long-Tenm Debt - continued Long-tenm debt at September 30, 2002 consisted of the following: Revenue bonds serviced by municipal drainage utility system revenues: $3,025,000 Series 2001 municipal drainage utility system revenue bonds due in annual installments of $85.000 to $220,000 through February 15, 2021; interest at 4.00% to 5.00%. $ ? MO 000 Revenue bonds serviced by sales tax revenues: $7,170,000 Series 1999 Texas Tax and Waterworks and Sewer System Certificates of Obligation due In annual installments of $5,000 to 565,000 through February 15, 2019; interest at 3.60% to 5.60%. $ 6,505,000 $2,122.722 Series 2000 Colleyville Economic Development Corporation Sales Tax Revenue Bonds due in annual installments through February 15, 2027; interest at 5.50% to 6.250%. 2,102,722 $6,460,000 SeMes 1997 Colleyville Economic Development Corporation Sales Tax Revenue Bonds due In annual installments of $150,000 to $480,000 through February 15, 2022; interest at 5.00% to 7.00%. 5.865 000 S 1447' 7?? General obligation bonds and certificates of obligation serviced by property tax revenues: $1,145,000 SeMes 1975 General Obligation Bonds due in annual installments of $5,000 to $65,000 throu9h January 1, 2015: interest at 5.00%. $ 640,000 $3,000,000 SeMes 2002 Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation Bonds due in annual installments of $110,000 to $170,000 through February 15, 2020: interest at 4.20% to 4.70% 3,000,000 $9,045,000 SeMes 2001 General Obli9ation Bonds due in annual installments of $55,000 to $1,030,000 through February 15. 2014; interest at 4.00% to 4.60%. 8,990,000 $4,515,000 Series 1994 General Obligation Refunding and Improvement Bonds due in annual installments of $115,000 to $405,000 throu9h February 1, 2013; interest at 3.60%1 to 5.60%. $2,520,000 SeMes 1995 General Obligation Bonds due in annual instaliments of $75,000 to $215,000 through February 15, 2015; interest at 5.40% to 8.00%. $2,205,000 SeMes 1996 General Obligation Bonds due in annual installments of $75,000 to $170,000 through February 15, 2016; interest at 3.75% to 5.80%. 1,625,000 215,000 380,000 24 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 5. Long-Tenm Debt - continued $500,000 Series 1999 General Obligation Bonds due in annual installments 01 $5,000 to $40,000 through February 15, 2019; interest at 4.00% to 6.00%. Note payable serviced by property taxes: $225,000 note payable due in annual installments of $50,000 plus interest; interest rate at 5.60%. 465 000 S 15 ~15 oon $ 75,000 Note payable serviced by property taxes, $363,000 note payable due in annual installments of $90,750 plus interest; interest rate at 4.00% 181 SOD Revenue bonds and certificates of obligation serviced by water and sewer revenues: $2,000.000 Series 1975 Waterwor1<s and Sewer System Revenue Bonds due in annual Installments of $15,000 to $95,000 through January 1, 2015; interest at 5.00%. $250,000 Series 1975-A Waterworks and Sewer System Revenue Bonds due in annual installments of $2,000 to $20,000 through January 1, 2015: interest at 5.00%. $1,400,000 Series 1981 Walerwor1<s and Sewer System Revenue Bonds due in annual installments of $20,000 to $80,000 through January 1, 2014; interest at 5.00%. $2,860,000 Series 1994 Waterwor1<s and Sewer System Revenue Bonds due in annual Installments of $100,000 to $200,000 through January 1, 2014; interest at 3.15% to 5.40%. $4,220,000 Series 1996 Waterworks and Sewer System Revenue and Refunding Bonds due in annual installments 01$100,000 to $335,000 through January 1, 2017: interest at 3.75% to 5.60%. $2,825,000 Series 1998 Waterworks & Sewer System Revenue Bonds due in annual installments of $85,000 to $220,000 through January 2018, interest at 4.25% to 6.75%. Capital lease obligations: 2003 2004 Less interest 25 5; ?~R 500 $ 1,115,000 158,000 705,000 1,930,000 3,140,000 2 455.000 5; g ~03 000 $ 32,222 32221 64,443 3.927 $ 60516 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 5. Long-Tenm Debt - continued Proprietary debt reflected in the City's combined financial statements is net of an unamortized deferred refunding amount of $36,704. Discretely presented component unit tax notes: $2,895,000 Series 2000 Tax Notes due in installments of $670.000 to $780.000 beginning in 2004: interest at 4.95% to 5.20%. $ 2.895,000 $680,000 Series 2002 Tax and Tax Increment Revenue Certificates of Obligation due in installments of $25,000 to $40,000 beginning through February 2012: interest at4% to 5% 680,000 $7,285,000 Series 2001 Tax Notes due in installments of $350,000 to $66,000 beginning In 2006: interest at 4.30% to 5.00%. 7 285 000 $ 10880 000 The requirements to amortize all debt outstanding as of September 30, 2002, including interest of $36,652,162 are as follows: Year Ending Seotember 30 2003 2004 2005 2006 2007 Thereafter General Obligation Bonds and Other Obliaations $ 1,607,290 1,571,229 1,411,078 1,896,440 1,906,665 11381995 .$ 19774 fi97 General Long-Tenn Debt Revenue and Sales Tax Obliaations $ 1,652,699 1,644,714 1,648,451 1,537,501 1,545,523 23.447 823 s ~1 47fi 711 Revenue Bonds and Certificates of Obliaation $ 1,086,293 1.084,733 1,088,546 1,085,043 1,085,281 7 628 355 Total Primary Govemment Component Unit Tax Notes $ 487,428 1,867,208 1,901,824 2,631,436 2,685,621 16 176 724 $?!i ?!iO '41 $ 4,346,282 4,300,676 4,148,075 4,518,984 4,537,469 42458173 .$ 1~ 05A 251 !Ii 64 309 fi!iQ The ordinances authorizing the issuance of Waterworks and Sewer System Revenue Bonds created the Interest and Sinking Fund and Reserve Fund. The gross revenues of the waterworks and sewer 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, 2002, the City was in compliance with these requirements. 26 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 6. Interfund Receivables and Payables Interfund balances at September 30, 2002 consisted of the following individual fund receivables and payables: Fund General Fund Special Revenue Funds Drainage Utility Fund Voluntary Park Fund Voluntary Library Fund Police Asset Forfeiture Fund Library Donation Recreational Event Tree PreselVation Fund Community Center Development Crime Prevention Fund ColleyviUe Economic Development Recyding Fund Lease Fund KidsviUe Maintenance Fund Debt Service Fund Capital Projects Fund Enterprise Fund Agency Funds Sesquicentennial Fund Special Donations Fund Employee Activity Fund Receivable Pavable $ 1,238,039 $ 200,322 3,821 9.043 3,009 9,300 3,011 25,827 22,456 536,191 521 17,607 24,298 212,434 690,227 228,772 187,221 586,429 3,511 18,951 2388 S ?0116AQ S?n11AAQ Note 7. Employees' Retirement System Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), one of 758 administered by TMRS, an agent multiple-employer public employee retirement system. Benefits depend upon the sum of the employee's contributions to the pian, with interest, and the City- financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the pian began are a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In addition, the City can grant, as often as annually, another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the empioyee's accumuiated contributions and the monetary credits for service since the plan began, would be the total monetary credits and empioyee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the empioyee's accumuiated contributions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. 27 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 7. Employees' Retirement System - continued Members can retire at ages 60 and above with 10 or more years of service or with 25 years of service regardless of age. A member is vested after 10 years. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. TMRS issues a publicly availabie annual financial report that includes financial statements and required supplementary information. The report may be obtained by writing to TMRS, P.O. Box 149153, Austin, Texas 78714-9153. Contributions The contribution rate for the employees is 7%, and the City matching percent is currently 200%, both as adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually determines the City contribution rate. This rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the currently accruing monetary credits due to the City matching percent, which are the obligation of the City as of an employee's retirement date, not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially detenmined percent of payroll necessary to satisfy the obligation of the City to each employee at the time his retirement becomes effective. The prior service contribution rate amortizes the unfunded actuarial liability over the remainder of the plan's 25-year amortization period. When the City periodically adopts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. The unit credit actuarial cost method is used for detenmining the City contribution rate. Contributions are made monthly by both the employees and the City. Since the City needs to know its contribution rate in advance to budget for it, there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. Schedule of Actuarial Liabilities and Fundina Proaress Actuarial Valuation Date 12-31-01 12-31-00 12-31-99 12-31-98 12-31-97 Actuarial Valuation of Assets $12,000,548 $10,248,735 $ 8,387,031 $7,136,946 $6,048,121 Actuarial Accrued Liability $13,378,986 $11,213,832 $ 9,145,444 $7,818,908 $6,589,930 Percentage Funded 89.7% 91.4% 91.7% 91.3% 91.77% Unfunded (Overfunded) Actuarial Accrued Liability (UAAL) $ 1,378,438 $ 965,097 $ 758,413 $ 681 ,962 $ 500,809 Annual Covered Payroll $ 7,195,064 $ 6,112,380 $ 5,413,750 $4,678,677 $4,307,650 UAAl as Percentage of Covered Payroll 19.2% 15.8% 14.0% 14.6% 11.6% Net Pension Obligation NPO At Beginning of Year -0- -0- -0- -0- -0- Annual Pension Cost Annual Required Contribution (ARC) $ 740,452 $ 710,577 $ 615,484 $ 464,420 $ 397,255 Interest on NPO -0- -0- -0- -0- -0- Adjustment to the ARC -0- -0- -0- -0- -0- Contribution Made $ 740,452 $ 710,577 $ 615,484 $ 464,420 $ 397,255 Increase in NPO -0- -0- -0- -0- -0- NPO at End of Year $ -0- $ -0- $ -0- $ -0- $ -0- 28 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 7. Employees' Retirement System - continued Actuarial Assumptions Actuarial Cost Method - Amortization Method - Remaining Amortization Period - Asset Valuation Method - Unit Credit Level Percent of Payroll 25 Years - Open Period Amortized Cost (to accurately reflect the requirements of GASB Statement No. 25, paragraphs 36e and 138). Investment Rate of Return - Projected Salary Increases - Includes Inflation At - Cost of Living Adjustments - 8% None None None Note 8. Water and Sewer 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 tenms of the contracts are thirty-five and fifty years and they expire in 2015 and 2025. 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 2002 amounted to approximately $3,407,065 and $816,356, respectively. Note 9. Advances from Developers Developers are required by ordinance to construct perimeter streets and related stonm drainage facilities. The developer may request a waiver from the Council for the construction requirements and instead deposit escrow funds with the City equal to one-half of the estimated cost of construction, which are utilized by the City to complete the project at some later date. During 2002, the developers contributed such assets with a value of $13,900 to the City. At September 30,2002, developers had escrowed $1,965,361 with the City in connection with developer agreements. 29 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 10. Contingent Liabilities The City has been named as a defendant or co-defendant in a number of legal actions. While the outcome of these cases is not known at this time, City management believes that any awards to injured parties which must be paid in excess of amounts covered by insurance will not be material to the financial position of the City. Note 11. Risk Financing and Insurance The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During the fiscal year 1974, the City joined the Texas Municipal League Workers Compensation Joint Insurance Fund for risks related to employees. During the fiscal year 1992, the City joined the Texas Municipal League Joint Insurance Fund for risks related to general liability, property and errors and omissions. Premiums are paid to the Pool, which retains a limit of loss. Reinsurance companies insure the risks beyond those limits. The City retains, as a risk, only the deductible amount of each policy. There have been no significant reductions in insurance coverage during the current period. Note 12. Budgetary Reporting The City does not budget all special revenue funds and, accordingly, the applicable columns of the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) (Exhibit 3) exclude amounts relating to the unbudgeted funds. A reconciliation of actual results for budgeted and unbudgeted special revenue funds follows: Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses - budgeted special revenue fund ($ 465 972) 30 CITY OF COLLEYVILLE, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Note 12. Budgetary Reporting - continued Adjustments: Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses - un budgeted special revenue funds: Voluntary Park Fund Voluntary Library Fund Library Donation Fund Recreational Event Community Center Development Recycling LEOSE Fund Colleyville Economic Development Fund Crime District $ 57,932 82,016 9,300 3,011 588 ( 2,020) 2,285 ( 108,612) ( 3.480.016) ( 3.435.516) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses - all special revenue funds ($ 3 901 488) The City's budgetary basis differs from GAAP basis in that it does not account for capital outlay expenditures and capital iease proceeds resulting from capital lease agreements. There was no capital leases entered into during the current year. 31 This page intentionally left blank SPECIAL REVENUE FUNDS Drainage Utility Fund - 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, including. but not limited to, administration, operations, maintenance, billing and collections. Voluntary Park Fund - to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support park activities. Voluntary Library Fund - to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support library activities. Police Asset Forfeiture Fund - to account for activity related to seizure of assets in criminal-related activity. Tree Preservation Fund - to account for operations related to replacement of trees, which are eliminated due to commercial development. Contributions are received from the entity, which is developing the property. Library Donation - to account for private and corporate donations to fund capital purchases related to a new library building for the City. Recreational Event - to account for activities related to athletic events for the City. Community Center Development Fund - to account for contributions received to construct a community center. Recycling Fund - to account for the promotion of recycling activities in the City of Colleyville. Contributions are received from the holder of the City's recycling franchise. LEOSE (Law Enforcement Officer Standards and Education) Fund - to account for activities related to the continuing education of qualified law enforcement officers as funded by the State of Texas LEOSE Account. Colleyville Economic Development Fund - to account for the use of bond proceeds and sales tax revenues for municipal park improvements, the purchase of land and equipment for additional neighborhood parks and for the construction of a community center and library. Crime District - to account for the Colleyville Crime Control and Prevention District fonmed to act on behalf of the City for financing the development of crime control throughout the City. Kidsville Maintenance - to account for contributions received for the maintenance of Kidsville Playground. 32 CITY OF COLLEYVILLE, TEXAS COMBINING BALANCE SHEET. SPEClAL REVENUE FUNDS SEPTEMBER 30,2002 (WITH COMPARATfVE TOTALS FOR 2001) POLICE DRAINAGE VOLUNTARY VOLUNTARY ASSET TREE LIBRARY RECREATIONAL UTILITY PARK LIBRARY FORFEITURE PRESERVATION DONATION EVENT ASSETS Cash and cash equivalents $ 1,581,040 $ $ $ $ $ I Investments, at cost 621,306 423,208 564,728 Receivables: Accounts 36,460 Accrued interest 8,570 5,863 10,634 Due from other governments Due from other funds 200,322 3,821 9,043 3,009 25,827 9,300 3,011 TOTAL ASSETS $ 2,447,698 $ 432,892 $ 584,405 $ 3,009 $ 25,827 $ 9,300 $ 3,011 LIABILITIES AND FUND BALANCE liabilities: Accounts payable and accrued liabilities $ 30,804 $ $ $ $ $ $ Advances from developers 20,624 Due to other funds Total liabilities 30,804 20,624 Fund Balance: Reserved for construction 2,416,894 Reserved for other 432,892 584,405 3,009 5,203 9,300 3,011 TOTAL LIABILITIeS AND FUND BAlANCE I 2,447,698 $ 432,892 $ 584,405 $ 3,009 $ 25,827 $ 9,300 $ 3,011 33 A-' COMMUNITY CENTER DEVELOPMENT lEDSE COLLE'NILLE ECONOMIC DEVELOPMENT CRIME DISTRICT KIOSVILlE MAINTENANCE TOTAlS 2002 2001 RECYCLING $ $ $ $ 198,254 $ 1,313.598 $ $ 3,092,892 $ 5,912,411 1,063,917 2.673,159 2.968,343 36,460 36,036 9.806 34,873 32.996 147,717 116,234 263,951 104,783 22.456 521 17,607 536,191 24,298 855.406 1.312,868 $ 22,456 $ 521 $ 17,607 $ 882,162 2,503,555 $ 24,298 $ 6,956,741 $ 10,367,437 $ $ $ $ 87,111 $ 424,617 $ $ 542,532 $ 238,961 20,624 20,624 187,221 187,221 87,111 611,838 750,377 259,585 2,416.894 2.882.866 22.456 521 17,607 795,051 1,891,717 24,298 3.789.470 7.224,986 $ 22,456 $ 521 $ 17,607 $ 882,162 $ 2,503,555 $ 24.298 $ 6,956,741 $ 10,367,437 34 CITY OF COLLEYVILLE, TEXAS COMBINING 5T ATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2002 (WITH COMPARATIVE TOTALS FOR 2001) POLICE DRAINAGE VOLUNTARY VOLUNTARY ASSET TREE LIBRARY UTILITY PARK LIBRARY FORFEITURE PRESERVATION DONATION REVENUES; Sales tax $ $ $ $ $ $ Developer contributions Drainage fees 615,099 Interest income 67,503 14,637 22,553 Donations 118,875 59,463 9,300 Bond proceeds Miscellaneous Total revenues 682,602 133,512 82,016 9,300 EXPENDITURES: Current General government Police Parks and recreation 75,580 Drainage 256,866 Capital outlays 601,043 Debt Service: Principal retirement 205,115 Interest and agent fees 85,550 Total expenditures 1,148,574 75,580 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (465,972) 57,932 82,016 9,300 Other Financing Sources (Uses): Proceeds from bonds Proceeds from refunding bonds Payment to refunding bond escrow agent Operating transfers out EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES (465,972) 57,932 82,016 9,300 FUND BAlANCE AT BEGINNING OF YEAR 2,882,866 374,960 502,389 3,009 5,203 FUND BAlANCE AT END OF YEAR $ 2.416,894 $ 432,892 $ 584,405 $ 3,009 $ 5,203 $ 9,300 35 M. COMMUNITY COLLEYVILLE RECREATION CENTER ECONOMIC CRIME KIDSVILLE TOTALS EVENT DEVELOPMENT RECYCLING lEDSE DEVELOPMENT DISTRICT MAINTENANCE 2002 2001 $ $ $ $ $ 881,921 $ 751,168 $ $ 1.633,089 $ 1,537.900 615,099 593,830 255 105,256 210,206 486,794 15,220 3,500 206,358 184,607 5,450 3,895 3,866 13,211 10,498 15,220 3,500 5,450 3,895 886,042 656,426 2,677,963 2.813.629 7,470 28 7,498 96,607 1,610 3,692,109 3.693,719 1,109,459 12,209 291,560 379.349 482,797 256,866 230,578 2,912 603,955 208,396 170,000 375,115 215,000 533,066 618,616 586,173 12,209 2,912 7,470 1,610 994,654 3,692,109 5,935,118 2,929,010 3,011 588 (2,020) 2,285 (108,612) (2,835,663) (3.257,155) (115.381) 1,600,000 1,425,000 (1,293,580) (644,333) (644,333) (605,659) 3,011 588 (2,020) 2,285 (108,612) (3,480,016) (3,901,488) 1,010,380 21,868 2,541 15,322 903,663 5,371,733 24,298 10,107,852 9,097,472 $ 3,011 $ 22,456 $ 521 $ 17,607 $ 795,051 $ 1,891.717 $ 24,298 $ 6,206,364 $ 10,107,852 36 This page intentionally left blank AGENCY FUNDS Sesquicentennial Fund - to account for funds held by the City for the benefit of the City of Colleyville's Sesquicentennial Committee. Special Donations Fund - to account for funds held by the City for the benefit of specified recipients of donations. Employee Activity Fund - to account for funds held by the City for the benefit of the employees of the City. 37 CITY OF COLLEYVILLE, TEXAS B-1 COMBINING BALANCE SHEET - AGENCY FUNDS SEPTEMBER 30, 2002 (WITH COMPARATIVE TOTALS FOR 2001) 38 CITY OF COLLEYVILLE, TEXAS B-2 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUNDS YEAR ENDED SEPTEMBER 30, 2002 SESQUICENTENNIAL FUND BALANCE BALANCE 10/1/01 ADDITIONS DEDUCTIONS 9/30/02 ASSETS Investments, at cost $ 22,769 $ 20,801 $ 43,570 $ Accrued interest 492 492 Due from other funds 20,797 17,286 3,511 Total Assets $ 44,058 $ 20,801 $ 61,348 $ 3,511 LIABILITIES Due to civic organizations $ 44,058 $ 20,801 $ 61,348 $ 3,511 SPECIAL DONATIONS FUND BALANCE BALANCE 10/1/01 ADDITIONS DEDUCTIONS 9/30/02 ASSETS Due from other funds $ 6,520 $ 25,795 $ 13,364 $ 18,951 Total Assets $ 6,520 $ 25,795 $ 13,364 $ 18,951 LIABILITIES Due to civic organizations $ 6,520 $ 25,795 $ 13,364 $ 18,951 EMPLOYEE ACTIVITY FUND BALANCE BALANCE 10/1/01 ADDITIONS DEDUCTIONS 9/30/02 ASSETS Due from other funds $ 2,616 2,834 $ 3,062 $ 2,388 Total Assets $ 2,616 $ 2,834 $ 3,062 $ 2,388 LIABILITIES Due to civic organizations $ 2,616 $ 2,834 $ 3,062 $ 2,388 TOTAL AGENCY FUNDS BALANCE BALANCE 10/1/01 ADDITIONS DEDUCTIONS 9/30/02 ASSETS Investments, at cost $ 22,769 $ 20,801 $ 43,570 $ Accrued interest 492 492 Due from other funds 29,933 28,629 33,712 24,850 Total Assets $ 53,194 $ 49,430 $ 77,774 $ 24,850 LIABILITIES Due to civic organizations $ 53,194 $ 49,430 $ 77,774 $ 24,850 39 This page intentionally left blank GENERAL FIXED ASSETS ACCOUNT GROUP Fixed assets, which are not used in the Enterprise Fund operations, are accounted for in the General Fixed Assets Account Group. A fixed asset is recorded in the account group when it has been purchased using general govemmental resources and is used for general govemmental purposes. Assets are recorded at cost if purchased or fair market value if donated. No depreciation is recognized on these assets. 40 CITY OF COLLEYVILLE, TEXAS C-1 SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE SEPTEMBER 30, 2002 GENERAL FIXED ASSETS: Land and buildings $ 18,573,425 Improvements other than buildings 52,490,706 Equipment 7,158,282 Construction in progress 12,120,294 Total general fixed assets $ 90,342,707 INVESTMENT IN GENERAL FIXED ASSETS: Investment in property from all sources prior to October 1,1988 (see note) $ 7,360,864 Investment in property acquired after October 1, 1988: Captlal Projects Fund 51,249,116 General Fund 7,861,320 Voluntary Park Fund 756,262 Drainage Utility Fund 2,245,706 Sesquicentennial 43,570 Tree Preservation Fund 73,293 Community Center Building Fund 199,236 Community Center Development 333,605 Mill Creek Fund 53,037 Kinzey Park Fund 242,289 Colleyville Economic Development Fund 782,093 CEDC Captlal Projects 5,953,846 Recreation Event Fund 2,102 Park Land Dedication Fund 232,503 Cable Equipment Acquisition Fund 15,822 Crime Control District 6,687,679 Special Donation 12,118 Tax increment Financing 6,238,246 Total investment in general fixed assets $ 90,342,707 Note: The investment in general fixed assets by source is not available prior to October 1, 1988. 41 CITY OF COLLEYVILLE, TEXAS C.2 SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY SEPTEMBER 30, 2002 IMPROVEMENTS LAND AND OTHER THAN FUNCTION AND ACTIVITY TOTAL BUILDINGS BUILDINGS EQUIPMENT GENERAL GOVERNMENT: Administration $ 4,711,681 $ 3,782,240 $ $ 929,441 Code enforcement 408,961 408,961 Municipal court 213,629 170,000 43,629 Maintenance 316,458 215,164 101,294 Total general government 5,650,729 4,167,404 1,483,325 PUBLIC SAFETY: Fire and rescue 3,044,491 1,112,034 1,932,457 Police 3,170,219 1,458,455 1,711,764 Total public safety 6,214,710 2,570,489 3,644,221 PUBLIC WORKS - Streets 54,069,357 121,548 52,490,706 1,457,103 PARKS AND RECREATION - Parks 12,287,617 11,713,984 573,633 TOTAL GENERAL FIXED ASSETS ALLOCATED TO FUNCTIONS 78,222,413 $ 18,573,425 $ 52,490,706 $ 7,158,282 CONSTRUCTION IN PROGRESS 12,120,294 TOTAL GENERAL FIXED ASSETS $ 90,342,707 42 CITY OF COLLEYVILLE, TEXAS C-3 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY YEAR ENDED SEPTEMBER 30, 2002 GENERAL GENERAL FIXED FIXED ASSETS ASSETS FUNCTION AND ACTIVITY 10-1-01 ADDITIONS DELETIONS TRANSFERS 9-30-02 GENERAL GOVERNMENT: Administration $ 4,687,379 $ 24,302 $ $ $ 4,711,681 Code enforcement 381,895 27,066 408,961 Municipal court 213,029 600 213,629 Maintenance 316,458 316,458 Total general govemment 5,598,761 51,968 5,650,729 PUBLIC SAFETY: Fire and rescue 3,032,731 79,716 67,956 3,044,491 Police 3,071,726 137,293 38,800 3,170,219 Totai public safety 6,104,457 217,009 106,756 6,214,710 PUBLIC WORKS - Streets 44,941,802 4,359,514 4,768,041 54,069,357 PARKS AND RECREATION - Parks 11,559,995 14,334 12,935 726,223 12,287,617 TOTAL GENERAL FIXED ASSETS ALLOCATED TO FUNCTIONS 68,205,015 4,642,825 119,691 5,494,264 78,222,413 CONSTRUCTION IN PROGRESS 9,524,326 8,090,232 (5,494,264) 12,120,294 TOTAL GENERAL FIXED ASSETS $ 77,729,341 $ 12,733,057 $ 119,691 $ $ 90,342,707 43 DEBT SERVICE REQUIREMENTS 44 CITY OF COLLEYVILLE, TEXAS 0-1 SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY - GENERAL LONG-TERM DEBT- GENERAL OBLIGATION BONDS AND CERTIFICATES OF OBLIGATION SEPTEMBER 3D, 2002 FISCAL YEAR PRINCIPAL INTEREST TOTAL 2003 $ 895,000 $ 527,858 $ 1,422,858 2004 935,000 483,228 1,418,228 2005 970,000 441,078 1,411,078 2006 1,375,000 521,440 1,896,440 2007 1,445,000 461,665 1,906,665 2008 1,520,000 399,486 1,919,486 2009 1,585,000 333,773 1,918,773 2010 1,350,000 270,591 1,620,591 2011 1,420,000 209,791 1,629,791 2012 1,230,000 150,270 1,380,270 2013 890,000 101,520 991,520 2014 605,000 66,780 671,780 2015 185,000 47,510 232,510 2016 175,000 38,522 213,522 2017 180,000 30,269 210,269 2018 185,000 21,768 206,768 2019 200,000 12,720 212,720 2020 170,000 3,995 173,995 $ 15,315,000 $ 4,122,264 $ 19,437,264 45 CITY OF COLLEYVILLE, TEXAS 0-2 SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY _ GENERAL LONG-TERM DEBT -DRAINAGE REVENUE BONDS SEPTEMBER 30, 2002 FISCAL YEAR PRINCIPAL INTEREST TOTAL 2003 $ 140,000 $ 268,193 $ 408,193 2004 140,000 262,418 402,418 2005 145,000 261,361 406,361 2006 150,000 260,093 410,093 2007 160,000 263,705 423,705 2008 165,000 262,205 427,205 2009 170,000 260,420 430,420 2010 175,000 258,260 433,260 2011 185,000 260,608 445,608 2012 195,000 262,340 457,340 2013 200,000 258,550 458,550 2014 210,000 259,220 469,220 2015 220,000 259,220 479,220 2016 100,000 131,650 231,650 2017 105,000 131,625 236,625 2018 110,000 131,250 241 ,250 2019 115,000 130,625 245,625 2020 125,000 134,625 259,625 2021 130,000 133,250 263,250 $ 2,940,000 $ 4,189,618 $ 7,129,618 46 CITY OF COLLEYVILLE, TEXAS 0-3 SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY - GENERAL LONG-TERM DEBT- SALES TAX REVENUE BONDS SEPTEMBER 30, 2002 FISCAL YEAR PRINCIPAL INTEREST TOTAL 2003 $ 535,000 $ 709,506 $ 1,244,506 2004 560,000 662,296 1,242,296 2005 590,000 652,090 1,242,090 2006 505,000 622,408 1,127,408 2007 525,000 596,818 1,121,818 2008 550,000 571,723 1,121,723 2009 575,000 546,185 1,121,185 2010 605,000 518,465 1,123,465 2011 635,000 488,934 1,123,934 2012 670,000 457,496 1,127,496 2013 705,000 423,949 1,128,949 2014 740,000 388,263 1,128,263 2015 785,000 350,507 1,135,507 2016 820,000 310,994 1,130,994 2017 860,000 267,991 1,127,991 2018 915,000 223,002 1,138,002 2019 965,000 175,115 1,140,115 2020 460,000 137,488 597,488 2021 490,000 111,059 601,059 2022 520,000 83,078 603,078 2023 550,000 52,030 602,030 2024 585,000 17,696 602,696 2025 116,565 488,435 605,000 2026 109,082 495,919 605,001 2027 102,076 502,924 605,000 $ 14,472,722 $ 9,874,371 $ 24,347,093 47 CITY OF COLLEYVILLE, TEXAS 0-4 SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY - ENTERPRISE FUND- REVENUE BONDS AND CERTIFICATES OF OBLIGATION SEPTEMBER 30, 2002 FISCAL YEAR PRINCIPAL INTEREST TOTAL 2003 $ 622,000 $ 464,293 $ 1,086,293 2004 652,000 432,733 1.084,733 2005 688,000 400,546 1,088,546 2006 718,000 367,043 1,085,043 2007 754,000 331,281 1,085,281 2008 624,000 297,334 921 ,334 2009 575,000 267,705 842,705 2010 610,000 238,179 848,179 2011 635,000 206,983 841,983 2012 675,000 173,832 848,832 2013 710,000 138,480 848,480 2014 740,000 101,060 841,060 2015 480,000 67,429 547,429 2016 390,000 41,990 431,990 2017 410,000 21,138 431,138 2018 220,000 5,225 225,225 $ 9,503,000 $ 3,555,251 $ 13,058,251 48 CITY OF COLLEYVILLE, TEXAS 0.5 SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY- CAPITAL LEASE OBLIGATIONS SEPTEMBER 30, 2002 FISCAL YEAR PRINCIPAL INTEREST TOTAL 2,600 1,327 $ 32,222 32,221 29,622 30,894 $ 2003 2004 $ $ 60,516 $ 3,927 $ 64,443 49 CITY OF COLLEYVILLE, TEXAS 0-6 SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY- NOTES PAYABLE SEPTEMBER 30, 2002 FISCAL YEAR PRINCIPAL INTEREST TOTAL 2003 2004 $ 140,750 115,750 $ 11,460 5,030 $ 152,210 120,780 $ 256,500 $ 16,490 $ 272,990 50 This page intentionally left blank CITY OF COLLEYVILLE, TEXAS 0-7 SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY- TIF TAX NOTES SEPTEMBER 30, 2002 FISCAL YEAR PRINCIPAL INTEREST TOTAL 2003 $ $ 487,428 $ 487,428 2004 695,000 1,172,208 1,867,208 2005 730,000 1,171,824 1,901,824 2006 1,120,000 1,511,436 2,631,436 2007 1,175,000 1,510,621 2,685,621 2008 410,000 707,660 1,117,660 2009 430,000 703,666 1,133,666 2010 450,000 704,209 1,154,209 2011 470,000 704,179 1,174,179 2012 490,000 697,718 1,187,718 2013 515,000 699,975 1,214,975 2014 540,000 695,942 1,235,942 2015 565,000 695,256 1,260,256 2016 595,000 692,728 1 ,287,728 2017 620.000 688,023 1,308,023 2018 650,000 686,360 1,336,360 2019 685,000 683,038 1,368,038 2020 720,000 677,970 1,397,970 $ 10,860,000 $ 14,890,241 $ 25,750,241 51 CITY OF COLLEYVILLE, TEXAS SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY. SUMMARY SEPTEMBER 30, 2002 GENERAL lONG TERM DEBT - GENERAL OBLIGATION GENERAL LONG BONDS AND GENERAL LONG TERM DEBT - CERTIFICATES TERM DEBT - SALES TAX FISCAL YEAR OF OBLIGATION REVENUE BONDS REVENUE BONDS 2003 $ 1,422,858 $ 408,193 $ 1,244,506 2004 1,418,228 402,418 1,242,296 2005 1,411,078 406,361 1,242,090 2006 1,896,440 410,093 1,127,408 2007 1,906,665 423,705 1,121,818 2008 1,919,486 427,205 1,121,723 2009 1,918,773 430,420 1,121,185 2010 1,620,591 433,260 1,123,465 2011 1,629,791 445,608 1,123,934 2012 1,380,270 457,340 1,127,496 2013 991,520 458,550 1,128,949 2014 671,780 469,220 1,128,263 2015 232,510 479,220 1,135,507 2016 213,522 231,650 1,130,994 2017 210,269 236,625 1,127,991 2018 206,768 241,250 1,138,002 2019 212,720 245,625 1,140,115 2020 173,995 259,625 597,488 2021 263,250 601,059 2022 603,078 2023 602,030 2024 602,696 2025 605,000 2026 605,001 2027 605,000 $ 19,437,264 $ 7,129,618 $ 24,347,093 52 0-8 ENTERPRISE GENERAL LONG FUND - REVENUE TERM DEBT - BONDS AND CAPITAL TIF SALES TAX CERTIFICATES LEASE NOTES TAX REVENUE BONDS OF OBLIGATION OBLIGATIONS PAYABLE NOTES TOTAL $ 1,244,506 $ 1,086,293 $ 32,222 $ 152,210 $ 487,428 $ 4,833,710 1,242,296 1,084,733 32,221 120,780 1 ,867,208 6,167,884 1,242,090 1,088,546 1,901,824 6,049,899 1,127,408 1,085,043 2,631,436 7,150,420 1,121,818 1,085,281 2,685,621 7,223,090 1,121,723 921,334 1,117,660 5,507,408 1,121,185 842,705 1,133,666 5,446,749 1,123,465 848,179 1,154,209 5,179,704 1,123,934 841 ,983 1,174,179 5,215,495 1,127,496 848,832 1,187,718 5,001,656 1,128,949 848,480 1,214,975 4,642,474 1,128,263 841,060 1 ,235,942 4,346,265 1,135,507 547,429 1,260,256 3,654,922 1,130,994 431,990 1 ,287,728 3,295,884 1,127,991 431,138 1,308,023 3,314,046 1,138,002 225,225 1 ,336,360 3,147,605 1,140,115 1,368,038 2,966,498 597,488 1 ,397,970 2,429,078 601,059 864,309 603,078 603,078 602,030 602,030 602,696 602,696 605,000 605,000 605,001 605,001 605,000 605,000 $ 24,347,093 $ 13,058,251 $ 64,443 $ 272,990 $ 25,750,241 $ 90,059,900 53 This page intentionally left blank STATISTICAL SECTION 54 CITY OF COLLEYVILLE, TEXAS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS (Unaudited) Streets Fiscal General Code Fire and Parks and and Year Government Enforcement Rescue Police Recreation Drainaoe 1993 $ 922,888 $ 728,358 $ 641,754 $1,419,475 $ 377,905 $ 839,279 1994 868.583 754,853 1,023,923 1,909,486 431,081 1,038,865 1995 948,638 772,827 939,541 1.523,665 491,266 988.442 1996 1,354.952 788,195 1,380,287 1,639,642 597,757 1,059,242 1997 1,219.562 813,136 1,283,509 1,805,924 585,805 1,522,489 1998 1,674,400 928,845 1,446,339 1,924,456 756,356 1,643,967 1999 1,687,141 1,071,373 2,153,203 3,438,183 1,002,355 1,383,782 2000 2,032,011 1,229,405 2,307.966 2,597,915 1,045,624 1,618,551 2001 1,936,372 1.335,758 2,852.223 4,122,612 1,625,850 1,408,092 2002 1,925,674 1,226,877 2,783,968 6,711,870 1.665,598 1,239,090 Note: Includes general. special revenue, and debt service funds. 55 Municipal Capital Debt Transfers to Court Maintenance Outlavs Service Other Funds Totals $ 61,737 $ 85,846 $ 65,919 $ 581,240 $ 5,000 $ 5,929,401 60,497 89,680 113,006 648,696 7,138,670 63,635 89,751 272,618 1,085,980 30,128 7,206,491 84,018 91,831 441,121 1,545,305 8,982,350 81,924 103,521 224,595 2,003,854 9,644,319 90,060 121,628 539,735 2,070,234 11,196,020 102,204 138,697 202,154 2,269,543 13,448,635 105,375 132,520 20,171 3,075,557 14,165,095 118,219 125,049 208,396 3,189,490 16,922,061 150,056 182,814 603,955 3,210,409 19,700,311 56 Table 1 CITY OF COLLEYVILLE, TEXAS GENERAL GOVERNMENTAL REVENUES BY SOURCE LAST TEN FISCAL YEARS (Unaudited) Licenses Fiscal Developer and Drainage Year Taxes Contributions Penmits Fees 1993 $ 4,709,751 $ $ 438,011 $ 1994 5,464,287 417,473 290,434 1995 6,064,309 482 401,480 320,677 1996 6,880,942 8,447 417,941 339,179 1997 7,808,425 1,173 489,185 351,637 1998 8,689,822 14,745 596,502 368,666 1999 9,363,995 45,094 852,489 378,007 2000 10,612,927 1,161,363 393,645 2001 11,170,915 326,637 855,255 593,830 2002 12,296,418 334,502 913,426 615,099 Note: Includes general, special revenue, and debt service funds. 57 Table 2 Engineering Fines and and Interest Forfeitures Inspection Income Donations Miscellaneous Total $ 183,719 $ 99,472 $ 79,598 $ 130,467 $ 109,781 $ 5,750,799 250,050 151,627 118,099 201,648 128,857 7,022,475 279,321 61,555 281,731 212,038 201,743 7,823,336 371,183 89,756 378,426 194,554 212,046 8,892,474 341,211 87,338 403, n3 141,250 285,732 9,909,724 406,292 252,649 460,713 360,488 257,411 11,407,288 472,120 307,483 502,075 274,928 304,375 12,500,566 574,769 533,665 882,718 173,934 560,068 14,893,089 557,439 311,991 900,734 164,607 375,878 15,2n,286 534,590 464,515 436,596 206,358 554,564 16,356,068 58 CITY OF COLLEYVILLE, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (Unaudited) Current Percent Delinquent Fiscal Total Tax of Levy Tax Year Tax Lew Collections ( 1 ) Collected Collections ( 1 ) 1993 $ 3,048,559 $ 3,064,310 100.52% $ 61,561 1994 3,501,386 3,476,646 99.29 33,978 1995 3,914,475 3,988,795 101.90 40,856 1996 4,521,281 4,536,704 100.34 44,926 1997 4.847,786 4,859,910 100.25 68,438 1998 5,179,670 5,146,115 99.35 45,216 1999 5,534,817 5,479,798 99.00 98,586 2000 6,008,914 5,994,435 99.75 65,745 2001 6,664,042 6,614,200 99.25 74,961 2002 7,399,976 7,344,042 99.24 81,733 (1) Includes related penalties and interest. Source: Tarrant County Appraisal District; Grapevine-Colleyville Tax Assessor-Collector. 59 Table 3 Percent of Percent of Total Tax Outstanding Delinquent Total Tax Collections Delinquent Taxes to Collections to Tax Lew Taxes Tax Lew $ 3.125,871 102.54% $ 81,986 2.69% 3,510.624 100.26 87,698 2.50 4,029,651 102.94 93,461 2.39 4,581,630 101.33 88,996 1.97 4.928,348 101.66 100,964 2.08 5,191,331 100.23 97,842 1.89 5.578,384 100.79 111,044 2.00 6,060,180 100.85 127,878 2.13 6.689,161 100.13 143,615 2.16 7,425,775 100.34 204,837 2.77 60 This page intentionally left blank Table 4 CITY OF COLLEYVILLE, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (Unaudited) Fiscal Real Property Personal Property Year Assessed Value (1) Assessed Value (1) Assessed Value (1) 1993 $1,009,189,363 $ 41,675,541 $1,050,864,904 1994 1,082,012,034 47,467,394 1,129,479,428 1995 1,187,856,360 50,131,950 1,237,988,310 1996 1,283,285,015 56,748,974 1,340,033,989 1997 1,378,523,815 62,251,717 1,440,775,532 1998 1,426,690,278 64,255,538 1,490,945,816 1999 1,516,190,807 65,897,793 1,582,088,600 2000 1,654,879,062 74,802,432 1,729,681,494 2001 1,833,222,942 78,663,705 1,911,886,647 2002 2,043,344,918 80,447,537 2,123,792,455 (1) Ratio of total assessed value to total estimated actual value equals 100%. Source: Grapevine-Colleyville Tax Assessor-Collector and Tarrant County Appraisal District 61 CITY OF COLLEYVILLE, TEXAS PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (per $1 00 of assessed value) LAST TEN FISCAL YEARS (Unaudited) Grapevine- Birdville Carroll Colleyville Fiscal City of Independent Independent Independent Year Collevville School District School District School District 1993 $ .2901 $ 1.52199 $ 1 .6295 $ 1.3900 1994 .3100 1 .48990 1.6295 1.4191 1995 .3263 1.51150 1.6295 1.4791 1996 .3474 1.50150 1.6295 1.5350 1997 .3474 1 .50150 1.7400 1.5378 1998 .3474 1.50050 1.7400 1.5378 1999 .3474 1.53850 1.7400 1.5378 2000 .3474 1.53250 1.7900 1.5523 2001 .3474 1.56980 1.8850 1.5823 2002 .3474 1.56980 1.9350 1.61679 Source: Information fumished by various assessors. 62 Table 5 Hurst Euless-Bedford Tarrant County Independent Tarrant Tarrant County Junior School District County Hosoital District Colleae District $ 1.5050 $ .271900 $ .229100 $ .043900 1.5150 .271880 .242100 .046710 1.5350 .271870 .244640 .056510 1.5345 .266600 .239800 .055500 1.6169 .264836 .234070 .057720 1.6063 .264836 .234070 .057690 1.6063 .264836 .234070 .106410 1.6318 .264836 .234070 .106410 1.6775 .274785 .234070 .106410 1.6530 .274785 .234070 .106410 63 CITY OF COLLEYVILLE, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS (Unaudited) Gross General Fiscal Estimated Assessed Obligation Year PODulation Value Bonded Debt 1993 15,300 $ 1,050,864,904 $ 8,535,000 1994 16,000 1,129.479,428 11,300,000 1995 16,550 1,199,654,988 13,575,000 1996 16,750 1,301.462,527 15,400,000 1997 17,400 1,395.447,797 14,840,000 1998 18,100 1.490,945,816 14,255,000 1999 18,700 1,582,088,600 14,150,000 2000 19,200 1,729,681.494 13,490,000 2001 19,800 1,911,886,647 12,975,000 2002 20,300 2,123,792.455 15,315,000 Source: Various departments within the City and Grapevine-Colleyville Tax Assessor-Collector and Tarrant County Appraisal District. 64 Table 6 Percent of Net Net Less Debt Net Bonded Debt to Bonded Debt Service Funds Bonded Debt Assessed Value Per Caotta $ 269,419 $ 8,265,581 .79% 540.23 388,003 1 0,911 ,997 .97 682.00 464,366 13,110,634 1.09 792.18 548,756 14,851,244 1.14 886.64 540,849 14,299,151 1.03 821.79 614,437 13,640,563 .91 753.62 676,097 13,473,903 .85 720.53 756,106 12,733,894 .74 663.22 863,320 12,111,680 .63 611.70 962,636 14,352,364 .68 707.01 65 CITY OF COLLEYVILLE, TEXAS Table 7 COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2002 (Unaud~ed) Article XI, Section 5 of the State of Texas Constitution states in part: " . . . but no tax for any purpose shall ever be lawful for anyone year, which shall exceed two and one-half percent of the taxable property of such city." Articie X, Section 3 of the Charter of Colleyville, Texas states: "The maximum tax rate shall not exceed $1.50 on the one hundred dollars ($100) valuation of taxable property w~h the City." The tax rate at October 1, 2001 is $.3474 per $100 of assessed valuation at 100% of market value. The City operates under a Home Rule Charter, which adopts the constitutional provision. The tax rate is 23% of the legallim~. 66 CITY OF COLLEYVlLLE, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS (Unaudited) Table 8 Ratio of Debt Service Total General to General Fiscal Interest Total Debt Government Government Year Princioal and Fees Service Exoenditures (1) Exoenditures 1993 $ 97,917 $ 516,921 $ 614,838 $ 5,929,401 10.34 1994 187,917 743,924 931,841 7,138,670 13.05 1995 245,000 734,770 979,770 7,206,491 13.60 1996 380,000 832,655 1,212,655 8,982,350 13.50 1997 560,000 905,592 1,465,592 9,644,319 15.20 1998 585,000 821,790 1,406,790 11,196,020 12.57 1999 605,000 783,494 1 ,388,494 13,448,635 10.29 2000 660,000 776,100 1 ,436,100 14,165,095 10.14 2001 700,000 477,539 1,177,539 16,922,061 6.96 2002 660,000 768,461 1,428,461 19,700,311 7.25 (1) Includes General, Special Revenue and Debt Service Funds. 67 This page intentionally left blank CITY OF COLLEYVILLE, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING DEBT SEPTEMBER 30, 2002 (Unaudited) Table 9 Debt Percent Overlapping Jurisdiction Outstandina Overlaooina Debt City of Colleyville $ 12,700,000 (1) 100.00% $ 12,700,000 Birdville Independent School District 161,256,969 (1) 0.07 112,880 Carroll Independent School District 172,449,083 (1) 0.43 741,531 Grapevine-Colleyville Independent School District 250,415,813 (1) 22.94 57,445,388 Hurst-Euless-Bedford Independent School District 240,389,649 (1) 1.30 3,125,065 Keller Independent School District 401,638,479 (1) 0.00 0.00 Tarrant County 163,415,000 (1) 3.01 4,918,792 Tarrant County Hospital District 93,665,000 (1) 3.01 110,317 Tarrant County Junior College District 80.900.000 (1) 3.01 2.435.090 Total Direct and Overlapping Debt $1.486.829993 $ 81 589062 Estimated Population as of January 1, 2002 19.300 (2) Per Capita Overlapping G.O. Tax Debt $ 4 039 (1) Source: Texas Municipal Reports. (2) Source: North Central Texas Council of Governments Research and Infonmation Services. 68 CITY OF COLLEYV1LLE, TEXAS REVENUE BOND AND CERTIFICATES OF OBUGA TION COVERAGE LAST TEN FISCAL YEARS (Unaudited) Net Revenue Fiscal Gross Operating Available for Year Revenue (1) Exoenses (2) Debt Service 1993 $ 4,787,861 $ 4,080,683 $ 707,178 1994 5,065,153 4,031,526 1,033,627 1995 5,369,721 3,827,749 1,541,972 1996 6,754,594 4,828,183 2,126,411 1997 6,759,061 3,757,793 3,001,268 1998 7.775,729 4,366,860 3,408,869 1999 8,321,893 4,196,771 4,125,122 2000 9,540,064 5,698,694 3,841,370 2001 8,477,716 5,793.366 2,684,350 2002 8,407,033 5,909,848 2,497,185 (1) Includes interest income and other income, exclusive of capital contributions. (2) Excludes depreciation and amortization. 69 Table 10 Debt Service Reauirements Princioal Interest Total Coveraae $ 204.000 $ 298,525 $ 502,525 1.41 214,000 291,929 505.929 2.04 309,000 374,789 683,789 2.26 280,000 398,420 678,420 3.13 420,000 471,594 891,594 3.37 410,000 486,163 896.163 3.80 510,000 576,767 1,086,767 3.79 541,000 556,761 1,097,761 3.49 566,000 515,003 1,081,003 2.48 597,000 485,984 1,082,984 2.30 70 CITY OF COLLEYVILLE, TEXAS Table 11 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (Unaudited) Fiscal Year Population 1993 15,300 1994 16,000 1995 16,550 1996 16,750 1997 17,400 1998 18,100 1999 18,700 2000 19,200 2001 19,800 2002 20,300 Source: North Central Texas Council of Govemments. 71 CITY OF COLLEYVILLE, TEXAS PROPERTY VALUE, CONSTRUCTION LAST TEN FISCAL YEARS (Unaudited) Table 12 Commercial Residential Fiscal Property Construction (2) Construction (2) Year Value (1) Units Value Units Value 1993 $ 1,050,864,904 9 $ 6,000,738 259 $ 54,390,000 1994 1,129,479,428 34 9,502,000 235 58,750,000 1995 1,237,988,310 11 3,625,000 169 42,250,000 1996 1,340,033,989 17 6,309,200 224 56,000,000 1997 1,440,775,532 17 5,328,000 209 50,337,000 1998 1,490,945,816 46 6,430,727 220 56,650,000 1999 1,582,088,600 20 7,946,222 194 50,806,000 2000 1,729,681,494 11 5,470,600 246 64,791,553 2001 1,911,886,647 6 6,449,762 183 55,086,037 2002 2,123,792,455 14 33,895,087 132 50,173,140 (1) Tarrant County Appraisal District. (2) City records. 72 CITY OF COLLEYVILLE, TEXAS PRINCIPAL TAXPAYERS SEPTEMBER 30. 2002 (Unaudited) Albertsons Inc Texas Utilities Electric Co. Colleyville Plaza Paul & Sheila Johnson Patsy Smith Greenway Glade Partners LP Colleyville Development Company Goodacre L TD Partnership Pulte Home Corp of Texas Southwestern Bell Total 73 Table 13 2002 Assessed Valuation Percentage of Total Assessed Valuation $17,165,553 15,396,923 6,675,000 4,750,000 4,349,059 4,208,340 3,995,330 3,816,117 3,526,240 3,350.980 .81% .72% .31% .22% .20% .20% .19% .18% .17% .16% $67 233 542 3 160/0 CITY OF COLLEYVILLE, TEXAS MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 2002 (Unaudited) Table 14 Date of Incorporation January 10, 1956 Date of City Charter Adoption January 15, 1977 Form of Government Council - Manager Area - square miles 13 Municipal water system: Number of customers 7,643 Miles of streets 148 Annual gallons of water pumped in millions 1,584 Stored capacity in millions 4.9 Miles of sanitary sewers 153 Miles of water mains 188 Number of fire hydrants 890 Building permits: Permits issued 146 Number of streetlights 720 Value in miliions $84,068 Fire protection: City employees: Number of stations 3 Full time 159 Number of firefighters 30 Part time 5 Police protection: Registered voters 15,724 Number of employees 40 Number of uniformed officers 30 Votes in last council election 3,050 Recreation: Population (City's estimate) 20,300 Parks - number of acres 185 Number of playgrounds 5 74