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Home My WebLink About1976 09 30 Audited Financial Report - City of Friendswood AUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION CITY OF FRIENDSWOOD, TEXAS FRIENDSWOOD, TEXAS September 30, 1976 I r LAIRSON, YOUNG 6 FITCH 11 II CONTENTS Page II Audited Financial Statements IIAccountants' Report 4 General Fund I Balance Sheet 5 11 Statement of Changes in Fund Balance 6 "a Statement of Revenues - Budgeted and Actual 7 Statement of Expenditures - Budgeted and Actual 8 IIStatement of Expenditures - Budgeted and Actual - By Object 9 Debt Service Fund 11 Balance Sheet 12 IStatement of Revenues, Expenditures and Fund Balance 13 Capital Projects Fund I/ Balance Sheet 14 II Water and Sewer Funds Balance Sheet - City Water and Sewer Fund 15 I Statement of Changes in Retained Earnings - City Water and Sewer Fund • 16 I Balance Sheet - Annexed Water District Fund 17 1! Statement of Changes in Retained Earnings - Annexed Water District Fund 18 1! Statement of Revenue and Expense - Budgeted and Actual 19 Sales Tax Fund Balance Sheet 21 11 Statement of Revenues, Expenditures and Fund Balance 22 Revenue Sharing Fund Balance Sheet 23 1! Statement of Revenues, Expenditures and Fund Balance 24 11 -2- LAIRSON, YOUNG 6 FITCH 11 1! CONTENTS - 2 1! Page General Fixed Assets Group of Accounts 11 Statement of General Fixed Assets 25 IIGeneral Long-Term Debt Group of Accounts Statement of General Long-Term Debt 26 11 Description of Funds and Significant Accounting Policies 27 11 Notes to Financial Statements 29 Other Financial Information Accountants' Report on Other Financial Information 31 11 Organization Data 32 Balance Sheets - All Funds 33 11 Statement of Revenues and Expenditures - All Funds 37 11 Statement of Changes in Contributions and Fund Balances - All Funds 39 Statement of Cash Receipts and Disbursements - All Funds 41 11 Combined Schedule of Long-Term Debt 43 11 Long-Term Debt Summary - By Maturity Date 46 Long-Term Debt - General Obligation Bonds - By Maturity Date 47 11 Long-Term Debt - Revenue Bonds - By Maturity Date 48 11 Tax Levies and Tax Collections 49 A Audited Financial Statements - Revenue Sharing Fund 1! Accountants' Report 52 1! Statement of Changes in Available Funds 53 Statement of Obligations Incurred 54 11 Summary of Data Submitted to Bureau of the Census 55 11 Accountants' Report on Compliance 56 ii II 11 -3- LAIRSON, YOUNG(9 FITCH MIRSON, YOUNG 8 FITCH CERTIFIED PUBLIC ACCOUNTANTS MEMBERS 475 CAPITAL NATIONAL BANK BLDG3 . AMERICAN INSTITUTE OF HOUSTON,TEXAS 77002 CERTIFIED PUBLIC ACCOUNTANTS 713-227-6364 I 11 Honorable Mayor and City Councilmen 11 City of Friendswood, Texas 11 We have examined the financial statements of the various funds of the City of Friendswood, Texas for the year ended September 30, 1976. Our examinations were made in accordance with generally accepted auditing standards, and 11 accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. We previously made similar examinations of the financial statelents for the preceding year. 11 In our opinion, the financial statements present fairly the financial positions, revenues and expenditures, results of operations, changes in financial position., and changes in fund balances of the respective funds of the City of Friendswood, 41 Texas at September 30, 1976, and for the year then ended, in conformity with 11 generally accepted accounting principles applied on a basis consistent with that of the preceding year. 11 440;5 yalii,A; ;it .. ..1,//44—.0 11 11 11 Houston, Texas November 26, 1976 11 11 11 11 I -4- 11 al GENERAL FUND Ai BALANCE SHEET 4 CITY OF FRIENDSWOOD, TEXAS 11 September 30, 1976 1! ASSETS 7! Cash - unrestricted $ 21,779 Cash - restricted (time deposit) 4,032 41 25,811 Delinquent taxes receivable $35,234 Less allowance for uncollected delinquent taxes 35,234 - Accounts receivable 2,342 Due from other funds 70,951 Prepaid expenses 4,620 $103,724 7! LIABILITIES AND FUND BALANCE 11 Accounts payable $ 59,546 Accrued expenses 1,690 11 Fund balance 42,488 1! $103,724 1 11 1! 91 it See notes to financial statements. 4.! 1! -5- LA/RSON, YOUNG 6 FITCH al GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE CITY OF FRIENDSWOOD, TEXAS 4] Year ended September 30, 1976 41 43 Fund balance at October 1, 1975 $ 27,919 Add excess of expenditures over revenues Revenues 1,016,280 Expenditures 951,686 64,594 41 92,513 Less interfund cash transfers - net 50,025 FUND BALANCE AT SEPTEMBER 30, 1976 $ 42,488 I A 11 I 44! 411 41 See notes to financial statements. 4! 11 -6- LA/RSON, YOUNG 6 FITCH 11 !I GENERAL FUND STATEMENT OF REVENUES - BUDGETED AND ACTUAL CITY OF FRIENDSWOOD, TEXAS 11 Years ended September 30, 1976 and September 30, 1975 1 1976 Actual Over (Under) 1975 II Budget Actual Budget Actual A Operating revenue Taxes General property taxes $539,748 $ 602,844 $ 63,096 $490,595 Penalties and interest - 9,585 9,585 4,590 Industrial district taxes _ 151,404 151,404 - Mixed beverage taxes 1,652 1,652 778 539,748 765,485 225,737 495,963 !I Franchises, licenses and permits Franchises 37,000 50,514 13,514 38,432 1.1 Licenses and permits 24,000 36,200 12,200 25,158 61,000 86,714 25,714 63,590 Other income Sanitation income 102,000 112,021 10,021 88,148 Fines and forfeitures 13,000 14,514 1,514 12,784 !I Miscellaneous - 7,381 7,381 8,603 115,000 133,916 18,916 109,535 1.1 TOTAL OPERATING REVENUE 715,748 986,115 270,367 669,088 Non-operating income - - Federal and state grants 18,630 18,630 Interest on investments 4,000 11,535 7,535 5,928 4,000 30,165 26,165 5,928 719,748 1,016,280 296,532 675,016 Contributions from other funds 64,000 67,931 3,931 45,779 TOTAL REVENUES $783,748 $1,084,211 $300,463 $720,795 41 4 See notes to financial statements. 0 ii ill L IIRSON, TOUNC 8 FETCH Ail GENERAL FUND R. STATEMENT OF EXPENDITURES - BUDGETED AND ACTUAL 4 CITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1976 and September 30, 1975 1976 Actual II (Over) Under 1975 Budget Actual Budget Actual 11/ General Government Administration $141,341 $ 147,833 $ (6,492) $132,347 Engineering 14,992 13,597 1,395 8,340 Municipal Court 5 ,388 4,454 934 3,226 Planning and zoning 4,250 2,328 1,922 4,676 Total general government 165,971 168,212 (2,241) 148,589 Public Safety 7! Police 177,972 199,511 (21,539) 150,906 Fire 43,007 98,400 (55,393) 27,132 Total public safety 220,979 297,911 (76,932) 178,038 11 Public welfare Streets 199,074 225,439 (26,365) 191,660 11 Drainage 7,250 10,100 (2,850) 7,295 Sanitation 107,891 154,027 (46,136) 115,037 Health and welfare 6,777 6,353 424 5,769 11 Total public welfare 320,992 395,919 (74,927) 319,761 Community services 1! Library 37,916 41,027 (3,111) 39,044 Parks and recreation 32,000 37,997 (5,997) 21,894 Community counselling 4,700 10,506 (5,806) - 1! Civil defense 500 114 386 109 Total community services 75,116 89,644 (14,528) 61,047 11 783,058 951,686 (168,628) 707,435 A Contributions to other funds - 117,956 (117,956) - II TOTAL EXPENDITURES $783,058 $1,069,642 $(286,584) $707,435 11 Operating expenses $586,708 $ 737,912 $(151,204) $592,820 Capital outlay 196,350 213,774 (17,424) 114,615 Interfund transfer - 117,956 (117,956) - TOTAL EXPENDITURES $783,058 $1,069,642 $(286,584) $707,435 II See notes to financial statements. II -8- LAIRSON, YOUNG 8 FITCH I, 4 il GENERAL FUND 111 STATEMENT OF EXPENDITURES - BUDGETED AND ACTUAL - BY OBJECT 4 CITY OF FRIENDSWOOD, TEXAS IYears ended September 30, 1976 and September 30, 1975 71 1976 Actual (Over) Under 1975 1 Budget Actual Budget Actual General Government Administration Personal services $ 54,249 $ 57,946 $ (3,697) $ 39,561 Supplies 7,525 6,856 669 9,115 7! Contractual services 73,567 75,637 (2,070) 76,762 Capital outlay 6,000 7,394 (1,394) 6,909 141,341 147,833 (6,492) 132,347 71 Engineering Personal services 13,384 12,384 1,000 7,890 71 Supplies 450 568 (118) 340 Contractual services 958 280 678 110 Capital outlay 200 365 (165) - 1! 14,992 13,597 1,395 8,340 Municipal Court !I Personal services 450 955 (505) 366 Supplies 10 308 (298) 32 Contractual services 4,275 3,191 1,084 2,828 1! Capital outlay 653 - 653 - 5,388 4,454 934 3,226 11 Planning and Zoning Ai Personal services - 1,174 (1,174) 151 Supplies 400 127 273 62 11 Contractual services 3,700 704 2,996 1,705 Capital outlay 150 323 (173) - 4,250 2,328 1,922 1,918 1! TOTAL GENERAL GOVERNMENT 165,971 168,212 (2,241) 145,831 1! 1! II .. 1! -9- 11 LA/RSON, YOUNG R FITCH STATEMENT OF EXPENDITURES - BUDGETED AND ACTUAL - BY OBJECT - 2 1! 1976 Actual 11 (Over) Under 1975 Budget Actual Budget Actual 11 Public Safety Police Service 1! Personal services 141,755 155,898 (14,143) 122,436 Supplies 8,975 15,359 (6,384) 10,262 Contractual services 19,342 21,346 (2,004) 11,521 11 Capital outlay 7,900 6,908 992 6,687 177,972 199,511 (21,539) 150,906 Fire Service Personal services 3,000 1,714 1,286 1,876 Supplies 5,180 5,962 (782) 4,278 71 Contractual services 13,750 13,733 17 10,774 Capital outlay 21,077 76,991 (55,914) 10,204 43,007 98,400 (55,393) 27,132 11 TOTAL PUBLIC SAFETY 220,979 297,911 (76,932) 178,038 II Public Welfare Streets Personal services 51,183 51,057 126 55,377 Supplies 45,200 47,261 (2,061) 40,674 41 Contractual services 21,797 53,047 (31,250) 40,058 Capital outlay 102,300 74,074 28,226 55,551 220,480 225,439 (4,959) 191,660 Drainage !I Supplies 7,250 71 7,179 500 Contractual services 9,833 (9,833) 6,299 Capital outlay 9,000 196 8,804 496 11 16,250 10,100 6,150 7,295 A Sanitation Personal services 58,206 78,425 (20,219) 56,866 Supplies 15,340 14,856 484 11,705 Contractual services 18,145 40,102 (21,957) 21,980 11 Capital outlay 16,200 20,644 (4,444) 24,486 107,891 154,027 (46,136) 115,037 7! Health and Welfare 6,777 6,353 424 5,769 TOTAL PUBLIC WELFARE 351,398 395,919 (44,521) 319,761 4 4 41 41 -]0- 4111 LAIRSON, YOUNG 8 FITCH Ai 11 41 4 STATEMENT OF EXPENDITURES - BUDGETED AND ACTUAL - BY OBJECT - 3 41 1976 Actual II (Over) A Under 1975 Budget Actual Budget Actual Community Services Library 1.! Personal services 20,441 21,574 (1,133) 19,069 Supplies 1,412 1,738 (326) 1,133 Contractual services 7,493 8,221 (728) 12,209 li Capital outlay 11,370 9,494 1,876 6,633 40,716 41,027 (311) 39,044 11 Parks and Recreation Personal services 2,500 3,816 (1,316) 6,838 Supplies - 535 (535) 212 Il Contractual services 8,500 16,694 (8,194) 11,829 411 Capital outlay 21,000 16,952 4,048 3,015 32,000 37,997 (5,997) 21,894 11 Community Counselling Personal services 3,000 6,925 (3,925) 250 11 Supplies 150 107 43 577 Contractual services 1,050 3,041 (1,991) 1,297 Capital outlay 500 433 67 634 /11 4,700 10,506 (5,806) 2,758 Civil Defense 500 114 386 109 ITOTAL COMMUNITY SERVICES 77,916 89,644 (11,728) 63,805 11 816,264 951,686 (135,422) 707,435 Contributions to other funds - 117,956 (117,956) - ITOTAL EXPENDITURES $816,264 $1,069,642 $(253,378) $707,435 11 II 1! See notes to financial statements. 11 II -11- LA/RSON, YOUNG the FITCH 11 1! DEBT SERVICE FUND 1! BALANCE SHEET CITY OF FRIENDSWOOD, TEXAS September 30, 1976 11 11 ASSETS Cash $117,183 11 Delinquent taxes receivable $12,282 Less allowance for uncollected delinquent taxes 12,28211 - Due from other funds 5,667 11 $122,850 FUND BALANCE 11 Fund balance $122,850 11 11 I I 1 11 See notes to financial statements. 11 11 -12- LAIRSON, YOUNG FITCH 41 DEBT SERVICE FUND 411 STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE 4 CITY OF FRIENDSWOOD, TEXAS Year ended September 30, 1976 I Revenues General property taxes $226,870 41 Water sales and services 114,309 Interest on investments 6,079 141 TOTAL REVENUES 347,258 Expenditures Redemption of bonds and certificates of obligation 99,000 Interest expense 316,287 TOTAL EXPENDITURES 415,287 (68,029) Inter-fund cash transfer 70,856 2,827 Reclassification of interest prepaid in prior year (27,384) 11 (24,557) Fund balance at October 1, 1975 147,407 FUND BALANCE AT SEPTEMBER 30, 1976 $122,850 11 1! 1! 1! 11 See notes to financial statements. 11 11 -13- LA/RSON, YOUNG 6' FITCH 1! CAPITAL PROJECTS FUND BALANCE SHEET CITY OF FRIENDSWOOD, TEXAS 11 September 30, 1976 !I ASSETS Cash (including certificate of deposit of $33,900) $33,901 1! RESERVE !I Reserve for authorized construction 1331901 1! 1! !I 1! !I 11 11 I 1 See notes to financial statements. 1! -14- LA/RSON, YOUNG d FITCH 411 ill CITY WATER AND SEWER FUND qe BALANCE SHEET CITY OF FRIENDSWOOD, TEXAS MI September 30, 1976 ASSETS II Current assets Cash (overdraft) $ (7,074) Accounts receivable $ 33,511 41 Less allowance for doubtful accounts 500 33,011 Prepaid expenses 1,092 27,029 4! Restricted assets - certificates of deposit Water and Sewer Construction Fund 50,484 Revenue Bond Reserve 56,986 107,470 Utility plant in service - on the basis of cost Land 38,229 11 Plant and equipment 2,786,628 Less allowance for depreciation 376,935 2,409,693 $2,582,421 LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS !I Current liabilities Accounts payable $ 53,276 11 Customer meter deposits 12,095 Due to other funds 71,664 Current portion of bonds payable 15,000 !! 152,035 Long-term liabilities 4A! Bonds payable - less portion due within one year 647,000 Reserves II Reserve for authorized construction 67,921 Reserve for revenue bonds 56,986 124,907 Contributions Federal government 511,839 Utility district 197,522 1 Land owners 11,768 721,129 f Retained earnings 937,350 4.! $2,582,421 11 See notes to financial statements. 1! -1 5- LA/RSON, YOUNG 6 FITCH 4 CITY WATER AND SEWER FUND mo STATEMENT OF CHANGES IN RETAINED EARNINGS 4 CITY OF FRIENDSWOOD, TEXAS 1 4 Year ended September 30, 1976 I 1111 Balance at October 1, 1975 $ 890,032 Net loss for year (202,500) RI 687,532 4 Add Capital outlays for plant and equipment 480,445 Retirement of revenue bonds 21,000 Transfer to bond reserve 6,000 507,445 1,1%4,977 Deduct Reserve for income earned on restricted funds 38,723 Reclassification of contribution from federal government 218,904 257,627 RETAINED EARNINGS AT SEPTEMBER 30, 1976 $ 937,350 11 A 4111 4 11 4 ql A 41/ !I 41 See notes to financial statements. ' 4 1! -16- 11 LAIRSON, YOUNG B FITCH 411 4 41 ANNEXED WATER DISTRICT FUND 4 411 BALANCE SHEET 4 CITY OF FRIENDSWOOD, TEXAS September 30, 1976 ASSETS Current assets Accounts receivable $ 16,038 Less allowance for doubtful accounts 500 411 15,538 Restricted assets Water and Sewer Construction Fund Cash - certificate of deposit 141,611 Utility plant in service - on the basis of cost Land 24,455 Plant and equipment $2,262,473 Less allowance for depreciation 207,187 2,055,286 $2,236,890 I LIABILITIES AND RETAINED EARNINGS Current liabilities Customer meter deposits $ 10,290 11 Due to other funds 4,954 Current portion of bonds payable 40,000 55,244 Long-term liabilities Bonds payable - less portion due within one year 2,270,000 Reserve for authorized construction 46,379 Retained-earnings deficit (134,733) $2,236,890 1! 1! I See notes to financial statements. 1! -17- 11 !ARSON, YOUNG FITCH 4 ANNEXED WATER DISTRICT FUND MR STATEMENT OF CHANGES IN RETAINED EARNINGS . CITY OF FRIENDSWOOD, TEXAS 411 Year ended September 30, 1976 11 41 Balance at October 1, 1975 $(196,177) 141 Net loss for year (48,569) (244,746) 411 Add A Inter-fund cash transfer 81,432 Retirement of revenue bonds 35,000 116,432 A (128,314) Deduct reserve for income earned on restricted funds 6,419 41 RETAINED-EARNINGS DEFICIT AT SEPTEMBER 30, 1976 $(134,733) I 1 4 I 4 I w 44 41 See notes to financial statements. 1! -18- lA/RSON, YOUNG 8 FITCH 11 liCITY WATER AND SEWER FUND AND ANNEXED WATER DISTRICT FUND 11 STATEMENT OF REVENUE AND EXPENSE - BUDGETED AND ACTUAL CITY OF FRIENDSWOOD, TEXAS 11 Years ended September 30, 1976 and September 30, 1975 11 1976 1! Actual Over (Under) 1975 11 Budget Actual Budget Actual Operating revenue 11 Water and sewer charges $198,633 $222,269 $23,636 $161,961 Taps and connections 22,000 44,241 22,241 28,561 Fees and penalties 5,000 9,365 4,365 6,202 11 WCID ##108 sewerage fee 37,800 43,639 5,839 33,501 Other 1,500 96 (1,404) 373 11 TOTAL OPERATING REVENUE 264,933 319,610 54,677 230,598 Operating expenses 11 Water department Personal services 46,519 47,114 595 Supplies 17,398 13,301 (4,097) 11 Contractual services 25,255 40,387 15,132 Bad debts - 2,191 2,191 89,172 102,993 13,821 IISewer department Personal services 69,778 70,671 893 11 Supplies 11,132 13,984 2,852 Contractual services 28,995 59,797 30,802 109,905 144,452 34,547 11 TOTAL OPERATING EXPENSES 199,077 247,445 48,368 172,086 1! 65,856 72,165 6,309 58,512 Contributions to other funds 16,000 6,000 (10,000) 6,000 11 OPERATING REVENUE BEFORE DEPRECIATION AND CAPITAL OUTLAY $ 49,856 66,165 $16,309 52,512 11 Non-operating income Interest on investments 15,551 32,409 11 REVENUE BEFORE DEPRECIATION AND CAPITAL OUTLAY 81,716 84,921 1! 11 LA/RSON, YOUNG 6 FITCH 4, 4 41 CITY WATER AND SEWER FUND AND ANNEXED WATER DISTRICT FUND STATEMENT OF REVENUE AND EXPENSE - BUDGETED AND ACTUAL - 2 1.1 1976 1975 '! Actual Actual Capital outlay - net of "R reimbursement grants and refunds of $248,153 - 1976 and $107,080 - 1975 232,292 120,026 41 Provision for depreciation 100,493 91,212 41 NET REVENUE (DEFICIT) $(251,069) $(126,317) City Water and Sewer Fund $(202,500) $(181,327) 41 Annexed Water District Fund (48,569) 55,010 41 NET REVENUE (DEFICIT) $(251,069) $(126,317) 41 4 411 I I 4 4111 See notes to financial statements. I I LA/RSON, YOUNG 6 FITCH I 71 SALES TAX FUND BALANCE SHEET ICITY OF FRIENDSWOOD, TEXAS 11 September 30, 1976 I. ASSETS 11 Cash $32,000 Sales taxes receivable 6,357 11 $38,357 11 FUND BALANCE Fund balance $38,357 11 $38,357 I 11 11 11 11 11 See notes to financial statements. 11 -21- idiliSOY, /WV; 6' /Vat SALES TAX FUND !I STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE CITY OF FRIENDSWOOD, TEXAS Year ended September 30, 1976 - Revenues Sales taxes $104,320 Interest on investments 1,967 11 TOTAL REVENUES 106,287 Interfund cash transfer 67,931 Fund balance at October 1, 1975 1 FUND BALANCE AT SEPTEMBER 30, 1976 $ 38,357 I I I I A See notes to financial statements. • -22- 11 IAIRSON, YOUNG di FITCH !I REVENUE SHARNG FUND • !I BALANCE SHEET CITY OF FRIENDSWOOD, TEXAS September 30, 1976 I ASSETS 11 Cash - certificate of deposit $ 8,387 11 Entitlement receivable 10,761 $19,148 11 FUND BALANCE Fund balance $19,148 I 1 I I 11 1 I 11 11 See notes to financial statements. 11 -23- 11 l i///LSON YO( tiG /%iC// 11 REVENUE SHARING FUND STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE CITY OF FRIENDSWOOD, TEXAS 11 Year ended September 30, 1976 11 1! Revenues Entitlements $35,666 Interest on investments 1,011 11 TOTAL REVENUES 36,677 !! Expenditures Capital outlay 24.250 11 TOTAL EXPENDITURES 24,250 12,427 11 Fund balance at October 1, 1975 6,721 FUND BALANCE AT SEPTEMBER 30, 1976 $19,148 11 11 1! 1! 11 1! 11 See notes to financial statements. 1! 11 -24- 11 LAIRSON, YOUNC FITCH 141 STATEMENT OF GENERAL FIXED ASSETS CITY OF FRIENDSWOOD, TEXAS September 30, 1976 1! GENERAL FIXED ASSETS Land $ 185,623 !I Buildings 420,887 Improvements other than buildings 1,272,230 Equipment 352,798 1! $2,231,538 1! INVESTMENTS IN GENERAL FIXED ASSETS BY SOURCE General obligation bonds $ 950,000 Revenues 711,176 111 Federal funds 348,821 11 Contributions 109,541 Certificates of obligation 52,000 1! State funds 50,000 11 County funds 10,000 $2,231,538 1! 11 11 11 See notes to financial statements. 11 11 -25- 11 LI/RSON, YOUNG Q FITCH I STATEMENT OF GENERAL LONG-TERM DEBT CITY OF FRIENDSWOOD, TEXAS September 30, 1976 11 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG-TERM DEBT 11 Amount available in debt service fund $ 117,183 Amount to be provided for principal . 1,492017 $1,610,000 !I GENERAL LONG-TERM DEBT PAYABLE Certificates of obligation $ 42,000 General obligation bonds 1,568,000 $1,610,000 11 11 11 1! 11 I See notes to financial statements. 11 -26- 11 LA/RSON, YOUNG $ F/TCH II !I DESCRIPTION OF FUNDS AND SIGNIFICANT ACCOUNTING POLICIES CITY OF FRIENDSWOOD, TEXAS 1 II September 30, 1976 11 GENERAL FUND !I The General Fund is used to account for all financial transactions which are not II accounted for in the accounts of another fund. The primary sources of revenue of the General Fund are property taxes, franchises, sanitation income and fines and forfeitures. Primary expenditures are for general government, public safety, IIpublic works, sanitation and other community services. The accounting records of the General Fund are primarily on the accrual method of 11 accounting. Delinquent taxes receivable assessed for General Fund purposes of $35,234 at September 30, 1976 have been fully reserved. DEBT SERVICE FUND !I The Debt Service Fund is used to account for the payment of interest and principal on all bonded debts of the City. The sources of revenue for debt service are primarily property taxes for general obligation bonds and water and sewer revenue for revenue bonds. The accounting records of the Debt Service Fund are primarily on the cash basis !I of accounting. Delinquent taxes receivable assessed for debt service of $12,282 at September 30, 1976 have been fully reserved. II CAPITAL PROJECTS FUND 11 The Capital Projects Fund is used to account for the receipt and expenditures of resources used for acquisition of designated fixed assets except those financed by the water and sewer fund. II CITY WATER AND SEWER FUND AND ANNEXED WATER DISTRICT FUND i These funds are used to account for operations of the Water and Sewer Department. The accounting records of the Fund are maintained on the. accrual basis. Provision 11 for depreciation of water and sewer system and equipment has been computed by the straight-line method. Customer ledgers and related records of billings for services are maintained by an outside data processing service bureau. II ' The issue and retirement of revenue bonds are recorded in the accounts of these funds. IISince the City's water and sewer system, including annexed water districts, is operated as one integrated system and the operations of the annexed water districts are required to be accounted for separately, the City allocates the operating 11 expenses of the system based on the ratio of the number of water and sewer taps per fund. 11 11 LA/RSON, YOUNG 8 FITCH 1111 41 DESCRIPTION OF FUNDS AND SIGNIFICANT ACCOUNTING POLICIES - 2 1 1141 SALES TAX FUND The Sales Tax Fund is used to account for revenue received from sales and use taxes. Expenditure of these revenues is restricted to one-half for street programs and one-half for parks and recreation programs. 4.1 REVENUE SHARING FUND The Revenue Sharing Fund is used to account for revenue received from the Federal government under State and Local Fiscal Assistance Act of 1972. Such funds may be used only for "priority expenditures" as defined in the Act. !I GENERAL FIXED ASSETS GROUP OF ACCOUNTS The General Fixed Assets Group of Accounts is used to account for the City's land, buildings, improvements and equipment which are not owned by the Water and Sewer Funds. Such assets are acquired by transfer from other funds and are recorded at cost. No depreciation is recorded on these assets. 11 GENERAL LONG-TERM DEBT 11 The General Long-Term Debt is used to record the City's liability for general obligation bonds due at varying dates through the year 2000. 11 !! 1! 11 1! 11 11 LAIRSON, YOUNG R FITCH I NOTES TO FINANCIAL STATEMENTS CITY OF FRIENDSWOOD, TEXAS September 30, 1976 1. ORGANIZATION The City of Friendswood operates under a "Home Rule Charter" which provides for a "Council-Manager" form of city government. 2. CERTIFICATES OF OBLIGATION AUTHORIZED The City Council authorized the issuance of $55,000 in Certificates of Obligation Series 1976, during the year ended September 30, 1976, maturing serially in the years 1977 thru 1981. The proceeds of the certificates are to be used for the acquisition of a fire truck. None of the certificates had been issued at September 30, 1976. 11 3. ACCOUNTING CHANGE In previous periods sales tax revenues were recorded when received. During the year ended September 30, 1976 the City adopted the accrual method of accounting for these revenues. The effect of the change upon revenues was as follows: Revenues Revenues Total Received Accrued Revenues Sales taxes $97,963 $6,357 $104,320 4. LITIGATION At September 30, 1976, the City was defendant in lawsuits including (1) a 1973 suit seeking compensation for damages in the amount of $123,000 resulting from damages caused by the overflow of Cowards Creek, (2) a 1971 suit seeking com- pensation for damages in the amount of $100,000 resulting from the construction and operation of a sewer plant, (3) as co-defendant in a 1975 suit seeking compensation for damages in the amount of $1,480,000 resulting from damages caused by the flooding of Clear Creek, and (4) a 1975 suit seeking compensation for damages in the amount of $18,783 resulting from an arrest, search and seizure of property. Determination of the estimated liability in these suits 11 is not determinable at this time; however, it is the opinion of City management and legal counsel for the City that the ultimate liability under such suits will not be significant. The City is also the defendant in a 1976 suit which claims the City is polluting Clear Creek. A temporary injunction against the City has been granted, and extensive modifications to the City's sewage treatment plants are being made by the City. -29- lA/RSON, YOUNG& FITCH • 3 I I I I OTHER FINANCIAL INFORMATION I I I I I I I -30 1/111801; WV; (5 PITCH I ACCOUNTANTS' kEPORT ON OTHER FINANCIAL INFORMATION • 1 1 1 City of Friendswood, Texas Friendswood, Texas The audited financial statements of the City and our report thereon are presented in the preceding section of this report. The financial information presented hereinafter, excepting the schedule of organization data, was derived from the accounting records tested by us as part of the auditing procedures of the afore- mentioned financial statements, and in our opinion it is fairly presented in all material respects in relation to the financial statements taken as a whole; however, it is not necessary for a fair presentation of the financial position or results of the operations of the City. The information shown in the schedule of organization data was prepared from information furnished to us by the City, but we did not make independent tests of the schedule as it does not involve information which enters into the financial statements. a'*(A/y12.1-t, yptil) Houston, Texas November 26 , 1976 I 1 I -31- 1 fl///S0N, )'O( tC 6 FITCl/ ORGANIZATION DATA CITY OF FRIENJSWOOD, TEXAS September 30, 1976 I Date of Charter October 16, 1971 Type of Gover.:ment Council-Manager Mayor Ralph L. Lowe Councilmen Benny Baker Richard L. Haken Paul E. Maar. William B. Patton Thomas F. Lay Edward O. Zeitler City Manager James C. Morgan Assistant City Manager Dale A. Cryer City Secretary Bobbie C. Henry Tax Assessor and Collector Alta Carbone City Water and Sewer Superintendent John Jermain City Engineer Thomas D. Heaney I I I I I I -32- l;///GSON, )O/U' i /77C// I BALANCE SHEETS - ALL FUNDS 11 CITY OF FRIENDSWOOD, TEXAS It September 30, 1976 Debt Total General Service All Funds Fund Fund ASSETS CURRENT ASSETS I! Cash (overdraft) including certificates of deposit and time deposits of $46,319 $ 210,208 $ 25 ,811 $117,183 Accounts receivable - less allowance for doubtful accounts of $1,000 68,009 2,342 Due from other funds 76,618 70,951 5,667 Prepaid expenses 5,712 4,620 TOTAL CURRENT ASSETS 360,547 103,724 122,850 RESTRICTED ASSETS Water and Sewer Construction Fund - cash including certificates of deposit of $197,973 192,095 Revenue Bond Reserve including I! certificates of deposit of $56,485 56,986 TOTAL RESTRICTED ASSETS 249,081 LAND 248,307 11 PLANT AND EQUIPMENT - cost 7,095,016 Less allowance for depreciation 584,122 6 ,510,894 I! AMOUNT AVAILABLE FOR DEBT SERVICE 117,183 AMOUNT TO BE PROVIDED FOR DEBT SERVICE 1,492,817 $8,978,829 $103,724 $122,850 C I I -33- IRRSON, WV; 6 RICH I I I Capital City Annexed Sales Revenue General General Projects Water and Water Dis- Tax Sharing Fixed Long-Term Fund Sewer Fund trict Fund Fund Fund Assets Du:,:: I $33,901 $ (7,074) $32,000 $ 8,387 33,011 $ 15,538 6,357 10,761 I 1,092 33,901 27,029 15,538 38,357 19,148 I 50,484 141,611 I 56 ,986 1 107,470 141,611 I38,229 24,455 $ 185,623 2,786,628 2,262,473 2,045 ,915 I 376,935 207,187 ___ 2 ,409,693 2,055,286 2,045,915 I $ 117,183 1,492,817 I $33,901 $2,582,421 $2,236 ,890 $38,357 $19 ,1.48 $2,231 ,538 $1,610,000 I I 1 I -34- Ii,Xii/ ON MY; 6 [7767/ I BALANCE SHEETS - ALL FINDS - 2 I CITY OF FRIENDSWOOD, TEXAS I September 30, 1976 Debt Total General Service All Funds Fund Fund11 LIABILITIES, RESERVES, CONTRIBUTIONS AND FUND BALANCES11 CURRENT LIABILITIES Accounts payable $ 114,512 $ 61,236 Customer meter deposits 22,385 Due to other funds 76,618 Current portion of bonds payable 55,000 TOTAL CURRENT LIABILITIES 268,515 61,236 LONG-TERM LIABILITIES Bonds and certificates of obligation - less current portion 4,527,000 RESERVES Reserve for authorized construction 148,2011! Reserve for revenue bonds 56,986 TOTAL RESERVES 205,187 CONTRIBUTIONSI Municipality 1,713,176 Federal government 860,660 Other 378,831 TOTAL CONTRIBUTIONS 2,952,667 FUND BALANCES 1,025,460 42,488 $122,850 $8,978,829 $103,724 $122,850 1 I -35- iAl/I.So/V, Your; 6 F/7'61/ I I • Capital City Annexed Sales Revenue General General Projects Water and Water Dis- Tax Sharing Fixed Long-Term Fund S, ,:er Fund trict Fund Fund Fund Assets Debt I $ 53,276 i 12 ,095 $ 10,290 71,664 4,954 15,000 40,000 152,035 55 ,244 647,000 2 ,270,000 $1,610,000 $33,901 67,921 46,379 56 ,986 33,901 124,907 46,379 I $1,713,176 511,839 348,821 209,290 169,541 721,129 2,231,538 937,350 (134,733) $38,357 $19,148 $33,901 $2,582,421 $2,236,890 $38,357 $19,148 $2,231,538 $1,610,000 I I -36- L,1//?SON, TO(:VG 6 F/T(,7I I STATEMENT OF REVENUES AND EXPENDITURES - ALL FUNDS CITY OF FRIENDSWOOD, TEXAS Year ended September 30, 1976 Debt !! Total General Service All Funds Fund Fund REVENUES Taxes - ad valorem, beverage and sales $ 943,619 $ 612,429 $226,870 I! Water sales and services 380,217 114,309 Federal revenue sharing and grants 273,200 18,630 Franchises, licenses and permits 86,714 86,714 Tap fees 44,241 Proceeds of industrial district taxes 151,404 151,404 I! Interest on investments 39,607 11,535 6,079 Sanitation income 112,021 112,021 Fines and forfeitures 14,514 14,514 Other income 47,743 9,033 2,093,280 1,016,280 347,258 lik EXPENDITURES Operating expenditures 991, 357 737,912 I: Capital outlay 718,469 213,774 Capital projects completed 56,810 Debt service 415,287 415,287 2,181,923 951,686 415,287 11 EXCESS (DEFICIT) OF REVENUE OVER EXPENDITURES BEFORE DEPRECIATION (88,643) 64,594 (68,029) 11 PROVISION FOR DEPRECIATION 100,493 REVENUE OVER (UNDER) EXPENDITURES $ (189,136) $ 64,594 $(68,029) 11 I! II I! II II 1 II -37- IN.S'ON tO( 'VC 69 PITCH II II IICapital City Annexed Sales Revenue Projects Water and Water Dis- Tax Sharing IIFund Sewer Funs! trict Fund Fund Fund II $104,320 $ 212,144 $ 53,764 II 213,904 $35,666 27,436 16,805 II $ 3,464 11,054 4,497 1,967 1,011 II 35,32 i 3,383 _ II3,464 504,865 78,449 106,287 36,677 II 171,676 81,769 480,44 24,250 56,810 — -- II 56,810 652,121. 81,769 24,250 II (53, 346) (147,256) (3,320) 106,287 12,427 55,244 45,249 $(53, 346) $(202,500) $(48,569) $106,287 $.12,427 II 11 II II 11 11 11 -38- I STATEMENT OF CHANGES IN CONTRIBUTIONS AND FUND BALANCES - ALL FUNDS CITY OF FRIENDSWOOD, TEASr Year ended September 30, 1976 r Debt Total General Service All Funds Fund Fund !! Balances at October 1, 1975 $3, 313,964 $27,919 $147,407 Reserve for expenditures at October 1, 1975 50,723 Revenue over (under) expenditures (189,136) 64,594 (68,029) ri wh. Capital outlays for property, plant and equipment Included in fund expense 480,445 !! Transferred from capital projects fund 56,810 Transferred from revenue sharing fund 24,250 Transferred from general fund 155,576 it Transferred from water and sewer fund 988 Transferred from sales tax fund 58,198 !! Transfer to bond reserve 6,000 Transfer from water and sewer reserve for authorized construction 70,856 70,856 Deduct reserve for income earned !! on restricted funds (45,142) Interfund cash transfer - (50,025) !! Retirement of fixed assets (120) 1! Reserve for authorized construction (33,901) Reclassification of interest prepaid !! in prior year (27, 384) (27,384) Retirement of revenue bonds 56,000 !! BALANCES AT SEPTEMBER 30, 1976 $3,978,127 $42,488 $122,850 !! CONTRIBUTIONS 2,952,667 - - FUND BALANCES 1,025,460 42,488 122,850 $3,978,127 $42,488 $122,850 I! 11 -39- L/I//1SON YO/i'Y% 6' I'ITC// 411 41 111 Capital City Annexed Sales Revenue General Projects Water and Water Dis- Tax Sharing Fixed III Fund Sewer Fund trict Fund Fund Fund Assets $1,392,257 $(196,177) $ 1 $ 6,721 $1,935,836 1 $50,723 (53,346) (202,500) (48,569) 106,287 12,427 111 480,445 56,810 'I 24,250 155,576 988 11 58,198 • 6 ,000 11 11 (38,723) (6,419) 11 36,524 81,432 (67,931) 11 (120) (33,901) 11 11 21,000 35,000 11 $ - $1,658,479 $(134,733) $38,357 $19,148 $2,231,538 11 - 721,129 - - - 2,231,538 - 937,350 (134, 733) 38,357 19,148 - 11 $ - $1,658,479 $(134,733) $38,357 $19,148 $2,231,538 11 -40- 11 1/1///SON, Th(/ G r1 TYTC// I STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - ALL FUNDS CITY OF FRIENDSWOOD, TEXAS Year ended September 30, 1976 Debt Total General Service All Funds Fund Fund CASH RECEIPTS Ad valorem and beverage taxes $ 839,299 $618,096 $221,203 Sales and use taxes 97,963 Franchises 50,514 50,514 Licenses and permits 36,200 36,200 Sanitation income 99,888 99,888 Fines and forfeitures 14,514 14,514 Interest on investments 39,607 11,535 6,079 Other revenue 45,774 7,064 Revenue sharing and grants 270,740 18,630 Customer meter deposits received in excess of refunds 5,805 Water sales, sewer service charges and water and sewer taps and connections 406,763 114,309 Transfer from water and sewer fund proceeds of bond issue (1972) 70,856 70,856 Industrial district taxes 151,404 151,404 Interfund transfers - net - (50,025) !!TOTAL CASH RECEIPTS 2,129, 327 957,820 412,447 CASH DISBURSEMENTS Operations 1,041,838 788,627 Capital outlay 726,101 158,774 Debt service 331,325 331,325 TOTAL CASH DISBURSEMENTS 2,099,264 947,401 331,325 30,063 10,419 81,122 Cash balance at October 1, 1975 429,226 15,392 36,061 CASH BALANCE AT SEPTEMBER 30, 1976 $ 459,289 $ 25,811 $117,183 Unrestricted $ 14,705 $ 21,779 $ - r Restricted 444,584 4,032 117,183 $ 459,289 $ 25,811 $117,183 -41- L//1I1SO'tij 1Ol/N6 a FITCH II 1 IICapital Sales Revenue Projects Water and Tax Sharing IIFund Sewer Fund Fund Fund II $97,963 II II $ 3,464 $ 15,551 1,967 $ 1,011 38,710 218,904 33,206 5,805 292,454 11 11 36,524 81,432 (67,931) 11 39,988 652,856 31,999 34,217 11 253,211 112,014 429,483 25,830 II 112,014 682,694 - 25,830 11 (72,026) (29,838) 31,999 8,387 105,927 271,845 1 - I $33,901 $242,007 $32,000 $ 8,387 11 $ - $ (7,074) $ - $ - 33,901 249,081 32,000 8,387 11 $33,901 $242,007 $32,000 $ 8,387 11 11 11 -4 2- ii/MSOOV, )OG416 f7 1/1C/1 II II COMBINED SCHEDULE OF LONG-TERM DEBT IICITY OF FRIENDSWOOD, TEXAS IISeptember 30, 1976 11 Date of Outstanding at Interest Date Amount Final September 30, Description Rate of Issue of Issue Maturity 1976 IIGeneral Obligation Bonds II Waterworks and Sewer System Unlimited Tax Bonds, Series 1962 II (Galveston County Water Control and Improvement District No. 15) 4.50% 10-1-62 $150,000 3-1-99 $ 150,000 11 Waterworks and Sewer System Unlimited Tax Bonds, Series 1963 (Galveston County Water Control and Improvement 11 District No. 15) 3.50 10-1-63 63,000 3-1-78 12,000 4.25 10-1-63 112,000 3-1-92 112,000 11 Sewer Improvement Bonds,Series 1967 5.00 3-1-67 20,000 3-1-74 - 4.10 3-1-67 60,000 3-1-80 40,000 11 4.20 3-1-67 120,000 3-1-88 120,000 General Obligation Refunding Bonds, Series 1969 5.00 3-1-69 257,000 3-1-93 194,000 11 General Obligation Bonds, Series 1973 5.25 7-1-73 30,000 4-1-78 20,000 5 .50 7-1-73 120,000 4-1-88 120,000 Drainage Improvement Bonds, Series 1973 6.00 11-1-73 25,000 6-1-90 25,000 6.10 11-1-73 75,000 6-1-95 75 ,000 General Obligation - Bonds, Series 1974 7.90 9-1-74 345,000 3-1-94 345,000 7.75 9-1-74 355,000 3 1-99 355,000 ITOTAL GENERAL OBLIGATION BONDS 1,568,000 I -43- I/ihiSON, 101,:16 (9 11761/ II COMBINED SCHEDULE OF LONG-TERM DEBT - 2 II I Date of Outstanding at Interest Date Amount Final September 30, Description Rate of Issue of Issue Maturity 1976 11 Revenue Bonds 11 Combination Revenue and Unlimited Tax Bonds, Series 1957 (Galveston I County Water Control and Improvement District No. 15) 5 .00 7-1-57 246,000 3-1-81 22,000 IWaterworks and Sewer System Combination II Tax and Revenue Bonds, Series 1964 (Galveston County Water Control - I and Improvement District No. 21) 5.00 11-1-64 600,000 8 1-99 550,000 I Waterworks and Sanitary Sewer System Revenue Bonds, Series 1969 6.50 5-1-69 340,000 3-1-90 280,000 11 6.125 5-1-69 360,000 3-1-99 360,000 Waterworks and Sewer 11 System Combination Tax and Revenue Bonds, Series 1970 (Sunmeadow 11 M.U.D.) 8.50 -70 600,000 4-1-89 560,000 Waterworks and Sewer I System Combination Tax and Revenue Bonds, Series 1970-A (Sun- 11 meadow M.U.D.) 8.50 -70 540,000 4-1-2000 540,000 Waterworks and Sewer 11 System Combination Tax and Revenue Refund- ing Bonds, Series 197211 - (Sunmeadow M.U.D.) 5.75 -72 410,000 4-1- 98 410,000 5.00 -72 250,000 4-1-2000 250,000 11 TOTAL REVENUE BONDS 2,972,000 11 11 11 -44- 1,///.S021r, 10/.1 G i HMV/ I 11 COMBINED SCHEDULE OF LONG-TERM DEBT - 3 11 Date of Outstanding at Interest Date Amount Final September 30, Description Rate of Issue of Issue Maturity 1976 Equipment purchase Certificates of Obligation, 11 Series 1975 5.75 7-1-75 52,000 7-1-80 42,000 TOTAL CERTIFICATES OF OBLIGATION 42,000 TOTAL LONG-TERM DEBT $4,582,000 11 I I 11 I 11 11 I 11 I 1 11 11 11 -45- L/////SON ,, f lfi,t(/ IYTC// 1 IILONG-TERM DEBT SUMMARY - BY MATURITY DATE: 1 CITY OF FRIENDSWOOD, TEXAS September 30, 1976 1 Certificates of Obligation and 1 Year ending Total Ccneral Obligation Bonds Revenue Bonds September 30 Principal Interest Principal Interest Principal Interest II 1977 $ 96,000 $ 296,647 $ 41,000 $ 98,710 $ 55,000 $ 197,937 1978 108,000 290,508 46,000 96,470 62,000 194,038 1979 112,000 283,645 46,000 94,083 66,000 189,562 II 1980 119,000 276,510 53,000 91,522 66,000 184,988 1981 120,000 268,953 47,000 88,591 73,000 180,362 1982 132,000 261,321 52,000 86,021 80,000 175,300 1 1983 132,000 252,853 52,000 83,253 80,000 169,600 1984 137,000 244,387 52,000 80,487 85,000 163,900 1985 147,000 235,493 57,000 77,718 90,000 157,775 1 1986 158,000 225 ,756 63,000 74,531 95,000 151,225 1987 168,000 215,282 63,000 71,194 105,000 144 ,088 1988 174,000 204,376 64,000 67,839 110,000 136,537 II 1989 180,000 192,528 65,000 63,965 115,000 128,563 1990 195 ,000 179,820 70,000 59,820 125,000 120,000 1991 205,0u0 166,084 75,000 55,178 130,000 110,906 1 1992 224,000 151,638 74,000 50,347 150,000 101 ,291 1993 235,000 135,632 80,000 45,210 155,000 90,422 1994 250,000 118,183 90,000 39,055 160,000 79,128 1 1995 270,000 99,821 95,000 32,565 175,000 67,256 1996 285 ,000 80,994 100,000 25,650 185,000 55,344 1997 305,000 67,984 105 ,000 18,681 200,000 49,303 II 1998 325,000 49,308 105,000 11,601 220,000 37,707 1999 345,000 29,180 115,000 4,049 230,000 25,131 2000 160,000 14,600 160,000 14,600 I $4,582,000 $4,341,503 $1,610,000 $1,416,540 $2,972,000 $2,924,963 1 1 1 • I 1 1 1 1 -46- LdUISON, TOrM 6 FITCH I II IILONG-TERM DEBT - GENERAL OBLIGATION BONDS - BY MATURITY CITY OF FRIENDSWOOD, TEXAS IISeptember 30, 1976 II Waterworks and System Unlimited ' Series 1962 (Ga County Water Convement General Obligation Certificates of II Year Ending Total Improvement Distr. 1973 Bonds - Series 1974 Obligation - Series 1975 September 30 Principal Interest Principal terest Principal Interest Principal Interest 1977 $ 41,000 $ 98,710 6,075 $ 5,000 $ 54,570 $10,000 $2,415 1978 46,000 96,470 6,075 5,000 54,175 10,000 1,840 1979 46,000 94,083 6,075 5,000 53,780 10,000 1,265 1 1 1980 53,000 91,522 6,075 5,000 53,385 12,000 690 1981 47,000 88,591 6,075 5,000 52,990 11 1982 52,000 86,021 6,075 10,000 52,397 1983 52,000 83,253 6,075 10,000 51,607 1984 52,000 80,487 6,075 10,000 50,818 11 1985 57,000 77,718 6,075 10,000 50,027 1986 63,000 74,531 6,075 10,000 49,238 !I 1987 63,000 71,194 6,075 10,000 48,447 1988 64,000 67,839 6,075 10,000 47,658 1989 65,000 63,965 6,075 30,000 46,077 1990 70,000 59,820 5,475 30,000 43,708 1991 75,000 55,178 4,575 35,000 41,140 1992 74,000 50,347 3,660 35,000 38,375 1993 80,000 45,210 2,745 45,000 35,215 1994 90,000 39,055 1,830 75,000 30,475 1995 95,000 32,565 $ 30,000 915 50,000 25,575 1996 100,000 25,650 30,000 70,000 20,925 1! 1997 105,000 18,681 30,000 75,000 15,306 1998 105,000 11,601 35,000 70,000 9,688 1! 1999 115,000 4,049 25,000 90,000 3,487 $1,610,000 $1,416,540 $150,000 )8,175 $700,000 $929,063 $42,000 $6,210 !I , saasaaas :: sr asas::ss ssssaa: asassa Redeemable in revs Redeemable in reverse on payment dates 1 order on payment dates 3-1-81. beginning 3-1-93. 11 11 LIIRSON, Y6 II II LONG-TERM DEBT - REVENUE BONDS - BY MA II CITY OF FRIENDSWOOD, TEXAS II September 30, 1976 Waterworks and Sewer and System Combination Tax I �70-A and Revenue Refunding Bonds - Year Ending Total I Series 1972 (Sunmeadow M.U.D.) September 30 Principal Interest :rest Principal Interest 1977 $ 55,000 $ 197,937 $000 $ 36,075 II1978 62,000 194,038 5,900 36,075 1979 66,000 189,562 5,900 36,075 I1980 66,000 184,988 5,900 36,075 1981 73,000 180,362 5,900 36,075 II1982 80,000 175,300 i,900 36,075 1983 80,000 169,600 i,900 36,075 I1984 85,000 163,900 5,900 36,075 1985 90,000 157,775 i,900 36,075 1986 95,000 151,225 i,9p0 36,075 1987 105,000 144,088 i,900 36,075 1988 110,000 136,537 000 36,075 1989 115,000 128,563 000 36,075 III 1990 125,000 120,000 000 36,075 1991 330,000 110,906 050 36,075 1992 150,000 101,291 075 36,075 I 1993 155,000 90,422 050 36,075 I 1994 160,000 79,128 ;,700 36,075 1995 175,000 67,256 ,625 $ 35,000 36,075 1996 185,000 55,344 ,675 115,000 34,063 1997 200,000 49,303 ,675 125,000 32,125 1998 220,000 37,707 ,675 135,000 24,938 II 1999 230,000 25,131 ,675 145,000 17,175 2000 160,000 14,600 675 _105,000 9,925 I $2,972,000 $$2i9244,,963 ,175 $660¢000 $803,651 Redeemable in reverse order on payment dates beginning 4-1-85. II -4 IIAIRSON, 701 I TAX LEVIES AN TAX COLLECTIONS ID CITY OF FRIENDSWOOD, TEXAS I Ten years ending September 30, 1977 Collections to September 30, 1975 Year Ended Net Total Per Cent of September 30 Tax Levy Adjustments Tax Levy Collections Tax Levy CITY OF FRIENDSWOOD 1968 $115 ,270 $(1,116) $114,154 $113,957 99.83% 1969 124,642 216 124,858 124,607 99.80 1970 138,767 482 139,249 139,039 99.85 1971 155,224 (124) 155,100 154,794 99.80 1972 170,148 853 171,001 170,637 99.79 1973 220,721 5,617 226,338 224,652 99.26 1974 245,485 (797) 244,688 242,085 98.94 1975 524,988 (1,578) 523,410 491,853 93.97 1976 684,200 (1,392) 682,808 1977 793,590 - 793,590 N/A N/A 1 WATER CONTROL AND IMPROVEMENT DISTRICT NO. 21 1969 $ 47,250 $ 40 $ 47,290 $ 47,290 100.00% 1 1970 55,643 (411) 55,232 55,232 100.00 1971 60,931 (147) 60,784 60,784 100.00 1972 60,870 - 60,870 60,870 100.00 II 1973 67,976 (136) 67,840 67,840 100.00 1974 68,142 (142) 68,000 67,684 99.54 I 1975 85,180 (218) 84,962 84,478 99.43 1976 92,462 - 92,462 - - 1977 93,029 - 93,029 N/A N/A II SUNMEADOW MUNICIPAL UTILITY DISTRICT I 1971 $ 9,351 $ 182 $ 9,533 $ 9,533 100.00% 1972 19,825 74 19 ,899 19,869 99.85 1973 41,615 (823) 40,792 40,564 99.44 1974 58,765 - 58,765 58, 303 99.21 1975 49,510 - 49,510 44,974 90.84 li 1976 58,545 - 58,545 - - 1977 76,263 - 76,263 N/A N/A I I I -49- I LAMA! )U1;1 Y: e1 Iiici/ 1 I I ITotal Per Cent Balance at September 30, 1976 Current Collections Collected Due to I Year to to Delinquent General Debt Service Collections Sept. 30, 1976 Sept. 30, 1976 Taxes. Fund Fund II $ - $113,957 99.83% $ 197 $ 114 $ 83 II - 124,607 99.80 251 165 86 28 139,067 99.87 182 149 33 64 154,858 99.84 242 148 94 II 98 170,735 99.84 266 165 101 787 225,439 99.60 899 764 135 1,445 243,530 99.53 1,158 1,037 121 I 19,551 511,404 654,271 97.71 12,006 9 ,365 20,689 2,641 654,271 95.82 28,537 7,848 N/A N/A N/A I I $ - $ 47,290 100.00% $ - $ - $ - - 55,232 100.00 - - - 60,784 100.00 - - - - 60,870 100.00 - 67,840 100.00 - - - ' 316 68,000 100.00 - - - 238 84,716 99.71 246 192 54 91,326 91,326 98.77 1,136 824 312 II N/A N/A N/A 1 $ - $ 9,533 100.00% $ - $ - $ - ' 30 19,899 40,738 100.00 - _ - 174 99.87 54 54 356 58,659 99.82 106 - 106 1 4,294 49,268 99.51 242 189 53 56,734 56,734 96.91 1,811 1,313 498 N/A N/A N/A 1 1 I I -50- i/ill/SOA' lOCJ%6 6 FITCf/ • • 111 AUDITED FINANCIAL STATEMENTS - REVENUE SHARING FUND CITY OF FRIENDSWOOD, TEXAS ' FRIENDSWOOD, TEXAS ' September 30, 1976 1 1 I 1 I ■ -51- i iIII?50:1; TOM a F/iC/I I • I L'IIRSON, YOUNG.8 FITCH CERTIFIED PUBLIC ACCOUNTANTS • I MEMBERS 475 CAPITAL NATIONAL BANK BLDG. AMERICAN INSTITUTE OF HOUSTON,TEXAS 77002 CERTIFIED PUBLIC ACCOUNTANTS 713-227-6364 1 II II Honorable Mayor and 11 City Councilmen City of Friendswood, Texas IIWe have examined the Revenue Sharing Fund Statements of Changes in Available Funds and Obligations Incurred of the City of Friendswood, Texas for the year ended 11 September 30, 1976, and have compared the financial data included on Bureau of Census Form RS-9 with audited records of the City of Friendswood, Texas for the year ended September 30, 1975. Our examination was made in accordance with II generally accepted auditing standards and the "Audit Guide and Standards for Revenue Sharing Recipients" issued by the Office of Revenue Sharing, U. S. Department of the Treasury, and accordingly included such tests of the accounting records and IIsuch other auditing procedures as we considered necessary in the circumstances. In our opinion, the Statements of Changes in Available Funds and Obligations II Incurred present fairly the revenue, expenditures, obligations incurred and status of revenue sharing funds of the City of Friendswood, Texas for the year ended September 30, 1976, in conformity with generally accepted accounting principles 11 applied on a basis consistent with that of the preceding year. Further, financial data included on Bureau of Census Form RS-9 (amended) for the year ended September 30, 1975 is in agreement with audited records of the City of Friendswood, Texas. 11 11 67;01/1" fri'll )° ... .'?"r11-.) 11 Houston, Texas IINovember 26, 1976 I I 11 -52- 1 STATEMENT OF CHANGES IN AVAILABLE FUNDS 1 CITY OF FRIENDSWOOD, TEXAS - REVENUE SHARING FUND IIYear ended September 30, 1976 1 . 1 Per Books Adjustments Adjusted 1 Available funds, beginning of year Unappropriated $ -0- $-0- $ -0- ' Unencumbered appropriations 6,721 -0- 6,721 TOTAL 6, 721 -0- 6,721 1 Add revenue Entitlement payments 35,666 -0- 35,666 Interest 1,010 -0- 1,010 1 TOTAL 36,676 -0- 36,676 I Less unappropriated, end of year -0- -0- -0- 1 Available for obligation during year 36,676 -0- 36,676 Less Expenditures 24,250 -0- 24,250 IIEncumbrances (net) -0- -0- -0- TOTAL OBLIGATIONS INCURRED 24,250 -0- 24,250 1 Unencumbered balance, end of year 19,147 -0- 19,147 Unappropriated, end of year -0- -0- -0- IAVAILABLE FUNDS, END OF YEAR $19,147 $-0- $19,147 I I I I I I I -53- iligS'O.V, 1Of'%'(; 6 FI CH 1 STATEMENT OF OBLIGATIONS INCURRED ' CITY OF FRIENDSWOOD, TEXAS - REVENUE SHARING FUND Year ended September 30, 1976 Per Books Adjustments Adjusted Capital expenditures Multipurpose and general government Transportation - public $21,786 $-0- $21,786 Libraries 2,464 -0- 2,464 TOTAL CAPITAL EXPENDITURES 24,250 -0- 24,250 TOTAL OBLIGATIONS INCURRED $24,250 $_0_ $24,250 1 1 I 1 I 1 I I -54- lA//15a IOCAG 6 /7T6/1 I 1 SUMMARY OF DATA SUBMITTED TO BUREAU OF THE CENSUS 1 CITY OF FRIENDSWOOD, TEXAS - REVENUE SHARING FUND II Year ended September 30, 1976 1 IIReported Audit to Census Adjustments Adjusted II PART I 1. Property taxes $640,830 $ (843) $639,987 II 2. Local sales taxes a. General sales tax 68,863 -0- 68,863 b. Gasoline tax -0- -0- -0- II c. Liquor tax -0- -0- -0- d. Cigarette and tobacco taxes -0- -0- -0- e. Public utilities tax 38,432 -0- 38,432 II f. Other -0- -0- -0- 3. Licenses, permits and other taxes a. Income, payroll or earning I tax (local) -0- -0- -0- b. Motor vehicle licenses (local) -0- -0- -0- c. Fees retained from tax I collections by officials of your government -0- -0- -0- d. Other - licenses and permits 37,942 (12,784) 25,158 II4. Taxes for education -0- -0- -0- II PART II From State Government 2,175 -0- 2,175 II From Federal Government 6. State and Local Fiscal Assistance Act of 1972 (Federal General I Revenue Sharing Program) 29,595 -0- 29,595 7. All other - Environmental Protection Agency reimbursement IIgrants -0- 107,080 107,080 I I II II II -55- !d///60/V, }OGNG 6 /%7G// 11 11 ACCOUNTANTS' REPORT ON COMPLIANCE 11 11 • 11 Honorable Mayor and City Councilmen City of Friendswood, Texas We have examined the Revenue Sharing Fund Statements of Changes in Available Funds and Obligations Incurred of the City of Friendswood, Texas for the year ended September 30, 1976 and have compared the financial data included on Bureau of Census Form RS-9 with the audited records of the City of Friendswood, Texas for the year ended September 30, 1975. Our report thereon was issued on November 28, 1975. Our examination was made in accordance with generally accepted auditing standards and the "Audit Guide and Standards for Revenue Sharing Recipients" issued by the Office of Revenue Sharing, U. S. Department of the Treasury, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As a part of our examination, we made a study of those internal accounting and administrative control procedures and compliance matters that we considered relevant to the criteria established by the Office of Revenue Sharing as set forth in Section V.D. of its "Guide". Our study, which related to the requirements cited above, disclosed no conditions which we consider matters of non-compliance. 6241/41°12N- ;i( 1 Houston, Texas November 26 , 1976 1 1 1 -5t,- i//IW.SO1, lOG.'lY: 65 /77C//