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HomeMy WebLinkAbout1986 09 30 Annual Comprehensive Financial Report - City of Friendswood 1 CITY OF FRIENDSWOOD, TEXAS COMPREHENSIVE ANNUAL iFINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1986 I 1 1 1 I CONTENTS' Exhibit Page IIINTRODUCTORY SECTION 7 Letter of Transmittal 9-15 I Organization Chart 16 Principal Officials 17 IFINANCIAL SECTION 19 I Accountants' Report 21 Combined Statements - Overview ("Liftable" General Purpose Financial Statements) IICombined Balance Sheet - All Fund Types and Account Groups 22-25 ICombined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund ' Types 26-27 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - I General, Special Revenue and Debt Service Fund Types 28-29 I Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - Proprietary Fund Type and Similar Trust Fund 30-33 I Combined Statement of Changes in Financial Position - Proprietary Fund Type and Similar Trust Fund 34-35 II Notes to Financial Statements 36-54 Individual Fund and Account Group 1 Statements and Schedules 55 General Fund 57 IComparative Balance Sheet A-1 58 Statement of Revenues - Budget and Actual A-2 59 IStatement of Expenditures - Budget and Actual - By Function A-3 60 II Statement of Expenditures - Budget and Actual - By Object A-4 61-65 II I -3- :I CONTENTS - 2 31 Exhibit Page FINANCIAL SECTION (Continued) I Individual Fund and Account Group Statements and Schedules (Continued) II Special Revenue Funds 67 Combining Balance Sheet B-1 68 I Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-2 69 II Revenue Sharing Fund Comparative Balance Sheet B-3 70 II Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-4 71 II Parks and Recreation Fund Comparative Balance Sheet B-5 72 1 Statement of Revenues, Expenditures and Changes IIin Fund Balance - Budget and Actual B-6 73 Mowing Fund Comparative Balance Sheet B-7 74 II Statement of Revenues, Expenditures and Changes IIin Fund Balance - Budget and, Actual B-8 75 Fine Arts Commission Fund Comparative Balance Sheet B-9 76 II Statement of Revenues, Expenditures and Changes B-10 77 II in Fund Balance - Budget and Actual Debt Service Fund 79 Comparative Balance Sheet C-1 80 II Comparative Statement of Revenues, Expenditures and Changes in Fund Balance C-2 81 II 1 I II CONTENTS - 3 IExhibit Page I FINANCIAL SECTION (Continued) Individual Fund and Account Group Statements and Schedules (Continued) . II Capital Projects Fund 83 IIComparative Balance Sheet D-1 84 Comparative Statement of Revenues, Expenditures IIand Changes in Fund Balance D-2 85 Enterprise Fund 87 ' Comparative Balance Sheet E-1 88-89 Statement of Revenues and Expenses - ' Budget and Actual E-2 90 Statement of Operating Expenses - Budget and Actual E-3 91 I Schedule of Revenue Bonds Payable E-4 93 I Revenue Bonds Payable - By Maturity Date E-5 94-95 Fiduciary Fund 97 IComparative Balance Sheet F-1 98 Comparative Statement of Revenues, Expenditures IAnd Changes in Fund Balance F-2 99 General Fixed Assets Account Group 101 ISchedule of General Fixed Assets - By Source G-1 102 Schedule of General Fixed Assets - By Function IIand Activity G-2 103 Schedule of Changes in General Fixed Assets - IIBy Function and Activity G-3 104 General Long-Term Debt Account Group 105 IStatement of Changes in General Long-Term Debt H-1 106-107 Schedule of General Long-Term Debt H-2 109 II General Long-Term Debt - By Maturity Date H-3 110-112 Compound Bonds - Accrued Interest Schedule H-4 113 -5- 61.1 CONTENTS - 4 Exhibit Page II FINANCIAL SECTION (Continued) II Individual Fund and Account Group Statements and Schedules (Continued) IISchedules 115 Combined Schedule of Investments - All Funds I-1 116 II Schedule of Delinquent Taxes Receivable I-2 117 STATISTICAL SECTION 119 II General Revenue - By Source I 120-121 General Government Expenditures - By Function II 122-123 II Tax Revenues - By Source III 125 II Property Tax Levies and Collections IV 126-127 Assessed and Estimated Actual Value of I Taxable Property V 128-129 Property Tax Rates and Tax Levies - II All Overlapping Governments VI 130-133 Ratio of Net General Bonded Debt to Assessed Value IIand Net Bonded Debt Per Capita VII 134-135 Computation of Net Direct and Estimated Overlapping Debt VIII 136 II Computation of Legal Debt Margin IX 137 Ratio of Annual Debt Service Expenditures for II General Bonded Debt to Total General Expenditures X 139 Schedule of Revenue Bond Coverage XI 140-141 I Tax Rate Distribution for Debt Service XII 142 Principal Taxpayers XIII 143 II Schedule of Insurance in Force XIV 144-147 II Property Value, Construction and Bank Deposits XV 148 Miscellaneous Statistical Data XVI 149-151 I Principal Officials XVII 152-153 I t 1 1 1 1 ' INTRODUCTORY SECTION 1 1 t -7- 3 I r I I I 1 1 r I 1 1 1 (This page intentionally left blank.) 1 -8- , I RALPH L.LOWE � di..\ M�tts Mayor ` 1 ' £?Lty O • ANNEAND 9'ZLEn.c .UTOOty Councilmen ' `� HJIM HARRELL 109 WILLOWICK 7131482.3323 JAN JORDAN f'i ► FRIENDSWOOD, TEXAS 77546-3898 PHYLLIS J.LEE I {; EVELYN NEWMAN 7' JOE D.PRIHODA 1�l 'N ROBERT WICKLANDER ` �' DELORIS McKENZIE,CMC �. 7.� ti "1-=_-�—s City Secretary II I April 9, 1987 1 Honorable Mayor and Members of the City Council of the City of Friendswood II Friendswood, Texas The Comprehensive Annual Financial Report of the City of Friendswood, Texas, for the II fiscal year ended September 30, 1986, is submitted herewith. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe that data as presented is accurate II in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity and results of operations of the City as measured by the I financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understand of the City's financial activity have been included. IIThe Reporting Entity and Its Services The City of Friendswood, Texas adopted a "Home Rule Charter" on October 16, 1971 . II The charter provides for "City Council-City Manager" form of city government. The City is located 20 miles southeast of downtown Houston in Harris and Galveston Counties. IIThe City provides its citizens with many services including City administration, traffic planning, inspection services, municipal court services and a library. I However, the services that affect most citizens on a day-to-day basis are described as follows: Water and Sewer - The City provides water and sewer services for all residents and II commercial locations. The department maintains the system with a work force of twelve employees. II Fire - Although the City does not employ its own fire department, it has purchased fire trucks and other additional equipment for the volunteer fire department. The City employs a fire marshal and one fulltime fire fighter. I Streets - The street department is responsible for the repair and maintenance of all City streets. The department consists of ten employees. Sanitation - The garbage pick-up is contracted with Best Waste Systems, Inc. Parks - The City maintains five city parks and is responsible for the maintenance of one additional park. The total of all these park areas is approximately seventy acres. - t Animal Shelter - The City employs an animal control officer and maintains an animal shelter. The animal control officer is responsible for picking up all stray animals. ' All funds and account groups of the City are included in this report. There is one separately administered organization which is included as a component unit in ' accordance with NCGA Statement 3. This organization is the Blackhawk Regional Waste Treatment Plant. The City's equity in this organization's operating fund is included in the Enterprise Fund. Internal Accounting and Budgetary Control The financial statements were prepared in accordance with generally accepted accounting principles prescribed by the National Council on Governmental Accounting in its 1979 Statement 1 - Governmental Accounting and Financial Reporting Principles and subsequent Statements and Interpretations (as adopted by the Governmental Accounting Standards Board), and by the AICPA in its Industry Audit Guide entitled "Audits of State and Local Governmental Units", as amended. Governmental Funds (General Fund, Special Revenue Funds, Debt Service Fund, and Capital Projects Funds) follow the modified accrual basis of accounting. Under this method, revenues are recognized when they are both measurable and available and expenditures are recognized when incurred. The Proprietary Fund Types (Enterprise Fund and Non-Expendable Trust Fund) follow the full accrual basis of accounting. Under this method, revenues are recognized at the time they are earned and expenses are recognized when they are incurred. Transfers are recognized in the accounting period in which the interfund receivable and payable arise. ' In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of controls should not exceed the benefits expected to be derived and (2) the evaluation of costs and benefits requires estimates and judgements by management. ' We believe that the City's accounting controls provide reasonable assurance that errors or irregularities that could be material to the financial statements are i -10- ' I prevented or would be detected within a timely period by employees in the normal IIcourse of performing their assigned functions. Budgeting is an essential element of the financial planning, control and evaluation II processes of the City. The City requires that an annual budget be authorized by the City Council before the budget period begins. This process provides for the initial financial planning of the budget year. Interim budget reports are prepared during the budget period to facilitate legislative oversight of governmental fund financial IIoperations as well as management control. General Government Functions IRevenues for general government functions (General, Special Revenue and Debt Service Funds) totaled $5,643,689, in 1985-86, an increase of 20.06% over 1984-85. General I property taxes produced 67.80% of the general revenues compared to 59.99% of the preceding year. Sales taxes produced 8.57% of the general revenues compared to 7.67% of the preceding year. The amount of revenue from various sources and the increase or (decrease) over the preceding year are shown in the following Itabulation: Increase I Revenue Sources 1985-86 Percent (decrease) Amount of Total Over 1984-85 II General property taxes $3,826,171 67.80 $507,022 Business gross receipts taxes 352,186 6.24 79,002 General sales taxes 483,629 8.57 59,131 Other taxes 1 ,106 .02 (273) I Sanitation 470,177 8.33 (62,524) Intergovernmental 124,114 2.20 (411 ,841) Fines and forfeits 120,195 2.13 (18,107) II Licenses and permits 148,740 2.63 10,666 Interest income 88,521 1 .57 (39,388) Other revenue 28,850 .51 (12,701) 1 TOTAL $5,643,689 100.00% $110,987 I Assessed valuations of $645,891 ,660 represented an increase of 7.85% over the preceding year. Assessed valuations are at 100% of market value as determined by the Galveston County and Harris County Appraisal Districts. The assessed tax levy I at October 1 , 1985, relating to the fiscal year 1985-86 was $3,870,699, an increase of 15.60% over the tax levy at October 1 , 1984. Current tax collections were 95.10 of tax levy, down 1 .30% from last year. I Delinquent tax collections were $112,025 and represented 2.95% of total collections. The relation of total collections (current and delinquent) to the current tax levy was 97.98%, an increase of 1 .68% from last year. Allocations of property tax levy II II I -11- :I by purpose for 1985-86 and the preceding two fiscal years are as follows (amount per II $100 of assessed value) : Purpose 1985-86 1984-85 1983-84 IIGeneral Fund $.5192 $.507 $.502 General Obligation Debt .1903 .213 .218 TOTAL TAX RATE $.7095 $.720 $.720 I Expenditures for general government purposes totaled $16,212,934, an increase of II $11,395,446 over 1984-85. Increases or (decreases) in the levels of expenditures for major functions of the City for the preceding year are shown in the following tabulation: I Increase 1985-86 Percent (Decrease) Function Amount of Total Over 1984-85 II General Government $ 1,221 ,176 7.53% $ 267,090 Public Safety 1 ,737,503 10.72 348,743 IIPublic Works 723,779 4.46 200,126 Sanitation 484,851 2.99 (27,653) Culture and Recreation 453,408 2.80 79,996 Health and Welfare 78,966 .49 11 ,047 ' Debt Service 11 ,676,872 71 .01 10,679,758 TOTAL $16,376,555 100.00% $11 ,559,107 II The following reasons are cited for major fluctuations in expenditures in various IIdepartments: General Government: Annexation of WCID #108, increase in Insurance, and Tax Service and appraisal fees. II Public Safety: Annexation of WCID #108, purchase of new fire truck and firefighting equipment totaling $149,992. II Public Works: First year contribution to Clear Creek Drainage District for flood control. Debt Service: Refunding of debt through Refunding Bond - Series 1986. II It should be noted that all increases were planned for and properly budgeted. II Unreserved fund balances in the major operating funds were maintained at budgeted levels. The General Fund balance of $55,582 was down $207,663 from the preceding year; the Debt Service Fund balance of $430,288 was up $229,475 from the preceding11 year; the Capital Projects Fund balance of $(216,639) was down $228,798 from the prior year; and Special Revenue Fund balance of $33,317 was up $52,638 from the prior year. 1 1 -12II- II Debt Administration II 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, I citizens, and investors. These data for the City of Friendswood at the end of the 1985-86 fiscal year were as follows: I Ratio of Debt to Assessed Value Debt (100% of Per Description Amount Present Market) Capita II Net direct bonded debt* $10,440,397 1 .6% $457 Overlapping debt 10,517,414 1 .7 467 ITotal direct and overlapping debt $20,957,811 3.3% $924 I * Tax supported debt only Total outstanding tax supported debt (general obligation bonds, Capital Leases, I Employee Benefits Payable, and certificates of obligation) at September 30, 1986 totaled $10,870,685. Debt service funds in the amount of $430,288 were available at September 30, 1986. 1 Water and Sewer The City's water and sewer utility increased its profitability by 483.33% from II 1984-85 to 1985-86. Comparative data for the past two fiscal years are presented as follows: I 1985-86 1984-85 Operating revenues $4,223,572 $2,104,796 IOperating expenses (including depreciation) 1 ,874,566 1 ,641,891 Operating income 2,349,006 462,905 II Other income/(expense) 40,247 9,283 Net income before U operating transfers 2,389,253 472,188 Operating transfers (net) (346,503) (122,000) I NET INCOME $2,042,750 $ 350,188 I Median number of water and customers 6,367 5,200 Average water and sewer charge per month $37 $32 II II -13- I The reason for the unusual increase was primarily due to recognition of $1 ,200,000 in advanced tap fees as revenue during the year. Cash Management Cash temporarily idle during the year was invested in Certificates of Deposit ranging from 30 to 90 days to maturity. Yields on Certificates of Deposit ranged from 5.25% to 8.00% during the year ended September 30, 1986. ' Interest earned for the year was $216,746, down $14,248 from the preceding year. Past Years Operations and Future Projections 1 The City completed several water, sewer, and drainage expansion and improvement contracts, including the Briar/Mills water and sewer lines, and the upgrades on Water Plant #5. The City of Friendswood and Galveston COunty have jointly committed $50,000 each year for the next year to assist the Clear Creek Drainage District in implementing Chigger and Cowarts Creeks Flood Control study's plan of action. ' This past year was the second year of a planned seven-year street improvement program which envisions the improvement of all city streets without utilizing and debt financing. Revenue Sharing funds were used to purchase additional data processing hardware and software in a continuation of the four-year computerization plan initiated in the prior year. The financial applications were completed. Budget preparation, spreadsheet analysis, data base management, PC support and electronic mail/ calendaring applications were implemented. Word processing application was upgraded. Fixed assets, project accounting, service orders, police data base management reporting and court scheduling/ reporting are scheduled to be implemented in the near future. Additional display stations and printers were purchased as well as personal computers. Disk storage capacity was increased by 100 percent. In conjunction with three other governmental entities, the City of Friendswood has funded the Blackhawk Wastewater Treatment Plant expansion which will provide an increase in sewage treatment capacity for its present and future needs. This expansion will allow a population increase to 46,000 people for the City of Friendswood. At the present population level of approximately 22,500, this expanded capacity will equate to more than 100 gallons of sewage capacity per person per day. Independent Audit The City Charter requires an annual audit of the financial statements of all of the various funds of the City by a certified public accountant selected by the City Council. The requirement has been complied with and the auditors' opinion has been included in this report. 1 1 1 -14- ' 1 Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the Untied States and Canada (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting to governmental units for their comprehensive annual financial report. In order to be awarded a Certificate of Achievement for Excellence in Financial ' Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles ' and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe our current report conforms to Certificate of ' Achievement for Excellence in Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for a certificate. ' Acknowledgements The preparation of this report was accomplished with the efficient and dedicated services of the entire staff of the Finance Department. I express my appreciation ' to all members of the department who assisted and contributed to its preparation. I also thank your office, the members of the City Council, and the City Manager for all of your inteest and support in planning and conducting the financial operations ' of the City in a responsible and progressive manner. Respectfully submitted, dr, ./ ,t4L Lynn Bucher Acting Finance Officer ' -15- ❑RGANIZATION CHART CITY OF F-RIENDSWOOD, TEXAS Appointed Boards H Volunteer Fire Department President Ad Hoc Commees , r Fire Chief Copan-tees Ambulance Chief L Mayor & CouncilH J I Fireman = i 111•1•1 ••••=•••• M MII •IIIMMINI • Crty Secretary Municipal Judgt -- - „t 1 City Manager rn Director of Director of Director of Chief Library Public Fire Marshal Fireman Adminstrat►ve Court Clerk of ConnunIcatt s or Services Works Services Police �+PK Parks Vater/Sewer, Accounting Criminal Streets A Re tec. Water Building Personnel Data Humane & Inspections Processing Sewer ® ® NE OM NM NM NM MI MN I I I IIIIII M IIIIIII NM MI 1111111 UM PRINCIPAL OFFICIALS CITY OF FRIENDSWOOD, TEXAS ' September 30, 1986 MAYOR Ralph L. Lowe tPosition No. 1 Position No. 4 Jim Harrell Phyllis J. Lee Mayor Pro Tem ' Councilman Councilman Position No. 2 Position No. 5 Robert Wicklander Jan Jordan ' Councilman PoCouncilman 6 Position No. 3sition Evelyn B. Newman Joe D. Prihoda 1 Acting City Manager IMelvin M. Meinecke City Secretary Tax Assessor Deloris McKenzie Alta Carbone 1 Acting Finance Officer Lynn Bucher 1 1 1 ' -17- I I 1 1 1 1 1 1 1 1 1 1 1 1 1 (This page intentionally left blank) 1 1 -18- 1 I I I I I I I I IFINANCIAL SECTION I I I I I I I I I I -19- I I 1 1 1 1 1 t 1 1 (This page intentionally left blank) 1 1 -20- 1 ' PADGITT AND LOCHRIDGE CERTIFIED PIJRI.!C ACCOUNTANTS 711 W. BAY AREA BLVD. • SUITE 200 1 WEBSTER, TEXAS 77598 J. KENNETH PADGITT, CPA TELEPHONE (713)480-8882 Honorable Mayor and Members of CityCouncil Y ' City of Friendswood, Texas I have examined the general purpose financial statements of the City of Friendswood, Texas, and the combining, individual fund, and account group ' financial statements of the City as of and for the year ended September 30, 1986, as listed in the table of contents. My examination was made in accordance with generally accepted auditing standards and, accordingly, I included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. In my opinion, the general purpose financial statements referred to above ' present fairly the financial position of the City of Friendswood, Texas, at September 30, 1986, and the results of its operations and the changes in financial position of its proprietary fund type for the year then ended, in t conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Also, in my opinion, the combining, individual fund, and account group financial statements referred to t above present fairly the financial position of each of the individual funds and account groups of the City of Friendswood, Texas, at September 30, 1986, and the results of operations of such funds and the changes in financial position of the proprietary fund for the year then ended, in conformity with t generally accepted accounting principles applied on a basis consistent with that of the preceding year. ' My examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund, and individual account group financial statements. The accompanying financial information listed in the table of contents as supporting schedules ' is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Friendswood, Texas. Such information has been subjected to the auditing procedures applied in the ' examination of the general purpose, combining, individual fund, and individual account group financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. ' Webster, Texas March 12, 1987 1 ' -21- I COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS - 1 of 2 11 CITY OF FRIENDSWOOD, TEXAS September 30, 1986 1 GOVERNMENTAL FUND TYPES 1 SPECIAL DEBT CAPITAL ASSETS GENERAL REVENUE SERVICE PROJECTS 0‘,7(,7t,. ^ it- 13 �' 30;u° 59 51 CASH - including certificates al of deposit $ 21 ,586 $79,267 $438,547 $ 29,467 RECEIVABLES - net where applicable, of allowances for uncollectibles Property taxes 235,396 92,885 Accounts 108,454 7,113 Grantor agencies 3,314 200,000 Interest DUE FROM OTHER FUNDS - Note 3 218,486 PREPAID EXPENDITURES AND OTHER ASSETS 18,910 RESTRICTED ASSETS Cash - including certificates of is) deposit 11,278��'' Land Blackhawk operating fund equity GENERAL FIXED ASSETS - at cost 1 PROPERTY, PLANT AND EQUIPMENT - at cost less accumulated depreciation - Note 6 AMOUNT AVAILABLE IN DEBT SERVICE FUNDS ' AMOUNT TO BE PROVIDED FOR RETIREMENT OF GENERAL LONG-TERM DEBT TOTAL ASSETS $606,146 $97,658 $531 ,432 $229,467 -22- ' II II PROPRIETARY FIDUCIARY TOTALS I FUND TYPE FUND TYPE ACCOUNT GROUPS (MEMORANDUM ONLY) NON- GENERAL GENERAL EXPENDABLE FIXED LONG-TERM IIENTERPRISE TRUST ASSETS DEBT 1986 1985 41, 4?,/ j z l9 W $ 188,739 $ 757,606 $ 926,937 I II 328,281 237,699 469,134 584,701 423,288 203,314 18,946 II3,400 3,400 9,157 218,486 708 II18,910 10,979 I1 ,415,928 $18,935 1 ,446,141 1 ,638,904 57,200 57,200 57,200 I43,871 43,871 II $11 ,985,709 11 ,985,709 9,731 ,382 I19,000,327 19,000,327 16,078,696 II $ 430,288 430,288 200,813 I10,440,397 10,440,397 7,845,187 $21 ,121,399 $76,135 $11 ,985,709 $10,870,685 $45,518,631 $37,179,896 II See accompanying notes to financial statements. II II II -23- I COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS - 2 of 2 11 1 GOVERNMENTAL FUND TYPES ' SPECIAL DEBT CAPITAL LIABILITIES AND FUND EQUITY GENERAL REVENUE SERVICE PROJECTS LIABILITIES ACCOUNTS PAYABLE AND ACCRUED EXPENSES $296,258 $ 425 $246,106 PAYABLE FROM RESTRICTED ASSETS Accrued interest Revenue bonds - current portion Deposits DUE TO OTHER FUNDS - Note 3 $ 4,670 200,000 DEFERRED REVENUE 235,396 96,474 LEASE OBLIGATION REVENUE BONDS GENERAL OBLIGATION BONDS AND CERTIFICATES OF OBLIGATION ' TOTAL LIABILITIES 531 ,654 101,144 446,106 FUND EQUITY BLACKHAWK OPERATING FUND CONTRIBUTED CAPITAL INVESTMENT IN GENERAL FIXED ASSETS RETAINED EARNINGS Reserved for revenue bond retirement Reserved for construction Unreserved FUND BALANCES Reserved for prepaid expenses 18,910 Reserved for endowments Reserved for parks 9,955 Reserved for programs 1 ,323 Unreserved (deficit) Designated for construction (216,639) Designated for debt service 430,288 Undesignated 55,582 85,955 TOTAL FUND EQUITY 74,492 97 233 430,288 (216,639) TOTAL LIABILITIES AND FUND EQUITY $606,146 $97,658 $531,432 $229,467 ' -24- ' 1 II II PROPRIETARY FIDUCIARY TOTALS I FUND TYPE FUND TYPE ACCOUNT GROUPS (MEMORANDUM ONLY) NON- GENERAL GENERAL EXPENDABLE FIXED LONG-TERM ENTERPRISE TRUST ASSETS DEBT 1986 1985 11 I $ 122,036 $ 161 ,915 $ 826,740 $ 552,056 6,704 6,704 7,875 II 125,000 125,000 120,000 67,023 67,023 72,740 13,816 21$,486 708 331,870 1,432,879 ' 57,992 57,992 - 1 ,245,000 1 ,245,000 1,370,000 II 10,650,778 10,650,778 8,046,000 1 ,579,579 10,870,685 13,529,593 11 ,602,258 1 43,871 43,871 - 14,766,347 14,766,347 12,551 ,492 II $11 ,985,709 11 ,985,709 9,731 ,382 II 307,393 307,393 266,132 1,873,857 1 ,873,857 377,409 2,550,352 2,550,352 2,045,311 1 18,910 10,979 $67,200 67,200 67,200 9,955 10,034 ' 1 ,323 42 (216,639) 12,159 430,288 200,813 II 8,935 - 1507472 304,685 19,541,820 76,135 11 ,985,709 31,989,038 25,577,638 I $21,121,399 $76,135 $11 ,985,709 $10,870,685 $45,518,631 $37,179,896 11 See accompanying notes to financial statements. I II -25- :I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES 11 CITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 II GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL IIGENERAL REVENUE SERVICE PROJECTS REVENUES Taxes $3,632,321 $1 ,030,771 IICharges for services 470,177 Fines and forfeitures 120,195 Licenses and permits 148,740 Intergovernmental 63,286 $ 60,828 $408,883 II Interest 56,155 3,060 29,306 4,849 Insurance settlements 1 ,938 Other revenues 18,502 8,410 112 IITOTAL REVENUES 4,511 ,314 72,298 1 ,060,077 413,844 EXPENDITURES IICurrent General government 1 ,221 ,176 Public safety 1 ,737,503 Public works 718,312 5,467 1 ,692,833 II Sanitation 484,851 Culture and recreation 447,889 5,519 Health and welfare 78,966 IIDebt service Principal retirement 10,516,427 `-' Interest and fiscal charges 579,859 Bond insurance 127,273 ` II - Bond discounts 191,714 Other bond refunding expenses 261,599✓ TOTAL EXPENDITURES 4,688,697 10,986 11 ,676,872 1 ,692,833 II REVENUES OVER (UNDER) EXPENDITURES (177,383) 61 ,312 (10,616,795) (1 ,278,989) IIOTHER FINANCING SOURCES Refunding bonds - Series 1986 10,650,778/ Transfers (annexation WCID #108) 336,397 195,492 II Residual equity transfers 195,000 Operating transfers in 558,383 9,000 1 ,050,191 Operating transfers out (1,254,599) (16,472) IITOTAL OTHER FINANCING SOURCES (USES) (164,819) (7,472) 10,846,270 1 ,050,191 REVENUES AND OTHER SOURCES II OVER (UNDER) EXPENDITURES (342,202) 53,840 229,475 (228,798) FUND BALANCE AT BEGINNING OF YEAR 416,694 43,393 200,813 12,159 II FUND BALANCES AT END OF YEAR $ 74,492 $ 97,233 $ 430,288 $(216,639) II -26- See accompanying notes II II II TOTALS (MEMORANDUM ONLY) I1986 1985 $4,663,092 $4,018,210 II 470,177 532,701 120,195 138,302 148,740 138,074 I 532,997 637,157 93,370 128,409 1,938 11 ,611 I27,024 29,940 6,057,533 5,634,404 II 1 ,221 ,176 954,086 1 ,737,503 1 ,388,760 2,416,612 1 ,449,019 484,851 512,504 453,408 373,412 78,966 67,919 II10,516,427 377,608 579,859 619,506 II 127,273/ - 191 ,714 261,599' II18,069,388 5,742,814 (,(,0 (12,011 ,855) (108,410) II 10,650,778 - ' 531,889 195,000 - 1,617,574 796,348 (1 ,271,071) (855,990) II11 ,724,170 (59,642) I (287,685) (168,052) I673,059 698,641 II $ 385,374 $ 530,589 I to financial statements. -27- :I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGETED AND ACTUAL - GENERAL, SPECIAL 11 REVENUE AND DEBT SERVICE FUND TYPES CITY OF FRIENDSWOOD, TEXAS I Years ended September 30, 1986 and 1985 GENERAL FUND II VARIANCE - FAVORABLE BUDGET ACTUAL (UNFAVORABLE) IIREVENUES Taxes $3,527,000 $3,632,321 $105,321 Charges for services 504,711 470,177 (34,534) Fines and forfeitures 145,000 120,195 (24,805) II Licenses and permits 171 ,000 148,740 (22,260) Intergovernmental 36,000 63,286 27,286 Interest 70,000 56,155 (13,845) Insurance settlements - 1 ,938 1 ,938 II Other revenues 5,000 18,502 13,502 TOTAL REVENUES 4,458,711 4,511 ,314 52,603 I EXPENDITURES Current IIGeneral government 1 ,125,391 1 ,221 ,176 (95,785) Public safety 1 ,764,581 1 ,737,503 27,078 Public works 735,749 718,312 17,437 ' Sanitation 490,711 484,851 5,860 Culture and recreation 456,679 447,889 8,790 Health and welfare 69,500 78,966 (9,466) Debt serviceII Principal, interest and fees TOTAL EXPENDITURES 4,642,611 4,688,697 (46,086) ' REVENUES OVER (UNDER) EXPENDITURES (183,900) (177,383) 6,517 ' OTHER FINANCING SOURCES (USES) Refunding bonds - Series 1986 Transfers (annexation WCID #108) 336,397 336,397 - Residual equity transfers 195,000 195,000 - Operating transfers in 558,383 558,383 - Operating transfers out (940,908) (1 ,254,599) (313,691) IITOTAL OTHER FINANCING SOURCES (USES) 148,872 (164,819) (313,691) REVENUES AND OTHER SOURCESII OVER (UNDER) EXPENDITURES (35,028) (342,202) (307,174) FUND BALANCE AT II BEGINNING OF YEAR 416,694 416,694 - FUND BALANCES AT END OF YEAR $ 381 ,666 $ 74,492 $(307,174) II -28II- II II I SPECIAL REVENUE FUNDS VARIANCE - DEBT SERVICE FUND VARIANCE - FAVORABLE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE) I . $1,035,000 $1 ,030,771 $ (4,229) I $ 60,600 $ 60,828 $ 228 ' 3,060 3,060 20,500 29,306 8,806 9,000 8,410 (590) 11 69,600 72,298 2,698 1 ,055,500 1 ,060,077 4,577 I 4,000 5,467 (1 ,467)' 14,000 5,519 8,481 I1,254,240 11,676,872 (10,422,632) 18,000 10,986 7,014 1 ,254,240 11 ,676,872 (10,422,632) II 51 ,600 61 ,312 9,712 (198,740) (10,616,795) (10,418,055) II 10,650,778 10,650,778 II198,740 195,492 (3,248) 9,000 9,000 - (16,472) (16,472) - I (7,472) (7,472) - 198,740 10,846,270 10,647,530 I44,128 53,840 9,712 - 229,475 229,475 II43,393 43,393 - 200,813 200,813 - I $ 87,521 $ 97,233 $9,712 $ 200,813 $ 430,288 $ 229,475 See accompanying notes to financial statements. II -29- :I COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE 11 - PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND 1 of 2 CITY OF FRIENDSWOOD, TEXAS I Year ended September 30, 1986 PROPRIETARY FIDUCIARY IIFUND TYPE FUND TYPE NON-EXPENDABLE ENTERPRISE TRUST IIOperating revenues Water and sewer sales and services $4,142,130 WCID #108 sewer fee 31,863 II Fees and penalties 7,734 Other 41,845 4,223,572 , Operating expenses Water department Personal services 240,972 II Supplies 29,424 Other services and charges 153,940 Maintenance 132,973 II557,309 Sewer department Personal services 137,289II Supplies 14,855 Other services and charges 118,971 Maintenance 165,517 Waste disposal fees 341,364 777,996 OPERATING INCOME IIBEFORE DEPRECIATION 2,888,267 Depreciation 539,261 OPERATING INCOME 2,349,006 Non-operating revenues (expenses) II Interest revenue 123,376 $ 812 Intergovernmental revenue - - Interest expense (83,129) - 40,247 812 II INCOME BEFORE OPERATING TRANSFERS 2,389,253 812 Operating transfers in 195,408 II - Operating transfers out (541,911) - (346,503) - I NET INCOME 2,042,750 812 II -30- II II II II TOTALS II (MEMORANDUM ONLY) 1986 1985 II $4,142,130 $2,002,974 II 31,863 95,932 7,734 5,001 41,845 889 4,223,572 2,104,796 II II 240,972 160,084 29,424 28,847 153,940 139,511 I132,973 39,655 557,309 368,097 ' 137,289 115,142 14,855 11,455 118,971 142,977 I 165,517 136,826 341,364 419,212 777,996 825,612 I 2,888,267 911 ,087 539,261 448,182 2,349,006 462,905 II124,188 102,585 - 500 (83,129) (92,475) 41,059 10,610 2,390,065 473,515 II195,408 - (541,911) (122,000) II (346,503) (122,000) 2,043,562 351 ,515 IISee accompanying notes to financial statements. II i -31- I COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE 11 - PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND 2 of 2 1 PROPRIETARY FIDUCIARY FUND TYPE FUND TYPE NON-EXPENDABLE ENTERPRISE TRUST Retained earnings/fund balance at beginning of year 2,688,852 75,323 RETAINED EARNINGS/FUND BALANCE AT END OF YEAR $4,731 ,602 $76,135 I 1 I I 1 I I 1 -32- I 1 I TOTALS (MEMORANDUM ONLY) 1986 1985 2,764,175 2,412,660 I $4,807,737 $2,764,175 I I I I I I I I See accompanying notes to financial statements. I I I -33- :I COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND11 CITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 1 PROPRIETARY FIDUCIARY IIFUND TYPE FUND TYPE NON-EXPENDABLE ENTERPRISE TRUST IISOURCE OF WORKING CAPITAL Operations Net income $2,042,750 $ 812 II Expenses not requiring current outlay of financial resources Depreciation 539,261 - IIWorking capital provided from operations 2,582,011 -812 Contributed capital - WCID #108 2,409,855 - 4,991,866 ---N12 II USES OF WORKING CAPITAL Equity transfers out 195,000 - Acquisition of property, plant and equipment 3,460,892 - II 2 Retirement of long-term debt 120000 - 3,775,892 - INCREASE (DECREASE) IN WORKING CAPITAL $1,215,974 $ 812 I ELEMENTS OF NET INCREASE (DECREASE) IN WORKING IICAPITAL Cash - restricted and unrestricted $ (40,686) $ 812 Accounts receivable 91 ,974 - I Accrued interest income (5,757) - Due from other funds (601) - Accounts payable (16,310) - Customer meter deposits 5,717 - II Deferred tap revenues 1 ,200,000 - Due to other funds (13,816) - Accrued expenses (including interest) (4,547) - I INCREASE (DECREASE) IN WORKING CAPITAL $1 ,215,974 $ 812 II II 1 -34- ' II II I TOTALS I (MEMORANDUM ONLY) 1986 1985 I II $2,043,562 $ 351 ,515 539,261 448,182 I 2,582,823 799,697 2,409,855 - ' 4,992,678 799,697 195,000 190,000 II 3,460,892 878,562 120,000 120,000 3,775,892 1 ,188,562 II $1 ,216,786 $ (388,865) I $ (39,874)4 $ 491 ,119 91 ,974 188,620 I (5,757) 5,272 (601) 115 (16,310) 33,377 I 5,717 2,838 1 ,200,000 (1 ,200,000) (13,816) 85,693 t (4,547) 4,101 $1,216,786 $ (388,865) IISee accompanying notes to financial statements. I 1 I I -35- I NOTES TO FINANCIAL STATEMENTS CITY OF FRIENDSWOOD, TEXAS 11 September 30, 1986 1. ORGANIZATION The city of Friendswood, Texas was incorporated and adopted a Home Rule Charter on October 15, 1960. The charter provided for a Mayor-Council form of city government. This was amended on October 16, 1971 to provide for a City Council-City Manager form of city government. ' 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. DESCRIPTION OF FUNDS AND ACCOUNT GROUPS ' The City of Friendswood's accounts 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 by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses. Government resources are allocated to and accounted for in individual funds based upon the purposes from which they are to be spent and the means by which spending activities are con- trolled. The City uses six funds and two account groups described below: GOVERNMENTAL FUND TYPES General Fund 1 The General Fund is used to account for all financial transactions which are not accounted for in another fund. The primary sources of revenue of the General Fund are property taxes, sales and use taxes, charges for sanitation services, franchises, permits, and fines and forfeitures. Primary expend- itures are for general government, public safety, public works, sanitation, culture and recreation, and health and welfare. , Debt Service Fund The Debt Service Fund is used to account for the payment of principal and interest on all general long-term debt of the city. The primary source of revenue for debt service is general property taxes. Special Revenue Funds The Special Revenue Funds are used to account for Revenue Sharing entitle- ments received from the Federal Government under the State and Local Fiscal Assistance Act of 1972. Capital improvements are charged to expenditures in the accounts of this fund and capitalized in either the Water and Sewer Fund or General Fixed Assets Group of Accounts. They are also used to account for Parks and Recreation rental, mowing revenues and fine arts programs. ' -36- 1 NOTES TO FINANCIAL STATEMENTS - 2 A. DESCRIPTION OF FUNDS AND ACCOUNT GROUPS (Continued) ' Capital Projects Fund The Capital Projects Fund is used to account for the receipt and expendi- ture of resources used for acquisition and construction of major capital facilities. The principal resources of the Capital Projects Fund are grants, certificates of obligation, long-term debt and interfund transfers. PROPRIETARY FUND TYPE ' Enterprise Fund The Enterprise Fund is established to account for operations of the Water and Sewer Department and the construction of related facilities. The fund ' is intended to be self-supporting through user charges. FIDUCIARY FUND TYPES Trust Fund ' The Trust Fund is used to account for assets held by the City in a trustee capacity for individuals and private organizations. The Non-Expendable Trust Fund (1776 Park Trust Endowment Fund) is used to ' account for the legally restricted non-expendable 1776 Park land trust corpus and the legally restricted non-expendable 1776 Park maintenance endowment cash trust corpus. ACCOUNT GROUPS General Fixed Assets Account Group The General Fixed Assets Account Group is used to account for the Cityts land, buildings, improvements, and equipment except those recorded in the Enterprise Fund or held in Trust. Such assets are acquired by transfer from other funds and are recorded at cost. No depreciation is recorded on these assets. ' General Long-Term Debt Account Group The General Long-Term Debt Account Group is used to account for general obligation bonds and certificates of obligation (excluding liabilities of the Enterprise Fund) . ' -37- NOTES TO FINANCIAL STATEMENTS - 3 11 B. MEASUREMENT FOCUS 11 Governmental (General, Special Revenue, Debt Service, and Capital Projects) fund types are accounted for on a "spending" or "financial flow" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets and the reported fund balance provides an indication of available spendable or appropriable resources. Operating statements for governmental fund types report increases and decreases in available spendable resources. Proprietary (Enterprise) fund types are accounted for on an "income deter- mination" or "cost of services" measurement focus. Accordingly, all assets and all liabilities are included in their balance sheets, and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements for proprietary fund types report increases and decreases in total economic net worth. , Fiduciary funds are accounted for as either governmental or proprietary, depending upon their nature. Non-expendable trust funds are accounted for as proprietary fund types. ' C. BASIS OF ACCOUNTING MODIFIED ACCRUAL BASIS OF ACCOUNTING ' All governmental funds and Non-Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recog- nized in the accounting period in which they become measurable and available as net current assets. Property taxes levied for the current fiscal year are "available" and are recognized as revenue at that time, even though col- lectible in the period subsequent to levy, if (1) their ultimate collect- ibility is reasonably assured, net of reasonably estimated losses and (2) they are collected within sixty (60) days to finance current period expend- itures. Intergovernmental revenue in the Special Revenue Funds are suscep- tible to accrual under the modified accrual basis of accounting. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. The treatment of specific revenue and expenditures items is described below: (1) General property taxes are recorded when they become available for current period expenditures. Property taxes receivable that are not currently available have been recorded as deferred revenues at September 30, 1986. (2) Insurance premiums are charged to expenditures when paid. 1 -38- NOTES TO FINANCIAL STATEMENTS - 4 C. BASIS OF ACCOUNTING (Continued) (3) Sick pay is accrued, and one half of any cumulative sick pay is pay- able to the employee upon termination. Unpaid vacation is recorded as ' it accrues and cannot be carried forward to the following year without City Manager approval. Amounts accrued in these financial statements represent the unused portion of vacation at September 30, 1986. Lon- gevity begins to accumulate after one year of employment, and is paid each December. Vacation and Longevity are considered current and there- fore are accrued totally in the General and Enterprise Funds. General ' Fund accruals for sick pay represent only those amounts considered current, the balance being accrued in General Long-Term Debt. As of September 30, 1986, accrued sick pay, vacation and longevity pay were as follows: ' Fund Sick Pay Vacation Lon evit Total General Fund $ 13,404 V7777 8,872 $ 59,349 Enterprise Fund 13,376 2,632 2,600 18,608 $ 26,780 $ 39,705 $ 11,472 $ 77,957 ' (4) Principal and interest on general long-term debt is recognized when due. ' (5) Supplies inventories are charged to expenditures when purchased. (6) Franchise fees, fines, licenses and permits, and sales tax are recog- nized when received. Sanitation fees and Revenue Sharing entitlements are recorded when earned. (7) Investment earnings are not accrued in the governmental fund types and ' Non-expendable Trust and Agency Funds. Earnings are recorded upon maturity of investments. Cash investments are therefore stated at their principal value. ' ACCRUAL BASIS OF ACCOUNTING The accrual basis of accounting is followed in all Proprietary funds and Non-expendable Trust Funds. Under the Accrual basis of accounting, revenues are recognized when earned, and expenses are recorded when incurred. ' The service revenues of four utility cycles are based upon service rates authorized by the City Council and generated via bimonthly billings to customers. Earned, but unbilled, revenues are accrued and reported in the financial statements as unbilled receivables. ' -39- :I NOTES TO FINANCIAL STATEMENTS - 5 I D. BUDGETS I Procedures in establishing budgetary data reflected in the financial state- II ments are as follows: (1) On or before the first day of August of each year, the City Manager IIshall submit to the Council a proposed budget and an accompanying message. The Council shall review the proposed budget and revise as deemed appropriate prior to general circulation for public hearing. IIThe Council shall adopt the budget by ordinance on one reading on or before the 15th day of September. Adoption of the budget requires an affirmative vote of at least a majority of all the members of Council. Adoption of the budget shall constitute appropriations of the amounts II specified therein as expenditures from the funds indicated and shall constitute a levy of the property tax therein proposed. Council may amend the budget before adoption provided that no amendment to the IIbudget shall increase the authorized expenditures to an amount greater than the total of estimated income plus funds available from prior years. (2) If during the fiscal year the City Manager certifies that there are II available for appropriation revenues in excess of those estimated in the budget, the Council by ordinance may make supplemental appropri- II ation for the year up to the amount of such excess. (3) At any time during the fiscal year, the City Manager may transfer part I or all of any unencumbered appropriation balance among programs within a department, division, or office and, upon written request by the City Manager, the Council may by ordinance transfer part or all of any unencumbered appropriation balance from one department, office or IIagency to another. The legal level of control is the total approved budget for each fund. (4) Limitations: No appropriation for debt service may be reduced or II transferred, and no appropriation may be reduced below any amount required by law to be appropriated or by more than the amount of the IIunencumbered balance thereof. (5) Legally adopted budgets for the General, Special Revenue, Debt Service, and Enterprise Funds are prepared on a basis consistent with generally IIaccepted accounting principles (GAAP) . I 1 -40- i NOTES TO FINANCIAL STATEMENTS - 6 1 D. BUDGETS (Continued) ' (6) Every appropriation, except an appropriation for a capital expend- iture, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure shall continue in force until the purpose for which it was made has been accomplished or abandoned; the purpose of any such appropriation shall be deemed abandoned if three years pass without any disbursement from or encumbrance of the appropriation. Encum- brances outstanding at year end are included as expenditures for the current year. ' The City of Friendswood has complied with all budget requirements for the year ended September 30, 1986. E. FIXED ASSETS Fixed assets are stated at cost or, if the cost is not determinable, at ' estimated cost. Donated fixed assets are recorded at their estimated fair value on the date received. Costs incurred for the purchase or construction of general fixed assets are recorded as capital outlay expenditures in the General and Capital Projects Funds. All such costs are capitalized in the ' General Fixed Assets Account Group. Amounts expended for property, plant and equipment in the Enterprise Fund are capitalized in the fixed asset accounts within that fund. Public domain fixed assets such bridges, roads, drainage systems, etc., are capitalized along with other general fixed assets. ' Depreciation of all exhaustible fixed assets used by the Enterprise Fund is charged as an expense against its operations. Allowance for depreciation is reported in the Enterprise Fund balance sheet. Depreciation has been provided over the estimated useful lives using the straight-line method. ' The estimated useful lives are as follows: Assets Life ' Equipment 5-10 years Water and Sewer System 40-50 years ' No depreciation is provided for the general fixed assets of the City. F. DEBT SERVICE 1 The ad valorem tax rate is allocated each year between the General Fund and the Debt Service Fund. The full amount estimated to be required for debt ' service on general obligation debt is provided by the debt service tax together with interest earned in the Debt Service Fund. Enterprise Fund long-term debt requirements are provided from net revenues of the Fund. 1 -41- I NOTES TO FINANCIAL STATEMENTS - 7 11 G. GENERAL PROPERTY TAXES All taxes due the City on real or personal property are payable at the Office of the City Assessor-Collector and may be paid at any time after the tax rolls for the year have been completed and approved, which is no later than October 1. Taxes are due by February 1, and all taxes not paid prior to this date are deemed delinquent and are subject to penalty and interest. All property located within the City limits on the first day of January of each year are charged with a special lien in favor of the City from such date for taxes due thereon. H. "MEMORANDUM ONLY" CAPTIONS The "memorandum only" captions on the total columns of the combined state- ments indicate that totals are presented only for overview informational purposes. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. I. ALLOWANCES ' Allowance for doubtful accounts has been recorded at September 30, 1986 as follows: ' Fund Type of Account Amount Enterprise Fund Water and Sewer billings $20,000 1 3. INTERFUND RECEIVABLES AND PAYABLES The following is a summary of amounts due from and due to other funds: ' Due From Due To General Fund Capital Projects Fund $200,000 $ Debt Service Fund 4,670 - Enterprise Fund 13,816 218,486 - Capital Projects Fund General Fund - 200,000 Debt Service Fund General Fund - 4,670 Enterprise Fund General Fund - 13,816 TOTAL ALL FUNDS $218,486 $218,486 -42- 1 NOTES TO FINANCIAL STATEMENTS - 8 4. PENSION PLAN The City participates in the Texas Municipal Retirement System. All full time employees are covered by the pension plan. The date of the most recent actuarial valuation is December 31 , 1985. The valuation was based on the plan of benefits in effect on January 1, 1986. ' The actuarial cost method used was the Unit Credit Actuarial Cost Method. The unfunded accrued liability is being amortized with a level percent of payroll over a period of 25 years which began January, 1986. Total pension payments for the year ended September 30, 1986 were: $59,321 City Contribution Rates (as a percent of payroll) ' 1986 1985 Normal cost contribution rate 2.43% 2.31% Prior service contribution rate .68% .41% ' Total retirement contribution rate 3.11% 2.72% Actuarial Present Value of Accrued Benefits December 31, December 31 , ' Vested 1985 1984 a. Annuitants $ 24,074 $ 23,685 b. Nonretired members 837,273 548,336 ' Nonvested 182,671 131,353 Total $1,044,018 $703,374 Total Assets (book value) $ 751 ,832 $565,766 Unfunded Accrued Liability $ 292,186 $137,608 There have been no changes in the actuarial cost method or the actuarial assump- tions since the previous valuation. The assumptions were developed from the ' experience of the System. The withdrawal and payroll increase assumptions also reflect the experience of the City. The payroll was assumed to increase 5% per year. 1 ' -43- I NOTES TO FINANCIAL STATEMENTS - 9 4. PENSION PLAN (Continued) Since the System is of the money-purchase type, the interest earned by the System and realized investment gains and losses are distributed annually to the accounts of the members and the municipalities. Gains (losses) from other sources decrease (increase) the unfunded accrued liability and are thus amor- tized using a spread method. There has been no change in the treatment of actuarial gains and losses since the previous valuation. Because of the money purchase nature of the System, there is no need for an interest rate assumption in valuing the actuarial present value of accrued benefits for nonretired members. For annuitants, the actuarial present value of benefits is calculated using a 5% interest rate assumption. The 5% assump- tion is also used in calculating the prior service contribution rate. December 31, December 31, 1985 1984 Excess vested benefits over (under) book value of assets $109,515 $ 6,255 1 5. LONG-TERM DEBT Changes in Bonded Debt of the City during the year ended September 30, 1986 are summarized as follows: General Long-term Revenue Debt Bonds Total Balance at October 1, 1985 $ 8,046,000 $1,490,000 $ 9,536,000 1 Debt retired (10,4186,000) (120,000) 10,606,000 Debt issued 10,650,778 - 10,650,778 , Debt assumed 2,440,000 - 2,440,000 BALANCE AT SEPTEMBER 30, 1986 $10,650,778 $1,370,000 $12,020,778 Above figures do not include leases and accrued Employee benefits. I 1 1 I NOTES TO FINANCIAL STATEMENTS - 10 II II 5. LONG-TERM DEBT (Continued) I Long-Term debt at September 30, 1986 is comprised of the following: Principal Balance Due I Balance Within One Description Sept. 30, 1986 Year IIGeneral Obligation Bonds Refunding Bonds, Series 1986 $10,650,778 $585,000 IITOTAL 10,650,778 585,000 Capital Leases IComputer Lease 36,827 31 ,234 Radio Lease 21,165 4,151 IITOTAL 57,992 35,385 Revenue Bonds IIWaterworks and Sanitary Sewer System Revenue Bonds, Series 1969 due in II installments of $20,000 to $50,000 through March 1 , 1999, interest at 6.125 to 6.50 percent. 465,000 25,000 IIWaterworks and Sanitary Sewer System Revenue Bonds, Series 1979 due in installment of $5,000 to $100,000 I through March 1 , 1996, interest at 5.50 to 6.50 percent 905,000 100,000 IITOTAL 1 ,370,000 125,000 Accrued Employee Benefits payable when earned or upon IIemployee termination. 161,915 TOTAL IILONG-TERM DEBT $12,240,685 $745,385 II II -45- 1 NOTES TO FINANCIAL STATEMENTS - 11 11 5. LONG-TERM DEBT (Continued) 11 The total Long-Term debt of the City (governmental and proprietary funds) by I maturity date is as follows: Year Ending Total IISept. 30 Principal Interest Total 1987 $ 745,385 $ 770,167 $ 1,438,214 1988 795,213 700,893 1 ,426,081 II 1989 785,142 658,271 1,380,888 1990 805,723 611,853 1,362,776 1991 846,529 561,039 1,360,662 II1992 925,000 505,003 1 ,391 ,087 1993 970,000 443,253 1 ,382,231 1994 1 ,025,000 376,278 1,377,900 II1995 995,000 306,979 1,286,398 1996 980,000 237,629 1,207,385 1997 1 ,035,000 165,093 1 ,192,590 1998 845,000 96,634 937,040 11 1999 885,000 32,844 916,313 2000 310,834 559,166 870,000 2001 55,898 114,102 170,000 2002 27,209 62,791 90,000II 2003 24,993 65,007 90,000 2004 21,844 63,156 85,000 $12,078,770 $6,330,158 $17,964,565 II EMPLOYEE BENEFITS 161,915 II TOTAL GENERAL ILONG-TERM DEBT $12,240,685 11 II II II -46- I NOTES TO FINANCIAL STATEMENTS - 12 5. LONG-TERM DEBT (Continued) In the 1985/86 year, the City refunded its outstanding debt with the proceeds from the Refunding Bonds - Series 1986. The following is a list of those debts that were refunded. ' Description Amount Refunded Waterworks and Sewer System Unlimited Tax Bonds, Series 1962. $ 150,000 ' Waterworks and Sewer System Unlimited Tax Bonds, Series 1963. 57,000 Sewer Improvement Bonds, Series 1967. 30,000 ' General Obligation Refunding Bonds, Series 1969. 109,000 ' General Obligation Bonds, Series 1973. 30,000 Drainage Improvement Bonds, Series 1973. 100,000 General Obligation Bonds, Series 1974. 625,000 Street Improvement Bonds, Series 1977. 1 ,195,000 General Obligation Bonds, Series 1979. 270,000 ' Street Imrpovement Bonds, Series 1982. 1 ,400,000 Waterworks and Sewer System Combination ' Tax and Revenue Bonds, Series 1964. 375,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1970. 180,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1970-A. 540,000 IWaterworks and Sewer System Combination Tax and Revenue Refunding Bonds, ' Series 1972. 660,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967. 100,000 11 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967-A. 610,000 I 1 -47- I NOTES TO FINANCIAL STATEMENTS - 13 11 5. LONG-TERM DEBT (Continued) Description Amount Refunded Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1972. 510,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1974. 690,000 ' WCID #108, Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1970-A. 265,000 WCID #108, Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1971. 495,000 WCID #108, Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1971-A. 995,000 WCID #108, Waterworks and Sewer System ' Combination Tax and Revenue Bonds, Series 1971-A 435,000 WCID #108, Waterworks and Sewer System Unlimited Tax and Revenue Bonds, Series 1971-A 175,000 Total Bonds 9,996,000 Certificate of Obligation, Series 1982. 16,000 ' Certificate of Obligation, Series 1983. 20,000 36,000 11 Total Debt Refunded $10,032,000 The above debt is considered retired through defeasance. Total debt service comparison: (Principal & Interest) Refunding Bonds - Series 1986 $16,528,345 Old Issues refunded by above 17,076,516 Debt service reduction $ 548,171 11 -48- I I NOTES TO FINANCIAL STATEMENTS - 14 II II 6. FIXED ASSETS IIA summary of the changes in general fixed assets for the year ended September 30, 1986 follows: I Balance Balance at Sept. 30, 1985 Additions Retirements Sept. 30, 1986 I Land $ 906,049 $ 5,679 $ _ $ 911 ,728 Buildings 981 ,673 31,991 1 ,013,664 Improvements 6,060,690 976,585 - 7,037,275 II Equipment 1 ,522,493 349,899 4,200 1 ,868,192 Construction in progress 372,299 1 ,692,833 910,282 1,154,850 IITOTAL $9,843,204 $3,056,987 $ 914,482 $11,985,709 A summary of the changes in Enterprise Fund fixed assets for the year ended September 30, 1986 follows: I Balance Balance at Sept. 30, 1985 Additions Retirements Sept. 30, 1986 Land $ 135,387 $ 1 ,675 $ - $ 137,062 II Plant and equipment 4,832,582 412,104 - 5,248,686 Plant and equipment Blackhawk 9,255,084 - - 9,255,084 II Water and sewer lines 2,707,891 2,470,246 _ 5,178,137 Drainage 608,329 562,735 1 ,171 ,064 Storm sewers 637,671 - - 637,671 Construction in IIprogress 625,844 974,753 960,620 639,977 TOTAL 18,802,788 4,421 ,513 960,620 22,263,681 II Less allowance for depreciation 2,724,092 539,262 - 3,263,354 II NET PROPERTY, PLANT AND EQUIPMENT $16,078,696 $3,882,251 $ 960,620 $19,000,327 11 II II -49- NOTES TO FINANCIAL STATEMENTS - 15 11 7. COMMITMENTS 1 A. On October 1 , 1981 the City entered into a contract with the Friendswood Volunteer Fire Department, Inc. The Department shall furnish all fire suppression, rescue and emergency medical services, utilizing apparatus and equipment owned by the City to all persons and property located within the corporate limits of the City, or to persons and property located outside the City when approved by Council. The City agrees to (1) provide the fire fighting equipment and facilities for the use by the Department in fighting fire and performing emergency medical services, (2) to provide funds for the capital equipment, operation and maintenance of the Department in accordance with the annual budget as approved by Council, and (3) to provide dispatch services for and on behalf of the Department. B. The City entered into a waste disposal agreement with Harris County Water Control and Improvement District No. 108 on October 21, 1971 by which the City provides sewer treatment for the District. The District pays an amount equal to 85 percent of its residential sewer charges for each month. The City agrees not to charge the District additional amounts for construction or operation of the Blackhawk Regional Waste Treatment Plant. C. The City entered into a contract with Gulf Coast Waste Disposal Authority on December 12, 1974 to manage the Blackhawk Regional Waste Treatment Plant. 11The City pays its pro rata share of the plant's operating expenses and a management fee as set by the Blackhawk Advisory Committee. The City paid $341,364 to the Authority for operation and management services for the year ended September 30, 1986. , D. The City renewed a contract with Best Waste Systems, Inc. on November 1, 1985 for the collection of garbage, trash, and other refuse within the corporate limits of the City twice each week. The contract expires on October 31 , 1988 with an option of renewal for an additional three years. The residential collection fee is set at $6.80 per month. Small commercial fees are $32.89 per month, and the fee varies for commercial container pick-up as to the size of the container. E. On February 22, 1985, the City entered into an agreement with Bay Area Land Company, Ltd. (Partnership) whereby Bay Area Land Company would advance the City $1 ,200,000 in tap revenue fees for the intended expansion of the Blackhawk Regional Waste Treatment Plant. The expansion is to serve property to be developed by Bay Area Land Company. The $1,200,000 payment is to be refunded out of connection fees that are levied and collected by the City from areas within the property during the term of the utility allocations. The City has pledged 90% of all such connection fees, excluding meter costs, collected, to the refunding of the $1,200,000 payment. As of September 30, 1986, the City had fulfilled its obligation on the contract and the deferred revenue was recorded as current in the 1985/86 Fiscal Year. 11 -50- NOTES TO FINANCIAL STATEMENTS - 16 7. COMMITMENTS (Continued) F. The City had the following construction commitments at September 30, 1986: COMMITMENT OUTSTANDING CONTRACT PERCENT AT CONTRACTOR DESCRIPTION AMOUNT COMPLETED SEPT. 30, 1986 ' Coenco, Inc. Box Culvert - Coward's Creek Drive $ 26,280 90% $ 2,628 ' Water Line - Oxnard Lane 18,903 95% 945 ' Lawrence W. Speck Friendswood Associates Public Pool 571 760 81% 108,636 616,952 112,209 Gulf Coast Waste ' Disposal Authority Blackhawk expansion 529,816 95% 26,490 TOTAL $1,146,768 $ 138,699 8. CONTRIBUTED CAPITAL In accordance with generally accepted accounting principles as described in AICPA Industry Audit Guide, "Audits of State and Local Governmental Units," proceeds of General Obligation Bonds used for financing Enterprise improvements ' have been recorded as Contributed Capital, and principal payments on such bonds by the Enterprise Fund have been treated as reductions of contributed capital as follows: ' Year Ended Sept. 30, 1986 1985 1 Contributed capital at beginning of year $12,551,492 $12,741 ,492 Add proceeds of general obligation bonds 2,409,855 of WCID #108 11 Deduct transfers out from Enterprise Fund for principal payments on GO bonds (195,000) (190,000) CONTRIBUTED CAPITAL AT END OF YEAR $ 14,766,347 $12,551 ,492 -51- I NOTES TO FINANCIAL STATEMENTS - 17 11 8. CONTRIBUTED CAPITAL (Continued) $195,000 which has been reported as an operating transfer in for the General Fund is reported as a reduction of contributed capital in the Enterprise Fund as noted above. Therefore, interfund transfers will not reconcile by this amount. ' 9. RESTATEMENT OF PRIOR YEAR BALANCES The following account balances from the 1984/85 fiscal year are restated for ' capital leases and accrued employee benefits that were originally accounted for as expenditures. AS REPORTED RESTATED NET CHANGE GENERAL FUND Accrued expenditures $ 272,980 $ 130,510 $(142,470) Fund Balance 263,245 405,715 142,470 -0- GENERAL FIXED ASSETS ' Equipment $1,410,671 $1,522,493 $ 111,822 Investment in general fixed assets 9,731,382 9,843,204 111,822 $ -0- GENERAL LONG-TERM DEBT ' Employee benefits payable $ -0- $ 142,470 $ 142,470 Lease obligations 73,840 88,419 14,579 $ 157,049 1 Amount to be provided 7,919,027 8,076,076 157,049 ' $ -0- 1 I -52- ' ' NOTES TO FINANCIAL STATEMENTS - 18 10. BLACKHAWK REGIONAL WASTE TREATMENT PLANT The City has entered into an arrangement with the City of Houston, Harris County MUD #55, and CDC, Inc. for operating and maintaining a joint waste treatment plant known as Blackhawk Regional Waste Treatment Plant. All participants share in the expenses of operation and maintenance based on their respective percentages for use and fixed costs. ' The percentages of ownership based on fund balances at September 30, 1986 are as follows: ' City of Friendswood 53.00% City of Houston 14.00% Harris County MUD #55 53.00% CDC, Inc. 16.00% 100.00% As of September 30, 1986 the following financial information was available from the operator: Total assets $87,023 I Total liabilities $127,419 Fund balance (deficit) (40,396) $87,023 Total revenues $408,062 ' Total expenses 448,459 Net (Loss) $(40,397) ' 11. CONTINGENCIES The City was involved in several pending lawsuits at September 30, 1986. A summary of the more significant of these follows: ' Cause numbers 124,065 and 124,066, both styled Boone, et al v. the City of Friendswood, et al. In these cases the plaintiffs have sued the City alleging that property owned by plaintiffs was assessed a value for tax purposes in excess of its true value. Plaintiffs seek to have this value reduced. These ' -53- I NOTES TO FINANCIAL STATEMENTS - 19 11 11 . CONTINGENCIES (Continued) cases are still pending and no prediction as to their outcome can be made at ' this time. Cause number 84-CV0331 , styled Joseph A. Germany, et ux vs. City of , Friendswood. In this case plaintiff seeks recovery for damages alleged to have occurred upon confiscation of property by the City for roadway purposes. Plaintiff seeks $102,000 in damages plus attorneys fees. It is estimated that , the City's liability exposure to be less than $20,000, if any. The City's management has indicated that it will contest each of these claims and is of the opinion that any liability resulting from such claims will not have a material effect on the financial statements of the City for the year ended September 30, 1986. 11 11 11 1 -54- INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES I -55- I I 1 1 1 1 I 1 I (This page intentionally left blank.) ' 1 I -56- ' 1 ' GENERAL FUND The General Fund accounts for the resources used to finance the fundamental operations of the City. It is the basic fund of the City and covers all activities for which a separate fund has not been established. 11 I 1 I 11 -57- !I GENERAL FUND EXHIBIT A-1 11 COMPARATIVE BALANCE SHEET CITY OF FRIENDSWOOD, TEXAS ' September 30, 1986 and 1985 1986 1985 ' ASSETS Cash - including certificates of deposit $ 21 ,586 $ 619,882 ' Receivables - net where applicable of allowances for doubtful accounts ' Property taxes 235,396 166,291 Accounts 108,454 46,128 Grantor agencies 3,314 1,982 ' Due from other funds 218,486 107 Prepaid expenses 18,910 10,979 , TOTAL ASSETS $ 606,146 $ 845,369 LIABILITIES AND FUND BALANCE LIABILITIES 1 Accounts payable $ 104,557 $ 134,664 Accrued expenditures (Note 9) 191,701 130,510 Deferred revenue 235,396 162,900 Due to other funds - 601 TOTAL LIABILITIES 531 ,654 428,675 ' FUND BALANCE Reserved for prepaid expenses 18,910 10,979 11 Unreserved Undesignated (Note 9) 55,582 405,715 TOTAL FUND BALANCE 74,492 416,694 TOTAL LIABILITIES AND FUND BALANCE $ 606,146 $ 845,369 1 -58- II GENERAL FUND EXHIBIT A-2 IISTATEMENT OF REVENUES - BUDGET AND ACTUAL II CITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 I 1986 VARIANCE - FAVORABLE 1985 I BUDGET ACTUAL (UNFAVORABLE) ACTUAL Taxes II General property $2,836,500 $2,811 ,888 $ (24,612) $2,368,625 Less homestead exemption 36,000 16,488 19,512 22,626 Net general property 2,800,500 2,795,400 ( 5,100) 2,345,999 II Sales 435,000 483,629 48,629 424,498 Franchise 290,000 352,186 62,186 273,184 Other 1 ,500 1 ,106 ( 394) 1 ,379 I TOTAL TAXES 3,527,000 3,632,321 105,321 3,045,060 Sanitation 504,711 470,177 (34,534) 532,701 IIFines and forfeitures 145,000 120,195 (24,805) 138,302 Licenses and permits 171 ,000 148,740 (22,260) 138,074 IInter-governmental revenues 36,000 63,286 27,286 155,014 IInterest income 70,000 56,155 (13,845) 99,345 Insurance settlements - 1 ,938 1 ,938 11 ,611 IOther 5,000 18,502 13,502 21 ,891 II TOTAL REVENUE BEFORE TRANSFERS $4,458,711 $4,511 ,314 $ 52,603 $4,141 ,998 1 1 II II II I -59- :I GENERAL FUND EXHIBIT A-3 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY FUNCTION 11 CITY OF FRIENDSWOOD, TEXAS II Years ended September 30, 1986 and 1985 1986 II VARIANCE - FAVORABLE 1985 ' BUDGET ACTUAL (UNFAVORABLE) ACTUAL I General Government Administration $ 935,541 $1 ,004,556 ' $ (69,015) $ 795,916 Municipal caurt 64,745 63,240 1 ,505 58,331 II co Engineering 50,800 60,222 ( 9,422) 19,459 cO Inspection 69,540 52,954 16,586 75,454 co Planning and zoning 4,765 40,204 (35,439) 4,926 IITOTAL GENERAL GOVERNMENT 1,125,391 1 ,221,176 (95,785) 954,086 Public Safety I' Police 1 ,327,288 1,311,697 15,591 1,160,752 F F-- Fire 402,849 380,752 22,097 195,315 f Humane 32,644 35,762 (3,118) 31,459 p Civil defense 1,800 9,292 (7,492) 1,234 II TOTAL PUBLIC SAFETY 1 ,764,581 1,737,503 27,078 1,388,760 Public Works IIfl Streets 664,249 643,305 20,944 501 ,339 f'i) Drainage 71 ,500 75,007 (3,507) 20,109 TOTAL PUBLIC WORKS 735,749 718,312 17,437 521 ,448 II / ')Sanitation 490,711 484,851 5,860 512,504 TOTAL SANITATION 490,711 484,851 5,860 512,504 1 Culture and Recreation II L -)' Library 207,913 211,930 ( 4,017) 192,899 P r - Parks and recreation 239,401 231,163 8,238 170,656 IIP n Youth needs/opportunity commission 2,165 1,934 231 1,647 p R _ Community activities 7,200 2,862 4,338 3,035 I TOTAL CULTURE AND RECREATION 456,679 447,889 8,790 368,237 Health and Welfare II Community counseling center 35,500 38,020 (2,520) 35,500 Ambulance 34,000 40,946 (6,946) 32,419 IITOTAL HEALTH AND WELFARE 69,500 78,966 (9,466) 67,919 TOTAL EXPENDITURES BEFORE TRANSFERS $4,642,611 $4,688,697 $ (46,086) $3,812,95411 1 -60- 1 I GENERAL FUND EXHIBIT A-4 ISTATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 1 of 5 I CITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 I 1986 VARIANCE - FAVORABLE 1985 I BUDGET ACTUAL (UNFAVORABLE) ACTUAL General Government I Administration Personal services $ 284,809 $ 297,300 $ (12,491) $ 272,595 Supplies 24,950 30,524 (5,574) 19,821 Other services and I charges 560,035 628,310 (68,275) 446,087 Maintenance 30,947 23,690 7,257 26,805 Capital outlay 34,800 24,732 10,068 30,608 I 935,541 1 ,004,556 (69,015) 795,916 Municipal Court I Personal services 57,095 58,453 (1 ,358) 55,215 Supplies 3,800 2,423 1 ,377 1 ,632 Other services and charges 3,125 1,289 1 ,836 810 II Maintenance 725 150 575 635 Capital outlay 925 (925) 39 64,745 63,240 1 ,505 58,331 IEngineering Other services and charges 50,800 60,222 (9,422) 19,459 II50,800 60,222 (9,422) 19,459 Inspections I Personal services 63,372 47,328 3,010 16,044 60,655 Supplies 3,968 958 2,143 Other services and I charges 1 ,250 1,203 47 1 ,335 Maintenance 950 998 (48) 2,370 Capital outlay - 415 (415) 8,951 69,540 52,954 16,586 75,454 II II II II -61- :I GENERAL FUND EXHIBIT A-4 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 2 of 5 Il CITY OF FRIENDSWOOD, TEXAS II Years ended September 30, 1986 and 1985 1986 I VARIANCE - FAVORABLE 1985 BUDGET ACTUAL (UNFAVORABLE) ACTUAL I General Government (continued) Planning and Zoning IIPersonal services $ 2,765 $ 32,200 $ (29,435) $ 2, 122 Supplies 200 649 (449) 338 Other services and charges 1 ,800 7,355 (5,555) 2,466 ' 4,765 40,204 (35,439) 4,926 TOTAL GENERAL IIGOVERNMENT 1 ,125,391 1 ,221,176 (95,785) 954,086 Public Safety Police ServiceII Personal services 1 ,029,158 1 ,020,428 8,730 900,210 Supplies 84,470 69,068 15,402 59,066 Other services and charges 45,110 41,174 3,936 44,942 II Maintenance 68,450 64,391 4,059 58,249 Capital outlay 100,100 116,636 (16,536) 98,285 1 ,327,288 1 ,311 ,697 15,591 1 ,160,75211 Fire Personal services 70,884 63,724 7,160 61 ,58411 Supplies 30,100 4,153 25,947 4,257 Other services and charges 39,130 122,971 (83,841) 105,897 IIMaintenance 38,960 6,787 32,173 3,621 Capital outlay 223,775 183,117 40,658 19,956 402,849 380,752 22,097 195,315 II 1 1 1 -62- ' II GENERAL FUND EXHIBIT A-4 I STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 3 of 5 II CITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 I1986 VARIANCE - FAVORABLE 1985 IBUDGET ACTUAL (UNFAVORABLE) ACTUAL Humane II Personal services $ 26,624 $ 27,491 $ (867) $ 24,682 Supplies 4,070 4,351 (281) 3,611 Other services and II charges 1 ,050 1 ,400 (350) 1 ,188 Maintenance 900 2,520 (1 ,620) 1 ,978 Capital outlay - - - - 32,644 35,762 (3,118) 31 ,459 1 Civil Defense Personal services - - - - ' Supplies 600 593 7 151 Other services and charges 400 121 279 51 I Maintenance 800 8,578 (7,778) 1 ,032 Capital outlay - Disaster training - - - - 1 ,800 9,292 (7,492) 1 ,234 ITOTAL PUBLIC SAFETY 1 ,764,581 1 ,737,503 27,078 1 ,388,760 I Public Works Streets Personal services 326,007 342,676 (16,669) 279,962 Supplies 101 ,442 87,316 14,126 87,357 II Other services and charges 91,350 108,078 (16,728) 78,991 Maintenance 35,050 56,880 (21 ,830) 44,070 1 Capital outlay 110,400 48,355 62,045 10,959 664,249 643,305 20,944 501 ,339 IIDrainage Personal services - - - - Supplies 1 ,500 90 1 ,410 76 Other services and II charges - - - - Maintenance 20,000 24,917 (4,917) 20,033 Capital outlay 50,000 50,000 - - ' 71,500 75,007 (3,507) 20,109, TOTAL PUBLIC WORKS 735,749 718,312 17,437 521 ,448 -63- :I GENERAL FUND EXHIBIT A-4 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 4 of 5 II CITY OF FRIENDSWOOD, TEXAS II Years ended September 30, 1986 and 1985 1986IIVARIANCE - FAVORABLE 1985 BUDGET ACTUAL (UNFAVORABLE) ACTUAL 1 Sanitation Contract Services $ 490,711 $ 484,851 $ 5,860 $ 512,504 I TOTAL SANITATION 490,711 484,851 5,860 512,504 Culture and Recreation IILibrary Personal services 150,273 149,690 583 133,542 Supplies 29,775 29,931 (156) 32,508 IIOther services and charges 24,761 21 ,659 3,102 24,528 Maintenance 3,104 4,250 (1,146) 2,178 Capital outlay - 6,400 (6,400) 143 II 207,913 211 ,930 (4,017) 192,899 Parks and Recreation Personal services 94,781 109,268 (14,487) 78,367 II Supplies 53,220 36,222 16,998 32,567 Other services and charges 37,900 49,133 (11 ,233) 23,391II Maintenance 18,900 19,043 (143) 20,136 Capital outlay 34,600 17,497 17,103 16,195 239,401 231 ,163 8,238 170,656 1 Youth Needs and Opportunity Personal services 1 ,615 69 1,546 1 ,637 Supplies 50 - 50 10 II Other services and charges 500 1,865 (1,365) - I 2,165 1 ,934 231 1 ,647 Community Activities Supplies 350 923 (573) 205 II Maintenance 2,500 1 ,922 578 - Other services and charges 4,350 17 4,333 2,830 7,200 2,862 4,338 3,035II TOTAL CULTURE AND RECREATION 456,679 447,889 8,790 368,237 II -64- 1 I GENERAL FUND EXHIBIT A-4 IISTATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 5 of 5 ICITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 I 1986 VARIANCE FAVORABLE 1985 II BUDGET ACTUAL (UNFAVORABLE) ACTUAL Health and Welfare I Community counseling center Contract services $ 30,000 $ 30,000 $ - $ 30,000 Other services and II charges 5,500 8,020 (2,520) 5,500 35,500 38,020 (2,520) 35,500 I Ambulance Supplies 13,750 32 13,718 41 Other services and I charges - - - - Maintenance 11 ,250 1 ,919 9,331 6,566 Contract services 9,000 34,000 (25,000) 25,748 Capital outlay - 4,995 (4,995) 64 I 34,000 40,946 (6,946) 32,419 TOTAL HEALTH AND 1 WELFARE 69,500 78,966 (9,466) 67,919 EXPENDITURES BEFORE II OPERATING TRANSFERS 4,642,611 4,688,697 (46,086) 3,812,954 OPERATING TRANSFERS OUT 940,908 1 ,254,599 (313,691) 796,348 II $5,583,519 $5,943,296 $ (359,777) $4,609,302 II II 11 I II II -65- I I 1 1 (This page intentionally left blank.) t 1 1 -66- 1 II I I 11 II IISPECIAL REVENUE FUNDS I These funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified pur- ' poses. Revenues and expenditures of the federal revenue sharing, parks and recreation, mowing, and fine arts programs are accounted for in these funds. I II II II II II 11 II II I -67- 1 SPECIAL REVENUE FUNDS EXHIBIT B-1 COMBINING BALANCE SHEET 11 CITY OF FRIENDSWOOD, TEXAS II September 30, 1986 with Comparative Totals for September 30, 1985 II REVENUE PARKS AND FINE ARTS TOTAL SHARING RECREATION MOWING COMMISSION 1986 1985 II ASSETS Cash $73,033 $ 9,955 $ 6,234 $ 1 ,323 $90,545 $30,371 II Accounts Receivable liens - - 7,113 - 7,113 - I Revenue sharing entitlement receivable - - - - - 16,964 II TOTAL ASSETS $73,033 $ 9,955 $13,347 $ 1,323 $97,658 $47,335 LIABILITIES AND FUND BALANCE II LIABILITIES I Accounts payable $ - $ - $ 425 $ - $ 425 $ 3,942 Due to other funds - - - - - - II TOTAL LIABILITIES - - 425 - 425 3,942 FUND BALANCES II Reserved for parks and IIprograms - 9,955 - 1,323 11 ,278 10,076 Unreserved 73,033 - 12,922 - 85,955 33,317 111 TOTAL FUND BALANCES 73,033 9,955 12,922 1,323 97,233 43,393 TOTAL LIABILITIES AND IIFUND BALANCES $73,033 $ 9,955 $13,347 $ 1 ,323 $97,658 $47,335 1 II II -68- ' II SPECIAL REVENUE FUNDS EXHIBIT B-2 ICOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ICITY OF FRIENDSWOOD, TEXAS Year ended September 30, 1986 II with Comparative Totals for year ended September 30, 1985 I REVENUE PARKS AND FINE ARTS TOTAL SHARING RECREATION MOWING COMMISSION 1986 1985 REVENUES II Charges for services $ - - - - -$ $ $ $ $ - Intergovernmental revenue 60,828 - - - 60,828 68,441 I Interest Income 1 ,917 721 422 - 3,060 1 ,536 Other revenues 8,410 8,410 8,049 ITOTAL REVENUES 62,745 721 8,832 - 72,298 78,026 EXPENDITURES Public works - - 5,467 - 5,467 2,205 IICulture and recreation 800 4,719 5,519 5,175 TOTAL EXPENDITURES - 800 5,467 4,719 10,986 7,380 IREVENUES OVER (UNDER) EXPENDITURES 62,745 (79) 3,365 (4,719) 61 ,312 70,646 IIOTHER FINANCING SOURCES (USES) Operating transfers in - - 3,000 6,000 9,000 5,000 I operating transfers out (16,472) - - - (16,472) (59,642) I TOTAL OTHER FINANCING SOURCES (USES) (16,472) - 3,000 6,000 ( 7,472) (54,642) IIREVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND I OTHER USES 46,273 (79) 6,365 1 ,281 53,840 16,004 Fund balances at beginning IIof year 26,760 10,034 6,557 42 43,393 27,389 Fund balances at end of year $73,033 $ 9,955 $12,922 $ 1 ,323 $97,233 $43,393 II II I -69- I SPECIAL REVENUE FUND (REVENUE SHARING) EXHIBIT B-3 COMPARATIVE BALANCE SHEET CITY OF FRIENDSWOOD, TEXAS ' September 30, 1986 and 1985 1 1986 1985 1 ASSETS Cash $ 73,033 $ 13,233 Revenue sharing entitlement receivable - 16,964 ' TOTAL ASSETS $ 73,033 $ 30,197 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ - $ 3,437 Due to other funds TOTAL LIABILITIES - 3,437 FUND BALANCE ' Unreserved 73,033 26,760 TOTAL LIABILITIES AND FUND BALANCE $ 73,033 $ 30,197 1 1 1 1 1 1 -70- 1 II SPECIAL REVENUE FUND (REVENUE SHARING) EXHIBIT B-4 IISTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL IICITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 II 1986 I VARIANCE - FAVORABLE 1985 BUDGET ACTUAL (UNFAVORABLE) ACTUAL II REVENUES Federal revenue sharing $60,600 $60,828 $ 228 $68,441 I Interest on investments - 1 ,917 1 ,917 999 OTHER FINANCING USES II Operating transfers out 60,600 16,472 44,128 59,642 REVENUES OVER OTHER IIFINANCING USES $ - 46,273 $46,273 9,798 II Fund balance at beginning of year 26,760 16,962 FUND BALANCE AT IIEND OF YEAR $73,033 $26,760 I II II II II II p -71- I SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-5 COMPARATIVE BALANCE SHEET 1 CITY OF FRIENDSWOOD, TEXAS September 30, 1986 and 1985 1 1 1986 1985 ASSETS Cash - restricted - including certificate of deposit $ 9,955 $ 10,034 TOTAL ASSETS $ 9,955 $ 10,034 1 FUND BALANCE ' Reserved for park expenditures $ 9,955 $ 10,034 1 TOTAL FUND BALANCE $ 9,955 $ 10,034 1 1 1 1 1 1 1 -72- 1 II SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-6 IISTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL IICITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 II II 1986 VARIANCE - IIFAVORABLE 1985 BUDGET ACTUAL (UNFAVORABLE) ACTUAL IIREVENUES Interest income $ - $ 721 $ 721 $ 470 Other revenue - IIdonations 8,000 - (8,000) 3,334 TOTAL REVENUES 8,000 721 (7,279) 3,804 I EXPENDITURES Culture and recreation Supplies 6,000 - 6,000 - II Other services and - charges - - 162 Maintenance 1 ,000 - 1 ,000 55 I Capital outlay 1 ,000 800 200 - 8,000 800 7,200 217 REVENUES OVER (UNDER) I EXPENDITURES $ - (79) $ (79) 3,587 I Fund balance at beginning of year 10,034 6,447 I FUND BALANCE AT END OF YEAR $ 9,955 $10,034 1 II II II II -73- I SPECIAL REVENUE FUND (MOWING) EXHIBIT B-7 COMPARATIVE BALANCE SHEET 11 CITY OF FRIENDSWOOD, TEXAS 11 September 30, 1986 and 1985 1 1 1986 1985 ASSETS 1 Accounts Receivable - Liens $ 7,113 $ - Cash - restricted 6,234 7,062 1 TOTAL ASSETS $13,347 $ 7,062 1 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 425 $ 505 TOTAL LIABILITIES 425 505 1 FUND BALANCE Unreserved 12,922 6,557 TOTAL FUND BALANCE 12,922 6,557 TOTAL LIABILITIES 1 AND FUND BALANCE $13,347 $ 7,062 1 1 1 1 1 1 -74- 1 I SPECIAL REVENUE FUND (MOWING) EXHIBIT B-8 IISTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL IICITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 II 1986 I VARIANCE - FAVORABLE 1985 BUDGET ACTUAL (UNFAVORABLE) ACTUAL I REVENUES Other revenue $ 1 ,000 $ 8,410 $ 7,410 $ 715 Interest on Investments - 422 422 67 IEXPENDITURES Public works II Other services and charges 4,000 5,467 (1 ,467) 2,205 REVENUES OVER (UNDER) I EXPENDITURES (3,000) 3,365 6,365 (1 ,423) OTHER FINANCING SOURCES I Operating transfers in 3,000 3,000 - 4,000 REVENUES AND OTHER SOURCES OVER IIEXPENDITURES $ - 6,365 $ 6,365 2,577 II Fund balance at beginning of year 6,557 3,980 I FUND BALANCE AT END OF YEAR $12,922 $ 6,557 II II I II I -75- I SPECIAL REVENUE FUND (FINE ARTS COMMISSION) EXHIBIT B-9 COMPARATIVE BALANCE SHEET 11 CITY OF FRIENDSWOOD, TEXAS September 30, 1986 and 1985 1 i 1986 1985 ASSETS ' Cash - restricted $ 1 ,323 $ 42 TOTAL ASSETS $ 1 ,323 $ 42 1 FUND BALANCE I Reserved for program expenditures $ 1,323 $ 42 TOTAL FUND BALANCE $ 1 ,323 $ 42 1 1 1 i 1 1 1 1 1 -76- 1 II SPECIAL REVENUE FUND (FINE ARTS COMMISSION) EXHIBIT B-10 II STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 1 CITY OF FRIENDSWOOD, -TEXAS Years ended September 30, 1986 and 1985 II 1986 I VARIANCE - FAVORABLE 1985 BUDGET ACTUAL (UNFAVORABLE) ACTUAL I REVENUES Other revenue $ - $ - $ - $ 4,000 I EXPENDITURES Programs 6,000 4,719 1 ,281 4,958 IREVENUES OVER (UNDER) EXPENDITURES (6,000) (4,719) 1 ,281 (958) IIOTHER FINANCING SOURCES Operating transfers in 6,000 6,000 - 1 ,000 11 REVENUES AND OTHER SOURCES OVER EXPENDITURES $ - 1 ,281 $ 1 ,281 42 II Fund balance at beginning g g of year 42 - II FUND BALANCE AT END OF YEAR $ 1 ,323 $ 42 II II II II II II -77- I I I 1 1 1 1 1 (This page intentionally left blank.) f 1 -78- ' I I I II II II II II II DEBT SERVICE FUND This fund is used to account for the accumu- lation of resources for and the payment of I principal and interst on general long-term debt of the City. II II II I II II II II I -79- I DEBT SERVICE FUND EXHIBIT C-1 COMPARATIVE BALANCE SHEET 11 CITY OF FRIENDSWOOD, TEXAS September 30, 1986 and 1985 1986 1985 ASSETS , Cash - including certificate of deposit $438,547 $199,491 Taxes receivable 92,885 71,408 TOTAL ASSETS $531 ,432 $270,899 LIABILITIES AND FUND BALANCE I LIABILITIES Due to other funds $ 4,670 $ 107 Deferred revenue 96,474 69,979 TOTAL LIABILITIES 101,144 70,086 FUND BALANCE Unreserved Designated for debt service 430,288 200,813 TOTAL FUND BALANCE 430,288 200,813 TOTAL LIABILITIES AND FUND BALANCE $531 ,432 $270,899 11 -80- ' II DEBT SERVICE FUND EXHIBIT C-2 IICOMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE IICITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 II I 1986 1985 II REVENUES Taxes $ 1 ,030,771 $ 973,150 Interest 29,306 27,028 IITOTAL REVENUES 1 ,060,077 1 ,000,178 II EXPENDITURES Principal retirement 10,516,427 377,608 Interest and fiscal charges 579,859 619,506 Bond insurance 127,273 - II Bond discounts 191 ,714 Other bond refunding expenses 261 ,599 IITOTAL EXPENDITURES 11,676,872 997,114 REVENUES OVER I (UNDER) EXPENDITURES (10,616,795) 3,064 OTHER FINANCING SOURCES Refunding bonds - Series 1986 10,650,778 - ' Transfers (annexation WCID #108) 195,492 - REVENUES AND OTHER FINANCING IISOURCES OVER EXPENDITURES 229,475 3,064 FUND BALANCE AT BEGINNING OF YEAR 200,813 197,749 IIFUND BALANCE AT END OF YEAR $ 430,288 $ 200,813 I II II II II -81- I I 1 I 1 I 1 1 (This page intentionally left blank.) 1 1 -82- ' 1 1 1 1 1 1 1 CAPITAL PROJECTS FUND 1 This fund is used to account for financial resources to be used for the acquisition and construction of major capital facilities. 1 1 1 1 i 1 1 1 1 1 1 -83- CAPITAL PROJECTS FUND EXHIBIT D-1 COMPARATIVE BALANCE SHEET 11 CITY OF FRIENDSWOOD, TEXAS September 30, 1986 and 1985 i 1986 1985 ASSETS Cash - including certificates of deposit $ 29,467 $ 52,621 Accounts receivable - State Grants 200,000 TOTAL ASSETS $ 229,467 $ 52,621 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 246,106 $ 40,462 Due to other funds 200,000 - TOTAL LIABILITIES 446,106 40,462 FUND BALANCE Designated for construction (216,639) 12,159 TOTAL LIABILITIES AND FUND BALANCE $ 229,467 $ 52,621 1 1 1 1 1 -84- ' CAPITAL PROJECTS FUND EXHIBIT D-2 COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ' CITY OF FRIENDSWOOD, TEXAS - Years ended September 30, 1986 and 1985 1986 1985 ' REVENUES Interest income $ 4,849 $ 500 State grants 408,883 101 ,202 Other revenue 112 413,844 101 ,702 ' EXPENDITURES Capital outlay 1 ,692,833 925,366 ' REVENUES UNDER EXPENDITURES (1 ,278,989) (823,664) OTHER FINANCING SOURCES Operating transfers in 1 ,050,191 791 ,348 REVENUES AND OTHER SOURCES UNDER EXPENDITURES (228,798) (32,316) IIFund balance at beginning of year 12,159 44,475 FUND BALANCE AT END OF YEAR $(216,639) $ 12,159 ' -85- 3 I 1 1 t I I (This page intentionally left blank.) ' -86- ' t I ENTERPRISE FUND ' The Enterprise Fund is established to account for operations which are intended to be self- supporting through user charges. The City of ' Friendswood operates the water and sewer system on this basis. ' -87- :1 ENTERPRISE FUND (WATER AND SEWER) COMPARATIVE BALANCE SHEET 11 CITY OF FRIENDSWOOD, TEXAS September 30, 1986 and 1985 1986 1985 I ASSETS CURRENT ASSETS I Cash - including certificates of deposit $ 188,739 $ 34,648 Accounts receivable - net allowance 1 for uncollectibles 469,134 377,160 Accrued interest 3,400 9,157 Due from other funds - 601 IITOTAL CURRENT ASSETS 661,273 421,566 RESTRICTED ASSETS IICash - including certificates of deposit 1 ,415,928 1 ,610,705 Blackhawk operating fund equity 43,871 75,408 1 ,459,799 1 ,686,113 I PROPERTY, PLANT, AND EQUIPMENT - at cost Land 137,062 135,387 IIBuildings, improvements, and equipment 21 ,486,642 18,041 ,557 Construction in progress 639,977 625,844 22,263,681 18,802,788 IILess accumulated depreciation 3,263,354 2,724,092 TOTAL PROPERTY, PLANT IIAND EQUIPMENT 19,000,327 16,078,696 I 1 TOTAL ASSETS $21,121,399 $18,110,967 1 II 1 II -88- ' II EXHIBIT E-1 II I II1986 1985 LIABILITIES AND FUND EQUITY IILIABILITIES Current liabilities (payable from current II assets) Accounts payable $ 97,551 $ 81 ,241 Accrued expenses 24,485 18,767 I Accrued interest Due to other funds 13,816 - TOTAL CURRENT LIABILITIES 14 6,704 2,556 10 7,875 7,883 II Current liabilities (payable from restricted assets) Deferred tap revenues - 1 ,200,000 II Current portion of revenue bonds Deposits 125,000 67,023 120,000 72,740 192,023 1 ,392,740 II Long-term liabilities Revenue bonds (net of current portion) 1 ,245,000 1 ,370,000 TOTAL LIABILITIES 1 ,579,579 2,870,623 II FUND EQUITY Blackhawk operating fund equity 43,871 75,408 II Contributed capital Municipality 14,766,347 12,551 ,492 14,810,218 12,626,900 II Retained earnings Reserved for construction 1 ,873,857 377,409 Reserved for revenue bond retirement 307,393 266,132 II• 4,731 ,602 Unreserved 2,550,352 2,045,311 2,688,852 TOTAL FUND EQUITY 19,541 ,820 15,315,752 IITOTAL LIABILITIES AND FUND EQUITY $21 ,121 ,399 $18,186,375 I II II I -89- :I ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-2 STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL II CITY OF FRIENDSWOOD, TEXAS II Years ended September 30, 1986 and 1985 1986 II VARIANCE - FAVORABLE 1985 BUDGET ACTUAL (UNFAVORABLE) ACTUAL II Operating revenues Water and sewer charges $2,888,911 $4,142,130 $1,253,219 $2,002,974 WCID #108 sewer fee 30,000 31,863 1,863 95,932 , II Fees and penalties 5,000 7,734 2,734 5,001 Other income 32,000 41 ,845 9,845 889 2,955,911 4,223,572 1 ,267,661 2,104,796 1 Operating expenses before IIdepreciation - See Exhibit E-3 1,280,500 1,335,305 (54,805) 1,193,709 OPERATING INCOME II BEFORE DEPRECIATION 1 ,675,411 2,888,267 1,212,856 911,087 Depreciation expense - 539,261 (539,261) 448,182 1 OPERATING INCOME 1 ,675,411 2,349,006 673,595 462,905 Non-operating income (expense) I Interest on investments 38,000 123,376 85,376 101,258 Intergovernmental revenue - - - 500 Interest expense (84,300) (83,129) 1 ,171 (92,475) I (46,300) 40,247 86,547 9,283 Income before operating I transfers (Note) 1,629,111 2,389,253 760, 142 472,188 Operating transfers in 195,408 195,408 - - Operating transfers (out) (541,911) (541,911) - (122,000) I NET INCOME $1,282,608 $2,042,750 $ 760,142 $ 350,188 1 Note: Transfers do not include an Equity Transfer out to General Fund for retirement of General Long Term Debt of $195,000. II II II -90- ' 1 ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-3 IISTATEMENT OF OPERATING EXPENSES - BUDGET AND ACTUAL ICITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 I 1986 VARIANCE - FAVORABLE 1985 IBUDGET ACTUAL (UNFAVORABLE) ACTUAL Water Personal services $ 222,773 $ 240,972 $(18,199) $ 160,084 II Supplies 36,650 29,424 7,226 28,847 Other services and charges 142,475 153,940 (11 ,465) 139,511 I Maintenance 48,650 132,973 (84,323) 39,655 450,548 557,309 -- (106,761) 368,097 II Sewer Personal services 130,266 137,289 (7,023) 115,142 Supplies 14,225 14,855 ( 630) 11 ,455 Other services and IIcharges 143,011 118,971 24,040 142,977 Maintenance 62,450 165,517 (103,067) 136,826 Waste disposal fees 480,000 341 ,364 138,636 419,212 I 829,952 777,996 51 ,956 825,612 Operating expenses before II depreciation $1 ,280,500 $1,335,305 $(54,805) $1,193,709 1 1 1 1 1 1 1 II -91- I I I 1 I 1 (This page intentionally left blank.) I I 1 -92- ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-4 ' SCHEDULE OF REVENUE BONDS PAYABLE ' CITY OF FRIENDSWOOD, TEXAS September 30, 1986 ' DATE OF OUTSTANDING INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30, DESCRIPTION RATE ISSUE ISSUE MATURITY 1986 ' Waterworks and Sanitary Sewer System Revenue Bonds, Series 1969 6.50 % 5-1-69 $340,000 3-1-90 $ 105,000 6.125 5-1-69 360,000 3-1-99 360,000 465,000 ' Waterworks and Sanitary Sewer System Junior Lien Revenue Bonds, Series 1979 5.50 6-1-79 450,000 3-1-88 50,000 5.50 6-1-79 155,000 3-1-92 155,000 5.50 6-1-79 115,000 3-1-93 115,000 5.50 6-1-79 235,000 3-1-96 235,000 ' 5.50 6-1-79 150,000 3-1-89 100,000 6.25 6-1-79 100,000 3-1-89 100,000 6.50 6-1-79 150,000 3-1-92 150,000 905,000 TOTAL REVENUE BONDS PAYABLE $1,370,000 I ' -93- 3 ENTERPRISE FUND (WATER AND SEWER FUND) REVENUE BONDS PAYABLE - BY MATURITY DATE 11 CITY OF FRIENDSWOOD, TEXAS II September 30, 1986 I YEAR ENDING II SEPT. 30 PRINCIPAL INTEREST TOTAL 1987 $ 125,000 $ 77,338 $ 202,338 I 1988 125,000 70,025 195,025 1989 125,000 62,525 187,525 1990 130,000 54,800 184,800 II 1991 130,000 46,906 176,906 1992 135,000 38,916 173,916 1993 135,000 31 ,022 166,022 II1994 135,000 23,378 158,378 1995 140,000 15,581 155,581 1996 45,000 10,244 55,244 II1997 45,000 7,503 52,503 1998 50,000 4,594 54,594 1999 50,000 1,531 51 ,531 $1 ,370,000 $ 444,363 $1,814,363 ' I II II II I II II 1 -94- ' II EXHIBIT E-5 II II I REVENUE BONDS WATERWORKS AND WATERWORKS AND SANITARY SEWER SYSTEM SANITARY SEWER SYSTEM I REVENUE BONDS SERIES 1969 JUNIOR LIEN REVENUE BONDS SERIES 1979 PRINCIPAL INTEREST PRINCIPAL INTEREST II $ 25,000 $ 28,063 $ 100,000 $ 49,275 25,000 26,437 100,000 43,588 25,000 24,813 100,000 37,712 I 30,000 23,025 100,000 31 ,775 30,000 21 ,131 100,000 25,775 35,000 19,141 100,000 19,775 I 35,000 16,997 100,000 14,025 35,000 14,853 100,000 8,525 40,000 12,556 100,000 3,025 40,000 10,106 5,000 138 II 45,000 7,503 50,000 4,594 50,000 1 ,531 II $465,000 $210,750 $ 905,000 $233,613 II II II I II II II II I -95- 3 I I 1 1 (This page intentionally left blank.) 1 1 -96- I I I I I I IFIDUCIARY FUND I This fund is used to account for assets held by the City in a trustee capacity for individuals and private organizations. I I I I I I I I I -97- I FIDUCIARY FUND (NON-EXPENDABLE TRUST) EXHIBIT F-1 COMPARATIVE BALANCE SHEET CITY OF FRIENDSWOOD, TEXAS ' September 30, 1986 and 1985 1986 1985 ' ASSETS Restricted assets Cash $ 18,935 $ 18, 123 Land 57,200 57,200 TOTAL ASSETS $ 76, 135 $ 75,323 FUND BALANCE Reserved for endowments $ 67,200 $ 67,200 Unreserved/undesignated 8,935 8,123 TOTAL FUND BALANCE $ 76,135 $ 75,323 t 1 1 1 1 I 1 -98- ' FIDUCIARY FUND (NON-EXPENDABLE TRUST) EXHIBIT F-2 COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE CITY OF FRIENDSWOOD, TEXAS Years ended September 30, 1986 and 1985 1986 1985 ' REVENUES Interest income $ 812 $ 1,327 TOTAL REVENUES 812 1,327 ' Fund balance at beginning of year 75,323 73,996 ' FUND BALANCE AT END OF YEAR $ 76,135 $ 75,323 1 1 i -99- I 1 1 (This page intentionally left blank.) 1 1 -100- ' 1 ' GENERAL FIXED ASSETS ACCOUNT GROUP This account group is established to account for the fixed assets owned by the City exclusive of those relating to the Enterprise Fund or Fiduciary Fund. Expenditure transactions to acquire general fixed assets occur in the General Fund, Special Revenue Fund and Capital Projects Fund. ' -101- 11 GENERAL FIXED ASSETS EXHIBIT G-1 SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE CITY OF FRIENDSWOOD, TEXAS September 30, 1986 I General Fixed Assets Land $ 911,728 Buildings 1,013,664 Improvements 7,037,275 Equipment 1 ,868,192 Construction in progress 1 ,154,850 ' TOTAL GENERAL FIXED ASSETS $11 ,985,709 Investment in General Fixed Assets from Capital Projects Funds General obligation bonds $ 4,572,653 Time warrants and certificates of obligation 244,500 Federal and State grants 1 ,196,016 ' Municipality 5, 167,999 Donations 804,541 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $11 ,985,709 ' -102- ' II GENERAL FIXED ASSETS EXHIBIT G-2 IISCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY U CITY OF FRIENDSWOOD, TEXAS September 30, 1986 II CONSTRUCTION FUNCTION AND IN I ACTIVITY LAND BUILDINGS IMPROVEMENTS EQUIPMENT PROGRESS TOTAL General Government I Inspections $ - $ - $ - $ 9,570 $ _ $ 9,570 City hall 10,524 257,414 289,157 557,095 10,524 257,414 - 298,727 - 566,665 I Public Safety - Police 28,581 - -462,337 490,918 Fire 18,000 230,677 - 658,266 - 906,943 II Animal shelter _ 6,073 _ 6,073 Civil defense 11 ,426 11,426 1 ,000 259,258 - 1,138,102 - 1 ,415,360 11 Public Works Street 97,605 112,906 6,450,066 115,858 - 6,776,435 Sanitation, 3,500 - 254,997 50,529 - 309,026 I 101 ,105 112,906 6,705,063 166,387 - 7,085,461 Community Services II Library 7,838 304,296 - 139,274 - 451 ,408 Parks and recreation 774,261 79,790 332,212 125,702 - 1 ,311 ,965 782,099 384,086 332,212 264,976 - 1 ,763,373 IIConstruction in progress - - - - 1,154,850 1 ,154,850 IITOTAL GENERAL FIXED ASSETS ALLOCATED TO IIFUNCTIONS $911 ,728 $1,013,664 $7,037,275 $1,868,192 $1,154,850 $11 ,985,709 I II II II I -103- I GENERAL FIXED ASSETS EXHIBIT G-3 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - 11 BY FUNCTION AND ACTIVITY CITY OF FRIENDSWOOD, TEXAS 1 September 30, 1986 II BALANCE AT BALANCE AT SEPT. 30, 1985 ADDITIONS RETIREMENTS SEPT. 30, 1986 II General Government Inspections $ 9,155 $ 415 $ - $ 9,570 IICity hall 531 ,838 26,457 1 ,200 557,095 540,993 26,872 1 ,200 566,665 Public Safety Police 374,282 116,636 - 490,918 II Fire 721,832 188,111 3,000 906,943 Animal shelter 6,073 - - 6,073 IICivil defense 11 ,426 - - 11 ,426 1 ,113,613 304,747 3,000 1,415,360 Public Works I Street 5,767,797 1 ,008,638 - 6,776,435 Sanitation 309,026 - - 309,026 6,076,823 1 ,008,638 - 7,085,461 1 Community Services Library 445,008 6,400 - 451 ,408 I Parks, recreation and cemetery 1,294,468 17,497 - 1,311,965 1,739,476 23,897 - 1,763,373 Construction in I progress 372,299 1 ,692,833 910,282 1,154,850 TOTAL $9,843,204 $3,056,987 $ 914,482 $11 ,985,709 1 (Note) II Note: Beginning balances of General Fixed Assets are increased by $111 ,822 to account for prior year capital leases set up in the current year. II II II I -104- , II II II II II I II GENERAL LONG-TERM DEBT ACCOUNT GROUP II The purpose of this account group is to account for general obligation indebtedness to be retired primarily from future assessment of ad valorem taxes. II II II II II II II I -105- I GENERAL LONG-TERM DEBT STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT 11 CITY OF FRIENDSWOOD, TEXAS Year ended September 30, 1986 BALANCE AT OCT. 1 , 1985 ' Amount available in Debt Service Fund $ 200,813 Amount to be provided for retirement of ' long-term debt 8,076,076 TOTAL AVAILABLE AND TO BE PROVIDED $8,276,889 Classification of debt ' Employee benefits payable $ 142,470 Lease obligation 88,419 Certificates of obligation 52,000 1 General obligation bonds 7,994,000 TOTAL GENERAL LONG-TERM DEBT $8,276,889 ' (Note 1) Note 1 - Balance at October 1, 1985 The beginning balances for Amount to be provided and Lease obligations are both restated. Both amounts are increased for capital leases outstanding in the amount of $88,419. In addition, Amount to be provided and Employee benefits payable beginning balances are restated to show an increase of $142,470. 1 1 -106- ' II EXHIBIT H-1 II II IIOBLIGATIONS DEBT SERVICE BALANCE AT OBLIGATIONS ASSUMED/ FUND SEPT. 30, I RETIRED ISSUED OPERATIONS 1986 $ - $ - $229,475 $ 430,288 II10,516,427 13,110,223 (229 475) 10,440,397 II $10,516,427 $13,110,223 $ - $10,870,685 II $ - $ 19,445 $ 161,915 II 30,427 - 57,992 I 52,000 - - 10,434,000 13,090,778 10,650,778 I $10,516,427 $13,110,223 $10,870,685 (Note 2) IINote 2 - Obligations Assumed/Issued I Assumed: The City assumed the debt of WCID #108 upon annexation in the amount of $2,440,000. I Issued: The City issued Refunding Bonds, Series 1986, in the amount of $10,650,778 for the purpose of refunding all prior General Long-Term Debt (excluding Capital Leases). I Employee benefits payable are adjusted to show the net change in accrued benefits during the year. II II II I -107- 3 I I I I I I I I I (This page e intentionally left blank.) I I -108- 1 II GENERAL LONG-TERM DEBT EXHIBIT H-2 ISCHEDULE OF GENERAL LONG-TERM DEBT I CITY OF FRIENDSWOOD, TEXAS September 30, 1986 I DATE OF OUTSTANDING INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30, DESCRIPTION RATE ISSUE ISSUE MATURITY 1986 II Refunding Bonds Series 1986 4.25% 8-15-86 $585,000 3-1-87 $ 585,000 5.00 8-15-86 660,000 3-1-88 660,000 II 5.50 8-15-86 655,000 3-1-89 655,000 6.00 8-15-86 670,000 3-1-90 670,000 6.25 8-15-86 715,000 3-1-91 715,000 I 6.50 8-15-86 790,000 3-1-92 790,000 6.75 8-15-86 835,000 3-1-93 835,000 7.00 8-15-86 890,000 3-1-94 890,000 I 7.10 8-15-86 855,000 3-1-95 855,000 7.20 8-15-86 935,000 3-1-96 935,000 7.30 8-15-86 990,000 3-1-97 990,000 7.40 8-15-86 795,000 3-1-98 795,000 I 7.50 8-15-86 835,000 3-1-99 835,000 7.75 8-18-86 310,834 3-1-00 310,834 7.80 8-18-86 55,989 3-1-01 55,898 I 7.85 8-18-86 27,209 3-1-02 27,209 7.90 8-18-86 24,993 3-1-03 24,993 7.90 8-18-86 21,844 3-1-04 21,844 ITOTAL BONDS PAYABLE $10,650,778 Capital lease I Computer system 12.46 12-15-85 81 ,002 11-15-88 36,827 Capital Lease I Radios 10.75 9-15-85 24,000 12-15-90 21,165 TOTAL CAPITAL LEASES 57,992 IIAccrued employee benefits (long term portion) 161 ,915 TOTAL GENERAL I LONG-TERM DEBT $10,870,685 II II I -109- 3 GENERAL LONG-TERM DEBT GENERAL LONG-TERM DEBT - BY MATURITY DATE - 1 of 2 II CITY OF FRIENDSWOOD, TEXAS I September 30, 1986 II II YEAR ENDING TOTAL SEPT. 30 PRINCIPAL INTEREST TOTAL II 1987 $ 620,385 $ 692,829 $ 1,313,214 1988 670,213 630,868 1 ,301 ,081 1989 660,142 595,746 1 ,255,888 I 1990 675,723 557,053 1 ,232,776 1991 716,529 514,133 1 ,230,662 1992 790,000 466,087 1 ,256,087 II 1993 835,000 412,231 1 ,247,231 1994 890,000 352,900 1 ,242,900 1995 855,000 291 ,398 1,146,398 I 1996 935,000 227,385 1 ,162,385 1997 990,000 157,590 1 ,147,590 1998 795,000 92,040 887,040 1999 835,000 31 ,313 866,313 II 2000 310,834 559,166 870,000 2001 55,898 114,102 170,000 2002 27,209 62,791 90,000 II 2003 24,993 65,007 90,000 2004 21,844 63,156 85,000 $10,708,770 $5,885,795 $16,594,565 I EMPLOYEE BENEFITS 161 ,915 II TOTAL GENERAL LONG-TERM DEBT $10,870,685 II Note: Employee benefits are paid based on amounts used by an employee during any year, or upon termination of the employee. 11 11 II II -110- 1 :I EXHIBIT H-3 II 11 II REFUNDING BONDS - SERIES 1986 IIYEAR CURRENT INTEREST BONDS COMPOUND INTEREST BONDS ENDING INTEREST INTEREST SEPT. 30 RATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST TOTAL II 1987 4.25 $ 585,000 $ 687,908 $ 1,272,908 1988 5.00 660,000 629,175 1,289,175 II1989 5.50 655,000 594,662 1 ,249,662 1990 6.00 670,000 556,550 1 ,226,550 1991 6.25 715,000 514,106 1 ,229,106 1992 6.50 790,000 466,087 1 ,256,087 I 1993 6.75 835,000 412,231 1 ,247,231 1994 7.00 890,000 352,900 1 ,242,900 1995 7.10 855,000 291 ,398 1 ,146,398 II1996 7.20 935,000 227,385 1 ,162,385 1997 7.30 990,000 157,590 1 ,147,590 1998 7.40 795,000 92,040 887,040 II1999 7.50 835,000 31,313 866,313 2000 7.75 310,834 559,166 870,000 2001 7.80 55,898 114,102 170,000 2002 7.85 27,209 62,791 90,000 II2003 7.90 24,993 65,007 90,000 2004 7.90 21,844 63,156 85,000 $10,210,000 $5,013,345 $440,778 $864,222 $16,528,345 I 1 I II II -111- ' I! GENERAL LONG-TERM DEBT ACCOUNT GROUP EXHIBIT H-3 GENERAL LONG-TERM DEBT - BY MATURITY DATE - 2 of 2 ' CITY OF FRIENDSWOOD, TEXAS September 30, 1986 CAPITAL LEASES COMPUTER SYSTEM RADIOS YEAR ENDING INTEREST INTEREST SEPT. 30 RATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST 1987 12.46 $31 ,234 $2,846 10.75 $ 4,151 $2,075 1988 12.46 5,593 87 10.75 4,620 1,606 ' 1989 1990 10.75 5,142 1 ,084 10.75 5,723 503 1991 10.75 1 ,529 27 1992 1993 1994 1995 ' 1996 1997 1998 1999 2000 2001 2002 2003 2004 ' $36,827 $2,933 $21,165 $5,295 ' -112- II GENERAL LONG-TERM DEBT ACCOUNT GROUP EXHIBIT H-4 IICOMPOUND BONDS - ACCRUED INTEREST SCHEDULE I CITY OF FRIENDSWOOD, TEXAS September 30, 1986 II II YEAR ENDING $310,834 $55,898 $27,209 $24,993 $21,844 I SEPT. 30 $ 7.75% @ 7.80% @ 7.85% @ 7.90% @ 7.90% 1986 $ - $ - $ - $ - $ - 1987 31 ,384 5,775 2,876 2,703 2,398 ' 1988 26,523 4,811 2,362 2,188 1 ,915 1989 28,576 5,186 2,547 2,361 2,066 1990 30,793 5,590 2,747 2,547 2,230 II 1991 33,178 6,026 2,963 2,748 2,966 2,406 1992 35,750 6,496 3,195 2,596 1993 38,520 7,003 3,446 3,200 2,801 1994 41 ,506 7,549 3,717 3,453 3,022 II 1995 44,723 8,138 4,008 3,725 3,261 1996 48,188 8,773 4,323 4,020 3,518 1997 51 ,923 9,457 4,662 4,337 3,797 ' 1998 55,948 10,195 5,028 4,680 4,096 1999 60,282 10,990 5,423 5,050 4,420 2000 31 ,872 11,847 5,849 5,449 4,769 II 2001 6,266 6,297 5,879 5,146 2002 3,348 6,344 5,553 2003 3,357 5,991 2004 3,171 I $559,166 $114,102 $62,791 $65,007 $63,156 II II II II II II I -113- 3 I 1 (This page intentionally left blank.) 1 I -114- ' 1 11 COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS EXHIBIT I-1 CITY OF FRIENDSWOOD, TEXAS September 30, 1980 ' INTEREST MATURITY DESCRIPTION RATE DATE AMOUNT Certificates of Deposit Texas Commerce Bank, Friendswood, Texas Number 8664 5.30% 10/06/86 $ 300,000 ' Number 8665 5.25% 10/13/86 400,000 Number 8674 5.25% 10/20/86 350,000 ' Number 8675 5.25% 10/27/86 350,000 Number 8678 5.25% 11/03/86 250,000 ' Number 8679 5.25% 11/10/86 300,000 ' Number 8683 5.25% 11/17/86 250,000 TOTAL ALL FUNDS $2,200,000 ' 1 11 1 I 1 1 1 -116- II IISCHEDULE OF DELINQUENT TAXES RECEIVABLE EXHIBIT I-2 CITY OF FRIENDSWOOD, TEXAS II September 30, 1986 I I DELINQUENT TAXES RECEIVABLE GENERAL DEBT SERVICE YEAR FUND FUND TOTAL II1985 48,352 131 ,918 180,270 1984 17,887 42,439 60,326 II1983 14,135 32,515 46,650 1982 5,258 10,112 15,370 1981 2,352 5,089 7,441 1980 1,802 3,925 5,727 I 1979 902 3,199 4,101 1978 701 2,826 3,527 1977 550 1 ,307 1 ,857 I 1976 1975 609 1 ,127 559 1 ,736 212 771 1974 46 163 209 1973 11 80 91 I 1972 1 8 9 1971 9 15 24 1970 10 15 25 I 1969 5 20 25 1968 8 16 24 1967 10 14 24 I 1966 25 49 74 TOTAL DELINQUENT TAXES RECEIVABLE $ 92,885 $235,396 $328,281 II II II II I II II -117- I I I 1 1 1 1 I (This page intentionally left blank.) 1 I -118- 1 I I I I I ISTATISTICAL SECTION I I I I I I I I -119- 1 I GENERAL REVENUE - BY SOURCE II CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years I INTER- LICENSES CHARGES IIFISCAL GOVERNMENTAL AND FOR SERVICE INTEREST YEAR REVENUE TAXES PERMITS (SANITATION) INCOME 1976-77 $ 58,654 $1 ,421 ,916 $ 27,438 $156,311 $ 27,628 I 1977-78 128,182 1 ,518,773 57,551 193,249 103,841 1978-79 154,370 1 ,862,738 54,724 212,093 67,775 1 1979-80 220,470 1 ,780,798 43,399 268,481 36,272 1980-81 143,760 2,416,105 49,580 275,870 75,172 1981-82 311 ,695 2,188,070 75,292 289,034 125,888 1 1982-83 97,271 2,602,930 180,972 344,178 91 ,593 1983-84 335,077 3,285,018 167,484 431 ,941 112,516 I 1984-85 535,955 4,018,210 138,074 532,701 127,909 1985-86 124,114 4,663,092 148,740 470,177 88,521 I Includes the General, Special Revenue, and Debt Service Funds. II Source - Accounting records of the City. 1 1 II 1 1 1 -120- ' 1 ' EXHIBIT I FINES AND MISCELLANEOUS FORFEITURES REVENUE TOTAL U $ 19,103 $15,876 $1 ,726,926 25,542 28,078 2,055,216 ' 69,228 43,771 2,464,699 ' 103,447 42,168 2,495,035 129,824 31 ,250 3,121 ,561 ' 111,975 84,124 3,186,078 102,609 123,088 3,542,641 128,694 42,473 4,503,203 138,302 41,551 5,532,702 ' 120,195 28,850 5,643,689 1 1 ' -121- I GENERAL GOVERNMENTAL EXPENDITURES - BY FUNCTION II CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years I CULTURE. IIFISCAL GENERAL PUBLIC PUBLIC AND YEAR GOVERNMENT SAFETY WORKS SANITATION RECREATION 1976-77 $ 254,632 $ 323,833 $185,554 $200,724 $184,759 1 1977-78 282,252 438,013 235,506 223,878 180,216 1978-79 428,395 626,906 292,116 271 ,220 391 ,512 1 1979-80 462,461 798,798 329,713 261 ,471 208,473 II 1980-81 626,120 754,259 452,316 292,896 208,292 1981-82 680,792 856,648 474,575 288,813 299,028 1 1982-83 714,608 1 ,188,214 596,633 336,635 314,853 1983-84 812,289 1 ,311 ,923 958,188 436,299 390,361 1 1984-85 954,086 1 ,388,760 523,653 512,504 373,412 1985-86 1 ,221 ,176 1 ,737,503 723,779 484,851 453,408 II I Includes the General, Special Revenue, and Debt Service Funds. II Source - Accounting records of the City. 1 1 1 1 1 1 -122- 1 I IEXHIBIT II I I HEALTH AND DEBT WELFARE SERVICE TOTAL I $ 6,905 $ 140,810 $ 1,297,217 6,748 158,108 1 ,524,721 I8,047 272,800 2,290,996 ' 123,200 274,096 2,458,212 58,179 302,732 2,694,794 I42,243 414,440 3,056,539 46,582 497,405 3,694,930 1 48,014 983,609 4,940,683 67,919 997,114 4,817,448 78,966 11 ,676,872 16,376,555 I I I I I I I -123- I 1 1 1 I 1 I (This page intentionally left blank.) 1 -124- 1 I TAX REVENUES - BY SOURCE EXHIBIT III CITY OF FRIENDSWOOD, TEXAS II Last Ten Fiscal Years I GENERAL GENERAL BUSINESSGROSS INDUSTRIAL FISCAL TOTAL PROPERTY SALES RECEIPTS DISTRICT BEVERAGE YEAR TAXES TAXES TAX TAXES TAXES' TAX II 1976-77 $1 ,421 ,916 $ 956,474 $119,044 $ 63,229 $280,053 $3,116 II1977-78 1,518,773 1 ,012,351 154,946 77,047 270,982 3,447 1978-79 1 ,862,738 1 ,128,611 191,789 92,446 446,302 3,590 I1979-80 1 ,780,798 1 ,206,271 275,675 107,731 186,678 4,443 1980-81 2,416,105 1 ,446,071 415,228 178,789 371 ,622 4,395 II 1981-82 2,188,070 1 ,599,521 99,497 185,708 302,064 1 ,280 I 1982-83 2,602,930 2,113,715 336,234 151 ,746 - 1,235 1983-84 3,285,018 2,727,942 351,431 204,275 - 1 ,370 II1984-85 4,018,210 3,319,149 424,498 273,184 - 1 ,379 1985-86 4,663,092 3,826,171 (1) 483,629 352,186 - 1 ,106 I 'Contract with Industrial District from 1976 to 1980 and a new contract from 1980 to 1982 with a guarantee of a least $300,000 a year. ISource - Accounting records of the City. (1) Current taxes $3,680,672 I Delinquent taxes 112,025 Penalty & Interest 77,262 Refunds payable (13,381) I Disbursements to others (13,919) Homestead exemptions (16,488) II TOTAL $3,826,171 II 11 I -125- II PROPERTY TAX LEVIES AND COLLECTIONS II CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years I PERCENT II FISCAL TAX TAX TOTAL CURRENT TAX OF LEVY I YEAR YEAR RATE TAX LEVY COLLECTIONS COLLECTED 1976-77 1976 1 .20 $ 961 ,441 932,258 96.96 1977-78 1977 1 .15 1 ,021 ,935 987,372 96.62 I 1978-79 1978 1.15 1 ,147,958 1,105,811 96.33 II 1979-80 1979 1 .15 1 ,231 ,876 1 ,175,513 95.42 1980-81 1980 .775 (1) 1 ,459,086 1 ,394,770 95.59 II 1981-82 1981 .775 1 ,586,474 1 ,531 ,878 96.56 1982-83 1982 .735 2,068,817 1 ,989,751 96.18 I 1983-84 1983 .720 2,491 ,879 2,400,000 96.32 II1984 85 1984 .720 3,348,234 3,224,304 96.30 1985-86 (2) 1985 .7095 3,870,699 3,680,672 95.10 I (1) Assessment ratio increased in 1980 to 100% of market value per $100 valuation. (2) All amounts for 85/86 are adjusted for Taxes Receivable as of January, 1986. I For WCID #108 annexed by the City, the adjustments are as follows: RECEIVABLES BALANCE ATII ASSUMED COLLECTIONS YEAR END 1985 71 ,482 65,023 6,459 Prior Years 16,216 5,422 10,794 II Source - Tax assessor/collector's records. II II II II -126- 1 II II EXHIBIT IV II TOTAL II COLLECTION OUTSTANDING AS A DELINQUENT DELINQUENT TOTAL PERCENT OUTSTANDING TAXES AS A I TAX TAX OF CURRENT DELINQUENT PERCENT OF LECTIONS COLLECTIONS LEVY TAXES CURRENT LEVY $ 24,216 $ 956,474 99.48 $ 52,130 5.42 II24,979 1,012,351 99.06 61 ,533 6.02 I 22,800 1,128,611 98.31 79,839 6.95 30,758 1,206,271 97.92 102,969 8.36 II51,301 1,446,071 99.11 135,756 9.30 67,643 1 ,599,521 100.82 142,473 8.98 11 123,964 2,113,715 102.17 123,882 5.99 I 50,915 2,450,915 98.36 169,380 6.80 55,528 3,279,832 97.96 232,879 6.96 I 112,025 3,792,697 97.98 328,281 8.48 II II II I I I I I -127- I ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 1 CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years I REAL PROPERTY PERSONAL PROPERTY 11 ESTIMATED ESTIMATED FISCAL TAX ASSESSED ACTUAL ASSESSED ACTUAL I YEAR YEAR VALUE VALUE VALUE VALUE 1976-77 1976 $ 79,476,130 $132,460,220 $1,225,050 $2,041 ,750 I 1977-78 1977 87,796,960 146,328,267 1 ,738,760 2,897,933 1978-79 1978 98,489,560 164, 149,267 2,062,730 3,437,883 I 1979-80 1979 105,509,070 175,848,450 2,242,850 3,738,083 1980-81 1980 (1) 184,417,212 184,417,212 5,084,410 5,084,410 I 1981-82 1981 199,752,590 199,752,590 6,432,770 6,432,770 II 1982-83 1982 291,156,780 291,156,780 7,295,310 7,295,310 1983-84 1983 436,557,744 436,557,744 6,389,970 6,389,970 II 1984-85 1984 588,137,580 588, 137,580 10,731,940 10,731,940 1985-86 1985 636,203,660 636,203,660 9,688,000 9,688,000 II II (1) Assessment ratio increased in 1980 to 100% of market value per $100 valuation. Source - Tax assessor/collector's records II 1 1 11 1 I -12811 - I II EXHIBIT V I II TOTAL TOTAL RATIO OF ESTIMATED ASSESSED TAXABLE ASSESSED VALUE ASSESSED ACTUAL VALUE OF ASSESSED TO ESTIMATED IIVALUE VALUE EXEMPTIONS VALUE ACTUAL VALUE $ 80,701,180 $ 134,501,970 $ 581 ,095 $ 80,120,085 60% I89,535,720 149,226,200 671 ,810 88,863,910 60 II 100,552,290 167,587,150 573,900 99,978,390 60 107,751 ,920 179,586,533 633,440 107,118,480 60 II189,501 ,622 189,501,622 1 ,987,238 187,514,384 100 206,185,360 206,185,360 4,380,567 201 ,804,793 100 I298,452,090 298,452,090 85,672,799 212,779,291 100 ' 442,947,714 442,947,714 96,853,365 346,094,349 100 598,869,520 598,869,520 133,837,020 465,032,500 100 I645,891 ,660 645,891,660 111 ,788,728 534,102,932 100 II II II II I I I -129- 11 PROPERTY TAX RATES AND TAX LEVIES - ALL OVERLAPPING GOVERNMENTS - 1 of 2II CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years I FRIENDSWOOD CLEAR CREEK II INDEPENDENT INDEPENDENT FISCAL TAX CITY OF SCHOOL SCHOOL YEAR YEAR FRIENDSWOOD DISTRICT DISTRICT I TAX RATE 1976-77 1976 1 .20 1 .90 1 .84 I 1977-78 1977 1 .15 1 .84 1 .84 1978-79 1978 1 .15 1 .84 1 .55 1979-80 1979 1 .15 1 .81 .82 II 1980-81 1980 .775 (1) 1.77 .82 1981-82 1981 .775 1 .86 .88 1982-83 1982 .735 1 .83 .83 II 1983-84 1983 .720 1 .79 .82 1984-85 1984 .720 1 .46 .82 1985-86 1985 .7095 1 .46 .92 II TAX LEVIES 1976-77 1976 961 ,441 2,084,644 10,506, 189 I 1977-78 1977 1 ,021 ,935 2,255,166 10,499,589 1978-79 1978 1 ,147,958 2,456,479 14,315,746 1979-80 1979 1 ,231 ,876 2,718,490 16,431 ,313 1980-81 1980 1 ,459,086 3,123,225 19,977,989 II 1981-82 1981 1 ,586,474 3,567,480 22,647,479 1982-83 1982 2,068,817 4,854,834 25,331,425 II 1983-84 1983 2,491 ,879 5,233,942 27,542,883 1984-85 1984 3,348,234 5,123,436 31 ,308,670 1985-86 1985 3,799,737 5,802,869 41 ,309,808 11 (1) Assessment ratio increased in 1980 1 to 100% of market value per $100 valuation. II II I II -130- 1 I IIEXHIBIT VI II II CLEAR CREEK GALVESTON HARRIS DRAINAGE I COUNTY COUNTY DISTRICT TAX RATE I .970 1 .160 .100 .970 1 .110 .100 I .940.930 1 .100 .100 1 .100 .080 .915 1 .130 .100 .300 .376 .100 I .300 .360 .150 .395 .377 .150 .395 .277 .150 I .385 .27878 .150 TAX LEVIES II 9,170,621 150,413,705 91 ,534 10,478,788 86,209,774 99,764 `; 10,719,130 140,067,072 113,473 II 11 ,871 ,339 152,422,186 101 ,276 12,957,655 175,846,769 163,441 18,673,000 218,001 ,248 256,004 II 18,137,783 238,964,304 486,722 26,640,815 270,971 ,084 506,281 28,607,391 312,288,939 609,854 29,255,237 321 ,822,000 742,703 III I I I I I I -131- 1 PROPERTY TAX RATES AND TAX LEVIES - ALL OVERLAPPING GOVERNMENTS - 2 of 211 FRIENDSWOOD CLEAR CREEK INDEPENDENT INDEPENDENT CITY OF SCHOOL SCHOOL FRIENDSWOOD DISTRICT DISTRICT Tax Rate Limits 1) Amount $2.50 $1 .50 $1 .50 2) Source Statutory Statutory Statutory ' Due date Current taxes 10-1 10-1 10-1 Date taxes become delinquent 2-1 2-1 2-1 Penalites for delinquency 7.0% on 2-1 7.0% on 2-1 7.0% on 2-1 plus 1 .0% for plus 1 .0% for plus 1 .0% for each month each month each month thereafter thereafter thereafter NOTE: The tax rate for Debt Service is unlimited in amount for all governmental units presented in this schedule. I Source - Tax department records of the various entities. 1 -132- ' II EXHIBIT VI II II II CLEAR CREEK GALVESTON HARRIS DRAINAGE COUNTY COUNTY DISTRICT II $1 .60 Unlimited $.20 II Statutory Statutory Statutory 10-1 10-1 10-1 1 2-1 2-1 2-1 I7.0% on 2-1 7.0% on 2-1 7.0% on 2-1 plus 1 .0% for plus 1 .0% for plus 1 .0% for U each month thereafter each month each month thereafter thereafter 1 I 1 I II II II I -133- I RATIO OF NET GENERAL BONDED DEBT TO ASSESSED IIVALUE AND NET BONDED DEBT PER CAPITA CITY OF FRIENDSWOOD, TEXAS IILast Ten Fiscal Years GROSS LESS DEBT I FISCAL ESTIMATED ASSESSED BONDED SERVICE YEAR POPULATION VALUE DEBT FUNDS I 1976-77 9,016 $ 80,701 , 180 $ 3,906,000 $107,035 1977-78 10,094 89,535,720 5,133,000 146,773 I 1978-79 10,301 100,552,290 5,417,000 122,363 1979-80 10,719 107,751 ,920 5,354,000 117,551 I 1980-81 11,169 189,501,622 5,217,000 143,168 1981-82 11,770 206, 185,360 6,560,000 145,075 II 1982-83 12,530 298,452,090 6,470,500 153,535 II 1983-84 17,365 442,947,714 8,423,163 197,749 1984-85 18,500 598,869,520 8,046,000 200,813 I 1985-86 22,500 645,891 ,660 10,870,685 430,288 II Source - City's records. II 1 1 II II 1 -134- 1 I IIEXHIBIT VII II I NET RATIO OF NET BONDED DEBT BONDED TO ASSESSED NET BONDED DEBT DEBT VALUE % PER CAPITA I $ 3,798,965 4.7% $421 1 4,986,227 5.6 493 5,294,637 5.3 513 I5,236,449 4.9 488 5,073,832 2.7 454 I6,414,925 3.1 545 II 6,316,965 2.1 504 8,225,414 1 .9 473 II7,845,187 1 .3 424 10,440,397 1 .6 464 II II II II II II 1 I II -135- 11 COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT EXHIBIT VIII CITY OF FRIENDSWOOD, TEXAS September 30, 1985 ' PERCENTAGE CITY OF NET DEBT APPLICABLE FRIENDSWOOD'S NAME OF GOVERNMENT UNIT OUTSTANDING TO CITY OF FRIENDSWOOD SHARE OF DEBT Friendswood Independent School District $ 5,660,000 100.00% $ 5,660,000 Clear Creek Independent ' School District 49,350,000 3.38 1 ,668,030 Galveston County 52,395,470 4.87 2,551 ,659 1 Harris County 946,209,057 .06 567,725 Clear Creek Drainage District 70,000 100.00 70,000 TOTAL NET OVERLAPPING DEBT 10,517,414 ' Net General Long-Term Debt - City of Friendswood 10,440,397 TOTAL NET DIRECT AND OVERLAPPING DEBT $20,957,811 I SOURCE - Finance department records of the various governments. 11 1 1 I 1 I -136- 1 COMPUTATION OF LEGAL DEBT MARGIN EXHIBIT IX CITY OF FRIENDSWOOD, TEXAS September 30, 1986 ' The City does not have a legal debt margin. 1 1 t 1 1 1 1 ' -137- I I 1 I I (This page intentionally left blank.) t I -138- I II RATIO OF ANNUAL DEBT SERVICE EXPENDITURES EXHIBIT X II FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES I CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years I RATIO OF DEBT SERVICE TO INTEREST TOTAL TOTAL TOTAL GENERAL II FISCAL AND FISCAL DEBT GENERAL GOVERNMENTAL YEAR PRINCIPAL AGENT FEES SERVICE EXPENDITURES EXPENDITURES I1976-77 $ 41 ,000 $ 99,810 $ 140,810 $1 ,297,217 10.85% 1977-78 58,000 100,108 158,108 1 ,524,721 10.37 I1978-79 56,000 216,800 272,800 2,290,966 11 .91 1979-80 78,000 196,096 274,096 2,458,212 11 .15 II1980-81 99,336 203,396 302,732 2,694,794 11 .23 II1981-82 110,631 303,809 414,440 3,056,539 13.56 1982-83 123,759 373,646 497,405 3,684,230 13.50 I 1983-84 356,000 627,609 983,609 4,940,683 19.91 1984-85 377,608 619,506 997,114 4,817,448 20.70 II1985-86 (1) 484,427 579,859 1 ,064,286 6,024,002 17.67 IISource - Accounting records of the City. (1) Excludes debt defeased through refunding of $10,032,000. II II II II II II I -139- 11 SCHEDULE OF REVENUE BOND COVERAGE I CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years II 1 OPERATING NET OPERATING NUMBER OF NUMBER OF EXPENSES REVENUE IIFISCAL WATER SEWER OPERATING BEFORE AVAILABLE FOR YEAR CUSTOMERS CUSTOMERS REVENUE DEPRECIATION DEBT SERVICE 1976-77 2,576 2,576 $ 459,720 $ 298,424 $ 161 ,296 I 1977-78 2,884 2,884 584,339 378,552 205,787 1978-79 3,086 3,020 674,803 501 ,029 173,774 1 1979-80 3,086 3,020 877,947 564,500 313,447 II1980-81 3,215 3,048 1 ,109,296 753,350 355,946 1981-82 3,388 3,212 1 ,134,886 756,498 378,388 I 1982-83 3,659 3,430 1 ,450,044 861 ,935 588,109 1983-84 4,998 4,686 2,141 ,284 1 ,072,741 1 ,068,543 1 1984-85 5,338 5,061 2, 104,796 1 ,193,709 911 ,087 1985-86 6,497 6,238 4,223,572 1 ,335,305 2,888,267 11 11 Source - Accounting records of the City. II 1 11 II -140- I II EXHIBIT XI I II II REVENUE BOND DEBT II DEBT SERVICE REQUIREMENTS SERVICE PRINCIPAL INTEREST TOTAL COVERAGE 15,000 $39,762 $ 54,762 2.95 Is 15,000 38,788 53,788 3.83 I15,000 37,812 52,812 3.29 215,000 88,908 303,908 1 .03 II65,000 84,552 149,552 2.38 70,000 99,005 169,005 2.24 II70,000 91 , 113 161 ,113 3.65 70,000 96,515 166,515 6.42 120,000 92,475 212,475 4.29 III 120,000 83,129 203,129 14.22 I I I I I I I -141- II TAX RATE DISTRIBUTION FOR DEBT SERVICE EXHIBIT XII CITY OF FRIENDSWOOD, TEXAS Last Ten Fiscal Years II 1 GENERAL DEBT SERVICE TOTAL TAX II TAX YEAR FUND FUND RATE 1976 .787 .413 1 .20 II 1977 .813 .337 1 .15 1978 .921 .229 1 .15 I 1979 .897 .253 1 .15 1980 .5311 .2434 .775 (1) II 1981 .53 .245 .775 II 1982 .4835 .2515 .735 1983 .502 .218 .720 I 1984 .507 .213 .720 1985 .5192 .1903 .7095 11 (1) Assessment ratio increased in 1980 to 100% market value per $100 valuation. II SOURCE - City's tax ordinances. 1 II II II I -142- II PRINCIPAL TAXPAYERS EXHIBIT XIII IICITY OF FRIENDSWOOD, TEXAS II September 30, 1986 PERCENT OF II ASSESSED VALUE ASSESSED TO TOTAL NAME OF TAXPAYER NATURE OF BUSINESS VALUE ASSESSED VALUE II1 . Exxon Petroleum $50,661 ,770 7.84% II 2. Southwestern Bell Telephone Utility Co. 9,767,650 1 .5 3. Crown Central IIPetroleum Petroleum 9,563,770 1 .4 4. Astro Development ICompany Investments 7,190,040 1 .1 5. Dawson and Dawson Land 3,487,490 .6 II 6. Friendswood Heritage Investments 3,042,360 .5 II 7. Friendswood Townhomes Townhomes 3,011 ,710 .5 11 8. Homecraft Homes 2,981 ,550 .5 9. Ralph Lowe Investments 2,874,470 .4 I 10. John L. Jones Est. Investments 2,599,040 .4 $95,179,850 14.74% II ISOURCE - Tax assessor/collector's records. II II II II I -143- A II SCHEDULE OF INSURANCE IN FORCE - 1 of 2 ' CITY OF FRIENDSWOOD, TEXAS cvarPJ-e- September 30, 1986 �,,4 7� . U LOCATION d INSURER y I POLICY NO. ACTIVITY COVERAGE UMBRELLA �,^ ^l ` Employers of Texas/Lloyds TCMP-B-1L9003 All City Owned Fire, EC, and II Property V&MM: Buildings & I Contents LIABILITY II National Casualty Company PL502370 Comprehensive Law Enforcement Employers Casualty Company CAF-B-649005 Comprehensive Automobile II Uninsured/Underinsured Motorist Automobile Physical Damage National Casualty Company PO523312 Public Officials and Employees Legal II Employers Casualty Company TCMP-B-IL9003 Comprehensive General Liability IIWORKERS' COMPENSATION Texas Political Subdivision Workers' Compensation Fund TPS-H088 City All Employees il FIRE I Employers Casualty Company EEP-A-047835 • Electronic Fire, EC, and Equipment V&MM: Employers Casualty Company. CEF-B-874899 Contractors Fire, EC, and II Equipment V&MM: ACCIDENTAL DEATH & DISABILITY I American States Insurance Co. MP 4407 Volunteer Firemen A D and D II II II -144- I EXHIBIT XIV IPage 1 of 2 I IAMOUNT CO-INSURANCE BEGINS TERM PREMIUM I -tea voo I $2,415,900 80% 12-01-85 1 year $ 58,101 (1)* I1 ,000,000 - 12-19-85 1 year 15,775 I - 12-01-85 1 year 48,240 I1,000,000 - 12-19-85 1 year 5,175 500,000 - 12-01-85 1 year *See (1) ISTATUTORY - 10-01-85 1 year 61 ,525 I 90,000 90% 9-01-85 15 months 904 I 165,834 - 10-01-85 1 year 2,222 I 50,000 - 3-27-86 1 year 1 ,690 I I I I -145- I SCHEDULE OF INSURANCE IN FORCE - 2 of 2 CITY OF FRIENDSWOOD, TEXAS September 30, 1986 ' LOCATION OR INSURER POLICY NO. ACTIVITY COVERAGE FLOOD Omaha Indemnity (National Flood Insurance) OI2001944988 Counseling Center Building Contents Omaha Indemnity (National Flood Insurance) 0I200156227 Fire Station #1 Building Contents Omaha Indemnity (National Flood Insurance) 0I1932137639 Library Building Contents Omaha Indemnity (National Flood Insurance) 013000907570 Bougainvilla (Building and Building Water Well #7) Contents Omaha Indemnity (National Flood Insurance) 011940990565 Public Works Building Contents FIDELITY St. Paul Property and 400GX7956 Honesty Blanket Liability Bond All Employees 11 Aetna Casualty and Surety Co. 61S22939BCA Surety Bond City Manager Aetna Casualty and Surety Co. 61S100260728BCA Surety Bond Finance Officer Aetna Casualty and Surety Co. 61S61025187BCA Surety Bond Tax Assessor ' Aetna Casualty and Surety Co. 61S610355538BCA Surety Bond Building Inspector 11 1 -146- I EXHIBIT XIV I Page 2 of 2 I IAMOUNT CO-INSURANCE BEGINS TERM PREMIUM I $ 27,500 - 4-27-86 1 year 143 I 10,500 - 220,000 - 4-27-85 1 year 434 23,100 I 163,400 - 8-03- 86 1 year 720 100,000 - 1 9,500 - 9-24-86 1 year 569 I 151,500 - 177,100 - 2-06-86 1 year 304 38,300 - I I10,000 - 10-01-84 3 years 717 50,000 - 4-29-86 1 year 250 I 50,000 - 4-24-86 1 year 175 I50,000 - 11-29-84 2 years 463 2,000 - 2-01-86 1 year 50 I $197,458 I I I -147- 1 II PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS EXHIBIT XV II CITY OF FRIENDSWOOD Last Ten Fiscal Years II FISCAL BANK PROPERTY IIYEAR POPULATION CONSTRUCTION DEPOSITS VALUE 1977 9,016 $ 7,441 ,381 $17,545,491 $ 80,701,180 1978 10,094 16,395,154 21,646,952 89,535,720 II 1979 10,301 17,444,441 27,546,000 100,552,290 ' 1980 10,719 12,893,393 27,144,117 107,751 ,920 1981 11 ,169 13,197,941 32,614,000 189,501,622 1 1982 11,770 15,102,000 48,616,000 206,185,360 1983 12,530 31 ,211 ,841 62,256,000 298,452,090 II 1984 17,365 31 ,379,139 67,111 ,934 486,902,520 I 1985 18,500 28,891 ,533 72,641 ,562 598,869,520 1986 22,500 26,920,850 78,645,866 645,891 ,660 I Sources - City records; Area Banks; Tax assessor-collector records. 11 II 1 II 11 II I -148- II MISCELLANEOUS STATISTICAL DATA - 1 of 3 EXHIBIT XVI IICITY OF FRIENDSWOOD, TEXAS I September 30, 1986 II Date of Incorporation October 15, 1960 Date of present charter Adopted Home Rule Charter I October 16, 1971 Form of Government Council - Manager IIArea 21 .4 Square Miles Miles of streets and sidewalks IStreets - paved 82.25 miles Streets - unpaved 9.2 miles ISidewalks 1 .0 miles Fire Protection I Number of stations 3 µAAN11o. = 2- Number of employees 1 EimT/. of ao Number of volunteers 68 &G Lt I � Police Protection Pc �-A 1 r�.�-�-�•�n _ Ar " a.thNumber of stations 1 Pi1 ' Number of employees 27 g . /..40 Number of pCatrol units 13 P� e.Q-Q - 3 Recreation aw."^"'Q Number of parks 5 I Size of parks 10.7 acres, 12.6 acres, 6 acres, 16.7 acres, 4.5 acres Number of golf courses 0 II Number of swimming pools 0 Number of tennis courts 4 Storm Sewers 1 Miles of storm sewer 31 .35 miles I $ t (v ay..- s t I I -149- MISCELLANEOUS STATISTICAL DATA - 2 of 3 EXHIBIT XVI Population ' 1977 9,016 1978 10,094 1979 10,301 1980 10,719 1981 11 ,169 1982 11 ,770 1983 12,530 1984 17,365 1985 18,500 1986 22,500 Building Permits 1976-77 $ 7,441 ,381 1977-78 16,395,154 1978-79 17,444,441 1979-80 12,893,393 1980-81 13,197,941 1981-82 15,102,000 1982-83 31 ,211 ,841 1983-84 31 ,379,139 1984-85 28,891 ,533 1985-86 26,920,850 Education Friendswood Independent School District Number of teachers 221 Number of students 3,200 City employees Departments Heads 9 Employees 108 Total 117 Election Number of votes cast Last City election 2,565 1 I -150- 1 MISCELLANEOUS STATISTICAL DATA - 3 of 3 EXHIBIT XVI Water Source 7 wells ' Average daily consumption 2,147,545 gallons Maximum daily consumption 3,335,516 gallons Water mains 79.15 miles ' Number of connections 6,497 ' Sewer Average daily capacity 2,046,000 gallons Maximum daily capacity 4,964,000 gallons ' Sanitary sewer mains 75.65 miles Number of connections 6,238 1 1 1 11 -151- I PRINCIPAL OFFICIALS IICITY OF FRIENDSWOOD, TEXAS September 30, 1985 1 CITY OFFICIALS ADDRESS ELECTIVE POSITION II Ralph Lowe P.O. Box 226 Mayor IIJim Harrell 349 W. Castle Harbor Councilman - Position No. 1 Robert Wicklander 1109 Myrtlewood Councilman - Position No. 2 Evelyn B. Newman 502 Falling Leaf Councilwoman - Position No. 3 II Phyllis J. Lee P.O. Box 693 Councilwoman - Position No. 4 Jan Jordan 908 Pine Hollow Councilwoman - Position No. 5 Joe D. Prihoda 1325 McKissick Councilman - Position No. 6 II APPOINTIVE POSITION Melvin M. Meinecke 1602 Dallas, South Houston Acting City Manager I Lynn Bucher 109 Willowick, Friendswood Finance Officer Joseph M. Wright 204 E. Heritage Police Chief IIMelvin Meinecke 1602 Dallas, South Houston Director of Public Works Luis Suarez 723 Main, Suite 707, Houston Judge - Municipal Court Nick Capuano 4212 Lucian, Friendswood Building Inspector II Vance Riley P.O. Box 5957, Coll. St. Fire Marshal Dr. Richard Conway 505 Friendswood Drive Health Officer Alta Carbone P.O. Box 31 , Friendswood Tax Assessor - Collector Deloris McKenzie 109 Willowick City Secretary Olson & Olson 3485 Capital Bank Plaza Houston City Attorney IIHuyen D. Luu 109 Willowick, Friendswood Utilities Superintendent Russell E. Williams 109 Willowick, Friendswood Civil Defense Director II II II 11 -152- 1 EXHIBIT XVII 11 1 TERM EXPIRES AMOUNT OF SURETY BOND April 1988 NONE April 1988 NONE April 1987 NONE ' April 1988 NONE April 1987 NONE April 1988 NONE April 1987 NONE 50,000 50,000 I NONE NONE NONE i 2,000 NONE NONE ' 50,000 NONE NONE NONE NONE 1 1 I I -153-