HomeMy WebLinkAbout1995 09 30 Comprehensive Annual Financial Report - City of Friendswood 1
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Comprehensive
Annual Financial Report
' of the
City of Friendswood, Texas
Fiscal Year Ended
September 30, 1995
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Officials Issuing Report
Ronald E. Cox
City Manager
1 Roger C. Roecker
Director of Administrative Services
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CITY OF FRIENDSWOOD, TEXAS
ICOMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1995
ITABLE OF CONTENTS
IExhibit Page
INTRODUCTORY SECTION
I Letter of Transmittal 1-10
Organization Chart 11
Certificate of Achievement for Excellence in
I Financial Reporting 12
Principal Officials 13
IFINANCIAL SECTION
Independent Auditors' Report 14
IGENERAL PURPOSE FINANCIAL STATEMENTS
Combined Balance Sheet— All Fund Types and
Account Groups A-1 15-16
Combined Statement of Revenues,Expenditures and Changes
in Fund Balances — All Governmental Fund Types A-2 17-18
I Combined Statement of Revenues,Expenditures and Changes
in Fund Balances — Budget and Actual— General,Special
Revenue and Debt Service Funds A-3 19-20
Combined Statement of Revenues,Expenses and Changes in
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Retained Earnings/Fund Balance — Proprietary Fund Type
and Non—Expendable Trust Fund A-4 21-22
Combined Statement of Cash Flows — Proprietary Fund Type
I and Non—Expendable Trust Fund A—S 23-24
Notes to Financial Statements A-6 25-44
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
ISTATEMENTS AND SCHEDULES
Governmental Fund Types
IGeneral Fund:
Comparative Balance Sheet B-1 45
Statement of Revenues,Expenditures and Changes in
IFund Balance — Budget and Actual B-2 46-52
Special Revenue Funds:
I Combining Balance Sheet C-1 53-54
Combining Statement of Revenues,Expenditures and
Changes in Fund Balance C-2 55-56
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ICITY OF FRIENDSWOOD, TEXAS
ICOMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1995
ITABLE OF CONTENTS
IExhibit Page
FINANCIAL SECTION(continued)
I COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
IGovernmental Fund Types (continued)
Special Revenue Funds: (continued)
I Statement of Revenues,Expenditures,and Changes in Fund
Balance — Budget and Actual (Police Investigation) C-3 57
Statement of Revenues,Expenditures,and Changes in Fund
I Balance — Budget and Actual (Parks and Recreation) C-4 58
Statement of Revenues,Expenditures,and Changes in Fund
Balance — Budget and Actual (Fire/EMS Donations) C-5 59
Statement of Revenues,Expenditures,and Changes in Fund
IBalance — Budget and Actual (Centennial) C-6 60
Debt Service Fund:
I Comparative Balance Sheet D-1 61
Statement of Revenues,Expenditures and Changes in
Fund Balance — Budget and Actual D-2 62
I Capital Projects Funds:
Combining Balance Sheet E—1 63
Combining Statement of Revenues,Expenditures and
IChanges in Fund Balance E-2 64
Proprietary Fund Type
I Enterprise Fund:
Comparative Balance Sheet F-1 65
Schedule of Revenues,Expenses and Changes in
Retained Earnings — Budget and Actual
I (Non—GAAP Budgetary Basis) F-2 66-67
Schedule of Bonds Payable by Maturity Date F-3 68
Schedule of Certificates of Obligation by
IMaturity Date F-4 69
Fiduciary Fund Types
I Trust and Agency Funds:
Combining Balance Sheet G-1 70
Comparative Statement of Revenues and Changes
I In Fund Balance
ScheduleG-2 71
of Changes in Assets and Liabilities G-3 72
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CITY OF FRIENDSWOOD, TEXAS
ICOMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1995
ITABLE OF CONTENTS
Exhibit/
ITable Page
FINANCIAL SECTION(continued)
I COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
I Account Groups
General Fixed Assets:
Comparative Schedules of General Fixed Assets
I by Source H-1 73
Schedule of General Fixed Assets by Function
and Activity H-2 74-75
Schedule of Changes in General Fixed Assets by
IFunction and Activity H-3 76
General Long—Term Debt:
Comparative Schedules of General Long—Term Debt I-1 77
I Schedule of Changes in General Long—Term Debt I-2 77-79
Schedule of General Long—Term Debt Service
Requirements to Maturity I-3 80-81
IUNAUDITED STATISTICAL SECTION
I General Government Revenues By Source 1 82-83
General Governmental Expenditures by Function —
Last Ten Fiscal Years 2 84-85
Property Tax Levies and Collections— Last Ten Fiscal Years 3 86-87
I Assessed and Estimated Actual Value of Taxable
Property— Last Ten Fiscal Years 4 88
Property Tax Rates and Tax Levies — Direct and
Overlapping— Last Ten Fiscal Years 5 89-90
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Tax Rate Distribution — Last Ten Fiscal Years 6 91
Principal Taxpayers 7 92
Revenue Bond Coverage 8 93-94
I Ratio of Net General Bonded Debt to Assessed Value
and Net Bonded Debt Per Capita — Last Ten Fiscal Years 9 95-96
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Expenditures — Last Ten Fiscal Years 10 97 I
Computation of Direct and Overlapping Debt 11 98
Demographic Statistics Last Ten Fiscal Years 12 99
Property Value and Construction — Last Ten Fiscal Years 13 100
I Texas Municipal Retirement System Analysis of Funding
Progress — Last Ten Fiscal Years 14 101-102
Schedule of Impact Fee Project Changes 15 103-104
Miscellaneous Statistical Data 16 105-106
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1 March 25, 1996
1 To the Honor
able Mayor and
1 Members of the City Council
The comprehensive annual financial report of the City of Friendswood, Texas, for the fiscal year
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ended September 30, 1995,is hereby submitted. Responsibility for both the accuracy of the data and
the completeness and fairness of the presentation, including all disclosures, rests with the City. To
the best of our knowledge and belief, the enclosed data are accurate in all material respects and are
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reported in a manner designed to present fairly the financial position and results of operations of the
various funds and account groups of the City. All disclosures necessary to enable the reader to gain
an understanding of the City's financial activities have been included.
IThe comprehensive annual financial report is presented in three sections: introductory,financial,and
statistical. The introductory section includes this transmittal letter, the City's organizational chart,
and a list of principal officials. The financial section includes the general purpose financial
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statements and the combining and individual fund and account group financial statements and
schedules, as well as the auditors' report on the financial statements and schedules. The statistical
section includes selected financial and demographic information, generally presented on a
1 multi—year basis.
The Single Audit Act is not applicable for fiscal year ended September 30, 1995. There are no major
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or nonmajor Federal Financial Assistance programs.
This report includes all funds and account groups of the City. Friendswood Independent School
District, Clear Creek Independent School District, Galveston County, Harris County, Clear Creek
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Drainage District, and Friendswood Volunteer Fire Department have not met the established
criteria for inclusion in the reporting entity and,accordingly,are excluded from this report.
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The City is involved in two cost sharing projects for the operation of the Blackhawk Regional Waste
Treatment Plant and the Southeast Water Purification Plant with the Gulf Coast Waste Disposal
Authority and the City of Houston, respectively. The City's share of ownership in the Blackhawk
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Waste Treatment Plant is 52.47% and paid operating and management fees during the year in the
amount of $687,130. The City's share of production pumping cost in the Southeast Water
Purification Plant was 3.75%and paid operating fees in the amount of$355,352 during the year.
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ADMINISTRATIVE SERVICES • 910 S.FRIENDSWOOD DR. • FRIENDSWOOD,TX 77546-3898 • (713)996-3200 • FAX(713)482.6491
COMPUTER SERVICES • FINANCE • HUMAN RESOURCES • MUNICIPAL COURT • UTILITY BILLING
The City provides a full range of services, including City administration, traffic planning, inspection '
services, municipal court services, and a library. 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 residential and commercial locations. Eighteen
employees are responsible for maintaining the system, as well as billing and collecting for the
services. '
Police ,
Twenty—four hour coverage is provided by the City's Police Department, which consists of
Administration, Patrol, Investigative, Communications, and Animal Control. A goal of the
department's 54 full and part—time personnel is to actively involve the citizens in its community
safety efforts.
Fire '
Although the City does not employ its own fire department, it purchases fire trucks and other
equipment for the more than 90 members of the volunteer fire department. The City employs a
fire marshal, two part—time deputy fire marshals, one full—time fire fighter, one clerk,and funds
salaries for two fire fighters, one paramedic and emergency medical technician position through a
pool of part—time employees. The fire marshal is responsible for the Emergency Management
function,as well as their fire prevention,education and investigation duties.
Streets ,
The street department is responsible for the repair and maintenance of all City streets and
roadside drainage. This department consists of 12 employees.
Sanitation 1
The City's solid waste services, including curbside pickup of recyclable materials, are contracted
to a private firm. Residential pickup is twice weekly.
Parks '
The parks and recreation department oversees 110.5 acres of park land, including four tennis
courts, a swimming pool, picnic areas and acreage for future development. The staff consists of
nine full—time employees, as well as part—time and seasonal employees for the swimming pool,
summer camp,sports activities and other park functions.
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ECONOMIC CONDITION AND OUTLOOK
' The City of Friendswood, Texas, is located 20 miles southeast of downtown Houston in Harris and
Galveston Counties. The City's 1990 census was 22,814. The population is currently estimated at
27,700. The City's economy is linked closely to that of Houston and the Clear Lake area. The Clear
1 Lake Area Economic Development Foundation is charged with retaining current businesses and
associated jobs, as well as recruiting other corporations to the area. They report eight successful
recruitments for 1995. These resulted in the creation of approximately 1,400 new jobs that had a
total economic impact of$19 million and occupied 253,000 square feet of space. One of the major
retention efforts of the last year was maintaining NASA's 7,000 engineering jobs in this region. The
result was the successful retention of those jobs and their$700 million annual impact.
NASA Headquarters has recently announced that management of the space shuttle and the
international space station will be moved to the Johnson Space Center. This, as well as the
additional jobs provided by Amoco and CNA Insurance and the others discussed previously, should
result in a more stable economic environment for the Clear Lake area.
MAJOR INITIATIVES
For The Year
During the 1994-95 budget preparation, the City identified several important programs needed to
' meet citizens' needs for services and to safeguard the environment, in conformity with applicable
federal and state standards. The following items will provide a summary of these programs.
' Streets
1994-95 was the eleventh year of the City's concrete street improvement program. The
following streets were a part of this project: Heritage (from Friendswood Drive to Woodlawn)
' and Woodlawn (between Shadowbend and Spreading Oaks). Sidewalks were also constructed
for these streets. In addition to the concrete streets, Stadium Drive was widened between
Edgewood Drive and Mary Ann ($26,061) and Melody Lane is scheduled to be completed
1 early in 1996.
Water and Sewer
' More than $2,600,000 was expended for water and sewer improvements, including the
following. $325,939 was spent to install 13,000 feet of 12 inch waterline,connecting an existing
10 inch line on FM518 to an 8 inch line on San Miguel. Improvements to waterwell #5 costing
$486,447 were completed. These included replacing and relocating an existing altitude valve
from a below ground vault and renovating/recoating the 1,000,000 gallon elevated storage tank.
1 $1,568,727 in improvements to the Blackhawk Wastewater Treatment Plant were finished
during 1995. The primary improvements were installation of an ultraviolet disinfection system
and gravity filters. Three wastewater flow diversions were begun in the South Friendswood
' area with $42,775 spent in 1994-95. These diversions are intended to eliminate all flow to the
Tower Estates Wastewater Treatment Plant, which will be taken out of service. All flow
ultimately will be diverted to the Blackhawk plant. The City established a sanitary sewer
infiltration and inflow program in 1991. $83,061 was spent in 1994-95 to identify and remedy
infiltration and inflow sources. The City also completed rehabilitation of the Deepwood lift
station located at the Public Works facility. This project cost$80,099 during 1995.
Parks and Recreation
An additional 21.39 acres of land for future development of a sports complex was acquired
during 1994-95. The funding required for this purchase was $234,293. This acquisition gives
the City a total of 77.63 acres for park development.
Stevenson Park improvements were completed during this year. A master plan was developed ,
and implemented in four years. This last year of implementation included: old—fashioned
style lighting, a park trail and installation of commemorative pavers around the gazebo, a
pedestrian bridge to connect the new city hall parking area to the park, and new restroom 1
facilities. These improvements required$194,253 to complete.
The interior of Jones Hangar,located at Leavesley Park,was remodeled at a cost of$33,419.
This is the largest indoor multi—purpose facility in the City and is heavily used by various
community groups on a daily basis.
New City Hall '
During the last year a new city hall was constructed at 910 South Friendswood Drive. The two
story building includes 22,600 square feet of usable office space and was built at a cost of
$1,892,143.
Fire ,
A hand—held, pen—based computer reporting system was purchased for the Emergency
Medical Services division of the Friendswood Volunteer Fire Department. Along with
reporting capabilities, this system allows EMS personnel to access the patient data record, a
protocol database, a pharmacology database and other information that assists on—scene
personnel to provide improved patient management. This system was acquired for$23,040.
In conjunction with the final round of Stevenson Park improvements, additional parking was
constructed at Fire Station#1 for the volunteers. The parking was added to two sides allowing
traffic to flow around the building in one direction, with separate entrances from and exits to
Friendswood Drive. The cost of this additional parking was$54,847.
For the Future ,
Streets ,
$312,000 is budgeted for construction of concrete streets and sidewalks, with another $50,000
of improvements planned for asphalt streets. In addition, $25,000 in sidewalk improvements
are also planned. Another street—related project is a traffic signal for the Sunset and
Castlewood intersection. This is projected to cost$75,000.
Water and Sewer '
A 2,000 foot section of 15 inch sanitary sewer line located on Shady Oaks Lane was identified
for repair. The estimated cost of this project is$200,000. I
$125,000 has been budgeted to fight infiltration and inflow of rainwater into the sanitary sewer
system. Reducing or eliminating this problem will result in less water going to the Blackhawk
waste treatment plant, thus reducing the City's cost of operating the plant.
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The mechanical equipment in all the City's water wells was inspected in February, 1995. The
pump in water well #7 will be replaced at an estimated cost of$50,000. All other wells appear
to be in good condition.
Three lift stations located around the golf course in the Sun Meadow subdivision are in need of
major renovation. The City budgeted $60,000 each for this work, for a total of$180,000.
Parks and Recreation
' A sports complex has been identified as a critical need. Two tracts of property were purchased
during the last two years. $225,916 for an additional 20 acres of property and some
development is budgeted.
' Fire
' The need for an additional ambulance, to replace the oldest of the three currently in service,
was identified. $80,000 was budgeted for this purpose in 1995-96.
' DEPARTMENT FOCUS.
Each year the City will select a department to highlight for its efforts and accomplishments. For
1994-95 the Community Development Department has been chosen for review.
This department is comprised of Planning and Zoning, Engineering, Building Inspection and Code
' Enforcement, employing 10 full—time and 2 part—time employees. In addition, this department is
responsible for the application of specific grants and certifications for the City, which include but are
not limited to Transportation Enhancement and Improvement, Urban Street Program, Hazard
Mitigation and the National Flood Insurance Program. Those programs provide funding for the City
111 or earn discounts on flood insurance policies for Friendswood citizens.
Planning and Zoning provides information on special flood hazard areas,administers applications for
subdivision plats, commercial site plans, zone change requests, specific use permits and ordinance
amendments. New commercial development or subdivisions under construction have first been
before Planning and Zoning staff before building permits are issued.
Engineering staff provides design and inspection services for capital improvement projects such as
the street program and sidewalks for the City. This division also provides inspection of streets,
' utilities and drainage in new subdivisions, sets culverts for driveways and is responsible for computer
map maintenance. Many of the maps used in the City are produced by this division. These include
the zoning map,major thoroughfare map and water/sewer maps.
The Building Inspection Division of Community Development ensures compliance with the adopted
building codes and provides inspections for new home starts, commercial projects, pools and
miscellaneous repairs. New homes are inspected at every state of development, from the blue prints
to the finished product, and will receive approximately 20 different inspections. The foundation,
framing,wiring, plumbing,driveway approach,sidewalks,etc.all require inspection.
' Code Enforcement ensures compliance with all codes and ordinances of the City. The Code
Enforcement Office is responsible for regulating high grass, nuisance abatement, sign violations and
pool fencing.
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FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure
that adequate accounting data are compiled to allow for the preparation of financial statements in
conformity with generally accepted accounting principles. The internal control structure is designed
to provide reasonable, but not absolute, assurance that these objectives are met. The concept of
reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to
be derived; and (2) the valuation of costs and benefits requires estimates and judgments by
management. I
In addition, the City maintains budgetary controls. The objective of these budgetary controls is to
ensure compliance with legal provisions embodied in the annual appropriated budget approved by
City Council. The City legally adopts annual budgets for the General, Special Revenue, and Debt
Service Funds. Annual and project budgets are also adopted for the Proprietary and Capital Projects
Funds,respectively. I
The level of budgetary control (that is, the level at which expenditures cannot legally exceed the
appropriated amount) is established by department within an individual fund. The City also I
maintains an encumbrance accounting system as one technique of accomplishing budgetary control.
Encumbered amounts lapse at year end. However, encumbrances generally are reappropriated as
part of the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this report, the City I
continues to meet its responsibility for sound financial management.
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General Government Function
Revenues for general government functions (General, Special Revenue and Debt Service Funds) ,
totaled approximately $9.938 million in 1994-95 an increase of approximately $848,000 over
1993-94 revenues. The amount of revenue from various sources and the increase (decrease) over
the preceding year are shown in the following tabulation:
Increase I
(Decrease)
Amount Percent from 1994 I
Revenue Source (000's) of Total (000's)
General property taxes $ 5,866 59.0 % $ 313
Sales taxes 1,029 10.3 27 I
Franchise taxes 863 8.7 293
Sanitation 1,085 10.9 119
Fines and forfeitures 266 2.7 48 I
Permits and fees 235 2.4 (61)
Intergovernmental revenue 46 0.5 (2)
Interest on investments 194 1.9 87
Other revenue 355 3.6 25 I
Total $ 9,938 100.0 % $ 848
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IAssessed valuations of approximately $869 million represented an increase of 5.3 percent over the
preceding year. The net taxable assessed valuations are set at 100% of market value as determined
I by the Galveston County and Harris County Appraisal District less exemptions or abatements. The
adjusted tax levy for the 1995 fiscal year was approximately$5.79 million, and increase of 5.8 percent
over the prior year tax levy. Current tax collections of approximately$5.718 million, or 98.2 percent
of the tax levy, are up approximately $334,480 (6.25%) from last year. The ratio of total collections
I (current and delinquent) to the current tax levy was 100.48 percent, an increase of.08 percent from
last year.
I The City had approximately$263,000 in delinquent taxes outstanding as of September 30, 1995 which
represents 4.56 percent of the current tax levy. Delinquent tax collections were down approximately
$27,726 from the prior fiscal year. However, the percentage of delinquent taxes to current levy also
Ideclined by.77 percent.
A decline in new home and commercial construction contributed to a decrease in permits and fees.
The total amount of new construction for the current fiscal year was approximately $34.7 million
Idown from$64.7 million for 1993-94,a decrease of 46.3 percent.
Allocations of property tax levy for the 1994 and the preceding two fiscal years are as follow(tax rate per
I $100 of assessed value):
Purpose 1994-95 1993-94 1992-93
I General Fund $ 0.5140 $ 0.5025 $ 0.5016
General Obligation Debt 0.1490 0.1605 0.1614
Total Tax Rate $ 0.6630 $ 0.6630 $ 0.6630
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Expenditures for general government functions (General, Special Revenue and Debt Service Funds)
I totaled approximately $10.18 million in 1994-95, an increase of approximately $803,000 over
1993—94 expenditures. Increases or (decreases)over the preceding year in the levels of expenditures
for major functions of the City are shown in the following tabulation:
Increase
(Decrease)
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Amount Percent from 1994
Function (000's) of Total (000's)
General Government $ 1,482 14.6 % $ 3
I Public Safety 3,206 31.5 360
Public Works 1,792 17.6 8
Community Development 464 4.6 51
I Community Services 1,656 16.3 229
Debt Service 1,579 15.5 152
Total $ 10,17900.1 % 803
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Public safety expenditures increased by approximately$360,000 or 12.6% over the prior year. A portion of the
I increase is due to filling vacant positions in the department. Additionally, there was a $175,000
increase in capital acquisitions. This is due to the purchase of vehicles. Nine vehicles budgeted for
the 1993—94(but not expended)were received in the first quarter of the current fiscal year.
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Community Services expenditures increased by approximately $229,000 or 16.1 percent over the
prior year. The increase is due to the first full year of operations of the community activities building
and the new library. Other increases were due to two fire losses at the Forest Bend Civic Building.
Debt Service expenditures increased by approximately $152,000. The increase is due to the note
payable for land purchased for Centennial Park.
Fund balances in the major operating funds were maintained at budgeted levels. Net Changes in 1
these fund balances are tabulated below:
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(In 000's)
Fund Balance Net Increase Fund Balance I
Beginning (Decrease) Ending _
General Fund $ 1,332 $ 113 $ 1,445
Special Revenue Fund 44 80 124 I
Debt Service Fund 47 10 57
Capital Projects Fund 1,783 (695) 1,088
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Enterprise Fund Operations
The water and sewer utility operation continued to show gains in number of customers. Comparative I
data for the past two fiscal years are presented in the following tabulation:
1995 1994 I
(000's) (000's)
Operating revenue $ 4,394 $ 3,896 '
Operating expenses before depreciation 2,135 2,306
Net Revenue Available for Debt Service $ 2,259 $ 1,590
Revenue Bond Debt Service $ 156 $ 161
Coverage(income available for revenue I
bond debt service divided by annual
revenue bond debt service) 14.52 9.88 I
Number of customers — Sewer 7,709
Number of customers — Water 8,031
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Non—Expendable Trust Fund Operation
The Non—Expendable Trust Fund is comprised of assets held by the City for the 1776 Park. Activity I
in this fund resulted solely from interest earnings during the year. Fund balance was $86,187 as of
September 30, 1994.
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Debt Administration
The ratio of netgeneral obligation debt
' ga , �' � resources to assessed valuation
and the amount of bonded debt per cal. ' " the City's debt position to
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municipal management,citizens and investot. ' �� ,rs were as follow:
Percent of
Debt to
Assessed Debt per
Description Amount Value Capita
Net direct bonded debt $ 4 7 5 0.54 % $ 170
Overlapping debt
Total Direct and �514�660 0.29 91
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Overlapping Debt $ 7,233,955 0.83 % $ 261
' Cash Management
Cash temporarily idle during the year was invested in Texpool and Lone Star Investment Pool
(LSIP). Yields on Texpool ranged from 4.427 percent to 5.772 percent during the year ended
' September 30, 1995. From October through July, 1995, the City's investments in LSIP were in the
U.S. Government Fund. The net asset values of the fund increased from $11.74 to $12.47. In
August, 1995, the City's investments in LSIP were shifted from the U.S. Government Fund to the
Liquidity Plus Fund. Yields in the Liquidity Plus Fund ranged from 5.84 percent to 5.89 percent.
Interest earned for the year was approximately$423,000,up$132,000 from the preceding year.
' The City's investment policy is to minimize credit and market risks while maintaining a competitive
yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or
collateralized. All collateral on deposits was held by a financial institution's trust department in the
City's name. All investments held by the City during the year and at September 30, 1995 which were
' subject to categorization are classified in the category of lowest credit risk as defined by the
Governmental Accounting Standards Board. The investment in Texpool is not subject to
categorization as to credit risk since it is an investment pool managed by another government.
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Risk Management
' The City, for 1995, has not implemented a plan for assumption of risk of loss. Currently third party
coverage is relied upon.
OTHER INFORMATION
' Independent Audit
The City Charter requires an annual audit of the financial statements of all of the various funds of
' the City by independent certified public accountants. The accounting firm of Null &Associates,P.C.
was selected and their opinion has been included in this report.
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Awards '
The Government Finance Officers Association ("GFOA") awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Friendswood for its comprehensive annual financial
report for the fiscal year ended September 30, 1994. This was the eighth consecutive year that the
City has received this prestigious award. In order to be awarded a Certificate of Achievement, the
City published an easily readable and efficiently organized comprehensive annual financial report.
This report satisfied both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current '
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
Acknowledgments '
The preparation of this comprehensive annual financial report was made possible by the dedicated
service of the entire staff of the Administrative Services Department. Each member of the
department has my sincere appreciation for the contributions made in the preparation of this report.
In closing, I also express my thanks to the Mayor, members of the City Council, and the City
Manager for their leadership, interest and support in conducting the financial operations of the City
in a responsible and progressive manner.
Sincerely, '
Roger C. Roecker
Director of Administrative Services
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CITY OF FRIENDSWOOD, TEXAS
' ORGANIZATION CHART
September 30, 1995
MAYOR
AND
COUNCIL
' APPOINTED BOARDS FRIENDSWOOD CITY SECRETARY CITY ATTORNEY MUNICIPAL JUDGE CITY PROSECUTOR
AND AD ROC VOLUNTEER FIRE
COMMITTEES DEPARTMENT
CITY MANAGER
' ADMINISTRATIVE COMMUNITY POLICE FIRE MARSNAU PUBLIC WORKS COMMUNITY SERVICES
SERVICES DEVELOPMENT EMERGENCY
MANAGEMENT
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Certificate of
1
Achievement
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for Excellence I
in Financial
1
Reporting
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Presented to
City of Friendswood,
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Texas I
For its Comprehensive Annual 1
Financial Report
for the Fiscal Year Ended
September 30, 1994 I
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers 1
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial .
reports(CAFRs) achieve the highest 1
standards in government accounting
and financial reporting.
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4"OFF
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: GNA01
yo
t =n umM R. President
-roe SEAL e 1
D.,‘„t
Executive Director I
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CITY OF FRIENDS WOOD, TEXAS
IPRINCIPAL OFFICIALS
September 30, 1995
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Term
ICity Officials Elective Position Expires
Evelyn B.Newman Mayor May 1997
IKitten Hajecate Council Member — Position No. 1 May 1997
Mel P.Measeles Council Member— Position No.2 May 1996
1 Tom Manison Council Member— Position No.3 May 1997
Mel Austin Council Member— Position No.4 May 1998
IAline Dickey Council Member— Position No.5 May 1996
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Janis Lowe Council Member— Position No.6 May 1998
IKey Staff Appointive Position
Ronald E.Cox City Manager
IDeloris McKenzie City Secretary
Jon Branson Parks and Recreation Director
IRebecca Carbone Tax Assessor—Collector
Douglas K.Kneupper Community Development Director
IMelvin L.Meinecke Director of Public Works
IOlson&Olson City Attorney
Mary Perroni Library Director
ITerry Byrd Fire Marshal/Emergency Management Coordinator
Roger C.Roecker Director of Administrative Services
IJared D.Stout Police Chief
James W.Woltz Judge — Municipal Court
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N - i NE NE a - - - - - - - - EN N.
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Null&Associates Houston Fort Bend County
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Professional Corporation 11 Greenway Plaza,Suite 1515 One Sugar Creek Center Blvd.,Suite 1150
Cent Public
Accountants
Aun ts Houston,Texas 77046 Sugar Land,Texas 77478
Certified r UiJ ti (713)621-1515•FAX:621-1570 (713)242-8600•FAX:242-7333
1
Independent Auditors' Report
To the Honorable Mayor and
Members of the City Council
City of Friendswood,Texas
1
We have audited the accompanying general purpose financial statements of the City of Friendswood,
Texas,as of September 30, 1995,and for the year then ended,as listed in the table of contents.These
general purpose financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general purpose financial statements based on our
' audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing the accounting principles used and significant estimates
' made by management, as well as evaluating the overall general purpose financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Friendswood,Texas, as of September 30, 1995,
and the results of its operations and the cash flows of its proprietary fund type and non—expendable
trust fund for the year then ended in conformity with generally accepted accounting principles.
' Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The individual fund and account group financial statements and
schedules listed in the table of contents are presented for purposes of additional analysis and are not
a required part of the general purpose financial statements of the City of Friendswood, Texas. Such
information has been subjected to the auditing procedures applied in the audit of the general
' purpose financial statements and, in our opinion, is fairly presented in all material respects in
relation to the general purpose financial statements taken as a whole.
Houston,Texas
' January 17, 1996
' 14
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I
IGENERAL PURPOSE FINANCIAL STATEMENTS
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1
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111
CITY OF FRIENDSWOOD, TEXAS I
COMBINED BALANCE SHEET - I
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1995
with comparative totals for September 30, 1994 I
Governmental Fund Types
Special Debt Calital
General Revenue Service Projects I
Assets and Other Debits
Assets
Cash and temporary investments $ 2,461,306 S 131,126 $ 27,065 $ 1,347,302
Receivables I
Taxes 195,088 68,444
Customer accounts 156,397
Interest
Other 46,113 15,000 I
Investments with fiscal agent
Fixed assets,net of accumulated
depreciation,where applicable
Investment in Blackhawk joint venture 111
Other assets 71,240 10,109 5,087
Due from other funds 19,794
Other Debits I
Amount available for debt service
Amount to be provided for retirement
of general long-term debt
Total Assets and Other Debits $ 2.930,144 S 146,126 S 125,412 $ 1.352,389 I
Liabilities, Equity, and Other Credits
Liabilities
Accounts payable and accrued liabilities $ 462,577 $ 21,968 $ $ 244,467 I
Compensated absences 718,890
Customer deposits
Deferred revenue 303,288 68,444
Deferred compensation benefits payable '
Bonds payable
Certificates of obligation payable
Notes payable
Obligations under capital leases
Due to other funds 19,794
11
Acreted interest on premium compound
interest bonds I
Total Liabilities 1,484,755 21,968 68,444 264,261
Equity and Other Credits
Investment in general fixed assets
Contributed capital111
Retained Earnings
Fund Balances
Reserved 91,780 56,968 I
Unreserved:
Designated 900,000 124,158 1,088,128
Undesignated 453,609
Total Equity and Other Credits 1,445,389 124,158 56,968 1,088,128 I
Total Liabilities,Equity, and
Other Credits $ 2,930,144 S 146.126 $ 125,412 S 1352 389
See Notes to Financial Statements.
15 I
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Exhibit A-1
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I Proprietary Fiduciary Totals
Fund Type Fund Type Account Groups (Memorandum Only
Trust and General General Long- September 30, September 30,
IEnterprise Agency Fixed Assets Term Debt 1995 1994
$ 2,089,689 $ 31,339 $ $ $ 6,087,827 $ 6,028,010
I 263,532 276,097
757,705 914,102 810,783
5,531
• 61,113 53,780
586,995 586,995 446,805
25,452,519 57,200 27,967,545 53,477,264 48,471,226
I 179,637 179,637
176,962 172,831
90,526 129,149
19,794
I56,968 56,968 47,281
5,326,980 5,326,980 8,878,642
$ 28,570,076 $ 675,534 $ 27,967,545 $ 5„383,948 $ 67,151,174 $ 65,320,135
I
$ 310,425 $ $ $ $ 1,039,437 $
802,211 993,134
83,321 750,451
184,523 184,523 164,850
371,732 369,432
I
586,995 586,995 446,805
5,493,701 2,402,077 7,895,778 8,940,777
6,500,000 2,130,000 8,630,000 5,670,000
384,642 384,642 598,567
223,043 223,043 166,461
19,794
199,789 244,186 443,975 380,118
I12,771,759 586,995 5,383,948 20,582,130 18,480,595
27,967,545 27,967,545 25,069,423
I 13,140,148 13,140,148 15,511,200
2,658,169 2,658,169 2,965,516
67,200 215,948 279,344
I
21,339 2,133,625 2,696,512
453,609 317,545
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15,798,317 88,539 27,967,545 46,569,044 46,839,540
$ 28,570,076 $ 675,534 S 27,967,545 S 5383,948 S 67.151.174 $ 65320,135
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16
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND I
CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 1995
with comparative totals for Year Ended September 30, 1994 I
Governmental Fund Types I
Special Debt Capital
General Revenue Service Projects
Revenues
Property taxes $ 4,544,589 $ $ 1,321,266 $ I
Sales taxes 1,028,528
Franchise fees 863,183
Sanitation 1,085,149 I
Fines and forfeitures 266,287
Permits and fees 234,518
Donations 10,083 135,095 6,233
Intergovernmental 46,060 279,339 '
Interest on investments 173,781 6,536 13,271 75,867
Other 152,543 56,906 59,235
Total Revenues 8,404,721 198,537 1,334,537 420,674
Expenditures I
Current
General government 1,481,710 '
Public safety 3,176,914 29,308
Public works 1,792,014
Community development 463,813
Community services 1,605,052 51,094 I
Capital outlay 2,400,940
Debt Service
Principal retirement 1,184,592 I
Interest and fiscal charges 394,898
Total Expenditures 8,519,503 80,402 1,579,490 2,400,940
Revenues Over (Under) I
Expenditures (114,782) 118,135 (244,953) (1,980,266)
Other Financing Sources (Uses) I
Operating transfers in 509,844 11,024 254,640 1,285,435
Operating transfers (out) (399,257) (48,700)
Proceeds from sale of equipment
Proceeds from issuance of debt 117,176
Total Other Financing
Sources (Uses) 227,763 (37,676) 254,640 1,285,435
Revenues and Other Financing Sources
Over (Under) Expenditures
and Other Financing (Uses) 112,981 80,459 9,687 (694,831)
Fund balances - Beginning 1,332,408 43,699 47,281 1,782,959
Fund Balances - Ending $ 1,445 389 $ 124,158 $ 56,968 $ 1.088,128
See Notes to Financial Statements.
17 I
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Exhibit A-2
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II
Totals
(Memorandum Only)
I
September 30, September 30,
1995 1994
I
S 5,865,855 $ 5,553,218
1,028,528 1,001,832
863,183 570,031
1,085,149 966,066
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266,287 217,411
234,518 296,003
151,411 235,640
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325,399 77,331
269,455 188,222
268,684 360,636
10,358,469 9,466,390
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1,481,710 1,478,817
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3,206,222 2,846,169
1,792,014 1,783,738
463,813 413,489
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1,656,146 1,426,792
2,400,940 2,695,500
1,184,592 989,463 .
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394,898 437,897
12,580,335 12,071,865
I (2,221,866) (2,605,475)
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2,060,943 1,189,731
(447,957) (132,957)
4,950
I117,176 794,491
1,730,162 1,856,215
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(491,704) (749,260)
I3,206,347 3,955,607
$ 2,71043 $ 3,206.347
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I18
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CITY OF FRIENDSWOOD, TEXAS 1
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET(GAAP BASIS) AND ACTUAL I
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Year Ended September 30, 1995 I
General Fund I
Variance
Favorable
Budget Actual (Unfavorable) I
Revenues
Property taxes $ 4,575,812 $ 4,544,589 $ (31,223)
Sales taxes 1,013,810 1,028,528 14,718 I
Franchise fees 658,381 863,183 204,802
Sanitation 1,055,654 1,085,149 29,495
Fines and forfeitures 237,150 266,287 29,137
Permits and fees 356,456 234,518 (121,938) '
Donations 7,990 10,083 2,093
Intergovernmental 47,318 46,060 (1,258)
Interest on investments 92,800 173,781 80,981
Other 132,173 152,543 20,370 I
Total Revenues 8,177,544 8,404,721 227,177
Expenditures
Current I
General government 1,709,381 1,481,710 227,671
Public safety 3,137,531 3,176,914 (39,383)
Public works 1,799,935 1,792,014 7,921 I
Community development 497,729 463,813 33,916
Community services 1,652,417 1,605,052 47,365
Debt Service
Principal retirement I
Interest and fiscal charges
Total Expenditures 8,796,993 8,519,503 277,490
Revenues (Under) Expenditures (619,449) (114,782) 504,667 I
Other Financing Sources (Uses)
Operating transfers in 509,844 509,844
Operating transfers(out) (399,257) (399,257) I
Proceeds from issuance of long-term debt 117,176 117,176
Total Other Financing
Sources (Uses) 227,763 227,763
Revenues and Other Financing I
Sources Over
Expenditures and Other
Financing (Uses) (391,686) 112,981 504,667 1
Fund balances- Beginning 1,332,408 1,332,408
Fund Balances - Ending S 940.722 S 1.445 389 S 504.667 I
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See Notes to Financial Statements.
19 I
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Exhibit A-3
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I Special Revenue Fund Debt Service Fund
Variance Variance
Favorable Favorable
IBudget Actual (Unfavorable) Budget Actual (Unfavorable)
$ $ $ $ 1,311,607 $ 1,321,266 $ 9,659
1
I123,590 135,095 11,505
3,180 6,536 3,356 8,850 13,271 4,421
I 25,902 56,906 31,004
152,672 198,537 45,865 1,320,457 1,334,537 14,080
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32,362 29,308 3,054
I35,111 51,094 (15,983)
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1,214,592 399,905 1,184,592 30,000
394,898 5,007
67,473 80,402 (12,929) 1,614,497 1,579,490 35,007
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85,199 118,135 32,936 (294,040) (244,953) 49,087
11,024 11,024 308,933 254,640 (54,293)
I (48,700) (48,700)
(37,676) (37,676) 308,933 254,640 (54,293)
47,523 80,459 32,936 14,893 9,687 (5,206)
43,699 43,699 47,281 47,281
I $ 91.222 $ 124.158 $ 32.936 $ 62,174 $ 56.968 $ (5,206)
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I 20
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CITY OF FRIENDSWOOD, TEXAS I
COMBINED STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE —
PROPRIETARY FUND TYPE AND NON—EXPENDABLE TRUST FUND
Year Ended September 30, 1995 I
with comparative totals for Year Ended September 30, 1994
Proprietary Fiduciary 1
Fund Type Fund Type
Non—Expendable
Enterprise Trust
Operating Revenues
Water charges $ 2,690,353 $
Sewer charges 1,574,347
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Fees and penalties 107,204
Other 22,385
Total Operating Revenues 4,394,289
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Operating Expenses
Water operations 766,975
Sewer operations 990,890
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Operation administration 97,627
Finance administration 191,740
Computer services 6,047
Insurance 25,980
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Engineering 55,968
Depreciation 744,370
Total Operating Expenses 2,879,597
1
Operating Income 1,514,692
Nonoperating Revenues (Expenses)
1
Interest revenue 152,306 1,485
Interest expense (361,359)
Total Nonoperating
Revenues (Expenses) (209,053) 1,485
Income Before
Operating Transfers 1,305,639 1,485
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Operating Transfers In (Outl
Operating transfers (out) (1,612,986)
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Net Income (Loss) (307,347) 1,485
Retained earnings/Fund balance —
1
Beginning of Year 2,965,516 87,054
Retained Earnings/Fund Balance —
End of Year S 2.658,169 $ 88,539
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See Notes to Financial Statements.
21
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Exhibit A-4
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ITotals
(Memorandum Only)
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September 30,1995 September 30,
1994
$ 2,690,353 $ 2,569,083
I
1,574,347 1,226,495
107,204 91,565
22,385 32,869
I
4,394,289 3,920,012
766,975 860,714
I 990,890 1,094,056
97,627 94,868
191,740 169,829
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6,047 3,623
25,980 25,867
55,968 56,996
744,370 692,954
I2,879,597 2,998,907
1,514,692 921,105
I153,791 102,687
(361,359) (371,774)
I (207,568) (269,087)
I1,307,124 652,018
I (1,612,986) (1,056,774)
(305,862) (404,756)
111 3,052,570 3,457,326
I $ 2,746,708 $ 3,052,570
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I 22
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CITY OF FRIENDSWOOD, TEXAS I
COMBINED STATEMENT OF CASH FLOWS — I
PROPRIETARY FUND TYPE AND NON—EXPENDABLE TRUST FUND
Year Ended September 30, 1995 I
with comparative totals for Year Ended September 30, 1994
Proprietary Fiduciary I
Fund Type Fund Type
Non—Expendable
Enterprise Trust I
Cash Flows from Operating Activities
Operating Income $ 1,514,692 $
Adjustments to Reconcile Operating
Income to Net Cash I
Provided by Operating Activities:
Depreciation and amortization 744,370
(Increase)Decrease in accounts receivable (96,661) I
(Increase)Decrease in other assets (37,052)
(Decrease) in accounts
payable and accrued liabilities (94,845)
Increase in customer deposits 19,673 I
Increase in compensated absences 11,265
Net Cash Provided by Operating Activities 2,061,442
Cash Flows from Noncapital Financing Activities
Operating transfers (out) (1,612,986)
Net Cash (Used) by Financing Activities (1,612,986) I
Cash Flows from Capital and Related I
Financing Activities
Contributed capital 167,438
Capital expenditures for property,plant, I
and equipment (2,852,286)
Proceeds from the sale of equipment
Issuance of long—term debt 3,200,000
Principal payments on long—term debt (375,000) I
Interest payments on long—term debt (361,359)
Net Cash (Used) by Capital
and Related Financing Activities (221,207)
Cash Flows from Investing Activities
Interest on investments 152,306 1,485 I
Net Cash Provided by Investing Activities 152,306 1,485
Net Increase (Decrease) in Cash I
and Cash Equivalents 379,555 1,485
Cash and cash equivalents,beginning of year 1,710,134 29,854
Cash and Cash Equivalents, End of Year $ 2.089.689 $ 31339 I
See Notes to Financial Statements.
23
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Exhibit A-5
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I Totals
(Memorandum Only)
September 30, September 30,
I1995 1994
S 1,514,692 $ 921,105
I
744,370 692,954
I
(96,661) 24,365
(37,052) 13,100
(94,845) (189,886)
I
19,673 17,315
11,265 7,360
I
2,061,442 1,486,313
(1,612,986) (1,056,774)
I (1,612,986) (1,056,774)
I
167,438 290,217
I (2,852,286) (967,674)
9,667
3,200,000 I
(375,000) (310,000)
(361,359) (371,774)
I
(221,207) (1,349,564)
111
153,791 102,687
153,791 102,687
I381,040 (817,338)
1,739,988 2,557,326
I $ 2,121,028 $ 1,739,988
1 24
' CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
' NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Friendswood, Texas (the City), was incorporated on October 15, 1960. The City charter
provides for a City Council—City Manager form of government.The Mayor and six Council Members are
elected from the City at large serving three year terms. Currently,the City charter provides for a Council
term limitation of three terms.
The City Council is the principal legislative body of the City. The City Manager is appointed by a
majority vote of the City Council and is responsible to the Council for the administration of all the affairs
of the City. The City Manager is responsible for law enforcement, appointment and removal of
1 department directors and employees,supervision and control of all City departments,and preparation of
the annual budget. The Mayor presides at meetings of the City Council and can vote.
The City provides the following services: public safety, streets, parks and recreation, library, water and
sewer,sanitation, planning and zoning, building inspection,code enforcement,and general administrative
services.
' A. Reporting Entity
The combined financial statements of the City include all funds and operations which are controlled
by or dependent upon the City. The criteria considered in determining governmental activities to be
reported within the City's combined financial statements include the degree of oversight responsibility
exercised by the City Council over an organization, activity, or function. Oversight responsibility is
demonstrated by financial interdependency, selection of governing authority, designation of
' management,ability to significantly influence operations,and accountability for fiscal matters.
The City is the lowest level of government exercising oversight responsibility and control over all
' activities related to operations of the City within the boundaries of the City of Friendswood, Texas.
The City is not included in any other governmental reporting entity as defined by the Governmental
Accounting Standards Board,since the City Council is elected by the public and has decision making
authority, the power to designate management, the ability to significantly influence operations, and
' primary accountability for fiscal matters.
As indicated in Note 11, the City participates in a joint venture (Blackhawk Regional Waste
' Treatment Plant) with three other entities, under the authority of the Gulf Coast Waste Disposal
Authority. This venture is accounted for under the equity method in the City's Enterprise Fund.
' B. Fund Accounting
The accounts of the City are organized on the basis of funds or account groups, each of which is
considered to be a separate accounting entity. The operations of each fund are accounted for by
providing a set of self—balancing accounts which consist of each fund's assets, liabilities, fund equity,
revenues, and expenditures or expenses, as appropriate. The following paragraphs describe the
various fund types and account groups.
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Fund Accounting(continued)
Governmental Fund Types(Budgeted) ,
General Fund
The General Fund accounts for the resources used to finance all the operations of the City not
properly includable in other funds. The principal sources of revenue of the General Fund include
property taxes, sales and use taxes, franchise taxes, fines and forfeitures, permits and fees, and
charges for sanitation services. Expenditures include general government, public safety, public
works,community development,and community services.
Special Revenue Funds
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted or designated for specified activities.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of resources for the retirement of
general long—term debt and related costs. The primary source of revenue of the Debt Service
Fund is property taxes.
Capital Projects Funds '
The Capital Projects Funds are used to account for the financial resources to be used for the
acquisition or construction of major capital facilities financed principally by proceeds of long—term
debt. Capital project funds are budgeted on a project rather than an annual basis. 1
Proprietary Fund Type (Unbudgeted)
•
Enterprise Fund 1
The Enterprise Fund is used to account for the operations that provide water and wastewater
utility services to the public. These services are financed and operated in a manner similar to
private business enterprises where the intent of the Council is that costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis will be
financed or recovered primarily through user charges. Proprietary fund types follow generally
accepted accounting principles prescribed by the Governmental Accounting Standards Board
(the GASB),and all Financial Accounting Standards Board's standards issued prior to November
30, 1989. Subsequent to this date, the City accounts for its proprietary funds as presented by the
GASB.
Fiduciary Fund Types(Unbudgeted) 1
Trust Fund
The Non—Expendable Trust Fund (1776 Park) is used to account for assets held by the City in a
trustee capacity or as an agent for individuals, private organizations, other governments and/or
other funds. This fund is accounted for on the same basis as proprietary funds.
Agency Fund '
The Agency Fund(Deferred Compensation Fund) is used to account for assets held for employees
in accordance with the provisions of Internal Revenue Code Section 457. The Agency Fund is
custodial in nature (assets equal liabilities) and does not involve measurement of results of
operations.
26 '
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B.Fund Accounting(continued)
' Account Groups
General Fired Assets
' The General Fixed Assets Account Group is used to account for the City's land, buildings,
improvements,and equipment,except those recorded in proprietary and fiduciary fund types.
1 General Long—Term Debt
This account group is used to account for the City's liability for general obligation bonds,
certificates of obligation, notes payable, and capital leases which are payable from governmental
fund resources. The debt is offset by the amount available in the Debt Service Fund and the
amount to be provided in future years.
' C. Basis of Accounting
The basis of accounting is the method by which revenues and expenditures or expenses are recognized
in the accounts and reported in the financial statements. The accounting and financial reporting
treatment applied to a fund is determined by its measurement focus. All Governmental Fund Types
are accounted for using a current financial resources measurement focus. With this measurement
focus,only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds present increases (i.e., revenues and other financing sources)and decreases
' (i.e.,expenditures and other financing uses)in net current assets.
The Proprietary Fund Type and the Non—expendable Trust Fund are accounted for on a flow of
economic resources measurement focus. With this measurement focus, all assets and liabilities
associated with the operation of this fund are included on the balance sheet. Fund equity (i.e., net
total assets) is segregated into contributed capital and retained earnings components. Operating
statements for these funds present increases (i.e., revenues)and decreases (e.g., expenses) in net total
' assets.
The modified accrual basis of accounting is used by the Governmental Fund Types and Agency Fund.
' Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual,
i.e., both measurable and available. "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter to
be used to pay liabilities of the current period. Most types of revenue are recorded as revenues when
' received in cash because they are generally not measurable until actually received. Investment
earnings are recorded as earned since they are measurable and available.
' Under the modified accrual basis of accounting, expenditures (including capital outlay) are recorded
when the liability is incurred, except for general obligation debt principal and interest which are
recorded when paid rather than when incurred.
' The Proprietary Fund Type and Non—expendable Trust Fund are accounted for using the accrual
basis of accounting, whereby revenues are recognized in the period in which they are earned and
expenses are recognized in the period in which they are incurred.
1 27
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Budgets
Procedures in establishing budgetary data reflected in the financial statements are as follow: '
1. On or before the first day of August of each year, the City Manager shall 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.The Council shall
adopt the budget by ordinance on one reading on or before the 15th day of September or as soon
thereafter as practical. Adoption of the budget shall require an affirmative vote of at least a
majority of all members of the Council. Adoption of the budget shall constitute appropriations of
the amounts specified therein as expenditures from the funds indicated. If, during the fiscal year,
the City Manager certifies that there are available for appropriation, revenues in excess of those
estimated in the budget, the Council may make supplemental appropriation for the year up to the
amount of such excess.
2. At any time during the fiscal year, the City Manager may transfer part 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 agency to another.
3. Limitations: No appropriation for debt service may be reduced or transferred and no
appropriation may be reduced below any amount required by law to be appropriated or by more
than the amount of the unencumbered balance thereof.
4. Lapse of Appropriations: Every appropriation, except an appropriation for a capital expenditure,
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 under the purpose for which it
was made until it has been accomplished or abandoned. The purpose of any such appropriation
shall be deemed abandoned if three years pass without disbursement from or encumbrance of the
appropriation.
5. Annual appropriations budgets are adopted for the General, Special Revenue, and Debt Service
Funds are prepared on a basis consistent with generally accepted accounting principles (GAAP)at
the departmental level, the legal level of budgetary control. An annual non—appropriated budget
is adopted for the City's Water and Sewer Enterprise Fund on a non—GAAP basis for managerial
control. Project length budgets are adopted for Capital Projects Funds and amended on an annual
basis to reflect the uncompleted portion of the projects.
6. Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting — under which purchase orders, contracts, and other commitments for
the expenditure of resources are recorded to reserve that portion of the applicable appropriation
— is utilized in the governmental funds. Encumbrances outstanding at year end are reported as
reservations of fund balances and do not constitute expenditures or liabilities because the
commitments will be honored during the subsequent year. Encumbrances that lapse are
reappropriated in the ensuing years budget. '
During the 1995 fiscal year,expenditures exceeded appropriations at the departmental level(the legal
level of compliance)in the General Fund and the Centennial Special Revenue Fund.
28
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. Cash and Cash Equivalents
' For the purpose of the statement of cash flows, the Proprietary Fund Type considers temporary
investments with original maturities of three months or less to be cash equivalents.
' F. Interfund Transactions
' Interfund transactions that would be treated as revenues, expenditures, or expenses if they involved
organizations external to the governmental unit are accounted for as revenues, expenditures, or
expenses in the funds involved. Transactions which constitute reimbursements of a fund for
expenditures or expenses initially made from that fund which are properly attributable to another
' fund are recorded as expenditures or expenses in the reimbursing fund and primarily as reductions of
the expenditure or expense in the fund that is reimbursed.
' Non—recurring or non—routine transfers of equity between funds are reported as additions to or
reductions of the fund balance of Governmental Funds. Transfers of equity to the Enterprise Fund
are treated as contributed capital, and such transfers from the Enterprise Fund are reported as
reductions of retained earnings or contributed capital, as is appropriate in the circumstances. All
' other legally authorized transfers are treated as operating transfers and are included in the results of
operations of both the Governmental and Proprietary Fund Types.
G. Fund Equity
Contributed capital is recorded in the Enterprise Fund which has received capital grants,
' contributions from developers and customers,and/or other funds of the City. Reserved fund balances
represent those portions of fund balance not appropriable for expenditure or legally segregated for a
specific future use. Designated fund balances represent management's tentative plans for future use
of financial resources.
H. Compensated Employee Absences
The City's employees earn vacation and sick leave which may either be taken or accumulated, up to
certain amounts,until paid upon termination or retirement.
t The City accrues vacations and sick leave based on criteria established by the Governmental
Accounting Standards Board. For all funds, this liability reflects amounts attributable to cumulative
employee services previously rendered, where the payment is probable and can be reasonably
' estimated. The liability for accumulated vacation and sick leave,as of September 30, 1995, has been
recorded in the General and Enterprise Funds since the liability is to be liquidated with expendable
available resources.
1
29
1
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
I. Fixed Assets
General Fixed Assets
General fixed assets have been acquired or constructed for general governmental purposes. Such
fixed assets are recorded as expenditures in the Governmental Funds and capitalized at historical cost
in the General Fixed Assets Account Group. Gifts or contributions of general fixed assets are
recorded at estimated fair market value upon receipt. Public domain ("infrastructure") general fixed
assets consisting of certain improvements other than buildings, including roads, bridges, curbs and
gutters, streets and sidewalks, drainage systems, and lighting systems are capitalized as general fixed
assets. No depreciation has been provided on general fixed assets.
Enterprise Fund Fixed Assets
The land,buildings,and equipment owned by the Enterprise Fund are recorded at historical cost or at
estimated fair market value for contributed assets. Interest costs during construction are capitalized
when the effects of capitalization materially impact the financial statements. Some of the assets on
which such interest was capitalized are still under construction and are classified as construction in
progress in the Enterprise Fund. Depreciation of buildings and equipment is provided using the
straight—line method over the following estimated useful lives:
Years
Water and sewer system 40-50
Equipment 5-10
Additions to the water and sewer systems are financed principally from sources other than Enterprise
Fund operating revenues such as long—term debt and contributed capital. The costs of normal
maintenance and repairs are charged to operations as incurred. Improvements and betterments which
extend the useful lives of the assets are capitalized.
J. Total Columns on Combined Statements
Total columns presented in the combined financial statements are captioned(Memorandum Only) to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not
represent financial position, results of operations, or changes in f • ' 'o on a consolidated
basis in conformity with generally accepted accounting principles. nterfund eliminations have not
been made in the aggregation of this data. Certain reclassifications hav been made to the prior year totals
to conform with the current year presentation.
r r
I
I
30 '
I
I
CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
I
NOTES TO FINANCIAL STATEMENTS
INOTE 2 — DEPOSITS (CASH) AND TEMPORARY INVESTMENTS
The City's cash and temporary investments,at September 30, 1995,are shown below.
I ,/i, Carrying Market
PI/ll� (,� v Amount Value
I (.�/r 1 Cash _ $ 19,067 $ 19,067
United States Government Sr 2,610,000 2,610,000
Texpool 1,837,533 1,837,533
I
Lone Star Investment Pool 1,621,227 1,621,227
Total Temporary Invest 6,068,760 6,068,760
I
Total Cash and Temporary Investments $ 6,087.827 $ 6,087,827
IDeposits(Cash)
The City's funds are required to be deposited and invested under the terms of a depository contract
I pursuant to state statutes. The depository bank deposits, for safekeeping and trust with the City's agent
bank, approved pledged securities in an amount sufficient to protect City funds on a day—to—day basis
during the period of the contract. The pledge of approved securities is waived only to the extent of the
depository bank's dollar amount of Federal Deposit Insurance Corporation("FDIC")Insurance.
ICredit Risk Categorization
The City's cash deposits, at September 30, 1995, were entirely covered by FDIC insurance or by
I pledged collateral held by the City's agent bank in the City's name. The City's deposits were
undercollateralized at the time of the largest tax deposits during the year. Management has addressed
this situation with the depository bank and procedures have been implemented by the bank to correct
undercollateralization problems in the future.
ITemporary Investments
I
Statutes authorize the City to invest in obligations of the U.S.Treasury or the State of Texas,certain U.S.
agencies, certificates of deposit, money market savings accounts, certain municipal securities, repurchase
agreements, common trust funds, and other investments specifically allowed by the Public Funds
Investment Act of 1987,as amended. Temporary investments are recorded at cost.
ICredit Risk Categorization
Temporary investments,with the exception of balances in two public funds investment pools(Texpool
and Lone Star Investment Pool),are held by the City's agent in the City's name.
I
Balances in Texpool and Lone Star Investment Pool are not evidenced by securities that exist in
physical or book entry form and accordingly are not subject to credit risk categorization. However,
I the investment pools'policies require that local government deposits be used to purchase investments
authorized by the Public Funds Investment Act of 1987,as amended.
I
I 31
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS I
NOTE 3 — PROPERTY TAXES I
The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed
values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at
market value and assessed at 100% of appraised value. The City's property taxes are billed and collected
by the City's Tax Assessor/Collector. Such taxes are applicable to the fiscal year in which they are levied
and become delinquent with an enforceable lien on property on February 1 of the subsequent calendar
year. '
Property taxes are prorated between operations and debt service based on rates adopted for the year of
the levy. For the current year,the City levied property taxes of$.663 per$100 of assessed valuation which
were prorated between operations and debt service in the amounts of $5140 and S.1490, respectively. I
The resulting adjusted tax levies were approximately$4.4 and$13 million for operations and debt service,
respectively, based on a total adjusted taxable valuation of approximately $869 million for the 1994 tax
year. I
Property taxes receivable,at September 30, 1995,consists of the following:
Debt I
General Service
Tax Year Fund Fund Total
1994 $ 48,261 $ 13,990 $ 62,251 I
1993 22,313 7,127 29,440
1992 16,161 5,200 21,361
1991 15,635 5,713 21,348 I
1990 7,947 2,909 10,856
1989 and prior 84,771 33,505 118,276
$ 195,088 $ 68.444 $ 263.532 I
NOTE 4 — LAND, BUILDINGS AND EQUIPMENT I
A summary of changes in the General Fixed Assets Account Group, for the year ended September 30,
1995,follows:
Balance, Balance, I
October 1, Retirements September 30,
1994 Additions and Transfers 1995 I
Land $ 2,951,139 $ $ $ 2,951,139
Buildings 3,482,953 3,482,953
Improvements other
than buildings 13,857,275 451,694 14,308,969
Furniture and equipment 4,063,924 418,233 (2,000) 4,480,157
Construction in progress 714,132 2,481,889 (451,694) 2,744,327 I
Totals $ 25.069,423 $ 2.900,122 $ (1000) $ 27,967545
I
32 I
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
I
NOTES TO FINANCIAL STATEMENTS
INOTE 4 - LAND, BUILDINGS AND EQUIPMENT(continued)
Construction in progress and remaining commitments under related construction contracts for general
Igovernment construction projects at September 30, 1995 follow:
Authorized Total in Remaining
Project Description Contract Progress Commitment
ICity hall building $ 1,646,904 $ 1,595,971 $ 50,933
City hall - other 366,187 366,187
Melody Lane Street 230,967 139,667 91,300
I Willowick Street 80,698 65,535 15,163
Heritage - Woodlawn 236,240 190,704 45,536
Clover Acres Improvements 14,272 14,272
I Stevenson Park 244,964 194,253 50,711
Stevenson Park Pavilion 59,949 59,949
Oak Drive 13,570 6,666 6,904
Miscellaneous 111,123 111,123 I
S 3.004.874 $ 2.744 327 $ 260.547
IA summary of Enterprise Fund fixed assets at September 30, 1995,follows:
I Land $ 252,528
Plant and equipment 9,833,157
Plant and equipment- Blackhawk 9,749,543
I Water and sewer lines 11,286,105
Construction in progress 2,718,040
33,839,373
ILess accumulated depreciation (8,386,854)
Total S 25.452.519
I Construction in progress and remaining commitments under related construction contracts for water and
sewer construction projects at September 30, 1995 follow:
I
Authorized Total in Remaining
Project Description Contract Progress Commitment
Wilderness Trails Water $ 1,400 $ 1,400 $
I
I&I Analysis 83,069 83,061 8
South Friendswood Water Line 2,270,137 331,440 1,938,697
Elevated Storage Tank 508,256 502,006 6,250
I Waste Water Diverson 187,480 56,276
131,204
Blackhawk WWTP Improvements 1,728,607 1,728,607
Forest Bend Lift Station 88,975 15,250 73,725
I $ 4.867.924 $ 2.718.040 $ 2.149.884
I
33
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5 — LONG—TERM DEBT I
The City issues a variety of long—term debt instruments in order to acquire and/or construct major
capital facilities and equipment for general government and enterprise fund activities. These instruments I
include general obligation bonds, certificates of obligation, revenue bonds, notes payable, and capital
leases. These debt obligations are secured by either future tax revenues, water and sewer system
revenues, or liens on property and equipment. Debt obligations which are intended to be repaid from
water and sewer system revenues have been recorded in the City's Enterprise Fund. All other long—term I
obligations of the City have been recorded in the General Long—Term Debt Account Group.
At September 30, 1995, the City reallocated certain debt issues,based on the original purpose of the debt, I
between the General Long—Term Debt Account Group and the Enterprise Fund to correctly reflect
enterprise net income. This reallocation resulted in a net increase in Enterprise Fund debt and a net
decrease to the General Long—Term Debt Account Group of$2,538,489.
Bonds Payable and Certificates of Obligation I
A summary of the terms of general obligation bonds,combination tax and revenue bonds,and certificates
of obligation outstanding and their corresponding allocations to the General Long—Term Debt Account
Group and the Enterprise Fund at September 30, 1995 follows: I
General
Series and Original Final Interest Long—Term Enterprise I
Issue Amount Maturity Rate (%) Debt Fund
General Obligation Bonds
1986 Refunding Bonds
10,650,777 2004 4.25 — 7.90 $ 756,677 $ 619,101 I
1993 Refunding Bonds
6,555,000 2004 2.25 — 4.625 1,582,500 4,747,500 I
2„339,177 5,366,601
Combination Tax and Revenue
Certificates of Obligation
1988 Series I
4,400,000 1997 7.0 — 8375 545,000
1992 Series
5,000,000 2008 530 — 6.75 2,130,000 2,755,000 I
1995 Series
3,200,000 2010 5375 — 7.375 3,200,000 I
2,130,000 6,500,000
Revenue Bonds
1969 Series
700,000 1999 5.5 — 6.125 62,900 122,100 1
1979 Series
1,750,000 1996 5.5 — 6.125 5,000 I
62,900 127,100
Total Bonds and Certificates of Obligation $ 4,532.077 $ 11,993,701
I
34
1
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
' NOTE 5 — LONG—TERM DEBT (continued)
Annual debt service requirements for bonds and certificates of obligation are as follows:
' General
Long—Term Enterprise
Fiscal Year Debt Fund
' 1996 $1997 803,970 $ 1,569,686
509,160 1,838,749
1998 563,831 1,565,987
1999 554,016 1,547,760
2000 807,211 1,296,477
Thereafter 3,140,715 9,055,221
6,378,903 16,873,880
less interest portion 1,846,826 4,880,179
Total requirements $ 4.532.077 $ 11.993.701
Accreted Interest on Premium Compound Interest Bonds
A portion of the bonds sold in the Series 1986 refunding bond issue were premium compound interest
bonds. These obligations have par values of$440,777 and maturity values of$1,305,000.The interest on
these obligations will be paid upon maturity in the fiscal years ending September 30,2000, through 2004.
The accreted values of these bonds at September 30, 1995, is approximately $884,752, of which $389,138
has been allocated to the Enterprise Fund and$486,614 has been allocated the the General Long—Term
' Debt Account Group. Accordingly, accreted interest on these bonds of$199,789 and$244,186 has been
recorded in the Enterprise Fund and the General Long—Term Debt Account Group,respectively.
' Note Payable
During the year ended September 30, 1994, the City entered into an agreement to purchase a tract of
land for building a sports complex. As a result of this agreement, the City issued a note to the seller of
the property for approximately $598,567. The Note is secured by a first lien Deed of Trust against the
property and is payable in three annual installments bearing an interest rate of 6 percent. The
installments are due on or before September 15,each year. Anticipated future debt service requirements
for this note are as follow:
Debt Service
Fiscal Year Requirements
t1996 $ 225,916
1997 192,713
Total 418,629
less interest portion 33,987
Note Payable $ 384.642
35
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5 — LONG—TERM DEBT (continued)
Obligations Under Capital Leases
The City entered into capital lease agreements in order to purchase management information system
equipment for City hall and the police and fire department. Following is a summary of future lease
payments due on this equipment:
Lease
Fiscal Year Obligation
1996 $ 71,725
1997 71,725
1998 71,725
1999 37,731
2000 2,200
Total 255,106
less interest portion 32,063
Obligations under capital leases $ 223,043 ,
Prior Year Defeasance of Debt I
In prior years, the City defeased certain general obligation and revenue bonds by placing the proceeds of
the 1986 and 1993 refunding bonds in an irrevocable trust to provide for all future debt service payments
on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not
included in the City's financial statements. On September 30, 1995, approximately S7.9 million of bonds I
outstanding are considered defeased.
Changes in Long—Term Debt • I
The following are summaries of long—term debt transactions of the City for the year ended
September 30, 1995.
General Long—Term Debt Account Group '
Balance, Balance,
October 1, Retirements September 30,
1994 Additions do Transfers 1995
General obligation bonds $ 5,620,777 $ $ (3,281,600) $ 2,339,177
Revenue bonds 62,900 62,900
Certificates of obligation 2,160,000 (30,000) 2,130,000
Notes payable 598,567 (213,925) 384,642
Obligations under capital 166,461 117,176 (60,594) 223,043
leases
Accreted interest on premium
compound interest bonds 380,118 63,857 (199,789) 244,186
$ 8.925.923 $ 181,033 $ (3.723.008) $ 5383.948 I
36
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
INOTE 5 — LONG—TERM DEBT(continued)
Changes in Long—Term Debt(continued)
IEnterprise Fund Long—Term Debt
Balance, Balance,
I October 1, Additions
& September 30,
1994 Transfers Retirements 1995
Revenue bonds $ 330,000 $ $ (202,900) $ 127,100
I General obligation bonds 2,990,000 2,401,601 (25,000) 5,366,601
Certificates of obligation 3,510,000 3,200,000 (210,000) 6,500,000
Accreted interest on premium
Icompound interest bonds 199,789 199,789
$ 6.830.000 S 5.801390 $ (437.900) S 12.193.490
Summary of Long—term Debt Requirements
The annual requirements to amortize all long—term debt outstanding at September 30, 1995, including
Iinterest payments are as follows:
General
Fiscal Long—Term Enterprise
I
Year Debt Fund Total
1996 $ 1,101,611 $ 1,569,686 $ 2,671,297
I
1997 773,598 1,838,749
1,565,987 2,612,347
1998 635,556 2,201,543
1999 591,747 1,547,760 2,139,507
2000 809,411 1,296,477 2,105,888
I 2001 408„361 977,951 1,386,312
2002 441,304 937,868 1,379,172
2003 442,039 941,121 1,383,160
I
2004 445,052 935,744
873,494 1,380,796
2005 346,320 1,219,814
2006 350,238 871,064 1,221,302
2007 352,913 867,935 1,220,848
I
2008 354,488 872,488 1,226,976
2009 884,175 884,175
2010 893,381 893,381
I
$ 7,051638 S 16.873.880 S 23,926.518
I
I
37
i
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 6 — FUND EQUITY
Retained Earnings
A portion of retained earnings in the Enterprise Fund is reserved for the following: '
Water and sewer construction $ 387,539
Surface water construction 38,254
Central service area construction 791,407
Debt service 199,643
$ 1.416,843 111
Contributed Capital
The following is a schedule of changes in contributed capital for the Enterprise Fund for the year ended I
September 30, 1995:
Contributed capital at beginning of year $ 15,511,200 '
Additions
Reallocation of long—term debt (2,538,490)
Impact fees 167,438
Contributed Capital at End of Year $ 13.140.148
Fund Balance
Fund Balances in the various Governmental Fund Types are reserved or designated as follows:
Special Capital
General Revenue Debt Service Projects
Reserved for:
Encumbrances $ 91,780 $
Debt service 48,167
Total reserved fund
balance $ 91,780 $ 48,167
Designated for:
Emergency
operations $ 900,000 $ $
Police investigations 8,248
Centennial observance 29,973
Fire/EMS 85,937
Authorized
construction 1,088,128_ I
Total designated fund
balance $ 900.000 $ 124.158 $ 1,088,128
In the Non—expendable Trust Fund,S67,200 of the fund balance is reserved for an endowment.
38 1
I
ICITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
INOTE 7 — INTERFUND TRANSACTIONS
Operating transfers between funds during the 1995 year were as follow:
I Operating Operating
Transfer From Transfer To Amounts
I General Fund Special Revenue Fund S 11,024
General Fund Debt Service Fund 54,200
General Fund Capital Projects Fund 334,033
Special Revenue Fund General Fund 35,000
I Special Revenue Fund Capital Projects Fund 13,700
Enterprise Fund General Fund 474,844
Enterprise Fund Debt Service Fund 20,440
I Enterprise Fund Debt Service Fund 180,000
Enterprise Fund Capital Projects Fund 937,702
S 1060,943
I
NOTE 8 —IMPACT FEES
1 On April 27, 1990, the City, in conformance with the provisions of Senate Bill 336 and House Bill 1786,
adopted a Capital Improvements Plan for Water Supply and Distribution Improvements and for
Wastewater Treatment and Collection Improvements that were needed to serve new developments. An
IImpact Fee Structure to defray the costs of these improvements was also adopted.
In recent years the City has committed funds to the construction of surface water facilities and wastewater
I capacity necessary to provide service to current residents, as well as for projected development within the
City. The cost of water and wastewater capacity that has been constructed to support new growth is
reflected in the City Wide impact fees.
I Based on population growth projections, two areas (Melody Lane and Central Service Area) within the
City were identified for the proposed extension of water distribution and wastewater collection systems
and are included in the impact fee structure. An impact fee was also included to defray the costs of water
I distribution facilities extended to the Bay Area Boulevard Service Area under the terms of a contractual
agreement with Bay Area Land Company,Ltd.
The Capital Improvements Plan and Impact Fee structure was amended by City Council on January 7,
I 1991, to include an impact fee for sanitary sewer collection system costs serving the area known as Mills,
Murphy,and Briarmeadow Avenue between Sunset Drive and Greenbriar.
The following is a summary of the Impact Fees that apply on a City Wide Basis and for each of the
I designated service areas. The fees represent the charge for single equivalent service units as defined in
the Capital Improvement Plan.
I
I
111
39
CITY OF FRIENDSWOOD, TEXAS 111
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 8 —IMPACT FEES (continued)
Fee Per Single
Equivalent
Service Unit
City Wide Impact Fees
Surface water facilities $ 685
Wastewater treatment facilities 69
Impact fee study and update study 36
Total City Wide Impact Fee $ 790
Water Distribution Impact Fees
Melody Lane service area $ 854
Bay Area Boulevard service area 294
South Friendswood service area 293
Wastewater Collection Impact Fees
Melody Lane service area $ 450
Mills,Murphy,Briarmeadow Avenue 2,532
South Friendswood Service Area
Area A 378
Area B-1 378
Area B-2 378
Area C 285
Area D 161
Area E-1 784
Area E-2 784
Area E-3 161
Area E-4 161
Area F 378
The impact fees are deposited into a separate, interest bearing bank account in compliance with the
referenced legislation and transferred to the Enterprise Fund cash account as needed. The impact fees
and interest income for each service area are maintained in separate equity schedules.Interest is applied
based on a percentage of the daily equity balance of each service area.
The portion of City Wide Impact Fees collected for Surface Water Facilities are used to meet the current
debt service obligations for the 1988 Certificates of Obligations issued to fund the surface water facilities
capital improvements. The remaining City Wide Impact Fees collected for Wastewater Treatment
Facilities and Impact fee study and Update Study are used to fund other water and wastewater system
improvements. All Impact Fees collected for specific service areas are used to fund new capital
improvements for those designated areas.
1
40
CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
' NOTE 9 — RETIREMENT PLANS
A. Texas Municipal Retirement System
111
Plan Description and Provisions
The City provides pension benefits for all of its full—time employees through a non—traditional,joint
' contributory, defined contribution plan in the state—wide Texas Municipal Retirement System
('TMRS"), one of over 570 administered by TMRS, an agent multiple—employer public employee
retirement system. It is the opinion of TMRS management that the plans in TMRS are substantially
defined contribution plans, but they have elected to provide additional voluntary disclosure to help
foster a better understanding of some of the non—traditional characteristics of the plan.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the
City—financed monetary credits, with interest. At the inception of the plan, the City granted
' monetary credits for service rendered before the plan began of a theoretical amount equal to two
times what would have been contributed by the employee,with interest, prior to establishment of the
plan. Monetary credits for service since initiation of the plan are a percent(100%, 150%,or 200%)of
the employee's accumulated contributions. In addition, the City can grant as often as annually
another type of monetary credit referred to as an updated service credit which is a theoretical amount
which, when added to the employee's accumulated contributions and the monetary credits for service
since the plan began, would be the total monetary credits and employee Contributions accumulated,
with interest if the current employee contribution rate and the City matching percent had always been
in existence and if the employee's salary had always been the average of his salary in the last three
years that are one year before the effective date. At retirement,the benefit is calculated as if the sum
of the employee's accumulated contributions with interest and the employer—financed monetary
credits with interest were used to purchase an annuity.
iMembers can retire at ages 60 and above with ten or more years of service or with 25 years of service
regardless of age. The plan also provides for death and disability benefits. A member is vested after
ten years, but he must leave his accumulated contributions in the plan. If a member withdraws his
' own money,he is not entitled to the employer—financed monetary credits,even if he was vested. The
plan provisions are adopted by the governing body of the City,within the options available in the state
statutes governing TMRS and within the actuarial constraints also in the statutes.
' Contributions
The contribution rate for the employees is 6%, and the City's matching percent is currently 150% of
that contribution, both as adopted by the governing body of the City. Under the state law governing
' TMRS, the City contribution rate is annually determined by the actuary. This rate consists of the
normal cost contribution rate and the prior service contribution rate, both of which are calculated to
be a level percent of payroll from year to year. The normal cost contribution rate finances the
' currently accruing monetary credits due to City matching percent,which are the obligation of the City
as of an employee's retirement date, not at the time the employee's contributions are made. The
normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the
obligation of the City to each employee at the time his retirement becomes effective. The prior
' service contribution rate amortizes the unfunded actuarial liability over the remainder of the plan's
25—year amortization period. When the City periodically adopts updated service credits and
increases in annuities, the increased unfunded actuarial liability is to be amortized over a new
' 25—year period. Currently, the unfunded actuarial liability is being amortized over the 25—year
period which began January 1991. The unit credit actuarial cost method is used for determining the
City contribution rate. Contributions are made monthly by both the employees and the City. Since
the City needs to know its contribution rate in advance to budget for it, there is a one—year lag
between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes
into effect.
' 41
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 9 — RETIREMENT PLANS (continued)
A. Texas Municipal Retirement System(continued)
Contributions (continued) '
The City's total payroll in fiscal year 1994 was$4,277,081,and the City's contributions were based on a
payroll of $3,892,013. Both the City and the covered employees made the required contributions,
amounting to $248,569 (6.01% of covered payroll for the months in calendar year 1994 consisting of
5.46% normal cost plus 0.55% to amortize the unfunded actuarial liability, and 6.50% for the months
in calendar year 1995 comprised of 5.61% normal cost plus 0.89% to amortize the unfunded actuarial
liability) for the City and $233,522 (6%) for the employees. The City adopted changes in the plan
subsequent to the previous actuarial valuation, which had the effect of increasing the City's
contribution rate for 1995 by 0.45%of payroll. There were no related—party transactions.
Funding Status and Progress
Even though the substance of the City's plan is not to provide a defined benefit in some form, some
additional voluntary disclosure is appropriate due to the non—traditional nature of the defined
contribution plan which had an initial unfunded pension benefit obligation due to the monetary
credits granted by the City for services rendered before the plan began and which can have additions
to the unfunded pension benefit obligation through the periodic adoption of increases in benefit
credits and benefits. Statement No. 5 of the Governmental Accounting Standards Board (GASB 5)
defines pension benefit obligation as a standardized disclosure measure of the actuarial present value
of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in
the future as a result of employee service to date. The measure is intended to help users assess the
funding status of public employee pension plans, assess progress made in accumulating sufficient
assets to pay benefits when due,and make comparisons among public employee pension plans.
The pension benefit obligation shown below is similar in nature to the standardized disclosure
measure required by GASB 5 for defined benefit plans except that there is no need to project salary
increases since the benefit credits earned for service to date are not dependent upon future salaries.
The calculations were made as part of the annual actuarial valuation as of December 31, 1994.
Because of the money— purchase nature of the plan, the interest rate assumption,currently 8.5% per
year, does not have as much impact on the results as it does for a defined benefit plan. Market value
of assets is not determined for each City's plan, but the market value of assets for TMRS as a whole
was 98.6%of book value as of September 31, 1994.
Pension Benefit Obligation
Annuitants currently receiving benefits $ 432,551
Terminated employees 502,822
Current Employees:
Accumulated employee contributions,including allocated invested earnings 2,079,550
Employer—financed vested 2,386,481
Employer—financed nonvested 460,748
Total Pension Benefit Obligation 5,862,152 '
Net assets available for benefits,at book value 5,190,936
Unfunded Pension Benefit Obligation $ 671,216
42
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
' NOTE 9 — RETIREMENT PLANS (continued)
A. Texas Municipal Retirement System (continued)
' Unfunded Pension Benefit Obligation
The book value of assets is amortized cost for bonds and original cost for short—term securities and
' stocks. The assumptions used to compute the actuarially determined City contribution rate are the
same as those used to compute the pension benefit obligation. The numbers above reflect the
adoption of changes in the plan since the previous actuarial valuation, which had the effect of
' increasing the pension benefit obligation by$279,159.
Trend information gives an indication of the progress made in accumulating sufficient assets to pay
benefits when due. Ten—year trend information may be found in Table 14 of the Statistical Section of
' the City's comprehensive annual financial report. For the years ended September 30, 1993, 1994,and
1995, respectively, net assets available for benefits were sufficient to fund 93%, 84%,and 87% of the
PBO. The unfunded PBO represented 9%, 25%, and 17% of the annual payroll for employees
' covered by TMRS for 1993, 1994, and 1995, respectively. In addition, the City's contributions to
TMRS were 6.2%, 6.0%, and 6.0%, respectively, of annual covered payroll for the years ending
September 30, 1993, 1994,and 1995.
' B.Deferred Compensation Plan
The City offers its employees a tax—deferred compensation plan meeting the requirements of Internal
Revenue Code Section 457. The plan was established by City Ordinance which appointed ICMA
Retirement Corporation as plan administrator. The City's fiduciary responsibility is to remit
employee deferred compensation to the administrator on a regular basis. The deferred compensation
' is not available to employees until termination, retirement, death, or emergency. At September 30,
1995,the plan assets had a market value of$586,995.
' All amounts of compensation deferred under the plan, all property and rights purchased with those
amounts, and all income attributable to those amounts, property, or rights are (until paid or made
available to the employee or other beneficiary) solely the property and rights of the City (without
being restricted to the provisions of the benefits under the plan), subject only to the claims of the
' City's general creditors. Participants' rights under the plan are equal to those of general creditors of
the City in an amount equal to the fair market value of the deferred account for each participant.
43
1
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 10 — SOUTHEAST WATER PURIFICATION PLANT
The City has entered into a contract with the City of Houston for constructing, operating, and
maintaining a water purification plant known as Southeast Water Purification Plant. The City's pro
rata share of the actual production construction costs of the project is 3.75 percent. The City's pro
rata share of the actual pumping construction costs is 1.33 percent.
The City began receiving water from the plant on October 15, 1990. The City is billed on a monthly
basis for the actualgallons of water received times the City's pro rata share of actual costs. At the end
of each quarter, the City of Houston computes the total operation and maintenance expense for the
quarter just ended,recalculates the cost per one thousand gallons,and adjusts previous billings on the
next invoice.
The relationship of the parties is of a fiduciary character. No partnership or joint venture is created by
this contract.
NOTE 11 — BLACKHAWK REGIONAL WASTE TREATMENT PLANT
The City has entered into an arrangement with the Gulf Coast Waste Disposal Authority for the
operation and maintenance of a joint treatment plant known as Blackhawk Regional Waste Treatment
Plant. The City of Friendswood, the City of Houston, Harris County MUD No. 55, and CDC, Inc. (the
"participants") share in the expense of operation and maintenance based on their respective usage on a
monthly basis. The percentages of equity in the joint venture based on their respective capacity rights at
September 31, 1995 are as follows:
City of Friendswood 52.47 %
City of Houston 16.18
Harris County MUD No.55 20.27
Baybrook MUD No. 1 11.08
100.00 % '
An annual budget for operations is submitted to the Gulf Coast Waste Disposal Authority each year. The
Gulf Coast Waste Disposal Authority is the governing authority and consists of nine members (three
appointed by the governor, three appointed by Harris County, Galveston County, and Chambers County,
and three appointed by the participants).
The following information on the joint venture was available in the December 31, 1994 audited financial
statements of the Gulf Coast Waste Disposal Authority:
Joint
Venture
Total assets $ 361,124 111
Total liabilities — all current (361,124)
Total revenues 1,349,138
Total expenses (1,349,138)
$ —0—
44
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I
I
I
I
I
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
ISTATEMENTS AND SCHEDULES
W
A
mi
0
m - - N - - NM NM M NM N - I
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.
I
CITY OF FRIENDSWOOD, TEXAS '
Exhibit B-1
GENERAL FUND I
COMPARATIVE BALANCE SHEET
September 30, 1995 and 1994 I
1995 1994 I
Assets
Cash and temporary investments $ 2,461,306 $ 2,188,156 I
Receivables
Taxes 195,088 214,671
Customer accounts 156,397 155,270 ,
Other 46,113 53,780
Other assets 71,240 63,782
Total Assets $ 2,930,144 $ 2,675,659 I
Liabilities and Fund Balance I
Liabilities I
Accounts payable and accrued liabilities $ 462,577 356,850
Compensated absences 718,890 678,395
Deferred revenue 303,2,88 308,006
Total Liabilities 1,484,755 1,343,251
Fund Balance
Reserved for encumbrances 91,780 164,863
Unreserved:
Designated for emergency operations 900,000 850,000 I
Undesignated 453,609 317,545
Total Fund Balance 1,445,389 1,332,408 I
Total Liabilities and Fund Balance $ 2,930,144 $ 2,675,659
I
I
I
I
45
1
CITY OF FRIENDSWOOD, TEXAS
Exhibit B-2
' GENERAL FUND Page 1 of 7
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
' BUDGET AND ACTUAL
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
I
1995
I Variance
Favorable 1994
Budget Actual (Unfavorable) Actual
Revenues
I Property taxes $ 4,575,812 $ 4,544,589 $ (31,223) $ 4,206,305
Sales taxes 1,013,810 1,028,528 14,718 1,001,832
Franchise fees 658,381 863,183 204,802 570,031
I
Sanitation 1,055,654 1,085,149 29,495 966,066
Fines and forfeitures 237,150 266,287 29,137 217,411
Permits and fees 356,456 234,518 (121,938) 296,003
Donations 7,990 10,083 2,093 20,447
I Intergovernmental 47,318 46,060 (1,258) 48,101
Interest on investments 92,800 173,781 80,981 97,880
Other 132,173 152,543 20,370 117,591
ITotal Revenues 8,177,544 8,404,721 227,177 7,541,667
Expenditures
I General Government:
Mayor and Council:
Personnel services 376 428 (52) 252
Supplies 875 1,601 (726) 2,216
IOther services and charges 27,598 30,905 (3,307) 17,902
Total Mayor and Council 28,849 32,934 (4,085) 20,370
ICity Manager:
Personnel services 188,030 185,186 2,844 181,875
Supplies 4,750 3,338 1,412 4,837
III
Repairs and maintenance 700 461 239 1,028
Other services and charges 28,541 22,084 6,457 13,929
ITotal City Manager 222,021 211,069 10,952 201,669
City Secretary:
Personnel services 119,057 118,796 261 113,643
I
Supplies 3,270 5,374 (2,104) 3,662
Repairs and maintenance 1,450 1,310 140 706
Other services and charges 26,889 25,938 951 32,591
I Capital outlay 6,000 6,000
Capital equipment reserve 3,000 3,000
Total City Secretary 159,666 151,418 8,248 150,602
I 46
1
CITY OF FRIENDSWOOD, TEXAS I
Exhibit B-2
GENERAL FUND Page 2 of 7 I
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL I
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994 I
1995
Variance I
Favorable 1994
Budget Actual (Unfavorable) Actual
Expenditures (continued)
General Government: (continued)
Finance:
Personnel services $ 245,922 $ 247,751 $ (1,829) $ 230,437
Supplies 10,350 9,815 535 8,219 '
Repairs and maintenance 250 195 55 236
Other services and charges 27,368 29,033 (1,665) 25,698
Total Finance 283,890 286,794 (2,904) 264,590 I
Human Resources:
Personnel services 92,116 88,299 3,817 76,326 '
Supplies 5,714 3,599 2,115 4,531
Repairs and maintenance 1,350 290 1,060 110
Other services and charges 17,891 13,815 4,076 15,565
Total Human Resources 117,071 106,003 11,068 96,532 II
Administration: • I
Other services and charges 307,370 259,392_ 47,978 264,972
Total Administration 307,370 259,392 47,978 264,972
Municipal Court: I
Personnel services 107,877 96,489 11,388 97,222
Supplies 3,952 2,470 1,482 3,694 '
Repairs and maintenance 100 100 60
Other services and charges 11,205 12,568 (1,363) 8,101
Total Municipal Court 123,134 111,527 11,607 109,077 I
Computer Services:
Personnel services 52,279 42,498 9,781 44,139 I
Supplies 12,675 12,228 447 12,949
Repairs and maintenance 57,116 43,716 13,400 39,267
Other services and charges 87,032 82,238 4,794 142,518
Capital outlay 244,127 141,893 102,234 132,132 I
Capital equipment reserve 14,151 14,151
Total Computer Services 467,380 322,573 144,807 371,005
Total General Government 1,709,381 1,481,710 227,671 1,478,817
47 I
I
I
CITY OF FRIENDSWOOD TEXAS
Exhibit B-2
I GENERAL FUND Page 3 of 7
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
' BUDGET AND ACTUAL
Year Ended September 30, 1995
I
with comparative actual balances for the Year Ended September 30, 1994
1995
I Variance
Favorable 1994
Budget Actual (Unfavorable) Actual
I Expenditures (continued)
Public Safety:
Police Services:
Personnel services $ 1,672,873 $ 1,706,578 $ (33,705) $ 1,597,018
I Supplies 87,958 95,023 (7,065) 79,785
Repairs and maintenance 87,712 87,876 (164) 77,918
Other services and charges 79,255 73,658 5,597 70,394
Capital outlay 159,397 205,310 (45,913) 30,267
ITotal Police Services 2,087,195 2,168,445 (81,250) 1,855,382
Communications:
I Personnel services 363,103 352,552 10,551 285,465
Supplies 5,899 4,472 1,427 5,390
Repairs and maintenance 3,250 2,968 282 3,273
I Other services and charges 6,860 5,093 1,767 5,459
Capital outlay 3,050 795 2,255 585
Total Communications 382,162 365,880 16,282 300,172
I Animal Control:
Personnel services 86,625 74,159 12,466 61,984
Supplies 5,675 8,183 (2,508) 5,926
I Repairs and maintenance 2,100 1,744 356 2,031
Other services and charges 3,938 4,098 (160) 2,647
Trucks 14,000 12,954 1,046
Iiota!Animal Lontro! 112,338 101,138 11,200 72,588
Fire and EMS:
Personnel services 147,603 138,226 9,377 137,222
I Supplies 79,100 12,174
Repairs and maintenance 73,514 9,855 63,659 2,309
Other services and charges 89,586 230,998 (141,412) 224,474
IIota!Tire anti EMS 389,803 391,253 (68,376) 364,005
Fire Marshal:
Personnel services 88,174 74,957 13,217 79,331
I Supplies 4,440 3,440 1,000 4,995
Repairs and maintenance 1,375 984 391 1,509
Other services and charges 6,855 9,530 (2,675) 6,124
I Capital outlay 3,921 (3,921)
!ota!Fire Marsha! 100,844 92,832 8,012 91,959
I 48
I
CITY OF FRIENDSWOOD, TEXAS 1
Exhibit B-2
GENERAL FUND Page 4 of 7 '
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL I
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
I
1995
Variance I
Favorable 1994
Budget Actual (Unfavorable) Actual
Expenditures (continued)
Public Safety: (continued) I
Emergency Management:
Personnel services $ 44,313 $ 40,451 $ 3,862 $ 286
Supplies 8,156 7,292 864 607 1
Repairs and maintenance 3,917 1,762 2,155 350
Other services and charges 8,803 7,861 942 1,811
Total Emergency Management 65,189 57,366 7,823 3,054 I
Total Public Safety 3,137,531 3,176,914 (39,383) 2,687,160
Public Works:
Administration:
Personnel services 141,476 132,400 9,076 140,268
Supplies 2,600 2,040 560 3,096
Repairs and maintenance 1,800 503 1,297 391
Other services and charges 3,949 3,449 500 1,781
Capital Outlay 6,100 6,100
Total Administration 155,925 138,392 17,533 145,536 I
Streets:
Personnel services 246,506 225,294 21,212 232,405 I
Supplies 66,189 53,078 13,111 61,450
Repairs and maintenance 75,463 90,449 (14,986) 58,006
Other services and charges 179,147 203,141 (23,994) 180,023
Capital outlay 1,188 (1,188) 34,794
Total Streets 567,305 573,150 (5,845) 566,678
Drainage:
Personnel services 116,679 102,490 14,189 103,578
Supplies 900 1,048 (148) 1,012
Repairs and maintenance 17,000 26,957 (9,957) 12,726 I
Other services and charges 562 3,517 (2,955) 1,022
Total Drainage 135,141 134,012 1,129 118,338
Sanitation:
Other services and charges 941,564 946,460 (4,896) 953,186
Total Sanitation 941,564 946,460 (4,896) 953,186
Total Public Works 1,799,935 1,792,014 7,921 1,783,738
49
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I
CITY OF FRIENDSWOOD, TEXAS
Exhibit B-2
' GENERAL FUND Page 5 of 7
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
I
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
1995
I Variance
Favorable 1994
Budget Actual (Unfavorable) Actual
Expenditures (continued)
I Community Development:
Administration:
Personnel services $ 85,345 $ 84,716 $ 629 $ 56,243
I Supplies 600 549 51 701
Other services and charges 2,319 2,534 (215) 1,056
Total Administration 88,264 87,799 465 58,000
IPlanning and Zoning:
Personnel services 68,437 66,577 1,860 63,283
I Supplies 1,350 1,268 82 1,288
Repairs and maintenance 225 87 138 115
Other services and charges 25,850 27,963 (2,113) 12,015
ITotal Planning and Zoning: 95,862 95,895 (33) 76,701
Engineering:
Personnel services 63,902 53,084 10,818 61,262
I
Supplies 3,185 3,711 (526) 2,855
Repairs and maintenance 2,100 2,356 (256) 2,431
Other services and charges 36,941 3,871 33,070 13,117
ICapital outlay 950
Total Engineering: 106,128 63,022 43,106 80,615
I Inspection:
Personnel services 185,684 196,224 (10,540) 176,903
Supplies 4,651 4,085 566 6,311
I Repairs and maintenance 2,600 2,824 (224) 1,931
Other services and charges 14,540 13,964 576 13,028
Total Inspection 207,475 217,097 (9,622) 198,173
Total Community Development 497,729 463,813 33,916 413,489
I
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50
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CITY OF FRIENDSWOOD, TEXAS I
Exhibit B-2
GENERAL FUND Page 6 of 7 I
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL '
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994 I
1995
Variance I
Favorable 1994
Budget Actual (Unfavorable) Actual
Expenditures (continued) I
Community Services:
Health Services:
Supplies $ $ 6 $ (6) $ 4,744
Other services and charges 62,875 56,394 6,481 42,002 I
Total Health Services 62,875 56,400 6,475 46,746
Library: I
Personnel services 370,781 344,415 26,366 327,572
Supplies 92,758 86,667 6,091 68,813
Repairs and maintenance 900 520 380 467
Other services and charges 7,872 7,245 627 6,863 I
Capital Outlay 467 534 (67) 2,031
Total Library 472,778 439,381 33,397 405,746 '
Parks and Recreation
Personnel services 194,593 209,550 (14,957) 177,714
Supplies 32,404 36,795 (4,391) 35,162 '
Repairs and maintenance 39,900 46,205 (6,305) 39,789
Other services and charges 108,793 111,622 (2,829) 125,296
Capital Outlay 11,800 9,306 2,494 18,145
Total Parks and Recreation 387,490 413,478 (25,988) 396,106
Community Activities:
Personnel services 91,301 97,941 (6,640) 83,283 I
Supplies 35,530 34,040 1,490 17,403
Repairs and maintenance 19,656 21,339 (1,683) 6,673
Other services and charges 59,241 67,639 (8,398) 41,360 1
Capital Outlay 17,548 6,395 11,153 30,071
Total Community Activities 223,276 227,354 (4,078) 178,790
Swimming Pool: I
Personnel services 33,646 36,355 (2,709) 42,450
Supplies 16,450 8,471 7,979 9,592 I
Repairs and maintenance 5,525 6,049 (524) 5,672
Other services and charges 8,600 13,262 (4,662) 8,678
Capital Outlay 1,411 (1,411)
Total Swimming Pool 64,221 65,548 (1,327) 66,392 I
51 I
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CITY OF FRIENDS WOOD, TEXAS
Exhibit B-2
I GENERAL FUND Page 7 of 7
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
IBUDGET AND ACTUAL
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
1995
I Variance
Favorable 1994
Budget Actual (Unfavorable) Actual
Expenditures (continued)
I
Community Services: (continued)
Building Operations:
Personnel services $ 34,651 $ 31,924 $ 2,727 $ 32,983
I
Supplies 24,525 24,192 333 17,539
Repairs and maintenance 47,450 40,865 6,585 31,164
Other services and charges 327,551 296,180 31,371 204,984
Capital Outlay 7,600 9,730 (2,130) 6,396
Total Building Operations 441,777 402,891 38,886 293,066
I
Total Community Services 1,652,417 1,605,052 47,365 1,386,846
Total Expenditures 8,796,993 8,519,503 277,490 7,750,050
IRevenue Over(Under)
Expenditures (619,449) (114,782) 504,667 (208,383)
I Other Financing Sources(Uses)
Proceeds from capital leases 117,176 117,176 195,924
Operating transfers in 509,844 509,844 265,189
IOperating transfers (out) (399,257) (399,257) (132,957)
Total Other Financing
I Sources(Uses) 227,763 227,763 328,156
Revenues and Other Financing Sources
Over(Under)Expenditures and
IOther Financing(Uses) (391,686) 112,981 504,667 119,773
Fund balance - Beginning 1,332,408 1,332,408 1,212,635
IFund Balance - Ending $ 940.722 $ 1,445 389 $ 504.667 $ 1,331408
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I 52
1
SPECIAL REVENUE FUNDS
These funds are used to account for the proceeds of specific revenue sources that are legally restricted to financing
specific purposes. The following describes the various types of Special Revenue Funds used by the City:
Police Investigation Fund
' This fund receives funds that are restricted to police investigation.
Centenial Fund
' This fund receives donations that are restricted for the comemoration of the 1994-95 centennial for the City.
Fire/EMS Donation Fund
This fund receives funds that are restricted for Fire/EMS capital outlays.
CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 1995
with comparative totals for September 30, 1994
Police Fire/EMS
Investigation Donations Centennial
Assets
Cash and temporary investments $ 8,936 $ 89,042 $ 33,148
Miscellaneous receivables 15,000
Total Assets $ 8,936 $ 104,042 $ 33,148
1
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities $ 688 $ 18,105 $ 3,175
Fund Balances '
Unreserved and designated 8,248 85,937 29,973
Total Liabilities and
Fund Balances $ 8,936 $ 104,042 $ 33,148
53
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Exhibit C-1
I
I
ITotals
1995 1994
I
$ 131,126 $ 46,700
i
15,000
$ 146.126 $ 46.700
I
I
$ 21,968 $ 3,001
I
124,158
43,699
I
$ 146.126 $ 46.700
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1
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CITY OF FRIENDS WOOD 1
SPECIAL REVENUE FUNDS
I
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
Year Ended September 30, 1995 I
with comparative totals for the Year Ended September 30, 1994
1
Police Parks and Fire/EMS
Investigation Recreation Donations
I
Revenues
Donations $ 11,249 $ $ 123,806
Interest 535 3,236
Other 202
Total Revenues 11,986 127,042 1
Expenditures
Current:
Public safety 11,203 18,105
Community services
Total Expenditures 11,203 18,105 1
Revenues Over (Under)
Expenditures 783 108,937
Other Financing Sources I
Proceeds from the sale of equipment
•
Operating transfers in
Operating transfers(out) (23,000)
Total Other Financing Sources (23,000)
Revenues and Other I
Financing Sources
Over (Under) Expenditures 783 85,937 1
Fund balances,beginning of year 7,465
Fund Balances, End of Year $ 8,248 $ $ 85,937 I
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9
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Exhibit C-2
I
I
Totals I
Centennial 1995 1994
Is 40 $ 135,095
6,536 $ 140,818
2,765 1,687
56,704 56,906 27,889
I59,509 198,537 170,394
29,308 159,009
51,094 51,094 39,946
I51,094 80,402 198,955
8,415 118,135 (28,561)
4,950
I 11,024 11,024
(25,700) (48,700) 58,963
(14,676) (37,676) 63,913
I (6,261) 80,459 35,352
36,234 43,699 8,347
I $ 29,973 $ 124,158 $ 43,699
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I56
1
CITY OF FRIENDSWOOD, TEXAS 1
Exhibit C-3
SPECIAL REVENUE FUND (POLICE INVESTIGATION)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
1995
Variance
Favorable 1994
Budget Actual (Unfavorable) Actual
Revenues
Donations• $ 6,590 $ 11,249 $ 4,659 $ 7,821
Interest on investments 535 535 92
Other 202 202
Total Revenues 6,792 11,986 5,194 7,913
I
Expenditures
Public safety 14,257 11,203 3,054 3,055
Revenues Over (Under)
Expenditures (7,465) 783 8,248 4,858
Fund balances — Beginning 7,465 7,465 2,607
Fund Balances — Ending $ $ 8248 $ 8,248 $ 7,465 I
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57
CITY OF FRIENDS WOOD, TEXAS
Exhibit C-4
' SPECIAL REVENUE FUND (PARKS AND RECREATION)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
IBUDGET AND ACTUAL
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
' 1995
Variance
Favorable 1994
Budget Actual (Unfavorable) Actual
Revenues
Donations $ $ $ $ 9,825
Interest on investments 57
' Total Revenues 9,882
Expenditures
Community services 12,278
' Revenues (Under)
Expenditures (2,396)
t
Fund balances — Beginning 2,396
•
Fund Balances — Ending $ $ $ $
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t
' 58
I
CITY OF FRIENDSWOOD, TEXAS 1
Exhibit C—S
SPECIAL REVENUE FUND(FIRE/EMS DONATIONS) I
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994 '
1995 I
Variance
Favorable 1994
Budget Actual (Unfavorable) Actual I
Revenues
Donations $ 117,000 $ 123,806 $ 6,806 $ 123,172
Interest on investments 870 3,236 2,366 920
Total Revenues 117,870 127,042 9,172 124,092 I
Expenditures I
Public safety 18,105 18,105 155,954
Total Expenditures 18,105 18,105 155,954 I
Revenues Over (Under)
Expenditures 99,765 108,937 9,172 (31,862) I
Other Financing Sources I
Proceeds from the sale
of equipment 4,950
Operating transfers in(out) (23,000) (23,000) 23,568 I
Total Other Financing
Source (23,000) (23,000) 28,518 '
Revenues and Other
Financing Sources Under
Expenditures 76,765 85,937 9,172 (3,344) II
Fund balances — Beginning 3,344 I
Fund Balances — Ending $ 76,765 $ 85,937 $ 9,172 $
•
1
59
I
1 CITY OF FRIENDSWOOD, TEXAS
Exhibit C-6
I
SPECIAL REVENUE FUND (CENTENNIAL)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE —
I
BUDGET AND ACTUAL
Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
I 1995
Variance
Favorable 1994
Budget Actual (Unfavorable) Actual
I
Revenues
Donations $ $ 40 $ 40 $
Interest on investments 2,310 2,765 455 618
I Other 25,700 56,704 31,004 27,889
Total Revenues 28,010 59,509 31,499 28,507
1
Expenditures
1 Community services 35,111 51,094 (15,983) 27,668
Total Expenditures 35,111 51,094 (15,983) 27,668
I Revenues Over (Under)
Expenditures (7,101) 8,415 15,516 839
1 Other Financing Sources (Uses)
Operating transfers in 11,024 11,024
I
Operating transfers(out) (25,700) (25,700) 35,395
Total Other Financing
1 Sources (Uses) (4,676) (14,676) 35,395
Revenues and Other
I
Financing Sources Under
Expenditures and Other
Financing Uses (21,777) (6,261) 15,516 36,234
1 Fund balances — Beginning 36,234 36,234
IFund Balances — Ending $ 14.457 $ 29,973_ $ 15,516 36,234
I
I
60
DEBT SERVICE FUND
' The Debt Service Fund is used to account for property taxes levied for payment of principal and interest on all
general long—term debt of the City.
1
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1
CITY OF FRIENDSWOOD, TEXAS 1
Exhibit D-1
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEET
September 30, 1995 and 1994
1995 1994 1
Assets
Cash and temporary investments $ 27,065 $ 47,378
Taxes receivable 68,444 76,587
Due from other funds 19,794
Other assets 10,109
Total Assets $ 125,412 $ 123,965
1
Liabilities and Equity
Liabilities
Accounts payable and accrued liabilities $ $ 97
Deferred revenue 68,444 76,587
Total Liabilities 68,444 76,684
Equity
Fund Balances:
Reserved for debt service 56,968 47,281
Total Equity 56,968 47,281
Total Liabilities and Equity $ 125,412 $ 123,965 1
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1
1
61 1
I
ICITY OF FRIENDSWOOD, TEXAS
Exhibit D-2
I DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
IBUDGET AND ACTUAL
Year Ended September 30, 1995
I
with comparative actual balances for the Year Ended September 30, 1994
I 1995
Variance
Favorable 1994
I Budget Actual (Unfavorable) Actual
Revenues
Property taxes $ 1,311,607 $ 1,321,266 $ 9,659 $ 1,346,913
Interest on investments 8,850 13,271 4,421 7,522
ITotal Revenues 1,320,457 1,334,537 14,080 1,354,435
I Expenditures
Principal retirement 1,214,592 1,184,592 30,000 989,464
Interest retirement 387,905 387,776 129 428,251
IFiscal charges 12,000 7,122 4,878 9,645
Total Expenditures 1,614,497 1,579,490 35,007 1,427,360
IRevenues Under Expenditures (294,040) (244,953) 49,087 (72,925)
1 Other Financing Sources
Operating transfers in 308,933 254,640 (54,293) 74,705
ITotal Other Financing Sources 308,933 254,640 (54,293) 74,705
I Revenues and Other Financing
Sources Over Expenditures 14,893 9,687 (5,206) 1,780
IFund balances — Beginning 47,281 47,281 45,501
IFund Balances — Ending $ 62.174 $ 56.968 $ (5.206) $ 47.281
I
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I62
1
1
1
1
1
1
1
' CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for financial resources used for the acquisition and/or construction of major
lor
capital facilities.
1 Capital Projects — Used to account for non—building capital projects and infrastructure.
1 Capital Facility — Used to account for building related projects.
1
1
1
1
1
1
1
1
I
CITY OF FRIENDSWOOD, TEXAS I
Exhibit E-1
CAPITAL PROJECTS FUNDS I
COMBINING BALANCE SHEET
September 30, 1995 I
with comparative totals for September 30, 1994
Capital Capital Totals 1
Projects Facility 1995 1994
Assets I
Cash and temporary investments $ 1,006,930 $ 340,372 $ 4347„302 $ 2,005,788
Other assets— inventories 5,087 5,087 5,087 I
Total Assets S 1.012.017 S 340.372 $ 1352389 $ 2.010.875
I
Liabilities and Fund Balances I
Liabilities
Accounts payable and I
accrued liabilities $ 84,870 $ 159,597 $ 244,467 $ 227,916
Due to other funds 19,794 19,794
Total Liabilities 84,870 179,391 264,261 227,916 I
Fund Balances I
Reserved for encumbrances
Unreserved and designated 927,147 160,981 1,088,128 1,782,959
Total Fund Balances 927,147 160,981 1,088,128 1,782,959 I
Total Liabilities and '
Fund Balances $ 1.012,017 S 340372 $ 1352.389 $ 2.010.875
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63 I
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•
1 CITY OF FRIENDS WOOD, TEXAS
Exhibit E-2
I
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
1 Year Ended September 30, 1995
with comparative totals for the Year Ended September 30, 1994
I
Capital Capital Totals
I
Projects Facility 1995 1994
Revenues
Donations $ 10 $ 6,223 $ 6,233 $ 74,375
Intergovernmental 279,339 279,339 29,230
I
Interest 27,817 48,050 75,867 81,133
Other 59,235 59,235 215,156
ITotal Revenues 366,401 54,273 420,674 399,894
Expenditures
Capital Outlay:
I
Public Works:
Streets 443,315 443,315 786,053
Drainage 10,842 10,842 20,833
I
Community Services:
Parks and recreation 316,280 316,280 906,244
Building operations 1,630,503 1,630,503 982,370
I
Total Expenditures 770,437 1,630,503 2,400,940 2,695,500
I
Revenues Under Expenditures (404,036) (1,576,230) •(1,980,266) (2,295,606)
Other Financing Sources
Operating transfers in 920,835 364,600 1,285,435 790,874
I
Proceeds from the sale of notes payable 598,567
Total Other
1 Financing Sources 920,835 364,600 1,285,435 1,389,441
Revenues and Other Financing
I
Sources Over(Under)
Expenditures 516,799 (1,211,630) (694,831) (906,165)
1 Fund balances - Beginning 410,348 1,372,611 1,782,959 2,689,124
I
Fund Balances - Ending $ 927.147 $ 160,981 $ 1.088,128 $ 1.782.959
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NM N NM MI MB - - - - — NU MI NM M - - - MI I
1 ENTERPRISE FUND
The Enterprise Fund is used to account for the acquisition,operation and maintenance of governmental facilities and
services which are entirely or predominantly self—supporting by user charges. The operations of the water and sewer
system are accounted for in the Enterprise Fund to reflect the results of operations similar to private enterprises.
I
CITY OF FRIENDSWOOD, TEXAS I
Exhibit F-1
ENTERPRISE FUND I
COMPARATIVE BALANCE SHEET
September 30, 1995 and 1994
I
1995 1994
Assets
Current Assets
Cash and temporary investments $ 2,089,689 $ 1,710,134
Receivables: I
Customer accounts 757,705 655,513
Interest 5,531
Investment in Blackhawk joint venture 179,637 172,831
Other assets 90,526 60,280
Total Current Assets 3,117,557 2,604,289
Land,buildings and equipment,at cost 33,839„373 30,987,087 I
Less accumulated depreciation (8,386,854) (7,642,484)
Land, Buildings, and Equipment, Net 25,452,519 23,344,603 1
Total Assets $ 28,570.076 $ 25.948,892
Liabilities and Fund Equity I
Current Liabilities
Accounts payable and accrued liabilities $ 310,425 $ 405,270
Compensated absences 83,321 72,056
Customer deposits 184,523 164,850
Bonds payable,current portion 568,400 165,000
Certificates of obligation payable,current portion 330,000 210,000
Total Current Liabilities 1,476,669 1,017,176
Long—Term Liabilities I
Bonds payable,less current portion 4,925,301 3,155,000
Certificates of obligation payable,less current portion 6,170,000 3,300,000
Accreted interest on premium compound interest bonds 199,789
Total Long—Term Liabilities 11,295,090 6,455,000
Total Liablities 12,771,759 7,472,176
Fund Equity
Contributed capital 13,140,148 15,511,200
Retained Earnings:
Reserved 1,498,413
Unreserved 2,658,169 1,467,103
2,658,169 2,965,516
Total Fund Equity 15,798,317 18,476,716
Total Liabilities and Fund Equity $ 28,570.076 $ 25,948.892 I
65 1
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ICITY OF FRIENDSWOOD, TEXAS
Exhibit F-2
1 ENTERPRISE FUND Page 1 of 2
SCHEDULE OF REVENUES,EXPENSES, AND CHANGES IN
RETAINED EARNINGS - BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS)
1 Year Ended September 30, 1995
with comparative actual balances for the Year Ended September 30, 1994
I1995
Variance
Favorable 1994
I Budget Actual (Unfavorable) Actual
Operating Revenues
Water charges S 2,551,600 S 2,690,353 S 138,753 S 2,545,515
I
Sewer charges 1,551,427 1,574,347 22,920 1,226,495
Fees and penalties 112,957 107,204 (5,753) 91,565
Impact fees 167,438 167,438 290,217
Other 28,468 22,385 (6,083) 32,869
I Total Operating Revenues 4,244,452 4,561,727 317,275 4,186,661
Operating Expenses
Water Operations:
I
Personnel services 232,812 232,416 396 214,644
Supplies 44,230 50„360 (6,130) 51,149
Repairs and maintenance 81,414 78,814 2,600 98,356
Other services and charges 572,250 405,385 166,865 496,565
I
Capital outlay 1,184,806 817,760 367,046 318,154
Total Water Operations 2,115,512 1,584,735 530,777 1,178,868
Sewer Operations:
1 Personnel services Supplies 183,890 168,764 15,126 173,654
12,750 9,075 3,675 10,044
Repairs and maintenance 94,154 92,515 1,639 132,474
I
Other services and charges 842,286 720,536 121,750 777,884
Capital outlay 2,736,608 1,779,987 956,621 647,933
Total Sewer Operations 3,869,688 2,770,877 1,098,811 1,741,989
Operation Administration:
I
Personnel services 98,035 94,190 3,845 91,218
Supplies 2,150 2,040 110 1,982
Repairs and maintenance 700 147 553 153
I
Other services and charges Capital outlay 1,815 1,250 565 1,515
741
Total Operation Administration 102,700 97,627 5,073 95,609
I
Finance Administration:
Personnel services 139,035 138,555 480 123,013
Supplies 10,468 7,627 2,841 4,578
Repairs and maintenance 5,260 5,564 (304) 3,906
I
Other services and charges 37,372 39,994 (2,622) 38,332
Total Finance Administration 192,135 191,740 395 169,829
Computer Services:
I Supplies 1,400 223 1,177 931
Repairs and maintenance 3,000 3,395 (395) 2,593
Other services and charges 2,750 2,429 321 99
I
Capital outlay 7,500 7,497 3 846
Total Computer Services 14,650 13,544 1,106 4,469
66
I
CITY OF FRIENDSWOOD, TEXAS I
Exhibit F-2
ENTERPRISE FUND Page 2 of 2 I
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN
RETAINED EARNINGS - BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS)
Year Ended September 30, 1995 I
with comparative actual balances for the Year Ended September 30, 1994
1995
Variance
Favorable 1994
Budget Actual (Unfavorable) Actual I
Operating Expenses(continued)
Insurance:
Other services and charges 29,735 25,980 3,755 25,867 I
Total Insurance 29,735 25,980 3,755 25,867
Engineering:
Personnel services 57,002 52,298 4,704 53,410
Supplies 1,700 1,637 63 2,160
Repairs and maintenance 1,500 1,483 17 1,426
Other services and charges 8,950 550 8,400
Total Engineering 69,152 55,968 13,184 56,996 i
Total Operating Expenses 6,393,572 4,740,471 1,653,101 3,273,627
Operating Income (Loss) (2,149,120) (178,744) 1,970,376 913,034 I
Nonoperating Revenues (Expenses)
Interest revenue 59,643 152,306 92,663 101,820 I
Proceeds from obligation debt
Principal retirement 375,000 (375,000) (750,000) (310,000)
Interest expense 415,573 (361„359) (776,932) (371,774)
Total Nonoperating
Revenues (Expenses) 850,216 (584,053) (1,434,269) (579,954)
Operating Transfers (Out) (1,780,545) (1,612,986) 167,559 (1,033,206)
Net Income (Loss) '
(Budgetary Basis) $ (3.079.449) (2,375,783) $ 703.666 (700,126)
Adjustments I
Impact fees (167,438) (290,217)
Depreciation expense (744,370) (692,954) '
Capital outlay 2,605,244 967,674
Proceeds from obligation debt
Principal retirement 375,000 310,000
Net Adjustments 2,068,436 294,503
Net (Loss) (GAAP Basis) (307,347) (405,623)
Retained earnings,beginning of year 2,965,516 3,371,139 I
Retained Earnings, end of year $ 2.658,169 $ 2.965.516
67 I
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CITY OF FRIENDS WOOD, TEXAS
Exhibit F-3
I ENTERPRISE FUND
SCHEDULE OF BONDS PAYABLE -
BY MATURITY DATE
ISeptember 30, 1995
I Due During Annual Requirements for All Series Series 1969
Fiscal Year Total Total Total Principal Interest Due
Ending Principal Interest Principal and Due November 1,
U
Sept. 30, Due Due Interest Due November 1 May 1 Total
1996 $ 568,400 $ 212,794 $ 781,194 $ 26,400 $ 6,670 33,070
1997 880,950 178,279 1,059,229 29,700 4,952 34,652
1998 940,500 143,127 1,083,627 33,000 3,032 36,032
I
1999 966,750 104,735 1,071,485 33,000 1,011 34,011
2000 492,375 329,448 821,823
2001 396,405 114,052 510,457
I
2002 398,494 74,577 473,071
2003 416,247 57,964 474,211
2004 433,580 38,219 471,799
Totals $ 5,493,701 $ 1.251195 $ 6,746,896 $ 122,100 $ 15,665 $ 137,765
Due During Series 1979 Series 1993
I Fiscal Year Principal Interest Due Principal Interest Due
Ending Due November 1, Due March 1,
Sept.30, November 1 May 1 Total March 1 September 1 Total
I
1996 $ 5,000 $ 138 $ 5,138 $ 116,250 $ 190,839 307,089
1997 851,250 173,327 1,024,577
1998 907,500 140,095 1,047,595
1999 933,750 103,724 1,037,474
I
2000 352,500 77,823 430,323
2001 371,250 62,707 433,957
2002 386,250 46,321 432,571
I
2003 405,000 28,711
9,799 433,711
2004 42 i,750 433,549
Totals $ 5,000 $ 138 $ 5,138 $ 4,747.500 $ 833.346 $ 5,580,846
I
Due During Series 1986
Fiscal Year Principal Interest Due
I Ending Due November 1,
Sept. 30, November 1 May 1 Total
1996 $ 420,750 $ 15,147 $ 435,897
1997
I 1998
1999
2000 139,875 251,625 391,500
2001 25,155 51,345 76,500
I 2002 12,244 28,256 40,500
2003 11,247 29,253 40,500
2004 9,830 28,420 38,250
ITotals $ 619.101 $ 404.046 $ 1,023,147
68
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CITY OF FRIENDSWOOD, TEXAS 1
Exhibit F-4
ENTERPRISE FUND I
SCHEDULE OF CERTIFICATES OF OBLIGATION -
BY MATURITY DATE
September 30, 1995 I
Due During Annual Requirements for All Series Series 1988 I
Fiscal Year Total Total Total Principal Interest Due
Ending Principal Interest Principal and Due November 1,
Sept.30, Due Due Interest Due November 1 May 1 Total
1996 $ 330,000 $ 458,492 $ 788,492 $ 260,000 $ 34,115 $ 294,115 I
1997 430,000 349,520 779,520 285,000 11,613 296,613
1998 155,000 327,.160 482360
1999 160,000 316,275 476,275 I
2000 170,000 304,654 474,654
2001 175,000 292,494 467,494
2002 185,000 279,797 464,797
2003 200,000 266,910 466,910 I
2004 210,000 253,945 463,945
2005 645,000 228,494 873,494
2006 680,000 191,064 871,064 I
2007 715,000 152,935 867,935
2008 760,000 112,488 872,48,8
2009 815,000 69,175 884,175
2010 870,000 23,381 893,381
Totals $ 6.500.000 $ 3,626,984 $ 10,126,984 $ 545,000 $ 45,728 $ 590.728
I
Due During Series 1992 Series 1995
Fiscal Year Principal Interest Due Principal Interest Due I
Ending Due November 1, Due November 1,
Sept.30, November 1 May 1 Total November 1 May 1 Total
1996 $ 70,000 $ 155,740 $ 225,740 $ $ 268,637 $ 268,637
1997 80,000 150,678 2.30,678 65,000 187,229 252,229 I
1998 85,000 145,109 230,109 70,000 182,251 252,251
1999 85,000 139,371 224371 75,000 176,904 251,904
2000 90,000 133,465 223,465 80,000 171,189 251,189 I
2001 90,000 127,390 217,390 85,000 165,104 250,104
2002 95,000 121,146 216,146 90,000 158,651 248,651
2003 100,000 115,265 215,265 100,000 151,645 251,645
2004 110,000 109,675 219,675 100,000 144,270 244,270 I
2005 490,000 93,530 583,530 155,000 134,964 289,964
2006 490,000 66,825 556,825 190,000 124,239 314,239
2007 485,000 40,012 525,012 2.10,000 112,923 342,923
2008 485,000 13338 498338 275,000 99,150 374,150
2009 815,000 69,175 884,175
2010 870,000 23,381 893,381
Totals $ 2,755,000 $ 1,411.544 $ 4,166,544 $ 3,200.000 $ 2.169312 $ 5,369,712
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11111 NMI NM 111.11
r r r IMO IIIIII IIMIr r r
r In r r IOW lin
TRUST AND AGENCY FUNDS
' 1776 Park Trust Fund
This fund has been established by the City to account for 1776 Park assets held
' Deferred Compensation A&ency Fund
This fund is used to account for assets held for employees in accordance with the provisions of Internal Revenue
Code Section 457.
1
CITY OF FRIENDSWOOD, TEXAS I
Exhibit G-1
TRUST AND AGENCY FUNDS I
COMBINING BALANCE SHEET
September 30, 1995 I
with comparative totals for September 30, 1994
Non— 1
Expendable
Trust Agency 111
1776 Deferred Totals
Park Compensation 1995 1994
Assets I
Cash and temporary investments $ 31,339 $ 586,995 $ 618,334 $ 476,659
Land 57,200 57,200 57,200 I
Total Assets $ 88.539 $ 586.995 $ 675.534 $ 533.859 I
Liabilities and Fund Balances I
Liabilities
Deferred compensation benefits payable $ $ 586,995 $ 586,995 $ 446,805 I
Fund Balances
Reserved for endowments 67,200 67,200 67,200 I
Unreserved and designated 21,339 21,339 19,854
Total Fund Balances 88,539 88,539 87,054
I
Total Liabilities and
Fund Balances $ 88.539 $ 586.995 $ 675.534 $ 533.859 1
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70
CITY OF FRIENDSWOOD, TEXAS
Exhibit G-2
' 1776 PARK TRUST FUND (NON—EXPENDABLE TRUST)
COMPARATIVE STATEMENTS OF REVENUES AND
CHANGES IN FUND BALANCE
' Year Ended September 30, 1995
with comparative totals for the Year Ended September 30, 1994
1995 1994
Revenue
Interest on investments $ 1,485 $ 867
Fund balances,beginning of year 87,054 86,187
I
Fund Balances, End of Year $ 88.539 $ 87,054
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1
CITY OF FRIENDSWOOD, TEXAS
Exhibit G-3
DEFERRED COMPENSATION AGENCY FUND
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
Year Ended September 30, 1995 111
Balance Balance I
October 1, September 30,
1994 Additions Deletions 1995
Assets
Temporary investments $ 446,805 $ 144,990 $ 4,800 $ 586,995
Liabilities
Deferred compensation '
benefits payable $ 446,805 $ 144,990 $ 4,800_ $ 586,995
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MN - I - - - - - I ON I N MI - I
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I
IGENERAL FIXED ASSETS
IThis account group is established to account for the fixed assets owned by the City excluding those relating to
Enterprise Fund operations. Expenditure transactions to acquire general fixed assets occur in the Governmental
I
Fund Types.
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CITY OF FRIENDSWOOD, TEXAS
Exhibit H-1
I GENERAL FIXED ASSETS
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS —
BY SOURCE
ISeptember 30, 1995 and 1994
I1995 1994
I General Fixed Assets
Land $ 2,951,139 $ 2,951,139
Buildings 3,482,953 3,482,953
I
Improvements Equipment 14,308,969 13,857,275
4,480,157 4,063,924
Construction in progress 2,744,327 714,132
ITotal General Fixed Assets $ 27.967.545 $ 25.069,423
IInvestment in General Fixed Assets From
General obligation bonds $ 4,575,234 $ 4,575,234
Time warrants and certificates of
I obligation 2,050,917 2,050,917
Federal,state,and local obligations 3,124,864 3,124,864
Municipality 16,030,623 13,192,450
I
Donations 2,125,958 2,125,958
Total Investment in
General Fixed Assets $ 27,967545 $ 25.069.423
I (59,949)
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CITY OF FRIENDSWOOD, TEXAS I
GENERAL FIXED ASSETS I
SCHEDULE OF GENERAL FIXED ASSETS —
BY FUNCTION AND ACTIVITY
September 30, 1995 I
1
Function and Activity Land Buildings
General Government I
Inspections S S
City Hall 453,389 606,934 I
Total General Government 453,389 606,934
Public Safety I
Police 153,830
Fire 18,000 267,322
Animal control 65,968
Emergency management I
Total Public Safety 18,000 487,120
Public Works I
Streets and drainage 245,777 168,702
Sanitation 3,500
Total Public Works 249,277 168,702 1
Community Services
Library 28,838 1,405,341
Parks and recreation 2,201,635 134,460
Swimming pool 680,396
Total Community Services 2,230,473 2,220,197 1
Construction in progress I
Total General Fixed Assets $ 2,951,139 S 3,482,953
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74 I
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Exhibit H-2
I
1 Construction
Improvements Equipment In Progress Total
I
$ $ 24,202 24,202
27,504 642,785 1,730,612
I
27,504 666,987 1,754,814
I16,760 863,770 1,034,360
1,482,303 1,767,625
2,708 27,086 95,762
I39,917 39,917
19,468 2,413,076 2,937,664
12,852,863 225,882 13,493,224
254,997 30,514 289,011
I13,107,860 256,396 13,782,235
I
17,693 186,266 1,638,138
681,517 522,263 3,539,875
3,233 18,936 702,565
I702,443 727,465 5,880,578
I
2,744,327 2,744,327
$ 14308,969 $ 4.480,157 $ 2.744.327 S 27.967.545
I
(451,694) (416,233) (867,927)
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APR— 1 6—9 6 T H U 1 6 :0 3 NULL .A S S O C I A T E S <H O U I F. .
Null&Associates Houston Fart Bend county
Professional Corporation 1(Creemvay nn,.a,Suite 1516 One Sugar Creek Center BM(..Suite 1150
Cer(�Certified Public {��},. limenen.Tema 77046 Sugar Land,lbw 77475
edACCOUI'Cants (1111621-151.5•FAX 621-1570 (713124Z-6600•FA.C;242.7337
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DATE: 7 11 b ! c110
TO: )CP( Po ecker
- 11,1 e,rid&4 c oc(
FROM: Chu U'p 1 e
NULL&ASSOCIATES,P.C.
FAX IP(713)6214570
( .
REF: Ole e Aie6( As sell SeedG(fes
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PR LENDS
TEXAS
SCHEI B Rq
� L
tialBrISSETS
NL`1TON AND Aenvi E
Sepreinter 30.1995
Aaw
laslxaro,� t
acyuau - jaw
Toca1 oeaera] s
p„�.� �ore'Aseat 433 $
Polk*
433 - '"-6 i .
Fire
�(mal control 34
,830
$ paryayaa6emeal
18,000 1S3
focal Public Safety 267.322
]e 63,46g
�omits a�av _lux
A �4
Tow Pabllo Worts 24s,7n
3c�. 168,702
sae,,,
„NolanCOMMOIlftU
'Armd �„ - "-�-
mla nCfEa(bA 28 838
t pool
2,201,635 1,403,141
Total Comatalty Serf 134,460
Construct:0a le progress 97(1 an
Total Gown!Pined Assets T�___—
t 9 t t10 .
74
Hih!Wt 11-2
Coastractloa
ltaPtOvimeals I3qvI0lttoat Iq 1'roueas Total
f S 24,202 S $ 24,202
_� 27 504 781,678 1,870,505
7
.,..--------- \PA
10
2,708 40p10 �9�
_ 34917 _
15
19,468 2,660,850 T l,185 4•- ----
13,239,359 227,070 131180,908
254,997 300514 289,011
13,494,156 257,584 1416969
17,693 186,800 1,638,612
746,715 547,695 3,630,505
3,233 20 j48 7Q3.977
767,641 754.843 3,973,154
__ 2344327 - 7,744.327
j 14308.969 $ 4.481157 f 2.744327, i.....722201,
75
A PR - 1 8 - 9 6 T H U 1 6 = en NULL & A S S O C I A T E S ( H O U ) P . 0
CITY OF FRIENDSWOOD, TEXAS
Bxhibit H-3
GENERAL FIXED ASSETS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS —
BY FUNCTION AND ACTIVITY
September 30, 1995
General General
Foxed Ascots Fixed Assets
Function and October 1, Tansfers and September 30,
Activity 1994 __Addition Retirements 1295
General Government
Inspections S 24,202 S S S 24,202
City Hall 1,730 612 141,893 (?,000) . 1,872,505
Total General Government 1.754,814 141,893 (2,000) _ 1,894,707
Public$afoty
Police 1,034,360 212,795 1,247,155
Fire 1,767,625 22,025 1,789,650
Animal control 95,762 12,954 108,716
Emergency management 39,917 _ , 39.917
Total Public Safely 2,937,664 247 774 _ 3,185.4R8
Public Worlrs
Streets and drainage 13,493,224 1,188 386,496 13,880,908
Sanitation _289.011 289,011
Total Public Works 13,782,235_ _,__„1..188 , 386,496 14,169 919
Coin paity Services
Library 1,638,138 534 1,638,672
Parks and recreation 3,539,875 25,432 65,198 3,630,505
Swimming pool 702465 1,412 _ 703,977
Total Community Services 5,880,578 27,378 �_� 65,198 ..5,973,154
Construction in progress 714132 2,4811889 (451,694) ..2,744,327
Total General Fixed Assets $ ()69,40, $ „2,2Q) 122, ;,_.._ (2 Xi) S„r. P,967t5
76
GENERAL LONG—TERM DEBT
This account group is established to account for the principal outstanding on general obligation bonds and other
long—term liabilities.
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CITY OF FRIENDSWOOD, TEXAS
Exhibit I-1
I COMPARATIVE SCHEDULES OF
GENERAL LONG—TERM DEBT
I
September 30, 1995 and 1994
I1995 1994
Amount Available and to be Provided for
I
the Payment of General Long—Term Debt
Amount available in Debt Service Fund $ 56,968 $ 47,281
IAmount to be provided for retirement of
general long—term debt 5,326,980 8,878,716
I Total Amount Available and
to be Provided $ 5,383,948 $ 8.925.997
IGeneral Long—Term Debt Payable
Accrued interest on premium compound
Iinterest bonds $ 244,186 $ 380,118
Notes payable 384,642 598,567
IObligations under capital leases 223,043 166,535
Certificates of obligation 2,130,000 2,160,000
IGeneral obligation bonds 2,402,077 5,620,777
Total General Long—Term Debt Payable $ 5,383.948 $ 8.925.997
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1 77
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CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF CHANGES IN GENERAL LONG—TERM DEBT I
September 30, 1995 and 1994
1
Amounts I
Date of Interest Originally
Issue Description Rate Payable Issued
Revenue Bonds — Series 1969 5.5%-6.125% $ I
08/15/86 Refunding Bonds — Series 1986 4.25% 7.9% 10,650,777 '
10/19/92 Certificates of Obligation — Series 1992 5S% 6.75% 2,160,000
04/14/93 Refunding Bonds— Series 1993 2.25% — 4.625% 3,480,000 ,
Notes payable 598,567 111
Obligations under capital leases 195,924
Accrued interest on premium I
compound interest bonds
Totals I
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78
I
Exhibit I-2
I
Amounts Reallocated Amounts
I Outstanding Issued Retired (To)IFrom Outstanding Interest
October 1, Current Current Enterprise September 30, Current
1994 Year Year Fund 1995 Year
I $ $ $ $ 62,900 $ 62,900 $
2,230,777 855,000 (619,100) 756,677 97,673
I 2,160,000 30,000 2,130,000 123,833
I
3,390,000 25,000 (1,782,500) 1,582,500 137,045
7,780,777 910,000 (2,338,700) 4,532,077 358,551
I598,567 213,925 384,642 20,368
166,535 117,175 60,667 223,043 8,857
I380,118 63,857 (199,789) 244,186
I $ 8,925.997 $ 181.032 $ 1,184.592 $ (2,538,489) $ 5383,948 $ 387,776
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1 79
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CITY OF FRIENDSWOOD, TEXAS 1
SCHEDULE OF GENERAL LONG-TERM DEBT I
SERVICE REQUIREMENTS TO MATURITY
September 30, 1995
I
Refunding Bonds
Due During Annual Requirements for All Series Series 1986 I
Fiscal Year Total Total Total Principal Interest Due
Ending Principal Interest Principal and Due March 1,
Sept.30, Due Due Interest Due March 1 September 1 Total
1996 $ 862,057 $ 239,554 $ 1,101,611 $ 514,250 $ 18,513 $ 532,763 I
1997 573,475 200,123 773,598
1998 462,120 173,436 635,556
1999 441,480 150,267 591,747 I
2000 370,411 439,000 809,411 170,958 307,542 * 478,500
2001 224,494 183,867 408,361 30,744 62,756 ' 93,500
2002 298,715 142,589 441,304 14,965 34,535 • 49,500
2003 313,746 128,293 442,039 13,746 35,754 • 49,500 I
2004 333,264 111,788 445,052 12,014 34,736 * 46,750
2005 285,000 61,320 346,320
2006 305,000 45,238 350,238 I
2007 325,000 27,913 352,913
2008 345,000 9,488 354,488
Totals $ 5,139.762 $ 1,912,876 $ 7,052,638 $ 756,677 $ 493.836 $ 1.250,513
I
Due During
Fiscal Year I
Ending Notes Payable Obligations Under Capital Leases
Sept.30, Principal Interest Total Principal Interest Total
1996 202,837 23,079 225,916 62,620 9,105 71,725
1997 181,805 10,908 192,713 62,620 9,105 71,725 I
1998 62,620 9,105 71,725
1999 33,230 4,501 37,731
2000 1,953 247 2,200 I
2001
2002
2003
2004 I
2005
2006
2007
2008 I
Totals $ 384,642 $ 33,987 $ 418,629_ $ 223.043_ $ 32,063 $ 255,106
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• Accrued interest on premium compound interest bonds. '
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1
Exhibit I-3
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Certificates of Obligation Refunding Bonds
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Due During Series 1992 Series 1993
Fiscal Year Principal Interest Due Principal Interest Due
Ending Due March 1, Due March 1,
Sept.30, March 1 September 1 Total March 1 September 1 Total
I
1996 $ 30,000 121,808 151,808 38,750 $ 63,613 $ 102,363
1997 30,000 119,783 149,783 283,750 57,776 341,526
1998 80,000 116,070 196,070 302,500 46,699 349,199
I
1999 80,000 110,670 190,670 311,250 34,575 345,825
2000 80,000 105,270 185,270 117,500 25,941 143,441
2001 70,000 100,208 170,208 123,750 20,903 144,653
2002 155,000 92,614 247,614 128,750 15,440 144,190
I 2003 165,000 82,969 247,969 135,O00 9,570 144,570
2004 180,000 73,785 253,785 141,250 3,267 144,517
2005 285,000 61,120 346,120
2006 305,000 45,238 350,238
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2007 325,000 27,913 352,913
2008 345,000 9,488 354,488
Totals $ 2.130.000 $ 1,067,136 $ 3,197.136 $ 1582.500 $ 277384 $ 1,860,284
IRevenue Bonds
Due During Series 1969
Fiscal Year Principal Interest Due I
Ending Due March 1,
Sept.30, March 1 September 1 Total
1996 $ 13,600 $ 3,436 $ 17,036
I
1997 15,300 2551 17,851
1998 17,000 1562 18,562
1999 17,000 521 17,521
2000
I
2001
2002
2003
I
2004
2005
2006
2007
I
2008
Totals $ 62,900 $ 8,070 $ 70,970
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81
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IUNAUDITED STATISTICAL SECTION
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CITY OF FRIENDSWOOD, TEXAS
GENERAL GOVERNMENT REVENUES BY SOURCE I
Last Ten Fiscal Years
I
Function 1986 1987 1988 1989
General property taxes $ 3,826,171 $ 4,421,343 $ 4,442,540 $ 4,562,856 I
Sales taxes 484,735 518,939 510,574 607,349 1
Franchise taxes 297,585 332,432 375,755 400,986
Sanitation 470,177 525,592 545,130 542,911 I
Fines and forfeitures 120,195 184,359 142,516 190,106
Permits and fees 148,740 124,913 125,083 143,105 1
Intergovernmental revenue 124,114 94,015 48,985 53,464
Interest on investments 88,521 91,011 196,647 185,037 I
Other revenue 28,850 45,342 106,057 118,539
$ 5.589.088 $ 6,337 946 $ 6.493.287 $ 6.804353
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Includes General,Special Revenue and Debt Service Funds.
Source - Accounting records of the City. I
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82
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Table 1
I
1990 1991 1992 1993 1994 1995
I $ 4,557,133 $ 4,749,173 $ 4,958,863 $ 5,249,517 $ 5,553,218 $ 5,865,855
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690,327 742,725 808,405 979,890 1,001,832 1,028,528
419,062 456,566 541,841 530,059 570,031 863,183
III595,244 733,245 780,604 838,542 966,066 1,085,149
166,982 166,355 171,154 174,487 217,411 266,287
I240,294 286,421 337,539 319,384 296,003 234,518
50,984 28,641 34,006 32,273 48,101 46,060
I222,328 232,773 153,558 154,195 107,089 193,588
115,107 139,525 208,466 219,615 330,313 354,627
I $ 7,057,461 $ 7,535.424 $ 7,994.436 S 8,497,962 $ 9.090.064 $ 9,937.795
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83
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CITY OF FRIENDSWOOD, TEXAS I
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION I
Last Ten Fiscal Years
I
Function 1986 1987 1988 1989
General government $ 1,221,176 $ 1,473,875 $ 1,143,024 $ 1,167,194 I
Public safety 1,737,503 1,870,538 1,934,317 2,038,066 '
Public works 1,208,630 1,237,644 1,128,195 1,108,423
Community development 249,684 257,750 I
Community services 532,374 727,525 814,380 768,533
Debt service 1,064,286 1,314,714 1,344,693 1,305,728 1
$ 5.763.969 $ 6.624.296 $ 6.614.293 $ 6.645.694
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Includes General,Special Revenue and Debt Service Funds. I
Source — Accounting records of the City.
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Table 2
1990 1991 1992 1993 1994 1995
$ 1,258,050 $ 1,085,683 S 1,112,882 $ 1,149,344 $ 1,478,817 $ 1,481,710
' 2,173,685 2,478,564 3,061,016 2,814,658 2,846,169 3,206,222
1,196,889 1,521,841 1,537,447 1,621,896 1,783,738 1,792,014
281,723 289,501 326,854 386,976 413,489 463,813
949,048 1,048,606 1,087,039 1,319,689 1,426,792 1,656,146
' 1,304,597 1,301,928 1,315,242 1,434,052 1,427,360 1,579,490
$ 7.163,992 $ 7,726.123 $ 8.440.480 $ 8.726,615 $ 9.376.365 $ 10.179 395
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I 85
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CITY OF FRIENDSWOOD, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS I
Last Ten Fiscal Years
I
Fiscal Year Percent '
Ended Tax Tax Total Current Tax of Levy
Sept. 30, Year Rate Tax Levy Collections Collected I
1986 1985 $ 0.7095 $ 3,870,699 $ 3,680,672 95.09
1987 1986 0.6950 4,369,541 4,245,550 97.16 I
1988 1987 0.6950 4,351,363 4,248,363 97.63
1989 1988 0.6950 4,553,066 4,433,139 9737 I
1990 1989 0.6950 4,531,537 4,427,153 97.70
1991 1990 0.6950 4,636,066 4,561,109 9838 I
1992 1991 0.6950 4,869,697 4,782,350 98.21 I
1993 1992 0.6630 5,179,275 5,081,084 98.10
1994 1993 0.6630 5,465,316 5,384,023 98.51 I
1995 1994 0.6630 5,779,760 5,717,509 98.92
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Source — Tax assessor/collector's records. I
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86 I
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Table 3
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Total Outstanding
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Collections Delinquent
Delinquent as Percent Outstanding Taxes as
Tax Total Tax of Current Delinquent Percent of
ICollections Collections Levy Taxes Levy
$ 94,625 $ 3,775,297 97.54 % $ 328,281 8.48
I133,831 4,379,381 100.23 318,441 7.29
119,687 4,368,050 10038 301,754 6.93
I79,695 4,512,834 99.12 341,986 751
74,484 4,501,637 9934 371,886 8.21
I107,112 4,668,221 100.69 339,731 733
120,660 4,903,010 100.68 306,418 6 29
91,531 5,172,615 99.87 313,078 6.04
I103,113 5,487,136 100.40 291,258 533
93,933 5,807,486 100.48 263,532 456
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I87
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ICITY OF FRIENDSWOOD, TEXAS
Table 4
I ASSESSED AND ESTIMATED
ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
I
Ratio of
Fiscal Year Estimated Assessed Value
Ended Tax Assessed Actual to Estimated
ISept. 30, Year Value Value Actual Value
1986 1985 $ 534,102,932 $ 645,891,660 82.69
1 1987 1986 628,710,940 760,787,760 82.64
1988 1987 626,095,422 763,454,517 82.01
I1989 1988 634,729,000 729,914,210 86.96
1990 1989 653,106,888 759,841,760 85.95
I1991 1990 667,059,850 761,569,171 87.59
1992 1991 700,373,270 806,261,160 86.87
1993 1992 781,187,783 917,420,470 85.15
I1994 1993 825,111,643 976,268,953 84.52
1995 1994 869,085,848 1,021,248,848 85.10
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ISource — Tax assessor/collector's records.
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1 88
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CITY OF FRIENDSWOOD, TEXAS I
PROPERTY TAX RATES AND TAX LEVIES -
DIRECT AND OVERLAPPING
Last Ten Fiscal Years I
Friendswood Clear Creek
Independent Independent Clear Creek I
Tax City of School School Drainage
Fiscal Year Year Friendswood District District District
Tax Levies I
1986 1985 $ 3,870,699 S 5,802,869 S 41,309,808 S 742,703
1987 1986 4,369,541 6,205,039 44,892,680 740,222 1
1988 1987 4,351,363 6,533,297 45,544,888 763,695
1989 1988 4,553,066 6,849,562 46,984,529 771,330 I
1990 1989 4,531,537 7,611,417 54,340,449 781,367
1991 1990 4,636,066 7,818,079 69,557,334 806,204 I
1992 1991 4,866,767 8,876,657 77,572,430 856,973
1993 1992 5,179,275 10,772,828 91,172,650 899,822 I
1994 1993 4,564,207 11,518,030 95,705,135 1,037,657
1995 1994 5,779,760 I
Tax Rates (*)
1986 1985 $ 0.7095 $ 1.4600 S 0.9200 $ 0.1500 I
1987 1986 0.6950 1.4100 0.9200 0.1500
1988 1987 0.6950 1.4100 0.9500 0.1500 I
1989 1988 0.6950 1.4100 0.9500 0.1500
1990 1989 0.6950 1.5500 1.0750 0.1500 '
1991 1990 0.6950 1.5500 1.2890 0.1500
1992 1991 0.6950 1.6500 1.2990 0.1500 '
1993 1992 0.6630 1.7200 1.4256 0.1500
1994 1993 0.6630 1.6180 1.4600 0.1450 •
1995 1994 0.6630
Source - Tax Department records of the various taxing authorities. III
(*) Per$100 valuation. I
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Table 5
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Port of Harris County
Harris Galveston Houston Harris County Hospital
County County Authority Flood Control District
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$ 321,822,000 $ 29,255,2.37 $ 10,899,213 $ 63,456,864 $ 155,479,182
I314,026,255 25,228,511 8,786,390 70,125,656 148,971,673
317,153,627 31,021,686 7,748,212 40,312,374 157,500,730
I316,515,115 28,734,107 11,721,027 40,396,410 156,997,245
342,106,783 33,270,892 13,285,192 53,821,732 163,778,567
I339,934,538 33,629,041 14,325,485 66,823,478 179,453,767
341,733,008 38,392,445 17,091,568 58,953,528 220,564,979
I371,558,722 39,834,245 16,726,662 63,103,788 231,593,228
379,718,078 43,383,400 13,625,480 62,410,785 212,802,322
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I $ 0.27878 $ 0.3850 $ 0.00800 $ 0.06400 $ 0.13500
0.26786 03850 0.00800 0.06400 0.13500
I0.29316 03850 0.00715 0.03720 0.13700
0.29455 03540 0.01091 0.03760 0.14600
I0.32600 03965 0.01267 0.05130 0.16600
0.31483 0.3965 0.01327 0.06190 0.16621
I 0.32188 0.4251 0.01531 0.05280 0.19621
032909 0.4300 0.01496 0.05590 0.19621
I
0.33854 0.4650 0.01222 0.05565 0.18975
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I90
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CITY OF FRIENDSWOOD, TEXAS
Table 6
TAX RATE DISTRIBUTION '
Last Ten Fiscal Years
I
Fiscal Year Debt Total
Ended Tax General Service Tax I
Sept. 30, Year Fund Fund Rate
1986 1985 $ 0.51920 $ 0.19030 $ 0.70950 '
1987 1986 0.48100 0.21400 0.69500
1988 1987 0.52000 0.17500 0.69500 I
1989 1988 0.50746 0.18754 0.69500
1990 1989 0.53330 0.16170 0.69500 I
1991 1990 050876 0.18624 0.69500
1992 1991 0.50900 0.18600 0.69500 I
1993 1992 0.50160 0.16140 0.66300
1994 1993 0.50250 0.16050 0.66300
1995 1994 0.51400 0.14900 0.66300 I
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Source — City's tax ordinances. I
Tax rates are per$100 valuation.
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91 i
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ICITY OF FRIENDS WOOD, TEXAS
Table 7
IPRINCIPAL TAXPAYERS
September 30, 1995
Percent
I of Total
Assessed Assessed
Taxpayer Type of Property Valuation Valuation
I1 . Exxon Corporation Oil and Gas $ 19,671,640 2.26 9e
2 . Southwestern Bell Telephone Utility Company 13,196,330 1.52
I3 . Texas New Mexico Power Utility Company 9,368,600 1.08
I 4 . Rust Remedial Service Incinerator 7,182,040 0.83
5 . Seahawk Apartments Apartments 6,888,650 0.79
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6 . Friendswood Retirement Living Retirement Home 6,590,445 0.76
7 . Houston Lighting&Power Utility Company 3,602,210 0.41
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8 . Salem Square Apartments Apartments 3,102,890 036
9 . H.U.D. Multi Family Homes Residential 3,028,240 035
I10 . Baywood Apartments Limited Apartments 2,810,740 0.32
$ 75.441.785 8.68
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Source — Tax assessor/collector's records.
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I 92
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CITY OF FRIENDSWOOD, TEXAS I
REVENUE BOND COVERAGE I
Last Ten Fiscal Years
I
Operating Net Operating
Number Number Expenses Revenue I
Fiscal of Water of Sewer Operating Before Available for
Year Customers Customers Revenue Depreciation Debt Service
1986 6,497 6,238 $ 4,205,395 $ 1,311,526 $ 2,893,869 I
1987 6,514 6,324 3,066,581 1,487,668 1,578,913
1988 6,626 6,432 3,071,181 1,526,297 1,544,884 I
1989 6,731 6,539 3,034,892 1,443,986 1,590,906 '
1990 6,968 6,719 3,472,772 1,597,064 1,875,708
1991 7,336 6,983 3,378,322 1,857,809 1,520,513 1
1992 7,521 7,171 3,567,379 2,063,694 1,503,685
1993 7,781 7,475 3,808,566 2,246,969 1,561,597 I
1994 8,031 7,709 3,896,444 2,305,953 1,590,491
1995 8,210 7,878 4„394,289 2,135,227 2,259,062 I
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Source — Accounting records of the City.
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Table 8
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I Revenue Bond
Debt Service Requirements
Principal Interest Total Coverage
I $ 120,000 $ 83,129 $ 203,129 14.25
125,000 77,566 202,566 7.79
I125,000 69,720 194,720 7.93
125,000 61,900 186,900 8.51
130,000 56,275 186,275 10.07
111 130,000 46,906 176,906 8.60
135,000 38,916 173,916 8.65
I135,000 31,022 166,022 9.41
135,000 25,710 160,710 9.90
I140,000 15,581 155,581 1452
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111 94
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CITY OF FRIENDSWOOD, TEXAS I
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED I
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years I
Fiscal Year I
Ended Assessed Gross
Sept. 30, Population Value Bonded Debt I
1986 22,500 $ 645,891,660 $ 10,650,778
1987 23,000 760,787,760 10,065,778 I
1988 22,500 763,454,517 9,405,778
1989 23,500 729,914,210 8,750,778 I
1990 22,710 759,841,760 8,080,778
1991 22,814 761,569,171 7,365,778
1992 25,680 806,261,160 6,575,778 I
1993 26,333 781,187,783 9,061,649
1994 27,356 825,111,643 8,160,895 I
1995 27,700 869,085,848 4,776,263
I
Source — Tax assessor/collector and accounting records of the City.
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95 I
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Table 9
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I
I Ratio of Net
Less Debt Bonded Debt Net Bonded
Service Net to Assessed Debt
IFunds Bonded Debt Value Per Capita
$ 459,306 $ 10,191,472 1.58 % $ 453
I518,998 9,546,780 1.25 415
325,894 9,079,884 1.19 404
I
280,793 8,469,985 1.16 360
57,308 8,023,470 1.06 353
I50,854 7,314,924 0.96 321
78,244 6,497,534 0.81 253
I
45,501 9,016,148 1.15 342
I47,281 8,113,614 0.98 297
56,968 4,719,295 0.54 170
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I
I
I96
I
CITY OF FRIENDSWOOD, TEXAS I
Table 10
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years I
Ratio of I
Interest Total Debt Total Debt Service
Fiscal and Fiscal Service General Requirements
Year Principal Charges Requirements Expenditures to Expenditures
1986 $ 484,427 $ 579,859 $ 1,064,286 $ 5,763,969 18.46
1987 620,386 694,328 1,314,714 6,624,296 19.85
1988 690,323 654,370 1,344,693 6,614,293 2033 I
1989 687,029 618,699 1,305,728 6,645,694 19.65
1990 721,245 583,352 1,304,597 7,163,992 18.21
1991 763,192 538,736 1,301,928 7,726,061 16.85
1992 830,000 485,242 1,315,242 8,440,480 15.58
1993 945,000 489,052 1,434,052 8,726,615 16.43
1994 960,000 433,270 1,393,270 9,376,365 14.86
1995 910,000 358,551 1,268,551 10,179,395 12.46
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97
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CITY OF FRIENDSWOOD, TEXAS
Table 11
I
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
September 30, 1995
I
Percentage
I
Applicable City of
Net Debt Outstanding to City of Friendswood's
Name of Governmental Unit Outstanding as of Friendswood Share of Debt
I
Friendswood Independent
School District $ 08/31/94 100.00 % $
I Clear Creek Independent
School District 09/30/94 3.94
Galveston County 12/31/92 5.68
IHarris County 1,676,440,000 02/28/94 0.15 2,514,660
Harris County Toll Road
I Authority 02/28/94 0.15
Harris County Flood
IControl District 02/28/94 0.15
Harris County Hospital
IDistrict 02/28/94 0.15
Port of Houston Authority 12/31/94 0.15
I Total Net Overlapping
Debt 2,514,660
City of Friendswood 4,719,295
Total Net Direct and
Overlapping Debt $ 7,233,955
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98
1
I
CITY OF FRIENDSWOOD, TEXAS
Table 12
DEMOGRAPHIC STATISTICS I
Last Ten Fiscal Years
I
Fiscal Per Capita Median Unemployment I
Year Population Income Age Rate (A)
1985 22,500 $ 27,735 27.9 12.6 9, I
1986 23,000 29,273 29.7 103
1987 22,500 29,743 29.7 6.8 I
1988 23,500 20,409 32.9 6.4
1989 22,710 N.A. N.A. 5.0 I
1990 22,814 N.A. N.A. 7.4
1991 25,680 N.A. N.A. 8.9 I
1992 26,333 N.A. N.A. 7.6 I
1993 27,356 N.A. N.A. 7.8
1994 27,700 N.A. N.A. I
N.A. — Not Available
(A) Source — Texas Employment Commission I
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99 I
1
CITY OF FRIENDSWOOD, TEXAS
Table 13
' PROPERTY VALUE AND CONSTRUCTION
Last Ten Fiscal Years
' Fiscal Property
Year Value Construction
1986 $ 645,891,660 S 26,920,850
' 1987 760,787,760 17,337,714
1988 763,454,517 19,712,294
' 1989 729,914,210 14,998,749
' 1990 759,841,760 37,068,554
1991 761,569,171 46,975,722
' 1992 806,261,160 63,126,050
1993 917,420,470 61,604,061
' 1994 976,268,953 64,653,799
1995 1,021,248,848
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100
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CITY OF FRIENDSWOOD, TEXAS I
REQUIRED SUPPLEMENTARY INFORMATION '
TEXAS MUNICIPAL RETIREMENT SYSTEM
ANALYSIS OF FUNDING PROGRESS
Last Ten Calendar Years I
I
Plan Net Assets Pension Unfunded I
Calendar Available Benefit Percentage Pension
Year for Benefits Obligation Funded Obligation I
1985 $ 751,832 $ 1,044,018 72.0 % $ 292,186
1986 979,872 1,321,465 74.2 341,593 I
1987 1,265,501 1,632,280 775 366,779
1988 1,582,085 1,878,557 84.2 296,472 I
1989 1,866,216 2,204,025 84.7 337,809
1990 2,223,461 2,978,946 74.6 755,485 I
1991 3,323,037 3,606,837 92.1 283,800
1992 3,954,115 4,245,973 93.1 291,858 I
1993 4,547,707 5,418,187 83.9 870,480 I
1994 5,190,936 5,862,152 88.6 671,216
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N.A. — Not Available
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101 I
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Table 14
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I
IUnfunded
Pension
I
Annual Benefit as a
Percentage City Average
Covered of Covered Contribution City
Payroll Payroll to TMRS Rate
I $ N.A. N.A. % $ N.A. N.A. %
I 2,132,015 16 73,092 3
2,516,687 14.6 85,739 3.4
1 2,615,976 11.3 86,290 33
2,617,976 12.9 97,716 3.7
1 2,955,563 25.6 171,244 5.8
3,051,394 9.3 210,370 6.9
I3,339,878 8.7 208,440 6.2
3,469,512 25.1 207,130 6.0
I3,892,013 17.2 257,192 6.0
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I
I 102
I
CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF IMPACT FEE PROJECT CHANGES
Year Ended September 30, 1995
South South
Friendswood Friendswood
Surface Water Service Area Service Area
Facilities Water Wastewater
Improvements Improvements Improvements
Increases
Impact fees $ 121,152 $ 7,618 $ 18,960
Interest 2,708 1,565 751
123,860 9,183_ 19,711
Decreases
Improvements:
I&I Analysis
Transfer for Debt Service
Payments: '
1988 Certificate of Obligation 134,182
1992 Certificate of Obligation 37,215
1993 Refunding Bonds I
134,182 37,215
Net Increase (Decrease) (10,322) 9,183 (17,504)
Balance,beginning of year 10,322 68,351 17,504
Balance, End of Year $ $ 77,534 $
I
Source — City subsidiary records tracking project information regarding impact fees received by the
Enterprise Fund. Impact fees are recorded as additions to contributed capital in the Enterprise
Fund. I
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103
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Table 15
' Other
Water and
Wastewater
Improvements Totals
S 19,708 S 167,438
406 5,430
20,114 172,868
20,114 20,114
134,182
37,215
t
2 0,114 191,511
' (18,643)
96,177
S S 77,534
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104
C
CITY OF FRIENDSWOOD, TEXAS
Table 16
MISCELLANEOUS STATISTICAL DATA Page 1 of 2
September 30, 1995
1
Date of incorporation October 15, 1960
Date of present charter Adopted Home Rule Charter
October 16, 1971 111
Form of government Council— Manager
Area 22.70 square miles
Miles of Streets
Streets — Paved 111.67 miles
Streets — Unpaved 2.40 miles
Fire Protection
Number of stations 3
Number of employees(Full—time equivalent) 6.00
Number of volunteers 86
Fire Prevention
Number of employees(Full—time equivalent) 2.20
Number of volunteers — I
Police Protection
Number of stations 1
Number of sworn officers(Full—time equivalent) 35.6
Number of patrol units 10
Recreation
Number of parks 6
Size of parks 110.5 acres
Number of golf courses —
Number of swimming pools 1
Number of tennis courts 4
Miles of storm sewers 84.68 miles
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105
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CITY OF FRIENDSWOOD, TEXAS
Table 16
' MISCELLANEOUS STATISTICAL DATA Page 2 of 2
September 30, 1994
i
Education
Friendswood Independent School District:
Number of teachers 262
Number of students 4,303
tClear Creek Independent School District:
Number of teachers
Number of students
1
City Employees
' Department heads 7
Employees:
Full—time 121.00
Part—time(Full—time equivalent) 25.12
Total 146.12
Election
Number of Votes Cast:
Last City Election — Regular Election 2,156
Water
Source Ground Water Surface Water
Average daily consumption 1,273,211 gallons 2,087,255 gallons
Maximum daily consumption 3,742,000 gallons 3,675,000 gallons
Water mains 100 miles
Number of connections 8,210
Sewer Blackhawk Tower Estates
Average daily flow 2,609,753 gallons 200,101 gallons
Maximum daily flow 7,607,000 gallons 853,000 gallons
Sanitary sewer mains 100 miles
Number of connections 7,878
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106