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HomeMy WebLinkAbout1991 09 30 Comprehensive Annual Financial Report - City of Friendswood I I 1 1 1 I COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF FRIENDSWOOD, TEXAS For the fiscal year ended September 30, 1991 1 1 1 Prepared by Finance Department Roger C. Roecker Director of Finance I I CONTENTS eExhibit Pa e INTRODUCTORY SECTION Letter of Transmittal 8 Certificate of Achievement 16 ' Organization Chart 17 Principal Officials 18 FINANCIAL SECTION ' Independent Auditors' Report 20 General Purpose Financial Statements ' Combined Balance Sheet - All Fund Types and Account Groups 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 26 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Fund Types 28 Combined Statement of Revenues, Expenditures and ' Changes in Fund Balances - Budget and Actual - Capital Projects Fund 31 t Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - Proprietary Fund Type and Non-Expendable Trust Fund 32 Combined Statement of Cash Flows - Proprietary Fund Type and Non-Expendable Trust Fund 36 ' Notes to Financial Statements 40 Combining, Individual Fund and Account Group Statements and Schedules General Fund Comparative Balance Sheets A-1 67 Statement of Revenues and Expenditures - IBudget and Actual A-2 68 -3- CONTENTS- 2 Exhibit Pia e FINANCIAL SECTION (continued) Statement of Expenditures - Budget and Actual - By Function A-3 69 Statement of Expenditures - Budget and Actual - By Object A-4 71 Special Revenue Funds Combining Balance Sheet B-1 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-2 80 Parks and Recreation Fund Comparative Balance Sheets B-3 81 1 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-4 82 Mowing Fund Comparative Balance Sheets B-5 83 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-6 84 Police Investigation Fund Comparative Balance Sheets B-7 85 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-8 86 Fire/EMS Fund Comparative Balance Sheets B-9 87 1 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-10 88 Fine Art Council Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-11 89 I I -4- 1 ICONTENTS- 3 I Exhibit Pape FINANCIAL SECTION (continued) IDebt Service Fund Comparative Balance Sheets C-1 92 I Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-2 93 ICapital Projects Fund IComparative Balance Sheets D-1 96 Statement of Revenues, Expenditures and Changes in Fund Balance - IBudget and Actual D-2 97 Enterprise Fund IComparative Balance Sheets E-1 100 Statement of Revenues, Expenses and I Changes in Retained Earnings - Budget and Actual E-2 102 I Statement of Operating Expenses - Budget and Actual E-3 103 Schedule of Revenue Bonds Payable E-4 105 I Revenue Bonds Payable - By Maturity Date E-5 106 ICertificates of Obligation - By Maturity Date E-6 108 Trust Fund IComparative Balance Sheets F-1 110 Comparative Statements of Revenues, Expenses Iand Changes in Fund Balances F-2 111 General Fixed Assets Account Group IComparative Schedules of General Fixed Assets - By Source G-1 114 I Schedule of General Fixed Assets - By Function and Activity G-2 115 I Schedule of Changes in General Fixed Assets - By Function and Activity G-3 116 IGeneral Long-Term Debt Account Group Statement of Changes in General Long-Term Debt H-1 118 I -5- CONTENTS- 4 Exhibit Page FINANCIAL SECTION (continued) Schedule of General Long-Term Debt H-2 121 General Long-Term Debt - By Maturity Date H-3 122 Compound Bonds - Accrued Interest Schedule H-4 126 Schedules Schedule of Delinquent Taxes Receivable I-1 128 STATISTICAL SECTION 1 General Revenue - By Source I 130 General Governmental Expenditures - By Function II 132 1 Tax Revenues - By Source III 135 Property Tax Levies and Collections IV 136 Assessed and Estimated Actual Value of Taxable Property V 138 Property Tax Rates and Tax Levies - Direct and VI 140 Overlapping Governments Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General ObligationI Bonded Debt Per Capita VII 142 Computation of Net Direct and Estimated Overlapping Debt VIII 144 Ratio of Annual Debt Service Expenditures for General Long-Term Debt to Total General Expenditures IX 145 Tax Rate Distribution X 147 Revenue Bond Coverage XI 148 Principal Taxpayers XII 150 1 Property Value, Construction and Bank Deposits XIII 151 Demographic Statistics XIV 153 Schedule of Insurance In Force XV 154 Miscellaneous Statistical Data XVI 158 Principal Officials XVII 160 -6- 1 0 g a 0 E — E. ow N. ■r — M■ 111111 = EN = — r■ am mg w — m um I •Q 1 £Lty o f }tLndwood � 1 EXAS December 14, 1991 1 Honorable Mayor and Members of the City Council City of Friendswood, Texas The comprehensive annual financial report of the City of Friendswood for the fiscal year ended September 30, 1991, 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 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. The 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 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 multiyear basis. The Single Audit Act is not applicable for fiscal year ended September 30, 1991. There are no major and nonmajor Federal Financial Assistance programs. This report includes all funds and account groups of the City. There are two separately administered organizations which are included as a component unit in accordance with the Governmental Accounting Standards Board (GASB) Codification Section 2100. These organizations are the Blackhawk Regional Wastewater Treatment Plant and the Southeast Water Purification Plant. The City's equity in the operating fund of Blackhawk Regional Wastewater Treatment plant is included in the Enterprise Fund. Friendswood Independent School District, Clear Creek Independent School District, Galveston County,Harris County,Clear Creek 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. 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: 1 1 FINANCE DEPARTMENT • 109 E. WILLOWICK AVE. • FRIENDSWOOD, TX 77546-3898 • (713)482-3323 ACCOUNTING • COMPUTING SERVICES -8- MUNICIPAL COURT • UTILITY BILLING 1 I 1. 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. 2. Police Twenty-four hour coverage is provided by the City's police department, which consists of Patrol, Investigative, Communications, Emergency Management and Animal Control. A goal of the department and its forty full-time personnel is to actively involve the citizens in its community safety efforts. 3. Fire Although the City does not employ its own fire department, it purchases fire trucks and other additional equipment for the volunteer fire department. The City employs a fire marshal,one full-time fire fighter, a part-time clerk and funds two fire fighters, one paramedic and emergency medical technician position through a pool of part-time employees. 4. Streets The street department is responsible for the repair and maintenance of all City streets and roadside drainage. This department consists of 11.5 employees. 5. Sanitation The City's solid waste services, including curbside pickup of recyclable materials, are contracted to a private firm. Residential pickup is twice weekly. 6. Parks The parks and recreation department maintains 57 acres of park land, including four tennis courts, a swimming pool and picnic areas. The staff consists of seven full-time employees, as well as part-time and seasonal employees for the swimming pool, summer camp, sports activities and other park functions. ECONOMIC CONDITION AND OUTLOOK The City of Friendswood, Texas, is located 20 miles southeast of downtown Houston in Harris and Galveston Counties. With a 1990 census of 22,814, it has become the 75th largest city in the state. During the past year, the area's economic growth continued in all of the Gulf Coast's industries, except construction and finance. Service industries led the year's job growth, followed by local government, transportation and manufacturing. Much of the job growth in services is directly attributable to health and biomedical firms located in the Texas Medical Center in Houston, as well as aerospace firms working on projects for NASA's Johnson Space Center(JSC). Groundbreaking for the expansion of the JSC Visitor's Facility has occurred. This facility is expected to more than double the number of visitors from 800,000 to more than 2,000,000 and result in an overall economic impact of about $100 million annually. Funding approval for the JSC space station project and continued diversification of the area's economy indicate continued growth for the Friendswood/Gulf Coast area. t -9- I MAJOR INITIATIVES For the Year. During the 1990-91 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. 1. Streets I 1990-91 was the seventh year of the City's street improvement program. The following streets were a part of this project: Forest View, Fairdale, Linkwood, Royal Court,Diamond Lane and West Spreading Oaks. 2. Water and Sewer Water and sewer lines were relocated in preparation of the widening of FM 2351 and FM 528. Contracts for these projects totaled $730,372. 3. Parks and Recreation 2.31 acres of land was purchased to complement Stevenson Park. This additional acreage will be used to provide additional parking space for this busy City facility. 4. City Hall Remodeling Expansion of the police department holding facility was completed. This construction was required to meet state standards and increase the available occupancy from four to twelve persons. I 5. Computer Resources An IBM AS/400 computer system was purchased to replace the IBM System/36. The AS/400 I will become the primary computer servicing the majority of the City's departments. The System/36 will be moved to the police department to provide computer aided dispatching. For the Future. I 1. Drug-Free Workplace, Ethics Policies Adopted Policies to reinforce the City's commitments to a drug-free workplace and to the highest standards of ethical conduct have been adopted. The drug-free procedures include testing for alcohol and drug abuse for the job applicants and in "reasonable belief'situations. The ethics policy presents in one document,the standard of conduct expected so as to avoid both the fact and appearance of impropriety by members of City Council, employees and volunteer committee members. 2. Streets $227,500 is budgeted for overlaying streets with hot mix asphalt. An additional $15,000 is designated for street repairs. A sidewalk from Blackhawk Boulevard along Whispering Pines and FM-518 to Stevenson Park is also included in the current budget. I 1 -10- 1 3. Parks and Recreation Over $200,000 of capital improvements to upgrade the City's parks are scheduled during 1991-92. The first phase of a master development plan for Stevenson Park will include the installation of a disabled accessible playground system,jogging trail,signage and landscaping. Renwick Park improvements will include resurfacing the parking lot and upgrading the drainage system. New playground equipment and landscaping are also scheduled for Arena Park. 4. Water and Sewer Repairs to sanitary sewer lines and an infiltration and inflow(I&I)analysis have been budgeted ' to the tune of $83,960. The South Friendswood Sewer Interceptor Project is currently being designed. This project will consist of over two miles of gravity sewer main ranging from 24 to 36 inches in diameter,a new wastewater pumping station and over one mile of 20-inch force main. Construction of this project will allow further development of the southern part of the City and ultimately will allow the abandonment of the Tower Estates Wastewater Treatment Plant. Cost of the project is estimated at over $2,400,000. Department Focus. Each year the City will select a department to highlight for its efforts and accomplishments. For 1990-91, the Friendswood Public Library has been chosen for review. The Friendswood Public Library, begun in August, 1965, resides in a 7,850 sq. ft. building at 416 Morningside Drive and the annex, known as the Little Library House at 108 Spreading Oaks. Effective use of six full-time employees and five full-time equivalents in part-time positions enable ' the library to staff five public service points: circulation, patron registration and returns, children's services, reference and readers' advisory and Little House desks. During 1989-90, the City purchased an integrated computer system for the library. In its first full year after completing the computerization project, loans increased 20% over the previous year to 162,765; attendance rose 15% to 89,988; new borrowers were up 27% to 2,987; reference questions soared 58% to 10,715; attendance at 254 programs was up 7% and 5,173 books were added to the ' collection, bringing the book total to 66,731. One of the most popular services offered by the library is its programming for the children of the ' community. The Summer Vacation Reading Programs feature as many as seven program activity sessions per week. Throughout the school year, a variety of programs and activities are offered, including puppet shows, story times, clowns, children's films and magic shows. ' All of the offerings are intended to support the mission statement of the library;that is, "To provide appropriate informational,educational, recreational,and cultural materials and programs,to citizens, property owners, or employees of this City and their families." r 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. ' -11- IP Pi Budgeting Controls. 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. Activities of all funds are included in the annual appropriated IP budget. The level of budgetary control(that is,the level at which expenditures cannot legally exceed w lik the appropriated amount) is established by department within an individual fund. The City also 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 continues to meet its responsibility for sound financial management. General Government Functions. Revenues for general government functions (General, Special Revenue and Debt Service Funds) totaled $7,535,424 in 1990-991 an increase of $478,857 over 1989-1990. General property taxes produced 63.02 percent of the general revenues compared to 64.58 percent the preceding year. Sales taxes produced 9.81 percent of the general revenues compared to 9.77 percent the preceding year. The amount of revenue from various sources and the increase or (decrease) over the preceding year are shown in the following tabulation: Increase 1990-91 Percent (Decrease) Revenue Sources Amount of Total Over 1989-90 General property taxes $4,749,173 63.02% $192,040 I Business gross receipts taxes 456,566 6.06 37,504 General sales taxes 739,216 9.81 49,640 Other taxes 3,509 .05 2,758 Sanitation 733,245 9.73 138,001 Fines and forfeitures 166,355 2.21 (281) Licenses and permits 286,421 3.80 46,127 Intergovernmental 28,641 .38 (22,343) Interest income 232,773 3.09 10,445 Other 139.525 1.85 24.966 TOTAL 17,.535,424 100.00% $478,857 Assessed valuations of$761,569,171 represented an increase of .22 percent over the preceding year. Assessed valuations are at 100% of market value as determined by the Galveston County and Harris I County Appraisal Districts. The assessed tax levy at October 1, 1990, relating to the fiscal year 1990-91 was $4,636,066 after adjustments, an increase of 2.3 percent over the tax levy at October 1, 1989. Current tax collections were $4,561,109, 98.38 percent of the tax levy, up $133,956 from last year. The ratio of total collections (current and delinquent) to the current tax levy was 100.85 I percent, an increase of 1.51 percent from last year. The City had a total of $339,731 in delinquent taxes outstanding as of September 30,1991 which I represents 7.33 percent of the current tax levy. Delinquent tax collections were $114,376, or 30.17 percent of the delinquent tax levy, up $39,892 I from last year. Penalties and interest collections totalled $73,271, an increase of $18,192 over the prior year. These increases were due to payment of delinquent taxes,penalties and interest by a major taxpayer. Growth in new home construction contributed to the increase in business gross receipts taxes, general I sales taxes,permits and fees and sanitation revenues. The total amount of new construction for 1990- 91 was $46,975,722, up from $37,068,554 for 1989-90, an increase of 26.73 percent. An additional 263 sanitation customers were added during 1990-91. II -12- I I Rate increases in electricityand regular sanitation service also contributed g to the increase in business gross receipts taxes and sanitation revenues. Electric rates increased in March, 1991 and regular I sanitation service rates increased in November, 1990. In addition,the City began a recycling program February 1, 1991 with each customer paying a $1.00 recycling fee. Total customer recycling fees collected were $55,695. Total gross revenues from recyclables was $38,192. The City's net profit for Irecycling during 1990-91 was $10,466. 1990-91 I Gross recycling revenue $38,192 Less processing fees 27.726 INET RECYCLING REVENUE $10,466 Intergovernmental revenues decreased in 1990-91 due to a one-time grant from the Federal Aviation Agency in 1989-90. Other income increased in 1990-91 due to insurance reimbursements and I additional revenues from the Federal U.S. Marshal's Office. Allocations of property tax levy by purpose for 1990-91 and the preceding two fiscal years are as Ifollows (tax rate per $100 of assessed value): Purpose 1990-91 1989-90 1988-89 I General Fund $.50876 $.5333 $.50746 General Obligation Debt .18E. .1617 .18754 I TOTAL TAX RATE S.69500 .6950 S.69500, Expenditures for general government purposes totaled $7,726,123, an increase of $562,131 from 1989-90. Increases or(decreases)in the levels of expenditures for major functions of the City for the Ipreceding year are shown in the following tabulation: Increase 1990-91 Percent (Decrease) I Function Amount of Total Over 1989-90 General Government $1,085,683 14.05X $(172,367) Public Safety 2,478,564 31.90 • 304,879 I Public Works 1,521,841 19.70 324,952 Community Development 289,501 3.75 7,778 Community Services 1,048,606 13.75 99,558 Debt Service 1.301.928 16.85 (2.669) ITOTAL $7.726.123, 100.00% $ 562.131, General government expenditures decreased by $342,557 due to the reallocation of insurance costs I from administration to public safety, $254,704; public works, $99,996; community development, $26,019;and community services$39,542. The City's total insurance costs increased by$77,705 which is reflected in the above allocation. General government expenditures increased when positions that Iwere vacant in 1989-90 were filled in 1990-91. An AS/400 computer system was also purchased in 1990-91. As stated previously, the majority of the increase in public safety expenditures was due to the I reallocation of insurance costs. In addition to the reallocation of insurance,public works expenditures increased due to the purchase of a dump truck and an increase in sanitation expense corresponding to the increase in sanitation revenues. The City contracts with Best Waste Systems, Inc.for sanitation I services and retains 3 percent of the sanitation revenues for administrative services. The City began a recycling program in 1990-91, as stated previously, and all fees collected, less 3 percent for administrative services, are paid to the vendor as well as a processing charge of $30 per ton. I -13- Communityservices expenditures also increased due to the insurance reallocation. The lighting for P g 8 the girls softball fields at Renwick Park sports complex and the Drug Awareness Resistance Education (DARE) programs at the elementary school level were also funded in larger amounts. These community services expenditure increases were offset by a decrease in library expenditures due to the purchase of the Dynix computer system in 1989-90. It should be noted that all increases were planned for and budgeted. I Fund balances in the major operating funds were maintained at budgeted levels. The General Fund Balance of $1,434,997 was up $475,394 from the preceding year; the Debt Service Fund balance of $50,856 was down $6,452 from the preceding year;the Capital Projects Fund balance of$355,010 was down $231,195 from the prior year; and Special Revenue Fund balances of$71,572 was up $17,596 from the prior year. I Enterprise Fund Operations. The water and sewer utility continued to show gains in number of customers. Comparative data for the past two fiscal years are presented in the following tabulation: Year Ended Sept. 30. 1991 1990 Operating revenue $3,350,312 $3,472,772 I Operating expenses before depreciation 1.857.809 1.597.064 Net Operating Revenue Available For Debt Service $1 L492,503 $11875.708 Debt service $. 176,906 $ 186I275 Coverage (income available for debt service divided by annual debt service) 8.44 10.07 Number of customers - sewer 6,983 6,719 Number of customers - water 7,336 6,968 The Enterprise Fund,which is used to account for utility operations,had maintained retained earnings of $4,674,170 and $4,954,866 as of September 30, 1991 and 1990, respectively. These retained earnings balances are considered adequate based on the operating needs of the water and sewer utility. I Non-expendable Trust Fund Operation. The Non-expendable Trust Fund is comprised of assets held by the City for the 1776 Park. Activity in this fund resulted solely from interest earnings during the years ended September 30, 1991 and 1990 of$1,934 and $2,016 and fund balances were $83,967 and $82,033 as of September 30, 1991 and 1990, respectively. Debt Administration. The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to municipal management,citizens and investors. These data for the City of Friendswood at the end of the 1990-91 fiscal year were as follows: 1 Ratio of Debt to Assessed Value Debt (100 Percent of Per Description Amount Present Market) Capita Net direct bonded debt $ 7,314,924 .97% $321 Overlapping debt 13.945.899 1.86 611 Total direct and overlapping debt $21.260.823 2.83% §212 Outstanding tax supported debt at September 30, 1991 totaled $7,495,778. I I-14- I Cash Management. Cash temporarily idle during the year was invested in certificates of deposit ranging from 14 to 126 days to maturity. Yields on certificates of deposit ranged from 5.04 percent ' to 6.39 percent during the year ended September 30, 1991. Upon maturity, certificates of deposit were invested in TexPool and yielded 6.1716 percent at year ended September 30, 1991. Interest earned for the year was $232,773, up $10,445 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, 1991 are classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board. Risk Management. The City, for 1991, 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 LAIRSON,STEPHENS AND REIMER,P.C.,CPA's,was selected and their opinion has been included in this report. 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, 1990. This was the fourth 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 the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance 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, arr._ e. Roger C. Roecker Director of Finance ' -15- 1 1 Certificate of Achievement 1 for Excellence in Financial Reporting Presented to 1 City of Friendswood, 1 Texas For its Comprehensive Annual Financial Report 1 for the Fiscal Year Ended September 30, 1990 A Certificate of Achievement for Excellence in Financial Reporting is Presented by the Government Financial Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFR's)achieve the highest standards in government accounting and financial reporting. 1 • OF THE d W UNITED STATES 7N AND v.CANAa CORPORATION j President ° s: � CMIC►GAYO"7 se et‘We Executive Director 1 -1 6- I I I CITY OF FRIENDSWOCD IORGANIZATIONAL CHART I IMAYOR s COUNCIL CITY SECRETARY IAPPOINTED BOARDS ?RIENDSMDOD CITYMUNICZPA: t CITY AND AD BOC VOLUNTEER ATTORNEY JUDGE PROSECUTOR COMMITTEES rums DEPARTMENT I I I t , t t CITY MANAGER t t , I I I fin ADMINISTRATION L. DEPARTMENT rI7m= I POLICE PIPE MANUAL PUBLIC WORKS COMMUNITY LIBRARY PARRS AND DEVELOPMENT RECREATION I I 1 I I I _17_ I PRINCIPAL OFFICIALS CITY OF FRIENDSWOOD, TEXAS 1 September 30, 1991 MAYOR Paul W. Schrader Councilmember Councilmember Position No. 1 Position No. 4 Ronald H. Ritter Ed Stuart Mayor Pro-Tem Councilmember Councilmember Position No. 2 Position No. 5 Mel P. Measeles Harold Raley Councilmember Councilmember Position No. 3 Position No. 6 Evelyn B. Newman Frank Frankovich 1 City Manager ' Ronald E. Cox I City Secretary Tax Assessor/Collector Deloris Archer Alta Carbone ' Director of Finance , Roger C. Roecker I t -18- r ® i MI MO 0 ° I LAIRSON, STEPHENS & REIMER A Professional Corporation Certified Public Accountants 1716 Mangum,Suite 300 • Houston,Texas 77092 • Tel.(713)681-8500 • Fax(713)681-9043 I INDEPENDENT AUDITORS' REPORT 1 Honorable Mayor and Members of City Council City of Friendswood, Texas I We have audited the accompanying general purpose financial statements of the City of Friendswood, Texas and the combining, individual fund and account group financial statements of the City of Friendswood,Texas as of and for the year ended September 30, 1991,as listed in the table of contents. These financial statements are the responsibility of the City of Friendswood,Texas management. Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all 1 material respects,the financial position of the City of Friendswood,Texas at September 30, 1991,and the results of its operations and the cash flows of its proprietary and non-expendable trust fund for the year then ended, in conformity with generally accepted accounting principles. Also, in our opinion, the combining, individual fund and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of the City of Friendswood,Texas at September 30, 1991,and the results of operations of such funds and the cash flows of individual proprietary and non-expendable trust funds for the year then ended, in conformity with generally accepted accounting principles. I r -20- i Honorable Mayor and Members of City Council ' City of Friendswood, Texas Page Two 1 Our audit was made for the purpose of forming an opinion on the general purpose financial statements 1 taken as a whole and on the combining, individual fund and account group financial statements. The accompanying financial information listed as schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of 1 Friendswood,Texas The information in these schedules has been subjected to the auditing procedures applied in the audit of the general purpose, combining, individual fund and account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. i f C .• i Houston, Texas January 15, 1992 i 1 i i 1 i 1 1 -21- CITY OF FRIENDSWOOD, TEXAS 11 COMBINED BALANCE SHEET-ALL FUND TYPES 11 AND ACCOUNT GROUPS September 30, 1991 11 GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS ASSETS AND OTHER DEBITS ASSETS CASH - including certificates of deposit $2,062,105 $74,030 $ 50,852 $428,365 RECEIVABLES - net where applicable, of allowances for uncollectibles Property taxes 247,434 92,297 Accounts 100,108 22,250 Interest 166 5 4 22 PREPAID EXPENDITURES AND OTHER ASSETS 118,293 RESTRICTED ASSETS Cash - including certificates of deposit Land Blackhawk operating fund deposit GENERAL FIXED ASSETS - at cost 1 PROPERTY, PLANT AND EQUIPMENT - at cost less accumulated depreciation - Note 4 CERTIFICATE OF OBLIGATION ISSUANCE COSTS - net of amortization OTHER DEBITS Amount available in debt service funds Amount to be provided for retirement of general long-term debt TOTAL ASSETS AND OTHER DEBITS $2,528,106 $96,285 $143.153 $428.387 1 1 I -22- ' II II II l of 2 II FIDUCIARY PROPRIETARY FUND TYPE TOTALS II FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY) EXPENDABLE GENERAL FIXED GENERAL LONG- ENTERPRISE TRUST ASSETS TERM DEBT 1991 1990 II II $ 1,570,104 $ 4,185,456 $ 4,135,350 II 524,342 339,731 371,886 646,700 491,017 158 $ 2 357 25,683 II11,899 130,192 59,680 1 453,751 26,765 480,516 571,351 57,200 57,200 57,200 120,436 120,436 109,279 II $18,594,406 18,594,406 17,391,871 II21,226,587 21,226,587 21,155,609 II 29,665 29,665 31,948 II $ 50,856 50,856 57,308 7.444.922 7.444.922 8.201.662 $23,936,942 $83,967 $18,594,406 $7,495,778 $53.307.024 $52.659.844 II II II See notes to financial statements. 11 -23- 1 CITY OF FRIENDSWOOD, TEXAS COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1991 GOVERNMENTAL FUND TYPES ' SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $ 343,333 $ 2,463 $ 73,377 COMPENSATED ABSENCES 486,295 PAYABLE FROM RESTRICTED ASSETS Accrued interest Revenue bonds and certificates of obligation - current portion Deposits Impact Fee Refunds Payable DEFERRED REVENUE 263,481 22,250 $ 92,297 LEASE OBLIGATION REVENUE BONDS GENERAL OBLIGATION BONDS CERTIFICATES OF OBLIGATION TOTAL LIABILITIES 1,093,109 24,713 92,297 73,377 EQUITY AND OTHER CREDITS INVESTMENT IN GENERAL FIXED ASSETS CONTRIBUTED CAPITAL - Note 12 RETAINED EARNINGS Reserved for revenue bond retirement Reserved for construction Unreserved FUND BALANCES Reserved for prepaid expenditures 118,293 Reserved for encumbrances 316,668 63 191,116 Reserved for endowments Reserved for pool 2,212 Reserved for programs 252 Unreserved Designated for emergency operations 600,00011 Designated for construction 163,894 Designated for debt service 50,856 Undesignated 399,784 69.297 , TOTAL EQUITY AND OTHER CREDITS 1,434,997 71.572 50.856 355.010 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $2,528,106 96 285 $143,153 $428,387 1 -24- II II I 2of2 I FIDUCIARY PROPRIETARY FUND TYPE TOTALS II FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY) EXPENDABLE GENERAL FIXED GENERAL LONG- ENTERPRISE TRUST ASSETS TERM DEBT 1991 1990 1 1 $ 295,172 $ 714,345 $ 452,096 48,700 534,995 475,427 II28,966 28,966 30,247 235,000 235,000 220,000 80,065 80,065 48,320 I - 227,484 378,028 409,777 - 13,192 600,000 600,000 735,000 ' 4.010.000365,77 30$7,130 008 7,365,778 8,080,778 . 0 4.140.000 4.275.000 5,297,903 7,495,778 14,077,177 14,967,321 1 $18,594,406 18,594,406 17,391,871 13,964,869 13,964,869 13,606,661 II401,860 401,860 208,320 863,992 863,992 932,079 3,408,318 3,408,318 3,814,467 II 118,293 53,784 507,847 294,922 1 $67,200 67,200 67,200 2,212 2,052 252 227 II600,000 400,000 163,894 354,655 50,856 57,308 I 16.767 485.848 508.977 18.639,039 83.967 18.594.406 39.229.847 37.692.523 $23.936.942 $83.967 $18.594.406 $7.495.778 $53.307.024 $52.659.844 11 II See notes to financial statements. II -25- li CITY OF FRIENDSWOOD, TEXAS II COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -ALL GOVERNMENTAL FUND TYPES Year ended September 30, 1991 II GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL II GENERAL REVENUE SERVICE PROJECTS REVENUES Taxes $4,677,163 $1,271,301 I! Sanitation 733,245 Fines and forfeiture 166,355 Licenses and permits 286,421 Donations 2,951 $53,644 II Intergovernmental 28,641 Interest 203,688 4,910 24,175 $ 30,384 Other 63.098 19.832II TOTAL REVENUES 6,161,562 78,386 1,295,476 30,384 EXPENDITURES Current General government 1,085,683 II Public safety 2,425,174 53,390 Public works 1,521,841 Community development 282,101 7,400 Community services 1,048,606 II Capital outlay 710,255 Debt service Principal retirement 763,192 II Interest and fiscal charges 538.736 TOTAL EXPENDITURES 6.363.405 60.790 1.301.928 710.255 REVENUES OVER (UNDER) EXPENDITURES (201,843) 17,596 (6,452) (679,871) II OTHER FINANCING SOURCES Operating transfers in 1,125,913 448,676 Operating transfers out (448.676) II TOTAL OTHER FINANCING SOURCES (USES) 677.237 448.676 REVENUES AND OTHER SOURCES 1 OVER (UNDER) EXPENDITURES 475,394 17,596 (6,452) (231,195) Fund balances at beginning of year 959.603 53.976 57.308 586.205 1 FUND BALANCES AT END OF YEAR $1,434 L997 $71,572 $ 50,856 $ 355.010 1 1 1 -26- 1 e 1 1 I ' TOTALS (MEMORANDUM ONLY) 1991 1990 $5,948,464 $5,666,522 733,245 595,244 166,355 166,982 286,421 240,294 56,595 55,289 28,641 50,984 11 263,157 265,449 82.930 59.818 7,565,808 7,100,582 1,085,683 1,258,050 2,478,564 2,173,685 1,521,841 1,196,889 11 289,501 281,723 1,048,606 949,048 710,255 71,586 ' 763,192 721,245 538.736 583.352 8.436.378 7.235.578 ' (870,570) (134,996) 1,574,589 638,982 (448.676) (290.233) 1.125.913 348.749 255,343 213,753 ' 1.657.092 1.443.339 $1.912.435 $1.657.092 I 1 See notes to financial statements. ' -27- I CITY OF FRIENDSWOOD TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES INI FUND BALANCES- BUDGET AND ACTUAL- GENERAL,SPECIAL REVENUE AND DEBT SERVICE FUND TYPES Year ended September 30, 1991 1 GENERAL FUND I VARIANCE- FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes $4,460,614 $4,677,163 $ 216,549 Sanitation 664,157 733,245 69,088II Fines and forfeitures 193,481 166,355 (27,126) Licenses and permits 180,882 286,421 105,539 Donations 4,298 2,951 (1,347) Intergovernmental 31,153 28,641 (2,512) II Interest 162,019 203,688 41,669 Other 47.386 63.098 15.712 5,743,990 6,161,562 417,572 II EXPENDITURES Current General government 1,271,058 1,085,683 185,375 Public safety 2,673,009 2,425,174 247,835II Public works 1,418,068 1,521,841 (103,773) Community development 292,355 282,101 10,254 Community services 1,051,976 1,048,606 3,370 Capital outlays11 Debt Service Principal retirement Interest and fiscal charges TOTAL EXPENDITURES 6.706.466 6.363.405 343.061II REVENUES OVER (UNDER) EXPENDITURES (962,476) (201,843) '760,633 OTHER FINANCING SOURCES (USES) II Operating transfers in 1,125,913 1,125,913 Operating transfers out (454,056) (448,676) 5.380 TOTAL OTHER FINANCING SOURCES (USES) 671.857 677.237 5.380II REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (290.619) 475,394 $ 766.013II Fund balances at beginning of year 959.603 FUND BALANCE AT END OF YEAR S1,434.997 1 I 1 -28 II - I r SPECIAL REVENUE FUNDS DEBT SERVICE FUND VARIANCE- VARIANCE- FAVORABLE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE) $1,224,307 $1,271,301 $46,994 $ 1 ,138 $ 4,910 $ 3,772 17,901 24,175 6,274 59.949 73.476 13.527 61,087 78,386 17,299 1,242,208 1,295,476 53,268 I/ 53 ,588 53,390 198 7,880 7,399 481 763,192 763,192 - 537.653 538.736 1.083) 61.468 60.789 679 1,300.845 1.301.928 1.083) (381) 17,597 17,978 58,637 (6,452) 52,185 I I $ (381) 17,597 $17.978 $ 58.637) (6,452) $52.185 53.976 57.308 ' $71.573 $ 50,856 See notes to financial statements. ' -29- I I I I 1 I 1 I I I I I I I I I I I (This page intentionally left blank.) -30- 1 CITY OF FRIENDSWOOD, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL- CAPITAL PROJECTS FUND ' Year ended September 30, 1991 CAPITAL PROJECTS FUND VARIANCE- FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes Sanitation Fines and forfeitures Licenses and permits Donations Intergovernmental Interest $ 19,620 $ 30,384 $10,764 Other 19,620 30,384 10,764 EXPENDITURES Current General government ' Public safety Public works Community development Community services ' Capital outlays 1,059,882 710,255 349,627 Debt Service Principal retirement Interest and fiscal charges ' TOTAL EXPENDITURES 1.059.882 710.255 349.627 REVENUES OVER (UNDER) EXPENDITURES (1,040,262) (679,871) 360,391 OTHER FINANCING SOURCES (USES) Operating transfers in 454,056 448,676 5,380 Operating transfers out TOTAL OTHER FINANCING ' SOURCES (USES) 454.056 448.676 5.380 REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES e AND OTHER USES 586 206) (231,195) $355,011 Fund balances at beginning of year 586.205 FUND BALANCE AT END OF YEAR $ 355.010, I See notes to financial statements. -31- CITY OF FRIENDSWOOD, TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE- PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND Year ended September 30, 1991 PROPRIETARY FIDUCIARY FUND TYPE FUND TYPE NON-EXPENDABLE ENTERPRISE TRUST OPERATING REVENUES Water and sewer sales and services $ 3,315,970 11 Fees and penalties 28,945 Other 5.397 3,350,312 OPERATING EXPENSES 11 Water Operations Personal services 180,147 Supplies 34,351 Other services and charges 427,321 Maintenance 58.095 699,914 Sewer Operations Personal services 137,032 Supplies 11,761 Other services and charges 638,640 Maintenance 66.007 853,440 Operation Administration Personal services 75,659 Supplies 1,702 Other services and charges 1,490 Maintenance 539 79,390 Finance Administration Personal services 122,801 Supplies 6,974 Other services and charges 33,952 Maintenance 2.960 166,687 Finance-Data Processing Supplies 822 Maintenance 2,898 Other service and charges 7.478 11,198 Insurance Other service and charges 7.433 7,433 I -32- 11 I 11 I 1 of 2 I TOTALS (MEMORANDUM ONLY) 1991 1990 $3,315,970 $ 3,424,025 28,945 34,258 5,397 14.489 3,350,312 3,472,772 I 180,147 203,744 34,351 58,192 427,321 169,651 58.095 89,525 699,914 521,112 137,032 80,071 11,761 8,746 638,640 594,830 66.007 82.767 853,440 766,414 ' 75,659 52,720 1,702 3,343 1,490 862 539 412 79,390 57,337 122,801 116,296 6,974 6,966 33,952 91,823 2.960 2.942 166,687 218,027 822 - 2,898 - 7.478 11,198 7.433 7,433 I/ See notes to financial statements. -33- CITY OF FRIENDSWOOD, TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE- PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND Year ended September 30, 1991 1 PROPRIETARY FIDUCIARY FUND TYPE FUND TYPE NON-EXPENDABLE ENTERPRISE TRUST Engineering Personal services 37,608 Supplies 497 Other services and charges 1.642 39.747 OPERATING EXPENSES BEFORE DEPRECIATION 1,857,809 Depreciation 472.381 OPERATING EXPENSES 2.330.190 OPERATING INCOME 1,020,122 Non-operating revenues (expenses) Interest revenue 148,286 $ 1,934 Interest expense (351,201) Gain on Disposal of Fixed Assets 28.010 (174.905) 1.934 INCOME BEFORE OPERATING TRANSFERS 845,217 1,934 Operating transfers in Operating transfers out (1.125.913) (1.125,913) NET INCOME (280,696) 1,934 Retained earnings/fund balance at beginning of year 4.954,866 82.033 RETAINED EARNINGS/FUND BALANCE AT END OF YEAR $_4,674.170 $83,967 I I I I -34- 1 I I 2of2 I TOTALS (MEMORANDUM ONLY) 1991 1990 37,497 497 608 1,642 34,174 39,747 34,174 1,857,809 1 ,597,064 472.381 550.720 2.330,190 2.147.784 1,020,122 1,324,988 150,220 166,404 (351,201) (56,275) 28,010 (157.192) (172.971) (47.063) 847,151 1,277,925 (1.125,913) (348.749) (1,125,913) (348.749) (278,762) 929,176 5.036,899 4.107.723 1 $ 4.758.137 $5,036,899 I 11 I See notes to financial statements. -35- II CITY OF FRIENDSWOOD, TEXAS II COMBINED STATEMENT OF CASH FLOWS- PROPRIETARY FUND TYPE II AND NON-EXPENDABLE TRUST FUND Year ended September 30, 1991 II FIDUCIARY PROPRIETARY FUND TYPE II FUND TYPE NON-EXPENDABLE ENTERPRISE TRUST CASH FLOWS FROM OPERATING ACTIVITIES II Operating income $ 1,020,122 $ - Adjustment to reconcile net income to net I cash provided by operating activities Amortization 2,283 Depreciation 472,381 II Disposal of fixed assets 28,010 1,522,796 Changes in operating assets and liabilities II Increase in prepaid expenses (6,003) Decrease in customer deposits 31,745 (Decrease) Increase in accounts payable (54,988) II Increase in accounts receivable (93,306) (2) (Decrease) Increase in accrued interest payable (1,281) II (Increase) Decrease in due from other funds CASH FLOWS PROVIDED FROM OPERATING ACTIVITIES 1,398,963 (2) 1 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfers-out to other funds IIOperating transfers-in from other funds (1.125.913) CASH FLOWS USED BY NONCAPITAL FINANCING ACTIVITIES (1,125,913) - I 11 I II 1 See notes to financial statements. -36- II I I l of 2 I TOTALS (MEMORANDUM ONLY) 1991 1990 $ 1,020,122 $ 1,324,988 2,283 2,284 472,381 550,720 28.010 (157.192) 1,522,796 1,720,800 I/ (6,003) (4,564) 31,745 (2,545) (54,988) 150,511 (93,308) (90,945) 11 (1,281) (662) 637 1,398,961 1,773,232 M (1.125.913) (348.749) (1,125,913) (348,749) i I 1 See notes to financial statements. -37- II CITY OF FRIENDSWOOD, TEXAS II COMBINED STATEMENT OF CASH FLOWS- PROPRIETARY FUND TYPE II AND NON-EXPENDABLE TRUST FUND Year ended September 30, 1991 11 FIDUCIARY PROPRIETARY FUND TYPE 11 FUND TYPE NON-EXPENDABLE ENTERPRISE TRUST CASH FLOWS FROM CAPITAL AND RELATED FINANCING II ACTIVITIES Contributed capital transferred to II General Fund Contributed capital from customers 358,208 Acquisition and construction of capital assets, including capitalized construction interest (854,476) 11 Retirements and reclassification of capital assets 311,117 Revenue bond payments (130,000) Interest paid (351,201) 11 Certificate of obligation payments (90.000) CASH FLOWS PROVIDED (USED) FROM CAPITAL AND RELATED FINANCING ACTIVITIES (756,352) 11 CASH FLOWS FROM INVESTING ACTIVITIES Interest earned on investments 148.286 1,934 II CASH FLOWS FROM INVESTING ACTIVITIES 148,286 1,934 (DECREASE) INCREASE IN CASH (335,016) 1,932 II Cash balance at beginning of year 2.358.871 24,833 CASH BALANCE AT END OF YEAR $ 2,023 855 $ 26,765 1 Unrestricted cash $ 1,765,104 $ 26,765 Restricted cash 258.751 - I TOTAL CASH $ 2,023,855 $ 26,765 I I I I -38- 11 I 11 I 2of2 I TOTALS (MEMORANDUM ONLY) 1991 1990 358,208 (1,465,693) 112,474 (854,476) (6,618,058) 311,117 7,073,012 (130,000) (130,000) (351,201) (56,275) (90,000) - (756,352) (1,084,540) 150,220 166,404 150,220 166,404 (333,084) 506,347 2,383.704 1,877,357 $2,050,620 $ 2,383,704 I I I i 1 See notes to financial statement. -39- CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS 1 September 30, 1991 1 1. ORGANIZATION The City of Friendswood, Texas was incorporated on October 15, 1960. The charter provided I for a Mayor-Council form of city government. It was amended on October 16, 1971 to provide for a City Council-City Manager form of city government. The Mayor and six Councilmembers are elected from the City at large to serve two-year 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 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, I water and sewer, sanitation, planning and zoning, building inspection, code enforcement and general administrative services. I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. REPORTING ENTITY In defining the reporting entity the City has considered the following criteria: (1) oversight responsibility which includes (a) financial interdependence, (b) selection I of governing authority, (c) designation of management, (d) ability to significantly influence operations, and (e) accountability for financial matters, (2) scope of public service and (3) special financing relationships. The reporting entity is composed of the operational units (General, Special Revenue, Debt Service,Capital Projects,Non-expendable Trust and Enterprise Funds)of the City. The governmental units listed below were considered but excluded,because they did not materially meet the criteria listed above. The governmental units include Friendswood Independent School District, Clear Creek Independent School District,Galveston County,Harris County and Clear Creek Drainage District and have been omitted from the reporting entity. Of the component units considered for inclusion in the importing entity, only Friendswood Volunteer Fire Department had a positive response to criteria 1(a)and 1(d) above. No other positive responses were found to the remaining criteria for Friendswood Volunteer Fire Department. In the opinion of the City's management, the degree of oversight of the Friendswood Volunteer Fire Department is immaterial and because they do not meet the scope of public service or special financing relationship criteria,they are not considered a component unit of the City. -40- 1 I I CITY OF FRIENDSWOOD, TEXAS 1 NOTES TO FINANCIAL STATEMENTS- 2 September 30, 1991 I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) IB. FUND ACCOUNTING I The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, I liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The City uses six fund types and two account groups described below: 1 GOVERNMENTAL FUND TYPES I Governmental funds are those through which most governmental functions of the City are financed. The City's expendable financial resources (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net Iincome determination. The following are the City's governmental fund types: General Fund IThe General Fund is used to account for all financial transactions which are not accounted for in another fund. The primary sources of revenue of the General Fund are I property taxes, sales and use taxes, franchise taxes, licenses and permits, and fines and forfeitures. Expenditures are for general government, public safety, public works, community development and community services. ISpecial Revenue Funds The Special Revenue Funds are used to account for proceeds of specific revenue sources I that are legally restricted to financing specified activities. Capital improvements are charged to expenditures in the accounts of this fund and capitalized in the General Fixed Assets Account Group. IDebt Service Fund The Debt Service Fund is used to account for the payment of interest and principal on I all general long-term debt of the City. The primary source of revenue of the Debt Service is general property taxes. I I I -41- I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 3 1 September 30, 1991 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) B. FUND ACCOUNTING(continued) Capital Projects Fund The Capital Projects Fund is used to account for the receipt and expenditures of resources used for the acquisition and construction of major capital facilities(other than those financed by the Enterprise Fund). The principal resources of the Capital Projects Fund are proceeds from the sale of bonds and certificates of obligation, federal grants, interest revenues and operating transfers from other funds. PROPRIETARY FUND TYPE Proprietary funds are used to account for the City's ongoing organizations and activities which are similar to those often found in the private sector. The measurement focus is upon determination of net income. The following is the City's proprietary fund type: Enterprise Fund (Water and Sewer) I The Enterprise Fund is used to account for operations of the water and sewer department and the construction of related facilities and for billing for and payment of its sanitation services. The fund is financed and operated in a manner similar to private business enterprises - where the intent of the City is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The acquisition,maintenance and improvement of the physical plant facilities required to provide these goods and services are financed from existing cash resources, the issuance of bonds (revenue or general obligation), federal grants and other City funds. I FIDUCIARY FUND TYPES 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 in the same manner as proprietary funds. 1 I I -42- I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS -4 September 30, 1991 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) B. FUND ACCOUNTING(continued) ACCOUNT GROUPS Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt. The following are the City's account groups: General Fixed Assets Account Group The General Fixed Assets Account Group is used to account for the City's land, buildings, improvements and equipment except those recorded in the Enterprise Fund. General Long-Term Debt Account Group This account group is used to account for the City's liability for general obligation bonds and certificates of obligation due at varying dates through the year 2004 which are payable from general property tax revenues of the City. C. BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. MEASUREMENT FOCUS Governmental fund types(General, Special Revenue,Debt Service and Capital Projects) are accounted for on a "current financial resources" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets and the reported fund balance provides an indication of available spendable or appropriable resources. Operating statements for governmental fund types report increases and decreases in available spendable resources. The Enterprise Fund, a proprietary fund type, and the Non-Expendable Trust Fund are accounted for on a "flow of economic resources" measurement focus. Accordingly, all assets and all liabilities are included on their balance sheets,and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements for the Enterprise Fund report increases and decreases in total economic net worth. 1 I -43- I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 5 September 30, 1991 I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) C. BASIS OF ACCOUNTING (continued) MODIFIED ACCRUAL BASIS OF ACCOUNTING The modified accrual basis of accounting is followed in the governmental fund types. Under this basis of accounting, revenues are recognized when they become susceptible to accrual; i.e., both measurable and available to finance expenditures of the current period. Available means then due, or past due and receivable within the current period and collected within the current period or expected to be collected soon thereafter to be used to pay liabilities of the current period. Such time thereafter shall not exceed 60 days. Expenditures are recorded when the related fund liability is incurred with the exception of principal and interest on general long-term debt. The treatment of specific revenue and expenditure items is described below: I (1) General property taxes are recorded as a receivable when levied and as revenue when they become available. Property taxes receivable have been recorded as deferred revenue at September 30, 1991. Property taxes collected within sixty days subsequent to September 30, 1991 have not been recorded as revenue as the amount is not material. (2) Sick pay is accrued and one half of any cumulative sick pay is payable to the employee upon termination. Unpaid vacation is recorded as it accrues and cannot be carried forward to the following year without City Manager approval. Amounts accrued in these financial statements represent the unused portion of vacation at September 30, 1991. Longevity begins to accrue after one year of employment and is paid each December. "Comp-time" accrues each pay period and cumulative "comp-time" is payable to the employee upon termination. Sick 111 pay, vacation, longevity and "comp-time" will be liquidated with expendable available financial resources and are accrued in the General and Enterprise Funds. As of September 30, 1991, accrued holiday, sick pay,vacation, longevity pay and "comp-time" were as follows: Fund Holiday Sick Pay Vacation Longevity "Comp-Time" Total General Fund $24,046 $249,441 $182,889 $20,056 $ 9,863 $486,295 Enterprise Fund 722 26.211 18.273 3.236 258 48.700 TOTAL $24,,768 $275,652 $201,162 23 292 $10,121 534 995 I I -44- I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 6 September 30, 1991 I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) C. BASIS OF ACCOUNTING(continued) MODIFIED ACCRUAL BASIS OF ACCOUNTING(continued) (3) Principal and interest on general long-term debt is recognized when due. (4) Supplies inventories are charged to expenditures when purchased. (5) Franchise tax, fines, licenses and permits, and sales tax are recognized when received; i.e., the time they are considered measurable. Sanitation fees are recorded when earned. (6) Investment earnings are not accrued in the governmental fund types and Non-Expendable Trust Funds since they are not material. Earnings are recorded upon maturity of investments. Investments (certificates of deposit)are stated at cost. The Enterprise Fund and Non-Expendable Trust Fund revenues and expenses are recorded on the accrual basis whereby revenues are recognized in the period in which they are earned and become measurable and expenses are recognized in the period incurred. D. BUDGETS GENERAL BUDGET POLICIES Procedures in establishing budgetary data reflected in the financial statements are as follows: i (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. I -45- CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 7 1 September 30, 1991 I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) D. BUDGETS(continued) GENERAL BUDGET POLICIES(continued) I (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) Legally adopted budgets for the General, Special Revenue, Debt Service, Capital Projects and Enterprise Funds are prepared on a basis consistent with generally accepted accounting principles (GAAP), at the departmental level, the legal level of budgetary control. (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. I The City of Friendswood has complied with all budget requirements for the year ended September 30, 1991. i 1 -46- I CITY OF FRIENDSWOOD TEXAS NOTES TO FINANCIAL STATEMENTS- 8 September 30, 1991 I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) E. FIXED ASSETS Fixed assets are stated at cost or, if the cost is not determinable, at estimated historical cost. Donated fixed assets are recorded at their estimated fair value on the date received. Costs incurred for the purchase or construction of general fixed assets are recorded as capital outlay expenditures in the General, Special Revenue and Capital Projects Funds. All such costs are capitalized in the General Fixed Assets Account Group. Amounts expended for property, plant and equipment in the Enterprise Fund are capitalized in the fixed asset accounts within that fund. Public domain fixed assets such as bridges, roads, drainage systems, etc., are capitalized along with other general fixed assets. Depreciation of all exhaustible fixed assets used by the Enterprise Fund is charged as an expense against its operations. Allowance for depreciation is reported in the Enterprise Fund balance sheet. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Assets Lives Equipment 5-10 years Water and Sewer System 40-50 years No depreciation is provided for the general fixed assets of the City. F. DEBT SERVICE The ad valorem tax rate is allocated each year between the General Fund and the Debt Service Fund. The full amount estimated to be required for debt service on general obligation debt is provided by the debt service tax together with interest earned in the Debt Service Fund. Enterprise Fund long-term debt requirements are provided from net revenues of the fund. G. GENERAL PROPERTY TAXES All taxes due the City on real or personal property are payable at the Office of the City Assessor-Collector and may be paid at any time after the tax rolls for the year have been completed and approved, which is no later than October 1. Taxes are levied on October I 1 and are due by February 1, and all taxes not paid prior to this date are deemed delinquent and are subject to penalty and interest. All property located within the City limits on the first day of January of each year is charged with a special lien in favor of the City from such date for taxes due thereon. r -47- I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS-9 I September 30, 1991 I 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued) H. "MEMORANDUM ONLY" CAPTIONS The "Memorandum Only" captions on the total columns of the combined statements indicate that totals are presented only for overview informational purposes. Data in these columns do not present financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles. I. STATEMENT OF CASH FLOWS For the purposes of the Statement of Cash Flows, the Enterprise and the Non- Expendable Trust funds consider all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents. J. ALLOWANCES 1 Allowance for doubtful accounts has been recorded at September 30, 1991 as follows: Fund Type of Account Amount Enterprise Fund Water and Sewer billings $10,000 General Fund Sanitation billings 2,000 K. ENCUMBRANCES Encumbrances represent the estimated amount of expenditures ultimately to result when unperformed contracts(in progress at year-end)are completed. Such encumbrances are reported as reservations of fund balances and do not constitute expenditures or liabilities. I 3. DEPOSITS AND INVESTMENTS At September 30, 1991, the carrying amount of the City's deposits (including TexPool) was $4,365,391 and the bank balance was $4,665,972. Of the bank balance, $200,000 was covered by federal depository insurance and $8,673,999 was covered by collateral held at the Federal Reserve Bank of Dallas, Dallas, Texas, the City's safekeeping bank agent, and the State of ■ Texas TexPool in the City's name. The City has a three-party safekeeping agreement between the City, Texas Commerce Bank - Houston and Federal Reserve Bank - Dallas. In addition, the City has an investment agreement with the State of Texas TexPool in accordance with state statute. The City does not carry any bank balance over and above the insured and secured amounts. For fiscal year 1991, the City invested only in State of Texas TexPool. TexPool is duly chartered and administered by the State Treasurer's office and the portfolio normally consist of U.S.T. Bills, T-notes,collateralized certificates of deposits and repurchase agreements. The City records all interest revenue earned from investment activities in the respective funds. -48- 1 CITY OF FRIENDSWOOD TEXAS NOTES TO FINANCIAL STATEMENTS- 10 September 30, 1991 1 3. DEPOSITS AND INVESTMENTS(continued) State law authorizes the City to invest in: (a) obligations of the United States or its agencies or instrumentalities; (b) direct obligations of the State of Texas or its agencies; (c) other obligations, the principal and interest on which are unconditionally guaranteed or ' insured by the State of Texas or the United States; (d) obligations of state,agencies,counties,cities and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (e) certificates of deposit issued by state and national banks domiciled in Texas which are: (1) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or (2) secured by obligations of paragraphs(a)to(d)above and that have a market value of not less than the principal amount of the certificates; and (f) fully collateralized by direct repurchase agreements. 4. FIXED ASSETS A summary of changes in general fixed assets for the year ended September 30, 1991 follows: Balance at Additions Retirements Balance at Sept. 30, and and Sept. 30, 1990 Reclassification Reclassification 1991 Land $ 1,408,057 $ 5,000 $ 1,413,057 ' Buildings 2,344,484 89,365 2,433,849 Improvements 11,336,893 670,987 12,007,880 Equipment 2,253,064 540,039 $ 57,143 2,735,960 Construction in ' progress 49.373 696.907 742.620 3.660 TOTAL $17.391,871 $2.002.298 1 799,763 $18,594,406 -49- 1 CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 11 September 30, 1991 1 4. FIXED ASSETS(continued) A summary of changes in Enterprise Fund fixed assets for the year ended September 30, 1991 follows: Balance at Retirements Balance at Sept. 30, and Sept. 30, 1990 Additions Reclassification 1991 Land $ 218,462 $ 218,462 Plant and equipment 9,187,246 $ 46,804 9,234,050 Plant and equipment- Blackhawk 9,749,543 9,749,543 111 Water and sewer lines 7,039,364 306,258 7,345,622 Construction in progress 160.079 501.414 $ 311.117 350.376111 26,354,694 854,476 311,117 26,898,053 Less accumulated 1 depreciation 5,199.085 472.381 5.671.466 TOTAL $21.155.609 $382 095 $ 311,117 $21 226.587 5. COMMITMENTS A. On October 1, 1981, the City entered into a contract with the Friendswood Volunteer 1 Fire Department, Inc. The Department shall furnish all fire suppression, rescue and emergency medical services, utilizing apparatus and equipment owned by the City to all persons and property located within the corporate limits of the City, or to persons and property located outside the City when approved by Council. The City agrees to (1) provide the fire fighting equipment and facilities for the use by the Department in fighting fire and performing emergency medical services, (2) to provide funds for the capital equipment,operation and maintenance of the Department in accordance with the annual budget as approved by Council, (3)to provide dispatch services and (4)employ paid personnel consisting of one full-time fire fighter, a part-time clerk and fund two fire fighters, one paramedic and emergency medical technician positions through a pool of part-time employees for and on behalf of the Department. B. On February 22, 1985, the City entered into an agreement with Bay Area Land Company, Ltd.(Partnership)whereby Bay Area Land Company paid the City$1,200,000 in tap revenue fees to serve property developed by Bay Area Land Company. The $1,200,000 payment is to be repaid by the City from connection fees that are to be levied by the City for areas within the property during the term of the utility allocations. -50- ' I I CITY OF FRIENDSWOOD, TEXAS INOTES TO FINANCIAL STATEMENTS - 12 I September 30, 1991 I5. COMMITMENTS (continued) C. The City entered into a contract with Gulf Coast Waste Disposal Authority on December 12, I 1974 to manage the Blackhawk Regional Waste Treatment Plant. The City pays its pro rata share of the plant's operating expenses and a management fee as set by the Blackhawk Advisory Committee. The City paid$540,686 to the Authority for operation and management services for the year ended September 30, 1991. ID. The City renewed a contract with Best Waste Systems, Inc. on November 1, 1987 for the collection of garbage,trash and other refuse within the corporate limits of the City twice a week. I The contract expires on October 31, 1993 with an option of renewal for an additional five years. The residential collection fee is set at$7.63 plus$1.00 Recycle Fee per month. Small commercial fees are $32.89 per month and the fee varies for commercial container pick-up as to the size of the container. I E. The City entered into a cost sharing water project with the City of Houston on July 14, 1987 for the Southeast water treatment plant. The City pays its percentage share of production operating I and maintenance expense monthly as invoiced. For the year ended September 30, 1991 the City paid $316,512 for its share of production operating and maintenance costs and accrued $9,913 for sludge removal. IF. The City had the following construction commitments at September 30, 1991: Amount I Project Paid to Contract Percent Sept. 30, Project Contractor Description Amount Complete 1991 I FM 2351 Wayne Smith New project $ 2,000 100% $ 2,000 water line & Associates required by across State due to Clear Creek widening of I road. Texas Depart- 57,662 0% 57,662 ment of Trans- ' portation Harris County Holcombe Material and 61% 10,108 water line Brothers, service to I Sand, Inc. , move water line San Jacinto due to widening Road, Boring, of FM 2351 0 & R IUtilities Fire hydrant In-house Install 18 50% 10,031 improve- project new fire I ments hydrants throughout the City. I -51- II I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 13 II September 30, 1991 II 5. COM IITMENTS(continued) 11 Amount Paid to Project Contract Percent Sept. 30, Project Contractor Description Amount Complete 1991 11 Sun Meadow Bay Concrete Materials 3% 2,160 Diversion- Products ary Outfall II Channel Lake Friends- No Contract Appraisal Fee 1,500 II wood Park 40 + acre sand pit and adjacent land to develop into a park. II FM 528 New project 3% 14,508 water line required by relocation state due to from Sunset widening of II to Fire road Station ##2 Sewer line In-house Replace 8" 310 II Dawn and sewer line West in easement Heritage between Dawn and West il Heritage • Sewer line David Relocate sewer 274,754 80% 228,209 II FM 2351 Wight line required from FM 518 Construction by State due to to Clear Co. widening of the Creek road. 11 Central Wayne Preliminary 120,136 23% 27.547 service Smith & phase of sewer area Assoc. improvements. II sewer im- provements $354.035, II 1 1 -52- I Il CITY OF FRIENDSWOOD, TEXAS 11 NOTES TO FINANCIALSTATEMENTS. 14 September 30, 1991 11 6. LONG-TERM DEBT IILong-term debt at September 30, 1991 is comprised of the following: /I Principal Balance Current Description Sept. 30. 1991 Portion I General Obligation Bonds Refunding Bonds, Series 1986 $ 7,365,778 $ 790,000 II Certificates of Obligation Certificates dated December 1, 1988 due in installments of $35,000 to $45,000 II payable on March 1 of each year with interest at 8.375% payable each March 1 and September 1, until 1994. 130.000 40.000 I TOTAL 7,495,778 830,000 Revenue Bonds I Waterworks and Sanitary Sewer System Revenue Bonds, Series 1969 due in installments of $30,000 to $50,000 through March 1, 1999, interest at 6.125 percent, 330,000 35,000 II Waterworks and Sewer System Revenue Bonds, Series 1979 due in installments of $5,000 to $100,000 through March 1, II 1996, interest at 5.50 to 6.50 percent. 405,000 100,000 Certificates of Obligation 11 Certificates dated December 1, 1988 due in installments of $100,000 to $560,000 pay- able on March 1 of each year with interest at 6.9% to 8.375% payable each March 1 II and September 1, until 2004. 4.110.000 TOTAL 4.845.000 100.000 235,000 IITOTAL LONG-TERM DEBT $12,340,778. 1.065.000 11 I/ V -53- I CITY OF FRIENDSWOOD, TEXAS 1 NOTES TO FINANCIAL STATEMENTS- 15 1 September 30, 1991 I 6. LONG-TERM DEBT(continued) The bond and certificate of obligation requirements of the City (general obligation and revenue) by maturity date are as follows: Year Ending Total 111 Sept. 30 Principal Interest Total 1992 $ 1,065,000 $ 814,627 $ 1,879,627 1993 1,130,000 740,315 1,870,315 1994 1,200,000 659,312 1,859,312 1995 1,140,000 576,613 1,716,613 1996 1,240,000 490,304 1,730,304 1997 1,320,000 395,266 1,715,266 1998 1,150,000 304,671 1,454,671 1999 1,220,000 218,634 1,438,634 2000 725,834 718,498 1,444,332 2001 505,898 242,614 748,512 2002 512,209 157,634 669,843 2003 549,993 123,238 673,231 2004 581.844 82.756 664.600 TOTAL LONG- TERN DEBT $12 340.778 $5.524,482 17.865.260 I I I I I I I I -54- I I I CITY OF FRIENDSWOOD, TEXAS 11 NOTES TO FINANCIAL STATEMENTS- 16 September 30, 1991 I 6. LONG-TERM DEBT(continued) iBond Refinancing I In prior years, the City defeased certain outstanding general obligation and other bonds by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,the trust accounts and the defeased bonds are not included in the City's financial statements. At September 30, 1991, the following Ioutstanding bonds are considered defeased: Outstanding 1 Series Principal Waterworks and Sewer System Unlimited Tax Bonds, Series 1962 $ 150,000 Waterworks and Sewer System Unlimited Tax Bonds, Series 1963 10,000 General Obligation Refunding Bonds, Series 1969 34,000 Drainage Improvement Bonds, Series 1973 60,000 General Obligation Bonds, Series 1974 510,000 Street Improvement Bonds, Series 1977 940,000 General Obligation Bonds, Series 1979 160,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1964 275,000 Waterworks and Sewer System Combination Tax and Revenue I Refunding Bonds, Series 1972 660,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967-A 375,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, I Series 1972 400,000 Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1974 550,000 WCID #108, Waterworks and Sewer System Combination Tax and I Revenue Bonds, Series 1972 370,000 WCID #108, Waterworks and Sewer System Unlimited Tax and Revenue Bonds, Series 1981 135,000 I $4,629,000 A number of limitations and restrictions are contained in the various bond ordinances. The City has complied with all significant limitations and restrictions. I 1 I I I -55- CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 17 September 30, 1991 I 6. LONG-TERM DEBT(continued) Changes in bond, certificate of obligation and capital lease amounts of the City (general obligation and revenue) for the year ended September 30, 1991 were as follows: Balance at Balance at Sept. 30, Sept. 30, 1990 Retirements 1991 General Obligation 1 Bonds $ 8,080,778 $715,000 $ 7,365,778 Certificates of Obligation 4,365,000 125,000 4,240,000 Capital Leases 13,192 13,192 - Revenue Bonds 865.000 130.000 735.000 1 $13,323,970 $983,192 $12 L340 i*778 7. PENSION PLAN Plan Description 1 The City provides pension benefits for all of its full time employees through a nontraditional, 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 the 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 nontraditional 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 date the plan began,the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent (100%, 150%,or 200%)of the employee's accumulated contributions. In addition,the City can grant as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the 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 City matching percent had always been in existence and if the employee's 11 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. -56- 1 I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 18 September 30, 1991 I 7. PENSION PLAN (continued) Plan Description (continued) Members can retire at ages 60 and above with 10 or more years of service or with 25 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 10 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 percent,and the City matching percent is currently 150 percent,both as adopted by the governing body of the City. Under the state law governing TMRS, the City contribution rate is determined annually by an actuary. Part of the City contribution rate(the normal cost)is to fund the currently accruing monetary credits, with the other part(the prior service contribution rate)calculated as the level percent of payroll needed to amortize the unfunded actuarial liability over the remainder of the plan's 25-year amortization period. When the City periodically adopts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. 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. The City's total payroll in fiscal year 1991 was $3,277,617, and the City's contributions were based on a covered payroll of$2,955,563. Both the City and the covered employees made the required contributions, amounting to $171,244 (3.49% of covered payroll for the months in calendar year 1990 and 6.67% for the months in calendar year 1991) for the City and $169,192(6%)for the employees. The City's contribution consisted of$132,405 for normal cost and $38,839 for amortization of the unfunded acturial accrued liability. The normal cost contribution rates for 1990 and 1991 were 2.77% and 5.13% and the rates to amortize the unfunded acturial accrued liability 1990 and 1991 were .72% and 1.54%. The City adopted changes in the plan since the previous actuarial valuation, which had the effect of increasing the City's contribution rate for 1991 by 3.18% 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 nontraditional 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 1 -57- CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 19 1 September 30, 1991 I 7. PENSION PLAN (continued) Funding Status and Progress (continued) 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 I 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, 1990. 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 106.2% of book value as of December 31, 1990. Pension Benefit Obligation I Annuitants currently receiving benefits $ 90,655 Terminated employees 358,214 Current employees Accumulated employee contributions including allocated invested earnings 1,121,959 Employer-financed vested 1,118,005 Employer-financed nonvested 290.113 TOTAL 2,978,946 Net assets available for benefits, at book value 2.223.461 UNFUNDED PENSION BENEFIT OBLIGATION $ 755,485 1 The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The actuarial 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 $417,676. I -58- 1 CITY OF FRIENDSWOOD, TEXAS INOTES TO FINANCIAL STATEMENTS- 20 September 30, 1991 I I Trend Information NET ASSETS PENSION AVAILABLE BENEFIT PERCENTAGE YEAR FOR BENEFITS OBLIGATION FUNDED I1987 $1,265,501 $1,632,280 77.53 X 1988 1,582,085 1,878,557 84.22 1989 1,866,216 2,204,025 84.67 I1990 2,223,461 2,978,946 74.64 UNFUNDED UNFUNDED PENSION PENSION ANNUAL BENEFIT OBLIGATION I BENEFIT COVERED PAYROLL AS A PERCENTAGE YEAR OBLIGATION OF COVERED PAYROLL 1987 $366,779 $2,516,687 14.57 X I 1988 296,472 2,615,976 11.33 1989 337,809 2,617,976 12.90 1990 755,485 2,955,563 25.56 I Ten-year historical trend information presenting the TMRS progress in accumulating sufficient assets to pay benefits when due is presented in the TMRS December 31, 1990 Comprehensive Annual Financial Report. I 8. INTERFUND TRANSACTION Operating transfers during the year ended September 30, 1991 were as follows: IAmount Transferred In (Out) I General Fund Capital Projects Fund $ (448,676) Enterprise Fund 1.125.913 677,237 I Capital Projects Fund General Fund 448,676 Enterprise Fund I General Fund (1,125,913) NET DIFFfiRENCE $ -0- 9. A. BLACKHAWK REGIONAL WASTE TREATMENT PLANT IThe City has entered into an arrangement with the City of Houston, Harris County MUD #55, and CDC, Inc. for operating and maintaining a joint waste treatment plant known as I Blackhawk Regional Waste Treatment Plant. All participants share in the expenses of operation and maintenance based on their respective percentages for use and fixed costs. The percentages of ownership based on fund balances at September 30, 1991 are as follows: I City of Friendswood 52.71% City of Houston 15.94 11 Harris County MUD #55 20.28 CDC, Inc. 11.07 100.00% I -59- I CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 21 September 30, 1991 9. A. BLACKHAWK REGIONAL WASTE TREATMENT PLANT(continued) An annual budget of 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(3 appointed by the governor, 3 appointed by the commissioners court and 3 appointed by the participants). As of September 30, 1991 the following audited financial information was available from the operator: Total assets $229,426, Total liabilities $229.426 Equity Total revenues $824,859 Total expenses 824,859 Net (Loss) 0- 1 B. 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(3.75%). The City's pro rata share of the actual pumping construction costs is 1.33 percent (1.33%). The City began receiving water from the plant on October 15, 1990. The City is billed on a monthly basis for the actual gallons 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. I -60- I I CITY OF FRIENDSWOOD, TEXAS INOTES TO FINANCIAL STATEMENTS- 22 September 30, 1991 I I10. SEGMENT INFORMATION The Enterprise Fund provides two services financed by user charges (water and sewer). Segment information for the year ended September 30, 1991 follows (all non-direct revenues Iand expenses are treated as equally shared between water and sewer system operations: Water Sever Total I Operating revenue $2,298,118 $1,052,194 $ 3,350,312 Operating expense 852,142 1,005.667 1.857.809 Operating income before I depreciation 1,445,976 46,527 1,492,503 Depreciation expense 236,191 236.190 472.381 I Net operating income (loss) $1,209,785 $ 189663) $ 1,020.122 Non-operating income I (loss) $ (87,453) $ (87.452) $ (174,905) Property, plant and equipment $ * $ * $26,898,053 Less allowance for II depreciation * * 5,671,466 $ * $21,226,587 IOther segment information is shown below:Current capital contributions $362,307 $ - $ 362,307 Property, plant and equipment U additions * * 353,062 Net working capital 978,816 978,815 1,957,631 Total assets * * 23,936,942 Bonds and certificates of I obligation * * 4,595,000 Total equity * * 18,639,039 * Not determinable I11. CONTINGENCIES I The City was involved in a pending lawsuit at September 30, 1991. A summary of the lawsuit follows: In Cause No. 90CV790, Richie James Garren v.City of Friendswood, et al filed in the District I Court of Galveston County, Texas, 212th Judicial District, the plaintiff has filed a personal injury suit under the Texas Tort Claims Act resulting from an automobile accident involving a driver of a City dump truck. The City's general liability insurance carrier has assumed the Idefense of said case and an evaluation of $60,000 as to this claim is appropriate. I -61- CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS- 23 September 30, 1991 ' 13. IMPACT FEES(continued) The following is a summary of the Impact Fees that apply on a City Wide basis and for each of the designated service areas. The fees represent the charge for a single equivalent service unit as defined in the Capital Improvement Plan. City Wide Impact Fees Surface Water Facilities Surface water capacity $ 531 Transmission/pumping/storage 157 System wide improvements 23 1 711 Wastewater treatment facilities 122 Impact fee/CIP study 7 TOTAL CITY WIDE IMPACT FEE 840 Water Distribution Impact Fees ' Melody Lane Water System $ 854 Bay Area Boulevard Water System $ 294 Central Service Area Water System $ 358 Wastewater Collection Impact Fees Melody Lane wastewater system $ 450 Central Service Wastewater System: Segment A $ 830 Segment B $ 618 ' Segment C $ 397 Segment D $ 234 Segment E $ 186 Mills, Murphy, Briarmeadow Avenue $2,532 The impact fees are deposited into a separate,interest bearing bank account in compliance with the referenced legislation and transferred to the enterprise 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. I 1 ' -62(A)- I a CITY OF FRIENDSWOOD, TEXAS NOTES TO FINANCIAL STATEMENTS -24 1 September 30, 1991 I 13. IMPACT FEES(continued) ' 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 I for Wastewater Treatment Facilities and Impact Fee\CIP 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 the designated service areas. A summary of changes I in equity for each service area for the year ended September 30, 1991 follows: Central Central Surface Service Service Other Surface Water Area: Area: Water and Water Facilities Water Wastewater Wastewater Debt Improvements Improvements Improvements Improvements Service Total Impact fees $ 145 $12,888 $73,222 $ 41,778 $ 234,274 $362,307 Interest earned 716 249 3.573 5,787 20.676 31,001 Total Impact FeesII and Interest Earned 861 13,137 76,795 47,565 254,950 393,308 Reimbursements for IIsystem wide improvements 8,781 8,781 FM 528 distribution IIand collection line improvements 66,586 66,586 Engineering 27,119 27,119 Financing costs 182 182 Debt service 360.986 360.986 II Total Improvements and Debt Service 8,781 -0- 27,301 66,586 360,986 463,654 11 Total Impact Fees II and Interest Earned Over Improvements and Debt Service II7,920) 13,137 49,494 (19,021) (106,036) (70,346) Beginning equity balance 8,153 -0- 18.035 48.992 243.854 _319.034 II ENDING EQUITY BALANCE 233 $13.137 $67.529, S 29.971 S137.818 $248.688, II II -62(B)- II I I CITY OF FRIENDSWOOD, TEXAS INOTES TO FINANCIAL STATEMENTS- 25 September 30, 1991 I14. RESTATEMENT Certain account balances for the year ended September 30, 1990 fiscal year report have been I restated, including (1) receipts from United States Marshal's office reallocated from General Fund to Special Revenue Fund and (2) fines and forfeitures received but not recorded as revenue in the prior year. The effect of such restatements are as follows: IAs Reported As Restated GENERAL FUND I Assets Cash - including certificates of deposit $1,596,828 $1,585,349 Liabilities I Accounts payable 194,601 193,740 Deferred revenue 287,197 287,335 Fund Balances I Unreserved Undesignated 461,976 451,220 IPOLICE INVESTIGATION FUND Assets Cash - restricted - 11,479 IFund Balances Unreserved - 11,479 I I I I I I I -62(C)- 1 I I I I I I I COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES I I I I I I I I -63- I 1 1 1 1 1 1 i 1 1 1 1 i 1 1 1 1 1 (This page intentionally left blank.) -64- I 1 I I I I I I GENERAL FUND IThe General Fund accounts for the resources used to finance the fundamental operations of the City. It is the basic fund of the City I and covers all activities for which a separate fund has not been established. I I I I I I -6 5- 1 II CITY OF FRIENDSWOOD TEXAS I GENERAL FUND EXHIBIT A 1 COMPARATIVE BALANCE SHEETS IISeptember 30, 1991 and 1990 II 1991 1990 ASSETS 1 Cash - including certificates of deposit $2,062,105 $1,585,349 Receivables - net, where applicable of II allowances for doubtful accounts Property taxes 247,434 271,665 Accounts 100,108 51,865 Interest 166 - IIDue from other funds - - Prepaid expenditures 118.293 53.784 I LIABILITIES AND FUND BALANCES TOTAL ASSETS $2.528.106 $1.962.663 I Accounts payable $ 226,912 $ 193,740 Compensated absences 486,295 434,179 I Accrued expenditures 116,421 87,806 Deferred revenue 263,481 287,335 II Due to other funds - - TOTAL LIABILITIES 1,093,109 1,003,060 Reserved for prepaid expenditures 118,293 53,784 IIReserved for encumbrances 316,668 54,372 I Reserved for programs 252 227 Unreserved Designated for emergency operations 600,000 400,000 Undesignated 399.784 451.220 IITOTAL FUND BALANCES 1.434.997 959.603 TOTAL LIABILITIES AND FUND BALANCES $2.528.106 $1.962.663 I II II I -67- CITY OF FRIENDSWOOD TEXAS II GENERAL FUND EXHIBIT A 2II STATEMENT OF REVENUES AND EXPENDITURES- BUDGET AND ACTUAL September 30, 1991 and 1990 II 1991 II VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUALII REVENUES Taxes11 General property $3,385,770 $3,477,872 $ 92,102 $3,506,989 Sales 665,644 739,216 73,572 689,576 Franchise 408,400 456,566 48,166 419,062 Other 800 3.509 2.709 751II 4,460,614 4,677,163 216,549 4,616,378 Sanitation 664,157 733,245 69,088 595,244 II Fines and forfeitures 193,481 166,355 (27,126) 166,982 Licenses and permits 180,882 286,421 105,539 240,294 Donations 4,298 2,951 (1,347) 3,496 II Inter-governmental 31,153 28,641 (2,512) 50,984 Interest 162,019 203,688 41,669 187,186 II Other 47.386 63.098 15.712 49.690 TOTAL REVENUE 5,743,990 6,161,562 417,572 5,910,254 II EXPENDITURES General government 1,271,058 1,085,683 185,375 1,258,050 II Public safety 2,673,009 2,425,174 247,835 2,147,250 Public works 1,418,068 1,521,841 (103,773) 1,196,889 Community development 292,355 282,101 10,254 275,218II Community services 1.051.976 1.048.606 3.370 944.848 TOTAL EXPENDITURES 6,706,466 6,363,405 343,061 5,822,255 REVENUES OVER (UNDER) II EXPENDITURES (962,476) (201,843) 760,633 87,999 OTHER FINANCING SOURCES (USES) Operating transfers in 1,125,913 1,125,913 - 351,793 II Operating transfers out (454.056) (448.676) 5.380 (287.189) TOTAL OTHER FINANCING SOURCES (USES) 671.857 677.237 5.380 64.604II REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (290.619) $ 475.394 $ 766.013 $ 152.603II -68- 1 II I! CITY OF FRIENDSWOOD, TEXAS IIGENERAL FUND EXHIBIT A-3 STATEMENT OF EXPENDITURES- BUDGET AND ACTUAL- IIBY FUNCTION 1 of 2 Year ended September 30, 1991 II 11 1991 VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL General Government Mayor and council $ 18,558 $ 18,708 $ (150) $ 17,424 City secretary 103,599 101,553 2,046 94,477 11 City manager 174,391 172,670 1,721 103,639 Finance 254,432 251,579 2,853 194,699 Data processing 272,697 201,850 70,847 114,931 Municipal courts 112,430 68,244 44,186 72,667 Administration 334,951 271.079 63.872 660.213 11 Total General Government 1,271,058 1,085,683 185,375 1,258,050 Public Safety Police 1,693,418 1,715,094 (21,676) 1,465,667 II Communications 238,615 197,331 41,284 174,325 Emergency management 12,633 9,746 2,887 32,356 Animal control 65,193 61,792 3,401 59,036 Fire 577,110 351,812 225,298 359,580 11 Fire marshal 86.040 89.399 (3.359) 56.286 Total Public Safety 2,673,009 2,425,174 247,835 2,147,250 Public Works II Administration 124,962 123,648 1,314 102,448 Streets 528,766 542,833 (14,067) 402,637 Drainage 116,828 124,650 (7,822) 98,985 Sanitation 647.512 730.710 (83.198) 592.819 11 Total Public Works 1,418,068 1,521,841 (103,773) 1,196,889 Community Development Administration 70,204 70,603 (399) 56,609 11 Planning and zoning 59,379 57,808 1,571 49,134 Engineering 46,374 39,153 7,221 86,484 Inspection 116.398 114.537 1.861 82.991 Total Community Development 292,355 282,101 10,254 275,218 II 11 11 II II -69- IN • CITY OF FRIENDSWOOD, TEXAS GENERAL FUND EXHIBIT A 3 STATEMENT OF EXPENDITURES- BUDGET AND ACTUAL- BY FUNCTION 2 of 2 U Year ended September 30, 1991 Nl 1991 OP VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL PP Community Services Library 285,045 295,344 (10,299) 343,785 Parks and recreation 333,951 325,535 8,416 233,422 Community activities 70,959 75,826 (4,867) 71,346 Swimming pool 72,705 75,012 (2,307) 61,035 OP Building operations 223,661 211,888 11,773 197,260 Health services 65.655 65.001 654 38.000 Total Community Services 1,051,976 1,048,606 3,370 944,848 PP TOTAL EXPENDITURES $6,706,466 $6,363,405 $ 343,061 $5,822,255 Total Expenditures Before Capital Outlays $6,002,114 $5,998,877 $ 3,237 $5,477,791 1111 Capital outlays 704.352 364.528 339.824 344,464 TOTAL EXPENDITURES $6,706,466 $6,363,405 $ 343,061 $5,822,255 0 Y 0 r r -70- 11 II CITY OF FRIENDSWOOD, TEXAS IIGENERAL FUND EXHIBIT A-4 STATEMENT OF EXPENDITURES- BUDGET AND ACTUAL- BY OBJECT 1 of 6 IIYear ended September 30, 1991 II 1991 VARIANCE- , FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL GENERAL GOVERNMENT II Mayor and Council Personal services $ 28 $ 28 $ $ Supplies 2,235 3,189 (954) 881 Other services and I charges 16.295 15,491 804 16,543 18,558 18,708 (150) 17,424 City Secretary Personal services 79,688 77,277 2,411 65,489 I Supplies 2,779 2,877 (98) 2,892 Other services and charges 17,415 17,630 (215) 19,748 Maintenance 3,275 3,769 (494) 1,555 Capital outlay 442 - 442 4,793 II103,599 101,553 2,046 94,477 City Manager Personal services 141,699 141,192 507 89,750 I Supplies 3,500 2,923 577 3,323 Other services and charges 11,250 9,973 1,277 10,251 Maintenance 942 1,514 (572) -315 Capital outlay 17.000 17.068 (68) 174,391 172,670 1,721 103,639 Finance II Personal services 222,746 219,311 3,435 173,217 Supplies 5,858 7,210 (1,352) 3,245 Other services and charges 25,403 24,593 -810 15,433 Maintenance 425 465 (40) 404 Capital outlay 2,400 254,432 251,579 2,853 194,699 II Data Processing Personal services 32,643 32,389 254 29,461 Supplies 11,021 10,476 545 15,720 Other services and charges 10,548 5,100 5,448 6,332 Maintenance 56,359 26,097 30,262 26,434 Capital outlay 162.126 127,788 34.338 36,984 272,697 201,850 70,847 114,931 II II II -71- 11 CITY OF FRIENDSWOOD, TEXAS II GENERAL FUND EXHIBIT A-4 II STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL- BY OBJECT 2 of 6 Year ended September 30, 1991 II 1991 II VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL11 GENERAL GOVERNMENT (continued) Municipal Courts Personal services 103,695 63,960 39,735 66,739II Supplies 4,815 1,820 2,995 3,586 Other services and charges 3,770 2,314 1,456 2,179 Maintenance 150 150 - 163II 112,430 68,244 44,186 72,667 Administration I Personal services 25 - 25 - Supplies 1,750 880 870 625 Other services and charges 333,176 268,399 64,777 659,588 IICapital outlay - 1.800 (1.800) 334.951 271.079 63.872 660.213 TOTAL GENERAL GOVERNMENT1,271,058 1,085,683 185,375 1,258,050 IIPUBLIC SAFETY Police Services Personal services 1,446,606 1,453,409 (6,803) 1,232,938 IISupplies 65,005 74,275 (9,270) 62,558 Other services and charges 65,638 63,409 2,229 38,795 Maintenance 59,366 66,482 (7,116) 63,608 IICapital outlay 56.803 57.519 (716) 67.768 1,693,418 1,715,094 (21,676) 1,465,667 Communications IIPersonal services 190,922 189,409 1,513 169,155 Supplies 2,690 2,111 579 2,122 Other services and charges 3,217 3,261 (44) 1,008 Maintenance 2,775 2,550 225 2,04011 Capital outlay 39.011 - 39.011 - 238,615 197,331 41,284 174,325 Emergency Management IIPersonal services 3,009 1,151 1,858 2,665 Supplies 2,225 1,346 879 1,697 Other services and charges 4,394 2,546 1,848 1,691II Maintenance 3,005 4,703 (1,698) 3,394 Capital outlay - - - 22.909 12,633 9,746 2,887 32,356 II -72 II - I I CITY OF FRIENDSWOOD, TEXAS IGENERAL FUND EXHIBIT A-4 STATEMENT OF EXPENDITURES- BUDGET AND ACTUAL- BY OBJECT 3 of 6 IIYear ended September 30, 1991 II 1991 VARIANCE- I FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL PUBLIC SAFETY (continued) I Animal Control Personal services 50,359 52,103 (1,744) 41,830 Supplies 7,998 5,426 2,572 8,153 Other services and I charges 3,554 2,630 924 1,077 Maintenance 2,400 883 1,517 1,437 Capital outlay 882 750 132 6.539 65,193 61,792 3,401 59,036 I Fire/EMS Personal services 130,789 124,883 5,906 95,853 Supplies 56,050 - 56,050 8,515 II Other services and charges 75,005 217,288 (142,283) 186,165 Maintenance 61,300 121 61,179 - Capital outlay 253.966 9.520 244,446 69.047 577,110 351,812 225,298 359,580 II Fire Marshall Personal services 49,630 49,837 (207) 43,791 I Supplies 4,790 4,010 780 5,146 Other services and charges 5,198 6,824 (1,626) 4,754 Maintenance 975 1,499 (524) 2,595 I Capital outlay 25.447 27,229 (1.782) - 86.040 89.399 (3.359) 56.286 TOTAL PUBLIC SAFETY 2,673,009 2,425,174 247,835 2,147,250 PUBLIC WORKS I Administration Personal services 118,837 118,694 143 98,620 Supplies 2,683 2,771 (88) 2,509 Other services and I charges 2,567 1,467 1,100 479 Maintenance 875 716 159 840 Capital outlay - - - - i 124,962 123,648 1,314 102,448 Streets Personal services 233,833 236,579 (2,746) 181,023 I Supplies 74,720 62,296 12,424 48,427 Other services and charges 130,413 148,250 (17,837) 122,048 Maintenance 52,450 56,888 (4,438) 51,139 II Capital outlay 37.350 38.820 (1.470) - 528,766 542,833 (14,067) 402,637 I -73- I CITY OF FRIENDSWOOD, TEXAS 11 GENERAL FUND EXHIBIT A-4 II STATEMENT OF EXPENDITURES- BUDGET AND ACTUAL- BY OBJECT 4 of 6 Year ended September 30, 199111 1991 11 VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL II PUBLIC WORKS (continued) Drainage Personal services 98,078 97,596 482 80,578 II Supplies 500 327 173 440 Maintenance 16,100 22,792 (6,692) 17,863 Other services and charges 250 135 115 104 II Capital outlay 1.900 3.800 (1.900) - 116,828 124,650 (7,822) 98,985 Sanitation II Supplies - 331 (331) - Other charges and services 647.512 730.379 (82.867) 592.819 647,512 730,710 (83,198) 592,819 II TOTAL PUBLIC WORKS 1,418,068 1,521,841 (103,773) 1,196,889 COMMUNITY DEVELOPMENT II Administration Personal services 68,034 68,787 (753) 55,730 Supplies 350 355 (5) 354 Other services and IIcharges 1,820 1,279 541 525 Maintenance - 182 (182) 70,204 70,603 (399) 56,609 Planning & Zoning II Personal services 56,412 56,073 339 47,282 Supplies 1,000 884 116 1,037 Other services and charges 1,667 511 1,156 500 II Maintenance 300 340 (40) 315 Capital outlay - - - - 59,379 57,808 1,571 49,134 1 Engineering Personal services 32,625 32,483 142 42,830 Supplies 2,975 3,473 (498) 1,563 II Other services and charges 9,724 2,198 7,526 36,179 Maintenance 1,050 999 51 917 Capital outlay - - - 4.995 11 46,374 39,153 7,221 86,484 I -74- 1 II II CITY OF FRIENDSWOOD, TEXAS IIGENERAL FUND EXHIBIT A-4 STATEMENT OF EXPENDITURES- BUDGET AND ACTUAL- BY OBJECT 5 of 6 II Year ended September 30, 1991 II 1991 II VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL COMMUNITY DEVELOPMENT (continued) II Inspection Personal services 104,448 101,845 2,603 75,346 Supplies 2,470 3,231 (761) 3,528 Other services and II charges 4,256 4,367 (111) 2,418 Maintenance 5.224 5,094 130 1.699 116.398 114.537 1.861 82,991 II TOTAL COMMUNITY DEVELOPMENT 292,355 282,101 10,254 275,218 COMMUNITY SERVICES II Library Personal services 225,829 229,349 (3,520) 198,620 Supplies 50,867 55,873 (5,006) 51,984 Other charges and 11 services 6,679 9,186 (2,507) 16,007 Maintenance 1,000 936 64 728 Capital outlay 670 - 670 76.446 285,045 295,344 (10,299) 343,785 IIParks and Recreation Personal services 142,900 145,188 (2,288) 109,948 Supplies 26,993 25,279 1,714 21,559 11 Other charges and services 60,032 66,444 (6,412) 47,878 Maintenance 23,780 27,953 (4,173) 20,277 Capital outlay 80.246 60.671 19.575 33.760 11 333,951 325,535 8,416 233,422 Community Activities Personal services 24,061 24,880 (819) 22,933 11 Supplies 16,828 15,311 1,517 12,142 Other charges and services 26,490 32,575 (6,085) 28,711 Maintenance 3,580 1,039 2,541 3,655 11 Capital outlay - 2.021 (2.021) 3.905 70,959 75,826 (4,867) 71,346 Swimming Pool 11 Personal services 41,899 46,131 (4,232) 40,423 Supplies 8,444 7,876 568 7,588 Other charges and services 6,320 5,530 790 5,738 II Maintenance 13,642 13,380 262 4,040 Capital outlay 2.400 2.095 305 3.246 72,705 75,012 (2,307) 61,035 II -75- U U CITY OF FRIENDSWOOD, TEXAS U GENERAL FUND EXHIBIT A-4 STATEMENT OF EXPENDITURES- BUDGET AND ACTUAL- BY OBJECT 6 of 6 11,1 Year ended September 30, 1991 OP ft 1991 VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL COMMUNITY SERVICES (continued) Building Operations IP Personal services 27,848 28,525 (677) 24,741 Supplies 8,320 5,287 3,033 11,809 Other charges and services 140,582 142,228 (1,646) 129,116 OP Maintenance 20,802 20,401 401 19,922 Capital outlay 26.109 15.447 10.662 11.672 223,661 211,888 11,773 197,260 Health Services Personal services 23,963 23,470 493 - Other Charges and Services 41.692 41.531 161 38.000 OP 65,655 65,001 654 38,000 TOTAL COMMUNITY SERVICES 1,051,976 1,048,606 3,370 944,848 TOTAL EXPENDITURES '6,706,466 $6,363,405 $ 343,061 $5,822,255 A PI L r r -76- I I I I I ISPECIAL REVENUE FUNDS I These funds are used to account for the proceeds of specific revenue sources that are legally restricted to financing specified purposes. The following describes the various types of Special Revenue Funds used by the City: IParks and Recreation Reserve Fund This fund receives donations that are restricted for the use of the parks and Irecreation programs of the City. Mowing Liens Fund IThis fund records revenues and expenditures in connection with the filing of liens on property where the owner has failed to comply with the mowing ordinance. IFire/EMS Donation Fund IThis fund receives donations that are restricted for Fire/EMS capital outlays. Police Investigation Fund IThis fund receives funds that are restricted to police investigation. Fine Arts Council Fund IThis fund accounts for the City's support of the Friendswood Fine Arts Council and its programs for the citizens of the City. 1 I I I _77_ I CITY OF FRIENDSWOOD, TEXAS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET September 30, 1991 11 POLICE PARRS AND INVESTIGATION RECREATION MOWING ASSETS I Cash - including restricted cash $11,324 $2,212 $11,936 Accounts receivables Liens 22,250 Interest receivable 1 TOTAL ASSETS $11.325 $2.212 $34.186 LIABILITIES AND FUND BALANCES I LIABILITIES Accounts payable $ 2,200 $ 146 1 Deferred revenue liens receivable 22,250 TOTAL LIABILITIES 2,200 22,396 FUND BALANCES 11Reserved for encumbrances 63 Reserved for pools 2,212 Unreserved 9.125 11.727 TOTAL FUND BALANCES 9.125 2.212 11.790 TOTAL LIABILITIES AND 11 FUND BALANCES $11,325 $2,212 $34,186 I 11 S I -78- i 1 EXHIBIT B-1 I ' FIRE/EMS TOTAL DONATIONS 1991 1990 I $48,558 $74,030 $54,166 22,250 22,221 4 5$48,562 $96,285 $76,387 I $ 117 $ 2,463 $ 190 22,250 22,221 117 24,713 22,411 63 9,000 2,212 2,052 48,445 69,297 42,924 48.445 71.572 53,976 $48,562 $96,285 $76,387 I I I -79- I CITY OF FRIENDSWOOD, TEXAS SPECIAL REVENUE FUNDS EXHIBIT B-2 11 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year ended September 30, 1991 PARKS AND POLICE FIRE/EMS TOTAL RECREATION MOWING INVESTIGATION DONATIONS 1991 1990 11 REVENUES Donations $53,644 $53,644 $51,793 Interest $ 160 $ 2,194 $ 484 2,072 4,910 4,174 Other 8.883 10.949 19.832 9.957 TOTAL REVENUES 160 11,077 11,433 55,716 78,386 65,924 EXPENDITURES I Public safety 13,787 39,603 53,390 26,435 Community development 7,400 7,400 6,505 Community services 4.200 TOTAL EXPENDITURES 7,400 13,787 39,603 60,790 37,140 II REVENUES UNDER EXPENDITURES 160 3,677 (2,354) 16,113 17,596 28,784 II OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out - 3 045) II TOTAL OTHER FINANCING SOURCES (USES) - (3.045) REVENUES AND OTHER I SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 160 3,677 (2,354) 16,113 17,596 25,739 11 Fund balances at beginning of year 2.052 8.113 11.479 32.332 53.976 28.237 FUND BALANCES AT END OF YEAR la,g2 11 790 ,$ 9,125 48 445 $71,572 $3,976 II 11 I 1 -80- t CITY OF FRIENDSWOOD, TEXAS SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-3 COMPARATIVE BALANCE SHEETS September 30, 1991 and 1990 1991 1990 ASSETS Cash - restricted - including certificate of deposit $2,212 $2,052 TOTAL ASSETS §2,212 $2,052 FUND BALANCES Reserved for pool expenditures $2.212 $2.052 TOTAL FUND BALANCES 2 212 $2,052 -81- I I CITY OF FRIENDSWOOD, TEXAS 0 SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-4 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year ended September 30, 1991 111 1991 OP VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES P Interest income $ 77 $ 160 $ 83 $ 407 OP TOTAL REVENUES 77 160 83 407 EXPENDITURES OP Community services Parks and recreation - - - 4,200 REVENUES UNDER EXPENDITURES - - - (3,793) OP OTHER FINANCING USES Operating transfers out - - - (1.984) REVENUES OVER EXPENDITURES AND OTHER USES 77 160 $ 83 (5,777) Fund balances at beginning of year 2,052 7,829 FUND BALANCES AT END OF YEAR S2.212 $$2.052 P Pi P r t! -82- I CITY OF FRIENDSWOOD, TEXAS SPECIAL REVENUE FUND (MOWING) EXHIBIT B-5 COMPARATIVE BALANCE SHEETS September 30, 1991 and 1990 1991 1990 11 ASSETS Cash - including restricted cash $11,936 $ 8,303 Accounts receivable - liens 22.250 22,221 TOTAL ASSETS 34.186 $30.524 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 146 $ 190 Deferred liens receivable 22.250 22.221 TOTAL LIABILITIES 22,396 22,411 FUND BALANCES Reserved for encumbrances 63 Unreserved 11.727 8.113 TOTAL LIABILITIES AND FUND BALANCES 5W 4.186 $30.524 I 1 I M I I 11 -83- i CITY OF FRIENDSWOOD, TEXAS 111 SPECIAL REVENUE FUND (MOWING) EXHIBIT B-6 I STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year ended September 30, 1991 1 1991 VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Interest $ 265 $ 2,194 $1,929 $ 1,392 Other revenue 4.000 8.883 4.883 7.533 TOTAL REVENUES 4,265 11,077 6,812 8,925 1 EXPENDITURES Community Development Inspections Supplies 530 388 142 359 Services - other charges 7.350 7.012 339 6.146 TOTAL EXPENDITURES 7.880 7,400 481 6,505 REVENUES OVER (UNDER) EXPENDITURES $(3.615) 3,677 $7 293 2,420 Fund balance at beginning of year 8,113 5,693 FUND BALANCE AT END OF YEAR 11 790 8 113 I I I I I I -84- I r CITY OF FRIENDSWOOD, TEXAS SPECIAL REVENUE FUND (POLICE INVESTIGATION FUND) EXHIBIT B-7 COMPARATIVE BALANCE SHEETS September 30, 1991 and 1990 1991 1990 ASSETS Cash - restricted $11,324 $11,479 ACCOUNT RECEIVABLE Interest receivable 1 TOTAL ASSETS $11,325 $11.479 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 2.200 $ - TOTAL LIABILITIES 2,200 - FUND BALANCES Unreserved 9.125 11.479 TOTAL LIABILITIES AND 111 FUND BALANCES $11,325 $11.479 r I I I I I 1' _85_ I CITY OF FRIENDSWOOD, TEXAS I SPECIAL REVENUE FUND (POLICE INVESTIGATION FUND) EXHIBIT B-8 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year ended September 30, 1991 I 1991 VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES U.S. Marshal revenue $10,949 $10,949 $ - $ - Interest 586 484 (102) 1,188 Other - - - 2,424 TOTAL REVENUES 11,535 11,433 (102) 3,612 EXPENDITURES Public safety Police Supplies 3,306 3,306 - - Services and other charges 1,831 1,831 - - Maintenance - - - 1,386 Capital outlay 8.650 8.650 - 4,401 TOTAL EXPENDITURES 13.787 13.787 - 5.787 1 REVENUES OVER (UNDER) EXPENDITURES (2,252) 2 354) $ (102) (2,175) Fund balance at beginning of year 11.479 13.654 FUND BALANCE AT END OF YEAR $ 9,125 $11,479 I 1 I 1 I -86- I I CITY OF FRIENDSWOOD, TEXAS SPECIAL REVENUE FUND (FIRE/EMS DONATIONS) EXHIBIT B-9 COMPARATIVE BALANCE SHEET September 30, 1991 and 1990 1991 1990 ASSETS Cash - restricted $ 48,558 $ 32,332 ACCOUNTS RECEIVABLE Interest 4 TOTAL ASSETS $ 48,562 $ 32,332 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 117 $ - TOTAL LIABILITIES 117 - FUND BALANCES Reserve for encumbrances - 9,000 Unreserved 48.445 23.332 TOTAL LIABILITIES AND FUND BALANCES $ 48,562 $ 32.332 I I I I 1 I -87- 1 CITY OF FRIENDSWOOD, TEXAS SPECIAL REVENUE FUND (FIRE/EMS DONATIONS) EXHIBIT B-10 1 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL 111 Year ended September 30, 1991 1991 VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL REVENUES Donations $47,000 $53,644 $6,644 $51,793 Interest 210 2,072 1,862 1,187 TOTAL REVENUE 47,210 55,716 8,506 52,980 i EXPENDITURES Public Safety 11 Fire/EMS Capital outlay 39.801 39,603 198 20.648 REVENUES AND OTHER SOURCES 11 OVER (UNDER) EXPENDITURES 7 409 16,113 $8,704 32,332 Fund balance at beginning I of year 32,332 -0- FUND BALANCE AT END OF YEAR $48,445 $32,332 I I I I I I -88- i I I CITY OF FRIENDSWOOD, TEXAS ISPECIAL REVENUE FUND (FINE ARTS FUND) EXHIBIT B-11 STATEMENT OF REVENUE, EXPENDITURES AND ICHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year ended September 30, 1991 I 1991 I VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL IREVENUES Interest $ -0- $ -0- $ -0- $ -0- Other - - - - ITOTAL REVENUES - - - - IEXPENDITURES Community Services - - - - I REVENUE OVER - - (UNDER) EXPENDITURES - - OTHER FINANCIAL USES IOperating transfers out - - - (1,061) REVENUE OVER EXPENDITURES I AND OTHER USES $ _0_ - $ -0- (1,061) Fund balances at beginning of year 1.061 I FUND BALANCES AT END OF YEAR $ -0- $ _0- I I I I I I -89- I I I I I I I I IDEBT SERVICE FUND This fund is used to account for the accumulation of I resources and for the payment of principal and interest on general long-term debt of the City. I I I I I I I I -91- e CITY OF FRIENDSWOOD TEXAS DEBT SERVICE FUND EXHIBIT C-1 COMPARATIVE BALANCE SHEETS September 30, 1991 and 1990 1 1991 1990 ASSETS Cash - including certificate of deposit $ 50,852 $ 57,045 Taxes receivable 92,297 100,221 Interest receivable 4 - Other accounts receivable - 263 TOTAL ASSETS $143,153 $157.529 LIABILITIES AND FUND BALANCES LIABILITIES Deferred revenue $ 92,297 $100,221 ' FUND BALANCES Unreserved Designated for debt service 50.856 57.308 TOTAL LIABILITIES AND FUND BALANCES 143 153 $157,529 ' I 1 1 -92- I I I CITY OF FRIENDSWOOD, TEXAS IIDEBT SERVICE FUND EXHIBIT C-2 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IIIN FUND BALANCE- BUDGET AND ACTUAL Year ended September 30, 1991 II 11 1991 VARIANCE- FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL 11 REVENUES II Taxes $1,224,307 $1,271,301 $ 46,994 $1,050,144 Interest 17.901 24.175 6.274 30.968 TOTAL REVENUES 1,242,208 1,295,476 53,268 1,081,112 II EXPENDITURES Principal Retirement Tax and revenue bonds 715,000 715,000 - 670,000 II Capital leases 13,192 13,192 - 16,245 Certificate of obligation 35,000 35.000 - 35.000 763,192 763,192 - 721,245 I Interest and fiscal charges Tax bonds 514,106 514,106 - 556,550 Certificates of obligation 12,353 12,353 - 15,284 Capital leases 994 994 - 3,338 II Pearland contract 7,000 9,972 (2,972) 6,354 Paying agent fees 3,200 1.311 1 889 1.826 537,653 538,736 (1,083) 583,352 11 TOTAL EXPENDITURES 1.300,845 1.301.928 (1.083) 1.304.597 REVENUES (UNDER) EXPENDITURES $ (58,637) (6,452) $ 52,185 (223,485) 11 Fund balances at beginning of year 57.308 280.793 11 FUND BALANCES AT END OF YEAR $ 50.856 $ 578 11 11 11 -93- I ' CAPITAL PROJECTS FUND This fund is used to account for financial resources to ' be used for the acquisition and construction of major capital facilities. i ' -95- 1 CITY OF FRIENDSWOOD, TEXAS CAPITAL PROJECTS FUND EXHIBIT D-1 COMPARATIVE BALANCE SHEETS September 30, 1991 and 1990 ' 1991 1990 ASSETS Cash - including certificates of deposit $428,365 $626,437 Restricted cash - including certificates of deposit - - Accounts Receivable Interest receivable 22 TOTAL ASSETS 428 387 $626,437 LIABILITIES AND FUND BALANCES ' LIABILITIES Accounts payable $ 72,842 $ 40,232 Accrued expenses 535 - TOTAL LIABILITIES 73,377 40,232 FUND BALANCES 1 Reserved for encumbrances 191,116 231,550 Unreserved Designated for construction 163,894 354,655 TOTAL FUND BALANCES 355,010 586,205 TOTAL LIABILITIES AND FUND BALANCES $428,387 626 437 11 I -96 11 - I I CITY OF FRIENDSWOOD, TEXAS IICAPITAL PROJECTS FUND EXHIBIT D-2 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES I IN FUND BALANCE- BUDGET AND ACTUAL Year ended September 30, 1991 1 1991 I VARIANCE- FAVORABLE 1990 ACTUAL BUDGET (UNFAVORABLE) ACTUAL IIREVENUES Interest $ 19,620 $ 30,384 $ 10,764 $ 43,121 I Other - - - 171 TOTAL REVENUES 19,620 30,384 10,764 43,292 I EXPENDITURES - CAPITAL OUTLAYS Public Works Streets 684,109 570,487 113,622 10,540 Drainage 265.199 29.335 235,864 3.400 ' 949,308 599,822 349,486 13,940 Parks and Recreation Other services and charges 61,561 61,420 141 - ' 61,561 61,420 141 - Public Facilities Building improvements 49.013 49.013 - 57.646 I 49.013 49,013 - 57,646 TOTAL EXPENDITURES - CAPITAL OUTLAYS 1.059.882 710.255 349.627 71.586 I REVENUES UNDER EXPENDITURES (1,040,262) (679,871) 360,391 (28,294) II OTHER FINANCING SOURCES (USES) Operating transfers in 454,056 448,676 5,380 287,189 Certificates of obligation proceeds - - - - I REVENUES AND OTHER SOURCES UNDER EXPENDITURES $ (586,206) (231,195) 055.011 258,895 I Fund balances at beginning of year 586,205 327,310 FUND BALANCES AT IIEND OF YEAR 1 355,01O $586,205 I II -97- I I I I I I 1 I I I pg I I t I pg pg I e intentionally left blank.) {This pag -98- i I i I 1 i 1 1 1 ENTERPRISE FUND The Enterprise Fund is established to account for operations which are intended to be self-supporting through user charges. The City of Friendswood operates the water and sewer system on this basis. 1 1 1 1 1 1 -99- I CITY OF FRIENDSWOOD, TEXAS II ENTERPRISE FUND (WATER AND SEWER) I COMPARATIVE BALANCE SHEETS September 30, 1991 and 1990 II 1991 1990 I ASSETS CURRENT ASSETS 11 Cash - including certificates of deposit $ 1,570,104 $ 1,812,353 Accounts receivable - less allowance for uncollectibles 524,342 416,66811 Accrued interest 158 25,683 Prepaid expenses 11.899 5.896 TOTAL CURRENT ASSETS 2,106,503 2,260,600 II RESTRICTED ASSETS Cash - including certificates of deposit 453,751 546,518 IIBlackhawk operating fund equity 120.436 109.279 TOTAL RESTRICTED ASSETS 574,187 655,797 PROPERTY, PLANT AND EQUIPMENT - at cost II Land 218,462 218,462 Buildings, improvements and equipment 26,329,215 25,976,153 Construction in progress 350.376 160.079 26,898,053 26,354,694II Less allowance for depreciation 5.671.466 5.199.085 TOTAL PROPERTY, PLANT AND EQUIPMENT 21,226,587 21,155,609 II OTHER ASSETS Unamortized certificate of obligation costs 29,665 31,948II I I TOTAL ASSETS $23.936,942 $24.103.954 II 11 I -100 II - II 1/ IIEXHIBIT E-1 11 II1991 1990 LIABILITIES AND FUND EQUITY I LIABILITIES Current liabilities (payable from II current assets) Accounts payable $ 256,336 $ 90,860 Compensated absences 48,700 41,248 Accrued expenses 16,741 12,917 Contracts payable 22.095 26.351 II Current liabilities (payable from 343,872 171,376 restricted assets) Accrued interest 28,966 30,247 II Current portion of long-term debt 235,000 220,000 Deposits 80,065 48,320 Impact fee refunds payable - 227.484 344,031 526,051 IILong-term liabilities Certificates of obligation 4,110,000 4,200,000 Revenue bonds 735.000 865.000 11 Less current portion 4,845,000 5,065,000 235,000 220.000 4.610.000 4.845.000 TOTAL LIABILITIES 5,297,903 5,542,427 11 FUND EQUITY ' Contributed capital Municipality - 13,301,153 II Developers/customers 13.964.869 305.508 13,964,869 13,606,661 Retained earnings Reserved for revenue bond retirement 401,860 208,320 11 Reserved for construction 863,992 932,079 Unreserved 3.408.318 3.814.467 I TOTAL RETAINED EARNINGS 4,674.170 4.954.866 TOTAL FUND EQUITY 18.639.039 18.561.527 TOTAL LIABILITIES AND FUND EQUITY $23,936,942 $24.103.954 II II II II -101- I CITY OF FRIENDSWOOD, TEXAS II ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-2 II STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS- BUDGET AND ACTUAL I Year ended September 30, 1991 II 1991 VARIANCE- FAVORABLE 1990II BUDGET ACTUAL (UNFAVORABLE) ACTUAL Operating revenues Water charges $ 2,271,901 $ 2,286,785 $ 14,884 $2,409,020II Sewer charges 1,041,740 1,029,185 (12,555) 1,015,005 Fees and penalties 23,000 28,945 5,945 34,258 Other 4.994 5.397 403 14.489 3,341,635 3,350,312 8,677 3,472,772II Operating expenses before depreciation - See Exhibit E-3 2.227.807 1.857.809 369.998 1.597.064II OPERATING INCOME BEFORE DEPRECIATION 1,113,828 1,492,503 378,675 1,875,708 Depreciation expense 472.381 472.381 - 550.720 II OPERATING INCOME 641,447 1,020,122 378,675 1,324,988 Non-operating income (expense) II Interest on investments 59,754 148,286 88,532 164,388 Interest expense (356,494) (351,201) 5,293 (56,275) Gain on disposal ofII fixed assets - 28.010 28.010 (157.192) (296.740) (174.905) 121.835 (49.079) INCOME BEFORE OPERATINGII TRANSFERS 344,707 845,217 500,510 1,275,909 Operating transfers out (1.125.913) (1.125.913) - (348.749) NET INCOME (LOSS) $ (781.206) (280,696) 15.2fLag 927,160 II Retained earnings at beginning of year 4.954.866 4.027.706II RETAINED EARNINGS AT END OF YEAR _$ 4 A674,170 $41954,866 11 11 II -102- 11 II II CITY OF FRIENDSWOOD, TEXAS IIENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-3 STATEMENT OF OPERATING EXPENSES- BUDGET AND ACTUAL 11 Year ended September 30, 1991 ' 1991 VARIANCE- I FAVORABLE 1990 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Water II Personal services $ 193,234 $ 180,147 $ 13,087 $ 203,744 Supplies 43,572 34,351 9,221 58,192 Other services and charges 676,483 427,321 249,162 169,651 Maintenance 81.246 58.095 23.151 89,525 • 994,535 699,914 294,621 521,112 Sewer Personal services 158,291 137,032 21,259 80,071 Supplies 18,410 11,761 6,649 8,746 II Other services and charges 666,793 638,640 28,153 594,830 Maintenance 84.540 66,007 18.533 82.767 928,034 853,440 74,594 766,414 II Operation Administration Personal services 75,891 75,659 232 52,720 Supplies 2,300 1,702 598 3,343 Other services and charges 2,070 1,490 580 862 Maintenance 275 539 (264) 412 11 80,536 79,390 1,146 57,337 Finance Administration (Utility billing) II Personal services 123,724 122,801 923 116,296 Supplies 8,120 6,974 1,146 6,966 Other services and charges 32,882 33,952 (1,070) 91,823 Maintenance 2,250 2,960 (710) 2.942 II166,976 166,687 289 218,027 Finance Data Processing 1 Supplies 2,100 822 1,278 - Maintenance 2,500 2,898 (398) Other services and charges 1.000 7.478 (6.478) - - 5,600 11,198 (5,598)II Insurance Other services and charges 11.600 7.433 4.167 - 11,600 7,433 4,167 - 1 Engineering Personal services 34,598 37,608 (3,010) - Supplies 533 497 36 - Maintenance 835 - 835 - II Other services and charges 4.560 1.642 2.918 34.174 40,526 39,747 779 34,174 Operating expenses before IIdepreciation $2.227.807 $1,857,809 369 998 $1,597,064 II -103- CITY OF FRIENDSWOOD TEXAS ' ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-4 SCHEDULE OF REVENUE BONDS PAYABLE September 30, 1991 DATE OF OUTSTANDING INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30, DESCRIPTION RATE ISSUE ISSUE MATURITY 1991 Waterworks and Sanitary Sewer System Revenue Bonds, Series 1969 6.125% 5-1-69 $360,000 3-1-99 $330.000 330,000 Waterworks and Sanitary Sewer System Junior Lien Revenue Bonds, Series 1979 5.50 6-1-79 50,000 3-1-92 50,000 5.50 6-1-79 100,000 3-1-93 100,000 5.50 6-1-79 100,000 3-1-94 100,000 5.50 6-1-79 100,000 3-1-95 100,000 5.50 6-1-79 5,000 3-1-96 5,000 6.50 6-1-79 50,000 3-1-92 50.000 $405,000 TOTAL REVENUE BONDS PAYABLE $735.000 I I I I I -105- I CITY OF FRIENDSWOOD, TEXAS ENTERPRISE FUND (WATER AND SEWER FUND) 1 SCHEDULE OF REVENUE BONDS PAYABLE- BY MATURITY DATE September 30, 1991 1 I YEAR ENDING TOTAL SEPT. 30 PRINCIPAL INTEREST TOTAL 1992 $ 135,000 $ 38,916 $173,916 1993 135,000 31,022 166,022 1994 135,000 23,378 158,378 1995 140,000 15,581 155,581 1996 45,000 10,244 55,244 1997 45,000 7,503 52,503 1998 50,000 4,594 54,594 1999 50.000 1.531 51,531 $ 735,000 $1.32,7j2 $867,769 I I I I I I I I I -106- ' I 11 IIEXHIBIT E-5 II II REVENUE BONDS WATERWORKS AND WATERWORKS AND II SANITARY SEWER SYSTEM SANITARY SEWER SYSTEM REVENUE BONDS JUNIOR LIEN REVENUE BONDS SERIES 1969 SERIES 1979 PRINCIPAL INTEREST PRINCIPAL INTEREST II $ 35,000 $ 19,141 $100,000 $ 19,775 35,000 16,997 100,000 14,025 35,000 14,853 100,000 8,525 40,000 12,556 100,000 3,025 11 40,000 10,106 5,000 138 45,000 7,503 50,000 4,594 50.000 1.531 II330 000 $ 87,281 $405,000 C 45,488 II II II II II II II II 11 II -107- I CITY OF FRIENDSWOOD, TEXAS I ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-6 SCHEDULE OF CERTIFICATE OF OBLIGATION- BY MATURITY DATE September 30, 1991 1 YEAR ENDING TOTAL SEPT. 30 PRINCIPAL INTEREST TOTAL 1992 $ 100,000 $ 300,412 $ 400,412 1993 115,000 291,409 406,409 1994 130,000 281,150 411,150 1995 145,000 269,634 414,634 , 1996 260,000 252,675 512,675 1997 285,000 230,173 515,173 1998 305,000 208,037 513,037 1999 335,000 185,790 520,790 2000 415,000 159,332 574,332 2001 450,000 128,512 578,512 2002 485,000 94,843 579,843 2003 525,000 58,231 583,231 2004 560.000 19.600 579.600 4,110,000 $2,479.798 $6.589.798 I I I 1 I I I 1 I -108- I I I I I I I I I ITRUST FUND This fund has been established by the City to account for 1776 Park assets held by the City in a trustee Icapacity or as an agent for individuals or other funds. I I I I I I I -109- I CITY OF FRIENDSWOOD, TEXAS TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-1 COMPARATIVE BALANCE SHEETS September 30, 1991 and 1990 1 1991 1990 , ASSETS Restricted assets II Cash $26,765 $24,833 Land 57,200 57,200 , Accounts recievable Interest 2 - TOTAL ASSETS $83,967 $82,033 FUND BALANCES Reserved for endowments $67,200 $67,200 Unreserved Undesignated 16.767 14,833 TOTAL FUND BALANCES $83,967 1112,2131 I I I I I I I I -110_ 1 i CITY OF FRIENDSWOOD, TEXAS TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-2 COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND ' CHANGES IN FUND BALANCES Years ended September 30, 1991 and 1990 I 1991 1990 REVENUES Interest $ 1,934 $ 2,016 Fund balances at beginning of year 82.033 80,017 FUND BALANCES AT END OF YEAR $83,967 $82,033 I I I I 11 I I I f 1 t 1 -111- I I I I I I I I I GENERAL FIXED ASSETS ACCOUNT GROUP I This account group is established to account for the fixed assets owned by the City exclusive of those relating to the Enterprise Fund or Fiduciary Fund. Expenditure transactions to acquire general fixed I assets occur in the General Fund, Special Revenue Funds and Capital Projects Fund. I I I I 1 I I I -113- 1 CITY OF FRIENDSWOOD, TEXAS GENERAL FIXED ASSETS EXHIBIT G-1 COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS- BY SOURCE 11 September 30, 1991 and 1991 1 1991 1990 General Fixed Assets Land $ 1,413,057 $ 1,408,057 Buildings 2,433,849 2,344,484 Improvements 12,007,880 11,336,893 Equipment 2,735,960 2,253,064 Construction in progress 3.660 49.373 TOTAL GENERAL FIXED ASSETS $18.59 4 406 $17,391�871 Investment in General Fixed Assets from General obligation bonds $ 4,572,653 $ 4,572,653 Time warrants and certificates of obligation 444,500 291,112 1/ Federal, state and local obligations 3,043,872 3,035,223 Municipality 9,601,069 8,600,174 Donations 932.312 892.709 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $18,594,406 17,391,871 I I I I I I f -114- 1 I 11 CITY OF FRIENDSWOOD, TEXAS IIGENERAL FIXED ASSETS EXHIBIT G-2 SCHEDULE OF GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY IISeptember 30, 1991 IICONSTRUCTION FUNCTION AND IN II ACTIVITY LAND BUILDINGS IMPROVEMENTS EQUIPMENT PROGRESS TOTAL General Government Inspections $ 24,202 $ 24,202 II City Hall $ 453.389 $ 592.572 $ 23,619 467,266 1,536,846 453,389 592,572 23,619 491,468 1,561,048 II Public Safety Police 149,230 16,760 608,281 774,271 Fire 18,000 267,322 881,337 1,166,659 Animal Control 65,968 2,708 27,086 95,762 II Emergency Management 36.736 36.736 18,000 482,520 19,468 1,553,440 2,073,428 Public Works II Street and drainage 106,991 168,702 11,297,746 181,650 11,755,089 Sanitation 3.500 254,997 30,514 289,011 110,491 168,702 11,552,743 212,164 12,044,100 II Community Services Library 28,838 375,199 17,695 180,140 601,872 Parks and 11 recreation 802,339 134,460 391,122 280,671 1,608,592 Swimming pool 680.396 3.233 18,077 701.706 831,177 1,190,055 412,050 478,888 2,912,170 II Construction in progress $3,660 3,660 $1,413.057 $2,433,849 $12,007,880 $2,735,960 $3,660 $18,594,406 II II 11 II II 11 -115- 1 CITY OF FRIENDSWOOD, TEXAS GENERAL FIXED ASSETS EXHIBIT G-3 II SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY II Year ended September 30, 1991 II RETIREMENTS BALANCE AT AND BALANCE AT SEPT. 30. 1990 ADDITIONS RECLASSIFICATIONS SEPT. 30. 1991 General Government Inspections $ 24,202 $ 24,202 City Hall _ 1.376.786 $ 160.060 1.536.846II 1,400,988 160,060 1,561,048 Public Safety Police 657,947 129,517 $ 13,193 774,271II Fire 961,800 226,344 21,485 1,166,659 Animal control 93,054 2,708 95,762 Emergency management 36.736 36,73611 1,749,537 358,569 34,678 2,073,428 Public Works Street and drainage 11,073,665 698,424 17,000 11,755,089 11 Sanitation 289.011 289.011 11,362,676 698,424 17,000 12,044,100 Community services II Library 596,561 5,311 601,872 Parks and recreation 1,533,125 80,932 5,465 1,608,592II Swimming pool 699.611 2.095 701.706 2,829,297 88,338 5,465 2,912,170 Construction in progress 49.373 696.907 742.620 3.660 II TOTAL $17,391,871 $2,002.298 799 763 18,594.406 11 11 II II 11 -116 II - I I 1 I I I 1 I I GENERAL LONG-TERM DEBT ACCOUNT GROUP The purpose of this account group is to account for general obligation indebtedness to be retired primarily from future assessment of property taxes. I I I I I 1 I -117- I CITY OF FRIENDSWOOD, TEXAS 11 GENERAL LONG-TERM DEBT 1 STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT Year ended September 30, 1991 BALANCE AT I/ OCT. 1, 1990 Amount available in Debt Service Fund $ 57,308 Amount to be provided for retirement of long-term debt 8.201.662 TOTAL AVAILABLE AND TO BE PROVIDED $8,258.970 Classification of debt Lease obligation $ 13,192 Certificates of obligation 165,000 11 General obligation bonds 8.080.778 TOTAL GENERAL LONG-TERM DEBT $8,258,970 I I/ 11 1 I I I -118- 1 11 EXHIBIT H-1 11 11 DEBT SERVICE BALANCE AT OBLIGATIONS FUND SEPT. 30, 11 RETIRED OPERATIONS 1991 $(6,452) $ 50,856 11 763 192 6 452 7,444,922 11 $763,192 $ -0- $7,495,778 11 $ 13,192 35,000 $ 130,000 11 715.000 7,365,778 63.192 $7,495,778 I 11 11 11 11 1! 11 -119- I I CITY OF FRIENDSWOOD TEXAS IIGENERAL LONG-TERM DEBT EXHIBIT H-2 SCHEDULE OF GENERAL LONG-TERM DEBT IISeptember 30, 1991 I/ DATE OF OUTSTANDING INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30, 1 DESCRIPTION RATE ISSUE ISSUE MATURITY 1991 Certificate of Obligation 8.375 12-01-88 40,000 03-01-92 $ 40,000 I 8.375 12-01-88 45,000 03-01-93 45,000 8.375 12-01-88 45,000 03-01-94 45.000 TOTAL CERTIFICATES OF OBLIGATION PAYABLE 130,000 I Refunding bonds Series 1986 6.50 08-15-86 790,000 03-01-92 790,000 6.75 08-15-86 835,000 03-01-93 835,000 II 7.00 08-15-86 890,000 03-01-94 890,000 7.10 08-15-86 855,000 03-01-95 855,000 7.20 08-15-86 935,000 03-01-96 935,000 7.30 08-15-86 990,000 03-01-97 990,000 II 7.40 08-15-86 795,000 03-01-98 795,000 7.50 08-15-86 835,000 03-01-99 835,000 7.75 08-18-86 310,834 03-01-00 310,834 7.80 08-18-86 55,898 03-01-01 55,898 7.85 08-18-86 27,209 03-01-02 27,209 II 7.90 08-18-86 24,993 03-01-03 24,993 7.90 08-18-86 21,844 03-01-04 21.844 II TOTAL BONDS PAYABLE 7,365,778 TOTAL GENERAL LONG-TERM DEBT $7,495.778 I/ I II II II II II -121- I CITY OF FRIENDSWOOD, TEXAS II GENERAL LONG-TERM DEBT I GENERAL LONG-TERM DEBT- BY MATURITY DATE September 30, 1991 1 II YEAR ENDING TOTAL SEPT. 30 PRINCIPAL INTEREST TOTALII 1992 $ 830,000 $ 475,299 $ 1,305,299 1993 880,000 417,884 1,297,884 1994 935,000 354,784 1,289,784II 1995 855,000 291,398 1,146,398 1996 935,000 227,385 1,162,385 1997 990,000 157,590 1,147,590 1998 795,000 92,040 887,04011 1999 835,000 31,313 866,313 2000 310,834 559,166 870,000 2001 55,898 114,102 170,000 2002 27,209 62,791 90,00011 2003 24,993 65,007 90,000 2004 21,844 63.156 85,000 TOTAL GENERAL I LONG-TERM DEBT $7,495 778 $2.9„ 11.915 10,407,693 I 11 II 11 11 11 I II -122- 11 II II IEXHIBIT H-3 Page 1of2 I/ IREFUNDING BONDS - SERIES 1986 CURRENT INTEREST BONDS COMPOUND INTEREST BONDS II INTEREST INTEREST RATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST TOTAL 6.50% $ 790,000 $ 466,087 $ 1,256,087 II 6.75 835,000 412,231 1,247,231 7.00 890,000 352,900 1,242,900 7.10 855,000 291,398 1,146,398 7.20 935,000 227,385 1,162,385 II 7.30 7.40 990,000 157,590 1,147,590 795,000 92,040 887,040 7.50 835,000 31,313 866,313 7.75% $310,834 $559,166 870,000 il 7.80 55,898 114,102 170,000 7.85 27,209 62,791 90,000 7.90 24,993 65,007 90,000 7.90 21.844 63.156 85.000 II $6.925,000 $2.030,944 $4401 778 $864.222 $10,260,944 II II II 11 11 I I I II -123- 1 CITY OF FRIENDSWOOD, TEXAS GENERAL LONG-TERM DEBT GENERAL LONG-TERM DEBT- BY MATURITY DATE September 30, 1991 1 CERTIFICATES OF OBLIGATION CAPITAL LEASES YEAR RADIOS 11 ENDING INTEREST INTEREST SEPT. 30 RATE PRINCIPAL INTEREST TOTAL RATE PRINCIPAL INTEREST 1992 8.375% $ 40,000 $ 9,212 $ 49,212 1993 8.375 45,000 5,653 50,653 1994 8.375 45,000 1,884 46,884 1995 1996 199711 1998 1999 2000 200111 2002 2003 2004 11 $$130,000 ILL.Li2 $146,749 I I I 11 11 I 11 -124- 11 1 EXHIBIT H-3 Page 2 of 2 I CAPITAL LEASES TOTAL CAPITAL LEASES NET PRESENT I INTEREST IBM COMPUTER - POLICE VALUE OF AMOUNT MINIMUM AMOUNT RATE PRINCIPAL INTEREST LEASE PAYMENTS INTEREST TOTAL I I I $ -0- $ -0- $ -0- $ -0 $ -0- I I I i I I 1 I -125- I CITY OF FRIENDSWOOD, TEXAS II GENERAL LONG-TERM DEBT EXHIBIT H-4 COMPOUND BONDS-ACCRUED INTEREST SCHEDULE September 30, 1991 1 YEAR ENDING $310,834 $ 55,898 $27,209 $24,993 $21,844 11 SEPT. 30 a 7.75% a 7.80% e 7.85% a 7.90% a 7.90% 1987 $ 31,384 $ 5,775 $ 2,876 $ 2,703 $ 2,39811 1988 26,523 4,811 2,362 2,188 1,915 1989 28,576 5,186 2,547 2,361 2,066 1990 30,793 5,590 2,747 2,547 2,230 1991 33,178 6,026 2,963 2,748 2,406 !I 1992 35,750 6,496 3,195 2,966 2,596 1993 38,520 7,003 3,446 3,200 2,801 1994 41,506 7,549 3,717 3,453 3,022 1995 44,723 8,138 4,008 3,725 3,26111 1996 48,188 8,773 4,323 4,020 3,518 1997 51,923 9,457 4,662 4,337 3,797 1998 55,948 10,195 5,028 4,680 4,096 1999 60,282 10,990 5,423 5,050 4,420 11 2000 31,872 11,847 5,849 5,449 4,769 2001 6,266 6,297 5,879 5,146 2002 3,348 6,344 5,553 2003 3,357 5,991 II 2004 3.171 559 166 $114,102 012.91. 165.007 03.156 II II I II 11 II II I -126- 11 E i i — mu — In NM N MI - - MI M - ME ME NM M 1 N v I CITY OF FRIENDSWOOD, TEXAS II SCHEDULE OF DELINQUENT TAXES RECEIVABLE EXHIBIT I-1 11 September 30, 1991 II DELINQUENT TAXES RECEIVABLE GENERAL DEBT SERVICE IIYEAR FUND FUND TOTAL 1990 $ 54,871 $ 20,086 $ 74,957 1989 45,087 13,670 58,757 II 1988 38,181 14,110 52,291 1987 21,509 7,239 28,748 1986 16,933 7,534 24,467 1985 17,746 6,505 24,251 II 1984 14,484 6,105 20,589 1983 23,755 10,327 34,082 1982 6,104 3,174 9,278 1981 2,996 1,384 4,380 II1980 1,908 876 2,784 1979 1,479 417 1,896 1978 1,054 261 1,315 1977 378 159 537 II1976 579 313 892 1975 337 128 465 1974 33 9 42 TOTAL DELINQUENT II TAXES RECEIVABLE $247,434 $ 92.297 339 731 II 1 II II 1 1 -128- 11 STATISTICAL SECTION (The City has not had any special assessments in the last ten fiscal years.) (The City has no legal debt margin.) 3 -129- 0 6. PI 64 CITY OF FRIENDSWOOD, TEXAS U GENERAL REVENUE-BY SOURCE 4 Last Ten Fiscal Years rt. CHARGES FOR LICENSES FISCAL SERVICE FINES AND AND INTER !! - YEAR TAXES (SANITATION) FORFEITURES PERMITS GOVERNMENTAL 1981-82 $2,188,070 $289,034 $111,975 $ 75,292 $311,695 ,11 1982-83 2,602,930 344,178 102,609 180,972 97,271 1983-84 3,285,018 431,941 128,694 167,484 335,077 PP 1984-85 (1) 4,018,210 532,701 138,302 138,074 535,955 m 1985-86 (2) 4,608,491 470,177 120,195 148,740 124,114 1986-87 5,272,714 525,592 184,359 124,913 94,015 -11 1987-88 5,328,869 545,130 142,516 125,083 48,985 I 1988-89 5,571,191 542,911 190,106 143,105 53,464 1989-90 5,666,522 595,244 166,982 240,294 50,984 111 1990-91 5,948,464 733,245 166,355 286,421 28,641 Mt Includes the General, Special Revenue and Debt Service Funds. (1) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement District) during the previous year. p (2) Includes annexation of the Forest Bend Subdivision (WCID No. 108) during it the year. Source - Accounting records of the City. !! !! :! I: 116 -130- I I IEXHIBIT I I I INTEREST INCOME OTHER TOTAL $125,888 $ 84,124 $3,186,078 91,593 123,088 3,542,641 ' 112,516 42,473 4,503,203 127,909 41,551 5,532,702 ' 88,521 28,850 5,589,088 91,011 45,342 6,337,946 196,647 106,057 6,493,287 185,037 118,539 6,804,353 222,328 115,107 7,057,461 I 232,773 139,525 7,535,424 I I I I I I I -131- 1 II I I N WOOD TEXAS CITY OF FR E DS GENERAL GOVERNMENTAL EXPENDITURES- BY FUNCTION 1 Last Ten Fiscal Years 1 CULTURE FISCAL GENERAL PUBLIC PUBLIC ANDII YEAR GOVERNMENT SAFETY MORES SANITATION RECREATION 1981-82 $ 680,792 $ 856,648 $ 474,575 $288,813 $299,028 1982-83 714,608 1,188,214 596,633 336,635 314,853 II 1983-84 (1) 812,289 1,311,923 958,188 436,299 390,361 1984-85 954,086 1,388,760 523,653 512,504 373,412 II 1985-86 (2) 1,221,176 1,737,503 723,779 484,851 453,408 1986-87 1,473,875 1,870,538 718,117 519,527 692,525 II 1987-88 (3) 1,143,024 1,934,317 1,128,195 (4) (5) 1988-89 (3) 1,167,194 2,038,066 1,108,423 (4) (5) II 1989-90 (3) 1,258,050 2,173,685 1,196,889 (4) (5) 1990-91 (3) 1,085,683 2,478,564 1,521,841 (4) (5) II Includes the General, Special Revenue and Debt Service Funds. I (1) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement District) during the year. (2) Includes annexation of the Forest Bend subdivision (WCID No. 108) II during the year. (3) Function classifications have been revised to reflect the City'sII internal records. (4) Sanitation expenditures included in Public Works. (5) Culture and Recreation and Community Counseling Center 11 expenditures included in community services. (6) Community Development expenditures included in general governmentII and public works. (7) Community Services expenditures included in Culture and Recreation and Community Counseling Center. 11 Source - Accounting records of the City. I II -132- II I I IEXHIBIT II I I COMMUNITY COMMUNITY COMMUNITY COUNSELING DEBT DEVELOPMENT SERVICES CENTER SERVICE TOTAL I (6) (7) $ 42,243 $ 414,440 $3,056,539 (6) (7) 46,582 497,405 3,694,930 I (6) (7) 48,014 983,609 4,940,683 (6) (7) 67,919 997,114 4,817,448 I (6) (7) 78,966 1,064,286 5,763,969 (6) (7) 35,000 1,314,714 6,624,296 I $ 249,684 $ 814,380 (5) 1,344,693 6,614,293 257,750 768,533 (5) 1,305,728 6,645,694 ' 281,723 949,048 (5) 1,304,597 7,163,992 289,501 1,048,606 (5) 1,301,928 7,726,123 I I I I I I I I -133- II II CITY OF FRIENDSWOOD, TEXAS IITAX REVENUES- BY SOURCE EXHIBIT III Last Ten Fiscal Years II BUSINESS I/ GENERAL GROSS INDUSTRIAL FISCAL TOTAL PROPERTY GENERAL RECEIPTS DISTRICT BEVERAGE YEAR TAXES TAXES SALES TAX TAXES TAXES* TAX II1981-82 $2,188,070 $1,599,521 $ 99,497 $185,708 $302,064 1,280 1982-83 2,602,930 2,113,715 336,234 151,746 - 1,235 II1983-84 3,285,018 2,727,942 351,431 204,275 - 1,370 1984-85 (1) 4,018,210 3,319,149 424,498 273,184 - 1,379 II1985-86 4,608,491 3,826,171 483,629 297,585 - 1,106 1986-87 (2) 5,272,714 4,421,343 517,943 332,432 - 996 II 1987-88 5,328,869 4,442,540 509,551 375,755 - 1,023 1988-89 5,571,191 4,562,856 606,549 400,986 - 800 II1989-90 5,666,522 4,557,133 689,576 419,062 - 751 1990-91 5,948,464 4,749,173 739,216 456,566 - 3,509 II * Contract with Industrial District from 1976 to 1980 a new contract from 1980 to 1982 with a guarantee of at least $300,000 a year. II (1) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement District) during the previous year. (2) Includes annexation of the Forest Bend subdivision (WCID No. 108) during the 11 previous year. Source - Accounting records of the City. II II II 11 II -135- I CITY OF FRIENDSWOOD, TEXAS II PROPERTY TAX LEVIES AND COLLECTIONS II Last Ten Fiscal Years I PERCENT PERCENTII FISCAL TAX TAX TOTAL CURRENT TAX OF LEVY YEAR YEAR RATE TAX LEVY COLLECTIONS COLLECTED 1981-82 1981 $0.775 $1,586,474 $1,531,878 96.56% II 1982-83 1982 0.735 2,068,817 1,989,751 96.18 1983-84 1983 0.720 2,491,879 2,400,000 96.32 1 1984-85 (2) 1984 0.720 3,348,234 3,224,304 96.30 1985-86 1985 0.7095 3,870,699 3,680,672 95.10 II 1986-87 (3) 1986 0.695 4,369,541 4,245,550 97.16 1987-88 1987 0.695 4,351,363 4,248,363 97.63 1 1988-89 1988 0.695 4,553,066 4,433,139 97.37 1989-90 1989 0.695 4,531,537 4,427,153 97.70 II 1990-91 1990 0.695 4,636,066 4,561,109 98.38 (1) Assessment ratio increased in 1980 to 100% of market value per $100 II valuation. (2) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement I District) during the previous year. (3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during the previous year. II Source - Tax assessor/collector's records. II 11 11 II I -136- II II 11 IIEXHIBIT IV IITOTAL OUTSTANDING COLLECTION DELINQUENT I DELINQUENT TOTAL AS A TAXES AS A AS OF OUTSTANDING PERCENT OF TAX TAX TOTAL DELINQUENT TOTAL COLLECTIONS COLLECTIONS TAX LEVY TAXES LEVY II $ 67,643 $1,599,521 100.82% $142,473 0.98% 123,964 2,113,715 102.17 123,882 5.99 II50,915 2,450,915 98.36 169,380 6.80 55,528 3,279,832 97.96 232,879 6.96 II112,025 3,792,697 97.98 328,281 8.48 133,831 4,379,381 100.23 318,441 7.29 II119,686 4,368,049 100.38 301,754 6.93 79,695 4,512,834 99.12 341,986 7.51 I74,484 4,501,637 99.34 371,886 8.21 114,376 4,675,485 100.85 339,731 7.33 II II II II II II II II II -137- 1 CITY OF FRIENDSWOOD, TEXAS II ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY II Last Ten Fiscal Years II REAL PROPERTY PERSONAL PROPERTY IIESTIMATED ESTIMATED FISCAL TAX ASSESSED ACTUAL ASSESSED ACTUAL YEAR YEAR VALUE VALUE VALUE VALUE II1981-82 1981 $199,752,590 $199,752,590 $ 6,432,770 $ 6,432,770 1982-83 1982 291,156,780 291,156,780 7,295,310 7,295,310 II1983-84 1983 436,557,744 436,557,744 6,389,970 6,389,970 1984-85 (2) 1984 588,137,580 588,137,580 10,731,940 10,731,940 , 1985-86 1985 636,203,660 636,203,660 9,688,000 9,688,000 1986-87 (3) 1986 726,482,470 726,482,470 34,305,290 34,305,290 II1987-88 1987 732,642,639 732,642,639 30,811,878 30,811,878 1988-89 1988 690,062,040 690,062,040 39,852,170 39,852,170 II1989-90 1989 745,236,230 745,236,230 14,605,530 14,605,530 1990-91 1990 719,570,021 719,570,021 41,999,150 41,999,150 II (2) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement District) during the previous year. (3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during II the previous year. Source - Tax assessor/collector's records. II 11 II II II II -138- 11 I I 1 EXHIBIT V I I TOTAL TOTAL ESTIMATED ASSESSED TAXABLE RATIO OF ASSESSED ASSESSED ACTUAL VALUE OF ASSESSED VALUE TO ESTIMATED VALUE VALUE EXEMPTIONS VALUE ACTUAL VALUE I $206,185,360 $206,185,360 $ 4,380,567 $201,804,793 100% 298,452,090 298,452,090 85,672,799 212,779,291 100 442,947,714 442,947,714 96,853,365 346,094,349 100 598,869,520 598,869,520 133,837,020 465,032,500 100 645,891,660 645,891,660 111,788,728 534,102,932 100 760,787,760 760,787,760 132,076,820 628,710,940 100 1 763,454,517 763,454,517 137,359,095 626,095,422 100 729,914,210 729,914,210 95,185,210 634,729,000 100 I759,841,760 759,841,760 106,734,872 653,106,888 100 761,569,171 761,569,171 94,509,321 667,059,850 100 I I I I I I I -139- 1 CITY OF FRIENDSWOOD, TEXAS II PROPERTY TAX RATES AND TAX LEVIES- DIRECT AND 11 OVERLAPPING GOVERNMENTS Last ten fiscal years II FRIENDSWOOD CLEAR CREEK II INDEPENDENT INDEPENDENT FISCAL TAX CITY OF SCHOOL SCHOOL YEAR YEAR FRIENDSWOOD DISTRICT DISTRICT IITAX RATE 1981-82 1981 $ .775 $ 1.86 $ .88 1982-83 1982 .735 1.83 .83 1983-84 1983 .720 1.79 .82 1984-85 1984 .720 1.46 .82 1985-86 1985 .7095 1.46 .92 1986-87 1986 .695 1.41 .92 1987-88 1987 .695 1.41 .95 11 1988-89 1988 .695 1.41 .95 1989-90 1989 .695 1.55 1.075 1990-91 1990 .695 1.55 1.289 II TAX LEVIES 1981-82 1981 $1,586,474 $3,567,480 $22,647,479 II 1982-83 1982 2,068,817 4,854,834 25,331,425 1983-84 1983 2,491,879 5,233,942 27,542,883 1984-85 (2) 1984 3,348,234 5,123,436 31,308,670 ' 1985-86 1985 3,870,699 5,802,869 41,309,808 1986-87 (3) 1986 4,369,541 6,205,039 44,892,680 1987-88 1987 4,351,363 6,511,149 43,580,000 1988-89 1988 4,553,066 6,841,786 46,654,423 1989-90 1989 4,531,537 7,642,133 54,983,096 1990-91 1990 4,636,066 7,863,639 69,656,556 II (2) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement II District) during the previous year. (3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during II the previous year. Source - Accounting records of the City and tax assessor/collector's records. II II I I -140- II I II 11 EXHIBIT VI II IICLEAR CREEK GALVESTON HARRIS DRAINAGE II COUNTY COUNTY DISTRICT TAX RATE $.300 $ .376 $.100 I .300 .360 .150 .395 .377 .150 .395 .277 .150 .385 .27878 .150 11 .385 .26786 .150 .385 .29316 .150 .415 .49293 .150 .445 .560 .150 II .445 .59011 .150 TAX LEVIES II $18,673,000 $218,001,248 $256,004 18,137,783 238,964,304 486,722 26,640,815 270,971,084 506,281 28,607,391 312,288,939 609,854 II 29,255,237 321,822,000 742,703 25,228,511 311,338,358 740,222 31,021,686 317,419,015 763,695 34,138,033 316,340,000 771,330 II 36,957,169 310,287,582 781,367 42,085,772 665,998,301 806,204 II II II II II II 1 -141- I CITY OF FRIENDSWOOD, TEXAS I RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSF-SED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Last Ten Fiscal years I GROSS LESS DEBT FISCAL ESTIMATED ASSESSED BONDED SERVICE YEAR POPULATION VALUE DEBT FUND BALANCE 1981-82 11,770 $206,185,360 $ 6,560,000 $145,075 I 1982-83 12,530 298,452,090 6,470,500 153,535 1983-84 (1) 17,365 442,947,714 8,423,163 197,749 1 1984-85 18,500 598,869,520 8,046,000 200,813 1985-86 (2) 22,500 645,891,660 10,650,778 459,306 I 1986-87 23,000 760,787,760 10,065,778 518,998 1987-88 22,500 763,454,517 9,405,778 325,894 1 1988-89 23,500 729,914,210 8,750,778 280,793 1989-90 22,710 759,841,760 8,080,778 57,308 I 1990-91 22,814 761,569,171 7,365,778 50,854 (1) Includes annexation of the Wedgewood Improvement subdivision (Clearwoods Im rovement I District) during the previous year. (2) Includes annexation of the Forest Bend subdivision (WCID No. 108) during I the previous year. Source - Tax assessor/collector's records. I I I I I -142- I I IEXHIBIT VII I RATIO OF NET I NET BONDED DEBT BONDED TO ASSESSED NET BONDED DEBT DEBT VALUE PER CAPITA I $6,414,925 3.1% $545 6,316,965 2.1 504 II 8,225,414 1.9 473 7,845,187 1.3 424 1 10,191,472 1.6 453 9,546,780 1.3 415 I9,079,884 1.2 404 8,469,985 1.2 360 II 8,023,470 1.06 353 7,314,924 0.96 321 I I I I I I I I I -143- I CITY OF FRIENDSWOOD TEXAS II COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT EXHIBIT VIII I September 30, 1991 II PERCENTAGE CITY OF IINET DEBT APPLICABLE FRIENDSWOOD'S NAME OF GOVERNMENTAL UNIT OUTSTANDING TO CITY OF FRIENDSWOOD SHARE OF DEBT Friendswood Independent School District $ 3,830,000 100.00% $ 3,830,00011 Clear Creek Independent School District 81,155,000 3.94 3,197,507 Galveston County 73,325,155 5.68 4,164,869 II Harris County 932,812,412 .15 1,399,219 Harris County Toll II Road Authority 517,191,374 .15 775,787 Harris County Flood Control District 283,638,056 .15 425,457 II Port of Houston Authority 102,040,000 .15 153.060 II TOTAL NET OVERLAPPING DEBT 13,945,899 Net General Obligation Bonded Debt - City of Friendswood 7.314.924 1 TOTAL NET DIRECT AND OVERLAPPING DEBT $21,260,823 II II I 1 II II II -144- II II II CITY OF FRIENDSWOOD, TEXAS I RATIO OF ANNUAL DEBT SERVICE EXPENDITURES EXHIBIT IX FOR GENERAL LONG-TERM DEBT TO TOTAL GENERAL EXPENDITURES IILast Ten Fiscal Years I/ INTEREST AND (2) RATIO OF DEBT SERVICE II FISCAL TOTAL TOTAL TO TOTAL GENERAL GOVERNMENTAL FISCAL AGENT DEBT GENERAL YEAR PRINCIPAL FEES SERVICE EXPENDITURES EXPENDITURES II 1981-82 $110,631 $303,809 $ 414,440 $3,056,539 13.56 1982-83 123,759 373,646 497,405 3,694,930 13.46 1983-84 356,000 627,609 983,609 4,940,683 19.91 II 1984-85 377,608 619,506 997,114 4,817,448 20.70 1985-86 (1) 484,427 579,859 1,064,286 5,763,969 18.46 1986-87 620,386 694,328 1,314,714 6,624,296 19.85 1987-88 690,323 654,370 1,344,693 6,614,293 20.33 II1988-89 687,029 618,699 1,305,728 6,645,694 19.65 1989-90 721,245 583,352 1,304,597 7,163,992 18.21 II1990-91 763,192 538,736 1,301,928 7,726,061 16.85 II (1) Excludes debt defeased through refunding of $10,032,000. (2) Includes the General, Special Revenue and Debt Service funds. II Source - Accounting records of the City. II II I/ I II II -145- I 1 CITY OF FRIENDSWOOD, TEXAS ITAX RATE DISTRIBUTION EXHIBIT X Last Ten Fiscal Years I GENERAL DEBT SERVICE TOTAL TAX I TAX YEAR FUND FUND RATE 1981 $ .53 $ .245 $ .775 I1982 .4835 .2515 .735 1983 .502 .218 .720 I1984 .507 .213 .720 1985 .5192 .1903 .7095 I1986 .481 .214 .695 1987 .52 .175 .695 I1988 .50746 .18754 .695 1989 .5333 .1617 .695 I1990 .50876 .18624 .695 (1) Assessment ratio increased in 1980 to 100% market value per $100 valuation. ISource - City's tax ordinances. I I 1 I I I I I -147- I CITY OF FRIENDSWOOD, TEXAS II REVENUE BOND COVERAGE I Last Ten Fiscal years OPERATING NET OPERATING I NUMBER NUMBER EXPENSES REVENUE FISCAL OF WATER OF SEWER OPERATING BEFORE AVAILABLE FOR YEAR CUSTOMERS CUSTOMERS REVENUE DEPRECIATION DEBT SERVICEII 1981-82 3,388 3,212 $1,134,886 $ 756,498 $ 378,388 1982-83 3,659 3,430 1,450,044 861,935 588,109 1 1983-84 4,998 4,686 2,141,284 1,072,741 1,068,543 1984-85 5,338 5,061 2,104,796 1,193,709 911,087 1 1985-86 6,497 6,238 4,205,395 1,311,526 2,893,869 1986-87 6,514 6,324 3,066,581 1,487,668 1,578,91311 1987-88 6,626 6,432 3,071,181 1,526,297 1,544,884 1988-89 6,731 6,539 3,034,892 1,443,986 1,590,906 1 1989-90 6,968 6,719 3,472,772 1,597,064 1,875,708 1990-91 7,336 6,983 3,350,312 1,857,809 1,492,503 1 Source - Accounting records of the City. I I 11 I/ II 11 11 I -148- 1 II II I EXHIBIT XI II REVENUE BOND II DEBT SERVICE REQUIREMENTS PRINCIPAL INTEREST TOTAL COVERAGE $ 70,000 $99,005 $169,005 2.24 II70,000 91,113 161,113 3.65 70,000 96,515 166,515 6.42 II120,000 92,475 212,475 4.29 120,000 83,129 203,129 14.25 II125,000 77,566 202,566 7.79 125,000 69,720 194,720 7.93 II125,000 61,900 186,900 8.51 130,000 56,275 186,275 10.07 II130,000 46,906 176,906 8.44 11 II II II II II I II I -149- II CITY OF FRIENDSWOOD, TEXAS II PRINCIPAL TAXPAYERS EXHIBIT XII II September 30, 1991 PERCENT OF TAXABLE TAXABLE ASSESSED VALUE ASSESSED TO TOTAL TAXABLE 11 NAME OF TAXPAYER NATURE OF BUSINESS VALUE ASSESSED VALUE 1. Exxon Oil & Gas $ 39,939,610 5.99% 11 2. Southwestern Bell Telephone Utility Co. 11,086,100 1.66 3. Texas-New Mexico Power Utility Co. 6,846,590 1.03 ' 4. Friendwood Retirement Retirement Center Home 6,575,140 .99 II 5. Crosstimber Production Oil & Gas 6,343,310 .95 6. Florida Federal Savings and Loan Apartments 5,092,160 .76II 7. Houston Lighting and Power Utility Co. 2,937,460 .44 ' 8. Jerry Moore Investor 2,652,200 .40 9. Baywood Limited Apartments 2,494,000 .37 , 10. Salem Square Apartments Apartments 2.412,880 .36 86,379,450 12.95 II All others 580,680,400 87.05 TOTAL $667,059,850 100.00% 1 II Source - Tax assessor/collector's records. I I 11 II -150- II CITY OF FRIENDSWOOD, TEXAS I PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS EXHIBIT XIII Las Ten Fiscal Years I FISCAL (A) BANK PROPERTY YEAR CONSTRUCTION (B) DEPOSITS V(C) ALUE 1982 $15,102,000 $48,616,000 $206,185,360 1983 31,211,841 62,256,000 298,452,090 i 1984 31,379,139 67,111,934 486,902,520 1985 28,891,533 72,641,562 598,869,520 1986 26,920,850 78,645,866 645,891,660 1987 17,337,714 90,775,074 760,787,760 i 1988 19,712,294 133,829,940 763,454,517 1989 14,998,749 148,356,238 729,914,210 1990 37,068,554 122,671,080 759,841,760 1991 46,975,722 123,012,118 761,569,171 I (A) Source - City inspection records. I (B) Source - Texas Commerce Bank and Community National Bank, Friendswood. (C) Source - Tax assessor/collector's records. I I I I I I -151- I 111 CITY OF FRIENDSWOOD, TEXAS il DEMOGRAPHIC STATISTICS EXHIBIT XIV Last Ten Fiscal Years I FISCAL II YEAR ENDED POPULATION- PER CAPITA MEDIAN UNEMPLOYMENT SEPT. 30 A INCOME-B AGE-B RATE-C 1982 11,770 * 27.7 3.8% II1983 12,530 $23,915 27.5 7.9 1984 17,365 21,573 27.6 5.9 li1985 18,500 24,570 27.9 8.6 1986 22,500 27,735 27.9 12.6 II1987 23,000 29,273 29.7 10.3 1988 22,500 29,743 29.7 6.8 II1989 23,500 * * 6.4 1990 22,710 * * 5.0 11 1991 22,814 * * 7.4 I Note A - Estimated for the years 1982-1989. 1990 and 1991 are actual census figures. Note B - Source: Clear Lake Area Chamber of Commerce and Friendswood Chamber of I Commerce. Note C - Source: Texas Employment Commission, Houston Standard Metropolitan Statistical area, except 1991 is based on Galveston County II Statistical area. *Information not provided is not available. II II p II II I -153- a CITY OF FRIENDSWOOD, TEXAS II SCHEDULE OF INSURANCE IN FORCE September 30, 1991 II LOCATION OR INSIIRER POLICY NO. ACTIVITY COVERAGEII Employers Casualty EEP-E-047835 Electronic Fire, EC, V&MM Co. Equipment 11 Employers Casualty CEF-F-874899 Contractors Fire, EC, V&MM Co. Equipment National Casualty 122099 Public Elected andII Officials Appointed American States MP4407 Volunteer AD&D Insurance Firemen National Casualty PL101450 City Comprehensive Law Enforcement II Employers of Texas TCP-F-E419008 City Multi-Peril Lloyds Employers Casualty Co. BAA-F-649005 Fleet All City Vehicles I Employers of Texas FMC-D-1L6920 City Fire, EC, Windstorm Lloyds V&MM 11 Omaha Property and 0I939707723 Bougainvilla Flood-Building and Casualty 3-0009-0757-0 Contents Omaha Property and 01932137639 Library Flood-Building andli Casualty Contents Omaha Property and 0I3003462748 Library Annex Flood-Building and Casualty ContentsII Omaha Property and 012001944988 Counseling Flood-Building and Casualty Center Contents II Omaha Property and 0I3001775851 Forest Bend Flood-Building and Casualty Civic Contents I I II II -154- II II II IIEXHIBIT XV 1 of 2 II AMOUNT PERIOD OF II OF COVERAGE COVERAGE BEGINNING ENDING PREMIUM $ 267,091 12-01-90 12-01-91 $ 1,741 li 261,859 12-01-90 12-01-91 2,619 II1,000,000 12-19-90 12-19-91 10,110 I50,000 03-27-91 03-27-92 2,458 1,000,000 12-19-90 12-19-91 20,921 I3,208,200 12-01-90 12-01-91 71,623 II500,000 12-01-90 12-01-91 73,513 2,944,500 12-01-90 12-01-91 7,702 II2000/10,000 11-08-91 11-08-92 110 2000/5,000 93 II163,400/100,000 08-03-91 08-03-92 768 II55,000/91,600 04-23-91 04-23-92 504 27,500/10,500 04-27-91 04-27-92 151 II100,000/10,000 07-20-91 07-20-92 355 1 II I II I -155- 11 CITY OF FRIENDSWOOD, TEXAS II SCHEDULE OF INSURANCE IN FORCE I September 30, 1991 II LOCATION OR I/INSIIRER POLICY NO. ACTIVITY COVERAGE Omaha Property & 011940990565 Public Works Flood-Building Casualty and Contents il Omaha Property & 012001256227 Fire Station Flood-Building Casualty #1 and Contents Omaha Property & 0I3003589052 City Hall Flood-BuildingII Casualty Annex and Contents Omaha Property & 0I3003947995 City Hall Flood-Building Casualty and Contents11 Texas Political Sub- TBSH0008 City All City Employees division-Workers Comp. Truman Taylor Insurance 18200783 Notary Public Employees II' Errors & Omissions St. Paul Fire & 400HX3033 Surety Bond Tax Assessor/ 11 Marine Collector St. Paul Fire & 400HX3039 Surety Bond Finance Director MarineII Truman Taylor 13265210 Notary Bond Planning/Zoning Insurance II Truman Taylor TXN254475 Notary Bond Communications Insurance Truman Taylor TXN254477 Notary Bond Finance I Insurance Truman Taylor TXN269353 Notary Bond Public Works InsuranceII Truman Taylor TSN269362 Notary Bond Police Insurance American States EX801603 Public Officials City Manager II II II -156- 11 I 111 EXHIBIT XV 2 of 2 I 1 177,100/ 04-07-91 04-07-92 $ 366 38,300 220,000/ 04-07-91 04-07-92 488 23,100 1 75,000/ 08-21-91 08-21-92 751 175,000 I 200,000/75,000 06-13-91 06-13-92 707 Statutory 10-01-90 10-01-91 121,703 I 20,000 0 - - - -2 17 91 02 17 92 133 I50,000 05-29-91 05-29-92 88 I50,000 05-29-91 05-29-92 250 2,500 02-07-89 02-07-93 71 I 2,500 05-28-89 05-28-93 71 I2,500 07-17-89 07-17-93 71 I2,500 10-13-89 10-13-93 71 2,500 04-14-90 04-19-94 7 I50,000 07-01-91 07-01-92 175 I I I I -157- I CITY OF FRIENDSWOOD, TEXAS MISCELLANEOUS STATISTICAL DATA EXHIBIT XVI 11 September 30, 1991 1 of 2 f Date of Incorporation October 15, 1960 1 Date of present charter Adopted Home Rule Charter October 16, 1971 Form of Government Council - Manager I Area 21.71 Square Miles Miles of streets Streets - paved 108.7 miles Streets - unpaved 2.4 miles Fire Protection ,I Number of stations 3 Number of employees (fulltime equivalent) 4.70 Number of volunteers 54 Fire Prevention Number of employees (fulltime equivalent) 1.50 Number of volunteers 0 11 Police Protection Number of stations 1 Number of sworn officers (fulltime equivalent) 30.15 , Number of patrol units 10 Number of volunteers 1 Recreation Number of parks 6 Size of parks Total acres 56.6 Number of golf courses 0 Number of swimming pools 1 Number of tennis courts 4 Storm Sewers (1) Miles of storm sewer 82.0 miles 1 (1) All subdivisions were added and a thorough report was completed. I i 1 -158- 1 I II CITY OF FRIENDSWOOD, TEXAS IIMISCELLANEOUS STATISTICAL DATA EXHIBIT ma September 30, 1991 2 of 2 II Education 11 Friendswood Independent School District Number of teachers 221 Number of students 3,609 IIClear Creek Independent School District (1) City employees Department Heads 7.00 II Employees Fulltime 101.00 Part-time (fulltime equivalents) 18.55 II Total 126.55 Election Number of votes cast I Last City election - Regular Election Run-off Election 3,986 1,368 Water II Source um daily consumption 7 wells 683,539 gallons 4,154,000 gallons Surface Water Average daily consumption 1,833,893 gallons Maximum daily gallons II Water mains Number of connections 7,3361 miles Sewer Blackhawk Tower Estates I/ Average daily flow 1,813,000 gallons 176,000 gallons Maximum daily flow 5,695,000 gallons 990,700 gallons Sanitary sewer mains 80 miles IINumber of connections 6,983 I/ (1) Statistical information is not available for the Harris County portion of Friendswood served by Clear Creek Independent School District. II I/ I/ II I/ -159- 1 CITY OF FRIENDSWOOD, TEXAS 11 PRINCIPAL OFFICIALS I September 30, 1991 II ELECTIVE CITY OFFICIALS ADDRESS POSITION I Paul W. Schrader 504 Liberty Mayor Ron Ritter 15410 Wandering Trail Councilmember - Position No. 1 Mel P. Measeles 1203 Timberlane Councilmember - Position No. 2 II Evelyn B. Newman 502 Falling Leaf Councilmember - Position No. 3 Ed Stuart 2001 Pine Councilmember - Position No. 4 Harold Raley 125 St. Cloud Councilmember - Position No. 5 Frank Frankovich 656 E. Castle Harbour Councilmember - Position No. 6 II APPOINTIVE POSITION Ronald E. Cox 109 Willowick, Friendswood City Manager II Deloris Archer 109 Willowick, Friendswood City Secretary Jon Branson 109 Willowick, Friendswood Park and Recreation Director Alta Carbone P.O. Box 31, Friendswood Tax Assessor-Collector James E. Thompson 1306 Deepwood, Friendswood Community Development Director II Melvin L. Meinecke 1306 Deepwood, Friendswood Director of Public Works Olson & Olson 333 Clay, Suite 3485, City Attorney Houston Claudie Pettigrew 109 Willowick, Friendswood Library Director II Vance Riley 1000 S. Friendswood Drive Fire Marshal Roger C. Roecker 109 Willowick, Friendswood Director of Finance Jared D. Stout 109 Willowick, Friendswood Police Chief II Luis Suarez 109 Willowick, Friendswood Judge - Municipal Court Russell E. Williams 109 Willowick, Friendswood Emergency Management Director II I I 11 I 11 II -160 II - I EXHIBIT XVII I EXPIRES May 1992 May 1992 May 1993 May 1992 May 1993 May 1992 May 1993 I I I i I I 1 I t 1 1 -161-