HomeMy WebLinkAbout1998 09 30 Annual Comprehensive Financial Report - City of Friendswood I
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Comprehensive
Annual Financial Report
tof the
City of Friendswood, Texas
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Fiscal Year Ended
September 30, 1998
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Officials Issuing Report
tRonald E.Cox
City Manager
1 Roger C.Roecker
Director of Administrative Services
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CITY OF FRIENDSWOOD, TEXAS
ICOMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1998
TABLE OF CONTENTS
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Exhibit Page
INTRODUCTORY SECTION
I Letter of Transmittal 1
Organization Chart 11
Certificate of Achievement for Excellence in Financial Reporting 12
IPrincipal Officials 13
FINANCIAL SECTION
IIndependent Auditors' Report 14
IGENERAL PURPOSE FINANCIAL STATEMENTS
Combined Balance Sheet-All Fund Types and Account Groups A-1 16
Combined Statement of Revenues, Expenditures and Changes in Fund
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Balances -All Governmental Fund Types A-2 20
Combined Statement of Revenues, Expenditures and Changes in Fund
Balances — Budget (GAAP Basis) and Actual — General, Special
I Revenue,and Debt Service Funds A-3 22
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings/Fund Balance - Proprietary Fund Type and Non-
III Expendable Trust Fund A-4 24
Combined Statement of Cash Flows - Proprietary Fund Type and Non-
Expendable Trust Fund A-5 26
I Notes to Financial Statements A-6 28
Required Pension System Supplementary Information A-7 50
I COMBINING,INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
1 Governmental Fund Types
General Fund:
Comparative Balance Sheet B-1 51
I Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual B-2 52
I Special Revenue Funds:
Combining Balance Sheet C-1 60
Combining Statement of Revenues, Expenditures and Changes in Fund
I Balance C-2 61
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Police Investigation) C-3 62
I Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Fire/EMS Donations) C-4 63
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CITY OF FRIENDSWOOD,TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1998
TABLE OF CONTENTS
Exhibit Pane
FINANCIAL SECTION(continued)
COMBINING,INDIVIDUAL FUND AND ACCOUNT GROUP I
STATEMENTS AND SCHEDULES(continued)
Governmental Fund Types(continued) I
Debt Service Fund:
Comparative Balance Sheet D-1 64
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual D-2 65
Proprietary Fund Type
Enterprise Fund: I
Comparative Balance Sheet E-1 66
Schedule of Revenues, Expenses and Changes in Retained Earnings -
Budget and Actual(Non-GAAP Budgetary Basis) E-2 67 I
Schedule of Bonds Payable by Maturity E-3 70
Schedule of Certificates of Obligation by Maturity Date E-4 71 1
Account Groups
General Fixed Assets: I
Comparative Schedules of General Fixed Assets by Source F-1 72
Schedule of General Fixed Assets by Function and Activity F-2 73
Schedule of Changes in General Fixed Assets by Function and Activity F-3 75I
General Long-Term Debt:
Comparative Schedules of General Long-Term Debt G-1 76
Schedule of Changes in General Long-Term Debt G-2 77
Schedule of General Long-Term Debt Service Requirements to
Maturity G-3 79 II
Table Page 1
UNAUDITED STATISTICAL SECTION
General Government Revenues By Source 1 81 I
General Governmental Expenditures by Function 2 83
Property Tax Levies and Collections 3 85
Assessed and Estimated Actual Value of Taxable Property 4 87
Tax Rate Distribution 5 88
Direct and overlapping Property Tax Rates 6 89
Principal Taxpayers 7 91
Ratio of Annual Debt Service Expenditures for General Bonded Debt to
Total General Expenditures 8 92
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CITY OF FRIENDSWOOD, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1998
TABLE OF CONTENTS
Table Pane
UNAUDITED STATISTICAL SECTION(continued)
' Revenue Bond Coverage 9 93
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded
e Debt Per Capita 10 95
Computation of Direct and Overlapping Debt 11 97
Demographic Statistics 12 98
Schedule of Impact Fee Project Changes 13 99
Miscellaneous Statistical Data 14 101
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City of Friendswood
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March 30, 1999
' To the Honorable Mayor and
Members of the City Council
The comprehensive annual financial report of the City of Friendswood for the fiscal year ended
September 30, 1998, 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 auditor's report on the financial statements and schedules. The statistical section includes selected
financial and demographic information, generally presented on a multi-year basis.
The Single Audit Act is not applicable for fiscal year ended September 30, 1998. The City did not
1 expend more than$300,000 in Federal or State funds during 1997-98.
This report includes all funds and account groups of the City. Friendswood Independent School
' District, Clear Creek Independent School District, Galveston County, Hams 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.
fThe City is involved in two cost sharing projects for the operation of the Blackhawk Regional Waste
Treatment Plant and the Southeast Water Purification Plant with the Gulf Coast Waste Disposal
' Authority and the City of Houston, respectively. The City's share of ownership in the Blackhawk
Waste Treatment Plant is 52.47% and paid operating and management fees during the year in the
amount of$917,397. The City's share of production pumping cost in the Southeast Water Purification
Plant was 3.75% and paid operating fees in the amount of$302,091 during the year.
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.
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Water and Sewer
The City provides water and sewer services for residential and commercial locations. 20 employees
are responsible for maintaining the system, as well as billing and collecting for the services.
Police 1
Twenty-four hour coverage is provided by the City's Police Department, which consists of
Administration, Patrol, Investigative, Communications and Animal Control. A goal of the department's
56 full and part-time personnel is to actively involve the citizens in its community safety efforts.
Fire
Although the Citydoes not employ its own fire department, itpurchases fire trucks and other equipment
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for the members of the Friendswood Volunteer Fire Department. The City employs a Fire Marshal, an
Assistant Fire Marshal, one Administrative Secretary, one full-time fire fighter and funds six fire fighter, I
paramedic and emergency medical technician positions through a pool of part-time employees. The Fire
Marshal is responsible for the emergency management function, as well as fire prevention, education and
investigation duties. I
Streets
The street department is responsible for the repair and maintenance of all city streets and roadside
drainage. This department consists of twelve employees.
Sanitation 1
The city's solid waste services, including curbside pickup of recyclable materials, are contracted to a
private firm. Residential pickup is twice weekly.
Parks
The Parks and Recreation Division of the Community Services Department oversees 110.5 acres of
parkland, including four tennis courts, a swimming pool, picnic areas and 35.45 acres for future
development. The staff consists of nine full-time employees, as well as part-time and seasonal employees
for the swimming pool, summer camp, sports activities and other park functions.
ECONOMIC CONDITION AND OUTLOOK
The City of Friendswood, Texas, is located 20 miles southeast of downtown Houston in southern Harris
and northern Galveston Counties.The City's population is currently estimated at 30,465. The economy is
linked closely to that of Houston and the Clear Lake area. The City of Friendswood is a member of the
Clear Lake Area Economic Development Foundation (CLAEDF). CLAEDF is charged with retaining
current businesses and associated jobs, as well as recruiting other corporations to the area.
The Clear Lake area's economy has become more diverse, featuring aerospace, petrochemical, tourism,
boating and recreation industries. The NASA/Johnson Space Center, the Bayport petrochemical complex,
Ellington Field and the University of Houston-Clear Lake are key players in the area's economy.
According to CLAEDF estimates, "750,000 people work within a 45-mile drive time of the Clear Lake
area. The local economic base, comprised of an estimated 7,000 establishments and 93,000 employees,
rests solidly on four supports and a bedroom community linkage to Houston. The first support is the
aerospace industry. An equally large and stable second support is the specialty chemical industry. The
third and growing component is tourism, and the fourth is the boating and recreation sector. The region's
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high-tech work force, strategically located between the Texas Medical Center and the University of Texas
Medical Branch at Galveston, attracts many new bio-technology, computer software, engineering and
special chemical services companies." With a unique blend of high-tech aerospace and specialty
chemical industry base,upscale commercial,retail and boating facilities,and a sought-after quality of life,
the region continues to be a robust part of Houston's regional economic expansion.
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MAJOR INITIATIVES
For the Year.
During the 1997-98 budget preparation, the City identified several important programs needed to meet
citizens' needs for services and to safeguard the environment, in conformity with applicable federal and
state standards. The following items will provide a summary of these programs.
Streets and Drainage
1997-98 was the fourteenth year of the city's concrete street improvement program. Reconstruction of
San Joaquin Parkway and associated sidewalks was 88%complete at September 30, 1998, with $813,133
expended. Estimated cost to complete the project is $140,174. A concrete ditch to improve drainage was
constructed in Melodywood Estates subdivision for $29,166. Other street and drainage projects
' completed include a sound wall along FM 528 at Somerset subdivision, $173,693; flashing yellow light at
Wedgewood Elementary School, $9,175; and, Melodywood Detention Pond improvements, $7,500. The
Somerset sound wall was completely funded by Galveston County. A "speed hump" pilot program was
started this year,with two"humps"installed on Imperial Drive and Windsor, at a cost of$3,980.
Parks
The City exercised its option to purchase the third and final tract of approximately 22 acres for Centennial
Park. The property, which cost $218,173, was then sold to the Friendswood Independent School District
(FISD). After completing this sale, the City and FISD negotiated contracts to swap acreage and jointly
develop the park.
The City also made improvements to Friendswood Sports Park, which was purchased in 1996-97.
Lighting was replaced on two large soccer fields at a cost of$14,950. Two parking lots were improved
with crushed concrete at a cost of$11,992. An irrigation system was installed in the median on FM 518
between Whispering Pines and Oak Drive. This system, designed to provide water to the Crepe Myrtle
trees and Indian Hawthorne bushes,was completed at a cost of$21,913.
Water and Sewer
rTwo sewer line replacement projects begun in 1996-97 were completed during 1997-98. 1,105 feet of the
Coward's Creek sewer line, adjacent to Timberfield Estates subdivision, was replaced at total cost of
' $139,132. The Shady Oaks 18" sewer line in the Wedgewood subdivision was completed at a cost of
$113,850.
In addition, $50,000 was expended on a water and sewer system study. $23,500 went to evaluate the
water distribution system with emphasis on supply to "The Forest" subdivision and better utilization of
water well # 7. Water well #4, located in Sun Meadow, was also evaluated at a cost of$7,500. $6,500
was spent to evaluate sanitary sewer service for the area bounded by Clear Creek, FM 528 and the City
limits. The project also included $12,500 to evaluate sanitary sewer service to the area served by the 27"
trunk line, to determine capacity availability for "The Forest" subdivision. At the completion of these
studies, the various projects were prioritized and a contract was signed with Wayne Smith & Associates
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to engineer the design and construction of the Blackhawk, FM2351 and water well #6 discharge water
lines. The cost of this engineering project was$109,223.
Fire
Engine number 84 and Rescue 70 were replaced with one fire pumper with the necessary tools and
equipment to also perform the functions of Rescue 70. Placing this new pumper at Fire Station #1 also
allows the relocation of two existing pumpers to provide better fire protection in other parts of the City.
$235,052 was budgeted for this purpose in 1996-97. An additional $58,299 was required to complete this
acquisition.
Ambulance 49 is a 1991 Ford F-150. The Ambulance "box" was removed,reconditioned and remounted
on a new chassis. This work was completed at a cost of$52,000.
One of the most important pieces of equipment firefighters use is their self-contained breathing apparatus.
The department used an air compressor at Station 1 to fill the air cylinders. A new air system to be
housed at Fire Station 2 and 20 spare air cylinders were obtained at a cost of$51,168.
FOR THE FUTURE
Streets I
$212,000 is budgeted for construction of concrete streets. This funding will allow the complete reconstruction of Magnolia. $40,000 is also allocated for the sidewalk program. An additional $60,000 is
budgeted for the asphalt street program. Linson Lane is the only street currently identified in this year's
program. $12,500 is budgeted to continue the"speed hump"program begun in 1997-98.
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Drainage
$125,000 is set aside for neighborhood drainage projects. The following four areas are scheduled for
work in 1998-99: Imperial Estates — Royal Court; Polly Ranch; Stevenson Park and El Dorado/Lundy
Lane.
Detention pond maintenance is planned for the Boca Raton and Somerset facilities at an estimated cost of
$102,000.
Parks and Recreation I
35.45 acres are now available to begin development of the City's new Centennial Park. This property
will be developed into a multipurpose complex that the entire community can enjoy. The new park will
provide a mixture of open space,natural space,recreational facilities and athletic facilities,including: two
playground areas, jogging/walking trail, basketball facilities, soccer and football fields, park pavilions,
concession stand,restrooms and parking. An interlocal agreement between the City and the Friendswood
Independent School District, in which a new FISD Jr. High School will be built on an adjoining 22 acres,
was completed. After construction is fmished, the City and School District will share facilities and
maximize the use of our citizens' tax dollars. The City has accumulated $536,907 for development
purposes. Construction will begin during the 1998-99 fiscal year.
The City's only public swimming pool, located at Stevenson Park,has required numerous repairs over the
years. $60,000 is budgeted for a complete resurfacing.
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City Facilities
Two city facilities are scheduled for roof replacements: the Activities Building and the Public Safety
Building. The projected cost for these improvements is $57,600.
' In addition, two projects budgeted in prior fiscal years are expected to begin in 1998-99. The Activities
Building renovation is estimated at $106,400. Construction was delayed to obtain a matching grant from
the Texas Parks and Wildlife Commission. A feasibility study for a new public safety building is
ebudgeted for$15,000.
Public Works
The underground fuel tanks at the Public Works facility are slated for removal. The soil will be examined
for contamination and remediated,if necessary. This project is budgeted at$60,000.
The acquisition of a new gradall is planned for 1998-99. This piece of equipment will be used for various
public works projects, including drainage improvements and water and sewer line repairs. The equipment
is estimated at $166,000, with $38,000 funded in the upcoming year. The balance will be financed over
four years.
Water and Sewer
$50,000 is set aside for the repair of various water and sewer lines within the City's neighborhoods. No
specific lines were identified.
' Two more lift stations were added to the City's Supervisory Control And Data Acquisition (SCADA)
monitoring system at a projected cost of$10,000 each.
A water project that was identified in last year's water and sewer engineering study is planned for 1998-
99. This project will increase water pressure in the FM 2351 and Blackhawk area, including "The Forest"
subdivision to the north. This will include replacing the existing 8" water line with a 12" line on
Blackhawk Boulevard from Laura Leigh to Abercreek; replacing an 8" line with a 16" line on FM 2351
from Blackhawk to Clear Creek and from the creek to FM 518. The final piece of the project will require
replacing an 8" water plant discharge line with a 12" line. Construction is estimated to cost $600,000.
The project is expected to take approximately six months to complete.
Department Focus. Each year the City will select a department to highlight for its efforts and
accomplishments. For 1997-98 the City Secretary's Office has been chosen for review.
Reporting directly to the City Council, this office provides information, as requested, to the community.
The City Secretary's Office maintains custody of all municipal records and administers the records
management program. The 715t State Legislature required that all cities develop a records management
program that provides efficient, economical and effective control over the creation, distribution,
' organization,maintenance, use and disposition of all City records.
The City Secretary attends and records the minutes of all official meetings of Council; coordinates the
appointment of board and commission members and publishes the official notices of the City. In addition
to the City Secretary,the staff consists of two full-time secretaries.
This office is responsible for conducting all City elections and coordinates a joint election with the Clear
Creek Drainage District. Tabulation services for the Friendswood Independent School District elections
are also provided on a contract basis.
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FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure is designed to provide
reasonable,but not absolute, assurance that these objectives are met. The concept of reasonable assurance
recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the
valuation of costs and benefits requires estimates and judgments by management. I
In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget approved by City Council.
The City legally adopts annual budgets for the General, Special Revenue, and Debt Service Funds.
Annual and project budgets are also adopted for the Proprietary and Capital Projects Funds,respectively.
The level of budgetary control (that is, the level at which expenditures cannot legally exceed the
appropriated amount) is established by department within a 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 I
Revenues for general government functions (General, Special Revenue and Debt Service Funds) totaled
approximately $10.8 million in 1997-98, an increase of approximately $149,000 over 1996-97 revenues.
The amount of revenue from various sources and the increase (decrease) over the preceding year are
shown in the following tabulation:
Increase
Percent of (Decrease) Percent
Revenue Source Amounts Total from 1997 Change
Property taxes $ 5,957,486 51.2% $ 210,680 3.7%
Sales taxes 1,805,791 15.5% 176,037 10.8%
Franchise tax 801,709 6.9% (57,669) -6.7%
Sanitation 982,432 8.4% (28,669) -2.8%
Fines and forfeitures 304,017 2.6% (43,653) -12.6%
Permits and fees 699,432 6.0% 229,763 48.9%
Intergovernmental 346,879 3.0% 335,369 2913.7%
Earnings on investments 222,586 1.9% (55,318) -19.9%
Other 525,228 4.5% 263,898 101.0%
$ 11,645,560 100.0% $ 1,030,438 9.7%
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Assessed valuations of approximately $987 million represented an increase of 4.7 percent over the
preceding year. The net taxable assessed valuations are set at 100%of market value as determined by the
Galveston County and Harris County Appraisal Districts, less exemptions or abatements. The adjusted
tax levy for the 1997-98 fiscal year of approximately$5.88 million, increased by approximately$191,000
or 3.25 percent over the prior year tax levy. Current tax collections of approximately $5.84 million,or 99
percent of the tax levy, are up approximately $192,000 (3.3%) from last year. The ratio of total
collections (current and delinquent)to the current tax levy was 100.86 percent.
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1 The City had approximately $238,000 in delinquent taxes outstanding as of September 30, 1998 which
represents 4.05 percent of the current tax levy. Delinquent tax collections were up approximately$36,000
from the prior fiscal year.
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Allocations of property tax levy for the 1998 fiscal year and the preceding two fiscal years are as follows
(tax rate per$100 of assessed value):
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Purpose 1997-98 1996-97 1995-96
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General Fund $ 0.5276 $ 0.4961 $ 0.4680
IGeneral Obligation Debt 0.0685 0.1084 0.1476
Total Tax Rate $ 0.5961 $ 0.6045 $ 0.6156
I The City's sales taxes increased byapproximately $176 000. This increase is attributable to the growth in
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commercial establishments within the City.I
New home and commercial construction remained approximately the same as in prior year with a slight
decline in building permits and fees. Permits and fees decreased by approximately $3,400. The total
1 amount of new construction for the current fiscal year was approximately$41.5 million, down from$42.4
million for 1996-97,a decrease of.02 percent.
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Expenditures for general government functions (General, Special Revenue and Debt Service Funds)
totaled approximately $11.2 million in 1997-98, an increase of approximately $264,000 over 1996-97
expenditures. Increases or (decreases) over the preceding year in the levels of expenditures for major
Ifunctions of the City are shown in the following tabulation:
Increase
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Percent of (Decrease) Percent
Function Amounts Total from 1997 Change
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General government $ 1,937,096 16.0% $ (192,377) -9.0%
Public safety 4,043,792 33.3% 197,396 5.1%
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Public works 1,946,903
988,422 16.0% 1,025,660 111.3%
Sanitation 8.1% 48,437 5.2%
Community development 413,024 3.4% 50,569 14.0%
I Community services 1,904,926 15.7% 154,417 8.8%
Debt service 909,369 7.5% (64,532) -6.6%
$ 12,143,532 100.0% $ 1,219,570 11.2%
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IGeneral government expenditures decreased by approximately $192,000 due to the City's legal
expenditures for utility rate cases and litigation related to a pipeline dispute during the prior year.
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Community development expenditures increased by $51,000 due to the hiring of a Community
Development Director position
Debt Service expenditures decreased by approximately $64,500. The decrease is due to reductions in
principal and interest payments for the year.
Fund balances in the major operating funds were maintained at budgeted levels. Net changes in these 1
fund balances are tabulated below:
Net I
Beginning Increase Ending Fund
Fund Fund Balance (Decrease) Balance
General $ 1,142,798 $1,467,161 $ 2,609,959
Special Revenue 108,837 (109,352) (515)
Debt Service 392,220 (204,312) 187,908
Capital Projects 997,161 (997,161)
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Enterprise Fund Operations
The water and sewer utility operation continued to show gains in number of customers. Comparative data
for the past two fiscal years are presented in the following tabulation:
1998 1997
Operating revenue $5,789,453 $ 4,744,557
Operating expenses before depreciation 2,678,240 2,806,913
Net Revenue Available for Debt Service $3,111,213 $ 1,937,644
Revenue Bond Debt Service $ 36,032 $ 52,503
Coverage(income available for revenueI
bond debt service divided by annual
revenue bond debt service) 86.3 36.9
Number of customersI
Water 8,893 8,534
Sewer 8,377 8,199
Non-Expendable Trust Fund Operation I
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 year. Fund balance was $77,709 as of
September 30, 1998.
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Debt Administration
The ratio of net general obligation debt paid from governmental fund resources 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. At year end,these indicators were as follow:
Percent of
Debt to
I Description Amount Assessed Debt Per Value Capita
Net direct bonded debt $ 3,214,207 0.34% $ 98
Overlapping debt 60,846,975 6.46% 1,856
Total Direct and
Overlapping Debt $ 64,061,182 6.80% $ 1,954
The City's latest bond issues were rated Aaa by Moody's Investors Service, and AAA by Standard and
Poor's. The City did not have any new debt issuances in fiscal year ending 1998. During the year the
City's debt retirements amounted to $935,706 of General Long Term Debt Group debt and $1,645,010 of
Enterprise Fund debt.
Cash Management
Cash temporarily idle during the year was invested in Texpool, Lone Star Investment Pool (LSIP) and
Local Government Investment Cooperative (LOGIC). Yields on Texpool ranged from 5.55 percent to
5.67 percent during the year ended September 30, 1998, the City earned $66,880 from Texpool. The
City's investments in LSIP earned $59,074. The City's investments in LOGIC earned $60,995. The City
also invested in US governmental securities, T-Bills and Notes. The City earned approximately $62,683
on these investments. Interest earned for the year was approximately$249,632.
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 were held by a financial institution's trust department in the
City's name. All investments held by the City during the year end at September 30, 1998 which were
subject to categorization are classified in the category of lowest credit risk as defined by the
Governmental Accounting Standards Board. The investments in Texpool LSIP and LOGIC are not
evidenced by securities that exist in physical or book entry form and accordingly are not subject to credit
risk categorization.
IRisk Management
The City has a risk management program to protect the City from exposure to various risks of loss related
to torts; theft of, damage to, and destruction of assets, errors and omissions; injuries to employees; and
natural disasters. The risk management program encompasses obtaining property and liability insurance
through third party commercial insurance carriers to cover the City for the various risks of loss.
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OTHER INFORMATION
Independent Audit. The City Charter requires an annual audit of the financial statements of all of the
various funds of the City by independent certified public accountants. The accounting firm of Null
Lairson, P.C., Has performed such an audit 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, 1997. This was the eleventh 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 Administrative Services Department. Each member of the
department has my sincere appreciation for the contributions made in the preparation of this report.
In closing, I also express my thanks to the Mayor,members of the City Council and the City Manager for
their leadership, interest and support in conducting the financial operations of the City in a responsible
and progressive manner.
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Sincerely,
Cam— �.'7 1
Roger C. Roecker
Director of Administrative Services I
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CITY OF FRIENDSWOOD
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I ORGANIZATION CHART
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MAYOR
AND
ICOUNCIL
IAPPOINTED FRIENDSWOOD CITY CITY MUNICIPAL CITY
BOARDS AND VOLUNTEER SECRETARY ATTORNEY JUDGE PROSECUTOR
AD HOC FIRE
ICOMMITTEES DEPARTMENT
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CITY MANAGER
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IADMINISTRATIVE COMMUNITY POUCE FIRE PUBUC COMMUNITY
SERVICES DEVELOPMENT MARSHAL/ WORKS SERVICES
I EMERGENCY
MANAGEMENT
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
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City of Friendswood,
Texas
For its Comprehensive Annual I
Financial Report
for the Fiscal Year Ended
September 30, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
k
GNAOA President
q . .
you,NOP
Executive Director
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ICITY OF FRIENDSWOOD,TEXAS
PRINCIPAL OFFICIALS
ISeptember 30, 1998
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Elected Officials Position Term
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Expires
Harold L. Whitaker Mayor May 2000
Kitten Hajecate Council Member—Position No. 1 May 2000
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Jerry Erickson Council Member—Position No.2 May 1999
Tom Manison Council Member—Position No. 3 May 2000
IKim Wayne Brizendine Council Member—Position No.4 May 2001
Aline S. Dickey Council Member—Position No. 5 May 1999
IMel P. Measeles Council Member—Position No. 6 May 2001
IAppointed Officials Position
' Ronald E. Cox City Manager
Debris McKenzie City Secretary
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Jon Branson Rebecca Carbone Director of Community Services
Tax Assessor-Collector
Mickiel G. Hodge Community Development Director
IMelvin L.Meinecke Director of Public Works
Olson& Olson City Attorney
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Terry Byrd Fire Marshal/ Emergency Management
Coordinator
IRoger C. Roecker Director of Administrative Services
Jared D. Stout Police Chief
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James W. Woltz Judge—Municipal Court
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11 Greenway Plaza,Suite 1515 Null•Lairson One Sugar Creek Center Blvd., Suite 1150
Houston,TX 77046 Sugar Land,TX 77478
(713)621-1515•Fax:(713)621 I570 CERTIFIED PUBLIC ACCOUNTANTS (281)242-8600•Fax:(281)242-7333
PROFESSIONAL CORPORATION
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Independent Auditors' Report
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To the Honorable Mayor and Members
of the City Council
City of Friendswood, Texas
We have audited the accompanying general-purpose financial statements of the City of
Friendswood, Texas, as of and for the year ended September 30, 1998. These general-purpose
financial statements are the responsibility of the City's management. Our responsibility is to
1 express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with
generally accepted auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the general-purpose-financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the general-purpose financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall general-purpose financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
' Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year
2000 Issues, requires disclosure of certain matters regarding the year 2000 issue. The City has
included such disclosures in Note 14. Because of the unprecedented nature of the year 2000
issue, its effects and the success of related remediation efforts will not be fully determinable until
the year 2000 and thereafter. Accordingly, insufficient audit evidence exists to support the
City's disclosures with respect to the year 2000 issue made in Note 14. Further, we do not
e provide assurance that the City is or will be year 2000 ready, that the City's year 2000
remediation efforts will be successful in whole or in part, or that parties with which the City does
business will be year 2000 ready.
In our opinion, except for the effects of such adjustments, if any, as might have been determined
to be necessary had we been able to examine evidence regarding year 2000 disclosures, the
' general-purpose financial statements referred to above present fairly, in all material respects, the
financial position of the City of Friendswood, Texas, as of September 30, 1998, and the results of
its operations and the cash flows of its proprietary fund type and similar trust fund for the year
then ended in conformity with generally accepted accounting principles.
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' 14
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Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements and schedules listed in the table of contents are presented for purposes of additional
analysis and are not a required part of the City's general-purpose financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the general-
purpose financial statements and, in our opinion, is fairly presented in all material respects in
relation to the general-purpose financial statements taken as a whole.
The Required Pension System supplementary Information listed in the table of contents is not a
required part of the general-purpose financial statements but is supplementary information
required by the Government Accounting Standards Board. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the additional information. However, we did not audit the
information and express no opinion on it.
Houston, Texas
March 12, 1999
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IGENERAL PURPOSE FINANCIAL STATEMENTS
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CITY OF FRIENDSWOOD, TEXAS
COMBINED BALANCE SHEET-
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1998
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Governmental Fund Types
Special Debt
General Revenue Service
Assets and Other Debits
Assets
Cash and cash equivalents $ 1,992,434 $ 4,572 $ 438
Investments 1,566,415 189,670
Receivables
Taxes 184,605 53,051
Customer accounts 78,336
Interest 5,310
Other 180,765
Due from other governments 53,781
Due from other funds
Inventory 5,488
Prepaids and other assets 16,509 1
Restricted cash and investments
Fixed Assets:
General Fixed Assets
Enterprise system property,plant
and equipment at cost,less
accumulated depreciation
Non-expendable trust assets
Other Debits
Amount available for debt service
Amount to be provided for retirement
of general long-term debt
Total Assets and Other Debits $ 4,083,643 $ 4,572 $ 243,159
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See Notes to Financial Statements.
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IExhibit A-1
Page 1 of 2
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Proprietary Fiduciary
Fund Type Fund Type Account Groups Totals
Trust and General General Long- (Memorandum Only)
Enterprise Agency Fixed Assets Term Debt 1998 1997
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$ 606,539 $ 20,509 $ $ $ 2,624,492 $ 2,007,896
I191,547 1,947,632 1,912,924
237,656 230,990
848,865 927,201 881,851
I5,310 42,116
82,814 263,579 242,925
53,781 18,443
201,589
5,488 10,472
I62,181 78,690 101,148
548,020 548,020 282,024
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30,414,780 30,414,780 28,816,843
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24,512,580 24,512,580 25,142,528
I57,200 57,200 57,200
I187,908 187,908 392,220
3,539,077 3,539,077 3,717,460
1 $26,852,546 $ 77,709 $30,414,780 $ 3,726,985 $ 65,403,394 $ 64,058,629
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CITY OF FRIENDSWOOD, TEXAS
COMBINED BALANCE SHEET 3
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ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1998
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Governmental Fund Types
Special Debt
General Revenue Service
Liabilities.Equity.and Other Credits
Liabilities
Accounts payable $ 396,911 $ 5,087 $ 2,200
Accrued liabilities 220,353
Compensated absences 574,087
Customer deposits
Deferred revenue 282,333 53,051
Bonds payable
Certificates of obligation payable
Obligations under capital leases111
Due to other funds
Accretion on premium compound interest
bonds
Total Liabilities 1,473,684 5,087 55,251
Equity and Other Credits
Investment in general fixed assets
Contributed capital
Retained earnings
Fund Balances
Reserved for encumbrances 448,068
Reserved for debt services 187,908
Reserved for endowment
Unreserved:
Designated for emergency operations 825,706 4,491
Designated for construction 1,226,913
Undesignated 109,272 (5,006)
Total Equity and Other Credits 2,609,959 (515) 187,908
Total Liabilities,Equity,and
Other Credits $ 4,083,643 $ 4,572 $ 243,159
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See Notes to Financial Statements.
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I Exhibit A-1
Page 2 of 2
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11 Proprietary Fiduciary
Fund Type Fund Type Account Groups Totals
I Trust and General General Long- (Memorandum Only)
Enterprise Agency Fiaed Assets Term Debt 1998 1997
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I $ 221,862 $ $ $ $ 626,060
341,066 $ 654,694
120,713 470,116
74,942 649,029 672,801
230,065 230,065 18,742
I335,384 342,652
3,103,851 1,216,927 4,320,778 5,580,778
5,585,000 1,990,000 7,575,000 7,810,000
I 153,252 153,252 180,418
201,589
I 300,114 366,806 666,920 586,970
9,636,547 3,726,985 14,897,554 16,518,760
I30,414,780 30,414,780 28,816,843
12,435,358 12,435,358 12,435,358
I4,780,641 4,780,641 3,568,550
448,068 239,778
187,908 392,220
67,200 67,200 35,334
830,197 1,927,411
Il1,226,913
10,509 114,775 124,375
17,215,999 77,709 30,414,780 50,505,840 47,539,869
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$26,852,546 $ 77,709 $30,414,780 $ 3,726,985 $ 65,403,394 $ 64,058,629
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CITY OF FRIENDSWOOD, TEXAS
3
COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES
Year Ended September 30,1998
Governmental Fund Types
Special DebtI
General Revenue Service
Revenues
Property taxes $ 5,257,813 $ $ 699,673
Sales taxes 1,805,791
Franchise fees 801,709
Sanitation 982,432
Fines and forfeitures 304,017
Permits and fees 699,432
Intergovernmental 346,807 72
Interest on investments 216,917 285 5,384
Other 331,451 193,777
Total Revenues 10,746,369 194,134 705,057
Expenditures
Current:
General government 1,937,096
Public safety 3,740,306 303,486
Public works 1,946,903
Sanitation 988,422
Community development 413,024
Community services 1,904,926
Capital outlay
Debt Service:
Principal retirement 709,094
Interest and fiscal charges 200,275
Total Expenditures 10,930,677 303,486 909,369
Revenues Over(Under)Expenditures (184,308) (109,352) (204,312) III
Other Financing Sources Wsesl
Operating transfers in 557,983
Operating transfers(out)
Proceeds from issuance of debt 96,325
Total Other Financing
Sources(Uses) 654,308
Revenues and Other Financing Sources
Over(Under)Expenditures
and Other Financing(Uses) 470,000 (109,352) (204,312)
Fund balances-Beginning 1,142,798 108,837 392,220
Residual equity transfer in 997,161
Fund Balances-Ending $ 2,609,959 $ (515) $ 187,908
See Notes to Financial Statements. II
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Exhibit A-2
ITotals
I (Memorandum Only)
Capital September 30, September 30,
Projects 1998 1997
I $ $ 5,957,486 1,805,791 $ 5,746,806
1,629,754
801,709 859,378
I 982,432 304,017 1,011,101
347,670
699,432 469,669
346,879 11,510
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222,586 277,904
525,228 261,330
11,645,560 10,615,122
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1,937,096 2,129,473
I 4,043,792 3,846,396
1,946,903 921,243
988,422 939,985
I 413,024 362,455
1,904,926 1,750,509
504,491
I709,094 899,000
200,275 74,901
12,143,532 11,428,453
II (497,972) (813,331)
I 557,983 824,163
(616,511)
96,325 411,376
654,308 619,028
I156,336 (194,303)
997,161 2,641,016 2,835,019
1 (997,161)
$ $ 2,797,352 $ 2,640,716
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CITY OF FRIENDSWOOD, TEXAS
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COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES-BUDGET(GAAP BASIS)AND ACTUAL
GENERAL,SPECIAL REVENUE,AND DEBT SERVICE FUNDS
Year Ended September 30, 1998
General Fund I
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Property taxes $ 5,191,688 $ 5,257,813 $ 66,125
Sales taxes 1,660,613 1,805,791 145,178
Franchise fees 761,188 801,709 40,521
Sanitation 982,692 982,432 (260)
Fines and forfeitures 382,550 304,017 (78,533)
Permits and fees 422,804 699,432 276,628
Intergovernmental 391,422 346,807 (44,615)
Interest on investments 207,285 216,917 9,632
Other 234,769 331,451 96,682
Total Revenues 10,235,011 10,746,369 511,358
Expenditures
Current:
General government 2,169,063 1,937,096 231,967
Public safety 3,634,708 3,740,306 (105,598)
Public works 2,258,253 1,946,903 311,350
Sanitation 984,633 988,422 (3,789)
Community development 433,756 413,024 20,732
Community services 2,824,475 1,904,926 919,549
Debt Service:
Principal retirement
Interest and fiscal charges
Total Expenditures 12,304,888 10,930,677 1,374,211
Revenues Over(Under)Expenditures (2,069,877) (184,308) 1,885,569
Other Financing Sources(Usesi
Operating transfers in 557,983 557,983
Operating transfers(out)
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Proceeds from issuance of long-term debt 96,325 96,325
Total Other Financing Sources(Uses) 654,308 654,308
Revenues and Other Financing Sources Over I
(Under)Expenditures and Other
Financing(Uses) (1,415,569) 470,000 1,885,569
Fund balances-Beginning 1,142,798 1,142,798
Residual equity transfer in 997,161 997,161
Fund Balances-Ending $ 724,390 $ 2,609,959 $ 1,885,569
See Notes to Financial Statements.
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IExhibit A-3
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1 Special Revenue Fund Debt Service Fund
Variance Variance
Favorable Favorable
1 Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ $ $ $ 676,780 $ 699,673 $ 22,893
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72 72
I 2,525 285 (2,240) 14,250 5,384 (8,866)
135,252 193,777 58,525
137,777 194,134 56,357 691,030 705,057 14,027
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I291,496 303,486 (11,990)
I1,928 1,928
I 709,094 709,094
201,185 200,275 910
293,424 303,486 (10,062) 910,279 909,369 910
I (155,647) (109,352) 46,295 (219,249) (204,312) 14,937
I (840) 840
II (840) 840
I (156,487) (109,352) 47,135 (219,249) (204,312) 14,937
108,837 108,837 392,220 392,220
I $ (47,650) $ (515) $ 47,135 $ 172,971 $ 187,908 $ 14,937
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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, 1998
Proprietary Fiduciary
Fund Type Fund Type
Non-Expendable
Enterprise Trust
Operating Revenues
Water charges $ 3,248,315 $
Sewer charges 1,889,175
Fees and penalties 571,111
Other 80,852
Interest on investments 1,074
Total Operating Revenues 5,789,453 1,074 3
Operating Expenses
Water operations 961,119
Sewer operations 1,265,472
Operation administration 313,747
Finance administration 69,645 1,467
Computer services 14,388
Insurance
Engineering 53,869
Depreciation 817,601
Total Operating Expenses 3,495,841 1,467
Operating Income(Loss) 2,293,612 (393)
Nonoperating Revenues(Expenses)
Interest revenue 25,972
Interest expense (549,510)
Total Nonoperating
Revenues(Expenses) (523,538)
Income(Loss)Before Operating Transfers 1,770,074 (393) 1
Operating Transfers IajOutl
Operating transfers in
Operating transfers(out) (557,983)
Net Income(Loss) 1,212,091 (393)
Retained earnings/Fund balance-beginning of year(as restated) 3,568,550 78,102
Retained Earnings/Fund Balance-End of Year $ 4,780,641 $ 77,709
See Notes to Financial Statements.
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IExhibit A-4
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I Totals
(Memorandum Only)
September 30, September 30,
I1998 1997
$ 3,248,315 $ 2,589,842
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1,889,175 571,111 1,947,140
140,717
80,852 66,858
I 1,074 734
5,790,527 4,745,291
I961,119 850,121
1,265,472 1,485,596
I 313,747 335,335
71,112 15,398
14,388
a 37,345
53,869 83,118
817601.00 780,996
I3,497,308 3,587,909
2,293,219 1,157,382
I25,972 63,626
(549,510) (522,273)
I (523,538) (458,647)
1,769,681 698,735
I30,180
(557,983) (237,832)
1 1,211,698 491,083
3,646,652 3,155,569
I $ 4,858,350 $ 3,646,652
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CITY OF FRIENDSWOOD, TEXAS7
COMBINED STATEMENT OF CASH FLOWS-
PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND
Year Ended September 30, 1998
Proprietary Fiduciary
Fund Type Fund Type
Non-Expendable i
Enterprise Trust
Cash Flows from Operating Activities
Operating Income(Loss) $ 2,293,612 $ (393) I
Adjustments to Reconcile Operating Income(Loss)to
Net Cash Provided(Used)by Operations
Depreciation and amortization 817,601
(Increase)Decrease in investment earnings
(Increase)in accounts receivable (150,867)
(Increase) Decrease in due from other funds
(Increase)Decrease in prepaids and other assets 808
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Increase in accounts payable and accrued liabilities (149,061)
Increase(Decrease)in due to other funds
Increase(Decrease)in customer deposits 211,323
Increase(Decrease)in compensated absences 3,028
Net Cash Provided(Used)by Operating Activities 3,026,444 (393)
Cash Flows fromj4oncapital Financing Activities I
Operating transfers in
Operating transfers(out) (557,983)
Net Cash(Used)by Noncapital Financing Activities (557,983)
Cash Flows from Capital and Related Financing.
Activities
Contributed capital
Capital expenditures for property, plant,and equipment (187,653)
Principal payments on long-term debt (1,095,500)
Interest payments on long-term debt (513,531)
Net Cash(Used)by Capital and Related Financing Activities (1,796,684)
Cash Flows from Investing Activities I
Purchase of investments (55,430)
Proceeds from sale of investments
Increase in joint venture (60,490) I
Interest on investments 25,972
Net Cash(Used)by Investing Activities (89,948)
Net Increase(Decrease)in Cash and Cash Equivalents 581,829 (393) I
Cash and cash equivalents,beginning of year 317,199 20,902
Cash and Cash Equivalents,End of Year S 1,154,559 S 20,509
Unrestricted cash and cash equivalents S 606,539 $ 20,509
Restricted cash and cash equivalents 548,020
Cash and Cash Equivalents,End of Year S 1,154,559 $ 20,509
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IExhibit A-5
ITotals
(Memorandum Only)
I1998 1997
I $ 2,293,219 $ 1,157,382
I 817,601 780,996
(734)
(150,867) (77,291)
81,250
808 9,283
(149,061) 106,716
(44,037)
I 211,323 (152,313)
3,028 (2,664)
3,026,051 1,858,588
I30,180
(557,983) (237,832)
I (557,983) (207,652)
1 339,466
(187,653) (1,159,020)
(1,095,500) (1,310,950)
I (513,531) (522,273)
(1,796,684) (2,652,777)
I (55,430)
555,278
I (60,490) (3,278)
25,972 64,618
(89,948) 616,618
I 581,436 (385,223)
338,101 723,324
I $ 1,175,068 $ 338,101
I $ 627,048 $ 251,118
548,020 86,983
$ 1,175,068 S 338,101
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Friendswood, Texas(the City) was incorporated on October 15, 1960. The City charter provides
for a City Council-City Manager form of government. The Mayor and six Council Members are elected from
the City at large serving three year terms. Currently, the City charter provides for a Council term limitation
of three terms.
The City Council is the principal legislative body of the City. The City Manager is appointed by a majority
vote of the City Council and is responsible to the Council for the administration of all the affair 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
1 Mayor presides at meetings of the City Council and can vote.
The City provides the following services: public safety, streets, parks and recreation, library, water and
sewer, sanitation, planning and zoning, building inspection, code enforcement, and general administrative
services.
A. Reporting Entity
The City is an independent political subdivision of the State of Texas governed by an elected six member
council and a mayor and is considered a primary government. As required by generally accepted
accounting principles, these general purpose financial statements have been prepared based on
considerations regarding the potential for inclusion of other entities, organizations, or functions as part of
the City's financial reporting entity. Based on these considerations, no other entities have been included
in the City's reporting entity. Additionally, as the City is considered a primary government for financial
reporting purposes, its activities are not considered a part of any other governmental or other type of
reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations, or functions in the
City's financial reporting entity are based on criteria prescribed by generally accepted accounting
principles. These same criteria are evaluated in considering whether the City is a part of any other
governmental or other type of reporting entity. The overriding elements associated with prescribed
criteria considered in determining that the City's financial reporting entity status is that of a primary
government are that it has a separately elected governing body; it is legally separate; and it is fiscally
independent of other state and local governments. Additional prescribed criteria under generally accepted
accounting -principles include considerations pertaining to organizations for which the primary
government
financially accountable; and considerations pertaining to other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete.
As indicated in Note 13, the City participates in a joint venture (Blackhawk Regional Waste Treatment
Plant) with three other entities, under the authority of the Gulf Coast Waste Disposal Authority. This
venture is accounted for under the equity method in the City's Enterprise Fund.
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CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
B. Fund Accounting
The accounts of the City are organized on the basis of funds or account groups, each of which is
considered to be a separate accounting entity. The operations of each fund are accounted for by providing
a set of self-balancing accounts which consist of each fund's assets, liabilities, fund equity, revenues, and
expenditures or expenses, as appropriate. The following paragraphs describe the various fund types and
account groups.
Governmental Fund Types
General Fund(Budgeted)
The General Fund accounts for the resources used to finance all the operations of the City not properly
included in other funds. The principal sources of revenue of the General Fund include property taxes,
sales and use taxes, franchise taxes, fmes and forfeitures, permits and fees, and charges for sanitation
services. Expenditures include general government, public safety, public works, community
development, and community services.
Special Revenue Funds(Budgeted)
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted or designated for specified activities.
Debt Service Fund(Budgeted)
The Debt Service Fund is used to account for the accumulation of resources for the retirement of
general long-term debt and related costs. The primary source of revenue of the Debt Service Fund is
property taxes.
Capital Projects Funds(Unbudgeted)
The Capital Projects Funds are used to account for the financial resources to be used for the
acquisition or construction of major capital facilities financed principally by proceeds of long-term
debt. Capital Project Funds are budgeted on a project rather than an annual basis. During 1997-98,
the City reported a residual equity transfer of fund balance from the Capital Projects Fund to the
General Fund. The Capital Projects Fund was only utilized for small capital projects by transfering
funds from the General Fund in order to finance these projects.
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Proprietary Fund Type(Unbudgeted)
Enterprise Fund
The Enterprise Fund is used to account for the operations that provide water and wastewater utility
services to the public. These services are financed and operated in a manner similar to private
business enterprises where the intent of the Council is that costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis will be financed or recovered
primarily through user charges. Proprietary fund types follow generally accepted accounting
principles prescribed by the Governmental Accounting Standards Board(the GASB), and all Financial
Accounting Standards Board's standards issued before November 30, 1989. After this date, the City
accounts for its proprietary funds as presented by the GASB.
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CITY OF FRIENDSWOOD
I NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
rB. Fund Accounting(continued)
■ Fiduciary Fund Type(Unbudgeted)
Trust Fund
The Non-Expendable Trust Fund(1776 Park) is used to account for assets held by the City in a trustee
capacity or as an agent for individuals, private organizations, other governments and/or other funds.
This fund is accounted for on the same basis as proprietary funds.
Account Groups
General Fixed Assets
The General Fixed Assets Account Group is used to account for the City's land, buildings,
improvements, and equipment,except those recorded in proprietary and fiduciary fund types.
General Long-Term Debt
This account group is used to account for the City's liability for general obligation bonds, certificates
of obligation, notes payable, and capital leases which are payable from governmental fund resources.
The debt is offset by the amount available in the Debt Service Fund and the amount to be provided in
future years.
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C. Basis of Accounting
The basis of accounting is the method by which revenues and expenditures or expenses are recognized lin
the accounts and reported in the financial statements. The accounting and financial reporting treatment
applied to a fund is determined by its measurement focus. All Governmental Fund Types are accounted
for using a current financial resources measurement focus. With this measurement focus, only current
assets and current liabilities generally are included on the balance sheet. Operating statements of these
funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and
other financing uses)in net current assets.
The Proprietary Fund Type and the Non-expendable Trust Fund are accounted for on a flow of economic
resources measurement focus. With this measurement focus, all assets and liabilities associated with the
operation of this fund are included on the balance sheet. Fund equity (i.e., net total assets) is segregated
into contributed capital and retained earnings components. Operating statements for these funds present
increases(i.e.,revenues)and decreases(e.g.,expenses)in net total assets.
I
I
I
1 30
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
C. Basis of Accounting(continued)
The modified accrual basis of accounting is used by the Governmental Fund Types. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual, i.e., both measurable
and available. "Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. Most types of revenue are recorded as revenues when received in cash because they are
generally not measurable until actually received. Revenues susceptible to accrual are property taxes,
franchise taxes, sales taxes, licenses, interest revenues, and charges for services. Property taxes, sales
taxes, and franchise taxes collected after the fiscal year end which should be available to finance current
operations are immaterial and remain deferred. Fines and permits are not susceptible to accrual because
generally they are not measurable until received. Investment earnings are recorded as earned since they
are measurable and available.
Under the modified accrual basis of accounting,expenditures(including capital outlay)are recorded when
the liability is incurred, except for general obligation debt principal and interest which are recorded when
paid rather than when incurred.
The Proprietary Fund Type and Non-expendable Trust Fund are accounted for using the accrual basis of
accounting, whereby revenues are recognized in the period in which they are earned and expenses are
recognized in the period in which they are incurred.
D. Budgets
Procedures in establishing budgetary data reflected in the financial statements are as follows:
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 funds available for appropriation, revenues in excess of those
estimated in the budget, the Council may make supplemental appropriation for the year up to the
amount of such excess.
2. At any time during the fiscal year, the City Manager may transfer part or all of any unencumbered
appropriation balance among programs within a department, division, or office, and, upon written
request by the City Manager, the Council may by ordinance transfer part or all of any unencumbered
appropriation balance from one department,office, or agency to another.
3. Limitations: No appropriation for debt service may be reduced or transferred and no appropriation
may be reduced below any amount required by law to be appropriated or by more than the amount of
the unencumbered balance thereof.
I
31
I
CITY OF FRIENDSWOOD
I NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
D. Budgets(continued)
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.
O An appropriation for a capital expenditure shall continue in force under the purpose for which it was
made until it has been accomplished or abandoned. The purpose of any such appropriation shall be
deemed abandoned if three years pass without disbursement from or encumbrance of the
appropriation.
5. Annual appropriations budgets are adopted for the General, Special Revenue, and Debt Service
Funds and are prepared on a basis consistent with generally accepted accounting principles(GAAP)
at the departmental level, the legal level of budgetary control. An annual non-appropriated budget
is adopted for the City's Water and Sewer Enterprise Fund on a non-GAAP basis for managerial
control. Project length budgets are adopted for Capital Projects Funds and amended on an annual
basis to reflect the uncompleted portion of the projects.
6. Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting - under which purchase orders, contracts, and other commitments for the
expenditure of resources are recorded to reserve that portion of the applicable appropriation -is
utilized in the governmental funds. Encumbrances outstanding at year-end are reported as
I reservations of fund balances and do not constitute expenditures or liabilities because the
commitments will be honored during the subsequent year. Encumbrances lapse at year end and are
reappropriated in the ensuing years budget.
Budget amendments were adopted for various funds during the year to increase expenditures and other
uses. The amounts reported in the accompanying financial statements represent the original budgeted
amounts plus all supplemental appropriations.
During the 1998 fiscal year, expenditures exceeded appropriations at the departmental level (the legal
level of compliance) in the General Fund—Public Safety by$105,598.
E. Cash and Temporary Investments
All investments are stated at cost, which approximates market value except for assets in a deferred
compensation plan,which are stated at market value.The City holds all investments until maturity date.
The City maintains a pooled cash and investments account for all funds of the City. Each fund's positive
equity in the pooled cash account is presented as"Cash and Cash Equivalents" in the financial statements.
Negative equity balances have been reclassified and are reflected as interfund accounts payable. Interest
income and interest expense are allocated to each respective individual fund monthly based on their
respective fund balances.
For the purpose of the Statement of Cash Flows, all highly liquid temporary investments and investments
with a maturity of three months or less when purchased are considered to be cash equivalents.
I
32
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
F. Interfund Transactions
Interfund transactions that would be treated as revenues, expenditures, or expenses if they involved
organizations external to the governmental unit are accounted for as revenues, expenditures, or expenses
in the funds involved. Transactions which constitute reimbursements of a fund for expenditures or
expenses initially made from that fund which are properly attributable to another fund are recorded as
expenditures or expenses in the reimbursing fund and primarily as reductions of the expenditure or
expense in the fund that is reimbursed.
Non-recurring or non-routine transfers of equity between funds are reported as additions to or reductions
of the fund balance of Governmental Funds. Transfers of equity to the Enterprise Fund are treated as
contributed capital, and such transfers from the Enterprise Fund are reported as reductions of retained
earnings or contributed capital, as is appropriate in the circumstances. All other legally authorized
transfers are treated as operating transfers and are included in the results of operations of both the
Governmental and Proprietary Fund Types. I
G. Fund Equity
Contributed capital is recorded in the Enterprise Fund which has received capital grants, contributions
from developers and customers, and/or other funds of the City. Reserved fund balances represent those
portions of fund balance not appropriable for expenditure or legally segregated for a specific future use.
Designated fund balances represent management's tentative plans for future use of fmancial resources.
H. Compensated Employee Absences
The City's employees earn vacation and sick leave which may either be taken or accumulated, up to
certain amounts, until paid upon termination or retirement.
The City accrues vacations and sick leave based on criteria established by the Governmental Accounting
Standards Board. For all funds, this liability reflects amounts attributable to cumulative employee
services previously rendered, where the payment is probable and can be reasonably estimated. The
liability for accumulated vacation and sick leave, as of September 30, 1998, has been recorded in the
General and Enterprise Funds since the liability is to be liquidated with expendable available resources.
I. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of funds are recorded in the accounting system in order to reserve the portion of the
applicable appropriation, is employed in the governmental funds. Appropriations lapse at fiscal year-end.
Encumbrances that have not been liquidated are reported as reservations of fund balances since they do
not constitute expenditures or liabilities.
J. Inventories
Inventories are recorded in the General and Enterprise Funds and are stated at cost,using the first-in, first-
out method. Inventories consist of expendable supplies held for consumption, and the cost thereof is
recorded as an expense/expenditure at the time the inventory items are issued(Consumption method).
33
I
CITY OF FRIENDSWOOD
I NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
K. Fixed Assets
General Fixed Assets
General fixed assets have been acquired or constructed for general governmental purposes. Such fixed
assets are recorded as expenditures in the Governmental Funds and capitalized at historical cost in the
General Fixed Assets Account Group. Gifts or contributions of general fixed assets are recorded at
estimated fair market value upon receipt. Public domain ("infrastructure") general fixed assets consisting
of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and
sidewalks, drainage systems, and lighting systems are capitalized as general fixed assets. No depreciation
has been provided on general fixed assets.
Enterprise Fund Fixed Assets
The land, buildings, and equipment owned by the Enterprise Fund are recorded at historical cost or at
estimated fair market value for contributed assets. Interest costs during construction are capitalized when
the effects of capitalization materially impact the financial statements. Some of the assets on which such
interest was capitalized are still under construction and are classified as construction in progress in the
Enterprise Fund. Depreciation of buildings and equipment is provided using the straight-line method over
the following estimated useful lives:
IWater and sewer system Years40-50
Equipment 5-10
Ad
ditions to the water and sewer systems are financed principally from sources other than Enterprise
Fund operating revenues such as long-term debt and contributed capital.The costs of normal maintenance
and repairs are charged to operations as incurred. Improvements and betterments that extend the useful
lives of the assets are capitalized.
L. Total Columns on Combined Statements
Total columns presented in the combined financial statements are captioned (Memorandum Only) to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not
represent financial position, results of operations, or cash flows on a consolidated basis in conformity
with generally accepted accounting principles. Interfund eliminations have not been made in the
aggregation of this data. Certain reclassifications have been made to the prior year totals to conform with
the current year presentation.
M. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of financial statements an the
reported amounts of revenues and expenditures during the reporting period. Actual results could differ
from those estimates.
t
34
1
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS 3
NOTE 2-CASH AND INVESTMENTS
I
Cash
The City's cash and investments are classified as: cash and cash equivalents, investments, and restricted
cash and investments. The cash and cash equivalents include cash on hand, deposits with financial
institutions, short term investments in a state-managed public funds investment pool account(Texpool,), a
privately-managed public funds investment pool (Lone Star) and a Local Government Investment
Cooperative (LOGIC). The Investments, which have a maturity at purchase of greater than three months, II
consist mainly of US government treasury bills, treasury notes and other US government obligations. The
restricted cash and investments are the assets restricted for specific use. The restricted cash includes cash
on deposit with financial institutions and Texpool. At year-end, the carrying value of cash and cash
equivalents(which approximated market value)consisted of:
Carrying
Amount
Cash on hand and deposits $ 769,139
Texpool 685,833
LOGIC 710,074
Lone Star Investment Pool 751,935
Total cash and cash equivalents 2,916,981
Less restricted cash and cash equivalents 292,489
Unrestricted cash and cash equivalents $ 2,624,492
Credit Risk Categorization for Deposits
Cash deposits held at financial institutions can be categorized according to three levels of risk. These
three levels of risk are:
Category 1- Deposits which are insured or collateralized with securities held by the City or by its
agent in the City's name.
Category 2- Deposits which are collateralized with securities held by the pledging financial
institution's trust department or agent in the City's name.
Category 3- Deposits which are not collateralized or collateralized with securities held by the
pledging financial institution or by its trust department or agent but not in the City's
name.
At September 30, 1998, all of the City's cash deposits were insured or collateralized as described under
category 1 above.
I
Texpool, Lone Star and LOGIC balances are not evidenced by securities that exist in physical or book
entry form and, accordingly are not categorized by risk. However, the nature of these funds requires that
they be used to purchase investments authorized by the Texas Public Funds Investment Act of 1995. The
primary objective of these investment pools is to provide a safe environment for the placement of public
funds in short-term, fully collateralized investments.
35
CITY OF FRIENDSWOOD
' Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 2—CASH AND INVESTMENTS(continued)
The State Comptroller of Public Accounts exercises oversight responsibility over TexPool, the Texas
' Local Government Investment Pool. Oversight includes the ability to significantly influence operations,
designation of management and accountability for fiscal matters. Additionally, the State Comptroller has
established an advisory board composed of both Participants in TexPool and other persons who do not
' have a business relationship with TexPool. The Advisory Board members review the investment policy
and management fee structure. Finally,TexPool is rated AAAm by Standard& Poors. As a requirement
to maintain the rating weekly portfolio, information must be submitted to Standard&Poors,as well as the
' office of the Comptroller of Public Accounts for review.
TexPool operates in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of
1940. TexPool uses amortized cost rather than market value to report net assets to compute share prices.
' Accordingly, the fair value of the position in TexPool is the same as the value of TexPool shares.
Investments
' Under provisions of state and local statutes, the City's investment policies, and provisions of the City's
depository contracts with an area fmancial institution, the City is authorized to place available deposits
and investments in the following:
' 1. Obligations of the U.S.,its agencies and instrumentalities,
' 2. Certificates of Deposit issued by state and national banks or savings or loan associations domiciled in
this state that are:
-guaranteed or insured by the Federal Deposit Insurance Corporation; or
' -collateralized in accordance with Section 2256.010,the Texas Government Code, in face amount not
to exceed$100,000,
' 3. No-load money market mutual funds,
4. Texas Local Government Investment Pool, Lone Star Investment Pool, and the Local Government
' Investment Cooperative(LOGIC).
City council has adopted a written investment policy regarding the investments of its funds as defined by
' the Public Funds Investment Act of 1995 (Chapter 2256, Texas Government Code). The Investments of
the City are in compliance with the council's investment policies. The City did not have any derivative
investment products during the current year. All significant legal and contractual provisions for
' investments were complied with during the year. Investments at year end are representative of the types
of investments maintained by the City during the year.
' 36
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 2—CASH AND INVESTMENTS(continued)
I
The carrying amounts and market values of the City's investments can be categorized according to three
levels of risk. These credit risk categories are as follows:
Category 1- Insured or registered,or securities held by the entity or its agent in the entity's name,
Category 2- Uninsured and unregistered, with securities held by the counter-party's trust department I
or agent in the entity's name,
Category 3- Uninsured and unregistered, with securities held by counter-party or by its trust
department or agent but not in the entity's name.
At year-end,the carrying amount of the City's investments approximated market value as shown below: I
Carrying Market
Category Amount Value I
U.S. Government Securities 1 $ 1,947,632 $ 1,947,632
I
NOTE 3- PROPERTY TAXES
The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed I
values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at
market value and assessed at 100% of appraised value. The City's property taxes are billed and collected by
the City's Tax Assessor/Collector. Such taxes are applicable to the fiscal year in which they are levied and
become delinquent with an enforceable lien on property on February 1 of the subsequent calendar year.
Property taxes are prorated between operations and debt service based on rates adopted for the year of the
levy. For the current year, the City levied property taxes of$.5961 per $100 of assessed valuation which
were prorated between operations and debt service in the amounts of$.5276 and $.0685, respectively. The
resulting adjusted tax levies were approximately $5.2 and $1 million for operations and debt service,
respectively,based on a total adjusted taxable valuation of approximately$987 million for the 1997 tax year.
Property taxes receivable,at September 30, 1998, consists of the following: I
Debt
General Service
Tax Year Fund Fund Total
1997 $ 56,415 $ 7,324 $ 63,739
1996 17,642 3,855 21,4971
1995 9,611 3,031 12,642
1994 11,949 3,464 15,413
1993 8,602 2,748 11,350
1992 8,329 2,679 11,008
1991 and prior 72,057 29,950 102,007
$ 184,605 $ 53,051 $ 237,656
37
1
CITY OF FRIENDSWOOD
I Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
$ NOTE 4-LAND,BUILDINGS,AND EQUIPMENT
A summary of changes in the General Fixed Assets Account Group, for the year ended September 30, 1998,
I follows:
Transfers,
Balance, Adjustments Balance,
I October 1, and Retirements September 30,
1997 Additions In(Out) 1998
Land $ 3,332,864 $ 206,465 $ 206,465 $ 3,337,140
11 Buildings 4,533,306 1,944 4,535,249
Improvements other
than buildings 16,484,536 292,398 16,772,657
I Furniture and equipment 4,372,817 586,938 87,508 4,872,248
Construction in progress 93,320 819,769 15,604 897,486
Total $ 28,816,843 $ 1,907,514 $ 309,577 $ 30,414,780
I
Construction in progress and remaining commitments under related construction contracts for general
111
government construction projects at September 30, 1998 is as follows:
Total in Remaining
I Project Description Progress Commitment
Activity Building Renovations $ 11,480 $
North Clear Creek Street Project 457
ISan Joaquin Parkway 885,549 109,784
Total $ 897,486 $ 109,784
A summary of Enterprise Fundfixed assets at September 30, 1998, follows:
ILand $ 643,097
Plant and equipment 17,916,593
Water and sewer lines 16,763,725
1 35,323,415
Less accumulated depreciation (10,810,835)
1 Total $ 24,512,580
IThe Trust and Agency fund accounts for its own land and improvements in the amount of$57,200.
I
I
I38
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5-LONG-TERM DEBT
The City issues a variety of long-term debt instruments in order to acquire and/or construct major capital
facilities and equipment for general government and enterprise fund activities. These instruments include
general obligation bonds, certificates of obligation, revenue bonds, notes payable, and capital leases.
These debt obligations are secured by either future tax revenues, water and sewer system revenues, or
liens on property and equipment. Debt obligations that are intended to be repaid from water and sewer
system revenues have been recorded in the City's Enterprise Fund. All other long-term obligations of the
City have been recorded in the General Long-Term Debt Account Group.
Bonds Payable and Certificates of Obligation I
A summary of the terms of general obligation bonds, combination tax and revenue bonds, and certificates
of obligation outstanding and their corresponding allocations to the General Long-Term Debt Account
Group and the Enterprise Fund at September 30, 1998 follows: 1
General
Series and Original Final Interest Long-Term Enterprise
Issue Amount Maturity Rate(%) Debt Fund
General Obligation Bonds
1986 Refunding Bonds
10,650,777 2004 4.25-7.90 $ 242,427 $ 198,351
1993 Refunding Bonds
6,555,000 2004 2.25 -4.625 957,500 2,872,500
1,199,927 3,070,851
I
Combination Tax and Revenue
Certificates of Obligation
1992 Series 5,000,000 2008 5.30-6.75 1,990,000 2,520,000
1995 Series 3,200,000 2010 5.375-7.375 3,065,000
1,990,000 5,585,000
Revenue Bonds
1969 Series 700,000 1999 5.5-6.125 17,000 33,000
17,000 33,000
Total Bonds and Certificates of Obligation $ 3,206,927 $ 8,688,851
I
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39
I
CITY OF FRIENDSWOOD
I Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
INOTE 5-LONG-TERM DEBT(continued)
Annual debt service requirements for bonds and certificates of obligation are as follows:
IGeneral Certificates of
Obligation Obligation Revenue
I Fiscal Year Bonds Bonds Bonds
1999 $ 1,383,299 $ 666,945 $ 51,532
2000 1,443,764 659,924
2001 748,610 637,702
I 2002 666,761 712,411
2003 668,281 714,879
Thereafter 663,066 7,384,226
I 5,573,781 10,776,087 51,532
less interest portion 1,303,003 3,201,087 1,532
Total requirements $ 4,270,778 $ 7,575,000 $ 50,000
I
Accretion on Premium Compound Interest Bonds
A portion of the bonds sold in the Series 1986 refunding bond issue were premium compound interest bonds.
I These obligations have par values of$440,777 and maturity values of$1,305,000. The interest these obligations
will be paid upon maturity in the fiscal years ending September 30, 2000,through 2004. The accreted values of
these bonds at September 30, 1998, is approximately $1,107,698 of which $498,464 has been allocated to the
I Enterprise Fund and $609,234 has been allocated to the General Long-Term Debt Account Group. Accordingly,
accretion on these bonds of$300,114 and $366,806 has been recorded in the Enterprise Fund and the General
Long-Term Debt Account Group,respectively.
I
Obligations Under Capital Leases
I The City entered into capital lease agreements in order to purchase management information system equipment
for City Hall and the police and fire departments. Following is a summary of future lease payments due on this
equipment:
I Lease
Fiscal Year Obligation
1999 $ 115,598
2000 36,853
2001 11,551
ITotal 164,002
less interest portion 10,750
IObligations under capital leases $ 153,252
I
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111
40
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5-LONG-TERM DEBT(continued)
Prior Year Defeasance of Debt
In prior years, the City defeased certain general obligation and revenue bonds by placing the proceeds of the
1986 and 1993 refunding bonds in an irrevocable trust to provide for all future debt service payments on the
old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in
the City's financial statements. On September 30, 1998, approximately S4.55 million of bonds outstanding
are considered defeased.
Changes in Long-Term Debt
The following are summaries of long-term debt transactions of the City for the year ended September 30,
1998.
General Long-Term Debt Account Group I
Balance, Balance,
October 1, September 30, 111
1997 Additions Retirements 1998
General obligation bonds $ 1,502,427 $ $ 302,500 $ 1,199,927
Revenue bonds 34,000 17,000 17,000
Certificates of obligation 2,070,000 80,000 1,990,000
Obligations under capital
leases 180,418 96,325 103,317 153,252 111
Accreted interest on premium
compound interest bonds 322,835 43,971 366,806
$ 4,109,680 $ 140,296 $ 502,817 $ 3,726,985
I
Enterprise Fund Long-Term Debt
Balance, Balance,
October 1, September 30,
1997 Additions Retirements 1998
111
Revenue bonds $ 66,000 $ $ (33,000) $ 33,000
General obligation bonds 3,978,351 (907,500) 3,070,851
Certificates of obligation 5,740,000 (155,000) 5,585,000
$ 9,784,351 $ $ (1,095,500) $ 8,688,851
I
I
I
41 1
I
CITY OF FRIENDSWOOD
I Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
INOTE 6-FUND EQUITY
IReservations and Designations of Fund Balance
Fund Balances in the various Governmental Fund Types and Non-Expendable Trust Fund are reserved or
1 designated as follows:
I Special Non-Expendable
General Revenue Debt Service Trust
Reserved for:
I Encumbrances $ 448,068 $ $ $
Endowment 67,200
Debt service 187,908
1 Total reserved fund
balance $ 448,068 $ $ 187,908 $ 67,200
I Designated for:
Emergency
operations $ 825,706 $ $ $
Police investigations 4,491
I Authorized
construction 1,226,913
Total designated fund
Ibalance $ 2,052,619 $ 4,491 $ $
V
Prior Period Adjustment
During fiscal year 1997-98, an adjustment was made to decrease fixed assets recorded in the enterprise
fund which had been recorded in prior years in the amount of$35,135,762. Upon further investigation, it
I became apparent that the asset was overstated in the prior periods. The effect of this is an adjustment to
fund balance in the enterprise fund for$367,329.
IA summary of changes in fund balance is as follows:
Beginning retained earnings as previously stated $ 3,568,550
IPrior period adjustment (367,329)
IRetained earnings as restated $ 3,201,221
I
I
I42
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 7-INTERFUND TRANSFERS
During the year ended September 30, 1998 the following operating and residual equity transfers were made:
Operating Operating
Transfer From Transfer To Amounts
Operating
Enterprise Fund General Fund $ 557,983
Residual Equity
Capital Projects General Fund $ 997,161
NOTE 8-IMPACT FEES I
On April 27, 1990, the City, in conformance with the provisions of Senate Bill 336 and House Bill 1786,
adopted a Capital Improvements Plan for Water Supply and Distribution Improvements and for Wastewater
Treatment and Collection Improvements that were needed to serve new developments. An Impact Fee
Structure to defray the costs of these improvements was also adopted.
In recent years, the City has committed funds to the construction of surface water facilities and wastewater
capacity necessary to provide service to current residents, as well as for projected development within the
City. The cost of water and wastewater capacity that has been constructed to support new growth is reflected
in the City Wide impact fees.
Based on population growth projections, two areas (Melody Lane and Central Service Area) within the City
were identified for the proposed extension of water distribution and wastewater collection systems and are
included in the impact fee structure. An impact fee was also included to defray the costs of water
distribution facilities extended to the Bay Area Boulevard Service Area under the terms of a contractual
agreement with Bay Area Land Company, Ltd. I
The Capital Improvements Plan and Impact Fee structure was amended by City Council on January 7, 1991,
to include an impact fee for sanitary sewer collection system costs serving the area known as Mills, Murphy,
and Briarmeadow Avenue between Sunset Drive and Greenbriar.
The following is a summary of the Impact Fees that apply on a City Wide Basis and for each of the
designated service areas. The fees represent the charge for single equivalent service units as defined in the
Capital Improvement Plan.
I
I
43
I
CITY OF FRIENDSWOOD
I NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 8-IMPACT FEES(continued)
Equivalent
I City Wide Impact Fees Service Unit
Surface water facilities $ 685
Wastewater treatment facilities 69
Impact fee study and update study 36
Total City Wide Impact Fee $ 790
Water Distribution Impact Fees
Melody Lane service area $ 854
Bay Area Boulevard service area 294
South Friendswood service area 293
Wastewater Collection Impact Fees
Melody Lane service area $ 450
Mills,Murphy,Briarmeadow Avenue 2,532
South Friendswood Service Area
Area A 378
Area B-1 378
Area B-2 378
Area C 285
Area D 161
Area E-1 784
Area E-2 784
Area E-3 161
Area E-4 161
Area F 378
The impact fees are deposited into a separate, interest bearing bank account in compliance with the
referenced legislation and transferred to the Enterprise Fund cash account as needed. The impact fees and
interest income for each service area are maintained in separate equity schedules. Interest is applied based on
a percentage of the daily equity balance of each service area.
The portion of City Wide Impact Fees collected for Surface Water Facilities are used to meet the current debt
service obligations for the 1988 Certificates of Obligations issued to fund the surface water facilities capital
improvements. The remaining City Wide Impact Fees collected for Wastewater Treatment Facilities and
Impact fee study and Update Study are used to fund other water and wastewater system improvements. All
Impact Fees collected for specific service areas are used to fund new capital improvements for those
designated areas.
111
1
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t
1 44
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 9-EMPLOYEE RETIREMENT SYSTEM
Plan Description I
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 700 administered by TMRS, an agent multiple-employer public employee retirement
system.
Benefits depend upon the sum of employee 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 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 salary had always been the average of his
salary in the last three years. 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.
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. 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. I
Contributions
The contribution rate for the employees is 6% and the City's matching percent is currently 150%, both
as adopted by the governing body of the City. Under the state law governing TMRS, the City
contribution rate is annually determined by the actuary. This rate consists of the normal cost
contribution rate and the prior service contribution rate, both of which are calculated to be a level
percent of payroll from year to year. The normal cost contribution rate finances the currently accruing
monetary credits due to City matching percent,which are the obligation of the City as of an employee's
retirement date, not at the time the employee's contributions are made. The normal cost contribution
rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to
each employee at the time his retirement becomes effective. The prior service contribution rate
amortizes the unfunded actuarial liability over the remainder of the plan's 25-year amortization period.
When the City periodically adopts updated service credits and increases in annuities 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 that began January 1997. The
unit credit actuarial cost methods and the level percent of payroll methods are used for determining the
City contribution rate. Assets available for benefits are valued using the amortized cost method. Both
the employees and the City make contributions monthly. 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.
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CITY OF FRIENDSWOOD
I NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 9-EMPLOYEE RETIREMENT SYSTEMS(continued)
Annual Pension Cost
■ The City's annual pension cost of $358,205 was equal to the City's required and actual contributions.
Three-year trend information for the City's TMRS plan follows:
1
Fiscal Year Annual
Ending Sep. Pension Cost Percentage Net Pension
30 (APC) Contributed Obligation
1996 $ 284,653 100% $ 0
1997 324,151 100% 0
1998 358,205 100% 0
NOTE 10-DEFERRED COMPENSATION PLAN
The City offers its employees a tax-deferred compensation plan meeting the requirements of Internal
Revenue Code Section 457. The plan was established by City Ordinance which appointed ICMA Retirement
Corporation as plan administrator. The City's fiduciary responsibility is to remit employee deferred
compensation to the administrator on a regular basis. The deferred compensation is not available to
employees until termination, retirement, death, or emergency. At September 30, 1998, the plan assets had a
market value of$1,093,812.
NOTE 11 -SOUTHEAST WATER PURIFICATION PLANT
The City has entered into a contract with the City of Houston for constructing, operating, and maintaining a
water purification plant known as Southeast Water Purification Plant. The City's pro rata share of the actual
production construction costs of the project is 3.75 percent. The City's pro rata share of the actual pumping
construction costs is 1.33 percent.
The City began receiving water from the plant on October 15, 1990. The City is billed on a monthly basis
for the 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.
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1 46
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 12- BLACKHAWK REGIONAL WASTE TREATMENT PLANT
The City has entered into an arrangement with the Gulf Coast Waste Disposal Authority for the operation
and maintenance of a joint treatment plant known as Blackhawk Regional Waste Treatment Plant. The City
of Friendswood, the City of Houston, Harris County MUD No. 55, and Baybrook MUD 1, (the
"participants") share in the expense of operation and maintenance based on their respective usage on a
monthly basis. The percentages of equity in the joint venture based on their respective capacity rights at
September 30, 1997 are as follows:
City of Friendswood 52.47 %
City of Houston 16.18
Harris County MUD No. 55 20.27
Baybrook MUD No. 1 11.08
100.00 %
An annual budget for operations is submitted to the Gulf Coast Waste Disposal Authority each year. The
Gulf Coast Waste Disposal Authority is the governing authority and consists of nine members (three
appointed by the governor, three appointed by Harris County, Galveston County, and Chambers County, and
three appointed by the participants).
Separate financial statements for the joint venture were available in the December 31, 1997 audited fmancial
statements of the Gulf Coast Waste Disposal Authority and are summarized below:
Joint
Venture
Total assets $ 414,625
Total liabilities (414,625)
Total fund equity $
Total revenues $ 1,517,822
Total expenditures (1,517,822)
Net increase/decrease $
NOTE 13-RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City's risk management program
encompasses obtaining property and liability insurance through Texas Municipal League (TML), an
Intergovernmental Risk-Pool. The City has not had any significant reduction in insurance coverage and the
amounts of insurance settlements have not exceeded insurance coverage for any of the last three years. The
participation of the City in TML is limited to payment of premiums. During the year ended September 30,
1998 the City paid premiums of approximately $144,993 to TML for provisions of various liability, property
and casualty insurance. The City has various deductible amounts ranging from $1,000 to $5,000 on various
policies. At year-end,the City did not have any significant claims.
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CITY OF FRIENDSWOOD
I NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 13 -RISK MANAGEMENT(continued)
The City also provides workers compensation insurance on its employees through TML. The Workers
compensation premiums for the year ended September 30, 1998 were approximately $137,020. Workers
compensation is subject to change when audited by TML. At year end September 30, 1998 the City believed
the amounts paid on workers compensation would not change significantly from the amounts recorded.
' During the year ended September 30, 1998 employees of the City were covered by a health and dental
insurance plan (the plan) with TML. The City paid premiums of approximately $213 per month per
employee plus $443 per month per employee for 70%of the dependents coverage to the plan. All premiums
were paid to TML. The City does not retain any risk of loss on health and dental insurance.
NOTE 14—YEAR 2000 ISSUE(UNAUDITED)
A. Background
The year 2000 issue is the result of shortcomings in many electronic data processing systems and other
equipment that may adversely affect operations in the year 2000 and beyond. For many years,
programmers eliminated the first two digits from a year when writing computer programs. For example,
the programmers would designate January 1, 1965 as "01/01/65" instead of"01/01/1965". On January
1, 2000, at 12:00:01 am, the internal clock in computers and other equipment will roll over from
"12/31/99" to "01/01/00". Unfortunately, many programs (if not corrected) will not be able to
distinguish between the year 2000 and the year 1900. This may cause the programs to process data
inaccurately or to stop processing data altogether. Another factor that may cause problems in programs
is the leap year calculation. Some programs are unable to detect the year 2000 as a leap year.
Year 2000 issues relate to information technology (IT) and non-IT systems. Non-IT systems typically
included embedded technology such as micro-controllers. Additionally, Year 2000 issues may be
divided into three categories: Internal, External, and Mechanical. Internal Year 2000 issues may arise
from an entity's own operations and materially affect its creditworthiness and ability to make timely
payment of its obligations. External Year 2000 issues may arise from parties, other than an entity, that
' provide payments that support debt service on an entity's debt securities. Such payments may include,
for example, payments made under a lease, loan, or installment sale agreement. Year 2000 issues may
affect contracted third parties that provide administrative services under outsourcing agreements.
' Mechanical Year 2000 issues may arise if Year 2000 problems disrupt the actual mechanical process
used to send payments to creditors, vendors and employees. For example, municipal securities pay
interest semiannually on January 1, and July 1 of each year, or have periodical sinking fund installments
due to an indenture trustee of fiscal agent. Issuers may wish to determine whether Year 2000 issues
affect their ability to identify and meet such obligations in a timely manner and to disclose any measures
that will be undertaken if an entity determines it will not be able to meet such obligations.
The Information Technology Association of America's definition of an IT product able to meet the Year
2000 challenge is: "The IT Product(s) when used in accordance with its associated documentation, will
be capable upon installation of accurately processing, providing, and/or receiving date data from, into,
and between the twentieth and twenty-first centuries, including the years 1999 and 2000 and leap year
calculations, provided that all other products (e.g. hardware, software, and firmware) used in
combination with the IT Product(s)properly exchange date data with it."
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CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 14—YEAR 2000 ISSUE(UNAUDITED)—(continued)
B. City's Status
Currently the City's Information Systems Department has addressed the Year 2000 issues and has taken
steps to determine that the City will by Year 2000 compliant before Calendar year end 1999. The
Information Systems Department has identified all of its systems and individual components of the
system to determine year 2000 compliance. The City, in fiscal year 1998, had already been in the
process of upgrading its technology equipment and software as a part of the City's long-range
technology upgrade plan. The new equipment and systems have been determined to be Year 2000
compliant before installation by the Information Systems Department. The City will be performing tests
in the coming year to determine that the systems, both hardware and software, will be Year 2000
compliant. The City does not expect to incur significant costs or have to commit significant resources in
becoming Year 2000 compliant.
The City is in the process of obtaining confirmation from certain third parties with which it has a
material relationship regarding Year 2000 issues, including its depository bank and investment brokers,
funding agencies, Galveston County, and the Central Appraisal office. These are expected to be
completed by the end of fiscal year 1999.
The most likely worst case Year 2000 scenarios will be an impairment of normal capabilities for a
limited period of time where information technologies support daily operations of the business and
personnel systems, and customer records. Other scenarios may involve delays in the operation of third
parties in providing services requiring technology support. During Fiscal year 1999, the City will
finalize updates to its disaster recovery plan that will enable the City to handle the most reasonably
likely worst case scenarios. The City's recovery plans have been assessed and are being updated in the
areas of the utility billing and collection processing system, payroll processing, personnel, accounting,
and court and public safety records.
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I CITY OF FRIENDS WOOD,TEXAS
REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION Exhibit A-7
September 30, 1998
I
TEXAS MUNICIPAL RETIREMENT SYSTEM(UNAUDITED)
ISchedule of Funding Progress
Unfunded
Actuarial (UAAL)as a
I Actuarial Actuarial Accrued Annual Percentage of
Valuation Actuarial Accrued Percentage Liability Covered Covered
Date Dec.31 Value of Assets Liability Funded (UAAL) Payroll Payroll
I1992 $ 3,954,115 $ 4,245,973 93.1% $ 291,858 $ 3,339,878 8.7%
1993 4,547,707 5,418,187 83.9% 870,480 3,469,512 25.1%
I 1994 5,190,936 5,862,152 88.6% 671,216 3,892,013 17.2%
1995 5,838,306 6,559,465 89.0% 721,159 4,150,533 17.4%
1996 6,820,691 7,531,703 90.6% 710,742 4,455,830 16.0%
I1997 7,798,961 8,694,662 89.7% 895,701 4,471,928 20.0%
Schedule of Annual Pension Costs
I Annual
Calendar Pension Cost Percentage
Year (APC) Contributed
I 1992 $ 208,440 100%
1993 207,130 100%
1994 257,192 100%
I 1995 284,653 100%
1996 324,151 100%
1997 358,205 100%
I The City's annual covered payroll and annualpension cost are presented on a calendar year basis to coincide
h' P yr
with the actuarial valuation dates. Because the City's makes all of the annual required contributions, no net
I pension obligation exists. The information presented in the required supplementary schedules was determined
as part of the actuarial valuations at the dates indicated. Additional information as to the latest actuarial
valuation follows
I
I Valuation date 12/31/97
Actuarial cost method Unit credit
Amortization method Level percent of payroll
Remaining amortization period 25 years
I
Asset valuation method Amortized cost
Actuarial assumptions:
Investment rate of return 8.00%
I Projected salary increase None
Includes inflation at None
cost-of-living adjustments None
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I COMBINING,INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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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 and covers all activities for which a separate fund has not been established.
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I
CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-1
COMPARATIVE BALANCE SHEET
September 30, 1998 and 1997
1998 1997
Assets
Cash and cash equivalents $ 1,992,434 $ 483,425
Investments 1,566,415 1,528,515
Receivables
Taxes 184,605 173,423
Customer accounts 78,336 152,506
Interest receivable 5,310 31,500
Other 180,765 197,374
Due from other governments 53,781 18,443
Inventory 5,488 10,472
Prepaids and other assets 16,509 35,334
Total Assets $ 4,083,643 $ 2,630,992
I
Liabilities and Fund Balanc{
Liabilities
Accounts payable $ 396,911 $ 383,607
Accrued liabilities 220,353 218,615111
Compensated absences 574,087 600,887
Deferred revenue 282,333 285,085
Total Liabilities 1,473,684 1,488,194
Fund Balance
Reserved for encumbrances 448,068 31,928
Unreserved:
Designated for emergency operations 825,706 950,000
Designated for construction 1,226,913
Undesignated 109,272 160,870
Total Fund Balance 2,609,959 1,142,798
Total Liabilities and Fund Balance $ 4,083,643 $ 2,630,992
3
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I CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES,EXPENDITURES,AND Page 1 of 8
1 CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30,1998
with comparative actual balances for the Year Ended September 30,1997
I 1998
Variance
I Favorable 1997
Budget Actual (Unfavorable) Actual
Revenues
I Property taxes $ 5,191,688 $ 5,257,813 $ 66,125 $ 4,712,049
Sales taxes 1,660,613 1,805,791 145,178 1,629,754
Franchise fees 761,188 801,709 40,521 859,378
I Sanitation 982,692 982,432 (260) 1,011,101
Fines and forfeitures 382,550 304,017 (78,533) 347,670
Permits and fees 422,804 699,432 276,628 469,669
Intergovernmental 391,422 346,807 (44,615) 11,510 I
Interest on investments 207,285 216,917 9,632 229,500
Other 234,769 331,451 96,682 143,457
Total Revenues 10,235,011 10,746,369 511,358 9,414,088
IExpenditures
General Government:
I Mayor and Council:
Personnel services 199 185 14 281
Supplies 1,900 1,846 54 1,591
I Other services and charges 55,440 38,817 16,623 52,396
Total Mayor and Council 57,539 40,848 16,691 54,268
City Manager:
1 Personnel services 193,112 186,089 7,023 195,046
Supplies 4,236 5,762 (1,526) 3,059
Repairs and maintenance 602 947 (345) 496
I Other services and charges 28,605 18,123 10,482 34,152
Total City Manager 226,555 210,921 15,634 232,753
City Secretary:
IPersonnel services 130,416 130,118 298 127,210
Supplies 5,486 8,043 (2,557) 3,512
Repairs and maintenance 1,650 2,610 (960) 2,296
IOther services and charges 24,301 24,524 (223) 35,134
Capital outlay 6,289
Total City Secretary 161,853 165,295 (3,442) 174,441
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2 3
STATEMENT OF REVENUES,EXPENDITURES,AND Page 2 of 8
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30, 1997
1998
Variance
Favorable 1997 I
Budget Actual (Unfavorable) Actual
Expenditures(continued)
General Government:(continued)
Administration:
Finance:
Personnel services $ 302,841 $ 321,800 $ (18,959) $ 274,822 1
Supplies 11,282 7,843 3,439 8,381
Repairs and maintenance 250 150 100 185
Other services and charges 27,850 23,683 4,167 54,970 1
Total Finance 342,223 353,476 (11,253) 338,358
Human Resources:
Personnel services 123,190 113,992 9,198 93,590 III
Supplies 6,611 5,122 1,489 4,900
Repairs and maintenance 975 975 286
Other services and charges 38,745 39,022 (277) 65,061 II
Total Human Resources 169,521 158,136 11,385 163,837 111
Tax:
Other services and charges 107,591 105,408 2,183 123,766
Economic Development
Other services and charges 68,610 56,138 12,472 12,812 I
Legal:
Other services and charges 145,166 172,246 (27,080) 268,546 1
Supplies 47 (47) 847
Total Legal 145,166 172,293 (27,127) 269,393
Municipal Court:
Personnel services 156,647 148,411 8,236 146,849
Supplies 5,875 3,064 2,811 5,382
Repairs and maintenance 100 77 23 141 I
Other services and charges 11,192 9,020 2,172 8,015
Total Municipal Court 173,814 160,572 13,242 160,387
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I CITY OF FRIENDSWOOD,TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES,EXPENDITURES,AND Page 3 of 8
ICHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30,1998
Iwith comparative actual balances for the Year Ended September 30, 1997
1998
I Variance
Favorable 1997
Budget Actual (Unfavorable) Actual
I
Expenditures (continued)
General Government:(continued)
Computer Services:
I Personnel services Supplies $ 82,135 $ 49,622
26,024 $ 32,513 $ 25,245
21,369 (4,655) 32,984
Repairs and maintenance 45,821 20,845 24,976 38,570
I Other services and charges 367,734 236,987 130,747 365,560
Capital outlay 74,406 100,258 (25,852) 98,095
Reserves and contingencies 41,000 41,000
I Total Computer Services 632,465 433,736 198,729 560,454
Risk Management:
Personnel services 5,250 5,250
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Supplies 300 181 119 768
Insurance 78,176 80,092 (1,916) 67,556
Other services and charges 2,027
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Total Risk Management 83,726 80,273 3,453 70,351
Total General Government 2,169,063 1,937,096 231,967 2,160,820
1 Public Safety:
Police Services:
I Personnel services 2,090,779 2,249,891 (159,112) 2,205,126
Supplies 109,574 107,228 2,346 109,118
Repairs and maintenance 85,541 87,287 (1,746) 109,176
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Other services and charges 59,049 70,556 (11,507) 74,144
Capital outlay 97,027 98,361 (1,334) 41,007
Total Police Services 2,441,970 2,613,323 (171,353) 2,538,571
ICommunications:
Personnel services 493,103 481,347 11,756 461,776
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Supplies 7,562 5,794 1,768 4,448
Repairs and maintenance 3,500 4,953 (1,453) 3,997
Other services and charges 4,472 5,887 (1,415) 5,760
Total Communications 508,637 497,981 10,656 475,981
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CITY OF FRIENDSWOOD,TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES,EXPENDITURES,AND Page 4 of 8
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30, 1997
1998
Variance I
Favorable 1997
Budget Actual (Unfavorable) Actual
Expenditures(continued)
Public Safety: (continued)
Animal Control:
Personnel services $ 88,442 $ 75,389 $ 13,053 $ 81,020
Supplies 6,320 5,432 888 8,930
Repairs and maintenance 2,730 2,639 91 1,927
Other services and charges 5,509 4,279 1,230 2,773
Capital outlay 5,394
Total Animal Control 103,001 87,739 15,262 100,044
Fire and EMS:
Personnel services 171,024 176,421 (5,397) 171,307
Supplies 5,338 1,085 4,253 1,198
Repairs and maintenance 1,555 (1,555) 14,988
Other services and charges 236,200 234,399 1,801 234,484
Capital outlay 19,342 19,342 22,678
Total Fire and EMS 431,904 413,460 18,444 444,655
Fire Marshal: I
Personnel services 112,539 106,046 6,493 108,025
Supplies 5,000 2,913 2,087 3,621
Repairs and maintenance 1,650 1,058 592 969
Other services and charges 6,363 6,982 (619) 7,436
Total Fire Marshal 125,552 116,999 8,553 120,051
Emergency Management: 1
Personnel services 5,403 1,669 3,734 4,296
Supplies 1,500 1,780 (280) 1,517 II
Repairs and maintenance 2,609 3,612 (1,003) 1,500 111
Other services and charges 1,531 1,744 (213) 1,335
Capital outlay 12,601 1,999 10,602
Total Emergency Management 23,644 10,804 12,840 8,648
Total Public Safety 3,634,708 3,740,306 (105,598) 3,687,950
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I CITY OF FRIENDSWOOD,TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES,EXPENDITURES,AND Page 5 of 8
ICHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30,1998
with comparative actual balances for the Year Ended September 30,1997
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1998
Variance
I Favorable 1997
Budget Actual (Unfavorable) Actual
Expenditures(continued)
IPublic Works:
Administration:
I Personnel services Supplies $ 120,210 $ 122,869 $ (2,659) $ 120,717
2,350 1,997 353 1,492
Repairs and maintenance 889 177 712 219
Other services and charges 2,438 1,138 1,300 3,401
ITotal Administration 125,887 126,181 (294) 125,829
Streets:
I Personnel services 237,666 259,959 (22,293) 245,852
Supplies 40,725 31,468 9,257 62,591
Repairs and maintenance 118,519 118,864 (345) 87,282
I Other services and charges 208,355 237,196 (28,841) 206,610
Capital outlay 1,350,848 1,036,565 314,283 2,556
Total Streets 1,956,113 1,684,052 272,061 604,891
IDrainage:
Personnel services 119,660 110,742 8,918 118,123
I Supplies 800 11 789 507
Repairs and maintenance 25,293 25,752 (459) 20,860
Other services and charges 30,500 165 30,335 49,341
I Total Drainage 176,253 136,670 39,583 188,831
Sanitation:
Other services and charges 984,633 988,422 (3,789) 941,377
ITotal Sanitation 984,633 988,422 (3,789) 941,377
Total Public Works 3,242,886 2,935,325 307,561 1,860,928
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CITY OF FRIENDSWOOD,TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES,EXPENDITURES,AND Page 6 of 8
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30, 1997
1998
Variance
Favorable 1997
Budget Actual (Unfavorable) Actual
Expenditures(continued)
Conununity Development:
Administration:
Personnel services $ 91,987 $ 105,618 $ (13,631) $ 57,097 1
Supplies 800 811 (11) 501
Other services and charges 1,951 2,316 (365) 3,451
Total Administration 94,738 108,745 (14,007) 61,049 1
Planning and Zoning:
Personnel services 75,274 59,219 16,055 74,566
Supplies 2,350 1,571 779 1,630
Repairs and maintenance 225 225 209
Other services and charges 7,387 2,384 5,003 3,505
Capital outlay 1,406
Total Planning and Zoning: 85,236 63,174 22,062 81,316
Engineering:
Personnel services 61,007 51,799 9,208 36,800
Supplies 3,031 1,748 1,283 2,127
Repairs and maintenance 2,203 979 1,224 2,442 I
Other services and charges 4,577 4,206 371 30,281
Capital outlay 783
Total Engineering: 70,818 58,732 12,086 72,433 I
Inspection:
Personnel services 144,576 154,320 (9,744) 130,759 I
Supplies 5,554 4,843 711 4,535
Repairs and maintenance 2,950 3,005 (55) 2,992
Other services and charges 29,884 20,205 9,679 9,371 I
Total Inspection 182,964 182,373 591 147,657
Total Community Development 433,756 413,024 20,732 362,455
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I CITY OF FRIENDSWOOD,TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES,EXPENDITURES,AND Page 7 of 8
I CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30,1998
with comparative actual balances for the Year Ended September 30,1997
1998
1 Variance
Favorable 1997
Budget Actual (Unfavorable) Actual
I Expenditures(continued)
Community Services:
Library:
I Personnel services 379,559 364,435 15,124 353,371
Supplies 125,321 118,261 7,060 107,315
Repairs and maintenance 3,746 2,410 1,336 2,326
I Other services and charges 37,718 12,349 25,369 25,296
Capital Outlay 48,854 50,033 (1,179) 4,144
Total Library 595,198 547,488 47,710 492,452
I Parks and Recreation
Personnel services 279,572 290,454 (10,882) 131,614
Supplies 43,318 42,872 446 28,906
I Repairs and maintenance 55,506 58,154 (2,648) 53,010
Other services and charges 159,167 186,543 (27,376) 155,678
Capital Outlay 837,103 91,469 745,634 18,489
I Reserves and contingencies 7,700 7,700
Total Parks and Recreation 1,382,366 669,492 712,874 387,697
I Community Activities:
Personnel services 75,825 65,002 10,823 202,022
Supplies 11,155 12,720 (1,565) 19,555
Repairs and maintenance 5,000 930 4,070 3,007 I
Other services and charges 40,833 47,962 (7,129) 55,454
Capital Outlay 28,412 23,083 5,329 7,241
Total Community Activities 161,225 149,697 11,528 287,279
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SPECIAL REVENUE FUNDS
IThese funds are used to account for the proceeds of specific revenue sources that are
legally restricted to financing specific purposes. The following describes the various
types of Special Revenue Funds used by the City:
IPolice Investigation Fund
This fund receives funds that are restricted to police investigation.
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Fire/EMS Donation Fund
IThis fund receives funds that are restricted for Fire/EMS capital outlays.
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CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUNDS Exhibit C-1 3
COMBINING BALANCE SHEET
September 30,1998
with comparative totals for September 30,1997
a
Police Fire/EMS Totals
Investigation Donations 1998 1997 1
Assets
Cash and cash equivalents $ 4,572 $ $ 4,572 $ 53,853
Investments 54,225
Interest receivable 1,200
Total Assets $ 4,572 $ $ 4,572 $ 109,278
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Liabilities and Fund Balance I
Liabilities
Accounts payable and accrued liabilities $ 81 $ 5,006 $ 5,087 $ 441
Fund Balances
Unreserved:
Designated for police investigations 4,491 4,491 6,512
Designated for Fire/EMS 102,325
Undesignated (5,006) (5,006)
Total Fund Balances 4,491 (5,006) (515) 108,837
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Total Liabilities and Fund Balances $ 4,572 $ $ 4,572 $ 109,278
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I CITY OF FRIENDSWOOD
SPECIAL REVENUE FUNDS Exhibit C-2
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND
ICHANGES IN FUND BALANCE
Year Ended September 30,1998
Iwith comparative totals for the Year Ended September 30,1997
IPolice Fire/EMS Totals
Investigation Donations 1998 1997
I
Donations $ $ 133,777 $ 133,777 $ 110,537
I Interest 285 285 9,170
Intergovernmental 72 72
Other 60,000 60,000 6,188
ITotal Revenues 357 193,777 194,134 125,895
Expenditures
I Current:
Public safety 2,378 301,108 303,486 158,446
Community services 3,496
ITotal Expenditures 2,378 301,108 303,486 161,942
I Revenues(Under)
Expenditures (2,021) (107,331) (109,352) (36,047)
I Other Financing Sources
Operating transfers in 9,000
ITotal Other Financing Sources 9,000
Revenues and Other Financing Sources
IOver(Under)Expenditures (2,021) (107,331) (109,352) (27,047)
Fund balance,beginning of year 6,512 102,325 108,837 135,884
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Fund Balance(Deficit),End of Year $ 4,491 $ (5,006) $ (515) $ 108,837
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CITY OF FRIENDSWOOD,TEXAS
SPECIAL REVENUE FUND(POLICE INVESTIGATION) Exhibit C-3
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30, 1997
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1998
Variance
Favorable 1997 III
Budget Actual (Unfavorable) Actual
Revenues
Donations $ $ $ $ 305
Interest on investments 150 285 135 134
Intergovernmental 15,350 72 (15,278)
Other 6,118
Total Revenues 15,500 357 (15,143) 6,557
ExpendituresII
Public safety 15,500 2,378 13,122 8,045
Revenues(Under)
Expenditures (2,021) (2,021) (1,488)
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Fund balances-Beginning 6,512 6,512 8,000
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Fund Balances-Ending $ 6,512 $ 4,491 $ (2,021) $ 6,512
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ICITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUND(FIRE/EMS DONATIONS) Exhibit C-4
STATEMENT OF REVENUES,EXPENDITURES,AND
111 CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
I Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30,1997
I
1998
I Variance
Favorable 1997
Budget Actual (Unfavorable) Actual
I Revenues
Donations $ 120,500 $ 133,777 $ 13,277 $ 109,850
Intergovernmental 4,500 (4,500)
I Interest on investments 2,350 (2,350) 9,006
Other 58,000 60,000 2,000
Total Revenues 185,350 193,777 8,427 118,856
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I Expenditures
Public safety 275,996 301,108 (25,112) 150,401
ITotal Expenditures 275,996 301,108 (25,112) 150,401
I Revenues(Under)
Expenditures (90,646) (107,331) (16,685) (31,545)
IOther Financing Sources
Operating transfers in 9,000
ITotal Other Financing
Source 9,000
III
Revenues and Other
Financing Sources Under
IExpenditures (90,646) (107,331) (16,685) (22,545)
Fund balances-Beginning 102,325 102,325 124,870
IFund Balances-Ending $ 11,679 $ (5,006) $ (16,685) $ 102,325
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IDEBT SERVICE FUND
IThe Debt Service Fund is used to account for property taxes levied for payment of principal and
interest on all general long-term debt of the City.
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CITY OF FRIENDSWOOD, TEXAS
DEBT SERVICE FUND Exhibit D-1
COMPARATIVE BALANCE SHEET
September 30, 1998 and 1997
1998 1997 I
peseta
Cash and cash equivalents $ 438 $ I
Investments 189,670 194,067
Taxes receivable 53,051 57,567
Accrued interest receivable 3,500
Due from other funds 201,589
Total Assets $ 243,159 $ 456,723
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Liabilities and Fund balance
Liabilities
Accounts payable and accrued liabilities $ 2,200 $ 6,936
Deferred revenue 53,051 57,567
Total Liabilities 55,251 64,503
Fund balance
Reserved for debt service 187,908 392,220
Total Fund balance 187,908 392,220
Total Liabilities and Fund balance $ 243,159 $ 456,723
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I CITY OF FRIENDSWOOD, TEXAS
DEBT SERVICE FUND Exhibit D-2
STATEMENT OF REVENUES,EXPENDITURES,AND
I CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30,1997
I
I 1998
Variance
Favorable 1997
I Budget Actual (Unfavorable) Actual
Revenues
Property taxes $ 676,780 $ 699,673 $ 22,893 $ 1,034,757
IInterest on investments 14,250 5,384 (8,866) 33,311
Total Revenues 691,030 705,057 14,027 1,068,068
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Expenditures
I Principal retirement 709,094 709,094 899,000
Interest retirement 199,185 199,185 73,097
Fiscal charges 2,000 1,090 910 1,804
ITotal Expenditures 910,279 909,369 910 973,901
I Revenues Over
(Under)Expenditures (219,249) (204,312) 14,937 94,167
iFund balances-Beginning 392,220 392,220 298,053
Fund Balances-Ending $ 172,971 $ 187,908 $ 14,937 $ 392,220
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IENTERPRISE FUND
IThe Enterprise Fund is used to account for the acquisition, operation, and maintenance of
governmental facilities and services that are entirely or predominantly self-supporting by user
charges. The operations of the water and sewer system are accounted for in the Enterprise Fund to
Ireflect the results of operations similar to private enterprise.
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CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND Exhibit E-1
COMPARATIVE BALANCE SHEET
September 30, 1998 and 1997
1998 1997
Assets
Current Assets
Cash and cash equivalents $ 606,539 $ 230,216
Investments 191,547 136,117
Receivables:
Customer accounts 848,865 729,345
Interest 5,916 I
Other 82,814 45,551 ill
Prepaids and other assets 62,181 62,989
Total Current Assets 1,791,946 1,210,134
Restricted Assets
Investment in Blackhawk joint venture 255,531 195,041
Deposits and impact fees 292,489 86,983
548,020 282,024
Land,buildings,and equipment,at cost 35,323,415 35,135,762
Less accumulated depreciation (10,810,835) (9,993,234)
Land,Buildings,and Equipment,Net 24,512,580 25,142,528
Total Assets $ 26,852,546 $ 26,634,686
Liabilities and Fund Equity
Current Liabilities
Accounts payable $ 221,862 $ 240,135
Accrued liabilities 120,713 251,501
Compensated absences 74,942 71,914
Customer deposits 230,065 18,742
Bonds payable,current portion 966,750 940,500
Certificates of obligation payable,current portion 160,000 155,000
Total Current Liabilities 1,774,332 1,677,792
Long-Term Liabilities I
Bonds payable,less current portion 2,137,101 3,103,851
Certificates of obligation payable,less current portion 5,425,000 5,585,000
Accreted interest on premium compound interest bonds 300,114 264,135
Total Long-Term Liabilities 7,862,215 8,952,986
Total Liabilities 9,636,547 10,630,778
Fund Equity
Contributed capital 12,435,358 12,435,358
Retained Earnings 4,780,641 3,568,550
Total Retained Earnings 4,780,641 3,568,550
Total Fund Equity 17,215,999 16,003,908
Total Liabilities and Fund Equity $ 26,852,546 $ 26,634,686
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ICITY OF FRIENDSWOOD,TEXAS
ENTERPRISE FUND Exhibit E-2
I SCHEDULE OF REVENUES,EXPENSES,AND CHANGES IN Page 1 of 3
RETAINED EARNINGS-BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS)
1 Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30,1997
I 1998
Variance
Favorable 1997
IBudget Actual (Unfavorable) Actual
Operating Revenues
Water charges $ 2,689,988 $ 3,248,315 $ 558,327 $ 2,589,842
I Sewer charges 1,959,300 1,889,175 (70,125) 1,947,140
Fees and penalties 330,462 571,111 240,649 140,717
Other 80,852 80,852 66,858
ITotal Operating Revenues 4,979,750 5,789,453 809,703 4,744,557
Operating Expenses
I Water Operations:
Personnel services 248,995 246,341 2,654 241,491
Supplies 62,494 52,114 10,380 46,309
Repairs and maintenance 103,960 122,475 (18,515) 69,977
I Other services and charges 556,666 521,448 35,218 492,344
Capital outlay 114,440 114,440 130,623
Other fmancing uses 32,660 18,741 13,919
ITotal Water Operations 1,119,215 961,119 158,096 980,744
Sewer Operations:
I Personnel services 190,528 163,950 26,578 169,987
Supplies 12,200 6,552 5,648 12,314
Repairs and maintenance 68,150 86,658 (18,508) 103,908
I Other services and charges 1,182,876 1,008,312 174,564 1,190,209
Reserves and contingencies 9,178
Capital outlay 175,346 175,346 1,028,397
ITotal Sewer Operations 1,629,100 1,265,472 363,628 2,513,993
Operation Administration:
Personnel services 187,944 200,687 (12,743) 254,386
ISupplies 5,500 8,494 (2,994) 12,251
Repairs and maintenance 4,200 4,634 (434) 5,083
Other services and charges 45,508 99,932 (54,424) 50,088
I Water and sewer bonds 434
Reserves and contingencies 13,093
Total Operation Administration 243,152 313,747 (70,595) 335,335
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CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND Exhibit E-2
SCHEDULE OF REVENUES,EXPENSES,AND CHANGES IN Page 2 of 3
RETAINED EARNINGS-BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS)
Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30, 1997
1998
Variance
Favorable 1997
Budget Actual (Unfavorable) Actual
Operating Expenses (continued)
Finance Administration:
Personnel services $ 58,646 $ 35,468 $ 23,178 $
Supplies 15,200 19,755 (4,555)
Repairs and maintenance 101 101
Other services and charges 14,407 11,368 3,039
Bad debt expense 11,399
Capital outlay
Other fmancing uses 10,000 3,054 6,946
Total Finance Administration 98,354 69,645 28,709 11,399
Computer Services:
Supplies 3,050 3,191 (141)
Repairs and maintenance 1,800 2,866 (1,066)
Other services and charges 11,035 8,331 2,704
Capital outlay 701 701
Total Computer Services 16,586 14,388 2,198
Insurance:
Other services and charges 37,345
Total Insurance 37,345
Engineering:
Personnel services 56,385 49,652 6,733 57,758
Supplies 1,900 1,698 202 2,117
Repairs and maintenance 1,500 1,324 176 1,778
Other services and charges 1,993 1,195 798 21,465
Total Engineering 61,778 53,869 7,909 83,118
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Total Operating Expenses 3,168,185 2,678,240 489,945 3,961,934
Operating Income 1,811,565 3,111,213 1,299,648 782,623
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ICITY OF FRIENDSWOOD,TEXAS
ENTERPRISE FUND Exhibit E-2
SCHEDULE OF REVENUES,EXPENSES,AND CHANGES IN Page 3 of 3
IRETAINED EARNINGS-BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS)
I Year Ended September 30, 1998
with comparative actual balances for the Year Ended September 30, 1997
I 1998
Variance
Favorable 1997
I Budget Actual (Unfavorable) Actual
Nonoperating Revenues(Expenses)
Interest revenue $ 22,200 $ 25,972 $ 3,772 $ 63,626
I Principal retirement (1,095,500) (1,095,500) (1,310,950)
Interest expense (455,906) (549,510) (93,604) (522,273)
Total Nonoperating
Revenues(Expenses) (1,529,206) (1,619,038) (89,832) (1,769,597)
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Operating Transfers(Out)
Operating transfers in 30,180
I Operating transfers(out) (557,983) (557,983) (237,832)
(557,983) (557,983) (207,652)
I Net Income(Loss)
(Budgetary Basis) $ (275,624) 934,192 $ 1,209,816 (1,194,626)
IAdjustment
Depreciation expense (817,601) (780,996)
I Capital outlay 1,159,020
Principal retirement 1,095,500 1,310,950
Net Adjustments 277,899 1,688,974
INet Income(GAAP Basis) 1,212,091 494,348
Retained earnings,beginning of year(as restated) 3,568,550 3,074,202
IRetained Earnings,end of year $ 4,780,641 $ 3,568,550
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CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND Exhibit E-3
SCHEDULE OF BONDS PAYABLE-
BY MATURITY DATE
September 30, 1998
I
Due During Annual Requirements for All Series Series 1969
Fiscal Year Total Total Total Principal Interest DueI
Ending Principal Interest Principal and Due November 1,
Sept.30, Due Due Interest Due November 1 May 1 Total
1999 $ 966,750 $ 104,735 $ 1,071,485 $ 33,000 $ 1,011 $ 34,011
2000 492,375 329,448 821,823
2001 396,405 114,052 510,457
2002 398,494 74,577 473,071
2003 416,247 57,964 474,211
2004 433,580 38,219 471,799
Totals $ 3,103,851 $718,995 $ 3,822,846 $ 33,000 $ 1,011 $ 34,011
Due During Series 1986 Series 1993
Fiscal Year Principal Interest Due Principal Interest Due
Ending Due November 1, Due March 1,
Sept.30, November 1 May 1 Total March 1 September 1 _ Total
1999 $ $ $ $ 933,750 $ 103,724 $ 1,037,474
2000 139,875 251,625 391,500 352,500 77,823 430,323
2001 25,155 51,345 76,500 371,250 62,707 433,957
2002 12,244 28,256 40,500 386,250 46,321 432,571
2003 11,247 29,253 40,500 405,000 28,711 433,711
2004 9,830 28,420 38,250 423,750 9,799 433,549
Totals $ 198,351 $388,899 $ 587,250 $ 2,872,500 $ 329,085 $ 3,201,585
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ICITY OF FRIENDSWOOD,TEXAS
ENTERPRISE FUND Exhibit E-4
SCHEDULE OF CERTIFICATES OF OBLIGATION-
BY MATURITY DATE
September 30,1998
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I Due During Annual Requirements for All Series Series 1995
Fiscal Year Total Total Total Principal Interest Due
Ending Principal Interest Principal and Due November 1,
Sept.30, Due Due Interest Due November 1 May 1 Total
1999 $ 160,000 $ 316,275 $ 476,275 $ 75,000 $ 176,904 S 251,904
2000 170,000 304,654 474,654 80,000 171,189 251,189
2001 175,000 292,494 467,494 85,000 165,104 250,104
I 2002 185,000 279,797 464,797 90,000 158,651 248,651
2003 200,000 266,910 466,910 100,000 151,645 251,645
2004 210,000 253,945 463,945 100,000 144,270 244,270
2005 645,000 228,494 873,494 155,000 134,964 289,964
I 2006 680,000 191,064 871,064 190,000 124,239 314,239
2007 715,000 152,935 867,935 230,000 112,923 342,923
2008 760,000 112,488 872,488 275,000 99,150 374,150
3 2009 815,000 69,175 884,175 815,000 69,175 884,175
2010 870,000 23,381 893,381 870,000 23,381 893,381
Totals $ 5,585,000 $ 2,491,612 $ 8,076,612 $ 3,065,000 $ 1,531,595 $ 4,596,595
I Due During Series 1992
Fiscal Year Principal Interest Due
Ending Due November 1,
I Sept.30, November 1 May 1 Total
1999 $ 85,000 $ 139,371 $ 224,371
2000 90,000 133,465 223,465
2001 90,000 127,390 217,390
I 2002 95,000 121,146 216,146
2003 100,000 115,265 215,265
2004 110,000 109,675 219,675
I 2005 490,000 93,530 583,530
2006 490,000 66,825 556,825
2007 485,000 40,012 525,012
2008 485,000 13,338 498,338
I 2009
2010
ITotals $ 2,520,000 $ 960,017 $ 3,480,017
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GENERAL FIXED ASSETS
This account group is established to account for the fixed assets owned by the City excluding those
relating to Enterprise Fund operations. Expenditure transactions to acquire general fixed assets
occur in the Governmental Fund Types.
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CITY OF FRIENDSWOOD,TEXAS
GENERAL FIXED ASSETS Exhibit F-1
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS-
IBY SOURCE
September 30, 1998 and 1997
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I 1998 1997
General Fixed Assets
Land $ 3,337,140 $ 3,332,864
Buildings 4,535,249 4,533,305
Improvements 16,772,657 16,484,536
Equipment 4,872,248 4,372,817
Construction in progress 897,486 93,321
Total General Fixed Assets $ 30,414,780 $ 28,816,843
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Investment in General Fixed Assets From
General obligation bonds $ 4,591,258 $ 4,591,258
Time warrants and certificates of
obligation 4,861,440 4,861,441
Federal,state,and local obligations 3,546,509 3,248,287
Municipality 14,864,601 13,838,953
Donations 2,550,972 2,276,904
Total Investment in
General Fixed Assets $ 30,414,780 $ 28,816,843
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS
SCHEDULE OF GENERAL FIXED ASSETS-
BY FUNCTION AND ACTIVITY
September 30, 1998
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Function and Activity Land Buildings Improvements I
General Government
City Manager $ $ $
City Secretary
Administrative Services
Total General Government
Public Safety
Police 10,542 728,007
Fire 18,000 267,322
Emergency management
Total Public Safety 28,542 995,329
Public Works
Streets and drainage 375,408 141,816 14,749,324
Total Public Works 375,408 141,816 14,749,3243
Community Development
Planning and zoning
Engineering
Inspection
Total Community Development
Community Services
Library 28,838 591,760
Parks and recreation 1,908,737 382,726 1,183,725
Community activities 308,914
Swimming pool 552,700 717,820
Buildings 442,915 2,114,704 121,788
Total Community Services 2,933,190 3,398,104 2,023,333 II
Construction in progress
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Total General Fixed Assets $ 3,337,140 $ 4,535,249 $ 16,772,657
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IExhibit F-2
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Construction
IEquipment In Progress Total
$ 23,605 $ $ 23,605
44,704 44,704
941,822 941,822
I1,010,131 1,010,131
II940,349 1,678,898
1,675,119 1,960,441
I61,745 61,745
2,677,213 3,701,084
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348,46215,615,010
I348,462 15,615,010
I 1,406 1,406
783 783
I2,189 2,189
I218,197 838,795
312,287 3,787,475
1 54,624 363,538
15,268 1,285,788
233,877 2,913,284
1 834,253 9,188,880
I897,486 897,486
I $ 4,872,248 $ 897,486 $ 30,414,780
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS Exhibit F-3
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS-
BY FUNCTION AND ACTIVITY
Year Ended September 30,1998
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General General
Fixed Assets Fixed Assets
Function and October 1, Transfers and September 30,
Activity 1997 Additions Retirements 1998
General Government I
City Manager $ 23,605 $ $ $ 23,605
City Secretary 44,704 44,704
Administrative Services 841,564 100,258 941,822
Total General Government 909,873 100,258 1,010,131
Public Safety
Police 1,615,604 63,294 1,678,898
Fire 1,737,042 309,907 (86,508) 1,960,441
Emergency management 61,745 61,745
Total Public Safety 3,414,391 373,201 (86,508) 3,701,084
public Work
Streets and drainage 15,377,836 237,174 15,615,010
Total Public Works 15,377,836 237,174 15,615,010
Community Development
Planning and zoning 1,406 1,406
Engineering 783 783
Inspection
Total Community Development 2,189 2,189
Community Services
Library 788,762 50,033 838,795
Parks and recreation 3,727,080 267,860 (207,465) 3,787,475
Community activities 308,914 54,624 363,538
Swimming pool 1,285,788 1,285,788
Buildings 2,908,689 4,595 2,913,284
Total Community Services 9,019,233 377,112 (207,465) 9,188,880
Construction in progress 93,321 819,769 (15,604) 897,486
Total General Fixed Assets $ 28,816,843 $ 1,907,514 $ (309,577) $ 30,414,780
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GENERAL LONG—TERM DEBT
This account group is established to account for the principal outstanding on general obligation
bonds and other long-term liabilities.
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I CITY OF FRIENDSWOOD,TEXAS
COMPARATIVE SCHEDULES OF Exhibit G-1
GENERAL LONG-TERM DEBT
ISeptember 30,1998 and 1997
I1998 1997
I Amount Available and to be Provided for
the Payment of General Long-Term Debt
IAmount available in Debt Service Fund $ 187,908 $ 298,053
Amount to be provided for retirement of general long-term
Idebt 3,539,077 3,811,627
ITotal Amount Available and to be Provided $ 3,726,985 $ 4,109,680
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General Long-Term Debt Payable
IAccretion on premium compound interest bonds $ 366,806 $ 322,835
IObligations under capital leases 153,252 180,418
Certificates of obligation 1,990,000 2,070,000
IRevenue Bonds 17,000 34,000
General obligation bonds 1,199,927 1,502,427
Total General Long-Term Debt Payable $ 3,726,985 $ 4,109,680
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CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 3
September 30, 1998 and 1997
Amounts
Date of Interest Originally
Issue Description Rate Payable Issued
1969 Revenue Bonds- Series 1969 5.5%-6.125% $ 700,000
08/15/86 Refunding Bonds-Series 1986 4.25%-7.9% 10,650,777
10/19/92 Certificates of Obligation- Series 1992 5.5%-6.75% 2,160,000
04/14/93 Refunding Bonds-Series 1993 2.25%-4.625% 3,480,000
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Obligations under capital leases 195,924
Accretion on premium compound interest bonds
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Totals
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IExhibit G-2
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I Amounts Amounts
Outstanding Issued Retired Outstanding
October 1, Current Current September 30,
1997 Year Year 1998
$ 34,000 $ $ 17,000 $ 17,000
I242,427 242,427
I2,070,000 80,000 1,990,000
1,260,000 302,500 957,500
I3,606,427 399,500 3,206,927
1 180,418 96,325 103,317 153,252
322,835 43,971 366,806
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$ 4,109,680 $ 140,296 $ 502,817 $ 3,726,985
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CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF GENERAL LONG-TERM DEBT 3
SERVICE REQUIREMENTS TO MATURITY
September 30, 1998
Refunding Bonds
Due During Annual Requirements for All Series Series 1986
Fiscal Year Total Total Total Principal Interest Due
Ending Principal Interest Principal and Due March 1,
Sept.30, Due Due Interest Due March 1 September 1 Total
I
1999 $ 514,948 $ 154,666 $ 669,614 $ $ $
2000 403,581 440,483 844,064 170,958 307,542 ' 478,500
2001 235,925 183,987 419,912 30,744 62,756 ' 93,500
2002 298,715 142,589 441,304 14,965 34,535 * 49,500
2003 313,746 128,293 442,039 13,746 35,754 • 49,500
2004 333,264 111,788 445,052 12,014 34,736 ' 46,750
2005 285,000 61,320 346,320
2006 305,000 45,238 350,238
2007 325,000 27,913 352,913
2008 345,000 9,488 354,488111
Totals $ 3,360,179 $1,305,765 $4,665,944 $ 242,427 $ 475,323 $ 717,750
Revenue Bonds
I
Due During Series 1969
Fiscal Year Principal Interest Due
Ending Obligations Under Capital Leases Due March 1,
Sept.30, Principal Interest Total March 1 September 1 Total
1999 $ 106,698 $ 8,900 $ 115,598 $ 17,000 $ 521 $ 17,521
2000 35,123 1,730 36,853
2001 11,431 120 11,551
2002
2003
2004
2005
2006
2007
2008
Totals $ 153,252 $ 10,750 $ 164,002 $ 17,000 $ 521 $ 17,521
I
3
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I
I
79
I
IExhibit G-3
I
I Certificates of Obligation Series 1992 Refunding Bonds
Series 1993
Principal Interest Due Principal Interest Due
Due March 1, Due March 1,
I
March 1 September 1 Total March 1 September 1 Total
$ 80,000 $ 110,670 $ 190,670 $ 311,250 $ 34,575 $ 345,825
80,000 105,270 185,270 117,500 25,941 143,441
I 70,000 100,208 170,208 123,750 20,903 144,653
155,000 92,614 247,614 128,750 15,440 144,190
165,000 82,969 247,969 135,000 9,570 144,570
I
180,000 73,785 253,785 141,250 3,267 144,517
285,000 61,320 346,320
305,000 45,238 350,238
325,000 27,913 352,913
I 345,000 9,488 354,488
$1,990,000 $ 709,475 $2,699,475 $ 957,500 $ 109,696 $ 1,067,196
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I
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I
I
I80
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I
IUNAUDITED STATISTICAL SECTION
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I
3
CITY OF FRIENDSWOOD,TEXASI
GENERAL GOVERNMENT REVENUES BY SOURCE
Last Ten Fiscal YearsI
Function 1989 1990 1991 1992 1993
General property taxes $4,442,540 $4,562,856 $4,557,133 $ 4,749,173 $4,958,863 I
Sales taxes 510,574 607,349 690,327 742,725 808,405
Franchise taxes 375,755 400,986 419,062 456,566 541,841 I
Sanitation 545,130 542,911 595,244 733,245 780,604
Fines and forfeitures 142,516 190,106 166,982 166,355 171,154 1
Permits and fees 125,083 143,105 240,294 286,421 337,539
Intergovernmental revenue 48,985 53,464 50,984 28,641 34,006
Interest on investments 196,647 185,037 222,328 232,773 153,558
Other revenue 106,057 118,539 115,107 139,525 208,466
$ 6,493,287 $ 6,804,353 $ 7,057,461 $ 7,535,424 $ 7,994,436 I
I
Includes General,Special Revenue,and Debt Service Funds.
Source-Accounting records of the City.
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I
81
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I
Table 1
I
111
1994 1995 1996 1997 1998
Is5,249,517 $ 5,553,218 $ 5,865,855 $ 5,660,697 $ 5,957,486
979,890 1,001,832 1,028,528 1,439,030 1,805,791
530,059 570,031 863,183 852,091 801,709
1 838,542 966,066 1,085,149 1,017,028 982,432
174,487 217,411 266,287 353,742 304,017
I
319,384 296,003 234,518 401,720 699,432
32,273 48,101 46,060 40,055 346,879
I
154,195 107,089 193,588 238,009 222,586
219,615 330,313 354,627 224,097 525,228
III
$ 8,497,962 $ 9,090,064 $ 9,937,795 $ 10,226,469 $ 11,645,560
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1
I
I
82
I
CITY OF FRIENDSWOOD, TEXAS
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
a
Function 1989 1990 1991 1992 1993
General government $ 1,143,024 $ 1,167,194 $ 1,258,050 $ 1,085,683 $ 1,112,882 1
Public safety 1,934,317 2,038,066 2,173,685 2,478,564 3,061,016
Public works 1,128,195 1,108,423 1,196,889 1,521,841 1,537,447
Sanitation 531,961 592,819 730,710 752,763 823,028
Community development 249,684 257,750 281,723 289,501 326,854
Community services 814,380 768,533 949,048 1,048,606 1,087,039 I
Debt service 1,344,693 1,305,728 1,304,597 1,301,928 1,315,242
$ 6,614,293 $ 6,645,694 $ 7,163,992 $ 7,726,123 $ 8,440,480 1
I
Includes General,Special Revenue,and Debt Service Funds.
Source-Accounting records of the City.
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I
83
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I
Table 2
I
I1994 1995 1996 1997 1998
I $ 1,149,344 $ 1,478,817 $ 1,481,710 $ 1,615,770 $ 1,937,096
2,814,658 2,846,169 3,206,222 3,329,960 4,043,792
1,621,896 1,783,738 1,792,014 1,805,947 1,946,903
I953,186 946,460 954,018 939,395 988,422
386,976 413,489 463,813 450,916 413,024
I1,319,689 1,426,792 1,656,146 1,686,909 1,904,926
1,434,052 1,427,360 1,579,490 1,202,192 909,369
I $ 8,726,615 $ 9,376,365 $ 10,179,395 $ 11,031,089 $ 12,143,532
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1
84
3
CITY OF FRIENDSWOOD, TEXAS
3
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
I
Fiscal Year Percent
Ended Tax Tax Total Current Tax of Levy
Sept.30, Year Rate Tax Levy Collections Collected
1989 1988 0.6950 4,553,066 4,433,139 97.37
1990 1989 0.6950 4,531,537 4,427,153 97.70
1991 1990 0.6950 4,636,066 4,561,109 98.38
1992 1991 0.6950 4,869,697 4,782,350 98.21
1993 1992 0.6630 5,179,275 5,081,084 98.10
1994 1993 0.6630 5,450,155 5,384,023 98.79
1995 1994 0.6630 5,762,039 5,717,509 99.23
1996 1995 0.6156 5,610,277 5,568,094 99.25
1997 1996 0.6045 5,692,451 5,652,357 99.30 1
1998 1997 0.5961 5,886,162 5,844,583 99.29
1
Source-Tax assessor/collector's records. I
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I
I
I
85
I
111 Table 3
I
I Total Outstanding
Collections Delinquent
Delinquent as Percent Outstanding Taxes as
I Tax Total Tax of Current Delinquent Percent of
Collections Collections Levy Taxes Levy
79,695 4,512,834 99.12 341,986 7.51
I74,484 4,501,637 99.34 371,886 8.21
107,112 4,668,221 100.69 339,731 7.33
I 120,660 4,903,010 100.68 306,418 6.29
91,531 5,172,615 99.87 313,078 6.04
103,113 5,487,136 100.68 276,097 5.07
I89,977 5,807,486 100.79 230,650 4.00
54,842 5,622,936 100.23 231,973 4.13
I53,927 5,706,284 100.24 230,990 4.06
89,625 5,934,208 100.82 237,656 4.04
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1 86
I
CITY OF FRIENDSWOOD, TEXAS
ASSESSED AND ESTIMATED Table 4
ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
II
Ratio of
Fiscal Year Estimated Assessed Value
Ended Tax Assessed Actual to Estimated New
Sept.30, Year Value Value Actual Value ConstructionI
1989 1988 $ 634,729,000 $ 729,914,210 87% $ 14,998,749
1990 1989 653,106,888 759,841,760 86% 37,068,554 1
1991 1990 667,059,850 761,569,171 88% 46,975,722
1992 1991 700,373,270 806,261,160 87% 63,126,050
1993 1992 781,187,783 917,420,470 85% 61,604,061
1994 1993 825,111,643 976,268,953 85% 64,653,799
1995 1994 869,085,848 1,021,248,848 85% 34,680,410
1996 1995 911,351,022 1,165,107,496 78% 42,440,747
1997 1996 941,679,232 1,207,803,598 78% 41,528,406
1998 1997 987,445,395 1,265,399,421 78% 90,683,060
I
Source-Tax assessor/collector's records.
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I
ICITY OF FRIENDSWOOD,TEXAS
TAX RATE DISTRIBUTION Table 5
Last Ten Fiscal Years
I
I Fiscal Year Debt Total
Ended Tax General Service Tax
Sept.30, Year Fund Fund Rate
111
1989 1988 $ 0.50746 $ 0.18754 $ 0.69500
1990 1989 0.53330 0.16170 0.69500
I 1991 1990 0.50876 0.18624 0.69500
1992 1991 0.50900 0.18600 0.69500
1993 1992 0.50160 0.16140 0.66300
I1994 1993 0.50250 0.16050 0.66300
1995 1994 0.51400 0.14900 0.66300
111
1996 1995 0.46800 0.14760 0.61560
1997 1996 0.49610 0.10840 0.60450
I1998 1997 0.52760 0.06850 0.59610
I
ISource-City's tax ordinances.
Tax rates are per$100 valuation.
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1
88
I
CITY OF FRIENDSWOOD, TEXAS
3
PROPERTY TAX RATES AND TAX LEVIES-
DIRECT AND OVERLAPPING
Last Ten Fiscal Years
Friendswood Clear Creek
Independent Independent Clear Creek
Tax City of School School Drainage
Fiscal Year Year Friendswood District District District
Tax Rates per$100 valuation
1989 1988 $ 0.6950 $ 1.4100 $ 0.9500 $ 0.1500
1990 1989 0.6950 1.5500 1.0750 0.1500 I
1991 1990 0.6950 1.5500 1.2890 0.1500
1992 1991 0.6950 1.6500 1.2990 0.1500
1993 1992 0.6630 1.7200 1.4256 0.1450
1994 1993 0.6630 1.6180 1.4600 0.1450
1995 1994 0.6630 1.6090 1.4700 0.1430 I
1996 1995 0.6156 1.5900 1.4700 0.1410
1997 1996 0.6045 1.5900 1.5150 0.1430
1998 1997 0.5961 1.5750 1.5900 0.1425
Source-Tax Department records of the various taxing authorities.
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89 1
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I
Table 6
I
I
Port of Harris County
I Harris Galveston
County Houston Harris County Hospital
County Authority Flood Control District
$ 0.29455 $
0.3540 0.01091 0.03760 0.14600
0.32600 0.3965 0.01267 0.05130 0.16600
0.31483 0.3965 0.01327 0.06190 0.16621
I0.32188 0.4251 0.01531 0.05280 0.19621
0.32909 0.4300 0.01496 0.05590 0.19621
I 0.33854 0.4650 0.01222 0.05565 0.18975
0.36281 0.4850 0.01316 0.06252 0.18350
0.43330 0.5200 0.01300 0.07424 0.12381
I 0.42760 0.5200 0.01600 0.07420 0.12380
0.41660 0.5200 0.02130 0.08000 0.12380
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1 90
I
CITY OF FRIENDSWOOD, TEXAS
PRINCIPAL TAXPAYERS Table 7
September 30, 1998
Percent
of Total
Assessed Assessed
Taxpayer Type of Property Valuation Valuation
1 . Exxon Corporation Oil and Gas $ 20,965,260 2.12%
2 . Southwestern Bell Telephone Utility Company 14,354,920 1.45% I
3 . Texas New Mexico Power Utility Company 10,112,340 1.02%
4 . Friendswood Retirement Living Ltd. Retirement Home 7,778,890 0.79%
5 . South West Properties Seahawk Apartments 6,650,000 0.67%
6 . Hausman-Banfield Interests Apartments; Commercial 5,630,640 0.57%
7 . Albertson's Inc. Albertson's Shopping Center 5,089,960 0.52%
8 . Frontier Land VPLL(Salem Square) Apartments 3,299,500 0.33%
9 . Houston Lighting&Power Utility Company 3,181,970 0.32%
10 . Forest Bend Limited Bay Meadow Apartments 2,620,350 0.27%
79,683,830 8.07% 1
All other taxpayers 907,761,565 91.93% I
Totals $ 987,445,395 100.00% 1
Source-Tax assessor/collector's records. I
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1
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II
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91 1
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I CITY OF FRIENDSWOOD,TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 8
FOR GENERAL BONDED DEBT
I TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
I
Ratio of
I
Fiscal Interest Total Debt Total Debt Service
and Fiscal Service General Requirements
Year Principal Charges Requirements Expenditures to Expenditures
I1988 $ 690,323 $ 654,370 $ 1,344,693 $ 6,614,293 20.33%
1989 687,029 618,699 1,305,728 6,645,694 19.65%
I1990 721,245 583,352 1,304,597 7,163,992 18.21%
1991 763,192 538,736 1,301,928 7,726,061 16.85%
I 1992 830,000 485,242 1,315,242 8,440,480 15.58%
1993 945,000 489,052 1,434,052 8,726,615 16.43%
I
1994 960,000
910,000 433,270 1,393,270 9,376,365 14.86%
1995 358,551 1,268,551 10,179,395 12.46%
1996 963,272 238,920 1,202,192 10,091,694 11.91%
I1997 733,568 202,138 935,706 11,187,677 8.36%
1998 709,094 200,275 909,369 12,143,532 7.49%
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92
I
CITY OF FRIENDSWOOD, TEXAS
REVENUE BOND COVERAGE
Last Ten Fiscal Years
I
Operating Net Operating
Number Number Expenses Revenue
Fiscal of Water of Sewer Operating Before Available for
Year Customers Customers Revenue Depreciation Debt Service
1989 6,731 6,539 $ 3,034,892 $ 1,443,986 $ 1,590,906
1990 6,968 6,719 3,472,772 1,597,064 1,875,708
1991 7,336 6,983 3,378,322 1,857,809 1,520,513 1
1992 7,521 7,171 3,567,379 2,063,694 1,503,685
1993 7,781 7,475 3,808,566 2,246,969 1,561,597 1
1994 8,031 7,709 3,896,444 2,305,953 1,590,491
1995 8,210 7,878 4,394,289 2,135,227 2,259,062
1996 8,382 8,043 4,995,119 2,730,719 2,264,400
1997 8,534 8,199 4,744,557 2,802,914 1,941,643
1998 8,893 8,377 5,789,453 2,678,240 3,111,213
I
Note A- The amounts only include Revenue bonds and do not include amounts paid by
the Enterprise Fund for Combination Tax and Revenue Bonds which are I
secured by Tax Revenues
Source- Accounting records of the City. I
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1
93
I
ITable 9
I
IRevenue Bond(A)
Debt Service Requirements
I Principal Interest Total
$ 186,900 Coverage
$ 125,000 $ 61,900 8.51
130,000 56,275 186,275 10.07
I130,000 46,906 176,906 8.60
135,000 38,916 173,916 8.65
I135,000 31,022 166,022 9.41
135,000 25,710 160,710 9.90
I 140,000 15,581 155,581 14.52
45,000 10,244 55,244 40.99
45,000 7,503 52,503 36.98
III33,000 3,032 36,032 86.35
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I94
I
CITY OF FRIENDSWOOD, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years I
I
Fiscal Year Less Debt
Ended Assessed Gross Service Net
Sept.30, Population Value Bonded Debt Funds Bonded Debt
1989 23,500 634,729,000 8,750,778 280,793 8,469,985
1990 22,710 653,106,888 8,080,778 57,308 8,023,470
1991 22,814 667,059,850 7,365,778 50,854 7,314,924
1992 25,680 700,373,270 6,575,778 78,244 6,497,534
1993 26,333 781,187,783 9,061,649 45,501 9,016,148
1994 27,356 825,111,643 8,160,895 47,281 8,113,614 1
1995 27,700 869,085,848 4,776,263 56,968 4,719,295
1996 28,602 911,351,022 3,935,477 298,053 3,637,424 1
1997 28,902 941,679,232 3,606,427 392,220 3,214,207
1998 30,787 987,445,395 3,206,927 187,908 3,019,019
Source-Tax assessor/collector and accounting records of the City. I
(1) Reflects reallocation of debt to Enterprise Funds in 1994-95 in the amount of$2.5 million.
t
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I
95
I
ITable 10
I
1 Ratio of Net
Bonded Debt Net Bonded
I
to Assessed Debt
Value Per Capita
I 1.33% 360
1.23% 353
1.10% 321
1 0.93% 253
1.15% 342
I0.98% 297
0.54% (1) 170
1 0.40% 127
0.34% 111
1 0.31% 98
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1
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I
III
111
96
I
CITY OF FRIENDSWOOD, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT Table 11
September 30,1998
I
Percentage
Applicable City of
Net Debt Outstanding to City of Friendswood's
Name of Governmental Unit Outstanding as of Friendswood Share of Debt
Friendswood Independent
School District $ 45,477,461 08/31/98 100.00 % $ 45,477,461
Clear Creek Independent
School District 177,932,264 08/31/98 6.81 12,117,187
Galveston County 30,865,000 9/30/97 5.68 1,753,132
Harris County 667,493,195 2/28/97 0.15 1,001,240 1
Harris County Flood
Control District 161,025,087 2/28/97 0.15 241,538
Port of Houston Authority 170,945,000 2/28/97 0.15 256,418
I
Total Net Overlapping Debt 60,846,975
City of Friendswood 3,214,207
Total Net Direct and Overlapping Debt $ 64,061,182 1
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97
I
I CITY OF FRIENDSWOOD,TEXAS
DEMOGRAPHIC STATISTICS Table 12
Last Ten•Fiscal Years
I
IFiscal Per Capita Median Unemployment
Year Population Income Age Rate(A)
1 1989 23,500 20,409 32.9 6.4 %
1990 22,710 N.A. N.A. 5.0
I1991 22,814 N.A. N.A. 7.4
1 1992 25,680 N.A. N.A. 8.9
1993 26,333 N.A. N.A. 7.6
II1994 27,356 N.A. N.A. 7.8
1995 27,700 N.A. N.A. 7.8
I
1996 28,602 N.A. N.A. 3.7 (B)
I1997 28,902 N.A. N.A. 2.9
1998 30,787 N.A. N.A. 3.1
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N.A. -Not Available
I (A) Source-Texas Workforce Commission
I (B) For the year 1996 the unemployment rate is for the City of Friendswood.For years prior to 1996 the rate
was for Galveston County since rates were not available for the City of Friendswood.
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1111
98
I
CITY OF FRIENDSWOOD,TEXAS
SCHEDULE OF IMPACT FEE PROJECT CHANGES
Year Ended September 30, 1998
I
South South
Friendswood Friendswood
Surface Water Service Area Service Area
Facilities Water Wastewater
Improvements Improvements Improvements1
Increases
Impact fees $ 273,070 $ 14,360 $ 61,9711
Interest 9,758 398 1,719
282,828 14,758 63,690 1
Decreases
Improvements:
Manhole rehabilitation
Transfer for Debt Service
Payments:
1992 Certificate of Obligation 28,435
1993 Certificate of Obligation 155,669
1995 Certificate of Obligation 14,758 1
155,669 14,758 28,435
Net Increase 127,159 35,255
Balance,beginning of year 78,811 1
Balance,End of Year $ 205,970 $ $ 35,255 i
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I
Source- City subsidiary records tracking project information regarding impact fees received by the
Enterprise Fund. Impact fees are recorded as additions to contributed capital in the EnterpriseI
Fund.
(1 Interest allocated on percentage of beginning equity and impact fee revenues. I
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99
I
ITable 13
I
I Other
Water and
I Wastewater
Improvements Totals
I $ 83,418 $ 432,819
2,314 14,189
I85,732 447,008
I
I28,435
155,669
I14,758
198,862
I85,732 248,146
I8,172 86,983
I $ 93,904 $ 335,129
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100
CITY OF FRIENDSWOOD,TEXAS
MISCELLANEOUS STATISTICAL DATA Table 14
September 30, 1998 Page 1 of 2
I
Date of incorporation October 15, 1960
Date of present charter Adopted Home Rule Charter
October 16, 1971
Form of government Council-Manager i
Area 22.70 square miles
Miles of Streets
Streets-Paved 98.1 miles
Streets-Unpaved 2.12 miles
I
Fire Protection
Number of stations 3 1
Number of employees(Full-time equivalent) 6.00
Number of volunteers 98
1
Fire Prevention
Number of employees(Full-time equivalent) 2.80
Number of volunteers -
Police Protection
Number of stations 1
Number of sworn officers(Full-time equivalent) 38.48
Number of patrol units 12
Recreation
Number of parks 6
Size of parks 110.5 acres
Number of golf courses -
Number of swimming pools 1
Number of tennis courts 4
Miles of storm sewers 84.74 miles
101 ,
e
' CITY OF FRIENDSWOOD,TEXAS
MISCELLANEOUS STATISTICAL DATA Table 14
September 30,1998 Page 2 of 2
1
' Education
Friendswood Independent School District:
Number of teachers 300
Number of students 4,877
Clear Creek Independent School District:
' Number of teachers 1,776
Number of students 28,790
' City Employees
Department heads 6
Employees:
Full-time 120
Part-time(Full-time equivalent) 28
Total 154
i
Election
Number of Votes Cast:
Last City Election-Regular Election 2,497
' Water
Source Ground Water Surface Water
' Average daily consumption 1,907,000 gallons 2,220,000 gallons
Maximum daily consumption 5,683,000 gallons 4,532,000 gallons
Water mains 120 miles
Number of connections 8,893
' Sewer Blackhawk
Average daily flow 2,635,000 gallons
Maximum daily flow 8,699,000 gallons
Sanitary sewer mains 120 miles
Number of connections 8,377
' 102