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Comprehensive
Annual Financial Report
of the
City of Friendswood, Texas
Fiscal Year Ended
September 30, 1994
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Officials Issuing Report
URonald E. Cox
City Manager
Roger C. Roecker
Director of Administrative Services
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I CITY OF FRIENDSWOOD, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
IYear Ended September 30, 1994
ITABLE OF CONTENTS
Pare IExhibit
INTRODUCTORY SECTION
I Letter of Transmittal 1-10
Organization Chart 11
Certificate of Achievement for Excellence in
Financial Reporting 12
IPrincipal Officials 13
IFINANCIAL SECTION
Independent Auditors'Report 14
IGENERAL PURPOSE FINANCIAL STATEMENTS
Combined Balance Sheet— All Fund Types and
I Account Groups A-1 15-16
Combined Statement of Revenues,Expenditures and Changes
in Fund Balances— All Governmental Fund Types A-2 17-18
Combined Statement of Revenues,Expenditures and Changes
I in Fund Balances— Budget and Actual— General,Special
Revenue and Debt Service Funds A-3 19-20
Combined Statement of Revenues,Expenses and Changes in
I Retained Earnings/Fund Balance— Proprietary Fund Type
and Non—Expendable Trust Fund A-4 21-22
Combined Statement of Cash Flows — Proprietary Fund Type
and Non—Expendable Trust Fund A-5 23-24
INotes to Financial Statements A-6 25-44
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
ISTATEMENTS AND SCHEDULES
Governmental Fund Types
I General Fund:
Comparative Balance Sheet B-1 45
Statement of Revenues,Expenditures and Changes in
Fund Balance — Budget and Actual B-2 46-52 I
Special Revenue Funds:
Combining Balance Sheet C-1 53-54
I Combining Statement of Revenues,Expenditures and
Changes in Fund Balance C-2 55-56
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CITY OF FRIENDSWOOD, TEXAS 11
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1994
TABLE OF CONTENTS I
Exhibit Page I
FINANCIAL SECTION(continued)
COMBINING,INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
Governmental Fund Types (continued)
Special Revenue Funds: (continued)
Statement of Revenues,Expenditures,and Changes in Fund I
Balance — Budget and Actual (Police Investigation) C-3 57
Statement of Revenues,Expenditures,and Changes in Fund
Balance— Budget and Actual (Parks and Recreation) C-4 58
Statement of Revenues,Expenditures,and Changes in Fund
Balance — Budget and Actual (Fire/EMS Donations) C-5 59
Statement of Revenues,Expenditures,and Changes in Fund
Balance— Budget and Actual (Centennial) C-6 60 I
Debt Service Fund:
Comparative Balance Sheet D-1 61
Statement of Revenues,Expenditures and Changes in
Fund Balance — Budget and Actual D-2 62
Capital Projects Funds: I
Combining Balance Sheet E—1 63
Combining Statement of Revenues,Expenditures and
Changes in Fund Balance E-2 64
Proprietary Fund Type I
Enterprise Fund:
Comparative Balance Sheet F-1 65
Schedule of Revenues,Expenses and Changes in
Retained Earnings — Budget and Actual
(Non—GAAP Budgetary Basis) F-2 66-67 I
Schedule of Bonds Payable by Maturity Date F-3 68
Schedule of Certificates of Obligation by
Maturity Date F-4 69 I
Fiduciary Fund Types
Trust and Agency Funds:
Combining Balance Sheet G-1 70
Comparative Statement of Revenues and Changes
In Fund Balance G-2 71
Schedule of Changes in Assets and Liabilities G-3 72
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I CITY OF FRIENDSWOOD, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
IYear Ended September 30, 1994
ITABLE OF CONTENTS
Exhibit/
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Table Page
FINANCIAL SECTION(continued)
I COMBINING,INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
Account Groups
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General Fixed Assets:
Comparative Schedules of General Fixed Assets
by Source H-1 73
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Schedule of General Fixed Assets by Function
and Activity H-2 74-75
Schedule of Changes in General Fixed Assets by
I Function and Activity H-3 76
General Long—Term Debt:
Comparative Schedules of General Long—Term Debt I-1 77
I Schedule of Changes in General Long—Term Debt I-2 77-79
Schedule of General Long—Term Debt Service
Requirements to Maturity I-3 80-81
IUNAUDITED STATISTICAL SECTION
General Government Revenues By Source 1 82-83
I General Governmental Expenditures by Function —
Last Ten Fiscal Years 2 84-85
Property Tax Levies and Collections— Last Ten Fiscal Years 3 86-87
Assessed and Estimated Actual Value of Taxable
I Property—Last Ten Fiscal Years 4 88
Property Tax Rates and Tax Levies — Direct and
Overlapping—Last Ten Fiscal Years 5 89-90
I Tax Rate Distribution—Last Ten Fiscal Years 6 91
Principal Taxpayers 7 92
Revenue Bond Coverage 8 93-94
Ratio of Net General Bonded Debt to Assessed Value
I and Net Bonded Debt Per Capita—Last Ten Fiscal Years 9 95-96
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Expenditures —Last Ten Fiscal Years 10 97
I Computation of Direct and Overlapping Debt 11 98
Demographic Statistics — Last Ten Fiscal Years 12 99
Property Value and Construction—Last Ten Fiscal Years 13 100
Texas Municipal Retirement System Analysis of Funding
I Progress — Last Ten Fiscal Years 14 101-102
Schedule of Impact Fee Project Changes 15 103-104
Miscellaneous Statistical Data 16 105-106
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1 January 20, 1995
1 To the Honorable Mayor and
Members of the City Council
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The comprehensive annual financial report of the City of Friendswood, for the fiscal year ended
I September 30, 1994, 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 is accurate in all material respects and is
reported in a manner designed to present fairly the financial position and results of operations of the
Ivarious 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.
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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
I statements and the combining and individual fund and account group financial statements and
schedules, as well as the auditors' report on the financial statements and schedules. The statistical
section includes selected financial and demographic information, generally presented on a
Imulti—year basis.
The Single Audit Act is not applicable for fiscal year ended September 30, 1994.There are no major
or nonmajor Federal Financial Assistance programs.
IThis report includes all funds and account groups of the City. Friendswood Independent School
District, Clear Creek Independent School District, Galveston County, Harris County, Clear Creek
I 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.
I The City is involved in two cost sharing projects for the operation of the Blackhawk Regional Waste
Treatment Plant and the Southeast Water Purification Plant with the Gulf Coast Waste Disposal
Authority and the City of Houston, respectively. The City's share of ownership in the Blackhawk
IWaste Treatment Plant is 52.47% and paid operating and management fees during the year in the
amount of $668,358. The City's share of production pumping cost in the Southeast Water
Purification Plant was 3.75%and amounts paid for operating fees during the year were$345,959.
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The City provides a full range of services, including administration, traffic planning, inspection,
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municipal courts, and the maintenance and operation of a library. Key services that affect most
citizens on a day—to—day basis are described in more detail below. ,
1. Water and Sewer
The City provides water and sewer services for residential and commercial locations. Eighteen
employees are responsible for maintaining the system, as well as billing and collecting for the
services.
2. Police I
Twenty—four hour coverage is provided by the City's Police Department,which consists of Patrol,
Investigation, Communications, Emergency Management, and Animal Control. A goal of the
department and its 41 full—time personnel is to actively involve the citizens in its community
safety efforts.
3. Fire I
Although the City does not employ its own fire department, it purchases fire trucks and other
equipment for the 92 member volunteer fire department. The City employs a fire marshal, one
full—time fire fighter, and a part—time clerk, and funds salaries for two fire fighters, one
paramedic, an emergency medical technician through participation of a pool of part—time
employees. I
4. Streets I
The street department is responsible for the repair and maintenance of all City streets and
roadside drainage. This department consists of 13 employees.
5. Sanitation
The City's solid waste services, including curbside pickup of recyclable materials, are contracted
to a private firm. Residential pickup is twice weekly.
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6. Parks
The parks and recreation department maintains 57 acres of park land, including four tennis
courts,a swimming pool,and picnic areas. The staff consists of nine full—time employees,as well
as part—time and seasonal employees for the swimming pool,summer camp,sports activities,and
other park functions. I
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IECONOMIC CONDITION AND OUTLOOK
The City of Friendswood, Texas, is located 20 miles southeast of downtown Houston in Harris and
I Galveston Counties. The population is currently estimated at 27,356. The City's economy is linked
closely to that of Houston and the Clear Lake area. The Johnson Space Center opened a new visitor
center, Space Center Houton. This facility offers hands—on experience to provide educational
I opportunities and entertainment. the Gulf Greyhound Race Track also opened in late 1992. Each
operation reportedly provided 1,000 additional jobs. In addition, Amoco recently announced the
relocation of between 500 and 600 employees to the Clear Lake Area. we expect approximately 20
I percent of these employees to make their home in Freindswood. Passage of the North American
Free Trade Agreement is expected to boost trade sector employment. The Houston area has an
attractive central U.S. location and a strong foreign presence, making it a good location for
companies involved in international trade.
MAJOR INITIATIVES
IFor The Year
During the preparation of the 1993-94 budget, the City identified several important programs
I needed to meet citizens' needs for services and to safeguard the environment, in conformity with
applicable federal and state standards. Summary information on these programs is provided below.
Streets
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1993-94 was the tenth year of the City's street improvement program. The following streets
were a part of this project: Cedarwood Drive (from Castlwood to Stonesthrow), W. Willowick
I (between Freindswood Drive and Laurel),and Echo(from Freindswood Drive to Cedarwood).
Approximately 3,000 feet of sidewalk along Friendswood Drive from Whispering Pines to
I Shadwell and from Spreading Oaks to FM 2351 was completed. In addition, approximately
1,300 feet of sidewalk alng Blackhawk Boulevard from Edenvale to Friendswood Link Road
was added. Approximately 1,100 feet of sidewalk was added to Briarmeadow between Sunset
and Merriewood to provide a safer route for childeren to walk to and from Cline Primary
ISchool. Sidewalks were also constructed for the streets mentioned in the previous paragraph.
IWater and Sewer
A Total of$343,500 was budgeted for water improvements as follows:
IProject Amount
El Dorado water line $ 110,000
I Windsong water line 85,000
Fire hydrant inventory and maintenance 30,000
FM 528 water line relocation 103,000
Other projects 15,500
I $ 343,500
Farm to Market Road 528 is one of two direct entrances to the City from Interstate Highway
I 45. Its widening will increase the ease with which residents and visitors make their way into and
out of the City.
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MAJOR INITIATIVES (continued)
For The Year (continued) 1
Parks and Recreation
The third phase of the master development plan for Stevenson Park was completed. This work 111
consisted of adding a glulam pavilion costing approximately$97,000. This stucture is furnished
with picnic tables and was built with a raised stage area and sound sytems. An additional
$155,000 was budgeted to acquire the first 15 acres of land for future development of a sports
complex. An additional 60 acres is available for acquisition in future years.
Library1
In the 1992-93 fiscal year,the City acquired a new building located at 416 South Friendswood 1
Drive for housing the expanded public library. The renovation of the building was completed
in 1994 within the budget of approximately$614,000.
Fire
A 1,250 gallons per minute fire/rescue pumper truck was purchased for the Freindswood i
Volunteer Fire Department at a cost of$119,645.
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For the Future
City Hall I
The need for a new city hall building has been discussed for a number of years. City Council
authorized issuing certificates of obligation (COs) for this purpose. Construction of the new
facility is expected to be completed in the 1995 fiscal year at an estimated cost of$1.6 million.
Streets I
In the upcoming year, $350,000 is budgeted for construction of concrete streets. Addtionally, 1
$24,000 in sidewalk improvements has also been planned.
Parks and Recreation j
Over $453,000 of capital improvements to upgrade the City's parks are scheduled during fiscal
year 1995. The fourth phase of the master development plan for Stevenson Park will include
the construction of a pedestrian bridge and trail from the city hall to the park, fencing and
parking between the park and fire station number one, antique type lighting and restroom
renovation. This project is budgeted at $190,500. A sports complex has been identified as a
critical need. The first tract of property was purchased during the 1994 fiscal year. The City has
$247,000 to purchase an additional 20 acres of property and begin development of this project.
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DEPARTMENT FOCUS.
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Each year the City will select a department to highlight for its efforts and accomplishments. For the
I1994 fiscal year,the Fire Marshal's Department has been chosen for review.
The Fire Marshal has the primary responsibility of responding to and investigating all fires and
I hazardous incidents within the city to determine the cause of each and prevent its reoccurrence.Should
the fire be incendiary in origin, the Fire Marshall is charged with pursuing the filing of
appropriate charges.
I A large amount of the department's time is spent reviewing plans submitted for new subdivisions and
new non—residential building construction and renovation. The office is also responsible for
conducting annual inspections in all commercial businesses, public buildings, day care centers, adult
I care facilities, foster homes and schools within the city. The Fire Marshal also provides fire
prevention education to the schools and citizens of the city.
I Beyond routine fire marshal duties, this department is also responsible for the emergency
management function. The Fire Marshal maintains a current emergency management program on
file with the State Division of Emergency Management, and handles the disaster preparedness
Iprogams to insure the readiness of all city emergency equipment.
These responsibilities are carried out through the services of one full—time fire marshal, the use of
three part—time employees equalling.4 full—time inspectors/investigators and a full—time secretary.
FINANCIAL INFORMATION
IManagement 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
I 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
I 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
I 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
Iappropriated amount) is established by department within an individual fund. The City also
maintains an encumbrance accounting system as one technique of accomplishing budgetary control.
Encumbered amounts lapse at year end. However, encumbrances generally are reappropriated as
Ipart of the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this report, the City
Icontinues to meet its responsibility for sound financial management.
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FINANCIAL INFORMATION(continued)
General Government Function
Revenues for general government functions (General, Special Revenue and Debt Service Funds)
totaled approximately $9.090 million in 1993-94 an increase of approximately $592,000 over
1992-93 revenues. The amount of revenue from various sources and the increase (decrease) over
the preceding year are shown in the following tabulation: I
Increase
(Decrease)
Amount Percent from 1993
Revenue Source (000's) of Total (000's)
General property taxes $ 5,553 61.1 % $ 303
Sales taxes 1,002 11.0 22
Franchise taxes 570 6.3 40
Sanitation 966 10.6 127
Fines and forfeitures 218 2.4 44
Permits and fees 296 3.3 (23)
Intergovernmental revenue 48 0.5 16
Interest on investments 107 1.2 (47)
Other revenue 330 3.6 110
Total $ 9,090 100.0 % $ 592
Assessed valuations of approximately $825 million represented an increase of 5.5 percent over the
preceding year. The net taxable assessed valuations are set at 100% of market value as determinedI
by the Galveston County and Harris County Appraisal District less exemptions or abatements. The
adjusted tax levy for the 1994 fiscal year was approximately $5,465 million, and increase of 5.5
percent over the prior year tax levy. Current tax collections of approximately$5,384 million, or 98.5
percent of the tax levy, up approximately $303,000 (6.6%) from last year. The ratio of total
collections (current and delinquent) to the current tax levy was 100.40 percent, an increase of .53
percent from last year. I
The City had approximately$291,000 in delinquent taxes outstanding as of September 30, 1994 which
represents 5.33 percent of the current tax levy. Delinquent taxcollections were up approximately$12,000
from the prior fiscal year. I
Growth in new home construction contributed to the increase in business gross receipts taxes,general
sales taxes, permits and fees and sanitation revenues. The total amount of new construction for the
current fiscal year was approximately$64.7 million up from from$61.6 million for 1992-93,an increase
of 4.95 percent.
Allocations of property tax levy for the 1994 and the preceding two fiscal years are as follow(tax rate per I
$100 of assessed value):
Purpose 1993-94 1992-93 1991-92
General Fund $ 0.5025 $ 0.5016 $ 0.5090
General Obligation Debt 0.1605 0.1614 0.1860 1
Total Tax Rate $ 0.6630 $ 0.6630 $ 0.6950
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IFINANCIAL INFORMATION(continued)
I General Government Function (continued)
Expenditures for general government functions (General, Special Revenue and Debt Service Funds)
totaled approximately $9.376 million in 1993-94 an increase of approximately $649,000 over
1992-93 revenues. The amount of revenue from various sources and the increase (decrease) over
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the preceding year are shown in the following tabulation:
I Increase
(Decrease)
Amount Percent from 1993
I Function (000's) of Total (000's)
General Government $ 1,479 15.8 % $ 330
Public Safety 2,846 30.4 31
Public Works 1,784 19.0 162
I Community Development 413 4.4 26
Community Services 1,427 15.2 107
Debt Service 1,427 15.2 (7)
ITotal $ 9,376 100.0 % $ 649
General government expenditures
xpenditures increased by approximately $330,000 or 28.7 percent over the
prior year due to the purchase of an AS400 Computer and relatedsoftware for the police department.
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Public works expenditures increased by approximately$162,000 or 10.0 percent over the prior year
primarily due to increased rates charged the City by contract sanitation services of approximately
I $130,000 and capital outlay expenditures of approximately$54,000.
Community Services expenditures increased by approximately$107,000 or 8.1 percent over the prior
1 year primarily due to increased library and communiy activies services.
Fund balances in the major operating funds were maintained at budgeted levels. Net Changes in
Ithese fund balances are tabulated below:
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Fund Balance Net Increase Fund Balance
Beginning (Decrease) Ending
I General Fund $ 1,213 $ 119 $ 1,332
Special Revenue Fund 36 8 44
Debt Service Fund 45 2 47
ICapital Projects Fund 2,689 (906) 1,783
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FINANCIAL INFORMATION(continued) I
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:
1994 1993 I
(000's) (000's)
Operating revenue $ 3,896 $ 3,809 I
Operating expenses before depreciation 2,306 2,247
Net Revenue Available for Debt Service $ 1,590 $ 1,562 I
Revenue Bond Debt Service $ 161 $ 166
Coverage(income available for revenue I
bond debt service divided by annual
revenue bond debt service) 9.88 9.41
Number of customers — Sewer 7,709 7,475
Number of customers — Water 8,031 7,781
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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 $86,187 as of
September 30, 1994. 1
Debt Administration I
The ratio of net general obligation debt paid from governmental fund resources to assessed valuation
and the amount of bonded debt per capital are useful indicators of the City's debt position to
municipal management,citizens and investors. At year end,these indicators were as follow: 1
Percent of
Debt to
Assessed Debt per
Description Amount Value Capita
Net direct bonded debt $ 8,113,614 0.98 % $ 297 111
Overlapping debt 23,463,760 2.83 858
Total Direct and
Overlapping Debt $ 31,577,374 3.81 % $ 1,154
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FINANCIAL INFORMATION(continued)
Cash Management
Cash temporarily idle during the year was invested in Texpool and Lone Star Investment Pool
(LSIP). Yields on Texpool ranged from 3.6375 percent to 4.41 percent during the year ended
September 30, 1994. The net asset values of LSIP 's U.S. government fund increased from $11.56 to
$11.74. Interest earned for the year was approximately$290,000, down $98,000 from the preceding
year.
The City's investment policy is to minimize credit and market risks while maintaining a competitive
yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or
' collateralized. All collateral on deposits was held by a financial institution's trust department in the
City's name. All investments held by the City during the year and at September 30, 1994 which were
subject to categorization are classified in the category of lowest credit risk as defined by the
Governmental Accounting Standards Board. The investment in Texpool is not subject to
categorization as to credit risk since it is an investment pool managed by another government.
' Risk Management
The City, for 1994, has not implemented a plan for assumption of risk of loss. Currently third party
coverage is relied upon.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the financial statements of all of the various funds of
the City by independent certified public accountants. The accounting firm of Null&Associates,P.C.
was selected and their opinion has been included in this report.
Awards
The Government Finance Officers Association of the United States and Canada ("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, 1993. The Certificate
of Achievement is a prestigious national award recognizing conformance with the highest standards
for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report,whose contents conform to
program standards. Such CAFR must satisfy both generally accepted accounting principles and
1 applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Friendswood has
received a Certificate of Achievement for the last six consecutive years. We believe our current
' report continues to conform to the Certificate of Achievement program requirements, and we are
submitting it to GFOA.
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Acknowledgements
The preparation of this comprehensive annual financial report was made possible by the dedicated
service of the entire staff of the Administrative Services Department. Each member of the
department has my sincere appreciation for the contributions made in the preparation of this report.
In closing, I also express my thanks to the Mayor, members of the City Council, and the City
Manager for their leadership,interest,and support in conducting the financial operations of the City
in a responsible and progressive manner.
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Sincerely, 1
Roger C. Roecker
Director of Administrative Services
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CITY OF FRIENDSWOOD, TEXAS
ORGANIZATION CHART
September 30, 1994
' MAYOR AND COUNCIL
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' APPo P TED BOARD! FRIENDSWOOD CITY CITY MUNICIPAL CITY
AND AD HOC VOLUNTEER SECRETARY ATTORNEY JUDGE PROSECUTOR
COMMITTEES FIRE DEPARTMENT
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CITY
1MANAGER
1 I I I I
ADMNMSTRATNE POLICE FWE MARSHAL AND PUBIC COMMUNITY LIBRARY PARKS AND
SERVICES EMERGENCY WORKS DEVELOPMENT RECREATION
MANAGEMENT
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Certificate of 1
Achievement
1
for Excellence
in Financial
Reporting 1
Presented to 1
City of Friendswood, 1
Texas
For its Comprehensive Annual I
Financial Report
for the Fiscal Year Ended
September 30, 1993
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. I
OfFj 1
1/4 IN1ED STATES 7.
A1
2 "A0" �G President
t CORPORATION
NcAio `
������ 'j/aOfr� _iiL.
Executive Director
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I CITY OF FRIENDSWOOD, TEXAS
PRINCIPAL OFFICIALS
I September 30, 1994
I
Term
ICity Officials Elective Position Expires
Evelyn B.Newman Mayor May 1997
IKitten Hajecate Council Member— Position No. 1 May 1997
Mel P.Measeles Council Member— Position No.2 May 1996
ITom Manison Council Member— Position No.3 May 1997
Ed Stuart Council Member— Position No.4 May 1995
IAline Dickey Council Member— Position No.5 May 1996
Janis Lowe Council Member— Position No.6 May 1995
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IKey Staff Appointive Position
Ronald E.Cox City Manager
Staff
Deloris McKenzie City Secretary
Jon Branson Parks and Recreation Director
IRebecca Carbone Tax Assessor—Collector
Douglas K.Kneupper Community Development Director
IMelvin L.Meinecke Director of Public Works
Olson&Olson City Attorney
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Claudie Pettigrew Director of Library Services
ITerry Parker Acting Fire Marshal
Roger C.Roecker Director of Administrative Services
IJared D.Stout Police Chief
James W.Woltz Judge — Municipal Court
IWilliam D.Brown Acting Emergency Management Director
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ale all NIB IIIII M OM — — MO I On r — M — all MI = I
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Null & Associates Houston Fort Bend County
Professional Corporation 11 Greenway Plaza,Suite 1515 One Sugar Creek Center Blvd.,Suite 975
ILouston,Texas 77046 Sugar Land,Texas 77478
Certified Public Accountants (713)621-1515•FAX:621-1570 (713)242-8600•FAX:242-7333
1
Independent Auditors' Report
To the Honorable Mayor and
Members of the City Council
City of Friendswood,Texas
We have audited the accomp
anying general purpose financial statements of the City of Friendswood,
Texas,as of September 30, 1994,and for the year then ended,as listed in the table of contents.These
general purpose financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general purpose financial statements based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing the accounting principles used and significant estimates
' made by management, as well as evaluating the overall general purpose financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
' material respects, the financial position of the City of Friendswood,Texas,as of September 30, 1994,
and the results of its operations and the cash flows of its proprietary fund type and non—expendable
trust fund for the year then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The individual fund and account group financial statements and
1 schedules listed in the table of contents are presented for purposes of additional analysis and are not
a required part of the general purpose financial statements of the City of Friendswood,Texas. Such
information has been subjected to the auditing procedures applied in the audit of the general
purpose financial statements and, in our opinion, is fairly presented in all material respects in
' relation to the general purpose financial statements taken as a whole.
Ac5s, /. C
Houston,Texas
December 7, 1994
I
MEMBERS:AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTA4TS,TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS,
CPA ASSOCIATES INTERNATIONAL,INC.WITH ASSOCIATED OFFICES IN PRINCIPAL U.S.AND INTERNATIONAL CITIES.
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CITY OF FRIENDSWOOD, TEXAS I
COMBINED BALANCE SHEET —
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1994 I
with comparative totals for September 30, 1993
Governmental Fund Types
Special Debt Capital ,
General Revenue Service Projects
Assets and Other Debits
Assets ,
Cash and temporary investments $ 2,188,156 $ 46,700 $ 47,378 S 2,005,788
Receivables:
Taxes 178,787 61,426
Customer accounts 155,270
Interest
Other 53,780
Investments with fiscal agent
Fixed assets,net of accumulated depreciation,
where applicable
Investment in Blackhawk joint venture
Other assets 63,782 5,087
Other Debits
Amount available for debt service
Amount to be provided for retirement
of general long—term debt
Total Assets and Other Debits S 2,639,775 S 46.700 S 108.804 S 2.010.875 111
Liabilities,Equity, and Other Credits
Liabilities I
Accounts payable and accrued liabilities $ 356,850 S 3,001 $ 97 $ 227,916
Compensated absences 678,395
Customer deposits111
Deferred revenue 272,122 61,426
Deferred compensation benefits payable
Bonds payable I
Certificates of obligation payable
Notes payable
Obligations under capital leases
Acreted interest on premium compound I
interest bonds
Total Liabilities 1,307,367 3,001 61,523 227,916
Equity and Other Credits
Investment in general fixed assets
Contributed capital
Retained Earnings
Fund Balances:
Reserved 164,863 47,281
Unreserved
Designated 850,000 43,699 1,782,959 2
Undesignated 317,545
Total Equity and Other Credits 1,332,408 43,699 47,281 1,782,959
Total Liabilities,Equity, and
Other Credits S 2.639.775 S 46.700 $ 108.804 S 2.010,875_
See Notes to Financial Statements.
15
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I
Exhibit A-1
I
111 Proprietary Fiduciary Totals
Fund Type Fund Type Account Groups (Memorandum Only)
I Trust and General General Long- September 30, September 30,
Enterprise Agency Fixed Assets Term Debt 1994 1993
I $ 1,710,134 $ 29,854 $ $ $ 6,028,010 $ 7,561,051
240,213 313,078
I 655,513 810,783 782,795
5,531 5,531 28,588
53,780 69,030
446,805 446,805 378,444
I 23,344,603 57,200 25,069,423 48,471,226 44,854,245
172,831 172,831 140,927
60,280 129,149 181,304
111 47,281 47,281 45,501
8,878,642 8,878,642 9,016,148
I $ 25.948.892 S 533,859 $ 25.069.423 S 8.925.923 S 65.284.251 S 63 371.111
I
S 405,270 $ $ $ $ 993,134 $ 1,248,295
I 72,056
164,850 750,451
164,850 1647,535
333,548 385,375
446,805 446,805 378,444
I 3,320,000 3,510,000 5,620,777 8,940,777 10,015,777
2,160,000 5,670,000 5,865,000
598,567 598,567
166,461 166,461
I380,118 380,118 320,872
7,472,176 446,805 8,925,923 18,444,711 19,051,604
I25,069,423 25,069,423 22,094,506
15,511,200 15,511,200 14,812,068
I 2,965,516 2,965,516 3,371,139
67,200 279,344 607,024
I 19,854 2,696,512 317,545 3,071,563
363,207
18,476,716 87,054 25,069,423 46,839,540 44,319,507
I $ 25.948.892 $ 533.859 S 25.069.423 S 8.925.923 $ 65.284.251 S 63371.111
II
16
1
CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 1994 1
with comparative totals for Year Ended September 30, 1993
Governmental Fund Types I
Special Debt Capital
General Revenue Service Projects
Revenues
Property taxes S 4,206,305 S S 1,346,913 S
Sales taxes 1,001,832
Franchise fees 570,031
Sanitation 966,066
Fines and forfeitures 217,411
Permits and fees 296,003
Donations 20,447 140,818 74,375
Intergovernmental 48,101 29,230 i
Interest on investments 97,880 1,687 7,522 81,133
Other 117,591 32,839 215,156
Total Revenues 7,541,667 175,344 1,354,435 399,894
Expenditures I
Current:
General government 1,478,817
Public safety 2,687,160 159,009 I
Public works 1,783,738
Community development 413,489
Community services 1,386,846 39,946
Capital outlay 2,695,500 1
Debt Service:
Principal retirement 989,463
Interest and fiscal charges 437,897
Total Expenditures 7,750,050 198,955 1,427,360 2,695,500 I
Revenues (Under)
Expenditures (208,383) (23,611) (72,925) (2,295,606)
Other Financing Sources (Uses). I
Operating transfers in 265,189 58,963 74,705 790,874
Operating transfers(out) (132,957)
Proceeds from issuance of
long-term debt 195,924 598,567
Payment to refunded bond
escrow agent
Total Other Financing I
Sources (Uses) 328,156 58,963 74,705 1,389,441
Revenues and Other Financing
Sources Over (Under)
Expenditures and Other
Financing (Uses) 119,773 35,352 1,780 (906,165)
Fund balances- Beginning 1,212,635 8,347 45,501 2,689,124 II
Fund Balances - Ending S 1,332.408 $ 43.699 S 47.281 S 1.782,959
See Notes to Financial Statements. I
17 I
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Exhibit A-2
I
Totals I
(Memorandum Only)
September 30, September 30,
1994 1993
I S 5,553,218 S 5,249,517
1,001,832 979,890
570,031 530,059
I 966,066 838,542
217,411 174,487
296,003 319,384
235,640 693,528
I 77,331 32,273
188,222 216,267
365,586 138,031
9,471,340 9,171,978
I
1,478,817 1,149,344
' 2,846,169 2,814,658
1,783,738 1,621,896
413,489 386,976
1,426,792 1,319,689
I2,695,500 2,318,794
989,463 945,000
437,897 489,052
I
12,071,865 11,045,409
(2,600,525) (1,873,431)
1
1,189,731 1,812,405
I
(132,957) (304,802)
794,491 8,631,674
I
(6,471,674)
1,851,265 3,667,603
I
(749,260) 1,794,172
I3,955,607 2,161,435
S 3,206347 S 3,955,607
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I18
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CITY OF FRIENDSWOOD, TEXAS
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, 1994 III
General Fund I
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Property taxes $ 4,169,467 $ 4,206,305 $ 36,838
Sales taxes 1,033,200 1,001,832 (31,368)
Franchise fees 543,000 570,031 27,031 111
Sanitation 869,421 966,066 96,645
Fines and forfeitures 166,300 217,411 51,111
Permits and fees 305,466 296,003 (9,463) '
Donations 15,694 20,447 4,753
Intergovernmental 49,128 48,101 (1,027)
Interest on investments 100,550 97,880 (2,670)
Other 75,755 117,591 41,836 II
Total Revenues 7,327,981 7,541,667 213,686
Expenditures
Current: I
General government 1,444,459 1,478,817 (34,358)
Public safety 2,789,22.6 2,687,160 102,066
Public works 1,716,275 1,783,738 (67,463)
Community development 481,661 413,489 68,172 1
Community services 1,474,450 1,386,846 87,604
Debt Service:
Principal retirement
Interest and fiscal chargesII
Total Expenditures 7,906,071 7,750,050 156,021
Revenues (Under) I
Expenditures (578,090) (208,383) 369,707
Other Financing Sources (Uses)
Operating transfers in 527,967 265,189 (262,778) 1
Operating transfers(out) (168,621) (132,957) 35,664
Proceeds from issuance of long-term debt 195,924 195,924
Total Other Financing
Sources (Uses) 359,346 328,156 (31,190)
Revenues and Other Financing
Sources Over(Under)
Expenditures and Other
Financing(Uses) (218,744) 119,773 338,517
Fund balances- Beginning 1,212,635 1,212,635I
Fund Balances - Ending S 993.891 S 1,332.408_ S 338,517
See Notes to Financial Statements. I
19 I
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Exhibit A-3
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I Special Revenue Fund Variance Debt Service Fund
Variance
Favorable Favorable
IBudget Actual (Unfavorable) Budget Actual (Unfavorable)
$ $ $ $ 1,331,596 $ 1,346,913 $ 15,317
I
I138,495 140,818 2,323
204 1,687 1,483 9,000 7,522 (1,478)
I
12,950 32,839 19,889
151,649 175,344 23,695 1,340,596 1,354,435 13,839
157,600 159,009 (1,409)
2,396 39,946 (37,550)
I
989,463 (74)
440,272 437,897 2,375
159,996 198,955 (38,959) 989,389
1,429,661 1,427,360 2,301
I (8,347) (23,611) (15,264) (89,065) (72,925) 16,140
58,963 58,963 54,531 74,705 20,174
I58,963 58,963 54,531 74,705 20,174
I8 4( ,3 7) 35,352 43,699 (34,534) 1,780 36,314
I8,347 8,347 45,501 45,501 _
$ $ 43,699 $ 41699 $ 10,967 $ 47.281 $ 36314
I
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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, 1994 1
with comparative totals for Year Ended September 30, 1993
Proprietary Fiduciary I
Fund Type Fund Type
Non—Expendable I
Enterprise Trust
Operating Revenues
Water charges $ 2,569,083 $
Sewer charges 1,226,495 I
Fees and penalties 91,565
Other 32,869
Total Operating Revenues 3,920,012 I
Operating Expenses
Water operations 860,714 I
Sewer operations 1,094,056
Operation administration 94,868
Finance administration 169,829
Computer services 3,623
Insurance 25,867
Engineering 56,996
Depreciation 692,954 I
Total Operating Expenses 2,998,907
Operating Income 921,105 I
Nonoperating Revenues (Expenses)
Interest revenue 101,820 867 IIInterest expense (371,774)
Total Nonoperating
Revenues (Expenses) (269,954) 867
Income Before
Operating Transfers 651,151 867
Operating Transfers In (Out). 1
Operating transfers(out) (1,056,774)
Net Income(Loss) (405,623) 867
Retained earnings/Fund balance —
Beginning of Year 3,371,139 86,187
Retained Earnings/Fund Balance —
End of Year $ 2,965,516 S 87,054
I
See Notes to Financial Statements.
21 I
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Exhibit A-4
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I
ITotals
(Memorandum Only)
U
September 30,1994 September 30,
1993
S 2,569,083 S 2,612,847
1,226,495 1,070,081
91,565 85,820
32,869 39,818
I3,920,012 3,808,566
I
860,714 824,110
1,094,056 1,063,052
94,868 88,353
169,829 163,132
I 3,623 4,294
25,867 26,259
56,996 77,769
I692,954 695,616
2,998,907 2,942,585
I921,105 865,981
I 102,687 173,305
(371,774) (390,307)
(269,087) (217,002)
652,018 648,979
1 (1,056,774) (1,507,603)
II
(404,756) (858,624)
1 3,457,326 4,315,950
$ 3,052570 $ 3,457326
I
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF CASH FLOWS — '
PROPRIETARY FUND TYPE AND NON—EXPENDABLE TRUST FUND
Year Ended September 30, 1994 111
with comparative totals for Year Ended September 30, 1993
Proprietary Fiduciary 1
Fund Type Fund Type
Non—Expendable
Enterprise Trust '
Cash Flows from Operating Activities
Operating Income S 921,105 $
Adjustments to Reconcile Operating
Income to Net Cash
Provided by Operating Activities:
Depreciation and amortization 692,954
(Increase)Decrease in accounts receivable 24,365
(Increase)Decrease in other assets 13,100
Increase(Decrease)in accounts
payable and accrued liabilities (189,886)
Increase in customer deposits 17,315
Increase in compensated absences 7,360
Net Cash Provided by
Operating Activities 1,486,313
Cash Flows from Noncapital Financing Activities
Operating transfers(out) (1,056,774)
Net Cash(Used) by
Financing Activities (1,056,774)
Cash Flows from Capital and Related
Financing Activities
Contributed capital 290,217
Capital expenditures for property,plant,
and equipment (967,674)
Proceeds from the sale of equipment 9,667
Issuance of long—term debt
Principal payments on long—term debt (310,000)
Interest payments on long—term debt (371,774)
Net Cash Provided(Used) by Capital I
and Related Financing Activities (1,349,564)
Cash Flows from Investing Activities
Interest on investments 101,820 867 I
Net Cash Provided by Investing Activities 101,820 867
Net Increase (Decrease) in Cash
and Cash Equivalents (818,205) 867
Cash and cash equivalents,beginning of year 2,528,339 28,987
Cash and Cash Equivalents,End of Year S 1.710.134 S 29.854 I
I
See Notes to Financial Statements.
23 1
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Exhibit A-5
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I Totals
(Memorandum Only)
September 30, September 30,
I 1994 1993
$ 921,105 $ 867,029
I
692,954 695,616
I
24,365 13,100 (95,086)
(47,433)
(189,886) 305,485
I 17,315 25,670
7,360 15,669
1,486,313 1,766,950
I (1,056,774) (1,507,603)
I
(1,056,774) (1,507,603)
1 290,217 353,020
(967,674) (1,868,716)
I 9,667
2,840,000
(310,000) (310,000)
(371,774) (390,307)
I (1,349,564) 623,997
I102,687 172,257
102,687 172,257
II (817,338) 1,055,601
2,557,326 1,501,725
' $ 1.739.988 $ 2,557326
I
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CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Friendswood,Texas (the City),was incorporated on October 15, 1960. The City charter
provides for a City Council—City Manager form of government.The Mayor and six Council Members
are elected from the City at large serving three year terms. Currently, the City charter provides for a
Council term limitation of three terms.
The City Council is the principal legislative body of the City. The City Manager is appointed by a
majority vote of the City Council and is responsible to the Council for the administration of all the
affairs of the City. The City Manager is responsible for law enforcement,appointment and removal of
department directors and employees,supervision and control of all City departments,and preparation
of the annual budget. The Mayor presides at meetings of the City Council and can vote.
The City provides the following services: public safety,streets,parks and recreation,library,water and
sewer, sanitation, planning and zoning, building inspection, code enforcement, and general
administrative services.
A. Reporting Entity
The combined financial statements of the City include all funds and operations which are
controlled by or dependent upon the City. The criteria considered in determining governmental
activities to be reported within the City's combined financial statements include the degree of
oversight responsibility exercised by the City Council over an organization, activity, or function.
Oversight responsibility is demonstrated by financial interdependency, selection of governing
authority, designation of management, ability to significantly influence operations, and
accountability for fiscal matters. 1
The City is the lowest level of government exercising oversight responsibility and control over all
activities related to operations of the City within the boundaries of the City of Friendswood,Texas.
The City is not included in any other governmental "reporting entity" as defined by the
Governmental Accounting Standards Board,since the City Council is elected by the public and has
decision making authority, the power to designate management, the ability to significantly
influence operations,and primary accountability for fiscal matters. I
As indicated in Note 11, the City participates in a joint venture (Blackhawk Regional Waste
Treatment Plant)with three other entities,under the authority of the Gulf Coast Waste Disposal
Authority. This venture is accounted for under the equity method in the City's Enterprise Fund.
B. Fund Accounting I
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.
1
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25
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CITY OF FRIENDSWOOD. TEXAS
Exhibit A-6
1 NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Fund Accounting(continued)
Governmental Fund Types (Budgeted)
General Fund
The General Fund accounts for the resources used to finance all the operations of the City not
properly includable in other funds. The principal sources of revenue of the General Fund
include property taxes, sales and use taxes, franchise taxes, fines and forfeitures, permits and
1 fees, and charges for sanitation services. Expenditures include general government, public
safety,public works,community development,and community services.
Special Revenue Funds
' The Special Revenue Funds are used to account for the proceeds of specific revenue sources
that are legally restricted or designated for specified activities.
Debt Service Fund
The Debt Service Fund is used to account for the accumulation of resources for the retirement
of general long—term debt and related costs. The primary source of revenue of the Debt
Service Fund is property taxes.
1 Capital Projects Funds
The Capital Projects Funds are used to account for the financial resources to be used for the
' acquisition or construction of major capital facilities financed principally by proceeds of
long—term debt. Capital project funds are budgeted on a project rather than an annual basis.
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.
1 Fiduciary Fund Types (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.
Agency Fund
The Agency Fund (Deferred Compensation Fund) is used to account for assets held for
' employees in accordance with the provisions of Internal Revenue Code Section 457. The
Agency Fund is custodial in nature (assets equal liabilities) and does not involve measurement
of results of operations.
1
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1
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CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Fund Accounting(continued)
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, and notes payable which are payable from governmental fund
resources. The debt is offset by the amount available in the Debt Service Fund and the amount
to be provided in future years.
C. Basis of Accounting I
The basis of accounting is the method by which revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements. The accounting and financial
reporting treatment applied to a fund is determined by its measurement focus.All Governmental
Fund Types are accounted for using a current financial resources measurement focus. With this
measurement focus, only current assets and current liabilities generally are included on the
balance sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources)and decreases(i.e.,expenditures and other financing uses)in net current assets.
111
The Proprietary Fund Type and the Non—expendable Trust Fund are accounted for on a flow of
economic resources measurement focus. With this measurement focus, all assets and liabilities
associated with the operation of this fund are included on the balance sheet. Fund equity(i.e.,net
total assets) is segregated into contributed capital and retained earnings components. Operating
statements for these funds present increases (i.e., revenues) and decreases (e.g., expenses) in net
total assets.
The modified accrual basis of accounting is used by the Governmental Fund Types and Agency
Fund. Under the modified accrual basis of accounting, revenues are recognized when susceptible
to accrual,i.e.,both measurable and available. "Measurable"means the amount of the transaction
can be determined and "available" means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period. Most types of revenue are recorded as
revenues when received in cash because they are generally not measurable until actually received.
Investment earnings are recorded as earned since they are measurable and available.
Under the modified accrual basis of accounting, expenditures (including capital outlay) are
recorded when the liability is incurred, except for general obligation debt principal and interest
which are recorded when paid rather than when incurred.
The Proprietary Fund Type and Non—expendable Trust Fund are accounted for using the accrual
basis of accounting whereby revenues are recognized in the period in which they are earned and
expenses are recognized in the period in which they are incurred.
I
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CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Budgets
' Procedures in establishing budgetary data reflected in the financial statements are as follow:
1. On or before the first day of August of each year,the City Manager shall submit to the Council
' a proposed budget and an accompanying message. The Council shall review the proposed
budget and revise as deemed appropriate prior to general circulation for public hearing. The
Council shall adopt the budget by ordinance on one reading on or before the 15th day of
September or as soon thereafter as practical. Adoption of the budget shall require an
affirmative vote of at least a majority of all members of the Council. Adoption of the budget
shall constitute appropriations of the amounts specified therein as expenditures from the funds
indicated. If, during the fiscal year, the City Manager certifies that there are available for
appropriation, revenues in excess of those estimated in the budget, the Council may make
supplemental appropriation for the year up to the amount of such excess.
2. At any time during the fiscal year, the City Manager may transfer part or all of any
unencumbered appropriation balance among programs within a department, division,or office,
and, upon written request by the City Manager, the Council may by ordinance transfer part or
all of any unencumbered appropriation balance from one department, office, or agency to
another.
I 3. Limitations: No appropriation for debt service may be reduced or transferred and no
appropriation may be reduced below any amount required by law to be appropriated or by
more than the amount of the unencumbered balance thereof.
' 4. Lapse of Appropriations: Every appropriation, except an appropriation for a capital
expenditure, shall lapse at the close of the fiscal year to the extent that it has not been
expended or encumbered. An appropriation for a capital expenditure shall continue in force
' under the purpose for which it was made until it has been accomplished or abandoned. The
purpose of any such appropriation shall be deemed abandoned if three years pass without
disbursement from or encumbrance of the appropriation.
' 5. Annual appropriations budgets are adopted for the General, Special Revenue, and Debt
Service Funds are prepared on a basis consistent with generally accepted accounting principles
(GAAP) at the departmental level, the legal level of budgetary control. An annual
non—appropriated budget is adopted for the City's Water and Sewer Enterprise Fund on a
non—GAAP basis for managerial control. Project length budgets are adopted for Capital
I Projects Funds and amended on an annual basis to reflect the uncompleted portion of the
projects.
6. Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting — under which purchase orders, contracts, and other commitments
for the expenditure of resources are recorded to reserve that portion of the applicable
appropriation — is utilized in the governmental funds. Encumbrances outstanding at year end
' are reported as reservations of fund balances and do not constitute expenditures or liabilities
because the commitments will be honored during the subsequent year. Encumbrances that
lapse are reappropriated in the ensuing years budget.
' During the 1994 fiscal year,expenditures exceeded appropriations at the functional level(the legal
level of compliance)in the General and Special Revenue Funds.
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CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. Cash and Cash Equivalents
For the Purpose of the statement of cash flows, the Proprietary Fund Type considers temporary i
investments with original maturities of three months or less to be cash equivalents.
F. Interfund Transactions '
Interfund transactions that would be treated as revenues, expenditures, or expenses if they
involved organizations external to the governmental unit are accounted for as revenues,
expenditures, or expenses in the funds involved. Transactions which constitute reimbursements of
a fund for expenditures or expenses initially made from that fund which are properly attributable
to another fund are recorded as expenditures or expenses in the reimbursing fund and primarily as
reductions of the expenditure or expense in the fund that is reimbursed.
Non—recurring or non—routine transfers of equity between funds are reported as additions to or
reductions of the fund balance of Governmental Funds. Transfers of equity to the Enterprise
Fund are treated as contributed capital,and such transfers from the Enterprise Fund are reported
as reductions of retained earnings or contributed capital,as is appropriate in the circumstances.
All other legally authorized transfers are treated as operating transfers and are included in the
results of operations of both the Governmental and Proprietary Fund Types. 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 financial resources.
H. Compensated Employee Absences
The City's employees earn vacation and sick leave which may either be taken or accumulated, up
to certain amounts,until paid upon termination or retirement.
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,
1994, has been recorded in the General and Enterprise Funds since the liability is to be liquidated
with expendable available resources.
1
1
29
I
I CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
INOTES TO FINANCIAL STATEMENTS
INOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
II. Fixed Assets
General Fixed Assets
General fixed assets have been acquired or constructed for general governmental purposes. Such
I 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
I 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.
I 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
I 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:
I Years
Water and sewer system 40-50
Equipment 5-10
IAdditions 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
I normal maintenance and repairs are charged to operations as incurred. Improvements and
betterments which extend the useful lives of the assets are capitalized.
J. Total Columns on Combined Statements
ITotal 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
I not represent financial position, results of operations, or changes in financial position 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 data for the prior year to conform with the current year presentation.
I
I
I
I
30
I
I
CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 2 — DEPOSITS (CASH) AND TEMPORARY INVESTMENTS
The City's cash and temporary investments,at September 30,1994,are shown below.
Carrying Market I
Amount Value
Cash $ 19,650 $ 19,650
United States Government Securities 500,000 500,000
Texpool 1,000,000 1,015,571
Lone Star Investment Pool 4,508,360 4,508,360
Total Temporary Investments 6,008,360 6,023,931
Total Cash and Temporary Investments S 6,028.010 $ 6,043.581
Deposits (Cash)
The City's funds are required to be deposited and invested under the terms of a depository contract
pursuant to state statutes. The depository bank deposits, for safekeeping and trust with the City's
agent bank, approved pledged securities in an amount sufficient to protect City funds on a
day—to—day basis during the period of the contract. The pledge of approved securities is waived only
to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation
('FDIC")Insurance.
Credit Risk Categorization
The City's cash deposits, at September 30, 1994, were entirely covered by FDIC insurance or by
pledged collateral held by the City's agent bank in the City's name. The deposits were
collateralized in accordance with state law and were properly secured throughout the year.
Temporary Investments ,
Statutes authorize the City to invest in obligations of the US.Treasury or the State of Texas,certain
U. S. agencies, certificates of deposit, money market savings accounts, certain municipal securities,
repurchase agreements, common trust funds,and other investments specifically allowed by the Public
Funds Investment Act of 1987,as amended. Temporary investments are recorded at cost.
Credit Risk Categorization
Temporary investments, with the exception of balances in two public funds investment pools
(Texpool and Lone Star Investment Pool),are held by the City's agent in the City's name.
Balances in Texpool and Lone Star Investment Pool are not evidenced by securities that exist in
physical or book entry form and accordingly are not subject to credit risk categorization. However,
the investment pools' policies require that local government deposits be used to purchase
investments authorized by the Public Funds Investment Act of 1987,as amended. 1
1
31
I
I CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
INOTES TO FINANCIAL STATEMENTS
INOTE 3 — PROPERTY TAXES
The City's property taxes are levied annually in October on the basis of the Appraisal District's
I assessed values as of January 1 of that calendar year. Appraised values are established by the
Appraisal District at market value and assessed at 100%of appraised value. The City's property taxes
are billed and collected by the City's Tax Assessor/Collector. Such taxes are applicable to the fiscal
year in which they are levied and become delinquent with an enforceable lien on property on February
I1 of the subsequent calendar year.
Property taxes are prorated between operations and debt service based on rates adopted for the year
I of the levy. For the current year,the City levied property taxes of S.663 per S100 of assessed valuation
which were prorated between operations and debt service in the amounts of S.5025 and S.1605,
respectively. The resulting adjusted tax levies were approximately S4.1 and$13 million for operations
and debt service, respectively, based on a total adjusted taxable valuation of approximately $824
Imillion for the 1993 tax year.
Property taxes receivable,at September 30,1994,consists of the following:
I General Debt
Service
Tax Year Fund Fund
I 1993 S 60,771 S
37,136 19,413
1992 11,747
1991 18,568 6,785
1990 10,442 3,822
I
1989 9,725 2,949
1988 and prior 42,145 16,710
S 178.787 S 61.426
NOTE 4 — LAND, BUILDINGS AND EQUIPMENT
IA summary of changes in the General Fixed Assets Account Group,for the year ended September 30,
1994,follows:
I Balance, Balance,
October 1, Retirements September 30,
1993 Additions and Transfers 1994
111
Land Buildings S 1,928,112 S S 1,023,027 S 2,951,139
2,929,638 553,315 3,482,953
Improvements other
Than buildings 12,662,801 33,695 1,160,779 13,857,275
I Furniture and
equipment 3,714,789 383,909 (34,774) 4,063,924
Construction in
progress 859,166 2,654,040 (2,799,074) 714,132
ITotals S 22.094.506 S 3,071.644 S (96.727) S 25.069.423
I
32
I
I
CITY OF FRIENDSWOOD, TEXAS I
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 4 — LAND, BUILDINGS AND EQUIPMENT(continued) I
Construction in progress and remaining commitments under related construction contracts for general
government construction projects at September 30, 1994 follow:
Authorized Total in Remaining
Project Description Contract Progress Commitment
City hall building S 1,592,858 S 423,576 S 1,169,282 I
Melody Lane Street 230,967 76,989 153,978
Cedarwood Street 232,375 150,898 81,477
Willowick Street 63,530 51,777 11,753
Echo Street 58,988 10,417 48,571
Sidewalk construction 65,440 475 64,965
S 2,244,158 S 714,132 S 1,530,026
A summary of Enterprise Fund fixed assets at September 30, 1994,follows:
Land S 252,528 I
Plant and equipment 9,682,077
Plant and equipment—Blackhawk 9,749,543
Water and sewer lines 11,286,105
Construction in progress 16,834
30,987,087
Less accumulated depreciation (7,642,484)
Total $ 23344.603 I
Construction in progress and remaining commitments under related construction contracts for water
and sewer construction projects at September 30, 1994 follow:
Authorized Total in Remaining I
Project Description Contract Progress Commitment
Elevated storage tank S 50,750 S 10,187 S 40,563 I
Blackhawk wastewater treatment 10,500 6,647 3,853
$ 61.250 S 16,834 S 44.416
I
I
I
33
I
1 CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
1 NOTES TO FINANCIAL STATEMENTS
I
NOTE 5 — LONG—TERM DEBT
The City issues a variety of long—term debt instruments in order to acquire and/or construct major
I
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 which are intended to be
I
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.
IA 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, 1994 follows:
General
I
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 S 2,230,777 S
1993 Refunding Bonds
6,555,000 2004 2.25 — 4.625 3,390,000 2,990,000
5,620,777 2,990,000
Combination Tax and Revenue
Certificates of Obligation
1988 Series
1 4,400,000 1997 7.0 — 8375 690,000
1992 Series
5,000,000 2008 530 — 6.75 2,160,000 2,820,000
I
Revenue Bonds
1969 Series 2,160,000 3,510,000
700,000 1999 53 — 6.125 225,000
I
1979 Series
1,750,000 1996 5.5 — 6.125 105,000
330,000
ITotal Bonds and Certificates of Obligation S 7.780.777 S 6.830.000
Annual debt service requirements including for bonds and certificates of obligation follows:
I
General
Long—Term Enterprise
Fiscal Year Debt Fund
1995 S 1,268,551 S 724,871
I 1996 1,335,778 771,256
1997 877,692 1,219,738
1998 940,360 938,508
1999 924,182 926,206
I Thereafter 5,348,400 10,694, 4,606,533
963 9,187,112
less interest portion (2,914,186) (2,357,112)
1 Total requirements S 7,780,777 S 6,830,000
34
I
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5 — LONG—TERM DEBT(continued)
Accreted Interest on Premium Compound Interest Bonds
A portion of the bonds sold in the Series 1986 refunding bond issue were premium compound interest
bonds. These obligations have par values of S440,777 and maturity values of$1,305,000. The interest
on these obligations will be paid upon maturity in the fiscal years ending September 30,2000,through
2004. The accreted values of these bonds at September 30, 1994, is approximately $820,895; and
accordingly,accreted interest on these bonds of$380,118 has been recorded in the General Long—Term
Debt Account Group.
Note Payable I
During the year ended September 30, 1994, the City entered into an agreement to purchase a tract of
land for building a sports complex. As a result of this agreement,the City issued a note to the seller of I
the property for approximately$598,567. The Note is secured by a first lien Deed of Trust against the
property and is payable in three annual installments bearing an interest rate of 6 percent. The
installments are due on or before September 15, each year. Anticipated future debt service
requirements for this note are as follow: I
Debt Service
Fiscal Year Requirements
1995 $ 235,914
1996 223,914
1997 210,481
Total 670,309
less interest portion (71,742)
Note Payable S 598,567
Obligations Under Capital Lease
� P
The City entered into a capital lease agreement in order to purchase management information system
equipment for the police and fire department. Following is a summary of future lease payments due
on this equipment:
Lease
Fiscal Year Obligation
1995 S 45,453
1996 45,453
1997 45,453
1998 45,453
1999 11,363
Total 193,175
less interest portion (26,714)
Obligations under capital leases S 166,461
35
I
1 CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
I
NOTES TO FINANCIAL STATEMENTS
INOTE 5 — LONG—TERM DEBT(continued)
Prior Year Defeasance of Debt
IIn 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
I
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, 1994,approximately$8.2
million of bonds outstanding are considered defeased.
IChanges in Long—Term Debt
The following are summaries of long—term debt transactions of the City for the year ended
ISeptember 30,1994.
General Long—Term Debt Account Group
Balance, Balance,
October 1, September 30,
1993 Additions Retirements 1994
General obligation bonds $ 6,535,777 S $ (915,000) S 5,620,777
I Certificates of obligation 2,205,000
598,567 (45,000) 2,160,000
Notes Payable 598,567
Obligations under capital
leases 195,924 (29,463) 166,461
I Accreted interest on
premium compound
interest bonds 320,872 59,246 380,118
I $ 9,061,649 S 853.737 S (989.463) $ 8.925.923
I
Enterprise Fund Long—Term Debt
Balance, Balance,
October 1, September 30,
1993 Additions Retirements 1994
I Revenue bonds $ 465,000 $ $ (135,000) $ 330,000
General obligation bonds 3,015,000 (25,000) 2,990,000
I
Certificates of
obligation 3,660,000 (150,000) 3,510,000
$ 7.140,000 $ $ (310.000) S 6,830,000
I
I
36
I
CITY OF FRIENDSWOOD, TEXAS I
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS I
NOTE 5 - LONG-TERM DEBT(continued) 1
Summary of Long-term Debt Requirements
The annual requirements to amortize all long-term debt outstanding at September 30, 1994, I
including interest payments are as follows:
General
Fiscal Long-Term Enterprise
Year Debt Fund Total
1995 S 1,549,918 S 724,871 S 2,274,789
1996 1,605,145 771,256 2,376,401
1997 1,133,626 1,219,738 2,353,364
1998 985,813 938,508 1,924,321
1999 935,545 926,206 1,861,751
2000 1,360,458 492,041 1,852,499
2001 649,639 486,569 1,136,208
2002 645,364 485,157 1,130,521
2003 643,257 488,258 1,131,515
2004 645,723 490,803 1,136,526
2005 346,320 583,530 929,850
2006 350,238 556,825 907,063
2007 352,913 525,012 877,925
2008 354,488 498,338 852,826
S 11.558,447 S 9.187.112 S 20.745.559
NOTE 6 - FUND EQUITY I
Retained Earnings I
A portion of retained earnings in the Enterprise Fund is reserved for the following:
Water and sewer construction S 331,130 I
Surface water construction 35,492
Central service area construction 919,795
Debt service 211,996III
$ 1.498.413
CONTRIBUTED CAPITAL I
The following is a schedule of changes in contributed capital for the Enterprise Fund for the year
ended September 30,1994: I
Contributed capital at beginning of year S 14,812,068
Additions
Contribution from City 408,915
Impact fees 290,217
Contributed Capital at End of Year $ 15511.200
I
37
I
I CITY OF FRIENDS WOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
INOTE 6 — FUND EQUITY(continued)
Fund Balance
IFund Balances in the various Governmental Fund Types are reserved or designated as follows:
Special Capital
IGeneral Revenue Debt Service Projects
Reserved for.
I Encumbrances $ 164,863 $
Debt service 47,281
Total reserved fund
Ibalance $ 164,863 S 47.281
Designated for.
I Emergency
operations $ 850,000 $ $
Police investigations 7,465
Centennial observance 36,234
I Authorized
construction 1,782,959
Total designated fund
balance $ 850.000 $ 43.699 $ 1.782.959
111
I A portion of fund balance ($67,200) in the Non—expendable Trust Fund is reserved for an
endowment.
INOTE 7 — INTERFUND TRANSACTIONS
Operating transfers between funds during the 1994 year were as follow:
IOperating Operating
Transfer From Transfer To Amounts
General Fund Special Revenue Fund S 58,963
I General Fund Debt Service Fund 34,090
General Fund Capital Projects Fund 39,904
Enterprise Fund General Fund 265,189
I Enterprise Fund Enterprise Fund Debt Service Fund 40,615
Capital Projects Fund 750,970
$ 1,189,731
I
38
3
CITY OF FRIENDSWOOD, TEXAS I
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 8 —IMPACT FEES
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 development.An 111
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 projectedIII
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 I
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 I
of a contractual agreement with Bay Area Land Company,Ltd.
The Capital Improvements Plan and Impact Fee structure was amended by City Council on January 7,
1991, to include an impact fee for sanitary sewer collection system costs serving the area known as I
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. 111
Fee Per Single
Equivalent
Service Unit I
City Wide Impact Fees
Surface water facilities S 685
Wastewater treatment facilities 69
Impact fee study and update study 36
Total City Wide Impact Fee S 790
Water Distribution Impact Fees I
Melody Lane service area S 854
Bay Area Boulevard service area 294
South Friendswood service area 293
Wastewater Collection Impact Fees I
Melody Lane service area S 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 I
Area D 161
Area E-1 784
Area E-2 784
Area E-3 161
Area E-4 161
Area F 378
I
39
1
I
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 8 —IMPACT FEES (continued)
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.
' NOTE 9 — RETIREMENT PLANS
A. Texas Municipal Retirement System
Plan Description and Provisions
The City provides pension benefits for all of its full—time employees through a non—traditional,
joint contributory, defined contribution plan in the state—wide Texas Municipal Retirement
System ("TMRS"), one of over 570 administered by TMRS, an agent multiple—employer public
employee retirement system. It is the opinion of TMRS management that the plans in TMRS are
substantially defined contribution plans, but they have elected to provide additional voluntary
disclosure to help foster a better understanding of some of the non—traditional characteristics of
the plan.
Benefits depend upon the sum of the employee's contributions to the plan, with interest,and the
' City—financed monetary credits, with interest. At the inception of the plan, the City granted
monetary credits for service rendered before the plan began of a theoretical amount equal to two
times what would have been contributed by the employee,with interest, prior to establishment of
the plan. Monetary credits for service since initiation of the plan are a percent (100%, 150%, or
200%) of the employee's accumulated contributions. In addition, the City can grant as often as
annually another type of monetary credit referred to as an updated service credit which is a
theoretical amount which, when added to the employee's accumulated contributions and the
monetary credits for service since the plan began, would be the total monetary credits and
' employee contributions accumulated, with interest if the current employee contribution rate and
the City matching percent had always been in existence and if the employee's salary had always
been the average of his salary in the last three years that are one year before the effective date. At
retirement,the benefit is calculated as if the sum of the employee's accumulated contributions with
interest and the employer—financed monetary credits with interest were used to purchase an
annuity.
Members can retire at ages 60 and above with ten or more years of service or with 25 years of
' service regardless of age. The plan also provides for death and disability benefits. A member is
vested after ten years, but he must leave his accumulated contributions in the plan. If a member
withdraws his own money,he is not entitled to the employer—financed monetary credits,even if he
' was vested. The plan provisions are adopted by the governing body of the City,within the options
available in the state statutes governing TMRS and within the actuarial constraints also in the
statutes.
1
40
3
CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 9 — RETIREMENT PLANS (continued)
A. Texas Municipal Retirement System (continued)
Contributions j
The contribution rate for the employees is 6%, and the City's matching percent is currently 150%
of that contribution, both as adopted by the governing body of the City. Under the state law
governing TMRS, the City contribution rate is annually determined by the actuary. This rate
consists of the normal cost contribution rate and the prior service contribution rate,both of which
are calculated to be a level percent of payroll from year to year. The normal cost contribution rate
finances the currently accruing monetary credits due to City matching percent, which are the
obligation of the City as of an employee's retirement date, not at the time the employee's
contributions are made. The normal cost contribution rate is the actuarially determined percent of
payroll necessary to satisfy the obligation of the City to each employee at the time his retirement
becomes effective. The prior service contribution rate amortizes the unfunded actuarial liability
over the remainder of the plan's 25—year amortization period. When the City periodically adopts
updated service credits and increases in annuities, the increased unfunded actuarial liability is to
be amortized over a new 25—year period. Currently, the unfunded actuarial liability is being
amortized over the 25—year period which began January 1991. The unit credit actuarial cost
method is used for determining the City contribution rate. Contributions are made monthly by
both the employees and the City. Since the City needs to know its contribution rate in advance to
budget for it, there is a one—year lag between the actuarial valuation that is the basis for the rate
and the calendar year when the rate goes into effect.
The City's total payroll in fiscal year 1994 was $3,699,490, and the City's contributions were based
on a payroll of $3,339,878. Both the City and the covered employees made the required
contributions, amounting to S208,440 (6.98% of covered payroll for the months in calendar year
1993 consisting of 538% normal cost plus 1.60% to amortize the unfunded actuarial liability,and
5.97% for the months in calendar year 1994 comprised of 5.40% normal cost plus 2.57% to
amortize the unfunded actuarial liability) for the City and$200,363 (6%) for the employees. The
City adopted changes in the plan subsequent to the previous actuarial valuation, which had the
effect of increasing the City's contribution rate for 1994 by 0.50% of payroll. There were no
related—party transactions.
Funding Status and Progress I
Even though the substance of the City's plan is not to provide a defined benefit in some form,
some additional voluntary disclosure is appropriate due to the non—traditional nature of the
defined contribution plan which had an initial unfunded pension benefit obligation due to the
monetary credits granted by the City for services rendered before the plan began and which can
have additions to the unfunded pension benefit obligation through the periodic adoption of
increases in benefit credits and benefits. Statement No. 5 of the Governmental Accounting
Standards Board (GASB 5) defines pension benefit obligation as a standardized disclosure
measure of the actuarial present value of pension benefits, adjusted for the effects of projected
salary increases,estimated to be payable in the future as a result of employee service to date. The
measure is intended to help users assess the funding status of public employee pension plans,
assess progress made in accumulating sufficient assets to pay benefits when due, and make
comparisons among public employee pension plans.
I
41
I
I CITY OF FRIENDSWOOD, TEXAS
Exhibit A-6
1 NOTES TO FINANCIAL STATEMENTS
INOTE 9 — RETIREMENT PLANS (continued)
A. Texas Municipal Retirement System (continued)
IFunding Status and Progress (continued)
The pension benefit obligation shown below is similar in nature to the standardized disclosure
I measure required by GASB 5 for defined benefit plans except that there is no need to project
salary increases since the benefit credits earned for service to date are not dependent upon future
salaries. The calculations were made as part of the annual actuarial valuation as of September 30,
I 1993. Because of the money— purchase nature of the plan,the interest rate assumption,currently
83%per year,does not have as much impact on the results as it does for a defined benefit plan.
Market value of assets is not determined for each City's plan, but the market value of assets for
TMRS as a whole was 1123%of book value as of September 30,1993.
IPension Benefit Obligation
Annuitants currently receiving benefits S 135,734
Terminated employees 577,998
I Current Employees
Accumulated employee contributions,
including allocated invested earnings 1,600,115
I Employer—financed vested 1,584,453
Employer—financed nonvested 347,673
Total Pension Benefit Obligation 4,245,973
I Net assets available for benefits,at book value 3,954,115
Unfunded Pension Benefit Obligation $ 291.858
IUnfunded Pension Benefit Obligation
The book value of assets is amortized cost for bonds and original cost for short—term securities
I and stocks. The assumptions used to compute the actuarially determined City contribution rate
are the same as those used to compute the pension benefit obligation. The numbers above reflect
the adoption of changes in the plan since the previous actuarial valuation,which had the effect of
Iincreasing the pension benefit obligation by$26,527.
Trend information gives an indication of the progress made in accumulating sufficient assets to pay
benefits when due. Ten—year trend information may be found in Table 14 of the Statistical
I Section of the City's comprehensive annual financial report. For the years ended September 30,
1992, 1993, and 1994, respectively, net assets available for benefits were sufficient to fund 75%,
92%, and 93% of the PBO. The unfunded PBO represented 26%, 9%, and 9% of the annual
I
payroll for employees covered by TMRS for 1992, 1993, and 1994, respectively. In addition, the
City's contributions to TMRS were 5.8%, 6.9%, and 6.2%, respectively,of annual covered payroll
for the years ending September 30, 1992,1993,and 1994.
I
42
3
CITY OF FRIENDSWOOD, TEXAS i
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 9 — RETIREMENT PLANS (continued) I
B. Deferred Compensation Plan
The City offers its employees a tax—deferred compensation plan meeting the requirements of
Internal Revenue Code Section 457. The plan was established by City Ordinance which appointed
ICMA Retirement Corporation as plan administrator. The City's fiduciary responsibility is to
remit employee deferred compensation to the administrator on a regular basis. The deferred 111
compensation is not available to employees until termination,retirement, death,or emergency.At
September 30,1994,the plan assets had a market value of$446,805.
All amounts of compensation deferred under the plan, all property and rights purchased with
those amounts,and all income attributable to those amounts,property,or rights are (until paid or
made available to the employee or other beneficiary) solely the property and rights of the City
(without being restricted to the provisions of the benefits under the plan), subject only to the
claims of the City's general creditors. Participants' rights under the plan are equal to those of
general creditors of the City in an amount equal to the fair market value of the deferred account
for each participant.
NOTE 10 —SOUTHEAST WATER PURIFICATION PLANT
The City has entered into a contract with the City of Houston for constructing, operating, and 111
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 133 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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CITY OF FRIENDSWOOD. TEXAS
Exhibit A-6
INOTES TO FINANCIAL STATEMENTS
INOTE 11 — BLACKHAWK REGIONAL WASTE TREATMENT PLANT
The City has entered into an arrangement with the Gulf Coast Waste Disposal Authority for the
I operation and maintenance of a joint waste treatment plant known as Blackhawk Regional Waste
Treatment Plant. The City of Friendswood, the City of Houston, Harris County MUD No. 55, and
CDC, Inc. (the "participants") share in the expense of operation and maintenance based on their
respective usage on a monthly basis. The percentages of equity in the joint venture based on their
Irespective capacity rights,at September 30, 1994,follow
ICity of Friendswood 52.47 %
City of Houston 16.18
Harris County MUD No.55 2027
111
Baybrook MUD No. 1 11.08
100.00 %
An annual budget for operations is submitted to the Gulf Coast Waste Disposal Authority each year.
I 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).
IThe following information on the joint venture was available in the December 31, 1993 audited
financial statements of the Gulf Coast Waste Disposal Authority:
I Joint
Venture
I Total assets $ 479,239
Total liabilities — all current (479,239)
Total revenues 1,551,683
Total expenses (1,551,683)
I $ —0-
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44
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COMBINING,INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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MN I H I - N I I - - r - r 1 N - - MN INN
8
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1 GENERAL FUND
1
The General Fund accounts for the resources used to finance the fundamental operations of the City. It is the basic
fund of the City and covers all activities for which a separate fund has not been established.
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3
CITY OF FRIENDSWOOD, TEXAS I
Exhibit B-1
GENERAL FUND
COMPARATIVE BALANCE SHEET
September 30, 1994 and 1993
1994 1993
Assets
Cash and temporary investments $ 2,188,156 $ 2,156,410 1
Receivables
Taxes 214,671 229,868
Accounts 209,050 195,004
Other assets 63,782 93,534 I
Total Assets S 2,675.659 $ 2.674.816
Liabilities and Fund Balance I
Liabilities
Accounts payable and accrued liabilities $ 356,850 534,406
Compensated absences 678,395 625,610 11
Deferred revenue 308,006 302,165
Total Liabilities 1,343,251 1,462,181
Fund Balance
Reserved for encumbrances 164,863 68,415 I
Unreserved
Designated for emergency operations 850,000 800,000
Undesignated 317,545 344,220 1
Total Fund Balance 1,332,408 1,212,635
Total Liabilities and Fund Balance S 2.675.659 $ 2.674.816 I
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45
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I CITY OF FRIENDS WOOD, TEXAS
Exhibit B-2
GENERAL FUND Page 1 of 7
ISTATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
IYear Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
1994
Variance I
Favorable 1993
Budget Actual (Unfavorable) Actual
Revenues
I Property taxes $ 4,169,467 $ 4,206,305 $ 36,838 $ 3,968,813
Sales taxes 1,033,200 1,001,832 (31,368) 979,890
Franchise fees 543,000 570,031 27,031 530,059
Sanitation 869,421 966,066 96,645 838,542
I Fines and forfeitures 166,300 217,411 51,111 174,487
Permits and fees 305,466 296,003 (9,463) 319,384
Donations 15,694 20,447 4,753 8,609
I Intergovernmental 49,128 48,101 (1,027) 32,273
Interest on investments 100,550 97,880 (2,670) 128,002
Other 75,755 117,591 41,836 138,006
Total Revenues 7,327,981 7,541,667 213,686 7,118,065
IExpenditures
General Government:
Mayor and Council:
I Personnel services 417 252 165 435
Supplies 475 2,216 (1,741) 596
Other services and charges 21,017 17,902 3,115 15,925
ITotal Mayor and Council 21,909 20,370 1,539 16,956
City Manager:
Personnel services 174,966 181,875 (6,909) 152,390
I Supplies 4,509 4,837 (328) 2,981
Repairs and maintenance 1,800 1,028 772 760
Other services and charges 25,431 13,929 11,502 23,120
I Capital outlay 1,037
Total City Manager 206,706 201,669 5,037 180,288
City Secretary:
I Personnel services 107,776 113,643 (5,867) 95,830
Supplies 3,470 3,662 (192) 3,016
Repairs and maintenance 950 706 244 893
I Other services and charges 34,397 32,591 1,806 23,550
Capital outlay 8,000 8,000 700
Total City Secretary 154,593 150,602 3,991 123,989
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CITY OF FRIENDSWOOD, TEXAS 3
Exhibit B-2
GENERAL FUND Page 2 of 7 1
STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL I
Year Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994
Variance
Favorable 1993
Budget Actual (Unfavorable) Actual
Expenditures (continued)
General Government: (continued)
Finance:
Personnel services $ 226,474 $ 230,437 $ (3,963) $ 202,684
Supplies 10,826 8,219 2,607 6,262
Repairs and maintenance 200 236 (36) 163
Other services and charges 29,265 25,698 3,567 28,503
Capital outlay 1,800
Total Finance 266,765 264,590 2,175 239,412 1
Human Resources:
Personnel services 74,735 76,326 (1,591) 68,491
Supplies 5,664 4,531 1,133 5,792 I
Repairs and maintenance 1,250 110 1,140 1,986
Other services and charges 17,669 15,565 2,104 27,011
Total Human Resources 99,318 96,532 2,786 103,280 1
Administration:
Other services and charges 284,192 264,972 19,220 238,789
Total Administration 284,192 264,972 19,220 238,789 1
Municipal Court:
Personnel services 90,634 97,222 (6,588) 69,154
Supplies 3,825 3,694 131 3,214
Repairs and maintenance 100 60 40 75
Other services and charges 15,075 8,101 6,974 2,324
Total Municipal Court 109,634 109,077 557 74,767 I
Computer Services:
Personnel services 51,165 44,139 7,026 44,298
Supplies 17,500 12,949 4,551 16,581 1
Repairs and maintenance 74,306 39,267 35,039 37,581
Other services and charges 68,172 142,518 (74,346) 18,954
Capital outlay 90,199 132,132 (41,933) 54,449 1
Total Computer Services 301,342 371,005 (69,663) _ 171,863
Total General Government 1,444,459 1,478,817 (34,358) 1,149„344 1
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47 i
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I CITY OF FRIENDS WOOD, TEXAS
Exhibit B-2
I GENERAL FUND Page 3 of 7
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
IYear Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994
Variance
I
Favorable 1993
BndRet Actual (Unfavorable) Actual
Expenditures : (continued)
I
Public Safety:
Police Services:
Personnel services $ 1,627,051 $ 1,597,018 $ 30,033 $ 1,577,583
Supplies 83,104 79,785 3,319 89,455
I
Repairs and maintenance 67,809 77,918 (10,109) 78,262
Other services and charges 80,543 70,394 10,149 82,716
Capital outlay 27,015 30,267 (3,252) 118,018
1 Total Police Services 1,885,522 1,855,382 30,140 1,946,034
Communications:
Personnel services 315,321 285,465 29,856 267,180
I Supplies 7,315 5,390 1,925 6,107
Repairs and maintenance 3,050 3,273 (223) 2,971
Other services and charges 6,068 5,459 609 3,128
I Capital outlay 2,000 585
300, 1,415 9,611
Total Communications 333,754 172 33,582 288,997
Animal Control:
I
Personnel services Supplies 57,542 61,984 (4,442) 57,793
6,050 5,926 124 5,946
Repairs and maintenance 2,200 2,031 169 4,184
Other services and charges 5,535 2,647 2,888 2,451 I
Total Animal Control 71,327 72,588 (1,261) 70,374
Fire and EMS:
I Personnel services 161,517 137,222 24,295 131,470
Repairs and maintenance 66,908 2,309 64,599 1,980
Other services and charges 172,740 224,474 (51,734) 222,784
Total Fire and EMS 401,165 364,005 37,160 356,234
IFire Marshal:
Personnel services 70,544 79,331 (8,787) 56,576
1 Supplies 7,975 4,995 2,980 5,929
Repairs and maintenance 1,325 1,509 (184) 1,120
Other services and charges 7,186 6,124 1,062 5,271
Capital outlay 756
I
Total Fire Marshal 87,030 91,959 (4,929) 69,652
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48
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CITY OF FRIENDSWOOD, TEXAS
Exhibit B-2
GENERAL FUND Page 4 of 7 i
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL I
Year Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994
Variance I
Favorable 1993
Budget Actual (Unfavorable) Actual
Expenditures : (continued)
Public Safety: (continued)
Emergency Management:
Personnel services $ 2,057 S 286 $ 1,771 $ 99
Supplies 2,000 607 1,393 972 I
Repairs and maintenance 2,000 350 1,650 1,359
Other services and charges 1,825 1,811 14 2,330
Capital outlay 2,546 2,546 1,454
Total Emergency Management 10,428 3,054 7,374 6,214 1
Total Public Safety 2,789,226 2,687,160 102,066 2,737,505
Public Works:
Administration:
Personnel services 137,293 140,268 (2,975) 134,071
Supplies 2,675 3,096 (421) 2,416 1
Repairs and maintenance 1,400 391 1,009 2,573
Other services and charges 6,544 1,781 4,763 1,655
Total Administration 147,912 145,536 2,376 140,715
Streets: I
Personnel services 251,838 232,405 19,433 244,417
Supplies 76,682 61,450 15,232 53,914
Repairs and maintenance 59,950 58,006 1,944 57,941
Other services and charges 171,457 180,023 (8,566) 166,617
Capital outlay 35,000 34,794 206 14,445
Total Streets 594,927 566,678 28,249 537,334 I
Drainage:
Personnel services 107,728 103,578 4,150 101,814
Supplies 2,110 1,012 1,098 861 I
Repairs and maintenance 13,750 12,726 1,024 12,941 IN
Other services and charges 250 1,022 (772) 5,203
Capital outlay
Total Drainage 123,838 118,338 5,500 120,819
Sanitation:
Other services and charges 849,598 953,186 (103,588) 823,028 ii
Total Sanitation 849,598 953,186 (103,588) 823,028
Total Public Works 1,716,275 1,783,738 (67,463) 1,621,896 1
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I CITY OF FRIENDS WOOD, TEXAS
Exhibit B-2
GENERAL FUND Page 5 of 7
ISTATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I 1994
Variance
I Favorable 1993
Budget Actual (Unfavorable) Actual
Expenditures : (continued)
I Community Development:
Administration:
Personnel services $ 89,006 $ 56,243 $ 32,763 $ 87,137
Supplies 400 701 (301) 481
I Other services and charges 2,550 1,056 1,494 1,825
Total Administration 91,956 58,000 33,956 89,443
I Planning and Zoning:
Personnel services 63,059 63,283 (224) 61,621
Supplies 950 1,288 (338) 1,589
Repairs and maintenance 225 115 110 112
I Other services and charges 35,996 12,015 23,981 1,941
Capital outlay
Total Planning and Zoning: 100,230 76,701 23,529 65,263
I Engineering:
Personnel services 58,428 61,262 (2,834) 46,384
Supplies 3,100 2,855 245 3,270
I Repairs and maintenance 1,715 2,431 (716) 1,973
Other services and charges 22,811 13,117 9,694 2,371
Capital outlay 950 (950) 1,500
Total Engineering: 86,054 80,615 5,439 55,498
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Inspection:
Personnel services 177,514 176,903 611 153,967
I Supplies 7,675 6,311 1,364 6,561
Repairs and maintenance 2,600 1,931 669 2,161
Other services and charges 15,632 13,028 2,604 14,083
Capital outlay
1
Total Inspection 203,421 198,173 5,248 176,772
Total Communimy Development 481,661 413,489 68,172 386,976
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CITY OF FRIENDSWOOD, TEXAS I
Exhibit B-2
GENERAL FUND Page 6 of 7 1
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Ended September 30, 1994 I
with comparative actual balances for the Year Ended September 30, 1993
I
1994
Variance I
Favorable 1993
Budget Actual (Unfavorable) Actual
Expenditures : (continued)
Community Services:
Health Services:
Supplies $ 4,763 $ 4,744 $ 19 $ 2,184
Other services and charges 61,084 42,002 19,082 52,838
Total Health Services 65,847 46,746 19,101 55,022
Library:
Personnel services 330,003 327,572 2,431 295,200 ,
Supplies 78,051 68,813 9,238 67,335
Repairs and maintenance 900 467 433 573
Other services and charges 6,522 6,863 (341) 10,677
Capital Outlay 7,030 2,031_ 4,999
Total Library 422,506 405,746 16,760 373,785
Parks and Recreation
Personnel services 189,731 177,714 12,017 151,737
Supplies 33,625 35,162 (1,537) 25,234
Repairs and maintenance 45,628 39,789 5,839 39,223
Other services and charges 100,275 125,296 (25,021) 140,260 1
Capital Outlay 23,883 18,145 5,738 47,195
Total Parks and Recreation 393,142 396,106 (2,964) 403,649
Community Activities: I
Personnel services 83,799 83,283 516 47,682
Supplies 38,083 17,403 20,680 23,151
Repairs and maintenance 8,594 6,673 1,921 8,924 I
Other services and charges 37,690 41,360 (3,670) 51,845
Capital Outlay 40,098 30,071 10,027 2,528
Total Community Activities 208,264 178,790 29,474 134,130
Swimming Pool: I
Personnel services 35,144 42,450 (7,306) 53,036
Supplies 10,950 9,592 1,358 9,013
Repairs and maintenance 5,000 5,672 (672) 1,435
Other services and charges 6,775 8,678 (1,903) 6,998
Capital Outlay 859
Total Swimming Pool 57,869 66,392 (8,523) 71,341 I
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I CITY OF FRIENDSWOOD, TEXAS
Exhibit B-2
I GENERAL FUND Page 7 of 7
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
IYear Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994
I Variance
Favorable 1993
Budget Actual (Unfavorable) Actual
Expenditures : (continued)
I Community Services: (continued)
Building Operations:
Personnel services $ 32,514 $ 32,983 $ (469) $ 29,817
Supplies 24,830 17,539 7,291 16,380
I Repairs and maintenance 56,912 31,164 25,748 39,677
Other services and charges 211,566 204,984 6,582 188,394
Capital Outlay 1,000 6,396 (5,396) 7,494
v Total Building Operations 326,822 293,066 33,756 281,762
Total Community Services 1,474,450 1,386,846 87,604 1,319,689
ITotal Expenditures 7,906,071 7,750,050 156,021 7,215,410
Revenue Over(Under)
Expenditures (578,090) (208,383) 369,707 (97,345)
IOther Financing Sources(Uses)
Proceeds from capital leases 195,924 195,924
I Operating transfers in 527,967 265,189 (262,778) 248,145
Operating transfers (out) (168,621) (132,957) 35,664 (304,802)
Total Other Financing
ISources(Uses) 359,346 328,156 (31,190) (56,657)
Revenues ant Other Financing Sources
I Over(Under)Expenditures and
Other Financing(Uses) (218,744) 119,773 338,517 (154,002)
Fund balance- beginning 1,212,635 1,212,635 1,366,637
IFund Balance - Ending $ 993,891 $ 1,332,408 S (338,517) S 1,212,635
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SPECIAL REVENUE FUNDS
These funds are used to account for the proceeds of specific revenue sources that are legally restricted to financing
specific purposes. The following describes the various types of Special Revenue Funds used by the City:
1
Police Investigation Fund
This fund receives funds that are restricted to police investigation.
Centenial Fund
This fund receives donations that are restricted for the comemoration of the 1994-95 centennial for the City.
1 Fire/EMS Donation Fund
This fund receives funds that are restricted for Fire/EMS capital outlays.
1
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1
CITY OF FRIENDS WOOD, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 1994
with comparative totals for September 30, 1993
Police Fire/EMS
Investigation Donations Centennial
Assets I
Cash and temporary investments $ 7,465 $ 162 $ 39,073
Total Assets S 7.465 S 162 S 39,073
Liabilities and Fund Balance
Liabilities
Accounts payable and 111
accrued liabilities $ $ 162 $ 2,839
Fund Balances
Unreserved and designated 7,465 36,234
Total Liabilities and ,
Fund Balances S 7.465 S 162 $ 39,073
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Exhibit C-1
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ITotals
1994 1993
I $ 46,700 $ 8,409
IS 46,700 $ 8.409
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$ 3,001 $ 62
I43,699 8,347
IS 46.700 S 8.409
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3
CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
Year Ended September 30, 1994 I
with comparative totals for the Year Ended September 30, 1993
I
Police Parks and Fire/EMS
Investigation Recreation Donations I
Revenues
Donations $ 7,821 S 9,825 S 123,172
Interest 92 57 920 I
Other
Total Revenues 7,913 9,882 124,092
Expenditures
Current:
Public safety 3,055 155,954
Community services 12,278
Total Expenditures 3,055 12,278 155,954
Revenues Over (Under)
Expenditures 4,858 (2,396) (31,862)
Other Financing Sources I
Proceeds from the sale
of equipment 4,950
Transfer in 23,568
Total Other Financing
Sources 28,518
Revenues and Other I
Financing
Sources Over (Under)
Expenditures 4,858 (2,396) (3,344)
Fund balances,
beginning of year 2,607 2,396 3,344 I
Fund Balances,End of Year $ 7.465 S S
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Exhibit C-2
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Totals
Centennial 1994 1993
S S 140,818 $ 73,000
618 1,687 620
27,889 27,889
28,507 170,394 73,620
159,009 77,153
27,668 39,946
27,668 198,955 77,153
839 (28,561) (3,533)
4,950
35,395 58,963 1,399
35,395 63,913 1,399
' 36,234 35,352 (2,134)
8,347 10,481
S 36.234 S 43.699 S 8347
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CITY OF FRIENDSWOOD, TEXAS I
Exhibit C-3
SPECIAL REVENUE FUND(POLICE INVESTIGATION)
STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL
Year Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994 I
Variance
Favorable 1993
Budget Actual (Unfavorable) Actual
Revenues I
Donations S S 7,821 S 7,821 S 814
Interest on investments 50 92 42 103
Total Revenues 50 7,913 7,863 917 I
Expenditures I
Public safety 2,657 3,055_ (398) 4,195
Revenues Over (Under) ,
Expenditures (2,607) 4,858 7,465 (3,278)
Fund balances — Beginning' 2,607 2,607 5,885 I
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Fund Balances — Ending S S 7,465 $ 7,465 S 2,607I
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I CITY OF FRIENDSWOOD, TEXAS
Exhibit C-4
SPECIAL REVENUE FUND(PARKS AND RECREATION)
I STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
IYear Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994 I
Variance
Favorable 1993
Budxet Actual (Unfavorable) Actual
I
Revenues
Donations $ $ 9,825 $ 9,825 $
Interest on investments 57 57 87
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Total Revenues 9,882 9,882 87
IExpenditures
Community services 2,396 12,278 (9,882)
I Revenues Over (Under)
Expenditures (2,396) (2,396) 87
1 Fund balances — Beginning 2,396 2,396 2,309
Fund Balances — Ending S S S S 2396
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CITY OF FRIENDSWOOD, TEXAS I
Exhibit C-5
SPECIAL REVENUE FUND(FIRE/EMS DONATIONS)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL
Year Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994 I
Variance
Favorable 1993
Budget Actual (Unfavorable) Actual
Revenues I
Donations S 138,495 S 123,172 S (15,323) S 72,186
Interest on investments 154 920 766 430
Total Revenues 138,649 124,092 (14,557) 72,616 I
Expenditures I
Public safety 154,943 155,954 (1,011) 72,958
Total Expenditures 154,943 155,954 (1,011) 72,958 I
Revenues (Under)
Expenditures (16,294) (31,862) (15,568) (342) i
Other Financing Sources
Proceeds from the sale .
of equipment 12,950 4,950 (8,000)
Operating transfers in 23,568 23,568 1,399 i
Total Other Financing
Source 12,950 28,518 15,568 1,399
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Revenues and
Other Financing
Source Over(Under)
Expenditures (3,344) (3,344) 1,057
Fund balances— Beginning 3,344 3,344 2,287 I
Fund Balances — Ending S S S S 3,344 I
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I CITY OF FRIENDSWOOD, TEXAS
Exhibit C-6
SPECIAL REVENUE FUND(CENTENNIAL)
I STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL
Year Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994 I .
Variance
Favorable
Budget Actual (Unfavorable)
I Revenues
Interest on investments $ $ 618 $ 618
Other 27,889 27,889
ITotal Revenues 28,507 28,507
IExpenditures
Community services 27,668 (27,668)
ITotal Expenditures 27,668 (27,668)
Revenues Over
Expenditures 839 839
I Other Financing Source
Operating transfers in 35,395 35,395
Total Other Financing
ISource 35,395 35,395
Revenues and
Other Financing
Source Over
Expenditures 36,234 36,234
Fund balances — Beginning
Fund Balances — Ending S S 36.234 $ 36.234
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IDEBT SERVICE FUND
IIThe 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
Exhibit D-1
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEET
September 30, 1994 and 1993 I
1994 1993
Assets
Cash and temporary investments S 47,378 S 49,528 I
Taxes receivable 76,587 83,210
Total Assets S 123.965 S 132.738 111
Liabilities and Equity I
Liabilities
Accounts payable and accrued liabilities $ 97 S 4,027
Deferred revenue 76,587 83,210
Total Liabilities 76,684 87,237
Equity
Fund Balances:
Reserved for debt service 47,281 45,501
Total Equity 47,281 45,501
Total Liabilities and Equity S 123,965 S 132,738 111
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I CITY OF FRIENDS WOOD, TEXAS
Exhibit D-2
DEBT SERVICE FUND I
STATEMENT OF REVENUES,EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
IYear Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993
I
1994
I Variance
Favorable 1993
Budget Actual (Unfavorable) Actual
I Revenues
Property taxes S 1,331,596 S 1,346,913 S 15,317 S 1,280,704
Interest on investments 9,000 7,522 (1,478) 25,573
ITotal Revenues 1,340,596 1,354,435 13,839 1,306,277
I Expenditures
Principal retirement 989,389 989,464 (75) 945,000
Interest retirement 428,272 428,251 21 471,448
Fiscal charges 12,000 9,645 2,355 17,604
I Total Expenditures 1,429,661 1,427,360 2,301 1,434,052
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Revenues Over (Under)
Expenditures (89,065) (72,925) 16,140 (127,775)
Other Financing
I Sources (Uses)
Operating transfers in 54,531 74,705 20,174 95,032
Proceeds from the sale of
refunding bonds 6,471,674
I Payment to refunded bond
escrow agent (6,471,674)
I Total Other Financing
Sources (Uses) 54,531 74,705 20,174 95,032
Revenues and
I Other Financing
Sources Over(Under)
Expenditures and
IOther Financing(Uses) (34,534) 1,780 36,314 (32,743)
Fund balances- Beginning 45,501 45,501 78,244
IFund Balances - Ending S 10.967 S 47,281 S 36 314 S 45.501
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ICAPITAL PROJECTS FUNDS
IThe Capital Projects Funds account for financial resources used for the acquisition and/or construction of major
capital facilities.
ICapital Projects — Used to account for non—building capital projects and infrastructure.
Capital Facility— Used to account for building related projects.
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CITY OF FRIENDSWOOD, TEXAS
Exhibit E-1
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
September 30, 1994
with comparative totals for September 30, 1993
Capital Capital Totals
Projects Facility 1994 1993
Assets
Cash and temporary investments S 519,535 $ 1,486,253 $ 2,005,788 $ 2,789,378
Other assets— inventories 5,087 5,087 14,390
1
Total Assets S 524,622 S 1,486.253 S 2.010.875 S 2.803,768
1
Liabilities and
Fund Balances 1
Liabilities
Accounts payable and
accrued liabilities S 114,274 $ 113,642 $ 227,916 $ 114,644
Fund Balances
Reserved for encumbrances 425,908
Unreserved and designated 410,348 1,372,611 1,782,959 2,263,216
Total Fund Balances 410,348 1,372,611 1,782,959 2,689,124
Total Liabilities and
Fund Balances S 524.622 $ 1.486,253 S 2.010.875 S 2.803.768
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I CITY OF FRIENDSWOOD, TEXAS
Exhibit E-2
I
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
' Year Ended September 30, 1994
with comparative totals for the Year Ended September 30, 1993
I
Capital Capital Totals
I
Projects Facility 1994 1993
Revenues
Donations S 14,330 S 273,476 S 287,806 S 611,919
Interest 17,983 63,150 81,133 62,072
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Other 30,005 950 30,955 25
Total Revenues 62,318 337,576 399,894 674,016
I Expenditures
Capital Outlay:
Public Works:
I
Streets Drainage 786,053 786,053 812,617
20,833 20,833 178,652
Community Services:
Parks and recreation 906,244 906,244 800,549
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Building operations 982,370 982,370 526,976
Total Expenditures 1,713,130 982,370 2,695,500 2,318,794
IRevenues (Under)
Expenditures (1,650,812) (644,794) (2,295,606) (1,644,778)
111 Other Financing Sources
Transfers in 615,984 174,890 790,874 1,467,829
Proceeds from the sale of
I notes payable 598,567 598,567
Proceeds from the sale of
certificates of obligation 2,160,000
ITotal Other
Financing Sources 1,214,551 174,890 1,389,441 3,627,829
I Revenues and
Other Financing
Sources Over (Under)
I
Expenditures (436,261) (469,904) (906,165) 1,983,051
Fund balances,
beginning of year 846,609 1,842,515 2,689,124 706,073
IFund Balances,
End of Year S 410,348 S 1,372,611 S 1,782.959 S 2.689,124
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ENTERPRISE FUND
' The Enterprise Fund is used to account for the acquisition,operation and maintenance of governmental facilities and
services which are entirely or predominantly self—supporting by user charges. The operations of the water and sewer
system are accounted for in the Enterprise Fund to reflect the results of operations similar to private enterprises.
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I CITY OF FRIENDS WOOD, TEXAS
Exhibit F-1
I ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
September 30, 1994 and 1993
I 1994 1993
Assets
Current Assets
I Cash and temporary investments S 1,710,134 S 2,528,339
Receivables:
Customer accounts 655,513 656,821
Interest 5,531 28,588
I Investment in Blackhawk joint venture 172,831 140,927
Other assets 60,280 73,380
Total Current Assets 2,604,289 3,428,055
ILand,buildings and equipment,at cost 30,987,087 29,657,680
Less accumulated depreciation (7,642,484) (6,955,141)
ILand, Buildings,and Equipment,Net 23,344,603 22,702,539
Total Assets S 25.948.892 S 26,130594
Liabilities and Fund Equity
I Current Liabilities
Accounts payable and accrued liabilities S 405,270 S 595,156
Compensated absences 72,056 64,696
I Customer deposits 164,850 147,535
Bonds payable,current portion 165,000 160,000
certificates pf obligation payable,current portion 210,000 150,000
Total Current Liabilities 1,017,176 1,117,387
'
Lone—Term Liabilities
Bonds payable,less current portion 3,155,000 3,320,000
I certificates of obligation payable,less current portion 3,300,000 3,510,000
Total Long—Term Liabilities 6,455,000 6,830,000
Total Liablities 7,472,176 7,947,387
IFund Equity
Contributed capital 15,511,200 14,812,068
I Retained Ernings:
Reserved 1,498,413 1,229,135
Unreserved 1,467,103 2,142,004
I 2,965,516 3,371,139
Total Fend Equity 18,476,716 18,183,207
I
Total Liabilities and Fund Balance S 25,948,892 S 26,130,594
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CITY OF FRIENDS WOOD, TEXAS 1
Exhibit F-2
ENTERPRISE FUND Page 1 of 2 I
SCHEDULE OF REVENUES,EXPENSES, AND
CHANGES IN RETAINED EARNINGS -
BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS) I
Year Ended September 30, 1994
with comparative actual balances for the Year Ended September 30, 1993 1
1994 I
Variance
Favorable 1993
Budget Actual (Unfavorable) Actual
Operating Revenues
Water charges $ 2,475,000 $ 2,545,515 $ 70,515 $ 2,612,847
Sewer charges 1,176,076 1,226,495 50,419 1,070,081
Fees and penalties 84,000 91,565 7,565 85,820
Impact fees 272,653 290,217 17,564 353,018 I
Other 30,250 32,869 2,619 39,818
Total Operating Revenues 4,037,979 4,186,661 148,682 4,161,584
Operating Expenses I
Water Operations:
Personnel services 220,821 214,644 6,177 211,831
Supplies 35,175 51,149 (15,974) 45,432
Repairs and maintenance 111,002 98,356 12,646 92,131
Other services and charges 597,194 496,565 100,629 474,716
Capital outlay 376,958 318,154 58,804 229,069
Total Water Operations 1,341,150 1,178,868 162,282 1,053,179
Sewer Operations:
Personnel services 177,110 173,654 3,456 164,690
Supplies 12,643 10,044 2,599 10,904
Repairs and maintenance 93,200 132,474 (39,274) 85,971
Other services and charges 800,040 777,884 22,156 801,487
Capital outlay 1,405,307 647,933 757,374 1,632,889
Total Sewer Operations 2,488,300 1,741,989 746,311 2,695,941
Operation Administration: I
Personnel services 91,108 91,218 (110) 84,923
Supplies 2,150 1,982 168 2,194
Repairs and maintenance 775 153 622 303
Other services and charges 1,847 1,515 332 933 I
Capital outlay 741 (741)
Total Operation
Administration 95,880 95,609 271 88,353 '
Finance Administration:
Personnel services 136,939 123,013 13,926 130,234
Supplies 7,525 4,578 2,947 6,472
Repairs and maintenance 2,200 3,906 (1,706) 2,237 I
Other services and charges 39,650 38,332 1,318 24,189
Total Finance
Administration 186,314 169,829 16,485 163,132
Computer Services: I
Supplies 2,100 931 1,169 887
Repairs and maintenance 5,050 2,593 2,457 3,387
Other services and charges 5,550 99 5,451 20 ,
Capital outlay 3,400 846 2,554 6,758
Total Computer Services 16,100 4,469 11,631 11,052
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I CITY OF FRIENDS WOOD, TEXAS
Exhibit F-2
I ENTERPRISE FUND Page 2 of 2
SCHEDULE OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS -
BUDGET AND ACTUAL
I (NON-GAAP BUDGETARY BASIS)
Year Ended September 30, 1994
Iwith comparative actual balances for the Year Ended September 30, 1993
1994 I
Variance
Favorable 1993
Budget Actual (Unfavorable) Actual
I Operating Expenses(continued)
Insurance:
Other services and charges 28,844 25,867 2,977 26,259
Total Insurance 28,844 25,867 2,977 26,259
I Engineering:
Personnel services 55,271 53,410 1,861 50,029
Supplies 1,700 2,160 (460) 1,910
I Repairs and maintenance 1,500 1,426 74 1,406
Other services and charges 9,686 9,686 24,424
Total Engineering 68,157 56,996 11,161 77,769
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Total Operating Expenses 4,224,745 3,273,627 951,118 4,115,685
Operating Income (Lou) (186,766) 913,034 1,099,800 45,899
Nonoperating Revenues
I (Expenses)
Interest revenue 66,588 101,820 35,232 172,257
Proceeds from obligation debt 2,940,000
I Principal retirement (310,000) (310,000) (310,000)
Interest expense (372,589) (371,774) 815 (390,307)
Total Nonoperating
Revenues (Expenses) (616,001) (579,954) 36,047 2,411,950
IOperating Transfers (Out) (1,174,685) (1,033,206) 141,479 (1,507,603)
Net Income (Lou).
I (Budgetary Basis) S (1,977.452) (700,126) S 1277,326 950,246
Adjustments
Impact fees (290,217) (353,018)
I Depreciation expense (692,954) (695,616)
Capital outlay 967,674 1,868,716
Proceeds from obligation debt (2,940,000)
Principal retirement 310,000 310,000
I
Net Adjustments 294,503 (1,809,918)
Net (Loss) (GAAP Basis) (405,623) (859,672)
I Retained earnings,
beginning of year 3,371,139 4,230,811
I Retained Earnings,
End of Year $ 2.965516 S 3,371,139
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CITY OF FRIENDSWOOD, TEXAS I
Exhibit F-3
ENTERPRISE FUND '
SCHEDULE OF BONDS PAYABLE -
BY MATURITY DATE
September 30, 1994 I
Due During Annual Requirements for All Series Series 1969111
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 '
1995 $ 165,000 S 138,501 S 303,501 S 40,000 S 14,685 $ 54,685
1996 120,000 131,401 251,401 40,000 12,122 52,122 '
1997 575,000 117,447 692,447 45,000 9,253 54,253
1998 615,000 93,399 708,399 50,000 5,895 55,895 '
1999 635,000 66,835 701,835 50,000 2,048 52,048
2000 220,000 48,576 268,576 I
2001 230,000 39,179 269,179
2002 240,000 29,011 269,011
2003 255,000 17,993 272,993
2004 265,000 6,128 271,128
Totals $ 3320.000 $ 688.470 S 4.008.470 S 225.000 S 44,003 S 269.003
Due During Series 1979 Series 1993 I
Fiscal Year Principal Interest Due Principal Interest Due
Ending Due November 1, Due March 1,
Sept.30, November 1 May 1 Total March 1 September 1 Total I
1995 $ 100,000 S 3,025 S 103,025 S 25,000 S 120,791 S 145,791
1996 5,000 138 5,138 75,000 119,141 194,141
1997 530,000 108,194 638,194 I
1998 565,000 87,504 652,504
1999 585,000 64,787 649,787 1
2000 220,000 48,576 268,576 ,
2001 230,000 39,179 269,179
2002 240,000 29,011 269,011
2003 255,000 17,993 272,993
2004 265,000 6,128 271,128 '
Totals $ 105.000 S 3.163 S 108.163 S 2.990,000 S 641304 S 3.631304
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I CITY OF FRIENDS WOOD, TEXAS
Exhibit F-4
I ENTERPRISE FUND
SCHEDULE OF CERTIFICATES OF OBLIGATION -
BY MATURITY DATE
September 30, 1994
I Due During Annual Requirements for All Series Series 1988
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
I 1995 $ 210,000 $ 211,370 $ 421,370 $ 145,000 $ 51,074 $ 196,074
1996 330,000 189,855 519,855 260,000 34,115 294,115
1997 365,000 162,291 527,291 285,000 11,613 296,613
1 1998 85,000 145,109 230,109
1999 85,000 139,371 224,371
I 2000 90,000 133,465 223,465
2001 90,000 127,390 217390
2002 95,000 121,146 216,146
I 2003 100,000 115,265 215,265
2004 110,000 109,675 219,675
2005 490,000 93,530 583,530
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2006 490,000 66,825 556,825
2007 485,000 40,012 525,012
I 2008 485,000 13,338 498,338
Totals S 3510,000 1,668.642 S 5.178.642 $ 690.000 S 96.802 $ 786.802
I Due During Series 1992
Fiscal Year Principal Interest Due
Ending Due November 1,
Sept.30, November 1 May 1 Total I
1994 S 65,000 $ 160,296 $ 225,296
1995 70,000 155,740 225,740
I 1996 80,000 150,678 230,678
1997 85,000 145,109 230,109
1998 85,000 139,371 224,371
I
1999 90,000 133,465 223,465
2000 90,000 127,390217,390
2001 95,000 121,146 216,146 I
2002 100,000 115,265 215,265
2003 110,000 109,675 219,675
I 2004 490,000 93530 583,530
2005 490,000 66,825 556,825
2006 485,000 40,012 525,012
I2008 485,000 13,338 498,338
Totals $ 2.820.000 5 1.571.840 5 4391.840
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INN MI NM MI -- -- - -■r - 11111 -- -- 11111 -- M- -- - N - -
TRUST AND AGENCY FUNDS
1776 Park Trust Fund
' This fund has been established by the City to account for 1776 Park assets held
Deferred Compensation Agency Fund
This fund is used to account for assets held for employees in accordance with the provisions of Internal Revenue
Code Section 457.
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CITY OF FRIENDSWOOD, TEXAS
Exhibit G-1
I TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
September 30, 1994
Iwith comparative totals for September 30, 1993
I Non—
Expendable
I Trust Agency
1776 Deferred Totals
Park Compensation 1994 1993
Assets
ICash and temporary investments S 29,854 $ 446,805 $ 476,659 $ 407,431
Land 57,200 57,200 57,200
Total Assets S 87.054 S 446.805_ S 533,859 S 464.631
ILiabilities and
Fund Balance
ILiabilities
Deferred compensation
Ibenefits payable $ $ 446,805 $ 446,805 $ 378,444
Fund Balances
Reserved for endowments 67,200 67,200 67,200
IUnreserved and designated 19,854 19,854 18,987
Total Fund Balances 87,054 87,054 86,187
ITotal Liabilities and
Fund Balances S 87.054 S 446.805 S 533.859 S 464,631
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CITY OF FRIENDSWOOD, TEXAS
Exhibit G-2
1776 PARK TRUST FUND (NON—EXPENDABLE TRUST)
COMPARATIVE STATEMENTS OF REVENUES AND
CHANGES IN FUND BALANCE
Year Ended September 30, 1994 '
with comparative totals for the Year Ended September 30, 1993
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1994 1993
Revenues
Interest on investments S 867 $ 1,048
Fund balances,beginning mofyear 86,187 85 139
8� 8 >
Fund Balances, End of Year S 87.054 S 86.187
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' CITY OF FRIENDSWOOD, TEXAS
Exhibit G-3
' DEFERRED COMPENSATION AGENCY FUND
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
Year Ended September 30, 1994
' Balance Balance
October 1, September 30,
1993 Additions Deletions 1994
Assets
' Temporary investments S 378.444 S 68,929 S 568 S 446,805
Liabilities
Deferred compensation
benefits payable S 378,444 S 68.929 $ 568 S 446.805
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1 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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ICITY OF FRIENDS WOOD, TEXAS
Exhibit H-1
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GENERAL FIXED ASSETS
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS —
BY SOURCE
1 September 30, 1994 and 1993
1 1994 1993
I General Fixed Assets
Land $ 2,951,139 $ 1,928,112
Buildings 3,482,953 2,929,638
Improvements 13,857,275 12,662,801
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Equipment 4,063,924 3,714,789
Construction in progress 714,132 859,166
1 Total General Fixed Assets S 25,069,423 $ 22,094.506
I Investment in General Fixed Assets From
General obligation bonds $ 4,575,234 $ 4,572,653
Time warrants and certificates of
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obligation 2,050,917 908,293
Federal,state,and local obligations 3,124,864 3,105,932
Municipality 13,192,450 11,879,015
Donations 2,125,958 1,628,613
ITotal Investment in
General Fixed Assets S 25,069,423 S 22.094506
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CITY OF FRIENDSWOOD, TEXAS I
GENERAL FIXED ASSETS
SCHEDULE OF GENERAL FIXED ASSETS —
BY FUNCTION AND ACTIVITY
September 30, 1994 1
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Function and Activity Land Buildings
General Government
Inspections $ $
City Hall 453,389 606,934
Total General Government 453,389 606,934 1
Public Safety
Police 153,830
Fire 18,000 267,322
Animal control 65,968
Emergency management
Total Public Safety 18,000 487,120
Public Works
Streets and drainage 245,777 168,702
Sanitation 3,500
Total Public Works 249,277 _ 168,702 I
Community Services
Library 28,838 1,405,341
Parks and recreation 2,201,635 134,460
Swimming pool 680,396
Total Community Services 2,230,473 2,220,197 I
Construction in progress
Total General Fixed Assets $ 2.951,139 S 3.482,953
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Exhibit H-2
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IConstruction
Improvements Equipment In Progress Total
IS S 24,202 S S 24,202
27,504 642,785 1,730,612
I27,504 666,987 1,754,814
I 16,760 863,770 1,034,360
1,482,303 1,767,625
2,708 27,086 95,762
I39,917 39,917
19,468 2,413,076 2,937,664
III12,852,863 225,882 13,493,224
254,997 30,514 289,011
I13,107,860 256,396 13,782,235
I 17,693 186,266
522,263 1,638,138
681,517 3,539,875
3,233 18,936 702,565
I702,443 727,465 5,880,578
714,132 714,132
S 11857.275 S 4.063,924 S 714,
132 S 25.069.423
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ICITY OF FRIENDSWOOD, TEXAS
Exhibit H-3
I GENERAL FIXED ASSETS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS —
BY FUNCTION AND ACTIVITY
September 30, 1994
1 General General
Fixed Assets Fixed Assets
Function and October 1, Tansfers and September 30,
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Activity 1993 Additions Retirements 1994
General Government
I Inspections City Hall $ 24,202 $ $
$ 24,202
1,647,945 132,132 (49,465) 1,730,612
Total General Government 1,672,147 132,132 (49,465) 1,754,814
IPublic Safety
Police 1,027,467 33,507 (26,614) 1,034,360
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Fire 1,607,175
95,762 160,950 (500) 1,767,625
Animal control 95,762
Emergency management 39,917 39,917
ITotal Public Safety 2,770,321 194,457 (27,114) 2,937,664
Public Works
1 Streets and drainage 12,233,743 40,768 1,218,713 13,493,224
Sanitation 289,011 289,011
Total Public Works 12,522,754 40,768 1,218,713 13,782,235
ICommunity Services
Library 1,082,262 2,030 553,846 1,638,138
Parks and recreation 2,485,291 48,217 1,006,367 3,539,875
ISwimming pool 702,565 702,565
Total Community Services 4,270,118 50,247 1,560,213 5,880,578
IConstruction in progress 859,166 2,654,040 (2,799,074) 714,132
ITotal General Fixed Assets S 22.094.506 $ 3.071,644 $ (96,727) $ 25.069.423
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GENERAL LONG—TERM DEBT
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I This account group is established to account for the principal outstanding on general obligation bonds and other
long—term liabilities.
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CITY OF FRIENDSWOOD, TEXAS
Exhibit I-1
I COMPARATIVE SCHEDULES OF
GENERAL LONG—TERM DEBT
September 30, 1994 and 1993
I1994 1993
Amount Available and to be Provided for
Ithe Payment of General Long—Term Debt
Amount available in Debt Service Fund $ 47,281 $ 45,501
I Amount to be provided for retirement of
general long—term debt 8,878,716 9,016,148
Total Amount Available and
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to be Provided S 8.925.997 $ 9.061.649
IGeneral Long—Term Debt Payable
Accrued interest on premium compound
interest bonds $ 380,118 S 320,872
INotes payable 598,567
IObligations under capital leases 166,535
Certificates of obligation 2,160,000 2,205,000
IGeneral obligation bonds 5,620,777 6,535,777
Total General Long—Term Debt Payable S 8.925.997 S 9.061.649
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CITY OF FRIENDSWOOD, TEXAS I
SCHEDULE OF CHANGES IN GENERAL LONG—TERM DEBT
September 30, 1994 and 1993
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Amounts
Date of Interest Originally
Issue Description Rate Payable Issued
08/15/86 Refunding Bonds— Series 1986 4.25% — 7.9 % $ 10,650,777 I
12/01/88 Certificates of Obligation — 7.0% — 8375% 4,400,000
Series 1988
10/19/92 Certificates of Obligation —
Series 1992 5.5 % =6.75 % 2,160,000 I
04/14/93 Refunding Bonds— Series 1993 2.25% 4.625% 3,480,000
Notes payable 598,567
Obligations under capital leases 195,924 I
Accrued interest on premium
compound interest bonds
Totals
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Exhibit I-2
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Amounts Amounts
I Outstanding Issued Retired Outstanding Interest
October 1, Current Current September 30, Current
1993 Year Year 1994 Year
I $ 3,120,777 S S 890,000 S 2,230,777 S 159,175
45,000 45,000 1,884
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2,160,000 2,160,000 124,845
I3,415,000 25,000 3,390,000 137,720
8,740,777 960,000 7,780,777 423,624
598,567 598,567
I195,924 29,389 166,535 4,701
320,872 59,246 380,118
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S 9.061.649 S 853.737 S 989389 S 8.925.997 S 428,325
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CITY OF FRIENDS WOOD, TEXAS I
SCHEDULE OF GENERAL LONG-TERM DEBT
SERVICE REQUIREMENTS TO MATURITY
September 30, 1994 ,
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
1995 $ 1,149,185 $ 400,733 $ 1,549,918 $ 855,000 $ 97,673 $ 952,673 1
1996 1,284,185 320,960 1,605,145 935,000 33,660 968,660
1997 872,752 260,874 1,133,626
1998 764,185 221,628 985,813 I
1999 749,795 185,749 935,544
2000 640,833 719,625 1,360,458 310,833 559,167 ' 870,000
2001 390,898 258,741 649,639 55,898 114,102 • 170,000 I
2002 457,209 188,155 645,364 27,209 62,791 ' 90,000
2003 474,993 168,264 643,257 24,993 65,007 ' 90,000 '
2004 501,844 143,879 645,723 21,844 63,156 • 85,000
2005 285,000 61,320 346,320
2006 305,000 45,238 350,238 I
2007 325,000 27,913 352,913
2008 345,000 9,488 354,488
Totals $ 8545.879 $ 3.012367 S 11.558.446 $ 2.230.777 $ 995,556 $ 3.226.333 I
Due During
Fiscal Year
Ending Notes Payable Obligations Under Capital Leases
Sept.30, Principal Interest Total Principal Interest Total
1995 $ 200,000 $ 35,914 $ 235,914 $ 39,185 $ 6,268 $ 45,453 ,
1996 200,000 23,914 223,914 39,185 6,268 45,453
1997 198,567 11,914 210,481 39,185 6,268 45,453
1998 39,185 6,268 45,453
1999 9,795 1,567 11,362
2000
2001
2002
2003
2004
2005
2006
2007
2008
Totals $ 598567 $ 71.742 $ 670309 $ 166.535 S 26,639 $ 193.174 I
* Accrued interest on premium compound interest bonds.
80
I
I
Exhibit I-3
I
I
Certificates of Obligation Refunding Bonds
Due During Series 1992 Series 1993
I Fiscal Year Principal Interest Due Principal Interest Due
Ending Due March 1, Due March 1,
Sept.30, March 1 September 1 Total March 1 September 1 Total
1995 $ 30,000 $ 123,833 $ 153,833 $ 25,000 $ 137,045 $ 162,045
I1996 30,000 121,808 151,808 80,000 135,310 215,310
1997 30,000 119,783 149,783 605,000 122,909 727,909
I
1998 80,000
80,000 116,070 196,070 645,000 99,290 744,290
1999 110,670 190,670 660,000 73,512 733,512
2000 80,000 105,270 185,270 250,000 55,188 305,188
111
2001 70,000 100,208 170,208 265,000 44,431 309,431
2002 155,000 92,614 247,614 275,000 32,750 307,750
2003 165,000 82,969 247,969 285,000 20,288 305,288
I
2004 180,000 73,785 253,785 300,000 6,938 306,938
2005 285,000 61,320 346,320
I
2006 305,000
325,000 45,238 350,238
2007 27,913 352,913
2008 345,000 9,488 354,488
I
Totals $ 2.160.000 $ 1.190.969 $ 3350.969 $ 3.390.000 $ 727,661 $ 4.117.661
I
I
I
1
I
I
I
81
� UNAUDITED STATISTICAL SECTION
1
1
I
CITY OF FRIENDSWOOD, TEXAS I
GENERAL GOVERNMENT REVENUES BY SOURCE
Last Ten Fiscal Years
1
Function 1985 1986 1987 1988
General property taxes S 3,319,149 S 3,826,171 S 4,421,343 S 4,442,540 I
Sales taxes 425,877 484,735 518,939 510,574
Franchise taxes 273,184 297,585 332,432 375,755 I
Sanitation 532,701 470,177 525,592 545,130
Fines and forfeitures 138,302 120,195 184,359 142,516
Permits and fees 138,074 148,740 124,913 125,083 I
Intergovernmental revenue 535,955 124,114 94,015 48,985
Interest on investments 127,909 88,521 91,011 196,647 I
Other revenue 41,551 28,850 45,342 106,057
S 5.532.702 S 5.589.088 S 6,337.946 S 6.493.287 I
I
Includes General,Special Revenue and Debt Service Funds.
Source - Accounting records of the City. I
1
I
I
I
I
82
I
I
Table 1
I
I
1989 1990 1991 1992 1993 1994
I $ 4,562,856 $ 4,557,133 $ 4,749,173 S 4,958,863 S 5,249,517 S 5,553,218
607,349 690,327 742,725 808,405 979,890 1,001,832
I400,986 419,062 456,566 541,841 530,059 570,031
542,911 595,244 733,245 780,604 838,542 966,066
I
190,106 166,982 166,355 171,154 174,487 217,411
I
143,105 240,294 286,421 337,539 319,384 296,003
53,464 50,984 28,641 34,006 32,273 48,101
I185,037 222,328 232,773 153,558 154,195 107,089
118,539 115,107 139,525 208,466 219,615 330,313
I $ 6.804,353 S 7.057.461 S 7.535.424 S 7.994.436 S 8.497.962 S 9.090.064
I
I
I
I
I
I
I
83
I
I
CITY OF FRIENDSWOOD, TEXAS
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
I
Function 1985 1986 1987 1988
General government S 954,086 S 1,221,176 S 1,473,875 S 1,143,024 III
Public safety 1,388,760 1,737,503 1,870,538 1,934,317
Public works 1,036,157 1,208,630 1,237,644 1,128,195 I
Community development 249,684
Community services 441,331 532,374 727,525 814,380
Debt service 997,114 1,064,286 1,314,714 1,344,693 I
S 4.817,448 S 5.763.969 S 6,624,296 S 6,614,293
i
Includes General,Special Revenue and Debt Service Funds.
Source — Accounting records of the City.
1
i
I
I
I
1
I
84
i
I
I
Table 2
I
I
1989 1990 1991 1992 1993 1994
I $ 1,167,194 S 1,258,050 S 1,085,683 S 1,112,882 S 1,149,344 S 1,478,817
2,038,066 2,173,685 2,478,564 3,061,016 2,814,658 2,846,169
I1,108,423 1,196,889 1,521,841 1,537,447 1,621,896 1,783,738
I
257,750 281,723 289,501 326,854 386,976 413,489
768,533 949,048 1,048,606 1,087,039 1,319,689 1,426,792
I
1,305,728 1,304,597 1,301,928 1,315,242 1,434,052 1,427,360
S 6.645.694 S 7.163. 2 S 7.726.123 S 8.440.480 S 8.726.615 S 9.376,365
I
I
I
I
I
I
I
I
I
85
I
CITY OF FRIENDSWOOD, TEXAS
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
1985 1984 $ 0.7200 $ 3,348,234 $ 3,224,304 9630 % I
1986 1985 0.7095 3,870,699 3,680,672 95.09 I
1987 1986 0.6950 4,369,541 4,245,550 97.16
1988 1987 0.6950 4,351,363 4,248,363 97.63
1989 1988 0.6950 4,553,066 4,433,139 9737
1990 1989 0.6950 4,531,537 4,427,153 97.70Il
1991 1990 0.6950 4,636,066 4,561,109 9838
1992 1991 0.6950 4,869,697 4,782,350 9821
1993 1992 0.6630 5,179,275 5,081,084 98.10
1994 1993 0.6630 5,465,316 5,384,023 9851 1
I
Source —Tax assessor/collector's records. 1
I
I
I
I
I
86
i
I
ITable 3
I
I
Total Outstanding
Collections Delinquent
I Delinquent as Percent Outstanding Taxes as
Tax Total Tax Current Delinquent Percent of
Collections Collections Levy Taxes Levy
1 $ 60,431 $ 3,284,735 98.10 % $ 232,879 6.96
94,625 3,775,297 9734 328,281 8.48
I133,831 4,379,381 10023 318,441 7.29
I 119,687 4,368,050 10038 301,754 6.93
79,695 4,512,834 99.12 341,986 731
I74,484 4,501,637 9934 371,886 8.21
107,112 4,668,221 100.69 339,731 733
120,660 4,903,010 100.68 306,418 629
91,531 5,172,615 99.87 313,078 6.04
I103,113 5,487,136 100.40 291,258 533
I
1
I
I
I
1
I87
I
I CITY OF FRIENDSWOOD, TEXAS
Table 4
ASSESSED AND ESTIMATED
I
ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
I
I
Ratio of
Fiscal Year Estimated Assessed Value
Ended Tax Assessed Actual to Estimated
Sept. 30, Year Value Value Actual Value
I1985 1984 $ 465,032,500 $ 598,869,520 77.65
1986 1985 534,102,932 645,891,660 82.69 I
1987 1986 628,710,940 760,787,760 82.64
1 1988 1987 626,095,422 763,454,517 82.01
1989 1988 634,729,000 729,914,210 86.96
I
1990 1989 653,106,888 759,841,760 85.95
1991 1990 667,059,850 761,569,171 87.59
I1992 1991 700,373,270 806,261,160 86.87
1993 1992 781,187,783 917,420,470 85.15
1 1994 1993 825,111,643 976,268,953 84.52
1
ISource —Tax assessor/collector's records.
I
I
1
I
88
I
CITY OF FRIENDSWOOD, TEXAS 1
PROPERTY TAX RATES AND TAX LEVIES -
DIRECT AND OVERLAPPINGI
Last Ten Fiscal Years
Friendswood Clear Creek
Independent Independent Clear Creek 1
Tax City of School School Drainage
Fiscal Year Year Friendswood District District District
Tax Levies I
1985 1984 $ 3,348,234 $ 5,123,436 $ 31,308,670 $ 609,854
1986 1985 3,870,699 5,802,869 41,309,808 742,703 I
1987 1986 4,369,541 6,205,039 44,892,680 740,222
1988 1987 4,351,363 6,533,297 45,544,888 763,695 i
1989 1988 4,553,066 6,849,562 46,984,529 771,330
1990 1989 4,531,537 7,611,417 54,340,449 781,367 ,
1991 1990 4,636,066 7,818,079 69,557,334 806,204
1992 1991 4,866,767 8,876,657 77,572,430 856,973
1993 1992 5,179,275 10,772,828 91,172,650 899,822
1994 1993 5,464,207 11,518,030 95,705,135 1,037,657
Tax Rates (*) I
1985 1984 $ 0.7200 $ 1.4600 $ 0.8200 $ 0.1500 •
1986 1985 0.7095 1.4600 0.9200 0.1500
1987 1986 0.6950 1.4100 0.9200 0.1500 •
1988 1987 0.6950 1.4100 0.9500 0.1500
1989 1988 0.6950 1.4100 0.9500 0.1500
1990 1989 0.6950 15500 1.0750 0.1500 I
1991 1990 0.6950 1.5500 1.2890 0.1500
1992 1991 0.6950 1.6500 12990 0.1500 I
1993 1992 0.6630 1.7200 1.4256 0.1500
1994 1993 0.6630 1.6180 1.4600 0.1450 I
Source - Tax Department records of the various taxing authorities. I
(*) Per$100 valuation.
I
89
1
I
I
Table 5
1
Port of Harris County
Harris Galveston Houston Harris County Hospital
County County Authority Flood Control District
S 312,288,939 $ 28,607,391 $ 9,005,427 $ 56,430,869 S 144,832,854
I
321,822,000 29,255,237 10,899,213 63,456,864 155,479,182
314,026,255 25,228,511 8,786,390 70,125,656 148,971,673
I 317,153,627 31,021,686 7,748,212 40,312,374 157,500,730
316,515,115 28,734,107 11,721,027 40,396,410 156,997,245
I 342,106,783 33,270,892 13,285,192 53,821,732 163,778,567
339,934,538 33,629,041 14,325,485 66,823,478 179,453,767
341,733,008 38,392,445 17,091,568 58,953,528 220,564,979
371,558,722 39,834,245 16,726,662 63,103,788 231,593,228
379,718,078 43,383,400 13,625,480 62,410,785 212,802,322
I
0.27700 $ 03950 $ 0.00900 $ 0.05500 $ 0.13400Is
0.27878 03850 0.00800 0.06400 0.13500
0.26786 03850 0.00800 0.06400 0.13500
0.29316 03850 0.00715 0.03720 0.13700
029455 03540 0.01091 0.03760 0.14600
II032600 03965 0.01267 0.05130 0.16600
031483 03965 0.01327 0.06190 0.16621
I032188 0.4251 0.01531 0.05280 0.19621
032909 0.4300 0.01496 0.05590 0.19621
1 033854 0.4650 0.01222 0.05565 0.18975
I
90
I
CITY OF FRIENDSWOOD, TEXAS I
Table 6
TAX RATE DISTRIBUTION '
Last Ten Fiscal Years
I
Fiscal Year Debt Total
Ended Tax General Service Tax
Sept. 30, Year Fund Fund Rate
1985 1984 $ 050700 $ 021300 $ 0.72000
1986 1985 051920 0.19030 0.70950
1987 1986 0.48100 021400 0.69500
1988 1987 052000 0.17500 0.69500
1989 1988 050746 0.18754 0.69500 I
1990 1989 053330 0.16170 0.69500
1991 1990 050876 0.18624 0.69500 1
1992 1991 050900 0.18600 0.69500
1993 1992 050160 0.16140 0.66300 1
1994 1993 050250 0.16050 0.66300 I
I
Source — City's tax ordinances.
Tax rates are per$100 valuation. 1
1
I
I
I
I
91
i
I
I CITY OF FRIENDSWOOD, TEXAS
Table 7
IPRINCIPAL TAXPAYERS
September 30, 1994
I
Percent
I Assessed of Total
Assessed
Taxpayer Type of Property Valuation Valuation
1 1 . Exxon Corporation Oil and Gas S 19,671,640 238 91
2 . Southwestern Bell Telephone Utility Company 13,196,330 1.60
1 3 . Texas New Mexico Power Utility Company 9,368,600 1.14
4 . Rust Remedial Service Incinerator 7,182,040 0.87
1 5 . Seahawk Apartments Apartments 6,888,650 0.83
6 . Friendswood Retirement Living Retirement Home 6,590,445 0.80
I7 . Houston Lighting&Power Utility Company 3,602,210 0.44
1 8 . Salem Square Apartments Apartments 3,102,890 038
9 . H.U.D.Multi Family Homes Residential 3,028,240 037
1 10 . Baywood Apartments Limited Apartments 2,810,740 034
S 75.441.785 9.15
I
I
ISource — Tax assessor/collector's records.
I
I
I
I
92
I
I
CITY OF FRIENDS WOOD, TEXAS I
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
1985 5,338 5,061 S 2,104,796 $ 1,193,709 $ 911,087 I
1986 6,497 6,238 4,205,395 1,311,526 2,893,869
1987 6,514 6,324 3,066,581 1,487,668 1,578,913 I
1988 6,626 6,432 3,071,181 1,526,297 1,544,884
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 I
1991 7,336 6,983 3,378,322 1,857,809 1,520,513
1992 7,521 7,171 3,567,379 2,063,694 1,503,685 I
1993 7,781 7,475 3,808,566 2,246,969 1,561,597
1994 8,031 7,709 3,896,444 2,305,953 1,590,491 I
I
Source — Accounting records of the City.
1
I
I
I
93
i
I
I
Table 8
I
I Revenue Bond
Debt Service Requirements
Principal Interest Total Coverage
I $ 120,000 $ 92,475 $ 212,475 4.29
120,000 83,129 203,129 14.25
125,000 77,566 202,566 7.79
125,000 69,720 194,720 7.93
125,000 61,900 186,900 8.51
130,000 56,275 186,275 10.07
I130,000 46,906 176,906 8.60
I135,000 38,916 173,916 8.65
135,000 31,022 166,022 9.41
I
135,000 25,710 160,710 9.90
I
I
I
I
94
I
CITY OF FRIENDSWOOD, TEXAS I
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED I
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years I
Fiscal Year
Ended Assessed Gross
Sept.30, Population Value Bonded Debt
1985 18,500 S 598,869,520 $ 8,046,000 I
1986 22,500 645,891,660 10,650,778
1987 23,000 760,787,760 10,065,778
1988 22,500 763,454,517 9,405,778 I
1989 23,500 729,914,210 8,750,778
1990 22,710 759,841,760 8,080,778 1
1991 22,814 761,569,171 7,365,778
1992 25,680 806,261,160 6,575,778 1
1993 26,333 781,187,783 9,061,649 I
1994 27,356 825,111,643 8,160,895
Source —Tax assessor/collector and accounting records of the City.
I
tY
1
I
I
I
I
I
95
i
I
I
Table 9
I
I
I Less Debt Ratio of Net
Bonded Debt Net Bonded
Service Net to Assessed Debt
Funds Bonded Debt Value Per Capita
I $ 200,813 $ 7,845,187 131 % $ 424
I 459,306 10,191,472 1S8 453
518,998 9,546,780 1.25 415
I325,894 9,079,884 1.19 404
280,793 8,469,985 1.16 360
I57,308 8,023,470 1.06 353
50,854 7,314,924 0.96 321
I78,244 6,497,534 0.81 253
45,501 9,016,148 1.15 342
I47,281 8,113,614 0.98 297
I
I
I
I
I
I
I
96
I
I
CITY OF FRIENDSWOOD, TEXAS I
Table 10
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years I
Ratio of I
Interest Total Debt Total Debt Service
Fiscal and Fiscal Service General Requirements
Year Principal Char'es Requirements Expenditures to Expenditures I
1985 $ 377,608 $ 619,506 $ 997,114 $ 4,817,448 20.70
1986 484,427 579,859 1,064,286 5,763,969 18.46 I
1987 620,386 694,328 1,314,714 6,624,296 19.85
1988 690,323 654,370 1,344,693 6,614,293 2033 I
1989 687,029 618,699 1,305,728 6,645,694 19.65 I
1990 721,245 583,352 1,304,597 7,163,992 18.21
1991 763,192 538,736 1,301,928 7,726,061 16.85 I
1992 830,000 485,242 1,315,242 8,440,480 1558
1993 945,000 489,052 1,434,052 8,726,615 16.43 I
1994 960,000 433,270 1,393,270 9,376,365 14.86
I
1
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I
I
I
I
97
I
I
I CITY OF FRIENDSWOOD, TEXAS
Table 11
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
ISeptember 30, 1994
IPercentage
Applicable City of
I
Net Debt Outstanding to City of Friendswood's
Name of Governmental Unit Net
as of Friendswood Share of Debt
Friendswood Independent
ISchool District $ 13,485,000 08/31/94 100.00 % $ 13,485,000
Clear Creek Independent
ISchool District 121,087,539 09/30/94 3.94 4,770,849
Galveston County 47,416,391 12/31/92 5.68 2,693,251
IIIHarris County 880,668,000 02/28/94 0.15 1,321,002
Harris County Toll Road
IAuthority 207,800,000 02/28/94 0.15 311,700
Harris County Flood
Control District 279,251,000 02/28/94 0.15 418,877
IHarris County Hospital
District 207,800,000 02/28/94 0.15 311,700
Port of Houston Authority 100,921,000 12/31/94 0.15 151,382
Total Net Overlapping
IDebt 23,463,760
City of Friendswood 8,113,614
I Total Net Direct and
Overlapping Debt S 31.577374
I
I
I
I
I98
1
CITY OF FRIENDS WOOD, TEXAS I
Table 12
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
I
Fiscal Per Capita Median Unemployment
Year Population Income Age Rate (A)
1985 18,500 S 24,570 27.9 8.6 % I
1986 22,500 27,735 27.9 12.6
1987 23,000 29,273 29.7 103
1988 22,500 29,743 29.7 6.8
1989 23,500 20,409 32.9 6.4 III
1990 22,710 N.A. N.A. 5.0
1991 22,814 NA N.A. 7.4 I
1992 25,680 NA NA 8.9
1993 26,333 NA N.A. 7.6 I
1994 27,356 NA NA 7.8
NA — Not Available I
(A) Source — Texas Employment Commission
I
I
I
I
I
I
99
i
CITY OF FRIENDSWOOD, TEXAS
Table 13
' PROPERTY VALUE AND CONSTRUCTION
Last Ten Fiscal Years
Fiscal Property
' Year Value Constriction
1985 $ 598,869,520 $ 28,891,533
' 1986 645,891,660 26,920,850
1987 760,787,760 17,337,714
111
1988 763,454,517 19,712,294
1989 729,914,210 14,998,749
111 1990 759,841,760 37,068,554
' 1991 761,569,171 46,975,722
1992 806,261,160 63,126,050
1993 917,420,470 61,604,061
1994 976,268,953 64,653,799
1
1
100
1
CITY OF FRIENDSWOOD, TEXAS I
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM
ANALYSIS OF FUNDING PROGRESS
Last Ten Calendar Years I
I
Plan Net Assets Pension Unfunded II
Calendar Available Benefit Percentage Pension
Year for Benefits Obligation Funded Obligation
1984 $ 565,766 $ 703,374 80.4 % $ 137,608 I
1985 751,832 1,044,018 72.0 292,186
1986 979,872 1,321,465 74.2 341,593 I
1987 1,265,501 1,632,280 77.5 366,779 I
1988 1,582,085 1,878,557 842 296,472
1989 1,866,216 2,204,025 84.7 337,809 1
1990 2223,461 2,978,946 74.6 755,485
1991 3,323,037 3,606,837 92.1 283,800 1
1992 3,954,115 4,245,973 93.1 291,858
1993 4,547,707 5,418,187 83.9 870,480 1
1
N.A. — Not Available
I
1
I
I
101
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I
I
Table 14
I
I
IUnfunded
Pension
Benefit as a
I Annual Percentage City Average
Covered of Covered Contribution City
Payroll Payroll to TMRS Rate
I $ N.A. N.A. % S NA N.A. %
N.A. N.A. N.A. N.A.
I2,132,015 16.0 73,092 3.4
2,516,687 14.6 85,739 3.4
I2,615,976 113 86,290 33
I2,617,976 12.9 97,716 3.7
2,955,563 25.6 171,244 5.8
I
3,051,394 93 210,370 6.9
3,339,878 8.7 208,440 6.2
I3,469,512 25.1 207,130 6.0
I
I
I
I
I
102
I
CITY OF FRIENDS WOOD, TEXAS i
SCHEDULE OF IMPACT FEE PROJECT CHANGES
111
Year Ended September 30, 1994
South South
Friendswood Friendswood
Surface Water Service Area Service Area
Facilities Water Wastewater
Improvements Improvements Improvements
Increases
Impact fees S 206,061 S 13,185 S 39,432
Interest 4,248 1,491 3,053
210,309 14,676 42,485
1
Decreases
Improvements:
El Dorado 8"Distribution Line
south Friendswood Water Study 5,500
Transfer for Debt Service
Payments:
1988 Certificate of Obligation 191,683
1992 Certificate of Obligation 133,649
1993 Refunding Bonds 8,303
199,986 5,500 133,649
Net Increase (Decrease) 10,323 9,176 (91,164)
Balance,beginning of year 59,175 108,668 '
Balance,End of Year S 10.323 S 68,351 S 17.504
•
i
Source — Citysubsidiaryrecords trackingproject information regarding impact
fees received by the Enterprise Fund. Impact fees are recorded as
additions to contributed capital in the Enterprise Fund I
103
I
1
1
Table 15
1
1
' Other
Water and
Wastewater
Improvements Totals
1
$ 31,539 $ 290,217
1 716 9,508
32,255 299,725
1
1 35,430 35,430
5,500
1
191,683
133,649
1 8,303
35,430 374,565
1 (3,175) (74,840)
1 3,175 171,018
1 $ S 96.178
1
1
1
i
104
1
I
CITY OF FRIENDSWOOD, TEXAS
Table 16
MISCELLANEOUS STATISTICAL DATA Page 1 of 2
September 30, 1994
Date of incorporation October 15,1960
Date of P
present charter Adopted Home Rule Charter
October 16,1971
Form of government Council— Manager
Area 21.71 square miles
Miles of Streets
Streets — Paved 111.10 miles
Streets — Unpaved 2.40 miles
Fire Protection
Number of stations 3
Number of employees(Full—time equivalent) 6.25
Number of volunteers 91
Fire Prevention
Number of employees(Full—time equivalent) 1.83
Number of volunteers
Police Protection
Number of stations 1
Number of sworn officers(Full—time equivalent) 30
Number of patrol units 10
Recreation
Number of parks 6
Size of parks 56.60 acres 111
Number of golf courses
Number of swimming pools 1
Number of tennis courts 4
Miles of storm sewers 84.43 miles
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ICITY OF FRIENDS WOOD, TEXAS
Table 16
MISCELLANEOUS STATISTICAL DATA Page 2 of 2
' September 30, 1994
Education
Friendswood Independent School District:
I Number of teachers 260
Number of students 4,202
I Clear Creek Independent School District:
Number of teachers
Number of students
City Employees
Department heads 7
I Employees: —
114
Full—time
Part—time(Full time equivalent) 25.12
Total 146.12
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Election
Number of Votes Cast:I
Last City Election — Regular Election 1,793
I Water
Source Ground Water Surface Water
Average daily consumption 1,089,159 gallons 2,074,063 gallons
Maximum daily consumption 4,694,000 gallons 3,923,000 gallons
I Water mains 93 miles
Number of connections 8,031
I Sewer Blackhawk Tower Estates
Average daily flow 2,543,602 gallons 219,345 gallons
Maximum daily flow 6,698,000 gallons 618,000 gallons
I Sanitary sewer mains 95 miles
Number of connections 7,709
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