HomeMy WebLinkAbout1989 09 30 Annual Comprehensive Financial Report - City of Friendswood 1
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF FRIENDSWOOD, TEXAS
1 For the fiscal year ended
September 30, 1989
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Prepared by
Finance Department
1 Roger C. Roecker
Director of Finance
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CONTENTS
11 Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal 11
Certificate of Achievement 20
Organization Chart 21
Principal Officials 22
FINANCIAL SECTION
Independent Auditors' Report 24
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and
Account Groups 26
Combined Statement of Revenues, Expenditures and
11 Changes in Fund Balances - All Governmental Fund
Types 30
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual -
General, Special Revenue and Debt Service
Fund Types 32
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings/Fund Balance -
Proprietary Fund Type and Similar Trust Fund 34
Combined Statement of Cash Flows Proprietary
Fund Type and Similar Trust Fund 38
Notes to Financial Statements 42
11 Combining, Individual Fund and Account Group
Statements and Schedules
General Fund
Comparative Balance Sheets A-1 73
Statement of Revenues and Expenditures -
Budget and Actual A-2 74
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CONTENTS - 2
Exhibit Page
FINANCIAL SECTION (continued)
General Fund (continued)
Statement of Expenditures - Budget and 1
Actual - By Function A-3 76
Statement of Expenditures - Budget and
Actual - By Object A-4 78
Special Revenue Funds
Combining Balance Sheet B-1 87
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances B-2 88
Revenue Sharing Fund
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Statement of Revenues Expenditures and
Changes in Fund Balance - Budget and Actual B-3 89
Parks and Recreation Fund
Comparative Balance Sheets B-4 90
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual B-5 91
Mowing Fund
Comparative Balance Sheets B-6 92
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual B-7 9311
Fine Arts Council Fund
Comparative Balance Sheets B-8 94 !!
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual B-9 95 !I
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CONTENTS - 3
IIExhibit Page
IIFINANCIAL SECTION (continued)
Debt Service Fund
IComparative Balance Sheets C-1 99
1 Statement of Revenues, Expenditures
and Changes in Fund Balance -
Budget and Actual C-2 100
IICapital Projects Fund
Comparative Balance Sheets D-1 103
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Statement of Revenues, Expenditures
and Changes in Fund Balance -
1 Budget and Actual D-2 104
Enterprise Fund
1 Comparative Balance Sheets E-1 106
Statement of Revenues, Expenses and
II Changes in Retained Earnings -
Budget and Actual E-2 108
1 Statement of Operating Expenses -
Budget and Actual E-3 109
1 Schedule of Revenue Bonds Payable E-4 111
Revenue Bonds Payable - By Maturity Date E-5 112
1 Certificate of Obligation - By Maturity Date E-6 114
Trust Fund
IIComparative Balance Sheets F-1 117
II Comparative Statements of Revenues, Expenses
and Changes in Fund Balances F-2 118
General Fixed Assets Account Group
11 Comparative Schedules of General Fixed Assets - By Source G-1 121
I Schedule of General Fixed Assets - By Function
and Activity G-2 122
Schedule of Changes in General Fixed Assets -
lrBy Function and Activity G-3 123
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CONTENTS - 4
Exhibit Page II
FINANCIAL SECTION (continued)
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General Long-Term Debt Account Group
Statement of Changes in General Long-Term Debt H-1 126 II
Schedule of General Long-Term Debt H-2 129
General Long Term Debt By Maturity Date H-3 130 II
Compound Bonds - Accrued Interest Schedule H-4 134 II
Schedules
Combined Schedule of Investments - All Funds I-1 137 II
Schedule of Delinquent Taxes Receivable I-2 138
STATISTICAL SECTION II
General Revenue - By Source I 140 II
General Governmental Expenditures - By Function II 142
Tax Revenues - By Source III 145 II
Property Tax Levies and Collections IV 146
Assessed and Estimated Actual Value of II
Taxable Property V 148
Property Tax Rates and Tax Levies - All 11
Overlapping Governments VI 150
Ratio of Net General Obligation Bonded Debt to11
Assessed Value and Net General Obligation
Bonded Debt Per Capita VII 152
Computation of Net Direct and Estimated 11
Overlapping Debt VIII 154
Ratio of Annual Debt Service Expenditures for II
General Long-Term Debt to Total General
Expenditures IX 155
Tax Rate Distribution X 157 II
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CONTENTS - 5
Exhibit Page
STATISTICAL SECTION (continued)
Revenue Bond Coverage XI 159
Principal Taxpayers XII 160
Property Value, Construction and Bank Deposits XIII 161
Demographic Statistics XIV 163
Schedule of Insurance In Force XV 164
Miscellaneous Statistical Data XVI 168
11 Principal Officials XVII 170
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' INTRODUCTORY SECTION
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I _� FRIENDSWOOD, TEXAS 77546 - 3898
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II December 7, 1989
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Honorable Mayor and Members of
II the City Council
City of Friendswood, Texas
II The comprehensive annual financial report of the City of Friendswood for the
fiscal year ended September 30, 1989, is hereby submitted. Responsibility for
both the accuracy of the data, and the completeness and fairness of the presen-
1 tation, including all disclosures, rests with the City. To the best of our
knowledge and belief, the enclosed data are accurate in all material respects
and are reported in a manner designed to present fairly the financial position
and results of operations of the various funds and account groups of the City.
II All disclosures necessary to enable the reader to gain an understanding of the
City' s financial activities have been included.
II 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
1 officials. The financial section includes the general purpose financial state-
ments 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
IIinformation, generally presented on a multiyear basis.
This report includes all funds and account groups of the City. There is one
II separately administered organization which is included as a component unit in
accordance with NCGA Statement 3. This organization is the Blackhawk Regional
Waste Treatment Plant. The City' s equity in this organization' s operating fund
1 is included in the Enterprise Fund. Friendswood Independent School District,
Clear Creek Independent School District, Galveston County, Harris County, Clear
Creek Drainage District and Friendswood Volunteer Fire Department have not met
the established criteria for inclusion in the reporting entity, and accordingly
IIare excluded from this report.
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The City provides a full range of services, including City administration,
traffic planning, inspection services, municipal court services and a library.
However, the services that affect most citizens on a day-to-day basis are
described as follows: 11
1. Water and Sewer
The City provides water and sewer services for residential and commercial 11
locations. The department maintains the system with a work force of twenty
employees.
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2. Police
Twenty-four hour coverage is provided by the City's police department, which
consists of Patrol, Investigative and Crime Prevention Services. A goal of
the department and its thirty-nine full-time personnel is to actively
involve the citizens in its community safety efforts.
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3. Fire
Although the City does not employ its own fire department, it has purchased
fire trucks and other additional equipment for the volunteer fire department.
The City employs a fire marshal , one full-time fire fighter and one full-time
paramedic.
4. Streets
The street department is responsible for the repair and maintenance of all
City streets. The department consists of ten employees.
5. Sanitation !I
The garbage pick-up is contracted with Best Waste Systems, Inc.
6. Parks
The City maintains five city parks, one swimming pool, two sports complexes,
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and is responsible for the maintenance of one additional park. The total of
all these park areas is approximately fifty-four acres.
ECONOMIC CONDITION AND OUTLOOK !I
The City of Friendswood, Texas is located 20 miles southeast of downtown Houston
in Harris and Galveston Counties. The area's economy continues to rebound from !I
depressed oil prices for the past several years and the downturn in construction
and real estate during the past year. Nonfarm employment for the City of
Houston, in particular, rose by 39,400 over 1988, or 2.7%, which accounts for
almost 30% of all job gains within the state. Expansion of the Johnson Space 11
Center Visitor's Facility by the Disney Corp. and development of a $1.3 billion
industrial park near Ellington Field indicate that the area' s economic growth
will continue for years to come. !I
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This economic growth will affect Friendswood in at least two ways. Friendswood' s
population should continue to increase from its current level of 23,500. The
City should also experience some local increase in economic activity. In order
to maintain the present level of services to an increasing population, the City,
in the future, will need to explore new methods of obtaining financial resources.
MAJOR INITIATIVES
For the Year. In preparing the 1988-89 budget, the City identified several
major programs needed to meet citizens' needs for services and to safeguard the
environment, in conformity with applicable federal and state standards. The
following items provide a summary of these programs.
Certificates of obligation were issued to pay for two construction projects.
1. $4.2 million in certificates of obligation were issued to pay for conversion
to surface water. $2.7 million dollars was paid to the City of Houston for
the City of Friendswood' s participation in the Southeast Water Purification
Plant. This plant is scheduled to be completed in time for the City to
receive surface water from the City of Houston on January 1, 1990. The
City' s booster pump station and ground storage facility was 21% complete and
97% of the transmission line was complete at September 30, 1989.
2. Certificates of obligation in the amount of $200,000 were issued to pay for
the purchase of property adjacent to City Hall and renovation of the buildings
to provide additional office space. This project was completed in August, 1989
I and provides offices for Parks and Recreation Administration and the
Finance Department.
1 Construction was completed on the City' s new Animal Impoundment Facility. The
facility is located at the Public Works Compound and will provide 14 main im-
poundment kennels for large dogs and a separate room for small animals.
1988-89 was the fifth year of the City's seven year street improvement program.
The streets remaining from the 1987-88 Galveston County program were Leisure
Lane and South Clear Creek Drive. They were 99% completed as of September 30,
1989. The following streets were resurfaced as a part of the 1988-89 program:
Airline Drive, Canal Drive, Chester Drive, Colt Drive, Deepwood, Estate Drive,
Garden Drive, Mandale Road, Prairie Wilde, Tower Drive, West Shadowbend and
Wilderness Trails. El Dorado, El Dorado Circle and Lundy Lane were 90% complete
at September 30, 1989. The state highway department also completed construction
of a new bridge across Cowart' s Creek on FM 518.
tFor the Future.
1. Surface Water
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The City must be prepared to receive surface water from the City of Houston
by January 1, 1990. Construction of the booster pump station, ground
storage and transmission line facilities, begun in 1988-89, must be completed.
Remaining components of the project are: plant site conversion, modification
of existing transmission lines and telemetry.
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2. Data Processing 11
The City intends to complete installation of a new library computer system
during 1989-90. Automation of this area will likely result in a notable 1!
increase in the public' s already heavy usage of this resource.
The Municipal Court is also expected to purchase and implement an automated
recordkeeping system during 1989-90.
3. Community Development
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As a result of Senate Bill 336, as approved by the Texas Legislature in
1987, the City must meet a May, 1990 deadline for adoption of a capital
improvements plan and impact fee schedule. In short, this bill provides11
guidelines for the use of impact fees, limiting their use to projects
required to facilitate new growth. The plan is being developed by City
staff, and with the approval of the Capital Improvements Plan Advisory
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Committee and City Council , will be implemented on schedule.
4. Water and Sewer
The state highway department has announced plans to widen FM 2351 and
FM 528, both of which serve as main arteries into the City from III 45.
This will require major City resources be available for water and sewer
line relocation.
5. City Hall Remodeling
Remodeling is planned for City Hall, which will include the addition of
three jail cells. The City Secretary will receive additional office space
and two small offices will be converted into a conference room.
Department Focus. Each year the City will select a department to highlight for
its efforts and accomplishments. For 1988-89 the Parks and Recreation Department
has been chosen for review.
The Friendswood Parks and Recreation Department was formed in 1976 through a
grant program by the Galveston County CETA Program. The department has grown
from one temporary person to seven full time employees and 17 part-time seasonal
employees. The Parks and Recreation Department specializes in presenting
community activities for the entire family, and because of this, has been the11
focal point of great civic pride over recent years.
The Department' s most successful program is the Annual Fourth of July Program. 11
The 1990 Fourth of July Program will mark the 95th consecutive annual celebration.
The Parks and Recreation Department also sponsors the Annual Canoe Safari. This
event is a seven mile canoe race for both teams and individuals. This year4,111
marked the beginning of a new summer camp program, which was developed to WI
provide a quality daytime activity for children who have working parents. The
1989 camp saw 183 children between the ages of 5 and 13 enjoy a summer full of
exciting outdoor activities, such as, arts and crafts, hiking, nature study, map11
and compass, swimming and values education.
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The Parks and Recreation Department solicits input from the community when
developing new recreational programs, such as the 1989-90 additions, a Holiday
Tree Lighting Ceremony and a quarterly series of Teen Nights. These programs,
in addition to the established annual activities, help to enhance the quality of
life for the citizens of Friendswood and the surrounding area.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an
11 internal control structure designed to ensure that the assets of the City are
protected from loss, theft or misuse and to ensure that adequate accounting data
are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure
is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that:
(1) the cost of a control should not exceed the benefits likely to be derived;
and (2) the valuation of costs and benefits requires estimates and judgments by
management.
Budgeting Controls. In addition, the City maintains budgetary controls. The
objective of these budgetary controls is to ensure compliance with legal provi-
sions embodied in the annual appropriated budget approved by City Council .
Activities of all funds are included in the annual appropriated budget. The
level of budgetary control (that is, the level at which expenditures cannot
legally exceed the appropriated amount) is established by department within an
e individual fund. The City also maintains an encumbrance accounting system as
one technique of accomplishing budgetary control. Encumbered amounts lapse at
year end. However, encumbrances generally are reappropriated as part of the
following year's budget.
As demonstrated by the statements and schedules included in the financial
section of this report, the City continues to meet its responsibility for sound
financial management.
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General Government Functions. Revenues for general government functions II
(General, Special Revenue and Debt Service Funds) totaled $6,804,353 in
1988-89, an increase of $311,066 over 1987-88. General property taxes
produced 67.06 percent of the general revenues compared to 68.41 percentII
the preceding year. Sales taxes produced 8.91 percent of the general
revenues compared to 7.85 percent of the preceding year. The amount of
revenue from various sources and the increase or (decrease) over the pre-
ceding year are shown in the following tabulation: II
Increase
1988-89 Percent (Decrease)
Revenue Sources Amount of Total Over 1987-88 II
General property taxes $4,562,856 67.06% $120,316
Business gross receipts taxes 400,986 5.89 25,23111
General sales taxes 606,549 8.91 96,998
Other taxes 800 .01 (223)
Sanitation 542,911 7.98 (2,219)
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Fines and forfeitures 190,106 2.79 47,590
Licenses and permits 143, 105 2. 11 18,022
Intergovernmental 53,464 .79 4,479
Interest income 185,037 2.72 (11,610) II
Other 118,539 1 .74 12,482
TOTAL $6,804,353 100.00% $311,066 II
Assessed valuations of $729,914,210 represented a decrease of 4.4 percent over
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the preceding year. Assessed valuations are at 100% of market value as deter-
mined by the Galveston County and Harris County Appraisal Districts. The assessed
tax levy at October 1, 1988, relating to the fiscal year 1988-89 was $4,553,066,
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after adjustments, an increase of 4.6 percent over the tax levy at October 1,
1987. Current tax collections were $4,433,139, 97.37 percent of the tax levy,
up $184,776 from last year.
IIDelinquent tax collections were $79,695 and represented 1.77 percent of total
collections. The ratio of total collections (current and delinquent) to the
current tax levy was 99. 12 percent, a decrease of 1.26 percent from last year.
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Allocations of property tax levy by purpose for 1988-89 and the preceding two
fiscal years are as follows (amount per $100 of assessed value) :
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Purpose 1988-89 1987-88 1986-87
General Fund $.50746 $.520 $.48111
General Obligation Debt . 18754 .175 .214
TOTAL TAX RATE $.695 $.695 $.695
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Expenditures for general government purposes totaled $6,645,694, an increase
II of $31,401 from 1987-88. Increases or (decreases) in the levels of expendi-
tures for major functions of the City for the preceding year are shown in the
following tabulation:
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Increase
1988-89 Percent (Decrease)
Function Amount of Total Over 1987-88
1 General Government $1 ,167,194 17.56% $ 24,170
Public Safety 2,038,066 30.66 103,749
Public Works 1, 108,423 16.68 (19,772)
II Community Development 257,750 3.88 8,066
Community Services 768,533 11.57 (45,847)
Debt Service 1 ,305,728 19.65 (38,965)
ITOTAL $6,645,694 100.00% $ 31 ,401
11 The increase in expenditures for public safety was due primarily to additional
expenditures for animal control.
11 It should be noted that all increases were planned for and budgeted.
Fund balances in the major operating funds were maintained at budgeted levels.
The General Fund balance of $820,654 was up $387,915 from the preceding year;
IIthe Debt Service Fund balance of $280,793 was down $45, 101 from the preceding
year; the Capital Projects Fund balance of $327,310 was up $107,684 from
the prior year; and Special Revenue Fund balances of $14,582 was down $1 ,620
from the prior year.
® Enterprise Fund Operations. The water and sewer utility continued to show gains
II in number of customers. Comparative data for the past two fiscal years are pre-
sented in the following tabulation:
Year Ended Sept. 30,
II 1989 1988
Operating revenue $3,034,892 $3,071 ,181
IIOperating expenses before depreciation 1 ,443,986 1 ,526,297
Net operating revenue available
IIfor debt service $1,590,906 $1,544,884
Debt service $ 186,900 $ 194,720
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Coverage (income available for debt
II service divided by annual debt service) 8. 51 7.93
Number of customers - sewer 6,539 6,432
Number of customers - water 6,731 6,626
I! The Enterprise fund, which is used to account for utility operations, has
maintained retained earnings of $4,027,706 and $3,659,126 as of September 30, 1989
and 1988, respectively. These retained earnings balances are considered adequate
11 based on the operating needs of the water and sewer utility.
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Debt Administration. The ratio of net bonded debt to assessed valuation and
the amount of bonded debt per capita are useful indicators of the City' s debt
position to municipal management, citizens, and investors. These data for
the City of Friendswood at the end of the 1988-89 fiscal year were as follows:
Ratio of Debt to
Assessed Value Debt
(100 Percent of Per
Description Amount Present Market) Capita
Net direct bonded debt $ 8,469,985 1. 16% $360
Overlapping debt 12,026,225 1 .65 512
Total direct and
overlapping debt $20,496,210 2.81% $872
Outstanding tax supported debt at September 30, 1989 totaled $8,980,215.
Cash Management. Cash temporarily idle during the year was invested in
certificates of deposit ranging from 14 to 338 days to maturity. Yields
on certificates of deposit ranged from 6.55 percent to 9.44 percent during
the year ended September 30, 1989.
Interest earned for the year was $185,037, down $11,610 from the preceding 11
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,
1989, are classified in the catagory of lowest credit risk as defined by the
Governmental Accounting Standards Board.
OTHER INFORMATION
Independent Audit. The City Charter requires an annual audit of the financial 11
statements of all of the various funds of the City by independent certified
public accountants. The accounting firm of EARL LAIRSON & CO. , CPA's, was
selected and their opinion has been included in this report. 11
Awards. The Government Finance Officers Association (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Friendswood for
its comprehensive annual financial report for the fiscal year ended September 30,
1988. This was the second consecutive year that the City has received this
prestigious award. In order to be awarded a Certificate of Achievement, the
City published an easily readable and efficiently organized comprehensive annual 11
financial report. This report satisfied both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe
that our current comprehensive annual financial report continues to meet the
Certificate of Achievement Program' s requirements and we are submitting it to
the GFOA to determine its eligibility for another certificate.
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Acknowledgments. The preparation of the comprehensive annual financial report
was made possible by the dedicated service of the entire staff of the Finance
Department. Each member of the department has my sincere appreciation for the
contributions made in the preparation of this report.
In closing, I also express my thanks to the Mayor, members of the City Council
and the City Manager for their leadership, interest and support in conducting
the financial operations of the City in a responsible and progressive manner.
Sincerely,
Q-er&
Roger C. Roecker
Director of Finance
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Certificate of
Achievement I
for Excellence
in Financial
Reporting
Presented toI
City of Friendswood,
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Texas
For its Comprehensive AnnualI
Financial Report
for the Fiscal Year EndedI
September 30, 1988
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 (CAFR's) achieve the highest
standards in government accounting
and financial reporting.
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.utE Orpt, .14,
UNITED STATES
= President
2 Crum
6 CORPORATION el
CNgN00 ill
Executive DirectorI
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ORGANIZATION CHART-CITY OF FRIENDSWOOD, TEXAS
APPOINTED BOARDS MAYOR do COUNCIL VOLUNTEER FIRE
AND — — — — —— AND
AD HOC COMMITTEES AMBULANCE
r
FIREMAN
CITY ATTORNEY
CITY SECRETARY
MUNICIPAL JUDGE
COURT CLERK CITY MANAGER
FIRE MARSHAL
4
COMMUNITY PARKS AND
FINANCE LIBRARY PUBLIC WORKS POLICE DEVELOPMENT RECREATION
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PRINCIPAL OFFICIALS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
MAYOR11
Paul W. Schrader
Mayor Pro Tem
Councilmember Councilmember
Position No. 1 Position No. 4
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Ronald H. Ritter Ed Stuart
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Councilmember Councilmember
Position No. 2 Position No. 5
Robert Wicklander Jan Jordan 11
Councilmember Councilmember
Position No. 3 Position No. 6
Evelyn B. Newman Frank Frankovich
City Manager11
Annette A. Brand
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City Secretary Tax Assessor
Deloris Archer Alta Carbone !I
Director of Finance
Roger C. Roecker
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,Er9RL Lr9/RSON 8 CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
TEL.713-681-8500 • FAX 713-681-9043
P.O. BOX 500017 1716 MANGUM, SUITE 300
HOUSTON,TEXAS 772 5 0-0017 HOUSTON,TEXAS 77092
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of
City Council
City of Friendswood, Texas
We have audited the accompanying general purpose financial statements of the
City of Friendswood, Texas and the combining, individual fund and account
group financial statements of the City of Friendswood, Texas as of and for
the year ending September 30, 1989, as listed in the table of contents. These
financial statements are the responsibility of the City of Friendswood, Texas
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We have conducted our audit in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the general purpose financial statements referred to above11
present fairly, in all material respects, the financial position of the City
of Friendswood, Texas at September 30, 1989, and the results of its operations
and the cash flows of its proprietary and non-expendable trust fund for the year
then ended, in conformity with generally accepted accounting principles. Also,
in our opinion, the combining, individual fund and account group financial
statements referred to above present fairly, in all material respects, the
financial position of each of the individual funds and account groups of the
City of Friendswood, Texas at September 30, 1989, and the results of operations
of such funds and the cash flows of individual proprietary and similar trust
funds for the year then ended, in conformity with generally accepted accounting
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principles.
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Honorable Mayor and Members of
City Council
City of Friendswood, Texas
Page Two
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Our audit was made for the purpose of forming an opinion on the general
purpose financial statements taken as a whole and on the combining, in-
dividual fund and account group financial statements. The accompanying
' financial information listed as schedules in the table of contents is
presented for purposes of additional analysis and is not a required part
of the financial statements of the City of Friendswood, Texas. The infor-
mation in these schedules has been subjected to the auditing procedures
applied in the audit of the general purpose, combining, individual fund
and account group financial statements and, in our opinion, is fairly
stated in all material respects in relation to the financial statements
of each of the respective individual funds and account groups, taken as
a whole.
414.1,40, -
Houston, Texas
December 15, 1989
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COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - 1 of 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 1
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS 1
ASSETS AND OTHER DEBITS
ASSETS
CASH - including certificates
of deposit $1,410,459 $14,622 $280,793 $355,050 II
RECEIVABLES - net where applicable,
of allowances for uncollectibles
Property taxes 245,473 96,513
Accounts 37,902 23,515
Grantor agencies
Interest
DUE FROM OTHER FUNDS
PREPAID EXPENDITURES AND OTHER ASSETS 32,957
RESTRICTED ASSETS
Cash - including certificates of
deposit 42,578
Land
Blackhawk operating fund deposit 11
GENERAL FIXED ASSETS - at cost
PROPERTY, PLANT AND EQUIPMENT 11
-
at cost less accumulated
depreciation - Note 5
CERTIFICATE OF OBLIGATION ISSUANCE COSTS -
net of amortization
OTHER DEBITS
Amount available in debt
service funds11
Amount to be provided for
retirement of general
long-term debt
11
TOTAL ASSETS AND OTHER DEBITS $1,726,791 $38, 137 $377,306 $397,628
-26-
II
II
II
FIDUCIARY
1 PROPRIETARY FUND TYPE TOTALS
FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG- Note 14
IIENTERPRISE TRUST ASSETS TERM DEBT 1989 1988
I
I $ 508,351 $ 2,569,275 $ 1,613,985
II 341,986 301 ,754
320,580 381 ,997 372,897
20,000
I
30,826 t ) 30,826 1,776
(U
637y ,� 637 254,414
II1,332 a ,ry 34,289 17,674
" rA -
I1,346, 189 $22,817 ' 1,411,584 246,169
57,200 - 57,200 57,200
II109,279 109,279 109,279
$15,607,493 15,607,493 14,714,524
II
II
22,161 ,283 22, 161 ,283 20,506,623
34,230 34,230 -
II
II $ 280,793 280,793 325,894
8,699,422 8,699,422 9,135,403
II
$24,512,707 $80,017 $15,607,493 $8,980,215 $51,720,294 $47,677,592
1 See notes to financial statements.
-27-
I
I
COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 1
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES
ACCOUNTS PAYABLE AND
ACCRUED LIABILITIES $ 243,784 $ 40 $ 70,318
COMPENSATED ABSENCES - Note 14 416,243
PAYABLE FROM RESTRICTED ASSETS
Accrued interest
Revenue bonds - current portion
Deposits
DUE TO OTHER FUNDS 637
DEFERRED REVENUE 245,473 23,515 $ 96,513
LEASE OBLIGATION
REVENUE BONDS
GENERAL OBLIGATION BONDS
CERTIFICATES OF OBLIGATION
NOTES PAYABLE
TOTAL LIABILITIES 906, 137 23,555 96,513 70,318
EQUITY AND OTHER CREDITS '
CONTRIBUTED CAPITAL - Note 13
INVESTMENT IN GENERAL FIXED
ASSETS
RETAINED EARNINGS
Reserved for revenue bond
retirement
Reserved for construction 11
Unreserved
FUND BALANCES
Reserved for encumbrances 277,072 230,991
Reserved for prepaid expenditures
Reserved for endowments
Reserved for parks 7,602
Reserved for programs 1,287
Unreserved
Designated for construction 96,319
II
Designated for debt service 280,793
Undesignated 543,582 5,693 _
TOTAL EQUITY AND OTHER CREDITS 820,654 14,582 280,793 327,310 II
TOTAL LIABILITIES, EQUITY AND
OTHER CREDITS $1 ,726,791 $38,137 $377,306 $397,628
-2 8-
11
I!
11
FIDUCIARY
II PROPRIETARY FUND TYPE TOTALS
FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG- Note 14
11 ENTERPRISE TRUST ASSETS TERM DEBT 1989 1988
II
$ 209,725 $ 523,867 $ 336,982
II38,624 454,867 494,458
30,909 30,909 5,523
II 130,000 130,000 125,000
50,865 50,865 53,925
637 254,414
365,501 317,087
I $ 29,437 29,437 55,521
865,000 865,000 995,000
8,750,778 8,750,778 9,405,778
1 4,200,000 200,000 4,400,000 -
1 ,371,286
5,525,123 8,980,215 15,601,861 13,414,974
11 14,959,878 14,959,878 14,816,039
II $15,607,493 15,607,493 14,714,524
II 292,087 292,087 333,959
1,412,887 1,412,887 1,696,573
2,322,732 2,322,732 1,628,594
II508,063 327,897
13,079
1 $67,200 67,200 67,200
7,602 8,796
1,287 321
11 96,319 -
280,793 325,894
12 ,817 562,092 329,742
11 18,987,584 80,017 15,607,493 36,118,433 34,262,618
$24,512,707 $80,017 $15,607,493 $8,980,215 $51,720,294 $47,677,592
11 See notes to financial statements.
-29-
1
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
CITY OF FRIENDSWOOD, TEXAS II
Year ended September 30, 1989
11
GOVERNMENTAL FUND TYPESII
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
REVENUES 11
Taxes $4,352,581 $1,218,610
Charges for services 542,911
Fines and forfeiture 190,106 II
Licenses and permits 143,105
Donations 56,348
Intergovernmental 53,464II
Interest 141 ,542 $1,478 42,017 $ 31,687
Other 54,923 7 ,268 165
TOTAL REVENUES 5,534,980 8,746 1,260,627 31 ,852 II
EXPENDITURES
Current
General government 1, 167, 194 11
Public safety 2,038,066
Public works 1,108,423
Community development 250, 120 7,630II
Community services 762,123 6,410
Capital outlay 669,168
Debt service
Principal retirement 687,029 gm/
Interest and fiscal charges 618,699
TOTAL EXPENDITURES 5,325,926 14,040 1,305,728 669,168 II
REVENUES OVER (UNDER) EXPENDITURES 209,054 (5,294) (45,101) (637,316)
OTHER FINANCING SOURCES
Operating transfers in 727,535 3,674 545,000 11
Operating transfers out (548,674)
Certificates of obligation
proceeds _ 200,000 II
TOTAL OTHER FINANCING SOURCES (USES) 178,861 3,674 - 745,000
REVENUES AND OTHER SOURCES 1
OVER (UNDER) EXPENDITURES 387,915 (1,620) (45,101) 107,684
Fund balances at beginning of year 432,739 16,202 325,894 219,626 I
FUND BALANCES AT END OF YEAR $ 820,654 $14,582 $ 280,793 $ 327,310
11
11
-30-
1!
I!
11
iP
It TOTALS
(MEMORANDUM ONLY)
It1989 1988
Ir $5 ,571 , 191 $ 5,328,869
542,911 545, 130
190, 106 142,516
143,105 125,083
It 56,348 37,539
53,464 48,985
216,724 209,638
I 62 ,356 _ 68,518
6,836,205 6,506,278
11 1 ,167,194 1, 143,024
2,038,066 1,934,317
It 1, 108,423 1, 128, 195
257,750 249,684
768,533 814,380
R 669, 168 1 , 128,285
687,029 690,323
It 618,699 654,370
7 ,314,862 7 ,742,578
(478,657) (1 ,236,300)
I
1 ,276,209 2, 139,617
I (548,674) (1 ,729,412)
_ 200,000 -
927,535 410,205
II
448,878 (826,095)
1 994,461 1 ,820,556
I/ $1,443,339 $---994_461
IISee notes to financial statements.
-31-
gli
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN g.
FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE
AND DEBT SERVICE FUND TYPES NO
04
CITY OF FRIENDSWOOD, TEXAS
411
Year ended September 30, 1989 4.
7
.40
GENERAL FUND
VARIANCE-
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) .40
REVENUES
11
Taxes $4,275,171 $4,352,581 $ 77,410
Charges for services 541,063 542,911 1,848
Fines and forfeitures 189,883 190, 106 223
Licenses and permits 160,017 143, 105 (16,912) !I
Donations 11,652 56,348 44,696
Intergovernmental 44,330 53,464 9,134
Interest 125, 171 141,542 16,371
71
Other 25,696 54,923 _ 29,227
TOTAL REVENUES 5,372,983 5,534,980 161,997
EXPENDITURES 11
Current
General government 1,275,054 1,167, 194 107,860
Public safety 2,122,614 2,038,066 84,548 !!
Public works 1, 150,133 1,108,423 41,710
Community development 308,467 250, 120 58,347
Community services 917,646 762, 123 155,523
Debt service 404
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES 5,773,914 5,325,926 447,988 :I
REVENUES OVER (UNDER) EXPENDITURES (400,931) 209,054 609,985
OTHER FINANCING SOURCES (USES) !I
Operating transfers in 727,535 727,535 -
Operating transfers out (548,674) (548,674) -
TOTAL OTHER FINANCING 1/
SOURCES (USES) 178,861 178,861 -
REVENUES AND OTHER SOURCES !I
OVER (UNDER) EXPENDITURES $ (222,070) 387,915 $609,985
Fund balances at beginning of year 432,73911
FUND BALANCE AT
END OF YEAR $ 820,654
1/
-32-
IP
I
1
w
SPECIAL REVENUE FUNDS DEBT SERVICE FUND
VARIANCE- VARIANCE-
FAVORABLE FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE)
II
1 221 897 $1 ,218,610 $(3,287)
I
II $ 450 $ 1,478 $ 1,028 40,000 42,017 2,017
3,780 7,268 3,488
11 4,230 8,746 4,516 1,261 ,897 1,260,627 (1,270)
II
I! 7,630 7,630 -
7,780 6,410 1,370
11 742,029 687,029 55,000
624,566 618,699 5,867
15,410 14,040 1,370 1 ,366,595 1 ,305,728 60,867
I! (11, 180) (5,294) 5,886 (104,698) (45,101) 59,597
I! 3,674 3,674
3,674 3,674 - - - -
$ (7,506) (1,620) $ 5,886 $ (104,698) (45,101) $59,597
11 16,202 325,894
Ir $14,582 $ 280,793
II
See notes to financial statements.
-33-
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE -
PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND - 1 of 2
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
PROPRIETARY FIDUCIARY
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST
Operating revenues
Water and sewer sales and services $ 2,981 ,301
Water and sewer tap fees 12,025
Fees and penalties 7,150
Other 34,416
3,034,892
Operating expenses
Water department
Personal services 172,601
Supplies 54,085
Other services and charges 149,943
Maintenance 50,901
427,530
Sewer department
11
Personal services 96,039
Supplies 11,266
Other services and charges 522,527 3
Maintenance 88,659
718,491
Operation administration department 3
Personal services 56,057
Supplies 631
Other services and charges 1, 163
Maintenance 75
57,926
Finance administration department
Personal services 113,436
Supplies 6,203
Other services and charges 107,528
Maintenance 1 ,623
228,790
11
-34-
TOTALS
(MEMORANDUM ONLY)
1989 1988
$ 2,981 ,301 $ 2,940,726
12,025 112,751
7,150 7,600
34,416 10,104
3,034,892 3,071,181
172,601 180,908
54,085 57,748
149,943 149,429
50,901 70,233
427,530 458,318
96,039 102,090
11,266 16,364
522,527 566,931
88,659 67,521
718,491 752,906
56,057 72,696
631 696
1,163 1,142
75 38
57,926 74,572
113,436 114,301
6,203 6,640
107,528 118,276
1,623 1,284
228,790 240,501
I
I
-35-
1101
OR
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE -
PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND - 2 of 2
!!
CITY OF FRIENDSWOOD, TEXAS
Years ended September 30, 1989 `.
PROPRIETARY FIDUCIARYI!
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST
11
Emergency management
Personal services 2,878
Maintenance 8,371
11 ,249
OPERATING EXPENSES
BEFORE DEPRECIATION 1,443,986
Depreciation 604,726
OPERATING EXPENSES 2,048,712
11
OPERATING INCOME 986,180
MP
Non-operating revenues (expenses)
Interest revenue 171,835 $ 1,549
Interest expense (61,900)
109,935 1,549 IP
INCOME BEFORE OPERATING TRANSFERS 1,096,115 1,549
MP
Operating transfers in -
Operating transfers out (727,535)
(727,535) -
NET INCOME 368,580 1,549
Retained earnings/fund balance at
beginning of year 3,659,126 78,468
RETAINED EARNINGS/FUND BALANCE AT
END OF YEAR $4,027,706 $80,017 !I
11
!I
11
-36-
11
I
1
TOTALS
(MEMORANDUM ONLY)
i1989 1988
' 2,878 -
8,371 _ -
11,249 -
1 ,443,986 1 ,526,297
' 604,726 594,790
2,048,712 2,121 ,087
' 986, 180 950,094
173,384 31,627
1 (61 ,900) (69,720)
111,484 (38,093)
' 1,097,664 912,001
722,680
(727,535) (1 ,132,885)
' (727,535) (410,205)
370,129 501 ,796
3,737,594 3,235,798
$4,107,723 $ 3,737,594
---------- -----------
I/
' See notes to financial statements.
-37-
11
!I
COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE
AND SIMILAR TRUST FUND - 1 of 2
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989 1
FIDUCIARY
PROPRIETARY FUND TYPE
FUND TYPE NON-EXPENDABLE
ENTERPRISE TRUST I
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 986,180
Adjustment to reconcile net income to net
cash provided by operating activities
Amortization 1,711
Depreciation 604,726
1,592,617
Changes in operating assets and liabilities
Increase in prepaid expenses (1,332)
Decrease in customer deposits (3,060)
(Decrease) Increase in accounts payable 90,227
(Decrease) Increase in due to other funds (150,053)
Increase in accounts receivable (35,205)
(Decrease) Increase in accrued interest 25,386
(Increase) Decrease in due from other funds 290
CASH FLOWS PROVIDED FROM
OPERATING ACTIVITIES 1,518,870
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES A
Operating transfers-out to other funds (727,535)
Operating transfers-in from other funds - 1
CASH FLOWS USED BY NONCAPITAL
FINANCING ACTIVITIES (727,535)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Proceeds from sale of certificates of obligation 4,200,000
Contributed capital 143,839
Acquisition and construction of capital assets,
including capitalized construction interest (2,259,386)
Revenue bond payments (125,000)
Interest paid (61,900)
Proceeds from note payable
Note payments (1,371,286)
Acquisition of capitalized bond costs (35,941)
CASH FLOWS PROVIDED (USED) FROM CAPITAL AND
RELATED FINANCING ACTIVITIES 490,326
-38- 1
TOTALS
(MEMORANDUM ONLY)
1989 _ 1988
$ 986, 180 $ 950,094
1,711
604,726 594,790
1,592,617 1 ,544,884
(1 ,332)
(3,060) (5,685)
90,227 (43,585)
(150,053) (458,570)
(35,205) (23,956)
25,386 (625)
290 (927)
1 ,518,870 1,011 ,536
(727,535) (1 ,132,885)
- 722,680
(727,535) (410,205)
4,200,000
143,839 49,692
(2,259,386) (1,849,928)
(125,000) (125,000)
(61,900) (69,720)
1,371,286
(1 ,371,286)
(35,941)
I
490,326 (623,670)
r
-39-
COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE
AND SIMILAR TRUST FUND - 2 of 211
11
FIDUCIARY
PROPRIETARY FUND TYPE
FUND TYPE NON-EXPENDABLE
ENTERPRISE TRUST
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earned on investments 171 ,835 $ 1 ,549
11
INCREASE IN CASH 1,453,496 1,549
Cash balance at beginning of year 401,044 21,268
CASH BALANCE AT END OF YEAR $1 ,854,540 $22,817
11
I
I
I
IP
!I
-40-
I
i
' 1989 1988
173,384 31 ,627
1,455,045 9,288
' 422,312 413,024
$1,877,357 $422,312
I
1
I
I
' See notes to financial statements.
-41-
1
NOTES TO FINANCIAL STATEMENTS
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
1
1. ORGANIZATION
The City of Friendswood, Texas was incorporated on October 15, 1960. The
charter provided for a Mayor-Council form of city government. The charter
was amended on October 16, 1971 to provide for a City Council-City Manager
form of city government. '
The Mayor and six Councilmen are elected from the City at large to serve
two-year terms.
The City Council is the principal legislative body of the City. The City
Manager is appointed by a majority vote of the City Council and is respons-
ible
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.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
In defining the reporting entity the City has considered the following
criteria: (1) oversight responsibility which includes (a) financial
interdependency, (b) selection of governing authority, (c) designation
of management, (d) ability to significantly influence operations, and
(e) accountability for financial matters, (2) scope of public service
and (3) special financing relationships.
The reporting entity is composed of the operational units (General,
Special Revenue, Debt Service, Capital Projects, Non-expendable Trust
and Enterprise Funds) of the City. The governmental units listed below
were considered but excluded, because they did not materially meet the
criteria listed above.
These governmental units include Friendswood Independent School District, 11
Clear Creek Independent School District, Galveston County, Harris County
and Clear Creek Drainage District and have been omitted from the reporting
entity.
Of the component units considered for inclusion in the reporting entity
only Friendswood Volunteer Fire Department had a positive response to
criteria 1(a) and 1(d) above. No other positive responses were found to
the remaining criteria. In the opinion of the City's management, the
degree of oversight of the Friendswood Volunteer Fire Department is
immaterial.
-42-
11
NOTES TO FINANCIAL STATEMENTS - 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. FUND ACCOUNTING
The accounts of the City are organized on the basis of funds and account
groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, fund equity,
revenues, and expenditures or expenses, as appropriate. Resources are
allocated to and accounted for in individual funds based upon the
purposes for which they are to be spent and the means by which spending
activities are controlled. The City uses six fund types and two account
groups described below:
GOVERNMENTAL FUND TYPES
Governmental funds are those through which most governmental functions
of the City are financed. The City' s expendable financial resources
(except those accounted for in proprietary funds) are accounted for
through governmental funds. The measurement focus is upon determination
of changes in financial position, rather than upon net income determi-
nation. The following are the City' s governmental fund types:
General Fund
The General Fund is used to account for all financial transactions which
are not accounted for in another fund. The primary sources of revenue
of the General Fund are property taxes, sales and use taxes, franchises,
licenses and permits, and fines and forfeitures. Expenditures are for
general government, public safety, public works, community development
and community services.
Special Revenue Funds
The Special Revenue Funds are used to account for proceeds of specific
revenue sources that are legally restricted to financing specified
activities. Capital improvements are charged to expenditures in the
11 accounts of this fund and capitalized in the General Fixed Assets Account
Group or the Enterprise Fund.
11 Debt Service Fund
The Debt Service Fund is used to account for the payment of interest
and principal on all general long-term debt of the City. The primary
source of revenue of the Debt Service is general property taxes.
11
-43-
II
!!
NOTES TO FINANCIAL STATEMENTS - 3
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
II
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
11
B. FUND ACCOUNTING (continued)
Capital Projects FundII
The Capital Projects Fund is used to account for the receipt and ex-
penditures of resources used for the acquisition and construction of
major capital facilities (other than those financed by the Enterprise II
Fund) . The principal resources of the Capital Projects Fund are pro-
ceeds from the sale of bonds and certificates of obligation, federal
II
grants, interest revenues and operating transfers from other funds.
PROPRIETARY FUND TYPE
Proprietary funds are used to account for the City's ongoing organiza 11
-
tions and activities which are similar to those often found in the
private sector. The measurement focus is upon determination of net
income. The following is the City' s proprietary fund type: 11
Enterprise Fund (Water and Sewer)
II
The Enterprise Fund is used to account for operations of the water and
sewer department and the construction of related facilities and to
account for billing for and payment of its sanitation contract. The 1
fund is financed and operated in a manner similar to private business
enterprises - where the intent of the City is that the costs (expenses,
including depreciation) of providing goods or services to the general
11
public on a continuing basis be financed or recovered primarily through
user charges. The acquisition, maintenance and improvement of the
physical plant facilities required to provide these goods and services
are financed from existing cash resources, the issuance of bonds (reve !I
-
nue or general obligation) , federal grants and other City funds.
FIDUCIARY FUND TYPES 3
Trust Fund
The Non-Expendable Trust Fund (1776 Park) is used to account for assets !I
held by the City in a trustee capacity or as an agent for individuals,
private organizations, other governments and/or other funds. This fund
is accounted for in the same manner as proprietary funds. !I
:I
11
-44-
I!
NOTES TO FINANCIAL STATEMENTS - 4
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. FUND ACCOUNTING (continued)
11 ACCOUNT GROUPS
Account groups are used to establish accounting control and account-
11 ability for the City' s general fixed assets and general long-term debt.
The following are the City's account groups:
General Fixed Assets Account Group
The General Fixed Assets Account Group is used to account for the
11 City' s land, buildings, improvements and equipment except those re-
corded in the Enterprise Fund.
General Long-Term Debt Account Group
This account group is used to account for the City' s liability for
general obligation bonds and certificates of obligation due at varying
dates through the year 2004 which are payable from general property tax
revenues of the City.
C. BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the financial
statements, regardless of the measurement focus applied.
MEASUREMENT FOCUS
Governmental fund types (General, Special Revenue, Debt Service and
Capital Projects) are accounted for on a "current financial resources"
measurement focus. Accordingly, only current assets and current lia-
bilities are included on their balance sheets and the reported fund
balance provides an indication of available spendable or appropriable
resources. Operating statements for governmental fund types report
increases and decreases in available spendable resources.
The Enterprise Fund, a proprietary fund type, and the Non-Expendable
Trust Fund are accounted for on a "flow of economic resources" measure-
ment focus. Accordingly, all assets and all liabilities are included on
their balance sheets, and the reported fund equity provides an indication
of the economic net worth of the fund. Operating statements for the
Enterprise Fund report increases and decreases in total economic net
worth.
-45-
NOTES TO FINANCIAL STATEMENTS - 5 11
CITY OF FRIENDSW00D, TEXAS 11
September 30, 1989
I!
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. BASIS OF ACCOUNTING (continued) 11
MODIFIED ACCRUAL BASIS OF ACCOUNTING
The modified accrual basis of accounting is followed in the governmental
fund types. Under this basis of accounting, revenues are recognized
when they become susceptible to accrual, i.e. , both measurable and
available to finance expenditures of the current period. Available
means then due, or past due and receivable within the current period
and collected within the current period or expected to be collected
soon thereafter to be used to pay liabilities of the current period.
Such time thereafter shall not exceed 60 days. Expenditures are re-
corded when the related fund liability is incurred with the exception of
principal and interest on general long-term debt.
The treatment of specific revenue and expenditure items is described
below:
(1) General property taxes are recorded as a receivable when levied
and as revenue when they become available. Property taxes receiv-
able have been recorded as deferred revenue at September 30, 1989
Property taxes collected within sixty days subsequent to
September 30, 1989 have not been recorded as revenue as the amount
11
is not material .
(2) Sick pay is accrued, and one half of any cumulative sick pay is
payable to the employee upon termination. Unpaid vacation is11
recorded as it accrues and cannot be carried forward to the fol-
lowing year without City Manager approval. Amounts accrued in
these financial statements represent the unused portion of vaca-
tion at September 30, 1989. Longevity begins to accrue after one
year of employment and is paid each December. "Comp-time" accrues
each pay period and cumulative "comp-time" is payable to the em-
ployee upon termination. Sick pay, vacation, longevity, and
"comp-time" will be liquidated with expendable available financial
resources and are accrued in the General and Enterprise Funds. As
of September 30, 1989, accrued holiday, sick pay, vacation, longe1!
-
vity pay and "comp-time" were as follows:
11
—46—
NOTES TO FINANCIAL STATEMENTS - 6
CITY OF F8ID0DSWO0D, TEXAS
September 30, 1989
2' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. BASIS OF ACCOUNTING (continued)
MODIFIED ACCRUAL BASIS OF ACCOUNTING (continued)
Fund Holiday Sick Pay Vacation Longevity "Comp-Time" Total
~� General Fund G22,800 $211,363 $152,504 $17,092 $12,484 $416,243
Enterprise Fund 781 18,698 16,054 2^784 307 38,624
TOTAL $23,581 $230,061 $168^558 $19^876 $12,791 $454,867
------- ------- --------
(3) Principal and interest on general long-term debt is recognized
when due,
(4) Supplies inventories are charged to expenditures when porcbaned
.
(5) Franchise fees, fines, licenses and permits, and sales tax are rec-
ognized when received; i.e. , the time they are considered measurable.
e� Sanitation fees and Revenue Sharing entitlements are recorded when
earned.
(6) investment earnings are not accrued in the governmental fund types
and Non-Expendable Trust Funds since they are not material . Earnings
are recorded upon maturity of investments. Investments (certificates
of deposit) are stated at cost.
The Enterprise Food and Non-Expendable Trust Fund revenues and expenses
are recorded on the accrual basis whereby revenues are recognized in the
period in which they are earned and become measurable, and expenses are
recognized in the period incurred.
-47-
11
NOTES TO FINANCIAL STATEMENTS - 7
CITY OF FRIENDSWOOD, TEXAS 11
September 30, 1989
I!
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. BUDGETS
GENERAL BUDGET POLICIES 11
Procedures in establishing budgetary data reflected in the financial
statements are as follows:
11
(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 hear-
ing. 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 appro-
priation revenues in excess of those estimated in the budget, the
Council may make supplemental appropriation for the year up to the I!
amount of such excess.
(2) At any time during the fiscal year, the City Manager may transfer11
part or all of any unencumbered appropriation balance among programs
within a department, division or office and, upon written request by
the City Manager, the Council may by ordinance transfer part or all
of any unencumbered appropriation balance from one department, office,
or agency to another.
(3) Limitations : No appropriation for debt service may be reduced or 11
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) Legally adopted budgets for the General, Special Revenue, Debt
Service, Capital Projects and Enterprise Funds are prepared on a
11
basis consistent with generally accepted accounting principles
(GAAP), at the departmental level.
(5) Every appropriation, except an appropriation for a capital expendi11
-
ture, shall lapse at the close of the fiscal year to the extent that
it has not been expended or encumbered.
The City of Friendswood has complied with all budget requirements for
the year ended September 30, 1989.
!!
-48-
11
I!
NOTES TO FINANCIAL STATEMENTS - 8
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
11 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. FIXED ASSETS
Fixed assets are stated at cost or, if the cost is not determinable, at
estimated historical cost. Donated fixed assets are recorded at their
estimated fair value on the date received. Costs incurred for the pur-
chase or construction of general fixed assets are recorded as capital
outlay expenditures in the General, Special Revenue and Capital Projects
Funds. All such costs are capitalized in the General Fixed Assets
Account Group. Amounts expended for property, plant and equipment in the
Enterprise Fund are capitalized in the fixed asset accounts within that
fund. Public domain fixed assets such as bridges, roads, drainage systems,
11 etc. , are capitalized along with other general fixed assets.
Depreciation of all exhaustible fixed assets used by the Enterprise
11 Fund is charged as an expense against its operations. Allowance for
depreciation is reported in the Enterprise Fund balance sheet. Depre-
ciation has been provided over the estimated useful lives using the
straight-line method. The estimated useful lives are as follows:
Assets Lives
Equipment 5-10 years
Water and Sewer System 40-50 years
No depreciation is provided for the general fixed assets of the City.
F. DEBT SERVICE
The ad valorem tax rate is allocated each year between the General Fund
and the Debt Service Fund. The full amount estimated to be required
for debt service on general obligation debt is provided by the debt
service tax together with interest earned in the Debt Service Fund.
Enterprise Fund long-term debt requirements are provided from net
revenues of the Fund.
G. GENERAL PROPERTY TAXES
All taxes due the City on real or personal property are payable at the
Office of the City Assessor-Collector and may be paid at any time after
11 the tax rolls for the year have been completed and approved, which is no
later than October 1. Taxes are levied on October 1 and are due by
February 1 , and all taxes not paid prior to this date are deemed delin-
quent and are subject to penalty and interest. All property located
within the City limits on the first day of January of each year is
charged with a special lien in favor of the City from such date for
taxes due thereon.
-49-
11
I!
NOTES TO FINANCIAL STATEMENTS - 9
CITY OF FRIENDSWOOD, TEXAS
11
September 30, 1989
11
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
H. "MEMORANDUM ONLY" CAPTIONS 11
The "memorandum only" captions on the total columns of the combined
statements indicate that totals are presented only for overview infor-
mational purposes. Data in these columns do not present financial
position, results of operations or changes in financial position in
conformity with generally accepted accounting principles. 11
I. ALLOWANCES
11
Allowance for doubtful accounts has been recorded at September 30, 1989
as follows:
Fund Type of Account Amount
Enterprise Fund Water and Sewer billings $20,000
General Fund Sanitation billings 2,500 11
J. ENCUMBRANCES
Encumbrances represent the estimated amount of expenditures ultimately 11
to result when unperformed contracts (in progress at year-end) are
completed. Such encumbrances are reported as reservations of fund 11
balances and do not constitute expenditures or liabilities . Encumbrances
outstanding at September 30, 1989 were $277,072 and $230,991 in the
General and Capital Projects funds respectively.
!I
3. INTERFUND RECEIVABLES AND PAYABLES
The following is a summary of amounts due from and due to other funds: 11
Due From Due To
General Fund 11
Enterprise Fund $637
Enterprise Fund
General Fund $637
!I
11
11
-50-
e
I
NOTES TO FINANCIAL STATEMENTS - 10
1 CITY OF FRIENDSWOOD, TEXAS
II
September 30, 1989
II
4. DEPOSITS AND INVESTMENTS
At September 30, 1989 the carrying amount of the City's certificates of
I deposit in banks was $3,750,000 and the cash balance was $230,859. Of the
bank balance, $100,000 was covered by federal depository insurance; U. S.
government securities and municipal bonds in the amount of $4,471 ,500 were
I
pledged as collateral for the balance. Such securities were held in safe-
keeping in the City' s name for the pledging bank at the pledging bank' s
correspondent bank trust department in the government' s name.
I
State law authorizes the City to invest in:
(a) obligations of the United States or its agencies or instrumentalities;
I (b) direct obligations of the State of Texas or its agencies;
(c) other obligations, the principal and interest on which are uncondition-
ally guaranteed or insured by the State of Texas or the United States;
1 (d) obligations of state, agencies, counties, cities and other political
subdivisions of any state having been rated as to investment quality by
a nationally recognized investment rating firm and having received a
rating of not less than A or its equivalent;
1 (e) certificates of deposit issued by state and national banks domiciled
in Texas which are:
(1) guaranteed or insured by the Federal Deposit Insurance Corpora-
' tion, or its successor; or
(2) secured by obligations of paragraphs (a) to (d) above and that
have a market value of not less than the principal amount of
II
the certificates; and
(f) fully collateralized by direct repurchase agreements.
II
5. FIXED ASSETS
A summary of changes in general fixed assets for the year ended
ISeptember 30, 1989 follows :
Balance at Retirements Balance at
I Sept.
30, and Sept. 30,
1988 Additions Reclassifications 1989
Land $ 991 ,203 $ 416,865 $ 1,408,068
II Buildings 1,917,490 118,437 2,035,927
Improvements 9,023,876 652,886 9,676,762
Equipment 2,303,175 168,172 $ 3,653 2,467,694
I Construction in
progress 478,780 728,079 1,187,817 19,042
II
TOTAL $14,714,524 $2,084,439 $1 ,191 ,470 $15,607,493
-51-
I
NOTES TO FINANCIAL STATEMENTS - 11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
1
5. FIXED ASSETS (continued)
A summary of changes in Enterprise Fund fixed assets for the year ended
September 30, 1989 follows:
Balance at Retirements Balance at
Sept. 30, and Sept. 30,
1988 Additions Reclassifications 1989 _ 1
Land $ 165,099 $ 165,099
Plant and equipment 5,594,851 $ 53,202 5,648,053
Plant and equipment -
Blackhawk 9,749,543 9,749,543
Water and sewer lines 5,189,956 505,313 5,695,269
Drainage 1, 171,064 1,171,064
Storm sewers 637,671 637,671
Construction in
progress 2,425,591 2,206,184 $505,313 4,126,462 1
24,933,775 2,764,699 505,313 27,193,161
Less allowance for
depreciation 4,427 ,152 604,726 5,031 ,878
TOTAL $20,506,623 $2,159,973 $505,313 $22, 161,283
== 1
6. COMMITMENTS
A. On October 1, 1981 the City entered into a contract with the Friendswood
Volunteer Fire Department, Inc. The Department shall furnish all fire
suppression, rescue and emergency medical services, utilizing apparatus
and equipment owned by the City to all persons and property located
within the corporate limits of the City, or to persons and property
located outside the City when approved by Council. The City agrees to
(1) provide the fire fighting equipment and facilities for the use by
the Department in fighting fire and performing emergency medical ser-
vices, (2) to provide funds for the capital equipment, operation and
maintenance of the Department in accordance with the annual budget
as approved by Council, (3) to provide dispatch services and (4) employ
one paid firefighter and a paramedic for and on behalf of the Department.
B. On February 22, 1985, the City entered into an agreement with Bay
Area Land Company, Ltd. (Partnership) whereby Bay Area Land Company
paid the City $1,200,000 in tap revenue fees to serve property de-
veloped by Bay Area Land Company. The $1,200,000 payment is to be
repaid by the City from connection fees that are to be levied by the
City for areas within the property during the term of the utility
allocations.
-52-
e
I
NOTES TO FINANCIAL STATEMENTS - 12
IICITY O ' FRIENDSWOOD, TEXAS
11 September 30, 1989
I6. COMMITMENTS (continued)
C. The City entered into a contract with Gulf Coast Waste Disposal Authority on
' December 12, 1974 to manage the Blackhawk Regional Waste Treatment Plant. The City
pays its pro rata share of the plant' s operating expenses and a management fee as
set by the Blackhawk Advisory Committee. The City paid $450,707 to the Authority
for operation and management services for the year ended September 30, 1989.
D. The City renewed a contract with Best Waste Systems, Inc. on November 1, 1987 for
the collection of garbage, trash and other refuse within the corporate limits of
' the City twice each week. The contract expires on October 31, 1992 with an option
of renewal for an additional five years. The residential collection fee is set at
$7. 14 per month. Small commercial fees are $32.89 per month, and the fee varies
for commercial container pick-up as to the size of the container.
E. The City entered into a joint venture with the City of Pearland and Alvin on
August 1, 1988 to consider acquisition of Clover Field Airport. A grant from the
' Federal Aviation Administration for $39,000 was received and expended by the City of
Friendswood during the year ended September 30, 1988 to perform a feasibility study
for the acquisition of the airport.
The percentages of participation are as follows:
City of Friendswood 33 1/3%
City of Alvin, Texas 33 1/3
City of Pearland, Texas 33 1/3
' 100
There was no financial activity during the current year on this project. There
were no assets or liabilities at September 30, 1989.
F. The City had the following construction commitments at September 30,
1989:
Amount
Paid to
Project Contract Percent Sept. 30,
Project Contractor Description Amount Complete 1989
City Hall No contract Materials and 63% $ 12,099
Annex services for reno-
Project vation work per-
formed by in-house
personnel and
outside vendors.
I
-53-
I
NOTES TO FINANCIAL STATEMENTS - 13 II
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
II
6. COMMITMENTS (continued)
II
Amount
Paid to
Project Contract Percent Sept. 30, II
Project Contractor Description Amount Complete 1989
Old City Hall T.E. Burke Preliminary design $ 3,430 25% $ 858 '
Renovation Construction
Project
Animal No contract Materials and 67 6,085 '
Control services for
Facility construction work
Project performed by inII
-
house personnel
and outside
vendors. II
Southeast City of Houston City buying into 3,300,000 - 3,300,000
Water Puri- Houston' s Plant.
ficationII
Plant
(The City has paid all of its' required contribution to the City of Houston' s
II
water purification plant project. However, at September 30, 1989 the project was
not substantially complete) .
Southeast City of Houston Capitalized - 260,11411
Water construction
Purifica- interest.
tion PlantII
Water line In-house New water 41 41,680
on FM 528 Project line
II
from Fire
Station #2
to Tower
Estates II
Water line Coenco Preliminary 7 1,300'
across survey
Cowarts engineering
Creek at
Castlewood
II
II
-54-
II
NOTES TO FINANCIAL STATEMENTS -14
ICITY OF FRIENDSWOOD, TEXAS
1 September 30, 1989
I
6. COMMITMENTS (continued)
Amount
Paid to
I Project Contract Percent Sept. 30,
Project Contractor Description Amount Complete 1989
Fire hydrant In-house Install 18 11% $ 2,091
I
improve- Project new fire
ments hydrants
throughout
II the City.
Manhole In-house New multiyear 12 945
1 Rehabili-
tation Project project.
' Surface water Wayne Smith & Preliminary, $148,000 66 97,166
conversion Associates design, and
engineering inspection
engineering
il on entire
surface water
conversion
II
project.
Surface water Angel Brothers Transmission 331,439 97 323,028
1 18" trans- Enterprises, line construction,
mission Coenco, and MUD 55 to booster
line Brown, Gay and pump station,
Associates design and
II engineering.
Booster pump Mercer Construction of 443,700 21 94,479
1 station and Construction City pumping
ground Company station and
storage 504,000 ground
1 storage tank for
surface water
conversion.
1 Booster pump HTS, Inc. Soil testing 21 3,670
station
and ground
IIstorage
C
-55-
I
NOTES TO FINANCIAL STATEMENTS - 15
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
I/
6. COMMITMENTS (continued)
Amount II
Paid to
Project Contract Percent Sept. 30,
Project Contractor Description Amount Complete 1989
Water line Coenco Preliminary 8% $ 1,989
across surveying
Cowarts on new water
Creek at line.
Sunset
$4,145,504 II
7. LONG-TERM DEBT I/
Long-term debt at September 30, 1989 is comprised of the following:
Principal
Balance Current
Description Sept. 30, 1989 Portion
General Obligation Bonds
Refunding Bonds, Series 1986 $ 8,750,778 $670,000 I
Certificates of Obligation
Certificates dated December 1, 1988 due in
installments of $35,000 to $45,000 payable
on March 1 of each year with interest at
8.375% payable each March 1 and September 1,
until 1992. 200,000 35,000 1
Capital Leases
Radio Lease 7,252 5,723
Computer Lease (Police) 22,185 10,522
TOTAL 8,980,215 721,245
Revenue Bonds
Waterworks and Sanitary Sewer System Revenue Bonds,
Series 1969 due in installments of $20,000
to $50,000 through March 1, 1999, interest at
6. 125 to 6.50 percent 390,000 30,000
I
-56 111/
-
II
I
NOTES TO FINANCIAL STATEMENTS - 16
ICITY OF FRIENDSWOOD, TEXAS
II
September 30, 1989
I7. LONG-TERM DEBT (continued)
Principal
II Balance Current
Description Sept. 30, 1989 Portion
II Revenue Bonds (continued)
Waterworks and Sewer System Revenue Bonds,
Series 1979 due in installments of $5,000
to $100,000 through March 1, 1996, interest at
II5.50 to 6.50 percent. 605,000 100,000
Certificates of Obligation
I Certificates dated December 1, 1988 due in
installments of $90,000 to $560,000 payable
on March 1 of each year with interest at 6.9%
to 8.375% payable each March 1 and September 1,
IIuntil 2004. 4,200,000
TOTAL 5,195,000 130,000
IITOTAL LONG- $14,175,215 $851,245
TERM DEBT
ICapital lease requirements are as follows:
I Total Present Value Amount
Year Ending Lease of Minimum Representing
Sept. 30 Payments Lease Payments Interest
I 1990 $18,856 $16,245 $ 2,611
1991 14,186 13,192 994
II $33,042 $29,437 $ 3,605
I
I
I
I
-57-
II
NOTES TO FINANCIAL STATEMENTS - 17II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 11
1
7. LONG-TERM DEBT (continued)
The bond, certificate of obligation and capital lease requirements of theII
City (general obligation and revenue) by maturity date are as follows:
Year Ending TotalII
Sept. 30 Principal Interest Total
1990 $ 851,245 $ 941,382 $ 1,792,627
1991 983,192 882,727 1,865,919
1992 1,065,000 814,627 1,879,627
1993 1,130,000 740,315 1,870,315
1994 1,200,000 659,312 1,859,312II
1995 1, 140,000 576,613 1,716,613
1996 1,240,000 490,304 1,730,304
1997 1,320,000 395,266 1,715,266II
1998 1, 150,000 304,671 1,454,671
1999 1,220,000 218,634 1,438,634
2000 725,834 718,498 1,444,332
II
2001 505,898 242,614 748,512
2002 512,209 157,634 669,843
2003 549,993 123,238 673,231
2004 581 ,844 82,756 664,600II
TOTAL LONG-
TERM DEBT $14, 175,215 $7,348,591 $21,523,806
II
1
11
I
II
1
-58 II
-
1
NOTES TO FINANCIAL STATEMENTS - 18
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
7. LONG-TERM DEBT (continued)
Bond Refinancing
In Prior years, the City defeased certain outstanding general obligation and
other bonds by placing the proceeds of the new bonds in an irrevocable trust
to provide for all future debt service payments on the old bonds. Accordingly,
' the trust accounts and the defeased bonds are not included in the City's finan-
cial statements. At September 30, 1989, the following outstanding bonds are
considered defeased:
Outstanding
Series Principal
Waterworks and Sewer System Unlimited Tax Bonds, Series 1962 $ 150,000
Waterworks and Sewer System Unlimited Tax Bonds, Series 1963 40,000
General Obligation Refunding Bonds, Series 1969 79,000
Drainage Improvement Bonds, Series 1973 100,000
General Obligation Bonds, Series 1974 605,000
Street Improvement Bonds, Series 1977 1,110,000
General Obligation Bonds, Series 1979 230,000
Street Improvement Bonds, Series 1982 1,270,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1964 325,000
Waterworks and Sewer System Combination Tax and Revenue
Refunding Bonds, Series 1972 660,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1967-A 525,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1972 470,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1974 640,000
WCID #108, Waterworks and Sewer System Combination Tax and
' Revenue Bonds, Series 1971-A 540,000
WCID #108, Waterworks and Sewer System Unlimited Tax and
Revenue Bonds, Series 1971-A 65,000
$6,809,000
A number of limitations and restrictions are contained in the various bond
ordinances. The City has complied with all significant limitations and
restrictions.
1
-59-
11
NOTES TO FINANCIAL STATEMENTS - 19
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
N
7. LONG-TERM DEBT (continued)
Changes in bond, certificate of obiligation and capital lease amounts of the
City (general obligation and revenue) for the year ended September 30, 1989
were as follows: I
Principal Principal
Balance Balance IIDescription Sept. 30, 1988 Additions Retirements Sept. 30, 1989
General Obligation
Bonds $ 9,405,778 $ 655,000 $ 8,750,778
Certificates of
Obligation $4,400,000 4,400,000 1
Capital Leases 55,521 26,084 29,437
Revenue Bonds 1, 120,000 125,000 995,000
Notes Payable 1,371,286 _ 1 ,371,286
$11,952,585 $4,400,000 $2,177,370 $14,175,215
1
8. PENSION PLAN
Plan Description 1
The City provides pension benefits for all of its eligible employees through
a nontraditional, joint contributory, defined contribution plan in the state-
wide Texas Municipal Retirement System (TMRS) , one of over 500 administered
by TMRS, an agent multiple-employer public employee retirement system. It is
the opinion of the TMRS management that the plans in TMRS are substantially
defined contribution plans, but they have elected to provide additional
voluntary disclosure to help foster a better understanding of some of the
nontraditional characteristics of the plan.
Benefits depend upon the sum of the employee's contributions to the plan,
with interest, and the city-financed monetary credits, with interest. At the
date the plan began, the City granted monetary credits for service rendered
before the plan began of a theoretical amount equal to two times what would
have been contributed by the employee, with interest, prior to establishment
of the plan. Monetary credits for service since the plan began are a percent
(100%, 150%, or 200%) of the employee' s accumulated contributions. In addition,
the City can grant as often as annually another type of monetary credit referred
-60-
I
NOTES TO FINANCIAL STATEMENTS - 20
CITY OF FRIENDSWOOD, Texas
September 30, 1989
8. PENSION PLAN (continued)
Plan Description (continued)
Ito as an updated service credit which is a theoretical amount which, when
added to the employee' s accumulated contributions and the monetary credits
' for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee
contribution rate and City matching percent had always been in existence and
if the employee' s salary had always been the average of his salary in the
I
last three years. At retirement, the benefit is calculated as if the sum of
the employee's accumulated contributions with interest and the employer-
financed monetary credits with interest were used to purchase an annuity.
Members can retire at ages 60 and above with 10 or more years of service or
with 25 years of service regardless of age. The plan also provides death
and disability benefits. A member is vested after 10 years, 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.
11 Contributions
The contribution rate for the employees is 5%, and the City matching percent
is currently 100%, both as adopted by the governing body of the City. Under
the state law governing TMRS, the City contribution rate is determined annually
by an actuary. Part of the City contribution rate (the normal cost) is to
fund the currently accruing monetary credits, with the other part (the prior
' service contribution rate) calculated as the level percent of payroll needed
to amortize the unfunded actuarial liability over the remainder of the plan' s
25-year amortization period. When the City periodically adopts updated
service credits and increases in annuities in effect, the increased unfunded
actuarial liability is to be amortized over a new 25-year period. Currently,
the unfunded actuarial liability is being amortized over the 25-year period
which began January, 1989. 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.
-61-
I
NOTES TO FINANCIAL STATEMENTS - 21
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1989
I
8. PENSION PLAN (continued)
Contributions (continued)
The City' s total payroll in fiscal year 1989 was $2,924,353, and the
City' s contributions were based on a payroll of $2,615,976. Both the City
and the covered employees made the required contributions, amounting to
$86,290 (3.43% of covered payroll for the months in calendar year 1988 and
3.25% for the months in calendar year 1989) for the City and $130,800 (5%)
for the employees. The City adopted changes in the plan since the previous
actuarial valuation, which had the effect of increasing the City' s contribution
rate for 1989 by 0. 15% of payroll. There were no related-party transactions. 11
Funding Status and Progress
Even though the substance of the City' s plan is not to provide a defined
benefit in some form, some additional voluntary disclosure is appropriate
due to the nontraditional nature of the defined contribution plan which had
an initial unfunded pension benefit obligation due to the monetary credits
granted by the City for services rendered before the plan began and which
can have additions to the unfunded pension benefit obligation through the
periodic adoption of increases in benefit credits and benefits. Statement
No. 5 of the Governmental Accounting Standards Board (GASB 5) defines
pension benefit obligation as a standardized disclosure measure of the
actuarial present value of pension benefits, adjusted for the effects of '
projected salary increases, estimated to be payable in the future as a
result of employee service to date. The measure is intended to help users
assess the funding status of public employee pension plans, assess progress
made in accumulating sufficient assets to pay benefits when due, and make
comparisons among public employee pension plans.
The pension benefit obligation shown below is similar in nature to the I
standardized disclosure measure required by GASB 5 for defined benefit plans
except that there is no need to project salary increases since the benefit
credits earned for service to date are not dependent upon future salaries.
The calculations were made as part of the annual actuarial valuation as of
December 31, 1988. Because of the money-purchase nature of the plan, the
interest rate assumption, currently 8.5% per year, does not have as much
impact on the results as it does for a defined benefit plan. Market value
of assets is not determined for each City's plan, but the market value of
assets for TMRS as a whole was 103.6% of book value as of December 31,
1988.
1
-62- 1
NOTES TO FINANCIAL STATEMENTS - 22
11 CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
8. PENSION PLAN (continued)
Pension Benefit Obligation
Annuitants currently receiving benefits $ 22,852
Terminated employees 242,689
Current employees
Accumulated employee contributions including
allocated invested earnings 829,593
Employer-financed vested 545,773
Employer-financed nonvested 237,650
Total 1,878,557
Net assets available for benefits, at
book value 1 ,582,085
11 UNFUNDED PENSION BENEFIT OBLIGATION $ 296,472
The book value of assets is amortized cost for bonds and original cost for
short-term securities and stocks. The actuarial assumptions used to compute
the actuarially determined City contribution rate are the same as those used
11 to compute the pension benefit obligation. The amounts above reflect
changes in actuarial assumptions since the previous actuarial valuation,
which had the effect of decreasing the pension benefit obligation by $120,928.
11 Because of the one-year lag between the actuarial rate goes into effect, the
new actuarial assumptions will first affect the 1990 contribution rate for
the City. The amounts above also reflect the adoption of changes in the
plan since the previous actuarial valuation, which had the effect of increasing
the pension benefit obligation by $58,096.
Trend Information
Trend information for the three years ended December 31, 1986, 1987 and
1988, respectively, is as follows: available assets were sufficient to fund
74. 15 percent, 77.53 percent and 84.22 percent of the pension benefit
obligation. The unfunded pension benefit obligation represented 13.56
percent, 13.02 percent and 10. 14 percent of the annual payroll for employees
11 covered by TMRS for 1986, 1987 and 1988, respectively. Presenting the
unfunded pension benefit obligation as a percentage of annual covered
payroll approximately adjusts for the effects of inflation for analysis
purposes. In addition, for the three years ended December 31, 1986, 1987
and 1988 the City' s contributions to the system were 3.42 percent, 3.41
percent and 3.30 percent, respectively, of annual covered payroll.
Ten-year historical trend information presenting the TMRS progress in
accumulating sufficient assets to pay benefits when due is presented in the
TMRS December 31, 1988 Comprehensive Annual Financial Report.
-63-
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NOTES TO FINANCIAL STATEMENTS - 23
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
II
9. INTERFUND TRANSACTION
Operating transfers during the year ended September 30, 1989 were asII
follows:
AmountII
Transferred
In (Out)
General Fund
Special Revenue Fund $ (3,674) II
Capital Projects (545,000)
Enterprise Fund 727 ,535
178,861 11
Special Revenue Fund
General Fund 3,674II
Capital Projects Fund
General Fund 545,000
II
Enterprise Fund
General Fund (727 ,535)
3
NET DIFFERENCE $ -0-
I
10. BLACKHAWK REGIONAL WASTE TREATMENT PLANT
The City has entered into an arrangement with the City of Houston, Harris 11
County MUD #55, and CDC, Inc. for operating and maintaining a joint waste
treatment plant known as Blackhawk Regional Waste Treatment Plant. All
participants share in the expenses of operation and maintenance based onII
their respective percentages for use and fixed costs.
The percentages of ownership based on fund balances at September 30, 1989II
are as follows:
City of Friendswood 52.71%
City of Houston 15.94 II
Harris County MUD #55 20.28
CDC, Inc. 11.07
100.00% II
An annual budget of operations is submitted to the Gulf Coast Waste Disposal
Authority each year. The Gulf Coast Waste Disposal Authority is the governing
authority and consists of nine members (3 appointed by the governor, 3 appoint-
ed by the commissioners court, and 3 appointed by the participants) .
-64-
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NOTES TO FINANCIAL STATEMENTS - 24
11 CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
11 10. BLACKHAWK REGIONAL WASTE TREATMENT PLANT (continued)
As of September 30, 1989 the following audited financial information was
11 available from the operator:
Total assets $218,780
Total liabilities $218,780
$ -0-
11
Total revenues $766,264
Total expenses 766,264
Net (Loss) $ -0-
11
11 . SEGMENT INFORMATION
11 The Enterprise Fund provides two services financed by user charges (water
and sewer) . Segment information for the year ended September 30, 1989 follows
It (all non-direct revenues and expenses are treated as equally shared between
water and sewer system operations) :
Water Sewer Total
11 Operating revenue $ 2,021,826 $ 1,013,066 $ 3,034,892
Operating expense 576,513 867,473 1 ,443,986
Operating income before
depreciation 1,445,313 145,593 1,590,906
Depreciation expense 302,363 302,363 604,726
Net operating
income (loss) $ 1,142,950 $ (156,770) $ 986, 180
11
Non-operating income
(loss) $ 54,967 $ 54,968 $ 109,935
11 Property, plant and equipment $13,596,581 $13,596,580 $27,193,161
Less allowance for
depreciation 2,515,939 2,515,939 5,031,878
$11,080,642 $11,080,641 $22,161 ,283
-65-
NOTES TO FINANCIAL STATEMENTS - 25 11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
11. SEGMENT INFORMATION (continued)
Other segment information is shown below: 11
Current capital contributions $ 143,839 $ - $ 143,839
!I
Property, plant and equipment
additions 2,259,386 - 2,259,386
Net working capital 306,689 306,688 613,377
Total assets * * 24,512,707 11
Bonds and certificates of obligation * * 5,195,000
Total equity * * 18,987,584
11* Not determinable
12. CONTINGENCIES
!I
The City was involved in several pending lawsuits at September 30, 1988.
A summary of the more significant of these follows:
11
In Cause No. 87CV1485, Donna Woodham v. City of Friendswood, et al, filed in
the District Court of Galveston County, Texas, 122nd Judicial District, the
plaintiff seeks recovery for damages resulting from a death of her husband.
Plaintiff alleges that the negligence of the City, Galveston County, and
Harris County, in the construction and maintenance of a bridge, caused the
death of her husband in an automobile accident on such bridge. The City' s
:1
general liability insurance carrier has assumed the defense of said case.
In Cause No. 8820657, Trax Construction Co. , Inc. v. City of Friendswood,
et al, filed in the District Court of Galveston County, Texas, 122nd.
Judicial District, the plantiffs seek recovery of $225,000 in damages
allegedly resulting from the City' s breech of a street improvement contract.
A determination of potential liability has not been made in the case.
The City' s management has indicated that it will contest each of these
claims and is of the opinion that any liability resulting from such claims
will not have a material effect on the financial statements of the City for
the year ended September 30, 1989.
11
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3
-66-
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NOTES TO FINANCIAL STATEMENTS - 26
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
13. CONTRIBUTED CAPITAL
The following is a schedule of changes in contributed capital for the
IEnterprise Fund:
1989 1988
Contributed capital at beginning of year $14,816,039 $14,766,347
Add developer and customer tap fees 143,839 49,692
ICONTRIBUTED CAPITAL AT END OF YEAR $14,959,878 $14,816,039
14. RESTATEMENT OF PRIOR PERIOD
Certain account balances for the year end September 30, 1988 have been
I restated to reclassify compensated absences of $184,027 from the General
Long-Term Debt Account Group to the General Fund in compliance with NCGAS
No. 4. Compensated absences in the General Fund are to be liquidated with
I expendable available financial resources. Compensated absences related to
Enterprise Fund liabilities were correctly accounted for in the Enterprise
Fund in prior years. The effect of this restatement is as follows:
fAs Reported As Restated Difference
General Long-Term Debt Account Group
ItCompensated absences $ (184,027) $ - $ 184,027
Amount to be provided for retirement
It
of GLTD 9,319,430 9,135,403 (184,027)
$9, 135,403 $9,135,403 $ -
IIGeneral Fund
I Compensated absences $ (259,495) $ (443,522) $(184,027)
Fund balance (October 1, 1987) (390,471) (206,444) 184,027
$ (649,966) $ (649,966) $ -
f
11
-67-
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NOTES TO FINANCIAL STATEMENTS - 27
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
11
15. EXPENDITURES BY DEPARTMENT
The City changed the reporting of departmental expenditure groupings within
each fund to more closely reflect it' s adopted budget and internal accounting.
The amounts for year ended September 30, 1988 also have been adapted to
this format. Total expenditures by fund have not changed for year ended
September 30, 1988.
1
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COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
I
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-69-
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11
GENERAL FUND
The General Fund accounts for the resources used
to finance the fundamental operations of the City.
It is the basic fund of the City and covers all
I activities for which a separate fund has not been
established.
I
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II
GENERAL FUND EXHIBIT A-1
IICOMPARATIVE BALANCE SHEETS
I/ CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988
I Note 14
1989 1988
1 ASSETS
Cash - including certificates of deposit $1,410,459 $ 918,093
IReceivables - net, where applicable of
allowances for doubtful accounts
Property taxes 245,473 216,035
I/ Accounts 37,902 43,139
Due from other funds - 103,434
IPrepaid expenditures 32,957 13,079
I
TOTAL ASSETS $1 ,726,791 $1,293,780
LIABILITIES AND FUND BALANCES
II LIABILITIES
IIAccounts payable $ 155,665 $ 126,256
Compensated absences 416,243 443,522
IIAccrued expenditures 88,119 74,301
Deferred revenue 245,473 216,035
IIDue to other funds 637 927
TOTAL LIABILITIES 906,137 861,041
IIFUND BALANCES
Reserved for encumbrances 277,072 108,271
I
Reserved for prepaid expenditures 13,079
11 Unreserved
Undesignated 543,582 311 ,389
TOTAL FUND BALANCES 820,654 432,739
11 TOTAL LIABILITIES AND
FUND BALANCES $1 ,726,791 $1 ,293,780
11
-73-
11
11
GENERAL FUND EXHIBIT A-2
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - 1 of 2 1
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989 1
1989 1
VARIANCE-
FAVORABLE 198811
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES
Taxes 1
General property $3,370,321 $3,344,246 $(26,075) $3,337,987
Sales 515,000 606,549 91,549 509,551
Franchise 389,050 400,986 11,936 375,755 il
Other 800 800 - 1 ,023
4,275,171 4,352,581 77,410 4,224,316 II
Charges for services 541,063 542,911 1,848 545,130
' Fines and forfeitures 189,883 190,106 223 162,615 1
Licenses and permits 160,017 143,105 (16,912) 137,860
Donations 11,652 56,348 44,696 37,539 I
J Inter-governmental 44,330 53,464 9,134 48,985 II
' Interest 125,171 141,542 16,371 147,537
4 Other 25,696 54,923 29,227 33,721 1
TOTAL REVENUE 5,372,983 5,534,980 161,997 5,337,703
EXPENDITURES II
General government 1,275,054 1 ,167,194 107,860 1,127,195 II
Public safety 2,122,614 2,038,066 84,548 1,934,317
Public works 1,150,133 1,108,423 41,710 1,128,195
Community development 308,467 250,120 58,347 242,674 il
Community services 917,646 762,123 155,523 810,380
TOTAL EXPENDITURES 5,773 ,914 5,325,926 447,988 5,242,761
REVENUES OVER (UNDER) 11
EXPENDITURES (400,931) 209,054 609,985 94,942
1
II
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GENERAL FUND EXHIBIT A-2
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
I
1989
11 VARIANCE-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
OTHER FINANCING SOURCES (USES)
f Operating transfers in 727,535 727,535 - 1,135,485
Operating transfers out (548,674) (548,674) - (1 ,004,132)
TOTAL OTHER FINANCING
SOURCES (USES) 178,861 178,861 - 131,353
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES AND
OTHER USES $ (222,070) $387,915 $609,985 $ 226,295
11
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II
GENERAL FUND EXHIBIT A-3
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL -
II
BY FUNCTION - 1 of 2
CITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1989
II
1989
VARIANCE-
FAVORABLE 1988II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
General Government
• Mayor and council $ 13,850 $ 14,503 $ (653) $ 13,278 II
City secretary 86,843 76,393 10,450 109,376
- City manager 132,099 121,114 10,985 117,679
'Finance 184,513 183,706 807 182,055 11
• Data processing 117,911 88,911 29,000 53,965
Municipal courts 80,893 69,147 11,746 67,724
f Administration _ 658,945 613,420 45,525 583,118
Total General Government 1,275,054 1, 167, 194 107,860 1,127,195 II
Public Safety
/ Police 1,465,399 1,443,035 22,364 1,435,913
• Communications 156,716 161,519 (4,803) 154,763
• Emergency management 28,530 27,865 665 4,779
Animal control 121,585 117,854 3,731 55,271 II
' Fire 293,596 232,240 61,356 230,223
-' Fire marshal 56,788 55,553 _ 1 ,235 53,368
Total Public Safety 2,122,614 2,038,066 84,548 1,934,317 II
Public Works
/ Administration 98,799 97, 175 1,624 95,033
'Streets 418,843 391,798 27,045 490,051
' Drainage 107,187 87,489 19,698 19,267
Sanitation 525,304 531,961 (6,657) 523,844
Total Public Works 1, 150,133 1,108,423 41,710 1, 128, 195 411
Community Development
Administration 47,092 46,723 369 49,520
Planning and zoning 44,787 44,636 151 32,741
' Engineering 128,529 74, 145 54,384 78,336
- Inspection 88,059 84,616 3,443 82,077
Total Community Development 308,467 250, 120 58,347 242,674 Il
Community Services
' Library 333, 109 248,254 84,855 259,535 ,a
1 Parks and recreation 212,469 187,997 24,472 247,299
s Community activities 62,543 54,553 7,990 36,215
Swimming pool 59,958 48,448 11,510 53,413 1101
Building operations 202,967 176,271 26,696 175,918
Health services 46,600 46,600 _ 38,000
Total Community Services 917,646 762,123 155,523 810,380
3
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GENERAL FUND EXHIBIT A-3
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL -
BY FUNCTION - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
11
1989
1 VARIANCE-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
TOTAL EXPENDITURES $5,773,914 $5,325,926 $447,988 $5,242,761
Total Expenditures Before Capital
Outlays $5 ,293,334 $5,098,472 $194,862 $4,964,619
Capital outlays 480,580 227,454 253,126 278,142
TOTAL EXPENDITURES $5,773,914 $5,325,926 $447,988 $5,242,761
1
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11
GENERAL FUND EXHIBIT A-4 II
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 1 of 7
II
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989 II
1989
VARIANCEII
-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
General Government
Mayor and Council II
Personal services $ - $ - $ - $ -
Supplies 350 205 145 112
Other services and II
charges 13,500 14,298 (798) 13, 166
Maintenance - - - -
Capital outlay - _ - - - 11
13,850 14,503 (653) 13,278
City Secretary
Personal services 58,901 59,042 (141) 57,808 II
Supplies 1,920 1 ,335 585 1,852
Other services and
charges 25, 122 15,347 9,775 19,427 11
Maintenance 700 465 235 439
Capital outlay 200 204 (4) 29,850
86,843 76,393 10,450 109,376II
City Manager
Personal services 107,399 105,220 2,179 107,623
Supplies 1,600 1,380 220 1,479 11
Other services and
charges 22,650 14,130 8,520 8,242
Maintenance 450 384 66 335II
Capital outlay _ - _ - - -
132,099 121,114 10,985 117,679
Finance 11
Personal services 160,793 156,994 3,799 159,930
Supplies 4,335 4,014 321 4,411
II
Other services and
charges 18,585 21,373 (2,788) 17,414
Maintenance 300 766 (466) 300
Capital outlay 500 559 (59) 11
-
184,513 183,706 807 182,055
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GENERAL FUND EXHIBIT A-4
1 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 2 of 7
1 CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
1 1989
VARIANCE-
FAVORABLE 1988
1 BUDGET ACTUAL (UNFAVORABLE) ACTUAL
General government (continued)
1 Data Processing
Personal services 22, 147 21,389 758 19,785
Supplies 11,413 8,502 2,911 7,783
Other services and
1 charges 2,815 2,768 47 890
Maintenance 22,973 21,783 1,190 17,757
Capital outlay 58,563 _ 34,469 24,094 7,750
1 117,911 88,911 29,000 53,965
Municipal Courts
1 Personal services Supplies 74,752 63,366 11,386 63,924
4,052 3,817 235 2,220
Other services and
charges 1,889 1 ,841 75 1,430
1 Maintenance -200 -150 - 50 -150
Capital outlay
80,893 69,147 11,746 67,724
II Administration
Personal services - - - 4, 136
1 Supplies 1,100 584 516 97
Other services and
charges 657,845 612,836 45,009 578,885
658,945 613,420 45,525 583,118
1 Total General
Government 1,275,054 1,167,194 107,860 1 ,127,195
1 Public Safety
Police Service
1 Personal services 1,201 ,767 1, 196,475 5,292
(6,342) 1,165,866
Supplies 53,993 60,335 65,096
Other services and
charges 70,680 45,550 25,130 43,289
1 Maintenance 61 ,965 66,620 (4,655) 63,985
Capital outlay 76,994 74,055 2 ,939 97,677
1 ,465,399 1,443,035 22,364 1,435,913
1
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GENERAL FUND EXHIBIT A-4 II
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 3 of 7 1
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
II
1989
VARIANCE- I
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Public Safety (continued) I
Communications
Personal services 153,076 154,680 (1 ,604) 134,941
Supplies 2,315 2,711 (396) 5,676II
Other services and
charges 625 916 (291) 6,046
Maintenance 700 799 (99) 191-
Capital outlay 2,413 (2,413) 7,909
156,716 161,519 (4,803) 154,763
Emergency Management 1
Personal services 9,310 12,646 (3,336) -
Supplies 1,075 1,511 (436) 2,064
Other services and
charges 6,855 749 6,106 591
Maintenance 11 ,290 10,559 731 2,124
Capital outlay - 2 ,400 (2 ,400) II
-
28,530 27,865 665 4,779
Animal Control
Personal services 40,321 40,532 (211) 40,106 II
Supplies 5,255 4,990 265 5,997
Other charges and
services 4,850 5, 161 (311) 6,575II
Maintenance 1, 350 1,328 22 1,592
Capital outlay 69,809 65,843 3,966 1,001
121,585 117,854 3,731 55,271II
Fire/EMS
Personal services 65, 138 63,757 1,381 44,927
II
Supplies 50,423 - 50,423 -
Other charges and
services 40,686 168,483 (127,797) 185,073
Maintenance 52,046 - 52,046 223II
Capital outlay 85,303 - 85,303 -
293,596 232,240 61,356 230,223
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II
GENERAL FUND EXHIBIT A-4
IISTATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 4 of 7
IICITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
II i 1989
VARIANCE-
FAVORABLE 1988
11 BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Public Safety (continued)
I
Fire Marshal
Personal services 43,518 43,522 (4) 42,946
Supplies 5,000 3,813 1, 187 3,769
Other charges and
II services 4,895 4,929 (34) 3,641
Maintenance 2,375 2,194 181 1,517
Capital outlay 1 ,000 1 ,095 (95) 1 ,495
1 56,788 55,553 1 ,235 53,368
Total Public Safety 2,122 ,614 2,038,066 84,548 1,934,317
I
Public Works
Administration
Personal services 94,589 92 ,500 2,089 90, 144
Supplies 2,560 2,534 26 2,563
II Other charges and
services 875 369 506 959
Maintenance 775 1,213 (438) 1,367
II Capital outlay - 559 (559) -
98,799 97, 175 1,624 95,033
II Streets
Personal services 169,843 176,648 (6,805) 252,306
Supplies 79, 175 46,923 32,252 58,091
Other charges and
II services 118,525 111,181 7,344 108,566
Maintenance 46,300 52,411 (6,111) 51,700
Capital outlay 5,000 4,635 365 19,388
11 418,843 391 ,798 27,045 490,051
Drainage
II Personal services Supplies 88,287 79,276 9,011 -
900 900 57
Maintenance 18,000 8,213 9,787 19,210
107, 187 87,489 19,698 19,267
11 Sanititation
Other charges and
Itservices 525,304 531 ,961 (6,657) 523,844
Total Public Works 1,150,133 1,108,423 41,710 1 ,128,195
11
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GENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 5 of 7II
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989 II
1989
VARIANCE-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
II
Community Development
Administration
Personal services 45,272 45,385 (113) 47,755
II
Supplies 295 312 (17) 270
Other charges and
services 1,525 1,026 499 1,095
Capital outlay - - - 400 II
47,092 46,723 369 49,520
Planning & Zoning I
Personal services 43,077 43,434 (357) 31 ,403
Supplies 470 522 (52) 421
Other charges and
services 900 335 565 213 II
Maintenance 340 345 (5) 339
Capital outlay - - - 365
44,787 44,636 151 32,741 II
Engineering
Personal services 54,632 45,516 9, 116 27,969II
Supplies 2,970 2, 161 809 2,754
Other charges and
services 32,350 10,849 21,501 32,723
II
Maintenance 900 378 522 45
Capital outlay 37,677 15,241 22,436 14,845
128,529 74,145 54,384 78,336
II
Inspection
Personal services 77,689 78,595 (906) 76,924
Supplies 2,725 2,259 466 2,308II
Other charges and
services 6,295 2,672 3,623 1,362
Maintenance 1,350 1,090 260 1,044
Capital outlay - - _ - 439 II
88,059 84,616 3,443 82,077
Total Community Development 308,467 250, 120 58,347 242,67411
1
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GENERAL FUND EXHIBIT A-4
1 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 6 of 7
1 CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
I 1989
VARIANCE-
' FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
1 Community Services
Library
Personal services 196,811 194,035 2,776 188,746
Supplies 33,626 32,377 1,249 41,529
1 Other charges and
services 4,488 14,026 (9,538) 7,760
Maintenance 2,850 1,183 1,667 1,347
I
Capital outlay 95,334 6,633 88,701 20,153
333, 109 248,254 84,855 259,535
II Parks and Recreation
Personal services 102, 196 102,047 149 117,206
Supplies 24,750 15,646 9,104 21,120
Other charges and
II services 43,223 37,882 5,341 26,832
Maintenance 24,500 21,904 2,596 15,418
Capital outlay 17,800 10,518 7,282 66,723
II
212,469 187,997 24,472 247,299
Community Activities
I
Personal services 20,688 16,265 4,423 1,464
Supplies 16,422 9,510 6,912 14,507
Other charges and
services 18,622 23,782 (5,160) 19,813
II Maintenance 3,811 3,940 (129) 431
Capital outlay 3,000 1 ,056 1 ,944
62,543 54,553 7,990 36,215
ISwimming Pool
Personal services 36,273 30,975 5,298 31,043
II Supplies 8,500 6,710 1,790 7,376
Other charges and
services 8,270 5,644 2,626 8,600
Maintenance 2,715 3,029 (314) 3,811
I Capital outlay 4,200 2,090 2,110 2,583
59,958 48,448 11,510 53,413
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GENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 7 of 7 1
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989 II
1989 II
VARIANCE-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL11
Community Services (continued)
Building OperationsII
Personal services 23,887 22,860 1,027 22,093
Supplies 18,870 12,585 6,285 11,739
Other charges and
services 118,480 118,639 (159) 114,650 11
Maintenance 16,530 16,503 27 19,872
Capital outlay 25,200 5,684 19,516 7,564
202,967 176,271 26,696 175,918II
Health Services
Other charges and
services 46,600 46,600 38,000
Total Community Services 917,646 762 , 123 155,523 810,380 1
TOTAL EXPENDITURES $5,773,914 $5,325,926 $447,988 $5,242,761
1
6U:kg-4A, (7101 /-Vk
Ac 884I .
4-1 SZ53 .
ff $ 1,1092.
S, 78t,.
.J-kA -tee : a-1..: ee f .. 014- Q.0 aP.a Q u,_ -z.
I
4 ‘012,4/9/
-84-
1
1
' SPECIAL REVENUE FUNDS
These funds are used to account for the proceeds of specific
revenue sources that are legally restricted to financing
' specified purposes. The following describes the various types
of Special Revenue Funds used by the City.
' Revenue Sharing Fund
This fund accounted for the receipt and disbursement of funds
' received under the Revenue Sharing Act.
Parks and Recreation Reserve Fund
' This fund receives donations that are restricted for the use of
the parks and recreation programs in the City.
Mowing Liens Fund
This fund records revenues and expenditures in connection with
the filing of liens on property where the owner has failed to
' comply with the mowing ordinance.
Fine Arts Council Fund
This fund accounts for the City's support of the Friendswood
Fine Arts Council and its programs for the citizens of the City.
I
1
I
11
-85-
II
11
SPECIAL REVENUE FUNDS EXHIBIT B-1
IICOMBINING BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
IISeptember 30, 1989
11
PARKS AND FINE ARTS TOTAL
RECREATION MOWING COUNCIL 1989 1988
II
ASSETS
1 Cash - including
restricted cash $7,829 $ 5,733 $1 ,060 $14,622 $15,942
IIPrepaid expenditures - - - - 260
Accounts receivables
II Liens - 23,515 - 23,515 15,333
TOTAL ASSETS $7,829 $29,248 $1 ,060 $38,137 $31,535
IILIABILITIES AND FUND BALANCES
I
LIABILITIES
Accounts payable $ 40 $ 40
I
Deferred revenue
liens receivable 23,515 23,515 $15,333
I
TOTAL LIABILITIES 23,555 23,555 15,333
FUND BALANCES
IIReserved for parks $7,602 7,602 8,796
Reserved for programs 227 $1 ,060 1,287 321
II
Unreserved 5,693 5,693 7,085
IITOTAL FUND BALANCES 7 ,829 5,693 1 ,060 14,582 16,202
TOTAL LIABILITIES AND
IIFUND BALANCES $7,829 $29,248 $1 ,060 $38,137 $31,535
II
II
-87-
11
SPECIAL REVENUE FUNDS EXHIBIT B-2 II
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
CITY OF FRIENDSWOOD, TEXAS II
Year ended September 30, 1989
7
PARKS AND FINE ARTS TOTAL
RECREATION MOWING COUNCIL 1989 1988 II
REVENUES
Intergovernmental
Interest $ 672 $ 741 $ 65 $ 1,478 $ 2,074 II
Other 1 ,771 5,497 7 ,268 1,921
TOTAL REVENUES 2,443 6,238 65 8,746 3,995 II
EXPENDITURES (Current)
General government 15,829 '
Community development 7,630 7,630 7,010
Community services 3,410 3,000 6,410 4,000
TOTAL EXPENDITURES 3,410 7,630 3,000 14,040 26,839 II
REVENUES UNDER
EXPENDITURES (967) (1,392) (2,935) (5,294) (22,844) I
OTHER FINANCING SOURCES (USES)
Operating transfers in 3,674 3,674 9,677
Operating transfers out (2,600) '
TOTAL OTHER FINANCING IISOURCES (USES) 3,674 3,674 7,077
REVENUES AND OTHER
SOURCES OVER (UNDER)
II
EXPENDITURES AND
OTHER USES (967) (1,392) 739 (1,620) (15,767)
II
Fund balances at beginning of year 8,796 7,085 321 16,202 31,969
FUND BALANCES ATII
END OF YEAR $7,829 $5,693 $1 ,060 $14,582 $ 16,202
1
11
-88- I
SPECIAL REVENUE FUND (REVENUE SHARING) EXHIBIT B-3
' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
I 1989
VARIANCE-
FAVORABLE 1988
' BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUE S
Interest on investments $ -0- $ -0- $ -0- $ 851
' EXPENDITURES
General government
11 Data processing 15,829
REVENUES UNDER EXPENDITURES -0- -0- -0- (14,978)
' Fund balance at beginning of year 14,978
FUND BALANCE AT END OF YEAR $ -0- $ -0-
11
11
1
-89-
I
SPECIAL REVENUE FUND (PARKS AND RECREATION)
EXHIBIT B-4
COMPARATIVE BALANCE SHEETS '
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988 '
1989 1988
ASSETS
Cash - restricted - including
certificate of deposit $7 ,829 $8,796
TOTAL ASSETS $7,829 $8,796 I
FUND BALANCES ,
Reserved for park expenditures $7,602 $8,796
Reserved for programs 227
TOTAL FUND BALANCES $7,829 $8,796
_____=
1
1
-90-
I
1
SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-5
1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
IICITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
I
1 1989
VARIANCE-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
1 REVENUES
Interest income $ -0- $ 672 $ 672 $ 716
1 Other revenue - donations 1 ,771 1 ,771 -
TOTAL REVENUES -0- 2,443 2,443 716
11 EXPENDITURES
Community services
Parks and recreation 3,780 3,410 370 -0-
1 REVENUES OVER (UNDER)
EXPENDITURES (3,780) (967) 2,813 716
1 OTHER FINANCING USES
Operating transfers out - - - (2,600)
1 REVENUES UNDER EXPENDITURES
AND OTHER USES $(3,780) (967) $2,813 (1,884)
IIFund balances at beginning of year 8,796 10,680
I/ FUND BALANCES AT END OF YEAR $7,829 $ 8,796
1
1
1
II
1
-91-
I
SPECIAL REVENUE FUND (MOWING) EXHIBIT B-6
COMPARATIVE BALANCE SHEETS I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988 1
I
1989 1988
ASSETS
Cash - including restricted cash $ 5,733 $ 6,825
Accounts receivable - liens 23,515 15,333
Prepaid expenses - _ 260
TOTAL ASSETS $29,248 $22,418 I
LIABILITIES AND FUND BALANCES I
LIABILITIES
Accounts payable $ 40
Deferred liens receivable 23,515 $15,333
TOTAL LIABILITIES 23,555 15,333
FUND BALANCES
Unreserved 5,693 7,085
TOTAL LIABILITIES AND
FUND BALANCES $29,248 $22,418
1
I
I
1
I
1
-92-
1
SPECIAL REVENUE FUND (MOWING) EXHIBIT B-7
' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
11
' 1989
VARIANCE-
FAVORABLE 1988
' BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES
Interest $ 450 $ 741 $ 291 $ 477
' Other revenue 3,780 5,497 1 ,717 1 ,921
TOTAL REVENUES 4,230 6,238 2,008 2,398
iEXPENDITURES
Community Development
Inspections 7,630 7,630 7,010
' REVENUES OVER (UNDER)
EXPENDITURES (3,400) (1 ,392) 2,008 (4,612)
' OTHER FINANCING SOURCES
Operating transfers in 6,000
' REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES $(3,400) (1,392) $2,008 1,388
Fund balance at beginning of year 7,085 5,697
1 FUND BALANCE AT END OF YEAR $ 5,693 $ 7,085
I
I
1
I
I
-93-
I
I
SPECIAL REVENUE FUND (FINE ARTS COUNCIL) EXHIBIT B-8
COMPARATIVE BALANCE SHEETS I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988 1
I
1989 1988
ASSETS
Cash - restricted $1 ,060 $ 321 1
FUND BALANCES 1
Reserved for programs $1,060 $ 321
1
1
I
1
1
11
1
1
1
1
-94-
I
II
SPECIAL REVENUE FUND (FINE ARTS COUNCIL) EXHIBIT B-9
IISTATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
IICITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
11
II 1989
VARIANCE-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
I
REVENUES
Interest $ - $ 65 $ 65 $ 30
IEXPENDITURES
Community services 4,000 3,000 1 ,000 4,000
IIREVENUES OVER (UNDER)
EXPENDITURES (4,000) (2,935) 1,065 (3,970)
I
OTHER FINANCING SOURCES
Operating transfers in 3,674 3,674 3,677
II REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES $ (326) 739 $1,065 (293)
IIFund balance at beginning of year ` 321 614
IIFUND BALANCE AT END OF YEAR $1,060 $ 321
II
II
II
I
II
II
-95-
I
1
1
I
11
DEBT SERVICE FUND
11 This fund is used to account for the accumulation
of resources and for the payment of principal and
11 interest on general long-term debt of the City.
I
I
I
I
I
I
11
-97-
11
DEBT SERVICE FUND EXHIBIT C-1
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988
1
1989 1988
1
ASSETS
Cash - including certificate of deposit $280,793 $325,894
Taxes receivable 96,513 85,719
TOTAL ASSETS $377,306 $411,613
LIABILITIES AND FUND BALANCES
LIABILITIES
Deferred revenue $ 96,513 $ 85,719
FUND BALANCES
Unreserved, designated for debt service 280,793 325,894
TOTAL LIABILITIES AND FUND BALANCES $377,306 $411,613
1
1
I
1
V
V
I
I
-99-
11
11
DEBT SERVICE FUND EXHIBIT C-2
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES11
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
11
Year ended September 30, 1989
11
1989
VARIANCEII
-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES
Taxes $1 ,221,897 $1 ,218,610 $(3,287) $1,104,553
Interest 40,000 42,017 2,017 47,036 11
TOTAL REVENUES 1,261,897 1,260,627 (1,270) 1,151,589
ti� k
11
EXPENDITURES (Debt service) c v�kk.
Principal retirement gj
Tax and revenue bonds 710,000 655,000 V4 55,000 660,000
Capital leases 32,029 32,029/ - 30,323 II
742,029 687,029 55,000 690,323 il
Interest and fiscal charges
Tax and revenue bonds 594,662 594,663 (1) 629,175 II
Certificates of obligation 14,763 11,649 3,114 -
Capital leases 4, 141 4, 104 37 12,997
Pearland contract 8,000 7,259 741 7,690 II
Paying agent fees 3,000 1 ,024 1 ,976 4,508
624,566 618,699 5,867 654,370
TOTAL EXPENDITURES 1,366,595 1,305,728 60,867 1,344,693 11
REVENUES (UNDER)
EXPENDITURES $ (104,698) (45,101) $59,597 (193,104) II
Fund balances at beginning of year 325,894 518,998 Il
FUND BALANCES
AT END OF YEAR $ 280,793 $ 325,894 11
II
11
II
-100-
I
I
1
1
I
CAPITAL PROJECTS FUND
' This fund is used to account for financial resources
to be used for the acquisition and construction of
' major capital facilities.
1
I
1
I
I
1
-101-
1
1
CAPITAL PROJECTS FUND EXHIBIT D-1
COMPARATIVE BALANCE SHEETS
' CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988
1989 1988
ASSETS
' Cash - including certificates of deposit $355,050 $ 177,913
Accounts receivable - State grants - 20,000
' Prepaid expenditures - 4,335
' Due from other funds - 150,053
Restricted cash - including certificates of
' deposit 42,578 -
TOTAL ASSETS $397,628 $ 352,301
ILIABILITIES AND FUND BALANCES
' LIABILITIES
Accounts payable $ 70,318 $ 29,241
Due to other funds - 103,434
' TOTAL LIABILITIES 70,318 132,675
FUND BALANCES
Reserved for encumbrances 230,991 219,626
Designated for construction 96,319
TOTAL FUND BALANCES 327,310 219,626
TOTAL LIABILITIES AND FUND BALANCES $397,628 $ 352,301
11
I
I
I
-103-
II
II
CAPITAL PROJECTS FUND EXHIBIT D-2
STATEMENT OF REVENUES, EXPENDITURES AND I
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1989
1
1989
VARIANCE11
-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES II
Interest $ 5,000 $ 31,687 $ 26,687 $ 12,991
Other - 165 165li
-
TOTAL REVENUES 5,000 31,852 26,852 12,991
EXPENDITURES - CAPITAL OUTLAYSII
Public Works
Streets 702, 125 590,600 111,525 1,042,824
Drainage 149,814 - 149,814 186 II
851,939 590,600 261 ,339 1 ,043,010
Public Facilities
City hall 200,000 78,568 121,432 84,925 II
Swimming pool - - - 350
200,000 78,568 121,432 85,275 11
TOTAL EXPENDITURES - II
CAPITAL OUTLAYS 1 ,051 ,939 669,168 382,771 1 ,128,285
REVENUES UNDER 1
EXPENDITURES (1 ,046,939) (637,316) 409,623 (1, 115,294)
OTHER FINANCING SOURCES (USES) II
Operating transfers in 545,000 545,000 - 994,455
Operating transfers out - - - (722,680)
Certificates of obligation proceeds 200,000 200,000 - - 1
REVENUES AND OTHER
SOURCES UNDER EXPENDITURES $ (301,939) 107,684 $409,623 (843,519) 11
Fund balances at _ IIbeginning of year 0j/1/42'/ � Q ��6 1 ,063,145
FUND BALANCES Al
END OF YEAI ) $ 219,626 11
1
1
1
1
1
1
i
ENTERPRISE FUND
The Enterprise Fund is established to account for
operations which are intended to be self-supporting
through user charges. The City of Friendswood
operates the water and sewer system on this basis.
1
i
1
1
i
1
1
1
1
-105-
II
II
ENTERPRISE FUND (WATER AND SEWER)
COMPARATIVE BALANCE SHEETS I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988 II
II
1989 1988
ASSETS
CURRENT ASSETS
Cash - including certificates of deposit $ 508,351 $ 192,085 II
Accounts receivable - less allowance
for uncollectibles 320,580 314,425
Accrued interest 30,826 1,776II
Due from other funds 637 927
Prepaid expenses 1,332 -
TOTAL CURRENT ASSETS 861,726 509,213 11
RESTRICTED ASSETS
Cash - including certificates of deposit 1,346, 189 208,959 II
Blackhawk operating fund equity 109,279 109,279
TOTAL RESTRICTED ASSETS 1,455,468 318,238 1
PROPERTY, PLANT AND EQUIPMENT - at cost
Land 165,099 165,099
II
Buildings, improvements, and equipment 22,901,600 22,343,085
Construction in progress 4,126,462 2,425,591
27,193,161 24,933,775 I
Less allowance for depreciation 5,031,878 4,427,152
TOTAL PROPERTY, PLANT AND EQUIPMENT 22, 161 ,283 20,506,623II
OTHER ASSETS
Unamortized certificate of obligation
II
costs 34,230 -
II
1
1
TOTAL ASSETS $24,512,707 $21,334,074 II
-106-
:I
II
IIEXHIBIT E-1
II
II
1989 1988
ILIABILITIES AND FUND EQUITY
LIABILITIES
IICurrent liabilities (payable from
current assets)
Accounts payable $ 155,563 $ 83,379
I
Compensated absences 38,624 50,938
Accrued expenses 21,723 23,805
Due to other funds - 150,053
I
Contracts payable 32,439 -
248,349 308, 175
Current liabilities (payable from
1 restricted assets)
Accrued interest 30,909 / 5,523
Current portion of long-term debt 130,000 ' 125,000
II Deposits 50,865 / 53,925
211,774 184,448
I
Long-term liabilities Certificates of obligation 4,200,000 -
Revenue bonds 995,000 1,120,000
Note payable - 1 ,371,286
II
5, 195,000 2,491,286
Less current portion 130,000 125,000
5,065,000 2,366,286
I
TOTAL LIABILITIES 5,525, 123 2,858,909
FUND EQUITY
I
Contributed capital
Municipality 14,766,844 14,766,347
Developers/customers 193,034 _ 49,692
14,959,878 14,816,039
IIRetained earnings
Reserved for revenue bond retirement 292,087 333,959
II Reserved for construction 1,412,887 1,696,573
Unreserved 2,322,732 1 ,628,594
11 TOTAL RETAINED EARNINGS 4,027,706 3,659,126
TOTAL FUND EQUITY 18,987,584 18,475,165
11 TOTAL LIABILITIES AND FUND EQUITY $24,512,707 $21,334,074
-107-
II
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-2
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - 11
BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS I
Year ended September 30, 1989
1
1989
VARIANCEII
-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Operating revenues 11
Water charges $1,988,356 $1,989,018 $ 662 $1,992,898
Sewer charges 950,000 992,283 42,283 947,828 11
Water tap fees 6,555 12,025 5,470 63,269
Sewer tap fees - - - 49,482
Fees and penalties 11,000 7, 150 (3,850) 7,600
Other 33,431 34,416 985 10,104 II
2,989,342 3,034,892 45,550 3,071 ,181
Operating expenses before
II
depreciation -
See Exhibit E-3 1,591,315 1,443,986 147,329 1,526,297
OPERATING INCOMEII
BEFORE DEPRECIATION 1,398,027 1,590,906 192,879 1,544,884
Depreciation expense 604,726 604,726 - 594,790 II
OPERATING INCOME 793,301 986,180 192,879 950,094
Non-operating income (expense) II
Interest on investments 138,565 171,835 33,270 30,255
Interest expense (381,681) (61,900) 319,781 (69,720) I
(243,116) 109,935 353,051 (39,465)
INCOME BEFORE OPERATING
TRANSFERS 550,185 1,096,115 545,930 910,629 II
Operating transfers in - - - 722,680
Operating transfers out (727,535) (727,535) - (1,132,885) 1
NET INCOME (LOSS) $ (177,350) 368,580 $545,930 500,424
II
Retained earnings at
beginning of year 3,659,126 3,158,702
RETAINED EARNINGS AT II
END OF YEAR $4,027,706 $3,659, 126
II
-108-
II
II
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-3
ISTATEMENT OF OPERATING EXPENSES - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
IIYear ended September 30, 1989
II
II 1989
VARIANCE-
FAVORABLE 1988
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
I Water
Personal services $ 178,004 $ 172,601 $ 5,403 $ 180,908
II Supplies 55,400 54,085 1,315 57,748
Other services and charges 137,875 149,943 (12,068) 149,429
Maintenance 77,125 50,901 26,224 70,233
I Capital outlay 45,750 - 45,750 -
494, 154 427,530 66,624 458,318
Sewer
IIPersonal services 92,777 96,039 (3,262) 102,090
Supplies 16,050 11,266 4,784 16,364
Other services and charges 588,825 522,527 66,298 566,931
I
Maintenance 81 ,402 88,659 (7,257) 67,521
Capital outlay 14,918 14,918 -
793,972 718,491 75,481 752,906
IIOperation Administration
Personal services 59, 169 56,057 3,112 72,696
Supplies 750 631 119 696
II Other services and charges 1,400 1,163 237 1,142
Maintenance 75 (75) 38
61 ,319 57,926 3,393 74,572
IIFinance Administration
(Utility billing)
1 Personal services Supplies 116,543 113,436 3,107 114,301
6,979 6,203 776 6,640
Other services and charges 109,145 107,528 1,617 118,276
Maintenance 1 ,250 1 ,623 (373) 1,284
1 233,917 228,790 5, 127 240,501
Emergency Management
11 Personal services 2,878 2,878 - -
Maintenance 5,075 8,371 (3,296) -
7,953 11 ,249 (3,296) -
IIOperating expenses before
depreciation $1 ,591 ,315 $1,443,986 $147,329 $1 ,526,297
I
-109-
1
1
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-4
SCHEDULE OF REVENUE BONDS PAYABLE
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
DATE OF OUTSTANDING
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30,
DESCRIPTION RATE ISSUE ISSUE MATURITY 1989
Waterworks and Sanitary
Sewer System Revenue
Bonds, Series 1969 6.50 % 5-1-69 $340,000 3-1-90 $ 30,000
6. 125 5-1-69 360,000 3-1-99 360,000
' 390,000
Waterworks and Sanitary
Sewer System Junior Lien
Revenue Bonds,
Series 1979 5. 50 6-1-79 155,000 3-1-92 105,000
5. 50 6-1-79 115,000 3-1-93 115,000
' 5.50 6-1-79 235,000
6-1-79 150,000 3-1-96 235,000
6.50 3-1-92 150,000
605,000
TOTAL REVENUE BONDS PAYABLE $995,000
t
I
I
I
-111-
I
ENTERPRISE FUND (WATER AND SEWER FUND)
REVENUE BONDS PAYABLE - BY MATURITY DATE I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 1
I
YEAR ENDING TOTAL
SEPT. 30 PRINCIPAL INTEREST TOTAL
1990 $ 130,000 $ 54,800 $ 184,800
1991 130,000 46,906 176,906
1992 135,000 38,916 173,916
1993 135,000 31,022 166,02211
1994 135,000 23,378 158,378
1995 140,000 15,581 155,581
1996 45,000 10,244 55,244
1997 45,000 7,503 52,503
1998 50,000 4,594 54,594
1999 50,000 1 ,531 51 ,531 1
$ 995,000 $234,475 $1 ,229,475
1
1
1
I
1
I
1
1
1
-112-
1
I
EXHIBIT E-5
REVENUE BONDS
WATERWORKS AND WATERWORKS AND
SANITARY SEWER SYSTEM SANITARY SEWER SYSTEM
REVENUE BONDS JUNIOR LIEN REVENUE BONDS
SERIES 1969 SERIES 1979
' PRINCIPAL INTEREST PRINCIPAL INTEREST
$ 30,000 $ 23,025 $100,000 $ 31,775
' 30,000 21, 131
19, 141 100,000 25,775
35,000 100,000 19,775
35,000 16,997 100,000 14,025
35,000 14,853 100,000 8,525
40,000 12,556 100,000 3,025
40,000 10, 106 5,000 138
45,000 7,503
' 50,000 4,594
50,000 1,531
$390,000 $131,437 $605,000 $103,038
1
1
-113-
II
II
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-6
CERTIFICATE OF OBLIGATION - BY MATURITY DATE I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 II
II
Year Ending TOTAL
Sept. 30 Principal Interest Total
1990 S - $ 312, 137 $ 312, 137 II
1991 90,000 308,368 398,368
1992 100,000 300,412 400,412
1993 115,000 291,409 406,409 II
1994 130,000 281,150 411, 150
1995 145,000 269,634 414,634
1996 260,000 252,675 512,675II
1997 285,000 230, 173 515,173
1998 305,000 208,037 513,037
1999 335,000 185,790 520,790II
2000 415,000 159,332 574,332
2001 450,000 128,512 578,512
2002 485,000 94,843 579,843
II
2003 525,000 58,231 583,231
2004 560,000 19,600 579,600
$4,200,000 $3,100,303 $7,300,303 1
1
1
1
1
1
1
II
II
-114-
I
1
I
' TRUST FUND
' This fund has been established by the City to account
for 1776 Park assets held by the City in a trustee
capacity or as an agent for individuals or other funds.
I
I
1
I
I
-115-
1
I
TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-1
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988
I
1 1989 1988
ASSETS
Restricted assets
Cash $22,817 $21,268
Land 57,200 57,200
TOTAL ASSETS $80,O17 $78,468
11 FUND BALANCES
Reserved for endowments $67,200 $67,200
Unreserved/undesignated 12,817 11 ,268
TOTAL FUND BALANCES $80,017 $78,468
1
I
I
1
1
1
I
I
-117-
1
1
TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND 1
CHANGES IN FUND BALANCES
CITY OF FRIENDSWOOD, TEXAS '
Years ended September 30, 1989 and 1988
1
1989 1988 1
REVENUES I
Interest $ 1,549 $ 1,372
Fund balances at beginning of year 78,468 77 ,096
FUND BALANCES AT END OF YEAR $80,017 $78,468
1
1
1
1
1
I
1
1
1
U
1
-118-
1
1
1
1
1
1
1
1
GENERAL FIXED ASSETS ACCOUNT GROUP
' This account group is established to account for
the fixed assets owned by the City exclusive of
' those relating to the Enterprise Fund or Fiduciary
Fund. Expenditure transactions to acquire general
fixed assets occur in the General Fund, Special
' Revenue Funds and Capital Projects Fund.
1
i
1
1
1
1
1
1
-119-
1
1
GENERAL FIXED ASSETS EXHIBIT G-1
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS -
BY SOURCE
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 and 1988
1
1 1989 1988
General fixed assets
' Land $ 1,408,068 $ 991 ,203
Buildings 2,035,927 1,917,490
Improvements 9,676,762 9,023,876
Equipment 2,467,694 2,303,175
Construction in progress 19,042 478,780
TOTAL GENERAL FIXED ASSETS $15,607,493 $14,714,524
Investment in General Fixed Assets from
Capital Projects Funds
' General obligation bonds $ 4,572,653 $ 5,991,019
Time warrants and certificates of obligation 244,500 244,500
Federal and State grants 1,196,016 1, 196,016
' Municipality 8,789,783 6,478,448
Donations 804,541 804,541
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $15,607,493 $14,714,524
1
I
1
U
1
-121-
11
II
GENERAL FIXED ASSETS EXHIBIT G-2
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 I
CONSTRUCTIONII
FUNCTION AND IN
ACTIVITY LAND BUILDINGS IMPROVEMENTS EQUIPMENT PROGRESS TOTAL
General Government II
Inspections $ -0- $ -0- $ -0- $ 16,289 $ 16,289
City hall 453,389 390,916 17 ,031 558,729 1 ,420,065 II
453,389 390,916 17,031 575,018 1 ,436,354
Public Safety
Police - 76,591 13,127 573,633 663,351 II
Fire 18,000 230,677 - 703,888 952,565
Animal Control - 55,643 - 29,458 85,101
Emergency
Management - - - 13,826 13,826 II
18,000 362,911 13, 127 1,320,805 1,714,843
Public WorksII
Street and
drainage 102,002 188,589 8,996,469 156,035 9,443,095
Sanitation 3,500 - 254,997 50,529 309,026 II
105,502 188,589 9,251,466 206,564 9,752,121
Community Services
Library 28,838 343,357 12,383 160,425 545,003 II
Parks and
recreation 802,339 84,504 380,632 193,282 1,460,757
Swimming pool - 665,650 2,123 11 ,600 679,373 II
831, 177 1,093,511 395,138 365,307 2,685,133
Construction in il
progress - - - - $19,042 19,042
$1 ,408,068 $2,035,927 $9,676,762 $2,467,694 $19,042 $15,607,493 II
II
II
1
-122- l
1
II
GENERAL FIXED ASSETS EXHIBIT G-3
1 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
IICITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989
II
RETIREMENTS
1 BALANCE AT AND BALANCE AT
SEPT. 30, 1988 ADDITIONS RECLASSIFICATIONS SEPT. 30, 1989
General Government -
11 Inspections $ 16,289 $ $ 16,289
City Hall 893,201 526,864 1 ,420,065
909,490 526,864 1,436,354
11 Public Safety
Police 586,883 76,468 663,351
' Fire 951,470 1,095 952,565
Animal control 19,259 65,842 85,101
Emergency management 11,426 2,400 13,826
1,569,038 145,805 1,714,843
II
Public Works
Street and
II drainage 8,785,386 657,709 9,443,095
Sanitation 309,026 309,026
9,094,412 657,709 9,752,121
ICommunity services
Library 538,370 6,633 545,003
Parks and recreation 1,443,499 17,258 1,460,757
II
Swimming pool 680,935 2 ,091 $ 3,653 679,373
2,662 ,804 25,982 3,653 2,685, 133
I
Construction in
progress 478,780 728,079 1,187,817 19,042
II
TOTAL $14,714,524 $2,084,439 $1 ,191 ,470 $15,607,493
11
II
II
-123-
i
1
1
1
1
1
1
1
GENERAL LONG-TERM DEBT ACCOUNT GROUP
1 The purpose of this account group is to account for
general obligation indebtedness to be retired primarily
from future assessment of property taxes.
I
1
1
1
1
1
1
1
1
-125-
11
GENERAL LONG-TERM DEBT
STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT I
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1989 1
BALANCE AT 11
OCT. 1,
1988 ADDITIONS
Amount available in Debt Service Fund $ 325,894 $ -
Amount to be provided for retirement 1
of long-term debt - Note 14 9,135,405 200,000
TOTAL AVAILABLE AND I
TO BE PROVIDED $9,461,299 $200,000
Classification of debt
Lease obligation $ 55,521
Certificates of obligation - $200,000
General obligation bonds 9,405,778 - I
TOTAL GENERAL LONG-TERM DEBT $9,461,299 $200,000
1
1
1
1
1
1
1
-126-
I
EXHIBIT H-1
DEBT SERVICE BALANCE AT
' OBLIGATIONS FUND SEPT. 30,
RETIRED OPERATIONS 1989
' $ - $(45, 101) $ 280,793
' 681,084 45,101 8,699,422
$681 ,084 $ -0- $8,980,215
*e 1°°
' $ 26,084 uti
$ 29,437
200,000
655,000 8,750,778
' $681,084 $8,980,215
I
I
1
1
1
-127-
1
1
GENERAL LONG-TERM DEBT EXHIBIT H-2
IISCHEDULE OF GENERAL LONG-TERM DEBT
CITY OF FRIENDSWOOD, TEXAS
I
September 30, 1989
IIDATE OF OUTSTANDING
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30,
I
DESCRIPTION RATE ISSUE ISSUE MATURITY 1989
Certificates of
II Obligation 8.375 12-01-88 $ 35,000 03-01-90 $ 35,000
8.375 12-01-88 35,000 03-01-91 35,000
8.375 12-01-88 40,000 03-01-92 40,000
8.375 12-01-88 45,000 03-01-93 45,000
II
8.375 12-01-88 45,000 03-01-94 45,000
TOTAL CERTIFICATES OF OBLIGATION PAYABLE 200,000
IRefunding bonds
Series 1986 6.00 08-15-86 670,000 03-01-90 670,000
6.25 08-15-86 715,000 03-01-91 715,000
II6.50 08-15-86 790,000 03-01-92 790,000
6.75 08-15-86 835,000 03-01-93 835,000
7.00 08-15-86 890,000 03-01-94 890,000
II 7.10 08-15-86 855,000 03-01-95 855,000
7.20 08-15-86 935,000 03-01-96 935,000
7.30 08-15-86 990,000 03-01-97 990,000
II 7.40 08-15-86 795,000 03-01-98 795,000
7.50 08-15-86 835,000 03-01-99 835,000
7.75 08-18-86 310,834 03-01-00 310,834
7.80 08-18-86 55,898 03-01-01 55,898
II
7.85 08-18-86 27,209 03-01-02 27,209
7.90 08-18-86 24,993 03-01-03 24,993
7.90 08-18-86 21,844 03-01-04 21 ,844
ITOTAL BONDS PAYABLE 8,750,778
I
Capital Leases:
Radios 10.75 09-15-85 24,000 12-15-90 7,252
IBM computer - police 9.50 01-01-87 40,569 01-01-91 22,185
IITOTAL CAPITAL LEASES 29,437
TOTAL GENERAL LONG-TERM DEBT $8,980,215
1
II
II
-129-
11
GENERAL LONG-TERM DEBT
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 1 of 2 1
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 II
II
II
YEAR ENDING TOTAL _
SEPT. 30 PRINCIPAL INTEREST TOTAL I
1990 $ 721,245 $ 574,445 $ 1,295,690
1991 763, 192 527,453 1,290,645
1992 830,000 475,299 1,305,299II
1993 880,000 417,884 1,297,884
1994 935,000 354,784 1,289,784
1995 855,000 291 ,398 1,146,398II
1996 935,000 227,385 1,162,385
1997 990,000 157,590 1,147,590
1998 795,000 92,040 887,040
1999 835,000 31,313 866,313 II
2000 310,834 559,166 870,000
2001 55,898 114,102 170,000
2002 27,209 62,791 90,000II
2003 24,993 65,007 90,000
2004 21,844 63,156 85,000
TOTAL GENERAL II
LONG-TERM DEBT $ 8,980,215 $4,013,813 $12,994,028
1
1
1
II
II
11
1
-130-
II
EXHIBIT R-3
II
II
II
REFUNDING BONDS - SERIES 1986
IICURRENT INTEREST BONDS COMPOUND INTEREST BONDS
INTEREST INTEREST
IIRATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST TOTAL
6.00% $ 670,000 $ 556,550 $ 1,226,550
II 6.25 715,000 514, 106 1,229,106
6.50 790,000 466,087 1,256,087
6.75 835,000 412,231 1,247,231
II 7.00 890,000 352,900 1 ,242,900
7. 10 855,000 291 ,398 1,146,398
7.20 935,000 227,385 1, 162,385
7.30 990,000 157,590 1, 147,590
II
7.40 795,000 92,040 887,040
7.50 835,000 31,313 866,313
7. 75% $310,834 $559, 166 870,000
' 7.80 55,898 114,102 170,000
7.85 27,209 62,791 90,000
7.90 24,993 65,007 90,000
II
7.90 21 ,844 63,156 85,000
$8,310,000 $3, 101,600 $440,778 $864,222 $12,716,600
II
II
II
II
1
II
!!
-131-
1
I
GENERAL LONG-TERM DEBT
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 2 of 2 1
1
1
CERTIFICATES OF OBLIGATION CAPITAL LEASES
YEAR RADIOS 1
ENDING INTEREST INTEREST
SEPT. 30 RATE PRINCIPAL INTEREST TOTAL RATE PRINCIPAL INTEREST
1990 8.375% $ 35,000 $15,284 $ 50,284 10.75% $ 5,723 $ 503 I
1991 8.375 35,000 12,353 47,353 10.75 1,529 27
1992 8.375 40,000 9,212 49,212
1993 8.375 45,000 5,653 50,653
1994 8.375 45,000 1,884 46,884
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$200,000 $44,386 $244,386 $ 7,252 $ 530 II
1
1
1
I
I
-132-
I
I
EXHIBIT H-3
I
I
ICAPITAL LEASES TOTAL CAPITAL LEASES
I NET PRESENT
IBM COMPUTER - POLICE VALUE OF AMOUNT
INTEREST MINIMUM REPRESENTING
IRATE PRINCIPAL INTEREST LEASE PAYMENTS INTEREST TOTAL
9.50% $10,522 $2, 108 $16,245 $ 2,611 $18,856
9.50 11,663 967 13, 192 994 14,186
I
I
I
I $22,185 $3,075 $29,437 $ 3,605 $33,042
I
1
I
I
I
I
-133-
II
II
GENERAL LONG-TERM DEBT EXHIBIT H-4
COMPOUND BONDS - ACCRUED INTEREST SCHEDULE 1
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989 1
1
1
YEAR ENDING $310,834 $55,898 $27,209 $24,993 $21,844
SEPT. 30 @ 7 .75% @ 7.80% @ 7.85% @ 7.90% @ 7.90% 1
1987 $ 31,384 $ 5,775 $ 2,876 $ 2,703 $ 2,398
1988 26,523 4,811 2,362 2, 188 1,915
1989 28,576 5, 186 2,547 2,361 2,066II
1990 30,793 5,590 2,747 2,547 2,230
1991 33, 178 6,026 2,963 2,748 2,406
1992 35,750 6,496 3, 195 2,966 2,596II
1993 38,520 7,003 3,446 3,200 2,801
1994 41,506 7,549 3,717 3,453 3,022
1995 44,723 8, 138 4,008 3,725 3,261
1996 48, 188 8,773 4,323 4,020 3,518 II
1997 51 ,923 9,457 4,662 4,337 3,797
1998 55,948 10,195 5,028 4,680 4,096
1999 60,282 10,990 5,423 5,050 4,420II
2000 31,872 11,847 5,849 5,449 4,769
2001 6,266 6,297 5,879 5,146
2002 3,348 6,344 5,553 II
2003 3,357 5,991
2004 3,171
$559, 166 $114, 102 $62,791 $65,007 $63,156 1
1
1
1
1
II
-134-
1
II
I
COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS EXHIBIT I-1
IICITY OF FRIENDSWOOD, TEXAS
II
September 30, 1989
IIACCOUNT INTEREST MATURITY
DESCRIPTION NUMBERS RATE DATE AMOUNT
IICertificates of Deposit
Texas Commerce Bank,
IIFriendswood, Texas 4771 9.09% 11-24-89 $ 700,000
4961 7.95 10-09-89 200,000
' 4962 7.73 10-02-89 250,000
4963 7.97 10-16-89 300,000
11 4964 8.20 03-01-90 600,000
II4971 7.99 10-16-89 250,000
4976 7.75 10-23-89 250,000
I4977 7.71 10-30-89 250,000
4979 7.72 10-30-89 150,000
II4980 7.83 10-30-89 100,000
II
4981 7.88 11-06-89 250,000
4982 7.70 10-30-89 250,000
II
4983 7.89 11-13-89 200,000
TOTAL ALL FUNDS $3,750,000
II
II
I
II
-137-
I
II
SCHEDULE OF DELINQUENT TAXES RECEIVABLE EXHIBIT I-2
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
II
II
DELINQUENT TAXES RECEIVABLE
GENERAL DEBT SERVICEII
YEAR FUND FUND TOTAL
1988 $ 79, 119 $30, 166 $109,285 II
1987 44,552 14,993 59,545
1986 30,490 13,564 44,054
1985 27,799 10,189 37,988 II1984 20,323 8,566 28,889
1983 26,508 11,523 38,031
1982 6,911 3,594 10,505
1981 3,210 1,483 4,693II
1980 2, 113 970 3,083
1979 1,843 520 2,363
1978 1, 166 289 1,455
1977 485 204 689 II
1976 584 315 899
1975 337 128 465
1974 33 9 42II
TOTAL DELINQUENT
TAXES RECEIVABLE $245,473 $96,513 $341,986 I
1
1
1
1
1
1
1
-138-
1r
1!
r
r
1r
F
I! STATISTICAL SECTION
17 (The City has not had any special assessments
in the last ten fiscal years.)
(The City has no legal debt margin.)
I!
1
I
I
I
I
I
-139-
II
II
GENERAL REVENUE - BY SOURCE
CITY OF FRIENDSWOOD, TEXAS I
Last Ten Fiscal Years
1
CHARGES FOR LICENSES I
FISCAL SERVICE FINES AND AND INTER-
YEAR TAXES (SANITATION) FORFEITURES PERMITS GOVERNMENTAL
1979-80 $1 ,780,798 $268,481 $103,447 $43,399 $220,470 11
1980-81 2,416, 105 275,870 129,824 49,580 143,760
11
1981-82 2,188,070 289,034 111,975 75,292 311,695
1982-83 2,602,930 344, 178 102,609 180,972 97,271II
1983-84 3,285,018 431 ,941 128,694 167,484 335,077
1984-85 (1) 4,018,210 532,701 138,302 138,074 535,955 II
1985-86 (2) 4,608,491 470,177 120,195 148,740 124,114 I
1986-87 5,272,714 525,592 184,359 124,913 94,015
1987-88 5,328,869 545,130 142,516 125,083 48,985II
1988-89 5,571 ,191 542,911 190,106 143,105 53,464
II
Includes the General, Special Revenue and Debt Service Funds.
(1) Includes annexation of the Wedgwood subdivison (Clearwoods Improvement II
District during the previous year.
(2) Includes annexation of the Forest Bend subdivision (WCID No. 108) duringI
the year.
Source - Accounting records of the City. il
I
1
II
1-140-
EXHIBIT I
I
1
t
INTEREST
INCOME OTHER TOTAL
$ 36,272 $ 42, 168 $2,495,035
' 75,172 31,250 3, 121,561
125,888 84, 124 3, 186,078
' 91,593 123,088 3,542,641
112,516 42,473 4,503,203
127,909 41,551 5,532,702
88,521 28,850 5,589,088
91 ,011 45,342 6,337,946
' 196,647 106,057 6,493,287
111
185,037 118,539 6,804,353
I
1
1
I
I
-141-
II
GENERAL GOVERNMENTAL EXPENDITURES - BY FUNCTION II
CITY OF FRIENDSW00D, TEXAS I
Last Ten Fiscal Years
II
CULTURE
FISCAL GENERAL PUBLIC PUBLIC AND
YEAR GOVERNMENT SAFETY WORKS SANITATION RECREATIONII
1979-80 $ 462,461 $ 798,798 $329,713 $261,471 $208,473
1980-81 626,120 754,259 452,316 292,896 208,292 I
1981-82 680,792 856,648 474,575 288,813 299,028
11
1982-83 714,608 1 ,188,214 596,633 336,635 314,853
1983-84 (1) 812,289 1,311,923 958,188 436,299 390,361 1
1984-85 954,086 1,388,760 523,653 512,504 373,412
1985-86 (2) 1,221,176 1,737,503 723,779 484,851 453,408 II
1986-87 1,473,875 1,870,538 718,117 519,527 692,525 II
1987-88 (3) 1,143,024 1,934,317 1,128,195 - -
1988-89 (3) 1,167,194 2,038,066 1 ,108,423 - - 1
Includes the General, Special Revenue and Debt Service Funds. II
(1) Includes annexation of the Wedgewood subdivision (Clearwoods
Improvement District) during the year. II
(2) Includes annexation of the Forest Bend subdivion (WCID No. 108)
during the year.
(3) Function classifications have been revised to reflect the City's II
internal records.
II
Source - Accounting records of the City.
II
II
II
-142-
I
1
EXHIBIT II
I
1
COMMUNITY
' COMMUNITY COMMUNITY COUNCILING DEBT
DEVELOPMENT SERVICES CENTER SERVICE TOTAL
1 $123,200 $ 274,096 $2,458,212
58, 179 302,732 2,694,794
' 42,243 414,440 3,056,539
46,582 497,405 3,694,930
48,014 983,609 4,940,683
' 67,919 997,114 4,817,448
78,966 1,064,286 5,763,969
35,000 1,314,714 6,624,296
$ 249,684 $ 814,380 - 1,344,693 6,614,293
i257,750 768,533 - 1,305,728 6,645,694
1
I
I
I
I
I
-143-
II
II
TAX REVENUES - BY SOURCE EXHIBIT III
1 CITY OF FRIENDSWOOD, TEXAS
IILast Ten Fiscal Years
II BUSINESS
GENERAL GROSS INDUSTRIAL
11 FISCAL TOTAL PROPERTY GENERAL RECEIPTS DISTRICT BEVERAGE
YEAR TAXES TAXES SALES TAX TAXES TAXES* TAX
I/ 1979-80 $1,780,798 $1 ,206,271 $275,675 $107,731 $186,678 $4,443
1980-81 2,416,105 1,446,071 415,228 178,789 371 ,622 4,395
II1981-82 2,188,070 1,599,521 99,497 185,708 302,064 1,280
1982-83 2,602,930 2, 113,715 336,234 151,746 - 1,235
II1983-84 3,285,018 2,727,942 351,431 204,275 - 1,370
II1984-85 (1) 4,018,210 3,319, 149 424,498 273, 184 - 1,379
1985-86 4,608,491 3,826, 171 483,629 297,585 - 1,106
il
1986-87 (2) 5,272,714 4,421 ,343 517,943 332,432 - 996
1987-88 5,328,869 4,442,540 509,551 375,755 - 1,023
II1988-89 5,571, 191 4,562,856 606,549 400,986 - 800
11 *Contract with Industrial District from 1976 to 1980 and a new contract from 1980 to
1982 with a guarantee of at least $300,000 a year.
I
(1) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the previous year.
11 (2) Includes annexation of the Forest Bend subdivision (WCID No. 108) during
the previous year.
11 Source - Accounting records of the City.
II
II
I
-145-
I
PROPERTY TAX LEVIES AND COLLECTIONS II
CITY OF FRIENDSWOOD, TEXAS 1
Last Ten Fiscal Years
II
PERCENT II
FISCAL TAX TAX TOTAL CURRENT TAX OF LEVY
YEAR YEAR RATE TAX LEVY COLLECTIONS COLLECTED I
1979-80 1979 $1 .15 $1,231,876 $1 ,175,513 95.42
1980-81 (1) 1980 0.775 1,459,086 1,394,770 95.59 II
1981-82 1981 0.775 1,586,474 1,531,878 96.56
1982-83 1982 0.735 2,068,817 1,989,751 96.18 II
1983-84 1983 0.720 2,491,879 2,400,000 96.32
11
1984-85 (2) 1984 0.720 3,348,234 3,224,304 96.30
1985-86 1985 0.7095 3,870,699 3,680,672 95.10 ,
1986-87 (3) 1986 0.695 4,369,541 4,245,550 97. 16
1987-88 1987 0.695 4,351,363 4,248,363 97.63 11
1988-89 1988 0.695 4,553,066 4,433,139 97.37 I
(1) Assessment ratio increased in 1980 to 100% of market value per $100
valuation.
II
(2) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the previous year. I
(3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during
the previous year. I
Source - Tax assessor/collector's records.
II
II
1
II-146-
II
I!
EXHIBIT IV
I
11
TOTAL OUTSTANDING
I COLLECTION AS A DELINQUENT
TAXES AS A
DELINQUENT TOTAL PERCENT OF OUTSTANDING PERCENT OF
I TAX TAX TOTAL DELINQUENT TOTAL
COLLECTIONS COLLECTIONS TAX LEVY TAXES LEVY
$30,758 $1,206,271 97.92 $102,969 8.36
II
51,301 1,446,071 99. 11 135,756 9.30
II67,643 1,599,521 100.82 142,473 8.98
123,964 2,113,715 102. 17 123,882 5.99
1 50,915 2,450,915 98.36 169,380 6.80
55,528 3,279,832 97.96 232,879 6.96
11 112,025 3,792,697 97.98 328,281 8.48
133,831 4,379,381 100.23 318,441 7.29
119,686 4,368,049 100.38 301,754 6.93
II79,695 4,512,834 99.12 341,986 7.51
11
II
I
I!
f
I!
-147-
I
I
ASSESSED AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
CITY OF FRIENDSWOOD,TEXAS
Last Ten Fiscal Years11
I
REAL PROPERTY PERSONAL PROPERTY
ESTIMATED ESTIMATED
FISCAL TAX ASSESSED ACTUAL ASSESSED ACTUAL
YEAR YEAR VALUE VALUE VALUE VALUE
1979-80 1979 $105,509,070 $175,848,450 $ 2,242,850 $ 3,738,083
1980-81 1980 (1) 184,417,212 184,417,212 5,084,410 5,084,410
1981-82 1981 199,752,590 199,752,590 6,432,770 6,432,770
1982-83 1982 291, 156,780 291,156,780 7,295,310 7,295,31011
1983-84 1983 436,557,744 436,557,744 6,389,970 6,389,970
1984-85 1984 588,137,580 588,137,580 10,731,940 10,731,940
1985-86 1985 636,203,660 636,203,660 9,688,000 9,688,000
11
1986-87 1986 726,482,470 726,482,470 34,305,290 34,305,290
1987-88 1987 732,642,639 732,642,639 30,811,878 30,811,878
1988-89 1988 690,062,040 690,062,040 39,852, 170 39,852, 170
11
(1) Assessment ratio increased in 1980 to 100% of market value per $100
valuation. 11411
(2) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the previous year.
11
(3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during
the previous year.
Source - Tax assessor/collector' s records.
11
11
-148-
I
I
EXHIBIT V
I
I
I
I TOTAL TOTAL
ESTIMATED ASSESSED TAXABLE RATIO OF ASSESSED
ASSESSED ACTUAL VALUE OF ASSESSED VALUE TO ESTIMATED
IVALUE VALUE EXEMPTIONS VALUE ACTUAL VALUE
$107,751,920 $179,586,533 $ 633,440 $107, 118,480 60
II189,501 ,622 189,501,622 1,987,238 187,514,384 100
206, 185,360 206,185,360 4,380,567 201,804,793 100
I298,452,090 298,452,090 85,672,799 212,779,291 100
442,947,714 442,947,714 96,853,365 346,094,349 100
598,869,520 598,869,520 133,837,020 465,032,500 100
645,891,660 645,891,660 111,788,728 534,102,932 100
760,787,760 760,787,760 132,076,820 628,710,940 100
763,454,517 763,454,517 137,359,095 626,095,422 100
729,914,210 729,914,210 95, 185,210 634,729,000 100
I
I
I
I
I
I
-149-
!I
PROPERTY TAX RATES AND TAX LEVIES - DIRECT AND II
OVERLAPPING GOVERNMENTS
CITY OF FRIENDSWOOD, TEXAS !I
Last ten fiscal years
II
II
FRIENDSWOOD CLEAR CREEK
INDEPENDENT INDEPENDENT
II
FISCAL TAX CITY OF SCHOOL SCHOOL
YEAR YEAR FRIENDSWOOD DISTRICT DISTRICT
TAX RATE II
1979-80 1979 $1.15 $ 1.81 $ .82
1980-81 (1) 1980 .775 1.77 .8211
1981-82 1981 .775 1.86 .88
1982-83 1982 .735 1.83 .83
1983-84 1983 .720 1.79 .82
1984-85 1984 .720 1.46 .82 11
1985-86 1985 .7095 1.46 .92
1986-87 1986 .695 1.41 .92
1987-88 1987 .695 1.41 .95II
1988-89 1988 .695 I I.55 .•9-5 I. 075
TAX LEVIES1!
1979-80 1979 $1 ,231 ,876 $2,718,490 $16,431,313
1980-81 1980 1,459,086 3, 123,225 19,977,989
1981-82 1981 1,586,474 3,567,480 22,647,479 11
1982-83 1982 2,068,817 4,854,834 25,331,425
1983-84 1983 2,491 ,879 5,233,942 27,542,883
1984-85 (2) 1984 3,348,234 5,123,436 31,308,67011
1985-86 1985 3,870,699 5,802,869 41 ,309,808
1986-87 (3) 1986 4,369,541 6,205,039 44,892,680
1987-88 1987 4,351,363 6,511,149 43,580,00011
1988-89 1988 4,553,066 6,841,786 46,654,423
:I
(1) Assessment ratio increased in 1980 to 100% of market value per $100
valuation.
!I
(2) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the previous year.
(3) Includes annexation of the Forest Bend subdivision (WCID 108) during !I
the previous year.
11
Source - Accounting records of the City and tax assessor/collector's records.
-150 II
-
1
IIEXHIBIT VI
I/
I
II
I CLEAR CREEK
GALVESTON HARRIS DRAINAGE
COUNTY COUNTY DISTRICT
1 TAX RATE
$.930 $1 . 100 $.080
II .915.300 1. 130 .100
.376 .100
.300 .360 .150
II .395 .377 . 150
.395 .277 .150
.385 .27878 .150
.385 .26786 . 150 1
.385 .29316 .150
. 5 •`}9 y .49293 Se .150
IITAX LEVIES
$11,871,339 $152,422,186 $101,276
II 12,957,655 175,846,769 163,441
18,673,000 218,001 ,248 256,004
18, 137,783 238,964,304 486,722
26,640,815 270,971 ,084 506,281 II
28,607,391 312,288,939 609,854
29,255,237 321,822,000 742,703
25,228,511 311 ,338,358 740,222
II 31,021 ,686 317,419,015 763,695
34, 138,033 316,340,000 771,330
II
II
II
II
V
—151—
II
II
RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED
VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal years
II
I
GROSS LESS DEBT
FISCAL ESTIMATED ASSESSED BONDED SERVICE11
YEAR POPULATION VALUE DEBT _ FUND BALANCE
1979-80 10,719 $107,751 ,920 $ 5,354,000 $117,551 I
1980-81 11, 169 189,501,622 5,217,000 143, 168
1981-82 11,770 206,185,360 6,560,000 145,075 1
1982-83 12,530 298,452,090 6,470,500 153,535
1983-84 (1) 17 ,365 442,947,714 8,423,163 197,749 II
1984-85 18,500 598,869,520 8,046,000 200,813 1
1985-86 (2) 22,500 645,891 ,660 10,650,778 459,306
1986-87 23,000 760,787,760 10,065,778 518,998 1
1987-88 22,500 763,454,517 9,405,778 325,894
1988-89 23,500 729,914,210 8,750,778 280,793 11
(1) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement 1
District) during the year.
(2) Includes annexation of the Forest Bend subdivision (WCID No. 108) during 1
the year.
Source - Accounting records of the City. II
II
II
II
II
-152-
1
I
EXHIBIT VII
r
I
RATIO OF NET
I NET BONDED BONDED DEBT
TO ASSESSED NET BONDED DEBT
DEBT VALUE PER CAPITA
$ 5,236,449 4.9% $488
5,073,832 2.7 454
6,414,925 3. 1 545
6,316,965 2. 1 504
8,225,414 1 .9 473
' 7,845,187 1 .3 424
10, 191 ,472 1.6 453
9,546,780 1.3 415
9,079,884 1.2 404
11
8,469,985 1.2 360
I
I
I
I
1
11
-153-
II
II
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT EXHIBIT VIII
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
II
11
PERCENTAGE CITY OF
NET DEBT APPLICABLE FRIENDSWOOD'S
NAME OF GOVERNMENTAL UNIT OUTSTANDING TO CITY OF FRIENDSWOOD SHARE OF DEBTII
Friendswood Independent
School District $ 3,656,966 100.00% $ 3,656,966 I
Clear Creek Independent
School District 49,830,000 3.94 1,963,302
II
Galveston County 83,230,442 5.68 4,727,489
Harris County 371, 176,542 .15 %i4L, 556,765 1
Clear Creek Drainage
District 30,000 99.95 29,985
II
Harris County Toll Road
Authority 434,934,594 .15 652,402
II
Harris County Flood
Control District 238,253,218 . 15 , 0',, 0 357,380
Port of Houston II
Authority 54,623,855 . 15 , 013 81,936
TOTAL NET OVERLAPPING DEBT 12,026,22 II
5
,yn yyn
V.iM at,),-- ��) l'`
Net General Obligation Bonded Debt - City of Friendswood Y � 8,469,985II
TOTAL NET DIRECT ANDII
OVERLAPPING DEBT $20,496,210
II
Source - Finance department records of the various governments.
1
11
II
-154-
II
11
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES EXHIBIT IX
II FOR GENERAL LONG-TERM DEBT TO TOTAL
GENERAL EXPENDITURES
CITY OF FRIENDSWOOD, TEXAS
II
Last Ten Fiscal Years
1
IIINTEREST
AND (2) RATIO OF DEBT SERVICE
FISCAL TOTAL TOTAL TO TOTAL GENERAL
I FISCAL AGENT DEBT GENERAL GOVERNMENTAL
YEAR PRINCIPAL FEES SERVICE EXPENDITURES EXPENDITURES
II1979-80 $ 78,000 $196,096 $ 274,096 $2,458,212 11.15
1980-81 99,336 203,396 302,732 2,694,794 11.23
11 1981-82 110,631 303,809 414,440 3,056,539 13.56
1982-83 123,759 373,646 497,405 3,694,930 13.46
11 1983-84 356,000 627,609 983,609 4,940,683 19.91
1984-85 377,608 619,506 997,114 4,817,448 20.70
1985-86 (1) 484,427 579,859 1,064,286 5,763,969 18.46
II1986-87 620,386 694,328 1,314,714 6,624,296 19.85
1987-88 690,323 654,370 1,344,693 6,614,293 20.34
1 1988-89 687,029 618,699 1,305,728 6,645,694 19.65
II
(1) Excludes debt defeased through refunding of $10,032,000.
11 (2) Includes the General, Special Revenue, and Debt Service funds.
IISource - Accounting records of the City.
II
I
r
-155-
II
II
TAX RATE DISTRIBUTION EXHIBIT X
IICITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years
II
II
II
I GENERAL DEBT SERVICE TOTAL TAX
TAX YEAR FUND FUND RATE
11 1979 $ .897 $ .253 $ 1.15
1980 .5311 .2434 .775 (1)
II1981 .53 .245 .775
1982 .4835 .2515 .735
11
1983 .502 .218 .720
II1984 .507 .213 .720
1985 .5192 .1903 .7095
11 1986 .481 .214 .695
1987 .52 .175 .695
II1988 .50746 .18754 .695
II (1) Assessment ratio increased in 1980 to 100% market value per $100
valuation.
11
Source - City' s tax ordinances.
11
II
II
II
-157-
II
REVENUE BOND COVERAGE
CITY OF FRIENDSWOOD, TEXAS I
Last Ten Fiscal Years
II
11
OPERATING NET OPERATING
NUMBER NUMBER EXPENSES REVENUEII
FISCAL OF WATER OF SEWER OPERATING BEFORE AVAILABLE FOR
YEAR CUSTOMERS CUSTOMERS REVENUE DEPRECIATION DEBT SERVICE
1979-80 3,086 3,020 $ 877,947 $ 564,500 $ 313,447 II
1980-81 3,215 3,048 1,109,296 753,350 355,946
II
1981-82 3,388 3,212 1,134,886 756,498 378,388
1982-83 3,659 3,430 1,450,044 861,935 588,10911
1983-84 4,998 4,686 2,141,284 1,072,741 1,068,543
1984-85 5,338 5,061 2, 104,796 1,193,709 911,087 II
1985-86 6,497 6,238 4,205,395 1,311,526 2,893,869
II
1986-87 6,514 6,324 3,066,581 1,487,668 1,578,913
1987-88 6,626 6,432 3,071 ,181 1,526,297 1,544,884II
1988-89 6,731 6,539 3,034,892 1,443,986 1,590,906
II
Source - Accounting records of the City.
II
II
II
11
II
II
-158-
I
I
EXHIBIT XI
1
I
I
REVENUE BOND
DEBT SERVICE REQUIREMENTS
PRINCIPAL INTEREST TOTAL COVERAGE
$215,000 $88,908 $303,908 1.03
65,000 84,552 149,552 2. 38
70,000 99,005 169,005 2.24
70,000 91,113 161,113 3.65
11 70,000 96,515 166,515 6.42
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
11
I
I
I
I
-159-
II
II
PRINCIPAL TAXPAYERS EXHIBIT XII
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
II
PERCENT OF II
ASSESSED VALUE
ASSESSED TO TOTAL
NAME OF TAXPAYER NATURE OF BUSINESS VALUE ASSESSED VALUE11
1. Exxon Oil & Gas $40,759, 100 5.16%
2. Southwestern Bell II
Telephone Utility Co. 10,659,750 1.35
3. Texas - New MexicoII
Power Utility Co. 6,701,610 .85
4. Florida Federal SavingsII
and Loan Apartments 5,092,160 .65
5. Crosstimbers Production
Company Oil & Gas 4,761 ,590 .61 II
6. John L. Jones, Trustee Land 2,584,980 .32
II
7. Salem Square Apartments Apartments 2,564,780 .32
8. Houston Lighting & Power Utility Co. 2,558,040 .32II
9. Ralph Lowe Land 2,533,570 .32
10. Baywood Ltd. Apartments 2,530,610 .32
TOTAL $80,746,190 10.22%
II
Source - Tax assessor/collector' s records.
II
II
II
II
-160-
II
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS EXHIBIT XIII
IICITY OF FRIENDSWOOD
IILast Ten Fiscal Years
(B) (C)
II FISCAL (A) BANK PROPERTY
YEAR CONSTRUCTION DEPOSITS VALUE
1 1980 $12,893,393 $ 27, 144, 117 $107,751,920
1981 13,197,941 32,614,000 189,501,622
II1982 15,102,000 48,616,000 206,185,360
1983 31,211,841 62,256,000 298,452,090
11
1984 31,379, 139 67,111,934 486,902,520
II1985 28,891,533 72,641 ,562 598,869,520
1986 26,920,850 78,645,866 645,891,660
II1987 17,337,714 90,775,074 760,787,760
1988 19,712,294 133,829,940 763,454,517
II
1989 14,998,749 148,356,238 729,914,210
II
(A) Source - City inspection records.
1 (B) Source - Texas Commerce Bank and Community National Bank, Friendswood.
(C) Source - Tax assessor/collector' s records.
11
II
II
1
II
I!
-161-
II
11
1 DEMOGRAPHIC STATISTICS EXHIBIT XIV
CITY OF FRIENDSWOOD, TEXAS
1 Last ten fiscal years
IIFISCAL
YEAR ENDED POPULATION- PER CAPITA MEDIAN UNEMPLOYMENT
IISEPT. 30 A _ INCOME-B AGE-B RATE-C _
1980 10,719 * 27.9 3.6%
1981 11 ,169 * 27.7 3.8
1982 11 ,770 * 27.6 7.9
11 1983 12,530 $23,915 27.5 7.9
1984 17,365 21,573 27.6 5.9
1985 18,500 24,570 27.9 8.6
II1986 22,500 27,735 27.9 12.6
1987 23,000 29,273 29.7 10.3
1 1988 22,500 29,743 29.7 6.8
II 1989 23,500 * * 5.4
II Note A - Estimated
Note B - Source: Clear Lake Area Chamber of Commerce
INote C - Source: Texas Employment Commission, Houston Standard
Metropolitan Statistical Area
II *Information not provided is not available.
11
1
II
I!
-163-
,
II
II
SCHEDULE OF INSURANCE IN FORCE - 1 of 2
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
I
LOCATION
OR
INSURER POLICY NO. ACTIVITY COVERAGE11
Employers Casualty EEP 047835 Electronic Fire, EC, V&MM
Co. Equipment
II
Employers Casualty CEF 874899 Contractors Fire, EC, V&MM
Co. Equipment
11
National Casualty PO623033 Public Elected and
Co. Officials Appointed
II
American States MP4407 Volunteer AD&D
Insurance Firemen
National Casualty PL601759 City Comprehensive II
Law Enforcement
Employers of Texas TCP-D-E419008 City Multi-Peril II
Lloyds
Employers Casualty CAF 649005 Fleet All City Vehicles I
Co.
Employers of Texas FMC 1L6290 City Fire, EC, Windstorm
Lloyds V&MM II
Omaha Property and 1939707723 Bougainvilla Flood-Building and
11
Casualty Contents
Omaha Property and 011932137639 Library Flood-Building and I
Casualty Contents
Omaha Property and 3003462748 Library Annex Flood-Building and
Casualty Contents 1
Omaha Proeprty and 012001944988 Counseling Flood-Building and
Casualty Center Contents
II
Omaha Property and
Casualty 013001775851 Forest Bend Flood-Building and
Civic ContentsII
II
II
-164-
II
II
EXHIBIT XV
1
1
AMOUNT PERIOD OF
II OF COVERAGE
COVERAGE BEGINNING ENDING PREMIUM
1 $ 267,091 12-01-88 12-01-89 $ 1,712
II165,834 12-01-88 12-01-89 2,329
II1,000,000 12-19-88 12-19-89 8,525
II50,000 03-27-89 03-27-90 2,074
II
1,000,000 12-19-88 12-19-89 19,300
2,509,300 12-01-88 12-01-89 75,305
II
500,000 12-01-88 12-01-89 84,234
1
2,012,300 12-01-88 12-01-89 5,155
II3500/141 ,300 11-08-89 11-08-90 496
2000/700 52
II163,400/100,000 08-03-89 08-03-90 717
I55,000/91,600 04-23-89 04-23-90 504
1 27,500/10,500 04-27-89 04-27-90 151
II100,000/10,000 07-20-89 07-20-90 330
1
II
-165-
II
II
SCHEDULE OF INSURANCE IN FORCE - 2 of 2
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
I
LOCATION
OR
INSURER POLICY NO. ACTIVITY COVERAGE
Omaha Property & 011940990565 Public Works Flood-Building I
Casualty and Contents
Omaha Property & 012001256227 Fire Station #1 Flood-Building
II
Casualty and Contents
Omaha Property & 013003589052 City Hall Annex Flood-Building
Casualty and ContentsII
Texas Catastrophe 771372 City Buildings -
Property Insurance Windstorm & Hail I
Texas Political Sub- WCH0008 City All City Employees
division-Workers Comp.
II
St. Paul Fire & 400GX7956 Public Employees Blanket Bond-
Marine All Employees
II
Western Surety Co. 18200783 Notary Public Employees
Errors & Omissions
St. Paul Fire & 400HX3042 Surety Bond City Manager II
Marine
St. Paul Fire & 400HX3033 Surety Bond Tax Assessor II
-
Marine Collector
St. Paul Fire & 400HX3039 Surety Bond Finance DirectorII
Marine
Truman Taylor 13265210 Notary Bond Planning/Zoning I
Insurance
Truman Taylor TXN254475 Notary Bond Communications
Insurance 11
Truman Taylor TXN254477 Notary Bond Finance
InsuranceII
II
1
-166-
1
1
EXHIBIT XV
1
1
' AMOUNT OF PERIOD OF
COVERAGE
COVERAGE BEGINNING ENDING PREMIUM
177, 100/ 04-07-89 04-07-90 $ 366
38,300
' 220,000/ 04-07-89 04-07-90 488
23, 100
e 75,000/ 08-21-89 08-21-90 726
175,000
351,000 08-18-90 08-18-90 2,062
Statutory 10-01-88 10-01-89 90,873
10,000 10-01-88 10-01-89 304
1
20,000 02-17-89 02-17-90 190
50,000 05-29-89 05-29-90 172
50,000 05-29-89 05-29-90 480
' 50,000 05-29-89 05-29-90 88
2,500 02-07-89 02-07-93 71
2,500 05-28-89 05-28-93 71
2,500 07-17-89 07-17-90 71
1
-167-
I
MISCELLANEOUS STATISTICAL DATA - I of 2 EXHIBIT XVI
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
Date of Incorporation October 15, 1960
Date of present charter Adopted Home Rule Charter
October 16, 1971
Form of Government Council - Manager
Area 21.71 Square Miles
Miles of streets
Streets - paved 91.23 miles
Streets - unpaved 4.95 miles I
Fire Protection
Number of stations 3
Number of employees 2
Number of volunteers 74
Fire Prevention
Number of employees 1
Number of volunteers 0
Police Protection
Number of stations 1
Number of sworn officers 32
Number of patrol units 10
Recreation
Number of parks 6
Size of parks 13.3 acres, 13.6 acres, 6.5 acres,
4.85 acres, 4.1 acres, .6 acres
Number of golf courses 0
Number of swimming pools 1
Number of tennis courts 411
Storm Sewers
Miles of storm sewer 31.94 miles
I
-168-
II
PRINCIPAL OFFICIALS
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1989
I
ELECTIVE
CITY OFFICIALS ADDRESS POSITION
Paul W. Schrader 504 Liberty Mayor
Ron Ritter 15410 Wandering Trail Councilmember - Position No. 1
Robert Wicklander 54 Hideaway Councilmember - Position No. 2
Evelyn B. Newman 502 Falling Leaf Councilmember - Position No. 3
Ed Stuart 2001 Pine Councilmember - Position No. 4
Jan Jordan 1008 Castlewood Councilmember - Position No. 5
Frank Frankovich 656 E. Castle Harbour Councilmember - Position No. 6 II
APPOINTIVE POSITION II
Annette A. Brand 109 Willowick, Friendswood City Manager
Deloris Archer 109 Willowick, Friendswood City Secretary
Jon Branson 109 Willowick, Friendswood Park and Recreation Director
Alta Carbone P.O. Box 31, Friendswood Tax Assessor-Collector
Dr. Richard Conway 505 Friendswood Drive Health Officer II
Duane Hengst 109 Willowick, Friendswood Community Development Director
Melvin Meinecke 1306 Deepwood Director of Public Works
Olson & Olson 333 Clay, Suite 3485, Houston City Attorney111
Claudie Pettigrew 109 Willowick, Friendswood Library Director
Vance Riley 1000 S. Friendswood Drive Fire Marshal
Roger C. Roecker 109 Willowick, Friendswood Director of Finance
Jared D. Stout 109 Willowick, Friendswood Police Chief
Luis Suarez 723 Main, Suite 707, Houston Judge - Municipal Court
Russell E. Williams 109 Willowick, Friendswood Emergency Management Director
I
I
I
I
I
1
-170-
1
MISCELLANEOUS STATISTICAL DATA - 2 of 2 EXHIBIT XVI
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
Education
Friendswood Independent School District
Number of teachers 199
Number of students 3,168
City employees
Department Heads 7
Employees 106.8
' Total 113.8
Election
Number of votes cast
Last City election 1,390
Water
Source 7 wells
' Average daily consumption 2,511 ,700 gallons
Maximum daily consumption 4,843,000 gallons
Water mains 80.79 miles
' Number of connections 6,731
Sewer
' Average daily capacity 1,818,000 gallons
Maximum daily capacity 4,909,000 gallons
Sanitary sewer mains 76.58 miles
Number of connections 6,539
1
1
e
I
I
-169-
F
1
1 EXHIBIT XVII
TERM
EXPIRES
1 May, 1990
May, 1990
May, 1991
May, 1990
May, 1991
May, 1990
May, 1991
1
1
1
1
1
1
1
1
1
1
-171-