HomeMy WebLinkAbout1988 09 30 Annual Comprehensive Financial Report - City of Friendswood COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF FRIENDSWOOD, TEXAS
For the fiscal year ended
September 30, 1988
111 Prepared by
-46 Finance Department
Lynn J. Bucher
Acting Finance Officer
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CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal 11
Certificate of Achievement 18
Organization Chart 19
Principal Officials 20
11 FINANCIAL SECTION
Independent Auditors' Report 22
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and
Account Groups 24
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund
Types 28
11 Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual -
General, Special Revenue, and Debt Service
Fund Types 30
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings/Fund Balance -
IIProprietary Fund Type and Similar Trust Fund 32
Combined Statement of Changes in Financial Position -
Proprietary Fund Type and Similar Trust Fund 36
II
Notes to Financial Statements 38
Combining, Individual Fund and Account Group
Statements and Schedules
I! General Fund
Comparative Balance Sheets A-1 67
11 Statement of Revenues - Budget and Actual A-2 68
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CONTENTS - 2
Exhibit Page 11
FINANCIAL SECTION (continued)
General Fund (continued)
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Statement of Expenditures - Budget and
Actual - By Function A-3 69
Statement of Expenditures - Budget and 11
Actual - By Object A-4 70
Special Revenue Funds
Combining Balance Sheet B-1 77
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances B-2 78
Revenue Sharing Fund
Comparative Balance Sheets B-3 79
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual B-4 80
Parks and Recreation Fund
Comparative Balance Sheets B-5 81
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual B-6 82
Mowing Fund
Comparative Balance Sheets B-7 83
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual B-8 84 11
Fine Arts Commission
Comparative Balance Sheets B-9 85
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual B-10 86
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CONTENTS - 3
Exhibit Page
FINANCIAL SECTION (continued)
Debt Service Fund
Comparative Balance Sheets C-1 89
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances C-2 90
11 Capital Projects Fund
Comparative Balance Sheets D-1 93
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances D-2 94
Enterprise Fund
Comparative Balance Sheets E-1 96
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Statement of Revenues and Expenses -
Budget and Actual E-2 98
I! Statement of Operating Expenses -
Budget and Actual E-3 99
Schedule of Revenue Bonds Payable E-4 100
Revenue Bonds Payable - By Maturity Date E-5 102
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Notes Payable E-6 104
11 Trust Fund
Comparative Balance Sheets F-1 107
Comparative Statements of Revenues, Expenses
and Changes in Fund Balances F-2 108
General Fixed Assets Account Group
Schedules of General Fixed Assets - By Source G-1 111
Schedule of General Fixed Assets - By Function
and Activity G-2 112
11 Schedule of Changes in General Fixed Assets -
By Function and Activity G-3 113
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CONTENTS - 4
Exhibit Page
FINANCIAL SECTION (continued)
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General Long-Term Debt Account Group
Statement of Changes in General Long-Term Debt H-1 116 11
Schedule of General Long-Term Debt H-2 118
General Long-Term Debt - By Maturity Date H-3 120
Compound Bonds - Accrued Interest Schedule H-4 124II
Schedules Combined Schedule of Investments - All Funds I-1 127
Schedule of Delinquent Taxes Receivable I-2 128
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STATISTICAL SECTION
General Revenue - By Source I 130II
General Government Expenditures - By Function II 132
Tax Revenues - By Source III 134 II
Property Tax Levies and Collections IV 136
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Assessed and Estimated Actual Value of
Taxable Property V 138
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Property Tax Rates and Tax Levies - All
Overlapping Governments VI 140
Ratio of Net General Bonded Debt to Assessed II
Value and Net Bonded Debt Per Capita VII 142
Computation of Net Direct and Estimated II
Overlapping Debt VIII 144
Ratio of Annual Debt Service Expenditures for 1
General Long-Term Debt to Total General
Expenditures IX 145
Tax Rate Distribution X 146 II
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CONTENTS - 5
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Exhibit Page
11 STATISTICAL SECTION (continued)
Revenue Bond Coverage XI 148
Principal Taxpayers XII 150
Property Value, Construction and Bank Deposits XIII 151
Schedule of Insurance In Force XIV 152
Miscellaneous Statistical Data XV 156
Principal Officials XVI 158
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INTRODUCTORY SECTION
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1Titr Cif of 9tiiidwood
109 WILLOWICK (713)482.3323
,. ' • FRIENDSWOOD, TEXAS 77546 - 3898
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January 23, 1989
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Honorable Mayor and Members of
the City Council
I! City of Friendswood, Texas
The Comprehensive Annual Financial Report of the City of Friendswood, Texas,
1! for the fiscal year ended September 30, 1988, is submitted herewith. This
report was prepared by the City' s Finance Department. Responsibility for
both the accuracy of the presented data and the completeness and fairness
of the presentation, including all disclosures, rests with the City. We
believe that data as presented is accurate in all material aspects; that it
is presented in a manner designed to fairly set forth the financial position
and results of operations of the City as measured by the financial activity
of its various funds; and that all disclosures necessary to enable the reader
to gain the maximum understanding of the City's financial activity have been
included.
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The Reporting Entity and Its Services. The City of Friendswood, Texas adopted
a "Home Rule Charter" on October 16, 1971 . The charter provides for "City
Council - City Manager" form of city government. The City is located 20 miles
k' southeast of downtown Houston in Harris and Galveston Counties.
The City provides its citizens with many services including City adminis-
I! tration, traffic planning, inspection services, municipal court services and
a library. However, the services that affect most citizens on a day-to-day
basis are described as follows:
Water and Sewer The City provides water and sewer services for residential
and commercial locations. The department maintains the system with a work
force of nineteen employees.
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Fire - Although the City does not employ its own fire department, it has
purchased fire trucks and other additional equipment for the volunteer fire
1! department. The City employs a fire marshal, one full-time fire fighter,
one part-time secretary and one full-time paramedic.
Streets - The street department is responsible for the repair and mainten-
ance of all City streets. The department consists of ten employees.
Sanitation - The garbage pick-up is contracted with Best Waste Systems, Inc.
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Parks - The City maintains five city parks, one swimming pool, two sports
complexes, and is responsible for the maintenance of one additional park. The
total of all these park areas is approximately fifty-four acres.
Animal Shelter - The City employs two animal control officers and contracts
with the city of Alvin to house all stray animals picked up. 11
All funds and account groups of the City are included in this report. There
is one 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 is included in the Enterprise Fund.
Internal Accounting and Budgetary Control. The financial statements have been
prepared in accordance with generally accepted accounting principles as pre-
scribed by the Governmental Accounting Standards Board (GASB) . The GASB is11
the successor organization to the NCGA and was established to promulate stand-
ards of financial accounting and financial reporting for state and local
governments. GASB Statement No. 1 provides for NCGA pronouncements currently
in effect to be considered generally accepted accounting principles until
amended or superseded by GASB. Therefore, NCGA pronouncements often are re-
ferenced in this report.
Governmental Funds (General Fund, Special Revenue Funds, Debt Service Fund
and Capital Projects Fund) follow the modified accrual basis of accounting.
Under this method, revenues are recognized when they are both measurable
and available and expenditures are recognized when incurred.
The Proprietary Fund Types (Enterprise Fund and Non-Expendable Trust Fund)
follow the accrual basis of accounting. Under this method, revenues are
recognized at the time they are earned and expenses are recognized when
they are incurred.
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Transfers are recognized in the accounting period in which the interfund
receivable and payable arise.
In developing and evaluating the City's accounting system, consideration is
given to the adequacy of internal accounting controls. Internal accounting
controls are designed to provide reasonable, but not absolute, assurance re-
garding (1) the safeguarding of assets against loss from unauthorized use 11
or disposition and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept
of reasonable assurance recognizes that (1) the cost of controls should not11
exceed the benefits expected to be derived and (2) the evaluation of costs
and benefits requires estimates and judgements by management.
We believe that the City' s accounting controls provide reasonable assurance
that errors or irregularities that could be material to the financial state-
ments are prevented or would be detected within a timely period by employees
in the normal course of performing their assigned functions.
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11 Budgeting is an essential element of the financial planning, control and
evaluation processes of the City. The City requires that an annual budget
be authorized by the City Council before the budget period begins. This
II process provides for the initial financial planning of the budget year.
Interim budget reports are prepared during the budget period to facilitate
legislative oversight of governmental fund financial operations as well as
management control.
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FINANCIAL INFORMATION
I! General Government Functions. Revenues for general government functions
(General, Special Revenue and Debt Service Funds) totaled $6,493,287 in
1987-88, an increase of $155,341 over 1986-87. General property taxes
I! produced 68.41 percent of the general revenues compared to 69.76 percent
the preceding year. Sales taxes produced 7.85 percent of the general
revenues compared to 8. 17 percent of the preceding year. The amount of
I revenue from various sources and the increase or (decrease) over the pre-
ceding year are shown in the following tabulation:
Increase
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1987-88 Percent (Decrease)
Revenue Sources Amount of Total Over 1986-87
General property taxes $4,442,540 68.41% $ 21, 197
II Business gross receipts taxes 375,755 5.79 42,327
General sales taxes 509,551 7.85 (8,392)
Other taxes 1,023 .02 27
I! Sanitation 545, 130 8.40 19,538
Fines and forfeitures 142,516 2. 19 (41,843)
Licenses and permits 125,083 1.93 170
I! Intergovernmental 48,985 .75 (45,030)
Interest income 196,647 3.03 105,636
Other 106,057 1 .63 61,711
I! TOTAL $6,493,287 100.00% $155,341
II Assessed valuations of $763,454, 517 represented an increase of .36 percent over
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
11 tax levy at October 1, 1987, relating to the fiscal year 1987-88 was $4,351,363,
a decrease of .42 percent over the tax levy at October 1, 1986. Current tax
collections were 97.63 percent of the tax levy, up .47% from last year.
11 Delinquent tax collections were $119,686 and represented 2.75 percent of total
collections. The ratio of total collections (current and delinquent) to the
current tax levy was 100.38 percent, an increase of .15 percent from last year.
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Allocations of property tax levy by purpose for 1987-88 and the preceding two
fiscal years are as follows (amount per $100 of assessed value): II
Purpose 1987-88 1986-87 1985-86
General Fund $. 520 $.481 $.519211
General Obligation Debt . 175 .214 . 1903
TOTAL TAX RATE $.695 $.695 $.709511
Expenditures for general government purposes totaled $6,614, 293, a decrease
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of $10,003 from 1986-87. 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:
IncreaseII
1987-88 Percent (Decrease)
Function Amount of Total Over 1986-87
General Government $1 ,480,261 22.37% $ 6,386 11
Public Safety 1,949,940 29.48 79,402
Public Works 649,941 9.83 (68, 176)
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Sanitation 523,844 7.92 4, 317
Culture and Recreation 622,909 9.42 (69,616)
Community Counciling Center 42,705 .65 7,705
Debt Service 1,344,693 20.33 29,979 11
TOTAL $6,614, 293 100.00% $ (10,003)
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The following reasons are cited for major fluctuations in expenditures in var-
ious departments:
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Public Safety: Additional expenditures were made for personal services.
It should be noted that all increases were planned for and budgeted . II
Fund balances in the major operating funds were maintained at budgeted levels.
The General Fund balance of $616,766 was up $226,295 from the preceding year; II
the Debt Service Fund balance of $325,894 was down $193, 104 from the preceding
year; the Capital Projects Fund balance of $219,626 was down $843, 519 from
the prior year; and Special Revenue Fund balances of $16,202 was down $15,767
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from the prior year.
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Debt Administration. The ratio of net bonded debt to assessed valuation and
IIthe 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 1987-88 fiscal year were as follows:
II Ratio of Debt to
Assessed Value Debt
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(100 Percent of Per
Description Amount Present Market) Capita
Net direct bonded debt $ 9,079,884 1.2% $404
IIOverlapping debt 13,393,377 1 .7 595
Total direct and
overlapping debt $22,473,261 2.9% $999
Outstanding tax supported debt at September 30, 1988 totaled $9,405,778.
11 Net direct bonded debt per capita for the City is below the average of $605
of certain comparable cities in the Houston geographic area.
Debt service coverage for revenue bonds for the past two fiscal years was
as follows:
Water and Sewer Departments
II 1987-88 1986-87
li Gross revenues (includes operating $3,071 ,181 $3,066,581
revenues, interest income, capital
recovery fees and other non-operating
income)
IOperating expenses before depreciation 1 ,526,297 1 ,487 ,668
INCOME AVAILABLE FOR DEBT SERVICE $1 ,544,884 $1 ,578,913
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Annual debt service for revenue bonds
IIand notes payable $ 194,720 $ 202,566
Coverage (income available for debt 7.93 8.25
service divided by annual debt
I! service)
Debt secured by a pledge of revenues of the system in the amount of $125,000
11 was retired during the year.
Cash Management. Cash temporarily idle during the year was invested in
II certificates of deposit ranging from 15 to 180 days to maturity. Yields
on certificates of deposit ranged from 5.25 percent to 8.07 percent during
the year ended September 30, 1988.
II Interest earned for the year was $196,647, up $105,636 from the preceding
year.
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MAJOR INITIATIVES
Surface water planning continued with several alternate routes considered
for the transmission line from Municipal Utility District 55 to the
Friendswood pumping station and storage facility. A project work schedule
was developed to ensure the conversion to surface water by January 1, 1990.
Land was purchased for construction of the pumping station and storage
tanks. Construction was started and 95 percent completed on the 24" water-
line shared with Municipal Utility District 55 and Baybrook Municipal Utility
District 1. The City is buying capacity in City of Houston' s Southeast Water
Purification Plant which is 71. 52 percent complete. Certificates of obliga-
tion in the amount of $4.2 million are to be issued to pay for conversion to
surface water.
Water and sewer utility lines on FM 518 from Whispering Pines to League City
were begun with completion expected in the fall of 1988. The water tower
behind city hall was dismantled and removed.
The year 1987-88 was the fourth year of a planned seven-year street improve-
ment program with the goal of improving all city streets without utilizing
any debt financing. The 1986-87 program was completed with resurfacing of
Imperial Drive, Falling Leaf, Misty Lane and Merriewood streets. The 1987-88
program was started with the resurfacing of Ron Circle, Stephen Court, Carey
Lane, and Magnolia streets. The Galveston County program to resurface Oak
Vista, Pine Drive, Windsong, Windwood, and Windcreek was completed; Leisure
Lane and South Clear Creek Drive were started with completion projected for
early 1989. The state highway department began widening FM 518 from Whis-
pering Pines to League City and construction of a new bridge across Cowart's
Creek. The state highway department also constructed a new bridge across
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Clear Creek on Whispering Pines. The street improvement program is to
continue with Wilderness Trails, Lundy Lane, El Dorado, El Dorado Circle,
Prairie Wild, Colt Drive, Chester, Estate Drive, Tower Drive, and Canal
Drive.
A 3,075 square foot addition to the police department was constructed along
with renovation of the dispatch offices and upgrade of police and fire 11
communication equipment. The library Little House was renovated with
facilities constructed for a children' s library and a reference room. A
new concession stand was constructed at Renwick Park Sports Complex and
renovations completed on Leavesley Park rest rooms and Arena Park conces-
sion stand. Designs are being completed for a new dog pound to be con-
structed in 1989. Certificates of obligation in the amount of $200,000
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are to be issued to pay for purchase of property adjacent to City Hall and
renovation of the buildings to provide additional office space.
Computerization of the City continued with the last of the Revenue Sharing
funds being used to purchase hardware upgrades for the City's System/36
computer and a fixed asset tracking application. The Utility Billing
application was modified to begin charging sales tax on garbage services
due to a change in state law and a complete upgrade of the software was
installed. The engineering department was computerized with computer aided
drafting and engineering software. Plans were begun to implement desktop
publishing with the City' s first newsletter mailed in June. Plans were
initiated to computerize the library, inspection and court functions in 1989.
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OTHER INFORMATION
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Independent Audit. The City Charter requires an annual audit of the finan-
cial statements of all of the various funds of the City by a certified public
accountant selected by the City Council . The requirement has been complied
with and the auditors' opinion has been included in this report.
11 Certificate of Achievement for Excellence in Financial Reporting. The
Government Finance Officers Association of the United States and Canada
(GFOA) awards a Certificate of Achievement for Excellence in Financial
Reporting to governmental units for their comprehensive annual financial
report.
In order to be awarded a Certificate of Achievement, a governmental unit
11 must publish an easily readable and efficiently organized comprehensive
annual financial report, whose contents conform to program standards.
Such reports must satisfy both generally accepted accounting principles
11 and applicable legal requirements.
A Certificate of Achievement is valid for a period on one year only. We
believe our current report conforms to Certificate of Achievement require-
ments, and we are submitting it to GFOA to determine its eligibility for
a certificate.
Acknowledgements. The preparation of this report was accomplished with
the efficient and dedicated services of the entire staff of the Finance
Department. I express my appreciation to all members of the department
who assisted and contributed to its preparation. I also thank the Mayor
and members of the City Council , and the City Manager for their interest
and support in planning and conducting the financial operations of the
City in a responsible and progressive manner.
Respectfully submitted,
54'316151-44L-
Lynn J. Bucher
Acting Finance Officer
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Friendswood,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1987
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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MINIM President
fa* SEAL
taloa
hig4 4fv‘ e
Executive Director
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Me 11111 MN Mil PM 11111 ISM rim moi on am num me rime Mil Mil rill
ORGANIZATION CHART-CITY OF FRIENDSWOOD, TEXAS
APPOINTED BOARDS MAYOR & COUNCIL VOLUNTEER FIRE
AND -- _ - - _ _ _
AD HOC COMMITTEES - r AND
AMBULANCE
CITY ATTORNEY
CITY SECRETARY
MUNICIPAL JUDGE
COURT CLERK CITY MANAGER
FIRE MARSHAL
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FINANCE LIBRARY PUBLIC WORKS POLICE EVE E AND
DEVELOPMENT RECREATION
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PRINCIPAL OFFICIALS
CITY OF FRIENDSWOOD, TEXAS 11
September 30, 1988
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MAYOR 11
Paul W. Schrader
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Position No. 1 Position No. 4
Ronald H. Ritter Phyllis J. Lee
Mayor Pro Tem
Councilman Councilman
Position No. 2 Position No. 5
Robert Wicklander Jan Jordan
Councilman Councilman
Position No. 3 Position No. 6
Evelyn B. Newman Joe D. Prihoda
City Manager
Annette A. Brand
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City Secretary Tax Assessor
Deloris McKenzie Alta Carbone
Acting Finance Officer
Lynn J. Bucher
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IFINANCIAL SECTION
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E2IRL LIIIRSON cl CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
713-681-8500
P. O.BOX 500017 1716 MANGUM,SUITE 200
HOUSTON,TEXAS 7725 0-0017 HOUSTON,TEXAS 77092
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INDEPENDENT AUDITORS' REPORT
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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 11
group financial statements of the City of Friendswood, Texas as of and for
the year ending September 30, 1988, 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 above
present fairly, in all material respects, the financial position of the City of
Friendswood, Texas at September 30, 1988, and the results of its operations
and the changes in financial position 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, 1988,
and the results of operations of such funds and the changes in financial
position of individual proprietary and similar trust funds for the year then
ended, in conformity with generally accepted accounting principles.
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Honorable Mayor and Members of
City Council
City of Friendswood , Texas
Page Two
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.
Atiti;i4.... 42,
Houston, Texas
January 23, 1989
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COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - 1 of 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988
1
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
ASSETS AND OTHER DEBITS
CASH - including certificates
of deposit $ 918,093 $325,894'' $177,913/ II
RECEIVABLES - net where applicable,
of allowances for uncollectibles
Property taxes 216,035/ - 85,719 V
Accounts 43,139/ $15,333
Grantor agencies 20,000
Interest
DUE FROM OTHER FUNDS 103,434i/ 150,053L.
PREPAID EXPENDITURES AND
OTHER ASSETS 13,079i 260 y 4,335 /`
RESTRICTED ASSETS 11
Cash - including certificates of
deposit 15,942✓
Land11
Blackhawk operating fund deposit
GENERAL FIXED ASSETS - at cost
PROPERTY, PLANT AND EQUIPMENT -
at cost less accumulated
depreciation - Note 5
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OTHER DEBITS
Amount available in debt
service funds
Amount to be provided for
retirement of general
long-term debt 11
TOTAL ASSETS AND OTHER DEBITS $1 ,293,780 $31,535 $411,613 $352,301
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FIDUCIARY
11 PROPRIETARY FUND TYPE TOTALS
FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG-
ENTERPRISE TRUST ASSETS TERM DEBT 1988 1987
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I: $ 192,085/ $ 1 ,613,985 $ 1,988, 198
1;
301,754 318,441
314,425 ✓ 372,897 330,076
I! 20,000 25,087
1,776 ✓ 1,776 4,056
111 927 ✓ 254,414 653,213
I! 17,674 6,425
208,959✓ $21,268 1 246,169 238,273
ii 57,200 / 57,200 57,200
109,279V 109,279 109,279
17 $14,714,524 14,714,524 13,296, 158
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20, 506,623 ✓ 20,506,623 19,251,485
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$ 325,894 325,894 518,998
9,319,430 9,319,430 9,632,623
1! $21,334,074 $78,468 $14,714,524 $9,465, 324 $47,861,619 $46,429,512
11 See notes to financial statements.
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COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - 2 of 2
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GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
LIABILITIES, EQUITY AND OTHER CREDITS
LIABILITIES I/
ACCOUNTS PAYABLE AND
ACCRUED LIABILITIES $ 200, 557/ $ 29,241✓ 11
COMPENSATED ABSENCES 259,495
PAYABLE FROM RESTRICTED ASSETS
Accrued interest
Revenue bonds - current portion
Deposits
DUE TO OTHER FUNDS 927 103,434
DEFERRED REVENUE /216,035 $15,333`' $ 85,7194 3
LEASE OBLIGATION
REVENUE BONDS
GENERAL OBLIGATION BONDS
NOTES PAYABLE
TOTAL LIABILITIES 677,014 15,333 85,719 132,675
EQUITY AND OTHER CREDITS
CONTRIBUTED CAPITAL
INVESTMENT IN GENERAL FIXED11
ASSETS
RETAINED EARNINGS
Reserved for revenue bond
441
retirement
Reserved for construction
Unreserved
FUND BALANCES71
Reserved for encumbrances 108,271v/ 219,626
Reserved for prepaid expenditures 13,079
Reserved for endowments71
Reserved for parks 8,796V
Reserved for programs 321,
Unreserved
Designated for programs 11
Designated for debt service 325,894\J
Undesignated 495,416 7,085'
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TOTAL EQUITY AND OTHER CREDITS 616,766 16,202 325,894 219,626
TOTAL LIABILITIES, EQUITY AND71
OTHER CREDITS $1,293,780 $31,535 $411,613 $352,301
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1
I
iiii FIDUCIARY
PROPRIETARY FUND TYPE TOTALS
I! FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG-
ENTERPRISE TRUST ASSETS TERM DEBT 1988 1987
I! .,
I: $ 107, 184✓ $ 336,982 $ 514,427
50,938/ $ 184,025 494,458 347,178
I5,523 5,523 6, 148
125,000'/. 125,000 125,000
53,925/ 53,925 59,610
150,053 I .; `'�,,''1'�' ' (0.. 254,414 653,213
317,087 333,454
$ 55,521 55,521 85,843
,995,000 995,000 1,120,000
/;1 '_ 9,405,778 9,405,778 10,065,778
1 ,371,286v 1,371,286
I2,858,909 9,645,324 13,414,974 13,310,651
1 /14,816,039 0-- (01r'Hr7 ,O1 i-' 14,816,039 14,766,347
$14,714,524 t 14,714,524 13,296,158
333,959/ 1 11 c, -. 333,959 328,414
1,696,573/ I,' (_(', (In IS c-��r''= `�I-`'� 6� 3/,,,i6ti 1,696,573 686,255
1,628,594,, )4{Ci (,,/ .ln 1` ,,,r ap GL G� ` , 1,628,594 2, 144,033
� ; 327,897 466,899
;e. 13,079 6,425
$67,200`' 67,200 67,200
8,796 10,680
I321 614
678,001
f 325,894 518,998
11 ,268 513,769 148,837
18,475,165 78,468 14,714,524 34,446,645 33,118,861
I
$21,334,074 $78,468 $14,714,524 $9,645,324 $47,861 ,619 $46,429,512
I See notes to financial statements.
-27-
1;
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
!!
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1988
GOVERNMENTAL FUND TYPES 11
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
11
REVENUES
Taxes $ 4,224,316 $1 ,104,553
Charges for services 545, 130
Fines and forfeitures 142,516
Licenses and permits 125,083
Intergovernmental 48,985
Interest 147,537 $ 2,074 47,036 $ 12,991 II
Other 104,136 1 ,921
TOTAL REVENUES 5,337,703 3,995 1, 151,589 12,991 11
EXPENDITURES
Current
General government 1,464,432 15,829 !I
Public safety 1,949,940
Public works 642,931 7,010
Sanitation 523,844
II
Culture and recreation 618,909 4,000
Community counciling center 42,705
Capital outlay 1, 128,285
Debt service
Principal retirement 690,323
Interest and fiscal charges 654,370
TOTAL EXPENDITURES 5,242,761 26,839 1 ,344,693 1 ,128,285 II
REVENUES OVER (UNDER) EXPENDITURES 94,942 (22,844) (193,104) (1,115,294)
OTHER FINANCING SOURCES
I/
Capital lease acquisition
Operating transfers in 1, 135,485 9,677 994,455
Operating transfers out (1 ,004,132) (2,600) (722,680) II
TOTAL OTHER FINANCING SOURCES (USES) 131,353 7,077 271 ,775
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES 226,295 (15,767) (193, 104) (843,519) II
Fund balances at beginning of year 390,471 31,969 518,998 1,063,145 11
Residual equity transfers in
FUND BALANCES AT END OF YEAR $ 616,766 $ 16,202 $ 325,894 $ 219,626 il
-28- II
~°
� TOTALS
(MEMORANDUM ONLY)
1988 1987
�
� 5,328,869 5,272,714
545,130 �25,�92
142,516 184,359
125,083 124,913
4R"985 94,015
209,638 102,314
106,057 45,342
6,506,278 6,349,249
-
1,480,261 1,473,875
1,949,940 ~ 1*870,538
649,941 718, 117
523,844 ^ 519,527
622,909~ 692,525
42,705 ' 35,000
1, 128,285' 921,268
690,323° 620,986
654,370' 694,320
7 ,742,578 7,545,564
(1,236,300) (1 '196,315)
63, 236
2, 139,617 647,304
(1 ,729,412) (42,461)
410,205 668,079
-- (826,095) (528,236)
2,004,583 225,278
- 2,113,516
$ 1, 178,488 $ 1,820,558
_ --___--__-_
------__--
See notes to financial statements.
-29-
_ _
1
11
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE
11
AND DEBT SERVICE FUND TYPES
CITY OF FRIENDSWOOD, TEXAS
t
mm
Year ended September 30, 1988
II
GENERAL FUND
VARIANCE-
1!
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
REVENUES :I
Taxes $ 4,211,883 $ 4,224,316 $ 12,433
Charges for services 538,545 545, 130 6,585
Fines and forfeitures 137,942 142,516 4,57411
Licenses and permits 116,026 125,083 9,057
Intergovernmental 48,460 48,985 525
Interest 130,212 147,537 17,325
Other 52,406 104,136 51,730 II
TOTAL REVENUES 5,235,474 5,337,703 102,229
EXPENDITURESII
Current
General government 1,529, 173 1,464,432 64,741
Public safety 1,995,427 1,949,940 45,48711
Public works 609,555 642,931 (33,376)
Sanitation 523,845 523,844 1
Culture and recreation 670, 585 618,909 51,676
Community counciling center 41,000 42,705 (1 ,705) 11
Debt service
Principal retirement
Interest and fiscal charges !I
TOTAL EXPENDITURES 5,369,585 5,242,761 126,824
REVENUES OVER (UNDER) EXPENDITURES (134, 111) 94,942 229,053
!I
OTHER FINANCING SOURCES (USES)
Operating transfers in 1, 135,485 1, 135,485 -0-
Operating transfers out (1,125,310) (1 ,004,132) (121,178) 11
TOTAL OTHER FINANCING
SOURCES (USES) 10,175 131,353 121,178
REVENUES AND OTHER SOURCES II
OVER (UNDER) EXPENDITURES (123,936) 226,295 350,231
Fund balances at beginning of year 390,471 390,471 -0 11
-
FUND BALANCE (DEFICIT)
AT END OF YEAR $ 266,535 $ 616,766 $350,231
-30 II
-
[I:
!!
I!
!!
!!
SPECIAL REVENUE FUNDS DEBT SERVICE FUND
11 VARIANCE- VARIANCE-
FAVORABLE FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE)
11
$1 ,104,553 $1 , 104,553 $ -0-
I:
II $ 2,074 $ 2,074 $ -0- 47,036 47,036 -0-
1 ,611 1 ,921 310
3,685 3,995 310 1,151,589 1,151 ,589 -0-
I!
23,532 15,829 7,703
II
7,010 7,010 -0-
I! 4,000 4,000 -0-
I! 690,669 690,323 346
654,024 654,370 (346)
34,542 26,839 7,703 1 ,344,693 1 ,344,693 -0-
I! (30,857) (22,844) 8,013 (193, 104) (193, 104) -0-
I! 9,677 9,677 -0-
(2,600) (2 ,600) -0-
I! 7,077 7,077 -0-
(23,780) (15,767) 8,013 (193,104) (193,104) -0-
Iliv
31 ,969 31,969 -0- 518,998 518,998 -0-
Ir $ 8, 189 $ 16,202 $ 8,013 $ 325,894 $ 325,894 $ -0-
See notes to financial statements.
-31-
IF
1!
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
4111
Year ended September 30, 1988
PROPRIETARY FIDUCIARY !!
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST 1!
Operating revenues
Water and sewer sales and services $ 2,940,726
Water and sewer tap fees 112,751 r
Fees and penalties 7,600
Other 10,104
3,071 , 181 11
Operating expenses
I/
Water department
Personal services 274,406
Supplies 60,339
Other services and charges 211,51211
Maintenance 73,249
619,506
Sewer department 11
Personal services 195,588
Supplies 18,956
Other services and charges 137,800 !I
Maintenance 68, 182
Waste disposal fees 486,265
906,791 !I
OPERATING INCOME
BEFORE DEPRECIATION 1, 544,884
Depreciation 594,790 11
OPERATING INCOME 950,094
Non-operating revenues (expenses) 11
Grant revenues
Interest revenue 30,255 $1,372
Interest expense (69,720) 11
(39,465) 1,372
INCOME BEFORE OPERATING TRANSFERS 910,629 1,372
Operating transfers in 722,680
Operating transfers out (1,132,885)
(410,205) - !I
NET INCOME 500,424 1,372
-32 !I
-
1!
!!
!!
TOTALS
(MEMORANDUM ONLY)
1988 1987
111
Ni $ 2,940,726 $ 2,875,209
112,751 176,069
11 7,600 13,998
10,104 1,305
3,071, 181 3,066,581
274,406 235,335
I! 60,339 66,472
211,512 174,675
73,249 112,897
619,506 589,379
195,588 193,949
11 18,956 22,081
137,800 140,007
68, 182 108,466
111 486,265 433,786
906,791 898,289
1,544,884 1,578,913
11
594,790 569,008
950,094 1,009,905
92,399
31,627 72,209
(69,720) (77,566)
(38,093) 87,042
912,001 1,096,947
722,680
Im (1 ,132,885) (604,843)
(410,205) (604,843)
11 501,796 492, 104
See notes to financial statements.
-33-
11
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE -
PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND - 2 of 2 mg
CITY OF FRIENDSWOOD, TEXAS
Years ended September 30, 1988
I!
PROPRIETARY FIDUCIARY
FUND TYPE FUND TYPE
NON-EXPENDABLE
1!
ENTERPRISE TRUST
Retained Earnings/Fund Balance at
Beginning of Year 3, 158,702 77,096
Residual Equity Transfer - -
RETAINED EARNINGS/FUND BALANCE AT
END OF YEAR $ 3,659, 126 $78,468
I
I
11
I
11
11
or
-34-
I!
1!
TOTALS
(MEMORANDUM ONLY)
1988 1987
1! 3,235,798 4,857,210
11 - 2,113,516
$ 3,737,594 $ 3,235,798
11
11
11
It I!
See notes to financial statements.
-35-
11
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION -
PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND
11
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 198811
PROPRIETARY FIDUCIARY
11
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST
11
SOURCE OF WORKING CAPITAL
Operations
Net income $ 500,424 $1 ,372
Expenses not requiring current outlay of
financial resources
Depreciation 594,790
Working capital provided from operations 1,095,214 1,372
Proceeds from long-term borrowing 1, 371,286
Increase in deferred tap fees 49,692 11
2,516, 192 1,372
USES OF WORKING CAPITAL11
Residual equity transfer out
Acquisition of property, plant and equipment 1,849,928
Retirement of long-term debt 125,000
1,974,928 11
NET INCREASE (DECREASE) IN WORKING CAPITAL $ 541,264 $1 ,372
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING
CAPITAL11
Cash - restricted and unrestricted $ 7,916 $1 ,372
Accounts receivable 26,236
Accrued interest (2,280)
!I
Due from other funds 927
Accounts payable and accrued expenses 43, 585
Customer meter deposits 5,685
Due to other funds 458, 570
Accrued expenses (including interest) 625
NET INCREASE (DECREASE) IN WORKING CAPITAL $ 541,264 $1 ,372 !I
!I
-36 11
-
I!
TOTALS
(MEMORANDUM ONLY)
1988 1987
I! $ 501,796 $ 492, 104
11 594,790 569,008
1,096,586 1,061, 112
1,371,286
49,692
2,517,564 1,061, 112
2, 113,516
1,849,928 820, 166
125,000 125,000
1 ,974,928 3,058,682
1! $--542,636 $(1,997,570)
9,288 (l 166 071)
26,236 (180,945)
(2,280) 656
927
43,585 (82,549)
5,685 25,590
458,570 (594,807)
625 556
$ 542,636 $(1,997,570)
I
See notes to financial statements.
—37—
I
NOTES TO FINANCIAL STATEMENTS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988
1. ORGANIZATION
The City of Friendswood, Texas was incorporated in and adopted a Home 11
Rule Charter 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
11
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 !I
-
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
11
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 !I
recreation, library, water and sewer, sanitation and general administrative
services.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY AND DESCRIPTION OF FUNDS
Consistent with the guidance contained in NCGA Statement 3, Defining
the Governmental Reporting Entity, the basic criterion used by the
City to evaluate the possible inclusion of related entities (Authori-
ties, Boards, Councils, etc .) within its reporting entity is the
exercise of "oversight responsibility" by the City over such entities.
In determining the extent of oversight responsibility exercised in a
given case, the City reviews the applicability of the following
specific criteria:
(1) Financial Interdependency - When a separate agency produces a
financial benefit or imposes a financial burden on a unit of
government, that agency is part of the reporting entity.
Manifestations of financial interdependency include responsibi-
lity for financing deficits, entitlement to surpluses and
guarantees of or "moral responsibility" for debt.
(2) Selection of Governing Authority - An authoritative appointment
is one where the entity' s elected officials maintain a signifi-
cant continuing relationship with the appointed officials with
respect to carrying out important public functions. 11
-38-
I!
NOTES TO FINANCIAL STATEMENTS - 2
I!
11 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. REPORTING ENTITY AND DESCRIPTION OF FUNDS (continued)
(3) Designation of Management - When management is appointed by and
held accountable to a governing authority that is included in the
11 entity, the activity being managed falls within the entity.
(4) Ability to Significantly Influence Operations This ability
includes, but is not limited to, the authority to review and
11 approve budgetary requests, adjustments and amendments.
(5) Accountability for Fiscal Matters - Fiscal authority normally
includes the authority for final approval over budgetary appropri-
ations, responsibility for funding deficits and operating defi-
ciencies, disposal of surplus funds, control over the collection
and disbursement of funds, and maintenance of title to assets.
A second criterion considered was scope of public service. This criter-
ion for determining whether the statements of a specific agency should
11 be included in the financial statements of a reporting entity considers
the following aspects:
(1) Whether the activity is for the benefit of the reporting entity
and/or its residents, and
(2) Whether the activity is conducted within the geographic boundaries
1! of the reporting entity and is generally available to the citizens
of that entity.
I! The Friendswood Volunteer Fire department has been excluded from this
report due to the immaterial effect on the financial report if it were
included. Other governmental units provide services to the City' s resi-
dents, sometimes within the geographic boundaries of the City; however,
such governmental units are separate legal entities, independently governed
and financed . These governmental units include Friendswood Independent
School District, Clear Creek Independent School District, Galveston County,
11 Harris County and Clear Creek Drainage District and have been omitted from
the reporting entity.
11 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 pur-
poses 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:
Ir
-39-
1!
NOTES TO FINANCIAL STATEMENTS - 3
!!
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. REPORTING ENTITY AND DESCRIPTION OF FUNDS (continued)
GOVERNMENTAL FUND TYPES !I
Governmental funds are those through which most governmental functions
of the City are financed. The City's expendable financial resources
(except those accounted for in proprietary funds) are accounted for
through governmental funds. The measurement focus is upon determination
of changes in financial position, rather than upon net income determi-
nation. The following are the City's governmental fund types: 11
General Fund
11 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 11
general government, public safety, public works, and other community
services.
11
Special Revenue Funds
The Special Revenue Funds are used to account for proceeds of specific
11
revenue sources that are legally restricted to financing specified
activities. Capital improvements are charged to expenditures in the
accounts of this fund and capitalized in the General Fixed Asset Account
11
Group or the Enterprise Fund.
Debt Service Fund
!I
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.
Capital Projects Fund
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
Fund) . The principal resources of the Capital Projects Fund are pro11
-
ceeds from the sale of bonds and certificates of obligation, federal
grants and interest revenues.
PROPRIETARY FUND TYPE 3
Proprietary funds are used to account for the City' s ongoing organiza-
tions and activities which are similar to those often found in the11
private sector. The measurement focus is upon determination of net
income. The following is the City' s proprietary fund type:
-40 11
-
I!
I!
NOTES TO FINANCIAL STATEMENTS - 4
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. REPORTING ENTITY AND DESCRIPTION OF FUNDS (continued)
PROPRIETARY FUND TYPE (continued)
Enterprise Fund (Water and Sewer)
The Enterprise Fund is used to account for operations of the water and
sewer department and the construction of related facilities and to
11 account for billing for and payment of its sanitation contract. The
fund is financed and operated in a manner similar to private business
enterprises - where the intent of the City is that the costs (expenses,
I! including depreciation) of providing goods or services to the general
public on a continuing basis be financed or recovered primarily through
user charges. The acquisition, maintenance and improvement of the
physical plant facilities required to provide these goods and services
are financed from existing cash resources, the issuance of bonds (reve-
nue or general obligation) , federal grants and other City funds.
FIDUCIARY FUND TYPES
Trust Fund
The Non-Expendable Trust Fund (1776 Park) is used to account for assets
held by the City in a trustee capacity or as an agent for individuals,
private organizations, other governments and/or other funds. The fund
11 is accounted for in the same manner as proprietary funds.
ACCOUNT GROUPS
I! Account groups are used to establish accounting control and account-
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
City' s land, buildings, improvements and equipment except those re-
corded in the Enterprise Fund. Such assets are recorded at historical
cost.
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
11 revenues of the City.
11
-41-
11
NOTES TO FINANCIAL STATEMENTS - 5
!!
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
11
B. 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.
OP
MEASUREMENT FOCUS
Governmental fund types (General, Special Revenue, Debt Service and
Capital Projects) are accounted for on a "spending" or "financial flow"
11
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 MO
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 an "income determination" or "cost
of services" measurement focus. Accordingly, all assets and all
liabilities are included on their balance sheets, and the reported 11
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. 11
MODIFIED ACCRUAL BASIS OF ACCOUNTING
11 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. Available3
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 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:
-42-
11
NOTES TO FINANCIAL STATEMENTS - 6
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. BASIS OF ACCOUNTING (continued)
MODIFIED ACCRUAL BASIS OF ACCOUNTING (continued)
(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 revenues at September 30, 1988.
Property taxes collected within sixty days subsequent to
® September 30, 1988 have not been recorded as the amount is not
® considered material .
(2) Insurance premiums are charged to expenditures when the liability
is incurred.
(3) Sick pay is accrued, and one half of any cumulative sick pay is
payable to the employee upon termination. Unpaid vacation is
recorded as it accrues and cannot be carried forward to the fol-
lowing year without City Manager approval. Amounts accrued in
these financial statements represent the unused portion of vaca-
tion at September. 30, 1988. 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" that will be liquidated with current resources are
accrued in the General and Enterprise Fund with the balance
included in the General Long-Term Debt Account Group. As of
September 30, 1988, accrued sick pay, vacation, longevity pay
and "comp-time" were as follows:
Fund Sick Pay Vacation Longevity "Comp-Time" Total
General Fund $191,531 $141,490 $15,864 $79,414 $428,299
Enterprise Fund 19,961 19,253 2,516 8,987 50,717
$211,492 $160,743 $18,380 $88,401 $479,016
(4) Principal and interest on general long-term debt is recognized
when due.
(5) Supplies inventories are charged to expenditures when purchased .
(6) Franchise fees, fines, licenses and permits, and sales tax are rec-
ognized when received; i.e. , the time they are considered measurable.
Sanitation fees and Revenue Sharing entitlements are recorded when
earned.
11
-43-
NOTES TO FINANCIAL STATEMENTS - 7
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. BASIS OF ACCOUNTING (continued)
MODIFIED ACCRUAL BASIS OF ACCOUNTING (continued) 11
(7) Investment earnings are not accrued in the governmental fund types
and Non-Expendable Trust Funds since it is not material. Earnings
11
are recorded upon maturity of investments. Investments (certificates
of deposit) are stated at cost.
The Enterprise Fund and Non-Expendable Trust Fund revenues and expenses
are recorded on the accrual basis whereby revenues are recognized in the
period in which they are earned and become measurable, and expenses are
recognized in the period incurred.
C. BUDGETS
GENERAL BUDGET POLICIES
Procedures in establishing budgetary data reflected in the financial
statements are as follows:
(1) On or before the first day of August of each year, the City Manager
shall submit to the Council a proposed budget and an accompanying
message. The Council shall review the proposed budget and revise
as deemed appropriate prior to general circulation for public 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
amount of such excess.
(2) At any time during the fiscal year, the City Manager may transfer
part or all of any unencumbered appropriation balance among programs
within a department, division or office and, upon written request by
the City Manager, the Council may by ordinance transfer part or all
of any unencumbered appropriation balance from one department, office,
or agency to another.
(3) Limitations: No appropriation for debt service may be reduced or
transferred, and no appropriation may be reduced below any amount
required by law to be appropriated or by more than the amount of
the unencumbered balance thereof.
-44- 1
1
NOTES TO FINANCIAL STATEMENTS - 8
' 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. BUDGETS (continued)
' GENERAL BUDGET POLICIES (continued)
(4) Legally adopted budgets for the General, Special Revenue, Debt
Service and Enterprise Funds are prepared on a basis consistent
with generally accepted accounting principles (GAAP) .
(5) Every appropriation, except an appropriation for a capital expendi-
ture, shall lapse at the close of the fiscal year to the extent that
it has not been expended or encumbered.
(6) During the year ended September 30, 1988, amendments to the budget
were approved as follows:
' (a) General Fund - Increased expenditures by $306,885.
(b) Special Revenue Funds - Decreased expenditures by $3,591 .
(c) Enterprise Fund - Increased expenditures by $61,373.
' The City of Friendswood has complied with all budget requirements for
the year ended September 30, 1988.
' D. 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,
etc. , are capitalized along with other general fixed assets.
' Depreciation of all exhaustible fixed assets used by the Enterprise
Fund is charged as an expense against its operations. Allowance for
depreciation is reported in the Enterprise Fund balance sheet. 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.
-45-
1
NOTES TO FINANCIAL STATEMENTS - 9
1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. 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.
F. GENERAL PROPERTY TAXES 1
All taxes due the City on real or personal property are payable at the
Office of the City Assessor-Collector and may be paid at any time after
the tax rolls for the year have been completed and approved, which is no
later than October 1. Taxes are levied on October 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.
G. "MEMORANDUM ONLY" CAPTIONS
The "memorandum only" captions on the total columns of the combined 1
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.
H. ALLOWANCES 1
Allowance for doubtful accounts has been recorded at September 30, 1988
as follows:
Fund Type of Account Amount
Enterprise Fund Water and Sewer billings $20,000 General Fund Sanitation billings 2,505
1
1
1
-46- '
I
NOTES TO FINANCIAL STATEMENTS - 10
3. INTERFUND RECEIVABLES AND PAYABLES
The following is a summary of amounts due from and due to other funds:
Due From Due To
General Fund
Capital Projects Fund $103,434
Enterprise Fund $ 927
Capital Projects Fund
Enterprise Fund 150,053
General Fund 103,434
11 Enterprise Fund
General Fund 927
Capital Projects Fund 150,053
TOTAL ALL FUNDS $254,414 $254,414
4. DEPOSITS AND INVESTMENTS
At September 30, 1988 the carrying amount of the City' s deposits in banks
was $1,860, 154 and the bank balance was $2,098,844. Of the bank balance,
$100,000 was covered by federal depository insurance; U. S. government
securities and municipal bonds in the amount of $2,833,035 were pledged
as collateral for the balance. Such securities were held in safekeeping
in the City's name for the pledging bank at the pledging bank's corre-
spondent bank.
State law authorizes the City to invest in:
(a) obligations of the United States or its agencies or instrumentalities;
(b) direct obligations of the State of Texas or its agencies;
(c) other obligations, the principal and interest on which are uncondition-
ally guaranteed or insured by the State of Texas or the United States;
(d) obligations of state, agencies, counties, cities and other political
subdivisions of any state having been rated as to investment quality by
a nationally recognized investment rating firm and having received a
rating of not less than A or its equivalent;
(e) certificates of deposit issued by state and national banks domiciled
in Texas which are:
(1) guaranteed or insured by the Federal Deposit Insurance 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
the certificates; and
(f) fully collateralized by direct repurchase agreements.
Ir
-47-
II
II
NOTES TO FINANCIAL STATEMENTS - 11
II
5. FIXED ASSETS
11 A summary of changes in general fixed assets for the year ended
September 30, 1988 follows:
Balance at Balance at 11
Sept. 30, Sept. 30,
1987 Additions Retirements 1988
II
Land $ 965, 134 $ 26,069 $ 991 ,203
Buildings 1,733,218 184,272 1,917,490
Improvements 7,611,924 1,411,952 9,023,876II
Equipment 2, 138, 160 165,0151 2, 303, 175
Construction in
progress 847,722 55,059 $424,001 478,780
II
TOTAL $13,296, 158 $1 ,842,367 $424,001 $14,714,524
II
A summaryof changes in Enterprise Fund fixed assets for the year ended
g P
September 30, 1988 follows:
Balance at Balance at II
Sept . 30, Sept . 30,
1987 Additions Retirements 1988
II
Land $ 135, 387 $ 29,7121 $ 165,099/
Plant and equipment 5, 534,433 60,418 5, 594,851/
Plant and equipment 11
-
Blackhawk 9,749,543 9,749,5431
Water and sewer lines 5, 188,077 1,879 5, 189,956'
Drainage 1, 171,064 1, 171,064, II
Storm sewers 637,671 637,671v
Construction in
progress 667,672 1,757,9191 2,425,5911
11
23,083,847 1,849,928 -0- 24,933,775i
Less allowance for11
depreciation 3,832,362 594,790 4,427,152
TOTAL $19,251,485 $1,255, 138 $20,506,623
II
11
11
-48 II
-
NOTES TO FINANCIAL STATEMENTS - 12
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 and (3) to provide dispatch services 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.
C. The City entered into a contract with Gulf Coast Waste Disposal Author-
ity on December 12, 1974 to manage the Blackhawk Regional Waste Treat-
ment Plant. The City pays its pro rata share of the plant's operating
expenses and a management fee as set by the Blackhawk Advisory Com-
mittee. The City paid $486, 265 to the Authority for operation and
management services for the year ended September 30, 1988.
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 has been
received by the City of Friendswood 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
11
-49-
I
11
NOTES TO FINANCIAL STATEMENTS - 13
11
6. COMMITMENTS (continued)
11
F. The City had the following construction commitments at September 30,
1988:
Amount II
Paid to
Project Contract Percent Sept. 30,
Project Contractor Description Amount Complete 1988
Leisure Lane Galveston County Joint resurfacing $ 84,200 28.00% $ 31,88
project with City
providing materials
and county providing
labor and equipment.
South Clear Galveston County Joint resurfacing 87,300 28.00 22,776
Creek Dr. project with City
providing materials
and county providing
labor and equipment.
jI
Lundy Lane No Contract Preliminary surveying 0.00 21
for resurfacing.
Clover Acres Coenco Preliminary engineer- 4,064 100.00 2,14
11
ing study on drain-
age for Clover Acres
Sub-division. Study
complete and project
budgeted for construc-
tion in amount of11
$150,000.
Shadwell No Contract Preliminary surveying 0.00 4,90
11
Lane for resurfacing.
City Hall No Contract Purchase land for new 0.00 300, 79
11
Project city hall preliminary
surveying, and install
electric pole.
11 Lawrence W. Speck New City Hall Archi- 93,000 100.00 116,07
tectural Services
Southeast City of Houston City buying into 3, 300,000 72.52 1,971 ,28
11
Water Puri- Houston' s Plant .
fication
Plant
-50-
1
1
11 NOTES TO FINANCIAL STATEMENTS -14
1 6. COMMITMENTS (continued)
Amount
Paid to
II
Project Contract Percent Sept. 30,
Project Contractor Description Amount Complete 1988
24" Water MUD 55 Surface water $462,930 95.00% $ 209,967
II Line transmission line
from I-45 to Mud 55;
Friendswood sharing
II this line with MUD
55 and Baybrook MUD
1.
11 18" Water Brown, Gay Surface water trans- 100.00 31,237
Line & Assoc mission line design
from MUD 55 to FM 528.
II
No Contract Preliminary engineer- 0.00 4,610
ing to determine al-
l' ternate routes for
surface water trans-
mission line from MUD
II 55 to Friendswood
Pumping Station.
Application Pate Application for 100.00 14,550
II for Surface Engineering financial aid from
Water Finan- State of Texas on
cial Aid funding for Surface
II Water conversion
project.
II Surface Water No Contract Preliminary engineer- 21,885
Planning ing for surface water
conversion.
II Relocate No Contract Required by State 90.00 75, 169
water line due to widening of
on FM 518 the road . Project
I/ from Whispering done with in-house
Pines to personnel .
League City
I/ Relocate No Contract Required by State 90.00 96,887
sewer line due to widening of
on FM 518 the road . Project
11 from Whispering done with in-house
Pines to personnel.
League City
ll $2,904,371
-51-
11
NOTES TO FINANCIAL STATEMENTS - 15
7. LONG-TERM DEBT
Long-term debt at September 30, 1988 is comprised of the following:
Principal
Balance Current
Description Sept . 30, 1988 Portion
General Obligation Bonds
Refunding Bonds, Series 1986 $ 9,405,778 $655,000
Notes Payable
Notes payable - City of Houston, interim
construction financing, interest at 8. 1%,
secured by Southeast Water Purification Plant $ 1,371,286 -0-
Capital Leases
Radio Lease 12,394 5, 142
Computer Lease (Police) 31,794 9,609
Truck Lease 11,333 11,333
TOTAL 10,832,585 681 ,084
Revenue Bonds
Waterworks and Sanitary Sewer System Revenue Bonds,
Series 1969 due in installments of $20,000 11
to $50,000 through March 1, 1999, interest at
6. 125 to 6.50 percent . 415,000 25,000
Waterworks and Sewer System Revenue Bonds,
Series 1979 due in installments of $5,000
to $100,000 through March 1, 1996, interest at
5.50 to 6.50 percent. 705,000 100,000
TOTAL 1,120,000 125,000
TOTAL LONG- $11,952,585 $806,084
TERM DEBT
Capital lease requirements are as follows:
Total Present Value Amount
Year Ending Lease of Minimum Representing
Sept. 30 Payments Lease Payments Interest
1989 $30, 188 $26,084 $ 4, 104
1990 18,856 16,245 2,611
1991 14,186 13,192 994
$63,230 $55,521 $ 7,709
-52-
II
11
NOTES TO FINANCIAL STATEMENTS - 16
II
II7. LONG-TERM DEBT (continued)
The bond and capital lease requirements of the City (general obligation and
IIrevenue) by maturity date are as follows:
Year Ending Total
Sept. 30 Principal Interest Total
II1989 $ 806,084 $ 661 ,291 $ 1,467,375
1990 816,245 613,961 1,430,206
II 1991 858, 192 562,006 1,420, 198
1992 925,000 505,0031,430,003
1993 970,000 443,253 1,413,253
II 1994 1,025,000 376,278 1,401,278
1995 995,000 306,979 1,301,979
1996 980,000 237,629 1,217,629
1997 1,035,000 165,093 1,200,093
II 1998 845,000 96,634 941,634
1999 885,000 32,844 917,844
2000 310,833 559, 167 870,000
I 2001 55,898
27,209 114, 102 170,000
2002 62,791 90,000
2003 24,993 65,007 90,000
II 2004 21,844 63,156 85,000
TOTAL LONG-
TERM DEBT $10,581 ,298 $4,865,194 $15,446,492
IIIssuance of Certificates of Obligation
II During December, 1988, the City issued $4,440,000 of tax and revenue
certificates of obligation. A portion of the proceeds was used to
refinance $1,371 ,286 of 8. 1% short-term borrowings from the City of
II Houston, and accordingly that amount has been classified as long-term
debt at September 30, 1988. The repayment schedule of the new debt
is as follows :
1 Year Ending Total
Sept. 30 Principal Interest Total
II 1989 $ -0- $ 246,666 $ 246,666
1990 35,000 327,422 362,422
1991 125,000 320,722 445,722
II 1992 140,000 309,625 449,625
1993 160,000 297,063 457,063
1994 175,000 283,034 458,034
1995 145,000 269,634 414,634
II 1996 260,000 252,675 512,675
1997 285,000 230, 174 515,174
1998 305,000 208,037 513,037
11 1999 335,000 185,790 520,790
-53-
!!
NOTES TO FINANCIAL STATEMENTS - 17
7. LONG TERM DEBT (continued)
I!
Year Ending Total
Sept. 30 Principal Interest Total
2000 415,000 159, 332 574,332 I!
2001 450,000 128,512 578,512
2002 485,000 94,844 579,844
2003 525,000 58,231 583,231
2004 560,000 19,600 579,600
$ 4,400,000 $3,391,361 $ 7,791,361
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 11
accounts and the defeased bonds are not included in the City' s financial statements.
At September 30, 1988, 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 230,00011
Street Improvement Bonds, Series 1982 1,270,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1964 325,000
11
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
11
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 ordi-
nances. The City has complied with all significant limitations and restrictions.
-54-
1
NOTES TO FINANCIAL STATEMENTS - 18
8. PENSION PLAN
The City provides pension benefits for all of its full-time employees
' through a nontraditional , joint contributory, defined contribution plan in
the state-wide Texas Municipal Retirement System (TMRS) , one of over 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 under-
standing 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
e establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee' s accumulated
contributions. In addition, the City can grant as often as annually
another type of monetary credit referred to as an updated service credit
' which is a theoretical amount which, when added to the employee' s accu-
mulated contributions and the monetary credits for service since the plan
began, would be the total monetary credits and employee contributions accu-
mulated with interst if the current employee contribution rate and City
matching percent had always been in existence and if the employee' s salary
had always been the average of his salary in the last three years. At re-
tirement, the benefit is calculated as if the sum of the employee' s accu-
muated 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 at ages 50-59 with 25 or more years of service or with 28 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.
1
11
-55-
I
I
NOTES TO FINANCIAL STATEMENTS - 19
I
8. PENSION PLAN (continued)
The contribution rate for the employees is 56, 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 annually determined by the actuary. Part of the City contri-
bution rate (the normal cost) is to fund the currently accruing mone-
tary credits, with the other part (the prior service contribution rate)
calculated as the level percent of payroll needed to amortize the un-
funded 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, 1988. The unit credit actuarial
cost method is used for determining the City contribution rate. Contr-
ibutions are made monthly by both the employees and the City. Since
the City needs to know its contribution rate in advance to budget for
it, there is a one-year lag between the actuarial valuation that is the
basis for the rate and the calendar year when the rate goes into effect.
The City' s total payroll in fiscal year 1988 was $2,817,383 and the City' s I
contributions were based on a payroll of $2,516,687. Both the City and the
covered employees made the required contributions, amounting to $85,739
(3.51% of covered payroll for the months in calendar year 1987 and 3.32%
for the months in calendar year 1988) for the City and $125,951 (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 con-
tribution rate for 1988 by 0.05% of payroll. There were no related-party
transactions.
Even though the substance of the City' s plan is not to provide a defined I
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 standarized disclosure measure of the actu-
arial present value of pension benefits, adjusted for the effects of pro-
jected salary increases, estimated to be payable in the future as a result I
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 com-
parisons among public employee pension plans.
I
-56- I
NOTES TO FINANCIAL STATEMENTS - 20
8. PENSION PLAN (continued)
The pension benefit obligation shown below is similar in nature to the
standardized disclosure measure required by GASB 5 for defined benefit
plans except that there is no need to project salary increases since
the benefit credits earned for service to date are not dependent upon
future salaries. The calculations were made as part of the annual
actuarial valuation as of December 31, 1987. Because of the money-
purchase nature of the plan, the interest rate assumption, currently
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 105% of book value as of December 31, 1987.
Pension Benefit Obligation
Annuitants currently receiving benefits $ 23,944
Terminated employees 309, 126
Current employees
Accumulated employee contributions including
allocated invested earnings 639,603
Employer-financed vested 470, 548
Employer-financed nonvested 189,059
Total $1 ,632,280
Net assets Available for Benefits,
at Book Value $1 ,265,501
Unfunded Pension Benefit Obligation $ 366,779
The book value of assets is amortized cost for bonds and original cost
for short-term securities and stocks. The actuarial assumptions used
11 to compute the actuarially determined City contribution rate are the
same as those used to compute the pension benefit obligation. The numbers
above reflect the adoption of changes in the plan since the previous ac-
tuarial valuation, which had the effect of increasing the unfunded pension
benefit obligation by $30, 255.
A copy of the above plan is available for inspection at City Hall.
1
I
11
-57-
1!
NOTES TO FINANCIAL STATEMENTS - 21
11
9. INTERFUND TRANSACTION
Operating transfers during the year ended September 30, 1988 were as
follows:
Amount 1!
Transferred
In (Out)
11
General Fund
Special Revenue Fund $ (7 ,077)
Capital Projects (994,455)
Enterprise Fund 1 ,132,885
131,353
Special Revenue Fund
General Fund 7,07711
Capital Projects Fund
General Fund 994,455
Enterprise Fund (722,680) 11
271 ,775
Enterprise Fund
General Fund (1, 132,885)
Capital Projects Funds 722,680
(410,205)
NET DIFFERENCE $ -0-
10. BLACKHAWK REGIONAL WASTE TREATMENT PLANT
The City has entered into an arrangement with the City of Houston, Harris
County MUD #55, and CDC, Inc. for operating and maintaining a joint waste
treatment plant known as Blackhawk Regional Waste Treatment Plant. All
participants share in the expenses of operation and maintenance based on
their respective percentages for use and fixed costs.
The percentages of ownership based on fund balances at September 30, 1988
are as follows:
11
City of Friendswood 52.71%
City of Houston 15.94%
Harris County MUD #55 20. 28%
CDC, Inc. 11 .07%
100.00%
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) .
-58- 1
1
NOTES TO FINANCIAL STATEMENTS - 22
1
10. BLACKHAWK REGIONAL WASTE TREATMENT PLANT (continued)
' As of September 30, 1988 the following audited financial information was
available from the operator:
' Total assets $205,754
' Total liabilities $205,754
$ -0-
Total revenues $685,718
Total expenses 685,718
Net (Loss) $ -0-
' 11 . SEGMENT INFORMATION
' The Enterprise Fund provides three services financed by user charges:
water, sewer and sanitation. Segment information for the year ended
September 30, 1988 follows:
' Water Sewer Total
Operating revenue $ 2,067, 167 $ 1 ,004,014 $ 3,071 ,181
Operating expense 639,894 886,403 1,526,297
Operating income
before depreciation 1,427,273 117,611 1,544,884
Depreciation expense 297,395 297,395 594,790
Net operating
income (loss) $ 1,129,878 $ (179,784) $ 950,094
Non-operating income
(loss) $ (19,733) $ (19,732) $ (39,465)
Property, plant and
equipment $12,466,888 $12,466,887 $24,933,775
Less allowance for
depreciation 2,213,576 2,213,576 4,427,152
$10,253, 312 $10,253,311 $20,506,623
it -59-
IIIAo
1
1
NOTES TO FINANCIAL STATEMENTS - 23
I
12. RESTATEMENT OF PRIOR PERIOD
Certain account balances for the year ended September 30, 1987 have been
restated to reclassify grant revenues of $92,399 from operating to non-
operating income, and $604,843 from a residual equity transfer to an op-
erating transfer. Compensated absences of $184,025 have also been re-
classified to the General Long-Term Debt Account Group. The effect of
such restatements are as follows:
As As
Reported Restated
Enterprise Fund
Operating Revenues $3,158,980 $3,066,581
Operating Income $1 ,102, 304 $1 ,009,905
Net Income $1 ,095,986 $ 492, 104
General Fund
Fund balance - Undesignated $ 121,241 $ 305,266
13. CONTINGENCIES
The City was involved in several pending lawsuits at September 30, 1988.
A summary of the more significant of these follows:
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
general liability insurance carrier has assumed the defense of said case. '
In Cause No. 87CV2209, Billy Stagner, et al v. City of Friendswood, Texas,
filed in the District Court of Galveston County, Texas, 122nd Judicial
District, the plaintiffs seek to enjoin the City from enforcing certain
zoning regulations regarding signs and, in addition, seek to recover for
damages allegedly resulting from the City' s wrongful denial of permits to
erect certain signs. In the opinion of the City attorney, the City has
meritorious defenses and the City will vigorously contest their case.
1
1
1
-60- 1
11
NOTES TO FINANCIAL STATEMENTS - 24
13. CONTINGENCIES (continued)
In Cause No. 8820657, Trax Construction Co. , Inc. v. City of Friendswood,
' et at, 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, 1988.
' 14. CONTRIBUTED CAPITAL
The following is a schedule of changes in contributed capital for the
' Enterprise Fund:
1988 1987
Contributed capital at beginning of year $14,766,347 $14,766, 347
Add developer tap fees 49,692 -
eCONTRIBUTED CAPITAL AT END OF YEAR $14,816,039 $14,766,347
__
1
I
11
I
I
I
If
-61-
1
1
1
I
I
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
1
I
I
1
I
I
-63-
1
1
1
1
1
1
1
1 GENERAL FUND
11 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
1 activities for which a separate fund has not been
established .
1
1
1
1
1
1
11 -65-
II
11
GENERAL FUND EXHIBIT A-1
11
COMPARATIVE BALANCE SHEETS
1 CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
e
1988 1987
IASSETS
Cash - including certificates of deposit $ 918,093 $ 751,230
IIReceivables - net, where applicable of
allowances for doubtful accounts
II Property taxes 216,035 223,630
Accounts 43,139 26,874
Grantor agencies - 5,087
IIDue from other funds 103,434 44,486
Prepaid expenditures 13,079 6,425
1 TOTAL ASSETS $1,293,780 $1 ,057,732
ILIABILITIES AND FUND BALANCES
LIABILITIES
IIAccounts payable $ 126,602 $ 274,788
IICompensated absences 259,495 128,708
Accrued expenditures 73,955 40,031
IIDeferred revenue 216,035 223,630
Due to other funds 927 104
11 TOTAL LIABILITIES 677,014 667,261
FUND BALANCES
1 Reserved for encumbrances 108,271 78,780
Reserved for prepaid expenditures 13,079 6,425
II
Unreserved
Undesignated 495,416 305,266
1 TOTAL FUND BALANCES 616,766 390,471
TOTAL LIABILITIES AND
1 FUND BALANCES $1,293,780 $1 ,057,732
=sass=====
-67-
II
II
GENERAL FUND EXHIBIT A-2
STATEMENT OF REVENUES - BUDGET AND ACTUAL II
CITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1988
II
1988
VARIANCE-
FAVORABLE 1987 II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES I
Taxes
General Property $3,332,377 $3,337,987 $ 5,610 $3,092,013II
Sales 509,550 509,551 1 517,943
Franchise 369, 156 375,755 6,599 332,432
Other 800 1 ,023 223 996
II
TOTAL TAXES 4,211,883 4,224, 316 12,433 3,943,384
Charges for services 538,545 545, 130 6,585 525,592II
Fines and forfeitures 137,942 142,516 4,574 184,359
91
Licenses and permits 116,026 125,083 9,057 124,913 411
Inter-governmental 48,460 48,985 525 92,901
11
Interest 130,212 147,537 17,325 43,801
Other 52,406 104,136 51,730 44,97811
TOTAL REVENUE $5,235,474 $5, 337 ,703 $102,229 $4,959,928
1
II
II
II
-68 II
-
I
1
GENERAL FUND EXHIBIT A-3
1 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL -
BY FUNCTION
IICITY OF FRIENDSWOOD, TEXAS
IIYear ended September 30, 1988
1988
II
VARIANCE-
FAVORABLE 1987
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
1 General Government
Administration $1 , 179, 157 $1 , 191,742 $(12,585) $1, 109,926
11 Municipal court 74,678 67,724 6,954 64,389
Engineering 159,359 92,714 66,645 80,412
Inspection 84,830 82,077 2,753 93,594
Planning and zoning 31 ,149 30,175 974 31,400
11 Total General Government 1,529, 173 1,464,432 64,741 1,379,721
Public Safety
II Police 1,592,522 1,604,764 (12,242) 1,500,254
Fire and ambulance 317,543 283,798 33,745 302,923
Humane 79,597 56,599 22,998 60,573
I! Emergency management 5,765 4,779 986 6,788
Total Public Safety 1,995,427 1,949,940 45,487 1 ,870,538
Public works
Ir Streets 590,288 621,501 (31,213) 635,281
Drainage 19,267 21,430 (2,163) 71,359
Total Public Works 609,555 642,931 (33,376) 706,640
Sanitation 523,845 523,844 1 519,527
Total Sanitation 523,845 523,844 1 519,527
I
Culture and Recreation
Library 316,653 281,982 34,671 298,060
Parks and recreation 247, 119 247,299 (180) 243,012
I
Community activities 53,400 36,215 17, 185 72,251
Swimming pool 53,413 53,413 -0- 73,496
I
Total Culture and Recreation 670,585 618,909 51,676 686,819
Community Counseling Center 41,000 42,705 (1 ,705) 35,000
Total Community Counseling 41 ,000 42,705 (1 ,705) 35,000
ITOTAL EXPENDITURES
BEFORE TRANSFERS $5,369,585 $5,242,761 $126,824 $5, 198,245
II
II
-69-
11
11
GENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 1 of 4 II
CITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1988
1988IIVARIANCE-
FAVORABLE 1987
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
II
General Government
Administration
Personal services $ 398,901 $ 419,130 $(20,229) $ 290,057II
Supplies 21,656 20,462 1, 194 23,613
Other services and
charges 695,726 686,652 9,074 688,276II
Maintenance 22,392 27,498 (5, 106) 43,428
Capital outlay 40,482 38,000 2,482 64,552
1,179, 157 1,191,742 (12,585) 1,109,926 1
Municipal court
Personal services 70,228 63,924 6,304 59, 172
Supplies 2,700 2,220 480 1,673II
Other services and
charges 1,550 1,430 120 3,172
Maintenance 200 150 50 372
74,678 67,724 6,954 64,389 II
Engineering
Personal services 30,523 27,969 2,554 52,495 II
Supplies 2,490 2,754 (264) 2,958
Other services and
charges 100,691 47, 101 53,590 24, 170II
Maintenance 400 45 355 504
Capital outlay 25,255 14,845 10,410 285
159,359 92,714 66,645 80,412
II
Inspection
Personal services 75,830 76,924 (1 ,094) 76,061
Supplies 3,100 2,307 793 4,007 II
Other services and
charges 4, 100 1, 362 2,738 1,350
Maintenance 1,300 1,044 256 1,067II
Capital outlay 500 440 60 11 ,109
84,830 82,077 2,753 93,594
II
-70 II
-
1
11
GENERAL FUND EXHIBIT A-4
IISTATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 2 of 4
II 1988
VARIANCE-
II BUDGET FAVORABLE 1987
ACTUAL (UNFAVORABLE) ACTUAL
General government (continued)
1 Planning and Zoning
Personal services 29,399 29,471 (72) 28,927
Supplies 600 -0- 600 280
1 Other services and
charges 535 -0- 535 1,779
Maintenance 250 339 (89) 139
II Capital outlay 365 365 -0- 275
31,149 30,175 974 31,400
Total General
Government 1,529, 173 1,464,432 64,741 1,379,721
1 Public Safety
Police Service
I Personal services 1,277,197 1,300,806 (23,609) 1,235,434
Supplies 66,524 72,811 (6,287) 76,552
Other services and
II charges 76, 160 56,719 19,441 59,307
Maintenance 66,330 67,992 (1,662) 67,932
Capital outlay 106,311 106,436 (125) 61 ,029
1,592,522 1,604,764 (12, 242) 1,500,254
11 Fire and Ambulance
Personal services 84,867 87,874 (3,007) 72,916
I Supplies 51,423 3,975 47,448 4,289
Other services and
charges 83,304 188,714 (105,410) 188,017
1 Maintenance 71 , 121 1,740 69,381 2,577
Capital outlay 26,828 1 ,495 25,333 35,124
317,543 283,798 33,745 302,923
II Humane
Personal services 38,875 40, 106 (1 ,231) 31,960
Supplies 5,316 6, 111 (795) 4,049
II Other services and
charges 7,673 7,289 384 10,543
Maintenance 1,733 2,093 (360) 1,835
Capital outlay 26,000 1 ,000 25,000 12,186
II79,597 56,599 22,998 60,573
I
II -71-
11
11
GENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 3 of 4 11
1988II
VARIANCE-
FAVORABLE 1987
BUDGET ACTUAL (UNFAVORABLE) ACTUALI
Public Safety (continued)
Emergency Management
Supplies 1,500 2,064 (564) 204 II
Other services and
charges 100 591 (491) 60
Maintenance 4,165 2,124 2,041 6,524II
5,765 4,779 986 6,788
Total Public Safety 1,995,427 1,949,940 45,487 1,870,538II
Public Works
Streets
Personal services 322,486 342,449 (19,963) 335,492 II
Supplies 88,410 63,038 25,372 93,066
Other services and
charges 108,425 138,295 (29,870) 123, 250al
Maintenance 46,967 56, 340 (9,373) 53,340
Capital outlay 24,000 21,379 2,621 30,133
590,288 621,501 (31,213) 635,281II
Drainage
Supplies 900 58 842 708
11
Other services and
charges -0- 2, 163 (2, 163) -
Maintenance 18, 367 19,209 (842) 13,281
Capital outlay - - - 57,370II
19,267 21 ,430 (2,163) 71 ,359
Total Public Works 609, 555 642,931 (33,376) 706,640II
Sanitation
Contract services 523,845 523,844 1 519,527
II
Total Sanitation 523,845 523,844 1 519,527
Culture and RecreationII
Library
Personal services 184,007 188,747 (4,740) 170,510
Supplies 42,907 41,633 1,274 36,776
II
Other services and
charges 25,820 23, 392 2,428 23,375
Maintenance 5,900 4, 117 1,783 4,530
Capital outlay 58,019 24,093 33,926 62,869II
316,653 281,982 34,671 298,060
-72- 11
II
II
GENERAL FUND EXHIBIT A-4
IISTATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 4 of 4
II 1988
VARIANCE-
, FAVORABLE 1987
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Culture and Recreation (continued)
II Parks and Recreation
Personal services 112,210 117,206 (4,996) 98,024
Supplies 22, 225 21,956 269 19,979
1 Other services and
charges 26,700 25,995 705 31,643
Maintenance 18,000 15,419 2,581 17,811
II Capital outlay 67,984 66,723 1,261 75,555
247, 119 247,299 (180) 243,012
Community Activities
1 Personal services 2,000 1,464 536 24,985
Supplies 25, 500 14,938 10,562 17,737
Other services and
II charges 25,900 19,813 6,087 26,081
Maintenance 1,208
Capital outlay - - - 2,240
53,400 36,215 17,185 72,251
II
Swimming Pool
Personal services 30,463 31,043 (580) 30,724
1 Supplies 8,269 7,376 893 16,855
Other services and
charges 9,246 8,600 646 -
Maintenance 4,605 3,811 794 3,378
li Capital outlay 830 2,583 (1,753) 22,539
53,413 53,413 -0- 73,496
IITotal Culture and Recreation 670,585 618,909 51,676 686,819
Community Counseling Center
11 Other services and
charges 39,850 41,080 (1,230) 35,000
Maintenance 1, 150 842 308
IICapital outlay -0- 783 (783) -
Total Community Counseling 41,000 42,705 (1 ,705) 35,000
1 EXPENDITURES BEFORE
OPERATING TRANSFERS 5,369,585 5,242,761 126,824 5,198,245
1 OPERATING TRANSFERS OUT 1,125,310 1 ,004,132 121,178 42,461
TOTAL $6,494,895 $6,246,893 $248,002 $5,240,706
1 -73-
1
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11
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 Commission Fund
This fund accounts for the City's support of the Fine Arts
Commission (a volunteer organization) and its programs for
the citizens of the City.
1
1
1
-75-
11
II
SPECIAL REVENUE FUNDS EXHIBIT B-1
IICOMBINING BALANCE SHEET
11 CITY OF FRIENDSWOOD, TEXAS
September 30, 1988
1
PARKS AND FINE ARTS TOTAL
IIRECREATION MOWING COMMISSION 1988 1987
ASSETS
1 Cash - including
restricted cash $8,796 $ 6,825 $321 $15,942 $32,515
1 Prepaid expenditures 260 260
Accounts receivables
IILiens 15,333 15,333 15,013
Due from other funds 104
11 TOTAL ASSETS $8,796 $22,418 $321 $31,535 $47,632
IILIABILITIES AND FUND BALANCES
LIABILITIES
IIAccounts payable $ 650
II Deferred revenue
liens receivable $15,333 $15,333 15,013
TOTAL LIABILITIES 15,333 15,333 15,663
IIFUND BALANCES
II Reserved for
encumbrances 2,975
IIReserved for parks $8,796 8,796 10,680
Reserved for programs $321 321 614
1 Unreserved 7,085 7,085 17,700
TOTAL FUND BALANCES 8,796 7,085 321 16,202 31,969
1 TOTAL LIABILITIES AND
FUND BALANCES $8,796 $22,418 $321 $31,535 $47,632
11 -77-
II
I
SPECIAL REVENUE FUNDS EXHIBIT B-2
COMBINING STATEMENT OF REVENUES, EXPENDITURES II
AND CHANGES IN FUND BALANCES
CITY OF FRIENDSWOOD, TEXASI
Year ended September 30, 1988
II
REVENUE PARKS AND FINE ARTS TOTAL
SHARING RECREATION MOWING COMMISSION 1988 1987 II
REVENUES
Intergovernmental $ 1, 114 II
Interest $ 851 $ 716 $ 477 $ 30 $ 2,074 2, 134
Other 1,921 1,921 364
TOTAL REVENUES 851 716 2,398 30 3,995 3,612 II
EXPENDITURES (Current)
General government 15,829 15,829 94,154 11
Public works 7,010 7,010 11,477
Culture and recreation 4,000 4,000 5,706
TOTAL EXPENDITURES 15,829 7,010 4,000 26,839 111,337 II
REVENUES OVER
(UNDER) EXPENDITURES (14,978) 716 (4,612) (3,970) (22,844) (107,725) II
OTHER FINANCING SOURCES
(USES) 11
Operating transfers in 6,000 3,677 9,677 42,461
Operating transfers out (2,600) (2,600)
IITOTAL OTHER FINANCING
SOURCES (USES) (2,600) 6,000 3,677 7,077 42,461
REVENUES AND OTHER II
SOURCES OVER (UNDER)
EXPENDITURES AND
OTHER USES (14,978) (1,884) 1,388 (293) (15,767) (65,264)
Fund balances at
beginning of year 14,978 10,680 5,697 614 31,969 97 ,233 II
FUND BALANCES AT
END OF YEAR $ -0- $ 8,796 $ 7,085 $ 321 $ 16,202 $ 31,969
II
-78 II
-
1
1
SPECIAL REVENUE FUND (REVENUE SHARING) EXHIBIT B-3
11
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
1
1988 1987
ASSETS
Cash $ -0- $15,473
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable 495
FUND BALANCE
Reserved for encumbrances 2,975
Unreserved 12,003
TOTAL FUND BALANCE 14,978
TOTAL LIABILITIES AND
FUND BALANCE $ -0- $15,473
1
1
1
1
1
1
1
-79-
II
SPECIAL REVENUE FUND (REVENUE SHARING) EXHIBIT B-4 11
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUALII
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1988 II
II
1988
VARIANCE-
FAVORABLE 1987II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUESII
Federal revenue sharing $ 1, 114
Interest on investments $ 851 $ 851 $ -0- 1 ,324
TOTAL REVENUES 851 851 -0- 2,438 II
EXPENDITURES
Supplies - - - 2,59311
Maintenance 720 720 - 990
Services 1,893 1,893 - -
Capital outlay 13,216 13,216 - 90,571 II
TOTAL EXPENDITURES 15,829 15,829 -0- 94,154
REVENUES OVER (UNDER) EXPENDITURES (14,978) (14,978) -0- (91,716) II
OTHER FINANCING SOURCES (USES)
Operating transfers in 33,661II
REVENUES OVER (UNDER)
OTHER FINANCING USES (14,978) (14,978) -0- (58,055)
II
Fund balance at beginning of year 14,978 14,978 -0- 73,033
FUND BALANCE AT END OF YEAR $ -0- $ -0- $ -0- $ 14,978 II
II
I
I
-80- II
I
I
SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-5
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
e
1988 1987
ASSETS
eCash - restricted - including
certificate of deposit $8,796 $10,680
TOTAL ASSETS $8,796 $10,680
FUND BALANCES
Reserved for park expenditures $8,796 $10,680
TOTAL FUND BALANCES $8,796 $10,680
1
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11
SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-6
STATEMENT OF REVENUES, EXPENDITURES AND CHANGESII
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXASII
Year ended September 30, 1988
II
1988
VARIANCEII
-
FAVORABLE 1987
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES II
Interest income $ 716 $ 716 $ -0- $ 511
Other revenue - donations 364
II
TOTAL REVENUES 716 716 -0- 875
EXPENDITURESII
Culture and recreation
Supplies 150
Capital outlay 7,704 -0- 7,704
II
TOTAL EXPENDITURES 7 ,704 -0- 7,704 150
REVENUES OVER (UNDER) II
EXPENDITURES (6,988) 716 7,704 725
OTHER FINANCING SOURCES (USES) II
Operating transfers out 2,600 2,600 -0-
REVENUES OVER (UNDER)
EXPENDITURES AND OTHER USES (9,588) (1,884) 7,704 725 II
Fund balances at beginning of year 10,680 10,680 -0- 9,955
II
FUND BALANCES AT END OF YEAR $ 1,092 $ 8,796 $7,704 $10,680
I
II
II
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1
SPECIAL REVENUE FUND (MOWING) EXHIBIT B-7
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
1
1988 1987
ASSETS
Cash - including restricted cash $ 6,825 $ 5,748
Prepaid expenses 260
Accounts receivable - liens 15,333 15,013
TOTAL ASSETS $22,418 $20,761
LIABILITIES AND FUND BALANCES y -
LIABILITIES
Accounts payable $ 155
Deferred liens receivable $15,333 15,013
Due to other funds 104
TOTAL LIABILITIES 15,333 15,272
FUND BALANCES
Unreserved 7,085 5,489
11 TOTAL LIABILITIES AND
FUND BALANCES $22,418 $20,761
1
1
1
1
1
-83-
11
SPECIAL REVENUE FUND (MOWING) EXHIBIT B-8
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1988
1988
VARIANCE-
FAVORABLE 1987
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES
Other revenue $ 1,611 $ 1,921 $ 310
Interest 477 477 - $ 460
TOTAL REVENUES 2,088 2,398 310 460
EXPENDITURES
Public works
Other services and charges 7,009 7,010 (1) 11,685
REVENUES OVER (UNDER)
EXPENDITURES (4,921) (4,612) 309 (11,225)
OTHER FINANCING SOURCES
Operating transfers in 6,000 6,000 - 4,000
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES 1,079 1,388 309 (7,225)
Fund balance at beginning of year 5,697 5,697 -0- 12,92211
FUND BALANCE AT END OF YEAR $ 6,776 $ 7,085 $ 309 $ 5,697
11
-84- 1
1
1
SPECIAL REVENUE FUND (FINE ARTS COMMISSION) EXHIBIT B-9
11
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
1
1988 1987
ASSETS
Cash - restricted $321 $ 614
TOTAL ASSETS $321 $ 614
FUND BALANCES
Reserved for program expenditures $321 $ 614
TOTAL FUND BALANCES $321 $ 614
11
1
1
1
1
1
1
-85-
11
II
SPECIAL REVENUE FUND (FINE ARTS COMMISSION) EXHIBIT B-10
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 11
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXASII
Year ended September 30, 1988
II
1988
II
VARIANCE-
FAVORABLE 1987
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
II
REVENUES
Interest $ 30 $ 30 $ -0- $ 47
TOTAL REVENUES 30 30 -0- 47 II
EXPENDITURES
Programs 4,000 4,000 -0- 5,556 II
REVENUES OVER (UNDER)
EXPENDITURES (3,970) (3,970) -0- (5,509) II
OTHER FINANCING SOURCES
Operating transfers in 3,677 3,677 -0- 4,800II
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES (293) (293) -0- (709)
11
Fund balance at beginning of year 614 614 -0- 1 ,323
FUND BALANCE AT END OF YEAR $ 321 $ 321 $ -0- $ 614II
II
II
II
11
-86 II
-
1
1
e
e
1
1
1
DEBT SERVICE FUND
' This fund is used to account for the accumulation
of resources and for the payment of principal and
interest on general long-term debt of the City.
11
I
1
1
e
1
e
1
-87-
I
DEBT SERVICE FUND EXHIBIT C-1
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
1
1988 1987
1
ASSETS
Cash - including certificate of deposit $325,894 $546,324
Taxes receivable 85,719 94,811
TOTAL ASSETS $411,613 $641, 135
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 2,840
Due to other funds 24,486
Deferred revenue $ 85,719 94,811
TOTAL LIABILITIES 85,719 122, 137
FUND BALANCES
Unreserved, designated for debt service 325,894 518,998
TOTAL FUND BALANCES 325,894 518,998
TOTAL LIABILITIES AND FUND BALANCES $411,613 $641,135
1
I
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e
1
-89-
IP
1!
DEBT SERVICE FUND EXHIBIT C-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
mi
CHANGES IN FUND BALANCES
CITY OF FRIENDSWOOD, TEXAS11
Years ended September 30, 1988 and 1987
11
1988 1987
11
REVENUES
Taxes $1, 104,553 $1 ,329,33011
Interest 47,036 45,076
TOTAL REVENUES 1, 151,589 1,374,406
11
EXPENDITURES
Principal retirement 690, 323 620,386
Interest and fiscal charges 654,370 694,328
TOTAL EXPENDITURES 1 ,344,693 1,314,714
REVENUES OVER
(UNDER) EXPENDITURES (193, 104) 59,692
Fund balances at beginning of
year 518,998 459,306
FUND BALANCES
AT END OF YEAR $ 325,894 $ 518,998
I
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11
-90- 1
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1
1
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1
1
1
1
' 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
1
1
1
1
1
1
1
-9 1-
I
1
CAPITAL PROJECTS FUND EXHIBIT D-1
IICOMPARATIVE BALANCE SHEETS
IICITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
II
1988 1987
II
ASSETS
ICash - including certificates of deposit $177,913 $ 483,378
IIAccounts receivable - State grants 20,000 20,000
Prepaid expenses 4,335
' Due from other funds 150,053 608,623
TOTAL ASSETS $352,301 $1 ,112,001
1
LIABILITIES AND FUND BALANCES
IILIABILITIES
Accounts payable $ 29,241 $ 28,856
Due to other funds 103,434 20,000
IITOTAL LIABILITIES 132,675 48,856
II FUND BALANCES
Reserved for encumbrances 219,626 385, 144
Designated for construction 678,008
219,626 1 ,063,145
IITOTAL LIABILITIES AND FUND BALANCES $352,301 $1 , 112,001
I
II
II
1 -93-
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1
CAPITAL PROJECTS FUND EXHIBIT D-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND 1
CHANGES IN FUND BALANCES
CITY OF FRIENDSWOOD, TEXAS 1
Years ended September 30, 1988 and 1987
1988 1987 1
REVENUES
Interest $ 12,991 $ 11,303
TOTAL REVENUES 12,991 11,303
EXPENDITURES
Capital outlay 1 ,128,285 858,032
REVENUES UNDER
EXPENDITURES (1 ,115,294) (846,729)
OTHER FINANCING SOURCES
Operating transfers in 994,45511
Operating transfers out (772,680)
REVENUES AND OTHER SOURCES
UNDER EXPENDITURES (843,519) (846,729)
Fund balances (deficit) at beginning of
year - as restated 1,063,145 (203,642)
Add residual equity transfer 2,113,516
FUND BALANCES
AT END OF YEAR $ 219,626 $ 1,063, 145
1
1
1
1
1
-94- 1
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1
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11
11
1 ENTERPRISE FUND
The Enterprise Fund is established to account for
operations which are intended to be self-supporting
' through user charges. The City of Friendswood
operates the water and sewer system on this basis.
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-95-
I
I
ENTERPRISE FUND (WATER AND SEWER)
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
i
1987
1988 (restated)
11
ASSETS
CURRENT ASSETS
Cash - including certificates of deposit $ 192,085 $ 191,793
Accounts receivable - less allowance
for uncollectibles 314,425 288, 189
Accrued interest 1,776 4,056
Due from other funds 927
TOTAL CURRENT ASSETS 509,213 484,038
RESTRICTED ASSETS 1
Cash - including certificates of deposit 208,959 201,335
Blackhawk operating fund equity 109,279 _ 109,279
TOTAL RESTRICTED ASSETS 318,238 310,614
PROPERTY, PLANT AND EQUIPMENT - at cost
Land 165,0991 135,387
Buildings, improvements, and equipment 22,343,085 22,280,787
Construction in progress 2,425,591✓ 667,673 \
24,933,775 23,083,847
Less allowance for depreciation 4,427,1524 3,832,362J
TOTAL PROPERTY, PLANT AND EQUIPMENT 20,506,623 19,251 ,485
I
11
1
1
TOTAL ASSETS $21,334,074 $20,046, 137
-96- 11
II
II
II
EXHIBIT E-1
II
II
II
1987
1988 (restated)
11 LIABILITIES AND FUND EQUITY
LIABILITIES
I
Current liabilities (payable from
current assets)
Accounts payable $ 83,379 $ 159,928
II Compensated absences 50,938 34,445
Accrued expenses 23,805 7,334
Due to other funds 150,053r 608,623
308, 175 810,330
Current liabilities (payable from
restricted assets)
I
Accrued interest 5,523 6, 148
Current portion of revenue bonds 125,000 125,000
Deposits 53,9251/ 59,610
184,448 190,758
II
Long—term liabilities
Revenue bonds — (less
1 current portion) 995,000 1, 120,000
Note payable 1,371 ,286 —
2,366,286 1 ,120,000
ITOTAL LIABILITIES 2,858,909 2, 121,088
FUND EQUITY
Contributed capital —
IIMunicipality 14,766,347 14,766,347
Developers 49,692
14,816,039 14,766, 347 va,Oi-s-"' 1-,0
IRetained earnings
Reserved for revenue bond retirement 333,959 31-Fr;4t4 ' ',;:, ;Lo
II Reserved for construction 1,696,573 686;155 �,
Unreserved 1 ,628,594 2_,1A4,.033 `
TOTAL RETAINED EARNINGS 3,659, 126 3,158,702
11
TOTAL FUND EQUITY 18,475,165 17,925,049
11 TOTAL LIABILITIES AND FUND EQUITY $21,334,074 $20,046, 137
—97—
I
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-2 11
STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL I
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1988II
II
1988
VARIANCE- 1987
II
FAVORABLE ACTUAL
BUDGET ACTUAL (UNFAVORABLE) (RESTATED)
Operating revenues I
Water and sewer charges $ 2,944,190 $ 2,940,726 $(3,464) $2,875,209
Water and sewer tap fees 112,750 112,751 1 176,069
Fees and penalties 7,630 7,600 (30) 13,998 II
Other income 6,677 10,104 3,427 1,305
3,071,247 3,071, 181 (66) 3,066,581
Operating expenses before 1
depreciation -
See Exhibit E-3 1 ,533,012 1 ,526,297 6,715 1,487 ,668
OPERATING INCOME II
BEFORE DEPRECIATION 1,538, 235 1,544,884 6,649 1, 578,913
Depreciation expense 594,790 594,790 -0- 569,008 II
OPERATING INCOME 943,445 950,094 6,649 1,009,905 II
Non-operating income (expense)
Grant revenues 92,399
Interest on investments 28,480 30,255 1,775 71,248 II
Interest expense (70,524) (69,720) 804 (77 ,566)
(42,044) (39,465) 2,579 86,081
INCOME BEFORE OPERATING 1
TRANSFERS 901,401 910,629 9,228 1,095 ,986
Operating transfers in 722,680 722,680 -0II
-
Operating transfers out (1 ,132,885) (1 ,132,885) -0- (604,843)
NET INCOME $ 491, 196 $ 500,424 $ 9,228 $ 491, 143 II
1
II
-98 II
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It
II
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-3
IISTATEMENT OF OPERATING EXPENSES - BUDGET AND ACTUAL
IICITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1988
II
I/ 1988
VARIANCE-
FAVORABLE 1987
IIBUDGET ACTUAL (UNFAVORABLE) ACTUAL
Water
1 Personal services Supplies $ 281,999 $ 274,406 $ 7,593 $ 235,335
52,513 60,339 (7,826) 66,472
Other services and charges 198,328 211,512 (13, 184) 174,675
Maintenance 85,475 73,249 12,226 112,897
I
618,315 619,506 (1 , 191) 589,379
Sewer
II Personal services 220,497 195,588 24,909 193,949
Supplies 17,237 18,956 (1,719) 22,081
Other services and charges 150,408 137,800 12,608 140,007
Maintenance 86,412 68, 182 18,230 108,466
IIWaste disposal fees 440,143 486,265 (46,122) 433,786
914,697 906,791 7,906 898,289
1 Operating expenses before
depreciation $1 ,533,012 $1,526,297 $ 6, 715 $1,487,668
1
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II
11
II -99-
I
I
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-4
SCHEDULE OF REVENUE BONDS PAYABLE
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988
DATE OF OUTSTANDING
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30,
DESCRIPTION RATE ISSUE ISSUE MATURITY 1988
11
Waterworks and Sanitary
Sewer System Revenue
Bonds, Series 1969 6. 50 % 5-1-69 $340,000 3-1-90 $ 55,000
6. 125 5-1-69 360,000 3-1-99 360,000
415,000
Waterworks and Sanitary 1
Sewer System Junior Lien
Revenue Bonds, 1•
Series 1979 5.50 6-1-79 155,000 3-1-92 155,000
5.50 6-1-79 115,000 3-1-93 115,000
5.50 6-1-79 235,000 3-1-96 235,000
6.25 6-1-79 100,000 3-1-89 50,000
6. 50 6-1-79 150,000 3-1-92 150,000
705,000
TOTAL REVENUE BONDS PAYABLE $1 , 120,000 II
I/
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II
ENTERPRISE FUND (WATER AND SEWER FUND)
REVENUE BONDS PAYABLE - BY MATURITY DATE 11
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1988
II
YEAR ENDING TOTAL
SEPT. 30 PRINCIPAL INTEREST TOTAL
II
1989 $ 125,000 $ 62,525 $ 187,525
1990 130,000 54,800 184,800 II1991 130,000 46,906 176,906
1992 135,000 38,916 173,916
1993 135,000 31,022 166,022
1994 135,000 23,378 158, 378
1995 140,000 15,581 155,581 II
1996 45,000 10,244 55,244
1997 45,000 7,503 52,503
1998 50,000 4,594 54,594II
1999 50,000 1,531 51,531
$1 , 120,000 $297,000 $1 ,417,000 I
1
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-102- 1
I
II
EXHIBIT E-5
II
I
REVENUE BONDS
WATERWORKS AND WATERWORKS AND
II SANITARY SEWER SYSTEM SANITARY SEWER SYSTEM
REVENUE BONDS JUNIOR LIEN REVENUE BONDS
SERIES 1969 SERIES 1979
I
PRINCIPAL INTEREST PRINCIPAL INTEREST
$ 25,000 $ 24,813 $100,000 $ 37,712
I
30,000 23,025 100,000 31,775
30,000 21, 131 100,000 25,775
35,000 19, 141 100,000 19,775
35,000 16,997 100,000 14,025
II
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
1 $415,000 $156,250 $705,000 $140,750
1
II
1
1
1
II
1
II
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1
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-6
NOTES PAYABLE I
CITY OF FRIENDSWOOD, TEXAS
II
September 30, 1988
I
INTEREST OUTSTANDING AT
DESCRIPTION RATE TERMS SEPTEMBER 30, 1988
II
Notes Payable - Interim construction
City of Houston 8. 1% financing $1 ,371,286
11
During December, 1988, the City issued $4,400,000 of tax and revenue certificates
of obligation. A portion of the proceeds of the bond issue was used to refinance
the $1 ,371,286 of 8. 1% short-term borrowings from the City of Houston; and accordII
-
ingly that amount has been classified as long-term debt at September 30, 1988.
The repayment schedule of the new bond issue is as follows:
11
Year Ending TOTAL
Sept. 30 Principal Interest Total
11
1989 $ -0- $ 246, 666 $ 246,666
1990 35,000 327,422 362,422
1991 125,000 320,722 445,722II
1992 140,000 309,625 449,625
1993 160,000 297,063 457,063
1994 175,000 283,034 458,034
1995 145,000 269,634 414,634 11
1996 260,000 252,675 512,675
1997 285,000 230, 174 515, 174
1998 305,000 208,037 513,037II
1999 335,000 185,790 520,790
2000 415,000 159,332 574,332
2001 450,000 128,512 578,512
2002 485,000 94,844 579,844 II
2003 525,000 58, 231 583,231
2004 560,000 19,600 579,600
II
$4,400,000 $3,391,361 $7,791 ,361
II
II
-104 II
-
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1
i
' TRUST FUND
This fund has been established by the City to account
for assets held by a governmental unit in a trustee
capacity or as an agent for individuals or other funds.
I
11
I
1
I
I
—105—
1
1
eTRUST FUND (NON—EXPENDABLE TRUST) EXHIBIT F-1
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
1
1988 1987
ASSETS
Restricted assets
Cash $21,268 $19,896
' Land 57,200 57,200
TOTAL ASSETS $78,468 $77,096
1 FUND BALANCES
Reserved for endowments $67,200 $67,200
Unreserved/undesignated 11 ,268 9,896
11 TOTAL FUND BALANCES $78,468 $77,096
1
I
1
1
—107—
I
I
TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-2
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND 1
CHANGES IN FUND BALANCES
CITY OF FRIENDSWOOD, TEXAS 1
Years ended September 30, 1988 and 1987
1988 1987
REVENUE S
Interest $ 1 ,372 $ 961 1
TOTAL REVENUES 1,372 961
Fund balances at beginning of year 77 ,096 76,135 1
FUND BALANCES AT END OF YEAR $78,468 $77,096 I
r
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1
I
-108- 1
1
1
I
11
I
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.
11
11
11
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1
' —109—
GENERAL FIXED ASSETS EXHIBIT G-1
SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
eCITY OF FRIENDSWOOD, TEXAS
September 30, 1988 and 1987
1988 1987
General fixed assets
Land $ 991 ,203 $ 965, 134
Buildings 1,917,490 1,733,218
Improvements 9,023,876 7,611,924
Equipment 2,303, 175 2, 138, 160
' Construction in progress 478,780 847,722
TOTAL GENERAL FIXED ASSETS $14,714,524 $13,296, 158
Investment in General Fixed Assets from
Capital Projects Funds
' General obligation bonds $ 5,991 ,019 $ 4,572,653
Time warrants and certificates of obligation 244,500 244,500
Federal and State grants 1, 196,016 1, 196,016
' Municipality 6,478,448 6,478,448
Donations 804,541 804,541
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $14,714,524 $13,296, 158
11
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11 -111-
II
II
GENERAL FIXED ASSETS EXHIBIT G-2
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY I
CITY OF FRIENDSWOOD, TEXAS
li
September 30, 1988
CONSTRUCTION II
FUNCTION AND IN
ACTIVITY LAND BUILDINGS IMPROVEMENTS EQUIPMENT PROGRESS TOTAL II
General Government
Inspections $ 16,289 $ 16,289
City hall $ 36,524 $ 326,733 $ 17 ,031 512,913 893,201 '
36,524 326,733 17,031 529,202 909,490
Public Safety
Police - 76, 591 13, 127 497, 165 586,883 II
Fire 18,000 230,677 - 702,793 951,470
Animal Shelter - 1,389 - 17,870 19,259
Civil defense - - - 11,426 11,426 ,
18,000 308,657 13, 127 1,229,254 1,569, 038
Public WorksII
Street and
drainage 102,002 188,589 8, 343,953 150,842 8,785, 386
Sanitation 3,500 - 254,997 50,529 309,026 II
105,502 188,589 8,598,950 201,371 9,094,412
Community Services
Library 28,838 343,357 12,383 153,792 538,370 II
Parks and
recreation 802,339 84,504 380,632 176,023 1,443,498
Swimming pool - 665,650 1 ,753 13,533 680,936 II
831, 177 1 ,093,511 394,768 343,348 2,662,804
Construction in
progress $478,780 478,780 II
478,780 478,780
TOTAL GENERAL 1
FIXED ASSETS
ALLOCATED TO
FUNCTIONS $991 ,203 $1,917,490 $9,023,876 $2,303, 175 $478,780 $14,714, 524 II
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1
II
I GENERAL
FIXED ASSETS EXHIBIT G-3
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
IICITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1988
I BALANCE AT BALANCE AT
SEPT. 30, 1987 ADDITIONS RETIREMENTS SEPT. 30, 1988
II General Government
Inspections $ 15,484 $ 805 $ 16,289
City hall 757,986 135,215 893,201
' 773,470 136,020 909,490
Public Safety
Police 489, 206 97,677 586,883
II Fire 942,067 9,403 951,470
Animal shelter 18,259 1,000 19,259
Civil defense 11 ,426 - 11,426
I
1,460,958 108,080 1,569,038
Public Works
1 Street and
drainage 7, 339,200 1,446,186 8,785,386
Sanitation 309,026 309,026
7,648, 226 1,446, 186 9,094,412
' Community services
Library 514, 277 24,093 538,370
1 Parks, recreation
and cemetery 1, 373, 153 70,346 1,443,499
Swimming pool 678,352 2,583 680,935
' 2,565,782 97,022 2,662,804
Construction in
progress 847,722 55,059 $ 424,001 478,780
IITOTAL $13, 296, 158 $1,842, 367 $ 424,001 $14,714, 524
II
II
II
II -113-
1
11
' GENERAL LONG-TERM DEBT ACCOUNT GROUP
The purpose of this account group is to account for
general obligation indebtedness to be retired primarily
' from future assessment of property taxes.
11
11
-115-
I
1
GENERAL LONG-TERM DEBT
STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT I
CITY OF FRIENDSWOOD, TEXAS I
Year ended September 30, 1988
BALANCE AT
OCT. 1,
1987
Amount available in Debt Service Fund $ 518,998
11
Amount to be provided for retirement
of long-term debt 9,816,649
TOTAL AVAILABLE AND
TO BE PROVIDED $10,335,647
I
Classification of debt
Lease obligation $ 85,84411
Compensated absences 184,025
General obligation bonds 10,065,778
TOTAL GENERAL LONG-TERM DEBT $10,335,647
11
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-116 11
-
1
1
EXHIBIT H-1
DEBT SERVICE BALANCE AT
' OBLIGATIONS FUND SEPT. 30,
RETIRED OPERATIONS 1988
' $(193, 104) $ 325,894
' $690,323 193,104 9,319,430
$690,323 $ -0- $9,645,324
1
' $ 30,323 $ 55,521
184,025
660,000 9,405,778
' $690, 323 $9,645, 324
1
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II
II
GENERAL LONG-TERM DEBT EXHIBIT H-2
SCHEDULE OF GENERAL LONG-TERM DEBT II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 II
DATE OF OUTSTANDING II
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30,
DESCRIPTION RATE ISSUE ISSUE MATURITY 1988
II
Refunding bonds
Series 1986 5.50 08-15-86 655,000 03-01-89 $ 655,000
6.00 08-15-86 670,000 03-01-90 670,000 II
6.25 08-15-86 715,000 03-01-91 715,000
6.50 08-15-86 790,000 03-01-92 790,000
6.75 08-15-86 835,000 03-01-93 835,000 11
7.00 08-15-86 890,000 03-01-94 890,000
7. 10 08-15-86 855,000 03-01-95 855,000
7. 20 08-15-86 935,000 03-01-96 935,000 II
7. 30 08-15-86 990,000 03-01-97 990,000
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 55,989 03-01-01 55, 898
7.85 08-18-86 27, 209 03-01-02 27,209
7.90 08-18-86 24,993 03-01-03 24,993
II
7.90 08-18-86 21,844 03-01-04 21,844
TOTAL BONDS PAYABLE $ 9,405,778 II
Capital Leases:
Radios 10.75 09-15-85 24,000 12-15-90 12,394
IBM computer - police 9.50 01-01-87 40, 569 01-01-91 31,794 II
Dump truck 0.00 06-08-87 22,667 01-03-89 11,333
TOTAL CAPITAL LEASES 55,521 11
TOTAL GENERAL LONG-TERM DEBT $ 9,461 ,299
1
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11
I
GENERAL LONG-TERM DEBT
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 1 of 2 II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 II
II
II
YEAR ENDING TOTAL 1
SEPT. 30 PRINCIPAL INTEREST TOTAL
1989 $ 681,084 $ 598,766 $ 1,279,850
1990 686,245 559, 161 1,245,406
11
1991 728, 192 515, 100 1,243,292
1992 790,000 466,087 1,256,087
1993 835,000 412,231 1,247, 231
1994 890,000 352,900 1,242,900II
1995 855,000 291,398 1, 146, 398
1996 935,000 227, 385 1, 162,385
1997 990,000 157,590 1, 147,590II
1998 795,000 92,040 887,040
1999 835,000 31,313 866,313
2000 310,833 559, 167 870,000
II
2001 55,898 114, 102 170,000
2002 27,209 62,791 90,000
2003 24,993 65,007 90,000
2004 21,844 63,156 85,00011
TOTAL GENERAL
LONG-TERM DEBT $ 9,461,298 $4,568, 194 $14,029,492 1
1
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-120 11
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II
II
EXHIBIT H-3
1
I
II
REFUNDING BONDS - SERIES 1986
II
CURRENT INTEREST BONDS COMPOUND INTEREST BONDS
I
INTEREST INTEREST
RATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST TOTAL
I
5.50 $ 655,000 $ 594,662 $ 1,249,662
6.00 670,000 556,550 1,226,550
6.25 715,000 514, 106 1,229, 106
6.50 790,000 466,087 1,256,087
II 6.75 835,000 412,231 1,247,231
7.00 890,000 352,900 1,242,900
7. 10 855,000 291 ,398 1,146,398
II
7.20 935,000 227,385 1,162,385
7. 30 990,000 157,590 1,147,590
7.40 795,000 92,040 887,040
7.50 835,000 31,313 866,313
II
7.75 $310,833 $559, 167 870,000
7.80 55,898 114, 102 170,000
7.85 27,209 62,791 90,000
' 7.90 24,993 65,007 90,000
7.90 21,844 63,156 85,000
I $8,965,000 $3,696,262 $440,777 $864, 223 $13,966,262
II
II
II
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II -121-
1
11
GENERAL LONG-TERM DEBT
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 2 of 2
1
1
CAPITAL LEASES
e
YEAR RADIOS
ENDING INTEREST
SEPT. 30 RATE PRINCIPAL INTEREST
1989 10.75 $ 5, 142 $1,084
1990 10.75 5,723 503
1991 10.75 1,529 27
1992
1993
1994
1995
1996
199711 1998
1999
2000
2001
2002
2003
2004
$12,394 $1,614
11
11
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-122- i�
1
' EXHIBIT H-3
1
' CAPITAL LEASES TOTAL CAPITAL LEASES
NET PRESENT
IBM COMPUTER - POLICE DUMP TRUCK VALUE OF AMOUNT
' INTEREST MINIMUM REPRESENTING
RATE PRINCIPAL INTEREST PRINCIPAL LEASE PAYMENTS INTEREST TOTAL
' 9.50 $ 9,609 $3,020 $11,333 $26,084 $ 4, 104
2,611 $30, 188
9.50 10,522 2, 108 16,245 18,856
9. 50 11,663 967 13, 192 994 14, 186
11
' $31,794 $6,095 $11,333 $55,521 $ 7,709 $63,230
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GENERAL LONG-TERM DEBT EXHIBIT H-4
COMPOUND BONDS - ACCRUED INTEREST SCHEDULE 1
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 II
1
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YEAR ENDING $310,834 $55,898 $27,209 $24,993 $21,844
SEPT. 30 @ 7 .75% @ 7 .80% @ 7.85% @ 7 .90% @ 7.90% II
1988 $ 26,523 $ 4,811 $ 2,362 $ 2, 188 $ 1,915
1989 28,576 5, 186 2,547 2,361 2,066 II
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 2,596
1993 38,520 7,003 3,446 3,200 2,801
1994 41,506 7,549 3,717 3,453 3,022
1995 44,723 8, 138 4,008 3,725 3,261
1996 48, 188 8,773 4,323 4,020 3,518II
1997 51 ,923 9,457 4,662 4,337 3,797
1998 55,948 10, 195 5,028 4,680 4,096
1999 60,282 10,990 5,423 5,050 4,420
2000 31,872 11,847 5,849 5,449 4,769 II
2001 6,266 6,297 5,879 5, 146
2002 3,348 6,344 5,553
2003 3,357 5,991II
2004 3,171
$527,782 $108,327 $59,915 $62,304 $60, 758II
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SCHEDULES
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' COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS EXHIBIT I-1
CITY OF FRIENDSWOOD, TEXAS
' September 30, 1988
' ACCOUNT INTEREST MATURITY
DESCRIPTION NUMBERS RATE DATE AMOUNT
' Certificates of Deposit
Texas Commerce Bank,
' Friendswood, Texas 4566 6.78% 11-01-88 $ 25,000
4682 7.00 10-10-88 350,000
4705 6.61 10-17-88 300,000
' 4706 7.07 10-24-88 350,000
4707 7.33 11-07-88 350,000
' 4708 7.07 10-31-88 350,000
TOTAL ALL FUNDS $1,725,000
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SCHEDULE OF DELINQUENT TAXES RECEIVABLE EXHIBIT I-2
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1988
I
DELINQUENT TAXES RECEIVABLE
GENERAL DEBT SERVICE
YEAR FUND FUND TOTAL
1987 $ 76,965 $26,035 $103,000 I
1986 42,143 19,579 61,722
1985 30,269 11,095 41,364
1984 22,053 9,295 31,348
1983 26,503 11,522 38,025
1982 7,618 3,961 11,579
1981 3,335 1,540 4,875
1980 2,624 1,205 3,829
1979 1,877 530 2,407
1978 1,206 299 1,505
1977 486 205 691
1976 586 316 902
1975 337 128 465
1974 33 9 42
TOTAL DELINQUENT
TAXES RECEIVABLE $216,035 $85,719 $301,754
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STATISTICAL SECTION
' (The City has not had any special assessments
in the last ten fiscal years.)
(The City has no legal debt margin.)
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GENERAL REVENUE - BY SOURCE
CITY OF FRIENDSWOOD, TEXAS I
Last Ten Fiscal Years
II
CHARGES FOR LICENSES II
FISCAL SERVICE FINES AND AND INTER-
YEAR TAXES (SANITATION) FORFEITURES PERMITS GOVERNMENTAL
11
1978-79 $1,862,738 $212,093 $ 69, 228 $ 54,724 $154,370
1979-80 1,780,798 268,481 103,447 43,399 220,470 1
1980-81 2,416, 105 275,870 129,824 49,580 143,760
1981-82 2, 188,070 289,034 111,975 75,292 311,695 II
1982-83 2,602,930 344, 178 102,609 180,972 97, 271
II
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 1
1985-86 (2) 4,608,491 470, 177 120, 195 148,740 124, 114
1986-87 5,272,714 525, 592 184, 359 124,913 94,015 II
1987-88 5, 328,869 545, 130 142, 516 125,083 48,985
II
Includes the General, Special Revenue and Debt Service Funds.
(1) Includes annexation of the Wedgwood subdivison (Clearwoods Improvement
District during the previous year.
(2) Includes annexation of the Forest Bend subdivision (WCID 108) during the year.
II
Source - Accounting records of the City.
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EXHIBIT I
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INTEREST
1 INCOME OTHER TOTAL
$ 67,775 $ 43,771 $2,464,699
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
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GENERAL GOVERNMENTAL EXPENDITURES - BY FUNCTION
CITY OF FRIENDSWOOD, TEXAS I
Last Ten Fiscal Years
1
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CULTURE
FISCAL GENERAL PUBLIC PUBLIC AND
YEAR GOVERNMENT SAFETY WORKS SANITATION RECREATIONII
1978-79 $ 428,395 $ 626,906 $292, 116 $271,220 $391 ,512
1979-80 462,461 798,798 329,713 261,471 208,473 1
1980-81 626, 120 754,259 452,316 292,896 208,292
II
1981-82 680,792 856,648 474,575 288,813 299,028
1982-83 714,608 1, 188,214 596,633 336,635 314,853 1
1983-84 (1) 812,289 1, 311,923 958, 188 436, 299 390, 361
1984-85 954,086 1,388,760 523,653 512,504 373,412 1
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
1987-88 1,480,261 1,949,940 649,941 523,844 622,909II
Includes the General, Special Revenue and Debt Service Funds.
(1) Includes annexation of the Wedgewood subdivision (Clearwoods II
Improvement District) during the year.
(2) Includes annexation of the Forest Bend subdivion (WCID 108) 11
during the year.
Source - Accounting records of the City. il
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EXHIBIT II
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COMMUNITY
COUNCILING DEBT
CENTER SERVICE TOTAL
$ 8,047 $ 272,800 $2,290,996
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
42,705 1, 344,693 6,614,293
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TAX REVENUES - BY SOURCE EXHIBIT III
CITY OF FRIENDSWOOD, TEXAS I
Last Ten Fiscal Years
I
BUSINESS 1
GENERAL GROSS INDUSTRIAL
FISCAL TOTAL PROPERTY GENERAL RECEIPTS DISTRICT BEVERAGE
YEAR TAXES TAXES SALES TAX TAXES TAXES* TAXI
1978-79 $1,862,738 $1, 128,611 $191,789 $ 92,446 $446,302 $3,590
1979-80 1,780,798 1, 206,271 275,675 107,731 186,678 4,443 II
1980-81 2,416, 105 1,446,071 415,228 178,789 371,622 4,395
1981-82 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 1
1983-84 3, 285,018 2,727,942 351,431 204, 275 1,370
1984-85 (1) 4,018,210 3,319, 149 424,498 273, 184 1,379 II
1985-86 4,608,491 3,826, 171 483,629 297, 585 1, 106
1986-87 (2) 5,272,714 4,421, 343 517,943 332,432 996 II
1987-88 5, 328,869 4,442,540 509,551 375,755 1,023 1
*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.
II
(1) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the previous year.
II
(2) Includes annexation of the Forest Bend subdivision (WCID 108) during
the previous year.
Source - Accounting records of the City. II
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PROPERTY TAX LEVIES AND COLLECTIONS
CITY OF FRIENDSWOOD, TEXAS I
Last Ten Fiscal Years
II
II
PERCENT
FISCAL TAX TAX TOTAL CURRENT TAX OF LEVY
YEAR YEAR RATE TAX LEVY COLLECTIONS COLLECTEDII
1978-79 1978 $1 . 15 $1, 147,958 $1 ,105,811 96.33
1979-80 1979 1. 15 1,231,876 1, 175,513 95.42 II
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 1
1983-84 1983 0.720 2,491,879 2,400,000 96.32
1984-85 (2) 1984 0. 720 3,348,234 3,224,304 96.30 11
1985-86 1985 0.7095 3,870,699 3,680,672 95. 10
11
1986-87 (3) 1986 0.695 4, 369,541 4,245,550 97. 16
1987-88 1987 0.695 4, 351,363 4,248,363 97.63 1
(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.
II
(3) Includes annexation of the Forest Bend subdivision (WCID 108) during
theprevious year.
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Source Tax assessor/collector's records. II
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EXHIBIT IV
11
II
II TOTAL OUTSTANDING
COLLECTION DELINQUENT
AS A TAXES AS A
DELINQUENT TOTAL PERCENT OF OUTSTANDING PERCENT OF
II TAX TAX CURRENT DELINQUENT CURRENT
COLLECTIONS COLLECTIONS TAX LEVY TAXES LEVY
II $22,800 $1, 128,611 98. 31 $ 79,839 6.95
30,758 1,206,271 97 .92 102,969 8.36
11 51, 301 1,446,071 99. 11 135,756 9.30
67,643 1,599,521 100.82 142,473 8.98
II123,964 2, 113,715 102. 17 123,882 5.99
11 50,915 2,450,915 98.36 169,380 6.80
55,528 3, 279,832 97.96 232,879 6.96
II112,025 3,792,697 97.98 328,281 8.48
133,831 4,379, 381 100.23 318,441 7.29
11 119,686 4,368,049 100.38 301 ,754 6.93
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ASSESSED AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
11
CITY OF FRIENDSWOOD,TEXAS
Last Ten Fiscal Years
11
REAL PROPERTY PERSONAL PROPERTY
ESTIMATED ESTIMATED
FISCAL TAX ASSESSED ACTUAL ASSESSED ACTUAL
YEAR YEAR VALUE VALUE VALUE VALUE
1978-79 1978 $ 98,489, 560 $164, 149,267 $ 2,062,730 $ 3,437,883
1979-80 1979 105,509,070 175,848,450 2, 242,850 3,738,083
!I
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 7,295,310
1983-84 1983 436,557,744 436,557,744 6, 389,970 6,389,970 11
1984-85 1984 588, 137,580 588, 137,580 10,731,940 10,731,940
11
1985-86 1985 636,203,660 636,203,660 9,688,000 9,688,000
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
(1) Assessment ratio increased in 1980 to 100% of market value per $100
valuation.
(2) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the previous year.
(3) Includes annexation of the Forest Bend subdivision (WCID 108) during11
the previous year.
Source - Tax assessor/collector' s records.
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EXHIBIT V
II
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1
II TOTAL TOTAL
ESTIMATED ASSESSED TAXABLE RATIO OF ASSESSED
ASSESSED ACTUAL VALUE OF ASSESSED VALUE TO ESTIMATED
IIVALUE VALUE EXEMPTIONS VALUE ACTUAL VALUE
$100, 552,290 $167,587, 150 $ 573,900 $ 99,978,390 60
II107,751,920 179,586,533 633,440 107, 118,480 60
189,501 ,622 189,501 ,622 1,987,238 187,514, 384 100
II206, 185,360 206, 185,360 4,380,567 201,804,793 100
II298,452,090 298,452,090 85,672,799 212,779,291 100
442,947,714 442,947,714 96,853, 365 346,094,349 100
II
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
II763,454,517 763,454,517 137,359,095 626,095,422 100
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II
PROPERTY TAX RATES AND TAX LEVIES - ALL
OVERLAPPING GOVERNMENTS
II
CITY OF FRIENDSWOOD, TEXAS
Last ten fiscal years I
11
FRIENDSWOOD CLEAR CREEK
11
INDEPENDENT INDEPENDENT
FISCAL TAX CITY OF SCHOOL SCHOOL
YEAR YEAR FRIENDSWOOD DISTRICT DISTRICT
II
TAX RATE
1978-79 1978 $1 .15 1.84 $1 .55
II
1979-80 1979 1. 15 1.81 .82
1980-81 (1) 1980 .775 1.77 .82
1981-82 1981 .775 1.86 .88
1982-83 1982 .735 1.83 .83
1983-84 1983 .720 1.79 .82
1984-85 1984 .720 1.46 .82
1985-86 1985 .7095 1.46 .92II
1986-87 1986 .695 1.41 .92
1987-88 1987 .695 1.41 .95
TAX LEVIES II
1978-79 1978 $1, 147,958 $2,456,479 $14,315,746
1979-80 1979 1,231,876 2,718,490 16,431,313 II
1980-81 1980 1,459,086 3,123,225 19,977,989
1981-82 1981 1,586,474 3,567,480 22,647,479
1982-83 1982 2,068,817 4,854,834 25,331,425II
1983-84 1983 2,491,879 5,233,942 27,542,883
1984-85 (2) 1984 3, 348,234 5, 123,436 31,308,670
1985-86 1985 3,870,699 5,802,869 41,309,808 II1986-87 (3) 1986 4, 369, 541 6,205,039 44,892,680
1987-88 1987 4,351, 363 6,511, 149 43,580,000
II
Source - Accountingrecords of the Cityand tax assessor/collector's records.
�
(1) Assessment ratio increased in 1980 to 100% of market value per $100 1
valuation.
(2) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
II
District) during the previous year.
(3) Includes annexation of the Forest Bend subdivision (WCID 108) during IIthe previous year.
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EXHIBIT VI
II
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II CLEAR CREEK
GALVESTON HARRIS DRAINAGE
IICOUNTY COUNTY DISTRICT
TAX RATE
1 $.940 $1 . 100 $. 100
.930 1. 100 .080
.915 1 . 130 . 100
I .300 .376 . 100
.300 .360 .150
.395 .377 . 150
11 .395 .277 . 150
.385 .27878 . 150
. 385 .26786 . 150
.385 .29316 .150
II
TAX LEVIES
II $10,719, 130 $140,067,072 $113,473
11,871,339 152,422, 186 101,276
12,957,655 175,846,769 163,441
1 18,673,000 218,001,248 256,004
18, 137,783 238,964,304 486,722
26,640,815 270,971 ,084 506,281
28,607,391 312,288,939 609,854 I
29,255,237 321 ,822,000 742,703
25, 228,511 311,338,358 740, 222
31,021,686 317,419,015 763,695
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RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal years 1
II
GROSS LESS DEBT
FISCAL ESTIMATED ASSESSED BONDED SERVICE11
YEAR POPULATION VALUE DEBT FUND BALANCE
1978-79 10, 301 $100,552,290 $ 5,417,000 $122,363 1
1979-80 10,719 107,751,920 5,354,000 117,551
1980-81 11, 169 189,501,622 5,217,000 143, 168 II
1981-82 11,770 206, 185,360 6,560,000 145,075
1982-83 12,530 298,452,090 6,470,500 153,535 II
1983-84 (1) 17,365 442,947,714 8,423,163 197,749 1
1984-85 18,500 598,869,520 8,046,000 200,813
1985-86 (2) 22,500 645,891,660 10,650,778 459, 30611
1986-87 23,000 760,787,760 10,065,778 518,998
1987-88 22,500 763,454,517 9,405,778 325,894 11
(1) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the year . II
(2) Includes annexation of the Forest Bend subdivision (WCID 108) during II
the year.
Source - Accounting records of the City.
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EXHIBIT VII
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RATIO OF NET
NET BONDED DEBT
BONDED TO ASSESSED NET BONDED DEBT
DEBT VALUE % PER CAPITA
$ 5,294,637 5.3% $513
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
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COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT EXHIBIT VIII
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988
I
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PERCENTAGE CITY OF
NET DEBT APPLICABLE FRIENDSWOOD'S
NAME OF GOVERNMENTAL UNIT OUTSTANDING TO CITY OF FRIENDSWOOD SHARE OF DEBT
Friendswood Independent
School District $ 4,540,000 100.00% $ 4,540, 000 1
Clear Creek Independent
School District 43,335,000 3.94 1,707, 399
11
Galveston County 81,530,441 6. 28 5, 120, 112
Harris County 1,007,075,000 . 15 1,510,615 1
Clear Creek Drainage
District 45,000 99.95 44,978 1
Harris County Flood
Control District 254, 365,000 .15 381,548
Port of Houston
Authority 59, 150,000 .15 88,725
TOTAL NET OVERLAPPING DEBT 13,393,377 11
Net General Long-Term Debt - City of Friendswood 9,079,884
TOTAL NET DIRECT AND 1
OVERLAPPING DEBT $22,473,261
11
Source - Finance department records of the various governments.
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RATIO OF ANNUAL DEBT SERVICE EXPENDITURES EXHIBIT IX
II FOR GENERAL LONG-TERM DEBT TO TOTAL
GENERAL EXPENDITURES
IICITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years
1
11 INTEREST
AND RATIO OF DEBT SERVICE
I FISCAL FISCAL TOTAL TOTAL
GENERAL TO TOTAL GENERAL
AGENT DEBT GOVERNMENTAL
YEAR PRINCIPAL FEES SERVICE EXPENDITURES EXPENDITURES
11 1978-79 $ 56,000 $216,800 $ 272,800 $2,290,966 11.91%
1979-80 78,000 196,096 274,096 2,458,212 11.15
II1980-81 99,336 203,396 302,732 2,694,794 11.23
II1981-82 110,631 303,809 414,440 3,056,539 13.56
1982-83 123,759 373,646 497,405 3,694,930 13.46
II1983-84 356,000 627,609 983,609 4,940,683 19.91
1984-85 377,608 619,506 997, 114 4,817,448 20.70
II1985-86 (1) 484,427 579,859 1,064, 286 5,763,969 18.46
1986-87 620,386 694,328 1, 314,714 6,624,296 19.85
II
1987-88 690,323 654,370 1,344,693 6,614,293 20. 34
IISource - Accounting records of the City.
(1) Excludes debt defeased through refunding of $10,032,000.
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TAX RATE DISTRIBUTION EXHIBIT X
CITY OF FRIENDSWOOD, TEXAS11
Last Ten Fiscal Years
II
II
II
GENERAL DEBT SERVICE TOTAL TAXII
TAX YEAR FUND FUND RATE
1978 .921 .229 1. 15
II
1979 .897 .253 1. 15
1980 .5311 .2434 .775 (1) II
1981 .53 .245 .775
1982 .4835 .2515 .735
1983 .502 .218 .720
11
1984 .507 .213 .720
1985 .5192 .1903 .7095
1986 .481 .214 .695
1987 .52 .175 .695 11
(1) Assessment ratio was increased in 1980 to 100% market value per $100
II
valuation.
Source - City' s tax ordinances. II
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(This 4
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EXHIBIT XI
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I DEBT
REVENUE BOND SERVICE
DEBT SERVICE REQUIREMENTS TIMES
' PRINCIPAL INTEREST TOTAL COVERAGE
$ 15,000 $37,812 $ 52,812 3.29
' 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
' 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 8. 25
125,000 69,720 194,720 7.93
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PRINCIPAL TAXPAYERS EXHIBIT XIIII
CITY OF FRIENDSWOOD, TEXAS
September 30, 1988 11
11
PERCENT OF
ASSESSED VALUEII
ASSESSED TO TOTAL
NAME OF TAXPAYER NATURE OF BUSINESS VALUE ASSESSED VALUE
1 . Exxon Oil & Gas $40,759,100 5. 16% II
2. Southwestern Bell
Telephone Utility Co. 10,659,750 1. 35II
3. Texas - New Mexico
Power Utility Co. 6,701,610 .85II
4. Florida Federal Savings
and Loan Apartments 5,092, 160 .65
II
5. Crosstimbers Production
Company Oil & Gas 4,761 ,590 .61
6. John L. Jones, Trustee Land 2,584,980 .32 II
7. Salem Square Apartments Apartments 2,564,780 .32
11
8. Houston Lighting & Power Utility Co. 2,558,040 .32
9. Ralph Lowe Land 2,533,570 .32
II
10. Baywood Ltd. Apartments 2,530,610 .32
$80,746, 190 10. 22% !I
11
Source - Tax assessor/collector's records.
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PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS EXHIBIT XIII
IICITY OF FRIENDSWOOD
IILast Ten Fiscal Years
II FISCAL BANK PROPERTY
YEAR CONSTRUCTION DEPOSITS VALUE
II1979 $17,444,441 $27,546,000 $100,552,290
1980 12,893,393 27, 144, 117 107,751,920
II
1981 13, 197,941 32,614,000 189,501,622
1982 15, 102,000 48,616,000 206, 185,360
II1983 31,211,841 62,256,000 298,452,090
' 1984 31,379, 139 67, 111,934 486,902,520
1985 28,891,533 72,641,562 598,869,520
II
1986 26,920,850 78,645,866 645,891 ,660
1987 17,337,714 90,775,074 760,787,760
I1988 19,712,294 133,829,940 763,454,517
ISources — City records; Area Banks; Tax assessor/collector records.
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SCHEDULE OF INSURANCE IN FORCE - 1 of 2 II
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1988
LOCATION II
OR
INSURER POLICY NO. ACTIVITY COVERAGE 1
Texas Political Sub WC H0008 City All Employees
WC Fund
II
TCPIA 663632 City Buildings-Windstorm
and Hail
Employers Casualty Co. CAF 649005 Fleet All Vehicles a
Employers of Texas FMC 1L6290 City Fire, EC, Windstorm,
Lloyds V&MM II
Employers Casualty EEP 047835 Electronic Fire, EC, V&MM I
Co. Equipment
Employers National Contractors Fire, EC, V&MM11
Ins. Co. CEF 874899 Equipment
Employers of Texas TCMP 1L9003 City Multi Peril
Lloyds 11
National Casualty PL601759 City Comprehensive Law
Co. EnforcementII
Aetna Casualty & 61S610355538BCA Surety Bond Building Inspector
Surety Co. II
Aetna Casualty & 61S100401370BCA Surety Bond City Manager
Surety Co.
II
Aetna Casualty & 61S25187BCA Surety Bond Tax Assessor-Collector
Surety Co.
II
St. Paul Fire & 400GX7956 Public Employees Blanket Bond-All Empl
Marine
National Casualty P0623033 Public Officials Elected and Appointed II
Co.
Omaha Indemnity 3000907570 Bougainvilla Building & II
Contents
Omaha Property & 011932137639 Library Building & 1
Casualty Contents
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I
EXHIBIT XIV
I
I
AMOUNT PERIOD OF
I OF COVERAGE
COVERAGE BEGINNING ENDING PREMIUM
' Statutory 10-01-87 10-01-88 $87,281
$ 464,000 04-20-88 04-20-89 3,371
I
500,000 12-01-87 12-01-88 72,340
I 1 - 1- - -
2,012,300 2 0 87 12 O1 88 5,874
I267,091 12-01-87 12-01-88 1,829
1 165,834 12-01-87 12-01-88 2,222
1 2,589,800 12-01-87 12-01-88 49,293
I1,000,000 12-19-87 12-19-88 19,770
I2,000 12-01-87 12-01-88 50
I
50,000 01-26-87 01-26-88 250
50,000 11-29-86 11-29-88 463
I
10,000 10-01-87 10-01-88 304
I
1,000,000 12-19-87 12-19-88 7,975
I141,300/ 11-08-88 11-08-89 548
3,500
I163,400/ 08-03-88 08-03-89 689
100,000
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I
SCHEDULE OF INSURANCE IN FORCE - 2 of 2
I
LOCATION
OR
INSURER POLICY NO. ACTIVITY COVERAGE
Omaha Property & 012001944988 Counseling Center Building &
Casualty Contents 1
Omaha Property & 013001775851 Forest Bend Civic Building &
Casualty Contents
Omaha Property & 0I1940990565 Public Works Building &
Casualty Contents
Omaha Property & 012001256227 Fire Station #1 Building &
Casualty Contents
American States MP4407 Volunteer Fireman AD&D
Insurance
I
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1
1
I
I
I
1
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1
1
EXHIBIT XIV
AMOUNT PERIOD OF
OF COVERAGE
COVERAGE BEGINNING ENDING PREMIUM
27,500/ 04-27-88 04-27-89 156
10,500
100,000/ 07-20-88 07-20-89 330
10,000
177, 100/ 04-07-88 04-07-89 329
38,300
220,000/ 04-07-88 04-07-89 459
23,100
50,000 03-27-88 03-27-89 1,997
$255,530
1
1
1
1
e
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e
1
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MISCELLANEOUS STATISTICAL DATA - 1 of 2 EXHIBIT XV 11
CITY OF FRIENDSWOOD, TEXAS
11
September 30, 1988
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 and sidewalks
Streets - paved 86. 14 miles
Streets - unpaved 5.21 miles
Sidewalks 1.0 miles
11
Fire Protection
Number of stations 3
Number of employees 2
Number of volunteers 70
Fire Prevention
Number of employees 211
Number of volunteers 70
Police Protection 11
Number of stations 1
Number of employees 32
Number of patrol units 10 11
Recreation11
Number of parks 6
Size of parks 13.3 acres, 13.6 acres, 6.5 acres, 3
4.85 acres, 4. 1 acres, .6 acres
Number of golf courses 0
Number of swimming pools 1
11
Number of tennis courts 4
Storm Sewers
Miles of storm sewer 31.35 miles
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1
1
MISCELLANEOUS STATISTICAL DATA - 2 of 2 EXHIBIT XV
Education
eFriendswood Independent School District
Number of teachers 199.5
Number of students 3,206
City employees
Department Heads 8
Employees 105.5
Total 113.5
Election
Number of votes cast
Last City election 2,840
1 Water
Source 7 wells
Average daily consumption 2,871 ,000 gallons
Maximum daily consumption 6,617,000 gallons
Water mains 79. 15 miles
Number of connections 6,626
Sewer
Average daily capacity 2, 180,666 gallons
Maximum daily capacity 4,909,000 gallons
Sanitary sewer mains 75.65 miles
Number of connections 6,432
I!
1
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11
PRINCIPAL OFFICIALS 11
CITY OF FRIENDSWOOD, TEXAS
11
September 30, 1988
II
ELECTIVE
CITY OFFICIALS ADDRESS POSITION
Paul W. Schrader 504 Liberty Mayor II
Ron Ritter 15410 Wondering Trail Councilmember - Position No. 1
Robert Wicklander 1109 Myrtlewood Councilmember - Position No. 2
11
Evelyn B. Newman 502 Falling Leaf Councilmember - Position No. 3
Phyllis J. Lee P. 0. Box 693 Councilmember - Position No. 4
Jan Jordan 1008 Castlewood Councilmember - Position No. 5
Joe D. Prihoda 1325 McKissick Councilmember - Position No. 6II
APPOINTIVE POSITION
II
Annette A. Brand 109 Willowick, Friendswood City Manager
Keith Neilson 109 Willowick, Friendswood Finance Director
Joseph M. Wright 204 E. Heritage Police Chief 11
Melvin Meinecke 1602 Dallas, South Houston Director of Public Works
Dwayne Hengst 109 Willowick, Friendswood Community Development Director
Claudie Pettigew 109 Willowick, Friendswood Library Director11
Luis Suarez 723 Main, Suite 707, Houston Judge - Municipal Court
Vance Riley P. O. Box 5957, Coll. St. Fire Marshal
Dr . Richard Conway 505 Friendswood Drive Health Officer
11
Alta Carbone P. 0. Box 31, Friendswood Tax Assessor - Collector
Deloris McKenzie 109 Willowick, Friendswood City Secretary
Olson & Olson 3485 Capital Bank, Houston City Attorney
11
Russell E. Williams 109 Willowick, Friendswood Civil Defense Director
11
11
11
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ll
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EXHIBIT XVI
I
TERM
EXPIRES
May, 1990
May, 1990
May, 1989
May, 1990
May, 1989
May, 1990
May, 1989
3
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4
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