HomeMy WebLinkAbout1987 09 30 Annual Comprehensive Financial Report - City of Friendswood I
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF FRIENDSWOOD, TEXAS
For the fiscal year ended
September 30, 1987
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I! Prepared by
Finance Department
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Lynn J. Bucher
11 Acting Finance Officer
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11 CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal 11
Organization Chart 18
Principal Officials 19
FINANCIAL SECTION
Auditors' Report 23
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
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
Notes to Financial Statements 38
11 Individual Fund and Account Group Statements and
Schedules
General Fund
Comparative Balance Sheet A-1 65
Statement of Revenues - Budget and Actual A-2 66
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CONTENTS - 2
Exhibit Page
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FINANCIAL SECTION (continued)
General Fund (continued) II
Statement of Expenditures - Budget and
Actual - By Function A-3 67
Statement of Expenditures - Budget and
Actual - By Object A-4 68 II
Special Revenue Funds
Combining Balance Sheet B-1 75 II
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances B-2 76 11
Revenue Sharing Fund
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Comparative Balance Sheet B-3 77
Statement of Revenues, Expenditures, andII
Changes in Fund Balance - Budget and Actual B-4 78
Parks and Recreation Fund
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Comparative Balance Sheet B-5 79
Statement of Revenues, Expenditures, and
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Changes in Fund Balance - Budget and Actual B-6 80
Mowing Fund 1
Comparative Balance Sheet B-7 81
Statement of Revenues, Expenditures, and Il
Changes in Fund Balance - Budget and Actual B-8 82
Fine Arts Commission II
Comparative Balance Sheet B-9 83
Statement of Revenues, Expenditures and Changes II
in Fund Balance - Budget and Actual B-10 84
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CONTENTS - 3
II Exhibit Page
FINANCIAL SECTION (continued)
II Debt Service Fund
1 Comparative Balance Sheet C-1 87
Comparative Statement of Revenues, Expenditures
IIand Changes in Fund Balance C-2 88
Capital Projects Fund
IIComparative Balance Sheet D-1 91
Comparative Statement of Revenues, Expenditures
IIand Changes in Fund Balance D-2 92
Enterprise Fund
11 Comparative Balance Sheet E-1 94
Statement of Revenues and Expenses -
IIBudget and Actual E-2 96
Statement of Operating Expenses -
IIBudget and Actual E-3 97
Schedule of Revenue Bonds Payable E-4 98
I! Revenue Bonds Payable - By Maturity Date E-5 100
Trust Fund
ItComparative Balance Sheet F-1 105
11 Comparative Statement of Revenues, Expenses
and Changes in Fund Balance F-2 106
IIGeneral Fixed Assets Account Group
Schedule of General Fixed Assets - By Sources G-1 109
11 Schedule of General Fixed Assets - By Function
and Activity G-2 110
11 Schedule of Changes in General Fixed Assets -
By Function and Activity G-3 111
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CONTENTS - 4 11
Exhibit Page
FINANCIAL SECTION (continued)
General Long-Term Debt Account Group II
Statement of Changes in General Long-Term Debt H-1 114
Schedule of General Long-Term Debt H-2 116
General Long-Term Debt - By Maturity Date H-3 118
Compound Bonds - Accrued Interest Schedule H-4 122
Schedules 11
Combined Schedule of Investments - All Funds I-1 125
Schedule of Delinquent Taxes Receivable I-2 126
STATISTICAL SECTION11
General Revenue - By Source I 128
General Government Expenditures - By Function II 130 11
Tax Revenues - By Source III 132
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Property Tax Levies and Collections IV 134
Assessed and Estimated Actual Value ofI
Taxable Property V 136
Property Tax Rates and Tax Levies - AllII
Overlapping Governments VI 138
Ratio of Net General Bonded Debt to Assessed
Value and Net Bonded Debt Per Capita VII 140 II
Computation of Net Direct and Estimated
Overlapping Debt VIII 14211
Ratio of Annual Debt Service Expenditures for
General Long-Term Debt to Total General
Expenditures IX 144
Tax Rate Distribution X 145
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CONTENTS - 5
' Exhibit Page
STATISTICAL SECTION (continued)
Revenue Bond Coverage XI 146
Principal Taxpayers XII 148
Property Value, Construction and Bank Deposits XIII 149
Schedule of Insurance In Force XIV 150
Miscellaneous Statistical Data XV 154
Principal Officials XVI 156
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INTRODUCTORY SECTION
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I9 X RALPH L.LOWE
Mayor
I A,, ';„,_i:m:::N:'','C,.,'.'',2..,: ::‘.,
9'tLzcti,vjood
ANNA. BRAND
'.> Gt'ty, O1City Manager
` Councilmen
•�� H JIM HARRELL
r` 109 WILLOWICK 7131482.3323
M FRIENDSWOOD, TEXAS 77546.3898 EVELYN NEWMAN
Itilk ROBERT WICKLANDER
PHYLLIS J.LEE
JANJORDAN
,p,
DELORIS McKENZIE,CMC
IIZ- City Secretary
January 26, 1988
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Honorable Mayor and Members of
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the City Council
City of Friendswood, Texas
IIThe Comprehensive Annual Financial Report of the City of Friendswood, Texas,
for the fiscal year ended September 30, 1987, is submitted herewith. This
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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
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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
II 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,
I 1971.
The charter provides for "City Council - City Manager" form of city
government. The City is located 20 miles southeast of downtown Houston in
Harris and Galveston Counties.
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The City provides its citizens with many services including City adminis-
tration, traffic planning, inspection services, municipal court services and
a library. However, the services that affect most citizens on a day-to-day
1 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
IIforce of twenty employees.
Fire - Although the City does not employ its own fire department, it has
1 purchased fire trucks and other additional equipment for the volunteer fire
department. The City employs a fire marshal and one full-time fire fighter.
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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 1
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.
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 Accountin& and Budgetary Control I
The financial statements have been prepared in accordance with generally accepted
accounting principles as prescribed by the Governmental Accounting Standards
Board (GASB) . The GASB is the successor organization to the NCGA and was
established to promulate standards 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 referenced 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 full accrual basis of accounting. Under this method, revenues
are recognized at the time they are earned and expenses are recognized when
they are incurred.
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
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 not
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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Bud etin is an essential element of the financial planning, control and
Budgeting
evaluation processes of the City. The City requires that an annual budget
II be authorized by the City Council before the budget period begins. This
process provides for the initial financial planning of the budget year.
Interim budget reports are prepared during the budget period to facilitate
1 legislative oversight of governmental fund financial operations as well as
management control.
1 General Government Functions
Revenues for general government functions (General, Special Revenue and Debt
Service Funds) totaled $6,337,946 in 1986-87, an increase of $714,067 over
II 1985-86. General property taxes produced 69.76 percent of the general revenues
compared to 67.80 percent the preceding year. Sales taxes produced 8.17 percent
of the general revenues compared to 8.57 percent of the preceding year. The
I amount of revenue from various sources and the increase or (decrease) over the
preceding year are shown in the following tabulation:
Increase
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1986-87 Percent (Decrease)
Revenue Sources Amount of Total Over 1985-86
General property taxes $4,421,343 69.76% $599,808
11 Business gross receipts taxes 333,428 5.26 34,847
General sales taxes 517,943 8.17 34,314
Sanitation 525,592 8.29 55,415
II Intergovernmental 94,015 1 .48 (30,099)
Fines and forfeitures 184,359 2.91 24,737
Licenses and permits 124,913 1.97 (23,827)
Interest income 91 ,011 1.44 2,490
IIOther revenue 45,342 .72 16,382
TOTAL $6,337,946 100.00% $714,067
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Revenues from general property taxes increased primarily due to the annexation
11 of the Forest Bend Subdivision (Water Control and Improvement District No. 108) .
Assessed valuations of $760,787,760 represented an increase of 17.79 percent
over the preceding year. Assessed valuations are at 100% of market value as
II determined by the Galveston County and Harris County Appraisal Districts. The
assessed tax levy at October 1, 1986, relating to the fiscal year 1986-87 was
$4,369,541, an increase of 15.0 percent over the tax levy at October 1, 1985.
11 Current tax collections were 97.16 percent of the tax levy, up 2.06% from last
year.
11 Delinquent tax collections were $133,831 and represented 3.06 percent of total
collections. The ratio of total collections (current and delinquent) to the
current tax levy was 100.23 percent, an increase of 2.25 percent from last year.
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Allocations of property tax levy by purpose for 1986-87 and the preceding two II
fiscal years are as follows (amount per $100 of assessed value) :
Purpose 1986-87 1985-86 1984-85 II
General Fund $.481 $.5192 $.507
General Obligation Debt .214 . 1903 .213II
TOTAL TAX RATE $.695 $.7095 $.720
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Expenditures for general government purposes totaled $6,624,296, an increase
of $860,327 over 1985-86. Increases or (decreases) in the levels of expendi-
tures for major functions of the City for the preceding year are shown in theII
following tabulation:
Increase
1986-87 Percent (Decrease) II
Function Amount of Total Over 1985-86
General Government $1,473,875 22.25% $252,699
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Public Safety 1,870,538 28.24 93,035
Public Works 718, 117 10.84 (5,662)
Sanitation 519,527 7.84 34,676
Culture and Recreation 692,525 10.45 239, 117II
Health and Welfare 35,000 .53 (3,966)
Debt Service 1,314,714 19.85 250,428
TOTAL $6,624,296 100.00% $860,327 II
IIThe following reasons are cited for major fluctuations in expenditures in var-
ious departments:
General Government: Additional personnel in engineering, inspections andII
finance, purchase of data processing equipment, purchase of code enforcement
vehicle.
Public Safety: Purchase of additional police vehicles and increase in personnel 11
for the Forest Bend subdivision.
Cultural and Recreation: Initial year of swimming pool operation, purchase of
property for library and parks, paving of parking lot at park and purchase of
additional mowing equipment.
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It should be noted that all increases were planned for and budgeted.
Fund balances in the major operating funds were maintained at budgeted levels. II
The General Fund balance of $206,446 was up $324,065 from the preceding year;
the Debt Service Fund balance of $518,998 was up $59,692 from the preceding
year;the Capital Projects Fund balance of $1 ,063,145 was up $1,266,787 from
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the prior year; and Special Revenue Fund balances of $31,969 was down $65,264
from the prior year.
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I! Debt Administration
II The ratio of net bonded debt to assessed valuation and the amount of bonded
debt per capita are useful indicators of the City's debt position to municipal
management, citizens, and investors. These data for the City of Friendswood at
1 the end of the 1986-87 fiscal year were as follows:
Ratio of Debt to
I Assessed
Value Debt
100 Percent of Per
escrponuresent Market) Capita
II Net direct bonded debt $ 9,546,780 1.25% $415
Overlapping debt 9,633,760 1.27 419
Total direct and
IIoverlapping debt $19,180,540 2_52% $834
Outstanding tax supported debt at September 30, 1987 totaled $10,065,778.
li Net direct bonded debt per capita for the City is below the average of $605
of certain comparable cities in the Houston geographic area.
II Debt service coverage for revenue bonds for the past two fiscal years was
as follows:
IIWater and Sewer Departments
1986-87 1985-86
II Gross revenues (includes operating $3,158,980 $4,205,395
revenues, interest income, capital
recovery fees and other non-operating
II income)
Operating expenses before depreciation 1,487,668 1,311,526
IIINCOME AVAILABLE FOR DEBT SERVICE $1,671,312 $2,893,869
Annual debt service for revenue bonds $ 201,781 $ 203,129
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Coverage (income available for debt 8.28 14.25
service divided by average annual
II debt service)
Debt secured by a pledge of revenues of the system in the amount of $125,000
I was retired during the year. The decrease in income available for debt serv-
ice was primarily due to water and sewer tap fees revenue of $1 ,200,000 re-
ceived during 1985-86 pursuant to an agreement with Bay Area Land Company Ltd.
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Cash Management
Cash temporarily idle during the year was invested in certificates of deposit
ranging from 30 to 90 days to maturity. Yields on certificates of deposit
ranged from 5.82 percent to 6.68 percent during the year ended September 30,
1987.
Interest earned for the year was $174,523, down $43,035 from the preceding year.
Past Year's Operations and Future Projections I
Several water and sewer projects were completed, including (1) relocation of
water and sewer lines on Chelsea Street; (2) Whittier Oaks lift station;
(3) painting of water well number five; (4) relocation of water and sewer
lines on FM 518 by Fire Station #1 and from Lottie Lane to the Brazoria county
line; and (5) installation of a new water line on FM 528.
Expansion of the Blackhawk Wastewater Treatment Plant, in conjunction with
three other governmental entities, was completed with a refund from Gulf Coast
Waste Disposal Authority of $41,897 from the $500,000 paid at the start of
expansion. This expansion will provide an increase in sewage treatment capacity
to allow a population increase to 46,000 people for the City of Friendswood. At
the present population level of approximately 22, 500, this expanded capacity
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will equate to more than 100 gallons of sewage capacity per person per day.
Surface water planning continued with contracts entered into with Municipal
Utility District 55 for the 24" shared water line and City of Houston to buy
into the Southeast Water Purification Plant. A $600,000 down payment was paid
to the City of Houston.
The Sesquicentennial swimming pool was completed and opened in May, 1987. First
year revenues exceeded budgeted revenues by $2,865 and expenditures were under
budget by $3,504.
1986-87 was the third year of a planned seven-year street improvement program
which envisions the improvement of all city streets without utilizing any debt
financing. The 1985-86 county two-course surface treatment and asphalt overlay
was completed and the 1986-87 program was begun on Imperial Drive, Falling
Leaf, Misty Lane and Merriewood Streets. Other streets completed were Sunset,
Phase II and the re-alignment of Chelsea Lane.
The City of Friendswood and Galveston County again jointly contributed $50,000
each to the Clear Creek Drainage District for implementation of the Chigger and
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Cowarts Creeks flood control study plan of action. Other drainage improve-
ments completed were the 60" and 72" storm sewers installed on Merriewood and
a study completed of Clover Acres drainage.
Architectural work continued on plans for a new city hall and $650,000 was
reserved for construction.
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Revenue Sharing funds were used to purchase additional data processing hard-
ware and software in a continuation of the four-year computerization plan.
11 The financial applications were updated and additional hardware memory and
disk storage was added. An additional System/36 computer was purchased for
police and computer aided dispatch with both Revenue Sharing funds and an in-
formation systems grant from the state with the police CRIMES software imple-
mented. Computer-aided dispatch and inspection/permit module are scheduled to
be implemented in the near future, as well as updates to utility billing,
efixed assets and job costing.
Independent Audit
The City Charter requires an annual audit of the financial 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
11 has been included in this report.
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 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 and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe
our current report conforms to Certificate of Achievement requirements, and we
are submitting it to GFOA to determine its eligibility for a certificate.
Acknowledgements
The preparation of this report on a timely basis 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 Manager and the members of
the City Council, and the City Manager for your interest and support in planning
and conducting the financial operations of the City in a responsible and progres-
sive manner.
11 Respectfully submitted,
Lynn J. Bucher
Acting Finance Officer
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ORGANIZATION CHART-CITY OF FRIENDSWOOD, TEXAS
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APPOINTED BOARDS - MAYOR & COUNCIL VOLUNTEER FIRE
AND
AND
AD HOC COMMITTEES
AMBULANCE
CITY ATTORNEY
CITY SECRETARY
MUNICIPAL JUDGE
co
COURT CLERK
CITY MANAGER
FIRE MARSHAL
#
COMMUNITY PARKS AND
FINANCE LIBRARY PUBLIC WORKS POLICE DEVELOPMENT RECREATION
A t t t
Sal MA bid Eli NMI MVO MI Mill 11111111 111111 MS Mill MI &MI 66111
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PRINCIPAL OFFICIALS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987
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MAYOR
Ralph L. Lowe
Position No. 1 Position No. 4
Jim Harrell 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
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City Manager
Annette A. Brand
City Secretary Tax Assessor
Deloris McKenzie Alta Carbone
Acting Finance Officer
11 Lynn J. Bucher
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GIRL Ly9IRSON CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
713-661-8500
P. 0.BOX 500017 1716 MANGUM,SUITE 200
HOUSTON,TEXAS 77250-0017 HOUSTON,TEXAS 77092
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Honorable Mayor and Members of
City Council
City of Friendswood, Texas
We have examined the general purpose financial statements of the City of
Friendswood, Texas and the combining, individual fund and account group financial
1 statements and schedules of the City as of and for the year ended September 30,
1987, as listed in the table of contents. Our examination was made in accordance
with generally accepted auditing standards and, accordingly, included such tests
of the accounting records and such other auditing procedures as we considered
necessary in the circumstances.
In our opinion, the general purpose financial statements referred to above present
fairly the financial position of the City of Friendswood, Texas at September 30,
1987, and the results of its operations and the changes in financial position of
its proprietary type and non-expendable trust funds for the year then ended, in
conformity with generally accepted accounting principles applied on a basis
consistent with that of the preceding year. Also, in our opinion, the combining
and individual fund and account group financial statements referred to above
present fairly the financial position of the individual funds and account groups
11 of the City of Friendswood, Texas as of September 30, 1987, and the results of
operations of such funds and the changes in financial position of the proprietary
type and non-expendable trust funds for the year then ended, in conformity with
generally accepted accounting principles applied on a basis consistent with that
of the preceding year.
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Houston, Texas
January 26, 1988
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COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - 1 of 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 1
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GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
ASSETS I
CASH - including certificates
of deposit $ 751,230 $15,473 $546, 324 $ 483,378 II
RECEIVABLES - net where applicable,
of allowances for uncollectibles
Property taxes 223,630 94,811
Accounts 26,874 15,013
Grantor agencies 5,087 20,000
Interest
DUE FROM OTHER FUNDS - Note 3 44,486 104 608,623
PREPAID EXPENDITURES AND 1
OTHER ASSETS 6,425
RESTRICTED ASSETS 1
Cash - including certificates of
deposit 17,042
Land
Blackhawk operating fund equity -
Notes 6 and 11
GENERAL FIXED ASSETS - at cost
PROPERTY, PLANT AND EQUIPMENT -
at cost less accumulated
depreciation - Note 5
AMOUNT AVAILABLE IN DEBT
SERVICE FUNDS
AMOUNT TO BE PROVIDED FOR
RETIREMENT OF GENERAL
LONG-TERM DEBT
TOTAL ASSETS $1,057,732 $47,632 $641,135 $1,112,001 II
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II FIDUCIARY
PROPRIETARY FUND TYPE TOTALS
I FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG-
ENTERPRISE TRUST ASSETS TERM DEBT 1987 1986
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I $ 191,793 $ 1,988,198 $ 757,606
I318,441 328,281
288,189 330,076 564,891
25,087 203,314
II 4,056 4,056 3,400
653,213 218,486
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6,425 21,053
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201,335 $19,896 238,273 1,446,141
II57,200 57,200 57,200
109,279 109,279 64,772
I $13,296,158 13,296,158 11,985,709
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19,251,485 485
> 19,251,485 19,000,327
II $ 518,998 518,998 459,306
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9,632,623 9,632,623 10,249,464
I $20,046,137 $77,096 $13,296, 158 $10,151,621 $46,429,512 $45,359,950
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See notes to financial statements.
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COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - 2 of 2
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS 11
LIABILITIES AND EQUITY
LIABILITIES
ACCOUNTS PAYABLE AND
ACCRUED LIABILITIES $ 627,552 $ 650 $ 2,840 $ 28,856 II
PAYABLE FROM RESTRICTED ASSETS
Accrued interest
Revenue bonds - current portion
Deposits 11
DUE TO OTHER FUNDS - Note 3 104 24,486 20,000
DEFERRED REVENUE 223,630 15,013 94,811
LEASE OBLIGATION
REVENUE BONDS
GENERAL OBLIGATION BONDS
TOTAL LIABILITIES 851,286 15,663 122, 137 48,856 11
EQUITY
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CONTRIBUTED CAPITAL
INVESTMENT IN GENERAL FIXED
ASSETS
RETAINED EARNINGS
Reserved for revenue bond
retirement
Reserved for construction
Unreserved
FUND BALANCES
Reserved for encumbrances 78,780 2,975 385, 144 II
Reserved for prepaid expenditures 6,425
Reserved for endowments
Reserved for parks 10,680
Reserved for programs 614
Unreserved (deficit)
Designated for construction 678,001
Designated for debt service 518,998
Undesignated 121,241 17,700
TOTAL EQUITY 206,446 31,969 518,998 1,063,145
TOTAL LIABILITIES AND EQUITY $1,057,732 $47,632 $641, 135 $1, 112,001
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11 FIDUCIARY
PROPRIETARY FUND TYPE TOTALS
FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG-
II ENTERPRISE TRUST ASSETS TERM DEBT 1987 1986
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1 $ 201,707 $ 861,605 $ 794,376
6, 148 6, 148 6,704
II 125,000 125,000 125,000
59,610 59,610 85,200
608,623 653,213 218,486
II 333,454 331,870
$ 85,843 85,843 57,992
1,120,000 1,120,000 1,245,000
10,065,778 10,065,778 10,650,778
1 2,121 ,088 10,151 ,621 13,310,651 13,515,406
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14,766,347 14,766,347 14,766,347
1 $13,296, 158 13,296, 158 11,985,709
1 328,414 ' 328,414 307,393
686,255' 686,255 1,873,857
2, 144,033/ 2, 144,033 2,599,825
1 466,899 -
6,425 21,053
1 $67,200 67,200 67,200
10,680 9,955
614 1,323
1 678,001 -
518,998 255,664
9,896 148,837 (43,782)
1 17,925,049 77,096 13,296,158 33,118,861 31,844,544
II $20,046, 137 $77,096 $13,296, 158 $10, 151 ,621 $46,429,512 $45,359,950
See notes to financial statements.
II -27-
I
II
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
II
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987II
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITALII
GENERAL REVENUE SERVICE PROJECTS
REVENUES
Taxes $ 3,943, 384 $1,329,330 II
Charges for services 525, 592
Fines and forfeitures 184,359
Licenses and permits 124,913II
Intergovernmental 92,901 $ 1,114
Interest 43,801 2, 134 45,076 $ 11,303
Other revenue 44,978 364
TOTAL REVENUES 4,959,928 3,612 1,374,406 11,303 II
EXPENDITURES
II
Current
General government 1, 379,721 94, 154
Public safety 1,870,538
Public works 706,640 11,477II
Sanitation 519,527
Culture and recreation 686,819 5,706
Health and welfare 35,000
Capital outlay 921,268 II
Debt service
Principal retirement 620,386
Interest and fiscal charges 694,328 II
Bond refunding cost
TOTAL EXPENDITURES 5,198,245 111,337 1,314,714 921,268
REVENUES OVER (UNDER) EXPENDITURES (238,317) (107,725) 59,692 (909,965) II
OTHER FINANCING SOURCES
Capital lease acquisition 63,23t. 11
Refunding bonds proceeds - Series 1986
Operating transfers in 42,461
Operating transfers out (42,461)
TOTAL OTHER FINANCING SOURCES (USES) (42,461) 42,461 63,236 II
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES (280,778) (65,264) 59,692 (846,729)
il
Fund balance at beginning of year as
restated - Note 12 (117,619) 97, 233 459,306 (203,642)
Add 1
Residual equity transfers in - Note 10 604,843 2, 113,516
Equity in assets acquired in '
annexation
FUND BALANCES AT END OF YEAR $ 206,446 $ 31,969 $ 518,998 $ 1,063,145
-28- 11
II
II
IITOTALS
(MEMORANDUM ONLY)
I1987 1986
I $ 5,272,714 $ 4,603,855
525,592 470, 177
11 184, 359 159,622
124,913 148,740
94,015 532,997
102,314 93,370
II 45,342 28,962
6, 349, 249 6,037, 723
II
1,473,875 1,221 , 176
II
1,870,538 718, 117 1,737, 503
710,782
519,527 484,851
692,525 453,408
' 35,000 78,966
921,268 1,692,833
II
620, 386 694, 328 10,516,427
579,859
- 580,585
I7,545,564 18,056,391
(1 , 196,315) (12,018,668)
II
63,236 -
- 10, 650, 778
(42,461) 1 ,617,574
' 42,461 63,236 (1 ,271 ,071)
10,997,281
(1, 133,079) (1,021,387)
II
235,278 529,776
II
2,718, 359 195,000
II - 531 ,889
$ 1 ,820,558 $ 235,278
II See notes to financial statements.
-29-
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN II
FUND BALANCES - BUDGETED AND ACTUAL - GENERAL, SPECIAL REVENUE
AND DEBT SERVICE FUND TYPES
li
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 198711
GENERAL FUND II
VARIANCE-
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) II
REVENUES
Taxes $ 3,805,200 $ 3,943,384 $138,18411
Charges for services 496,000 525,592 29,592
Fines and forfeitures 111,497 184,359 72,862
Licenses and permits 132,587 124,913 (7,674)
II
Intergovernmental 91,737 92,901 1, 164
Interest 37,000 43,801 6,801
Other revenues 4,700 44,978 40,278
II
TOTAL REVENUES 4,678,721 4,959,928 281,207
EXPENDITURESII
Current
General government 1,370,187 1,379,721 (9,534)
Public safety 1,866,427 1,870,538 (4,111)
II
Public works 695,765 706,640 (10,875)
Sanitation 465,000 519,527 (54,527)
Culture and recreation 756,770 686,819 69,951
Health and welfare 35,500 35,000 500 II
TOTAL EXPENDITURES 5,189,649 5,198,245 (8,596)
II
REVENUES OVER
(UNDER) EXPENDITURES (510,928) (238,317) 272,611
OTHER FINANCING SOURCES (USES) I
Operating transfers in -
Operating transfers out (42,461) (42,461) -
TOTAL OTHER FINANCING II
SOURCES (USES) (42,461) (42,461) -
REVENUES AND OTHER SOURCES I
OVER (UNDER) EXPENDITURES (553,389) (280,778) 272,611
Fund balance (deficit) at beginning
II
of year - as restated - Note 12 (117,619) (117,619) -
Add residual equity transfer 604,843 604,843
FUND BALANCE (DEFICIT) 11
AT END OF YEAR $ (66,165) $ 206,446 $272,611
11
-30-
II
11
11
II
ISPECIAL REVENUE FUNDS DEBT SERVICE FUND
VARIANCE- VARIANCE-
FAVORABLE FAVORABLE
IBUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE)
$1 ,325,482 $1 ,329,330 $ 3,848
$ 1,114 $ 1,114 $ - -
2,061 2,134 73 24,009 45,076 21,067
1 ,364 364 (1 ,000) -
11
4,539 3,612 (927) 1,349,491 1,374,406 24,915
II
109,108 94,154 14,954
8,000 11,477 (3,477)
5,950 5,706 244
II1,514,811 1,314,714 200,097
123,058 111,337 11,721 1,514,811 1,314,714 200,097
II
(118,519) (107,725) 10,794 (165,320) 59,692 225,012
II
42,461 42 461 -
, ,
II
42,461 42 461 -
, ,
II (76,058) (65,264) 10,794 (165,320) 59,692 225,012
II97,233 97,233 - 459,306 459,306 -
II
$ 21,175 $ 31,969 10 794 293 986$ $ $ 518,998 $225,012
I! See notes to financial statements.
-31-
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE -
PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND - 1 of 2
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987
PROPRIETARY FIDUCIARY
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST
Operating revenues
Water and sewer sales and services $ 2,875,209
Water and sewer tap fees 176,069
Fees and penalties 13,998
Other 1, 305
Grant revenues 92,399
3, 158,980
Operating expenses
Water department
Personal services 235,335
Supplies 66,472
Other services and charges 174,675
Maintenance 112,897
589,379
Sewer department
Personal services 193,949
Supplies 22,081
Other services and charges 140,007
Maintenance 108,466
Waste disposal fees 433,786
898,289
OPERATING INCOME
BEFORE DEPRECIATION 1,671 ,312
Depreciation 569,008
OPERATING INCOME 1,102,304
Non-operating revenues (expenses)
Interest revenue 71,248 $961
Interest expense (77,566)
(6,318) 961
INCOME BEFORE
OPERATING TRANSFERS 1,095 ,986 961
Operating transfers in
Operating transfers out11
NET INCOME 1,095,986 96111
-32-
1
1
1
1
I
1 TOTALS
(MEMORANDUM ONLY)
1 1987 1986
II $ 2,875,209 $2,615,442
176,069 1 ,508,511
13,998 31,863
1 1,305 7,734
92,399 41 ,845
3,158,980 4,205,395
1 235,335 240,972
66,472 29,424
II
174,675 151,062
112,897 132,973
589,379 554,431
1 193,949 137,289
22,081 14,855
140,007 118,971
II
108,466 165, 517
433,786 320,463
898,289 757,095
1 1,671,312 2,893,869
II
569,008 539,261
1, 102,304 2, 354,608
II 72,209 124, 188
(77,566) (83,129)
(5,357) _ 41 ,059
1 1 ,096,947 2,395,667
II
_ 195,408
(346,911)
(151 ,503)
II
1,096,947 2,244,164
I See notes to financial statements.
-33-
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE -
PROPRIETARY FUND TYPE AND SIMILAR TRUST FUND - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
Years ended September 30, 1987
PROPRIETARY FIDUCIARY
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST11
Retained Earnings/Fund Balance at
Beginning of Year - as Restated - Note 12 4,781 ,075 76,13511
Less Residual Equity Transfer (out) - Note 10 2,718,359
RETAINED EARNINGS/FUND BALANCE AT
END OF YEAR $ 3, 158,702 $77,096
11
11
1
1
3
-34-
I
I
I
I
TOTALS
(MEMORANDUM ONLY)
1987 1986
!I. 4,857,210 2,698,767
2,718,359 195,000
$ 3,235,798 $ 4,747,931
I
r
1
I
I
1
1
I
I
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, 1987
PROPRIETARY FIDUCIARY
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST
SOURCE OF WORKING CAPITAL
Operations
Net income $ 1,095,986 $96111
Expenses not requiring current outlay of
financial resources
Depreciation 569,008
Working capital provided from operations 1,664,994 961
Equity in net assets acquired in annexation _
1,664,994 961
USES OF WORKING CAPITAL
Residual equity transfer out 2,718,359
Equity transfers out -
Acquisition of property, plant and equipment 820, 166
Retirement of long-term debt 125,000
3,663,525
NET INCREASE (DECREASE) IN WORKING CAPITAL $(1,998,531) $961
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING
CAPITAL
Cash - restricted and unrestricted $(1 ,167,032) $961
Accounts receivable (180,945)
11
Accrued interest 656
Due from other funds
Accounts payable and accrued expenses (82,549)
Customer meter deposits 25, 590
Deferred tap revenues -0-
Due to other funds (594,807)
Accrued expenses (including interest) 556
NET INCREASE (DECREASE) IN WORKING CAPITAL $(1,998,531) $961
-36-
I
TOTALS
(MEMORANDUM ONLY)
1987 1986
11 $ 1,096,947 $2,049, 164
569,008 539,261
1,665,955 2,588,425
2,409,855
1,665,955 4,998,280
2,718,359 -
- 195,000
820, 166 3,460,892
125,000 120,000
3,663,525 3,775,892
$(1,997,570) $1,222,388
I
$(1,166,071) $ (18,973)
(180,945) 94,852
656 (5,757)
(601)
(82,549) (16,310)
25,590 (12,460)
- 1,200,000
11 (594,807) (13,816)
556 (4,547)
11 $(1,997,570) $1,222,388
I! See notes to financial statements.
-37-
NOTES TO FINANCIAL STATEMENTS
CITY OF FRIENDSWOOD, TEXAS 11
September 30, 1987
1 . ORGANIZATION
The City of Friendswood, Texas was incorporated in and adopted a Home
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
two-year terms. 11
The City Council is the principal legislative body of the City. The City
Manager is appointed by a majority vote of the City Council and is respons-
ible to the Council for the administration of all the affairs of the City. 11
The City Manager is responsible for law enforcement, appointment and removal
of department directors and employees, supervision and control of all City
departments and preparation of the annual budget. The Mayor presides at
meetings of the City Council and can vote.
The City provides the following services: public safety, streets, parks and
recreation, library, water and sewer, sanitation 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 responsibi11
-
lity for financing deficits, entitlement to surpluses and
guarantees of or "moral responsibility" for debt.
(2) Selection of Governin& 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.
-38-
1
I! NOTES TO FINANCIAL STATEMENTS - 2
I
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
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
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
be included in the financial statements of a reporting entity considers
ethe 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
of the reporting entity and is generally available to the citizens
of that entity.
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,
the positive response to this criterion is considered insignificant.
I These governmental units include Friendswood Independent School District,
Clear Creek Independent School District, Galveston County, Harris County
and Clear Creek Drainage District and have been omitted from the report-
ing entity.
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:
-39-
11
11
NOTES TO FINANCIAL STATEMENTS - 3
II
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. REPORTING ENTITY AND DESCRIPTION OF FUNDS (continued) II
GOVERNMENTAL FUND TYPES
II
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 II
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:
II
General Fund
The General Fund is used to account for all financial transactions which II
are not accounted for in another fund. The primary sources of revenue
of the General Fund are property taxes, sales and use taxes, franchises,
licenses and permits, and fines and forfeitures. Expenditures are for
general government, public safety, public works, and other community II
services.
Special Revenue FundsII
The Special Revenue Funds are used to account for proceeds of specific
revenue sources that are legally restricted to financing specified 11
activities. Capital improvements are charged to expenditures in the
accounts of this fund and capitalized in the General Fixed Asset Account
Group or the Enterprise Fund. 11
Debt Service Fund
The Debt Service Fund is used to account for the payment of interest II
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 II
The Capital Projects Fund is used to account for the receipt and ex II
-
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 pro-
ceeds from the sale of bonds and certificates of obligation, federalII
grants and interest revenues.
PROPRIETARY FUND TYPEII
Proprietary funds are used to account for the City's ongoing organiza-
tions and activities which are similar to those often found in the
private sector. The measurement focus is upon determination of net
income. The following is the City's proprietary fund type:
-4011-
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
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,
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
is accounted for in the same manner as proprietary funds.
ACCOUNT GROUPS
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
revenues of the City.
-41-
11
NOTES TO FINANCIAL STATEMENTS - 5
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. REPORTING ENTITY AND DESCRIPTION OF FUNDS (continued)
ACCOUNT GROUPS (continued)
General Long-Term Debt Account Group
This account group is used to account for the City' s liability for
general obligation bonds and certificates of obligation due at varying
dates through the year 2004 which are payable from general property tax
revenues of the City. 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.
11
MEASUREMENT FOCUS
Governmental fund types (General, Special Revenue, Debt Service and
Capital Projects) are accounted for on a "spending" or "financial flow"
measurement focus. Accordingly, only current assets and current lia-
bilities are included on their balance sheets and the reported fund
11
balance provides an indication of available spendable or appropriable
resources. Operating statements for governmental fund types report
increases and decreases in available spendable resources.
The Enterprise Fund, a proprietary fund type, and the Non-Expendable
Trust Fund are accounted for on an "income determination" or "cost
of services" measurement focus. Accordingly, all assets and all
liabilities are included on their balance sheets, and the reported
fund equity provides an indication of the economic net worth of the
fund. Operating statements for the Enterprise Fund report increases
and decreases in total economic net worth.
MODIFIED ACCRUAL BASIS OF ACCOUNTING
The modified accrual basis of accounting is followed in the governmental
fund types. Under this basis of accounting, revenues are recognized
when they become susceptible to accrual, i.e. , both measurable and
available to finance expenditures of the current period. Available
means then due, or past due and receivable within the current period
and collected within the current period or expected to be collected
soon thereafter to be used to pay liabilities of the current period.
Such time thereafter shall not exceed 60 days. Expenditures are re-
corded when the 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-
1
I
NOTES TO FINANCIAL STATEMENTS - 6
I
' 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, 1987.
Property taxes collected within sixty days subsequent to
September 30, 1987 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
e 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
e these financial statements represent the unused portion of vaca-
tion at September 30, 1987. Longevity begins to accrue after one
year of employment and is paid each December. "Comp-time" accrues
each pay period and cumulative "comp-time" is payable to the em-
ployee upon termination. Sick pay, vacation, longevity, and
"comp-time" will be liquidated with current resources and there-
fore are accrued in the General and Enterprise Funds. As of
September 30, 1987, accrued sick pay, vacation, longevity pay
and "comp-time" were as follows:
' Fund Sick Pay Vacation Longevity "Comp-Time" Total
General Fund $165, 168 $50,457 $ 8,008 $68,083 $291,716
Enterprise Fund 18,354 6,168 2,352 6,867 33,741
1 $183,522 $56,625 $10,360 $74,950 $325,457
' (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. Sanitation fees and Revenue Sharing entitle-
' ments are recorded when earned.
(7) Investment earnings are not accrued in the governmental fund types
and Non-Expendable Trust Funds since it is not material . Earnings
are recorded upon maturity of investments. Cash investments are
stated at cost.
-4 3-
I
NOTES TO FINANCIAL STATEMENTS - 7
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. BASIS OF ACCOUNTING (continued) 11
MODIFIED ACCRUAL BASIS OF ACCOUNTING (continued)
11
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. Unbilled accounts receivable for
services are not material and have not been accrued in the Enterprise
Fund.
C. BUDGETS
GENERAL BUDGET POLICIES 11
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. Adoption of the
budget requires an affirmative vote of at least a majority of all
the members of Council. Adoption of the budget shall constitute
appropriations of the amounts specified therein as expenditures 11
from the funds indicated and shall constitute a levy of the pro-
perty tax therein proposed. Council may amend the budget before
adoption provided that no amendment to the budget shall increase
the authorized expenditures to an amount greater than the total of
estimated income plus funds available from prior years.
(2) If during the fiscal year the City Manager certifies that there
are available for appropriation revenues in excess of those esti-
mated in the budget, the Council by ordinance may make supplemental
appropriation for the year up to the amount of such excess.
(3) At any time during the fiscal year, the City Manager may transfer
part or all of any unencumbered appropriation balance among pro-
grams within a department, division, or office. However, the legal
level of control is the total approved budget for each fund.
(4) 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
11
NOTES TO FINANCIAL STATEMENTS - 8
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. BUDGETS (continued)
GENERAL BUDGET POLICIES (continued)
(5) 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).
(6) Every appropriation, except an appropriation for a capital expendi-
ture, shall lapse at the close of the fiscal year. An appropriation
for a capital expenditure shall continue in force until the purpose
for which it was made has been accomplished or abandoned; the pur-
pose of any such appropriation shall be deemed abandoned if three
years pass without any disbursement from or encumbrance of the
appropriation.
The City of Friendswood has complied with all budget requirements for
the year ended September 30, 1987.
D. FIXED ASSETS
Fixed assets are stated at cost or, if the cost is not determinable, at
estimated cost. Donated fixed assets are recorded at their estimated
fair value on the date received. Costs incurred for the purchase or
construction of general fixed assets are recorded as capital outlay
expenditures in the General 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.
I
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NOTES TO FINANCIAL STATEMENTS - 9 11
11
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. DEBT SERVICE !I
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
All taxes due the City on real or personal property are payable at the 11
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 11
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
11
statements indicate that totals are presented only for overview infor-
mational purposes. Data in these columns do not present financial
position, results of operations or changes in financial position in
conformity with generally accepted accounting principles. 11
H. ALLOWANCES
Allowance for doubtful accounts has been recorded at September 30, 1987
as follows:
Fund Type of Account Amount !I
Enterprise Fund Water and Sewer billings $19,972
General Fund Sanitation billings 2,50011
!I
-46- 1
1
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
1 General Fund
Capital Projects Fund $ 20,000
Special Revenue Fund (Mowing Fund) $ 104
Debt Service Fund 24,486
Special Revenue Fund (Mowing Fund)
General Fund 104
Debt Service Fund
General Fund 24,486
1 Capital Projects Fund
Enterprise Fund 608,623
General Fund 20,000
Enterprise Fund
Capital Projects Fund 608,623
TOTAL ALL FUNDS $653,213 $653,213
4. DEPOSITS AND INVESTMENTS
At September 30, 1987 the carrying amount of the City's deposits in banks
11 was $2,222,544 and the bank balance was $2,242,659. Of the bank balance,
$100,000 was covered by federal depository insurance; U. S. government
securities and municipal bonds in the amount of $2,500,000 were pledged
as collateral. Such securities were held in safekeeping in the City's
name for the pledging bank at the pledging bank's correspondent bank.
The City had no other investments.
State law authorizes the City to invest in:
11 (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
11 a nationally recognized investment rating firm and having received a
rating of not less than A or its equivalent;
1
-47-
11
NOTES TO FINANCIAL STATEMENTS - 11 II
II
4. DEPOSITS AND INVESTMENTS (continued)
(e) certificates of deposit issued by state and national banks domiciled inII
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 II
have a market value of not less than the principal amount of the
certificates; and
II
(f) fully collateralized by direct repurchase agreements.
5. FIXED ASSETSII
A summary of changes in general fixed assets for the year ended
September 30, 1987 follows:
II
Balance at Balance at
Sept . 30, Sept. 30,
1986 Additions Retirements 198711
Land $ 911,728 $ 53,406 $ 965,134
Buildings 1,013,664 719,554 1, 733,218II
Improvements 7,037,275 574,649 7,611,924
Equipment 1,868,192 338,101 $ 68,133 2,138,160
Construction in
progress 1,154,850 857,987 1 ,165,115 847,722
TOTAL $11,985,709 $2,543,697 $1 ,233,248 $13,296,158
II
A summary of changes in Enterprise Fund fixed assets for the year ended
September 30, 1987 follows: 11
Balance at Balance at
Sept . 30, Sept. 30,
1986 Additions Retirements 1987 II
Land $ 135,387 $ 135,387
Plant and equipment 5,246,359 $ 288,074 5,534,433 !I
Plant and equipment
Blackhawk 9,255,084 494,459 9,749,543
Water and sewer lines 5,178, 139 9,938 5, 188,077
II
Drainage 1, 171,064 - 1, 171,064
Storm sewers 637,671 - 637,671
Construction in
progress 639,977 738,080 $ 710,385 667,672 !I
TOTAL 22,263,681 1,530,551 710,385 23,083,847
11
-4811-
11
NOTES TO FINANCIAL STATEMENTS - 12
5. FIXED ASSETS (continued)
Balance at Balance at
Sept. 30, Sept . 30,
1986 Additions Retirements 1987
Less allowance for
depreciation 3,263,354 569,008 3,832,362
NET PROPERTY, PLANT
AND EQUIPMENT $19,000,327 $ 961,543 $ 710,385 $19,251,485
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 to be
developed by Bay Area Land Company. The $1,200,000 payment is to be
credited to connection fees that are to be levied by the City for areas
within the property during the term of the utility allocations. As of
September 30, 1986, the City had fulfilled its obligation on the con-
tract and the revenue was recorded in 1985-86.
11 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 $433,786 to the Authority for operation and
management services for the year ended September 30, 1987.
D. The City renewed a contract with Best Waste Systems, Inc. on November 1,
1985 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, 1988 with an option of renewal for an additional three
-49-
11
11
NOTES TO FINANCIAL STATEMENTS - 13
11
6. COMMITMENTS (continued)
years. The residential collection fee is set at $6.80 per month. 11
Small commercial fees are $32.89 per month, and the fee varies for
commercial container pick-up as to the size of the container.
11
E. The City had the following construction commitments at September 30,
1987:
COMMITMENTS 11
OUTSTANDING
CONTRACT PERCENT AT
CONTRACTOR DESCRIPTION AMOUNT COMPLETED SEPT. 30, 1987
T. E. Burke Police Department
Additions $ 42,150 0 $ 42,150
Harris County Bay Area Blvd.
Mud #55 Waterline 252,408 0 252,408
II
City of Houston Southeast Water
Purification Plant 3,300,000 18 2,700,000
3
Beach Construction Street Project IV 336,533 0 336,533
T. E. Burke Renwick Park - !I
Concession Stand 41 ,850 0 41,850
Lawrence W. City Hall -
11
Speck Architectural
Services 93,000 80 18,600
$4,065,941 $3,391,54111
7. LONG TERM DEBT !I
Changes in Bonded Debt of the City during the year ended September 30,
1987 are summarized as follows:
!I
General Long-Term Debt
Bonded Capital Revenue
Debt Leases Bonds Total
!I
Balance at October 1, 1986 $10,650,778 $57,992 $1,370,000 $12,078,770
Additions - Capital leases - 63,236 - 63,236
Debt retired 585,000 35,385 125,000 745,385 :I
BALANCE AT SEPTEMBER 30, 1987 $10,065,778 $85,843 $1,245,000 $11,396,621
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NOTES TO FINANCIAL STATEMENTS - 14
II
7. LONG-TERM DEBT (continued)
Long-term debt at September 30, 1987 is comprised of the following:
Principal Balance Due
11
Balance Within One
Description Sept. 30, 1987 Year
General Obligation Bonds
Refunding Bonds, Series 1986 $10,065,778 $660,000
11 Capital Leases
Computer Lease 5,593 5,593
I Radio Lease 17,014 4,620
Computer Lease (Police) 40,569 8,773
Truck Lease 22,667 11,335
11 TOTAL 85,843 30,321
Revenue Bonds
11 Waterworks and Sanitary Sewer System Revenue Bonds,
Series 1969 due in installments of $20,000
II to $50,000 through March 1, 1999, interest at
6.125 to 6.50 percent. 440,000 25,000
Waterworks and Sewer System Revenue Bonds,
IISeries 1979 due in installments of $5,000
to $100,000 through March 1, 1996, interest at
5.50 to 6.50 percent. 805,000 100,000
11 TOTAL 1,245,000 125,000
11 TOTAL LONG- $11,396,621 $815,321
TERM DEBT
II
Capital lease requirements are as follows:
Total Present Value Amount
Year Ending Lease of Minimum Representing
11 Sept. 30 Payments Lease Payments Interest
1987 $35,868 $30,321 $ 5,547
1988 30,189 26,085 4,104
1989 18,856 16,245 2,611
1990 14,186 13,192 994
II $99,099 $85,843 $13,256
11 -51-
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NOTES TO FINANCIAL STATEMENTS - 15 iim
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7. LONG-TERM DEBT (continued)
The total long-term debt of the City (general obligation and revenue) by
maturity date is as follows: 60
Year Ending Total _
Sept. 30 Principal Interest Total 16
1988 $ 815,321 $ 707,684 $ 1,523,005IP
1989 806,085 664,417 1,470,502
ilo
1990 816,245 617, 149 1,433,394
1991 858, 192 565,256 1,423,448
1992 925,000 508,233 1,433,2331!
1993 970,000 444,878 1,414,878
1994 1 ,025,000 376,278 1,401,278
1995 995,000 306,978 1,301,978
11
1996 980,000 237,629 1,217,629
1997 1,035,000 165,093 1,200,093
1998 845,000 96,634 941,634
1999 885,000 32,844 917,84411
2000 310,834 559,166 870,000
2001 55,898 114,102 170,000
2002 27,209 62,791 90,00011
2003 24,993 65,007 90,000
2004 21,844 63,156 85,000
TOTAL LONG 11
-
TERM DEBT $11, 396,621 $5,587,295 $16,983,916
11
In ye
ars,prior 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. Accord11
-
ingly, the trust accounts and the defeased bonds are not included in the
City's financial statements. At September 30, 1987, the following out-
standing bonds are considered defeased:
11
Outstanding
Series Principal
11
Waterworks and Sewer System Unlimited Tax Bonds, Series 1962 $ 150,000
Waterworks and Sewer System Unlimited Tax Bonds, Series 1963 49,000
Sewer Improvement Bonds, Series 1967 15,000
General Obligation Refunding Bonds, Series 1969 94,000 11
General Obligation Bonds, Series 1973 15,000
Drainage Improvement Bonds, Series 1973 100,000
General Obligation Bonds, Series 1974 615,000
11
Street Improvement bonds, Series 1977 1,155,000
General Obligation Bonds, Series 1979 250,000
Street Improvement Bonds, Series 1982 1,340,000II
-52II-
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NOTES TO FINANCIAL STATEMENTS - 16
1
7. LONG-TERM DEBT (continued)
Outstanding
Series Principal
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1964 350,000
Waterworks and Sewer System Combination Tax and Revenue
Refunding Bonds, Series 1972 660,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1967 25,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1967-A 600,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
I/ Series 1972 490,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1974 670,000
WCID #108, Waterworks and Sewer System Combination Tax and
Revenue Bonds, Series 1971-A 420,000
WCID #108, Waterworks and Sewer System Unlimited Tax and
e Revenue bonds, Series 1971-A 165,000
Certificate of Obligation, Series 1982 8,000
Certificate of Obligation, Series 1983 12,000
$7,183,000
A number of limitations and restrictions are contained in the various bond
ordinances. The City has complied with all significant limitations and
restrictions.
e8. CONTRIBUTED CAPITAL
A summary of changes in Contributed Capital during the year ended
eSeptember 30, 1987 and 1986 follows:
11
11
-53-
11
NOTES TO FINANCIAL STATEMENTS - 17
11
8. CONTRIBUTED CAPITAL (continued)
Year Ended Sept. 30,
1987 1986
Contributed capital at beginning of year $14,766,347 $12,551 ,492
Add net equity in assets acquired in annexation - 2,409,855
11
Deduct equity transfer to General Fund - (195,000)
CONTRIBUTED CAPITAL AT END OF YEAR $14,766,347 $14,766,34711
9. 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 to11
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
11
what would have been contributed by the employee, with interest, prior to
establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee's accumulated
contributions. In addition, the City can grant another type of monetary
credit referred to as an updated service credit which is a theoretical
amount which, when added to the employee's accumulated contributions and
the monetary credits for service since the plan began, would be the total 3
monetary credits and employee contributions accumulated 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
11
of his salary in the last three years. At retirement, the benefit is
calculated as if the sum of the employee's accumuated contributions and the
employer-financed monetary credits with interest were used to purchase an11
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 11
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,
-54 11
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I
11 NOTES TO FINANCIAL STATEMENTS - 18
9. PENSION PLAN (continued)
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.
The contribution rate for the employees is 5%, and the City matching
percent is currently 100% of the employees contribution, both as adopted
by the governing body of the City. Under the state law governing TMRS, the
City contribution rate is annually determined by the actuary. Part of the
City contribution rate (the normal cost) is to fund the currently accruing
monetary credits, with the other part (the prior service contribution rate)
calculated as the level percent of payroll needed to amortize the unfunded
actuarial liability over the remainder of the plan's 25-year amortization
period. When the City periodically adopts updated service credits and
increases in annuities in effect, the increased unfunded actuarial lia-
bility 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, 1986. The unit credit actuarial cost method is used
for determining the City contribution rate. Contributions are made monthly
by both the employees and the City. Since the City needs to know its
contribution rate in advance to budget for it, there is a one-year lag
between the actuarial valuation that is the basis for the rate and the
calendar year when the rate goes into effect.
The City's total payroll in fiscal year 1987 was $2,518,444 and the City's
contributions were based on a payroll of $2,132,015. Both the City and the
covered employees made the required contributions, amounting to $73,092
(3.11% of covered payroll for the months in calendar year 1986 and 3.51%
for the months in calendar year 1987) for the City and $106,435 (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 1987 by 0.10% of payroll. There were no related-party
transactions.
1 Even though the substance of the City's plan is not to provide a defined
benefit in some form, some additional voluntary disclosure is appropriate
due to the nontraditional nature of the defined contribution plan which had
' an initial unfunded pension benefit obligation due to the monetary credits
granted by the City for services rendered before the plan began and which
can have additions to the unfunded pension benefit obligation through the
periodic adoption of increases in benefit credits and benefits. The pension
benefit obligation shown below is similar in nature to the standardized
disclosure measured required by GASB Statement No. 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, 1986. Because of the money-purchase nature
' of the plan, the interest rate assumption, currently 5% per year, does not
-55-
3
NOTES TO FINANCIAL STATEMENTS - 19
9. PENSION PLAN (continued) 11
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 108% of book value as of
December 31, 1986.
Pension Benefit Obligation
Annuitants $ 24,39111
Members
Accumulated employee contributions including
allocated invested earnings 582,849
Employer-financed vested 525,260
Employer-financed nonvested 188,965
Total 1,321,465 1
Net assets Available for Benefits,
at Book Value 979,872
Unfunded Pension Benefit Obligation $ 341,593
The book value of assets is amortized cost for bonds and original cost for
short-term securities and stocks. The actuarial assumptions used to com-
pute the actuarially determined City contribution rate are the same as
those used to compute the pension benefit obligation. The numbers above
reflect the adoption of changes in the plan since the previous actuarial
valuation, which had the effect of increasing the unfunded pension benefit
obligation by $48, 163.
10. TRANSFERS AND RESIDUAL EQUITY TRANSFERS
A non-routine transfer from the Enterprise Fund in the aggregate of I
$2,718,359 was made to the General and Capital Projects Funds. These
transfers are being used to fund the City's street projects paving pro-
grams and to subsidize the expenditures over revenues of the General Fund.
Operating transfers and residual equity transfers during the year ended
September 30, 1987 were as follows:
Amount
Transferred
In (Out)
!I
General Fund
Enterprise Fund $ 604,843
Special Revenue Fund (42,461) 11
562,382
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NOTES TO FINANCIAL STATEMENTS - 20
11 10. INTERFUND TRANSACTION (continued)
11 Amount
Transferred
In (Out)
II Special Revenue Fund
General Fund 42,461
II Capital Projects Fund
Enterprise Fund 2,113,516
11 Enterprise Fund
General Fund (604,843)
Capital Projects Funds (2,113,516)
(2,718,359)
li
NET DIFFERENCE $ -0-
II11. BLACKHAWK REGIONAL WASTE TREATMENT PLANT
II 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
II 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, 1987
IIare as follows:
City of Friendswood 52.71%
II City of Houston 15.94%
Harris County MUD #55 20.28%
CDC, Inc. 11.07%
II100.00%
II As of September 30, 1987 the following unaudited financial information was
available from the operator:
IITotal assets $147,701
Total liabilities $204,554
IIFund balance (deficit) (56,853)
$147,701
II
II -5 7-
q
NOTES TO FINANCIAL STATEMENTS - 21
11. BLACKHAWK REGIONAL WASTE TREATMENT PLANT (continued) !I
Total revenues $440,512
Total expenses 497,364
Net (Loss) $(56,852)
12. RESTATEMENT OF PRIOR PERIOD !I
41 Certain account balances for the year ended September 30, 1986 fiscal year
report have been restated to correct errors, including (1) property tax
receipts and fines and forfeitures received but not recorded as revenue in
the prior year, (2) franchise tax revenue accrued which was not consistent
with prior years' reports, (3) tax receipts allocated incorrectly between 441
general and debt service revenues, (4) accrued wages which were overstated,
(5) accrued employee benefits that should be charged to operations, (6)
additional Blackhawk operating reserve that was expensed, (7) customer11
utility deposits recorded as income and (8) other amounts. The effect of
such restatements are as follows:
As Reported As Restated 11
General Fund
11
Assets
Receivables $ 108,454 $ 59,626
Liabilities
Accounts payables and accrued11
liabilities 296,258 441,684
Fund Balances
Unreserved 55,582 (117,619)
Debt Service Fund
Assets
Receivables 92,885 121,903
Fund Balance
Designated for debt services 430,288 459,306
11 Capital Projects Fund
Liabilities
Accounts payable 246,106 233,109
11
Fund Balance
Designated for construction (216,639) (203,642)
Enterprise Fund
Assets
Blackhawk operating fund equity 43,871 64,772
Liabilities
Accounts payable 24,485 21,607
Deposits 67,023 85,200
Retained Earnings
Unreserved 2,550,352 2,535,053 11
-58-
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11
NOTES TO FINANCIAL STATEMENTS - 22
I
e12. RESTATEMENT OF PRIOR PERIOD (continued)
As Reported As Restated
General Long-term Debt
Amount to be provided for retirement
of long-term debt 10,440,397 10,278,482
Employee benefits payable 161,915 -0-
13. ANNEXATION
eDuring 1985-86 the City annexed the Forest Bend subdivision known as Water
Control and Improvement District No. 108. The annexation resulted in an
increase in equity of the General Fund by $336,397, the Debt Service Fund by
11 $195,492, and the Enterprise Fund by $2,409,855.
14. SEGMENT INFORMATION
11 The Enterprise Fund provides three services financed by user charges:
water, sewer and sanitation. Segment information for the year ended
September 30, 1987 follows:
Water Sewer Total
Operating revenue $ 2, 141,339 $ 1,017,641 $ 3, 158,980
Operating expense 589,379 898,289 1 ,487,668
Operating income
before depreciation 1,551 ,960 119,352 1,671 ,312
Depreciation expense 284,504 284,504 569,008
eNet operating
income (loss) $ 1,267,456 $ (165,152) $ 1, 102,304
_=
Non-operating income
(loss) $ (3, 159) $ (3, 159) $ (6,318)
1
Property, plant and
equipment $11,541 ,923 $11,541,924 $23,083,847
Less allowance for
depreciation 1 ,916,181 1,916,181 3,832,362
$ 9,625,742 $ 9,625,743 $19,251,485
11 1
-59-
11
NOTES TO FINANCIAL STATEMENTS - 23
15. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General fund expenditures of $5, 198,245 exceeded appropriations of
$5,189,649. The Special Revenue (Mowing) fund expenditures of $11,685
exceeded appropriations of $8,000.
16. CONTINGENCIES
The City was involved in several pending lawsuits at September 30, 1987.
A summary of the more significant of these follows:
In Cause No. 84-18110, Paul Durham, et ux vs. TRW, Inc. , et al, filed in
the District court of Harris County, Texas, 234th Judicial District, the
plaintiffs seek recovery from a number of defendants for alleged damages
to their home as a result of an inadequate sanitary sewage facility. The
City was not a named defendant but assumes the defense of same as successor
to the Clearwoods Improvements District. The City has reached a tentative
settlement in this case whereby the City will pay to the plaintiffs $200
and waive any City permit fees for plaintiffs to connect their sewer
service line to the City main.
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 11
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. The
City Attorney does not believe the City faces exposure to significant
liability in this 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, 1987.
I
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INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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GENERAL FUND
The General Fund accounts for the resources used
to finance the fundamental operations of the City.
It is the basic fund of the City and covers all
activities for which a separate fund has not been
established.
11
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GENERAL FUND EXHIBIT A-1
IICOMPARATIVE BALANCE SHEET
1 CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
II1987 1986 +
(Restated)
1 ASSETS
IICash - including certificates of deposit $ 751,230 $ 21,586
Receivables - net where applicable of
allowances for doubtful accounts
1 Property taxes 223,630 235,396
Accounts 26,874 59,626
Grantor agencies 5,087 3,314
IIDue from other funds 44,486 218,486
IIPrepaid expenditures 6,425 21,053
TOTAL ASSETS $1 ,057,732 $ 559,461
11 LIABILITIES AND FUND BALANCE
1 LIABILITIES
Accounts payable $ 274,788 $ 107,783
IIAccrued expenditures 352,764 333,901
Deferred revenue 223,630 235,396
11 Due to other funds 104 -
TOTAL LIABILITIES 851,286 677,080
1 FUND BALANCE
Reserved for encumbrances 78,780
11
Reserved for prepaid expenditures 6,425 21,053
1 Unreserved
Undesignated 121,241 (138,672)
TOTAL FUND BALANCE 206,446 (117,619)
IITOTAL LIABILITIES AND
FUND BALANCE $1,057,732 $ 559,461
-65-
II
II
GENERAL FUND EXHIBIT A-2
STATEMENT OF REVENUES - BUDGET AND ACTUALII
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987 II
11
1987
VARIANCE-
FAVORABLE 1986II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES I
Taxes
General Property $2,986,200 $3,092,013 $105,813 $2,761,746
II
Sales 500,000 517,943 17,943 483,629
Franchise 318,000 332,432 14,432 297,585
Other 1,000 996 (4) 1,106
II
TOTAL TAXES 3,805,200 3,943,384 138,184 3,544,066
Charges for services 479,000 525,592 46,592 470,17711
Fines and forfeitures 132,587 184,359 51,772 159,622
Licenses and permits 111,497 124,913 13,416 148,740 II
Inter-governmental revenues 91,737 92,901 1,164 63,286
II
Interest income 37,000 43,801 6,801 56,155
Insurance settlements - - - 1,938II
Other 21,700 44,978 23,278 18,502
TOTAL REVENUE $4,678,721 $4,959,928 $281,207 $4,462,486 1
II
II
II
-66- 1
I
IIGENERAL FUND EXHIBIT A-3
11 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL -
BY FUNCTION
1 CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987
1 1987
VARIANCE-
FAVORABLE 1986
11 BUDGET ACTUAL (UNFAVORABLE) ACTUAL
11 General Government
Administration $1 ,106,094 $1 ,109,926 $ (3,832) $ 985,923
Municipal court 62,721 64,389 (1 ,668) 63,240
Engineering 75,204 80,412 (5,208) 60,222
II Inspection 88,750 93,594 (4,844) 52,954
Planning and zoning 37,418 31,400 6,018 40,204
Total General Government 1,370,187 1,379,721 (9,534) 1,202,543
1 Public Safety
Police 1,499,440 1,500,254 (814) 1,311,697
Fire and ambulance 313,064 302,923 10,141 421,698
II Humane 50,923 60,573 (9,650) 35,762
Civil defense 3,000 6,788 (3,788) 9,292
Total Public Safety 1,866,427 1,870,538 (4,111) 1,778,449
IIPublic works
Streets 620,365 635,281 (14,916) 643,305
1 Drainage 75,400 71,359 4,041 75,007
Total Public Works 695,765 706,640 (10,875) 718,312
Sanitation 465,000 519,527 (54,527) 484,851
1 Total Sanitation 465,000 519,527 (54,527) 484,851
Culture and Recreation
1 Library 292,832 298,060 (5,228) 211,930
Parks and recreation 315,789 243,012 72,777 231,163
Community activities 71 ,149 72,251 (1,102) 4,796
1 Swimming pool 77,000 73,496 3,504
Total Culture and Recreation 756,770 686,819 69,951 447,889
1 Community Counseling Center 35,500 35,000 500 38,020
Total Community Counseling 35,500 35,000 500 38,020
I TOTAL EXPENDITURES
BEFORE TRANSFERS $5,189,649 $5,198,245 $ (8,596) $4,670,064
II
1 -67-
Il
GENERAL FUND EXHIBIT A-4II
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 1 of 4
CITY OF FRIENDSWOOD, TEXAS II
Year ended September 30, 1987
1987
VARIANCE-
FAVORABLE 1986
II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
General Government
Administration 11
Personal services $ 332,321 $ 290,057 $ 42,264 $ 297,300
Supplies 34,650 23,613 11,037 31,606
Other services andI/
charges 635,562 688,276 (52,714) 608,595
Maintenance 25,778 43,428 (17,650) 23,690
Capital outlay 77,783 64,552 13,231 24,732
1,106,094 1,109,926 (3,832) 985,923 II
Municipal court
Personal services 57,621 59,172 (1,551) 58,453 11
Supplies 2,400 1,673 727 2,423
Other services and
charges 2,325 3, 172 (847) 1,28911
Maintenance 375 372 3 150
Capital outlay - - - 925
62,721 64,389 (1 ,668) 63,240
II
Engineering
Personal services 55,576 52,495 3,081 -
Supplies 1,888 2,958 (1,070) -
Other services and
charges 17,190 24,170 (6,980) 60,222
Maintenance 550 504 46 11
-
Capital outlay - 285 (285) -
75,204 80,412 (5,208) 60,222
Inspection II
Personal services 69,832 76,061 (6,229) 47,328
Supplies 3,618 4,007 (389) 3,010
Other services and
charges 3,100 1,350 1,750 1,203
Maintenance 1,000 1,067 (67) 998
Capital outlay 11,200 11,109 91 415II
88,750 93,594 (4,844) 52,954
II
11
-68- 1
I!
11 GENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 2 of 4
11
1987
I VARIANCE-
FAVORABLE 1986
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
11 General government (continued)
Planning and Zoning
Personal services 30,318 28,927 1,391 32,200
11 Supplies 550 280 270 649
Other services and
charges 5,900 1,779 4,121 7,355
II Maintenance 350 139 211 -
Capital outlay 300 275 25 -
37,418 31,400 6,018 40,204
Total General
Government 1,370,187 1,379,721 (9,534) 1,202,543
Public Safety
I Police Service
Personal services 1,225,497 1,235,434 (9,937) 1,020,428
Supplies 83,267 76,552 6,715 69,068
Other services and
I! charges 47,396 59,307 (11,911) 41,174
Maintenance 76,180 67,932 8,248 64,391
Capital outlay 67,100 61,029 6,071 116,636
11 1 ,499,440 1,500,254 (814) 1,311,697
Fire and Ambulance
11 Personal services 67,067 72,916 (5,849) 63,756
Supplies 53,493 4,289 49,204 4,153
Contract services 10,000 40,000 (30,000) 34,000
Other services and
IIcharges 61,468 148,017 (86,549) 122,971
Maintenance 49,796 2,577 47,219 8,706
Capital outlay 71,240 35,124 36,116 188,112
II313,064 302,923 10,141 421,698
Humane
II Personal services 34,330 31,960 2,370 27,491
Supplies 2,640 4,049 (1 ,409) 4,351
Other services and
charges 1,255 10,543 (9,288) 1,400
II Maintenance 800 1,835 (1,035) 2,520
Capital outlay 11 ,898 12,186 (288) -
50,923 60,573 (9,650) 35,762
II
II
I -69-
II
GENERAL FUND EXHIBIT A-4
11
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 3 of 4
11
1987
VARIANCE-
FAVORABLE 1986II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Public Safety (continued)
II
Civil Defense
Supplies 850 204 646 593
Other services and
charges 850 60 790 121II
Maintenance 1,300 6,524 (5,224) 8,578
3,000 6,788 (3,788) 9,292
Total Public Safety 1,866,427 1,870,538 (4,111) 1,778,449 11
Public Works
11
Streets
Personal services 336,190 335,492 698 342,676
Supplies 93,725 93,066 659 87,316
Other services and11
charges 92,775 123,250 (30,475) 108,078
Maintenance 53,075 53,340 (265) 56,880
Capital outlay 44,600 30,133 14,467 48,35511
620,365 635,281 (14,916) 643,305
Drainage
Supplies 1,400 708 692 90 11
Maintenance 24,000 13,281 10,719 24,917
Capital outlay 50,000 57,370 (7,370) 50,000
75,400 71,359 4,041 75,00711
Total Public Works 695,765 706,640 (10,875) 718,312
Sanitation 11
Contract services 465,000 509,461 (44,461) 484,851
Provision for
II
uncollectible accounts - 10,066 (10,066) -
Total Sanitation 465,000 519,527 (54,527) 484,851II
Culture and Recreation
Library
Personal services 162,585 170,510 (7,925) 149,690 II
Supplies 36,598 36,776 (178) 29,931
Other services and
charges 25,379 23,375 2,004 21,659 II
Maintenance 4,770 4,530 240 4,250
Capital outlay 63,500 62,869 631 6,400
292,832 298,060 (5,228) 211,930II
-70II-
II
IIGENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 4 of 4
I
1987
VARIANCE-
IFAVORABLE 1986
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
II Culture and Recreation (continued)
Parks and Recreation
Personal services 82,884 98,024 (15, 140) 109,268
II Supplies 83,350 19,979 63,371 36,222
Other services and
charges 22,800 31,643 (8,843) 49,133
Maintenance 22,900 17,811 5,089 19,043
IICapital outlay 103,855 75,555 28,300 17,497
315,789 243,012 72,777 231,163
11 Community Activities
Personal services 25,607 24,985 622 69
Supplies 28,625 17,737 10,888 923
11 Other services and
charges 14,217 26,081 (11,864) 1,882
Maintenance 2,700 1 ,208 1,492 1,922
Capital outlay - 2,240 (2,240) -
11 71,149 72,251 (1,102) 4,796
Swimming Pool
11 Personal services 37,000 30,724 6,276
Supplies 21,000 16,855 4, 145 -
Maintenance 4,000 3,378 622 -
II Capital outlay 15,000 22,539
73,496 (7,539)
77,000 3,504 -
Total Culture and Recreation 756,770 686,819 69,951 447,889
II
Community Counseling
Center
II Contract services 30,000 30,000 - 30,000
Other services and
charges 5,500 5,000 500 8,020
IITotal Community Counseling 35,500 35,000 500 38,020
EXPENDITURES BEFORE
11 OPERATING TRANSFERS 5,189,649 5,198,245 (8,596) 4,670,064
OPERATING TRANSFERS OUT 42,461 42,461 - 1 ,254,599
1 TOTAL $5,232,110 $5,240,706 $ (8,596) $5,924,663
1
1 -71-
1
I
1
I
e
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 accounts for the receipt and disbursement of funds
ereceived 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
I
1
-73-
I!
I!
SPECIAL REVENUE FUNDS EXHIBIT B-1
IICOMBINING BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
11 September 30, 1987
IIREVENUE PARKS AND FINE ARTS TOTAL
SHARING RECREATION MOWING COMMISSION 1987 1986
11 ASSETS
Cash - including
11 restricted cash $15,473 $10,680 $ 5,748 $614 $32,515 $90,545
Accounts receivables
11 Liens 15,013 15,013 7,113
Due from other funds _ 104 104 -
II
TOTAL ASSETS $15,473 $10,680 $20,865 $614 $47,632 $97,658
I!
LIABILITIES AND FUND BALANCE
ILIABILITIES
Accounts payable $ 495 $ 155 $ 650 $ 425
11 Deferred revenue
liens receivable 15,013 15,013 -
IITOTAL LIABILITIES 495 15,168 15,663 425
FUND BALANCES
II Reserved for
encumbrances 2,975 2,975 -
IIReserved for parks 10,680 10,680 9,955
Reserved for programs 614 614 1,323
II
Unreserved 12,003 5,697 17,700 85,955
ITOTAL FUND BALANCES 14,978 10,680 5,697 614 31,969 97,233
TOTAL LIABILITIES AND
IIFUND BALANCE $15,473 $10,680 $20,865 $614 $47,632 $97,658
II -75-
!I
SPECIAL REVENUE FUNDS EXHIBIT B-2 11
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES11
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987 11
11
REVENUE PARKS AND FINE ARTS TOTAL
SHARING RECREATION MOWING COMMISSION 1987 1986
11
REVENUES
Intergovernmental
revenues $ 1,114 $ 1,114 $ 60,828 11
Interest income 1 ,324 $ 511 $ 252 $ 47 2,134 3,060
Other revenue 364 364 8,410
TOTAL REVENUES 2,438 875 252 47 3,612 72,298 11
EXPENDITURES (Current)
General government 94,154 94,154
Public works 11,477 11,477 5,467
Culture and recreation 150 5,556 5,706 5,519
TOTAL EXPENDITURES 94,154 150 11,477 5,556 111,337 10,986 11
REVENUES OVER
(UNDER) EXPENDITURES (91,716) 725 (11,225) (5,509) (107,725) 61,312 11
OTHER FINANCING SOURCES
(USES)
Operating transfers in 33,661 4,000 4,800 42,461 9,000
Operating transfers out _ _ _ - (16,472)
TOTAL OTHER FINANCING 11
SOURCES (USES) 33,661 4,000 4,800 42,461 (7,472)
REVENUES AND OTHER 11
SOURCES OVER (UNDER)
EXPENDITURES AND
OTHER USES (58,055) 725 (7,225) (709) (65,264) 53,840 11
Fund balances at
beginning of year 73,033 9,955 12,922 1,323 97,233 43,393 3
FUND BALANCES AT
END OF YEAR $ 14,978 $10,680 $ 5,697 $ 614 $ 31,969 $ 97,233 11
11
-7611-
1
1
SPECIAL REVENUE FUND (REVENUE SHARING) EXHIBIT B-3
COMPARATIVE BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
1
1 1987 1986
ASSETS
Cash $15,473 $73,033
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable $ 495
FUND BALANCE
Reserved for encumbrances 2,975
Unreserved 12,003 $73,033
TOTAL FUND BALANCE 14,978 73,033
1 TOTAL LIABILITIES AND
FUND BALANCE $15,473 $73,033
1
1
1
1
1
1
1
-77-
11
SPECIAL REVENUE FUND (REVENUE SHARING) EXHIBIT B-4 II
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL 11
CITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1987
I
1987
VARIANCE-
FAVORABLE 1986 II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUESII
Federal revenue sharing $ 1, 114 $ 1, 114 $ - $ 60,828
Interest on investments 1 ,300 1 ,324 24 1 ,917
TOTAL REVENUES 2,414 2,438 24 62,745 II
EXPENDITURES
Supplies 3,132 2,593 539 II
Maintenance 750 990 (240)
Capital outlay 105,226 90,571 14,655
TOTAL EXPENDITURES 109,108 94,154 14,954 II
REVENUES OVER (UNDER) EXPENDITURES (106,694) (91,716) 14,978
II
OTHER FINANCING SOURCES (USES)
Operating transfers in 33,661 33,661 - -
Operating transfers (out) - - - (16,472) II
REVENUES OVER (UNDER)
OTHER FINANCING USES (73,033) (58,055) 14,978 46,273II
Fund balance at beginning of year 73,033 73,033 - 26,760
FUND BALANCE AT END OF YEAR $ - $ 14,978 $ 14,978 $ 73,033 II
1
1
1
1
-78 II
-
1
SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-5
COMPARATIVE BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
1
1987 1986
ASSETS
Cash - restricted - including
certificate of deposit 10,680 $9,955
TOTAL ASSETS $10,680 $9,955
11
1 FUND BALANCE
Reserved for park expenditures $10,680 $9,955
TOTAL FUND BALANCE $10,680 $9,955
11
11
1
1
1
1
-79-
11
SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-6 11
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
II
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1987
II
1987
VARIANCE-
FAVORABLE 1986 II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUESII
Interest income $ 511 $ 511 $ $ 721
Other revenue - donations 364 364 -
TOTAL REVENUES 875 875 -0- 721
EXPENDITURES
II
Culture and recreation
Supplies 150 150 -0- -
Other services and charges -
Maintenance 11
-
Capital outlay 800
TOTAL EXPENDITURES 150 150 -0- 800
11
REVENUES OVER (UNDER)
EXPENDITURES 725 725 -0- (79)
II
Fund balance at beginning of year 9,955 9,955 -0- 10,034
FUND BALANCE AT END OF YEAR $10,680 $10,680 $-0- $ 9,955II
11
!I
I
11
-80 11
-
11
SPECIAL REVENUE FUND (MOWING) EXHIBIT B-7
11 COMPARATIVE BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
I
1987 1986
ASSETS
Accounts receivable - liens $15,013 $ 7,113
Cash - restricted 5,748 6,234
TOTAL ASSETS $20,761 $13,347
11
LIABILITIES AND FUND BALANCE
eLIABILITIES
Accounts payable $ 155 $ 425
Deferred liens receivable 15,013 -
I! Due to other funds 104 -
TOTAL LIABILITIES 15,272 425
FUND BALANCE
Unreserved 5,489 12,922
TOTAL LIABILITIES AND
FUND BALANCE $20,761 $13,347
11
1
11 -81-
illi
SPECIAL REVENUE FUND (MOWING) EXHIBIT B-8 !I
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
11
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
11
Year ended September 30, 1987
11
1987
VARIANCE-
FAVORABLE 1986 11
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES11
Other revenue $ 1,000 $ $(1,000) $ 8,410
Interest on investments 250 252 2 422
TOTAL REVENUES 1,250 252 (998) 8,832 11
EXPENDITURES
Public works 11
Other services and charges 8,000 11,685 (3,685) 5,467
REVENUES OVER (UNDER) 11
EXPENDITURES (6,750) (11,433) (4,683) 3,365
OTHER FINANCING SOURCES
Operating transfers in 4,000 4,000 -0- 3,000 11
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES (2,750) (7,433) 4,683 6, 365 11
Fund balance at beginning of year 12,922 12,922 - 6,557
FUND BALANCE AT END OF YEAR $10,172 $ 5,489 $ 4,683 $12,922 11
11
ill
11
!I
11
-8211-
1
SPECIAL REVENUE FUND (FINE ARTS COMMISSION) EXHIBIT B-9
COMPARATIVE BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
1
1987 1986
ASSETS
Cash - restricted $614 $1 ,323
TOTAL ASSETS $614 $1 ,323
FUND BALANCE
Reserved for program expenditures $614 $1,323
TOTAL FUND BALANCE $614 $1 ,323
1
1
1
1
1
1
1
-83-
11
SPECIAL REVENUE FUND (FINE ARTS COMMISSION) EXHIBIT B-10 II
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL11
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987 11
II
1987
VARIANCE-
FAVORABLE 1986II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES
11
Other revenue $ - $ 47 $ 47 $ -
TOTAL REVENUES - 47 47 -
II
EXPENDITURES
Programs 5,800 5,556 244 4,719
II
REVENUES OVER (UNDER)
EXPENDITURES (5,800) (5,509) 291 (4,719)
OTHER FINANCING SOURCES 11
Operating transfers in 4,800 4,800 - 6,000
REVENUES AND OTHER SOURCES 11
OVER (UNDER) EXPENDITURES (1,000) (709) 291 1,281
Fund balance at beginning of year 1,323 1,323 - 42II
FUND BALANCE AT END OF YEAR $ 323 $ 614 $291 $ 1,323
____ I
!I
11
11
I
11
-84-
1
I
1
1
1
1
11 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
11
1
I
I
11
-85-
1
DEBT SERVICE FUND EXHIBIT C-1
COMPARATIVE BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
1987 1986
(Restated)
ASSETS
Cash - including certificate of deposit $546,324 $438,547
Taxes receivable 94,811 121 ,903
TOTAL ASSETS $641,135 $560,450
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable $ 2,840 $ -
Due to other funds 24,486 4,670
Deferred revenue 94,811 96,474
TOTAL LIABILITIES 122,137 101,144
FUND BALANCE
Reserved, designated for debt service 518,998 459,306
TOTAL FUND BALANCE 518,998 459,306
TOTAL LIABILITIES AND FUND BALANCE $641, 135 $560,450
e
1
1
1
1
-87-
II
DEBT SERVICE FUND EXHIBIT C-2 11
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE II
CITY OF FRIENDSWOOD, TEXAS
11
Years ended September 30, 1987 and 1986
II
1987 1986
(Restated)
II
REVENUES
Taxes $1 ,329,330 $ 1,059,789
Interest 45,076 29,30611
TOTAL REVENUES 1,374,406 1,089,095
EXPENDITURES II
Principal retirement 620,386 10,516,427
Interest and fiscal charges 694,328 579,859
II
Bond refunding costs - 580,586
TOTAL EXPENDITURES 1 ,314,714 11,676,872
11
REVENUES OVER
(UNDER) EXPENDITURES 59,692 (10,587,777)
OTHER FINANCING SOURCES (USES) 11
Refunding bond proceeds - Series 1986 - 10,650,778
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES 59,692 63,001
Fund balance at beginning of11
year - as restated 459,306 200,813
Add equity in assets acquired
in annexation - 195,492 II
FUND BALANCE
AT END OF YEAR $ 518,998 $ 459,306
11
11
11
-88 II
-
I
I
I
I
1
I
ICAPITAL PROJECTS FUND
I This fund is used to account for financial resources
to be used for the acquisition and construction of
major capital facilities.
I
I
I
I
I
I
I
I
I -89-
1
CAPITAL PROJECTS FUND EXHIBIT D-1
COMPARATIVE BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
1987 1986
(Restated)
ASSETS
Cash - including certificates of deposit $ 483, 378 $ 29,467
Accounts receivable - State grants 20,000 200,000
11 Due from other funds 608,623
TOTAL ASSETS $1,112,001 $ 229,467
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable $ 28,856 $ 233, 109
Due to other funds 20,000 200,000
1 TOTAL LIABILITIES 48,856 433, 109
FUND BALANCE
Reserved for encumbrances 385, 144
Designated for construciton 678,008 -
Unreserved undesignated - (203,642)
1,063,145 (203,642)
TOTAL LIABILITIES AND FUND BALANCE $1,112,001 $ 229,467
1
1
1
1
-91-
CAPITAL PROJECTS FUND EXHIBIT D-2
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
CITY OF FRIENDSWOOD, TEXAS
Years ended September 30, 1987 and 1986
1987 1986
(Restated)
REVENUES
Interest income $ 11,303 $ 4,849
State grants 408,883
Other revenue 112
TOTAL REVENUES 11 ,303 413,844
EXPENDITURES
Capital outlay 858,032 1,679,836
REVENUES UNDER11
EXPENDITURES (846,729) (1 ,265,992)
OTHER FINANCING SOURCES
Operating transfers in - 1 ,050,191
REVENUES AND OTHER SOURCES
UNDER EXPENDITURES (846,729) (215,801)
Fund balance (deficit) at beginning of
year - as restated (203,642) 12,159
Add residual equity transfer
2,113,516 -
FUND BALANCE
AT END OF YEAR $1 ,063,145 $ (203,642)
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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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ENTERPRISE FUND (WATER AND SEWER)
COMPARATIVE BALANCE SHEET
II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986II
1987 1986 II
(Restated)
ASSETS 11
CURRENT ASSETS
Cash - including certificates of deposit $ 191,793 $ 188,739II
Accounts receivable - less allowance
for uncollectibles 288,189 469,134
Accrued interest 4,056 3,400
II
TOTAL CURRENT ASSETS 484,038 661 ,273
RESTRICTED ASSETS 11
Cash - including certificates of deposit 201,335 1,415,928
Blackhawk operating fund equity 109,279 64,772
TOTAL RESTRICTED ASSETS 310,614 1,480,700 11
PROPERTY, PLANT AND EQUIPMENT - at cost
Land 135,387 135,387 II
Buildings, improvements, and equipment 22,280,787 21,488,317
Construction in progress 667,673 639,977
23,083,847 22,263,681 II
Less allowance for depreciation 3,832,362 3,263,354
TOTAL PROPERTY, PLANT AND EQUIPMENT 19,251,485 19,000,327
!!
1!
11
TOTAL ASSETS $20,046,137 $21,142,300 1!
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II EXHIBIT E-1
I
II1987 1986
(Restated)
IILIABILITIES AND FUND EQUITY
II LIABILITIES
Current liabilities (payable from
current assets)
Accounts payable $ 159,928 $ 97,551
I
Accrued expenses 41,779 21,607
Due to other funds 608,623 13,816
I
TOTAL CURRENT LIABILITIES 810,330 132,974
Current liabilities (payable from
II restricted assets)
Accrued interest 6,148 6,704
Current portion of revenue bonds 125,000 125,000
Deposits 59,610 85,200
II190,758 216,904
Long-term liabilities
II Revenue bonds - (less
current portion) 1 ,120,000 - 1 ,245,000
IITOTAL LIABILITIES 2,121 ,088 1 ,594,878
FUND EQUITY
Contributed capital
IIMunicipality 14,766,347 / 14,766,347
Retained earnings
II Reserved for revenue bond retirement 328,414 307,393
Reserved for consruction 686,255 1,873,857
Unreserved 2,144,033 2,599,825
IITOTAL RETAINED EARNINGS 3,158,702 4,781 ,075
TOTAL FUND EQUITY 17,925,049 19,547,422
IITOTAL LIABILITIES AND FUND EQUITY $20,046,137 $21,142,300
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ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-2 II
STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL
II
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987II
II
1987
VARIANCE-
FAVORABLE 1986 II
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Operating revenues I
Water and sewer charges $2,693,903 $2,875,209 $181,306 $2,615,442
Water and sewer tap fees 197,802 176,069 (21,733) 1 ,508,511
WCID #108 sewer fee - - - 31,863II
Fees and penalties 10,560 13,998 3,438 7,734
Other income - 1,305 1 ,305 41 ,845
Grant revenues - 92,399 92,399 -
2,902,265 3,158,980 256,715 4,205,395 II
Operating expenses before
depreciation II
-
See Exhibit E-3 1,417,809 1,487,668 (69,859) 1 ,311,526
OPERATING INCOMEII
BEFORE DEPRECIATION 1,484,456 1,671 ,312 186,856 2,893,869
Depreciation expense 569,008 569,008 - 539,261 1
OPERATING INCOME 915,448 1 ,102,304 186,856 2,354,608
Non-operating income (expense)
II
Interest on investments 43,538 71 ,248 27,710 123,376
Intergovernmental revenue - - -
Interest expense (78,038) (77,566) 472 (83,129) 11
(34,500) (6,318) 28,182 40,247
INCOME BEFORE OPERATING
TRANSFERS 880,948 1,095,986 215,038 2,394,855 II
Operating transfers in - - - 195,408
Operating transfers out 346,911II
NET INCOME $ 880,948 $1 ,095,986 $215,038 $2,243,352
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IIENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-3
STATEMENT OF OPERATING EXPENSES - BUDGET AND ACTUAL
ICITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1987
II 1987
VARIANCE-
11 FAVORABLE 1986
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
II Water
Personal services $ 258,339 $ 235,335 $ 23,004 $ 240,972
Supplies 52,987 66,472 (13,485) 29,424
Other services and charges 149,310 174,675 (25,365) 153,940
I Maintenance 90,600 112,897 (22,297) 132,973
551,236 589,379 (38,143) 557,309
I
Sewer
Personal services 204,998 193,949 11,049 137,289
Supplies 17,188 22,081 (4,893) 14,855
I/ Other services and charges 135,137
109,250 140,007 (4,870) 118,971
Maintenance 108,466 784 165,517
Waste disposal fees 400,000 433,786 (33,786) 317,585
866,573 898,289 (31 ,716) 754,217
II
Operating expenses before
depreciation $1,417,809 $1 ,487,668 $(69,859) $1,311,526
II
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ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-4
SCHEDULE OF REVENUE BONDS PAYABLE
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1987
DATE OF OUTSTANDING
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30, 11
DESCRIPTION RATE ISSUE ISSUE MATURITY 1987
Waterworks and Sanitary - -
Sewer System Revenue
Bonds, Series 1969 6.50 % 5 1 69 $340,000 3-1-90 $ 80,000 1/
6. 125 5-1-69 360,000 3-1-99 360,000
440,000 II
Waterworks and Sanitary
Sewer System Junior Lien
Revenue Bonds,
Series 1979 5. 50 6-1-79 450,000 3-1-88 50,000
5.50 6-1-79 155,000 3-1-92 155,000
5.50 6-1-79 115,000 3-1-93 115,000 II
5.50 6-1-79 235,000 3-1-96 235,000
6.25 6-1-79 100,000 3-1-89 100,000
6.50 6-1-79 150,000 3-1-92 150,000 11
805,000
TOTAL REVENUE BONDS PAYABLE $1,245,000 II
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ENTERPRISE FUND (WATER AND SEWER FUND) I
REVENUE BONDS PAYABLE - BY MATURITY DATE
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1987
I
YEAR ENDING I
SEPT. 30 PRINCIPAL INTEREST TOTAL
1988 $ 125,000 $ 70,025 $ 195,025
1989 125,000 62,525 187,525111
1990 130,000 54,800 184,800
1991 130,000 46,906 176,906
1992 135,000 38,916 173,916 111
1993 135,000 31,022 166,022
1994 135,000 23,378 158,378
1995 140,000 15,581 155,581
1996 45,000 10,244 55,244
1997 45,000 7,503 52,503
1998 50,000 4,594 54, 594
1999 50,000 1,531 51,531I
$1 ,245,000 $367,025 $1 ,612,025
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1 EXHIBIT E-5
I
I
REVENUE BONDS
IWATERWORKS AND WATERWORKS AND
SANITARY SEWER SYSTEM SANITARY SEWER SYSTEM
REVENUE BONDS JUNIOR LIEN REVENUE BONDS
I
SERIES 1969 SERIES 1979
PRINCIPAL INTEREST PRINCIPAL INTEREST
I $ 25,000 $ 26,437 $100,000 $ 43,588
25,000 24,813 100,000 37,712
30,000 23,025 100,000 31 ,775
1 30,000 21 ,131 100,000 25,775
35,000 19,141 100,000 19,775
35,000 16,997 100,000 14,025
35,000 14,853 100,000 8,525
40,000 12,556 100,000 3,025
40,000 10, 106 5,000 138
45,000 7,503
1 50,000 4,594
50,000 1,531
I
$440,000 $182,687 $805,000 $184,338
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TRUST FUND
11 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.
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TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-1
' COMPARATIVE BALANCE SHEET
CITY OF FRIENDSWOOD, TEXAS
1 September 30, 1987 and 1986
1 19
87 1986
' ASSETS
Restricted assets
Cash $19,896 $18,935
Land 57,200 57,200
11 TOTAL ASSETS $77,096 $76, 135
' FUND BALANCE
Reserved for endowments $67,200 $67,200
Unreserved/undesignated 9,896 8,935
TOTAL FUND BALANCE $77,096 $76,135
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TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-2
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND BALANCE ,
CITY OF FRIENDSWOOD, TEXAS
Years ended September 30, 1987 and 1986
1
1987 1986
REVENUES I
Interest income $ 961 $ 812
TOTAL REVENUES 961 812 1
Fund balance at beginning of year 76,135 75,323
FUND BALANCE AT END OF YEAR $77,096 $76,135
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11 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.
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GENERAL FIXED ASSETS EXHIBIT G-1
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
11 CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 and 1986
1987 1986
General fixed assets
' Land $ 965, 134 $ 911,728
Buildings 1,733,218 1,013,664
Improvements 7,611,924 7,037,275
Equipment 2,138, 160 1,868,192
Construction in progress 847,722 1 ,154,850
TOTAL GENERAL FIXED ASSETS $13,296,158 $11,985,709
Investment in General Fixed Assets from
' Capital Projects Funds
General obligation bonds $ 4,572,653 $ 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 5, 167,999
Donations 804,541 804,541
' TOTAL INVESTMENT IN GENERAL FIXED ASSETS $13,296, 158 $11,985,709
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GENERAL FIXED ASSETS EXHIBIT G-2
II
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1987
II
CONSTRUCTION
FUNCTION AND IN
ACTIVITY LAND BUILDINGS IMPROVEMENTS EQUIPMENT PROGRESS TOTAL 11
General Government
Inspections $ - - $ - $ 15,484 $ $ 15,484 II
City hall 10,524 $ 268,733 17,031 461 ,698 - _ 757,986
10,524 268,733 17,031 477, 182 - 773,470
Public Safety '
Police - 28,581 - 460,625 - 489,206
Fire 18,000 230,677 - 693,390 - 942,067 II
Animal Shelter - 1, 389 - 16,870 - 18,259
Civil defense - - - 11,426 - 11,426
18,000 260,647 - 1, 182,311 - 1,460,958 II
Public Works
Street 102,002 112,906 7,007,684 116,608 - 7,339,200
Sanitation 3,500 - 254,997 50,529 - 309,026 II
105,502 112,906 7,262,681 167, 137 - 7,648,226
Community Services
Library 28,838 343, 357 - 142,082 - 514,277 II
Parks and
recreation 802,270 81 ,925 332,212 156,745 - 1,373, 152 II
Swimming pool - 665,650 - 12,703 - 678,353
831,108 1,090,932 332,212 311 ,530 - 2,565,782
Construction in I
progress - - - - 847,722 847,722
TOTAL GENERAL
il
FIXED ASSETS
ALLOCATED TO
FUNCTIONS $965, 134 $1 ,733,218 $7,611,924 $2,138,160 $847,722 $13,296,158 II
II
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IIGENERAL FIXED ASSETS EXHIBIT G-3
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -
IIBY FUNCTION AND ACTIVITY
CITY OF FRIENDSWOOD, TEXAS
IIYear ended September 30, 1987
IIBALANCE AT BALANCE AT
SEPT. 30, 1986 ADDITIONS RETIREMENTS SEPT. 30, 1987
IGeneral Government
Inspections $ 9,570 $ 11,108 $ 5, 194 $ 15,484
II City hall 557,095 200,891 757,986
566,665 211,999 5,194 773,470
Public Safety
I
Police 490,918 61 ,227 62,939 489,206
Fire 906,943 35,124 942,067
Animal shelter 6,073 12,186 18,259
1 Civil defense 11,426 -
108 11,426
1,415,360 , 537 62,939 1,460,958
11 Public Works
Street 6,776,435 443,711 7,220, 146
Sanitation 309,026 309,026
Drainage - 119,054 119,054
II7,085,461 562,765 7,648,226
Community services
1 Library 451,408 62,869 514,277
Parks, recreation
and cemetery 1,311,965 61,188 1,373,153
II Swimming pool - 678,352 678,352
1,763,373 802,409 2,565,782
Construction in
IIprogress 1 ,154,850 857,987 1 ,165,115 847,722
TOTAL $11,985,709 $2,543,697 $1 ,233,248 $13,296, 158
II
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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.
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11
GENERAL LONG-TERM DEBT
STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1987
BALANCE AT
OCT. 1 ,
1986
Amount available in Debt Service Fund $ 459,306
Amount to be provided for retirement
of long-term debt 10,249,464
TOTAL AVAILABLE AND
TO BE PROVIDED $10,708,770 1
Classification of debt
Lease obligation $ 57,992
General obligation bonds 10,650,778 1
TOTAL GENERAL LONG-TERM DEBT $10,708,770
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IEXHIBIT H-1
I
I
I
OBLIGATIONS DEBT SERVICE BALANCE AT
OBLIGATIONS ASSUMED/ FUND SEPT. 30,
RETIRED ISSUED OPERATIONS 1987
I $ 59,692 $ 518,998
I $ 620,385 $63,236 (59,692) 9,632,623
I $ 620,385 $63,236 $ - $10,151 ,621
I
$ 35,385 $63,236 $ 85,843
I585,000 - 10,065,778
I $ 620,385 $63,236 $10,151,621
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GENERAL LONG-TERM DEBT EXHIBIT H-2II
SCHEDULE OF GENERAL LONG-TERM DEBT
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1987 II
DATE OF OUTSTANDING
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30, II
DESCRIPTION RATE ISSUE ISSUE MATURITY 1987
Refunding bonds
Series 1986 5.00% 08-15-86 $660,000 03-01-88 $ 660,000 II
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
7.00 08-15-86 890,000 03-01-94 890,000 I
7. 10 08-15-86 855,000 03-01-95 855,000
7.20 08-15-86 935,000 03-01-96 935,000
7.30 08-15-86 990,000 03-01-97 990,000 II
7.40 08-15-86 795,000 03-01-98 795,000 Il
7.50 08-15-86 835,000 03-01-99 835,000
7.75 08-18-86 310,834 03-01-00 310,834 11
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
7.90 08-18-86 21,844 03-01-04 21,844 II
TOTAL BONDS PAYABLE $10,065,778
Capital Leases: 11
Computer system 12.46 12-15-85 81 ,002 11-15-88 5,593
Radios 10.75 09-15-85 24,000 12-15-90 17,014 II
IBM computer - police 9.50 01-01-87 40,569 01-01-91 40,569
Dump truck 0.00 06-08-87 22,667 01-03-89 22,667
TOTAL CAPITAL LEASES 85,843 II
TOTAL GENERAL LONG-TERM DEBT $10,151,621
II
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GENERAL LONG-TERM DEBTII
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 1 of 2
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1987
II
II
YEAR ENDING TOTAL II
SEPT. 30 PRINCIPAL INTEREST TOTAL
1988 $ 690,321 $ 634,722 $ 1,325,043 / 1
1989 681 ,085 598,766 1 ,279,851
1990 686,245 559, 161 1,245,406
1991 728, 192 515, 100 1,243,292 1
1992 790,000 466,087 1,256,087
1993 835,000 412,231 1,247,231
1994 890,000 352,900 1,242,900
1995 855,000 291,398 1,146,398 II
1996 935,000 227,385 1,162,385
1997 990,000 157,590 1 ,147,590
1998 795,000 92,040 887,040II
1999 835,000 31,313 866,313
2000 310,834 559,166 870,000
2001 55,898 114,102 170,000II
2002 27,209 62,791 90,000
2003 24,993 65,007 90,000
2004 21 ,844 63,156 85,000 1
TOTAL GENERAL
LONG-TERM DEBT $10, 151 ,621 $5,202,915 $15,354,536
II
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II EXHIBIT H-3
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II
REFUNDING BONDS - SERIES 1986
1 INTER CUE SRTRENT INTEREST BONDS COMPOUND INTEREST BONDS
INTEREST
RATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST TOTAL
1 5.00 $ 660,000 $ 629,175 $ 1,289, 175
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
6.75 835,000 412,231 1,247,231
1 7.00 890,000 352,900 1,242,900
7. 10 855,000 291 ,398 1,146,398
7.20 935,000 227 ,385 1, 162,385
II 7.30 990,000 157,590 1,147,590
7.40 795,000 92,040 887,040
7.50 835,000 31,313 866,313
7.75 310,834 559, 166 870,000
' 7.80 55,898 114, 102 170,000
7.85 27,209 62,791 90,000
7.90 24,993 65,007 90,000
1 7.90 21,844 63,156 85,000
II
$9,625,000 $4,325,437 $440,778 $864,222 $15,255,437
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GENERAL LONG-TERM DEBT
11
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 2 of 2
I
1
CAPITAL LEASES
YEAR COMPUTER SYSTEM RADIOS
ENDING INTEREST INTEREST
SEPT. 30 RATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST
1988 12.46 $5,593 $87 10.75 $ 4,620 $1 ,606
1989 10.75 5, 142 1,084
1990 10.75 5,723 503
1991 10.75 1,529 27
1992
1993
1994
1995
1996
1997
1998 1
1999
2000
2001
2002
2003
2004
$5,593 $87 $17,014 $3,220
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EXHIBIT H-3
II
II
IICAPITAL LEASES TOTAL CAPITAL LEASES
NET PRESENT
IBM COMPUTER - POLICE DUMP TRUCK VALUE OF AMOUNT
II
INTEREST MINIMUM REPRESENTING
RATE PRINCIPAL INTEREST PRINCIPAL LEASE PAYMENTS INTEREST TOTAL
' 9.50 $ 8,775 $3,854 $11,333 $30,321 $ 5,547 $35,868
9.50 9,609 3,020 11,334 26,085 4, 104 30,189
9. 50 10,522 2, 108 16,245 2,611 18,856
11 9.50 11,663 967 13,192 994 14,186
II
II
II
II $40,569 $9,949 $22,667 $85,843 $13,256 $99,099
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GENERAL LONG-TERM DEBT EXHIBIT H-4
11
COMPOUND BONDS - ACCRUED INTEREST SCHEDULE
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1987
II
II
YEAR ENDING $310,834 $55,898 $27,209 $24,993 $21,844 1
SEPT. 30 @ 7.75% @ 7.80% @ 7.85% @ 7.90% @ 7.90%
1987 $ 31,384 $ 5,775 $ 2,876 $ 2,703 $ 2,398II
1988 26,523 4,811 2, 362 2, 188 1,915
1989 28,576 5, 186 2,547 2,361 2,066
1990 30,793 5,590 2,747 2,547 2,230 II
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 II
1995 44,723 8, 138 4,008 3,725 3,261
1996 48, 188 8,773 4,323 4,020 3,518
1997 51,923 9,457 4,662 4,337 3,797II
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 5,991
2004 3,171 II
$559,166 $114,102 $62,791 $65,007 $63,156
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COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS EXHIBIT I-1
CITY OF FRIENDSWOOD, TEXAS
' September 30, 1987
eCERTIFICATE INTEREST MATURITY
DESCRIPTION NUMBERS _ RATE DATE AMOUNT
' Certificates of Deposit
I
Texas Commerce Bank,
Friendswood, Texas 8713 5.97% 12-09-87 $ 400,000
' 3958 5.87 10-05-87 350,000
3960 5.82 10-12-87 300,000
3991 6.44 10-19-87 350,000
3992 6.68 10-26-87 350,000
' TOTAL ALL FUNDS $1,750,000
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SCHEDULE OF DELINQUENT TAXES RECEIVABLE EXHIBIT I-2
II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 II
1
DELINQUENT TAXES RECEIVABLE II
GENERAL DEBT SERVICE
YEAR FUND FUND TOTAL 1
1986 $ 85, 139 $23,189 $108,328
1985 61,435 38, 179 99,614
1984 27,328 11,519 38,847II
1983 28,708 12,479 41,187
1982 8,567 4,455 13,022
1981 3,721 1,719 5,440 II
1980 2,996 1,376 4,372
1979 2,148 606 2,754
1978 1,477 367 1 ,844
1977 686 289 975 II
1976 664 359 1 ,023
1975 425 161 586
1974 119 34 153II
1973 80 11 91
1972 8 1 9
1971 15 9 24II
1970 15 10 25
1969 20 5 25
1968 16 8 24
1967 14 10 24 II
1966 49 25 74
TOTAL DELINQUENT 1
TAXES RECEIVABLE $223,630 $94,811 $318,441
1
II
II
II
-126-
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1
1
1
1
STATISTICAL SECTION
(The City has not had any special assessments
in the last ten fiscal years. )
(The City has no legal debt margin.)
e
1
e
I
1
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1
1
e -127-
11
II
GENERAL REVENUE - BY SOURCE
CITY OF FRIENDSWOOD, TEXAS II
Last Ten Fiscal Years
II
INTER- LICENSES CHARGES FOR II
FISCAL GOVERNMENTAL AND SERVICE INTEREST
YEAR REVENUE TAXES PERMITS (SANITATION) INCOME
II
1977-78 $128, 182 $1,518,773 $ 57,551 $193,249 $103,841
1978-79 154,370 1,862,738 54,724 212,093 67,77511
1979-80 220,470 1,780,798 43, 399 268,481 36,272
1980-81 143,760 2,416, 105 49,580 275,870 75,172 II
1981-82 311,695 2,188,070 75,292 289,034 125,888
II
1982-83 97,271 2,602,930 180,972 344, 178 91,593
1983-84 335,077 3,285,018 167,484 431,941 112,516
1984-85 (1) 535,955 4,018,210 138,074 532,701 127,909
1985-86 (2) 124, 114 4,608,491 148,740 470, 177 88,521
1986-87 94,015 5,272,714 124,913 525,592 91,011
Includes the General, Special Revenue and Debt Service Funds.
11
(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.
II
I
II
II
-128 II
-
I
I
EXHIBIT I
I
I
I
FINES AND MISCELLANEOUS I
FORFEITURES REVENUE TOTAL
$ 25,542 $ 28,078 $2,055,216
1 69,228 43,771 2,464,699
I 103,447 42,168 2,495,035
129,824 31, 250 3, 121,561
I111,975 84, 124 3, 186,078
102,609 123,088 3,542,641
III128,694 42,473 4,503,203
1 138,302 41,551 5,532,702
120,195 28,850 5,589,088
I184,359 45,342 6,337,946
I
I
I
I
I
I
I
-129-
11
GENERAL GOVERNMENTAL EXPENDITURES - BY FUNCTION11
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years li
II
CULTURE11
FISCAL GENERAL PUBLIC PUBLIC AND
YEAR GOVERNMENT SAFETY WORKS SANITATION RECREATION
1977-78 $ 282,252 $ 438,013 $235,506 $223,878 $180,216 II
1978-79 428,395 626,906 292,116 271,220 391,512
II
1979-80 462,461 798,798 329,713 261,471 208,473
1980-81 626,120 754,259 452,316 292,896 208,292II
1981-82 680,792 856,648 474,575 288,813 299,028
1982-83 714,608 1,188,214 596,633 336,635 314,853 II
1983-84 (1) 812,289 1,311,923 958,188 436,299 390,361
II
1984-85 954,086 1,388,760 523,653 512,504 373,412
1985-86 (2) 1,221,176 1,737,503 723,779 484,851 453,408Il
1986-87 1,473,875 1,870,538 718, 117 519,527 692,525
11
Includes the General, Special Revenue and Debt Service Funds.
(1) Includes annexation of the Wedgewood subdivision (ClearwoodsIl
Improvement District) during the year.
(2) Includes annexation of the Forest Bend subdivion (WCID 108) during11
the year.
Source - Accounting records of the City.
II
II
Il
II
-130-
1
111 EXHIBIT II
I
1
' HEALTH
AND DEBT
WELFARE SERVICE TOTAL
' $ 6,748 $ 158, 108 $ 1,524,721
' 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
1 78,966 1,064,286 5,763,969
35,000 1 ,314,714 6,624,296
I
I
I
1
-131-
11
TAX REVENUES - BY SOURCE EXHIBIT III
II
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years II
II
BUSINESS
GENERAL GROSS INDUSTRIAL
FISCAL TOTAL PROPERTY GENERAL RECEIPTS DISTRICT BEVERAGE 11
YEAR TAXES TAXES SALES TAX TAXES TAXES* TAX
1977-78 $1 ,518,773 $1 ,012,351 $154,946 $ 77,047 $270,982 $3,447 I
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 4,395il
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 II
1983-84 3,285,018 2,727,942 351,431 204,275 - 1,370
II
1984-85 (1) 4,018,210 3, 319, 149 424,498 273, 184 - 1,379
1985-86 4,608,491 3,826, 171 483,629 297,585 - 1,106II
1986-87 (2) 5,272,714 4,421 ,343 517,943 332,432 - 996
II
*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.
(2) Includes annexation of the Forest Bend subdivision (WCID 108) during 11
the previous year.
Source - Accounting records of the City. II
II
II
I
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Ie intentionally left blank)
(This Pa g
-133-
I
1
PROPERTY TAX LEVIES AND COLLECTIONS I
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years I
II
PERCENTII
FISCAL TAX TAX TOTAL CURRENT TAX OF LEVY
YEAR YEAR RATE TAX LEVY COLLECTIONS COLLECTED
1977-78 1977 $1 .15 $1 ,021,935 $ 987,372 96.62 II
1978-79 1978 1. 15 1, 147,958 1 , 105,811 96.33
II
1979-80 1979 1. 15 1,231,876 1 ,175,513 95.42
1980-81 (1) 1980 0.775 1,459,086 1,394,770 95.59 1
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'
1985-86 1985 0.7095 3,870,699 3,680,672 95. 10 1
1986-87 (3) 1986 0.695 4,369, 541 4,245,550 97.16
II
(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. '
(3) Includes annexation of the Forest Bend subdivision (WCID 108) during
the previous year.
Source - Tax assessor/collector's records. II
II
I
II
-134- 1
II
EXHIBIT IV
II
IITOTAL OUTSTANDING
COLLECTION DELINQUENT
l AS A TAXES AS A
DELINQUENT TOTAL AS
OF OUTSTANDING PERCENT OF
TAX TAX CURRENT DELINQUENT CURRENT
COLLECTIONS COLLECTIONS TAX LEVY TAXES LEVY
II $ 24,979 $1,012, 351 99.06 $ 61,533 6.02
II22,800 1, 128,611 98.31 79,839 6.95
30,758 1,206,271 97.92 102,969 8.36
I/ 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
I
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
II
II
I
I
I
I
I -135-
11
ASSESSED AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
CITY OF FRIENDSWOOD,TEXAS II
Last Ten Fiscal Years
I
REAL PROPERTY PERSONAL PROPERTY II
ESTIMATED ESTIMATED
FISCAL TAX ASSESSED ACTUAL ASSESSED ACTUAL
YEAR YEAR VALUE VALUE VALUE VALUEII
1977-78 1977 $ 87,796,960 $146,328,267 $ 1,738,760 $ 2,897,933
1978-79 1978 98,489,560 164, 149,267 2,062,730 3,437,883 II
1979-80 1979 105,509,070 175,848,450 2,242,850 3,738,083 1
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 II
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 II
1984-85 1984 588, 137, 580 588, 137,580 10,731,940 10,731,940 II
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 I
(1) Assessment ratio increased in 1980 to 100% of market value per $100 I
valuation.
(2) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
11
District) during the previous year.
(3) Includes annexation of the Forest Bend subdivision (WCID 108) during
I/
the previous year.
Source - Tax assessor/collector' s records.
11
II
I
-136-
1
IIEXHIBIT V
II
11
IITOTAL TOTAL
ESTIMATED ASSESSED TAXABLE RATIO OF ASSESSED
1 ASSESSED VALUE ACTUAL VALUE OF
EXEMPTIONS ASSESSED VALUE TO ESTIMATED
VALUE VALUE ACTUAL VALUE
$ 89, 535,720 $149,226,200 $ 671,810 $ 88,863,910 60
II
100,552,290 167,587,150 573,900 99,978,390 60
I/ 107,751 ,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
298,452,090 298,452,090 85,672,799 212,779,291 100
II
442,947,714 442,947,714 96,853,365 346,094,349 100
11 598,869, 520 598,869, 520 133,837,020 465,032,500 100
645,891 ,660 645,891 ,660 111,788,728 534, 102,932 100
11 760,787,760 760,787,760 132,076,820 628,710,940 100
38 753 414
11 (61) W/O 70
I
I
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I
-137-
11
PROPERTY TAX RATES AND TAX LEVIES - ALL
OVERLAPPING GOVERNMENTS II
CITY OF FRIENDSWOOD, TEXAS I
Last ten fiscal years
1
FRIENDSWOOD CLEAR CREEK II
INDEPENDENT INDEPENDENT
FISCAL TAX CITY OF SCHOOL SCHOOL
YEAR YEAR FRIENDSWOOD DISTRICT DISTRICTII
TAX RATE
1977-78 1977 $1.15 $1.84 $1.84 II
1978-79 1978 1. 15 1.84 1.55
1979-80 1979 1. 15 1.81 .82
II
1980-81 (1) 1980 .775 1.77 .82
1981-82 1981 .775 1.86 .88
1982-83 1982 .735 1.83 .83 II1983-84 1983 .720 1.79 .82
1984-85 1984 .720 1.46 .82
1985-86 1985 .7095 1.46 .92
1986-87 1986 .695 1.41 .92II
TAX LEVIES
1977-78 1977 $1 ,021,935 $2,255,166 $10,499,589 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
1980-81 1980 1 ,459,086 3,123,225 19,977,989 II
1981-82 1981 1,586,474 3,567,480 22,647,479
1982-83 1982 2,068,817 4,854,834 25,331,425
1983-84 1983 2,491,879 5,233,942 27,542,883II
1984-85 (2) 1984 3,348,234 5,123,436 31,308,670
1985-86 1985 3,870,699 5,802,869 41,309,808
1986-87 (3) 1986 4,369,541 6,205,039 44,892,680 1
Source - Accounting records of the City and tax assessor/collector's records. II
(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.
(3) Includes annexation of the Forest Bend subdivision (WCID 108) during II
the previous year.
II
-138-
II
EXHIBIT VI
CLEAR CREEK
C&LV8ST00 8&BQIS DBAI0&Q8
COUNTY COUNTY DISTRICT
7&X RAID
$.970 $1 . 110 $, lOO
.940 1. 100 ' lOU
,930 1. 100 .088
.915 1 . 130 . lOU
.300 .376 . 100
.300 .360 ' 150
,395 .377 . 150
'395 .277 ' 150
,385 .27878 .150
'385 .289 ' 150
TAX LEVIES
$10,478,788 $ 86,209,774 $ 99,764
10,719, 130 140,067,072 113,473
11,871 ,339 152,422, 186 101,276
12,957,655 175,846,769 163,441
18,673,000 218,001 ,248 256,084
18,137,783 238,964, 304 486,722
261640,815 270,971 ,094 506,281
28,607,391 312,288,939 609,854
29,255,237 321 ,822,000 742,703
25`220,511 312,516,407 740,222
-139-
II
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
II
VALUE AND NET BONDED DEBT PER CAPITA
CITY OF FRIENDSWOOD, TEXAS 1
Last Ten Fiscal years
II
GROSS LESS DEBT II
FISCAL ESTIMATED ASSESSED BONDED SERVICE
YEAR POPULATION VALUE DEBT FUND BALANCE ,
1977-78 10,094 $ 89,535,720 $ 5, 133,000 $146,773
1978-79 10,301 100, 552,290 5,417,000 122,363 II
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 II
1982-83 12,530 298,452,090 6,470,500 153,535
1983-84 (1) 17,365 442,947,714 8,423,163 197,749 II
1984-85 18,500 598,869,520 8,046,000 200,813
1985-86 (2) 22,500 645,891 ,660 10,650,778 459,306 II
1986-87 23,000 760,787,760 10,065,778 518,998
II
(1) Includes annexation of the Wedgwood subdivision (Clearwoods Improvement
District) during the year. II
(2) Includes annexation of the Forest Bend subdivision (WCMD 108) during
the year. I
Source - Accounting records of the City.
II
I
II
II
-140- 1
1
EXHIBIT VII
i
IRATIO OF NET
NET BONDED DEBT
BONDED TO ASSESSED NET BONDED DEBT
' DEBT VALUE % PER CAPITA
$ 4,986,227 5.6% $493
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
I/
1
I -141-
11
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT EXHIBIT VIII
II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 II
1
II
P RCENTAGE CITY OF
NET DEBT APPLICABLE FRIENDSWOOD'S
NAME OF GOVERNMENTAL UNIT OUTSTANDING TO CI Y OF FRIENDSWOOD SHARE OF DEBT
Friendswood Independent
II
School District $ 5, 110,000 ; 100.00% $ 5, 110,000
Clear Creek Independent I
School District 43,723,000 3. 38 1,477,837
Galveston County 52 ,395,470 i 4.87 2,551 ,659 1
Harris County 807,107,063 k .06 484,264
I
Clear Creek Drainage \100.00
I
District 10,000 'I 10,000
II
TOTAL NET OV RLAPPI DEBT 9,633,760
Net General Long-Term Debt - City of Friendswood 9,546,780 II
TOTAL NET DIRECT AND II
OVERLAPPING DEBT $19,180,540
I
Source - Finance department records of the various governments.
11
I
II
II
II
-142- 1
1
1
1
1
1
1
1
1
1
I
1
1
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(This pageli
intentionally left blank)
I ....,43...
11
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES EXHIBIT IXII
FOR GENERAL LONG-TERM DEBT TO TOTAL
GENERAL EXPENDITURES
CITY OF FRIENDSWOOD, TEXAS II
Last Ten Fiscal Years
II
INTEREST
AND RATIO OF DEBT SERVICE II
FISCAL TOTAL TOTAL TO TOTAL GENERAL
FISCAL AGENT DEBT GENERAL GOVERNMENTAL
YEAR PRINCIPAL FEES SERVICE EXPENDITURES EXPENDITURES I
1977-78 $ 58,000 $100,108 $ 158,108 $1,524,721 10.37%
1978-79 56,000 216,800 272,800 2,290,966 11.91II
1979-80 78,000 196,096 274,096 2,458,212 11.15
1980-81 99,336 203,396 302,732 2,694,794 11.23 II
1981-82 110,631 303,809 414,440 3,056,539 13.56 II
1982-83 123,759 373,646 497,405 3,694,930 13.46
1983-84 356,000 627,609 983,609 4,940,683 19.91 1
1984-85 377,608 619,506 997, 114 4,817,448 20.70
1985-86 (1) 484,427 579,859 1,064,286 5,763,969 18.46 II
1986-87 620,386 694,328 1,314,714 6,624,296 19.85 II
Source - Accounting records of the City. ,
(1) Excludes debt defeased through refunding of $10,032,000.
1
II
II
II
-144- 1
II
I
TAX RATE DISTRIBUTION EXHIBIT X
CITY OF FRIENDSWOOD, TEXAS
1 Last Ten Fiscal Years
II
II
II
GENERAL DEBT SERVICE TOTAL TAX
TAX YEAR FUND FUND RATE
II
1977 .813 .337 1.15
I1978 .921 .229 1 .15
1979 .897 .253 1 . 15
I1980 .5311 .2434 .775 (1)
1981 .53 .245 .775
II
1982 .4835 .2515 .735
I1983 .502 .218 .720
1984 .507 .213 .720
II1985 .5192 .1903 .7095
II1986 .481 .214 .695
(1) Assessment ratio was increased in 1980 to 100% market value per $100
I
valuation.
ISource - City's tax ordinances.
II
II
II
-145-
11
REVENUE BOND COVERAGE I
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years I
I
OPERATING NET OPERATING II
NUMBER NUMBER EXPENSES REVENUE
FISCAL OF WATER OF SEWER OPERATING BEFORE AVAILABLE FOR II
YEAR CUSTOMERS CUSTOMERS REVENUE DEPRECIATION DEBT SERVICE
1977-78 2,884 2,884 $ 584,339 $ 378, 552 $ 205,787 II
1978-79 3,086 3,020 674,803 501,029 173,774
1979-80 3,086 3,020 877,947 564,500 313,447 II
1980-81 3,215 3,048 1,109,296 753,350 355,946
1981-82 3,388 3,212 1,134,886 756,498 378,388 II
1982-83 3,659 3,430 1,450,044 861,935 588,109
11
1983-84 4,998 4,686 2,141,284 1,072,741 1,068,543
1984-85 5,338 5,061 2, 104,796 1,193,709 911,087II
1985-86 6,497 6,238 4,205,395 1,311,526 2,893,869
1986-87 6,514 6,324 3, 158,980 1,487,668 1,671 ,312 II
Source - Accounting records of the City. 1
1
1
1
1
I
-146-
EXHIBIT XI
1 DEBT
REVENUE BOND SERVICE
' DEBT SERVICE REQUIREMENTS TIMES
PRINCIPAL INTEREST TOTAL COVERAGE
$ 15,000 $38,788 $ 53,788 3.83
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
I125,000 77,566 202,566 8.25
-147-
I
PRINCIPAL TAXPAYERS EXHIBIT XII
CITY OF FRIENDSWOOD, TEXAS II
September 30, 1987 1
II
PERCENT OF
ASSESSED VALUE IIASSESSED TO TOTAL
NAME OF TAXPAYER NATURE OF BUSINESS VALUE ASSESSED VALUE
1. Exxon Petroleum $46,276,230 6.08% II
2. Southwestern Bell
Telephone Utility Co. 10,515,930 1.38 II
3. Crown Central
Petroleum Petroleum 8,711,620 1.15
4. Seahawk Apartments Apartments 8,552,470 1. 12 II
5. Texas - New Mexico IIPower Utility Co. 4,611, 180 .61
6. John L. Jones Estate Investments 3,803,890 .50
II
7. Ralph Lowe Investments 3,700,010 .49
8. Salem Square Apartments Apartments 3,272,000 .43 1
9. Epic Associates Investments 3,169,960 .42
10. Friendswood Land Co. Investments 3,028,030 .40 II
$95,641,320 12.58% II
Source - Tax assessor/collector's records. 1
1
II
11
1
-148- '
I
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS EXHIBIT XIII
CITY OF FRIENDSWOOD
' Last Ten Fiscal Years
II
FISCAL BANK PROPERTY
YEAR CONSTRUCTION DEPOSITS VALUE
11
1978 $16,395, 154 $21,646,952 $ 89,535,720
I
1979 17,444,441 27,546,000 100,552,290
1980 12,893,393 27, 144, 117 107,751,920
II1981 13, 197,941 32,614,000 189, 501,622
1982 15, 102,000 48,616,000 206, 185, 360
II
1983 31,211,841 62,256,000 298,452,090
II1984 31,379, 139 67, 111,934 486,902, 520
1985 28,891 ,533 72,641,562 598,869,520
II1986 26,920,850 78,645,866 645,891,660
II1987 17,337,714 90,775,074 760,787,760
Sources - City records; Area Banks; Tax assessor/collector records.
11
II
11
II
II
II
II
I
-149-
11
SCHEDULE OF INSURANCE IN FORCE - 1 of 2 II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 1
LOCATION II
OR
INSURER POLICY NO. ACTIVITY COVERAGE IITexas Political Sub WC H0008 City All Employees
WC Fund
TCPIA 663632 City Buildings-Windstorm II
and Hail
Employers Casualty Co. CAF 649005 Fleet All Vehicles I
Employers of Texas FMC 1L6290 City Fire, EC, Windstorm,
Lloyds V&MMII
Employers Casualty EEP 047835 Electronic Fire, EC, V&MM II
Co. Equipment
Employers National Contractors Fire, EC, V&MM
Ins. Co. CEF 874899 EquipmentII
Employers of Texas TCMP 1L9003 City Multi Peril
Lloyds I
National Casualty PL601759 City Comprehensive Law
Co. Enforcement
II
Aetna Casualty & 615610355538BCA Surety Bond Building Inspector
Surety Co. II
Aetna Casualty & 61S100401370BCA Surety Bond City Manager
Surety Co. IIAetna Casualty & 61S25187BCA Surety Bond Tax Assessor-Collector
Surety Co.
St. Paul Fire & 400GX7956 Public Employees Blanket Bond-All Empl I
Marine
National Casualty P0623033 Public Officials Elected and Appointed II
Co.
Omaha Indemnity 3000907570 Bougainvilla Building & I
Contents
Omaha Property & 011932137639 Library Building & '
Casualty Contents
-150- '
-iSi-
11
000`00T
699 88/£0/80 L8/£0/80 /007`£91
005`6
695 L8/80/11 98/90/T1 /005`TSI ,
OTZ'9 L8/61/ZT 98/6T/Z1 000`000` T
Lit L8/i0/0T 78/TO/OT 000`Oi
£97 88/6Z/TT 98/6Z/IT 000`05
OSZ 88/9Z/TO L8/9Z/T0 000`05
OS 88/T0/ZO L8/10/Z0 000 Z
OTL`6T L8/6T/ZT 98/61/Z1 000`000`i
OZZ`57 L8/TO/ZT 98/TO/ZI 007`607`Z
ZZZ`Z L8/T0/ZT 98/T0/Zi 7£8`59T I
69L L8/T0/ZT 98/IO/ZT £8I`66 '
797`L L8/1O/ZT 98/10/ZT 00£`ZZ6`T I
99Z'99 L8/T0/ZT 98/TO/Z1 00T/05/00i
TL£`£ 88/O1/70 L8/0Z/70 000`797 $ '
757`0L $ L8/1O/0T 98/10/01 A301n1R1s
WAIW321d ONIQN3 ONINNIO39 3OVH3A0O
3OV13A00 30
3O QOI83d LNf10WV
AIX ZI91HX3
1
11
SCHEDULE OF INSURANCE IN FORCE - 2 of 2 1
LOCATION
OR
INSURER POLICY NO. ACTIVITY COVERAGE
Omaha Property & 012001944988 Counseling Center Building &
Casualty Contents
Omaha Property & 013001775851 Forest Bend Civic Building &
Casualty Contents
Omaha Property & 011940990565 Public Works Building &
Casualty Contents
Omaha Property & 012001256227 Fire Station #1 Building & 1
Casualty Contents
American States MP4407 Volunteer Fireman AD&D '
Insurance
1
1
1
1
1
1
1
1
i
i
-152-
' EXHIBIT XIV
AMOUNT PERIOD OF
OF COVERAGE
COVERAGE BEGINNING ENDING _ PREMIUM
27,500/ 04/27/87 04/27/88 156
' 10,500
100,000/ 07/20/87 07/20/88 330
10,000
177, 100/ 04/07/87 04/07/88 329
38,300
220,000/ 04/07/87 04/07/88 459
23,100
' 50,000 03/27/87 03/27/88 1,997
$227,695
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11
MISCELLANEOUS STATISTICAL DATA - 1 of 2 EXHIBIT XV
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 '
Date of Incorporation October 15, 1960 '
Date of present charter Adopted Home Rule Charter
October 16, 1971 1
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 ,
Fire Protection
Number of stations 3
Number of employees 1
Number of volunteers 71
Fire Prevention
Number of employees 1.5 '
Number of volunteers 3.0
Police Protection
Number of stations 1
Number of employees 29
Number of patrol units 10
Recreation
Number of parks 6
Size of parks 13.3 acres, 13.6 acres, 6.5 acres,
4.85 acres, 4.1 acres, .6 acres
Number of golf courses 0
Number of swimming pools 1
Number of tennis courts 4
Storm Sewers
Miles of storm sewer 31.35 miles
I
-154-
MISCELLANEOUS STATISTICAL DATA - 2 of 2 EXHIBIT XV
Education
Friendswood Independent School District
Number of teachers 196. 5
Number of students 3,209
City employees (full time)
Department Heads 8
Employees 104
Total 112
Election
Number of votes cast
Last City election 891
Water
' Source 7 wells
Average daily consumption 2,836,360 gallons
Maximum daily consumption 5,933,000 gallons
Water mains 79. 15 miles
Number of connections 6,514
Sewer
Average daily capacity 1,965,270 gallons
Maximum daily capacity 5,872,000 gallons
' Sanitary sewer mains 75.65 miles
Number of connections 6,324
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4
11
PRINCIPAL OFFICIALS 1
CITY OF FRIENDSWOOD, TEXAS
September 30, 1987 II
ELECTIVE II
CITY OFFICIALS ADDRESS POSITION
Ralph L. Lowe P. 0. Box 226 Mayor II
Jim Harrell 349 W. Castle Harbor Councilman - Position No. 1
Robert Wicklander 1109 Myrtlewood Councilman - Position No. 2
Evelyn B. Newman 502 Falling Leaf Councilwoman - Position No. 3 I
Phyllis J. Lee P. 0. Box 693 Councilwoman - Position No. 4
Jan Jordan 908 Pine Hollow Councilwoman - Position No. 5
Joe D. Prihoda 1325 McKissick Councilman - Position No. 6 II
APPOINTIVE POSITION
Annette A. Brand 109 Willowick, Friendswood City Manager I
Lynn J. Bucher 109 Willowick, Friendswood Acting Finance Officer
Joseph M. Wright 204 E. Heritage Police Chief
Melvin Meinecke 1602 Dallas, South Houston Director of Public Works II
Dwayne Hengst 109 Willowick, Friendswood Community Development Dir
Claudie Pettigew 109 Willowick, Friendswood Library Director
Luis Suarez 723 Main; Suite 707, Houston Judge - Municipal CourtII
Vance Riley P. 0. Box 5957, Coll. St. Fire Marshal
Dr. Richard Conway 505 Friendswood Drive Health Officer
Alta Carbone P. 0. Box 31, Friendswood Tax Assessor - Collector IIDeloris McKenzie 109 Willowick, Friendswood City Secretary
Olson & Olson 3485 Capital Bank, Houston City Attorney
Russell E. Williams 109 Willowick, Friendswood Civil Defense Director II
1
11
11
II
II
1
-156-
' EXHIBIT XVI
' TERM
EXPIRES
' May, 1988
May, 1988
May, 1989
' May, 1988
May, 1989
May, 1988
' May, 1989
I
1
1
1
1
1
1
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1