HomeMy WebLinkAbout1993 09 30 Annual Comprehensive Financial Report - City of Friendswood I
I
I
Comprehensive
Annual Financial Report
of the
City of Friendswood, Texas
U
Fiscal Year Ended
September 30, 1993
I
I
I
I
I
Officials Issuing Report
Ronald E. Cox
City Manager
Roger C. Roecker
Director of Administrative Services
I
r
11
I
I
CITY OF FRIEND SWOOD, TEXAS
' COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1993
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal 1-10
Organization Chart 11
Certificate of Achievement for Excellence in
Financial Reporting 12
Principal Officials 13
FINANCIAL SECTION
' Independent Auditors' Report 14
GENERAL PURPOSE FINANCIAL STATEMENTS
Combined Balance Sheet - All Fund Types and
Account Groups A-1 15-16
1
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types A-2 17-18
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual - General, Special
' Revenue and Debt Service Funds A-3 19-20
Combined Statement of Revenues, Expenses and Changes in
Retained Earnings/Fund Balance - Proprietary Fund Type
and Non-Expendable Trust Fund A-4 21-22
Combined Statement of Cash Flows - Proprietary Fund Type
and Non-Expendable Trust Fund A-5 23-24
Notes to Financial Statements A-6 25-52
COMBINING. INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
Governmental Fund Types
General Fund:
Comparative Balance Sheet B-1 53
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual B-2 54-60
IrSpecial Revenue Funds:
Combining Balance Sheet C-1 61-62
Combining Statement of Revenues, Expenditures and
11 Changes in Fund Balance C-2 63-64
I
I
ICITY OF FRIENDSWOOD, TEXAS
I
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 1993
TABLE OF CONTENTS
IExhibit Page
FINANCIAL SECTION (continued)
ICOMBINING. INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
IGovernmental Fund Types (continued)
Special Revenue Funds: (continued) -
I Statement of Revenues, Expenditures, and Changes in
Fund Balance Budget and Actual (Police Investigation) C 3 65
Statement of Revenues, Expenditures, and Changes in
I Fund Balance - Budget and Actual (Parks and Recreation) C-4 66
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual (Fire/EMS Donations) C-5 67
I Debt Service Fund:
Comparative Balance Sheet D-1 68
Statement of Revenues, Expenditures and Changes in
IFund Balance - Budget and Actual D-2 69
Capital Projects Funds:
I Combining Balance Sheet E-1 70
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance E-2 71
IProprietary Fund Type
Enterprise Fund:
I Comparative Balance Sheet F-1 72
Schedule of Revenues, Expenses and Changes in
Retained Earnings - Budget and Actual
I (Non-GAAP Budgetary Basis) F-2 73-74
Schedule of Bonds Payable by Maturity Date F-3 75
Schedule of Certificates of Obligation by
Maturity Date F-4 76
11 Fiduciary Fund Types
II Trust and Agency Funds:
Combining Balance Sheet G-1 77
Comparative Statement of Revenues and Changes
In Fund Balance G-2 78
11 Schedule of Changes in Assets and Liabilities G-3 79
II
I
CITY OF FRIENDSWOOD, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
IYear Ended September 30, 1993
1 TABLE OF CONTENTS
I
Table Page
FINANCIAL SECTION (continued)
1 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
1 Account Groups
General Fixed Assets:
1 Comparative Schedules of General Fixed Assets
by Source H-1 80
Schedule of General Fixed Assets by Function
and Activity H-2 81-82
1 Schedule of Changes in General Fixed Assets by
Function and Activity H-3 83
1 General Long-Term Debt:
Comparative Schedules of General Long-Term Debt I-1 84
Schedule of Changes in General Long-Term Debt I-2 85-86
Schedule of General Long-Term Debt Service
1 Requirements to Maturity I-3 87-88
UNAUDITED STATISTICAL SECTION
1 General Government Revenues By Source 1 89-90
General Governmental Expenditures by Function -
Last Ten Fiscal Years 2 91-92
1 Property Tax Levies and Collections - Last Ten
Fiscal Years 3 93-94
Assessed and Estimated Actual Value of Taxable
Property - Last Ten Fiscal Years 4 95
II Property Tax Rates and Tax Levies - Direct and
Overlapping - Last Ten Fiscal Years 5 96-97
Tax Rate Distribution - Last Ten Fiscal Years 6 98
1 Principal Taxpayers 7 99
Revenue Bond Coverage 8 100-101
Ratio of Net General Bonded Debt to Assessed Value
and Net Bonded Debt Per Capita - Last Ten Fiscal
I Years 9 102-103
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures -
Last Ten Fiscal Years 10 104
It Computation of Direct and Overlapping Debt 11 105
Demographic Statistics - Last Ten Fiscal Years 12 106
Property Value, Construction and Bank Deposits -
Last Ten Fiscal Years 13 107
11 Texas Municipal Retirement System Analysis of Funding
Progress - Last Ten Fiscal Years 14 108-109
Schedule of Impact Fee Project Changes 15 110-111
11 Miscellaneous Statistical Data 16 112-113
1
,, a�DSWpOo�
j X A 4, `!; &tj of 9ti. ncLtwood
i
IIDecember 21, 1993
1 To the Honorable Mayor and
Members of the City Council
1 The comprehensive annual financial report of the City of Friendswood, for the
fiscal year ended September 30, 1993, is hereby submitted. Responsibility for
both the accuracy of the data and the completeness and fairness of the
1 presentation, including all disclosures, rests with the City. To the best of our
knowledge and belief, the enclosed data is accurate in all material respects and
is reported in a manner designed to present fairly the financial position and
results of operations of the various funds and account groups of the City. All
1 disclosures necessary to enable the reader to gain an understanding of the City's
financial activities have been included.
The comprehensive annual financial report is presented in three sections:1
introductory, financial, and statistical. The introductory section includes this
transmittal letter, the City's organizational chart, and a list of principal
officials. The financial section includes the general purpose financial
1 statements and the combining and individual fund and account group financial
statements and schedules, as well as the auditors' report on the financial
statements and schedules. The statistical section includes selected financial
and demographic information, generally presented on a multi-year basis.
1 The Single Audit Act is not applicable for fiscal year ended September 30, 1993.
There are no major or nonmajor Federal Financial Assistance programs.
1 This report includes all funds and account groups of the City. Friendswood
Independent School District, Clear Creek Independent School District, Galveston
County, Harris County, Clear Creek Drainage District, and Friendswood Volunteer
Fire Department have not met the established criteria for inclusion in the
1 reporting entity and, accordingly, are excluded from this report.
The City is involved in two cost sharing projects for the operation of the
Blackhawk Regional Waste Treatment Plant and the Southeast Water Purification
II Plant with the Gulf Coast Waste Disposal Authority and the City of Houston,
respectively. The City's share of ownership in the Blackhawk Waste Treatment
Plant is 52.71% and paid operating and management fees during the year in the
1 amount of $696,077. The City's share of production pumping cost in the Southeast
Water Purification Plant was 3.75% and amounts paid for operating fees during the
year were $377,161.
1
1
ADMINISTRATIVE SERVICES• 109 E. WILLOWICK AVE. •FRIENDSWOOD, TX 77546-3898•(713)482-3323•FAX(713)482-6491
IICOMPUTER SERVICES • FINANCE • HUMAN RESO)IRCES • MUNICIPAL COURT • UTILITY BILLING
1
The City provides a full range of services, including administration, traffic 1
planning, inspection, municipal courts, and the maintenance and operation of a
library. Key services that affect most citizens on a day-to-day basis are
described in more detail below. 1
L Water and Sewer
The City provides water and sewer services for residential and
commercial locations. Eighteen employees are responsible for
maintaining the system, as well as billing and collecting for the
services.
2. Police 1
Twenty-four hour coverage is provided by the City's Police Department,
which consists of Patrol, Investigation, Communications, Emergency
Management, and Animal Control. A goal of the department and its 41
full-time personnel is to actively involve the citizens in its community
safety efforts.
3. Fire
Although the City does not employ its own fire department, it purchases
fire trucks and other equipment for the 91 member volunteer fire
department. The City employs a fire marshal, one full-time fire
fighter, and a part-time clerk, and funds salaries for two fire
fighters, one paramedic, an emergency medical technician through
participation of a pool of part-time employees. 11
4. Streets
The street department is responsible for the repair and maintenance of
all City streets and roadside drainage. This department consists of 13
employees. ,
5. Sanitation
The City's solid waste services, including curbside pickup of recyclable
11
materials, are contracted to a private firm. Residential pickup is
twice weekly.
6. Parks
The parks and recreation department maintains 57 acres of park land,
including four tennis courts, a swimming pool, and picnic areas. The
staff consists of nine full-time employees, as well as part-time and
seasonal employees for the swimming pool, summer camp, sports
activities, and other park functions.
1
1
1
1
2 1
1
ECONOMIC CONDITION AND OUTLOOK
The City of Friendswood, Texas, is located 20 miles southeast of downtown Houston
' in Harris and Galveston Counties. The population is currently estimated at
26,333. The City's economy is linked closely to that of Houston and the Clear
Lake area. Due to weak oil prices and corporate restructuring by companies such
as Exxon, Tenneco, Chevron, and Shell, industry has contracted, resulting in
several rounds of employee layoffs during the year. Manufacturing has also
experienced an employment decrease due to the petrochemical industry being in a
down phase. From a positive perspective, several promising events in the
' manufacturing sector have included the selection of the Johnson Space Center as
the headquarters for Space Station Freedom resulting in the selection of Boeing
Defense and Space Group as the lead contractor. New jobs should result from
these announcements. Service sector employment has been boosted by two recent
openings. The Johnson Space Center opened its new visitor center, Space Center
Houston. This facility offers hands-on experience for visitors, providing
educational opportunities and entertainment. The Gulf Greyhound Race Track also
opened late in 1992. Each operation reportedly provided 1,000 additional jobs.
11 In the future, passage of the North American Free Trade Agreement is expected to
boost trade sector employment. The Houston area has an attractive central U. S.
location and a strong foreign presence, making it a good location for companies
involved in international trade.
MAJOR INITIATIVES
Forthe Year. During the preparation of the 1992-93 budget, the City identified
several important programs needed to meet citizens' needs for services and to
safeguard the environment, in conformity with applicable federal and state
standards. Summary information on these programs is provided below.
1. Streets
I
1992-93 was the ninth year of the City's street improvement program.
The following streets were a part of this project: Cedarwood Drive
(from Spreading Oaks to Stonesthrow) , Mary Ann Drive, Stonesthrow
Avenue, and Winding Way (between Friendswood Drive and Parkwood Avenue) .
tA sidewalk along Friendswood Drive from Stevenson Park to Spreading Oaks
was completed. In addition, a small section of sidewalk on Whispering
Pines from Blackhawk Boulevard to Bougainvilla was built to finish that
project. Sidewalks were also planned for the streets mentioned in the
previous paragraph.
2. Water and Sewer
IThe South Friendswood Sewer Interceptor Project was designed and
construction began in earnest. This project consists of over two miles
of gravity sewer main ranging from 24 to 36 inches in diameter, a new
wastewater pumping station and over one mile of 20-inch force main.
Construction of this project will allow further development of the
southern part of the City and ultimately, will allow the abandonment of
the Tower Estates Wastewater Treatment Plant. The project was budgeted
at $2,840,000 and expenditures for the year totalled $1,642,638.
It
3
I
Right of way and utility relocations on FM 528 were budgeted at 1
$300,000. This roadway is one of two direct entrances to the City from
IH-45. Its widening will increase the ease with which citizens and
visitors make their way into and out of the City. $93,391 was set aside
to extend an eight inch distribution line on Lundy Lane. An eight inch
line on East Viejo was extended at a cost of $61,255.
Repairs to sanitary sewer lines and an infiltration and inflow (I&I)
analysis were again budgeted for $84,000.
3. Parks and Recreation
The second phase of the master development plan for Stevenson Park was
completed. This work consisted of paving Shadwell and adding parking on
this street for the park visitors.
4. Public Works
The public works facility was slated for a number of improvements:
paving a portion of the parking lot; repairs to the siding and roof and
remodeling to add office space for a City Planner/Building Official.
$30,489 was budgeted for these improvements.
A $37,500 backhoe was also included in the budget for the water division
of public works.
5. Public Safety
11
Seven police cruisers were approved in the budget. Five were placed in
the patrol division and two were added for special operations. These
vehicles were budgeted at $79,800. An additional patrol officer was
also approved by Council for the patrol division.
Three vehicles were budgeted for the volunteer fire department: a fire
chief's vehicle and two on-duty medic vehicles.
For the Future.
1. Library 1
The Friendswood Public Library is currently located in a 7,850 square
foot building at 416 Morningside Drive and in the library annex, known
as the Little Library House at 108 Spreading Oaks. 11
The City has recognized the library program has outgrown its current
facilities. As a result, the City has acquired a new building located
at 416 South Friendswood Drive. The public library will relocate after
remodeling is completed in 1994.
I
I
I
11
4
1
i2. City Hall
The need for a new city hall building has been discussed for a number of
years. City Council authorized issuing certificates of obligation (COs)
for this purpose, as well as the library remodeling and the South
Friendswood Sewer Interceptor projects. $1,500,000 of the $5,000,000
COs issued have been designated for the city hall building. The
' building will be designed and construction begun during the next fiscal
year. It should be completed in late 1994 or early 1995.
3. Streets
In the upcoming year, $309,000 is budgeted for construction of concrete
streets.
I A sidewalk along Friendswood Drive from Spreading Oaks to Edgewood is
also included in the current budget. The projected cost is $50,000. In
addition, a bicycle route on Sunset is budgeted at $25,000.
4. Parks and Recreation
Over $260,000 of capital improvements to upgrade the City's parks are
scheduled during 1993-94. The third phase of the master development
plan for Stevenson Park will include the construction of a pavilion. A
sports complex has been identified as a critical need. $155,000 was
budgeted to purchase property and begin development of this project.
' More property will be acquired in future years to fully develop a
complex with a variety of sports facilities. Other improvements include
fencing replacements at Renwick Park.
' 5. Water and Sewer
Two water distribution lines are scheduled to be extended during the
' next year. A loop between the Wilderness Trails eight inch line and
Windsong was budgeted at $85,000. $110,000 was also budgeted for
connecting El Dorado's water line to San Joaquin.
3,800 feet of water line needs to be relocated on FM 528 in Harris
County for the second phase of the roadway expansion. This 14 inch
water line was installed in an easement and is not within the highway
right-of-way. $103,000 was budgeted for this project.
1 Department Focus. Each year the City will select a department to highlight for its
efforts and accomplishments. For 1992-93, the Administrative Services Department
has been chosen for review.
IAdministrative Services offices are located in the City Hall Annex, at 109 E.
Willowick Avenue. The department is comprised of five different programs:
' Finance, computing services, municipal court administration, utility billing, and
human resources/risk management. These responsibilities are carried out through
the efforts of 14 full-time employees and 1.48 full-time equivalents, consisting
of part-time employees.
1 Finance provides a variety of services to the staff, City Council, and citizens
of Friendswood. Among these are accounting, payroll processing and reporting,
budgeting, and cash management services.
11
1
5
11
Computing services is responsible for the operations and maintenance of all City '
computing equipment; makes recommendations for needed equipment and software; and
assists staff in computer usage and training.
The function of the municipal court is to bring a fair and equitable conclusion I
to all misdemeanor cases filed in the City. The administrative office is
responsible for maintaining accurate records of all court cases filed in the City
and the disposition of those cases, as well as processing payments and documents
for the court.
Utility billing personnel are charged with billing and collecting water, sewer,
and sanitation revenues for approximately 7,775 customers. The department
receives approximately 1,000 customer service phone calls monthly and are also
responsible for implementing new water service, disconnecting water service,
reading water meters, replacing meters, and performing other minor repairs.
The human resources and risk management office is responsible for all human
resource management functions, including recruitment, compensation, payroll
processing, employee benefits, training and development, new employee orientation
programs, exit interviews, and personnel policy maintenance. In addition, the
City's risk management program is responsible for providing training, safety
programs, and inspections to affect significant loss prevention and effective
insurance administration.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an I
internal control structure designed to ensure that the assets of the City are
protected from loss, theft or misuse and to ensure that adequate accounting data
are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure
is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the
cost of a control should not exceed the benefits likely to be derived; and (2)
the valuation of costs and benefits requires estimates and judgments by
management.
In addition, the City maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions embodied in the
annual appropriated budget approved by City Council. The City legally adopts
annual budgets for the General, Special Revenue, and Debt Service Funds. Annual
and project budgets are also adopted for the Proprietary and Capital Projects
Funds, respectively. The level of budgetary control (that is, the level at which
expenditures cannot legally exceed the appropriated amount) is established by
department within an individual fund. The City also maintains an encumbrance
accounting system as one technique of accomplishing budgetary control.
Encumbered amounts lapse at year end. However, encumbrances generally are
reappropriated as part of the following year's budget.
As demonstrated by the statements and schedules included in the financial section
of this report, the City continues to meet its responsibility for sound financial
management. 11
11
11
6 ,
1
1 General Government Function
Revenues for general government functions (General, Special Revenue and Debt
Service Funds) totaled $8,497,962 in 1992-93 an increase of $503,526 over 1991-
1 92. General property taxes produced 61.8 percent of the general revenues
compared to 62.0 percent of the preceding year. Sales taxes produced 11.5
percent of the general revenues compared to 10.0 percent the preceding year. The
amount of revenue from various sources and the increase (decrease) over the
1 preceding year are shown in the following tabulation:
Increase
(Decrease)
II
Amount Percent from 1992
Revenue Source (000's) of Total (000's)
General property taxes $ 5,250 61.8 % $ 291
1 Sales taxes 980 11.5 172
Franchise taxes 530 6.2 (12)
Sanitation 839 9.9 58
Fines and forfeitures 174 2.0 3
1 Permits and fees 319 3.8 (19)
Intergovernmental revenue 32 .4 (2)
Interest on investments 154 1.8 1
Other revenue 220 2.6 12
IITotal $ 8.498 1 % $ 504
Assessed valuations of $781,187,783 represented an increase of 11.5 percent over
1 the preceding year. Assessed valuations are at 100% of market value as
determined by the Galveston County and Harris County Appraisal District. The
assessed tax levy at October 1, 1992, relating to the fiscal year 1992-93 was
I $5,179,275
after adjustments, and increase of 6.4 percent over the tax levy at
October 1, 1991. Current tax collections were $5,081,084, 98.1 percent of the
tax levy, up $298,734 from last year. The ratio of total collections (current
and delinquent) to the current tax levy was 99.9 percent, a decrease of .8
1 percent from last year.
The City had a total of $313,078 in delinquent taxes outstanding as of September
30, 1993 which represents 6 percent of the current tax levy. Delinquent tax
1 collections were $91,531, down $29,129 from last year.
Growth in new home construction contributed to the increase in business gross
receipts taxes, general sales taxes, permits and fees and sanitation revenues.
1 The total amount of new construction for 1992-93 was $61,604,061, down from
$63,126,000 for 1991-92, an decrease of 2.3 percent.
Allocations of property tax levy for 1992-93 and the preceding two fiscal years
1 are as follow (tax rate per $100 of assessed value) :
Purpose 1992-93, 1991-92 1990-91
General Fund $ .5016 $ .5090 $ .5088
1 General Obligation Debt 1614 .1860 .1862
Total Tax Rate $ .6630 $ .6950 $ .6950
1
1
1
1 7
II
Increases or (decreases) in the levels of expenditures for major functions of the
11
City for the preceding year are shown in the following tabulation:
Increase
(Decrease) 11
Amount Percent from 1992
Function (000's) of Total (000's) IIGeneral Government $ 1,149 13.2 % 36
Public Safety 2,815 32.3 (246)
Public Works 1,622 18.6 85
Community Development 387 4.4 60
Community Services 1,320 15.1 233II
Debt Service 1.434 16.4 119
Total $ 8.727 100.0 % S 287.
Public safety expenditures decreased by $246,000 due primarily to acquiring II
assets during the previous year. These included a fire truck and related
equipment, $244,134 and eight cars for Police Department and Friendswood
Volunteer Fire Department (FVFD) , $109,013. Community services increased due to II
additional park improvements during fiscal 1993. Debt service increased due to
the issuance of an additional $5,000,000 in certificates of obligation.
Fund balances in the major operating funds were maintained at budgeted levels. I
The General Fund Balance of $1,212,635 was down $154,002 from the preceding year;
the Debt Service Fund balance of $45,501 was down $32,743 from the preceding
year; the Capital Projects Fund balance of $2,689,124 was up $1,983,051 from theII
prior year.
Enterprise Fund Operations
The water and sewer utility operation continued to show gains in number ofII
customers. Comparative data for the past two fiscal years are presented in the
following tabulation:
1993 199211
Operating revenue $ 3,808,566 $ 3,567,379
Operating expenses before depreciation 2.246.969 2.063.694
Net Revenue Available for Debt Service S 1.561.597 $ 1.503.685
II
Revenue Bond Debt Service S 166.022 $ 173.916,
Coverage (income available for revenue 11
bond debt service divided by annual
revenue bond debt service) 9.41 8.65
Number of customers - Sewer 7,475 7,171II
Number of customers - Water 7,781 7,521
Non-Expendable Trust Fund Operation 11
The Non-Expendable Trust Fund is comprised of assets held by the City for the
1776 Park. Activity in this fund resulted solely from interest earnings during
the years ended September 30, 1993 and 1992 of $1,048 and $1,172 and fund
balances were $86,187 and $85,139 as of September 30, 1993 and 1992, II
respectively.
I
11
8 II
' Debt Administration
The ratio of net general obligation debt paid from governmental fund resources
to assessed valuation and the amount of bonded debt per capital are useful
' indicators of the City's debt position to municipal management, citizens and
investors. These data for the City of Friendswood at the end of the 1992-93
fiscal year were as follow:
' Percent of
Debt to
Assessed Debt per
Description Amount Value Capita
Net direct bonded debt $ 9,016,148 1.2% $ 342
Overlapping debt 22.589.666 2 9 858
Total Direct and
Overlapping Debt $ 31.605.814 4 1$ $ 1.200
During the year, the City advance refunded portions of general obligation and
revenue bonds and certificates of obligation through the issuance of $6,555,000
in general obligation refunding bonds. The advance refunding was undertaken to
reduce total debt service payments over the next eleven years by $229,919 and to
obtain an economic gain of $205,550. The refunded bonds and certificates of
' obligation are considered defeased and the liability for the refunded debt has
been removed from the City's financial statements.
Cash Management
Cash temporarily idle during the year was invested in Texpool. Yields on Texpool
ranged from 3.5711 percent to 4.0202 percent during the year ended September 30,
1993. Interest earned for the year was $389,572, up $147,675 from the preceding
year.
The City's investment policy is to minimize credit and market risks while
maintaining a competitive yield on its portfolio. Accordingly, deposits were
' either insured by federal depository insurance or collateralized. All collateral
on deposits was held by a financial institution's trust department in the City's
name. All investments held by the City during the year and at September 30, 1993
which were subject to categorization are classified in the category of lowest
' credit risk as defined by the Governmental Accounting Standards Board. The
investment in Texpool is not subject to categorization as to credit risk since
it is an investment pool managed by another government.
Risk Management
The City, for 1993, has not implemented a plan for assumption of risk of loss.
Currently third party coverage is relied upon.
OTHER INFORMATION
Independent Audit. The City Charter requires an annual audit of the financial
statements of all of the various funds of the City by independent certified
public accountants. The accounting firm of Null & Associates, P. C. , was
selected and their opinion has been included in this report.
Awards. The Government Finance Officers Association of the United States and
Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City of Friendswood for its comprehensive annual financial
report for the fiscal year ended September 30, 1992. The Certificate of
Achievement is a prestigious national award recognizing conformance with the
highest standards for preparation of state and local government financial
reports.
9
I
In order to be awarded a Certificate of Achievement, a government unit must
publish an easily readable and efficiently organized comprehensive annual
financial report, whose contents conform to program standards. Such CAFR must
satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. The City
of Friendswood has received a Certificate of Achievement for the last six
consecutive years. We believe our current report continues to conform to the
Certificate of Achievement program requirements, and we are submitting it to
GFOA. '
Acknowledgements. The preparation of this comprehensive annual financial report was
made possible by the dedicated service of the entire staff of the Administrative
Services Department. Each member of the department has my sincere appreciation
for the contributions made in the preparation of this report.
In closing, I also express my thanks to the Mayor, members of the City Council,
and the City Manager for their leadership, interest, and support in conducting
the financial operations of the City in a responsible and progressive manner.
Sincerely, '
Roger C. Roecker
Director of Administrative Services
1
1
1
11
11
10
111111 r 1 - 1 r r S 1 1 i 1 s 1 1 111111 1 1
CITY OF FRIENDSWOOD, TEXAS
ORGANIZATIONAL CHART
September 30, 1993
MAYOR & COUNCIL
•
APPOINTED BOARDS FRIENDSWOOD CITY SECRETARY CITY MUNICIPAL CITY
AND AD HOC VOLUNTEER ATTORNEY JUDGE PROSECUTOR
COMMITTEES FIRE DEPARTMENT
CITY MANAGER
ADMINISTRATIVE POLICE FIRE MARSHAL/ PUBLIC WORKS COMMUNITY LIBRARY PARKS AND
SERVICES EMERGENCY DEVELOPMENT RECREATION
MANAGEMENT
1
Certificate of
1 •
Achievement
1 for Excellence
in FinancialReporting
Presented to
City of Friendswood,
! Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1992
A Certificate of Achievement for Excellence in Financial
' Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
' reports (CAFRs)achieve the highest
standards in government accounting
and financial reporting.
E UFF%
N E DmITA
. 1111.11(
GNAO" g President
Is SELL
oncaaYjit;4/944
Executive Director
i
!
1 12
I
IICITY OF FRIENDSWOOD, TEXAS
PRINCIPAL OFFICIALS
II
September 30, 1993
II
Term
IICity Officials Elective Position Expires
Evelyn B. Newman Mayor May 1994
IKitten Hajecate Council Member - Position No. 1 May 1994
Mel P. Measeles Council Member - Position No. 2 May 1996
IITom Manison Council Member - Position No. 3 May 1994
IEd Stuart Council Member - Position No. 4 May 1995
Harold Raley Council Member - Position No. 5 May 1994
IIJanis Lowe Council Member - Position No. 6 May 1995
IIKey Staff Appointive Position
Ronald E. Cox City Manager
IIDeloris McKenzie City Secretary
I
Jon Branson Parks and Recreation Director
Rebecca Carbone Tax Assessor-Collector
IIJames E. Thompson Community Development Director
Melvin L. Meinecke Director of Public Works
IOlson & Olson City Attorney
I
Claudie Pettigrew Library Director
David Collins Fire Marshal
I
Roger C. Roecker Director of Administrative Services
Jared D. Stout Police Chief
II (Vacant) Judge - Municipal Court
II
David Collins Emergency Management Director
1 13
z
0
E
w
cA
g
z
M
MI — — an NM OM N NM M MI I M = N M N =
1
Null & Associates i Houston Fort Bend County Professional Corporation 11 Houston
Greenway Plaza,Suite 1515 One Sugar Creek Center Blvd.,Suite 975
Houston,Texas 77046 Sugar Land,Texas 77478
Certified Public Accountants (713)621-1515•FAX:621-1570 (713)242-8600•FAX:242-7333
Independent Auditors' Report
1
To the Honorable Mayor and
Members of the City Council
City of Friendswood, Texas
' We have audited the accompanying general purpose financial statements of the City
of Friendswood, Texas, as of September 30, 1993, and for the year then ended, as
listed in the table of contents. These general purpose financial statements are
the responsibility of the City of Friendswood, Texas, management. Our
responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of
' material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
general purpose financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
1 In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the City of
Friendswood, Texas, as of September 30, 1993, and the results of its operations
' and the cash flows of its proprietary fund type and non-expendable trust fund for
the year then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The individual fund and account group
financial statements and schedules listed in the table of contents are presented
for purposes of additional analysis and are not a required part of the general
purpose financial statements of the City of Friendswood, Texas. Such information
has been subjected to the auditing procedures applied in the audit of the general
purpose financial statements and, in our opinion, is fairly presented in all
' material respects in relation to the general purpose financial statements taken
as a whole.
` 7tve l Ab , i?c .
Houston, Texas
December 7, 1993
1
MEMBERS:AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS,TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS,
CPA ASSOCIATES INTERNATIONAL,INC.WITH ASSOCIATED96FICES IN PRINCIPAL U.S.AND INTERNATIONAL CITIES.
c'
4,
g
W
m
O
E
0
... IIIII IIINI 111111 M - M - MI I I - I I M - I I INN
CITY OF FRIENDSWOOD, TEXAS
COMBINED BALANCE SHEET —
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 1993
with comparative totals for September 30, 1992
Governmental Fund Types
Special Debt Capital II
General Revenue Service Projects
Assets and Other Debits
Assets
Cash and temporary investments $ 2,156,410 $ 8,409 $ 49,528 $ 2,789,378
Receivables:
Taxes 229,868 83,210
Accounts 195,004
Interest
Land, buildings, and equipsent (at cost),
net of accumulated depreciation in
the Enterprise Fund
Investment in Blackhawk joint venture
Other assets 93,534 14,390
Other Debits
Amount available for debt service
Amount to be provided for retirement
of general long-term debt
Total Assets and Other Debits S 2.674.816 S 8,409 S 132.738 76
Liabilities, Equity, and Other Credits
Liabilities
Accounts payable and accrued liabilities $ 534,406 $ 62 $ 4,027 $ 114,644
Compensated absences 625,610
Customer deposits
Deferred revenue 302,165 83,210
Deferred compensation benefits payable
Bonds payable
Certificates of obligation
Total Liabilities 1,462,181 62 87,237 114,644
Equity and Other Credits
Contributed capital
Investment in general fixed assets
Retained Earnings:
Reserved
Unreserved
Fund Balances:
Reserved for encumbrances 68,415 425,90
Reserved for endowments
Reserved for debt service 45,501
Unreserved:
Designated 800,000 8,347 2,263,21
Undesignated 344,220
Total Equity and Other Credits 1,212,635 8,347 45,501 2 689 124
Total Liabilities, Equity, and
Other Credits $ 2,674,816 $ 8,409 $ 132,738 $ 2,803,768
See Notes to Financial Statements.
15 ,
11
1
I
Exhibit A-1
1
II
Proprietary Fiduciary Totals
Fund Type Fund Type Account Groups (Memorandum Only)
Trust and General General Long- September 30, September 30,
Enterprise Agency Fixed Assets Term Debt 1993 1992
II
$ 2,528,339 $ 407,431 $ $ $ 7,939,495 $ 4,802,984
' 313,078 306,419
656,821 851,825 752,146
28,588 28,588
II22,702,539 57,200 22,094,506 44,854,245 41,207,454
140,927 140,927 129,191
73,380 181,304 90,422
II45,501 45,501 78,244
9,016,148 9,016,148 6,587,533
IIS 26.130,594 S 464.631 S 22.094.506 S 9.061,649 $ 63.371.111 S 53.954,393
11
1 $ 595,156 $ $ $ $ 1,248,295 $ 750,333
64,696 690,306 587,925
147,535 147,535 121,865
385,375 353,292
378,444 378,444 305,671
11
3,480,000 6,856,649 10,336,649 7,155,777
3,660,000 2,205,000 5,865,000 4,120,000
7,947,387 378,444 9,061,649 19,051,604 13,394,863
II14,812,068 14,812,068 14,459,049
22,094,506 22,094,506 19,623,096
1 1,229,135 1,229,135
2,142,004 1,046,385
2,142,004 3,184,426
494,323 357,699
' 67,200 67,200 67,200
45,501 78,244
3,071,563 1,282,075
II 18,987 363,207 461,356
18,183,207 86,187 22,094,506 44,319,507 40,559,530
I
$ 26,130,594 $ 464,631 $ 22,094,506 $ 9,061,649 $ 63,371,111 $ 53,954,393
II16
I
CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES —
ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 1993 ,
with comparative totals for Year Ended September 30, 1992
Governmental Fund Types11
Special Debt Capital
General Revenue Service Projects
Revenues IIProperty taxes $ 3,968,813 $ $ 1,280,704 $
Sales taxes 979,890
Franchise fees 530,059
Sanitation 838,542 II
Fines and forfeitures 174,487
Permits and fees 319,384
Donations 8,609 73,000 611,919
Intergovernmental 32,273
Interest on investments 128,002 620 25,573 62,072
11
Other 138,006 25
Total Revenues 7,118,065 73,620 1,306,277 674,016 11
Expenditures il
Current:
General government 1,149,344
Public safety 2,737,505 77,153
Public works 1,621,896 11
Community development 386,976
Community services 1,319,689
Capital outlay 2,318,794 11
Debt Service:
Principal retirement 945,000
Interest and fiscal charges 489,052
Total Expenditures 7,215,410 77,153 1,434,052 2,318,794 '
Revenues Over (Under)
Expenditures (97,345) (3,533) (127,775) 1 644 778
Other Financing Sources (Uses)
Operating transfers in 248,145 1,399 95,032 1,467,829
Operating transfers (out) (304,802)
Proceeds from the sale of
refunding bonds 6,471,674
Proceeds from the sale of
certificates of obligation 2,160,0001
Payment. to refunded bond
escrow agent (6,471,674j
Total Other Financing
Sources (Uses) (56,657) 1,399 95,032 3,627,829 11
Revenues and Other
Financing Sources Over
(Under) Expenditures and
Other Financing (Uses) (154,002) (2,134) (32,743) 1,983,051
11
Fund balances - Beginning 1,366,637 10,481 78,244 706,073
Fund Balances - Ending S 1,212.635 S 8,347 S 45.501 S 2.689.12411
See Notes to Financial Statements.
17 II
1
1
IIExhibit A-2
1
1 Totals
(Memorandum Only)
September 30, 1993 September 30, 1992
1 $ 5,249,517 $ 4,958,863
979,890 804,453
530,059 545,793
II 838,542 780,604
174,487 171,154
319,384 337,539
693,528 76,299
II
32,273 34,006
216,267 170,145
138,031 151,543
9,171,978 8,030,399
1,149,344 1,112,882
II
2,814,658 3,061,016
1,621,896 1,537,447
386,976 326,854
1,319,689 1,087,039 1
2,318,794 371,954
945,000 830,000
II
489,052 485,242
11,045,409 8,812,434
1 (1,873,431) (782,035)
1,812,405 1,664,354
1 (304,802) (633,319)
6,471,674
II
2,160,000
(6,471,674)
1 3,667,603 1,031,035
II 1,794,172 249,000
2,161,435 1,912,435
1 S 3.955.607 S 2.161.435
il
18
I
CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL I
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Year Ended September 30, 1993 II
General Fund II
Variance
Favorable
Budget Actual (Unfavorable)'
Revenues
Property taxes $ 3,883,478 $ 3,966,813 $ 85,335
Sales taxes 977,465 979,890 2,425
Franchise fees 533,390 530,059 (3,331)11
Sanitation 760,179 838,542 78,363
Fines and forfeitures 165,860 174,487 8,627
Permits and fees 299,638 319,384 19,746 II
Donations 8,407 8,609 202
Intergovernmental 34,985 32,273 (2,712)
Interest on investments 134,017 128,002 (6,015)
Other 84,495 138,006 53,511
Total Revenues 6,881,914 7,118,065 236,151 i
Expenditures
Current:
General government 1,331,445 1,149,344 182,101 II
Public safety 2,726,870 2,737,505 (10,635)
Public works 1,553,524 1,621,896 (68,372)
Community development 391,571 386,976 4,595 I
Community services 1,386,414 1,319,689 66,725
Debt Service:
Principal retirement
Interest and fiscal charges
Total Expenditures 7,389,824 7,215,410 174,414
Revenues Over (Under)
Expenditures (507,910) (97,345) 410,56511
Other Financing Sources (Uses)
Operating transfers in 248,145 248,145
Operating transfers (out) (311,353) (304,802) 6,551 II
Proceeds from the sale of
refunding bonds
Payment to refunded bond escrow agent _
Total Other Financing 11
Sources (Uses) (63,208) (56,657) 6,551
Revenues and Other FinancingII
Sources Over (Under)
Expenditures and Other
Financing (Uses) (571,118) (154,002) 417,116
Fund balances - Beginning 1,366,637 1,366,637 II
Fund Balances - Ending $ 795.519 $ 1.212,635 $ 417.1161
See Notes to Financial Statements.
19
II
II
II
Exhibit A-3
II
IISpecial Revenue Fund Debt Service Fund
Variance Variance
Favorable
II Budget Actual (Unfavorable) (Unfavorable)
Budget Actual Favorable
rable)
$ $ $ $ 1,251,586 $ 1,280,704 $ 29,118
11
II76,163 73,000 (3,163)
1,230 620 (610) 24,897 25,573 676
II77,393 73,620 (3,773) 1,276,483 1,306,277 29,794
II
83,198 77,153 6,045
II
II
937,500 945,000 (7,500)
488,030 489,052 (1,022)
83,198 77,153 6,045 1,425,530 1,434,052 (8,522)
II (5,805) (3,533) 2,272 (149,047) (127,775) 21,272
II
1,399 1,399 95,032 95,032
6,471,674 6,471,674
II (6,471,674) (6,471,674)
1,399 1,399 95,032 95,032
II
' (5,805) (2,134) 3,671 (54,015) (32,743) 21,272
10,481 10,481 78,244 78,244
II
S 4,676 S 8,347 S 3,671 S 24,229 $ 45,50.1_ $ 21,272
il
20
I
CITY OF FRIENDSWOOD, TEXAS I
COMBINED STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE — I
PROPRIETARY FUND TYPE AND NON—EXPENDABLE TRUST FUND
Year Ended September 30, 1993 I
with comparative totals for Year Ended September 30, 1992
Proprietary Fiduciary I
Fund Type Fund Type
Non-Expendable
Enterprise Trust '
Operating Revenues
Water charges $ 2,612,847 $
Sewer charges 1,070,081
Fees and penalties 85,820
Interest on investments 1,048 II
Other 39,818
Total Operating Revenues 3,808,566 1,048 II
Operating Expenses
Water operations 824,110 II
Sewer operations 1,063,052
Operation administration 88,353
Finance administration 163,132
Computer services 4,294 II
Insurance 26,259
Engineering 77,769 IIDepreciation 695,616
Total Operating Expenses 2,942,585
Operating Income 865,981 1,048 II
Nonoperating Revenues (Expenses)
Interest revenue 172,257
11
Interest expense (390,307)
Total Nonoperating Revenues (Expenses) (218,050)
Income Before Operating Transfers 647,931 1,048 '
Operating Transfers In (Out) II
Operating transfers (out) (1,507,603)
Net Income (Loss) (859,672) 1,048 II
Retained earnings/Fund balance - Beginning 4,230,811 85,139 II
Retained Earnings/Fund Balance - Ending $ 3,371.139 $ 86,187 II
See Notes to Financial Statements.
21 1
1
1
IIExhibit A-4
1
II
Totals
(Memorandum Only)
1 September 30, 1993 September 30, 1992
$ 2,612,847 $ 2,428,937
1,070,081 1,031,407
1 85,820 78,697
1,048 1,172
39,818 28,338
1 3,809,614 3,568,551
1 824,110 770,128
1,063,052 990,540
88,353 83,949
II 163,132 4,294 151,319
5,299
26,259 17,998
77,769 44,461
1
695,616 648,639
2,942,585 2,712,333
II
867,029 856,218
II 172,257 70,582
(390,307) (337,952)
II
(218,050) (267,370)
648,979 588,848
1
(1,507,603) (1,031,035)
II
(858,624) (442,187)
II
4,315,950 4,758,137
1 S 3.457.326 S 4.315.950
II
22
I
CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF CASH FLOWS —
PROPRIETARY FUND TYPE AND NON—EXPENDABLE TRUST FUND
Year Ended September 30, 1993
with comparative totals for Year Ended September 30, 1992
Proprietary Fiduciary II
Fund Type Fund Type
Non-Expendable
Enterprise Trust
Cash Flows from Operating Activities
Operating income $ 865,981 $ 1,048
11
Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating
Activites:
Depreciation and amortization 695,616
Changes in Assets and Liabilities:
(Increase) Decrease in accounts receivable (95,086)
(Increase) Decrease in other assets (47,433)
Increase (Decrease) in accounts
payable and accrued liabilities 305,485
Increase (Decrease) in customer deposits 25,670 ,
Increase (Decrease) in compensated absences 15,669
Net Cash Provided by
Operating Activities 1,765,902 1,048
Cash Flows from Noncapital Financing Activities
Operating transfers (out) (1,507,603)
Net Cash (Used) by Noncapital
Financing Activities (1,507,603)
Cash Flows from Capital and Related
Financing Activities
Contributed capital 353,020
Capital expenditures for property, plant,
and equipment (1,868,716)
Issuance of revenue bonds and certificates
of obligation 2,840,000
Principal payments on revenue bonds and
certificates of obligation (310,000)
Interest payments on revenue bonds and
certificates of obligation (390,307)
Net Cash Provided (Used) by Capital
and Related Financing Activities 623,997
Cash Flows from Investing Activities
Interest on investments 172,257
Net Cash Provided by
Investing Activities 172,257
Net Increase (Decrease) in Cash
and Cash Equivalents 1,054,553 1,048
Cash and cash equivalents, beginning of year 1,473,786 27,939 11
Cash and Cash Equivalents, End of Year S 2.528.339 S 28.987
See Notes to Financial Statements.
23
II
II
II
Exhibit A-5
II
ITotals
(Memorandum Only)
September 30, 1993 September 30, 1992
I $ 867,029 $ 856,218
II 695,616 650,921
(95,086) (65,821)
II (47,433) (9,438)
305,485 (34,467)
II
25,670 41,800
15,669 327
1,766,950 1,439,540
II (1,507,603) (1,031,035)
I
(1,507,603) (1,031,035)
I
353,020 494,180
(1,868,716) (949,210)
I
2,840,000
(310,000) (235,000)
II (390,307) (337,952)
623,997 (1,027,982)
II 172,257 70,582
II
172,257 70,582
1,055,601 (548,895)
II
1,501,725 2,050,620
$ 2.557.326 S 1.501.725
II
I
24
I
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
1
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES '
The City of Friendswood, Texas (the City) , was incorporated on
October 15, 1960 with the charter providing for a Mayor-Council form of
city government. On October 16, 1971, the charter was amended to
provide for a City Council-City Manager form of government. The
charter was also amended on March 24, 1992, to provide for a term
limitation of three terms. It also changed the term of Mayor and
Council Members from two to three years and is being phased in over a
three year period. The Mayor and six Council Members are elected from
the City at large. '
The City Council is the principal legislative body of the City. The
City Manager is appointed by a majority vote of the City Council and is ,
responsible to the Council for the administration of all the affairs of
the City. The City Manager is responsible for law enforcement,
appointment and removal of department directors and employees,
supervision and control of all City departments, and preparation of the
annual budget. The Mayor presides at meetings of the City Council and
can vote.
The City provides the following services: public safety, streets, I
parks and recreation, library, water and sewer, sanitation, planning
and zoning, building inspection, code enforcement, and general
administrative services.
A. Renortin2 Entity
The combined financial statements of the City include all funds '
and operations which are controlled by or dependent upon the
City. The criteria considered in determining governmental
activities to be reported within the City's combined financial 1
statements include the degree of oversight responsibility
exercised by the City Council over an organization, activity,
or function. Oversight responsibility is demonstrated by
financial interdependency, selection of governing authority,
designation of management, ability to significantly influence
operations, and accountability for fiscal matters.
11
The City is the lowest level of government exercising oversight
responsibility and control over all activities related to
operations of the City within the boundaries of the City of
Friendswood, Texas. The City is not included in any other
governmental "reporting entity" as defined by the Governmental
Accounting Standards Board, since the City Council is elected
by the public and has decision making authority, the power to
designate management, the ability to significantly influence
operations, and primary accountability for fiscal matters.
25 '
I
ICITY OF FRIENDSWOOD, TEXAS
I
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
INOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. Reportine Entity (continued)
IThe City participates in funding a contributory pension plan
(see Note 6) . Under applicable sections of State of Texas
I statutes,
the responsibility for the administration and
operations of the Texas Municipal Retirement System has been
vested with its pension board. The pension plan has not been
included in the City's reporting entity because the City
II Council is not able to exercise control over the operations of
the plan, to select the plan's governing authority, designate
management, or otherwise significantly influence operations.
II The City is also not responsible for financing deficits, if
any, of the plan, is not entitled to surpluses, and does not
guarantee debts of the plan.
I
The City offers its employees a deferred compensation plan
created in accordance with Internal Revenue Code Section 457.
Pursuant to Statement No. 2 of the Governmental Accounting
I
Standards Board, the plan is included in the City's reporting
entity as an agency fund because the City has title to the
plan's assets under established regulations.
I
As indicated in Note 8, the City participates in a joint
venture (Blackhawk Regional Waste Treatment Plant) with three
other entities, under the authority of the Gulf Coast Waste
I
Disposal Authority. This venture is accounted for under the
equity method.
I
B. Basis of Presentation - Fund Accounting
The City's accounts are organized on the basis of funds or
account groups, each of which is considered to be a separate
11 accounting entity. The operations of each fund are accounted
for by providing a set of self-balancing accounts which consist
of each fund's assets, liabilities, fund equity, revenues, and
I
expenditures or expenses, as appropriate. Governmental
resources are allocated to and accounted for in individual
funds based on the purposes for which they are intended and the
means by which spending activities are controlled. The
IIfollowing paragraphs describe the fund types and account groups
used by the City.
II
II
II 26
1
CITY OF FRIENDSWOOD. TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) '
B. Basis of Presentation - Fund Accounting (continued)
Governmental Fund Types '
Governmental Funds are those through which most governmental
functions of the City are financed. The acquisition, use, and
balances of the City's expendable financial resources and the
related liabilities (except those accounted for in the
proprietary and fiduciary fund types) are accounted for through
Governmental Funds. The measurement focus is based on
determination of changes in financial position, rather than on
net income determination. The following are the City's
governmental fund types:
General Fund
The General Fund accounts for the resources used to
finance the fundamental operations of the City. The
principal sources of revenue of the General Fund are
property taxes, sales and use taxes, franchise taxes,
fines and forfeitures, permits and fees, and
sanitation. Expenditures are for general government,
public safety, public works, community development,
and community services.
Debt Service Fund
The Debt Service Fund is used to account for the
accumulation of resources for the retirement of '
general long-term debt and related costs. The primary
source of revenue of the Debt Service Fund is property
taxes.
Special Revenue Funds
The Special Revenue Funds are used to account for the
proceeds of specific revenue sources (other than
expendable trusts and major capital projects) that are
legally restricted or designated for specified
activities. ,
Capital Projects Funds
The Capital Projects Funds are used to account for the
financial resources to be used for the acquisition or
construction of major capital facilities financed
principally by proceeds of bond and certificate of
obligation issues. 1
I
27
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Basis of Presentation - Fund Accounting (continued)
Proprietary Fund Type
Enterprise Fund
The Enterprise Fund is used to account for the City's
water, wastewater collection, and wastewater treatment
operations. Such operations are operated in a manner
' similar to private business enterprises, where the
intent of the City is that the costs (including
depreciation) of providing goods or services to the
general public on a continuing basis will 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 (revenue 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.
' This fund is accounted for on the same basis as
proprietary funds.
' Agency Fund
The Agency Fund (Deferred Compensation Fund) is used
to account for assets held for employees in accordance
with the provisions of Internal Revenue Code
11 Section 457. The Agency Fund is custodial in nature
(assets equal liabilities) and does not involve
rem measuent of results of operations.
I
Account Groups
Account groups are used to establish accounting control and
accountability for the City's general fixed assets and general
' long-term debt where such items do not directly affect net
expendable available resources. The following are the City's
account groups:
' General Fixed Assets
The General Fixed Assets Account Group is used to
account for the City's land, buildings, improvements,
' and equipment except those recorded in proprietary and
fiduciary fund types.
28
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ,
B. Basis of Presentation - Fund Accounting (continued)
Account Groups (continued) '
General Long-Term Debt
This account group is used to account for the City's
liability for general obligation bonds, certificates
of obligation, and other long-term liabilities which
are payable from governmental fund resources. The
debt is offset by the amount available in the Debt
Service Fund and the amount to be provided in future
years.
C. Basis of Accounting I
The basis of accounting is the method by which revenues and
expenditures or expenses are recognized in the accounts and
reported in the financial statements. The accounting and
financial reporting treatment applied to a fund is determined
by its measurement focus. All Governmental Fund Types are
accounted for using a current financial resources measurement
focus. With this measurement focus, only current assets and
current liabilities generally are included on the balance
sheet. Operating statements of these funds present increases
(i.e. , revenues and other financing sources) and decreases
(i.e. , expenditures and other financing uses) in net current
assets. I
The Proprietary Fund Type and the Non-expendable Trust Fund are
accounted for on a flow of economic resources measurement
focus. With this measurement focus, all assets and liabilities
associated with the operation of this fund are included on the
balance sheet. Fund equity (i.e. , net total assets) is
segregated into contributed capital and retained earnings
components. Operating statements for these funds present
increases (i.e. , revenues) and decreases (e.g. , expenses) in
net total assets.
The modified accrual basis of accounting is used by the
Governmental Fund Types and Agency Fund. Under the modified
accrual basis of accounting, revenues are recognized when
susceptible to accrual, i.e. , both measurable and available. 11
"Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current
period or soon enough thereafter to be used to pay liabilities
of the current period. Most types of revenue are recorded as
revenues when received in cash because they are generally not
measurable until actually received. Investment earnings are
11
recorded as earned since they are measurable and available.
29
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
1 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Basis of Accounting (continued)
Under the modified accrual basis of accounting, expenditures
(including capital outlay) are recorded when the liability is
' incurred, except for general obligation debt principal and
interest which are recorded when paid rather than when
incurred.
The Proprietary Fund Type and Non-expendable Trust Fund are
accounted for using the accrual basis of accounting, whereby
revenues are recognized in the period in which they are earned
and expenses are recognized in the period in which they are
incurred.
D. Budgets
Procedures in establishing budgetary data reflected in the
financial statements are as follow:
! 1. On or before the first day of August of each year, the
City Manager shall submit to the Council a proposed
budget and an accompanying message. The Council shall
review the proposed budget and revise as deemed
appropriate prior to general circulation for public
hearing. The Council shall adopt the budget by
' ordinance on one reading on or before the 15th day of
September or as soon thereafter as practical.
Adoption of the budget shall require an affirmative
' vote of at least a majority of all members of the
Council. Adoption of the budget shall constitute
appropriations of the amounts specified therein as
expenditures from the funds indicated. If, during the
11 fiscal year, the City Manager certifies that there are
available for appropriation, revenues in excess of
those estimated in the budget, the Council may make
supplemental appropriation for the year up to the
amount of such excess.
2. At any time during the fiscal year, the City Manager
may transfer part or all of any unencumbered
appropriation balance among programs within a
department, division, or office, and, upon written
' request by the City Manager, the Council may by
ordinance transfer part or all of any unencumbered
appropriation balance from one department, office, or
agency to another.
' 30
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) '
D. Budgets (continued)
3. Limitations: No appropriation for debt service may be ,
reduced or transferred and no appropriation may be
reduced below any amount required by law to be
appropriated or by more than the amount of the
unencumbered balance thereof.
4. Lapse of Appropriations: Every appropriation, except
an appropriation for a capital expenditure, shall
lapse at the close of the fiscal year to the extent
that it has not been expended or encumbered. An
appropriation for a capital expenditure shall continue
in force under the purpose for which it was made until
it has been accomplished or abandoned. The purpose of
any such appropriation shall be deemed abandoned if
three years pass without disbursement from or
encumbrance of the appropriation.
5. Legally adopted annual budgets for the General,
Special Revenue, and Debt Service Funds are prepared
on a basis consistent with generally accepted
accounting principles (GAAP) at the departmental
level, the legal level of budgetary control. Annual
and project budgets are also adopted for the
Proprietary and Capital Projects Funds, respectively.
6. Encumbrances represent commitments related to
unperformed contracts for goods or services.
Encumbrance accounting - under which purchase orders,
contracts, and other commitments for the expenditure
of resources are recorded to reserve that portion of
the applicable appropriation - is utilized in the
governmental funds. Encumbrances outstanding at year
end are reported as reservations of fund balances and
do not constitute expenditures or liabilities because
the commitments will be honored during the subsequent
year. Encumbrances that lapse are reappropriated in
the ensuing years budget.
The City of Friendswood has complied with all budget
requirements for the year ended September 30, 1993. No
significant supplemental appropriations were necessary during
the year.
I
31 ,
I
ICITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
INOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. Cash and Cash Equivalents
ICash and cash equivalents for purposes of the cash flows
statement for Proprietary Fund types includes cash and
I temporary
investments as disclosed in Note 2. These cash and
investments are generally available for the City's disbursement
needs and have a maturity of three months or less from the date
of acquisition.
IIF. Inventories
I
Inventories are stated at cost. The city uses the consumption
method of accounting for inventories. Under this method
inventory items are recorded as expenditures when used with
unused quantities at year end recorded as an asset in the
I
purchasing fund.
G. Interfund Transactions
IITransactions Between Funds
Transactions between funds that would be treated as revenues,
IIexpenditures, or expenses if they involved organizations
external to the governmental unit are accounted for as
revenues, expenditures, or expenses in the funds involved.
Transactions which constitute reimbursements of a fund for
I
expenditures or expenses initially made from that fund which
are properly attributable to another fund are recorded as
expenditures or expenses in the reimbursing fund and primarily
II as reductions of the expenditure or expense in the fund that is
reimbursed.
Non-recurring or non-routine transfers of equity between funds
I are reported as additions to or reductions of the fund balance
of Governmental Funds. Transfers of equity to the Enterprise
Fund are treated as contributed capital, and such transfers
II from the Enterprise Fund are reported as reductions of retained
earnings or contributed capital, as is appropriate in the
circumstances. All other legally authorized transfers are
treated as operating transfers and are included in the results
IIof operations of both the Governmental and Proprietary Fund
Types.
II
II
I
32
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1
H. Fund Equity
Contributed capital is recorded in the Enterprise Fund which
has received capital grants, contributions from developers and
customers, and/or other funds. Reserved equity balances
represent those portions of fund balance not appropriable for
expenditure or legally segregated for a specific future use.
Designated fund balances represent tentative plans for future
use of financial resources. Undesignated fund balances
represent available balances for the City's future use.
I. Compensated Employee Absenses
The City's employees earn vacation and sick leave which may
either be taken or accumulated, up to certain amounts, until
paid upon termination or retirement.
The City accrues vacations and sick leave based on criteria
established by the Governmental Accounting Standards Board.
For all funds, this liability reflects amounts attributable to
cumulative employee services previously rendered, where the
payment is probable and can be reasonably estimated. The
liability for accumulated vacation and sick leave, as of
September 30, 1993, has been recorded in the General and
Enterprise Funds since the liability is to be liquidated with
expendable available resources. 1
J. Fixed Assets
General Fixed Assets
General fixed assets have been acquired or constructed for
general governmental purposes. Such fixed assets are recorded
as expenditures in the Governmental Funds and capitalized at
historical cost in the General Fixed Assets Account Group.
Gifts or contributions of general fixed assets are recorded at
estimated fair market value upon receipt. Public domain
("infrastructure") general fixed assets consisting of certain
improvements other than buildings, including roads, bridges,
curbs and gutters, streets and sidewalks, drainage systems, and
lighting systems are capitalized as general fixed assets. No
depreciation has been provided on general fixed assets.
11
33
•
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
J. Fixed Assets (continued)
' Enterprise Fund Fixed Assets
The land, buildings, and equipment owned by the Enterprise Fund
' are recorded at historical cost or at estimated fair market
value for contributed assets. Interest costs during
construction are capitalized when the effects of capitalization
materially impact the financial statements. Some of the assets
t on which such interest was capitalized are still under
construction and are classified as construction in progress in
the Enterprise Fund. Depreciation of buildings and equipment
' is provided using the straight-line method over the following
estimated useful lives:
Years
Water and sewer system 40-50
Equipment 5 10
Additions to the water and sewer systems are financed
principally from sources other than Enterprise Fund operating
' revenues. Such additions are reflected as contributed capital
in the accompanying financial statements. Depreciation
recognized on assets acquired or constructed by general
obligation bond proceeds is recorded as an expense in the
statement of operations.
The costs of normal maintenance and repairs are charged to
' operations as incurred. Improvements and betterments which
extend the useful lives of the assets are capitalized.
K. Debt Service
The ad valorem tax rate is allocated each year between the
General Fund and the Debt Service Fund. The full amount
' estimated to be required for debt service on general obligation
debt is provided by the tax along with interest earned in the
Debt Service Fund. Enterprise Fund long-term debt requirements
are provided by net revenues of the fund.
1
1
1 34
0
CITY OF FRIENDSWOOD. TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) o
L. General Property Taxes
All taxes due the City on real or personal property are payable o
at the Office of the City Assessor-Collector and may be paid at
any time after the tax rolls for the year have been completed
and approved, which is no later than October 1. Taxes are
levied on October 1 and are due by February 1, and all taxes
not paid prior to this date are deemed delinquent and are
subject to penalty and interest. All property located within
the City limits on the first day of January of each year is
charged with a special lien in favor of the City from such date
for taxes due thereon.
M. Allowances
The allowance for doubtful accounts has been recorded at
September 30, 1993 as follows:
Fund Type of Account Amount
Enterprise Fund Water and Sewer Billings $ 10,000
General Fund Sanitation Billings 2,000
N. Total Columns on Combined Statements
Total columns presented in the combined financial statements
are captioned (Memorandum Only) to indicate that they are
presented only to facilitate financial analysis. Data in these
columns do not represent financial position, results of
operations, or changes in financial position in conformity with
generally accepted accounting principles. Interfund
eliminations have not been made in the aggregation of this
data. Certain reclassifications have been made to the data for
the prior year to conform with the current year presentation.
0
11
0
35
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 2 - DEPOSITS (CASH) AND TEMPORARY INVESTMENTS
Deposits (Cash)
' The City's funds are required to be deposited and invested under the
terms of a depository contract pursuant to state statutes. The
' depository bank deposits, for safekeeping and trust with the City's
agent bank, approved pledged securities in an amount sufficient to
protect City funds on a day-to-day basis during the period of the
contract. The pledge of approved securities is waived only to the
extent of the depository bank's dollar amount of Federal Deposit
Insurance Corporation ("FDIC") Insurance.
' The City's cash deposits, at September 30, 1993, were entirely covered
by FDIC insurance or by pledged collateral held by the City's agent
bank. The deposits were collateralized in accordance with state law
and were properly secured throughout the year.
The cash deposits held at financial institutions can be categorized
according to three levels of risk. These three levels of risk are:
' Category 1 Deposits which are insured or collateralized with
securities held by the entity or by its agent in the
entity's name.
' Category 2 Deposits which are collateralized with securities held
by the pledging financial institution's trust
department or agent in the entity's name.
' Category 3 Deposits which are not collateralized.
Based on these three levels of risk, all of the City's cash deposits
are classified as Category 1.
Temporary Investments
Statutes authorize the City to invest in obligations of the U. S.
Treasury or the State of Texas, certain U. S. agencies, certificates of
deposit, money market savings accounts, certain municipal securities,
repurchase agreements, common trust funds, and other investments
specifically allowed by the Public Funds Investment Act of 1987
(Article 842a.-2 Vernon's Civil Statutes) .
I
11
' 36
I
CITY OF FRIEND SWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 2 - DEPOSITS (CASH) AND TEMPORARY INVESTMENTS (continued) I
Temporary Investments (continued)
Similar to cash deposits, investments held at a financial institution ,
can be categorized according to three levels of risk. These three
levels of risk are:
Category 1 Investments that are insured, registered or held by the
entity or by its agent in the entity's name.
Category 2 Investments that are uninsured and unregistered held by
the counterparty's trust department or agent in the
entity's name.
Category 3 Uninsured and unregistered investments held by the
counterparty, its trust department or its agent, but
not in the entity's name.
Based on these three levels of risk, all of the City's investments
other than amounts in Texpool are classified as Category 1. The
Texpool investments are not evidenced by securities that exist in
physical or book entry form and accordingly are not categorized.
However, Texpool policies require that local government deposits be
used to purchase investments authorized by the Public Funds Investment
Act of 1987, as amended.
Cash and Temporary Investments
The City's cash and temporary investments, at September 30, 1993, are
shown below.
Carrying Market
Amount Value
Cash $ 667.988 $ 667.988 I
United States Government Securities 1,271,593 1,271,593
Texpool 5.999.914 5.999,914
Total Temporary Investments 7.271.507 7.271.507
Total Cash and Temporary
Investments $ 7.939.495 $ 7,939.495
I
37
1
1 CITY OF FRIEND SWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 3 - PROPERTY TAXES
The City's property taxes are levied annually in October on the basis
1 of the Appraisal District's assessed values as of January 1 of that
calendar year. Appraised values are established by the Appraisal
District at market value and assessed at 100% of appraised value. The
1 City's property taxes are billed and collected by the City's Tax
Assessor/Collector. Such taxes are applicable to the fiscal year in
which they are levied and become delinquent with an enforceable lien on
property on February 1 of the subsequent calendar year.
Property taxes are prorated between operations and debt service based
on rates adopted for the year of the levy. For the current year, the
1 City levied property taxes of $.663 per $100 of assessed valuation
which were prorated between operations and debt service in the amounts
of $.5016 and $.1614, respectively. The resulting adjusted tax levies
were $3,918,438 and $1,260,837 for operations and debt service,
' respectively, on the total adjusted taxable valuation of $781,187,783
for the 1993 tax year.
1 Property taxes receivable, at September 30, 1993, consists of the
following:
1 Tax General Debt Service
Year Fund Fund
1993 $ 74,291 $ 23,900
1 1992 29,928
17,824 10,937
1991 6,525
1990 16,070 4,873
1989 14,672 5,421
1988 and prior 77.083 31.554
S 229.868 $ 83.210
1
1
1
11
1
38
I
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 4 - LAND, BUILDINGS AND EQUIPMENT I
A summary of changes in land, buildings, and equipment included in the
General Fixed Assets Account Group, for the year ended September 30,
1993, follows: II
Balance Balance
October 1, September 30,
1992 Additions Retirements 1993
Land S 1,424,893 S 503,219 S $ 1,928,112
Buildings 2,452,811 476,827 2,929,638
Improvements other
than buildings 12,170,845 491,956 12,662,801
Furniture and equipment 3,465,437 368,223 (118,871) 3,714,789
Construction in progress 109.110 1.718.657 (968.601) 859.166
Total General Fixed
Assets $ 19.623.096 $ 3.558.882, S(1.087.472) S 22� 0994.506
mmm
A summary of changes in Enterprise Fund land, buildings, and equipment,
for the year ended September 30, 1993, follows: I
Transfers
Balance In (Out) Balance
October 1, and September 30,
1992 Additions Retirements 1993
Land S 249,417 S S $ 249,417
Plant and equipment 9,275,624 98,018 240,598 9,614,240
Plant and equipment -
Blackhawk 9,749,543 9,749,543II
Water and sewer line 8,312,024 8,312,024
Construction in progress 235.357 1.770.698 (273.598) 1.732.457
S 27 821�,965 S 1.868,716 $ (33.000) 29,657,681
Less accumulated
depreciation (6.955.142)
Net Land, Buildings,
and Equipment S 22
11
There were no significant construction commitments at September 30,
1993.
i
NOTE 5 - LONG-TERM DEBT
General Obligation Bonds II
The City issues general obligation bonds to provide funds for the
acquisition and construction of major capital facilities payable from
the proceeds of an annual ad valorem tax. General obligation bonds
have been issued to refund both general obligation and revenue bonds.
These bonds therefore are reported in the proprietary fund if they
are expected to be repaid from proprietary fund revenues.
I
39
I
ICITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
INOTE 5 - LONG-TERM DEBT (continued)
General Obligation Bonds (continued)
IGeneral obligation bonds are direct obligations and pledge the full
faith and credit of the City. General obligation bonds currently
outstanding are as follow:
IPurpose Interest Rates Amount
General government - Refunding 2.25% - 7.9% $ 6,535,777*
I Proprietary - Refunding 2.25% - 4.625% 3,015,000
* A portion of the bonds sold in the Series 1986 refunding bond issue
were compound interest bonds. These obligations have par values of
I
$440,777 and maturity values of $1,305,000. The interest on these
obligations will be paid upon maturity in the fiscal years ending
September 30, 2000, through 2004. The accreted values of these bonds
at September 30, 1993, is approximately $761,649; and accordingly,
II accrued interest on these bonds of $320,872 has been recorded in the
general long-term debt account group.
IAnnual debt service requirements to maturity for general obligation
bonds, including interest of $2,782,882, are as follow:
Enterprise General Long-
"' Fiscal Year Fund Term Debt Total
1994 $ 146,466 $ 1,211,895 $ 1,358,361
1995 145,791 1,114,718 1,260,509
II
1996 194,141 1,183,970 1,378,111
1997 638,194 727,909 1,366,103
1998 652,504 744,290 1,396,794
II Thereafter 2.000.674 3.573.107 5.573.781
$ 3,777,770 S 8.555,889 $ 12.333.659
I
Combination Tax and Revenue Certificates of Obligation
The City also issues combination tax and revenue certificates of
11 obligation (C.O. 's) to provide funds for the acquisition and
construction of major capital facilities payable from the proceeds of
an annual ad valorem tax and further payable from a junior and
subordinate pledge of the net revenues of the City's water and sewer
1 system. C.O. 's have been issued for both general government and
proprietary activities. These bonds therefore are reported in the
proprietary fund if they are expected to be repaid from proprietary
1 revenues. C.O. 's currently outstanding are as follow:
Purpose Interest Rates Amount
General government 5.3% - 8.375% $ 2,205,000
IProprietary 5.3% - 8.375% 3,660,000
1 40
I
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6 111
NOTE 5 - LONG-TERM DEBT (continued) I
Combination Tax and Revenue Certificates of Obligation (continued)
Annual debt service requirements to maturity for C.O. 's, including I
interest of $3,212,095, are as follow:
Enterprise General Long- '
Fiscal Year Fund Term Debt Total
1994 $ 375,755 $ 171,729 $ 547,484
1995 421,370 153,833 575,203
1996 519,855 151,808 671,663
1997 527,291 149,783 677,074
1998 230,109 196,070 426,179
Thereafter 3.480.017 2.699.475 6.179.492
$ 5.554.397 $ 3.522.698 $ 9.077.095
Revenue Bonds I
The City also issues bonds where the City pledges income derived from
the acquired or constructed assets to pay debt service. Revenue bonds
outstanding are as follow:
Purpose Interest Rates Amount
Proprietary 5.5% - 6.125% $ 465,000
Annual debt service requirements to maturity for revenue bonds,
including interest of $72,876, are as follow:
Enterprise I
Fiscal Year Fund
1994 $ 160,710
1995 157,710
1996 57,260
1997 54,253
1998 55,895
Thereafter 52.048
$ 537.876
I
I
I
41 I
1
ICITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
1 NOTE 5 - LONG-TERM DEBT (continued)
Summary of Long-term Debt Requirements
1 The annual requirements to amortize all long-term debt outstanding at
September 30, 1993, including interest payments are as follows:
II
Year Ending General Long- Enterprise
September 30, Term Debt Fund Debt Total
1994 $ 1,383,624 $ 682,931 $ 2,066,555
II 1995 1,268,551 724,871 1,993,422
1996 1,335,778 771,256 2,107,034
1997 877,692 1,219,738 2,097,430
II 1998 940,360 938,508 1,878,868
1999 924,182 926,206 1,850,388
2000 1,360,458 492,041 1,852,499
2001 649,639 486,569 1,136,208
II 2002 645,364 485,157 1,130,521
2003 643,257 488,258 1,131,515
2004 645,723 490,803 1,136,526
II 2005 346,320 583,530 929,850
2006 350,238 556,825 907,063
2007 352,913 525,012 877,925
2008 354.488 498.338 852.826 1
12,078,587 9,870,043 21,948,630
Less interest 3.337.810 2.730.043 6.067.853
$ 8.740.777 $ 7.140.000 $15.880.777
IAdvance Refunding
II One April 14, 1993, the City advance refunded a portion of general
obligation refunding bonds and unlimited tax and revenue certificates
of obligation with general obligation refunding bonds. The City issued
$6,555,000 of general obligation refunding bonds to provide resources
Ito purchase government securities that were placed in an irrevocable
trust for the purpose of generating resources for all future debt
service payments on the refunded debt. The proceeds were received by
1 the Debt Service Fund net of issuance costs. As a result, the refunded
bonds are considered to be defeased and the liability has been removed
from the General Long-Term Debt Account Group and the Proprietary Fund.
This advance refunding was undertaken to reduce total debt service
IIpayments over the next 11 years by $229,919 and to obtain an economic
gain (difference between the present value of the debt service payments
of the refunded and refunding bonds) of $205,550.
I
II
II
42
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 5 - LONG-TERM DEBT (continued) 1
Prior Year Defeasance of Debt
In prior years, the City defeased certain general obligation and other
bonds by placing the proceeds of new bonds in an irrevocable trust to
provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the
defeased bonds are not included in the City's financial statements. On
September 30, 1993 $3.4 million of bonds outstanding are considered
defeased.
Changes In Long-Term Liabilities
During the year ended September 30, 1993, the following changes
occurred in liabilities reported in the Enterprise Fund and the General
Long-Term Debt Account Group:
Enterprise Fund 1
Balance Balance
October 1, September 30,
1992 Additions Reductions 1993
Revenue bonds S 600,000 S S 135,000 S 465,000
General obligation debt 3,075,000 60,000 3,015,000
Certificates of obligation 4.010.000 2.840.000 3.190.000 3.660.000
Total S 4.6_ 1� 0.000 $ 5.915.000 $ 3.385.000 S 7.140.0001
omfinfilit
General Long-Term Account Group
Balance Balance
October 1, September 30,
1992 Additions Reductions 1993
Accrued interest on
premium compound 11
interest bonds $ S 320,872 $ S 320,872
General obligation debt 6,575,777 3,480,000 3,520,000 6,535,777
Certificates of obligation 90.000 2.160.000 45.000 2.205.000
Total $ 6 665 777 $ 5.960.872 S 3.565000 5S9061�649
Reductions in long-term liabilities include refunded certificates I
of obligation of $3,075,000 and general obligation debt of
$2,620,000 in the Enterprise Fund and General Long-Term Debt
Account Group, respectively. I
I
I
43
I
' CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
1 NOTE 6 - RETIREMENT PLANS
A. Texas Municipal Retirement System
Plan Description
The City provides pension benefits for all of its full-time
employees through a non-traditional, joint contributory,
defined contribution plan in the state-wide Texas Municipal
Retirement System ("TMRS") , one of over 570 administered by
TMRS, an agent multiple-employer public employee retirement
11 system. It is the opinion of TMRS management that the plans in
TMRS are substantially defined contribution plans, but they
have elected to provide additional voluntary disclosure to help
foster a better understanding of some of the non-traditional
characteristics of the plan.
Benefits depend upon the sum of the employee's contributions to
the plan, with interest, and the City-financed monetary
credits, with interest. At the inception of the plan, the City
granted monetary credits for service rendered before the plan
' began of a theoretical amount equal to two times what would
have been contributed by the employee, with interest, prior to
establishment of the plan. Monetary credits for service since
initiation of the plan are a percent (100%, 150%, or 200%) of
11 the employee's accumulated contributions. In addition, the
City can grant as often as annually another type of monetary
credit referred to as an updated service credit which is a
theoretical amount which, when added to the employee's
accumulated contributions and the monetary credits for service
since the plan began, would be the total monetary credits and
employee contributions accumulated, with interest if the
current employee contribution rate and the City matching
percent had always been in existence and if the employee's
salary had always been the average of his salary in the last
three years that are one year before the effective date. At
' retirement, the benefit is calculated as if the sum of the
employee's accumulated contributions with interest and the
employer-financed monetary credits with interest were used to
purchase an annuity.
Members can retire at ages 60 and above with ten or more years
of service or with 25 years of service regardless of age. The
1 plan also provides for death and disability benefits. A member
is vested after ten years, but he must leave his accumulated
contributions in the plan. If a member withdraws his own
1 money, he is not entitled to the employer-financed monetary
credits, even if he was vested. The plan provisions are
adopted by the governing body of the City, within the options
available in the state statutes governing TMRS and within the
actuarial constraints also in the statutes.
' 44
t
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit AL-6
1
NOTE 6 - RETIREMENT PLANS (continued)
A. Texas Municipal Retirement System (continued)
Contributions
The contribution rate for the employees is 6%, and the City's
matching percent is currently 150% of that contribution, both
as adopted by the governing body of the City. Under the state
law governing TMRS, the City contribution rate is annually
determined by the actuary. This rate consists of the normal
cost contribution rate and the prior service contribution rate,
both of which are calculated to be a level percent of payroll
from year to year. The normal cost contribution rate finances
the currently accruing monetary credits due to City matching
percent, which are the obligation of the City as of an
employee's retirement date, not at the time the employee's
contributions are made. The normal cost contribution rate is
the actuarially determined percent of payroll necessary to
satisfy the obligation of the City to each employee at the time
11
his retirement becomes effective. The prior service
contribution rate amortizes the unfunded actuarial liability
over the remainder of the plan's 25-year amortization period.
When the City periodically adopts updated service credits and
increases in annuities, the increased unfunded actuarial
liability is to be amortized over a new 25-year period.
Currently, the unfunded actuarial liability is being amortized
over the 25-year period which began January 1991. The unit
credit actuarial cost method is used for determining the City
contribution rate. Contributions are made monthly by both the
employees and the City. Since the City needs to know its
contribution rate in advance to budget for it, there is a one-
year lag between the actuarial valuation that is the basis for
the rate and the calendar year when the rate goes into effect.
The City's total payroll in fiscal year 1993 was $3,699,490,
and the City's contributions were based on a payroll of
$3,339,878. Both the City and the covered employees made the
required contributions, amounting to $208,440 (6.98% of covered
payroll for the months in calendar year 1992 consisting of
5.38% normal cost plus 1.60% to amortize the unfunded actuarial
liability, and 5.97% for the months in calendar year 1993
comprised of 5.40% normal cost plus 2.57% to amortize the
unfunded actuarial liability) for the City and $200,363 (6%)
for the employees. The City adopted changes in the plan
11
subsequent to the previous actuarial valuation, which had the
effect of increasing the City's contribution rate for 1993 by
0.50% of payroll. There were no related-party transactions.
I
45 I
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
1 NOTE 6 - RETIREMENT PLANS (continued)
A. Texas Municipal Retirement System (continued)
Funding Status and Progress
Even though the substance of the City's plan is not to provide
a defined benefit in some form, some additional voluntary
' disclosure is appropriate due to the non-traditional nature of
the defined contribution plan which had an initial unfunded
pension benefit obligation due to the monetary credits granted
by the City for services rendered before the plan began and
1 which can have additions to the unfunded pension benefit
obligation through the periodic adoption of increases in
benefit credits and benefits. Statement No. 5 of the
Governmental Accounting Standards Board (GASB 5) defines
pension benefit obligation as a standardized disclosure measure
of the actuarial present value of pension benefits, adjusted
for the effects of projected salary increases, estimated to be
payable in the future as a result of employee service to date.
The measure is intended to help users assess the funding status
of public employee pension plans, assess progress made in
accumulating sufficient assets to pay benefits when due, and
1 make comparisons among public employee pension plans.
The pension benefit obligation shown below is similar in nature
to the standardized disclosure measure required by CASE 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
1 calculations were made as part of the annual actuarial
valuation as of September 30, 1992. Because of the money-
purchase nature of the plan, the interest rate assumption,
currently 8.5% per year, does not have as much impact on the
results as it does for a defined benefit plan. Market value of
assets is not determined for each City's plan, but the market
value of assets for TMRS as a whole was 112.3% of book value as
of September 30, 1992.
Pension Benefit Obligation
Annuitants currently receiving benefits $ 135,734
11 Terminated employees 577,998
Current Employees
Accumulated employee contributions,
' including allocated invested earnings 1,600,115
Employer-financed vested 1,584,453
Employer-financed nonvested 347.673
' Total Pension Benefit Obligation 4,245,973
Net assets available for benefits,
at book value 3.954.115
Unfunded Pension Benefit Obligation $ 291.858
1
' 46
i
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 6 - RETIREMENT PLANS (continued) I
A. Texas Municipal Retirement System (continued)
Unfunded Pension Benefit Obligation
The book value of assets is amortized cost for bonds and
original cost for short-term securities and stocks. The
assumptions used to compute the actuarially determined City
contribution rate are the same as those used to compute the
pension benefit obligation. The numbers above reflect the
adoption of changes in the plan since the previous actuarial '
valuation, which had the effect of increasing the pension
benefit obligation by $26,527.
Trend information gives an indication of the progress made in
accumulating sufficient assets to pay benefits when due.
Ten-year trend information may be found in Table 14 of the
Statistical Section of the City's comprehensive annual
financial report. For the years ended September 30, 1991,
11
1992, and 1993, respectively, net assets available for benefits
were sufficient to fund 75%, 92%, and 93% of the PBO. The
unfunded PBO represented 26%, 9%, and 9% of the annual payroll
for employees covered by TMRS for 1991, 1992, and 1993,
respectively. In addition, the City's contributions to TMRS
were 5.8%, 6.9%, and 6.2%, respectively, of annual covered
payroll for the years ending September 30, 1991, 1992, and
1993.
B. Deferred Compensation Plan
The City offers its employees a tax-deferred compensation plan
meeting the requirements of Internal Revenue Code Section 457.
The plan was established by City Ordinance which appointed ICMA
Retirement Corporation as plan administrator. The City's
fiduciary responsibility is to remit employee deferred
compensation to the administrator on a regular basis. The
deferred compensation is not available to employees until
termination, retirement, death, or emergency. Employees'
compensation deferred and contributed during 1993 totalled
$36,641 and, at September 30, 1993, the plan assets had a
market value of $378,444.
All amounts of compensation deferred under the plan, all
property and rights purchased with those amounts, and all
income attributable to those amounts, property, or rights are
(until paid or made available to the employee or other
beneficiary) solely the property and rights of the City
(without being restricted to the provisions of the benefits
under the plan) , subject only to the claims of the City's
general creditors. Participants' rights under the plan are
equal to those of general creditors of the City in an amount
equal to the fair market value of the deferred account for each
participant.
47
I
ICITY OF FRIENDSWOOD, TEXAS
I
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
INOTE 7 - INTERFUND TRANSACTIONS
Operating transfers between funds during the 1993 year were as follow:
IOperating Transfer Operating Transfer
From To Amounts
1 General Fund Special Revenue Fund $ 1,399
General Fund Capital Projects Fund 303,403
Enterprise Fund General Fund 248,145
Enterprise Fund Debt Service Fund 95,032
I
Enterprise Fund Capital Projects Fund 1.164.426
S 1.812.405
IINOTE 8 - FUND EQUITY
IIReservations
Retained earnings in the Enterprise Fund of $1,229,135 is reserved for
the following:
1 Water and sewer construction $ 701,182
Surface water construction 141,802
1 Central service area construction 195,886
Debt service 190.265
$1.229.135,
IIDesignations
Fund balance in the General Fund of $800,000 is designated for
1 emergency operations.
Fund balance in the Special Revenue Fund of $8,347 is designated as
follows:
IIPolice investigation $ 2,607
Parks and recreation 2,396
II Fire and EMS 3.344
S 8.347
Fund balance in the Capital Projects Fund of $2,263,216 is designated
IIfor authorized construction.
I
I
I
48
1
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 9 - BLACKHAWK REGIONAL WASTE TREATMENT PLANT I
The City has entered into an arrangement with the Gulf Coast Waste
Disposal Authority for the operation and maintenance of a joint waste
treatment plant known as Blackhawk Regional Waste Treatment Plant. The
City of Friendswood, the City of Houston, Harris County MUD No. 55, and
CDC, Inc. (the "participants") share in the expense of operation and
maintenance based on their respective usage on a monthly basis. The
percentages of equity in the joint venture based on their respective
capacity rights ,at September 30, 1993, follow:
City of Friendswood 52.71% r
City of Houston 15.94
Harris County MUD No. 55 20.28
Baybrook MUD No. 1 11.07
100.00%
An annual budget for operations is submitted to the Gulf Coast Waste l
Disposal Authority each year. The Gulf Coast Waste Disposal Authority
is the governing authority and consists of nine members (three
appointed by the governor, three appointed by Harris County, Galveston
County, and Chambers County, and three appointed by the participants) .
The following unaudited financial information of the joint venture was
available from the operator for the nine months ended September 30,
1993:
Joint
Venture City
Total assets $ 276,103 $ 145,534 11
Total liabilities - all current 8.703 4.587
Total Participants' Equity $ 267.40Q $ 140.947
Total revenues $ 964,180
Total expenses 964.180
$ 0 1
The City accounts for its interest in the regional plant on the
equity method in the Enterprise Fund.
11
NOTE 10 - SOUTHEAST WATER PURIFICATION PLANT
The City has entered into a contract with the City of Houston for
constructing, operating, and maintaining a water purification plant
known as Southeast Water Purification Plant. The City's pro rata share
of the actual production construction costs of the project is 3.75
percent. The City's pro rata share of the actual pumping construction
costs is 1. 33 percent.
1
49
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
' NOTE 10 - SOUTHEAST WATER PURIFICATION PLANT (continued)
The City began receiving water from the plant on October 15, 1990. The
' City is billed on a monthly basis for the actual gallons of water
received times the City's pro rata share of actual costs. At the end
of each quarter, the City of Houston computes the total operation and
maintenance expense for the quarter just ended, recalculates the cost
per one thousand gallons, and adjusts previous billings on the next
invoice.
' The relationship of the parties is of a fiduciary character. No
partnership or joint venture is created by this contract.
NOTE 11 - CONTRIBUTED CAPITAL
' The following is a schedule of changes in contributed capital for the
Enterprise Fund:
1993 1992
1 Contributed capital
at beginning of year $ 14,459,049 $ 13,964,869
Additions - impact fees 353.019 494.180
Contributed Capital
at End of Year $ 14.812.068 $ 14.459.049
I
NOTE 12 - IMPACT FEES
On April 27, 1990, the City, in conformance with the provisions of
Senate Bill 336 and House Bill 1786, adopted a Capital Improvements
Plan for Water Supply and Distribution Improvements and for Wastewater
Treatment and Collection Improvements that were needed to serve new
development. An Impact Fee Structure to defray the costs of these
improvements was also adopted.
In recent years the City has committed funds to the construction of
surface water facilities and wastewater capacity necessary to provide
1 service to current residents, as well as for projected development
within the City. The cost of water and wastewater capacity that has
been constructed to support new growth is reflected in the City Wide
impact fees.
11
' 50
I
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
NOTE 11 - IMPACT FEES (continued) ,
Based on population growth projections, two areas (Melody Lane and
Central Service Area) within the City were identified for the proposed
extension of water distribution and wastewater collection systems and
are included in the impact fee structure. An impact fee was also
included to defray the costs of water distribution facilities extended
to the Bay Area Boulevard Service Area under the terms of a contractual
agreement with Bay Area Land Company, Ltd.
The Capital Improvements Plan and Impact Fee structure was amended by
City Council on January 7, 1991, to include an impact fee for sanitary
sewer collection system costs serving the area known as Mills, Murphy,
and Briarmeadow Avenue between Sunset Drive and Greenbriar.
The following is a summary of the Impact Fees that apply on a City Wide
Basis and for each of the designated service areas. The fees represent
the charge for single equivalent service units as defined in the
Capital Improvement Plan.
City Wide Impact Fees ,
Surface water facilities $ 685
Wastewater treatment facilities 69
Impact fee study and Update study 36
Total City Wide Impact Fee S 790
Water Distribution Impact Fees 1
Melody Lane service area $ 854
Bay Area Boulevard service area 294
South Friendswood service area 293
Wastewater Collection Impact Fees
Melody Lane service area $ 450
Mills, Murphy, Briarmeadow Avenue 2,532
South Friendswood Service Area
Area A 378
Area B-1 378
Area B-2 378
Area C 285
Area D 161
Area E-1 784
Area E-2 784
Area E-3 161
Area E-4 161
Area F 378
51 '
CITY OF FRIENDSWOOD, TEXAS
NOTES TO FINANCIAL STATEMENTS Exhibit A-6
1 NOTE 11 - IMPACT FEES (continued)
Wastewater Collection Impact Fees (continued)
' The impact fees are deposited into a separate, interest bearing bank
account in compliance with the referenced legislation and transferred
to the Enterprise Fund cash account as needed. The impact fees and
interest income for each service area are maintained in separate equity
schedules. Interest is applied based on a percentage of the daily
equity balance of each service area.
The portion of City Wide Impact Fees collected for Surface Water
Facilities are used to meet the current debt service obligations for
the 1988 Certificates of Obligations issued to fund the surface water
facilities capital improvements. The remaining City Wide Impact Fees
collected for Wastewater Treatment Facilities and Impact fee study and
Update Study are used to fund other water and wastewater system
improvements. All Impact Fees collected for specific service areas are
used to fund new capital improvements for those designated areas.
I
I
I
I
' 52
I
I
I
I
I
I
I
I
I COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
I
I
I
I
I
I
I
I
I
I
W
Z
W
1
O
O
no am on an as ow NM Sill all MI all MIN A NM all MIN URI IMO MN
I
I
' GENERAL FUND
1
The General Fund accounts for the resources used to finance the fundamental
operations of the City. It is the basic fund of the City and covers all
activities for which a separate fund has not been established.
I
1
CITY OF FRIENDSWOOD, TEXAS111
GENERAL FUND
COMPARATIVE BALANCE SHEET Exhibit B-1 '
September 30, 1993 and 1992
1993 1992
Assets
Cash and temporary investments S 2,156,410 S 2, 190,002
Receivables
Taxes 229,868 223,198
Accounts 195,004 161,823
Other assets 93,534 48,074
Total Assets S 2,674,816 S 2,623,097 II
Liabilities and Equity
Liabilities
Accounts payable and accrued liabilities $ 534,406 447,491
Compensated absences 625,610 538,898
Deferred revenue 302,165 270,071
Total Liabilities 1,462,181 1,256,460 II
Equity
Fund Balances:
Reserved for encumbrances 68,415 175,146
II
Unreserved:
Designated for emergency operations 800,000 700,000
Undesignated 344,220 491,491 II
Total Equity 1,212,635 1,366,637
Total Liabilities and Equity $ 2.674.816 S 2.623,097 ,
1
1
I
I
53 11
I
I CITY OF FRIENDS WOOD, TEXAS
GENERAL FUND
I STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL Exhibit B-2
I Pagel of 7
Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
I
1993
Variance
II Favorable 1992
Budget Actual (Unfavorable) Actual
Revenues
II
Property taxes $ 3,883,478 $ 3,968,813 $
977,465 979,890 85,335 $ 3,631,731
Sales taxes 2,425 808,405
Franchise fees 533,390 530,059 (3,331) 541,841
Sanitation 760,179 838,542 78,363 780,604
I Fines and forfeitures 165,860 174,487 8,627 171,154
Permits and fees 299,638 319,384 19,746 337,539
Donations 8,407 8,609 202 4,583
Intergovernmental 34,985 32,273 (2,712) 34,006
I Interest on investments 134,017 128,002 (6,015)
53,511 135,984
Other 84,495 138,006 125,970
Total Revenues 6,881,914 7,118,065 236,151 6,571,817
I Expenditures
General Government:
Mayor and Council:
I Personnel services 417 435 (18) 356
Supplies 400 596 (196) 1,043
Other services and
charges 21,092 15,925 5,167 25,164
I Total Mayor and
Council 21,909 16,956 4,953 26,563
City Manager:
I Personnel services 164,497 152,390 12,107
(74) 154,720
Supplies 2,907 2,981 3,254
Repairs and maintenance 1,646 760 886 738
Other services and
I charges 21,996 23,120 (1,124) 13,682
Capital outlay 1,054 1,037 17
Total City Manager 192,100 180,288 11,812 172,394
I City Secretary:
Personnel services 94,729 95,830 (1,101) 83,118
Supplies 3,470 3,016 454 1,957
I Repairs and maintenance 930 893 37 2,490
Other services and
charges 35,340 23,550 11,790 25,154
Capital outlay 6,190 700 5,490
ITotal City Secretary 140,659 123,989 16,670 112,719
I
I 54
I
CITY OF FRIENDSWOOD, TEXAS I
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL Exhibit B-2
Page 2 of 7 I
Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
1993 II
Variance
Favorable 1992 IIBudget Actual (Unfavorable) Actual
Expenditures (continued)
General Government: II(continued)
Finance:
Personnel services 205,361 202,684 2,677 236,640
Supplies 8,750 6,262 2,488 8,160 IIRepairs and maintenance 802 163 639 220
Other services and
charges 27,781 28,503 (722) 29,820
Capital outlay 1,700 1,800 (100) 3,612 11
Total Finance 244,394 239,412 4,982 278,452
Human Resources:
Personnel services 73,406 68,491 4,915 IISupplies 3,600 5,792 (2,192) 1,808
Repairs and maintenance 1,000 1,986 (986)
Other services and
charges 26,015 27,011 (996) 23,827 II
Total Human
Resources 104,021 103,280 741 25,635
Administration:
II
Other services and
charges 242,729 238,789 3,940 244,442
Total Administration 242,729 238,789 3,940 244,442
Municipal Court: 1
Personnel services 94,538 69,154 25,384 73,693
Supplies 4,675 3,214 1,461 2,668
Repairs and maintenance 150 75 75 25 II
Other services and
charges 10,293 2,324 7,969 5,330
Capital outlay 1,698 11
Total Municipal
Court 109,656 74,767 34,889 83,414 II
Computer Services:
Personnel services 47,817 44,298 3,519 42,516 11
Supplies 16,614 16,581 33 17,876
Repairs and maintenance 61,548 37,581 23,967 41,916
Other services and
charges 33,848 18,954 14,894 18,402 11
Capital outlay 116,150 54,449 61,701 48,553
Total Computer
Services 275,977 171,863 104,114 169,263 II
Total General
Government 1,331,445 1,149,344 _ 182,101 1,112,882
55 I
I
I CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
I STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL Exhibit B-2
I Page 3 of 7
Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
II
1993
IVariance
Favorable 1992
Budget Actual (Unfavorable) Actual
Expenditures (continued)
I
Public Safety:
Police Services:
Personnel services 1,592,174 1,577,583 14,591 1,524,534
Supplies 78,173 89,455 (11,282) 71,875
I
Repairs and maintenance 62,107 78,262 (16,155) 82,940
Other services and
charges 68,672 82,716 (14,044) 80,046
Capital outlay 113,820 118,018 (4,198) 104,759
II Total Police
Services 1,914,946 1,946,034 (31,088) 1,864,154
Communications:
II Personnel services 261,502 267,180 (5,678) 228,981
Supplies 5,747 6,107 (360) 2,354
Repairs and maintenance 2,900 2,971 (71) 2,666
Other services and
charges 3,615 3,128 487 3,177
Capital outlay 9,825 9,611 214 71,254
Total Communications 283,589 288,997 (5,408) 308,432
I
Animal Control:
Personnel services 57,127 57,793 (666) 54,260
Supplies 6,609 5,946 663 4,269
I
Repairs and maintenance 1,350 4,184 (2,834) 1,423
Other services and
charges 4,070 2,451 1,619 2,556
Total Animal Control 69,156 70,374 (1,218) 62,508
IFire and EMS:
Personnel services 148,735 131,470 17,265 127,411
Supplies 70,400 70,400
I
Repairs and maintenance 64,500 1,980 62,520 2,040
Other services and
charges 90,348 222,784 (132,436) 224,051
Capital outlay 1,980 1,980 284,292
II
Total Fire and EMS 375,963 356,234 19,729 637,794
Fire Marshal:
Personnel services 53,589 56,576 (2,987) 33,343
II
Supplies 7,454 5,929 1,525 5,574
Repairs and maintenance 1,075 1,120 (45) 504
Other services and
I
charges 5,965 5,271 694 4,439
Capital outlay 2,150 756 1,394 2,164
Total Fire Marshal 70,233 69,652 581 46,024
II 56
I
CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL Exhibit B-2
Page 4 of 7 I
Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
1
1993
Variance IIFavorable 1992
Budget Actual (Unfavorable) Actual
Expenditures (continued) IIPublic Safety: (continued)
Emergency Management:
Personnel services 99 (99) 3,821
Supplies 2,000 972 1,028 1,305 II
Repairs and maintenance 3,750 1,359 2,391 2,198
Other services and
charges 3,233 2,330 903 3,763
Capital outlay 4,000 1,454 2,546 1,727 II
Total Emergency
Management 12,983 6,214 6,769 12,814 II
Total Public Safety 2,726,870 2,737,505 (10,635) 2,931,726 II
Public Works:
Administration:
Personnel services 130,940 134,071 (3,131) 120,730 I
Supplies 2,800 2,416 384 2,898
Repairs and maintenance 1,011 2,573 (1,562) 1,076
Other services and
charges 1,850 1,655 195 1,234 I
Total Administration 136,601 140,715 (4,114) 125,938
Streets:
Personnel services 245,802 244,417 1,385 237,537 II
Supplies 77,585 53,914 23,671 54,328
Repairs and maintenance 57,400 57,941 (541) 57,865
Other services and
charges 151,272 166,617 (15,345) 172,164 II
Capital outlay 13,927 14,445 (518) 16,275
Total Streets 545,986 537,334 8,652 538,169
Drainage: I
Personnel services 111,139 101,814 9,325 103,831
Supplies 2,010 861 1,149 401
Repairs and maintenance 17,000 12,941 4,059 13,571 II
'
Other services and
charges 250 5,203 (4,953) 2,774
Total Drainage 130,399 120,819 9,580 120,577
Sanitation: I
Other services and
charges 740,538 823,028 (82,4901 752,763
Total Sanitation 740,538 823,028 (82,490) 752,763 11
Total Public Works 1,553,524 1,621,896 (68,372) 1,537,447
57
I
1 CITY OF FRIENDSWOOD, TEXAS
I GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL Exhibit B-2
IPage5of7
Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
1993
II
Variance
Favorable 1992
Budget Actual (Unfavorable) Actual
I
Expenditures (continued)
Community Development:
Administration:
Personnel services 84,603 87,137 (2,534) 77,788
I
Supplies 375 481 (106) 384
Other services and
charges 2,050 1,825 225 2,174
Total Administration 87,028 89,443 (2,415) 80,346
IIPlanning and Zoning:
Personnel services 61,761 61,621 140 58,336
Supplies 1,557 1,589 (32) 1,138
I
Repairs and maintenance 225 112 113 148
Other services and
charges 4,025 1,941 2,084 1,146
Total Planning and
IIZoning 67,568 65,263 2,305 60,768
Engineering:
I
Personnel services 51,094 46,384 4,710 36,145
Supplies 3,650 3,270 380 3,356
Repairs and maintenance 1,050 1,973 (923) 1,330
Other services and
II charges 6,959 2,371 4,588 10,928
Capital outlay 1,500 (1,500) 11,019
Total Engineering 62,753 55,498 7,255 62,778
I
Inspection:
Personnel services 154,498 153,967 531 108,526
Supplies 7,254 6,561 693 4,181
Repairs and maintenance 2,000 2,161 (161) 1,991
I
Other services and
charges 10,470 14,083 (3,613) 8,264
Total Inspection 174,222 176,772 (2,550) 122,962
II Total Community
Development 391,571 386,976 4,595 326,854
I
Community Services:
Health Services:
Supplies 4,000 2,184 1,816 2,940
Other services and
' charges 54,425 52,838 1,587 49,296
Total Health
Services 58,425 55,022 3,403 52,236
II 58
I
CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL Exhibit B-2
Page 6 of 7 I
Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
I
1993
Variance I
Favorable 1992
Budget Actual (Unfavorable) Actual
Expenditures (continued)
Community Services:
(continued) II
Library:
Personnel services 300,477 295,200 5,277 244,864
Supplies 65,871 67,335 (1,464) 64,030 II
Repairs and maintenance 1,050 573 477 711
Other services and
charges 10,909 10,677 232 10,660 11
Capital outlay 2,030 2,030
Total Library 380,337 373,785 6,552 320,265 11
Parks and Recreation:
Personnel services 159,053 151,737 7,316 143,927 II
Supplies 31,225 25,234 5,991 26,525
Repairs and maintenance 37,830 39,223 (1,393) 41,296
Other services and IIcharges 135,383 140,260 (4,877) 77,668
Capital outlay 49,576 47,195 2,381 30,890
Total Parks and
Recreation 413,067 403,649 9,418 320,306 11
II
Community Activities:
Personnel services 58,134 47,682 10,452 28,871
Supplies 35,011 23,151 11,860 19,701 '
Repairs and maintenance 10,619 8,924 1,695 1,805
Other services and
charges 52,113 51,845 268 45,321
Capital outlay 21,000 2,528 18,472 II
Total Community
Activities 176,877 134,130 42,747 95,698
Swimming Pool: IIPersonnel services 48,443 53,036 (4,593) 41,665
Supplies 10,255 9,013 1,242 9,024
Repairs and maintenance 5,000 1,435 3,565 16,975 II
Other services and
charges 5,625 6,998 (1,373) 6,216 II
Capital outlay 1,000 859 141
Total Swimming Pool 70,323 71,341 (1,018) 73,880 1
II
59 I
I
I CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
I STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL Exhibit B-2
I
Year Ended September 30, 1993 Page 7 of 7
with comparative actual balances for the Year Ended September 30, 1992
II
1993
I
Variance
Favorable 1992
Budget Actual (Unfavorable) Actual
Expenditures (continued)
I Community Services:
(continued)
Building Operations:
Personnel services 33,861 29,817 4,044 29,584
II Supplies 20,676 16,380 4,296 4,865
Repairs and maintenance 47,629 39,677 7,952 26,949
Other services and
charges 177,283 188,394 (11,111) 152,601 I
Capital outlay 7,936 7,494 442 10,655
Total Building
Operations 287,385 281,762 5,623 224,654
I
Total Community
Services 1,386,414 1,319,689 66,725 1,087,039
II
Total Expenditures 7,389,824 7,215,410 174,414 6,995,948
Revenues Over (Under)
Expenditures (507,910) (97,345) 410,565 (424,131)
IOther Financing Sources (Uses)
Operating transfers in 248,145 248,145 977,300
Operating transfers (out) (311,353) (304,802) 6,551 (633,319)
I Total Other
Financing Sources
(Uses) (63,208) (56,657) 6,551 343,981
1 Revenues and Other
Financing Sources
Over (Under)
Expenditures and
II
Other Financing
(Uses) (571,118) (154,002) 417,116 (80,150)
I
Fund balances - Beginning 1,366,637 1,366,637 1,434,997
Residual equity transfer 11,790
Fund Balances -
' Ending S 795.519 S 1.212.635 S 417.116 S 1,366,637
I
1 60
1
I
I
' SPECIAL REVENUE FUNDS
' These funds are used to account for the proceeds of specific revenue sources that
are legally restricted to financing specific purposes. The following describes
' the various types of Special Revenue Funds used by the City:
Police Investigation Fund
This fund receives funds that are restricted to police investigation.
' Parks and Recreation Fund
This fund receives donations that are restricted for purchase of pool
' equipment.
Fire/EMS Donation Fund
This fund receives funds that are restricted for Fire/EMS capital outlays.
I
I
I
1
CITY OF FRIENDSWOOD, TEXAS 1
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET I
September 30, 1993
with comparative totals for September 30, 1992
Police Parks and Fire/EMS I
Investigation Recreation Donations
Assets
Cash and temporary investments $ 2,607 $ 2,396 $ 3,406 I
Total Assets S 2.607 $ 2.396 S 3.406
Liabilities and Fund Balance
Liabilities
Accounts payable and
accrued liabilities $ $ $ 62 '
Fund Balances
Unreserved and designated 2,607 2,396 3,344
Total Liabilities and
Fund Balances S 2.607 $ 2.396 S 3.406
1
I
I
I
1
61 11
I
I
' Exhibit C-1
I 1993 Totals
1992
1 8,409 $ 10,481
S 8,409 S 10.481
I
' $ 62 $
8,347 10,481
S 8.409 S 10.481
I
I
I
1
I
' 62
I
CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
Year Ended September 30, 1993
with comparative totals for the Year Ended September 30, 1992
Police Parks and Fire/EMS ,
Investigation Recreation Donations
Revenues
Donations $ 814 $ $ 72,186
Interest 103 87 430
Other
Total Revenues 917 87 72,616
Expenditures
Current:
Public safety 4,195 72,958
Total Expenditures 4,195 72,958
Revenues Over (Under)
Expenditures (3,278) 87 (342)
Other Financing Source
Transfer in 1,399 II
Fund balances, beginning of year 5,885 2,309 2,287
Residual equity transfer
Fund Balances, End of Year $ 2.607 S 2,396 S 3.344
I
I
I
1
1
63
1
I
IExhibit C-2
1
1 Totals
1993 1992
1 $ 73,000 $ 53,055
620 2,076
24,858
II73,620 79,989
II
77,153 129,290
77,153 129,290
1 (3,533) (49,301)
II 1,399
II 10,481 71,572
(11,790)
1 S 8.347 $ 10.481
I
I
I
I
I
1 64
I
CITY OF FRIENDSWOOD, TEXAS I
SPECIAL REVENUE FUND(POLICE INVESTIGATION)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE 111
—
BUDGET AND ACTUAL Exhibit C-3
Year Ended September 30, 1993 1
with comparative actual balances for the Year Ended September 30, 1992
I
1993
Variance
Favorable 1992
Budget Actual (Unfavorable) Actual II
Revenues
Donations $ 815 $ 814 $ (1) $
Interest on investments 103 103 644 11
Other 24,858
Total Revenues 815 917 102 25,502 II
Expenditures
Public safety 6,700 4,195 2,505 28,742
11
Revenues Over (Under)
Expenditures (5,885) (3,278) 2,607 (3,2401
Fund balances - Beginning 5,885 5,885 9,125 I
Fund Balances - Ending S S 2.607 S 2.607 S 5.885 1
1
I
I
I
65 1
I
' CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUND(PARKS AND RECREATION)
1 STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL Exhibit C-4
1 Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
1
1993
I Variance
Favorable 1992
Budget Actual (Unfavorable) Actual
Revenues
Interest on investments $ 80 $ 87 $ 7 $ 97
Fund balances - Beginning 2,309 2,309 2,212
Fund Balances - Ending $ 2,389 $ 2,396 $ 7 $ 2,309
I
I
Note: No expenditures were incurred in fiscal 1993 or 1992.
I
i
1
1
1
1
1
1 66
11
CITY OF FRIENDSWOOD, TEXAS I
SPECIAL REVENUE FUND(FIRE/EMS DONATIONS)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL Exhibit C-5
Year Ended September 30, 1993 I
with comparative actual balances for the Year Ended September 30, 1992
II
1993
Variance IIFavorable 1992
Budget Actual (Unfavorable) Actual
Revenues
Donations $ 75,348 $ 72,186 $ (3,162) $ 53,055 II
Interest on investments 1,150 430 (720) 1,335
Total Revenues 76,498 72,616 (3(.882) 54,390
II
Expenditures
Public safety 76,498 72,958 3,540 100,548 II
Total Expenditures 76,498 72,958 3,540 100,548
Revenues (Under)
Expenditures (342) (342) (46,158)
II
Other Financing Source
Operating transfers in 1,399 1,399
Total Other Financing II
Source 1,399 1,399
11
Revenues and Other
Financing Source
Over (Under)
Expenditures 1,057 1,057 (46,158)
Fund balances - Beginning 2,287 2,287 48,445 II
Fund Balances - Ending S 2.287 S 3.344 S 1.057 S 2.287 '
II
II
67 II
I
I
i
DEBT SERVICE FUND
1
The Debt Service Fund is used to account for property taxes levied for payment
of principal and interest on all general long-term debt of the City.
I
I
1
I
I
I
I CITY OF FRIENDSWOOD, TEXAS
DEBT SERVICE FUND
' COMPARATIVE BALANCE SHEET Exhibit D-1
September 30, 1993 and 1992
I
1993 1992
I Assets
Cash and temporary investments $ 49,528 $ 78,244
Taxes receivable 83,210 83,221
Total Assets $ 132.738 $ 161,465
Liabilities and Equity
Liabilities
Accounts payable and accrued liabilities $ 4,027
Deferred revenue 83,210 83,221
Total Liabilities 87,237 83,221
Equity
Fund Balances:
Reserved for debt service 45,501 78,244
Total Equity 45,501 78,244
Total Liabilities and Equity $ 132,738 $ 161,465
I
I
I
I
I
I
I
I68
I
CITY OF FRIENDSWOOD, TEXAS I
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES, ANDI
CHANGES IN FUND BALANCE —
BUDGET AND ACTUAL Exhibit D-2
Year Ended September 30, 1993 I
with comparative actual balances for the Year Ended September 30, 1992
1
1993
Variance
Favorable 1992 II
Budget Actual (Unfavorable) Actual
Revenues
Property taxes $ 1,251,586 $ 1,280,704 $ 29,118 $ 1,327,132 II
Interest on investments 24,897 25,573 676 15,498
Total Revenues 1,276,483 1,306,277 29,794 1,342,630 11
Expenditures
Principal retirement 937,500 945,000 (7,500) 830,000
Interest retirement 470,314 471,448 (1,134) 475,300
Fiscal charges 17,716 17,604 112 9,942
Total Expenditures 1,425,530 1,434,052 (8,522) 1,315,242 II
Revenues Over (Under)
Expenditures (149,047) (127,775) 21,272 27,388 il
Other Financing
Sources (Uses) II
Operating transfers in 95,032 95,032
Proceeds from the sale of
refunding bonds 6,471,674 6,471,674
Payment to refunded bondII
escrow agent (6,471,674) (6,471,674)
Total Other Financing IISources (Uses) 95,032 95,032
Revenues and Other
Financing Sources IIOver (Under)
Expneditures and
Other Financing
(Uses) (54,015) (32,743) 21,272 27,388 II
Fund balances - Beginning 78,244 78,244 50,856 II
Fund Balances - Ending $ 24,229 $ 45,501 $ 21,272 $ 78,244 II
69
i
1
1
1
1
1
1
I
1 CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for financial resources used for the
acquisition and/or construction of major capital facilities.
1
1
1
1
1
1
11
I
I CITY OF FRIENDSWOOD, TEXAS
CAPITAL PROJECTS FUNDS
' COMBINING BALANCE SHEET Exhibit E-1
September 30, 1993
with comparative totals for September 30, 1992
II Capital Capital Totals
Projects Facility 1993 1992
Assets
1 Cash and temporary investments $ 943,183 $ 1,846,195 $ 2,789,378 $ 717,066
Other assets - inventories 14,390 14,390 2,383
1 Total Assets S 957.573 S 1.846.195 S 2.803.768 S 719.449
I
Liabilities and
Fund Balances
11 Liabilities
Accounts payable and
accrued liabilities $ 110,964 $ 3,680 $ 114,644 $ 13,376
1 Fund Balances
Reserved for encumbrances 382,108 43,800 425,908 182,553
Unreserved and designated 464,501 1,798,715 2,263,216 523,520
IITotal Fund Balances 846,609 1,842,515 2,689,124 706,073
II Total Liabilities and
Fund Balances S 957.573 S 1.846.195 S 2.803.768 S 719.449
II
II
II
II
II
II
II
70
I
CITY OF FRIENDSWOOD, TEXAS I
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE Exhibit E-2
Year Ended September 30, 1993
with comparative totals for the Year Ended September 30, 1992 II
Capital Capital Totals II
Projects Facility 1993 1992
Revenues
Donations $ 538,357 $ 73,562 $ 611,919 $ 18,66111
Interest 9,356 52,716 62,072 16,587
Other 25 25 715
Total Revenues 547,738 126,278 674,016 35,963 11
Expenditures II
Capital Outlay:
Public Works:
Streets 812,617 812,617 90,082 11
Drainage 178,652 178,652 86,346
Community Services:
Parks and recreation 800,549 800,549 150,840
Building operations 526,976 526,976 44,68611
Total Expenditures 1,791,818 526,976 2,318,794 371,954
Revenues (Under) II
Expenditures (1,244,080) (400,698) (1,644,778) (335,991)
II
Other Financing Sources
Transfers in 1,397,829 70,000 1,467,829 687,054 '
Proceeds from the sale of
certificates of obligation 2,160,000 2,160,000
Total Other
Financing Sources 1,397,829 2,230,000 3,627,829 687,054
11
Revenues and Other
Financing Sources II
Over Expenditures 153,749 1,829,302 1,983,051 351,063
1
Fund balances,
beginning of year 692,860 13,213 706,073 355,010 n
Fund Balances,
End of Year S 846.609 S 1.842.515 S 2.689.124 S 706.073 11
71 1
W
g
1
O
a
a
OM N INIII MI MI MIN MI MN MI OMB A MI MINI / MN MI MI 1111111 IMO
1
II
II
II
I
II
1 ENTERPRISE FUND
IIThe Enterprise Fund is used to account for the acquisition, operation and
maintenance of governmental facilities and services which are entirely or
1 predominately self-supporting by user charges. The operations of the water and
sewer system are accounted for in the Enterprise Fund to reflect the results of
operations similar to private enterprises.
II
1
II
II
1
1
1
I
I CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND
COMPARATIVE BALANCE SHEET Exhibit F-1
' September 30, 1993 and 1992
II
1993 1992
Assets I
Current Assets
Cash and temporary investments $ 2,528,339 $ 1,473,786
II Receivables:
Accounts 656,821 590,323
Interest 28,588
Investment in Blackhawk joint venture 140,927 129,191
I Other assets 73,380 39,965
Total Current Assets 3,428,055 2,233,265
I
Land, buildings and equipment 29,657,680 27,821,965
Less accumulated depreciation (6,955,141) (6,294,807)
Land, Buildings, and
Iand Equipment, Net 22,702,539 21,527,158
Total Assets S 26.130,594 S 23.760.423
1
Liabilities and Equity
II Current Liabilities
Accounts payable and
accrued liabilities $ 595,156 $ 289,671
I
Compensated absences 64,696 49,027
Customer deposits 147,535 121,865
Bonds payable 160,000 135,000
Certificates of obligation payable 150,000 115,000
IITotal Current Liabilities 1,117,387 710,563
Long-term Liabilities
I
Bonds payable 3,320,000 465,000
Certificates of obligation payable 3,510,000 3,895,000
I
Total Long-term Liabilities 6,830,000 4,360,000
Total Liabilities 7,947,387 5,070,563
I
Equity
Contributed capital 14,812,068 14,459,049
Retained Earnings:
Reserved 1,229,135 917,194
' Unreserved 2,142,004 3,313,617
Total Equity 18,183,207 18,689,860
I
Total Liabilities and Equity S 26.130.594 S 23.760.423
II
72
I
CITY OF FRIENDSWOOD, TEXAS I
ENTERPRISE FUND
SCHEDULE OF REVENUES,EXPENSES, AND I
CHANGES IN RETAINED EARNINGS -
BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS) Exhibit F-2
Page 1 of 2 '
Year Ended September 30, 1993
with comparative actual balances for the Year Ended September 30, 1992
1
1993
Variance
Favorable 1992 II
Budget Actual (Unfavorable) Actual
Operating Revenues
Water charges $ 2,486,670 $ 2,612,847 $ 126,177 $ 2,428,937
Sewer charges 1,075,700 1,070,081 (5,619) 1,031,407 II
Fees and penalties 69,750 85,820 16,070 78,697
Impact fees 362,050 353,018 (9,032) 427,504
Other 32,637 39,818 7,181 28,338 11
Total Operating Revenues 4,026,807 4,161,584 134,777 3,994,883
Operating Expenses
Water Operations:
Personnel services 212,974 211,831 1,143 188,834 II
Supplies 36,117 45,432 (9,315) 32,791
Repairs and maintenance 89,292 92,131 (2,839) 55,316
Other services and charges 593,398 474,716 118,682 493,187
Capital outlay 559,118 229,069 330,049 501,026 II
Total Water Operations 1,490,899 1,053,179 437,720 1,271,154
Sewer Operations:
Personnel services 170,515 164,690 5,825 143,088 II
Supplies 14,035 10,904 3,131 11,392
Repairs and maintenance 93,200 85,971 7,229 82,967
Other services and charges 759,504 801,487 (41,983) 753,093 II
Capital outlay 3,061,145 1,632,889 1,428,256 436,314
Total Sewer Operations 4,098,399 2,695,941 1,402,458 1,426,854
Operation Administration:
Personnel services 88,499 84,923 3,576 80,306 II
Supplies 2,524 2,194 330 2,043
Repairs and maintenance 775 303 472 537
Other services and charges 950 933 17 1,063 I/
Total Operation
Administration 92,748 88,353 4,395 83,949
Finance Administration:
Personnel services 131,452 130,234 1,218 107,201 II
Supplies 7,550 6,472 1,078 8,496
Repairs and maintenance 2,375 2,237 138 1,916
Other services and charges 33,643 24,189 9,454 33,706 II
Total Finance
Administration 175,020 163,132 11,888 151,319
Computer Services:
Supplies 2,000 887 1,113 1,286 II
Repairs and maintenance 5,050 3,387 1,663 3,503
Other services and charges 2,500 20 2,480 510 il
Capital outlay 11,484 6,758 4,726
Total Computer Services 21,034 11,052 9,982 5,299 II
73 I
I
I CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND
I SCHEDULE OF REVENUES, EXPENSES,AND
CHANGES IN RETAINED EARNINGS -
BUDGET AND ACTUAL
(NON-GAAP BUDGETARY BASIS) Exhibit F-2
I
Year Ended September 30, 1993 Page 2 of 2
with comparative actual balances for the Year Ended September 30, 1992
II
1993
Variance
I
Favorable 1992
Budget Actual (Unfavorable) Actual
Operating Expenses (continued)
I
Insurance:
Other services and charges 25,037 26,259 (1,222) 17,998
Total Insurance 25,037 26,259 (1,222) 17,998
Engineering:
II Personnel services 55,499 50,029 5,470 35,693
Supplies 1,700 1,910 (210) 1,900
Repairs and maintenance 1,200 1,406 (206) 1,729
II Other services and charges 36,064 24,424 11,640 5,139
Total Engineering 94,463 77,769 16,694 44,461
Total Operating Expenses 5,997,600 4,115,685 1,881,915 3,001,034
IIOperating Income (1,970,793) 45,899 2,016,692 993,849
Nonoperating Revenues
I
(Expenses)
Interest revenue 67,645 172,257 104,612 70,582
Proceeds from obligation debt 2,840,000 2,940,000 100,000
Principal retirement (308,579) (310,000) (1,421) (235,000)
II Interest expense (422,917) (390,307) 32,610 (337,952)
Total Nonoperating
Revenues (Expenses) 2,176,149 2,411,950 235,801 (502,370)
IIOperating Transfers (Out) (1,507,603) (1,507,603) (1,031,035)
Net Income (Loss)
(Budgetary Basis) S (1.302.247) 950,246 S 2.252.493 (539,556)
I
Adjustments
Impact fees (353,018) (427,504)
Depreciation expense (695,616) (648,639)
I Capital outlay 1,868,716 937,340
Proceeds from obligation debt ( ,940,000)
Principal retirement 310,000 235,000
Net Adjustments (1,809,918) 96,197
INet Income (GAAP Basis) (859,672) (443,359)
Retained earnings,
IIbeginning of year 4,230,811 4,674,170
Retained Earnings,
End of Year S 3.371.139 S 4,230.811
II
II
74
I
CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND
SCHEDULE OF BONDS PAYABLE -
BY MATURITY DATE Exhibit F-3
September 30, 1993 II
Due During Annual Requirements for All Series Series 1969 IIFiscal Year Total Total Total Principal Interest Due
Ending Principal interest Principal and Due November 1,
September 30, Due Due Interest Due November 1 May 1 Total
1994 $ 160,000 $ 147,176 $ 307,176 $ 35,000 $ 17,185 $ 52,185 '
1995 165,000 138,501 303,501 40,000 14,685 54,685
1996 120,000 131,401 251,401 40,000 12,122 52,122
1997 575,000 117,447 692,447 45,000 9,253 54,253 II
1998 615,000 93,399 708,399 50,000 5,895 55,895
1999 635,000 66,835 701,835 50,000 2,048 52,048 II
2000 220,000 48,576 268,576
2001 230,000 39,179 269,179 I
2002 240,000 29,011 269,011
2003 255,000 17,993 272,993
2004 265,000 6,128 271,128
I
Totals S 3.480.000 S 835.646 1 4.315.646 S 260.000 S 61.188 $ 321.180
aao I
Due During Series 1979 Series 1993 II
Fiscal Year Principal interest Due Principal Interest Due
Ending Due November 1, Due March 1,
September 30, November 1 May 1 Total March 1 September 1 Total
1994 $ 100,000 $ 8,525 $ 108,525 $ 25,000 $ 121,466 $ 146,466 II
1995 100,000 3,025 103,025 25,000 120,791 145,791
1996 5,000 138 5,138 75,000 119,141 194,141 '
1997 530,000 108,194 638,194
1998 565,000 87,504 652,504 '
1999 585,000 64,787 649,787
2000 220,000 48,576 268,576
2001 230,000 39,179 269,179 II
2002 240,000 29,011 269,011
2003 255,000 17,993 272,993 II
2004 265,000 6,128 271,128
Totals $ 205.000 S 11.688 S 216._688 S 3.015,000 S 762.770 $ 3.777.770 il
75 I
1
I
CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND
SCHEDULE OF CERTIFICATES OF OBLIGATION -
IIBY MATURITY DATE Exhibit F-4
September 30, 1993
I
Duo During Annual Requirements for All Series Series 1988
Fiscal Year Total Total Total Principal Interest Due
II Ending Principal Interest Principal and Due November 1,
September 30, Due Due Interest Due November 1 May 1 Total
1994 $ 150,000 $ 225,755 $ 375,755 $ 130,000 $ 62,590 $ 192,590
II 1995 210,000 211,370 421,370 145,000 51,074 196,074
1996 330,000 189,855 519,855 260,000 34,115 294,115
1997 365,000 162,291 527,291 285,000 11,613 296,613
I
1999 85,000 145,109
139,371 230,109
1999 85,000 224,371
2000 90,000 133,465 223,465
1 2001 90,000 127,390 217,390
2002 95,000 121,146 216,146
2003 100,000 115,265 215,265
1 2004 110,000 109,675 219,675
2005 490,000 93,530 583,530
2006 490,000 66,825 556,825
II2007 485,000 40,012 525,012
2008 485,000 13,338 498,338
Totals S 3.660.000 S 1,894.397 f 5.554.397 S 820.000 $ 159.392 S 979,392
II
Due During Series 1992
1 Fiscal Year Principal Interest Duo
Ending Due November 1,
September 30, 1o�ember 1 May 1 Total
1994 $ 20,000 $ 163,165 $ 183,165
II
1995 65,000 160,296 225,296
1996 70,000 155,740 225,740
I
1997 80,000 150,678 230,678
1998 85,000 145,109 230,109
1999 85,000 139,371 224,371
I
2000 90,000 133,465 223,465
2001 90,000 127,390 217,390
2002 95,000 121,146 216,146
1 2003 100,000 115,265 215,265
2004 110,000 109,675 219,675
2005 490,000 93,530 583,530
II
2006 490,000 66,825 556,825
2007 485,000 40,012 525,012
2008 485,000 13,338 498,338
IITotals S 2.840.000 $ 1.735.005 S 4.575.005
1 76
W
U
111111 M I OM W I MI I i i UM - MO 1 OM N r M OM
' TRUST AND AGENCY FUNDS
1776 Park Trust Fund
' This fund has been established by the City to account for 1776 Park assets
held by the City in a trustee capacity.
' Deferred Compensation Agency Fund
This fund is used to account for assets held for employees in accordance
with the provisions of Internal Revenue Code Section 457.
I
CITY OF FRIENDSWOOD, TEXASI
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET Exhibit G-1 I
September 30, 1993
with comparative totals for September 30, 1992 '
Non-
Expendable
Trust Agency
1776 Deferred Totals I
Park Compensation 1993 1992
Assets
Cash and temporary investments $ 28,987 $ 378,444 $ 407,431 $ 333,610 II
Land 57,200 57,200 57,200
Total Assets S 86,187 $ 378.444 S 464.631 S 390.810 ,
Liabilities and II
Fund Balance
Liabilities
Deferred compensation IIbenefits payable $ $ 378,444 $ 378,444 $ 305,671
Fund Balances
Reserved for endowments 67,200 67,200 67,200 '
Unreserved and designated 18,987 18,987 17,939
Total Fund Balances 86,187 86,187 85,139 il
Total Liabilities and
Fund Balances S 86.187 S 378.444 S 464.631 S 390.810 t
II
I
II
II
77II
CITY OF FRIENDSWOOD, TEXAS
1776 PARK TRUST FUND (NON—EXPENDABLE TRUST)
' COMPARATIVE STATEMENTS OF REVENUES AND
CHANGES IN FUND BALANCE Exhibit G-2
' Year Ended September 30, 1993
with comparative totals for the Year Ended September 30, 1992
' 1993 1992
Revenues
Interest on investments $ 1,048 $ 1,172
Fund balances, beginning of year 85,139 83,967
Fund Balances, End of Year $ 86.187 $ 85.139
i
I
I
' 78
CITY OF FRIENDSWOOD. TEXAS
DEFERRED COMPENSATION AGENCY FUND
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES Exhibit G-3
Year Ended September 30, 1993
I
Balance Balance
October 1, September 30,
1992 Additions Deletions 1993
Assets
Temporary investments S 305.671 S 74.771 S 1,998 $ 378,444 '
Liabilities
Deferred compensation
benefits payable S 305.671 S 74.771 $ 1.998 S 378,444
r
I
1
1
I
I
I
I
I
79
'6'
a
c.,
U
U
.t
N. EN me I. .. .. .. NIII NM INN NMI MN 1E11 INN IBM MIN 1=11 INN MI
1
I
I
1
1
1
1
1 GENERAL FIXED ASSETS
1 This account group is established to account for the fixed assets owned by the
City excluding those relating to Enterprise Fund operations. Expenditure
1 transactions to acquire general fixed assets occur in the Governmental Fund
Types.
1
1
1
1
1
1
1
1
1
I
I CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS
I COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS —
BY SOURCE Exhibit H-1
I
September 30, 1993 and 1992
I1993 1992
General Fixed Assets
Land $ 1,928,112 $ 1,424,893
II
Buildings 2,929,638 2,452,811
Improvements 12,662,801 12,170,845
Equipment 3,714,789 3,465,437
Construction in progress 859,166 109,110
IITotal General Fixed Assets S 22.094.506 S 19,623.096
IIInvestment in General Fixed Assets From
General obligation bonds $ 4,572,653 $ 4,572,653
I
Time warrants and certificates of
obligation 908,293 444,500
Federal, state, and local obligations 3,105,932 3,082,183
Municipality 11,879,015 10,490,900
' Donations 1,628,613 1,032,860
Total Investment in
General Fixed Assets $ 22.094.506 S 19.623.096
II
II
II
II
II
II
II
II
II 80
CITY OF FRIENDSWOOD, TEXAS '
GENERAL FIXED ASSETS
SCHEDULE OF GENERAL FIXED ASSETS —
BY FUNCTION AND ACTIVITY
September 30, 1993 '
Function and Activity Land Buildings II
General Government
Inspections $ $
City Hall 453,389 606,934
Total General Government 453,389 606 934
Public Safety
Police 153,830
Fire 18,000 267,32211
Animal control 65,968
Emergency management
Total Public Safety 18,000 487 120
Public Works
Streets and drainage 106,991 168,702
Sanitation 3,500
Total Public Works 110,491 168,702
Community Services
Library 28,838 852,026
Parks and recreation 1,317,394 134,460
Swimming pool 680 396
Total Community Services 1,346,232 1,666,882
Construction in progress
Total General Fixed Assets $ 1,928,112 $ 2,929,638
1 .
11
1
81
II
II
IIExhibit H-2
II
I
Construction
Improvements Equipment In Progress Total
Is $ 24,202 $ $ 24,202
24,704 562,918 1,647,945
II
24,704 587,120 1,672,147
16,760 856,877 1,027,467
I
2,708 1,321,853 1,607,175
27,086 95,762
39,917 39,917
II
19,468 2,245,733 2,770,321
11,753,863 204,187 12,233,743
I
254,997 30,514 289,011
12,008,860 234,701 12,522,754
II17,693 183,705 1,082,262
588,843 444,594 2,485,291
3,233 18,936 702,565
II609,769 647,235 4,270,118
II
859,166 859,166
$ 12,662,801 $ 3,714,789 $ 859,166 $ 22.094,506
II
11
II
I
I
82
I
CITY OF FRIENDSWOOD, TEXAS '
GENERAL FIXED ASSETS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY Exhibit H-3 I
September 30, 1993 I
General General
Fixed Assets Fixed Assets
Function and October 1, September 30,
Activity 1992 Additions Retirements 1993 IIGeneral Government
Inspections $ 24,202 $ $ $ 24,202
City Hall 1,612,119 66,980 31,154 1,647,945
Total General Government 1,636,321 66,980 31,154 1,672,147 '
Public Safety
Police 960,789 131,124 64,446 1,027,46711
Fire 1,525,488 90,569 8,882 1,607,175
Animal control 95,762 95,762
Emergency management 38,463 1,454 39,917 ,
Total Public Safety 2,620,502 223,147 73,328 2,770,321
Public Works
Streets and drainage 11,901,174 332,569 12,233,743
11
Sanitation 289,011 289,011
Total Public Works 12,190,185 332,569 12,522,75411
Community Services
Library 605,435 476,827 1,082,262
Parks and recreation 1,759,837 739,843 14,389 2,485,291
Swimming pool 701,706 859 702,565
Total Community Services 3,066,978 1,217,529 _ 14,389 4,270,118
Construction in progress 109,110 1,718,657 968,601 859,16611
Total General Fixed Assets $ 19.623.096 S 3.558.882 S 1.087.472 $ 22.094.50611
II
II
1
II
83 II
I
I
I
I
I
I
I
GENERAL LONG-TERM DEBT
I
This account group is established to account for the principal outstanding on
I
general obligation bonds and other long-term liabilities.
1
' CITY OF FRIENDSWOOD, TEXAS
COMPARATIVE SCHEDULES OF GENERAL LONG—TERM DEBT Exhibit I-1
' September 30, 1993 and 1992
1993 1992
' Amount Available and to be Provided for
the Payment of General Long-Term Debt
Amount available in Debt Service Fund $ 45,501 $ 78,244
' Amount to be provided for retirement of
general long-term debt 9,016,148 6,587,533
' Total Amount Available and
to be Provided S 9.061.649 S 6.665.777
General Long-Term Debt Pavable
Accrued interest on premium compound
interest bonds $ 320,872 $
Certificates of obligation 2,205,000 90,000
General obligation bonds 6,535,777 6,575,777
' Total General Long-Term Debt Payable S 9,061,649 S 6.665,777
11
1
1
' 84
CITY OF FRIENDSWOOD, TEXAS ,
SCHEDULE OF CHANGES IN GENERAL LONG—TERM DEBT
September 30, 1993 and 1992 1
1
Amounts
Date of Interest Original II
Issue Description Rate Payable Issue
08/15/86 Refunding Bonds - Series 1986 4.25% - 7.9 % $ 10,650,777 ,
12/01/88 Certificates of Obligation - 7.0% - 8.375% 4,400,000
Series 1988
10/19/92 Certificates of Obligation -
Series 1992 5.5 % - 6.75 % 2, 160,000 II
04/14/93 Refunding Bonds - Series 1993 2.25% - 4.625% 3,480,000 ,
Accrued interest on premium
compound interest bonds
11
Totals
I
1
I
I
a
1
1
85 11
1
1
Exhibit I-2
1
Amounts Amounts
Outstanding Issued Retired Refunded Outstanding Interest
' October 1, Current Current Current September 30,
1993 Current
1992 Year Year Year Year
$ 6,575,777 $ $ 835,000 $ 2,620,000 $ 3,120,777 $ 315,368
' 90,000 45,000 45,000 5,653
2,160,000 2,160,000 104,038
3,480,000 65,000 3,415,000 46,500
' 6,665,777 5,640,000 945,000 2,620,000 8,740,777 471,559
320,872 320,872
$ 6,665,777 $ 5,960,872 $ 945,000 $ 2,620,000 $ 9,061,649 $ 471,559
1
1
' 86
I
CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF GENERAL LONG-TERM DEBT
SERVICE REQUIREMENTS TO MATURITY
September 30, 1993
Refunding Bonds II
Due During Annual Requirements for All Series Series 1986
Fiscal Year Total Total Total Principal Interest Due
Ending Principal Interest Principal and Due March 1,
September 30, Due Due Interest Due March 1 September 1 Total
II
1994 $ 960,000 $ 423,624 $ 1,383,624 $ 890,000 S 159,175 $ 1,049,175
1995 910,000 358,551 1,268,551 855,000 97,673 952,673 11
1996 1,045,000 290,778 1,335,778 935,000 33,660 968,660
1997 635,000 242,692 877,692
1998 725,000 215,360 940,360
1999 740,000 184,182 924,182
II
2000 640,833 719,625 1,360,458 310,833 559,167 4, 870,000
2001 390,898 258,741 649,639 55,898 114,102 • 170,000 II
2002 457,209 188,155 645,364 27,209 62,791 • 90,000
2003 474,993 168,264 643,257 24,993 65,007 • 90,000
2004 501,844 143,879 645,723 21,844 63,156 • 85,000 II
2005 285,000 61,320 346,320
2006 305,000 45,238 350,238
2007 325,000 27,913 352,913
2008 345,000 9,488 354,488
II
Totals $ 8.740.777 S 3.337.810 S 12.078.587 S 3.120.777 $ 1.154.731 S 4,275.508
Refunding Bonds I
Due During Series 1993
Fiscal Year Principal Interest Due
Ending Due March 1,
September 30, March 1 September 1 TotalII
1994 $ 25,000 $ 137,720 S 162,720
1995 25,000 137,045 162,045
1996 80,000 135,310 215,310II
1997 605,000 122,909 727,909
1998 645,000 99,290 744,290
1999 660,000 73,512 733,512II
2000 250,000 55,188 305,188
2001 265,000 44,431 309,431
2002 275,000 32,750 307,750
II
2003 285,000 20,288 305,288
2004 300,000 6,938 306,930
2005
II
2006
2007
2008
II
Totals $ 3.415.000 S 865.381 S 4.280.381
• Accrued interest on premium compound interest bonds. II
87 1
1
1
IIExhibit I-3
ilCertificates of Obligation Certificates of Obligation
Due During Series 1988 Series 1992
Fiscal Year Principal Interest Due Principal Interest Due
II Ending Due March 1,
Due March 1,
September 30, March 1 September 1 Total March 1 8eptember 1 Total
1994 $ 45,000 $ 1,884 $ 46,884 $ $ 124,845 $ 124,845
1995 30,000 123,833 153,833
II 1996 30,000 121,808 151,808
1997 30,000 119,783 149,783
II 1998 80,000 116,070 196,070
1999 80,000 110,670 190,670
2000 80,000 105,270 185,270
II 2001 70,000 100,208 170,208
2002 155,000 92,614 247,614
2003 165,000 82,969 247,969
I
2004 180,000 73,785 253,785
2005 285,000 61,320 346,320
2006 305,000 45,238 350,238
II 2007 325,000 27,913 352,913
2008 345,000 9,488 354,488
Totals S 45.000 S 1.884 S 46.884 S 2.160.000 S 1.315.814 S 3.475.814
II
I/
II
II
II
II
II
I
88
I
I
1
I
I
I
I
I
I
UNAUDITED STATISTICAL SECTION
1
I
I
I
I
I
I
I .
CITY OF FRIENDSWOOD, TEXAS I
GENERAL GOVERNMENT REVENUES BY SOURCE
Last Ten Fiscal Years ,
Function 1984 1985 1986 1987
General property taxes $ 2,727,942 $ 3,319,149 $ 3,826, 171 $ 4,421,3431
Sales taxes 352,801 425,877 484,735 518,939
Franchise taxes 204,275 273,184 297,585 332,432 11
Sanitation 431,941 532,701 470,177 525,592
Fines and forteitures 128,694 138,302 120,195 184,359 11
Permits and fees 167,484 138,074 148,740 124,913
Intergovernmental revenue 335,077 535,955 124,114 94,015 11
Interest on investments 112,516 127,909 88,521 91,011
Other revenue 42,473 41,551 28,850 45,342 11
S 4.503.203 $ 5.532.702 $ 5,589,088 $ 6,337,946
I
Includes General, Special Revenue and Debt Service Funds. I
Source - Accounting records of the City.
I
11
1
I
I
I
I
89 1
1
1
Table 1
I
II1988 1989 1990 1991 1992 1993
Is 4,442,540 $ 4,562,856 $ 4, 557, 133 $ 4,749,173 $ 4,958,863 $ 5,249,517
510,574 607,349 690,327 742,725 808,405 979,890
II
375,755 400,986 419,062 456,566 541,841 530,059
545,130 542,911 595,244 733,245 780,604 838,542
I142,516 190,106 166,982 166,355 171,154 174,487
125,083 143,105 240,294 286,421 337,539 319,384
II48,985 53,464 50,984 28,641 34,006 32,273
196,647 185,037 222,328 232,773 153,558 154,195
1 106,057 118,539 115,107 139,525 208,466 219,615
S 6,493,287 S 6,804,353 S 7,057,461 S 7.535,424 $ 7.994,436 S 8.497,_962
I
1
1
II
1
I
1
I
1
1 90
CITY OF FRIENDSWOOD, TEXAS t
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION
Last Ten Fiscal Years '
Function 1984 1985 1986 1987 11
General government $ 812,289 $ 954,086 $ 1,221,176 $ 1,473,875
Public safety 1,311,923 1,388,760 1,737,503 1,870,538 II
Public works 1,394,487 1,036,157 1,208,630 1,237,644 II
Community development
Community services 438,375 441,331 532,374 727,525 II
Debt service 983,609 997,114 1,064,286 1,314,714
S 4.940.683 S 4.817.448 S 5.763.969 S 6.624.296 II
Includes General, Special Revenue and Debt Service Funds.
Source - Accounting records of the City.
I
I
1
I
I
11
1
91 1
II
I
Table 2
I
1 1988 1989 1990 1991 1992 1993
Is 1,143,024 $ 1,167,194 $ 1,258,050 $ 1,085,683 $ 1,112,882 $ 1,149,344
1,934,317 2,038,066 2,173,685 2,478,564 3,061,016 2,814,658
II1,128,195 1,108,423 1,196,889 1,521,841 1,537,447 1,621,896
249,684 257,750 281,723 289,501 326,854 386,976
il814,380 768,533 949,048 1,048,606 1,087,039 1,319,689
1,344,693 1,305,728 1,304,597 1,301,928 1,315,242 1,434,052
IS 6.614.293 S 6.645.694 S 7.163.992 S 7,726.123 S 8.440.480 S 8.726.615
I
II
I
II
1
11
11
I
II
II 92
I
CITY OF FRIENDSWOOD, TEXAS I
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years il
11
Fiscal Year Percent II
Ended Tax Tax Total Current Tax of Levy
September 30, Year Rate Tax Levy Collections Collected
1984 1983 $ 0.7200 $ 2,491,879 $ 2,400,000 96.31 % II
1985 1984 0.7200 3,348,234 3,224,304 96.30
1986 1985 0.7095 3,870,699 3,680,672 95.09 II
1987 1986 0.6950 4,369,541 4,245,550 97.16
1988 1987 0.6950 4,351,363 4,248,363 97.63 II
1989 1988 0.6950 4,553,066 4,433,139 97.37
1990 1989 0.6950 4,531,537 4,427,153 97.70 II
1991 1990 0.6950 4,636,066 4,561,109 98.38
1992 1991 0.6950 4,869,697 4,782,350 98.21 II
1993 1992 0.6630 5,179,275 5,081,084 98.10
1
1
Source - Tax assessor/collector's records.
II
1
II
I
1
I
93 11
11
11
Table 3
II
IITotal Outstanding
Collections Delinquent
Delinquent as Percent Outstanding Taxes as
II Tax Total Tax of Current Delinquent Percent of
Collections Collections Levy Taxes Levy
$ 50,915 $ 2,450,915 98.36 • $ 169,380 6.80 8
II
60,431 3,284,735 98.10 232,879 6.96
' 94,625 3,775,297 97.54 328,281 8.48
133,831 4,379,381 100.23 318,441 7.29
I
119,687 4,368,050 100.38 301,754 6.93
79,695 4,512,834 99.12 341,986 7.51
II74,484 4,501,637 99.34 371,886 8.21
107,112 4,668,221 100.69 339,731 7.33
1 120,660 4,903,010 100.68 306,418 6.29
91,531 5,172,615 99.87 313,078 6.04
11
II
II
11
11
I
II
II
II
94
I
I
CITY OF FRIENDSWOOD, TEXAS
ASSESSED AND ESTIMATED
IACTUAL VALUE OF TAXABLE PROPERTY Table 4
Last Ten Fiscal Years
1
Ratio of
1 Fiscal Year Estimated Assessed Value
Ended Tax Assessed Actual to Estimated
September 30, Year Value Value Actual Value
II1984 1983 $ 346,094,349 $ 442,947,714 78.13 %
1985 1984 465,032,500 598,869,520 77.65
1 1986 1985 534,102,932 645,891,660 82.69
1987 1986 628,710,940 760,787,760 82.64
1 1988 1987 626,095,422 763,454,517 82.01
1989 1988 634,729,000 729,914,210 86.96
II1990 1989 653,106,888 759,841,760 85.95
1991 1990 667,059,850 761,569,171 87.59
II
1992 1991 700,373,270 806,261,160 86.87
1993 1992 781,187,783 917,420,470 85.15
I
ISource - Tax assessor/collector's records.
1
1
1
II
1
1
1 95
I
CITY OF FRIENDSWOOD, TEXAS I
PROPERTY TAX RATES AND TAX LEVIES —
DIRECT AND OVERLAPPING I
Last Ten Fiscal Years
II
Friendswood Clear Creek
Independent Independent Clear Creek '
Tax City of School School Drainage
Fiscal Year Year Friendswood District District District
Tax Levies
1984 1983 $ 2,491,879 $ 5,233,942 $ 27,542,883 $ 506,281 II
1985 1984 3,348,234 5,123,436 31,308,670 609,854 '
1986 1985 3,870,699 5,802,869 41,309,808 742,703
1987 1986 4,369,541 6,205,039 44,892,680 740,222 11
1988 1987 4,351,363 6,533,297 45,544,888 763,695
1989 1988 4,553,066 6,849,562 46,984,529 771,330 11
1990 1989 4,531,537 7,611,417 54,340,449 781,367 41
1991 1990 4,636,066 7,818,079 69,557,334 806,204 il
1992 1991 4,866,767 8,876,657 77,572,430 856,973 II
1993 1992 5,179,275 10,772,828 91,172,650 899,822 I
Tax Rates (*)
1984 1983 $ 0.7200 $ 1.79 $ 0.820 $ 0.1511
1985 1984 0.7200 1.46 0.820 0.15 il
1986 1985 0.7095 1.46 0.920 0.15 II
1987 1986 0.6950 1.41 0.920 0.15 11
1988 1987 0.6950 1.41 0.950 0.15 II
1989 1988 0.6950 1.41 0.950 0.15 II
1990 1989 0.6950 1.55 1.075 0.15 II
1991 1990 0.6950 1.55 1.289 0.15 II
1992 1991 0.6950 1.65 1.299 0.1511
1993 1992 0.6630 1.72 1.426 0.15 il
Source - Tax Department records of the various taxing authorities.
II
(*) Per $100 valuation.
96II
II
11
II Table 5
II
I Harris
Port of Harris County
Galveston Houston Harris County Hospital
County County Authority Flood Control District
II
$ 270,971,084 $ 16,640,815 $ 12,606 319 $ 50,017,423 $ 123,912,426
II312,288,939 28,607,391 9,005,427 56,430,869 144,832,854
321,822,000 29,255,237 10,899,213 63,456,864 155,479,182
II314,026,255 25,228,511 8,786,390 70,125,656 148,971,673
317,153,627 31,021,686 7,748,212 40,312,374 157,500,730
II
316,515,115 28,734,107 11,721,027 40,396,410 156,997,245
342,106,783 33,270,892 13,285,192 53,821,732 163,778,567
339,934,538 33,629,041 14,325,485 66,823,478 179,453,767
11
341,733,008 38,392,445 17,091,568 58,953,528 220,564,979
II
371,558,722 39,834,245 16,726,662 63,103,788 231,593,228
II $ 0.37700 $ 0.3950 $ 0.01300 $ 0.07900 $ 0.20200
I 0.27700 0.3950 0.00900 0.05500 0.13400
0.27878 0.3850 0.00800 0.06400 0.13500
II 0.26786 0.3850 0.00800 0.06400 0.13500
0.29316 0.3850 0.00715 0.03720 0.13700
I
0.29455 0.3540 0.01091 0.03760 0.14600
0.32600 0.3965 0.01267 0.05130 0.16600
II 0.31483 0.3965 0.01327 0.06190 0.16621
0.32188 0.4251 0.01531 0.05280 0.19621
0.32909 0.4300 0.01496 0.05590 0.19621
I
II
97
I
CITY OF FRIENDSWOOD, TEXAS I
TAX RATE DISTRIBUTION Table 6
Last Ten Fiscal Years I
Fiscal Year Debt Total II
Ended Tax General Service Tax
September 30, Year Fund Fund Rate
il
1984 1983 $ 0.50200 $ 0.21800 $ 0.72000
1985 1984 0.50700 0.21300 0.72000 II
1986 1985 0.51920 0.19030 0.70950
1987 1986 0.48100 0.21400 0.69500 II
1988 1987 0.52000 0.17500 0.69500
1989 1988 0.50746 0.18754 0.69500 II
1990 1989 0.53330 0.16170 0.69500
1991 1990 0.50876 0.18624 0.69500 II
1992 1991 0.50900 0.18600 0.69500
1993 1992 0.50160 0.16140 0.66300 II
II
Source - City's tax ordinances. I
Tax rates are per $100 valuation.
1
11
I
II
I
98 1
I
I CITY OF FRIENDSWOOD, TEXAS
PRINCIPAL TAXPAYERS Table 7
ISeptember 30, 1993
II Percent
of Total
I Assessed Assessed
Taxpayer Type of Property Valuation Valuation
1 .Exxon Corporation Oil and Gas $ 25,890,330 3.31 •
11 2 . Southwestern Bell Telephone Utility Company 12,018,540 1.54
3 .Texas New Mexico Power Utility Company 9,158,590 1.17
II4 . Seahawk Apartments Apartments 6,652,320 0.85
5 .Friendswood Retirement Living Retirement Home 6,590,445 0.84
I6 .Centex Real Estate Investor 3,233,720 0.41
.Bay Meadow Apartments Apartments 3,166,010 0.41
Il
8 .Salem Square Apartments Apartments 3,109,680 0.40
I 9 .Baywood Apartments Limited Apartments 2,816,900 0.36
10 .Jerry J. Moore Investor 2,751,560 0.35
II
S 75.388,095 9.64 %
IISource - Tax assessor/collectors records.
I
I
I
I
I
I
II99
I
CITY OF FRIENDSWOOD, TEXAS I
REVENUE BOND COVERAGE
Last Ten Fiscal Years I
Operating Net Operating I
Number Number Expenses Revenue
Fiscal of Water of Sewer Operating Before Available for IIYear Customers Customers Revenue Depreciation Debt Service
1984 4,998 4,686 $ 2,141,284 $ 1,072,741 $ 1,068,543
1985 5,338 5,061 2,104,796 1,193,709 911,087 II
1986 6,497 6,238 4,205,395 1,311,526 2,893,869
1987 6,514 6,324 3,066,581 1,487,668 1,578,913 II
1988 6,626 6,432 3,071,181 1,526,297 1,544,884
1989 6,731 6,539 3,034,892 1,443,986 1,590,906 I
1990 6,968 6,719 3,472,772 1,597,064 1,875,708
1991 7,336 6,983 3,378,322 1,857,809 1,520,513 I
1992 7,521 7,171 3,567,379 2,063,694 1,503,685
1993 7,781 7,475 3,808,566 2,246,969 1,561,597 II
I
I
Source - Accounting records of the City.
I
I
I
I
I
I
100 II
1
1
Table 8
1
1
Revenue Bond
IIDebt Service Requirements
Principal Interest Total Coverage
$ 70,000 $ 96,515 $ 166,515 6.42
II120,000 92,475 212,475 4.29
120,000 83,129 203,129 14.25
I125,000 77,566 202,566 7.79
125,000 69,720 194,720 7.93
1 125,000 61,900 186,900 8.51
130,000 56,275 186,275 10.07
II130,000 46,906 176,906 8.60
135,000 38,916 173,916 8.65 1
135,000 31,022 166,022 9.41
II
1
1
1
I
1
I
11 101
I
CITY OF FRIENDSWOOD, TEXAS I
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA I
Last Ten Fiscal Years
II
Fiscal Year Less Debt I
Ended Assessed Gross Service
September 30, Population Value Bonded Debt Funds
1984 17,365 $ 442,947,714 $ 8,423,163 $ 197,749 II
1985 18,500 598,869,520 8,046,000 200,813
1986 22,500 645,891,660 10,650,778 459,306 II
1987 23,000 760,787,760 10,065,778 518,998
1988 22,500 763,454,517 9,405,778 325,894 II
1989 23,500 729,914,210 8,750,778 280,793
1990 22,710 759,841,760 8,080,778 57,308 II
1991 22,814 761,569,171 7,365,778 50,854
1992 25,680 806,261,160 6,575,778 78,244 II
1993 26,333 781,187,783 9,061,649 45,501
I
Source - Tax assessor/collector and accounting records of the City.
II
I
II
II
1
11
102 I
1
' Table 9
Ratio of Net
I Bonded Debt Net Bonded
Net to Assessed Debt
Bonded Debt Value Per Capita
' $ 8,225,414 1.86% $ 474
7,845,187 1.31% 424
' 10, 191,472 1.58% 453
9,546,780 1.25% 415
' 9,079,884 1.19% 404
8,469,985 1.16% 360
8,023,470 1.06% 353
7,314,924 0.96% 321
6,497,534 0.81% 253
9,016,148 1.15% 342
I
11
1
I
103
I
CITY OF FRIENDSWOOD, TEXAS I
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES Table 10 I
Last Ten Fiscal Years II
Ratio of IIInterest Total Debt Total Debt Service
Fiscal and Fiscal Service General Requirements
Year Principal Charges Requirements Expenditures to Expenditures
1984 $ 356,000 $ 627,609 $ 983,609 $ 4,940,683 19.91% II
1985 377,608 619,506 997,114 4,817,448 20.70% 11
1986 484,427 579,859 1,064,286 5,763,969 18.46% ,
1987 620,386 694,328 1,314,714 6,624,296 19.85%
1988 690,323 654,370 1,344,693 6,614,293 20.33% 11
1989 687,029 618,699 1,305,728 6,645,694 19.65% II
1990 721,245 583,352 1,304,597 7,163,992 18.21% ii
1991 763,192 538,736 1,301,928 7,726,061 16.85% II
'
1992 830,000 485,242 1,315,242 8,440,480 15.58%
1993 945,000 489,052 1,434,052 8,726,615 16.43% II
I
II
II
II
II
104 1
I
ICITY OF FRIENDSWOOD, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT Table 11
ISeptember 30, 1993
IIPercentage
Applicable City of
Net Debt Outstanding to City of Friendswood's I
Name of Governmental Unit Outstanding as of Friendswood Share of Debt
Friendswood Independent
I School District $ 14,272,709 08/31/92 100.00 % $ 14,272,709
Clear Creek Independent
School District 84,796,796 03/01/93 3.94 3,340,994
IIGalveston County 47,416,391 12/31/92 5.68 2,693,251
Harris County 560,389,402 03/01/92 0.15 840,584
IHarris County Toll Road
Authority 375,300,014 02/29/92 0.15 562,950
I Harris County Flood
Control District 289,768,731 02/29/92 0.15 434,653
Harris County Hospital
IDistrict 199,011,140 03/31/92 0.15 298,517
Port of Houston Authority 97,338,585 12/31/92 0.15 146,008
I Total Net Overlapping
Debt 22,589,666
I City of Friendswood 9,016,148
Total Net Direct and
Overlapping Debt S 31.605,814
I
I
I
I
I
I
11 105
I
CITY OF FRIENDSWOOD, TEXAS I
DEMOGRAPHIC STATISTICS Table 12
Last Ten Fiscal Years II
II
Fiscal Per Capita Median Unemployment
Year Population Income Age Rate (A) II
1984 17,365 $ 21,573 27.6 5.9 %
1985 18,500 24,570 27.9 8.6 II
1986 22,500 27,735 27.9 12.6
1987 23,000 29,273 29.7 10.3 II
1988 22,500 29,743 29.7 6.8
1989 23,500 20,409 32.9 6.4 II
1990 22,710 N.A. N.A. 5.0 ,
1991 22,814 N.A. N.A. 7.4
1992 25,680 N.A. N.A. 8.9 ,
1993 26,333 N.A. N.A. 7.6
II
N.A. - Not Available II
(A) Source - Texas Employment Commission
II
I
II
II
1
106 I
I
I CITY OF FRIENDSWOOD, TEXAS
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Table 13
ILast Ten Fiscal Years
IIFiscal Property Bank
Year Value Construction Deposits*
II1984 $ 486,902,520 $ 31,379,139 $ 67,111,934
1985 598,869,520 28,891,533 72,641,562
I1986 645,891,660 26,920,850 78,645,866
1987 760,787,760 17,337,714 90,775,074
II1988 763,454,517 19,712,294 133,829,940
1989 729,914,210. 14,998,749 148,356,238
II1990 759,841,760 37,068,554 122,671,080
1991 761,569,171 46,975,722 123,012,118
II1992 806,261,160 63,126,050 115,150,734
II1993 917,420,470 61,604,061 25,288,518
I
* Beginning in 1993, only two branch banks are included. Prior to 1993, savings
and loans were also included.
II
II
II
II
II
1
II
107
1
CITY OF FRIENDSWOOD, TEXAS I
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM
ANALYSIS OF FUNDING PROGRESS
Last Ten Fiscal Years
1
Plan Net Assets Pension
Fiscal Calendar Available Benefit Percentage II
Year Year for Benefits Obligation Funded
1984 1983 $ 445,372 $ 575,927 77.3 % ,,
1985 1984 565,766 703,374 80.4 11
1986 1985 751,832 1,044,018 72.0 1
1987 1986 979,872 1,321,465 74.2
1988 1987 1,265,501 1,632,280 77.5 1
1989 1988 1,582,085 1,878,557 84.2
1990 1989 1,866,216 2,204,025 84.7 II
1991 1990 2,223,461 2,978,946 74.6
1992 1991 3,323,037 3,606,837 92.1 II
1993 1992 3,954,115 4,245,973 93.1
1
N.A. - Not Available ,
1
II
II
II
108 1
1
1
ITable 14
II
I
Unfunded
Pension
Benefit as a
Unfunded Annual Percentage City Average
Pension Covered of Covered Contribution City
II Obligation Payroll Payroll to TMRS Rate
$ 130,555 $ N.A. N.A. $ $ N.A. N.A. $
II137,608 N.A. N.A. N.A. N.A.
292,186 N.A. N.A. N.A. N.A.
II341,593 2,132,015 16.0 73,092 3.4
366,779 2,516,687 14.6 85,739 3.4
II296,472 2,615,976 11.3 86,290 3.3
337,809 2,617,976 12.9 97,716 3.7
II755,485 2,955,563 25.6 171,244 5.8
II
283,800 3,051,394 9.3 210,370 6.9
291,858 3,339,878 8.7 208,440 6.2
11
11
II
II
II
II
1
II
109
I
CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF IMPACT FEE PROJECT CHANGES
Year Ended September 30. 1993 1
with comparative totals for the Year Ended September 30. 1992
South South 1
Friendswood Friendswood
Surface Water Service Area Service Areal'
Facilities Water Wastewater
Improvements Improvements Improvements
Increases
Impact fees $ 231,858 $ 20,994 $ 59,949 II
Interest 8,222 1,431 2,059
240,080 22,425 62,008 1
Decreases II
Improvements:
East Viejo distribution line
FM 528 distribution and II
collection line
System wide
Land and easements
Design engineering II
Surveying
Preliminary engineering
Environmental assessment
Debt Service 339,905 146,413 1
339,905 146,413
Net Increase (Decrease) (99,825) 22,425 (84,40511
Other Increases 146,976 II
Balance, beginning of year 99,825 36,750 46,097
1
Balance, End of Year S _ S 59,175 S 108,668 1
1
Source - City subsidiary records tracking project information regarding impact fee
received by the Enterprise Fund. Impact fees are recorded as additions t
contributed capital in the Enterprise Fund.
1
110
1
1
Table 15
1
Other
' Water and
Wastewater Totals
Improvements 1993 1992
' 40,217 $ 353,018 $ 427,505
1,469 13,181 11,140
41,686 366,199 438,645
57,560 57,560
' 62,353
233
' 30,955
53,937
30,184
5,961
' 486,318 1,625
300,364
57,560 543,878 485,612
(15,874) (177,679) (46,967)
' 146,976
i
19,049 201,721 248,688
' S 3.175 S 171.018 S 201.721
1
e
1 111
1
CITY OF FRIENDSWOOD, TEXAS
MISCELLANEOUS STATISTICAL DATA Table 16
Page 1 of 2 ,
September 30, 1993
Date of incorporation October 15, 1960
Date of present charter Adopted Home Rule Charter!'
October 16, 1971
Form of government Council - Manager "
Area 21.71 square miles '
Miles of Streets
Streets - Paved 111.10 miles "
Streets - Unpaved 2.40 miles
Fire Protection
Number of stations 311
Number of employees (Full-time equivalent) 6.25
Number of volunteers 91 ,
Fire Prevention
Number of employees (Full-time equivalent) 1.8311
Number of volunteers
Police Protection
Number of stations 1
11
Number of sworn officers (Full-time equivalent) 30
Number of patrol units 1011
Recreation
Number of parks 611
Size of parks 56.60 acres
Number of golf courses
Number of swimming pools 1
Number of tennis courts 4 �
Miles of storm sewers 84.43 miles
I
I
112
I
ICITY OF FRIENDSWOOD, TEXAS
MISCELLANEOUS STATISTICAL DATA Table 16
ISeptember 30, 1993 Page 2 of 2
II Education
Friendswood Independent School District:
I
Number of teachers 251
Number of students 3,935
Clear Creek Independent School District:
II Number of teachers
Number of students
I
City Employees
Department heads 7
Employees:
Full-time 104
I Part-time (Full-time equivalent) 24.25
Total 135.25
I
Election
Number of Votes Cast:
Last City Election - Regular Election 3,593
II Water
Source Ground Water Surface Water
I
Average daily consumption 1,195,252 gallons 2,001,378 gallons
Maximum daily consumption 4,694,000 gallons 3,923,000 gallons
Water mains 90 miles
Number of connections 7521
ISewer Elackhawk Tower Estates
Average daily flow 1,786,463 gallons 295,608 gallons
II Maximum daily flow 6,098,000 gallons 865,100 gallons
Sanitary sewer mains 93 miles
Number of connections 7,475
II
II
II
1
I113