HomeMy WebLinkAbout1990 09 30 Annual Comprehensive Financial Report - City of Friendswood 1
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF FRIENDSWOOD, TEXAS
For the fiscal year ended
September 30, 1990
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Prepared by
Finance Department
Roger C. Roecker
Director of Finance
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CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal 10
Certificate of Achievement 19
Organization Chart 20
Principal Officials 21
FINANCIAL SECTION
Independent Auditors' Report 24
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and
Account Groups 26
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund
Types 30
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual -
I General, Special Revenue and Debt Service
Fund Types 32
11 Combined Statement of Revenues, Expenses and
Changes in Retained Earnings/Fund Balance -
Proprietary Fund Type and Non-Expendable Trust Fund 36
Combined Statement of Cash Flows - Proprietary
Fund Type and Non-Expendable Trust Fund 40
Notes to Financial Statements 44
Combining, Individual Fund and Account Group
Statements and Schedules
General Fund
Comparative Balance Sheets A-1 73
Statement of Revenues and Expenditures -
IIBudget and Actual A-2 74
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CONTENTS - 2 II
Exhibit Page
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FINANCIAL SECTION (continued)
General Fund (continued) II
Statement of Expenditures - Budget and
Actual - By Function A-3 76II
Statement of Expenditures - Budget and
Actual - By Object A-4 78
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Special Revenue Funds
Combining Balance Sheet B-1 86II
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances B-2 87
Parks and Recreation Fund
Comparative Balance Sheets B-3 88
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Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual B-4 89II
Mowing Fund
Comparative Balance Sheets B-5 90 II
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual B-6 91II
Fine Arts Council Fund
Comparative Balance Sheets B-7 92 II
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual B-8 93 11
Fire/EMS Fund
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Comparative Balance Sheets B-9 94
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual B-10 95 II
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CONTENTS - 3
1 Exhibit Page
FINANCIAL SECTION (continued)
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Debt Service Fund
Comparative Balance Sheets C-1 98
IIStatement of Revenues, Expenditures
and Changes in Fund Balance -
IIBudget and Actual C-2 99
Capital Projects Fund
1 Comparative Balance Sheets D-1 102
Statement of Revenues, Expenditures
1 and Changes in Fund Balance -
Budget and Actual D-2 103
IIEnterprise Fund
Comparative Balance Sheets E-1 106
11 Statement of Revenues, Expenses and
Changes in Retained Earnings -
Budget and Actual E-2 108
1 Statement of Operating Expenses -
Budget and Actual E-3 109
IISchedule of Revenue Bonds Payable E-4 111
Revenue Bonds Payable - By Maturity Date E-5 112
IICertificates of Obligation - By Maturity Date E-6 114
II Trust Fund
Comparative Balance Sheets F-1 116
IIComparative Statements of Revenues, Expenses
and Changes in Fund Balances F-2 117
IIGeneral Fixed Assets Account Group
Comparative Schedules of General Fixed Assets -
II By Source G-1 120
Schedule of General Fixed Assets - By Function
and Activity G-2 121
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Schedule of Changes in General Fixed Assets -
By Function and Activity G-3 122
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CONTENTS - 4 II
Exhibit Page
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FINANCIAL SECTION (continued)
General Long-Term Debt Account Group 1
Statement of Changes in General Long-Term Debt H-1 124
Schedule of General Long-Term Debt H-2 127 II
General Long-Term Debt - By Maturity Date H-3 128
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Compound Bonds - Accrued Interest Schedule H-4 132
Schedules I
Combined Schedule of Investments - All Funds I-1 134
Schedule of Delinquent Taxes Receivable I-2 135 II
STATISTICAL SECTION
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General Revenue - By Source I 138
General Governmental Expenditures - By Function II 140 II
Tax Revenues - By Source III 143
Property Tax Levies and Collections IV 144
Assessed and Estimated Actual Value of
Taxable Property V 146II
Property Tax Rates and Tax Levies - Direct and VI 148
Overlapping GovernmentsI
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation
Bonded Debt Per Capita VII 150 II
Computation of Net Direct and Estimated
Overlapping Debt VIII 152II
Ratio of Annual Debt Service Expenditures for
General Long-Term Debt to Total GeneralII
Expenditures IX 153
Tax Rate Distribution X 155
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IICONTENTS - 5
1 Exhibit Page
STATISTICAL SECTION (continued)
1 Revenue Bond Coverage XI 156
Principal Taxpayers XII 158
IIProperty Value, Construction and Bank Deposits XIII 159
IIDemographic Statistics XIV 161
Schedule of Insurance In Force XV 162
1 Miscellaneous Statistical Data XVI 166
Principal Officials XVII 168
ISINGLE AUDIT ACT SECTION
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Independent Auditors' Report on Supplemental Information
Schedule of Federal Financial Assistance 173
Schedule of Federal Financial Assistance 174
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Independent Auditors' Report on Internal Accounting Controls 176
II Independent Auditors' Report on Compliance with
Laws and Regulations 178
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Independent Auditors' Report on Internal Accounting Controls
Related to Major and Nonmajor Federal Financial Assistance
Programs 179
II Independent Auditors' Report on Compliance with Laws and
Regulations Related to Major and Nonmajor Federal
Financial Assistance Programs 182
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INTRODUCTORY SECTION
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41.1
-�:4v."- iaOa~ &Lyof 9incLwood
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. l` ��,; `':` 109 WILLOWICK (713)482-3323
It;yr FRIENDSWOOD, TEXAS 77546 - 3898
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December 14, 1990 II
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Honorable Mayor and Members of
the City Council
City of Friendswood, TexasII
The comprehensive annual financial report of the City of Friendswood for the
fiscal year ended September 30, 1990, is hereby submitted. Responsibility for
both the accuracy of the data, and the completeness and fairness of the
presentation, including all disclosures, rests with the City. To the best of
our knowledge and belief, the enclosed data are accurate in all material respects II
and are reported in a manner designed to present fairly the financial position
and results of operations of the various funds and account groups of the City.
All disclosures necessary to enable the reader to gain an understanding of theII
City's financial activities have been included.
The comprehensive annual financial report is presented in four sections:
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introductory, financial, statistical and single audit act. The introductory
section includes this transmittal letter, the City's organizational chart and
a list of principal officials. The financial section includes the general
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purpose financial 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 multiyear basis. :1
The single audit act section includes the schedule of federal financial
assistance and the auditors' reports on supplemental information, internal
accounting controls and those controls related to major and nonmajor federal
financial assistance programs, and on compliance with laws and regulations and Il
those laws and regulations related to major and nonmajor federal financial
assistance programs. 01
This report includes all funds and account groups of the City. There is one
separately administered organization which is included as a component unit in
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accordance with the Governmental Accounting Standards Board (GASB) Codification
Section 2100. This organization is the Blackhawk Regional Waste Treatment Plant.
The City's equity in this organization's operating fund is included in the
Enterprise Fund. Friendswood Independent School District, Clear Creek
Independent School District, Galveston County, Harris County, Clear Creek
Drainage District and Friendswood Volunteer Fire Department have not met the
established criteria for inclusion in the reporting entity and, accordingly, are ill
excluded from this report.
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The City provides a full range of services, including City administration,
traffic planning, inspection services, municipal court services and a library.
However, the services that affect most citizens on a day-to-day basis are
described as follows:
1. Water and Sewer
The City provides water and sewer services for residential and commercial
locations. Eighteen employees are responsible for maintaining the system,
1 as well as billing and collecting for the services.
2. Police
Twenty-four hour coverage is provided by the City's police department,
which consists of Patrol, Investigative, Communications, Emergency
Management and Animal Control. A goal of the department and its forty
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 additional equipment for the volunteer fire
department. The City employs a fire marshal, one full-time fire fighter
and one full-time paramedic.
4. Streets
The street department is responsible for the repair and maintenance of all
City streets. This department consists of ten employees.
5. Sanitation
IThe garbage pick-up is contracted with Best Waste Systems, Inc.
6. Parks
The City maintains five city parks, one swimming pool and a sports complex.
The total of all these park areas is approximately fifty-seven acres.
11 ECONOMIC CONDITION AND OUTLOOK
The City of Friendswood, Texas is located 20 miles southeast of downtown Houston
in Harris and Galveston Counties. The Houston area's economic expansion has
spread to all of the Gulf Coast's industries, including oil and gas extraction,
banking and real estate. During the past year, the area's unemployment rate fell
from 6.4 percent to 5.0 percent, the lowest level since 1982. Many of the
Houston area's job gains were due to aerospace activity generated by the presence
of NASA's Johnson Space Center (JSC) . The area around JSC is now the hub of one
11 of the nations's largest space industry complexes, with more than 6,000
businesses and 99,000 residences. JSC's construction plans over the next five
years total $226 million, including the space station program and a new Mission
Control Center. Expansion of the Johnson Space Center Visitor's Facility by a
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non-profit group will result in a more extensive facility called Space Center !I
Houston. This facility is expected to double the number of visitors from one
to two million, employ at least 200 people and result in an overall economic
impact of about $100 million annually. Diversification of the area's economy
and support of the space industry, including more than $1 billion in contracts
and grants to private contractors in Harris County, indicate continued economic
growth for the Friendswood/Gulf Coast area. I!
MAJOR INITIATIVES
For the Year. During the 1989-90 budget preparation, 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. The
following items will provide a summary of these programs:
1. Surface Water
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The Harris-Galveston Coastal Subsidence District requires the City to
utilize a minimum of 80 percent surface water supplemented with well water.
The City completed its surface water system in time to meet its deadline11
of January 1, 1990; however, Houston's Southeast Water Purification plant
was not able to provide water to the City until October of this year.
Aside from its participation in the Southeast Water Purification plant,
the City's costs to convert to surface water exceeded $1.3 million.
2. Community Development
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As a result of Senate Bill 336, as approved by the Texas Legislature in
1987, the City was required to meet a May, 1990 deadline for adoption of
a capital improvements plan and impact fee schedule. This bill provides !I
guidelines limiting the use of impact fees to projects required to
facilitate new growth. This plan was implemented on schedule.
11 3. City Hall Remodeling
Construction was virtually completed on the addition of three jail cells
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in the police department and the remodeling of the city manager's r=;
secretary's office. The jails were added to meet state standards and
increase the available occupancy from four to twelve persons.
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4. Data Processing
The library completed its computerization effort. Five public access 01
catalog terminals are in place to tell whether a particular title, author
or subject is available. The system will indicate the status of a
particular book, allow the user to place a "hold" on that item, as well
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as track all loans and returns.
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5. Emergency Medical Services
The Friendswood Volunteer Fire Department's E.M.S. division placed a new
ambulance into service. The ambulance was designed to provide a better
environment for patient care and to reduce maintenance costs on the unit.
The E.M.S. is staffed by 34 volunteers and one paid paramedic and provides
outstanding service without cost to the individual requesting aid.
6. Police Department
The City's elementary school age children have received the benefit of
interacting with two officers who are specially trained in the nationally
recognized D.A.R.E. (Drug Abuse Resistance Education) program. These
officers work with the fifth graders at each elementary school three days
a week for 17 weeks.
For the Future.
1. Equipment Purchases
SThe 1990-91 budget includes the acquisition of two significant pieces of
equipment. A new fire engine, estimated to cost $185,000, is scheduled
11 to replace a 27 year-old pumper. An IBM AS/400 computer is planned to
replace the IBM System/36 which currently serves the majority of the City's
departments. The System/36 will be moved to the police department to
11 provide computer aided dispatching.
2. Friendswood Drug Prevention Council
In March 1989, a Drug Prevention Advisory Committee was appointed to define
the local problem, identify resources, establish a mission and recommend
an organizational structure to implement programs. This committee evolved
11 into the current organization known as the Friendswood Drug Prevention
Council. This group plans to implement a "New Focus" training program
within the City. "New Focus" is a community action program which unites
and trains adult leaders to help children learn to make positive, healthy
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3. Streets
1990-91 will be the seventh year of the City's street improvement program.
Streets designated for reconstruction are Forest View, Fairdale, Linkwood,
11 Royal Court and Diamond Lane.
4. Residential Curbside Recycling
The City Council authorized a residential curbside recycling program to
begin February 1, 1991. Recyclable materials to be collected include
newspapers, aluminum cans, glass containers, two-liter plastic bottles and
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Department Focus. Each year, the City will select a department to highlight for 11
its efforts and accomplishments. For 1989-90, the police department has been
chosen for review.
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The Friendswood Police Department, begun in 1964 with one officer, now is a full
service entity staffed by 40 full-time and eight part-time employees. Patrol
by uniformed officers in marked cars is provided 24 hours a day. A full range 1!
of crime prevention, investigative and special services are provided by other
units. Special services include those required to cope with drug abuse, weather
related emergencies and activities on navigable waterways within the City limits.
Throughout the growth and change of the past 25 years, the department has
continued to emphasize a close working relationship with the citizens of the
City. The partnership of community leaders and officers working together is
credited with helping to keep the incidence of serious crime low in comparison
to Texas cities of similar size. According to the most recent information, the
City's rate of serious crimes per 100 population was 2.9. This represents the 11
second lowest rate among the 30 Texas cities compared and just slightly more than
a quarter of the 10.9 rate attributed to the City of Houston.
As the City's growth continues into the 1990's, the police department's 11
commitment to personal, caring service will remain its hallmark.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an
internal control structure designed to ensure that the assets of the City are 11
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
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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 11
management.
Budgeting Controls. 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.
Activities of all funds are included in the annual appropriated budget. The
level of budgetary control (that is, the level at which expenditures cannot
legally exceed the appropriated amount) is established by department within an
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 L.
of this report, the City continues to meet its responsibility for sound financial
management.
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11 General Government Functions. Revenues for general government functions
(General, Special Revenue and Debt Service Funds) totaled $7,056,567 in 1989-90,
II an increase of $252,214 over 1988-89. General property taxes produced 64.58
percent of the general revenues compared to 67.06 percent the preceding year
Sales taxes produced 9.72 percent of the general revenues compared to 8.91
II percent the preceding year. The amount of revenue from various sources and the
increase or (decrease) over the preceding year are shown in the following
tabulation:
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Increase
1989-90 Percent (Decrease)
Revenue Sources Amount of Total Over 1988-89
IIGeneral property taxes $4,557,133 64.58 % $ (5,723)
Business gross receipts taxes 419,062 5.94 18,076
General sales taxes 689,576 9.77 83,027
Other taxes 751 .01 (49)
Sanitation 595,244 8.44 52,333
Fines and forfeitures 166,636 2.36 (23,470)
11 Licenses and permits 240,294 3.41 97,189
Intergovernmental 50,984 .72 (2,480)
Interest income 222,328 3.15 37,291
11 Other 114.559 1.62 (3.980)
TOTAL $7,056,567 100.00 % $252,214
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Assessed valuations of $759,841,760 represented an increase of 4.3 percent over
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the preceding year. Assessed valuations are at 100% of market value as
I determined by the Galveston County and Harris County Appraisal Districts. The
assessed tax levy at October 1, 1989, relating to the fiscal year 1989-90 was
$4,531,537 after adjustments, a decrease of .5 percent over the tax levy at
II October 1, 1988. Current tax collections were $4,427,153, 97.70 percent of the
tax levy, down $5,986 from last year.
I Delinquent tax collections were $74,484 and represented 1.65 percent of total
collections. The ratio of total collections (current and delinquent) to the
current tax levy was 99.34 percent, an increase of .22 percent from last year.
il Allocations of property tax levy by purpose for 1989-90 and the preceding two
fiscal years are as follows (tax rate per $100 of assessed value) :
II Purpose 1989-90 1988-89 1987-88
General Fund $.5333 $.50746 $.520
General Obligation Debt .1617 .18754 .175
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TOTAL TAX RATE $ .695 $ .695 $.695
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Expenditures for general government purposes totaled $7,163,992, an increase of SO
$518,298 from 1988-89. Increases or (decreases) in the levels of expenditures Cc
for major functions of the City for the preceding year are shown in the following
tabulation: OP
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1989-90 Percent (Decrease)
Function Amount of Total Over 1988-89
General Government $1,258,050 17.56 % $ 90,856 !!
Public Safety 2,173,685 30.34 135,619
Public Works 1,196,889 16.71 88,466
Community Development 281,723 3.93 23,973 !!
Community Services 949,048 13.25 180,515
Debt Service 1,304,597 18.21 (1,131)
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TOTAL $7,163,992 100.00 % $518,298
An increase in expenditures for community services was due primarily to ik
additional expenditures for library operations. An increase in expenditures for
public safety was due primarily to additional expenditures for Fire/EMS
operations. il
It should be noted that all increases were planned for and budgeted.
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Fund balances in the major operating funds were maintained at budgeted levels.
The General Fund Balance of $970,359 was up $149,705 from the preceding year;
the Debt Service Fund balance of $57,308 was down $223,485 from the preceding 411
year; the Capital Projects Fund balance of $586,205 was up $258,895 from theme
prior year; and Special Revenue Fund balances of $42,497 was up $27,915 from
the prior year. I
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Enterprise Fund Operations. The water and sewer utility continued to show gains
in number of customers. Comparative data for the past two fiscal years are
presented in the following tabulation:
Year Ended Sept. 30,
1990 1989 PO
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Operating revenue $3,472,772 $3,034,892
Operating expenses before depreciation 1.597,064 1,443.986
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Net operating revenue available
for debt service $1,875,708 $1,590,906
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Debt service $ 186,275 $ 186,900
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Coverage (income available for debt
service divided by annual debt service) 10.07 8.51
Number of customers - sewer 6,719 6,539 re
Number of customers - water 6,968 6,731
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The Enterprise Fund, which is used to account for utility operations, had
maintained retained earnings of $4,954,866 and $4,027,706 as of September 30,
II 1990 and 1989, respectively. These retained earnings balances are considered
adequate based on the operating needs of the water and sewer utility.
11 Non-expendable Trust Fund Operation. 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, 1990 and 1989
of $2,016 and $1,549 and fund balances were $82,033 and $80,017 as of
IISeptember 30, 1990 and 1989, respectively.
Debt Administration. The ratio of net bonded debt to assessed valuation and the
II amount of bonded debt per capita are useful indicators of the City's debt
position to municipal management, citizens and investors. These data for the
City of Friendswood at the end of the 1989-90 fiscal year were as follows:
IIRatio of Debt to
Assessed Value Debt
(100 Percent of Per
IIDescription Amount Present Market) Capita
Net direct bonded debt $ 8,023,470 1.06 % $353
I Overlapping debt 12,798,607 1.68 564
Total direct and
overlapping debt $20,822,077 2.74 % $917
Outstandingtax supported debt at September 30, 1990 totaled 8 258 970.
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Cash Management. Cash temporarily idle during the year was invested in
certificates of deposit ranging from 26 to 338 days to maturity. Yields on
certificates of deposit ranged from 6.74 percent to 9.09 percent during the year
11 ended September 30, 1990.
Interest earned for the year was $222,328, up $37,291 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
11 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,
1990 are classified in the category of lowest credit risk as defined by the
11 Governmental Accounting Standards Board.
OTHER INFORMATION
11 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 EARL LAIRSON & CO. , CPA's, was
11 selected and their opinion has been included in this report.
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Awards. The Government Finance Officers Association (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Friendswood
for its comprehensive annual financial report for the fiscal year ended
September 30, 1989. This was the third consecutive year that the City has
received this prestigious award. In order to be awarded a Certificate of
Achievement, the City published an easily readable and efficiently organized
comprehensive annual financial report. This report satisfied both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe1!
that our current comprehensive annual financial report continues to meet the
Certificate of Achievement Program's requirements and we are submitting it to
the GFOA to determine its eligibility for another certificate.
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Acknowledgments. The preparation of the comprehensive annual financial report
was made possible by the dedicated service of the entire staff of the Finance
Department. Each member of the department has my sincere appreciation for the 11
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,
/q1A)L op
Roger C. Roecker g
Director of Finance
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Friendswood,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1989
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFR's) achieve the highest
standards in government accounting
and financial reporting.
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OFFFC�c9 ��`y E.
E.
um:0 STATE�TIE S�
c,ww o President
CORPORATION s �C�
fie, 5 Kati
chrckao YOP
Executive Director
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CITY OF FRIENDSWOOD
ORGANIZATIONAL CHART
APPOINTED BOARDS MAYOR & COUNCIL VOLUNTEER FIRE
AND — — — — — — _ _ _ AND
AD HOC COMMITTEES AMBULANCE
CITY ATTORNEY FIREMAN
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ICY
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MUNICIPAL JUDGE CITY SECRETARY
Yi#
CITY MANAGER
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1 1 �
COURT CLERK FIRE MARSHAL
•
1 1 PP
COMMUNITY PARKS AND
FINANCE LIBRARY PUBLIC WORKS POLICE DEVELOPMENT RECREATION
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PRINCIPAL OFFICIALS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
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MAYOR
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Paul W. Schrader
11 Mayor Pro Tem
Councilmember Councilmember
Position No. 1 Position No. 4
11 Ronald H. Ritter Ed Stuart
11 Councilmember Councilmember
Position No. 2 Position No. 5
11 Robert Wicklander Harold Raley
11 Councilmember Councilmember
Position No. 3 Position No. 6
Evelyn B. Newman Frank Frankovich
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Acting City Manager
11 Melvin L. Meinecke
City Secretary Tax Assessor
Deloris Archer Alta Carbone
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Director of Finance
RP
Roger C. Roecker
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FINANCIAL SECTION
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E1RL LiiIRSON 8 CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
TEL.713-681-8500 • FAX 713-681-9043
P.O. BOX 500017 1716 MANGUM, SUITE 300
HOUSTON,TEXAS 77250-0017 HOUSTON,TEXAS 77092
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INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of 11
City Council
City of Friendswood, Texas 1
We have audited the accompanying general purpose financial statements of the
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City of Friendswood, Texas and the combining, individual fund and account group
financial statements of the City of Friendswood, Texas as of and for the year
ended September 30, 1990, as listed in the table of contents. These financial
statements are the responsibility of the City of Friendswood, Texas management.
Our responsibility is to express an opinion on these financial statements based
on our audit. 1
We have conducted our audit in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material11
misstatement. An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above I/
present fairly, in all material respects, the financial position of the City of
Friendswood, Texas at September 30, 1990, and the results of its operations and
the cash flows of its proprietary and non-expendable trust fund for the year then
ended, in conformity with generally accepted accounting principles. Also, in
our opinion, the combining, individual fund and account group financial
statements referred to above present fairly, in all material respects, the PP
financial position of each of the individual funds and account groups of the City
of Friendswood, Texas at September 30, 1990, and the results of operations of
such funds and the cash flows of individual proprietary and non-expendable trust
11
funds for the year then ended, in conformity with generally accepted accounting
principles.
11
-24-
Honorable Mayor and Members of
City Council
City of Friendswood, Texas
Page Two
I
Our audit was made for the purpose of forming an opinion on the general purpose
' financial statements taken as a whole and on the combining, individual fund and
account group financial statements. The accompanying financial information
listed as schedules in the table of contents is presented for purposes of
' additional analysis and is not a required part of the financial statements of
the City of Friendswood, Texas The information in these schedules has been
subjected to the auditing procedures applied in the audit of the general purpose,
combining, individual fund and account group financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements of each of the respective individual funds and account groups, taken
as a whole.
1 .
I
Houston, Texas
December 14, 1990
t
I
-25-
I
COMBINED BALANCE SHEET - ALL FUND TYPES 11
AND ACCOUNT GROUPS - 1 of 2
91
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL 11
GENERAL REVENUE SERVICE PROJECTS
ASSETS AND OTHER DEBITS 1
ASSETS
CASH - including certificates of
deposit $1,596,828 $42,687 $ 57,045 $626,437
RECEIVABLES - net where applicable,
of allowances for uncollectibles
Property taxes 271,665 100,221
Accounts 51,865 22,221 263
Interest
DUE FROM OTHER FUNDS 1
PREPAID EXPENDITURES AND OTHER ASSETS 53,784
RESTRICTED ASSETS 1
Cash - including certificates of
deposit
Land
Blackhawk operating fund deposit
GENERAL FIXED ASSETS - at cost
PROPERTY, PLANT AND EQUIPMENT -
at cost less accumulated
depreciation - Note 4
CERTIFICATE OF OBLIGATION ISSUANCE COSTS -
net of amortization11
OTHER DEBITS
Amount available in debt service funds
Amount to be provided for
retirement of general
long-term debt
11
TOTAL ASSETS AND OTHER DEBITS $1,974,142 $64,908 $157,529 $626,437
11
-26-
1
II
1
IIFIDUCIARY
PROPRIETARY FUND TYPE TOTALS
1 FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG-
ENTERPRISE TRUST ASSETS TERM DEBT 1990 1989
1
1
$ 1,812,353 $ 4,135,350 $ 2,569,275
11
II 371,886 341,986
416,668 491,017 381,997
25,683 25,683 30,826
II - 637
5,896 59,680 34,289
II
II 546,518 $24,833 571,351 1,411,584
57,200 57,200 57,200
109,279 109,279 109,279
II $17,391,871 17,391,871 15,607,493
II21,155,609 21,155,609 22,161,283
11 31,948 31,948 34,230
11 $ 57,308 57,308 280,793
1 8,201,662 8.201.662 8.699,422
$24,103,954 $82,033 $17,391,871 $8,258,970 $52,659,844 $51,720,294
II
See notes to financial statements.
II
-27-
:1
141 COMBINED BALANCE SHEET - ALL FUND TYPES
AND ACCOUNT GROUPS - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
LIABILITIES. EQUITY AND OTHER CREDITS
LIABILITIES
ACCOUNTS PAYABLE AND
ACCRUED LIABILITIES $ 282,407 $ 190 $ 40,232
COMPENSATED ABSENCES 434,179
PAYABLE FROM RESTRICTED ASSETS
Accrued interest
Revenue bonds and certificates
of obligation - current portion
Deposits
Impact Fee Refunds Payable
DUE TO OTHER FUNDS
DEFERRED REVENUE 287,197 22,221 $100,221
LEASE OBLIGATION
REVENUE BONDS11
GENERAL OBLIGATION BONDS
CERTIFICATES OF OBLIGATION
TOTAL LIABILITIES 1,003,783 22,411 100,221 40,232
EQUITY AND OTHER CREDITS
INVESTMENT IN GENERAL FIXED ASSETS
CONTRIBUTED CAPITAL - Note 1211
RETAINED EARNINGS
Reserved for revenue bond
retirement11
Reserved for construction
Unreserved
FUND BALANCES
Reserved for prepaid expenditures 53,784
Reserved for encumbrances 54,372 9,000 231,550
Reserved for endowments111
Reserved for emergency operations 400,000
Reserved for parks 2,052
Reserved for programs 227
Unreserved671
Designated for construction 354,655
Designated for debt service 57,308 3
Undesignated 461.976 31,445
TOTAL EQUITY AND OTHER CREDITS 970.359 42.497 57,308 586,205
TOTAL LIABILITIES, EQUITY AND
OTHER CREDITS $1,974,142 $64,908 $157,529 $626,437 3
-28-
1
II
II
IIFIDUCIARY
PROPRIETARY FUND TYPE TOTALS
I
FUND TYPE NON- ACCOUNT GROUPS (MEMORANDUM ONLY)
EXPENDABLE GENERAL FIXED GENERAL LONG-
ENTERPRISE TRUST ASSETS TERM DEBT 1990 1989
1
$ 130,128 $ 452,957 $ 523,867
II41,248 475,427 454,867
30,247 30,247 30,909
1 220,000 220,000 130,000
48,320 48,320 50,865
1 227,484 227,484 -
- 637
409,639 365,501
$ 13,192 13,192 29,437
11 735,000 735,000 865,000
8,080,778 8,080,778 8,750,778
4,110,000 165,000 4,275,000 4,400,000
II5,542,427 8,258,970 14,968,044 15,601,861
II $17,391,871 17,391,871 15,607,493
13,606,661 13,606,661 14,959,878
II
208,320 208,320 292,087
932,079 932,079 1,412,887
3,814,467 3,814,467 2,322,732
II
53,784 -
294,922 508,063
$67,200 67,200 67,200
400,000 -
2,052 7,602
II
227 1,287
354,655 96,319
I
57,308 280,793
14.833 508,254 562,092
18,561,527 82,033 17,391,871 37,691,800 36,118,433
1 $24,103,954 $82,033 $17,391,871 $8,258,970 $52,659,844 $51,720,294
See notes to financial statements.
II
-29-
:I
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 3
FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
CITY OF FRIENDSWOOD, TEXAS :I
Year ended September 30, 1990
I!
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL II
GENERAL REVENUE SERVICE PROJECTS
REVENUES 11
Taxes $4,616,378 $1,050,144
Charges for services 595,244
Fines and forfeiture 166,636II
Licenses and permits 240,294
Donations 3,496 $51,793
Intergovernmental 50,984
Interest 188, 374 2,986 30,968 $ 43,121 II
Other 51.737 7.533 171
TOTAL REVENUES 5,913,143 62,312 1,081,112 43,292
II
EXPENDITURES
Current
General government 1,258,050II
Public safety 2,153,037 20,648
Public works 1,196,889
Community development 275,218 6,505
II
Community services 944,848 4,200
Capital outlay 71,586
Debt service
Principal retirement 721,245II
Interest and fiscal charges 583.352
TOTAL EXPENDITURES 5,828,042 31.353 1.304,597 71.586
REVENUES OVER (UNDER) EXPENDITURES 85,101 30,959 (223,485) (28,294) 11
OTHER FINANCING SOURCES
Operating transfers in 351,793 287,189 11
Operating transfers out (287,189) (3,044)
Certificates of obligation
proceeds3
TOTAL OTHER FINANCING
SOURCES (USES) 64,604 (3,044) 287.189
REVENUES AND OTHER SOURCES :I
OVER (UNDER) EXPENDITURES 149,705 27,915 (223,485) 258,895
Fund balances at beginning of year 820,654 14.582 280.793 327,310 !I
FUND BALANCES AT END OF YEAR $ 970,359 $42,497 $ 57,308 $586,205
:I
11
-30-
I
V
I
1
TOTALS
(MEMORANDUM ONLY)
1990 1989
I
$5,666,522 $5,571,191
595,244 542,911
166,636 190,106
240,294 143,105
55,289 56,348
11 50,984 53,464
265,449 216,724
59,441 62,356
7,099,859 6,836,205
1,258,050 1,167,194
2,173,685 2,038,066
1,196,889 1,108,423
281,723 257,750
949,048 768,533
71,586 669,168
721,245 687,029
583,352 618,699
7,235,578 7.314,862
11 (135,719) (478,657)
638,982 1,276,209
(290,233) (548,674)
200,000
348,749 927,535
213,030 448,878
1,443,339 994,461
$1,656,369 $1,443,339
See notes to financial statements.
-31-
1
1111
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 44
FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE
DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES - 1 of 2
:1
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990I:
GENERAL FUND I!
VARIANCE-
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) 1!
REVENUES
Taxes $4,474,390 $4,616,378 $141,98811
Charges for services 572,977 595,244 22,267
Fines and forfeitures 170,000 166,636 (3,364)
Licenses and permits 155,832 240,294 84,462
Donations 4,735 3,496 (1,239) 1:
Intergovernmental 50,284 50,984 700
Interest 119,790 188,374 68,584
Other 39,625 51,737 12.112 II
5,587,633 5,913,143 325,510
EXPENDITURES
CurrentII
General government 1,417,672 1,258,050 159,622
Public safety 2,170,670 2,153,037 17,633
Public works 1,186,073 1,196,889 (10,816)
11
Community development 304,066 275,218 28,848
Community services 989,835 944,848 44,987
Capital outlays
Debt Service11
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES 6,068,316 5,828,042 240.274111!
REVENUES OVER (UNDER) EXPENDITURES (480,683) 85,101 565,784
OTHER FINANCING SOURCES (USES) ii
Operating transfers in 351,793 351,793 -
Operating transfers out (287,189) (287,189) -
TOTAL OTHER FINANCING111
SOURCES (USES) 64,604 64,604 -
REVENUES AND OTHER SOURCES A
OVER (UNDER) EXPENDITURES
AND OTHER USES $ (416,079) 149,705 $565,784
_________
Fund balances at beginning of year 820,654
FUND BALANCE AT END OF YEAR $ 970,359
-32-
II
Ir
1
1
IISPECIAL REVENUE FUNDS DEBT SERVICE FUND
VARIANCE- VARIANCE-
' FAVORABLE FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE)
II $1,044,385 $1,050,144 $ 5,759
II $ 43,000 $51,793 $ 8,793
II 1,012 2,986 1,974 30,000 30,968 968
3,100 7,533 4,433
47,112 62,312 15,200 1,074,385 1,081,112 6,727
II
29,648 20,648 9,000
7,655 6,505 1,150
4,200 4,200 -
II
721,245 721,245 -
585,370 583,352 2,018
11 41,503 31,353 10,150 1,306,615 1,304.597 2.018
5,609 30,959 25,350 (232,230) (223,485) 8,745
II
II (3,044) (3 ,044) - - - -
(3,044) (3,044) - - - -
II
$ 2,565 27,915 $25,350 $(232,230) (223,485) $ 8,745
11
14,582 280.793
If $42,497 $ 57,308
See notes to financial statements.
17
-33-
11
It
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE
11 DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
CAPITAL PROJECTS FUND
VARIANCE-
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
11 REVENUES
Taxes
Charges for services
Fines and forfeitures
Licenses and permits
Donations
Intergovernmental
Interest $ 16,435 $ 43,121 $ 26,686
Other 146 171 25
16,581 43,292 26,711
EXPENDITURES
11 Current
General government
Public safety
11 Public works
Community development
Community services
Capital outlays 631,001 71,586 559,415
Debt Service
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES 631.001 71.586 559.415
REVENUES OVER (UNDER) EXPENDITURES (614,420) (28,294) 586,126
11 OTHER FINANCING SOURCES (USES)
Operating transfers in 287,189 287,189 -
Operating transfers out
TOTAL OTHER FINANCING
SOURCES (USES) 287,189 287.189 -
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER USES $(327,231) 258,895 $586,126
-
Fund balances at beginning of year 327.310
11 FUND BALANCE AT END OF YEAR $586,205
Ir
-35-
COMBINED STATEMENT OF REVENUES, EXPENSES AND ; ;
CHANGES IN RETAINED EARNINGS/FUND BALANCE -
PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND - 1 of 2 S
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
ILW
PROPRIETARY FIDUCIARY !!
FUND TYPE FUND TYPE
NON-EXPENDABLE
I!
ENTERPRISE TRUST
Operating revenues
Water and sewer sales and services $ 3,424,025
Water and sewer tap fees -
Fees and penalties 34,258
Other 14,489
3,472,772
Operating expenses
!!
Water department
Personal services 203,744
Supplies 58,192
Other services and charges 169,651
Maintenance 89,525
1111
521,112
Sewer department
Personal services 80,071
Supplies 8,746
Other services and charges 594,830
Maintenance 82,767
766,414
Operation administration department
Personal services 52,720
Supplies 3,343
Other services and charges 862
Maintenance 412 U
57,337 Wi
Finance administration department
Personal services 116,296
Supplies 6,966
Other services and charges 91,823
Maintenance 2,942
218,027
!I
-36-
11
I
II
II
TOTALS
(MEMORANDUM ONLY)
II 1990 1989
I $ 3,424,025 $ 2,981,301
- 12,025
34,258 7 ,150
II 14,489 34,416
3,472,772 3,034,892
II
203,744172,601
58,192 54,085
II 169,651 149,943
89,525 50,901
521,112 427,530
11 80,071 96,039
8,746 11,266
II 594,830 522,527
82,767 88,659
766,414 718,491
II 52,720 56,057
3,343 631
862 1,163
412 75
57,337 57,926
11 116,296 113,436
6,966 6,203
91,823 107,528
2,942 1,623
II 218,027 228,790
it
I
-37-
0111
all
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE -
PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND - 2 of 2
gib
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 !!
PROPRIETARY FIDUCIARY !!
FUND TYPE FUND TYPE
NON-EXPENDABLE
ENTERPRISE TRUST1!
Emergency management
Personal services 1!
-
Maintenance -
Engineering
Other services and charges 34.174 !!
OPERATING EXPENSES
BEFORE DEPRECIATION 1,597,064
!!
Depreciation 550.720
OPERATING EXPENSES 2,147.784
OPERATING INCOME 1,324,988
Non-operating revenues (expenses) 0
Interest revenue 164,388 $ 2,016wk
Interest expense (56,275) -
Loss on Disposal of Fixed Assets (157,192)
(49,079) 2,016
:1
INCOME BEFORE OPERATING TRANSFERS 1,275,909 2,016
II
Operating transfers in -
Operating transfers out (348,749)
(348,749) OM
iwi
NET INCOME 927,160 2,016
MO
Retained earnings/fund balance at F
wo
beginning of year 4,027,706 80,017
RETAINED EARNINGS/FUND BALANCE AT !!
END OF YEAR $ 4,954,866 $ 82,033
I
61
44
-38-
&�
#w
�~
TOTALS
(MDMDI&\N[DJM ONLY)
I990 1989
_ 2'878
- 8.371
' ll'249
am
�
34`I74 -
1`597,064 1`443'086
�m
550`720 604.726
2`I47.784 2.048.7I2
m� 1'324.988 986.180
N� 166,404 I73'384
(56,275) (6I'000)
(157.192) '
(47`063) 11I.484
1`277,925 1`097.664
- -
(348^749) (727`535)
(348`740) (727.535)
920'I76 370'129
-- 4`107,723 3`737`594
$ 5,036'899 $ 4.107.723
See notes to financial statements.
']9-
COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE
AND NON-EXPENDABLE TRUST FUND - 1 of 2
up
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 R
k
FIDUCIARY
PROPRIETARY FUND TYPE
FUND TYPE NON-EXPENDABLE
ENTERPRISE TRUST
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 1,324,988PP
Adjustment to reconcile net income to net
cash provided by operating activities
Amortization 2,284
OP
Depreciation 550,720
Disposal of fixed assets (157,192)
1,720,800
Changes in operating assets and liabilities OP
Increase in prepaid expenses (4,564)
Decrease in customer deposits (2,545)
(Decrease) Increase in accounts payable 150,511 PO
(Decrease) Increase in due to other funds
Increase in accounts receivable (90,945)
(Decrease) Increase in accrued interest
PO
payable (662)
(Increase) Decrease in due from other funds 637
CASH FLOWS PROVIDED FROM PO
OPERATING ACTIVITIES 1,773,232 tkk
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES OP
Operating transfers-out to other funds
Operating transfers-in from other funds (348,749)
CASH FLOWS USED BY NONCAPITAL
FINANCING ACTIVITIES (348,749) 1PO
up
up
AA
-40-
11
!!
11
11
11
TOTALS
(MEMORANDUM ONLY)
11 1990 1989
11 $ 1,324,988 $ 986,180
2,284 1,711
11 550,720 604,726
(157,192) -
1,720,800 1,592,617
11 (4,564) (1,332)
(2,545) (3,060)
11 150,511 90,227
(150,053)
(90,945) (35,205)
(662) 25,386
637 290
1,773,232 1,518,870
11 (727,535)
(348,749)11 -
(348,749) (727,535)
11
11
-41-
mu
COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE
AND NON-EXPENDABLE TRUST FUND - 2 of 2
MP
FIDUCIARY
OP
PROPRIETARY FUND TYPE
FUND TYPE NON-EXPENDABLE
ENTERPRISE TRUST
OP
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Contributed capital transferred to 110
General Fund (1,465,693)
Contributed capital from customers 112,474
Acquisition and construction of capital
00
assets, including capitalized construction
interest (6,618,058)
Retirements and reclassification of
capital assets 7,073,012 SP
Revenue bond payments (130,000)
Interest paid (56,275)
Proceeds from note payable OP
Note payments -
Acquisition of capitalized bond costsSP
-
CASH FLOWS PROVIDED (USED) FROM CAPITAL AND
RELATED FINANCING ACTIVITIES (1,084,540)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest earned on investments 164,388 2,016 14,
INCREASE IN CASH 504,331 2,016 OP
Cash balance at beginning of year 1,854.540 22.817
CASH BALANCE AT END OF YEAR $ 2,358,871 $ 24,833 r
0.
p
SP
-42-
1r
1
TOTALS
(MEMORANDUM ONLY)
1990 1989
11 I
(1,465,693) 4,200,000
112,474 143,839
(6,618,058)11 -
7,073,012 (2,259,386)
(130,000) (125,000)
(56,275) (61,900)
11
_ (1,371,286)
(35,941)
11 (1,084,540) 490,326
11 166,404 173,384
506,347 1,455,045
1,877,357 422,312
11 $ 2,383,704 $1,877,357
1[
116
1!
-43-
NOTES TO FINANCIAL STATEMENTS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
1. ORGANIZATION
The City of Friendswood, Texas was incorporated on October 15, 1960. The
charter provided for a Mayor-Council form of city government. It was
amended on October 16, 1971 to provide for a City Council-City Manager form
of city government.
The Mayor and six Councilmen are elected from the City at large to serve
two-year terms.
The City Council is the principal legislative body of the City. The City
Manager is appointed by a majority vote of the City Council and is
responsible to the Council for the administration of all the affairs of
the City. The City Manager is responsible for law enforcement, appointment
and removal of department directors and employees, supervision and control
of all City departments and preparation of the annual budget. The Mayor
presides at meetings of the City Council and can vote.
The City provides the following services: public safety, streets, parks
11
and recreation, library, water and sewer, sanitation, planning and zoning,
building inspection, code enforcement and general administrative services.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
In defining the reporting entity the City has considered the following
criteria: (1) oversight responsibility which includes (a) financial
interdependence, (b) selection of governing authority, (c) designation
of management, (d) ability to significantly influence operations, and
(e) accountability for financial matters, (2) scope of public service
and (3) special financing relationships.
The reporting entity is composed of the operational units (General,
Special Revenue, Debt Service, Capital Projects, Non-expendable Trust
and Enterprise Funds) of the City. The governmental units listed below
were considered but excluded, because they did not materially meet the
criteria listed above.
The governmental unitg include Friendswood Independent School District,
Clear Creek Independent School District, Galveston County, Harris
County and Clear Creek Drainage District and have been omitted from
the reporting entity.
Of the component units considered for inclusion in the reporting
entity, only Friendswood Volunteer Fire Department had a positive
response to criteria 1(a) and 1(d) above.
-44-
1
NOTES TO FINANCIAL STATEMENTS - 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. REPORTING ENTITY (continued)
No other positive responses were found to the remaining criteria for
Friendswood Volunteer Fire Department. In the opinion of the City's
management, the degree of oversight of the Friendswood Volunteer Fire
Department is immaterial and because they do not meet the scope of
public service or special financing relationship criteria, they are
not considered a component unit of the City.
B. FUND ACCOUNTING
The accounts of the City are organized on the basis of funds and
11 account groups, each of which is considered a separate accounting
entity. The operations of each fund are accounted for with a separate
set of self-balancing accounts that comprise its assets, liabilities,
fund equity, revenues and expenditures or expenses, as appropriate.
Resources are allocated to and accounted for in individual funds based
upon the purposes for which they are to be spent and the means by which
spending activities are controlled. The City uses six fund types and
11 two account groups described below:
GOVERNMENTAL FUND TYPES
Governmental funds are those through which most governmental functions
of the City are financed. The City's expendable financial resources
(except those accounted for in proprietary funds) are accounted for
through governmental funds. The measurement focus is upon
determination of changes in financial position, rather than upon net
income determination. The following are the City's governmental fund
types:
General Fund
I! The General Fund is used to account for all financial transactions
which are not accounted for in another fund. The primary sources of
revenue of the General Fund are property taxes, sales and use taxes,
I! franchises, licenses and permits, and fines and forfeitures.
Expenditures are for general government, public safety, public works,
community development and community services.
I!
I!
11
-45-
I
NOTES TO FINANCIAL STATEMENTS - 3
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1990
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. FUND ACCOUNTING (continued)
Special Revenue Funds
The Special Revenue Funds are used to account for proceeds of specific
revenue sources that are legally restricted to financing specified
activities. Capital improvements are charged to expenditures in the
accounts of this fund and capitalized in the General Fixed Assets
Account Group or the Enterprise Fund.
Debt Service Fund
The Debt Service Fund is used to account for the payment of interest
and principal on all general long-term debt of the City. The primary
source of revenue of the Debt Service is general property taxes.
Capital Projects Fund I
The Capital Projects Fund is used to account for the receipt and
expenditures of resources used for the acquisition and construction
of major capital facilities (other than those financed by the
Enterprise Fund) . The principal resources of the Capital Projects
Fund are proceeds from the sale of bonds and certificates of
obligation, federal grants, interest revenues and operating transfers
from other funds.
PROPRIETARY FUND TYPE 1/
Proprietary funds are used to account for the City's ongoing
organizations and activities which are similar to those often found
in the private sector. The measurement focus is upon determination
of net income. The following is the City's proprietary fund type:
Enterprise Fund (Water and Sewer) 11
The Enterprise Fund is used to account for operations of the water
and sewer department and the construction of related facilities and
for billing for and payment of its sanitation services. The fund is
financed and operated in a manner similar to private business
enterprises - where the intent of the City is that the costs (expenses,
including depreciation) of providing goods or services to
11
-46-
1
I! NOTES TO FINANCIAL STATEMENTS - 4
I! CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. FUND ACCOUNTING (continued)
PROPRIETARY FUND TYPE (continued)
(Water Fund Enterpriseand Sewer) (continued)
( )
the general public on a continuing basis be financed or recovered
primarily through user charges. The acquisition, maintenance and
improvement of the physical plant facilities required to provide these
goods and services are financed from existing cash resources, the
issuance of bonds (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 in the same manner as proprietary funds.
11 ACCOUNT GROUPS
Account are used to establish accountingcontrol and
groups
accountability for the City's general fixed assets and general
long-term debt. The following are the City's account groups:
General Fixed Assets Account Group
The General Fixed Assets Account Group is used to account for the
City's land, buildings, improvements and equipment except those
1[ recorded in the Enterprise Fund.
General Long-Term Debt Account Group
P
I! This account group is used to account for the City's liability for
general obligation bonds and certificates of obligation due at varying
dates through the year 2004 which are payable from general property
tax revenues of the City.
-47-
NOTES TO FINANCIAL STATEMENTS - 5
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the financial
statements, regardless of the measurement focus applied.
MEASUREMENT FOCUS
Governmental fund types (General, Special Revenue, Debt Service and
Capital Projects) are accounted for on a "current financial resources"
measurement focus. Accordingly, only current assets and current
liabilities are included on their balance sheets and the reported fund
balance provides an indication of available spendable or appropriable
resources. Operating statements for governmental fund types report
increases and decreases in available spendable resources.
The Enterprise Fund, a proprietary fund type, and the Non-Expendable
Trust Fund are accounted for on a "flow of economic resources"
measurement focus. Accordingly, all assets and all liabilities are
included on their balance sheets, and the reported fund equity provides
an indication of the economic net worth of the fund. Operating
statements for the Enterprise Fund report increases and decreases in
total economic net worth.
MODIFIED ACCRUAL BASIS OF ACCOUNTING
The modified accrual basis of accounting is followed in the
governmental fund types. Under this basis of accounting, revenues
are recognized when they become susceptible to accrual; i.e. , both
measurable and available to finance expenditures of the current period.
Available means then due, or past due and receivable within the current
period and collected within the current period or expected to be
collected soon thereafter to be used to pay liabilities of the current
period. Such time thereafter shall not exceed 60 days. Expenditures
are recorded when the related fund liability is incurred with the
exception of principal and interest on general long-term debt.
The treatment of specific revenue and expenditure items is described
below:
(1) General property taxes are recorded as a receivable when levied
and as revenue when they become available. Property taxes
receivable have been recorded as deferred revenue at September 30,
1990. Property taxes collected within sixty days subsequent to
September 30, 1990 have not been recorded as revenue as the amount
is not material.
-48-
II
NOTES TO FINANCIAL STATEMENTS - 6
I CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
II
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
IIC. BASIS OF ACCOUNTING (continued)
11 MODIFIED ACCRUAL BASIS OF ACCOUNTING (continued)
(2) Sick pay is accrued and one half of any cumulative sick pay is
payable to the employee upon termination. Unpaid vacation is
1 recorded as it accrues and cannot be carried forward to the
following year without City Manager approval. Amounts accrued
in these financial statements represent the unused portion of
IIvacation at September 30, 1990. Longevity begins to accrue after
one year of employment and is paid each December. "Comp-time"
accrues each pay period and cumulative "comp-time" is payable to
II the employee upon termination. Sick pay, vacation, longevity and
"comp-time" will be liquidated with expendable available financial
resources and are accrued in the General and Enterprise Funds.
As of September 30, 1990, accrued holiday, sick pay, vacation,
1 longevity pay and "comp-time" were as follows:
Fund Holiday Sick Pay Vacation Longevity "Comp-Time" Total
II General Fund $24,955 $215,813 $166,349 $17,648 $ 9,414 $434,179
Enterprise Fund 566 20.719 16.844 2.868 251 41.248
11 TOTAL $25,521 $236,532 $183,193 $20,516 $ 9,665 $475,425
11 (3) Principal and interest on general long-term debt is recognized
when due.
(4) Supplies inventories are charged to expenditures when purchased.
5 Franchise fees, fines, licenses and permits, and sales tax are
recognized when received; i.e. , the time they are considered
measurable. Sanitation fees are recorded when earned.
(6) Investment earnings are not accrued in the governmental fund types
lik. and Non-Expendable Trust Funds since they are not material.
Earnings are recorded upon maturity of investments. Investments
(certificates of deposit) are stated at cost.
The Enterprise Fund and Non-Expendable Trust Fund revenues and expenses
iii,, are recorded on the accrual basis whereby revenues are recognized in
the period in which they are earned and become measurable and expenses
11 are recognized in the period incurred.
11 -49-
NOTES TO FINANCIAL STATEMENTS - 7
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. BUDGETS 1
GENERAL BUDGET POLICIES
Procedures in establishing budgetary data reflected in the financial
statements are as follows:
(1) On or before the first day of August of each year, the City Manager
shall submit to the Council a proposed budget and an accompanying
message. The Council shall review the proposed budget and revised
as deemed appropriate prior to general circulation for public
hearing. The Council shall adopt the budget by ordinance on one
reading on or before the 15th day of September or as soon thereafter
as practical. Adoption of the budget shall require an affirmative
vote of at least a majority of all members of the Council. Adoption
of the budget shall constitute appropriations of the amounts
specified therein as expenditures from the funds indicated. If,
during the fiscal year, the City Manager certifies that there are
available for appropriation revenues in excess of those estimated
in the budget, the Council may make supplemental appropriation for
the year up to the amount of such excess.
(2) At any time during the fiscal year, the City Manager may transfer
part or all of any unencumbered appropriation balance among programs
within a department, division or office and, upon written request
by the City Manager, the Council may by ordinance transfer part or
all of any unencumbered appropriation balance from one department,
office, or agency to another.
(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 Legally adopted budgets for the General, Special Revenue, debt
Service, Capital Projects and Enterprise Funds are prepared on a
basis consistent with generally accepted accounting principles
(GAAP) , at the departmental level, the legal level of budgetary
control.
-50-
I
IINOTES TO FINANCIAL STATEMENTS - 8
ll CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
II
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ID. BUDGETS (continued)
I GENERAL BUDGET POLICIES (continued)
(5) Encumbrances represent commitments related to unperformed contracts
II 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
II 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.
I
The City of Friendswood has complied with all budget requirements for the
year ended September 30, 1990.
IIE. FIXED ASSETS
Fixed assets are stated at cost or, if the cost is not determinable, at
II estimated historical cost. Donated fixed assets are recorded at their
estimated fair value on the date received. Costs incurred for the
purchase or construction of general fixed assets are recorded as capital
I outlay expenditures in the General, Special Revenue and Capital Projects
Funds. All such costs are capitalized in the General Fixed Assets Account
Group. Amounts expended for property, plant and equipment in the
II Enterprise Fund are capitalized in the fixed asset accounts within that
fund. Public domain fixed assets such as bridges, roads, drainage
systems, etc. , are capitalized along with other general fixed assets.
II Depreciation of all exhaustible fixed assets used by the Enterprise Fund
is charged as an expense against its operations. Allowance for
depreciation is reported in the Enterprise Fund balance sheet.
I Depreciation has been provided over the estimated useful lives using the
straight-line method. The estimated useful lives are as follows:
11 Assets Lives
Equipment 5-10 years
Water and Sewer System 40-50 years
No depreciation is provided for the general fixed assets of the City.
1
I
-51-
11 NOTES TO FINANCIAL STATEMENTS - 9
CITY OF FRIENDSWOOD, TEXAS
11
September 30, 1990
1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
F. DEBT SERVICE
The ad valorem tax rate is allocated each year between the General Fund
and the Debt Service Fund. The full amount estimated to be required for
debt service on general obligation debt is provided by the debt service
tax together with interest earned in the Debt Service Fund. Enterprise
Fund long-term debt requirements are provided from net revenues of the
fund.
G. GENERAL PROPERTY TAXES
All taxes due the City on real or personal property are payable at the
Office of the City Assessor-Collector and may be paid at any time after
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.
H. "MEMORANDUM ONLY" CAPTIONS
The "Memorandum Only" captions on the total columns of the combined
statements indicate that totals are presented only for overview
informational purposes. Data in these columns do not present financial
position, results of operations or changes in financial position in
conformity with generally accepted accounting principles.
I. ALLOWANCES
Allowance for doubtful accounts has been recorded at September 30, 1990
as follows:
Fund Type of Account Amount
Enterprise Fund Water and Sewer billings $10,000
General Fund Sanitation billings 2,000
!I
J. ENCUMBRANCES
Encumbrances represent the estimated amount of expenditures ultimately
to result when unperformed contracts (in progress at year-end) are
completed. Such encumbrances are reported as reservations of fund
balances and do not constitute expenditures or liabilities.
-52-
1
NOTES TO FINANCIAL STATEMENTS - 10
CITY OF FRIENDSWOOD, TEXAS
I!
September 30, 1990
I
3. DEPOSITS AND INVESTMENTS
11 At September 30, 1990, the carrying amount of the City's certificates of
deposit in banks was $3,900,000 and the cash balance was $806,701. Of the
11 bank balance, $200,000 was covered by federal depository insurance; U. S.
government securities and municipal bonds in the amount of $5,547,903 were
pledged as collateral for the balance. Such securities were held in
safekeeping in the City's name for the pledging bank at the pledging bank's
correspondent bank trust department in the government's name.
State law authorizes the City to invest in:
(a) obligations of the United States or its agencies or
instrumentalities;
(b) direct obligations of the State of Texas or its agencies;
(c) other obligations, the principal and interest on which are
unconditionally guaranteed or insured by the State of Texas or the
United States;
(d) obligations of state, agencies, counties, cities and other political
subdivisions of any state having been rated as to investment quality
by a nationally recognized investment rating firm and having received
a rating of not less than A or its equivalent;
(e) certificates of deposit issued by state and national banks domiciled
in Texas which are:
11 (1) guaranteed or insured by the Federal Deposit Insurance
Corporation, or its successor; or
(2) secured by obligations of paragraphs (a) to (d) above and that
have a market value of not less than the principal amount of
the certificates; and
(f) fully collateralized by direct repurchase agreements.
I
I
I
I
11 -53-
:I
NOTES TO FINANCIAL STATEMENTS - 11
CITY OF FRIENDSWOOD, TEXAS
II
September 30, 1990
II
4. FIXED ASSETS
A summary of changes in general fixed assets for the year ended
II
September 30, 1990 follows:
Balance at Retirements Balance atII
Sept. 30, and Sept. 30,
1989 Additions Reclassification 1990
Land $ 1,408,068 $ (11) $ 1,408,057 II
Buildings 2,035,927 $ 308, 557 - 2,344,848q 4
Improvements 9,676,762 1,828,071 (167,940) 11,336,893
II
Equipment 2,467,694 83,662 (298,292) 2,253,064
Construction in
progress 19,042 110.827 (80.496) 49,373
II
TOTAL $15,607,493 $2,331,117 $(546,739) $17,391,871
A summary of changes in Enterprise Fund fixed assets for the year ended II
September 30, 1990 follows:
Balance at Retirements Balance at
II
Sept. 30, and Sept. 30,
1989 Additions Reclassification 1990
Land $ 165,099 $ 53,363 $ 218,462
Plant and equipment 5,648,053 $3,796,854 (257,661) 9,187,246
II
Plant and equipment -
Blackhawk 9,749, 543 - - 9,749,543
Water and sewer lines 5,695,269 1,344,095 - 7,039,364
Drainage 1,171,064 - (1,171,064) -
Storm sewers 637,671 - (637,671) -
Construction in
progress 4,126,462 1,093.597 (5.059,980) 160,0791II
27,193,161 6,234,546 (7,073,013) 26,354,694
Less accumulated !I
depreciation 5,031,878 550.720 (383.513) 5.199.085
TOTAL $22,161,283 $5,683,826 $6,689,500 $21,155,609
!I
-54-
1
I[ NOTES TO FINANCIAL STATEMENTS - 12
Ir CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
II
5. COMMITMENTS
I
A. On October 1, 1981, the City entered into a contract with the
Friendswood Volunteer Fire Department, Inc. The Department shall
II furnish all fire suppression, rescue and emergency medical services,
utilizing apparatus and equipment owned by the City to all persons
and property located within the corporate limits of the City, or to
persons and property located outside the City when approved by
II Council. The City agrees to (1) provide the fire fighting equipment
and facilities for the use by the Department in fighting fire and
performing emergency medical services, (2) to provide funds for the
II capital equipment, operation and maintenance of the Department in
accordance with the annual budget as approved by Council, (3) to
provide dispatch services and (4) employ one paid firefighter and
II a paramedic for and on behalf of the Department.
B. On February22, 1985, the Cityentered into an agreement with Bay
g
Area Land Company, Ltd. (Partnership) whereby Bay Area Land Company
I
paid the City $1,200,000 in tap revenue fees to serve property
developed by Bay Area Land Company. The $1,200,000 payment is to
be repaid by the City from connection fees that are to be levied by
1! the City for areas within the property during the term of the utility
allocations.
11 C. The City entered into a contract with Gulf Coast Waste Disposal
Authority on December 12, 1974 to manage the Blackhawk Regional Waste
Treatment Plant. The City pays its pro rata share of the plant's
operating expenses and a management fee as set by the Blackhawk
II Advisory Committee. The City paid $514,463 to the Authority for
operation and management services for the year ended September 30,
1990.
D. The City renewed a contract with Best Waste Systems, Inc. on
November 1, 1987 for the collection of garbage, trash and other
Ir refuse within the corporate limits of the City twice a week. The
contract expires on October 31, 1993 with an option of renewal for
an additional five years. The residential collection fee is set at
$7.63 per month. Small commercial fees are $32.89 per month and
the fee varies for commercial container pick-up as to the size of
the container.
F
1r
II -55-
"mi
NOTES TO FINANCIAL STATEMENTS - 13
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
5. COMMITMENTS (continued)
F. The City had the following construction commitments at September 30,
I
1990:
Amount11
Paid to
Project Contract Percent Sept. 30,
Project Contractor Description Amount Complete 1990II
1990 Street Coenco Materials and $11,711 90 % $ 10,540
Improvement services for
II
Program street re-
surfacing.
Police No contract Materials and 56 38,833II
Department services for
Holding construction work
Facility performed by in-
II
Expansion house personnel
and outside
vendors.
II
FM 2351 Wayne Smith New project 2,000 2,000
Water Line & Associates required by
Across State due to
Clear Creek widening of
road.
24" Sewer In-house Material and - 10,277 11
Line along project service to
Cowarts replace 24"
II
Creek sewer line along
Cowarts Creek
from Deepwood Lift
Station to Green
Briar. 11
Fire hydrant In-house Install 18 53 10,031
II
improve- project new fire
ments hydrants
throughout
the City.
!I
Manhole In-house New multiyear 78 6,112
Rehalibi- project project. II
tation
II
-56-
II
1! NOTES TO FINANCIAL STATEMENTS - 14
CITY OF FRIENDSWOOD, TEXAS
September 30, 1989
II
5. COMMITMENTS (continued)
IAmount
Paid to
I Project Contractor Project Contract Percent Sept. 30,
Description Amount Complete 1990
II Surface Wayne Smith & Preliminary, $148,000 95 7,618
water Associates design, and
conversion inspection
engineering engineering
Ionentire
surface water
conversion
I project.
Sewer Line C.L. Davis Relocate sewer 600
FM 2351 & Company line required
I
from FM 518 to Clear by State due to
widening of the
Creek road.
IISurface Instrument Computer system 149,831 82 123,257
Water Control to provide control
Telemetry Service and monitoring
II Associated of pump operation
Public Safety to balance the
National water pressure
11 Association throughout the
of Business City and monitor
Federal pressure and
Licensing, flow at each
IF Inc. well facility.
Central In-house Preliminary 186
ri Service project phase of sewer
area improvements.
sewer im-
provements
I
$209,454
][
ir
11
-57-
401
NOTES TO FINANCIAL STATEMENTS - 15
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
6. LONG-TERM DEBT
Long-term debt at September 30, 1990 is comprised of the following:
11
Principal
Balance Current
Description Sept. 30. 1990 Portion
General Obligation Bonds
Refunding Bonds, Series 1986 $ 8,080,778 $ 715,000
Certificates of Obligation
Certificates dated December 1, 1988 due
in installments of $35,000 to $45,000
payable on March 1 of each year with
interest at 8. 375% payable each March 1
and September 1, until 1992. 165,000 35,000
Capital Leases
Radio Lease 1,529 1,529
Computer Lease (Police) 11.663 11.663
TOTAL 8,258,970 763,192
Revenue Bonds
Waterworks and Sanitary Sewer System Revenue
Bonds, Series 1969 due in installments of
$30,000 to $50,000 through March 1, 1999,
interest at 6.125 percent. 360,000 30,000
Waterworks and Sewer System Revenue
Bonds, Series 1979 due in installments
of $5,000 to $100,000 through March 1, 11
1996, interest at 5.50 to 6.50 percent. 505,000 100,000
Certificates of Obligation
Certificates dated December 1, 1988 due in
installments of $90,000 to $560,000 pay-
able on March 1 of each year with interest
at 6.9% to 8.375% payable each March 1
and September 1, until 2004. 4.200.000 90.000
TOTAL 5.065.000 220.000
TOTAL LONG-TERM DEBT $13,323,970 $ 983,192
!/
ir
-58-
F
I! NOTES TO FINANCIAL STATEMENTS - 16
I CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
II
6. LONG-TERM DEBT (continued)
IICapital lease requirements are as follows:
II
Total Present Value Amount
Year Ending Lease of Minimum Representing
Sept. 30 Payments Lease Payments Interest
II1991 $14,186 $13,192 $ 994
II The bond, certificate of obligation and capital lease requirements of the
City (general obligation and revenue) by maturity date are as follows:
I Year Ending Total
Sept. 30 Principal Interest Total
1991 $ 983,192 $ 882,727 $ 1,865,919
II 1992 1,065,000 814,627 1,879,627
1993 1,130,000 740,315 1,870,315
1994 1,200,000 659,312 1,859,312
II 1995 1,140,000 576,613 1,716,613
1996 1,240,000 490,304 1,730,304
1997 1,320,000 395,266 1,715,266
II 1998 1,150,000 304,671 1,454,671
1999 1,220,000 218,634 1,438,634
2000 725,834 718,498 1,444,332
2001 505,898 242,614 748,512
11 2002 512,209 157,634 669,843
2003 549,993 123,238 673,231
2004 581,844 82,756 664,600
11
TOTAL LONG-
TERM DEBT $13,323,970 $6,407,209 $19,731,179
Iri — -- ---- ___,--
II
II
I -59-
11
NOTES TO FINANCIAL STATEMENTS - 17
11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
P
I
6. LONG-TERM DEBT (continued)
Bond Refinancing
In prior years, the City defeased certain outstanding general obligation
and other bonds by placing the proceeds of the new bonds in an irrevocable
trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust accounts and the defeased bonds are not included
in the City's financial statements. At September 30, 1990, the following
outstanding bonds are considered defeased:
Outstanding11
Series Principal
Waterworks and Sewer System Unlimited Tax Bonds, Series 1962 $ 150,000
Waterworks and Sewer System Unlimited Tax Bonds, Series 1963 30,000 11
General Obligation Refunding Bonds, Series 1969 64,000
Drainage Improvement Bonds, Series 1973 90,000
General Obligation Bonds, Series 1974 575,000
Street Improvement Bonds, Series 1977 1,055,000
General Obligation Bonds, Series 1979 210,000
Street Improvement Bonds, Series 1982 1,190,000
Waterworks and Sewer System Combination Tax and Revenue
Bonds, Series 1964 300,000
Waterworks and Sewer System Combination Tax and Revenue
Refunding Bonds, Series 1972 660,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1967-A 450,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1972 450,000
Waterworks and Sewer System Combination Tax and Revenue Bonds,
Series 1974 610,000
WCID #108, Waterworks and Sewer System Combination Tax and
Revenue Bonds, Series 1972 390,000
WCID #108, Waterworks and Sewer System Unlimited Tax and
Revenue Bonds, Series 1981 145,000
$6,369,000
A number of limitations and restrictions are contained in the various bond
ordinances. The City has complied with all significant limitations and
restrictions.
-60
-
1
.w/
NOTES TO FINANCIAL STATEMENTS - 18
441011 CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
/0110
6. LONG-TERM DEBT (continued)
Changes in bond, certificate of obligation and capital lease amounts of
„_ the City (general obligation and revenue) for the year ended September 30,
1990 were as follows:
Balance at Balance at
Sept. 30, Sept. 30,
1989 Retirements 1990
114111 General Obligation
Bonds $ 8,750,778 $670,000 $ 8,080,778
Certificates of
Obligation 4,400,000 35,000 4,365,000
Capital Leases 29,437 16,245 13,192
Revenue Bonds 995,000 130,000 865,000
$14,175,215 $851,245 $13,323,970
7. PENSION PLAN
Ai
Plan Description
The City provides pension benefits for all of its eligible employees
through a nontraditional, joint contributory, defined contribution plan
17 in the state-wide Texas Municipal Retirement System (TMRS) , one of over
500 administered by TMRS, an agent multiple-employer public employee
retirement system. It is the opinion of the TMRS management that the plans
in TMRS are substantially defined contribution plans but they have elected
to provide additional voluntary disclosure to help foster a better
understanding of some of the nontraditional characteristics of the plan.
17 Benefits depend upon the sum of the employee's contributions to the plan,
with interest, and the city-financed monetary credits, with interest. At
the date the plan began, the City granted monetary credits for service
I! rendered before the plan began of a theoretical amount equal to two times
what would have been contributed by the employee, with interest, prior .to
establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee's accumulated
17
-61-
Iftw
mow
NOTES TO FINANCIAL STATEMENTS - 19
CITY OF FRIENDSWOOD, TEXAS Ohm,
September 30, 1990
7. PENSION PLAN (continued)
elm
Plan Description (continued)
contributions. In addition, the City can grant as often as annually lbw
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 Ohm
accumulated with interest if the current employee contribution rate and
City matching percent had always been in existence and if the employee's
salary had always been the average of his salary in the last three years. Olio
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. Illog
Members can retire at ages 60 and above with 10 or more years of service
or with 25 years of service regardless of age. The plan also provides
death and disability benefits. A member is vested after 10 years, but he
must leave his accumulated contributions in the plan. If a member
withdraws his own money, he is not entitled to the employer-financed
monetary credits, even if he was vested. The plan provisions are adopted 11110
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.
1110
Contributions
The contribution rate for the employees is 5 percent, and the City matching IMP
percent is currently 100 percent, both as adopted by the governing body
of the City. Under the state law governing TMRS, the City contribution
rate is determined annually by an actuary. Part of the City contribution
rate (the normal cost) is to fund the currently accruing monetary credits,
with the other part (the prior service contribution rate) calculated as
the level percent of payroll needed to amortize the unfunded actuarial
liability over the remainder of the plan's 25-year amortization period.
When the City periodically adopts updated service credits and increases
in annuities in effect, the increased unfunded actuarial liability is to
be amortized over a new 25-year period. Currently, the unfunded actuarial
liability is being amortized over the 25-year period which began 71
January, 1990. 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 71
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.
-62-
1
I! NOTES TO FINANCIAL STATEMENTS - 20
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
I!
7. PENSION PLAN (continued)
f Contributions (continued)
The City's total payroll in fiscal year 1990 was $3,040,766, and the City's
contributions were based on a covered payroll of $2,617,976. Both the City
and the covered employees made the required contributions, amounting to
$97,716 (3.25% of covered payroll for the months in calendar year 1989 and
3.49% for the months in calendar year 1990) for the City and $142,755 (5%)
for the employees. The City adopted changes in the plan since the previous
actuarial valuation, which had the effect of increasing the City's
contribution rate for 1990 by 0.03% of payroll. There were no related-
party transactions.
Funding Status and Progress
Even though the substance of the City's plan is not to provide a defined
benefit in some form, some additional voluntary disclosure is appropriate
due to the nontraditional nature of the defined contribution plan which
had an initial unfunded pension benefit obligation due to the monetary
credits granted by the City for services rendered before the plan began
and which can have additions to the unfunded pension benefit obligation
through the periodic adoption of increases in benefit credits and benefits.
Statement No. 5 of the Governmental Accounting Standards Board (GASB 5)
defines pension benefit obligation as a standardized disclosure measure
of the actuarial present value of pension benefits, adjusted for the
effects of projected salary increases, estimated to be payable in the
future as a result of employee service to date. The measure is intended
to help users assess the funding status of public employee pension plans,
assess progress made in accumulating sufficient assets to pay benefits when
due, and make comparisons among public employee pension plans.
The pension benefit obligation shown below is similar in nature to the
standardized disclosure measure required by GASB 5 for defined benefit
11 plans except that there is no need to project salary increases since the
benefit credits earned for service to date are not dependent upon future
salaries. The calculations were made as part of the annual actuarial
valuation as of December 31, 1989. 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
11 the market value of assets for TMRS as a whole was 108.7% of book value
as of December 31, 1989.
It
ir
-63-
3
NOTES TO FINANCIAL STATEMENTS - 21
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
I
7. PENSION PLAN (continued)
Pension Benefit Obligation
Annuitants currently receiving benefits $ 84,164
Terminated employees 259,975
Current employees
Accumulated employee contributions including
allocated invested earnings 981,934
Employer-financed vested 643,025
Employer-financed nonvested 234.927
Total 2,204,025 1
Net assets available for benefits, at
book value 1.866.216
UNFUNDED PENSION BENEFIT OBLIGATION $ 337,809
The book value of assets is amortized cost for bonds and original cost for
short-term securities and stocks. The actuarial assumptions used to
compute the actuarially determined City contribution rate are the same as
those used to compute the pension benefit obligation. The amounts above
reflect changes in actuarial assumptions since the previous actuarial
valuation, which had the effect of increasing the pension benefit
obligation by $16,171. Because of the one-year lag between the actuarial
rate goes into effect, the new actuarial assumptions will first affect the
1991 contribution rate for the City. The amounts above also reflect the
adoption of changes in the plan since the previous actuarial valuation,
which had the effect of increasing the pension benefit obligation by
$41,337.
Trend Information
NET ASSETS PENSION
AVAILABLE BENEFIT PERCENTAGE
YEAR FOR BENEFITS OBLIGATION FUNDED
1987 $1,265,501 $1,632,280 77.53 % 1
1988 1,582,085 1,878,557 84.22
1989 1,866,216 2,204,025 84.67
3
!I
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I
NOTES TO FINANCIAL STATEMENTS - 22
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
7. PENSION PLAN (continued)
Trend Information (continued)
UNFUNDED UNFUNDED PENSION
PENSION ANNUAL BENEFIT OBLIGATION
BENEFIT COVERED AS A PERCENTAGE
YEAR OBLIGATION PAYROLL OF COVERED PAYROLL
1987 $366,779 $2,516,687 14.57 %
1988 296,472 2,615,976 11.33
1989 337,809 2,617,976 12.90
Ten-year historical trend information presenting the TMRS progress in
accumulating sufficient assets to pay benefits when due is presented in
the TMRS December 31, 1989 Comprehensive Annual Financial Report.
8. INTERFUND TRANSACTION
Operating transfers during the year ended September 30, 1990 were as
follows:
Amount
Transferred
In (Out)
General Fund
Special Revenue Funds $ 3,044
Capital Projects Fund (287,189)
Enterprise Fund 348,749
64,604
11 Special Revenue funds
General Fund (3,044)
Capital Projects Fund
General Fund 287,189
Enterprise Fund
General Fund (348,749)
NET DIFFERENCE $ -0-
I
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-65-
3
NOTES TO FINANCIAL STATEMENTS - 23 11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
9. BLACKHAWK REGIONAL WASTE TREATMENT PLANT
The City has entered into an arrangement with the City of Houston, Harris
County MUD #55, and CDC, Inc. for operating and maintaining a joint waste
treatment plant known as Blackhawk Regional Waste Treatment Plant. All
participants share in the expenses of operation and maintenance based on
their respective percentages for use and fixed costs.
The percentages of ownership based on fund balances at September 30, 1990
are as follows:
City of Friendswood 52.71%
City of Houston 15.94
Harris County MUD #55 20.28
CDC, Inc. 11.07
100.00%
An annual P
budget of operations is submitted to the Gulf Coast Waste
g
Disposal Authority each year. The Gulf Coast Waste Disposal Authority is
the governing authority and consists of nine member (3 appointed by the
governor, 3 appointed by the commissioners court and 3 appointed by the
participants) .
As of September 30, 1990 the following audited financial information was
available from the operator:
Total assets $242,900
Total liabilities $242.900
Equity $ -0-
Total revenues $790,828
Total expenses 790.828
Net (Loss) $ -0-
1
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1
IINOTES TO FINANCIAL STATEMENTS - 24
IICITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
10. SEGMENT INFORMATION
IThe Enterprise Fund provides two services financed by user charges (water
and sewer) . Segment information for the year ended September 30, 1990
II follows (all non-direct revenues and expenses are treated as equally shared
between water and sewer system operations:
Water Sewer Total
II
Operating revenue $2,424,656 $1,048,116 $ 3,472,772
1 Operating expense 675.882 921,182 1 ,597 ,064
Operating income before
depreciation 1,748,774 126,934 1,875, 708
1 Depreciation expense 275.360 275,360 550,720
1 Net operating
income (loss) $1,473,414 $ (148,426) $ 1,324,988
IINon-operating income
(loss) $ (24,540) $ (24,539) $ (49,079)
11
ertplant and equipment * � �— *�Property,y, $ $ $26,354,694
Less allowance for
IIdepreciation * * 5,199,085
$ * $ * $21,155,609
II
Other segment information is shown below:
IICurrent capital contributions $ 339,462 $ - $ 339,462
Property, plant and equipment
additions 5,132,551 8,398 5,140,949
11 Net working capital 930,870 930,870 1,861, 740
Total assets * * 24,103,954
Bonds and certificates of
11 obligation * * 4,845,000
Total equity * * 18 561527
Ir * Not determinable
11
-67-
I
NOTES TO FINANCIAL STATEMENTS - 25 11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
11. CONTINGENCIES
The City was involved in several pending lawsuits at September 30, 1990.
A summary of the more significant of these follows:
In Cause No. 87CV1485, Donna Woodham v. City of Friendswood, et al, filed
in the District Court of Galveston County, Texas, 122nd Judicial District,
the plaintiff seeks recovery for damages resulting from a death of her
husband. Plaintiff alleges that the negligence of the City, Galveston
County, and Harris County, in the construction and maintenance of a bridge,
caused the death of her husband in an automobile accident on such bridge.
The City's general liability insurance carrier has assumed the defense of
said case.
In Cause No. 8820657, Trax Construction Co. , Inc. v. City of Friendswood,
et al, filed in the District Court of Galveston County, Texas 122nd
Judicial District, the plaintiffs seek recovery of $225,000 in damages
allegedly resulting from the City's breech of a street improvement
contract. A determination of potential liability has not been made in the
case.
In Cause No. 90CV790, Richie James Garren v. City of Friendswood, et al
filed in the District Court of Galveston County, Texas, 212th Judicial
District, the plaintiff seeks recovery of approximately $518,000 in damages
allegedly resulting from an automobile accident involving a City dump
truck. the City's general liability insurance carrier has assumed the
defense of said case.
The City's management has indicated that it will contest each of these
claims and is of the opinion that any liability resulting from such claims
will not have a material effect on the financial statements of the City
for the year ended September 30, 1990. 1
12. CONTRIBUTED CAPITAL
The following is a schedule of changes in contributed capital for the
Enterprise Fund:
1990 1989
Contributed capital at beginning of year $14,959,878 $14,816,039 1
Add developer and customer tap fees 339,463 143,839
Less
Reclassify net depreciable fixed assets
to General Fund (1,465,196) -
Reclassify developer and customer tap
fees required to be refunded (227,484) -
CONTRIBUTED CAPITAL AT END OF YEAR $13,606,661 $14,959,878
-68-
I
I
1
1
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
I
1
I
I
I
I
I
-6 9-
1
1
1
1
I
1
GENERAL FUND
The General Fund accounts for the resources used to
finance the fundamental operations of the City. It is
the basic fund of the City and covers all activities for
which a separate fund has not been established.
I
1
I
I
11
IF
I
-71-
!!
GENERAL FUND EXHIBIT A-1
IICOMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
IISeptember 30, 1990 and 1989
II1990 1989
ASSETS
IICash - including certificates of deposit $1,596,828 $1,410,459
Receivables - net, where applicable of
II allowances for doubtful accounts
Property taxes 271,665 245,473
Accounts 51,865 37,902
1 Due from other funds - -
Prepaid expenditures 53,784 32,957
II
TOTAL ASSETS $1,974,142 $1,726,791
—_—
LIABILITIES AND FUND BALANCES
IAccounts payable $ 194,601 $ 155,665
Compensated absences 434,179 416,243
IIAccrued expenditures 87,806 88,119
Deferred revenue 287,197 245,473
IIDue to other funds - 637
TOTAL LIABILITIES 1,003,783 906,137
IIReserved for prepaid expenditures 53,784 -
Reserved for encumbrances 54,372 277,072
I
Reserved for emergency operations 400,000 -
Reserved for parks 227 -
Unreserved
11 Undesignated 461,976 543,582
TOTAL FUND BALANCES 970,359 820,654
TOTAL LIABILITIES AND FUND BALANCES $1,974,142 $1,726,791
It
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:I
GENERAL FUND EXHIBIT A-2
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - 1 of 2
!!
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990lik
1990 I!
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL !!
REVENUES
Taxes 11
General property $3,445,137 $3,506,989 $ 61,852 $3,344,246
Sales 612,053 689,576 77,523 606,549
II
Franchise 416,400 419,062 2,662 400,986
Other 800 751 (49) 800
4,474,390 4,616,378 141,988 4,352,58111
Charges for services 572,977 595,244 22,267 542,911
Fines and forfeitures 170,000 166,636 (3,364) 190,106 II
Licenses and permits 155,832 240,294 84,462 143,105
II
Donations 4,735 3,496 (1,239) 56,348
Inter-governmental 50,284 50,984 700 53,464II
Interest 119,790 188, 374 68,584 141,542
Other 39,625 51,737 12.112 54.923 11
TOTAL REVENUE 5,587,633 5,913,143 325,510 5,534,980
II
EXPENDITURES
General government 1,417,672 1,258,050 159,622 1,167,194II
Public safety 2,170,670 2,153,037 17,633 2,038,066
Public works 1,186,073 1,196,889 (10,816) 1,108,423
Community development 304,066 275,218 28,848 250,120II
Community services 989,835 944,848 44.987 762,123
TOTAL EXPENDITURES 6,068,316 5,828,042 240,274 5,325,926
II
REVENUES OVER (UNDER)
EXPENDITURES (480,683) 85,101 565,784 209,054
II
II
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1
GENERAL FUND EXHIBIT A-2
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
11 1990
VARIANCE-
FAVORABLE 1989
11 BUDGET ACTUAL (UNFAVORABLE) ACTUAL
OTHER FINANCING SOURCES (USES) -
Operating transfers in 351,793 351,793 727,535
Operating transfers out (287,189) (287,189) - (548,674)
TOTAL OTHER FINANCING
SOURCES (USES) 64,604 64,604 - 178,861
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER USES $ (416,079) $ 149,705 $565,784 $ 387,915
!!
11
I!
I!
r
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me
4
PO
GENERAL FUND EXHIBIT A-3 k;
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL -
111
BY FUNCTION - 1 of 2 4
it
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 it
ri
1990
VARIANCE-
FAVORABLE 1989I!
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
General Government
Mayor and council $ 14,364 $ 17,424 $ (3,060) $ 14,503 11
City secretary 93,716 94,477 (761) 76,393
City manager 131,948 103,639 28,309 121,114
Finance 196,355 194,699 1,656 183,706 11
Data processing 137,026 114,931 22,095 88,911
Municipal courts 79,440 72,667 6,773 69,147
Administration 764.823 660.213 104.610 613,420II
Total General Government 1,417,672 1,258,050 159,622 1,167,194
Public Safety
11
Police 1,481,137 1,471,454 9,683 1,443,035
Communications 178,911 174, 325 4,586 161,519
Emergency management 32,623 32,356 267 27 ,865
Animal control 62,051 59,036 3,015 117 ,854 II
Fire 357,860 359,580 (1,720) 232,240
Fire marshall 58.088 56,286 1.802 55, 553
Total Public Safety 2,170,670 2,153,037 17,633 2,038,06611
Public Works
Administration 100,032 102,448 (2,416) 97,175
Streets 421,022 402,637 18,385 391,798
Drainage 99,909 98,985 924 87,489
Sanitation 565,110 592.819 (27.709) 531,961
Total Public Works 1,186,073 1,196,889 (10,816) 1,108,423 II
Community Development
Administration 59,689 56,609 3,080 46,723II
Planning and zoning 52,295 49,134 3,161 44,636
Engineering 105,796 86,484 19, 312 74,145
Inspection 86,286 82.991 3.295 84,616
Total Community Development 304,066 275,218 28,848 250,120
II
I
II
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4
I! GENERAL FUND EXHIBIT A-3
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL -
BY FUNCTION - 2 of 2
11 CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
11 1990
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
11 Community Services
Library 342,408 343,785 (1,377) 248,254
Parks and recreation 255,165 233,422 21,743 187,997
II Community activities 78,086 71,346 6,740 54,553
Swimming pool 63,950 61,035 2,915 48,448
Building operations 212,226 197,260 14,966 176,271
II Health services 38,000 38,000 - 46,600
Total Community Services 989,835 944,848 44,987 762,123
TOTAL EXPENDITURES $6,068,316 $5,828,042 $240,274 $5,325,926
Total Expenditures Before
IICapital Outlays $5,647,157 $5,461,212 $185,945 $5,098,472
Capital outlays 421,159 366,830 54.329 227,454
IITOTAL EXPENDITURES $6,068,316 $5,828,042 $240,274 $5,325,926
I
11
II
11
11
11
11
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111,
GENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 1 of 7 OP
iie
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 fill
111
1990
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUALrt
General Government
Mayor and CouncilI!
Supplies $ 204 $ 881 $ (677) $ 205
Other services and
charges 13,660 16,543 (2,883) 14,298
I!
Maintenance - - - -
Capital outlay 500 - 500 -
14,364 17,424 (3,060) 14,503
City Secretary
1!
Personal services 67,212 65,489 1,723 59,042
Supplies 2,516 2,892 (376) 1,335
Other services and11
charges 16,692 19,748 (3,056) 15,347
Maintenance 2,203 1,555 648 465
Capital outlay 5,093 4.793 300 204
93,716 94,477 (761) 76,393 11
City Manager
Personal services 114,081 89,750 24,331 105,22011
Supplies 3,350 3,323 27 1,380
Other services and
charges 14,117 10,251 3,866 14,130II
Maintenance 400 315 85 384
131,948 103,639 28,309 121,114
Finance II
Personal services 171,692 173,217 (1, 525) 156,994
Supplies 4,992 3,245 1,747 4,014
Other services andII
charges 16,971 15,433 1,538 21,373
Maintenance 300 404 (104) 766
Capital outlay 2,400 2,400 - 559II
196,355 194,699 1,656 183,706
II
II
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III
IR
GENERAL FUND EXHIBIT A-4
111 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 2 of 7
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
1990
VARIANCE-
41 FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
4! General Government (continued)
Data Processing
Personal services $ 27,709 $ 29,461 $ (1,752) $ 21,389
11 Supplies 16,305 15,720 585 8,502
Other services and
charges 10,150 6,332 3,818 2,768
!I Maintenance 32,485 26,434 6,051 21,783
Capital outlay 50.377 36.984 13.393 34,469
137,026 114,931 22,095 88,911
11 Municipal Courts
Personal services 72,490 66,739 5,751 63,366
Supplies 3,600 3,586 14 3,817
11 Other services and
charges 2,975 2,179 796 1,841
Maintenance 375 163 212 150
79,440 72,667 6,773 69,147
11
Administration
Supplies 1,600 625 975 584
Other services and
charges 763.223 659.588 103.635 612,836
764,823 660,213 104.610 613,420
Total General
Government 1,417,672 1,258,050 159,622 1,167,194
Public Safety
Police Service
Personal services 1,229,851 1,232,938 (3,087) 1,196,475
II Supplies 52,077 62,558 (10,481) 60,335
Other services and
charges 63,272 38,795 24,477 45,550
II Maintenance 65,624 64,995 629 66,620
Capital outlay 70,313 72.168 (1.855) 74,055
1,481,137 1,471,454 9,683 1,443,035
I
11
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GENERAL FUND EXHIBIT A-4
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 3 of 7 MP
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
■
1990 it-
VARIANCE-
FAVORABLE 1989 SP
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Public Safety (continued) 01
Communications
Personal services 173,793 169,155 4,638 154,680
Supplies 1,627 2,122 (495) 2,711 1.
Other services and
charges 791 1,008 (217) 916
Maintenance 2,700 2,040 660 799 ■
Capital outlay - - - 2.413
178,911 174,325 4,586 161,519
Emergency Management
Personal services 2,585 2,665 (80) 12,646
Supplies 2,625 1,697 928 1,511
Other services and
charges 1,800 1,691 109 749
Maintenance 1,563 3,394 (1,831) 10,559
Capital outlay 24.050 22,909 1.141 2.400
PP
32,623 32,356 267 27,865
Animal Control
Personal services 41,880 41,830 50 40,532 !!
Supplies 9,276 8,153 1,123 4,990
Other services and
charges 2,420 1,077 1,343 5,161
Maintenance 2,675 1,437 1,238 1,328 II
Capital outlay 5.800 6.539 (739) 65.843
62,051 59,036 3,015 117,854
11
Fire/EMS
Personal services 100, 357 95,853 4,504 63,757
Supplies 57,150 8,515 48,635 -
Other services and 11
charges 45,850 186,165 (140,315) 168,483
Maintenance 58,600 - 58,60011
-
Capital outlay 95,903 69,047 26.856 -
357,860 359,580 (1,720) 232,240
II
II
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II
IIGENERAL FUND EXHIBIT A-4
1 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 4 of 7
CITY OF FRIENDSWOOD, TEXAS
IYear ended September 30, 1990
1 1990
VARIANCE-
, FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
IIPublic Safety (continued)
Fire Marshal\
Personal services 42,724 43,791 (1,067) 43,522
1 Supplies 5,138 5,146 (8) 3,813
Other services and
charges 5,176 4,754 422 4,929
II Maintenance 4,850 2,595 2,255 2,194
Capital outlay 200 200 1,095
58,088 56,286 1.802 55,553
' Total Public Safety 2,170,670 2,153,037 17,633 2,038,066
Public Works
Administration
II Personal services 95,272 98,620 (3,348) 92,500
Supplies 2,755 2 ,509 246 2,534
Other services and
1 charges
Maintenance910 479 431 369
1,095 840 255 1,213
Capital outlay - - - 559
11 100,032 102 ,448 (2,416) 97,175
Streets
Personal services 179,386 181,023 (1,637) 176,648
II Supplies 61,435 48,427 13,008 46,923
Other services and
charges 118,518 122,048 (3,530) 111,181
II Maintenance 54,333 51,139 3,194 52,411
Capital outlay --7,350 7.350 4,635
421,022 402,637 18,385 391,798
IDrainage
Personal services 80,901 80,578 323 79,276
Supplies 900 440 460 -
II Maintenance 18,108 17,967 141 8,213
99,909 98,985 924 87,489
II Sanitation
Other charges and
services 565,110 592,819 (27,709) 531,961
Total Public Works 1,186,073 1,196,889 (10,816) 1,108,423
l[
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11
GENERAL FUND EXHIBIT A-4 II
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 5 of 7
11
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 II
1990 1
VARIANCE-
FAVORABLE 1989 I
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Community DevelopmentII
Administration
Personal services 58,225 55,730 2,495 45,385
Supplies 325 354 (29) 312
Other services and
charges 1,139 525 614 1,026
59,689 56,609 3,080 46,723 II
Planning & Zoning
Personal services 47,295 47,282 13 43,434
Supplies 1,010 1,037 (27) 522
II
Other services and
charges 3,490 500 2,990 335
Maintenance 300 315 (15) 345
II
Capital outlay 200 - 200 -
52,295 49,134 3,161 44,636
Engineering 1
Personal services 48,148 42,830 5,318 45,516
Supplies 2,500 1,563 937 2,161
Other services and
charges 48,848 36,179 12,669 10,849
Maintenance 1,050 917 133 378
Capital outlay 5,250 4.995 255 15,241
105,796 86,484 19,312 74,145 II
Inspection
Personal services 77 ,686 75,346 2,340 78,595II
Supplies 3,650 3,528 122 2,259
Other services and
charges 3,250 2,418 832 2,672
II
Maintenance 1,700 1.699 1 1,090
86,286 82,991 3.295 84,616
Total Community Development 304,066 275,218 28,848 250,120 1
II
II
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1
IIGENERAL FUND EXHIBIT A-4
1 STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 6 of 7
CITY OF FRIENDSWOOD, TEXAS
1 Year ended September 30, 1990
1 1990
VARIANCE-
' BUDGET FAVORABLE 1989
ACTUAL (UNFAVORABLE) ACTUAL
1 Community Services
Library
Personal services 201,846 198,620 3,226 194,035
1 Supplies 47,070 51,984 (4,914) 32,377
Other charges and
services 15,979 16,007 (28) 14,026
I Maintenance 937 728 209 1,183
Capital outlay 76,576 76,446 130 6,633
342,408 343,785 (1,377) 248,254
1 Parks and Recreation
Personal services 106,605 109,948 (3,343) 102,047
Supplies 22,125 21,559 566 15,646
1 Other charges and
services 45,304 47,878 (2,574) 37,882
Maintenance 27,683 20,277 7,406 21,904
1 Capital outlay 53,448 33,760 19.688 10,518
255,165 233,422 21,743 187,997
Community Activities
IIPersonal services 27,804 22,933 4,871 16,265
Supplies 12,078 12,142 (64) 9,510
Other charges and
11 services 28,025 28,711 (686) 23,782
Maintenance 3,430 3,655 (225) 3,940
Capital outlay 6,749 3,905 2.844 1,056
II78,086 71,346 6,740 54,553
Swimming Pool
Personal services 40,000 40,423 (423) 30,975
II Supplies 8,590 7,588 1,002 6,710
Other charges and
services 8,585 5,738 2,847 5,644
II Maintenance 3,375 4,040 (665) 3,029
Capital outlay 3,400 3,246 154 2,090
63,950 61,035 2,915 48,448
It
It
-83-
3
GENERAL FUND EXHIBIT A-4 II
STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 7 of 7
II
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 II
1990 I
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL II
Community Services (continued) I
Building Operations
Personal services 22,919 24,741 (1,822) 22,860
Supplies 22,992 11,809 11,183 12,585 II
Other charges and
services 134,362 129,116 5,246 118,639
Maintenance 18,403 19,922 (1,519) 16,503 II
Capital outlay 13.550 11.672 1.878 5.684
212,226 197,260 14,966 176,271
Health ServicesII
Other charges and
services 38,000 38,000 - 46.600
Total Community Services 989,835 944,848 44,987 762,123 II
TOTAL EXPENDITURES $6,068,316 $5,828,042 $240,274 $5,325,926
II
I
I
I
I
I
II
-84-
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 specified purposes. The following describes
the various types of Special Revenue Funds used by the
City:
Parks and Recreation Reserve Fund
11 This fund receives donations that are restricted for the
use of the parks and recreation programs of the City.
1 Mowing Liens Fund
' This fund records revenues and expenditures in
connection with the filing of liens on property where
the owner has failed to comply with the mowing
ordinance.
Fine Arts Council Fund
This fund accounts for the City's support of the
Friendswood Fine Arts Council and its programs for the
citizens of the City.
11 Fire/EMS Donation Fund
This fund receives donations that are restricted for
Fire/EMS capital outlays.
1
11
I
I
-85-
11
SPECIAL REVENUE FUNDS EXHIBIT B-1
COMBINING BALANCE SHEET
11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
PARKS AND FIRE/EMS TOTAL
RECREATION MOWING DONATIONS 1990 1989
ASSETS 1
Cash - including restricted
cash $2,052 $ 8,303 $32,332 $42,687 $14,622
Accounts receivables
Liens - 22.221 - 22.221 23,515 '
TOTAL ASSETS $2,052 $30,524 $32,332 $64,908 $38,137
LIABILITIES AND FUND BALANCES
LIABILITIES 1
Accounts payable $ 190 $ 190 $ 40
Deferred revenue
liens receivable 22.221 22. 221 23,515
TOTAL LIABILITIES 22,411 22,411 23,555
FUND BALANCES
Reserved for encumbrances $ - - 9,000 9,000 -
Reserved for parks 2,052 - - 2,052 7,602
Reserved for programs - - - - 1,287
Unreserved - 8.113 23,332 31,445 5.693
TOTAL FUND BALANCES 2.052 8.113 32.332 42,497 14.582
TOTAL LIABILITIES AND
FUND BALANCES $2,052 $30,524 $32,332 $64,908 $38,137
-86-
II
IISPECIAL REVENUE FUNDS EXHIBIT B-2
1 COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
CITY OF FRIENDSWOOD, TEXAS
II
Year ended September 30, 1990
1
PARKS AND FINE ARTS FIRE/EMS TOTAL
1 RECREATION MOWING COUNCIL DONATIONS 1990 1989
REVENUES
Interest $ 407 $1,392 $ 1,187 $ 2,986 $ 1,478
1 Other - 7.533 51.793 59.326 7.268
TOTAL REVENUES 407 8,925 52,980 62,312 8,746
1 EXPENDITURES
Public safety - - 20,648 20,648
II Community development - 6,505 6,505 7,630
Community services 4.200 4.200 6.410
TOTAL EXPENDITURES 4,200 6,505 20,648 31,353 14,040
IIREVENUES UNDER
EXPENDITURES (3,793) 2,420 32,332 30,959 (5,294)
1 OTHER FINANCING
SOURCES (USES)
I Operating
transfers
in - - -
3,674
Operating transfers
out (1.984) - (1,060) (3.044) -
IITOTAL OTHER
FINANCING SOURCES
I! (USES) (1.984) - (1,060) (3.044) 3.674
REVENUES AND OTHER
I! SOURCES OVER (UNDER)
EXPENDITURES AND
OTHER USES (5,777) 2,420 (1,060) 32,332 27,915 (1,620)
Fund balances at
beginning of year 7,829 5.693 1.060 - 14.582 16.202
!! FUND BALANCES AT
END OF YEAR $2,052 $8,113 $ -0- $32,332 $42,497 $14,582
1
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-87-
I
SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-3
COMPARATIVE BALANCE SHEETS
11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 198911
1990 1989
ASSETS
Cash - restricted - including
certificate of deposit $2.052, $7,829
TOTAL ASSETS $2,052 $7,829
FUND BALANCES
Reserved for park expenditures $2,052 $7,602
Reserved for programs - 227
TOTAL FUND BALANCES $2,052 $7,829
11
I
I
IP
IR
lik
11
!I
-88-
II
II
SPECIAL REVENUE FUND (PARKS AND RECREATION) EXHIBIT B-4
1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
1 CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
1
1990
1 VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
IREVENUES-
Interest income $ 480 $ 407 $ (73) $ 672
1 Other revenue - donations 1,771
TOTAL REVENUES 480 407 (73) 2,443
IEXPENDITURES
1 Community services Parks and recreation 4,200 4,200 - 3.410
REVENUES UNDER EXPENDITURES (3,720) (3,793) (73) (967)
IOTHER FINANCING USES
I
Operating transfers out (1,984) (1,984) - -
REVENUES UNDER EXPENDITURES
IIAND OTHER USES $(5,704) (5,777) $ (73) (967)
Fund balances at beginning
1 of year 7,829 8,796
FUND BALANCES AT
11 END OF YEAR $2,052 $7,829
II
II
II
II
-89-
3
SPECIAL REVENUE FUND (MOWING) EXHIBIT B-5
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989
1990 1989 11
ASSETS
Cash - including restricted cash $ 8,303 $ 5,733
Accounts receivable - liens 22.221 23.515
TOTAL ASSETS $30,524 $29,248
LIABILITIES AND FUND BALANCES s�^T
LIABILITIES
Accounts payable $ 190 $ 40
Deferred liens receivable 22.221 23.515
TOTAL LIABILITIES 22,411 23,555
FUND BALANCES
Unreserved 8.113 5.693
TOTAL LIABILITIES AND
FUND BALANCES $30,524 $29,248
11
1
I
I
-90-
1
11 SPECIAL REVENUE FUND (MOWING) EXHIBIT B-6
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
1
1990
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES
Interest $ 532 $ 1,392 $ 860 $ 741
Other revenue 3.100 7.533 4.433 5.497
TOTAL REVENUES 3,632 8,925 5,293 6,238
EXPENDITURES
Community Development
Inspections 7.655 6.505 1.150 7.630
REVENUES OVER
' (UNDER) EXPENDITURES $(4,023) 2,420 $6,443 (1,392)
Fund balance at beginning
of year 5.693 7.085
FUND BALANCE AT
END OF YEAR $ 8,113 $ 5,693
11
'
1
I
11
-91-
I
SPECIAL REVENUE FUND (FINE ARTS COUNCIL) EXHIBIT B-7
COMPARATIVE BALANCE SHEETS
11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989 I
1990 1989 I
ASSETS
Cash - restricted $ -0- $1,060
FUND BALANCES
Reserved for programs $ -0- $1,060 I
I
I
I
I
I
I
I
-92-
1
SPECIAL REVENUE FUND (FINE ARTS COUNCIL) EXHIBIT B-8
STATEMENT OF REVENUES, EXPENDITURES AND CHANCES
IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
I
1990
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
' REVENUES
Interest $ -0- $ -0- $ -0- $ 65
11 EXPENDITURES
11 Community services -0- -0- -0- 3,000
REVENUES OVER (UNDER)
EXPENDITURES (2,935)
11
OTHER FINANCING SOURCES
Operating transfers in 3,674
Operating transfers out 1,060 1.060 - -
REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES $(1,060) (1,060) $ -0- 739
11
Fund balance at g
be innin
g
of year 1,060 321
11 FUND BALANCE AT
END OF YEAR $ -0- $ 1,060
11
I
It
-93-
11
SPECIAL REVENUE FUND (FIRE/EMS DONATIONS) EXHIBIT B-10
COMPARATIVE BALANCE SHEET I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989
1990 1989
ASSETS
Cash - restricted $ 32,332 $ -0-
FUND BALANCES 1
Reserve for encumbrances $ 9,000 $ -0-
Unreserved 23.332 -
$ 32,332 $ -0-
1
I
1
1
1
1
1
-94-
1
SPECIAL REVENUE FUND (FIRE/EMS DONATIONS) EXHIBIT B-11
11 STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
1990
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
REVENUES
Donations $43,000 $51,793 $ 8,793 $ -
Interest - 1.187 1.187 -
TOTAL REVENUE 43,000 52,980 9,980 -
EXPENDITURES
Public Safety
' Fire/EMS 29.648 20.648 9.000 -
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES $13,352 32,332 $18,980 -
Fund balance at beginning
of year -0- -
FUND BALANCE AT END OF YEAR $32,332 $ -
1
I
I
11
11
11
I
-95-
I
1
e
1
1
e
1
DEBT SERVICE FUND
This fund is used to account for the
accumulation of resources and for the
payment of principal and interest on
general long-term debt of the City.
1
I
I
I
11
11
I
I
-97-
3
DEBT SERVICE FUND EXHIBIT C-1 11
COMPARATIVE BALANCE SHEETS
11
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989 '
1990 1989
ASSETS
11
Cash - including certificate of deposit $ 57,045 $280,793
Taxes receivable 100,221 96,513 '
Other accounts receivable 263 -
TOTAL ASSETS $157,529 $377 ,306 11
LIABILITIES AND ND BALANCES 3
LIABILITIES
Deferred revenue $100,221 $ 96,513 11
FUND BALANCES !I
Unreserved, designated for debt service 57 .308 280,793
TOTAL LIABILITIES AND FUND BALANCES $157,529 $377,306 I
I
11
I
I
I
11
-98-
11
IIDEBT SERVICE FUND EXHIBIT C-2
II STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
IICITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
11
1990
II VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
II
REVENUES
II Taxes $1,044,385 $1,050,144 $ 5,759 $1,218,610
Interest 30,000 30,968 968 42,017
TOTAL REVENUES 1,074,385 1,081,112 6,727 1,260,627
EXPENDITURES
IIPrincipal retirement
Tax and revenue bonds 670,000 670,000 - 655,000
Capital leases 16,245 16,245 - 32,029
11 Certificate of obligation 35,000 35,000 - -
721,245 721,245 - 687,029
II Interest and fiscal charges
Tax bonds 556,550 556,550 - 594,663
Certificates of obligation 15,284 15,284 - 11,649
Capital leases 3,336 3,338 (2) 4,104
Pearland contract 7,000 6,354 646 7,259
Paying agent fees 3,200 1,826 1,374 1,024
585,370 583,352 2,018 618,699
TOTAL EXPENDITURES 1,306,615 1,304,597 2,018 1,305,728
11 REVENUES (UNDER)
EXPENDITURES $ (232,230) (223,485) $ 8,745 (45,101)
IIFund balances at beginning of
year 280,793 325,894
II FUND BALANCES
AT END OF YEAR $ 57,308 $ 280,793
-99-
I
I
1
i
1
CAPITAL PROJECTS FUND
This fund is used to account for financial
resources to be used for the acquisition
and construction of major capital
facilities.
1
1
I
r
1
I
r
I
-101-
I
CAPITAL PROJECTS FUND EXHIBIT D-1
COMPARATIVE BALANCE SHEETS I
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989 '
1990 1989
ASSETS
Cash - including certificates of deposit $626,437 $355,050
Restricted cash - including certificates of I
deposit - 42.578
TOTAL ASSETS $626,437 $397,628 1
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 40,232 $ 70,318 1
TOTAL LIABILITIES 40,232 70,318
FUND BALANCES
Reserved for encumbrances 231,550 230,991
Designated for construction 354.655 96.319
TOTAL FUND BALANCES 586,205 327,310
TOTAL LIABILITIES AND FUND BALANCES $626,437 $397,628
1
1
1
1
1
-102-
1
IICAPITAL PROJECTS FUND EXHIBIT D-2
1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
I
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990
I
1990
I
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
II
REVENUES
Interest $ 16,435 $ 43,121 $ 26,686 $ 31,687
1 Other 146 171 25 165
TOTAL REVENUES 16,581 43,292 26,711 31,852
1 EXPENDITURES - CAPITAL OUTLAYS
Public Works
1 Streets 374,097 10,540 363,557 590,600
Drainage 176.989 3.400 173.589 -
551,086 13,940 537,146 590,600
II Public Facilities
City Hall 79,915 57.646 22.269 78,568
79,915 57.646 22.269 78,568
ITOTAL EXPENDITURES -
CAPITAL OUTLAYS 631,001 71.586 559,415 669,168
II REVENUES UNDER
EXPENDITURES (614,420) (28,294) 586,126 (637,316)
1 OTHER FINANCING SOURCES (USES)Operating transfers in 287,189 287,189 - 545,000
Certificates of obligation
IIproceeds - - - 200,000
REVENUES AND OTHER
SOURCES UNDER EXPENDITURES $(327,231) 258,895 $586,126 107,684
II
Fund balances at beginning
11 of year 327.310 219.626
FUND BALANCES AT
11 END OF YEAR $586,205 $ 327,310
II
-103-
I
1
1
1
1
I
' ENTERPRISE FUND
The Enterprise Fund is established to
account for operations which are intended
to be self-supporting through user charges.
The City of Friendswood operates the water
and sewer system on this basis.
I
I
1
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I
I
I
-105-
3
ENTERPRISE FUND (WATER AND SEWER)
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989 1
1990 1989
ASSETS
CURRENT ASSETS
Cash - including certificates of deposit $ 1,812,353 $ 508, 351
Accounts receivable - less allowance
for uncollectibles 416,668 320, 580
Accrued interest 25,683 30,826
Due from other funds - 637
Prepaid expenses 5.896 1,332
TOTAL CURRENT ASSETS 2,260,600 861,726
RESTRICTED ASSETS
Cash - including certificates of deposit 546,518 1,346,189
Blackhawk operating fund equity 109.279 109,279
TOTAL RESTRICTED ASSETS 655,797 1,455,468
PROPERTY, PLANT AND EQUIPMENT - at cost
Land 218,462 165,099
Buildings, improvements and equipment 25,976,153 22,901,600
Construction in progress 160.079 4,126,462
26,354,694 27,193,161
Less allowance for depreciation 5.199.085 5.031,878 1
TOTAL PROPERTY, PLANT AND EQUIPMENT 21,155,609 22,161,283
OTHER ASSETS 1
Unamortized certificate of obligation
costs 31,948 34,230
1
I
TOTAL ASSETS $24,103,954 $24, 512, 707
-106-
1
II EXHIBIT E-1
I
1
II1990 1989
I
LIABILITIES AND FUND EQUITY
LIABILITIES
II Current liabilities (payable from
current assets)
Accounts payable $ 90,860 $ 155, 563
Compensated absences 41,248 38,624
I
Accrued expenses 12,917 21,723
Contracts payable 26,351 32,439
171,376 248,349
II Current liabilities (payable from
restricted assets)
Accrued interest 30,247 30,909
II Current portion of long-term debt 220,000 130,000
Deposits 48,320 50,865
Impact fee refunds payable 227,484
526,051 211,774
1 Long-term liabilities
Certificates of obligation 4,200,000 4,200,000
1 Revenue bonds 865,000 995,000
5,065,000 5,195,000
Less current portion 220,000 130,000
4,845,000 5.065,000
IITOTAL LIABILITIES 5,542,427 5,525,123
FUND EQUITY
1 Contributed capital
Municipality 13,301,153 14,766,844
Developers/customers 305.508`i 193,034
' 13,606,661 14,959,878
Retained earnings
Reserved for revenue bond retirement 208,320 292,087
Reserved for construction 932,079 1,412,887
IUnreserved 3,814,467 2,322,732
TOTAL RETAINED EARNINGS 4.954,866 4,027,706
1 TOTAL FUND EQUITY 18,561.527 18,987,584
IITOTAL LIABILITIES AND FUND EQUITY $24,103,954 $24,512,707
1
-107-
11
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-2
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -
BUDGET AND ACTUALII
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 II
1
1990
VARIANCE-
FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
Operating revenues
Water charges $2,204,992 $2,409,020, $ 204,028 $1,989,018 II
Sewer charges 980,000 1,015,005 35,005 992,283
Water tap fees - - - 12,025
Fees and penalties 15,500 34,258 18,758 7,150 II
Other - 14,489 14,489 34,416
3,200,492 3,472,772 272,280 3,034,892
II
Operating expenses before
depreciation -
See Exhibit E-3 2,052,832 1,597,064 455,768 1.443,986
II
OPERATING INCOME
BEFORE DEPRECIATION 1,147,660 1,875,708 728,048 1,590,906
II
Depreciation expense 550,720 550.720 - 604,726
OPERATING INCOME 596,940 1,324,988 728,048 986,180 1
Non-operating income (expense)
Interest on investments 50,231 164,388 114,157 171,835
Interest expense (498,437) (56,275) 442,162 (61,900) II
Loss on disposal of fixed
assets (174,667) (157,192) 17,475 - 1
(622,873) (49,079) 573,794 109,935
INCOME BEFORE OPERATING
TRANSFERS (25,933) 1,275,909 1,301,842 1,096,115 1
Operating transfers out (348,749) (348.749) - (727,535)
NET INCOME (LOSS) $ (374,682) 927,160 $1,301,842 368,580 II
Retained earnings at 1
beginning of year 4,027.706 3,659,126
RETAINED EARNINGS ATII
END OF YEAR $4,954,866 $4,027,706
1
-108-
I
IIENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-3
ISTATEMENT OF OPERATING EXPENSES - BUDGET AND ACTUAL
CITY OF FRIENDSWOOD, TEXAS
IYear ended September 30, 1990
I 1990
VARIANCE-
I FAVORABLE 1989
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
I Water
Personal services $ 182,672 $ 203,744 $(21,072) $ 172,601
Supplies 45,307 58,192 (12,885) 54,085
Other services and charges 565,823 169,651 396,172 149,943
I Maintenance 73.158 89,525 (16.367) 50,901
866,960 521,112 345,848 427,530
Sewer
I Personal services Supplies 99,549 80,071 19,478
7,089 96,039
15,835 8,746 11,266
Other services and charges 639,430 594,830 44,600 522,527
Maintenance 87.917 82.767 5.150 88 ,659
I
842,731 766,414 76,317 718,491
Operation Administration
I Personal services 60,601 52,720 7,881 56,057
Supplies 1,471 3,343 (1,872) 631
Other services and charges 1,400 862 538 1,163
I Maintenance - 412 (412) 75
63,472 57,337 6,135 57,926
Finance Administration
I (Utility billing)
Personal services 121,987 116,296 5,691 113,436
Supplies 6,850 6,966 (116) 6,203
I Other services and charges 114,505 91,823 22,682 107,528
Maintenance 2.153 2,942 (789) 1,623
245,495 218,027 27,468 228,790
IEmergency Management
Personal services - - - 2,878
Maintenance - - - 8,371
I - - - 11,249
Engineering
I poraR a' se-p ( 2,992 2,992 - --
Impact fee study 31,182 31.182
/ 34,174 34,174 - -
L.I Operating expenses before
depreciation $2,052,832 $1,597,064 $455,768 $1,443,986
I
-109-
1
11 ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-4
SCHEDULE OF REVENUE BONDS PAYABLE
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
DATE OF OUTSTANDING
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30,
DESCRIPTION RATE ISSUE ISSUE MATURITY 1990
Waterworks and Sanitary
Sewer System Revenue
Bonds, Series 1969 6.125% 5-1-69 $360,000 3-1-99 8360.000
360,000
Waterworks and Sanitary
Sewer System Junior Lien
Revenue Bonds,
Series 1979 5.50 6-1-79 50,000 3-1-91 50,000
5.50 6-1-79 50,000 3-1-92 50,000
5.50 6-1-79 100,000 3-1-93 100,000
5.50 6-1-79 100,000 3-1-94 100,000
5.50 6-1-79 100,000 3-1-95 100,000
5.50 6-1-79 5,000 3-1-96 5,000
6.50 6-1-79 50,000 3-1-91 50,000
6.50 6-1-79 50,000 3-1-92 50.000
$505,000
1
TOTAL REVENUE BONDS PAYABLE $865,000
I
I
I
I
I
I!
-111-
11
ENTERPRISE FUND (WATER AND SEWER FUND) II
REVENUE BONDS PAYABLE - BY MATURITY DATE
II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990II
11
II
YEAR ENDING TOTAL
SEPT. 30 PRINCIPAL INTEREST TOTAL
1991 $ 130,000 $ 46,906 $ 176,906 II
1992 135,000 38,916 173,916
1993 135,000 31,022 166,022
1994 135,000 23,378 158,378 II
1995 140,000 15,581 155,581
1996 45,000 10,244 55,244
1997 45,000 7,503 52,503II
1998 50,000 4,594 54,594
1999 50.000 1,531 51.531
$ 865,000 $179,675 $1,044,675 II
I
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I
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I
I
3
-112-
1
EXHIBIT E-5
1
REVENUE BONDS
WATERWORKS AND WATERWORKS AND
SANITARY SEWER SYSTEM SANITARY SEWER SYSTEM
REVENUE BONDS JUNIOR LIEN REVENUE BONDS
SERIES 1969 SERIES 1979
PRINCIPAL INTEREST PRINCIPAL INTEREST
$ 30,000 $ 21,131 $100,000 $ 25,775
35,000 19,141 100,000 19,775
35,000 16,997 100,000 14,025
35,000 14,853 100,000 8,525
40,000 12,556 100,000 3,025
40,000 10,106 5,000 138
45,000 7,503
50,000 4,594
' 50.000 1.531
$360,000 $108,412 $505,000 $ 71,263
11
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-113-
il
ENTERPRISE FUND (WATER AND SEWER FUND) EXHIBIT E-6
CERTIFICATE OF OBLIGATION - BY MATURITY DATE
II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 1
YEAR ENDING TOTAL II
SEPT. 30 PRINCIPAL INTEREST TOTAL
1991 $ 90,000 $ 308,368 $ 398,368 1
1992 100,000 300,412 400,412
1993 115,000 291,409 406,409
1994 130,000 281,150 411,150II
1995 145,000 269,634 414,634
1996 260,000 252,675 512,675
1997 285,000 230,173 515,173 II
1998 305,000 208,037 513,037
1999 335,000 185,790 520,790
2000 415,000 159,332 574,332
2001 450,000 128,512 578,512II
2002 485,000 94,843 579,843
2003 525,000 58,231 583,231
2004 560,000 19,600 579,600 1
$4,200,000 $2,788,166 $6,988,166
__� ---_-_ _= 1
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-114-
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1
TRUST FUND
This fund has been established by the City
to account for 1776 Park assets held by the
City in a trustee capacity or as an agent
for individuals or other funds.
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11
11
11
-115-
TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-1 !I
COMPARATIVE BALANCE SHEETS
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989
1990 1989 11
ASSETS
Restricted assets
Cash $24,833 $22,817
Land 57.200 57.200
TOTAL ASSETS $82,033 $80,017
FUND BALANCES
Reserved for endowments $67,200 $67,200
Unreserved/undesignated 14.833 12.817
TOTAL FUND BALANCES $82,033 $80,017
11
1
1
1
1
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-116-
' TRUST FUND (NON-EXPENDABLE TRUST) EXHIBIT F-2
' COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND BALANCES
' CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 and 1989
11
1990 1989
' REVENUES
Interest $ 2,016 $ 1, 549
LFund balances at beginning of year 80.017 78 ,468
' FUND BALANCES AT END OF YEAR $82,033 $80,017
1
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-117-
1
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1
GENERAL FIXED ASSETS ACCOUNT GROUP
This account group is established to account for the
fixed assets owned by the City exclusive of those
relating to the Enterprise Fund or Fiduciary Fund.
Expenditure transactions to acquire general fixed assets
occur in the General Fund, Special Revenue Funds and
Capital Projects Fund.
11
11
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"Al
GENERAL FIXED ASSETS EXHIBIT G-1 11
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS -
BY SOURCE
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 and 1989
1990 1989
General fixed assets
Land $ 1,408,057 $ 1,408,068
Buildings 2,344,484 2,035,927
Improvements 11,336,893 9,676,762
Equipment 2,253,064 2,467,694
Construction in progress 49,373 19,042
TOTAL GENERAL FIXED ASSETS $17,391,871 $15,607,493
Investment in General Fixed Assets from
Capital Projects Funds
General obligation bonds $ 4,572,653 $ 4,572,653
Time warrants and certificates of
obligation 291,112 244,500
Federal and state grants 3,035,223 1,196,016
Municipality 8,600,174 8,789,783
11
Donations 892,709 804,541
TOTAL INVESTMENT IN
GENERAL FIXED ASSETS $17,391,871 $15,607,493
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11
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-120-
Ai
406 GENERAL FIXED ASSETS EXHIBIT G-2
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
Alitt
CITY OF FRIENDSWOOD, TEXAS
11 September 30, 1990
11
CONSTRUCTION
FUNCTION AND IN
ACTIVITY LAND BUILDINGS IMPROVEMENTS EQUIPMENT PROGRESS TOTAL
General Government
Inspections $ 24,202 $ 24,202
City Hall $ 453.389 $ 586,335 $ 17,031 320.031 1,376,786
453,389 586,335 17,031 344,233 1,400,988
Public Safety
Police 90,265 13,127 554,555 657,947
II Fire 18,000 267,322 676,478 961,800
Animal Control 65,968 27,086 93,054
Emergency
II Management 36.736 36.736
18,000 423,555 13,127 1,294,855 1,749,537
Public Works
II Street and
drainage 101,991 162,780 10,647,864 161,030 11,073,665
Sanitation 3.500 254,997 30.514 289,011
11 105,491 162,780 10,902,861 191,544 11,362,676
Community Services
Library 28,838 375,199 12,383 180,141 596,561
Parks and
recreation 802,339 116,219 389,368 225,199 1,533,125
Swimming pool 680.396 2,123 17,092 699,611
11 831,177 1,171,814 403,874 422,432 2,829,297
Construction in
IIprogress $49,373 49,373
$1,408,057 $2,344,484 $11,336,893 $2,253,064 $49,373 $17,391,871
II
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-121-
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OP
GENERAL FIXED ASSETS EXHIBIT G-3
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - OP
BY FUNCTION AND ACTIVITY
0
CITY OF FRIENDSWOOD, TEXAS
OP
Year ended September 30, 1990 iig
1111
4.
RETIREMENTS
BALANCE AT AND BALANCE AT
SEPT, 30, 1989 ADDITIONS RECLASSIFICATIONS SEPT. 30, 1990
General Government
Inspections $ 16,289 $ 7,913 $ 24,2021!
City Hall 1,420,065 54,885 $ 98,164 1.376.786
1,436,354 62,798 98,164 1,400,988
IP
Public Safety 16
Police 663,351 80,206 85,610 657,947
Fire 952,565 93,524 84,289 961,800
Animal control 85,101 7,953 93,054 !!
Emergency
management 13,826 22.910 36.736
1,714,843 204,593 169,899 1,749,537
Public Works
Street and
drainage 9,443,095 1,808,735 178,165 11,073,665 11
Sanitation 309.026 - 20.015 289.011
9,752,121 1,808,735 198,180 11,362,676
Community services II
Library 545,003 51,558 596,561
Parks and
recreation 1,460,757 72,368 1,533,125 11
Swimming pool 679.373 20.238 699.611
2,685,133 144,164 2,829,297
11
Construction in
progress 19.042 110.827 80,496 49.373
TOTAL $15,607,493 $2,331,117 $ 546,739 $17,391,871 II
II
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11
-122 110
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11
11
11
GENERAL LONG-TERM DEBT ACCOUNT GROUP
11
The purpose of this account group is to
account for general obligation indebtedness
to be retired primarily from future
assessment of property taxes.
1
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-123-
OP
GENERAL LONG-TERM DEBT
STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT
CITY OF FRIENDSWOOD, TEXAS
Year ended September 30, 1990 OP
OP
BALANCE AT
OCT. 1,
00
1989
Amount available in Debt Service Fund $ 280,793
;p,
Amount to be provided for retirement
of long-term debt 8,699,4221
TOTAL AVAILABLE AND
TO BE PROVIDED $8,980,215
Classification of debt
Lease obligation $ 29,437
Certificates of obligation 200,000
6:
General obligation bonds 8,750,778
TOTAL GENERAL LONG-TERM DEBT $8,980,21511
11
11
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-124-
1
EXHIBIT H-1
I
1
DEBT SERVICE BALANCE AT
1 OBLIGATIONS FUND SEPT. 30,
RETIRED OPERATIONS 1990
' $ - $(223,485) $ 57,308
' 721.245 223.485 8.201.662
$721,245 $ -0- a $8,258,970
$ 16,245 $ 13,192
35,000 165,000
670.000 8.080.778
$721,245 $8,258,970
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-125-
I
IGENERAL LONG-TERM DEBT EXHIBIT H-2
ISCHEDULE OF GENERAL LONG-TERM DEBT
CITY OF FRIENDSWOOD, TEXAS
IISeptember 30, 1990
II DATE OF OUTSTANDING
INTEREST DATE OF AMOUNT OF FINAL AT SEPT. 30,
IDESCRIPTION RATE ISSUE ISSUE MATURITY 1990
Certificate of
Obligation 8.375 12-01-88 $ 35,000 03-01-91 $ 35,000
II8.375 12-01-88 40,000 03-01-92 40,000
8.375 12-01-88 45,000 03-01-93 45,000
8.375 12-01-88 45,000 03-01-94 45,000
IITOTAL CERTIFICATES OF OBLIGATION PAYABLE 165,000
I Refunding bonds
Series 1986 6.25 08-15-86 715,000 03-01-91 715,000
6.50 08-15-86 790,000 03-01-92 790,000
6.75 08-15-86 835,000 03-01-92 3 835,000
II7.00 08-15-86 890,000 03-01-94 890,000
7.10 08-15-86 855,000 03-01-95 855,000
7.20 08-15-86 935,000 03-01-96 935,000
7.30 08-15-86 990,000 03-01-97 990,000
7.40 08-15-86 795,000 03-01-98 795,000
7.50 08-15-86 835,000 03-01-99 835,000
r
7.75 08-18-86 310,834 03-01-00 310,834
7.80 08-18-86 55,898 03-01-01 55,898
7.85 08-18-86 27,209 03-01-02 27,209
7.90 08-18-86 24,993 03-01-03 24,993
r
7.90 08-18-86 21,844 03-01-04 21,844
TOTAL BONDS PAYABLE 8,080,778
ICapital Leases
Radios 10.75 09-15-85 24,000 12-15-90 1,529
IBM computer - police 9.50 01-01-87 40,569 01-01-91 11,663
I TOTAL CAPITAL LEASES 13 192
I ,
ITOTAL GENERAL LONG-TERM DEBT $8,258,970
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-127-
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GENERAL LONG-TERM DEBT 11
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 1 of 2 1
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 1
I
YEAR ENDING TOTAL II
SEPT. 30 PRINCIPAL INTEREST TOTAL
1991 $ 763,192 $ 527,453 $ 1,290,645 1
1992 830,000 475,299 1,305,299
1993 880,000 417,884 1,297,884
1994 935,000 354,784 1,289,784
1995 855,000 291,398 1,146,398 II
1996 935,000 227,385 1,162,385
1997 990,000 157,590 1,147,590
1998 795,000 92,040 887,040 II
1999 835,000 31,313 866,313
2000 310,834 559,166 870,000
2001 55,898 114,102 170,000II
2002 27,209 62,791 90,000
2003 24,993 65,007 90,000
2004 21,844 63.156 85.000 1
TOTAL GENERAL
LONG-TERM DEBT $8,258,970 $3,439,368 $11,698,338
II
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-128-
II
IIEXHIBIT H-3
1
1
IIREFUNDING BONDS - SERIES 1986
1 CURRENT INTEREST BONDS COMPOUND INTEREST BONDS
INTEREST INTEREST
RATE PRINCIPAL INTEREST RATE PRINCIPAL INTEREST TOTAL
II6.25% $ 715,000 $ 514,106 7.75% $440,778 $864,222 $ 1,229,106
6.50 790,000 466,087 1,256,087
II 6.75 835,000 412,231 1,247,231
7.00 890,000 352 ,900 1,242,900
7.10 855,000 291,398 1,146,398
II
7.20 935,000 227,385 1,162,385
7.30 990,000 157,590 1,147,590
7.40 795,000 92,040 887,040
7.50 835,000 31,313 866,313
II7.75% $310,834 $559,166 870,000
7.80 55,898 114,102 170,000
7.85 27,209 62,791 90,000
1 7.90 24,993 65,007 90,000
7.90 21.844 63.156 85.000
1 $7,640,000 $2,545,050 $440,778 $864,222 $11,490,050
II
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II
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-129-
3
GENERAL LONG-TERM DEBT
GENERAL LONG-TERM DEBT - BY MATURITY DATE - 2 of 2
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 1
CERTIFICATES OF OBLIGATION CAPITAL LEASES
YEAR RADIOS I
ENDING INTEREST INTEREST
SEPT. 30 RATE PRINCIPAL INTEREST TOTAL RATE PRINCIPAL INTEREST
1991 8.375% $ 35,000 $12,353 $ 47,353 10.75% $ 1,529 $ 27
1992 8.375 40,000 9,212 49,212
1993 8.375 45,000 5,653 50,653
1994 8. 375 45,000 1,884 46,884
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$165,000 $29,102 $194,102 $1,529 $ 27
1
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1
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-130-
1
EXHIBIT H-3
1
' CAPITAL LEASES TOTAL CAPITAL LEASES
' IBM COMPUTER - POLICE NET PRESENTVALUE OF AMOUNT
INTEREST MINIMUM REPRESENTING
RATE PRINCIPAL INTEREST LEASE PAYMENTS INTEREST TOTAL
' 9.50% $11,663 $ 967 $13,192 $ 994 $14,186
1
$11,663 $ -967 $13,192 $ 994 $14,186
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-131-
:I
GENERAL LONG-TERM DEBT EXHIBIT H-4 :I
COMPOUND BONDS - ACCRUED INTEREST SCHEDULE
II
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990 1
YEAR ENDING $310,834 $ 55,898 $27,209 $24,993 $21,844 II
SEPT. 30 @ 7.75% 0 7.80% (d 7.85% @ 7.90% 0 7.90%
1987 $ 31, 384 $ 5,775 $ 2,876 $ 2,703 $ 2,398II
1988 26,523 4,811 2,362 2,188 1,915
1989 28,576 5,186 2,547 2,361 2,066
1990 30,793 5,590 2,747 2,547 2,230II
1991 33,178 6,026 2,963 2,748 2,406
1992 35,750 6,496 3,195 2,966 2,596
1993 38,520 7,003 3,446 3,200 2,801
11
1994 41,506 7 ,549 3,717 3,453 3,022
1995 44,723 8,138 4,008 3,725 3,261
1996 48,188 8,773 4,323 4,020 3,518
1997 51,923 9,457 4,662 4,337 3,797II
1998 55,948 10,195 5,028 4,680 4,096
1999 60,282 10,990 5,423 5,050 4,420
2000 31,872 11,847 5,849 5,449 4,769II
2001 6,266 6,297 5,879 5,146
2002 3, 348 6,344 5,553
2003 3,357 5,991
2004 3.171 II
$559,166 $114,102 $62,791 $65,007 $63,156
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-132-
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ISCHEDULES
I
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I 133
I
COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS EXHIBIT I-1 1
CITY OF FRIENDSWOOD, TEXAS
II
September 30, 1990
I
ACCOUNT INTEREST MATURITY
DESCRIPTION NUMBERS RATE DATE AMOUNT II
Certificates of Deposit
Texas Commerce Bank, II
Friendswood, Texas 5163 7.98 % 10-01-90 $ 200,000
5166 8.00 10-08-90 200,000 II
5173 7.99 10-15-90 250,000
5174 8.02 10-22-90 250,000 II
5175 8.04 10-29-90 200,000
5176 7.78 11-05-90 200,000 II
5177 7.78 11-12-90 200,000 II
5181 7.83 11-19-90 200,000
5182 7.83 11-26-90 200,000 II
5183 7.82 12-03-90 200,000
8041 7.66 12-10-90 200,000 II
8042 7.64 12-17-90 200,000
II
8335 7.68 01-22-91 200,000
8336 7.69 01-15-91 200,000 II
8337 7.55 12-26-90 200,000
8338 7.58 01-02-91 200,000 II
8339 7.65 01-08-91 200,000
11
8840 7.59 11-23-90 200,000
8839 7.60 01-24-91 200,000 1
TOTAL ALL FUNDS $3,900,000
1
-134-
1
IISCHEDULE OF DELINQUENT TAXES RECEIVABLE EXHIBIT I-2
1 CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
1
DELINQUENT TAXES RECEIVABLE
I
YEAR GENERAL DEBT SERVICE
FUND FUND TOTAL
I
1989 $ 85,221
56,046 $ 26,719 $111,940
1988 20,712 76,758
1987 27,256 9,172 36,428
1986 23,430 10,424 33,854
II
1985 21,784 7,984 29,768
1984 17,242 7,268 24,510
1983 25,187 10,950 36,137
1 1982 6,330
3,085 3,291 9,621
1981 1,425 4,510
1980 1,997 917 2,914
1 1979 1,557
1,133 439 1,996
1978 282 1,415
1977 448 189 637
1976 579 312 891
I
1975 337 128 465
1974 33 9 42
1 TOTAL DELINQUENT
TAXES RECEIVABLE $271,665 $100,221 $371,886
1
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-135-
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1
1
' STATISTICAL SECTION
(The City has not had any special assessments
' in the last ten fiscal years. )
(The City has no legal debt margin. )
1
1
1
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-137-
1
GENERAL REVENUE - BY SOURCE II
CITY OF FRIENDSWOOD, TEXAS 1
Last Ten Fiscal Years
1
CHARGES FOR LICENSES
FISCAL SERVICE FINES AND AND INTER- 1
YEAR TAXES (SANITATION) FORFEITURES PERMITS GOVERNMENTAL
1980-81 $2,416,105 $275,870 $129,824 $ 49,580 $143,760 1
1981-82 2,188,070 289,034 111,975 75,292 311,695
1982-83 2,602,930 344,178 102,609 180,972 97,271 1
1983-84 3,285,018 431,941 128,694 167,484 335,077
1984-85 (1) 4,018,210 532,701 138,302 138,074 535,955 I
1985-86 (2) 4,608,491 470,177 120,195 148,740 124,114 1
1986-87 5,272,714 525,592 184,359 124,913 94,015
1987-88 5,328,869 545,130 142, 516 125,083 48,985 1
1988-89 5,571,191 542,911 190,106 143,105 53,464
1989-90 5,666,522 595,244 166,636 240,294 50,984 1
Includes the General, Special Revenue and Debt Service Funds. 1
(1) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement
District) during the previous year. II
(2) Includes annexation of the Forest Bend Subdivision (WCID No. 108) during
the year. 1
Source - Accounting records of the City. II
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-138-
EXHIBIT I
1
' INTEREST
INCOME OTHER TOTAL
' $ 75,172 $ 31,250 $3,121,561
125,888 84,124 3,186,078
91,593 123,088 3,542,641
112,516 42,473 4,503,203
' 127,909 41,551 5,532,702
' 88,521 28,850 5,589,088
91,011 45,342 6,337,946
196 ,647 106,057 6,493 ,287
185,037 118,539 6,804,353
222,328 114,559 7,056,567
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-139-
11
GENERAL GOVERNMENTAL EXPENDITURES - BY FUNCTION II
CITY OF FRIENDSWOOD, TEXAS 1
Last Ten Fiscal Years
1
CULTURE
FISCAL GENERAL PUBLIC PUBLIC AND IIYEAR GOVERNMENT SAFETY _ WORKS SANITATION RECREATION
1980-81 $ 626,120 $ 754,259 $ 452,316 $292,896 $208,292 1
1981-82 680,792 856,648 474,575 288,813 299,028
1982-83 714,608 1,188,214 596,633 336,635 314,853 II
1983-84 (1) 812,289 1,311,923 958,188 436,299 390,361
1984-85 954,086 1,388,760 523,653 512,504 373,412 II
1985-86 (2) 1,221,176 1,737,503 723,779 484,851 453,408 I
1986-87 1,473,875 1,870,538 718,117 519,527 692,525
1987-88 (3) 1,143,024 1,934,317 1,128,195 - - II
1988-89 (3) 1,167,194 2,038,066 1,108,423 - -
1989-90 1,258,050 2,173,685 1,196,889 - - 11
Includes the General, Special Revenue and Debt Service Funds. 1
(1) Includes annexation of the Wedgewood subdivision (Clearwoods
Improvement District) during the year. II
(2) Includes annexation of the Forest Bend subdivision (WCID No. 108)
during the year.
II
(3) Function classifications have been revised to reflect the City's
internal records. I
Source - Accounting records of the City.
II
II
-140-
1
EXHIBIT II
1
1
COMMUNITY
1 COMMUNITY COMMUNITY COUNSELING DEBT
DEVELOPMENT SERVICES CENTER SERVICE TOTAL
1 $ 58,179 $ 302,732 $2,694,794
42,243 414,440 3,056,539
46,582 497,405 3,694,930
48,014 983,609 4,940,683
I! 67,919 997,114 4,817,448
1 78,966 1,064,286 5,763,969
35,000 1,314,714 6,624,296
$ 249,684 $ 814,380 - 1,344,693 6,614,293
257,750 768,533 - 1,305,728 6,645,694
281,723 949,048 - 1,304,597 7,163,992
11
111
AO
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-141-
Irk
TAX REVENUES - BY SOURCE EXHIBIT III
ItCITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years
I
BUSINESS
GENERAL GROSS INDUSTRIAL
FISCAL TOTAL PROPERTY GENERAL RECEIPTS DISTRICT BEVERAGE
YEAR TAXES TAXES SALES TAX TAXES TAXES* TAX
1980-81 $2,416,105 $1,446,071 $415,228 $178,789 $371,622 $4,395
1981-82 2,188,070 1,599,521 99,497 185,708 302,064 1,280
1982-83 2,602,930 2,113,715 336,234 151,746 - 1,235
1983-84 3,285,018 2,727,942 351,431 204,275 - 1,370
1984-85 (1) 4,018,210 3,319,149 424,498 273,184 - 1,379
1985-86 4,608,491 3,826,171 483,629 297,585 - 1,106
1986-87 (2) 5,272,714 4,421, 343 517,943 332,432 - 996
1987-88 5,328,869 4,442,540 509,551 375,755 - 1,023
1988-89 5,571,191 4,562,856 606,549 400,986 - 800
1989-90 5,666, 522 4, 557,133 689, 576 419,062 - 751
I
* Contract with Industrial District from 1976 to 1980 a new contract from 1980
to 1982 with a guarantee of at least $300,000 a year.
(1) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement
District) during the previous year.
1 (2) Includes annexation of the Forest Bend subdivision (WCID No. 108) during
the previous year.
Source - Accounting records of the City.
r
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-143-
11
PROPERTY TAX LEVIES AND COLLECTIONS 11
CITY OF FRIENDSWOOD, TEXAS
11
Last Ten Fiscal Years
PERCENT
FISCAL TAX TAX TOTAL CURRENT TAX OF LEVY t
YEAR YEAR RATE TAX LEVY COLLECTIONS COLLECTED
1980-81 (1) 1980 $0.775 $1,459,086 $1,394,770 95.59% 1
1981-82 1981 0.775 1,586,474 1,531,878 96.56
1982-83 1982 0.735 2,068,817 1,989,751 96.18 t
1983-84 1983 0.720 2,491,879 2,400,000 96.32 1
1984-85 (2) 1984 0.720 3,348,234 3,224,304 96.30
1985-86 1985 0.7095 3,870,699 3,680,672 95.10
1986-87 (3) 1986 0.695 4,369,541 4,245,550 97.16
1987-88 1987 0.695 4,351,363 4,248,363 97.63 I1988-89 1988 0.695 4,553,066 4,433,139 97.37
1989-90 1989 0.695 4,531,537 4,427,153 97.70 1
(1) Assessment ratio increased in 1980 to 100% of market value per $100 I
valuation.
(2) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement I
District) during the previous year.
(3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during the
previous year.
Source - Tax assessor/collector's records. IF
1
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-144-
It
11
EXHIBIT IV
II
11 TOTAL OUTSTANDING
COLLECTION DELINQUENT
AS A TAXES AS A
DELINQUENT TOTAL PERCENT OF OUTSTANDING PERCENT OF
I
TAX TAX TOTAL DELINQUENT TOTAL
COLLECTIONS COLLECTIONS TAX LEVY TAXES LEVY
11 $ 51,301 $1,446,071 99.11% $135,756 9.30%
67,643 1,599,521 100.82 142,473 8.98
11 123,964 2,113,715 102.17 123,882 5.99
50,915 2,450,915 98.36 169,380 6.80
11
55,528 3,279,832 97.96 232,879 6.96
II112,025 3,792,697 97.98 328,281 8.48
133,831 4,379,381 100.23 318,441 7.29
II119,686 4, 368,049 100.38 301,754 6.93
79,695 4,512,834 99.12 341,986 7. 51
II74,484 4,501,637 99. 34 371,886 8.21
II
II
II
II
II
II
11
II
-145-
II
ASSESSED AND ESTIMATED ACTUAL VALUE II
OF TAXABLE PROPERTY
CITY OF FRIENDSWOOD, TEXAS 1
Last Ten Fiscal Years II
REAL PROPERTY PERSONAL PROPERTY
ESTIMATED ESTIMATED II
FISCAL TAX ASSESSED ACTUAL ASSESSED ACTUAL
YEAR YEAR VALUE VALUE VALUE VALUE
II
1980-81 1980 (1) $184,417,212 $184,417,212 $ 5,084,410 $ 5,084,410
1981-82 1981 199,752, 590 199,752,590 6,432,770 6,432,770 '
1982-83 1982 291,156,780 291,156,780 7,295,310 7,295,310
1983-84 1983 436,557,744 436,557,744 6,389,970 6, 389,970 1
1984-85 1984 588,137,580 588,137,580 10,731,940 10,731,940
II
1985-86 1985 636,203,660 636,203,660 9,688,000 9,688,000
1986-87 1986 726,482,470 726,482,470 34,305,290 34,305,290 1
1987-88 1987 732,642,639 732,642,639 30,811,878 30,811,878
1988-89 1988 690,062,040 690,062,040 39,852,170 39,852,170 II
1989-90 1989 745,236,230 745,236,230 14,605,530 14,605,530
II
(1) Assessment ratio increased in 1980 to 100% of market value per $100
valuation. II
(2) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement
District) during the previous year.
II
(3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during
the previous year.
II
Source - Tax assessor/collector's records.
1
1
1
1
-146-
I
11 EXHIBIT V
I
11
Ir TOTAL TOTAL
ESTIMATED ASSESSED TAXABLE RATIO OF ASSESSED
ASSESSED ACTUAL VALUE OF ASSESSED VALUE TO ESTIMATED
11 VALUE VALUE EXEMPTIONS VALUE ACTUAL VALUE
$189,501,622 $189,501,622 $ 1,987,238 $187,514,384 100 %
11 206,185,360 206,185,360 4,380,567 201,804,793 100
298,452,090 298,452,090 85,672,799 212,779,291 100
442,947,714 442,947,714 96,853,365 346,094,349 100
11 598,869, 520 598,869,520 133,837,020 465,032,500 100
645,891,660 645,891,660 111,788,728 534,102,932 100
760,787,760 760,787,760 132,076,820 628,710,940 100
763,454,517 763,454,517 137,359,095 626,095,422 100
729,914,210 729,914,210 95,185,210 634,729,000 100
759,841,760 759,841,760 106,734,872 653,106,888 100
I
I
1
-147-
II
PROPERTY TAX RATES AND TAX LEVIES - DIRECT AND II
OVERLAPPING GOVERNMENTS
CITY OF FRIENDSWOOD, TEXAS 1
Last ten fiscal years II
FRIENDSWOOD CLEAR CREEK
11
INDEPENDENT INDEPENDENT
FISCAL TAX CITY OF SCHOOL SCHOOL
YEAR YEAR FRIENDSWOOD DISTRICT DISTRICT I
TAX RATE
1980-81 (1) 1980 $ .775 $ 1.77 $ .82II
1981-82 1981 .775 1.86 .88
1982-83 1982 .735 1.83 .83
1983-84 1983 .720 1.79 .82
II
1984-85 1984 .720 1.46 .82
1985-86 1985 .7095 1.46 .92
1986-87 1986 .695 1.41 .92
1987-88 1987 .695 1.41 .95 II
1988-89 1988 .695 1.41 .95
1989-90 1989 .695 1.55 1.075 IITAX LEVIES
1980-81 1980 $1,459,086 $3,123,225 $19,977,989
11
1981-82 1981 1,586,474 3,567,480 22,647,479
1982-83 1982 2,068,817 4,854,834 25,331,425
1983-84 1983 2,491,879 5,233,942 27,542,883
1984-85 (2) 1984 3,348,234 5,123,436 31,308,670II
1985-86 1985 3,870,699 5,802,869 41,309,808
1986-87 (3) 1986 4,369,541 6,205,039 44,892,680
1987-88 1987 4,351,363 6,511,149 43,580,000II
1988-89 1988 4,553,066 6,841,786 46,654,423
1989-90 1989 4,531,537 7,642,133 69,656,556
II
(1) Assessment ratio increased in 1980 to 100% of market value per $100
valuation.
II
(2) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement
District) during the previous year.
(3) Includes annexation of the Forest Bend subdivision (WCID No. 108) during II
the previous year.
Source - Accounting records of the City and tax assessor/collector's records. II
1
1
-148-
EXHIBIT VI
CLEAR CREEK
Q&IJ(ESTO0 BAIDIIS DRAINAGE
C0O0IY COUNTY DISTRICT
� TAX RATE
~ ' ' '
� 9l5 �l.I�O �.l00
0�
m� .300 .276 .100
.300 .360 .150
.395 .377 .150
.395 .277 .150
.385 .27878 .150
.385 .26786 '150
.385 .293I6 .I50
.415 .49293 .150
.445 .560 .150
TAX LEVIES
812,957'655 $175,846,/69 $163,441
18'673.000 218,001,248 256,004
18,137`783 238,964,304 486,722
26.640,815 270.971'084 506,281
,
28,6O7 39l 312'288,939 609,854
29'255'237 321,822'000 742'703
25,228,511 311,338.358 740'222
31,021'686 317,419,015 763'695
34.128'033 316'340'000 771'330
36,957,169 310,287,582 781,367
�
w�
-149-
I
RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED II
VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA
CITY OF FRIENDSWOOD, TEXAS 11
Last Ten Fiscal years II
GROSS LESS DEBT IIFISCAL ESTIMATED ASSESSED BONDED SERVICE
YEAR POPULATION VALUE DEBT FUND BALANCE
1980-81 11,169 $189,501,622 $ 5,217,000 $143,168 I
1981-82 11,770 206,185,360 6,560,000 145,075
1982-83 12,530 298,452,090 6,470,500 153,535 II
1983-84 (1) 17,365 442,947,714 8,423,163 197,749 II
1984-85 18,500 598,869,520 8,046,000 200,813
1985-86 (2) 22,500 645,891,660 10,650,778 459,306 I
1986-87 23,000 760,787,760 10,065,778 518,998
1987-88 22,500 763,454,517 9,405,778 325,894 II
1988-89 23,500 729,914,210 8,750,778 280,793 I
1989-90 22,710 759,841,760 8,080,778 57,308
I
(1) Includes annexation of the Wedgewood subdivision (Clearwoods Improvement
District) during the previous year. II
(2) Includes annexation of the Forest Bend subdivision (WCID No. 108) during
the previous year. I
Source - Tax assessor/collector's records.
II
I
II
11
II
-150-
I
EXHIBIT VII
1
1
RATIO OF NET
BONDED DEBT
BONDED TO ASSESSED NET BONDED DEBT
DEBT VALUE PER CAPITA
11 $ 5,073,832 2.7% $454
6,414,925 3.1 545
6,316,965 2.1 504
8,225,414 1.9 473
7,845,187 1.3 424
10,191,472 1.6 453
9,546,780 1.3 415
9,079,884 1.2 404
8,469,985 1.2 360
8,023,470 1.06 353
11
11
11
-151-
1
COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT EXHIBIT VIII II
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1990
II
PERCENTAGE CITY OF
NET DEBT APPLICABLE FRIENDSWOOD'S I
NAME OF GOVERNMENTAL UNIT OUTSTANDING TO CITY OF FRIENDSWOOD SHARE OF DEBT
Friendswood Independent
School District $ 4,667,365 100.00% $ 4,667,365 II
Clear Creek Independent
School District 58,155,000 3.94 2,291,307II
Galveston County 67,908,993 5.68 3,857,227
Harris County 410,165,924 .15 615,249 11
Clear Creek Drainage
District 16,050 99.95 16,042 II
Harris County Toll
Road Authority 522,646,488 .15 783,970II
Harris County Flood
Control District 283,638,056 .15 425,457
II
Port of Houston
Authority 94,660,000 .15 141,990
II
TOTAL NET OVERLAPPING DEBT 12,798,607
Net General Obligation Bonded Debt - City of Friendswood 8.023,470II
TOTAL NET DIRECT AND
OVERLAPPING DEBT $20,822,077 1
II
I
II
II
-152-
11
II
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES EXHIBIT IX
FOR GENERAL LONG-TERM DEBT TO TOTAL
IGENERAL EXPENDITURES
CITY OF FRIENDSWOOD, TEXAS
IILast Ten Fiscal Years
11 INTEREST
AND (2) RATIO OF DEBT SERVICE
II FISCAL TOTAL TOTAL TO TOTAL GENERAL
FISCAL AGENT DEBT GENERAL GOVERNMENTAL
YEAR PRINCIPAL FEES SERVICE EXPENDITURES EXPENDITURES
11 1980-81 $ 99,336 $203,396 $ 302,732 $2,694,794 11.23 %
1981-82 110,631 303,809 414,440 3,056,539 13.56
I! 1982-83 123,759 373,646 497,405 3,694,930 13.46
I! 1983-84 356,000 627,609 983,609 4,940,683 19.91
1984-85 377,608 619,506 997,114 4,817,448 20.70
II1985-86 (1) 484,427 579,859 1,064,286 5,763,969 18.46
1986-87 620,386 694,328 1,314,714 6,624,296 19.85
11 1987-88 690,323 654,370 1,344,693 6,614,293 20.33
II1988-89 687,029 618,699 1,305,728 6,645,694 19.65
1989-90 721,245 583,352 1,304,597 7,163,992 18.21
(1) Excludes debt defeased through refunding of $10,032,000.
(2) Includes the General, Special Revenue and Debt Service funds.
11 Source - Accounting records of the City.
g
I!
-153-
I!
TAX RATE DISTRIBUTION EXHIBIT X
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years
GENERAL DEBT SERVICE TOTAL TAX
I! TAX YEAR FUND FUND RATE
1980 $ .5311 $ .2434 $ .775 (1)
I! 1981 .53 .245 .775
1982 .4835 .2515 .735
1983 .502 .218 .720
1984 .507 .213 .720
1985 .5192 .1903 .7095
1986 .481 .214 .695
1987 .52 .175 .695
1988 .50746 .18754 .695
1989 .5333 .1617 .695
(1) Assessment ratio increased in 1980 to 100% market value per $100 valuation.
Source - City's tax ordinances.
11
11
!!
Ir
1!
i
-155-
II
REVENUE BOND COVERAGE II
CITY OF FRIENDSWOOD, TEXAS
II
Last Ten Fiscal years
II
OPERATING NET OPERATING
NUMBER NUMBER EXPENSES REVENUE
FISCAL OF WATER OF SEWER OPERATING BEFORE AVAILABLE FORII
YEAR CUSTOMERS CUSTOMERS REVENUE DEPRECIATION DEBT SERVICE
1980-81 3,215 3,048 $1,109,296 $ 753,350 $ 355,946
11
1981-82 3,388 3,212 1,134,886 756,498 378,388
1982-83 3,659 3,430 1,450,044 861,935 588,109II
1983-84 4,998 4,686 2,141,284 1,072,741 1,068,543
1984-85 5, 338 5,061 2,104,796 1,193,709 911,087
1985-86 6,497 6,238 4,205,395 1,311,526 2,893,869
II
1986-87 6,514 6,324 3,066,581 1,487,668 1,578,913
1987-88 6,626 6,432 3,071,181 1,526,297 1, 544, 884II
1988-89 6,731 6,539 3,034,892 1,443,986 1,590,906
1989-90 6,968 6,719 3,472,772 1,597,064 1,875,708
11
Source - Accounting records of the City.
II
I!
1!
I!
I!
I!
-156-
I!
11
EXHIBIT XI
1
1
REVENUE BOND
DEBT SERVICE REQUIREMENTS
PRINCIPAL INTEREST TOTAL COVERAGE
11 $ 65,000 $84,552 $149,552 2.38
70,000 99,005 169,005 2.24
70,000 91,113 161,113 3.65
70,000 96,515 166,515 6.42
120,000 92,475 212,475 4.29
120,000 83,129 203,129 14.25
125,000 77,566 202,566 7.79
125,000 69,720 194,720 7.93
125,000 61,900 186,900 8.51
11
130,000 56,275 186,275 10.07
11
I
I
It
r
I
-157-
1
PRINCIPAL TAXPAYERS EXHIBIT XII II
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1990
I
PERCENT OF TAXABLE
TAXABLE ASSESSED VALUE IIASSESSED TO TOTAL TAXABLE
NAME OF TAXPAYER NATURE OF BUSINESS VALUE ASSESSED VALUE
1. Exxon Oil & Gas $ 40,284,970 6.18 % 1
2. Southwestern Bell IITelephone Utility Co. 11,061,650 1.69
3. Crosstimber Production Oil & Gas 7,431,960 1.14
4. Texas-New Mexico Power Utility Co. 6,974,810 1.07 I
5. Friendwood Retirement Retirement
Center Home 6,530,080 1.00 II
6. Florida Federal Savings
and Loan Apartments 5,092,160 .78II
7. Houston Lighting and
Power Utility Co. 2,690,430 .41 1
8. Salem Square Apartments Apartments 2,646,900 .40
9. Bankers United Life 1
Assurance Apartments 2,633,350 .40
10. Baywood Limited Apartments 2.494.000 .38 1
87,840,310 13.45
All others 565.266.578 86.55 1
TOTAL $653,106,888 100.00 %
s_ 1
1
Source - Tax assessor/collector's records. 11
11
1
-158-
II
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS EXHIBIT XIII
1 CITY OF FRIENDSWOOD, TEXAS
Las Ten Fiscal Years
1
(B) (C)
I FISCAL (A) BANK PROPERTY
YEAR CONSTRUCTION DEPOSITS VALUE
II1981 $13,197,941 $ 32,614,000 $189,501,622
1982 15,102,000 48,616,000 206,185,360
II1983 31,211,841 62,256,000 298,452,090
1984 31,379,139 67,111,934 486,902,520
II1985 28,891,533 72,641,562 598,869,520
II1986 26,920,850 78,645,866 645,891,660
1987 17,337,714 90,775,074 760,787,760
II1988 19,712,294 133,829,940 763,454,517
1989 14,998,749 148,356,238 729,914,210
1 1990 37,068,553 32,671,080 (1) 759,841,760
II
(A) Source - City inspection records.
II
(B) Source - Texas Commerce Bank and Community National Bank, Friendswood.
(C) Source - Tax assessor/collector's records.
II (1) Information for Texas Commerce Bank not available.
1
1
I
1
1
-159-
II
IIDEMOGRAPHIC STATISTICS EXHIBIT XIV
II
CITY OF FRIENDSWOOD, TEXAS
Last Ten Fiscal Years
I
FISCAL -
I! YEAR ENDED POPULATION- PER CAPITA MEDIAN UNEMPLOYMENT
SEPT. 30 A INCOME B AGE-B RATE-C
II1981 11,169 * 27.9 3. 6%
1982 11,770 * 27.7 3.8
II1983 12,530 $23,915 27.5 7.9
1984 17,365 21,573 27.6 5.9
II1985 18,500 24,570 27.9 8 .6
II1986 22,500 27,735 27.9 12.6
1987 23,000 29,273 29.7 10. 3
II1988 22,500 29,743 29.7 6.8
1989 23,500 * * 6.4
II1990 22,710 * * 5.0
II Note A - Estimated
Note B - Source: Clear Lake Area Chamber of Commerce
II
Note C - Source: Texas Employment Commission, Houston Standard
Metropolitan Statistical area
I
*Information not provided is not available.
II
11
I
II
11
-161-
II
SCHEDULE OF INSURANCE IN FORCE - 1 of 2 II
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1990
II
LOCATION
OR II
INSURER POLICY NO, ACTIVITY COVERAGE
Employers Casualty EEP-E-047835 Electronic Fire, EC, V&MM II
Co. Equipment
Employers Casualty CEF-F-874899 Contractors Fire, EC, V&MM
Co. EquipmentII
Texas Employers 0107815 Public Elected and
Insurance Officials Appointed 1
American States MP4407 Volunteer AD&D
Insurance Firemen
National Casualty PL901469 City Comprehensive
Law Enforcement IIEmployers of Texas TCP-F-E419008 City Multi-Peril
Lloyds
Employers Casualty Co. BAA-F-649005 Fleet All City Vehicles II
Employers of Texas FMC-D-1L6920 City Fire, EC, Windstorm
Lloyds V&MMII
Omaha Property and 01939707723 Bougainvilla Flood-Building and
Casualty ContentsII
Omaha Property and 01932137639 Library Flood-Building and
Casualty Contents 1
Omaha Property and 0I3003462748 Library Annex Flood-Building and
Casualty Contents
II
Omaha Property and 012001944988 Counseling Flood-Building and
Casualty Center Contents
Omaha Property and 0I3001775851 Forest Bend Flood Building and II
Casualty Civic Contents
II
II
II
-162-
41
11 EXHIBIT XV
1
1
AMOUNT PERIOD OF
I OF COVERAGE
COVERAGE BEGINNING ENDING PREMIUM
II $ 317,091 12-01-89 12-01-90 $ 1,712
261,859 12-01-89 12-01-90 3,842
II
1,000,000 12-19-89 12-19-90 8,746
I
50,000 03-27-90 03-27-91 2,146
II
1,000,000 12-19-89 12-19-90 19,411
II
2,944,300 12-01-89 12-01-90 70,368
II500,000 12-01-89 12-01-90 62,697
II2,818,800 12-01-89 12-01-90 6,761
3500/141,300 11-08-90 11-08-91 496
II 2000/700 S2
163,400/100,000 08-03-90 08-03-91 717
II
55,000/91,600 04-23-90 04-23-91 504
II
27,500/10,500 500 04-27-90 -/ 500 04 27-91 151
11
100,000/10,000 07-20-90 07-20-91 330
11
I!
II
-163-
p
SCHEDULE OF INSURANCE IN FORCE - 2 of 2
CITY OF FRIENDSWOOD, TEXAS I
September 30, 1990
I
LOCATION
OR IIINSURER POLICY NO. ACTIVITY COVERAGE
Omaha Property & 011940990565 Public Works Flood-Building
II
Casualty and Contents
Omaha Property & 012001256227 Fire Station Flood-Building
Casualty #1 and ContentsII
Omaha Property & 0I3003589052 City Hall Flood-Building
Casualty Annex and Contents I
Omaha Property & 013003947995 City Hall Flood-Building
Casualty and Contents II
Texas Catastrophe 771372 City Buildings -
Property Insurance Windstorm &Hail II
Texas Political Sub- TBSH0008 City All City Employees
division-Workers Comp.
St. Paul Fire & 400GX7956 Public Blanket Bond- II
Marine Employees All Employees
Truman Taylor Insurance 18200783 Notary Public Employees I
Errors & Omissions
St. Paul Fire & 400HX3033 Surety Bond Tax Assessor/ I
Marine Collector
St. Paul Fire & 400HX3039 Surety Bond Finance Director
Marine II
Truman Taylor 13265210 Notary Bond Planning/Zoning
InsuranceII
Truman Taylor TXN254475 Notary Bond Communications
InsuranceII
Truman Taylor TXN254477 Notary Bond Finance
Insurance
II
Truman Taylor TXN269353 Notary Bond Public Works
Insurance I
Truman Taylor TSN269362 Notary Bond Police
Insurance
II
-164-
1
IIEXHIBIT XV
11
11
AMOUNT PERIOD OF
1 OF COVERAGE
COVERAGE BEGINNING ENDING PREMIUM
177,100/II 04-07-90 04-07-91 $ 366
38,300
220,000/I
04-07-90 04-07-91 488
23,100
75,000/ 08-21-90 08-21-91 726
II 175,000
200,000/ 06-13-90 06-13-91 219
II 75,000
351,000 08-18-89 08-18-90 1,117
II
Statutory 10-01-89 10-01-90 132,138
II10,000 10-01-89 10-01-90 304
I20,000 02-17-90 02-17-91 209
II50,000 05-29-90 05-29-91 250
II50,000 05-29-90 05-29-91 139
2,500 02-07-90 02-07-01 14
2,500 05-28-89 05-28-93 14
II
2,500 07-17-90 07-17-91 14
I
2,500 10-13-89 10-13-90 14
11
2,500 0 - 4- -4 1 90 04 19-94 7
I
-165-
MISCELLANEOUS STATISTICAL DATA - 1 of 2 EXHIBIT XVI
CITY OF FRIENDSWOOD, TEXAS
11
September 30, 1990
1
Date of Incorporation October 15, 1960
Date of present charter Adopted Home Rule Charter
October 16, 1971
Form of Government Council - Manager
Area 21.71 Square Miles
Miles of streets
Streets - paved 91.23 miles
Streets - unpaved 4.95 miles 1
Fire Protection
Number of stations 3
Number of employees 2
Number of volunteers 65
Fire Prevention
Number of employees 1
Number of volunteers 0
Police Protection
Number of stations 1
(1) Number of sworn officers 38
Number of patrol units 10
Number of volunteers 2
Recreation
Number of parks 6
Size of parks
Total acres 56.6
Number of golf courses 0
Number of swimming pools 1
Number of tennis courts 4
Storm Sewers
Miles of storm sewer 31.94 miles
1
(1) Includes contract and reserve
11
-166-
1
MISCELLANEOUS STATISTICAL DATA - 2 of 2 EXHIBIT XVI
CITY OF FRIENDSWOOD, TEXAS
September 30, 1990
Education
Friendswood Independent School District
Number of teachers 203
Number of students 3,355
' City employees
Department Heads 7
Employees 115.72
' Total 122.72
Election
Number of votes cast
Last City election 1,543
Water
Source 7 wells
Average daily consumption 2,810,000 gallons
Maximum daily consumption 8,405,000 gallons
Water mains 85 miles
Number of connections 6,968
Sewer
11 Average daily flow 1,879,000 gallons
Maximum daily flow 4,530,000 gallons
Sanitary sewer mains 80 miles
Number of connections 6,719
11
11
11
11
11
11
-167-
1
PRINCIPAL OFFICIALS
CITY OF FRIENDSWOOD, TEXAS 1
September 30, 1990
ELECTIVE
CITY OFFICIALS ADDRESS POSITION '
Paul W. Schrader 504 Liberty Mayor
Ron Ritter 15410 Wandering Trail Councilmember - Position No. 1
Robert Wicklander 54 Hideaway Councilmember - Position No. 2
Evelyn B. Newman 502 Falling Leaf Councilmember - Position No. 3
Ed Stuart 2001 Pine Councilmember - Position No. 4
Harold Raley 125 St. Cloud Councilmember - Position No. 5
Frank Frankovich 656 E. Castle Harbour Councilmember Position No. 6
APPOINTIVE POSITION
Melvin L. Meinecke 109 Willowick, Friendswood Acting City Manager
Deloris Archer 109 Willowick, Friendswood City Secretary
Jon Branson 109 Willowick, Friendswood Park and Recreation Director
Alta Carbone P.O. Box 31, Friendswood Tax Assessor-Collector
Dr. Richard Conway 505 Friendswood Drive Health Officer
James T. Thompson 109 Willowick, Friendswood Community Development Director
Melvin L. Meinecke 1306 Deepwood Director of Public Works
Olson & Olson 333 Clay, Suite 3485, City Attorney
Houston
Claudie Pettigrew 109 Willowick, Friendswood Library Director
Vance Riley 1000 S. Friendswood Drive Fire Marshal
Roger C. Roecker 109 Willowick, Friendswood Director of Finance
Jared D. Stout 109 Willowick, Friendswood Police Chief
Luis Suarez 723 Main, Suite 707, Judge - Municipal Court
Houston
Russell E. Williams 109 Willowick, Friendswood Emergency Management Director
1
1
1
1
1
-168-
1
EXHIBIT XVII
1
1
TERM
EXPIRES
May 1992
' May 1992
May 1991
May 1992
May 1991
May 1992
May 1991
1
1
I
1
i
1
i
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1
1
' -169-
1
1
1
' SINGLE AUDIT ACT SECTION
1
1
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-171-
EzIRL LdIRSON 8 CO.
' A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
TEL.713-681-8500 • FAX 713-681-9043
P.O. BOX 500017 1716 MANGUM, SUITE 300
HOUSTON,TEXAS 77250-0017 HOUSTON,TEXAS 77092
' INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTAL INFORMATION
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
To the Mayor and City Council
City of Friendwood, Texas
We have audited the general purpose financial statements of the City of
' Friendswood, Texas for the year ended September 30, 1990 and have issued our
report thereon dated December 14, 1990. Our audit of such general purpose
financial statements was made in accordance with generally accepted auditing
' standards and the standards for financial and compliance audits contained in the
Standards for Audit of Governmental Organizations, Programs, Activities and
Functions, issued by the U.S. General Accounting Office and, accordingly,
included such tests of the accounting records and such other auditing procedures
as we considered necessary in the circumstances.
Our audit was made for the purpose of forming an opinion on the general purpose
' financial statements taken as a whole. The accompanying schedule of federal
financial assistance is presented for purposes of additional analysis and is not
a required part of the general purpose financial statements. The information
' in that schedule has been subjected to the auditing procedures applied in the
audit of the general purpose financial statements and, in our opinion, is fairly
stated in all material respects in relation to the general purpose financial
statements taken as a whole.
hiAlefl(114/1414"1 °12". 4
Houston, Texas
December 14, 1990
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SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE I
CITY OF FRIENDSWOOD, TEXAS I
Year ended September 30, 1990
CATALOG OF
FEDERAL GRANTOR/ FEDERAL DOMESTIC PROGRAM
PASS-THROUGH GRANTOR/ ASSISTANCE GRANT AWARDED OR
PROGRAM TITLE NUMBER NUMBER AMOUNT
U.S. Department of 3-48-0348-01-89 $31,500 1
Transportation
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YEAR END
' SEPTEMBER 30. 1990
GRANT PERIOD AMOUNT OF AMOUNT OF
FROM TO REVENUES EXPENDITURES
1
07/89 03/90 $31,500 $31,500
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EdRL IRSON 8 CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
TEL.713-681-8500 • FAX 713-681.9043
P.O. BOX 500017 1716 MANGUM, SUITE 300
HOUSTON,TEXAS 7725 0-0017 HOUSTON,TEXAS 77092
11
INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS
11
To the Mayor and City Council '
City of Friendswood, Texas
We have audited the general purpose financial statements of the City of
Friendswood, Texas, for the year ended September 30, 1990 and have issued our
report thereon dated December 14, 1990. As part of our audit, we made a study
and evaluation of the system of internal accounting control of the City of
Friendswood, Texas, to the extent we considered necessary to evaluate the system
as required by generally accepted auditing standards and the standards for
financial and compliance audits contained in the U.S. General Accounting Office
Standards for Audit of Governmental Organizations, Programs, Activities and
Functions. For the purpose of this report, we have classified the significant
internal,accounting controls in the following categories:
1. Cash 6. Revenues
2. Payrolls 7. Expenditures
3. Budgets 8. Fixed assets
4. Purchasing and accounts payable 9. Accounts receivable
5. Debt 10. Investments
Our study included all of the control categories listed above. The purpose of
our study and evaluation was to determine the nature, timing and extent of the
auditing procedures necessary for expressing an opinion on the entity's financial
statements. Our study and evaluation was more limited than would be necessary
to express an opinion on the system of internal accounting control taken as a
whole or on any of the categories of controls identified above.
The management of the City of Friendswood, Texas, is responsible for establishing
and maintaining a system of internal accounting control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of control procedures. The objectives of
a system are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use of disposition,
and that transactions are executed in accordance with management's authorization
and recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles. Because of inherent
limitations in any system of internal accounting control, errors or
irregularities may nevertheless occur and not be detected. Also, projection of
any evaluation of the system to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
degree of compliance with the procedures may deteriorate.
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To the Mayor and City Council
City of Friendswood, Texas
Page Two
Our study and evaluation made for the limited purpose described in the first
paragraph would not necessarily disclose all material weaknesses in the system.
Accordingly, we do not express an opinion on the system of internal accounting
control of the City of Friendswood, Texas, taken as a whole or on any of the
categories of controls identified in the first paragraph. However, our study
and evaluation disclosed no conditions that we believe to be material weaknesses.
These conditions were considered in determining the nature, timing and extent
of the audit tests to be applied in our audit of the September 30, 1990 financial
' statements and this report does not affect our report on the financial statements
dated December 14, 1990.
This report is intended solely for the use of management and Federal and State
' audit agencies and should not be used for any other purpose. This restriction
is not intended to limit the distribution of this report which, upon acceptance
by Federal and State audit agencies, is a matter of public record.
A2A)
Houston, Texas
' December 14, 1990
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EdRL Ld/RSON 8 CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
TEL.713-681-8500 • FAX 713-681-9043
P.O. BOX 500017 1716 MANGUM, SUITE 300
HOUSTON,TEXAS 77250.0017 HOUSTON,TEXAS 77092
1
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS
To the Mayor and City Council 1
City of Friendswood, Texas
We have audited the general purpose financial statements of the City of
Friendwood, Texas, for the year ended September 30, 1990 and have issued our
report thereon dated December 14, 1990. Our audit was made in accordance with
generally accepted auditing standards and the standards for financial and
compliance audits contained in the Standards for Audit of Governmental
Organizations, Programs, Activities and Functions, issued by the U.S. General
Accounting Office and, accordingly, included such tests of the accounting records
and such other auditing procedures as we considered necessary in the
circumstances.
The management of the City of Friendswood, Texas, is responsible for the City's
compliance with laws and regulations. In connection with our audit referred to
above, we selected and tested transactions and records to determine the City's
compliance with laws and regulations noncompliance with which could have a
material effect on the general purpose financial statements of the City.
The results of our tests indicated that for the items tested, the City of
Friendswood, Texas, complied with those provisions of laws and regulations
noncompliance with which could have a material effect on the general purpose
financial statements. Nothing came to our attention that caused us to believe
that for the items not tested the City of Friendswood, Texas was not in
compliance with laws or regulations noncompliance with which could have a
material effect on the City's general purpose financial statements. 1
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Houston, Texas
December 14, 1990 1
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EARL LilIRSON 8 CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
TEL.713-681-8500 • FAX 713-681-9043
P.O. BOX 500017 1716 MANGUM, SUITE 300
HOUSTON,TEXAS 77250.0017 HOUSTON,TEXAS 77092
1
' INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS RELATED
TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
To the Mayor and City Council
City of Friendswood, Texas
We have audited the general purpose financial statements of the City of
Friendswood, Texas, for the year ended September 30, 1990 and have issued our
report thereon dated December 14, 1990. As part of our audit, we made a study
and evaluation of the internal control systems, including applicable internal
' administrative controls, used in administering Federal financial assistance
programs to the extent we considered necessary to evaluate the systems as
required by generally accepted auditing standards, the standards for financial
and compliance audits contained in the Standards for Audit of Governmental
Organizations, Programs, Activities and Functions, issued by the U.S. General
Accounting Office, the Single Audit Act of 1984, and the provisions of OMB
Circular A-128, Audits of State and Local Governments. For the purpose of this
' report, we have classified the significant internal accounting and administrative
controls used in administering Federal financial assistance programs in the
following categories:
' INTERNAL ACCOUNTING CONTROLS:
1. Cash 4. Revenues
2. Budgets 5. Expenditures
3. Purchasing and accounts payable 6. Accounts receivable
ADMINISTRATIVE CONTROLS:
1. Political activity 6. Types of services
2. Davis-Bacon Act (prevailing wage) 7. Eligibility
3. Civil rights 8. Matching level of effort
4. Cash management 9. Reporting
5. Federal financial reports
The management of the City of Friendswood, Texas, is responsible for establishing
and maintaining internal control systems used in administering Federal financial
assistance programs. In fulfilling that responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs of
11 control procedures. The objectives of internal control systems used in
administering Federal financial assistance programs are to provide management
with reasonable, but not absolute, assurance that, with respect to Federal
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To the Mayor and City Council
City of Friendswood, Texas
Page Two
financial assistance programs, resource use is consistent with laws, regulations
and policies; resources are safeguarded against waste, loss, and misuse; and
reliable data are obtained, maintained and fairly disclosed in reports.
Because of inherent limitations in any system of internal accounting and
administrative controls used in administering Federal financial assistance
programs, errors or irregularities may nevertheless occur and not be detected.
Also, projection of any evaluation of the systems to future periods is subject
to the risk that procedures may become inadequate because of changes in
conditions or that the degree of compliance with the procedures may deteriorate.
Our study included all of the applicable control categories listed in the first
paragraph. During the period ended September 30, 1990, the City of Friendswood,
Texas, expended 100% of its total Federal financial assistance programs. With
respect to internal control systems used in administrating major Federal
financial assistance programs, our study and evaluation included considering the
types of errors and irregularities that could occur, determining the internal
control procedures that should prevent or detect such errors and irregularities,
determining whether the necessary procedures are prescribed and are being
followed satisfactorily and evaluating any weaknesses.
With respect to the internal control systems used solely in administering the
nonmajor Federal financial assistance programs of the City of Friendswood, Texas,
our study and evaluation was limited to a preliminary review of the systems to
obtain any understanding of the control environment and the flow of transactions
through the accounting system. Our study and evaluation of the internal control
systems used solely in administering the nonmajor Federal financial assistance
programs of the City of Friendswood, Texas, did not extend beyond this
preliminary review phase.
Our study and evaluation was more limited than would be necessary to express an
opinion on the internal control systems used in administering the Federal
financial assistance programs of the City of Friendswood, Texas. Accordingly,
we do not express an opinion on the internal control systems used in
administering the Federal financial assistance programs of the City of
Friendswood, Texas. Further, we do not express an opinion on the internal
control systems used in administering the major Federal financial assistance
programs of the City of Friendswood, Texas.
Also, our audit, made in accordance with the standards mentioned in the first
paragraph, would not necessarily disclose material weaknesses in the internal
control systems used solely in administering nonmajor Federal financial
assistance programs.
However, our study and evaluation and our examination disclosed no conditions
that we believe result in more than a relatively low risk that errors or
irregularities in amounts that would be material to a Federal financial
assistance program may occur and not be detected within a timely period.
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To the Mayor and City Council
City of Friendswood, Texas
Page Three
These conditions were considered in determining the nature, timing and extent
of the audit tests to be applied in (1) our audit of the 1990 general purpose
financial statements and (2) our audit and review of the City's compliance with
laws and regulations, noncompliance with which we believe could have a material
effect on the allowability of program expenditures for each major Federal
financial assistance program and nonmajor Federal financial assistance programs.
This report does not affect our reports on the general purpose financial
statements and on the City's compliance with laws and regulations dated
December 14, 1990.
This report is intended solely for the use of management and Federal, state and
local audit agencies and should not be used for any other purpose. This
restriction is not intended to limit the distribution of this report, which, upon
acceptance by the City of Friendswood, Texas, is a matter of public record.
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Houston, Texas
December 14, 1990
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ErIRL LrIIRSON 8 CO.
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
TEL.713-681-8500 • FAX 713-681-9043
P.O. BOX 500017 1716 MANGUM, SUITE 300
HOUSTON,TEXAS 772 50-0 017 HOUSTON,TEXAS 77092
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND
REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL
ASSISTANCE PROGRAMS
I
To the Mayor and City Council
City of Friendswood, Texas
We have audited the general purpose financial statements of the City of
Friendswood, Texas, for the year ended September 30, 1990 and have issued our
report thereon dated December 14, 1990. Our audit was made in accordance with
generally accepted auditing standards; the standards for financial and compliance
audits contained in the Standards for Audit of Governmental Organizations,
Programs, Activities and Functions, issued by the U.S. General Accounting Office;
the single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits
of State and Local Governments and, accordingly, included such tests of the
accounting records and such other auditing procedures as we considered necessary
in the circumstances.
The management of the City of Friendswood, Texas, is responsible for the City's 1
compliance with laws and regulations. In connection with our audit referred to
above, we selected and tested transactions and records from each major Federal
financial assistance program and certain nonmajor Federal financial assistance
programs. The purpose of our testing of transactions and records from those
Federal financial assistance programs was to obtain reasonable assurance that
the City of Friendswood, Texas, had, in all material respects, administered major
programs, and executed the tested nonmajor program transactions, in compliance
with laws and regulations, including those pertaining to financial reports and
claims for advances and reimbursements, noncompliance with which we believe
could have a material effect on the allowability of program expenditures.
Our testing of transactions and records selected from major Federal financial
assistance programs disclosed no material instances of noncompliance with those
laws and regulations.
In our opinion, for the year ended September 30, 1990, the City of Friendswood,
Texas, administered each of its major Federal financial assistance programs in
compliance, in all material respects, with laws and regulations, including those
pertaining to financial reports and claims for advances and reimbursements,
noncompliance with which we believe could have a material effect on the
allowability of program expenditures.
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To the Mayor and City Council
City of Friendswood, Texas
Page Two
The results of our testing of transactions and records selected from nonmajor
Federal financial assistance programs indicate that for the transactions and
records tested the City of Friendswood, Texas, materially complied with the laws
and regulations referred to in the second paragraph of our report. Our testing
was more limited that would be necessary to express an opinion on whether the
City of Friendswood, Texas, administered those programs in compliance in all
material respects with those laws and regulations, noncompliance with which we
e believe could have a material effect on the allowability of program expenditures;
however, with respect to the transactions and records that were not tested by
us, nothing came to our attention to indicate the City of Friendswood, Texas,
had not materially complied with laws and regulations.
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December 14, 1990
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