HomeMy WebLinkAbout2000 09 30 Annual Comprehensive Financial Report - City of Friendswood 1
Comprehensive
Annual Financial Report
of the
City of Friendswood, Texas
Fiscal Year Ended
September 30, 2000
Officials Issuing Report
Ronald E. Cox
City Manager
Roger C. Roecker
Director of Administrative Services
CITY OF FRIENDSWOOD, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
ITABLE OF CONTENTS
I Exhibit
/Table Page
INTRODUCTORY SECTION
I Letter of Transmittal 1
Organization Chart 13
Certificate of Achievement for Excellence in Financial Reporting 14
Principal Officials 15
FINANCIAL SECTION
IIndependent Auditors' Report 19
GENERAL PURPOSE FINANCIAL STATEMENTS
ICombined Balance Sheet-All Fund Types and Account Groups A-1 22
Combined Statement of Revenues,Expenditures and Changes in Fund
I Balances -All Governmental Fund Types A-2 24
Combined Statement of Revenues,Expenditures and Changes in Fund
Balances—Budget(GAAP Basis) and Actual—General, Certain
I Special Revenue, and Debt Service Funds A-3 26
Combined Statement of Revenues,Expenses and Changes in Retained
Earnings/Fund Balance -Proprietary Fund Type and Non-
Expendable Trust Fund A-4 30
Combined Statement of Cash Flows -Proprietary Fund Type and Non-
Expendable Trust Fund A-5 32
3 Notes to Financial Statements A-6 34
Required Pension System Supplementary Information A-7 55
COMBINING,INDIVIDUAL FUND AND ACCOUNT GROUP
3 STATEMENTS AND SCHEDULES
Governmental Fund Types
General Fund:
Comparative Balance Sheet B-1 60
I Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual B-2 61
Special Revenue Funds:
I Combining Balance Sheet C-1 70
Combining Statement of Revenues,Expenditures and Changes in Fund
Balance C-2 72
I Statement of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual (Police Investigation) C-3 74
Statement of Revenues, Expenditures, and Changes in Fund Balance -
3 Budget and Actual (Fire/EMS Donations) C-4 75
Debt Service Fund:
Comparative Balance Sheet D-1 78
I Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual D-2 79
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CITY OF FRIENDSWOOD TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Exhibit
/Table Page wit
FINANCIAL SECTION(continued)
1112
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
Proprietary Fund Type
Enterprise Fund:
Comparative Balance Sheet E-1 83
Schedule of Bonds Payable by Maturity E-2 84
Schedule of Certificates of Obligation by Maturity Date E-3 86
Account Groups
General Fixed Assets:
Comparative Schedules of General Fixed Assets by Source F-1 89
Schedule of General Fixed Assets by Function and Activity F-2 90
Schedule of Changes in General Fixed Assets by Function and Activity F-3 92
General Long-Term Debt:
Comparative Schedules of General Long-Term Debt G-1 95
Schedule of General Long-Term Debt Service Requirements to
Maturity G-2 96
UNAUDITED STATISTICAL SECTION
General Government Revenues By Source 1 100
General Governmental Expenditures by Function 2 102
Property Tax Levies and Collections 3 104
Assessed and Estimated Actual Value of Taxable Property 4 106
Tax Rate Distribution 5 107
Direct and overlapping Property Tax Rates 6 108
Principal Taxpayers 7 110
Ratio of Annual Debt Service Expenditures for General Bonded Debt to
Total General Expenditures 8 111
Revenue Bond Coverage 9 112
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded
Debt Per Capita 10 114
Computation of Direct and Overlapping Debt 11 116
Miscellaneous Statistical Data 14 117
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City of Friendswood
March 13, 2001
To the Honorable Mayor and
3Members of the City Council
The comprehensive annual financial report of the City of Friendswood for the fiscal year ended
September 30, 2000, 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 and are
3 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 the City's financial activities have been included.
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The comprehensive annual financial report is presented in three sections: introductory, financial, and
statistical. The introductory section includes this transmittal letter, the City's organizational chart and
a list of principal officials. The financial section includes the general purpose financial statements and
the combining and individual fund and account group financial statements and schedules, as well as
the auditor's report on the financial statements and schedules. The statistical section includes selected
financial and demographic information, generally presented on a multi-year basis.
The Single Audit Act is not applicable for fiscal year ended September 30, 2000. The City did not
expend more than $300,000 in Federal or State funds during 1999-2000.
This report includes all funds and account groups of the City. Friendswood Independent School
District, Clear Creek Independent School District, Galveston County, Harris County, Clear Creek
3 Drainage District and Friendswood Volunteer Fire Department have not met the established criteria
for inclusion in the reporting entity and, accordingly, are excluded from this report.
The City is involved in two cost sharing projects for the operation of the Blackhawk Regional Waste
Treatment Plant and the Southeast Water Purification Plant with the Gulf Coast Waste Disposal
Authority and the City of Houston, respectively. The City's share of ownership in the Blackhawk
3 Waste Treatment Plant is 52.47% and paid operating and management fees during the year in the
amount of$822,267. The City's share of production pumping cost in the Southeast Water Purification
Plant was 3.75% and paid operating fees in the amount of$465,767 during the year.
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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.
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RANGE OF CITY SERVICES PROVIDED
Water and Sewer •
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The City provides water and sewer services for residential and commercial locations. 18 employees
are responsible for maintaining the system, as well as billing and collecting for the services. 1110
Police
Twenty-four hour coverage is provided by the City's Police Department, which consists of
Administration, Patrol, Investigative, Communications and Animal Control. A goal of the department's
64 full and part-time personnel is to actively involve the citizens in its community safety efforts.
Fire
Although the City does not employ its own fire department, it purchases fire trucks and other equipment
for the members of the Friendswood Volunteer Fire Department. The City employs a Fire Marshal, an
Assistant Fire Marshal, one Administrative Secretary, one full-time fire fighter and funds six fire captain,
paramedic and emergency medical technician positions through a pool of part-time employees. The Fire
Marshal is responsible for the emergency management function, as well as fire prevention, education and
investigation duties.
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Streets
The street department is responsible for the repair and maintenance of all city streets and roadside
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drainage. This department consists of thirteen employees.
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Sanitation
The city's solid waste services, including curbside pickup of recyclable materials and green waste
recycling, are contracted to a private firm. Residential pickup is twice weekly.
Parks
The Parks and Recreation Division of the Community Services Department oversees 110.5 acres of
parkland, including four tennis courts, a swimming pool, picnic areas and 35.45 acres for future
development. The staff consists of nine full-time employees, as well as part-time and seasonal employees
for the swimming pool, summer camp, sports activities and other park functions.
ECONOMIC CONDITION AND OUTLOOK
The City of Friendswood, Texas, is located 20 miles southeast of downtown Houston in southern Harris
and northern Galveston Counties. The City's population is currently estimated at 31,761. The economy is
linked closely to that of Houston and the Clear Lake area. The City of Friendswood is a member of the
Clear Lake Area Economic Development Foundation (CLAEDF). CLAEDF is charged with retaining
current businesses and associated jobs, as well as recruiting other corporations to the area.
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The Clear Lake area's economy has become more diverse, featuring aerospace, petrochemical, tourism,
boating and recreation industries. The NASA/Johnson Space Center, the Bayport petrochemical complex,
Ellington Field and the University of Houston-Clear Lake are key players in the area's economy.
According to CLAEDF estimates, "750,000 people work within a 45-mile drive time of the Clear Lake
area. The local economic base, comprised of an estimated 8,500 establishments and 100,000 employees,
rests solidly on four supports and a bedroom community linkage to Houston. The first support is the
3 aerospace industry. An equally large and stable second support is the specialty chemical industry. The
third and growing component is tourism, and the fourth is the boating and recreation sector. The region's
high-tech work force, strategically located between the Texas Medical Center and the University of Texas
Medical Branch at Galveston, attracts many new bio-technology, computer software, engineering and
special chemical services companies." With a unique blend of high-tech aerospace and specialty
chemical industry base, upscale commercial, retail and boating facilities, and a sought-after quality of life,
the region continues to be a robust part of Houston's regional economic expansion.
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MAJOR INITIATIVES
For the Year.
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During the 1999-2000 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
3 state standards. The following items will provide a summary of these programs.
Streets and Drainage
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The main street improvement project was the entrance road to Centennial Park. The City's 1999-2000
budget for this project was $300,000. This project was another example of the manner in which the City
3 and the Friendswood Independent School District continue to partner with each other. FISD contributed
roughly half the cost of the entrance road, since it will ultimately serve a new school campus located
adjacent to the park. $35,000 was allotted for additional asphalt resurfacing and$25,000 was set aside for
3 new sidewalks.
Facilities
3 $175,000 was set aside to provide additional office space in the City Hall building. This was
accomplished by enclosing the building's four corner balconies. The library's roof was replaced at a
budgeted cost of$40,000 and$19,200 was targeted for the replacement of the bleachers at Renwick Park.
Fire Department
3 A significant piece of equipment was added to the department's fleet. Engine 10 and Tanker 2 were
replaced with a Pierce Dash 100' aerial platform fire truck. The platform is equipped with a master water
stream appliance capable of delivering over 1,000 gallons of water per minute for elevated fire fighting.
The truck will also have the capabilities of a pumper and provides the highest level of fire fighter safety
due to its stability as a working platform for fire and rescue operations. The cost of this new apparatus is
$635,000 and will be financed over an eight-year period.
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Water and Sewer
$50,000 is set aside for the repair of various water and sewer lines within the City's neighborhoods. No
specific lines were identified. The City increased its annual funding for the water meter replacement
program by $15,000. The program funding now totals $40,000
A number of water and sewer improvements were planned for 1999-00 and funded with the sale of two
Water and Sewer Revenue Bond issues. The 1999 bond issue included: replacing the Coward's Creek
24" sanitary trunk line; constructing the Moore/Mandale waterline system loop; replacing the E. Heritage
8" sanitary sewer line; installing a 16" waterline on FM 2351 from Melody to Sunset; replacing the
Blackhawk waterline from Laura Leigh to Abercreek; replacing the FM 2351 waterline from Blackhawk
to FM 518 and the sewer line across Clear Creek; constructing a new sewer line to service the Autumn
Creek subdivision; and, rehabilitating two ground storage tanks at Water Wells#3 and#4. The projected
cost of these improvements is 4,945,000. Completion is scheduled for 2000-01.
The 2000 Water and Sewer Revenue bonds were issued to expand capacity of the Southeast Water
Purification Plant. These improvements included: purchasing an additional 1.5 million gallons per day
(MGD) surface water capacity when City of Houston expands the plant; the City's share of pumping and
distribution costs for the additional capacity; and acquire an additional 1.5 MGD capacity by purchasing
excess capacity from other participants in the Southeast Water Purification Plant. Acquiring this
additional surface water capacity is a major accomplishment and will help ensure the City's water supply
needs are met, as more restrictions are placed on the amount of groundwater the City is allowed to utilize.
The projected cost of these improvements is $3,515,000.
FOR THE FUTURE
Streets
Funding for the reconstruction of concrete and asphalt streets was increased to $550,000. In addition,
$89,932 was budgeted for preliminary engineering and environmental assessment for the Brittany Bay
Boulevard project. $24,100 was set aside to provide these same services for the extension of
Friendswood Link Road. $39,032 is budgeted for new sidewalk construction.
Facility Improvements
Facility improvements will include a new irrigation system for Centennial Park ($21,830), an electronic
reader board sign for City Hall ($20,000) and a variety of smaller improvements to city facilities totaling
an estimated $41,400.
$329,702 is budgeted to provide additional space at Public Works for the wash bay, sign shop, storage
and employee lunchroom. The roof at Public Works is scheduled for replacement at a projected cost of
$35,000 and $7,500 is set aside for the construction of a 6' electronic security gate.
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Water and Sewer
$50,000 is set aside for the repair of various water and sewer lines within the City's neighborhoods. The
City will continue the water meter replacement program.
Major improvements to the City's water and sewer system, begun in 1999-00, will be ongoing during
2000-01. Reference these improvements in the major initiatives section above.
In 1992, the Harris-Galveston Coastal Subsidence District(Subsidence District)adopted a regulatory plan
that required any water producer in Area 2, which includes Friendswood, to supply 80 percent of its total
production from surface water sources. The remaining 20 percent could come from groundwater.
Entities within Area 2 could maintain that 80 percent amount at a constant level and use more
3 groundwater until 2010, when they would again be required to obtain 80 percent of their total production
from surface water sources. This process allowed us to "grow on groundwater." Our circumstances have
recently changed.
The Subsidence District recently adopted a revised regulatory plan. Effective, January 1, 2001, the City
will be required to have sufficient surface water available to supply 80 percent of its needs each year.
Friendswood will no longer be able to grow on groundwater, but will be required to provide a constant
supply of surface water to meet 80 percent of the City's annual needs. Should the City not meet the new
requirements, the Subsidence District's revised regulatory plan calls for a severe, financial disincentive
3 fee. The fee is $3 per 1,000 gallons of groundwater used over the allowable 20 percent. This represents a
large amount when applied against the City's average surface-to-groundwater ratio of 62:38 percent over
the past 5 years.
As a part of responding to the Subsidence District's requirements, the City is preparing a Groundwater
Reduction Plan (GRP). The GRP is a plan that will show the Subsidence District how and when we will
meet the new requirements. If the Subsidence District approves the City's GRP, the disincentive fee will
3 be waived, saving a substantial amount of money. A key item in the GRP is identifying and negotiating
contracts with surface water sources, proving our ability to meet the 80 percent requirement as soon as
possible. In addition to acquiring additional surface water capacity, several water system capital
3 improvements will be required to take this amount of water into the City's distribution system. These
will include a second pump station; a 24-inch trunk main; and additional elevated and ground storage.
DEPARTMENT FOCUS
Each year the City will select a department to highlight for its efforts and accomplishments. For 1999-
2000, the Friendswood Public Library has been chosen for review. The Friendswood Public Library,
begun in August 1965, resides in a 15,459 square foot building at 416 South Friendswood Dr.
Effective use of nine full-time employees and 4.42 full-time equivalents in part-time positions enable the
library to staff four public service points: circulation, patron registration and returns, children's services
3 and reference and readers' advisory.
The Friendswood Public Library completed several major projects this fiscal year. Of foremost
3 importance was the purchase of the property adjacent to the library. Acquisition of this property will
allow the Library the option of future expansion. Prior to its purchase, the library really had no place to
grow. The Library grounds were also landscaped, a fence erected between the library parking lot and the
adjacent dirt yard, and a sprinkler system installed on the library grounds. Future projects include
additional landscaping, in the form of oak trees being planted on the library property and improvements to
the recently purchased property.
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With the award of its second TIF grant, the library was able to add twelve new computers, offering a
graphical interface to the library's public access catalog and two additional Internet stations. The library
was also able topurchase three laserprinters, a digital camera and a scanner.
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In May the library began to offer an upgraded version of its Internet access to the library's catalog. The
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public may now place holds and renew items over the Internet from their homes. The library also began
offering Internet access to library cardholders to the Ebsco Magazine and Health Reference databases.
Patrons may also access these databases from their home via the Internet.
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Services from the library home page have also expanded. Patrons are now able to make book requests
and local teachers may submit assignment alerts. Children's pages include homework help specific to
current assignments and sites are updated as these assignments change.
The library's children's services continue to be successful. The library offered 114 programs during the
summer and had a total attendance of 5,420. Over 1000 children completed the Texas Reading Club with IP
121 reading over 60 books.
The library staff continues to search for new and innovative ways to serve the citizens of Friendswood.
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 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
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with generally accepted accounting principles. The internal control structure is designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance trog
recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the
valuation of costs and benefits requires estimates and judgments by management.
In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget approved by City Council.
The City legally adopts annual budgets for the General, Special Revenue, and Debt Service Funds.
Annual and project budgets are also adopted for the Proprietary and Capital Projects Funds,respectively.
The level of budgetary control (that is, the level at which expenditures cannot legally exceed the
appropriated amount) is established by department within a fund. The City also maintains an
encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered
amounts lapse at year end. However, encumbrances generally are reappropriated as part of the following
year's budget.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
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General Government Functions
I Revenues for general government functions (General, Special Revenue and Debt Service Funds) totaled
approximately $14 million in 2000, an increase of approximately $1,850,645 over 1998-99 revenues. The
amount of revenue from various sources and the increase (decrease) over the preceding year are shown in
Ithe following tabulation:
Increase
Percent of (Decrease) Percent
Revenue Source Amounts Total from 1999 Change
Property taxes $ 7,226,205 51.4% $ 915,286 14.5%
Sales taxes 2,048,868 14.6% 193,747 10.4%
Franchise tax 870,839 6.2% 48,896 5.9%
Sanitation 1,027,028 7.3% 13,613 1.3%
3 Fines and forfeitures 416,722 3.0% 84,063 25.3%
Permits and fees 970,868 6.9% 334,963 52.7%
Intergovernmental 607,963 4.3% 54,611 9.9%
3 Earnings on investments 399,712 2.8% 106,826 36.5%
Other 482,054 3.4% 95,970 24.9%
$ 14,050,259 100.0% $ 1,847,975 15.1%
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Assessed valuations of approximately $1.134 billion represented an increase of 9 percent over the
3 preceding year. The net taxable assessed valuations are set at 100% of market value as determined by the
Galveston County and Harris County Appraisal Districts, less exemptions or abatements. The adjusted
tax levy for the 2000 fiscal year of approximately $7.2 million, increased by approximately $940,000 or
13.09 percent over the prior year tax levy. Current tax collections of approximately$7.1 million, or 98.43
Ipercent of the tax levy, are up approximately $895,981 (12.57%) from last year. The ratio of total
collections (current and delinquent)to the current tax levy was 100.22 percent.
The City had approximately $269,154 in delinquent taxes outstanding as of September 30, 2000, which
represents 3.72 percent of the current tax levy. Delinquent tax collections were $61,737 more than the
prior fiscal year.
1 Allocations of property tax levy for the 2000 fiscal year and the preceding two fiscal years are as follows
(tax rate per$100 of assessed value):
3 Purpose 1999-2000 1998-99 1997-98
3 General Fund $ 0.5542 $ 0.5610 $ 0.5276
General Obligation Debt 0.0843 0.0515 0.0685
Total Tax Rate $ 0.6385 $ 0.6125 $ 0.5961
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The City's sales taxes increased by approximately $194,000 during the 2000 fiscal year. This increase is
attributable to the growth in both population and commercial establishments within the City.
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Fines and forfeitures increase by $84,000. This increase is attributed to increased volume in the issuance a
of tickets.
There was a substantial increase in new home and commercial construction. Permits and fees increased I
by approximately $334,963. The total amount of new construction for the current fiscal year was
approximately $121 million, up from$74.5 million for 1998-99, an increase of 38.5 percent.
Expenditures for general government functions (General, Special Revenue and Debt Service Funds)
totaled approximately $14 million, an increase of approximately $1,896,000 over 1998-99 expenditures.
Increases or (decreases) over the preceding year in the levels of expenditures for major functions of the
City are shown in the following tabulation:
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Increase
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Percent of (Decrease) Percent
Function Amounts Total from 1999 Change
General government $ 2,305,916 16.3% $ 254,232 12.4%
Public safety 4,265,750 30.2% 99,742 2.4%
Public works 2,640,988 18.7% 1,039,940 65.0% gp
Sanitation 1,028,465 7.3% 47,784 4.9%
Community development 535,084 3.8% 12,956 2.5%
Community services 2,355,186 16.7% 161,326 7.4%
Debt service 976,659 6.9% 278,113 39.8% 2
$ 14,108,048 100.0% $ 1,894,093 15.5%
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General government increase in expenditures resulted primarily from the addition of an Economic
Development Coordinator position in Economic Development at a cost of about $46,000. Legal costs
increased by $127,500 due to the resolution of outstanding charges from the prior year. The costs to
operate the Municipal Court division increased by $23,750 due to additional overtime in the division
associated with increased activity and staff shortages. Personnel costs increased in the Finance Division
by approximately $37,572. The additional cost is associated with the payout of benefits to a long time
employee, additional overtime during staff shortages and a full year of the Senior Accountant position
added midyear of 1998-99. Expenditures in the Human Resources were up by approximately $15,500.
This is attributed to an increase in advertising costs associated with city-wide employee recruitment and
higher contract services cost due to staff shortages within the division.
The Public Safety increase in expenditures was due to additional personnel cost in the Patrol division of
approximately $31,000 and the addition of an Assistant to the Chief position at a cost of$47,000,
Public Works expenditures reflect an increase of $1,039,940. This variance comes from our Street
Improvement Program. The prior year expenditures totaled $550,907 compared to the current year
expenditures of$1,623,877.
Community Services increased by $161,326. Capital expenditures in the Library increased by $40,000.
This increase was significantly funded by a grant from the Telecommunications Infrastructure Fund
Board and was used to purchase computer equipment. Repairs were made to the roof of the library
building at a cost of $35,000. The balconies of the City Hall facility were enclosed to add additional
office space and resolve water leak problems.
Debt service expenditures increased by $278,113. This was due to scheduled increase in interestI
expenditures for the 1986 Refunding Bonds.
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3 Fund Balance Levels
I Fund balances in the major operating funds were maintained at budgeted levels. Net changes in these
fund balances are tabulated below:
Beginning Net Increase Ending Fund
Fund Fund Balance (Decrease) Balance
General $ 3,337,604 $ 350,346 $ 3,687,950
I Special Revenue 11,694 65,345 77,039
Debt Service 73,344 (4,717) 68,627
Enterprise Fund Operations
3 The water and sewer utility operation continued to show gains in number of customers. Comparative data
for the past two fiscal years are presented in the following tabulation:
I 2000 1999
Operating and investment revenues $ 7,211,716 $ 5,482,707
Operating expenses before depreciation 3,310,375 2,781,480
3 Net Revenue Available for Debt Service $ 3,901,341 $ 2,701,227
Revenue Bond Debt Service $ 441,600 $ 36,032
3 Coverage (income available for revenue
bond debt service divided by annual
revenue bond debt service) 8.8 75.0
I Number of customers
Water 9,423 9,423
Sewer 8,979 8,979
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1 Non-Expendable Trust Fund Operation
The Non-Expendable Trust Fund is comprised of assets held by the City for the 1776 Park. Activity in
I this fund resulted solely from interest earnings during the year. Fund balance was approximately
$80,000 as of September 30, 2000.
3 Cash Management
Cash temporarily idle during the year was invested in Texpool, Lone Star, MBIA, investment pools as
well as U.S. government securities. The City earned approximately $765,733 on these investments during
fiscal year 2000.
The City's investment policy is to minimize credit and market risks while maintaining a competitive yield
on its portfolio. Accordingly, deposits were either insured by federal depository insurance or
collateralized. All collateral on deposits were held by a financial institution's trust department in the
City's name.
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Debt Administration
The ratio of net general obligation debt paid from governmental fund resources to assessed valuation and 0
the amount of bonded debt per capita are useful indicators of the City's debt position to municipal
management, citizens and investors. At year end, these indicators were as follow:
Percent of
Debt to
Assessed Debt Per
Description Amount Value Capita
Net direct bonded debt $ 2,361,592 0.2% $ 74
Overlapping debt 49,983,793 4.4% 1,574
Total Direct and
Overlapping Debt $ 52,345,385 4.6% $ 1,648
The City's latest bond issues were rated Aaa by Moody's Investors Service, and AAA by Standard and
Poor's. During the year, the City issued Waterworks and Sewer System Revenue Bonds in the amounts of
$4,495,000 and $3,515,000. The City's debt retirements amounted to $800,556 of General Long Term
Debt Group debt and$882,243 of Enterprise Fund debt.
Risk Management
The City has a risk management program to protect the City from exposure to various risks of loss related
to torts; theft of, damage to, and destruction of assets, errors and omissions; injuries to employees; and
natural disasters. The risk management program encompasses obtaining property and liability insurance
through third party commercial insurance carriers to cover the City for the various risks of loss.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the financial statements of all of the various funds of the City
by independent certified public accountants. The accounting firm of Null Lairson, P.C., Has performed
such an audit and their opinion has been included in this report.
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, 1999. This was the thirteenth 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 believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
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Acknowledgments
The preparation of the comprehensive annual financial report was made possible by the dedicated service
of the entire staff of the Administrative Services Department. Each member of the department has my
sincere appreciation for the contributions made in the preparation of this report.
In closing, I also express my thanks to the Mayor, members of the City Council and the City Manager for
their leadership, interest and support in conducting the financial operations of the City in a responsible
and progressive manner.
Sincerely,
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Roger C. Roecker
Director of Administrative Services
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CITY OF FRIENDSWOOD, TEXAS
ORGANIZATION CHART
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MAYOR
AND
COUNCIL
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Appointed Friendswood City City City Municipal City
Boards and Volunteer Secretary Manager Attorney Judge Prosecutor
AD HOC Fire
Committees Department
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1 .11.1MINNI
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Administrative Community Police Fire Marshal Public Community
1 Services Development Emergency Works Services
Management
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Certificate of IP
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, 1999
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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Executive Director
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CITY OF FRIENDS WOOD,TEXAS
3 PRINCIPAL OFFICIALS
September 30,2000
3
3 Elected Officials Position Term
Expires
Harold L. Whitaker Mayor May 2003
.,_ Kitten Hajecate Brizendine Council Member—Position No. 1 May 2003
Jerry Erickson Council Member—Position No. 2 May 2002
3 Tom Manison Council Member—Position No. 3 May 2003
Kim Wayne Brizendine Council Member—Position No. 4 May 2001
Larry Taylor Council Member—Position No. 5 May 2002
Mel P. Measeles Council Member—Position No. 6 May 2001
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3 Appointed Officials Position
Ronald E. Cox City Manager
Debris McKenzie City Secretary
Jon Branson Director of Community Services
Rebecca Carbone Tax Assessor-Collector
3 Mickiel G. Hodge Community Development Director
Melvin L. Meinecke Director of Public Works
3 Olson & Olson City Attorney
Terry Byrd Fire Marshal/ Emergency Management
Coordinator
3
Roger C. Roecker Director of Administrative Services
Jared D. Stout Police Chief
James W. Woltz Judge—Municipal Court
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� FINANCIAL SECTION
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11 Greenway Plaza,Suite 1515 Null•Lairson One Sugar Creek Blvd.,Suite 1150
Houston,TX 77046 Sugar Land,TX 77478
(713)621-1515 CERTIFIED PUBI C ACCOUNTANTS (281)242 8600
Fax: (713)621 1570 PROFESSIONAL CORPORATION Fax: (281)242-7333
Independent Auditors' Report
To the Honorable Mayor and Members
of the City Council
City of Friendswood,Texas
We have audited the accompanying general purpose financial statements of the City of Friendswood,
Texas, as of and for the year ended September 30, 2000. These general purpose financial statements are
the responsibility of the City's management. Our responsibility is to express an opinion on these general
purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the general
purpose-financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall general purpose financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion the general purpose financial statements referred to above present fairly, in all material
respects, the financial position of the City of Friendswood, Texas, as of September 30, 2000, and the
results of its operations and the cash flows of its proprietary fund type and similar trust fund for the year
then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements
taken as a whole. The combining and individual fund and account group financial statements and
schedules listed in the table of contents are presented for purposes of additional analysis and are not a
required part of the City's general purpose financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the general purpose financial statements and, in our
opinion, is fairly presented in all material respects in relation to the general purpose financial statements
taken as a whole.
The Required Pension System supplementary Information listed in the table of contents is not a required
part of the general purpose financial statements but is supplementary information required by the
Government Accounting Standards Board. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
additional information. However, we did not audit the information and express no opinion on it.
a c
Houston,Texas
February 27, 2001
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GENERAL PURPOSE FINANCIAL STATEMENTS
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CITY OF FRIENDSWOOD, TEXAS
COMBINED BALANCE SHEET-
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2000
Proprietary
Governmental Fund Types Fund Type
Special Debt
General Revenue Service Enterprise
Assets and Other Debits
Assets
Cash and temporary investments $4,802,850 $ 74,720 $ 68,627 $ 2,463,506
Investments
Receivables
Taxes 225,874 43,310
Customer accounts 80,145 1,031,086
Other 83,169 23,885 37,072 •
Due from other governments 41,969
Inventory 4,266 5,575
Prepaid and other assets 24,676 2,092
Restricted cash and investments 7,415,325
Fixed Assets:
General Fixed Assets
Enterprise system property, plant
and equipment at cost, less
accumulated depreciation 23,791,943
Non-expendable trust assets
Water Rights 850,000
Other Debits
Amount available for debt service
Amount to be provided for retirement
of general long-term debt
Total Assets and Other Debits $5,262,949 $ 98,605 $ 111,937 $ 35,596,599
See Notes to Financial Statements.
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Exhibit A-1
Page 1 of 2
Fiduciary
Fund Type Account Groups Totals
Trust and General General Long- (Memorandum Only)
Agency Fixed Assets Term Debt 2000 1999
$ 22,549 $ $ $ 7,432,252 $ 5,379,805
269,184 207,417
1,111,231 981,875
3 144,126 173,618
41,969 67,385
9,841 4,129
3 26,768 23,928
7,415,325 464,299
3
33,922,077 33,922,077 31,629,373
23,791,943 24,094,850
57,200 57,200 57,200
1 850,000
68,627 68,627 73,344
3,276,573 3,276,573 3,490,508
$ 79,749 $ 33,922,077 $3,345,200 $ 78,417,116 $ 66,647,731
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CITY OF FRIENDSWOOD, TEXAS
COMBINED BALANCE SHEET-
ALL FUND TYPES AND ACCOUNT GROUPS
September 30,2000
Proprietary
Governmental Fund Types Fund Type
Special Debt
General Revenue Service Enterprise rri
Liabilities,Equity,and Other Credits
Liabilities
Accounts payable $ 222,737 $ $ $ 350,586
Accrued liabilities 181,147 126,483
Accrued compensated absences 854,776 101,871
Customer deposits 262,143
Deferred revenue 316,339 21,566 43,310 IP
Bonds payable 9,992,533 ai
Certificates of obligation payable 5,255,000
Obligations under capital leases
Accretion on premium compound interest PP
bonds 114,167
Total Liabilities 1,574,999 21,566 43,310 16,202,783
,,,„
Equity and Other Credits
Investment in general fixed assets
Contributed capital 12,435,358
Retained earnings 6,958,458 lik
Fund Balances
Reserved for encumbrances 820,966 68,627
Reserved for inventory and prepaids 28,942
Reserved for debt services 77,039
Reserved for endowment
Unreserved
Designated for construction 169,267
Designated for projects 80,550
Undesignated 2,588,225 !,
Total Equity and Other Credits 3,687,950 77,039 68,627 19,393,816
Total Liabilities,Equity,and
Other Credits $5,262,949 $ 98,605 $ 111,937 $ 35,596,599
See Notes to Financial Statements.
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Exhibit A-1
3 Page 2 of 2
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Fiduciary
Fund Type Account Groups Totals
I Trust and General General Long- (Memorandum Only)
Agency Fixed Assets Term Debt 2000 1999
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$ $ $ $ 573,323 $ 711,674
I 307,630 198,750
956,647 905,514
262,143 255,810
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381,215 329,715
600,219 10,592,752 2,979,890
1,830,000 7,085,000 7,335,000
I775,443 775,443 350,978
139,538 253,705 753,085
3,345,200 21,187,858 13,820,416
33,922,077 33,922,077 31,629,373
I12,435,358 12,435,358
6,958,458 5,261,384
I889,593 635,143
28,942 20,172
77,039 68,628
I67,200 67,200 67,200
169,267 2,153,385
I 80,550
12,549 2,600,774 556,672
79,749 33,922,077 57,229,258 52,827,315
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$ 79,749 $ 33,922,077 $3,345,200 $ 78,417,116 $ 66,647,731
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND ri
CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 2000 fp
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Governmental Fund Types
Special Debt
General Revenue Service
Revenuesr
Property taxes $6,267,686 $ $ 958,519
Sales taxes 2,048,868
Franchise fees 870,839
Sanitation 1,027,028
Fines and forfeitures 416,722
Permits and fees 970,868
Intergovernmental 607,659 304
Interest on investments 377,013 9,276 13,423
Other 224,800 257,254
Total Revenues 12,811,483 266,834 971,942
Expenditures
Current:
General government 2,305,916
Public safety 4,216,467 49,283
Public works 2,640,988
Sanitation 1,028,465
Community development 535,084
Community services 2,355,186
Capital outlay 652,206
Debt Service:
Principal retirement 525,897
Interest and fiscal charges 450,762
Total Expenditures 13,082,106 701,489 976,659
Revenues Over(Under) Expenditures (270,623) (434,655) (4,717)
Other Financing Sources(Uses)
Operating transfers in 546,113
Operating transfers (out)
Proceeds from issuance of debt 74,856 500,000
Total Other Financing
Sources(Uses) 620,969 500,000
Revenues and Other Financing Sources
Over (Under) Expenditures
and Other Financing(Uses) 350,346 65,345 (4,717)
Fund balances -Beginning 3,337,604 11,694 73,344
Fund Balances- Ending $3,687,950 $ 77,039 $ 68,627
See Notes to Financial Statements.
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Exhibit A-2
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I Totals
(Memorandum Only)
September 30, September 30,
2000 1999
I $ 7,226,205 $ 6,310,919
2,048,868 1,855,121
' 870,839 821,943
1,027,028 1,013,415
416,722 332,659
970,868 635,905
I 607,963 553,352
399,712 292,886
482,054 386,084
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14,050,259 12,202,284
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2,305,916 2,051,684
4,265,750 4,166,008
2,640,988 1,601,048
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1,028,465 980,681
535,084 522,128
2,355,186 2,193,860
652,206
525,897 512,594
450,762 185,952
I 14,760,254 12,213,955
(709,995) (11,671)
1 546,113 792,169
(304,988)
574,856 149,780
I1,120,969 636,961
I410,974 625,290
3,422,642 2,797,352
II $ 3,833,616 $ 3,422,642
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCES- BUDGET(GAAP BASIS)AND ACTUAL
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Year Ended September 30, 2000
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Property taxes 6,272,761 6,267,686 $ (5,075)
Sales taxes 1,879,200 2,048,868 169,668
Franchise fees 841,268 870,839 29,571
Sanitation 1,027,028 1,027,028
Fines and forfeitures 300,106 416,722 116,616
Permits and fees 636,616 970,868 334,252
Intergovernmental 621,770 607,659 (14,111)
Interest on investments 188,500 377,013 188,513
Other 107,745 224,800 117,055
Total Revenues 11,874,994 12,811,483 936,489
ExpendituresI
Current:
General government 2,567,089 2,305,916 261,173
Public safety 4,325,207 4,216,467 108,740
Public works 2,605,424 2,640,988 (35,564)
Sanitation 1,029,510 1,028,465 1,045
Community development 582,594 535,084 47,510
Community services 3,152,640 2,355,186 797,454
Debt Service:
Principal retirement
Interest and fiscal charges
Total Expenditures 14,262,464 13,082,106 1,180,358
Revenues Over (Under) Expenditures (2,387,470) (270,623) 2,116,847
Other Financing Sources(Uses)
Operating transfers in 546,113 546,113
Proceeds from issuance of long-term debt 74,856 74,856
Total Other Financing Sources (Uses) 546,113 620,969 74,856
Revenues and Other Financing Sources Over
(Under) Expenditures and Other
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Financing(Uses) (1,841,357) 350,346 2,191,703
Fund balances - Beginning 3,337,604 3,337,604
Fund Balances -Ending $ 1,496,247 $ 3,687,950 $2,191,703
See Notes to Financial Statements.
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Exhibit A-3
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Special Revenue Fund Debt Service Fund
IVariance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
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$ $ $ $ 959,100 $ 958,519 $ (581)
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24,044 304 (23,740)
I 227 9,276 9,049 13,423 13,423
193,000 257,254 64,254
217,271 266,834 49,563 959,100 971,942 12,842
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I59,809 49,283 10,526
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I 657,771 652,206 5,565
525,897 525,897
433,514 450,762 (17,248)
717,580 701,489 16,091 959,411 976,659 (17,248)
(500,309) (434,655) 65,654 (311) (4,717) (4,406)
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500,000 500,000
I500,000 500,000
(309) 65,345 65,654 (311) (4,717) (4,406)
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11,694 11,694 73,344 73,344
$ 11,385 $ 77,039 $ 65,654 $ 73,033 $ 68,627 $ (4,406)
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES,AND
CHANGES IN RETAINED EARNINGS/FUND BALANCE-
PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND
Year Ended September 30, 2000
Proprietary Fiduciary
Fund Type Fund Type
Non-Expendable
Enterprise Trust
Operating Revenues
Water and sewer charges $ 6,845,695 $
Interest on investments 1,191
Total Operating Revenues 6,845,695 1,191
Operating Expenses
Personnel services 928,522
Supplies 221,632
Repairs and maintenance 459,870
Other services and charges 1,700,351
Depreciation 950,796
Total Operating Expenses 4,261,171
Operating Income (Loss) 2,584,524 1,191
Non Operating Income (Expenses)
Interest Income 366,021
Interest Expense (707,358)
(341,337)
Income Before Operating Transfers 2,243,187 1,191
Operating Transfers(Out)
Operating transfers in
Operating transfers (out) (546,113)
(546,113)
Net Income (Loss) 1,697,074 1,191
Retained Earnings/Fund Balance -Beginning of Year 5,261,384 78,558
Retained Earnings/Fund Balance- End of Year $ 6,958,458 $ 79,749
See Notes to Financial Statements.
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Exhibit A-4
Totals
(Memorandum Only)
September 30, September 30,
2000 1999
$ 6,845,695 $ 5,404,140
1,191 849
6,846,886 5,404,989
928,522 801,776
221,632 159,969
459,870 291,171
1,700,351 1,528,564
950,796 826,282
4,261,171 3,607,762
2,585,715 1,797,227
366,021 78,567
(707,358) (539,692)
(341,337) (461,125)
2,244,378 1,336,102
250,000
(546,113) (737,181)
(546,113) (487,181)
1,698,265 848,921
5,339,942 4,491,021
$ 7,038,207 $ 5,339,942
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF CASH FLOWS-
PROPRIETARY FUND TYPE AND NON-EXPENDABLE TRUST FUND
Year Ended September 30,2000
Proprietary Fiduciary
Fund Type Fund Type
Non-Expendable
Enterprise Trust
Cash Flows from Operating Activities
Operating Income $ 2,584,524 $ 1,191
Adjustments to Reconcile Operating Income(Loss) to
Net Cash Provided(Used) by Operations
Depreciation and amortization 950,796
Decrease in accounts receivable 76,164
(Increase)Decrease in prepaid and other assets (5,793)
Increase in accounts payable and accrued liabilities (15,069)
(Decrease) in compensated absences (5,649)
(Decrease) in customer deposits (6,333)
Net Cash Provided(Used)by Operating Activities 3,578,640 1,191
Cash Flows from Noncapital Financing Activities
Operating transfers in
Operating transfers(out) (546,113)
Net Cash(Used)by Noncapital Financing Activities (546,113)
Cash Flows from Capital and Related Financing
Activities
Proceeds from issuance of long-term debt 8,489,200
Purchase of water rights (850,000)
Capital expenditures for property, plant, and equipment (601,034)
Principal payments on long-term debt (662,375)
Interest payments on long-term debt (1,166,654)
Net Cash Provided (Used) by Capital and Related Financing Activities 5,209,137
Cash Flows from Investing Activities
Interest on investments 366,021
Net Cash(Used)by Investing Activities 366,021
Net Increase (Decrease)in Cash and Cash Equivalents 8,607,685 1,191
Cash and cash equivalents, beginning of year 1,271,146 21,358
Cash and Cash Equivalents,End of Year $ 9,878,831 $ 22,549
Unrestricted cash and cash equivalents $ 2,463,506 $ 22,549
Restricted cash and cash equivalents 7,415,325
Cash and Cash Equivalents,End of Year $ 9,878,831 $ 22,549
See Notes to Financial Statements.
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Exhibit A-5
Totals
(Memorandum Only)
1 2000 1999
$ 2,585,715 $ 1,797,227
950,796 826,282
76,164 60,315
(5,793) (54,296)
(15,069) (119,425)
(5,649) (21,280)
(6,333) (25,745)
3,579,831 2,463,078
250,000
1 (546,113) (737,181)
(546,113) (487,181)
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8,489,200
I (850,000)
(601,034) (508,021)
(662,375) (1,126,750)
(1,166,654) (493,804)
5,209,137 (2,128,575)
3 366,021 78,567
366,021 78,567
3 8,608,876 (74,111)
1,292,504 1,366,615
$ 9,901,380 $ 1,292,504
I $ 2,486,055 $ 828,205
7,415,325 464,299
$ 9,901,380 $ 1,292,504
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CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS iii
dikk
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES IP
a
The City of Friendswood, Texas (the City) was incorporated on October 15, 1960. The City charter provides
for a City Council-City Manager form of government. The Mayor and six Council Members are elected from
the City at large serving three year terms. Currently, the City charter provides for a Council term limitation
of three 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 affair of the City.
The City Manager is responsible for law enforcement, appointment and removal of department directors and
employees, supervision and control of all City departments, and preparation of the annual budget. The
Mayor presides at meetings of the City Council and can vote.
The City provides the following services: public safety, streets, parks and recreation, library, water and
sewer, sanitation, planning and zoning, building inspection, code enforcement, and general administrative
services.
a'
A. Reporting Entity
The City is an independent political subdivision of the State of Texas governed by an elected six member
council and a mayor and is considered a primary government. As required by generally accepted
accounting principles, these general purpose financial statements have been prepared based on
considerations regarding the potential for inclusion of other entities, organizations, or functions as part of
the City's financial reporting entity. Based on these considerations, no other entities have been included
in the City's reporting entity. Additionally, as the City is considered a primary government for financial
reporting purposes, its activities are not considered a part of any other governmental or other type of
reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations, or functions in the
City's financial reporting entity are based on criteria prescribed by generally accepted accounting
principles. These same criteria are evaluated in considering whether the City is a part of any other
governmental or other type of reporting entity. The overriding elements associated with prescribed
criteria considered in determining that the City's financial reporting entity status is that of a primary
government are that it has a separately elected governing body; it is legally separate; and it is fiscally
independent of other state and local governments. Additional prescribed criteria under generally accepted
accounting principles include considerations pertaining to organizations for which the primary
government
financially accountable; and considerations pertaining to other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete.
As indicated in Note 12, the City participates in a joint venture (Blackhawk Regional Waste Treatment
Plant) with three other entities, under the authority of the Gulf Coast Waste Disposal Authority. This
venture is accounted for under the equity method in the City's Enterprise Fund.
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CITY OF FRIENDSWOOD
Exhibit A-6
3 NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Fund Accounting
The accounts of the City are organized on the basis of funds or account groups, each of which is
considered to be a separate accounting entity. The operations of each fund are accounted for by providing
a set of self-balancing accounts which consist of each fund's assets, liabilities, fund equity, revenues, and
expenditures or expenses, as appropriate. The following paragraphs describe the various fund types and
account groups.
Governmental Fund Types
General Fund(Budgeted)
The General Fund accounts for the resources used to finance all the operations of the City not properly
included in other funds. The principal sources of revenue of the General Fund include property taxes,
sales and use taxes, franchise taxes, fines and forfeitures, permits and fees, and charges for sanitation
services. Expenditures include general government, public safety, public works, community
development, and community services.
Special Revenue Funds (Budgeted)
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted or designated for specified activities.
Debt Service Fund(Budgeted)
The Debt Service Fund is used to account for the accumulation of resources for the retirement of
general long-term debt and related costs. The primary source of revenue of the Debt Service Fund is
property taxes.
Proprietary Fund Type(Unbudgeted)
Enterprise Fund
The Enterprise Fund is used to account for the operations that provide water and wastewater utility
services to the public. These services are financed and operated in a manner similar to private
business enterprises where the intent of the Council is that costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis will be financed or recovered
primarily through user charges. Proprietary fund types follow generally accepted accounting
principles prescribed by the Governmental Accounting Standards Board (the GASB), and all Financial
Accounting Standards Board's standards issued before November 30, 1989. After this date, the City
accounts for its proprietary funds as presented by the GASB.
Fiduciary Fund Type (Unbudgeted)
Trust Fund
The Non-Expendable Trust Fund (1776 Park) is used to account for assets held by the City in a trustee
capacity or as an agent for individuals, private organizations, other governments and/or other funds.
This fund is accounted for on the same basis as proprietary funds.
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CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Fund Accounting(continued)
Account Groups
General Fixed Assets
The General Fixed Assets Account Group is used to account for the City's land, buildings,
improvements, and equipment, except those recorded in proprietary and fiduciary fund types.
General Long-Term Debt
This account group is used to account for the City's liability for general obligation bonds, certificates
of obligation, notes payable, and capital leases which are payable from governmental fund resources.
The debt is offset by the amount available in the Debt Service Fund and the amount to be provided in
future years.
C. Basis of Accounting
The basis of accounting is the method by which revenues and expenditures or expenses are recognized lin
the accounts and reported in the financial statements. The accounting and financial reporting treatment
applied to a fund is determined by its measurement focus. All Governmental Fund Types are accounted
for using a current financial resources measurement focus. With this measurement focus, only current
assets and current liabilities generally are included on the balance sheet. Operating statements of these
funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and
other financing uses) in net current assets.
The Proprietary Fund Type and the Non-expendable Trust Fund are accounted for on a flow of economic
resources measurement focus. With this measurement focus, all assets and liabilities associated with the
operation of this fund are included on the balance sheet. Fund equity (i.e., net total assets) is segregated
into contributed capital and retained earnings components. Operating statements for these funds present
increases (i.e., revenues)and decreases (e.g., expenses) in net total assets.
The modified accrual basis of accounting is used by the Governmental Fund Types. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual, i.e., both measurable
and available. "Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. Most types of revenue are recorded as revenues when received in cash because they are
generally not measurable until actually received. Revenues susceptible to accrual are property taxes,
franchise taxes, sales taxes, licenses, interest revenues, and charges for services. Property taxes, sales
taxes, and franchise taxes collected after the fiscal year end which should be available to finance current
operations are immaterial and remain deferred. Fines and permits are not susceptible to accrual because
generally they are not measurable until received. Investment earnings are recorded as earned since they
are measurable and available. Under the modified accrual basis of accounting, expenditures (including
capital outlay) are recorded when the liability is incurred, except for general obligation debt principal and
interest which are recorded when paid rather than when incurred.
The Proprietary Fund Type and Non-expendable Trust Fund are accounted for using the accrual basis of
accounting, whereby revenues are recognized in the period in which they are earned and expenses are
recognized in the period in which they are incurred.
5
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CITY OF FRIENDS WOOD
Exhibit A-6
3 NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Budgets
Procedures in establishing budgetary data reflected in the financial statements are as follows:
1. On or before the first day of August of each year, the City Manager shall submit to the Council a
proposed budget and an accompanying message. The Council shall review the proposed budget and
revise as deemed appropriate prior to general circulation for public 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 funds 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. Lapse of Appropriations: Every appropriation, except an appropriation for a capital expenditure, shall
lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An
appropriation for a capital expenditure shall continue in force under the purpose for which it was
made until it has been accomplished or abandoned. The purpose of any such appropriation shall be
deemed abandoned if three years pass without disbursement from or encumbrance of the
appropriation.
5. Annual appropriations budgets are adopted for the General, certain Special Revenue, and Debt
Service Funds and are prepared on a basis consistent with generally accepted accounting principles
(GAAP) at the departmental level, the legal level of budgetary control. An annual non-appropriated
budget is adopted for the City's Water and Sewer Enterprise Fund on a non-GAAP basis for
managerial control.
6. Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting - under which purchase orders, contracts, and other commitments for the
expenditure of resources are recorded to reserve that portion of the applicable appropriation -is
utilized in the governmental funds. Encumbrances outstanding at year-end are reported as
reservations of fund balances and do not constitute expenditures or liabilities because the
commitments will be honored during the subsequent year. Encumbrances lapse at year end and are
reappropriated in the ensuing years budget.
37
fCITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Budgets (continued)
Budget amendments were adopted for various funds during the year to increase expenditures and other
uses. The amounts reported in the accompanying financial statements represent the original budgeted
amounts plus all supplemental appropriations.
During the 2000 fiscal year, expenditures exceeded appropriations at the departmental level (the legal
level of compliance) in the General Fund: Public Safety by approximately $42,000 and Public Works by
approximately $34,000.
A reconciliation of budgeted special revenue fund operations to total special revenue fund operations
follows:
Unbudgeted
Special
Revenue
Exhibit A-3 Fund Exhibit A-2 la
Revenues $ 255,378 $ 11,456 $ 266,834
Expenditures 701,489 701,489
Revenue Over(Under) Expenditures (446,111) 11,456 (434,655)
Other Financing Sources 500,000 500,000
Revenues and Other Financing Sources
Over Expenditures 53,889 11,456 65,345
Beginning Fund Balance 11,694 11,694
Ending Fund Balance $ 65,583 $ 11,456 $ 77,039
E. Cash and Temporary Investments
All investments are stated at cost, which approximates fair value. The City holds all investments until
maturity date.
The City maintains a pooled cash and investments account for all funds of the City. Each fund's positive
equity in the pooled cash account is presented as "cash and temporary investments" in the financial
statements. Negative equity balances have been reclassified and are reflected as interfund accounts
payable. Interest income and interest expense are allocated to each respective individual fund monthly !!
based on their respective fund balances.
For the purpose of the Statement of Cash Flows, all highly liquid temporary investments and investments
with a maturity of three months or less when purchased are considered to be cash equivalents.
F. Fund Equity
Contributed capital is recorded in the Enterprise Fund which has received capital grants, contributions
from developers and customers, and/or other funds of the City. Reserved fund balances represent those
portions of fund balance not appropriable for expenditure or legally segregated for a specific future use.
Designated fund balances represent management's tentative plans for future use of financial resources.
38
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
G. Interfund Transactions
Interfund transactions that would be treated as revenues, expenditures, or expenses if they involved
organizations external to the governmental unit are accounted for as revenues, expenditures, or expenses
in the funds involved. Transactions which constitute reimbursements of a fund for expenditures or
expenses initially made from that fund which are properly attributable to another fund are recorded as
expenditures or expenses in the reimbursing fund and primarily as reductions of the expenditure or
expense in the fund that is reimbursed.
Non-recurring or non-routine transfers of equity between funds are reported as additions to or reductions
of the fund balance of Governmental Funds. Transfers of equity to the Enterprise Fund are treated as
contributed capital, and such transfers from the Enterprise Fund are reported as reductions of retained
earnings or contributed capital, as is appropriate in the circumstances. All other legally authorized
transfers are treated as operating transfers and are included in the results of operations of both the
Governmental and Proprietary Fund Types.
H. Compensated Employee Absences
The City's employees earn vacation and sick leave which may either be taken or accumulated, up to
certain amounts, until paid upon termination or retirement.
The City accrues vacations and sick leave based on criteria established by the Governmental Accounting
Standards Board. For all funds, this liability reflects amounts attributable to cumulative employee
services previously rendered, where the payment is probable and can be reasonably estimated. The
liability for accumulated vacation and sick leave, as of September 30, 2000, has been recorded in the
General and Enterprise Funds since the liability is to be liquidated with expendable available resources.
I. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of funds are recorded in the accounting system in order to reserve the portion of the
applicable appropriation, is employed in the governmental funds. Appropriations lapse at fiscal year-end.
Encumbrances that have not been liquidated are reported as reservations of fund balances since they do
not constitute expenditures or liabilities.
J. Inventories
Inventories are recorded in the General and Enterprise Funds and are stated at cost, using the first-in, first-
out method. Inventories consist of expendable supplies held for consumption, and the cost thereof is
recorded as an expense/expenditure at the time the inventory items are issued(Consumption method).
39
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. Fixed Assets
General Fixed Assets
General fixed assets have been acquired or constructed for general governmental purposes. Such fixed
assets are recorded as expenditures in the Governmental Funds and capitalized at historical cost in the
General Fixed Assets Account Group. Gifts or contributions of general fixed assets are recorded at
estimated fair value upon receipt. Public domain ("infrastructure") general fixed assets consisting of
certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and
sidewalks, drainage systems, and lighting systems are capitalized as general fixed assets. No depreciation
has been provided on general fixed assets.
Enterprise Fund Fixed Assets
The land, buildings, and equipment owned by the Enterprise Fund are recorded at historical cost or at
estimated fair value for contributed assets. Interest costs during construction are capitalized when the
effects of capitalization materially impact the financial statements. Some of the assets on which such
interest was capitalized are still under construction and are classified as construction in progress in the
Enterprise Fund. Depreciation of buildings and equipment is provided using the straight-line method over
the following estimated useful lives:
Years
Water and sewer system 40-50
Equipment 5-10
Additions to the water and sewer systems are financed principally from sources other than Enterprise
Fund operating revenues such as long-term debt and contributed capital. The costs of normal maintenance
and repairs are charged to operations as incurred. Improvements that extend the useful lives of the assets
are capitalized.
L. Total Columns on Combined Statements
Total columns presented in the combined financial statements are captioned (Memorandum Only) to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not
represent financial position, results of operations, or cash flows on a consolidated basis in conformity
with generally accepted accounting principles. Interfund eliminations have not been made in the
aggregation of this data. Certain reclassifications have been made to the prior year totals to conform with
the current year presentation.
M. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of financial statements an the
reported amounts of revenues and expenditures during the reporting period. Actual results could differ
from those estimates.
40
CITY OF FRIENDS WOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - CASH AND TEMPORARY INVESTMENTS
The City's cash and investments are classified as: cash and temporary investments and restricted cash and
temporary investments. Cash and temporary investments include cash on hand, deposits with financial
institutions, short term investments in a state-managed public funds investment pool account (Texpool,),
two privately-managed public funds investment pools (Lone Star and MBIA). Investments, which have a
maturity at purchase of greater than three months, consist mainly of US government treasury bills,
treasury notes and other US government obligations. The restricted cash and investments are the assets
restricted for specific use. The restricted cash includes cash on deposit with financial institutions and
Texpool. At year-end, the carrying value of cash and cash equivalents (which approximated fair value)
consisted of:
Credit Risk Carrying
Category Amount
Demand and time deposits 1 $ 1,774,771
U.S. Government Securities 1 2,635,130
Balances in Public Investment Pools
MBIA 8,743,364
Texpool 905,381
LOGIC
Lone Star Investment Pool 788,931
Total cash and cash equivalents 14,847,577
Less restricted cash and cash equivalents 7,415,325
Unrestricted cash and cash equivalents $ 7,432,252
Credit Risk Categorization for Deposits
Cash deposits held at financial institutions can be categorized according to three levels of risk. These
three levels of risk are:
Category 1- Deposits which are insured or collateralized with securities held by the City or by its
agent in the City's name.
Category 2- Deposits which are collateralized with securities held by the pledging financial
institution's trust department or agent in the City's name.
Category 3- Deposits which are not collateralized or collateralized with securities held by the
pledging financial institution or by its trust department or agent but not in the City's
name.
At September 30, 2000, all of the City's cash deposits were insured or collateralized as described under
category 1 above.
41
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS •
NOTE 2—CASH AND I TEMPORARY INVESTMENTS (continued)
Credit Risk Categorization for Investments
The carrying amounts and fair values of the City's investments can be categorized according to three
levels of risk. These credit risk categories are as follows:
111
Category 1- Insured or registered, or securities held by the entity or its agent in the entity's name,
Category 2- Uninsured and unregistered, with securities held by the counter-party's trust department
or agent in the entity's name,
Category 3- Uninsured and unregistered, with securities held by counter-party or by its trust
department or agent but not in the entity's name.
The deposits in MBIA, Texpool and Lone Star are not evidenced by securities that exist in physical or book
entry form and, accordingly, are not categorized by risk. However, the nature of these funds requires that
they be used to purchase investments authorized by the Public Funds Act. The primary objective of these
investment pools is to provide a safe environment for the placement of public funds in short-term, fully
collateralized investments.
MBIA, Texpool and Lone Star operate in a manner consistent with the SEC's Rule 2a7 of the Investment
Company Act of 1940. The pools use amortized cost, rather than market value, to report net assets to
compute share prices. Accordingly, the fair value of the positions in these pools is the same as the values of
the pools' shares.
Fair value of investments are based on quoted market prices in accordance with GASB Statement No. 31,
Accounting and Financial Reporting for Certain Investments and for External Investment Pools. The
amount of increase or decrease in the fair value of investments during the year ended September 30, 2000
was not significant.
Texpool
The State Comptroller of Public Accounts exercises oversight responsibility over Texpool, the Texas Local
Government Investment Pool. Oversight includes the ability to significantly influence operations,
designation of management and accountability for fiscal matters. Additionally, the State Comptroller has
established an advisory board composed of both participants in Texpool and other persons who do not have
a business relationship with Texpool. The Advisory Board members review the investment policy and
management fee structure. Finally, Texpool is rated AAAm by Standard & Poors, as well as the office of
the Comptroller of Public Accounts for review.
Lone Star
The Lone Star investment pool was created pursuant to the Interlocal Cooperation Act, Texas Government
Code, Chapter 791, and the Public Funds Investment Act, Texas Government Code, Chapter 2256. The
primary objective of this pool is to maintain the safety of principal, while providing participating
government entities with the highest possible rate of return for invested funds. Participants own pro rata
interests in the underlying assets of the fund in which they participate. A participant's sole source of
payment from its investment in the pools is the market value of such assets.
42
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 2—CASH AND I TEMPORARY INVESTMENTS (continued)
Pursuant to investment agreements approved by each participant with the pool, the business and affairs of
the pools are required to be managed by the pool's Board of Trustees (the Board.) The Board is consists of
members, representing entities that have adopted the investment agreements. The duties of the board
includes, but are not limited to, adopting investment policies, appointing investment officers, overseeing the
selection of investment managers, custodian banks, investment consultants, and other service providers,
monitoring compliance with the pool's investment policy, monitoring performance, and revising the
investment policies to reflect changing conditions affecting the pool or the needs of the participants.
Pursuant to Section 2256.016(g) of the Investment Act, these pools have established advisory boards
composed of participants and other knowledgeable individuals. The purpose of the advisory boards shall be
to gather and exchange information from participants and non-participants relating to the pools' operations.
MBIA—Texas CLASS
Texas Cooperative Liquid Assets Securities System Trust ("Texas CLASS") is a Texas public funds
investment pool as described in Section 2256.016, Texas Government Code, as amended, established under
a Trust Agreement, dated as of January 1, 1996, as amended, among certain Texas municipalities, counties,
school districts and other public entities (the "Participants"), Bank One, Texas, N.A., as Custodian, and
MBIA Municipal Investors Service Corporation, an investment management firm registered under the
Investment Advisers Act of 1940, as Program Administrator(the "Program Administrator").
The Participants elect Texas CLASS' Board of Trustees, which exercises oversight responsibility over
Texas CLASS. Oversight includes accountability for fiscal matters and the ability to influence operations
significantly and to designate management. Under the Trust Agreement, the Program Administrator
administers the operation of Texas CLASS and provides for the investment and management of Texas
3 CLASS' funds, subject to the overall supervision of the Board of Trustees.
Texas CLASS is rated AAA/V 1+ by Fitch and operates in a manner consistent with SEC Rule 2a-7
promulgated under the Investment Company Act of 1940, even though Rule 2a-7 is not applicable to Texas
CLASS. Texas CLASS uses amortized cost rather than market value to report net assets to compute share
prices. Accordingly, the fair value of the position in Texas CLASS is the same as the value of Texas
CLASS shares.
Investment Policies
City council has adopted a written investment policy regarding the investments of its funds as defined by the
Public Funds Investment Act of 1995 (Chapter 2256,Texas Government Code). The Investments of the City are
in compliance with the council's investment policies. The City did not have any derivative investment products
during the current year. All significant legal and contractual provisions for investments were complied with
during the year. Investments at year end are representative of the types of investments maintained by the City
during the year.
43
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 3 - PROPERTY TAXES
The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed
values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at
market value and assessed at 100% of appraised value less exemptions. The City's property taxes are billed
and collected by the City's Tax Assessor/Collector. Such taxes are applicable to the fiscal year in which they
are levied and become delinquent with an enforceable lien on property on February 1 of the subsequent
calendar year.
Property taxes are prorated between operations and debt service based on rates adopted for the year of the
levy. For the current year, the City levied property taxes of$0.6385 per $100 of assessed valuation which
were prorated between operations and debt service in the amounts of$0.5542 and$0.0843,respectively. The
resulting adjusted tax levy was approximately $7.2 million based on a total adjusted taxable valuation of
approximately$1.1 billion for the 1999 tax year.
Property taxes receivable, at September 30, 2000,consists of the following:
Tax Year General Fund Debt Service Total
1999 $ 111,073 $ 16,891 $ 127,964
1998 35,675 3,276 38,951
1997 15,026 1,951 16,977
1996 9,439 2,062 11,501
1995 6,599 2,081 8,680
1994 and prior 83,945 32,213 116,158
allowance for
uncollectibles (35,883) (15,164) (51,047)
$ 225,874 $ 43,310 $ 269,184
E
:,
i,
44
CITY OF FRIEND SWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
INOTE 4- LAND,BUILDINGS,AND EQUIPMENT
A summary of changes in the General Fixed Assets Account Group, for the year ended September 30, 2000,
Ifollows:
Balance Balance
I October 1, Retirements September 30,
1999 Additions and Transfers 2000
Land $ 3,337,140 $ 64,851 $ 3,401,991
I Buildings 4,726,051 182,679 8,447 4,917,177
Improvements other
than buildings 17,933,869 593,934 182,560 18,710,363
Furniture and equipment 5,309,050 917,041 (547,670) 5,678,421
I Construction in progress 323,263 1,081,870 (191,008) 1,214,125
Total $ 31,629,373 $ 2,840,375 $ (547,671) $ 33,922,077
I
Construction in progress and remaining commitments under related construction contracts for general
Igovernment construction projects at September 30, 2000 is as follows:
Total in Remaining
I Project Description Progress Commitment
New Public Safety Center $ 16,005 $ 8
Centennial Park 1,198,120 375,954
Total $ 1,214,125 $ 375,962
A summary of Enterprise Fund fixed assets at September 30, 2000,follows:
3 Balance Balance
October 1, Retirements September 30,
1999 Additions and Transfers 2000
Land $ 643,097 $ 32,468 $ $ 675,565
I Plant and equipment 18,038,645 54,354 (5,000) 18,087,999
Water and sewer lines 16,446,586 303,648 603,640 17,353,874
Construction in progress 603,639 254,701 (600,922) 257,418
I35,731,967 645,171 (2,282) 36,374,856
Less accumulated depreciation (11,637,117)_ (950,796) 5,000 (12,582,913)
Total $ 24,094,850 $ (305,625) $ 2,718 $ 23,791,943
The Trust and Agency fund accounts for its own land and improvements in the amount of$57,200.
I
45
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - LONG-TERM DEBT
r
The City issues a variety of long-term debt instruments in order to acquire and/or construct major capital
facilities and equipment for general government and enterprise fund activities. These instruments include
general obligation bonds, certificates of obligation, revenue bonds, notes payable, and capital leases.
These debt obligations are secured by either future tax revenues, water and sewer system revenues, or
liens on property and equipment. Debt obligations that are intended to be repaid from water and sewer
system revenues have been recorded in the City's Enterprise Fund. All other long-term obligations of the
City have been recorded in the General Long-Term Debt Account Group.
Bonds Payable and Certificates of Obligation
A summary of the terms of general obligation bonds,combination tax and revenue bonds, and certificates
of obligation outstanding and their corresponding allocations to the General Long-Term Debt Account
Group and the Enterprise Fund at September 30, 2000 follows:
ir.
Series and Original Issue Interest Rate General Long- Enterprise
Amount Final Maturity (%) Term Debt Fund
General Obligation Bonds
1986 Refunding Bonds
$ 10,650,777 2004 4.25 - 7.90 $ 71,469 $ 58,476
1993 Refunding Bonds
$ 6,555,000 2004 2.25 -4.625 528,750 1,586,250
Less unamortized bond issuance costs (41,035)
600,219 1,603,691
Revenue Bonds
1999 Waterworks and Sewer System Revenue Bonds
$ 4,945,000 2019 4.2% - 5.55% 4,945,000
2000 Waterworks and Sewer System Revenue Bonds
$ 3,515,000 2019 4.2% - 6.5% 3,515,000
Less unamortized bond issuance costs (71,158)
8,388,842
Combination Tax and Revenue
Certificates of Obligation
1992 Series $ 5,000,000 2008 5.30 - 6.75 1,830,000 2,345,000
1995 Series $ 3,200,000 2010 5.375 - 7.375 2,910,000
1,830,000 5,255,000
Total Bonds and Certificates of Obligation $ 2,430,219 $ 15,247,533
1
46
CITY OF FRIENDSWOOD
Exhibit A-6
INOTES TO FINANCIAL STATEMENTS
INOTE 5 - LONG-TERM DEBT (continued)
Annual debt service requirements for bonds and certificates of obligation are as follows:
IGeneral
Obligation Certificates of
Fiscal Year Bonds Obligation Revenue Bonds
2001 $ 748,610 $ 637,702 871,621
2002 666,761 712,411 489,433
2003 668,281 714,879 487,608
I 2004 663,066 717,730 485,783
2005 1,219,814 546,745
2006 1,221,302 550,170
I 2007 1,220,848 552,945
2008 1,226,976 545,395
2009 884,175 537,845
2010 893,381 530,295
I 2011 1,045,052
2012 1,040,140
2013 1,046,887
I 2014 1,050,797
2015 1,049,045
2016 1,050,817
2017 1,051,926
I 2018 1,054,615
2019 1,053,720
I Total requirements 2,746,718 9,449,218 15,040,839
less interest portion (501,773) (2,364,218) (6,580,839)
$ 2,244,945 $ 7,085,000 $ 8,460,000
Accretion on Premium Compound Interest Bonds
A portion of the bonds sold in the Series 1986 refunding bond issue were premium compound interest bonds.
I These obligations have par values of$129,944 and maturity values of$435,000. The interest these obligations
will be paid upon maturity in the fiscal years ending September 30, 2001, through 2004. The accreted values of
these bonds at September 30, 2000, is approximately $383,648 of which $172,642 has been allocated to the
I Enterprise Fund and$211,006 has been allocated to the General Long-Term Debt Account Group. Accordingly,
accretion on these bonds of approximately $114,167 and $139,537 has been recorded in the Enterprise Fund and
the General Long-Term Debt Account Group, respectively.
I
I
I
I
47
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - LONG-TERM DEBT (continued)
Obligations Under Capital Leases
The City entered into capital lease agreements in order to purchase management information system equipment
for City Hall and the police and fire departments. Following is a summary of future lease payments due on this
equipment:
Lease
Fiscal Year Obligation
2001 $ 214,112
2002 189,917
2003 101,120
2004 91,982
2005 80,572
2006 80,572
2007 80,572
2008 80,573
2009 20,071
Total 939,491
less interest portion (164,048)
Obligations under capital leases $ 775,443
Changes in Long-Term Debt
The following are summaries of long-term debt transactions of the City for the year ended September 30,
2000.
General Long-Term Debt Account Group
Balance, Balance,
October 1, September 30,
1999 Additions Retirements 2000
General obligation bonds $ 888,677 $ (288,458) $ 600,219
Certificates of obligation 1,910,000 (80,000) 1,830,000
Obligations under capital
leases 350,978 574,856 (150,391) 775,443
Accreted interest on premium
compound interest bonds 414,197 (274,659) 139,538
$ 3,563,852 $ 574,856 $ (793,508) $ 3,345,200
1
Enterprise Fund Long-Term Debt
Balance, Balance,
October 1, September 30,
1999 Additions Retirements 2000
General obligation bonds $ 2,091,213 $ (487,522) $ 1,603,691
Revenue bonds $ 8,388,842 8,388,842
Certificates of obligation 5,425,000 (170,000) 5,255,000
Accreted interest on premium
compound interest bonds 338,888 (224,721) 114,167
$ 7,855,101 $ 8,388,842 $ (882,243) $ 15,361,700
I
48
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 6- FUND EQUITY
Reservations and Designations of Fund Balance
Fund Balances in the various Governmental Fund Types and Non-Expendable Trust Fund are reserved or
designated as described on the face of the general purpose financial statements.
NOTE 7 - INTERFUND TRANSFERS
During the year ended September 30, 2000 the following operating transfers were made:
Operating Operating
Transfer From Transfer To Amounts
Enterprise Fund General Fund $ 546,113
NOTE 8-IMPACT FEES
On April 27, 1990, the City, in conformance with the provisions of Senate Bill 336 and House Bill 1786,
adopted a Capital Improvements Plan for Water Supply and Distribution Improvements and for Wastewater
Treatment and Collection Improvements that were needed to serve new developments. An Impact Fee
Structure to defray the costs of these improvements was also adopted.
In recent years, the City has committed funds to the construction of surface water facilities and wastewater
capacity necessary to provide service to current residents, as well as for projected development within the
City. The cost of water and wastewater capacity that has been constructed to support new growth is reflected
in the City Wide impact fees.
Based on population growth projections, two areas (Melody Lane and Central Service Area) within the City
were identified for the proposed extension of water distribution and wastewater collection systems and are
included in the impact fee structure. An impact fee was also included to defray the costs of water
distribution facilities extended to the Bay Area Boulevard Service Area under the terms of a contractual
agreement with Bay Area Land Company,Ltd.
The Capital Improvements Plan and Impact Fee structure was amended by City Council on January 7, 1991,
to include an impact fee for sanitary sewer collection system costs serving the area known as Mills, Murphy,
and Briarmeadow Avenue between Sunset Drive and Greenbriar.
The following is a summary of the Impact Fees that apply on a City Wide Basis and for each of the
designated service areas. The fees represent the charge for single equivalent service units as defined in the
Capital Improvement Plan.
49
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 8-IMPACT FEES (continued)
Fee Per Single
Equivalent
Service Unit
City Wide Impact Fees
Surface water facilities $ 685
Wastewater treatment facilities 69
Impact fee study and update study 36
Total City Wide Impact Fee 790
Water Distribution Impact Fees
Melody Lane service area 854
Bay Area Boulevard service area 294
South Friendswood service area 293
Wastewater Collection Impact Fees
Melody Lane service area 450
Mills, Murphy, Briarmeadow Avenue 2,532
South Friendswood Service Area
Area A 378
Area B-1 378
Area B-2 378
Area C 285
Area D 161
Area E-1 784
Area E-2 784
Area E-3 161
Area E-4 161
Area F 378
The impact fees are deposited into a separate, interest bearing bank account in compliance with the
referenced legislation and transferred to the Enterprise Fund cash account as needed. The impact fees and
interest income for each service area are maintained in separate equity schedules. Interest is applied based on
a percentage of the daily equity balance of each service area.
The portion of City Wide Impact Fees collected for Surface Water Facilities are used to meet the current debt
service obligations for the 1988 Certificates of Obligations issued to fund the surface water facilities capital
improvements. The remaining City Wide Impact Fees collected for Wastewater Treatment Facilities and
Impact fee study and Update Study are used to fund other water and wastewater system improvements. All
Impact Fees collected for specific service areas are used to fund new capital improvements for those
designated areas.
50
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 9- EMPLOYEE RETIREMENT SYSTEM
Plan Description
The City provides pension benefits for all of its full-time employees through a nontraditional, joint
contributory, defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS). The City
is one of 717 municipalities having the plan administered by the by TMRS. Each of the 717 municipalities
has an annual, individual actuarial valuation performed. All assumptions for the 12-31-99 valuations are
contained in the 1999 TMRS Comprehensive Annual Financial Report, a copy of which may be obtained by
writing P.O. Box 149153, Austin,Texas 78714-9153.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City
financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for
service rendered before the plan began of a theoretical amount equal to two times what would have been
contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service
since the plan began are a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In
addition, the City can grant as often as annually another type of monetary credit referred to as an updated
service credit which is a theoretical amount which, when added to the employee's accumulated contributions
and the monetary credits for service since the plan began, would be the total monetary credits and employee
contributions, accumulated with interest, if the current employee contribution rate and City matching percent
had always been in existence; and if the employee's salary had always been the average of his salary in the
last three years that are one year before the effective date. At retirement, the benefit is calculated as if the
sum of the employee's accumulated contributions, with interest, and the employer-financed monetary credits,
with interest, were used to purchase an annuity.
Members can retire at age 60 and above with 10 or more years of service or with 20 years of service
regardless of age. A member is vested after 10 years. The plan provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS and within the actuarial
constraints also in the statutes.
Contributions
The contribution rate for the employees is 7%, and the City matching ratio is currently 2 to 1, both as
adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually
determines the City contribution rate. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The
normal cost contribution rate finances the currently accruing monetary credits due to the City matching
percent, which are the obligation of the City as of an employee's retirement date, not at the time the
employee's contributions are made. The normal cost contribution rate is the actuarially determined percent
of payroll necessary to satisfy the obligation of the City to each employee at the time his/her retirement
becomes effective. The prior service contribution rate amortizes the unfunded (overfunded) actuarial
liability (asset) over the remainder of the plan's 25-year amortization period. When the City periodically
adopts updated service credits and increases its annuities in effect, the increased unfunded actuarial liability
is to be amortized over a new 25-year period. The unit credit actuarial cost method is used for determining
the City contribution rate. Both the employees and the City make contributions monthly. Since the City
needs to know its contribution rate in advance to budget for it, there is a one-year delay between the
actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect (i.e.
December 31, 1998 valuation is effective for rates beginning in January 2000).
51
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 9 - EMPLOYEE RETIREMENT SYSTEMS (continued) IP
Annual Pension Cost
Because the actuary determines contribution rates on an annual basis and the City pays the calculated rate each
month, the City will always have a net pension obligation(NPO) of zero at the beginning and end of the period,
and the annually required contributions (ARC) will always equal contribution made.
Fiscal Year Annual
Ending Sep. Pension Cost Percentage Net Pension
30 (APC) Contributed Obligation
1997 $ 324,151 100% $ -
1998 358,205 100% -
1999 597,548 100% -
2000 701,196 100% -
Required Supplemental Information
A schedule of funding of funding progress for TMRS for the three most recent actuarial valuations may be
found in the required supplementary information section of the City's Comprehensive Annual Financial Report.
1144,
Information regarding actuarial assumptions is included in the same section.
NOTE 10- DEFERRED COMPENSATION PLAN
The City offers its employees a tax-deferred compensation plan meeting the requirements of Internal
Revenue Code Section 457. The plan was established by City ordinance that appointed ICMA Retirement
Corporation as plan administrator. The City's fiduciary responsibility is to remit employee deferred
compensation to the administrator on a regular basis. The deferred compensation is not available to
employees until termination, retirement, death, or emergency.
NOTE 11 - SOUTHEAST WATER PURIFICATION PLANT
The City has entered into a contract with the City of Houston for constructing, operating, and maintaining a
water purification plant known as Southeast Water Purification Plant. The City's pro rata share of the actual
production construction costs of the project is 3.75 percent. The City's pro rata share of the actual pumping
construction costs is 1.33 percent.
The City began receiving water from the plant on October 15, 1990. The City is billed on a monthly basis
for the actual gallons of water received times the City's pro rata share of actual costs. At the end of each
quarter, the City of Houston computes the total operation and maintenance expense for the quarter just
ended,recalculates the cost per one thousand gallons, and adjusts previous billings on the next invoice.
The relationship of the parties is of a fiduciary character. No partnership or joint venture is created by this
contract.
52
CITY OF FRIENDSWOOD
Exhibit A-6
3 NOTES TO FINANCIAL STATEMENTS
NOTE 12- BLACKHAWK REGIONAL WASTE TREATMENT PLANT
The City has entered into an arrangement with the Gulf Coast Waste Disposal Authority for the operation
and maintenance of a joint treatment plant known as Blackhawk Regional Waste Treatment Plant. The City
of Friendswood, the City of Houston, Harris County MUD No. 55, and Baybrook MUD 1, (the
"participants") share in the expense of operation and maintenance based on their respective usage on a
monthly basis. The percentages of equity in the joint venture based on their respective capacity rights at
September 30, 2000 are as follows:
City of Friendswood 52.47%
City of Houston 16.18%
Harris County MUD No. 55 20.27%
Baybrook MUD No. 1 11.08%
100.00%
An annual budget for operations is submitted to the Gulf Coast Waste Disposal Authority each year. The
Gulf Coast Waste Disposal Authority is the governing authority and consists of nine members (three
appointed by the governor, three appointed by Harris County, Galveston County, and Chambers County, and
three appointed by the participants).
Separate financial statements for the joint venture were available in the December 31, 1999 audited financial
statements of the Gulf Coast Waste Disposal Authority and are summarized below:
Joint
Venture
Total assets $ 446,606
Total liabilities (446,606)
Total fund equity $
Total revenues $ 1,537,244
Total expenditures (1,537,244)
Net increase/decrease $
53
CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 13 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City's risk management program p
encompasses obtaining property and liability insurance through Texas Municipal League (TML), an
Intergovernmental Risk-Pool. The City has not had any significant reduction in insurance coverage and the
amounts of insurance settlements have not exceeded insurance coverage for any of the last three years. The
participation of the City in TML is limited to payment of premiums. During the year ended September 30, E
2000 the City paid premiums to TML for provisions of various liability, property and casualty insurance. The
City has various deductible amounts ranging from $500 to $5,000 on various policies. At year-end, the City
did not have any significant claims.
The City also provides workers compensation insurance on its employees through TML.. Workers
compensation is subject to change when audited by TML. At year end September 30, 2000 the City believed
the amounts paid on workers compensation would not change significantly from the amounts recorded.
During the year ended September 30, 2000 employees of the City were covered by a health and dental •
insurance plan. Employees have the option to select either a HMO or a Point of Service (POS) plan. If
individual employees chooses to cover only their selves, the city pays 90% of the monthly premium. If
individual employees desire to cover themselves and their dependents, the city pays 70% of the monthly ■
premium.
P
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1
CITY OF FRIENDSWOOD, TEXAS
IREQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION Exhibit A-7
September 30, 2000
TEXAS MUNICIPAL RETIREMENT SYSTEM(UNAUDITED)
I Schedule of Funding Progress
Unfunded
Actuarial (UAAL)as a
I Actuarial Actuarial Accrued Annual Percentage of
Valuation Actuarial Accrued Percentage Liability Covered Covered
Date Dec.31 Value of Assets Liability Funded (UAAL) Payroll Payroll
I 1994 $ 5,190,936 $ 5,862,152 88.6% $ 671,216 $ 3,892,013 17.2%
1995 5,838,306 6,559,465 89.0% 721,159 4,150,533 17.4%
1996 6,820,691 7,531,703 90.6% 711,012 4,455,830 16.0%
I 1997 7,798,961 8,694,662 89.7% 895,701 4,471,928 20.0%
1998 8,967,149 11,467,709 78.2% 2,500,560 5,148,362 48.6%
1999 8,967,149 11,467,709 78.2% 2,500,560 5,148,363 48.6%
2000 10,377,128 13,169,487 78.8% 2,792,359 5,215,264 53.5%
Schedule of Annual Pension Costs
Annual
I Calendar Pension Cost Percentage
Year (APC) Contributed
1994 $ 207,130 100%
I 1995 257,192 100%
1996 284,653 100%
1997 324,151 100%
I 1998 358,205 100%
1999 597,548 100%
2000 701,196 100%
The City's annual covered payroll and annual pension cost are presented on a calendar year basis to coincide
with the actuarial valuation dates. Because the City's makes all of the annual required contributions, no net
pension obligation exists. The information presented in the required supplementary schedules was determined
as part of the actuarial valuations at the dates indicated.
Actuarial assumptions used by the plan are as follows:
Valuation date 12/31/1998
Actuarial cost method Unit credit
IAmortization method Level percent of payroll
Remaining amortization period 25 years -Open
I Asset valuation method Amortized cost
Investment rate of return 8.00%
Projected salary increase None
I Includes inflation at None
cost-of-living adjustments None
55
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COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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IGENERAL FUND
I 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.
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-1
COMPARATIVE BALANCE SHEET
September 30,2000 and 1999
2000 1999
Assets
Cash and temporary investments $ 4,802,850 $ 4,462,861
Receivables, less allowance for uncollectibles
Taxes 225,874 172,338
Customer accounts 80,145 72,505
Other 83,169 70,060
Due from other governments 41,969 62,730
Inventory 4,266 4,129
Prepaid and other assets 24,676 16,043
Total Assets $ 5,262,949 $ 4,860,666
Liabilities and Fund Balance
Liabilities
Accounts payable $ 222,737 $ 390,926
Accrued liabilities 181,147 49,372
Compensated absences and payroll liabilities 854,776 809,292
Deferred revenue 316,339 273,472
Total Liabilities 1,574,999 1,523,062
Fund Balance
Reserved for encumbrances 820,966 650,599
Reserved for Inventories and prepaids 28,942 20,172
Unreserved:
Designated for construction 169,267 1,199,851
Designated for projects 80,550 116,134
Undesignated 2,588,225 1,350,848
Total Fund Balance 3,687,950 3,337,604
Total Liabilities and Fund Balance $ 5,262,949 $ 4,860,666
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CITY OF FRIENDS WOOD, TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES, EXPENDITURES,AND Page 1 of 8
I CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
I 2000
Variance
Favorable 1999
I Budget Actual (Unfavorable) Actual
Revenues
Property taxes $ 6,272,761 $ 6,267,686 $ (5,075) $ 5,774,453
I Sales taxes 1,879,200 2,048,868 169,668 1,855,121
Franchise fees 841,268 870,839 29,571 821,943
Sanitation 1,027,028 1,027,028 - 1,013,415
I Fines and forfeitures 300,106 416,722 116,616 332,659
Permits and fees 636,616 970,868 334,252 635,905
Intergovernmental 621,770 607,659 (14,111) 534,775
Earnings on investments 188,500 377,013 188,513 271,359
I Other 107,745 224,800 117,055 222,894
Total Revenues 11,874,994 12,811,483 936,489 11,462,524
Expenditures
I General Government:
Mayor and Council:
Personnel services 136 143 (7) 170
I Supplies 1,932 1,629 303 1,915
Other services and charges 56,873 29,747 27,126 42,307
Total Mayor and Council 58,941 31,519 27,422 44,392
ICity Manager:
Personnel services 209,593 204,188 5,405 192,700
Supplies 4,338 5,557 (1,219) 5,567
I Repairs and maintenance 1,138 (1,138) 1,315
Other services and charges 30,316 26,264 4,052 32,141
Total City Manager 244,247 237,147 7,100 231,723
ICity Secretary:
Personnel services 175,811 171,941 3,870 142,819
Supplies 6,230 5,758 472 5,582
I Repairs and maintenance 1,678 865 813 2,872
Other services and charges 20,786 23,271 (2,485) 31,688
Capital outlay 46,225
ITotal City Secretary 204,505 201,835 2,670 229,186
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES, EXPENDITURES,AND Page 2 of 8
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL go
it
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
2000 iii
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Expenditures(continued)
General Government: (continued)
Administration:
Finance:
Personnel services $ 381,653 $ 387,955 $ (6,302) $ 350,383
Supplies 13,782 7,671 6,111 7,516 OP
Repairs and maintenance 254 120 134 129 ti
Other services and charges 28,035 31,219 (3,184) 25,510
Total Finance 423,724 426,965 (3,241) 383,538
Human Resources:
Personnel services 124,678 124,091 587 115,114
Supplies 7,474 6,862 612 6,335
Repairs and maintenance 992 992 ' !
Other services and charges 51,819 56,413 (4,594) 40,837
Total Human Resources 184,963 187,366 (2,403) 162,286
Tax:
Other services and charges 132,715 104,190 28,525 102,197
Economic Development
Personnel services 72,714 70,705 2,009 14,524
Supplies 2,708 1,415 1,293 37
Other services and charges 56,496 26,100 30,396 34,205
Capital outlay 1,250 1,174 76 5,006
Total Economic Development 133,168 99,394 33,774 53,772
Legal:
Other services and charges 200,424 191,694 8,730 64,125
Total Legal 200,424 191,694 8,730 64,125
Municipal Court:
Personnel services 161,192 180,018 (18,826) 158,890
Supplies 5,974 6,786 (812) 5,695
Repairs and maintenance 102 32 70
Other services and charges 11,383 7,921 3,462 6,423
Total Municipal Court 178,651 194,757 (16,106) 171,008
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CITY OF FRIENDSWOOD, TEXAS
IGENERAL FUND Exhibit B-2
STATEMENT OF REVENUES, EXPENDITURES,AND Page 3 of 8
I CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
A
2000
I Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Expenditures (continued)
I General Government: (continued)
Computer Services:
Personnel services $ 125,611 $ 132,066 $ (6,455) $ 115,836
Supplies 20,917 24,675 (3,758) 17,372
Repairs and maintenance 39,054 17,669 21,385 16,866
Other services and charges 369,443 258,867 110,576 275,454
I Capital outlay 104,250 112,804 (8,554) 115,563
Reserves and contingencies 67,693 7,336 60,357
Total Computer Services 726,968 553,417 173,551 541,091
I Risk Management:
Personnel services 5,352 (5,352) 2965.00
Supplies 305 171 134 42
I Other services and charges- insurance 78,478 72,109 6,369 65,359
Total Risk Management 78,783 77,632 1,151 68,366
Total General Government 2,567,089 2,305,916 261,173 2,051,684
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Public Safety:
I Police Services:
Personnel services 2,369,052 2,411,034 (41,982) 2,286,554
Supplies 112,394 99,958 12,436 90,874
Repairs and maintenance 98,911 79,602 19,309 126,567
I Other services and charges 69,954 141,130 (71,176) 123,448
Capital outlay 95,058 66,638 28,420 29,360
Total Police Services 2,745,369 2,798,362 (52,993) 2,656,803
ICommunications:
Personnel services 536,153 541,192 (5,039) 493,930
I Supplies 7,845 3,651 4,194 7,059
Repairs and maintenance 3,560 848 2,712 16,831
Other services and charges 4,667 6,171 (1,504) 3,748
Capital outlay 10,106 10,106 36,510
ITotal Communications 562,331 551,862 10,469 558,078
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1 63
CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES,EXPENDITURES,AND Page 4 of 8
CHANGES IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
r
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Expenditures(continued)
Public Safety: (continued)
Animal Control:
Personnel services $ 125,292 $ 126,740 $ (1,448) $ 114,104
Supplies 10,675 9,931 744 6,166
Repairs and maintenance 2,084 3,345 (1,261) 803
Other services and charges 4,533 2,632 1,901 3,006
Capital outlay 15,700 15,633 67 15,529
Total Animal Control 158,284 158,281 3 139,608
Fire and EMS:
Personnel services 378,624 352,662 25,962 296,848
Supplies 84,361 84,411 (50) 9,710
Repairs and maintenance 52,599 39,750 12,849 173
Other services and charges 141,681 132,730 8,951 247,387
Capital outlay 36,000 40,439 (4,439)
Total Fire and EMS 693,265 649,992 43,273 554,118
Emergency Management:
Personnel services 30,735 28,717 2,018 28,090
Supplies 3,629 2,270 1,359 1,774
Repairs and maintenance 3,274 3,445 (171) 3,255
Other services and charges 2,843 2,488 355 1,701
Capital outlay 125,477 21,050 104,427 24,024
Total Emergency Management 165,958 57,970 107,988 58,844
Total Public Safety 4,325,207 4,216,467 108,740 3,967,451
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I CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES, EXPENDITURES,AND Page 5 of 8
I CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30,2000
with comparative actual balances for the Year Ended September 30, 1999
I 2000
Variance
I Favorable 1999
Budget Actual (Unfavorable) Actual
Expenditures(continued)
I Public Works:
Administration:
Personnel services $ 126,056 $ 129,346 $ (3,290) $ 121,228
Supplies 2,433 1,652 781 1,834
Repairs and maintenance 904 2,526 (1,622) 324
Other services and charges 2,585 3,050 (465) 2,915
I Capital outlay 24,466
Total Administration 131,978 136,574 (4,596) 150,767
Streets:
I Personnel services 274,991 289,975 (14,984) 282,231
Supplies 41,346 46,001 (4,655) 45,555
Repairs and maintenance 115,753 105,823 9,930 123,612
I Other services and charges 211,897 262,927 (51,030) 246,505
Capital outlay 1,619,840 1,623,877 (4,037) 550,907
Total Streets 2,263,827 2,328,603 (64,776) 1,248,810
IDrainage:
Personnel services 143,748 158,616 (14,868) 150,952
I Supplies 814 664 150 749
Repairs and maintenance 34,039 16,106 17,933 41,405
Other services and charges 31,018 425 30,593 4,390
Capital outlays 3,975
I Total Drainage 209,619 175,811 33,808 201,471
Sanitation:
Other services and charges 1,029,510 1,028,465 1,045 980,681
ITotal Sanitation 1,029,510 1,028,465 1,045 980,681
Total Public Works 3,634,934 3,669,453 (34,519) 2,581,729
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2 r
STATEMENT OF REVENUES, EXPENDITURES,AND Page 6 of 8
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
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2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Expenditures(continued)
Community Development:
Administration:
Personnel services $ 108,254 $ 88,715 $ 19,539 $ 83,633
Supplies 813 950 (137) 658
Other services and charges 2,711 2,663 48 3,624
Total Administration 111,778 92,328 19,450 87,915
Planning and Zoning:
Personnel services 133,897 101,803 32,094 92,545
Supplies 2,134 2,587 (453) 2,710
Repairs and maintenance 229 229fr
Other services and charges 3,100 4,185 (1,085) 3,090 t
Capital outlay 10,319 10,319
Total Planning and Zoning: 149,679 118,894 30,785 98,345
Engineering:
Personnel services 38,734 32,342 6,392 37,132
Supplies 2,983 2,789 194 3,369
Repairs and maintenance 2,298 99 2,199 2,508
Other services and charges 4,984 3,575 1,409 5,414
Capital outlay 1,585
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Total Engineering: 48,999 38,805 10,194 50,008
Inspection:
Personnel services 215,868 242,554 (26,686) 198,085
Supplies 5,593 8,111 (2,518) 8,913
Repairs and maintenance 1,535 1,162 373 3,091
Other services and charges 49,142 33,230 15,912 49,877
Capital Outlay - 25,894
Total Inspection 272,138 285,057 (12,919) 285,860
Total Community Development 582,594 535,084 47,510 522,128
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CITY OF FRIENDSWOOD, TEXAS
IGENERAL FUND Exhibit B-2
STATEMENT OF REVENUES, EXPENDITURES,AND Page 7 of 8
I CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
I
2000
I Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
I Expenditures(continued)
Community Services:
Library:
Personnel services $ 422,122 $ 417,485 $ 4,637 $ 399,682
I Supplies 128,730 103,368 25,362 107,034
Repairs and maintenance 16,677 15,108 1,569 1,825
Other services and charges 33,802 28,154 5,648 11,575
I Capital Outlay 53,601 41,047 12,554 1,090
Reserves and contingencies 9,176 9,176
Total Library 664,108 605,162 58,946 521,206
I Parks and Recreation
Personnel services 350,471 334,268 16,203 298,870
Supplies 55,522 53,348 2,174 40,841
I Repairs and maintenance 75,203 75,164 39 49,564
Other services and charges 225,850 259,615 (33,765) 221,036
Capital Outlay 844,895 128,281 716,614 139,270
1 Total Parks and Recreation 1,551,941 850,676 701,265 749,581
Community Activities:
Personnel services 119,256 122,209 (2,953) 115,362
111 Supplies 2,470 2,889 (419) 2,571
Repairs and maintenance
Other services and charges 12,541 16,467 (3,926) 11,968
I Capital Outlay
Total Community Activities 134,267 141,565 (7,298) 129,901
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES, EXPENDITURES,AND Page 8 of 8
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
r
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Expenditures(continued)
Swimming Pool:
Personnel services $ 36,250 $ 28,842 $ 7,408 $ 29,260
Supplies 13,237 11,573 1,664 11,539
Repairs and maintenance 5,950 3,652 2,298 5,418
Other services and charges 14,045 11,191 2,854 12,359
Capital Outlay 59,057
Total Swimming Pool 69,482 55,258 14,224 117,633
Building Operations:
Personnel services 28,248 25,188 3,060 26,204
Supplies 13,863 14,861 (998) 18,637
Repairs and maintenance 131,438 155,154 (23,716) 99,338
Other services and charges 383,485 324,136 59,349 338,725
Capital Outlay 175,808 183,186 (7,378) 192,635
Total Building Operations 732,842 702,525 30,317 675,539
Total Community Services 3,152,640 2,355,186 797,454 2,193,860
Total Expenditures 14,262,464 13,082,106 1,180,358 11,316,852
Revenues Over(Under) E
Expenditures (2,387,470) (270,623) 2,116,847 145,672
Other Financing Sources(Uses)
Proceeds from capital leases 74,856 74,856 149,780
Operating transfers in 546,113 546,113 737,181
Operating transfers (out) (304,988)
Total Other Financing Sources(Uses) 546,113 620,969 74,856 581,973
Revenues and Other Financing Sources
Over(Under)Expenditures and
Other Financing(Uses) (1,841,357) 350,346 2,191,703 727,645
Fund balance-Beginning 3,337,604 3,337,604 2,609,959
Fund Balance-Ending $ 1,496,247 $ 3,687,950 $ 2,191,703 $ 3,337,604
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SPECIAL REVENUE FUNDS
These funds are used to account for the proceeds of specific revenue sources that are
legally restricted to financing specific purposes. The following describes the various
types of Special Revenue Funds used by the City:
Police Investigation Fund
This fund is used to account for revenues restricted to police investigation.
Fire/EMS Donation Fund
This fund is used to account for revenues are restricted for Fire/EMS capital
outlays.
Park Land Dedication Fund
This fund is used to account for receipts from developers to build or enhance
neighborhood parks.
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CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 2000
with comparative totals for September 30, 1999
Police Fire/EMS Park Land
Investigation Donations Dedication
Assets
Cash and cash equivalents $ 6,052 $ 57,212 $ 11,456
Accounts receivable 23,885
Due from other governments
Total Assets $ 6,052 $ 81,097 $ 11,456
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities $ $ $
Deferred revenues 21,566
Total Liabilities 21,566
Fund Balances
Unreserved:
Designated for police investigations 6,052
Designated for Fire/EMS 59,531
Designated for park prjects 11,456
Total Fund Balances 6,052 59,531 11,456
Total Liabilities and Fund Balances $ 6,052 $ 81,097 $ 11,456
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Exhibit C-I
Totals
2000 1999
$ 74,720 $ 15,395
23,885 20,934
4,655
$ 98,605 $ 40,984
$ $ 8,126
21,566 21,164
21,566 29,290
6,052 11,694
59,531
11,456
77,039 11,694
$ 98,605 $ 40,984
71
r
CITY OF FRIENDSWOOD
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
Year Ended September 30, 2000 02
with comparative totals for the Year Ended September 30, 1999 ,:
I
Police Fire/EMS Park Land
Investigation Donations Dedication
Revenues
Permits and fees $ $ $ 11,300
Earnings on investments 576 8,544 156
Intergovernmental 304
Other 245,954
Total Revenues 576 254,802 11,456
Expenditures
Current:
Public safety 6,218 43,065
Community services
Capital Outlay 652,206
Total Expenditures 6,218 695,271
Revenues Over(Under)
Expenditures (5,642) (440,469) 11,456
Other Financing Sources
Proceeds from issuance of long-term debt 500,000
Ir
Operating transfers in
Total Other Financing Sources 500,000
Revenues and Other Financing Sources
Over (Under) Expenditures (5,642) 59,531 11,456
Fund balance, beginning of year 11,694
Fund Balance (Deficit),End of Year $ 6,052 $ 59,531 $ 11,456
E
I
I
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1
72
Exhibit C-2
Totals
2000 1999
$ 11,300 $
9,276 5,158
304 18,577
245,954 163,190
266,834 186,925
49,283 198,557
652,206
701,489 198,557
(434,655) (11,632)
500,000
23,841
500,000 23,841
65,345 12,209
11,694 (515)
$ 77,039 $ 11,694
1
73
CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUND(POLICE INVESTIGATION) Exhibit C-3
STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Revenues
Intergovernmental $ 15,500 $ $ (15,500) $ 18,176
Interest on investments 576 576 503
Other
Total Revenues 15,500 576 (14,924) 18,679
Expenditures
Public safety 15,809 6,218 9,591 11,476
Revenues Over(Under)
Expenditures (309) (5,642) (5,333) 7,203
Fund balances-Beginning 11,694 11,694 4,491
kirib
Fund Balances-Ending $ 11,385 $ 6,052 $ (5,333) $ 11,694
74
CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUND(FIRE/EMS DONATIONS) Exhibit C-4
STATEMENT OF REVENUES,EXPENDITURES,AND
I CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
Year Ended September 30, 2000
with comparative actual balances for the Year Ended September 30, 1999
2000
Variance
Favorable 1999
I Budget Actual (Unfavorable) Actual
Revenues
Intergovernmental $ 8,544 $ 8,544 $ $ 4,655
I Interest on investments 227 304 77 401
Other 193,000 245,954 52,954 163,190
Total Revenues 201,771 254,802 53,031 168,246
I
I Expenditures
Current
Public safety 44,000 43,065 935 187,081
Capital Outlay 657,771 652,206 5,565
ITotal Expenditures 701,771 695,271 6,500 187,081
I Revenues Over(Under)
Expenditures (500,000) (440,469) 59,531 (18,835)
IOther Financing Sources
Proceeds from issuance of long-term debt 500,000 500,000
I Operating transfers in 23,841
Total Other Financing
Source 500,000 500,000 23,841
Revenues and Other
Financing Sources Under
IExpenditures 59,531 59,531 5,006
Fund balances-Beginning (5,006)
1 Fund Balances- Ending $ - $ 59,531 $ 59,531 $ -
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I
75
11
3
3
3 DEBT SERVICE FUND
The Debt Service Fund is used to account for property taxes levied for payment of
principal and interest on all general long-term debt of the City.
3
3
1 77
CITY OF FRIENDSWOOD, TEXAS
DEBT SERVICE FUND Exhibit D-1 1111
COMPARATIVE BALANCE SHEET
September 30, 2000 and 1999
2000 1999
Assets
Cash and temporary investments $ 68,627 $ 73,344
Taxes receivable, less allowance for uncollectibles 43,310 35,079
Total Assets $ 111,937 $ 108,423
Liabilities and Fund balance 00
Liabilities
Deferred revenue $ 43,310 $ 35,079
Total Liabilities 43,310 35,079
Fund Balance
Reserved for debt service 68,627 73,344
Total Fund Balance 68,627 73,344
iw
Total Liabilities and Fund Balance $ 111,937 $ 108,423
itok
PP
78
CITY OF FRIENDSWOOD, TEXAS
DEBT SERVICE FUND Exhibit D-2
STATEMENT OF REVENUES, EXPENDITURES,AND
I CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended September 30,2000
with comparative actual balances for the Year Ended September 30, 1999
I
II 2000
Variance
Favorable 1999
I Budget Actual (Unfavorable) Actual
Revenues
Property taxes $ 959,100 $ 958,519 $ (581) $ 536,466
Interest on investments 13,423 13,423 16,369
I
Total Revenues 959,100 971,942 12,842 552,835
1 Expenditures
Principal retirement 525,897 525,897 512,594
IInterest retirement 433,514 450,762 (17,248) 185,952
Total Expenditures 959,411 976,659 (17,248) 698,546
I
Revenues Over
(Under) Expenditures (311) (4,717) (4,406) (145,711)
3 Other Financing Sources
Operating transfers in 31,147
3 Total Other Financing Sources - - 31,147
1 Revenues and Other Financing
Sources Over Expenditures (311) (4,717) (4,406) (114,564)
3
Fund balances-Beginning 73,344 73,344 187,908
3 Fund Balances-Ending $ 73,033 $ 68,627 $ (4,406) $ 73,344
I
3
3
1 79
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I
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I
I
IENTERPRISE FUND
I The Enterprise Fund is used to account for the acquisition, operation, and
maintenance of governmental facilities and services that are entirely or
predominantly self-supporting by user charges. The operations of the water and
I sewer system are accounted for in the Enterprise Fund to reflect the results of
operations similar to private enterprise.
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81
CITY OF FRIENDSWOOD, TEXAS
IENTERPRISE FUND Exhibit E-1
COMPARATIVE BALANCE SHEET
ISeptember 30, 2000 and 1999
2000 1999
I
Current Assets Assets
Cash and cash equivalents $ 2,463,506 $ 806,847
I Receivables:
Customer accounts 1,031,086 909,370
Other 37,072 82,624
Inventory 5,575
I
Prepaid and other assets 2,092 7,885
Total Current Assets 3,53 ,331 1,806,726
Restricted Assets
I Investment in Blackhawk joint venture 255,531
Deposits and impact fees 7,415,325 208,768
7,415,325 464,299
ILand, buildings, and equipment,at cost 36,374,856 35,731,967
Less accumulated depreciation (12,582,913) (11,637,117)
I Land,Buildings,and Equipment,Net 23,791,943 24,094,850
Other Assets-Water rights 850,000
Total Assets $ 35,596,599 $ 26,365,875
ILiabilities and Fund Equity
Current Liabilities
I Accounts payable $
350,586 312,622
Accrued liabilities 126,483 149,378
Compensated absences 101,871 96,222
I
Customer deposits 262,143 255,810
Bonds payable,current portion 721,405 492,375
Certificates of obligation payable,current portion 175,000 170,000
Total Current Liabilities 1,737,488 1,476,407
1 Long-Term Liabilities
Bonds payable, less current portion 9,271,128 1,598,838
Certificates of obligation payable,less current portion 5,080,000 5,255,000
I Accreted interest on premium compound interest bonds 114,167 338,888
Total Long-Term Liabilities 14,465,295 7,192,726
Total Liabilities 16,202,783 8,669,133
I Fund Equity
Contributed capital 12,435,358 12,435,358
Retained Earnings 6,958,458 5,261,384
I Total Fund Equity 19,393,816
$ 17,696,742
Total Liabilities and Fund Equity 35,596,599 $ 26,365,875
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83
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CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND
SCHEDULE OF BONDS PAYABLE-
BY MATURITY DATE
September 30, 2000 ilk
Fiscal Year r
Ending Annual Requirements for All Series Series 1986
Sept.30, Principal Interest Total Principal Interest Total
2001 $ 721,405 $ 660,673 $ 1,382,078 $ 25,155 $ 51,345 $ 76,500
2002 423,494 539,010 962,504 12,244 28,256 40,500
2003 441,247 520,572 961,819 11,247 29,253 40,500
2004 458,580 499,002 957,582 9,830 28,420 38,250
2005 90,000 456,745 546,745
2006 100,000 450,170 550,170
2007 110,000 442,945 552,945rl
2008 110,000 435,395 545,395
2009 110,000 427,845 537,845
2010 110,000 420,295 530,295
2011 650,000 395,052 1,045,052
2012 685,000 355,140 1,040,140
2013 730,000 316,887 1,046,887
2014 775,000 275,797 1,050,797
2015 815,000 234,045 1,049,045
2016 865,000 185,817 1,050,817
2017 915,000 136,926 1,051,926
2018 970,000 84,615 1,054,615
2019 1,025,000 28,720 1,053,720 Ilk
Totals $ 10,104,726 $ 6,865,651 $ 16,970,377 $ 58,476 $ 137,274 $ 195,750
il
Fiscal Year Wastewater Sanitary Sewer Revenue Bonds Wastewater Sanitary Sewer Revenue Bonds
Ending Series 1999 Series 2000
Sept.30, Principal Interest Total Principal Interest Total
2001 $ 325,000 $ 268,641 $ 593,641 $ 277,980 $ 277,980
2002 25,000 255,948 280,948 208,485 208,485
2003 25,000 254,123 279,123 208,485 208,485
2004 25,000 252,298 277,298 208,485 208,485
2005 50,000 249,560 299,560 40,000 207,185 247,185
2006 50,000 245,910 295,910 50,000 204,260 254,260
2007 50,000 242,260 292,260 60,000 200,685 260,685
2008 50,000 238,610 288,610 60,000 196,785 256,785
2009 50,000 234,960 284,960 60,000 192,885 252,885
2010 50,000 231,310 281,310 60,000 188,985 248,985
2011 375,000 217,298 592,298 275,000 177,754 452,754
2012 395,000 194,642 589,642 290,000 160,498 450,498
2013 420,000 173,045 593,045 310,000 143,842 453,842
2014 445,000 150,122 595,122 330,000 125,675 455,675
2015 465,000 126,007 591,007 350,000 108,038 458,038r.
2016 495,000 100,567 595,567 370,000 85,250 455,250 ft
2017 520,000 73,670 593,670 395,000 63,256 458,256
2018 550,000 45,315 595,315 420,000 39,300 459,300
2019 580,000 15,370 595,370 445,000 13,350 458,350
Totals $ 4,945,000 $ 3,569,656 $ 8,514,656 $ 3,515,000 $ 3,011,183 $ 6,526,183
84
Exhibit E-2
Series 1993
Principal Interest Total
$ 371,250 $ 62,707 $ 433,957
386,250 46,321 432,571
405,000 28,711 433,711
423,750 9,799 433,549
1
$ 1,586,250 $ 147,538 $ 1,733,788
1
1
1
I
1
1
1
85
CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND Exhibit E-3
SCHEDULE OF CERTIFICATES OF OBLIGATION-
BY MATURITY DATE
September 30, 2000
r
Fiscal Year
Ending Annual Requirements for All Series Series 1995
Sept.30, Principal Interest Total Principal Interest Total
2001 $ 175,000 $ 292,494 $ 467,494 $ 85,000 $ 165,104 $ 250,104
2002 185,000 279,797 464,797 90,000 158,651 248,651
2003 200,000 266,910 466,910 100,000 151,645 251,645
2004 210,000 253,945 463,945 100,000 144,270 244,270
2005 645,000 228,494 873,494 155,000 134,964 289,964
2006 680,000 191,064 871,064 190,000 124,239 314,239
2007 715,000 152,935 867,935 230,000 112,923 342,923
2008 760,000 112,488 872,488 275,000 99,150 374,150
2009 815,000 69,175 884,175 815,000 69,175 884,175
2010 870,000 23,381 893,381 870,000 23,381 893,381 it
illy
Totals $ 5,255,000 $ 1,870,683 $ 7,125,683 $ 2,910,000 $ 1,183,502 $ 4,093,502
r
Fiscal Year
r
Ending Series 1992
Sept.30, Principal Interest Total
2001 $ 90,000 $ 127,390 $ 217,390
2002 95,000 121,146 216,146
2003 100,000 115,265 215,265
2004 110,000 109,675 219,675
2005 490,000 93,530 583,530
2006 490,000 66,825 556,825
2007 485,000 40,012 525,012
2008 485,000 13,338 498,338
Totals $ 2,345,000 $ 687,181 $ 3,032,181
!:
86
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1
1
I
1
GENERAL FIXED ASSETS
This account group is established to account for the fixed assets owned by the City
excluding those relating to Enterprise Fund operations. Expenditure transactions to
acquire general fixed assets occur in the Governmental Fund Types.
1
1
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1
s87
3'
CITY OF FRIENDS WOOD, TEXAS
GENERAL FIXED ASSETS Exhibit F-1
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS-
I BY SOURCE
September 30,2000 and 1999
2000 1999
I General Fixed Assets
Land $ 3,401,991 $ 3,337,140
Buildings 4,917,177 4,726,051
I Improvements
Equipment 18,710,363
5,678,421 17,933,869
5,309,050
Construction in progress 1,214,125 323,263
ITotal General Fixed Assets $ 33,922,077 $ 31,629,373
Investment in General Fixed Assets From
General obligation bonds $ 4,591,258 $ 4,591,258
I Time warrants and certificates of
obligation 5,594,986 4,861,440
Federal,state,and local grants 3,571,378 3,571,378
I Municipality
17,4
Donations 09,620 15,849,762
2,754,835
2,755,535
Total Investment in
General Fixed Assets $ 33,922,077 $ 31,629,373
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1 89
I
CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS
SCHEDULE OF GENERAL FIXED ASSETS-
BY FUNCTION AND ACTIVITY
September 30, 2000
E
Function and Activity Land Buildings Improvements Equipment
General Government
City Manager $ $ $ $ 28,611
City Secretary 92,103
Administrative Services 677,480
Total General Government 798,194
Public Safety
Police 10,542 728,007 961,588
Fire 18,000 267,322 2,491,311
Emergency management 85,769
Total Public Safety 28,542 995,329 3,538,668
Public Works
Streets and drainage 375,408 141,816 16,575,776 392,738
E
Total Public Works 375,408 141,816 16,575,776 392,738
Community Development
Planning and zoning 1,406
Engineering 12,687
Inspection 25,893
Total Community Development 39,986
Community Services
Library 93,689 591,760 254,404
Parks and recreation 1,908,737 382,726 1,235,923 346,578
Community activities 308,914 54,624 4
Swimming pool 552,700 776,877 15,268
Buildings 442,915 2,496,632 121,787 237,961
Total Community Services 2,998,041 3,780,032 2,134,587 908,835
Construction in progress
Total General Fixed Assets $ 3,401,991 $ 4,917,177 $ 18,710,363 $ 5,678,421
90
Exhibit F-2
Construction
In Progress Total
$ $ 28,611
92,103
677,480
798,194
1,700,137
3 2,776,633
85,769
4,562,539
17,485,738
17,485,738
3
1,406
12,687
25,893
39,986
939,853
3 3,873,964
363,538
1,344,845
3,299,295
3 9,821,495
1,214,125 1,214,125
$ 1,214,125 $ 33,922,077
3
3 91
CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS Exhibit F-3
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS-
BY FUNCTION AND ACTIVITY
Year Ended September 30,20007
General General iiii
Fixed Assets Fixed Assets
Function and October 1, Transfers and September 30,
Activity 1999 Additions Retirements 2000
General Government
City Manager $ 28,611 $ $ 28,611
City Secretary 90,929 1,174 92,103
Administrative Services 954,716 37,948 (315,184) 677,480
Total General Government 1,074,256 39,122 (315,184) 798,194
Public Safetyir
Police 1,812,217 79,831 (191,911) 1,700,137 i
Fire 2,103,515 713,694 (40,576) 2,776,633
Emergency management 85,769 85,769
Total Public Safety 4,001,501 793,525 (232,487) 4,562,539
Public Works
Streets and drainage 16,733,754 569,423 182,561 17,485,738 '
Total Public Works 16,733,754 569,423 182,561 17,485,738
Community Development
Planning and zoning 1,406 1,406 :
Engineering 2,368 10,319 12,687
Inspection 25,893 25,893
Total Community Development 29,667 10,319 39,986
Community Services
Library 839,885 99,968 939,853
Parks and recreation 3,810,495 63,469 3,873,964
Community activities 363,538 363,538
Swimming pool 1,344,845 1,344,845
Buildings 3,108,169 182,679 8,447 3,299,295
Total Community Services 9,466,932 346,116 8,447 9,821,495
Construction in progress 323,263 1,081,870 (191,008) 1,214,125
Total General Fixed Assets $ 31,629,373 $ 2,840,375 $ (547,671) $ 33,922,077
92 lir;
3
k
3
3
3
GENERAL LONG—TERM DEBT
3
This account group is established to account for the principal outstanding on
general obligation bonds and other long-term liabilities.
3
3
3
1
93
CITY OF FRIENDSWOOD, TEXAS
COMPARATIVE SCHEDULES OF Exhibit G-1
GENERAL LONG-TERM DEBT
September 30, 2000 and 1999
2000 1999
Amount Available and to be Provided for
the Payment of General Long-Term Debt
Amount available in Debt Service Fund $ 68,627 $ 73,344
Amount to be provided for retirement of general long-term
debt 3,276,573 3,490,508
Total Amount Available and to be Provided $ 3,345,200 $ 3,563,852
1
General Long-Term Debt Payable
General obligation bonds $ 600,219 $ 888,677
Certificates of obligation 1,830,000 1,910,000
Obligations under capital leases 775,443 350,978
Accretion on premium compound interest bonds 139,538 414,197
Total General Long-Term Debt Payable $ 3,345,200 $ 3,563,852
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95
I
CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF GENERAL LONG-TERM DEBTI
SERVICE REQUIREMENTS TO MATURITY
September 30, 2000
Refunding Bonds
Due During Annual Requirements for All Series Series 1986
Fiscal Year Total Total Total Principal Interest Due
Ending Principal Interest Principal and Due March 1,
Sept.30, Due Due Interest Due March 1 September 1 Total
2001 $ 388,188 $ 234,285 $ 622,473 $ 30,744 $ 62,756 * $ 93,500
2002 458,032 173,189 631,221 14,965 34,535 * 49,500
2003 391,259 151,900 543,159 13,746 35,754 * 49,500
2004 405,527 131,507 537,034 12,014 34,736 * 46,750
2005 349,916 76,976 426,892
2006 373,640 57,170 430,810
2007 397,577 35,908 433,485
2008 364,791 9,768 374,559
Totals $ 3,128,930 $ 870,703 $ 3,999,633 $ 71,469 $ 167,781 $ 239,250
I
Due During
Fiscal Year
Ending Obligations Under Capital Leases
Sept.30, Principal Interest Total
2001 $ 163,694 $ 50,418 $ 214,112
2002 159,317 30,600 189,917
2003 77,513 23,607 101,120
2004 72,263 19,719 91,982
2005 64,916 15,656 80,572
2006 68,640 11,932 80,572
2007 72,577 7,995 80,572
2008 76,732 3,841 80573.00
2009 19,791 280 20,071
Totals $ 775,443 $ 164,048 $ 939,491
* Includes accretion on premium compound interest bonds.
I
96
Exhibit G-2
I
Certificates of Obligation Refunding Bonds
I Series 1992 Series 1993
Principal Interest Due Principal Interest Due
Due March 1, Due March 1,
March 1 September 1 Total March 1 September 1 Total
I $ 70,000 $ 100,208 $ 170,208 $ 123,750 $ 20,903 $ 144,653
155,000 92,614 247,614 128,750 15,440 144,190
I 165,000 180,000 82,969 247,969 135,000 9,570 144,570
73,785 253,785 141,250 3,267 144,517
285,000 61,320 346,320
305,000 45,238 350,238
I
325,000 345,000 27,913 352,913
9,488 354,488
$ 1,830,000 $ 493,535 $ 2,323,535 $ 528,750 $ 49,180 $ 577,930
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1 97
1
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! UNAUDITED STATISTICAL SECTION
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' 99
CITY OF FRIENDSWOOD, TEXAS
GENERAL GOVERNMENT REVENUES BY SOURCE
Last Ten Fiscal Years
Function 1991 1992 1993 1994 1995
General property taxes $ 4,557,133 $ 4,749,173 $ 4,958,863 $ 5,249,517 $ 5,553,218
Sales taxes 690,327 742,725 808,405 979,890 1,001,832
Franchise taxes 419,062 456,566 541,841 530,059 570,031
Sanitation 595,244 733,245 780,604 838,542 966,066 il
Fines and forfeitures 166,982 166,355 171,154 174,487 217,411
Permits and fees 240,294 286,421 337,539 319,384 296,003
Intergovernmental revenue 50,984 28,641 34,006 32,273 48,101
Interest on investments 222,328 232,773 153,558 154,195 107,089
Other revenue 115,107 139,525 208,466 219,615 330,313
$ 7,057,461 $ 7,535,424 $ 7,994,436 $ 8,497,962 $ 9,090,064
Includes General, Special Revenue,and Debt Service Funds.'
Source- Accounting records of the City.
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100
I
ITable 1
I
I1996 1997 1998 1999 2000
$ 5,865,855 $ 5,660,697 $ 5,957,486 $ 6,310,919 $ 7,226,205
I1,028,528 1,439,030 1,805,791 1,855,121 2,048,868
863,183 852,091 801,709 821,943 870,839
I 1,085,149 266,287 1,017,028 982,432 1,013,415 1,027,028
353,742 304,017 332,659 416,722
234,518 401,720 699,432 635,905 970,868
1 46,060 40,055 346,879 553,352 607,963
193,588 238,009 222,586 292,886 399,712
I354,627 224,097 525,228 386,084 482,054
$ 9,937,795 $ 10,226,469 $ 11,645,560 $ 12,202,284 $ 14,050,259
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101
I
CITY OF FRIENDSWOOD, TEXAS
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
Function 1991 1992 1993 1994 1995
General government $ 1,258,050 $ 1,085,683 $ 1,112,882 $ 1,149,344 $ 1,478,817
Public safety 2,173,685 2,478,564 3,061,016 2,814,658 2,846,169
Public works 1,196,889 1,521,841 1,537,447 1,621,896 1,783,738
Sanitation 730,710 752,763 823,028 953,186 946,460
Community development 281,723 289,501 326,854 386,976 413,489
Community services 949,048 1,048,606 1,087,039 1,319,689 1,426,792
Debt service 1,304,597 1,301,928 1,315,242 1,434,052 1,427,360
$ 7,163,992 $ 7,726,123 $ 8,440,480 $ 8,726,615 $ 9,376,365
Includes General,Special Revenue,and Debt Service Funds.
Source- Accounting records of the City.
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102 1
ITable 2
1996 1997 1998 1999 2000
$ 1,481,710 $ 1,615,770 $ 1,937,096 $ 2,051,684 $ 2,305,916
3,206,222 3,329,960 4,043,792 4,166,008 4,265,750
1,792,014 1,805,947 1,946,904 1,601,048 2,640,988
954,018 939,395 988,422 980,681 1,028,465
463,813 450,916 413,024 522,128 535,084
1,656,146 1,686,909 1,904,926 2,193,860 2,355,186
1,579,490 1,202,192 909,369 698,546 976,659
$ 10,179,395 $ 11,031,089 $ 12,143,533 $ 12,213,955 $ 14,108,048
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103
I
CITY OF FRIENDSWOOD, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
r
Percent of
Fiscal Year Tax Total Tax Current Tax Levy
Ended Sept.30, Year Tax Rate Levy Collections Collected
1991 1990 $ 0.6950 $ 4,636,066 $ 4,561,109 98.38%
1992 1991 0.6950 4,869,697 4,782,350 98.21%
1993 1992 0.6630 5,179,275 5,081,084 98.10%
1994 1993 0.6630 5,450,155 5,384,023 98.79%
1995 1994 0.6630 5,762,039 5,717,509 99.23%
1996 1995 0.6156 5,610,277 5,568,094 99.25%
1997 1996 0.6045 5,692,451 5,652,357 99.30%
1998 1997 0.5961 5,886,162 5,844,583 99.29%
1999 1998 0.6125 6,292,040 6,229,896 99.01%
2000 1999 0.6385 7,239,468 7,125,877 98.43%
Source-Tax assessor/collector's records.
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Table 3
1 Outstanding
Total Delinquent
1 Delinquent Collections as Outstanding Taxes as
Tax Total Tax Percent of Delinquent Percent of
Collections Collections Current Levy # Taxes Levy
I
$ 107,112 $ 4,668,221 100.69% $ 339,731 7.33%
120,660 4,903,010 100.68% 306,418 6.29%
1 91,531 5,172,615 99.87% 313,078 6.04%
103,113 5,487,136 100.68% 276,097 5.07%
89,977 5,807,486 100.79% 230,650 4.00%
1 54,842 5,622,936 100.23% 231,973 4.13%
53,927 5,706,284 100.24% 230,990 4.06%
1 89,625 5,934,208 100.82% 237,656 4.04%
50,435 6,280,331 99.81% 207,417 3.30%
1 129,563 7,255,440 100.22% 320,231 4.42%
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CITY OF FRIENDSWOOD, TEXAS
ASSESSED AND ESTIMATED Table 4f
ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Ratio of
Fiscal Year Estimated Assessed Value
Ended Tax Assessed Actual to Estimated New
Sept.30, Year Value Value Actual Value Construction
1991 1990 $ 667,059,850 $ 761,569,171 88% $ 46,975,722
1992 1991 700,373,270 806,261,160 87% 63,126,050
1993 1992 781,187,783 917,420,470 85% 61,604,061
1994 1993 825,111,643 976,268,953 85% 64,653,799
1995 1994 869,085,848 1,021,248,848 85% 34,680,410
1996 1995 911,351,022 1,165,107,496 78% 42,440,747
1997 1996 941,679,232 1,207,803,598 78% 41,528,406
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1998 1997 987,445,395 1,265,399,421 78% 90,683,060
1999 1998 1,027,271,860 1,322,329,377 78% 74,555,875
2000 1999 1,133,824,245 1,458,851,565 78% 121,249,420
•
Source-Tax assessor/collector's records.
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CITY OF FRIENDSWOOD, TEXAS
ITAX RATE DISTRIBUTION Table 5
Last Ten Fiscal Years
I
I Fiscal year Debt Service
Ended Sep.30, Tax Year General Fund Fund Total Tax Rate
1991 1990 $ 0.50876 $ 0.18624 $ 0.69500
I1992 1991 0.50900 0.18600 0.69500
1993 1992 0.50160 0.16140 0.66300
I1994 1993 0.50250 0.16050 0.66300
1995 1994 0.51400 0.14900 0.66300
I 1996 1995 0.46800 0.14760 0.61560
1997 1996 0.49610 0.10840 0.60450
1998 1997 0.52760 0.06850 0.59610
1 1999 1998 0.56100 0.05150 0.61250
2000 1999 0.55420 0.08430 0.63850
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Source-City's tax ordinances.
ITax rates are per$100 valuation.
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CITY OF FRIENDSWOOD, TEXAS
PROPERTY TAX RATES PER$100 VALUATION
DIRECT AND OVERLAPPING
Last Ten Fiscal Years
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Friendswood Clear Creek
Independent Independent Clear Creek
Tax City of School School Drainage Harris
Fiscal Year Year Friendswood District District District County(A)
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Tax Rates per$100 valuation
1991 1990 $ 0.6950 $ 1.5500 $ 1.2890 $ 0.1500 $ 0.55621
1992 1991 0.6950 1.6500 1.2990 0.1500 0.58620
1993 1992 0.6630 1.7200 1.4256 0.1450 0.59616
1994 1993 0.6630 1.6180 1.4600 0.1450 0.59616
1995 1994 0.6630 1.6090 1.4700 0.1430 0.62199
1996 1995 0.6156 1.5900 1.4700 0.1410 0.64435
1997 1996 0.6045 1.5900 1.5150 0.1430 0.64160
1998 1997 0.5961 1.5750 1.5900 0.1425 0.64170
1999 1998 0.6125 1.6720 1.6415 0.1500 0.64170
2000 1999 0.6385 1.5350 1.7008 0.1500 0.64802
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Source- Tax Department records of the various taxing authorities.
(A)- Includes Port of Houston Authority, Harris County Flood Control, and Harris County Hospital District.
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Table 6
Galveston
County
$ 0.4650
0.4251
0.4650
0.4650
0.4850
0.5200
0.5472
0.5200
0.5200
0.5450
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CITY OF FRIENDSWOOD, TEXAS
PRINCIPAL TAXPAYERS Table 7
September 30, 2000
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Percent
of Total
Assessed Assessed
Taxpayer Type of Property Valuation Valuation
1 . Exxon Corporation Oil and Gas $ 24,477,740 2.16%
2 . Southwestern Bell Telephone Utility Company 12,177,530 1.07%
3 . Texas New Mexico Power Utility Company 11,353,480 1.00%
4 . Blackhawk Apartments Quail Crossing Apartments 8,766,020 0.77%
5 . Friendswood Retirement Living Ltd. Retirement Home 8,346,695 0.74%
6 . Autumn Creek Developer 7,842,820 0.69%
7 . Southwest Properties Seahawk Properties 7,539,980 0.67%
8 . Albertson's Albertson's Shopping Center 5,592,330 0.49%
9 . MaxiBan The Bedford Condominiums 4,930,620 0.43%
10 . Mystic, Ltd. Nursing Home 3,933,640 0.35%
94,960,855 8.38%
All other taxpayers 1,038,863,390 91.62%
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Totals $ 1,133,824,245 100.00%
Source-Tax assessor/collector's records.
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CITY OF FRIENDSWOOD, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 8
FOR GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
IRatio of
Interest Total Debt Total Debt Service
I Fiscal and Fiscal Service General Requirements
Year Principal Charges Requirements Expenditures to Expenditures
1991 $ 763,192 $ 538,736 $ 1,301,928 $ 7,726,061 16.85%
I1992 830,000 485,242 1,315,242 8,440,480 15.58%
1993 945,000 489,052 1,434,052 8,726,615 16.43%
I1994 960,000 433,270 1,393,270 9,376,365 14.86%
1995 910,000 358,551 1,268,551 10,179,395 12.46%
I 1996 963,272 238,920 1,202,192 10,091,694 11.91%
1997 733,568 202,138 935,706 11,187,677 8.36%
1998 709,094 200,275 909,369 12,143,533 7.49%
II1999 512,594 185,952 698,546 12,213,955 5.72%
2000 525,897 450,762 976,659 14,760,254 6.62%
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CITY OF FRIENDSWOOD, TEXAS
REVENUE BOND COVERAGE
Last Ten Fiscal Years
E
Operating Net Operating
Number Number Expenses Revenue
Fiscal of Water of Sewer Operating Before Available for
Year Customers Customers Revenue Depreciation Debt Service
1991 7,336 6,983 $ 3,378,322 $ 1,857,809 $ 1,520,513
1992 7,521 7,171 3,567,379 2,063,694 1,503,685
1993 7,781 7,475 3,808,566 2,246,969 1,561,597
1994 8,031 7,709 3,896,444 2,305,953 1,590,491
1995 8,210 7,878 4,394,289 2,135,227 2,259,062
1996 8,382 8,043 4,995,119 2,730,719 2,264,400
1997 8,534 8,199 4,744,557 2,802,914 1,941,643
1998 8,893 8,377 5,815,425 2,679,707 3,135,718
elk
1999 9,123 8,679 5,482,707 2,781,480 2,701,227
2000 9,423 8,979 7,211,716 3,310,375 3,901,341
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PIP
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Note A- The amounts only include Revenue bonds and do not include amounts paid by
the Enterprise Fund for Combination Tax and Revenue Bonds which are
secured by Tax Revenues tir
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Source- Accounting records of the City.
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Table 9
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I Revenue Bond(A)
Debt Service Requirements
Principal Interest Total Coverage
I $ 130,000 $ 46,906 $ 176,906 8.60
135,000 38,916 173,916 8.65
I 135,000 31,022 166,022 9.41
135,000 25,710 160,710 9.90
140,000 15,581 155,581 14.52
3 45,000 10,244 55,244 40.99
45,000 7,503 52,503 36.98
33,000 3,032 36,032 86.35
33,000 3,032 36,032 74.97
3 441,600 441,600 8.83
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CITY OF FRIENDSWOOD, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
P
W
Fiscal Year Less Debt
Ended Assessed Gross Service Net
Sept.30, Population Value Bonded Debt Funds Bonded Debt
1991 22,814 $ 700,373,270 $ 7,365,778 $ 50,854 $ 7,314,924 ire
1992 25,680 781,187,783 6,575,778 78,244 6,497,534
1993 26,333 825,111,643 9,061,649 45,501 9,016,148 iik
1994 27,356 869,085,848 8,160,895 47,281 8,113,614
1995 27,700 911,351,022 4,776,263 56,968 4,719,295 0
l
1996 28,602 941,679,232 3,935,477 298,053 3,637,424
1997 28,902 987,445,395 3,606,427 392,220 3,214,207 P
1998 30,787 987,445,395 3,206,927 187,908 3,019,019 look
1999 31,192 1,027,271,860 2,798,677 73,344 2,725,333
2000 31,761 1,133,824,245 2,430,219 68,627 2,361,592 0PIP
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Source-Tax assessor/collector and accounting records of the City.
(1) Reflects reallocation of debt to Enterprise Funds in 1994-95 in the amount of$2.5 million.
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Table 10
3
Ratio of Net
Bonded Debt Net Bonded
to Assessed Debt
Value Per Capita
1.04% 321
0.83% 253
1.09% 342
0.93% 297
0.52% (1) 170
0.39% 127
0.33% 111
0.31% 98
0.27% 87
0.21% 74
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CITY OF FRIENDSWOOD, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT Table 11
September 30, 2000
Percentage
Applicable City of
Net Debt to City of Friendswood's
Name of Governmental Unit Outstanding Friendswood Share of Debt
Friendswood Independent
School District $ 28,107,085 100.00% $ 28,107,085
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Clear Creek Independent '"
School District 291,279,152 6.81% 19,836,110
Galveston County 35,894,876 5.68% 2,038,829
Harris County 767,710 0.15% 1,152
Harris County Flood
Control District 151,409 0.15% 227
Port of Houston Authority 259,985 0.15% 390
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Total Net Overlapping Debt 49,983,793
* Harris County includes the Harris County Control District, Port of Houston Authority,
Harris County Hospital District and the Harris County Board of Education lP
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O.
CITY OF FRIENDSWOOD, TEXAS
MISCELLANEOUS STATISTICAL DATA Table 12
September 30,2000 Page 1 of 2
3
Date of incorporation October 15, 1960
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Date of present charter Adopted Home Rule Charter
October 16, 1971
Form of government Council-Manager
Area 22.70 square miles
Miles of Streets
Streets-Paved 98.1 miles
Streets Unpaved 2.12 miles
Fire Protection
Number of stations 3
Number of employees(Full-time equivalent) 9.9
Number of volunteers 105
Fire Prevention
Number of employees(Full-time equivalent) 4.0
Number of volunteers -
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Police Protection
Number of stations 1
Number of sworn officers(Full-time equivalent) 40
Number of patrol units 14
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Recreation
Number of parks 8
Size of parks 189 acres
Number of swimming pools 1
Number of tennis courts 4
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Miles of storm sewers 84.74 miles
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CITY OF FRIENDSWOOD, TEXAS
MISCELLANEOUS STATISTICAL DATA Table 12 OF
September 30, 2000 Page 2 of 2
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sit
Education
Friendswood Independent School District:
Number of teachers 323
Number of students 5,029
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Clear Creek Independent School District:
Number of teachers 1,557
Number of students 29,964
City Employees
Department heads 6
Employees:
Full-time 149
Part-time(Full-time equivalent) 19.44 1.
Total 168.44
Election
Number of Votes Cast:
Last City Election-Regular Election No regular election in May
Water
Source Ground Water Surface Water
Average daily consumption 1,742,000 gallons 3,515,000 gallons
Maximum daily consumption 6,248,000 gallons 5,231,000 gallons
Water mains 151 miles OP
Number of connections 9,423
Sewer Blackhawk
Average daily flow 2,107,000 gallons
Maximum daily flow 6,117,000 gallons
Sanitary sewer mains 151 miles
Number of connections 8,979
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