HomeMy WebLinkAboutComprehensive Annual Financial Report - FY2001---
GENERAL FUND
Revenues:
Ad Valorem Taxes
Sales and Mixed Drink
Charges for Service
Permits, Fees and Licenses
Franchise Revenue
Fines and Forfeitures
Intergovernmental Revenues
Miscellaneous Revenues
lnterfund Transfers (Hazard Mitigation)
Total Revenues
Expenditures:
Mayor and Council
City Secretary
Municipal Clerk
Election Services
Records Management
Total City Secretary
City Manager
Administration·
Legal
Economic Development
Total City Manager
Administrative Services
Finance
Tax
Municipal Court
Human Resources
Risk Management
Management Information Services
Total Administrative Services
Community Development
Administration
Planning and Zoning
Inspections
Engineering
Hazard Mitigation
Total Community Development
Police
Administration
Communications
Animal Control
Patrol
DOT Program
Criminal Investigations
Total Police Department
4/18/02
City of Friendswood
Combined Revenues and Expenditures
March 2002
Year to %
Original Amended March Date Collected/
Budget Budget Actual Actual Variance Spent
7,682,595 7,682,595 115,386 7,420,892 (261,703) 97%
2,205,000 2,205,000 153,882 1,333,300 (871,700) 60%
137,700 137,700 6,547 60,609 (77,091) 44%
596,464 596,464 75,355 360,130 (236,334) 60%
949,300 949,300 5 612,037 (337,263) 64%
570,946 570,946 59,378 296,745 (274,201) 52%
890,260 942,232 17,167 114,209 (828,023) 12%
436,900 462,599 34,119 184,805 (277,794) 40%
682,039 723,939 345,634 15,451,812 14,727,873 +100%
14,151,204 14,270,775 807,473 25,834,539 11,563,764 181%
61,884 61,925 1,898 14,287 47,638 23%
209,450 231,402 12,229 90,617 140,785 39%
6,962 6,969 358 3,520 3,449 51%
61,666 62,530 2,517 18,270 44,260 29%
278,078 300,901 15,104 112,407 ·188,494 37%
353,208 370,100 18,405 142,055 228,045 38%
103,005 132,061 4,335 83,364 48,697 63%
125,739 136,552 15,581 62,259 74,293 46%
581,952 638,713 38,321 287,678 351,035 45%
472,917 480,643 30,731 207,687 272,956 43%
197,123 197,123 0 26,885 170,238 14%
204,783 206,141 14,057 95,701 110,440 46%
241,540 244,743 13,388 100,494 144,249 41%
175,168 105,785 785 42,056 63,729 40%
496,899 796,047 18,649 310,208 485,839 39%
1,788,430 2,030,482 77,610 783,031 1,247,451 39%
127,484 128,083 6,048 67,053 61,030 52%
116,601 151,753 9,467 61,750 90,003 41%
377,393 390,065 19,760 161,156 228,909 41%
76,864 77,278 8,440 34,602 42,676 45%
0 0 335,384 17,710,372 {17,710,372) 0%
698,342 747,179 379,099 18,034,933 (17,287,754) 2414%
302,869 307,004 . 31,107 118,504 188,500 39%
604,427 609,161 41,012 271,867 337,294 45%
171,433 173,370 10,466 87,370 86,000 50%
2,056,583 2,199,475 142,873 1,007,195 1,192,280 46%
241,647 135,997 8,031 59,573 76,424 44%
807,107 816,869 42,776 303,399 513,470 37%
4,184,066 4,241,876 276,265 1,847,908 2,393,968 44%
March 2002 Monthly Report Page 1
GENERAL FUND
Fire and Emergency Management,
Fire
Fire Marshal
Emergency Management
Emergency Management -Allison
Total Fire and Emergency Management
Public Works
Administration
Street
Drainage
Sanitation
Total Public Works
Community Services
Administration
library
Parks Operation
Community Activities
Swimming Pool Operatio_n
Building Operation
Total Community Services
Reserves and Contingencies
Capital Improvements
Transfers to Other Funds
Total Expenditures General Fund
Revenues Over (Under) Expenditures
FUND BALANCE:
Fund Balance 10/01/2001
Less Commitments and Reserves:
Project Commitments
Encumbrances
Reserves (Library and Other)
Reserve for Inventory and Prepaids
Total Designated Fund Balance
Undesignated Fund Balance 10/01/2001
4/18/02
City of Friendswood
Combined Revenues and Expenditures
March 2002
Original Amended March
Budget Budget Actual
299,242 304,783 17,689
460,305 469,772 30,348
74,929 134,088 2,665
0 50,311
834,476 958,954 50,702
152,580 153,097 10,441
862,793 926.462 2,150
222,677 235,145 11,268
3,086 3,086 0
1,241,136 1,317,790 23,859
156,390 156,513 10,135
714,361 737,507 40,882
555,360 570,768 24,226
334,679 344,966 14,434
78,619 79,335 3,157
582,939 616,775 3,324
2,422,348 2,505,864 96,158
0
2,060,492 2,251,875 175,588
0 3,670 0
14,151,204 15,059,229 1,134,604
0 (788,454) (327,131)
March 2002 Monthly Report
Year to
Date
Actual
158,596
201,163
29,195
112,661
501,615
49,365
333,701
89,415
0
472.481
73,211
319,325
313,553
101,936
13,935
218,817
1,040,777
0
420,266
0
23,515,383
2,319,156
6,440,399
856,656
434,509
137,019
16,784
1,444,968
4,995,431
%
Collected/
Variance Spent
146,187 52%
268,609 43%
104,893 22%
(62,350) 100%
519,689 52%
103,732 32%
592,761 36%
145,730 38%
3,086 0%
845,309 36%
83,302 47%
418,182 43%
257,215 55%
243,030 30%
65,400 18%
397,958 35%
1,465,087 42%
0
1,831,609 19%
3,670 0%
(8,456,154) 156%
Page 2
---
POLICE INVESTIGATION FUND
Revenues:
Federal Government
State
Interest
Total Revenues
Expenditures:
Special Operations
Capital
Total Expenditures
Revenues Over (Under) Expenditures
Beginning Balance
Ending Balance
FIRE/ EMS DONATION FUND
Revenues:
Donations
Sale of Fixed Assets
Galveston County Grant
Interest
Total Revenues
Expenditures:
Fire Expenses
Capital
Debt Payments
Total Expenditures
Revenues Over (Under) Expend itures
Beginning Fund Balance
Ending Fund Balance
4/18/02
City of Friendswood
Combined Revenues and Expenditures
March 2002
Original
Budget
0
0
0
0
0
0
0
0
0
0
190,000
0
0
0
190,000
0
173,000
80,572
253,572
(63,572)
63,572
0
Amended
Budget
0
0
0
0
0
0
0
0
0
0
190,000
0
0
0
190,000
0
173,000
80,572
253,572
(63,572)
63,572
0
March
Actual
0
0
16
16
175
0
175
(159)
7,457
7,298
15,542
2,000
0
224
17,766
0
0
0
0
17,766
45,088
62,854
March 2002 Monthly Report
Year to
Date
Actual
0
0
67
67
474
0
474
(407)
7,705
7,298
108,715
2,000
0
1,079
111,794
129,829
0
40,286
170,115
(58,321)
121,175
62,854
%
Collected!
Variance Spent
0 0%
0 0%
67 100%
67
(474)0%
0 0%
(474)
(407)
7,705 100%
7:298
(81,285) 57%
2,000 0%
0 0%
1,079 100%
(78,206) 59%
(129,829)
173,000 0%
40,286 50%
83,457 67%
5,251
57,603
62,854
Page 3
City of Friendswood
Combined Revenues and Expenditures
March 2002
Year to %
Original Amended March Date Collected/
Budget Budget Actual Actual Variance Spent
TAX DEBT SERVICE FUND
Revenues:
Ad Valorem Tai<es 10 1,160,630 '17,272 1,120,463 (40,167) 97%
Interest 0 0 1,251 3,614 3,614 100%
lnterfund Transfer 0 0 0 0 0 100%
Total Revenues 10 1,160,630 18,523 1,124,077 (36,553) 97%
Expenditures:
Debt Service
Principal 1,004,342 1,004,342 300,689 438,504 565,838 44%
Interest 159,378 159,378 112,553 119,287 40,091 75%
Paying Agent Fees 1,100 1,100 0 500 600 45%
Total Expenditures 1,164,820 1,164,820 413,242 558,291 606,529 48%
Revenues over (Under) Expenditures (1,164,810) (4,190) (394,719) 565,786 569,976
Beginning Fund Balance 67,000 67,000 1,037,680 77,175 10,175
Ending Fund Balance (1,097,810) 62,810 �961 642,961 580,151
4/18/02 March 2002 Monthly Report Page 4
City of Friendswood
Combined Revenues and Expenditures
March 2002
Year to %
Original Amended March Date Collected/
Budget Budget Actual Actual Variance Spent
WATER AND SEWER FUNDS
COMBINED
Operating Revenues:
Water Revenue 4,139,347 4,139,347 231,105 1,358,992 (2,780,355) 33%
Sewer Revenue 2,095,230 2,095,230 177,355 977,597 (1,117,633) 47%
Administrative Fees 137,000 137,000 13,729 76,283 (60,717) 56%
Sale of Water Meters 45,000 45,000 7,410 36,170 (8,830) 80%
Miscellaneous Revenues 0 0 0 600 600 100%
Total Operating Revenues 6,416,577 6,416,577 429,599 2,449,642 (3,966,935) 38%
Operating Expenses:
Public Works
Water Operations 1,721,323 1,721,150 143,750 731,207 989,943 42%
Sewer Operations 1,729,427 1,748,499 95,903 749,345 999,154 43%
Utility Administration 119,382 120,777 8,744 47,118 73,659 39%
Customer Service 121,179 121,247 4,571 58,975 62,272 49%
Total Public Works 3,691,311 3,711,673 252,968 1,586,645 2,125,028 43%
Community Development
Engineering 167,615 _ 167,615 9,105 79,118 88,497 47%
Administrative Services
Finance 177,923 178,484 7,024 77,841 100,643 44%
Risk Management 81,494 81,494 765 25,680 55,814 32%
Management Information Services 8,516 15,266 0 6,750 8,516 44%
Total Administrative Services 267,933 275,244 7,789 110,271 164,973 40%
Total Operating Expenses 4,126,859 4,154,532 269,862 1,776,034 2,378,498 43%
Net Income from O_perations 2,289,718 2,262,045 159,737 673,608 (1,588,437} 30%
Non-Operating Revenues (Expenses)
Interest Earned 106,000 106,000 7,642 32,965 (73,035) 31%
Rental Revenue 1,050 '1,050 0 525 (525)50%
Capital Improvements (527,000) (752,203) (59,323) (280,393) 471,810 37%
Operating Transfers ln/(Out) (1,393,775) (1,393,775) (182,126) (1,092,756) 301,019 78%
Transfers from Bond Funds 0 0 0 0 0
Reserves (23,200} (23,200} 0 (3,651} 19,549 16%
Total Non-Operating
Revenues and (Expenses {1,836,925} {2,062,128} (233,807} (1,343,31 O} 718,818
Net Income (Loss) 452,793 199,917 (74,070) (669,702) (869,619)
Working Capital Oct 1, 2001 0 0 3,939,000 <as of 10/01/2001
Net Income 452,793 199,917 (669,702)
Working Capital September 30, 2002. 452,793 �917 3,269,298 « as of 3/31/2002
4/18/02 March 2002 Monthly Report Page 5
City of Friendswood
Combined Revenues and Expenditures
March 2002
Year to %
Original Amended March Date Collected/
Budget Budget Actual Actual Variance Spent
WATER AND SEWER CIP/IMPACT FEE FUND
Non-Operating Revenues
Impact Fees 616,268 616,268 94,607 372,627 (243,641) 60%
Interest 18,500 18,500 600 2,938 (15,562) 16%
Total Non-Operating Revenues 634,768 634,768 95,207 375,565 (259,203) 59%
Operating Transfers Out 975,864 975,864 63,119 524,339 �_45_1_.525 54%
Net Income (341,096) (341,096) 32,088 (148,774) 192,322
Beginning Retained Earnings 498,931 498,931 228,595 409,457 (89,474)
Ending Retained Earnings 157,835 157,835 260,683 260,683 102,848
WATER AND SEWER
REVENUE DEBT SERVICE FUNDS
Non-Operating Revenues
Interest 0 0 1,016 4,764 4,764 100%
Operating Transfers In 1,767,600 1,767,600 195,075 1,316,075 (451,525) 74%
Total Non Operating Revenues 1,767,600 1,767,600 196,091 1,320,839 (446,761) 75%
Non-Operating Expenses
and Other Financing Activities
Debt Service
Principal 608,494 608,494 622,934 622,934 (14,440) 102%
Interest Expense 1,142,645 1,142,645 643,405 643,405 499,240 56%
Other Debt 0 0 100%
Paying Agent Fees 5,200 5,200 0 998 4,202 19%
Bond Costs 11,261 11,261 13,527 27,277 (16,016) 242%
Total Non-Operating Expenses 1,767,600 1,767,600 1,279,866 1,294,614 472,986 73%
Net Income 0 0 p,083,775) 26,225 26,225
4/18/02 March 2002 Monthly Report Page6
City of Friendswood
Combined Revenues and Expenditures
March 2002
Year to %
Original Amended March Date Collected/
Budget Budget Actual Actual Variance Spent
VEHICLE REPLACEMENT FUND
Revenues
Interest 0 0 9 49 49
Lease Revenue 225,104 225,104 0 156,101 (69,003) 69%
Total Revenues 225,104 225,104 9 156,150 (68,954)
Expenses
Vehicle Purchases 276,289 276,289 0 175,076 101,213 63%
Total Expenses 276,289 276,289 0 175,076 101,213
Beginning Balance 0 0 18,935 0 0
Ending Balance (51,185) (51,185) (18,926) (18,926)
1776 PARK TRUST
Revenues
Interest 0 0 50 161 161
Expenditures
1776 Park Improvements 0 0 0 0 0
Revenues over (under) Expenditures 0 0 50 161 161
Beginning Fund Balance 0 0 24,003 23,892 23,892
Ending Fund Balance 0 0 _ . _24,0_§� 24,053 24,053
'
4/18/02 March 2002 Monthly Report Page 7
City of Friendswood
Combined Revenues and Exper:iditures
February 2002
Project
Bond Amended Actual Start to
Project Project February February
Budget Budget 2002 2002 Variance
1999 WATER AND SEWER BOND FUND
Revenues:
Bond Proceeds 4,961,934 4,961,934 0 4,961,934 0 '100%
Interest 0 0 3,028 374,803 374,803 +100%
Total Revenues 4,961,934 4,961,934 3,028 5,336,737 374,803 108%
134%
Expenditures:
Capital Expenditures:
Ground Storage Water Tank I Y'Jell # 3 675,000 675,000 0 0 675,000 0%
Ground Storage Water Tank I Well# 4 675,000 675,000 2,138 127,760 547,240 19%
Install Air Stripping System Well # 4 67,500 67,500 0 1,100 66,400 2%
Coward's Creek 24" Sanitary Trunkline 1,429,245 1,429,245 0 1,157,434 271,811 81%
E Heritage 8" Sanitary Sewerline 228,798 228,798 0 137,911 90,887 60%
Moore I Mandale 8" Waterline 170,285 170,285 0 274,160 (103,875) 161%
Melody to Sunset 16" Waterline 806,377 806,377 0 635,908 170,469 79%
Autumn Creek Oversizing 111,703 111,703 0 111,703 0 100%
Additional Projects 40,967 40,967 0 0 40,967 0%
Total Capital Expenditures 4,204,875 4,204,875 2,138 2,445,976 1,758,899 58%
· Transfers:
Blackhawk & 2351 Waterline 584,225 584,225 0 584,225 0 100%
Mary's Creek 121,273 121,273 0 121,273 0 100%
Water Revenue Debt Service 51,561 51,561 0 51,561 0 100%
Total of Transfers 757,059 757,059 0 757,059 0 100%
Total Expenditures and Transfers 4,961,934 4,961,934 2,138 3,203,035 1,758,899 65%
Revenues over Expenditures 0 0 890 2,133,702
2000 WATER AND SEWER BOND FUND
Revenues:
Bond Proceeds 3,527,266 3,527,266 0 3,527,266 0 100%
Interest 0 37,280 325 195,997 158,717 100%
Total Revenues 3,527,266 3,564,546 325 3,723,263 158,717 104%
Expenditures:
Capital Expenditures Water Capacity:
1.0 MGD Capacity -SEWPP -LaPorte 850,000 850,000 0 850,000 0 100%
.5 MGD Capacity-SEWPP -MUD 55 584,400 584,400 0 584,400 0 100%
Additional Capacity-SEWPP 2,092,866 2,092,866 2,030,219 62,647 97%
Transfer to Debt Service -Bond Costs 0 37,280 0 37,280 0 100%
Total Expenditures 3,527,266 3,564,546 0 3,501,899 62,647 98%
Revenues over Expenditures 0 0 325 __ J_gi,364
March 2002 Monthly.Projects
/ City of Friendswood
Combined Revenues and Expenditures
February 2002
Project
Amended Actual Start to
2001 WATER AND SEWER BOND FUND Project Project February February
Budget Budget 2002 2002 Variance
Revenues:
Bond Proceeds 6,117,175 6,117,175 0 6,117,175 0 100%
Interest 6,505 6,505 7,179 122,834 116 ,329 +100%
Total Revenues 6,123,680 6,123,680 7,179 6,240,009 116,329 102%
Expenditures:
Beamer Road Waterline 1,343,000 1,343,000 13,741 78,844 1,264,156 6%
Rehabilitation Blackhawk Storage 71,492 71,492 83 3,400 68,092 5%
GRP Beamer Road Pump Station 2,496,000 2,496,000 88,057 939,536 1,556,464 38%
GRP 1.0 MG Elevated Storage Tank 1,838,000 1,838,000 172,132 332,344 1,505,656 18%
GRP 0.5 MG Ground Storage Tank 300,000 300,000 469 28,337 271,663 9%
Transfer to Debt Service -Bond Costs 75,188 75,188 0 76,188 (1,000) 101%
Total Expenditures 6,123,680 6,123,680 274,482 1,458,649 4,665,031 24%
Revenues over Expenditures 0 . 0. (267,303) 4,781,360
PARK LAND DEDICATION FUND April 2000
Amended Actual Thru
Fund Fund February February
Budget Budget 2002 2002 Variance
Revenues:
Interest 0 0 305 4,261 4,261 +100%
Neighborhood Park Fees 0 0 272 24,070 24,070 +100%
Community Park Fees 0 121,900 10,800 134,700 12,800 111%
Total Revenues 0 121,900 11,377 163,031 41,131 134%
Expenditures:
Park Improvements 0 _ 1 �1._9Q_O 0 0 121,900 0%
Revenues over (under) Expenditures 0 0 11-'-3l7 163,031 -----·---
HAZARD MITIGATION SUMMARY Oct 2001
Amended Actual Thru
Project Project February February
Budget Budget 2002 2002 Variance
Revenues:
Federal Government 19,265,746 19,265,746 295,464 13,331,795 5,933,951 69%
State -Department of Community Affairs 350,000 350,000 0 350,000 0 100%
Harris County Flood Control District 1,111,088 1,111,088 0 1,111,088 0 100%
Galveston County 350,000 350,000 0 350,000 0 100%
Clear Creek Drainage District 100,000 100,000 0 0 100,000 0%
Insurance Reimbursements 2,160,000 2,160,000 0 0 2,160,000 0%
Total Revenues 23,336,834 23,336,834 295,464 15,'142,883 6,033,951
Expenditures:
Appraisals 183,755 183,755 134,075 49,680 73%
Buyout Purchases 23,343,906 23,343,906 295,464 17,536,377 5,807,529 75%
Demolitions 2,160,000 2,160,000 0 0 2,160,000 0%
Total Expenditures 25,687,661 25,687,661 295,464 17,670,452 8,017,209 69%
Revenues Over (Under) Expenditures (2,350,827) (2,350,827) (2,527,569)
March 2002 Monthly.Projects
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COMPREHENSIVE
ANNUAL FINANCIAL REPORT
City of Friendswood, Texas
Fiscal Year Ended
September 30, 2001
Officials Issuing Report
Ronald E. Cox
City Manager
Roger C. Roecker
Director of Administrative Services
I CITY OF FRIENDSWOOD, TEXAS
I I COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
l �Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal t l Organization Chart 16
Certificate of Achievement for Excellence in Financial Reporting 17
Principal Officials 18 11 FINANCIAL SECTION
Independent Auditors' Report 21 I l GENERAL PURPOSE FINANCIAL STATEMENTS
Combined Balance Sheet -All Fund Types and Account Groups A-1 24 11 Combined Statement of Revenues, Expenditures and Changes in Fund
Balances -All Governmental Fund Types A-2 28
Combined Statement of Revenues, Expenditures and Changes in Fund
Li Balances -Budget and Actual (Budgetary Basis) -General, Certain
Special Revenue, and Debt Service Funds A-3 30
Combined Statement of Revenues, Expenses and Changes in Retained
l1 Earnings/Fund Balance -Proprietary Fund Type and Non-Expendable
Trust Fund A-4 32
Combined Statement of Cash Flows -Proprietary Fund Type and Non-
Expendable Trust Fund A-5 34
,I i Notes to Financial Statements A-6 36
Required Pension System Supplementary Information A-7 58
J ! COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
General Fund: l1 Comparative Balance Sheet B-1 62
Statement of Revenues, Expenditures and Changes in Fund Balance -Budget
and Actual (Budgetary Basis) B-2 63 lI Special Revenue Funds:
Combining Balance Sheet C-1 72
l!Combining Statement of Revenues, Expenditures and Changes in Fund
Balance C-2 74
Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget n and Actual (Fire/EMS Donations) C-3 76
Debt Service Fund:
Comparative Balance Sheet D-1 78 11 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget
and Actual D-2 79
Enterprise Fund: ll Comparative Balance Sheet E-1 83
Schedule of Bonds Debt Service Requirements to Maturity E-2 84
Schedule of Certificates of Obligation Debt Service Requirements to Maturity E-3 86
CITY OF FRIENDSWOOD, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
FINANCIAL SECTION (continued)
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES (continued)
General Fixed Asset Account Group:
Comparative Schedules of General Fixed Assets by Source
Schedule of General Fixed Assets by Function and Activity
Schedule of Changes in General Fixed Assets by Function and Activity
General Long-Term Debt Account Group:
Comparative Schedules of General Long-Term Debt
Schedule of General Long-Term Debt Service Requirements to Maturity
UNAUDITED STATISTICAL SECTION
General Government Revenues By Source
General Governmental Expenditures by Function
Property Tax Levies and Collections
Assessed and Estimated Actual Value of Taxable Property
Tax Rate Distribution
Direct and overlapping Property Tax Rates
Principal Taxpayers
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Expenditures
Revenue Bond Coverage
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt
Per Capita
Computation of Direct and Overlapping Debt
Miscellaneous Statistical Data
ii
Exhibit Page
F-1 89
F-2 90
F-3 92
G-1 95
G-2 96
I 100
2 102
3 104
4 106
5 107
6 108
7 110
8 111
9 112
10 114
I I 116
14 117
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To the Honorable Mayor and
Members of the City Council
City of Friendswood
March 28, 2002
The comprehensive annual financial report of the City of Friendswood for the fiscal year ended
September 30, 2001, 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 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.
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.
This report includes all funds and account groups of the City. Friendswood Independent School District,
Clear Creek Independent School District, Galveston County, Harris County, Clear Creek Drainage
District and Friendswood Volunteer Fire Department have not met the established criteria for inclusion in
the repo11ing entity and, accordingly, are excluded from this repo1t.
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 Waste Treatment
Plant is 52.4 7% and paid operating and management fees during the year in the amount of $927,503. 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 $541,573 during the year. The City is participating in expansion of the
Southeast Water Purification plant increasing the City's share of production pumping costs from 3.75% to
5%. The expansion target completion date is December 31, 2002.
RANGE OF CITY SERVICES PROVIDED
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.
Water and Sewer
The City provides water and sewer services for residential and commercial locations. 20 employees are
responsible for maintaining the system, as well as billing and collecting for the services.
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, one
Assistant and one Deputy Fire Marshals, one Administrative Secretary, one full-time fire captain and
funds six fir e fighter, 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.
Streets
The street department is responsible for the repair and maintenance of all city streets and roadside
drainage. This department consists of thirteen employees.
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
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, engi neering 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. During 2001
CLAEDF "successfully recruited seven new companies to the Clear Lake region, which will create 834
new jobs, 592 indirect jobs and contribute approximately $53.6 million each year to the local economy."
MAJOR INITIATIVES
For the Year.
During the fiscal year 2001 budget preparation, the City identified several important programs needed to
meet citizens' needs for services and to safeguard the environment, in conformity with applicable federal
and state standards. The following items will provide a summary of these programs.
Streets and Drainage
During the fiscal year 2001 budget preparation the main focus on street construction shifted from concrete
to asphalt streets and $500,000 was budgeted for reconstruction. Council approved a multi-year plan to
overlay with asphalt a number of streets in the city that are not prime for reconstructing with concrete, yet
need to be resurfaced to protect their integrity and provide a smooth riding surface. The first year of that
multi-year project was to have begun during the summer of 2001; however, due to the intense work
required over a long period of time by city staff on Tropical Storm Allison flood cleanup, the project was
delayed. On December 10, 2001 a bid was awarded, in the amount of $400,042 and work begun on
fourteen streets identified in Phase I: I) Street Overlays: Chester Drive, Cowards Creek Court, Cowards
Creek Drive, Falling Leaf Drive, Laurel Drive, Meadowlark Avenue, East Shadowbend Avenue,
Whispering Pines Avenue and Briar Creek; 2) Street Reclaims: Clover Ridge Avenue, Fence Post Road,
Meadowlark Avenue, Rustic Lane and Westfield Lane.
$39,032 was budgeted for new sidewalk construction for fiscal year 200 I. This amount was combined
with unappropriated prior year budgeted sidewalk funds and a bid awarded for $57,645 on October I,
200 I to construct 3,260 LF of sidewalks on the Safe School Route Sidewalk Program: W. Shadowbend
from Woodlawn to FM 518, E. Shadowbend from Quaker to FM 518 and Quaker from E. Shadowbend to
Skyview.
In addition, $114,032 was budgeted for one-half the City's matching cost towards preliminary
engineering and environmental assessment on two Harris county road projects; Brittany Bay Boulevard,
$89,932; and Friendswood Link Road extension, 24, I 00. The remaining one-half City match is budgeted
in fiscal year 2002.
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Additional funding during the 2001 fiscal year was appropriated for the City's matching contribution to
Clear Creek Drainage District towards Baker Road bridge in the amount of $50,763.
In an emergency appropriation June 18, 200 I, after Tropical Storm Allison, City Council appropriated
$30,000 to replace a 42 inch ruptur ed storm sewer pipe on Dorado Street in Sun Meadow, between St.
Cloud and St. Andrews.
Parks
Phase I development of the new Centennial Park, begun in fiscal year 1999-00, continued full force
during fiscal year 200 I. Construction included street and drainage infrastructure, parking lots, six soccer
fields and turf for the soccer fields as well as common areas. An additional $21,830 was budgeted
towards installation of an irrigation system for the park. Additional funding during the 2001 fiscal year,
in the amount of $143,248, was appropriated from cellular tower rental revenue. Centennial Park, Phase
I, is scheduled for completion during fiscal year 2001-02. Other Parks equipment included in the fiscal
year 2001 budget was automation of FM 518 sprinkler irrigation system, $ I 6,800; replace crew cab truck,
$26,600, and mower with attachments, $20,000; weight and cardio equipment for Activity Center
exercise room, $15,000; and pool lift for Stevenson Park Pool, $4,100.
Facilities
$372,202 was set aside to construct an employee lunch room, storage facility, wash bay, sign shop and a
six foot electronic security gate, as well as replace the roof, at the Public Works facility. A preliminary
study was begun for a new Public Safety facility, $16,005. Other facility improvements included a new
roof for Stevenson Park Pool pump room, $2,500; replace restroom fixtures at Renwick Park, $6,400;
plumbing repairs at Fire Station #I, $5,000; replace air conditioning units at Fire Stations #2 and #3,
$3,500 each, and two units at Public Safety Building, $8,000; and, miscellaneous repairs to the Animal
Control facility, $4,200. $20,000 was budgeted to purchase an electronic reader board sign for City Hall.
Police and Fire Marshal
The fiscal year 200 I police budget included replacing two patrol division cruisers, $51,550; one truck for
criminal investigation division, $21,000; and, replacement of hvo I 00-watt Ultra High Frequency (UHF)
radio repeaters which were 20-plus years old, $13,541. The repeaters insure the integrity and strength of
signal on hvo police frequencies that are used daily. One replacement vehicle for Fire Marshal
department was budgeted at $18,500.
Fire Department
During fiscal year 2001 a new three-quarter ton pick-up was added to the fi re department fleet of vehicles
for $40,000. $25,000 was budgeted to replace Medic vehicle, M44. Additional budgeted equipment
included miscellaneous equipment for the new aerial platform fire truck, purchased in 1999-00, $20,000;
automatic external defibrillator, $7,000; and, three new stretchers, $3,000. A multi-year program was
begun to expand radio capabilities in order to communicate with surrounding fi re departments using an
800-megahertz radio trunk system. $5,000 was budgeted for the first year to purchase three or four hand
held radios.
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Water and Sewer
During fiscal year 2001 $32,500 was set aside for conversion of four lift stations to variable speed pumps:
Eagle's Cove (#5), $10,000; Whittier Oaks (# 18), $15,000; Forest Bend (#22), $4,000; and Imperial
Estates (#1), $3,500. $8,000 was budgeted to construct a chlorine room for Water Well #6 and $5,000 to
add an air conditioning system to the Blackhawk Water Plant. The fiscal year 200 I budget included
replacing three pieces of construction equipment: 14 yard dump truck, $61,000; backhoe, $57,925; and,
mini-excavator, $30,000. Four pickup trucks were also budgeted for replacement as scheduled on the
vehicle replacement plan, $60,000. Other budgeted water and sewer equipment included a pan and tilt
camera for sewer line maintenance, $20,000; and, surveying equipment, $11,000.
The City continued the scheduled multi-year water and sewer improvements which were funded by two
Water and Sewer Revenue Bond issues in fiscal year 1999-00. The 1999 bond issue included: replacing
the Coward's Creek 24 inch sanitary trunk line (completed;) constructing the Moore/Mandate waterline
system loop ( completed;) replacing the E. Heritage 8 inch sanitary sewer line; installing a 16 inch
waterline on FM 2351 from Melody to Sunset; and, replacing two ground storage tanks at Water Wells
#3, (replace a 500,000 gallon tank with a 500,000 gallon tank) and #4 (replace a 210,000 gallon tank with
a 500,000 gallon tank.) Completion of all projects is scheduled for 2001-02.
The 2000 Water and Sewer Revenue bonds were issued to increase our capacity in 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 $3,464,618.
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
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." Om circumstances have
changed.
The Subsidence District adopted a revised regulatory plan which went into effect January 1, 200 I. The
City is now 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
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, during fiscal year 2001 the City
prepared a Groundwater Reduction Plan (GRP). The GRP is a plan that shows the Subsidence District
how and when we will meet the new requirements. The Subsidence District approved the City's GRP and
the disincentive fee was waived, saving a substantial amount of money. A key item in the GRP was to
identify and negotiate 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, purchased
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with the 2000 Water and Sewer Revenue bond proceeds referenced above, several water system capital
improvements will be required to take this amount of water into the City's distribution system. These
include a second pump station; a 24-inch trunk main; and, additional elevated and ground storage. The
City sold additional Water and Sewer Revenue Bonds June I, 200 I, in the amount of $6, I 00,000, to fund
these improvements. The land was purchased for the second pump station and ground storage and design
engineering began in August 200 I for all projects. Projected completion date for all 200 I bond projects is
fiscal year 2002-03.
Tropical Storm Allison
On June 5-9, 200 I Tropical Storm (TS) Allison struck the Houston metropolitan area leaving a wake of
death and destruction from torrential rainfall, causing $6 billion in damage and 24 deaths in the greater
Houston and outlying areas. TS Allison formed in the northwest Gulf of Mexico on June 5, 200 I only
five days into the 2001 hurricane season. In Friendswood, this intense storm set an all time record for
rainfall on June 9 surpassing I 979's Tropical Storm Claudette. The five-day rainfall totals registered on
Cowards Creek (a tributary of Clear Creek) at Baker Road Bridge totaled 27.95 inches. This resulted in
Clear Creek cresting at 20.4 feet where the normal level is three to five feet. A total of 25 subdivisions
were affected by flooding and totaled $23,565,357 in damages. 534 homes were damaged or destroyed:
minor damage, 333; major damage, 128; destroyed, 73.
The City's Emergency Operations Center coordinated response and recovery, according to the City's
Emergency Preparedness Plans. Emergency management preparedness meetings have been conducted
each spring since 1995 for just such a disaster. In addition to all City departments, Friendswood
Volunteer Fire Department, Clear Creek Drainage District, Friendswood In dependent School District,
Harris County Flood Control District, American Red Cross, Southwestern Bell, utility companies and
Waste Management personnel participated in the meetings. Additional debris removal and landfill
contracts were executed and personnel with those companies participated in meetings during the spring of
200 I. This level of preparedness greatly enhanced the City's ability to respond and recover to the disaster
quickly, without loss of life, and begin the process of recovery.
During the storm 69 civilian volunteers worked 875.75 hours. 66 members of the Friendswood
Volunteer Fire Crew and EMS contributed 1,532 hours of service. Approximately 300 rescues were
made with high water rescue vehicles and boats. An emergency shelter was opened at Westwood
Elementary. Mutual aid was given by surrounding agencies as well as the National Guard. City
personnel worked 2,019 overtime hour s at an expense of $47,1 82.
During the recovery phase, the American Red Cross set up a service center at the Friendswood Activity
building on June 7 and continued in operation until June 29. The Westwood Elementary shelter opened
on June 9 and closed on June I 0. A total of 168 individuals stayed at the shelter. Over I 00 homes
received assistance with over 1,000 volunteers supplying work relief to those in need. Four donation sites
were set up at the First Baptist Church of Friendswood, Friendswood Friends Church, Friendswood Hope
Lutheran Church, and Friendswood Church of Christ. These sites opened on June 11 and remained open
until June 14 processing food, clothing and cleaning supplies for distribution to the flood victims. The
Federal Emergency Management Agency (FEMA) set up a Disaster Relief Center at the Friendswood
Junior High School on June 16 and remained in operation through July 21. Over 500 people attended
three informational meetings on permitting processes, rules for repair, FEMA buyout possibilities, and
FEMA's role and responsibilities. 6
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More than 11,000 cubic yards of debris were accumulated. That does not count the household hazardous
materials and white goods that were collected separately. City personnel, using City dump trucks and
construction equipment, as well as debris contractors began picking up storm debris on June 12 and
continued through July 14. In addition, Galveston County Road and Bridge crews as well as the Clear
Creek Drainage District crews assisted with debris pickup. Direct damage costs to the City amounted to
over $527,000. The city's portion, after insurance and FEMA reimbursements, will be just over
$105,000. The city's volunteer efforts were tremendous. By accounting for those volunteer hours the
city received $27,000 in credit to its matching requirements for FEMA reimbursement.
Application was made to FEMA for a Hazard Mitigation Grant to purchase homes with 50% or more
structural damage. 225 applications were received of which 171 were eligible for FEMA Buyout. 33
homeowners declined participation, leaving a total of 138 homeowners with an appraised value of
$7,405,000. Under the guidelines of the grant, FEMA will fund 75% of the market value of the home
with the local match being 25%. Once purchased, the homes become the property of the City, must be
demolished and the land returned to unimproved open space. In addition to the City, the following
entities are participating in the 25% local match: Galveston County, $350,000; Harris County Flood
Control District, $1, I I 1,088; Clear Creek Drainage District, $ I 00,000; and, State of Texas with a
$350,000 Community Development Block Grant. The response and recovery phases of the city's
activities were completed in the first quarter of fiscal year 2001-02. The FEMA Hazard Mitigation Grant
Buyout program continues and is projected for completion by September 30, 2002.
FOR THE FUTURE
Streets and Drainage
Funding for the multi-year Asphalt Overlay and Reclaim Street Program, begun in fiscal year 2001, was
continued in 2001-02 with $570,000 appropriated for Phase II. The ongoing Sidewalk Improvement
Program was budgeted with $30,000 for Safe School Routes and FM Roads. In addition, the remaining
one-half preliminary engineering and environmental assessment costs was budgeted for the Harris County
street projects, Brittany Bay Boulevard, $89,932, and Friendswood Link Road, $24, I 00.
Three drainage projects were budgeted for 2001-02 for a total of $82,360. Preliminary studies will be
conducted to identify the causes of localized flooding and recommend improvements to help alleviate
these problems. $40,000 was allocated for Sun Meadow subdivision. $42,360 was allocated for the
Clover Acres, Annalea and Kingspark/Whitehall subdivisions.
Parks
Phase I development of the City's new Centennial Park, begun in fiscal year 2001, is expected to be
completed during 2001-02, as well as two new Phase I projects budgeted in 2001-02: installation of
lighting at soccer fields #4 and #5, $110,000; and, fencing for Phase I area, $55,000. The lighting
improvements will be funded with a $30,000 donation from the Friendswood Soccer Association and
$80,000 from a new Park Dedication Ordinance, Community Parks Fee, implemented in April, 2000.
Centennial Park Phase II development is budgeted in 2001-02 for a total of $1,000,000. $500,000 will be
set aside for 50% grant match funding. The City will apply for a Texas Parks and Wildlife grant to fund
the remaining 50%. Phase II development includes a restroom and picnic pavilion, $245,000; a basketball
pavilion, $205,000; an amphitheatre structure, $155,000; an eight foot concrete hike and bike trail,
$ I 06,000; playground, $65,000; pedestrian trail, $19,233; park benches, picnic tables, trees, turf,
irrigation and signs, $30,910; and, electrical and sewer connections, $29,320. Construction plans and
specifications, grant application, site planning and contingency total $144,537.
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Facility Improvements
Facility improvements for 2001-02 include a feasibility study for a new fire station (#4), $18,000; new air
conditioner for the telephone equipment room at Public Safety building, $7,500; fire training field
engineering study, $6,000; and, fund $15,000 in alternate bids on the Public Works building addition
begun in fiscal year 200 I.
Water and Sewer
$50,000 is budgeted in 2001-02 for two waterlines, under the Neighborhood Waterline Program, to
extend the 8 inch Wilderness Trails waterline approximately 600 feet to connect to an existing 8 inch
waterline, $25,000; and, replace an existing 2 inch waterline on Rustic Lane with a 6 inch waterline,
$25,000. $46,000 is budgeted for two sewer line projects: $21,000 to reroute a 4 inch force main from
Wedgewood subdivision directly to the lift station on Deepwood to prevent the flow going through three
lift stations; $25,000 to construct a new 12 inch sewer line from the Friendswood Sports Complex grinder
pump system to the main sewer trunk line on FM 528 at the intersection of Moore Rd. This will allow the
aging grinder pump system to be shut down thereby eliminating operation and maintenance costs.
Funding for the water meter replacement program was increased from $40,000 to$ I 00,000.
Major improvements to the City's water and sewer system, begun in 1999-00, will be ongoing during
2001-02. Reference these improvements in the major initiatives section above.
Vehicle Replacement Fund
In fiscal year 1997-98 an analysis of the City's fleet was undertaken to evaluate the condition of each
vehicle and determine a replacement schedule. The analysis revealed that of the total 92 City vehicles, I 9
were used by the Friendswood Volunteer Fire Department (FVFD) with their own replacement schedule.
The FVFD vehicles are also purchased with funds donated by the citizens thru water bill donations rather
than with General Fund revenues; therefore, these vehicles were excluded from the funding plan.
Of the remaining 73 City vehicles, the analysis revealed 50, or 68.5%, had 60,000 miles or more and 19,
or 26%, had I 00,000 miles or more. In addition, maintenance costs for the 73 vehicles was projected to
reach $141,757 by the end offiscal year 1997-98, up 66% from the $85,000 expended in fiscal year 1990-
91 and budgeted for 1997-98. Of critical concern was the aging police patrol fleet.
The vehicles were divided into four life cycle classes and a Vehicle Replacement Plan ("the Plan")
developed. Criteria used to determine the replacement schedule was vehicle type, usage type, average
annual mileage and maintenance costs.
Life Description
3 Police Patrol Vehicles
8 Police Non-Patrol
10 Cars, Light Trucks, SUVs
15 Heavy Duty Trucks
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In order to bring the police patrol fleet up to the scheduled life cycle, the Plan recommended the City
enter into a five year lease program whereby four police patrol vehicles would be replaced each year for
three years. Each four-vehicle lease would be for a three year period, or the life cycle of a patrol vehicle.
This would accomplish three goals: I) replace twelve patrol vehicles over a five year period at the cost of
purchasing 9.5 vehicles; 2) enable the City to use a limited capital vehicle budget during the first three
fiscal years of the Plan, 1998-99 thru fiscal year 200 I, $123,800, $123,400 and $177,650 respectively, to
"catch up" on replacing much needed other City vehicles; and, 3) allow the City a three year period in
which to implement a Vehicle Replacement Fund (VRF).
During fiscal year 2001-02 budget preparation, the Plan was further refined to exclude City vehicles with
a replacement cost of more than $50,000. The new VRF will be created and ownership of all City
vehicles, except those excluded above, will be transfel'l'ed to the new fund. The VRF will receive lease
revenue from each department for each vehicle in an amount equal to the Plan schedule based on the life
cycle of the vehicle. During the first year, start-up funds will be borrowed from General Fund to make up
any lease revenue shortfall in the VRF. The VRF is projected to repay the General Fund during the 2002-
03 and 2003-04 fiscal years and maintain a fund balance sufficient to purchase replacements for the next
ten years.
DEPARTMENT FOCUS
Each year the City will select a department to highlight for its effo1is and accomplishments. For fiscal
year 200 I, the Public Works Department has been chosen for review.
The Public Works Facility is located at 1306 Deepwood. This department is responsible for the operation
and maintenance of the city's streets, signage, drainage, water and wastewater systems. The goal of the
Public Works Department is to provide the best possible service to the citizens of Friendswood in an
efficient, professional and safe manner.
The Public Works administration is comprised of the department director and a senior administrative
secretary. This division is responsible for the overall coordination and supervision of the entire Public
Works Depaiiment. It also coordinates and administers any special capital projects prepared by
consulting engineers, as well as planning for future needs.
The Water and Sewer administrative staff, consisting of a utilities superintendent and administrative
secretary, works directly with the depa1iment director. They are responsible for the operation and
maintenance of all water and wastewater facilities. This group makes sure the city complies with all
federal and state rules and regulations regarding water and wastewater operations.
Our Street Operations division, staffed by 11 employees, is responsible for the daily maintenance and
repair of all city-owned streets and sidewalks, drainage infrastructure, mowing of ditches and city
easements and all street and traffic signage. Over 114 miles of streets are maintained in the city. Drainage
crews clean and excavate ditches to help alleviate flooding and standing water. Worn, damaged and
vandalized signage is repaired or replaced by the city's sign technician.
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The 15 employees who staff the water and sewer operations division are responsible for the operation and
maintenance of all water and wastewater facilities. Their responsibilities include:
•Operation and maintenance of water production facilities, including six water wells and
one surface water booster station -These facilities are inspected daily, 365 days each year.
The water plant operators must deliver water that is free of pathogenic organisms. Samples
are collected daily from our system and sent to the Galveston County Health Department in
La Marque for testing. As well as ensuring water quality, this division also maintains proper
records covering water pumpage, chemical usage and pump and motor maintenance.
•Operation and maintenance of wastewater collection facilities, including 30 sewer lift
stations.
•Meter reading, new connections and disconnection of water services, meter
replacements and inspection of all new water accounts -There are I 0,088 water
connections within the city and this number continues to grow. Meter reading is
accomplished via a contract with ECO Resources; however, our employees are responsible
for re-reads, customer service of all kinds and meter change-outs. Billing for commercial
accounts is done by this company as well. Residential billing is the responsibility of the
utility billing section of Administrative Services.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and mainta111111g an internal control structure
designed to ensur e that the assets of the City are protected from loss, theft or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure is designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance
recognizes that: (I) 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 expenditur es 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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Revenues for general government functions (General, Special Revenue and Debt Service Funds) totaled
approximately $15.7 million in 2001, an increase of approximately $1.5 million over fiscal year 2000
revenues. The amount of revenue from various sources and the increase (decrease) over the preceding
year are shown in the following table:
General Government Functions
Increase
Percent of (Decrease) Percent
Revenue Source Am ounts Total from 2000 Change
Property taxes $ 8,006,906 51.0% $ 780,70 I 10.8%
Sales taxes 2,419,07 I 15.4% 297,964 14.0%
Franchise tax 988,608 6.3% 117,770 13.5%
Sanitation 1,065,400 6.8% 38,372 3.7%
Fines and forfeitures 550,854 3.5% 53,385 10.7%
Permits and fees 1,192,899 7.6% 222,031 22.9%
Intergovernmental 580,561 3.7% (27,402) -4.5%
Earnings on investments 424,412 2.7% 24,700 6.2%
Other 483,063 3.1% 1,010 0.2%
$ 15,711,774 100.0% $ 1,508,531 10.6%
Assessed valuations of approximately $1.238 billion represented an increase of 9 percent over the
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 2001 fiscal year of approximately $7.9 million, increased by approximately $667,000 or
9.2 percent of the tax levy. The ratio of total collections (current and delinquent) to the current tax levy
was I O I percent.
The City had approximately $308,000 in delinquent taxes outstanding as of September 30, 2001, which
represents 2.99 percent of the current tax levy.
Allocations of property tax levy for the 2001 fiscal year and the preceding two fiscal years are as follows
(tax rate per $100 of assessed value):
Purpose 2000-2001 1999-2000 1998-99
General Fund $ 0.5547 $ 0.5542 $ 0.5610
General Obligation Debt 0.0838 0.0843 0.0515
Total Tax Rate $ 0.6385 $ 0.6385 $ 0.6125
The City's sales taxes increased by approximately $298,000 over fiscal year 2000. This increase is
attributable to the growth in both population and commercial establishments within the City.
11
New home and commercial construction remained approximately the same as in prior year with a slight
decline in building permit s and fees. Permits and fees increased by approximately $222,000. The total
amount of new construction for the current fiscal year was approximately $117 million, down from
$121.2 million for fiscal year 2000, a decrease of 4 percent.
Expenditures for general government functions (General, Special Revenue and Debt Service Funds)
totaled approximately $ I 4.1 million a decrease of approximately $64,000 or 4.3% f rom fiscal year 2000.
Increases or (decreases) over the preceding year in the levels of expenditures for major functions of the
City are shown in the following table:
Increase
Percent of (Decrease) Percent
Function Amounts Total from 2000 Change
General government $ 2,196,226 15.6% $ ( I 09,690) -4.8%
Public safety 5,115,933 36.2% 850,183 19.9%
Public works 1,201,584 8.5% ( I ,439,404) -54.5%
Sanitation 998,603 7.1% (29,862) -2.9%
Community development 641,047 4.5% 105,963 19.8%
Community services 2,738,557 19.4% 383,371 16.3%
Capital outlay 98,987 0.7% (553,219) -84.8%
Debt service 1,127,645 8.0% 150,986 15.5%
$ 14,118,582 100.0% $ (641,672) -4.3%
General government expenditures decreased $ I 09,000 during fiscal year 200 I. Capital outlay in
Computer Services decreased $53,000. Legal costs decreased $107,000 due to resolution of outstanding
charges in fiscal year 2000.
The Public Safety increase in expenditures was due to costs attributed to Tropical Storm Allison in the
amount of $354,000. Police services increased by $336,000 due to the addition of two school resource
officers, vehicle replacement and radio equipment replacement. The Fire and EMS expenditures
increased due to a pay rate increase for the pool of certified fire fighters, increased fuel and medical
supply costs and capital outlay.
Public Works expenditures reflect a decrease of $1 .4 million from the prior fiscal year. This variance
comes f rom out Street Improvement Program. The expenditures for the prior year included unexpended
street capital funds from the prior year.
Expenditures in Community Development grew by $105,963. The increase is due to additional personnel
in the inspection division to management increased residential construction.
Community Services increased by $383,371. The increase is due to capital outlay in the parks division.
Capital outlay decreased by $553,2 I 9. This decrease is due to the purchase of a fire truck during 2000.
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Fund Balance Levels
Fund balances in the major operating funds were maintained at budgeted levels. Net changes in these
fund balances are tabulated below:
Fund
General
Special Revenue
Debt Service
Enterprise Fund Opemtions
Beginning
Fund Balance
$ 4,443,857
77,039
68,627
Net Increase Ending Fund
(Decrease) Balance
$ 1,996,542 $ 6,440,399
251,637 328,676
8,548 77,175
The water and sewer utility operation continued to show gains in number of customers. Comparative data
for the past tv,o fiscal years are presented in the following table:
Operating and investment revenues
Operating expenses before depreciation
Net Revenue Available for Debt Service
Revenue Bond Debt Service
Coverage (income available for revenue
bond debt service divided by annual
revenue bond debt service)
Number of customers
Water
Sewer
Non-Expendable Trust Fund Operation 2001 $ 6,599,787
3,253,593
$ 3,346,194
$ 871,621
3.8
10,088
9,415
$
$
$ 2000 7,212,907
3,310,375
3,902,532
441,600
8.8
9,423
8,979
The Non-Expendable Trust Fund is comprised of assets held by the City for the 1776 Park. Activity in
this fund resulted solely from interest earnings during the year. Fund balance was approximately $81,000
as of September 30, 2001.
Cash Management
Cash temporarily idle during the year was invested in TexPool, Lone Star, and MBIA investment pools as
well as U.S. government securities. The City earned approximately $993,000 on these investments during
fiscal year 200 I .
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.
13
Debt Administration
The ratio of net general obligation debt paid from governmental fund resources to assessed valuation and
the amount of bonded debt per capita are useful indicators of the City's debt position to municipal
management, citizens and investors. At year end, these indicators were as follow:
Percent of
Debt to
Assessed Debt Per
Description Amount Value Capita
Net direct bonded debt $ 2,128,550 0.2% $ 65
Overlapping debt 51,468,819 4.2% 1,573
Total Direct and
Overlapping Debt $ 53,597,369 4.3% $ 1,638
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 amount of
$6.1 million. The City's debt retirements amounted to $384,000 of general long-term debt t and $928,000
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, 2000. This was the fourteenth 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 serviceof the entire staff of the Administrative Services Department. Each member of the department has mysincere appreciation for the contributions made in the preparation of this report.
In closing, I also express my thanks to the Mayor, members of the City Council and the City Manager for
their leadership, interest and support in conducting the financial operations of the City in a responsible
and progressive manner.
Sincerely,
Roger C. Roecker
GJr--(.{9� Director of Administrative Services
15
CITY OF FRIENDSWOOD, TEXAS
ORGANJZA TJON CHART
I I I
Appointed Friendswood City
Boards and Volunteer Secretai)'
AD HOC Fire
Committees Department
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Administrative Community
Services Development
I
Police MAYOR AND COUNCIL I I I I I
City City Municipal City
Manager Attorney Judge Prosecutor
I I I I
Fire Marshal Public Community
Emergency Works Services
Management 16
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Certificate of Achievement for Excellence in Financial Reporting
Pre sented to
City of Friendswood,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2000
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.
� of �Went
fJfh/.� Executive Director
17
CITY OF FRIENDSWOOD, TEXAS
PRINCIPAL OFFICIALS
September 30, 2001
Elected Officials
Harold L. Whitaker
Kitten Brizedine
Jerry Erickson
Tracy Goza
Kim Wayne Brizendine
Larry Taylor
Mel P. Measeles
Appointed Officials
Ronald E. Cox
Deloris McKenzie
Jon Branson
Rebecca Carbone
Mickie! G. Hodge
Kaz Hamidian
Olson & Olson
Terry Byrd
Roger C. Roecker
Luther Loeser
James W. Woltz
Position
Mayor
Council Member -Position No. I
Council Member -Position No. 2
Council Member -Position No. 3
Council Member -Position No. 4
Council Member -Position No. 5
Council Member -Position No. 6
City Manager
City Secretary
Position
Director of Community Services
Tax Assessor-Collector
Community Development Director
Acting Director of Public Works
City Attorney
Fire Marshal/ Emergency Management
Coordinator
Director of Administrative Services
Acting Police Chief
Judge -Municipal Court 18 Term
Ex�ires
May 2002
May 2002
May 2002
May 2003
May 2004
May 2002
May 2004
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I I Greenway Plaza, Suite 1515
Houston, TX 77046
(713)621-1515
Fax: (713) 621-1570
l,'L Null•Lairson
CERTIFIED PUBLIC ACCOUNTANTS
PROFESSIONAL CORPORATION
One Sugar Creek Blvd., Suite 1150
Sugar Land, TX 77478
(281)242-8600
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, 2001. 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 auditing standards generally accepted in the United States of
America. 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, 2001, 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 accounting principles generally accepted in the United States of America.
Our audit was made for the purpose of forming an opinion on the general-pmpose 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.
Houston, Texas
March 1, 2002
� wt,(i?(�!i'l,f.C
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GENERAL PURPOSE FINANCIAL STATEMENTS
23
CITY OF FRIENDSWOOD, TEXAS
COMBINED BALANCE SHEET-
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2001 Assets and Other Debits Assets Cash and temporary investments
Receivables, less allowance for
uncollectibles
Taxes
Customer accounts
Other
Due from other governments
Inventory
Prepaid and other assets
Restricted cash and investments Fixed Assets: General Fixed Assets
Enterprise system property, plant
and equipment at cost, less
accumulated depreciation
Non-expendable trust assets
Water Rights Other Debits Amount available for debt service
Amount to be provided for retirement
of general long-term debt Total Assets and Other Debits See Notes to Financial Statements. Proprietary Govemmental Fund Tn!es Fund Tl'.(!e Special Debt General Revenue Service Entererise $6,552,243 $ 245,358 $ 79,994 $ 4,048,399
259,671 48,806
77,746 959,330
477,378 24,089 5,007
688,974
13,480 5,575
3,304 585
8,838,843
25,633,214
3,464,619
$8,072,796 $ 269,447 $ 128,800 $ 42,955,572
24
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Page 1 o/2 11
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Fiduciary 11 Fund Tree Account Groues Totals
Trust and General General Long-{Memorandum Onlr}
Agency Fixed Assets Term Debt 2001 2000
1 l $ 23,892 $ $ $ I 0,949 ,886 $ 7,432,252
fl 308,477 269,184
Li 1,037,076 I, 111,231
506,474 492,500
688,974 449,502
19,055 9,841 H 3,889 26,768
8,838,843 7,415,325
l l 35,013,219 35,013,219 33,922,077 I ! 25,633,214 23,791,943
l 57,200 57,200 57,200
3,464,619 850,000
77,175 77,175 68,627 I 1 2,931,740 2,931,740 3,276,573
$ 81,092 $35,013,219 $3,008,915 $ 89,529,841 $ 79,173,023 l!n
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CITY OF FRIENDSWOOD, TEXAS
COMBINED BALANCE SHEET-
ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 200/
Liabilities, Equity, and Other Credits
Liabilities
Accounts payable
Accrned liabilities
Accrned compensated absences
Customer deposits
Deferred revenue
Bonds payable
Certificates of obligation payable
Obligations under capital leases
Accretion on premium compound interest
bonds
Total Liabilities
Equity and Other Credits
Investment in general fixed assets
Contributed capital
Retained earnings
Fund Balances
Reserved for encumbrances
Reserved for inventory and prepaids
Reserved for debt services
Reserved for endowment
Unreserved
Designated for construction
Designated for projects
Undesignated
Total Equity and Other Credits
Total Liabilities, Equity, and Other Credits
See Notes to Financial Statements.
Proprietary
Governmental Fund Types Fund T��e
Special Debt
General Revenue Service EnterE_rise
$ 330,389 $ 1,200 $ 2,819 $ 600,958
165,386 179,217
863,035 86,063
232,167
273,587 48,806
15,321,714
5,080,000
73,440
1,632,397 1,200 51,625 21,573,559
13,066,394
8,315,619
434,509
16,784
77,175
876,656
137,018 268,247
4,975,432
6,440,399 268,247 77,175 21,382,013
$8,072,796 $ 269,447 $ 128,800 $ 42,955,572
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Page 2 of 2
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Fund T�ee Account Groues Totals 11 Trust and General General Long-{Memorandum Onl�2
Agency Fixed Assets Term Debt 2001 2000 11
lI $ $ $ $ 935,366 $ 573,323
344,603 307,630
949,098 956,647
232,167 262,143
322,393 381,215
445,725 15,767,439 10,592,752
1,760,000 6,840,000 7,085,000 1 ! 713,430 713,430 775,443
89,760 163,200 253,705
I '. 3,008,915 26,267,696 21,187,858
I i 35,013,219 35,013,219 33,922,077
13,066,394 12,435,358
8,315,619 6,958,458
lI 434,509 820,966
16,784 28,942
77,175 68,627 u 67,200 67,200 67,200
876,656 169,267 1 l 405,265 157,589
13,892 4,989,324 3,356,681
81,092 35,013,219 63,262,145 57,985,165 n $ 81,092 $35,013,219 $3,008,915 $ 89,529,841 $ 79,173,023
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES
Year Ended September 30, 2001
Governmental Fund T��es Special Debt General Revenues Revenue Service
Property taxes $ 6,949,269 $ $1,057,637
Sales taxes 2,419,071
Franchise fees 988,608
Sanitation 1,065,400
Fines and forfeitures 550,854
Permits and fees I, 192,899
Intergovernmental 576,29 I 4,270
Interest on investments 397,539 8,746 18,127
Other 120,839 362,224
Total Revenues 14,260,770 375,240 1,075,764
Expenditures
Current:
General government 2,196,226
Public safety 5,091,317 24,6 I 6
Public works 1,201,584
Sanitation 998,603
Community development 641,047
Community services 2,738,557
Capital outlay 98,987
Debt Service:
Principal retirement 23,144 593,326
Interest and fiscal charges 37,285 473,890
Total Expenditures 12,867,334 123,603 1,067,216
Revenues Over (Under) Expenditures 1,393,436 251,637 8,548
Other Financing Sources (Uses) Operating transfers in Operating transfers (out) 555,713
Proceeds from issuance of debt 47,393 Total Other Financing Sources (Uses) 603, I 06
Revenues and Other Financing Sources Over (Under)
Expenditures and Other Financing (Uses) 1,996,542 251,637 8,548
Fund balances -Beginning, as restated 4,443,857 77,039 68,627
Fund Balances -Ending $ 6,440,399 $ 328,676 $ 77,175
See Notes to Financial Statements.
28
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ll Exhibit A-2
lI Totals 1 ! (Memorandum Only)
2001 2000
I I $ 8,006,906 $ 7,226,205
2,419,071 2,121, I 07
I I 988,608 870,838
1,065,400 1,027,028
550,854 497,469
l l 1,192,899 970,868
580,561 607,963
424,412 399,712
Li 483,063 482,053
15,711,774 14,203,243
) !
2,196,226 2,305,916 11 5,115,933 4,265,750
1,201,584 2,640,988
I ! 998,603 1,028,465
641,047 535,084
2,738,557 2,355, I 86
lt 98,987 652,206
616,470 525,897 I [ 511,175 450,762
14,118,582 14,760,254
1,593,192 (557,011) 11 555,713 546, I I 3 n 47,393 574,856
603, I 06 __ 1,120,969 lI 2,196,298 563,958
4,589,523 4,025,565 ] I $ 6,785,821 $ 4,589,523
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL (BUDGETARY BASIS)
GENERAL, CERTAIN SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Year Ended September 30, 2001
General Fund
Actual
(Budgetary
Budget
Revenues
Basis}
Property taxes $ 6,860,062 $ 6,949,269
Sales taxes 2,009,200 2,419,07 I
Franchise fees 858,306 988,608
Sanitation 66,000 69,154
Fines and forfeitures 351,500 550,854
Permits and fees 814,244 1,192,899
Intergovernmental 256,464 576,291
Interest on investments 188,500 397,539
Other 62,470 120,839
Total Revenues I 1,466,746 13,264,524
Expenditures
Current:
General government 2,660,764 2,196,226
Public safety 4,865,817 5,091,317
Public works 2,052,30 I 1,201,584
Sanitation 2,550 2,357
Community development 695,774 641,047
Community services 2,8 I 7,784 2,738,557
Capital Outlay
Debt Service:
Principal retirement
Interest and fiscal charges
Total Expenditures 13,094,990 11,871,088
Revenues Over (Under) Expenditures ( I ,628,244) 1,393,436
Other Financing Sources (Uses)
Operating transfers in 555,713 555,713
Proceeds from issuance of long-term debt 47,393
Total Other Financing Sources (Uses) 555,713 603,106
Revenues and Other Financing Sources Over
(Under) Expenditures and Other
Financing (Uses) (1,072,531) I ,996,542
Fund balances -Beginning, as restated 4,443,857 4,443,857
Fund Balances -Ending $ 3,371,326 $ 6,440,399
See Notes to Financial Statements.
30
Variance
Favorable
{Unfavorable}
$ 89,207
409,871
130,302
3,154
199,354
378,655
319,827
209,039
58,369
1,797,778
464,538
(225,500)
850,717
193
54,727
79,227
1,223,902
3,021,680
47,393
47,393
3,069,073
$3,069,073
l I Exhibit A-3
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Actual Variance Variance
(Budgetary Favorable Favorable
Budget Basis) (Unfavorable) Budget Actual (Unfavorable) 11 $ $ $ $1,043,695 $1,057,637 $ 13,942
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l l 8,544 4,270 (4,274) u 5,831 5,831 18,127 18,127
180,000 26 I ,317 81,317
188,544 271,418 82,874 1,043,695 1,075,764 32,069 ri
J l 20,214 24,616 (4,402 )
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11 I 06,000 98,987 7,013
t ( 23,017 23,144 (127)568,926 593,326 (24,400)
37,413 37,285 128 475,392 473,890 1,502
186,644 184,032 2,612 1,044,318 1,067,216 (22,898)
l l 1,900 87,386 85,486 (623)8,548 9,171
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$ 67,483 $ 152,969 $ 85,486 $ 68,004 $ 77,175 $ 9,171 ll
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CITY OF FRIBNDSWOOD, 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, 2001
Operating Revenues
Water and sewer charges
Operating Expenses
Personnel se1vices
Supplies
Repairs and maintenance
Other se1vices and charges
Depreciation
Total Operating Expenses
Operating Income (Loss)
Non Operating Income (Expenses)
Interest Income
Interest Expense
Income Before Operating Transfers
Operating Transfers (Out)
Operating transfers ( out)
Net Income (Loss)
Retained Earnings/ Fw1d Balance -Beginning of Year
Retained Earnings / Fund Balance -End of Year
See Notes to Financial Statements.
32
$
$
Proprietary Fiduciary
FundT� Fund TyEe
Non-Expendable
EnterErise Trust
6,031,245 $
839,130
184,623
283,369
1,946,471
937,304
4,190,897
1,840,348
567,199 1,343
(494,673)
72,526 1,343
1,912,874 1,343
(555,713)
(555,713)
1,357,161 1,343
6,958,458 79,749
8,315,619 $ 81,092
r l l ExhibitA-4
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(Memorandum Only)
11 2001 2000
$ 6,031,245 $ 6,845,695 I t
I l 839,130 928,522
184,623 221,632
283,369 459,870
1,946,471 1,700,351
937,304 950,796
1 l 4,190,897 4,261,171
1,840,348 2,584,524 l:
I : 568,542 367,212
(494,673) (707,358)
73,869 (340,146) l l 1,914,217 2,244,378
l!(555,713) (546,113)
l l (555,713) (546,113)
1,358,504 1,698,265 n 7,038,207 5,339,942
$ 8,396,711 $ 7,038,207
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CITY OF FRIENDSWOOD, TEXAS
COMBINED STATEMENT OFCASH FLOWS -
PROPRIETAR Y FUND TYPE AND NON-EXPENDA BL E TRUST FUND
Year Ended September 30, 2001
Cash Flows from Operating Activities
Operating Income
Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operations
Depreciation and amortization
Decrease in accounts receivable
(Increase) Decrease in due from other funds
(Increase) Decrease in prepaid and other assets
Increase in accounts payable and accrued liabilities
(Decrease) in compensated absences
(Decrease) in customer deposits
Net Cash Provided (Used) by Operating Activities
Cash Flows from Noncapital Financing Activities
Operating transfers ( out)
Net Cash (Used) by Noncapital Financing Activities
Cash Flows from Capital and Related Financing
Activities
Proceeds from issuance of long-term debt
Purchase of water rights
Capital expenditures for property, plant, and equipment
Principal payments on long-term debt
Interest payments on long-term debt
Net Cash Provided (Used) by Capital and Related Financing
Activities
Cash Flows from Investing Activities
Interest on investments
Net Cash Provided (Used) by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and cash equivalents, beginning of year
Cash and Cash Equivalents, End of Year
Unrestricted cash and cash equivalents
Restricted cash and cash equivalents
Cash and Cash Equivalents, End of Year
See Notes lo Financial Statements.
34
Proprietary
Fund Type
Enterprise
$ 1,840,348
905,174
103,821
1,507
250,372
(15,808)
(29,976)
3,055,438
(555,713)
(555,713)
6,117,175
(2,614,619)
(2,828,925)
(727,945)
(441,939)
134,783
542,362
542,362
3,176,870
9,878,831
$12,887,242
$ 4,048,399
8,838,843
$12,887,242
Fiduciary
Fund Tr,ee
Non-Expendable
Trust
$
1,343
1,343
1,343
22,549
$ 23,892
$ 23,892
$ 23,892
l;Exhibit A-5
! ! Totals
(Memorandum Only) J_ I 2001 2000
II $ 1,840,348 $ 2,585,715
1 ! 905,174 950,796
103,821 76,164 r ! 1,507 (5,793)
250,372 (15,069)
(15,808) (5,649)
(29,976) (6,333)
__ 3,055,438 3,579,831
I ! (555,713) (546,113)
__ (555,713) (546,113) J I
lI 6,117,175 8,489,200
(2,614,619) (850,000)
(2,828,925) (601,034) l:(727,945) (662,375)
(441,939) (1,166,654)
I I 134,783 5,209,137
l!543,705 366,021
543,705 366,021
3,178,213 8,608,876 n 9,901,380 1,292,504
$12,911,134 $ 9,901,380 11 $ 4,072,291 $ 828,205
8,838,843 464,299 11 $12,911,134 $ 1,292,504
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Exhibit A-6
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.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 is 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
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B.Fu11d Accotmti11g
Exhibit A-6
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.
Govemme11tal F1111d 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.
Proprieta,y Fund Type (U11bmlgeted)
E11terprise 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.
Fiducia,y 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.
37
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B.F1111d Acco1111ti11g (co11ti1111ed)
Acco1111t Groups
General Fixed Assets
Exhibit A-6
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.
Geneml 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 Acco1111ting
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 collected
after the fiscal year end which should be available to finance current operations are immaterial and remain
deferred. 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.
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CITY OF FRIENDSWOOD
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:
Exhibit A-6
I.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, the Fire/EMS Donations 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. Project length budgets are adopted for Capital Projects Funds
and amended on an annual basis to reflect the uncompleted portion of the projects.
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.
39
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIG NIFICANT ACCOUNTING POLICIES (continued)
D.Budgets (co11ti1111ed)
Exhibit A-6
Bu dget 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 appropri ations.
During the 200 I fiscal year, expenditures exceeded appropriations at the departmental level (the legal
level of compliance) in the General Fund -Public Safety by approximately $225,500. Unbudgeted
expenditures of $354,289 for tropical storm Allison caused the unfavorable variance in the General Fund
Public Safety. Expenditures in the Debt Service Fund exceeded appropriations by approxima tely $23,000
or 2%.
Budget Basis to GAAP Basis Reconciliation
The City uses a different basis of accounting for budgeting general fund activities relating to sanitation
operations. Because the City has outsourced sanitation operations to include billing of sanitation fees as
well as curbside collection activities, the City's does not budget the corresponding revenues or
expenditures.
The City adopts an annual budget for the Fire/EMS Donations Special Revenue Fund. The remaining
special revenue funds are controlled through program guidelines and regulations. A reconciliation
between general and special revenue fund budgetary basis and GAAP basis operations follows:
Budgetary Un budgeted
Basis Exhibit Funds / GAAP Basis
A-3 Activities Exhibit A-2
General Fund
Revenues $13,264,524 $ 996,246 $ 14,260,770
Expenditures 11,871,088 996,246 12,867,334
Revenue Over (Under)
Expenditures 1,393,436 1,393,436
Other Financing Sources 603,106 603, I 06
Revenues and Other Financing
Sources Over Expenditures 1,996,542 1,996,542
Beginning Fund Balance 4,443,857 4,443,857
Ending Fund Balance $ 6,440,399 $ $ 6,440,399
Special Revenue Funds
Revenues $ 271,418 $ I 03,822 $ 375,240
Expenditures 184,032 (60,429) 123,603
Expenditures 87,386 164,251 251,637
Beginning Fund Balance 65,583 11,456 77,039
Ending Fund Balance $ 152,969 $ 175,707 $ 328,676
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E.Cash amt Tempormy Investments
Exhibit A-6
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.Inte1f11nd Tmnsactions
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.
G.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 futme use of financial resources.
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, 2001, has been recorded in the
General and Enterprise Funds since the liability is to be liquidated with expendable available resources.
41
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
I.E11c11mbnmces
Exhibit A-6
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.J11ve11tories
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).
K.Fixed Assets
Ge11eml 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.
E11teq,rise 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:
Water and sewer system
Equipment
Years
40-50
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.
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
L.Total Co/11m11s 011 Combined Statements
Exhibit A-6
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.
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.
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),
and two privately-managed public funds investment pools (Lone Star and MBIA). Other investments
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:
Demand and time deposits
Temporary Investments:
U.S. Government Securities
Balances in Public Investment Pools
MBIA -Texas CLASS
TexPool
Lone Star Investment Pool
Total cash and temporary investments
Less restricted cash and temporary investments
Unrestricted cash and temporary investments
43
Carrying
Amount
$ 3,428,649
1,904,413
10,513,600
2,069,638
1,872,429
19,788,729
8,838,843
$ I 0,949,886
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -CASH AND TEMPORARY INVESTMENTS (continued)
Credit Risk Categorization for Deposits
Exhibit A-6
Cash deposits held at financial institutions can be categorized according to three levels of risk. These
three levels of risk are:
Category I -Deposits which are insured or collateralized with securities held by the City or by its
agent in the City's name.
Categor y 2-Deposits which are collateralized with secunt1es 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, 2001, all of the City's cash deposits were insured or collateralized as described under
category I above.
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:
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 secunt1es held by counter-party or by its trust
department or agent but not in the entity's name.
At September 30, 200 I, all of the City's temporary investments were insured or registered as described
under category l above.
TexPool, Lone Star, and MBIA balances 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 Texas Public Funds Investment Act of 1995. 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.
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -CASH AND TEMPORARY INVESTMENTS (continued)
Exhibit A-6
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 a requirement
to maintain the rating weekly portfolio, information must be submitted to Standard & Poors, as well as the
office of the Comptroller of Public Accounts for review.
TexPool operates in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of
1940. TexPool uses amortized cost rather than fair value to report net assets to compute share prices.
Accordingly, the fair value of the position in TexPool is the same as the value ofTexPool shares.
Under provisions of state and local statutes, the City's investment policies, and provisions of the City's
depository contracts with an area financial institution, the City is authorized to place available deposits
and investments in the following:
1.Obligations of the U.S., its agencies and instrumentalities,
2.Certificates of Deposit issued by state and national banks or savings or loan associations domiciled in
this state that are:
-guaranteed or insured by the Federal Deposit Insurance Corporation; or
-collateralized in accordance with Section 2256.010, the Texas Government Code, in face amount not
to exceed $100,000,
3.No-load money market mutual funds,
4.Texpool, Lone Star Investment Pool, MBIA, and the Local Government Investment Cooperative
(LOGIC).
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.
45
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 I of that calendar year. Appraised values are established by the Appraisal District at
market value and assessed at I 00% 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 I 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 that were
prorated between operations and debt service in the amounts of $0.5547 and $0.0838, respectively. The
resulting adjusted tax levies were approximately $6.9 and $1.0 million for operations and debt service,
respectively, based on a total adjusted taxable valuation of approximately $1.238 billion for the 2000 tax
year.
Property taxes receivable, at September 30, 200 I, consists of the following:
Tax Year General Fund Debt Service Total
2000 $ 117,559 $ 17,760 $ 135,319
1999 51,000 7,758 58,758
1998 20,911 1,920 22,831
1997 15,048 1,954 17,002
1996 9,518 2,081 11,599 Prior 45,635 17,333 62,968
$ 259,671 $ 48,806 $ 308,477
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CITY OF FRIENDSWOOD
Exhibit A-6 NOTES TO FINANCIAL STATEMENTS
NOTE 4 -LAND, BUILDINGS, AND EQUIPMENT
A summary of changes in the General Fixed Assets Account Group, for the year ended September 30, 200 l,
follows:
Land
Buildings
Improvements other
than buildings
Furniture and equipment
Construction in progress
Total
Balance
October 1,
2000
$ 3,401,991 4,917,177
18,710,363 5,678,421
1,214,125
$ 33,922,077
$
Additions
610,682
614,240
$ 1,224,922
Balance
Retirements Septembe1· 30,
and Transfers 2001
$ $ 3,401,991
4,917,177
84,244 18,794,607 (133,780) 6,155,323 (84,244} 1,744,121
$ (133,780) $ 35,013,219
A summary of changes in Enterprise Fund fixed assets for the year ended September 30, 2001, follows:
Balance Balance
October 1, Retirements September 30,
2000 Additions and Transfers 2001 Land $ 675,565 $ $ $ 675,565 Plant and equipment 18,087,999 207,858 (17,165) 18,278,692 Water and sewer lines 17,353,874 1,379,228 18,733,102 Construction in progress 257,418 2,563,054 (1,379,228} 1,441,244
36,374,856 2,770,912 (17,165) 39,128,603
Less accumulated depreciation �12,582,913} (937,3042 24,828 (13,495,389}
Total $ 23,791,943 $ 1,833,608 $ 7,663 $ 25,633,214
The Trust and Agency fund accounts for its own land and improvements in the amount of $57,200.
Construction Commitments
Commitments for construction projects in progress were $527,000 at September 30, 2001.
47
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 5 -LONG-TERM DEBT
Exhibit A-6
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 mu/ 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, 200 I follows:
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
1993 Refunding Bonds
$ 40,725 $ 33,321
$ 6,555,000 2004 2.25 -4.625 405,000 1,215,000
Less unamortized bond issuance costs (1,494)
445,725 1,246,827
Revenue Bonds
I 999 Waterworks and Sewer System Revenue Bonds
$ 4,945,000 2019 4.2 -5.55 4,620,000
2000 Waterworks and Sewer System Revenue Bonds
$ 3,5 I 5,000 2019 4.2 -6.5 3,515,000
200 I Waterworks and Sewer System Revenue Bonds
$ 6,100,000 2021 4.7 -6.5 6,100,000
Less unamortized bond issuance costs (160,113l
Combination Tax and Revenue
14,074,887
Certificates of Obli2ation
1992 Series $ 5,000,000 2008 5.30 -6.75 1,760,000 2,255,000
1995 Series $ 3,200,000 2010 5.375 -7.375 2,825,000
1,760,000 5,080,000
Total Bonds and Certificates of Obligation $ 2,205,725 $ 20,4011714
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CITY OF FRIENDSWOOD
Exhibit A-6
NOTES TO FINANCIAL STATEMENTS
NOTE 5 -LONG-TERM DEB_]' (Continuetf)
Annual debt service requirements for bonds and certificates of obligation are as follows:
General
Obligation Certificates of
Fiscal Year Bonds Obligation Revenue Bonds
2002 $ 667,141 $ 712,766 $ 875,874
2003 665,478 720,695 796,761
2004 471,799 810,265 794,936
2005 1,223,732 904,273
2006 1,223,977 904,448
2007 1,222,423 903,973
2008 872,488 893,173
2009 884,175 882,373
2010 893,381 871,573
2011 1,722,005
2012 1,704,963
2013 1,721,940
2014 1,724,585
2015 1,730,148
2016 1,742,428
2017 1,742,331
2018 1,747,045
2019 1,751,275
2020 700,930
2021 697,340
Total requirements I ,804,4 I 8 8,563,902 24,115,034
less interest portion (110,372) (1,723,902) (9,880,034)
$ 1,694,046 $_ �840,000 $ 14,235,000
Accretion 011 Premium Co111po1111d Interest Bonds
A pottion of the bonds sold in the Series 1986 refunding bond issue were premium compound interest bonds.
These obligations have par values of $74,046 and maturity values of $265,000. The interest these obligations
will be paid upon maturity in the fiscal years ending September 30, 200 I through 2004. The accreted values of
these bonds at September 30, 2001, is approximately $237,247 of which $106,762 has been allocated to the
Enterprise Fund and $ I 30,485 has been allocated to the General Long-Term Debt Account Group. Accordingly,
accretion on these bonds of approximately $73,440 and $89,760 has been recorded in the Enterprise Fund and
the General Long-Term Debt Account Group, respectively.
49
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 5 -LONG-TERM DEBT (Co11ti11ued)
Obligatio11s Under Capital Leases
Exhibit A-6
The City entered into capital lease agreements in order to purchase equipment for City Hall, public works, and
the police and fire departments. Following is a summary offuh1re lease payments due on this equipment:
Lease
Fiscal Year Obligation
2002 $ 244,284
2003 154,917
2004 91,981
2005 80,571
2006 80,572
2007 80,572
2008 80,574
2009 20,071
Total 833,542
less interest portion (120,112)
Obligations under capital leases $ 7132430
Changes in Long-Term Debt
The following are summaries of long-term debt transactions of the City for the year ended September 30,
2001.
General Long-Term Debt Account Group
Balance, Balance,
October I, September 30, 2000 Additions Retirements 2001 General obligation bonds $ 600,219 $ $ (I 54,494) $ 445,725
Certificates of obligation 1,830,000
Obligations under capital
(70,000) 1,760,000
leases 775,443 47,393 (109,406) 713,430
Accreted interest on premium
compound interest bonds 139,538 (49,778) 89,760
$ 3,345,200 $ 47,393 $ (383,6782_ _$�3,008,915
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 5-LONG-TERM DEBT (Continued)
Enterprise Fund Long-Term Debt
General obligation bonds
Revenue bonds
Certificates of obligation
Accreted interest on premium
compound interest bonds
NOTE 6 -FUND EQUITY
Contributed Capital
$
$
Balance,
October 1,
2000
1,603,691
8,388,842
5,255,000
114,167
15,361,700
$
$
Exhibit A-6
Balance,
September 30,
Additions Retirements 2001
$ (356,864) $ 1,246,827
6,041,987 (355,942) 14,074,887
(175,000) 5,080,000
(40,727) 73,440
6,041,987 $ (928,533} $ 20,475,154
A summary of changes in the Enterprise Fund contributed capital, for the year ended September 30, 2001,
follows:
Contributed Capital, beginning balance
Current year impact fees
Contributed Capital, ending balance
Implementation of New Accounting Principle
$ 12,435,358
631,036
$ 13,066,394
For the year ended September 30, 2001, the City implemented Governmental Accounting Standards Board
Statement (GASB) 33 "Accounting and Financial Reporting for Nonexchange Transactions. In
implementing this Statement, the City has recognized sales taxes, franchise taxes, and certain fines, in the
period in which the underlying transaction takes place where the City will derive the taxes in a later period.
The City has restated general fund beginning fund balance as indicated below. The effect of the change on
the general fund is as follows:
Beginning fund balance as previously stated
Prior period adjustment
Fund balance as restated
51
$ 3,687,950
755,907
$ 4,443,857
I
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 7 -INTERFUND TRANSFERS
During the year ended September 30, 200 I the following operating transfers were made:
NOTE 8-IMPACT FEES
Operating
Trnnsfer From
Enterprise Fund
Operating
Trnnsfer To
General Fund
Amounts
$ 555,713
Exhibit A-6
On April 27, 1990, the City, in conformance with the provisions of Senate Bill 336 and House Bill I 786,
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 ,vastewater 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 A venue between Sunset Drive and Greenbriar.
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. 52
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 8 -IMPACT FEES (continued)
Exhibit A-6
The following is a summary of the Impact Fees that apply on a City Wide Basis and for each of the
designated service areas. The fees represent the charge for single equivalent service units as defined in the
Capital Improvement Plan.
City Wide Impact Fees
Surface water facilities
Wastewater treatment facilities
Impact fee study and update study
Total City Wide Impact Fee
Water Distribution Impact Fees
Melody Lane service area
Bay Area Boulevard service area
South Friendswood service area
Wastewater Collection Impact Fees
Melody Lane service area
Mills, Murphy, Briarmeadow Avenue
South Friendswood Service Area
Area A
Area B-1
Area B-2
Area C
Area D
Area E-1
Area E-2
Area E-3
Area E-4
Area F
53
Fee Per Single
Equivalent
Service Unit
$ 685
69
36
790
854
294
293
450
2,532
378
378
378
285
161
784
784
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378
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, hybrid defined benefit plan in the statewide Texas Municipal Retirement System (TMRS). The
City is one of 745 municipalities having the plan administered by the by TMRS, an agent multiple employer
public employee retirement system. Each of the 745 municipalities has an annual, individual actuarial
valuation performed. All assumptions for the 12-31-00 valuations are contained in the 1998 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 ( I 00%, 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 accu mulated 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 IO or more years of service or with 20 years of service
regardless of age. A member is vested after IO 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 I, 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, 2000 valuation is effective for rates beginning in January 2002).
54
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 9 -EMPLOYEE RETIREMENT SYSTEM (continued)
Annual Pension Cost
Exhibit A-6
The City's annual pension cost of $754,983 was equal to the City's required and actual contributions.
Three-year trend information for the City's TMRS plan follows:
Fiscal Year Annual
Ending Sep. Pension Cost Percentage Net Pension
30 (APC) Contributed Obligation
1999 $ 597,548 100%
2000 701,196 100%
2001 754,983 100%
Reguil'ed Supplemental lnfol'mation
A schedule 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.
NOTE IO-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.
55
CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 12 -BLACKHAWK REGIONAL WASTE TREATMENT PLANT
Exhibit A-6
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 I, (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, 200 I are as follows:
City of Friendswood
City of Houston
Harris County MUD No. 55
Baybrook MUD No. I
52.47%
16.18%
20.27%
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, 2001 audited financial
statements of the Gulf Coast Waste Disposal Authority and are summarized below:
Venture Total assets $ 495,793 Total liabilities (495,793} Total fund equity $ Total revenues $ 1,600,510 Total expenditures ( 1,600,5102 Net increase/decrease $
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CITY OF FRIENDSWOOD
NOTES TO FINANCIAL STATEMENTS
NOTE 13 -RISK MANAGEMENT
Exhibit A-6
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
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,
2001 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, 2001 the City believed
the amounts paid on workers compensation would not change significantly from the amounts recorded.
During the year ended September 30, 2001 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 an
individual employee chooses to cover only their selves, the city pays 90% of the monthly premium. If an
individual employee desire to cover themselves and their dependents, the city pays 70% of the monthly
premium.
57
CITY OF FRIENDSWOOD, TEXAS
REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
September 30, 200I
TEXAS MUNICIPAL RETIREMENT SYSTEM (UNAUDITED)
Schedule of Funding Progress
Unfunded
Actuarial
Actuarial Actuarial Accrned
Valuation Actuarial Accrned Percentage Liability
Date Dec. 31 Value of Assets Liability Funded {UAAL_}
1995 $ 5,838,306 $ 6,559,465 89% $ 721,159
1996 6,820,691 7,531,703 91% 711,012
1997 7,798,961 8,694,662 90% 895,70 I
1998 8,967,149 11,467,709 78% 2,500,560
1999 8,967,149 11,467,709 78% 2,500,560
2000 10,377,128 13,169,487 79% 2,792,359
2001 11,512,297 14,942,827 77% 3,430,530
Schedule of Annual Pension Costs
Annual
Calendar Pension Cost Percentage
Year (APC) Contributed
1995 $ 257,192 100%
1996 284,653 100%
1997 324,151 100%
1998 358,205 100%
1999 597,548 100%
2000 701,196 100%
2001 754,983 100%
Exhibit A-7
(UAAL) as a
Annual Percentage of
Covered Covered
Payroll Payroll
$ 4,150,533 17%
4,455,830 16%
4,471,928 20%
5,148,362 49%
5,148,363 49%
5,215,264 54%
5,662,296 61%
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.
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increase
Includes inflation at
cost-of-living adjustments
58
12/31/2000
Unit credit
Level percent of payrol I
25 years -Open
Amortized cost
8.00%
None
None
None
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COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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(JflW/q l]aJ ,(11vuo11ua1u1 afivd Sfl/ J)
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GENERAL FUND
The General Fund accounts for the resources used to finance the
fundamental operations of the City. 1t is the basic fund of the City and
covers all activities for which a separate fund has not been established.
61
CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
COMPARATIVE BALANCE SHEET
September 30, 2001 mu/ 2000
Assets
Cash and temporary investments
Receivables, less allowance for uncollectibles
Taxes
Customer accounts
Other
Due from other governments
Invento1y
Prepaid and other assets
Total Assets
Liabilities and Fund Balance
Liabilities
Accounts payable
Accrued liabilities
Accrued compensated absences
Deferred revenue
Total Liabilities
Fund Balance
Reserved for encumbrances
Reserved for inventories and prepaids
Unreserved:
Designated for construction
Designated for projects
Undesignated
Total Fund Balance
Total Liabilities and Fund Balance
62
Exhibit B-1 2001 2000 $ 6,552,243 $ 4,802,848
259,671 225,874
77,746 80,144
477,378 431,544
688,974 449,502
13,480 4,266
3,304 24,677
$ 8,072,796 $ 6,018,855
$ 330,389 $ 222,737
165,386 181,147
863,035 854,775
273,587 316,339
1,632,397 1,574,998
434,509 820,966
16,784 28,943
876,656 169,267
137,018 80,550
4,975,432 3,344,131
6,440,399 4,443,857
$ 8,072,796 $ 6,018,855
1
l1 CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND Exhibit B-2
STATEMENT OF REVENUES, EXPENDITURES, AND Page 1 of 8 l!CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended September 30, 2001
with comparative actual balrmcesfor tile Year Ended September 30, 2000 11 2001 2000
Actual Variance Actual
(Budgetary Favorable (Budgetary I I Budget Basis2 {Unfavorable2 Basis2
Revenues
Property taxes $ 6,860,062 $ 6,949,269 $ 89,207 $ 6,267,686 l l Sales taxes 2,009,200 2,419,071 409,871 2,121,107
Franchise fees 858,306 988,608 130,302 870,838
Sanitation 66,000 69,154 3,154 l l Fines and forfeitures 351,500 550,854 199,354 497,469
Permits and fees 814,244 1,192,899 378,655 970,872
Intergovernmental 256,464 576,291 319,827 607,658
Interest on investments 188,500 397,539 209,039 377,012
Other 62,470 120,839 58,369 224,800
Total Revenues 11,466,746 13,264,524 1,797,778 11,937,442
11 Exl!enditures
General Government:
Mayor and Council:
Personnel services 143 126 17 143 11 Supplies 1,985 1,533 452 1,629
Other services and charges 57,810 28,957 28,853 29,747
Total Mayor and Council 59,938 __ 30,616 29,322 31,519 l l City Manager:
Personnel services 215,606 226,592 (10,986) 204,186
Supplies 4,668 5,061 (393)5,556I \ Repairs and maintenance 414 (414)1,138
Other services and charges 59,162 40,184 18,978 26,263
Total City Manager 279,436 272,251 7,185 237,143l!City Secretary:
Personnel services 191,292 190,614 678 171,940
Supplies 5,867 5,385 482 5,758
Repairs and maintenance 1,295 2,482 (I, 1 87) 865 I ! Other services and charges 45,948 23,827 22,121 23,270
Capital outlay 2,400 2,400
Total City Secretaiy 246,802 224,708 2b094 201,833 n
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
STA TEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (BUDGETARY BASIS)
Ye{tr Ended September 30, 2001
with comp{trafive (IC/11(1/ b{t/ances for the Ye{tr Ended September 30, 2000
2001
Actual
(Budgetary
Budget Basis)
Expenditures (continued)
General Government: (continued)
Administration:
Finance:
Personnel services $ 397,185 $ 399,592
Supplies 14,060 7,560
Repairs and maintenance 261
Other services and charges 37,057 27,415
Total Finance 448,563 434,567
Human Resources:
Personnel services 189,386 138,038
Supplies 10,468 7,333
Repairs and maintenance 130 125
Other services and charges 59,735 50,263
Total Human Resources 259,719 195,759
Tax:
Other services and charges 143,737 125,593
Economic Development
Personnel services 68,954 71,215
Supplies 1,570 1,223
Other services and charges 97,896 50,095
Capital outlay
Total Economic Development 168,420 122,533
Legal:
Other services and charges 122,349 83,764
Total Legal 122,349 83,764
Municipal Court:
Personnel services 163,544 168,957
Supplies 9,271 6,371
Repairs and maintenance 995 726
Other services and charges 10,388 10,182
Total Municipal Court 184,198 186,236
64
Variance
Favorable
(Unfavorable)
$ (2,407)
6,500
261
9,642
13,996
51,348
3,135
5
9,472
63,960
18,144
(2,261)
347
47,801
45,887
38,585
38,585
(5,413)
2,900
269
206
(2,038)
Exhibit B-2
P{tge 2 of 8
2000
Actual
(Budgetary
Basis)
$ 387,955
7,671
120
31,219
426,965
124,090
6,862
56,413
187,365
104,190
70,705
1,415
26,100
1,174
99,394
191,694
191,694
180,019
6,786
32
7,921
194,758
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL (BUDGETARY BASIS)
Year E11tletl September 30, 2001
with compc,r11tive actual balances for the Year Eutletl September 30, 2000
Expenditures (continued) General Government: (continued) Computer Services: Personnel services $ Supplies Repairs and maintenance Other services and charges Capital outlay Reserves and contingencies Total Computer Services Risk Management: Personnel services Supplies Other services and charges -insurance Total Risk Management Total General Government Public Safety: Police Services: Personnel services Supplies Repairs and maintenance Other services and charges Capital outlay Total Police Services Communications: Personnel services Supplies Repairs and maintenance Other services and charges Capital outlay Total Communications 2001
Actual
(Budgetary
Budget Basis2
132,307 $ 133,309
23,289 21,096
17,194 17,193
283,106 224,338
59,065 58,998
157,700
672� 454,934
509
74,432 65,265
74,941 65,265
2,660,764 2,196,226
2,602,809 2,532,400
152,982 158,452
92,558 60,880
196,984 228,830
116,606 135,535
3,161,939 3,116,097
578,304 535,112
9,109 5,070
4,097 198
5,307 22,010
10,324 9,987
607,141 572,377 65 Variance
Favorable
(Unfavorable2
$(1,002)
2,193
I
58,768
67
157,700
217,727
509
9,167
9,676
464,538
70,409
(5,470)
31,678
(31,846)
(18,929)
45,842
43,192
4,039
3,899
(16,703)
337
34,764
Exhibit B-2
Page3 of 8
2000
Actual
(Budgetary
Basis2
$ 132,068
24,675
17,669
258,865
112,804
7,336
553,417
5,352
171
72,111
77,634
2,305,912
2,411,035
99,958
79,602
141,131
66,638
2,798,364
541,192
3,651
848
6,172
-�-�_!J63
CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended Septe111ber 30, 2001
with co111JHt1'atil 1e actual balances for the Year Ended September 30, 2000
2001
Actual
(Budgetary
Budget Basisl
Expenditures (continued)
Public Safety: (continued)
Animal Control:
Personnel services $ 129,647 $ 133,669
Supplies 6,728 7,722
Repairs and maintenance 1,141 608
Other services and charges 4,450 5,187
Capital outlay 5,000 4,850
Total Animal Control 146,966 152,036
Fire and EMS:
Personnel services 427,834 406,576
Supplies 104,183 105,546
Repairs and maintenance 80,922 66,478
Other services and charges 114,472 107,017
Capital outlay 31,291 39,080
Total Fire and EMS 758,702 724,697
Emergency Management:
Personnel services 31,138 26,601
Supplies 7,576 6,463
Repairs and maintenance 2,665 438
Other services and charges 2,600 5,186
Capital outlay 147,090 133,133
Total Emergency Management 191,069 171,821
Tropical Storm Allison
Personnel services 96,563
Supplies 15,477
Other services and charges 242,249
Total Tropical Storm Allison 354,289
Total Public Safety 4,865,817 5,091,317 66 Variance
Favorable
{Unfavorable}
$ (4,022)
(994)
533
(737)
150
(5,070)
21,258
(1,363)
14,444
7,455
(7,7892 34,0_05
4,537
1,113
2,227
(2,586)
13,957
19,248
(96,563)
(15,477)
(242,249)
{354,289}
(225,500 2
Exhibit B-2
Page4 of 8
2000
Actual
(Budgetary
Basis}
$ 126,739
9,930
3,345
2,632
15,633
158,279
352,664
84,410
39,751
132,732
40,438
649,995
28,716
2,270
3,445
2,488
21,050
57,969
4,216,470
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GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended September 30, 2001
with comparative actual balances for the Year Ended September 30, 2000
2001
Actual
(Budgetary
Budget Basis2
Expenditures (continued)
Public Works:
Administration:
Personnel services $ 127,984 $ 156,405
Supplies 2,700 1,432
Repairs and maintenance 929 156
Other services and charges 2,549 3,048
Total Administration 134,162 161,041
Streets:
Personnel services 300,164 289,179
Supplies 44,594 34,416
Repairs and maintenance 137,699 70,113
Other services and charges 247,871 314,824
Capital outlay 961,122 140,600
Total Streets 1,691,450 849,132
Drainage:
Personnel services 161,002 174,045
Supplies 817 120
Repairs and maintenance 33,014 17,196
Other services and charges 31,856 50
Total Drainage 226,689 191,411
Total Public Works 2,052,301 l,201,J84
Sanitation:
Other services and charges 2,550 2,357
Total Sanitation 2,550 2,357
67
Variance
Favorable
{Unfavorable2
$ (28,421)
1,268
773
(4992
�26,8792
10,985
10,178
67,586
(66,953)
820,522
842,318
(13,043)
697
15,818
31,806
35,278
850,717
193
193
Exhibit B-2
Page 5 of 8
2000
Actual
(Budgetary
Basis2
$ 129,345
1,652
2,526
3,050
136,573
289,976
46,001
105,822
262,927
1,623,879
2,328,605
I 58,614
664
16,106
425
175,809
2,640,987
1,437
1,437
CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (BUDGETARY BASIS)
Year E11de1/ September 30, 2001
witlt compamtive actual ba/a11cesfor lite Year Ended September 30, 2000 2001 Actual
(Budgetary
Budget Basis2
Expenditures (continued)
Community Development:
Administration:
Personnel services $ 125,295 $ 119,775
Supplies 933 1,222
Other services and charges 2,746 2,808
Total Administration 128,974 123,805
Planning and Zoning:
Personnel services 98,913 96,060
Supplies 2,242 2,682
Repairs and maintenance 236
Other services and charges 38,186 3,202
Capital outlay
Total Planning and Zoning: 139,577 101,944
Engineering:
Personnel services 62,494 64,124
Supplies 2,069 3,082
Repairs and maintenance 2,361 1,848
Other services and charges 22,471 19,978
Capital outlay 2,220 2,220
Total Engineering: 91,615 91,252
Inspection:
Personnel services 271,071 284,746
Supplies 10,647 10,418
Repairs and maintenance 1,350 2,474
Other services and charges 48,697 21,341
Capital Outlay 3,843 5,067
Total Inspection 335,608 324,046
Total Community Development 695,774 641,047
68
Variance
Favorable
{Unfavorable2
$ 5,520
(289)
{622
5,169
2,853
(440)
236
34,984
37,633
(1,630)
(1,013)
513
2,493
363
(13,675)
229
(1,124)
27,356
(1,224)
11,562
54,727
Exhibit B-2
Page6 of 8 2000 Actual
(Budgetary
Basis2
$ 88,717
951
2,662
92,330
101,802
2,586
4,186
10,319
_118,893
32,342
2,789
99
3,576
38,806
242,554
8,112
1,162
33,231
285,059
535,088
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended September 30, 2001
with comJHtrative actual balances for the Year Ended September 30, 2000
2001
Actual
(Budgetary
Budget Basis2
Expenditures (continued)
Community Services:
Library:
Personnel services $ 467,608 $ 444,474
Supplies 140,102 112,939
Repairs and maintenance 3,125 1,458
Other services and charges 20,080 32,922
Capital Outlay 5,719 2,314
Reserves and contingencies 9,176
Total Library 645,810 594,107
Parks and Recreation
Personnel services 382,043 376,908
Supplies 78,350 64,929
Repairs and maintenance 87,065 82,006
Other services and charges 245,104 274,954
Capital Outlay 579,779 567,166
Total Parks and Recreation 1,372,341 1,365,963
Community Activities:
Personnel services 128,998 127,753
Supplies 2,680 3,487
Other services and charges 20,832 24,416
Total Community Activities 152,510 155,656
69
Variance
Favorable
{Unfavorable2
$ 23,134
27,163
1,667
(12,842)
3,405
9,176
5 l, 703
5,135
13,421
5,059
(29,850)
12,613
6,378
1,245
(807)
p,5842 (3,146)
Exhibit B-2
Page 7 of 8
2000
Actual
(Budgetary
Basis2
$ 417,486
103,368
1,025
28,155
55,129
605,163
334,271
53,346
75,164
259,614
128,281
850,676
122,209
2,889
16,468
141,566
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 (BUDGETARY BASIS)
Year Ended September 30, 2001
with comparative actual balances for tile Year Ended September 30, 2000 2001 2000 Actual Variance Actual
(Budgetary Favorable (Budgetary
Budget Basis2
Expenditures (continued)
{Unfavorable2 Basis2
Swimming Pool:
Personnel services $ 38,209 $ 33,760 $ 4,449 $ 28,841
Supplies 10,784 10,942 (158)11,574
Repairs and maintenance 8,758 5,017 3,741 3,652
Other services and charges 15,145 24,913 (9,768) 11,191
Capital Outlay 4,100 4,739 (639)
Total Swimming Pool 76,996 79,371 (2,3752 55,258
Building Operations:
Personnel services 29,944 30,807 (863)25,186
Supplies 14,552 16,119 (1,567) 14,860
Repairs and maintenance 107,111 77,085 30,026 151,255
Other services and charges 390,891 411,949 (21,058) 324,137
Capital Outlay 27,629 7,500 20,129 187,086
Total Building Operations 570,127 543,460 26,667 702,524
Total Community Services 2,817,784 2,738,557 79,227 2,355,187
Total Expenditures 13,094,990 11,871,088 1,223,902 12,055,081
Revenues Over (Under) Expenditures {1,628,244) 1,393,436 3,021,680 (117,639)
Other Financing Sources (Uses)
Proceeds from capital leases 47,393 47,393 74,856
Operating transfers in 555,713 555,713 546,113
Total Other Financing Sources (Uses) 555,713 603,106 47,393 620,969
Revenues and Other Financing Sources
Over (Under) Expenditures and
Other Financing (Uses) (1,072,531) 1,996,542 3,069,073 503,330
Fund balance -Beginning, as restated 4,443,857 4,443,857 3,940,527
Fund Balance -Ending $ 3,371,326 $ 6,44_0,399 $ 3,069,073 $ 4,443,857
70
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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 accounts for revenues that are restricted to police
investigation expenditures
Fire/EMS Donation Fund
This fund is used to accounts for revenues that are restricted for Fire/EMS capital
outlays and debt repayments.
Park Land Dedication Fund
This fund is used to accounts for receipts from developers to build or enhance
neighborhood pai·ks.
71
CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
September 30, 2001
with comparative totals for September 30, 2000
Assets
Cash and cash equivalents
Accounts receivable
Total Assets
Liabilities and Fund Balance
Liabilities
Accounts payable and accrued liabilities
Deferred revenues
Total Liabilities
Fund Balances
Unreserved:
Designated for police investigations
Designated for Fire/EMS
Designated for park projects
Total Fund Balances
Total Liabilities and Fund Balances 72 Police
Investigation
$ 7,705 $ 7,705 $ 7,705 7,705 $ 7,705 $
$
$
$
Fire/EMS
Donations 121,175 24,089 145,264 145,264 145,264 145,264 Park Land
Dedication
$ 116,478 $ 116,478 $ 1,200 1,200 115,278 115,278 $ 116,478 (
I l Exhibit C-1
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11 Totals
l !2001 2000 l!$ 245,358 $ 74,720
24,089 23,885 l I,$ 269,447 $ 98,605 u
11
11 $ 1,200 $
21,566
1,200 21,566 l
I i 7,705 6,052
145,264 59,531
115,278 11,456
) ( 268,247 77,039
11 $ 269,447 $ 98,605
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CITY OF FRIENDSWOOD
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
Year Ended September 30, 2001
with comparatil'e totals for the Year Ended September 30, 2000
Police
Investigation
Revenues
Permits and fees $
Earnings on investments 444
Intergovernmental 4,270
Other
Total Revenues 4,714
Expenditures
Current:
Public safety 3,061
Capital Outlay
Debt Service:
Principal
Interest
Total Expenditures 3,061
Revenues Over (Under)
Expenditures 1,653
Other Financing Sources
Proceeds from issuance of long-term debt
Total Other Financing Sources
Revenues and Other Financing Sources
Over Expenditures 1,653
Fund Balance-Beginning 6,052
Fund Balance-Ending $ 7,705
74
Fire/EMS Park Land
Donations Dedication
$ $ 100,907
5,387 2,915
261,317
266,704 I 03,822
21,555
98,987
23,144
37,285
120,542
85,733 I 03,822
85,733 I 03,822
59,531 11,456
$ 145,264 $ 115,278
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11 Exhibit C-2
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Totals 11 2001 2000
l !$ 100,907 $ 11,300 8,746 9,276 4,270 304 I ! 26 I ,317 245,954 u 375,240 266,834 11 24,616 49,283 98,987 652,206 11 23,144 37,285 I : 123,603 701,489 11 251,637 (434,655) 11 500,000 500,000 11 251,637 65,345 n 77,039 11,694 $ 328,676 $ 77,039 i I
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CITY OF FRIENDSWOOD, TEXAS
SPECIAL REVENUE FUND (FIRE/EMS DONATIONS)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Year Emled September 30, 2001
with comp(ll'ative totals for the Year Ended September 30, 2000
Budget
Revenues
Intergovernmental $ 8,544
Interest on investments
Other 180,000
Total Revenues 188,544
Expenditures
Current
Public safety 20,214
Capital Outlay 106,000
Debt Service:
Principal 23,017
Interest 37,413
Total Expenditures 186,644
Revenues Over (Under)
Expenditures 1,900
Other Financing Sources
Proceeds from issuance of long-term debt
Total Other Financing Sources
Revenues and Other
Financing Sources Over
Expenditures 1,900
Fund balances -Beginning 59,531
Fund Balances -Ending $ 61,431
76
$
$
Exhibit C-3
2001 2000
Variance
Favoral>le
Actual (Unfavoral>le} Actual
$ (8,544) $ 8,544
5,387 5,387 304
261,317 81,317 245,954
266,704 78,160 254,802
21,555 (1,341) 43,065
98,987 7,013 652,206
23,144 (127)
37,285 128
180,971 5,673 695,271
85,733 83,833 (440,469)
500,000
500,000
85,733 83,833 59,531
59,531
145,264 $ 83,833 $ 59,531
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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.
77
CITY OF FRIENDSWOOD, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEET
September 30, 2001 mu/ 2000
Assets
Cash and tempormy investments
Taxes receivable, less allowance for uncollectibles
Total Assets
Liabilities and Fund balance
Liabilities
Accounts payable and accrued liabilities
Deferred revenue
Total Liabilities
Fund Balance
Reserved for debt service
Total Fund Balance
Total Liabilities and Fund Balance
78
Exhibit D-1
2001 2000
$ 79,994 $ 68,627
48,806 43,310
$ 128,800 $ 111,937
$ 2,819
48,806 43,310
51,625 43,310
77,175 68,627
77,175 68,627
$ 128,800 $ 111,937
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11 CITY OF FRIENDSWOOD, TEXAS
DEBT SER VICE FUND Exhibit D-2
STATEMENT OF REVENUES, EXPENDITURES, AND 11 CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
Year Ended September 30, 2001
with comparatil'e actual bala11cesfor the Year Ended September 30, 2000 lI
l 1 2001
Variance
Favorable 2000 f I Budget Actual �Unfavorable2 Actual
Revenues
Prope11y taxes $ 1,043,695 $ 1,057,637 $ 13,942 $ 958,519
Interest on investments 18,127 18,127 _Ll_,423 11 Total Revenues 1,043,695 1,075,764 32,069 _ 971,942
LI Expenditures
Principal retirement 568,926 593,326 (24,400) 525,897 11 Interest retirement 475,392 473,890 1,502 450,762
Total Expenditures 1,044,318 1,067,216 (22,8982 976,659 I : Revenues Over
(Under) Expenditures (623)8,548 9,171 (4,717)
l1 Fund balances -Beginning 68,627 68,627 73,344
I ! Fund Balances -Ending $ 68,004 $ 77,175 $ 9,171 $ 68,627
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ENTERPRISE FUND
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
sewer system are accounted for in the Enterprise Fund to reflect the results of
operations similar to private enterprise.
81
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82
l l CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND Exhibit E-1
COMPARATIVE BALANCE SHEET 11 September 30, 2001 mu/ 2000 2001 2000 l l Assets
Current Assets
Cash and cash equivalents $ 4,048,399 $ 2,463,506
Receivables: 11 Customer accounts 959,330 1,031,086
Other 5,007 37,072
Inventory 5,575 5,575 11 Prepaid and other assets 585 2,092
Total Current Assets 5,018,896 3,539,331
Restricted Assets I l Investment in Blackhawk joint venture 255,531 255,531
Deposits and impact fees 8,583,312 7,159,794
8,838,843 7,415,325 u Land, buildings, and equipment, at cost 39,128,603 36,374,856
Less accumulated depreciation ( 13,495,3892 (12,582,9132
Land, Buildings, and Equipment, Net 25,633,214 23,791,943 11 Other Assets -Water rights 3,464,619 850,000
Total Assets $ 42,955,572 $ 35,596,599 11 Liabilities and Fund Eguitl'.
Current Liabilities 11 Accounts payable $ 600,958 $ 350,586
Accrued liabilities 179,217 126,483
Compensated absences 86,063 101,871
Customer deposits 232,167 262,143 11 Bonds payable, current portion 423,494 721,405
Certificates of obligation payable, current portion 185,000 175,000
Total Current Liabilities 1,706,899 1,737,488 11 Long-Term Liabilities
Bonds payable, less current portion 14,898,220 9,271,128
li Certificates of obligation payable, less current portion 4,895,000 5,080,000
Accreted interest on premium compound interest bonds 73,440 114,167
Total Long-Term Liabilities 19,866,660 14,465,295 n Total Liabilities 21,573,559 16,202,783
Fund Equity 11 Contributed capital 13,066,394 12,435,358
Retained Earnings 8,315,619 6,958,458
Total Fund Equity 21,382,013 19,393,816 11 Total Liabilities and Fund Equity $ 42,955,572 _$ �596,599
11
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CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND
SCHEDULE OF BONDS PAYABLE -
DEBT SERVICE REQUIREMENTS TO MATURITY
September 30, 2001
Fiscal Year
Ending Annual Re9uirements for All Series Series 1986
Sept. 30, Princi_ll_ll__l_ Interest Total Princifal Interest Total
2002 $ 423,494 $ 925,451 $ 1,348,945 $ 12,244 $ 28,256 $ 40,500
2003 441,247 829,725 1,270,972 11,247 29,253 40,500
2004 458,580 808,155 1,266,735 9,830 28,420 38,250
2005 140,000 764,272 904,272
2006 150,000 754,448 904,448
2007 160,000 743,973 903,973
2008 160,000 733,173 893,173
2009 160,000 722,373 882,373
2010 160,000 711,583 871,583
2011 1,050,000 672,005 1,722,005
2012 1,095,000 609,963 1,704,963
2013 1,170,000 551,940 1,721,940
2014 1,235,000 489,585 1,724,585
2015 1,305,000 425,148 1,730,148
2016 1,390,000 352,428 1,742,428
2017 1,465,000 277,331 1,742,331
2018 1,550,000 197,045 1,747,045
2019 1,640,000 111,275 1,751,275
2020 650,000 50,930 700,930
2021 680,000 17,340 697,340
Totals $ 15,483,321 $ 10,748,143 $ 26,231,464 $ 33,321 $ 85,929 $ 119,250
Fiscal Year \Vastewater Sanitary Sewer Re\'enue Bonds Series Wastewater Sanitary Sewer Revenue Bonds Series
Ending 1999 2000
Sept. 30, Pl'inci_!)_II_I_ Interest Total Principal Interest Totnl
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 465,000 126,007 591,007 350,000 108,038 458,038
2016 495,000 100,567 595,567 370,000 85,250 455,250
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
2020
2021
Totnls $ 4,620,000 $ 3,301,015 $ 7,921,015 $ 3,515,000 $ 2,733,203 $ 6,248)03
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Principal Interest Total
I I $ 386,250 $ 46,321 $ 432,571
405,000 28,7 II 433,71 I
423,750 9,799 433,549 l l
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11 $1,215,000 $ 84,831 $ 1,299,831 l!Wastewater Sanitary Sewer Revenue Bonds Series
2001 11 Principal Interest Total
$ 386,441 $ 386,441
309,153 309,153 lI 309,153 309,153
50,000 307,527 357,527
50,000 304,278 354,278
50,000 301,028 351,028 11 50,000 297,778 347,778
50,000 294,528 344,528
50,000 291,288 341,288 n 400,000 276,953 676,953
410,000 254,823 664,823
440,000 235,053 675,053
460,000 213,788 673,788 11 490,000 191,103 681,103
525,000 166,611 691,611
550,000 140,405 690,405
I ! 580,000 112,430 692,430
615,000 82,555 697,555
650,000 50,930 700,930
680,000 17,340 697,340 lI $6,100,000 $ 4,543,165 _j___l_Q_,_ 64 3, I 65
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CITY OF FRIENDSWOOD, TEXAS
ENTERPRISE FUND
SCHEDULE OF CERT/ FI CATES OF OBLIGATION -
DEBT SERVICE REQUIREMENTS TO MATURITY
September 30, 2001
Fiscal Year
Ending Annual Requirements for All Series
Sept. 30, Principal Interest Total
2002 185,000 279,797 464,797
2003 200,000 266,910 466,910
2004 210,000 253,945 463,945
2005 645,000 228,494 873,494
2006 680,000 191,064 871,064
2007 715,000 152,935 867,935
2008 760,000 112,488 872,488
2009 815,000 69,175 884,175
2010 870,000 23,381 893,381
Totals $ 5,080,000 $ 1,578,189 $ 6,658,189
Fiscal Yenr
Emling Series 1992
Sept. 30, Principal Interest Totnl
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 $ 2,255,000 $ 559,791 $ 2,814,791
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Exhibit E-3
Series 1995
Principal Interest Total
90,000 158,651 248,651
100,000 151,645 251,645
100,000 144,270 244,270
155,000 134,964 289,964
190,000 124,239 314,239
230,000 112,923 342,923
275,000 99,150 374,150
815,000 69,175 884,175
870,000 23,381 893,381
S 2,825.000 $ 1,018,398 $ 3,843,398
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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.
87
88 {)fUV/q Jfa1 l11vuOJ/Ua/UJ aiJvd SJl/1)
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SO URCE
September 30, 2001 mu/ 2000
General Fixed Assets
Land
Buildings
Improvements
Equipment
Construction in progress
Total General Fixed Assets
Investment in General Fixed Assets From
General obligation bonds
Time warrants and certificates of
obligation
Federal, state, and local grants
Municipality
Donations
Total Investment in
General Fixed Assets
89
$
$
$
$ Exhibit F-1 2001 2000 3,401,991 $ 3,337,140 4,917,177 4,726,051 18,794,607 17,933,869 6,155,323 5,309,050 1,744,121 _)23,263 35,013,219 $ 31,629,373 4,638,651 $ 4,591,258 5,594,986 4,861,440 3,571,378 3,571,378 18,549,759 15,849,762 2,658,445 __ b755,535 35,013,219 $ 31,629,373
CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS
SCHEDULE OF GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
September 30, 2001
Function and Activity
General Government
City Manager
City Secretmy
Administrative Services
Total General Government
Public Safety
Police
Fire
Emergency management
Total Public Safety
Public Works
Streets and drainage
Total Public Works
Community Development
Planning and zoning
Engineering
Inspection
Total Community Development
Community Services
Library
Parks and recreation
Community activities
Swimming pool
Buildings
Total Community Services
Construction in progress
Total General Fixed Assets
$
$
Land
10,542
18,000
28,542
375,408
375,408
93,689
1,908,737
552,700
442,915
2,998,041
3,401,991
90
Buildin� Improvements Equipment
$ $ $ 33,231
92,103
736,478
861,812
728,007 1,088,795
267,322 2,647,748
115,992
995,329 3,852,535
141,816 16,660,020 385,538
141,816 16,660,020 385,538
1,406
17,754
25,893
45,053
591,760 256,718
382,726 1,235,923 445,814
308,914 54,624
776,877 15,268
2,496,632 121,787 237,961
3,780,032 2,134,587 1,010,385
$ 4,217,177 $ 18,794,607 $ 6,155,323
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Total 11
$ 33,231 11 92,103
736,478
I l 861,812
1,827,344 u 2,933,070
115,992
11 4,876,406
I ( _____lL562,782
17,562,782 I, 1,406
17,754 J I 25,893
45,053 l.l 942,167 l 1 3,973,200
363,538
1,344,845 n 3,299,295
9,923,045
11 1,744,121
11 $ 35,01),219
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CITY OF FRIENDSWOOD, TEXAS
GENERAL FIXED ASSETS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
Year Euded September 30, 2001
Function and
Activity
General Government
City Manager
City Secreta1y
Administrative Services
Total General Government
Public Safety
Police
Fire
Emergency management
Total Public Safety
Public Works
Streets and drainage
Total Public Works
Community Develoument
Planning and zoning
Engineering
Inspection
Total Community Development
Community Services
Libra1y
Parks and recreation
Conununity activities
Swimming pool
Buildings
Total Community Services
Construction in progress
Total General Fixed Assets
General
Fixed Assets
October I,
2000
$ 28,611
92,103
677,480
798,194
1,700,137
2,776,633
85,769
4,562,539
17,485,738
17,485,738
1,406
12,687
25,893
39,986
939,853
3,873,964
363,538
1,344,845
3,299,295
9,821,495
l,214,125
$ 33,922,077 92 Exhibit F-3
General
Fixed Assets
Transfers and September 30,
Additions Retirements 2001
4,620 $ $ 33,231
92,103
58,998 736,478
63,618 861,812
150,871 (23,664) 1,827,344
252,823 (96,386) 2,933,070
30,223 115,992
433,917 (120,050) 4,876,406
77,044 17,562,782
77,044 17,562,782
1,406
5,067 17,754
25,893
5,067 45,053
2,314 942,167
105,766 (6,530) 3,973,200
363,538
1,344,845
3,299,295
108,080 (6,530) 9,923,045
614,240 (84,244) 1,744,121
$ 1,224,922 $ (133,780) $ 35,013,219
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GENERAL LONG -TERM DEBT
This account group is established to account for the principal outstanding on
general obligation bonds and other long-term liabilities.
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I ! CITY OF FRIENDSWOOD, TEXAS
COMPARATIVE SCHEDULES OF Exhibit G-1
GENERAL LONG-TERM DEBT l:September 30, 2001 am/ 2000
[ l 2001 2000
l l Amount Available and to be Provided for
the Payment of General Long-Term Debt
11 Amount available in Debt Service Fund $ 77,175 $ 68,627 Amount to be provided for retirement of general long-term 11 debt 2,931,740 3,276,573 u Total Amount Available and to be Provided $ 3,008,915 $ 3,345,200 I l
11 General Long-Term Debt Payable
� ! General obligation bonds $ 445,725 $ 600,219 Certificates of obligation 1,760,000 1,830,000 ] I Obligations under capital leases 713,430 775,443 Accretion on premium compound interest bonds 89,760 139,538 1 : Total General Long-Term Debt Payable $ 3,008,915 $ 3,345,200 j I n
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CITY OF FRIENDSWOOD, TEXAS
SCHEDULE OF GENERAL LONG-TERM DEBT
SERVICE REQUIREMENTS TO MATURITY
September 30, 2001
Due During
Fiscal Year
Ending
Sep t. 30,
2002
2003
2004
2005
2006
2007
2008
2009
Totals
Due During
Fiscal Year
Ending
Sept. 30,
2002
2003
2004
2005
2006
2007
2008
2009
Totals
Annual Requirements for All Series
Total Total Total
Princi1)!ll Interest Principal and
Due Due Interest Due
$ 508,287 $ 177,301 $ 685,588
442,685 154,271 596,956
405,527 131,596 537,123
349,916 76,975 426,891
373,640 57,170 430,810
397,577 35,908 433,485
421,732 13,330 435,062
19,791 280 20,071
$2,919,155 $ 646,831 $ 3J65,986
Obligations Under Capital Leases
Principal Interest Total
$ 209,572 $ 34,712 $ 244,284
128,939 25,978 154,917
72,263 19,718 91,981
64,916 15,655 80,571
68,640 11,932 80,572
72,577 7,995 80,572
76,732 3,842 80,574
19,791 280 20,071
$ 713,430 $ 120,112 $ 833,542
*Includes accretion on premium compound interest bonds.
96
Refunding Bonds
Series 1986
Principal Interest Due
Due Mar('h I,
Mar('h I September I Total
$ 14,965 $ 34,535 *$ 49,500
13,746 35,754 *49,500
12,014 34,736 * 46,750
$ 40,725 $ 105,025 $ 145,750
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Certificates of Obligation
Series 1992
Principal Interest Due
Due March 1,
March 1 September 1 Total
$ 155,000 $ 92,614 $ 247,614
165,000 82,969 247,969
180,000 73,875 253,875
285,000 61,320 346,320
305,000 45,238 350,238
325,000 27,913 352,913
345,000 9,488 354,488
TT,760,ooo $ 393,417 $ 2,153,417
Principal
Due
March I
$ 128,750
135,000
141,250
$403;000
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Refunding Bonds
Series 1993
Interest Due
March I,
September I
$ 15,440
9,570
3,267
$ 28,277
Exhibit G-2
Total
$ 144,190
144,570
144,517
$ 433,277
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CITY OF FRIENDSWOOD, TEXAS
GENERAL GOVERNMENT REVENUES BY SOURCE
Last Ten Fiscal Years
Function 1992
General property taxes $ 4,749,173
Sales taxes 792,876
Franchise taxes 456,566
Sanitation 733,245
Fines and forfeitures 166,355
Permits and fees 286,421
Intergovernmental revenue 28,641
Interest on investments 232,773
Other revenue 139,525
$ 7,585,575
Includes General, Special Revenue, and Debt Service Funds.
Source -Accounting records of the City.
1993
$ 4,958,863
799,252
541,841
780,604
171,154
337,539
34,006
153,558
208,466
$ 7,985,283
100
1994 1995 1996
$ 5,249,517 $ 5,553,218 $ 5,865,855
1,007,932 996,943 1,097,996
530,059 570,031 863,183
838,542 966,066 1,085,149
174,487 217,411 266,287
319,384 296,003 234,518
32,273 48,101 46,060
154,195 107,089 193,588
219,615 330,313 354,627
$ 8,526,004 $ 9,085,175 $ I 0,007 ,263
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L
f l 1997 1998 1999 2000 2001
$ 5,660,697 $ 5,957,486 $ 6,310,919 $ 7,226,205 $ 8,006,906 11 1,477,554 1,826,462 1,842,430 2,121,107 2,419,071
852,091 801,709 821,943 870,839 988,608
11 1,017,028 982,432 1,013,415 1,027,028 1,065,400
353,742 304,017 332,659 497,467 550,854
401,720 699,432 635,905 970,868 1,192,899 I l 40,055 346,879 553,352 607,963 580,561
238,009 222,586 292,886 399,712 424,412
224,097 525,228 386,084 481,724 483,063
$ I 0,264,993 $ I 1,666,231 $ 12,189,593 $ 14,205,9 I 3 $ 15,711,774 11
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CITY OF FRIENDSWOOD, TEXAS
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION
last Ten Fiscal Years
Function 1992 1993 General government $ 1,085,683 $ 1,112,882 Public safety 2,478,564 3,061,016 Public works 1,521,841 1,537,447 Sanitation 752,763 823,028 Community development 289,50 I 326,854 Community services 1,048,606 1,087,039 Capital outlay Debt service 1,30 I ,928 1,3 I 5,242
$ 7,726,123 $ 8,440,480 Includes General, Special Revenue, and Debt Service Funds. Source -Accounting records of the City. 102
1994 1995 1996
$ 1,149,344 $ 1,478,817 $ 1,481,710
2,814,658 2,846,169 3,206,222
1,621,896 1,783,738 1,792,014
953,186 946,460 954,018
386,976 413,489 463,813
1,319,689 1,426,792 1,656,146
1,434,052 1,427,360 1,579,490
$ 8,726,615 $ 9,176,365 $ 10,179,395
1 : Table 2 r I
1997 1998 1999 2000 2001 f l $ 1,615,770 $ 1,937,096 $ 2,051,684 $ 2,305,916 $ 2,196,226
I I 3,329,960 4,043,792 4,166,008 4,265,750 5,115,933 1,805,947 1,946,904 1,601,048 2,640,988 1,201,584
I \ 939,395 988,422 980,681 1,028,465 998,603 450,916 413,024 522,128 535,084 641,047 1,686,909 1,904,926 2,193,860 2,355,186 2,738,557 I l 652,206 98,987 1,202,192 909,369 698,54_§_ 976,659 1,127,645
Li $ 11,031,089 $ 12,143,533_ $ 12,213,955 $ 14,760,254 $ 14,118,582
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CITY OF FRIENDSWOOD, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
L"st Ten Fisc{t/ Ye{trs
Fiscal Year Tax
Ended Sept. 30, Year Tax Rate
1992 1991 $ 0.6950
1993 1992 0.6630
1994 1993 0.6630
1995 1994 0.6630
1996 1995 0.6156
1997 1996 0.6045
1998 1997 0.5961
1999 1998 0.6125
2000 1999 0.6385
2,001 2,000 0.6385
Source -Tax assessor/collector's records.
Percent of
Total Tax Current Tax Levy
Levy Collections Collected
$ 4,869,697 $ 4,782,350 98.2%
5,179,275 5,081,084 98.1%
5,450,155 5,384,023 98.8%
5,762,039 5,717,509 99.2%
5,610,277 5,568,094 99.2%
5,692,451 5,652,357 99.3%
5,886,162 5,844,583 99.3%
6,292,040 6,229,896 99.0%
7,239,468 7,125,877 98.4%
7,906,786 7,809,643 98.8%
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I \ Outstanding
Total Delinquent i l Delinquent Collections as Outstanding Taxes as
Tax Total Tax Percent of Delinquent Percent of
Collections Collections Current Levy # Taxes Levy I I $ 120,660 $ 4,90 3,010 100.7% $ 306,418 6.3%
91,53 I 5,172,615 99.9% 313,078 6.0% I ! 103,113 5,487,136 100.7% 276,097 5.1%
89,977 5,807,486 100.8% 230,650 4.0%
I r 54,842 5,622,936 100.2% 231,973 4.1%
53,927 5,706,284 100.2% 230,990 4.1%
89,625 5,934,208 100.8% 237,656 4.0%
50,435 6,280,331 99.8% 207,417 3.3%
129,563 7,255,440 100.2% 269,184 3.7% 11 158,585 7,968,228 100.8% 308,477 3.9%
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CITY OF FRIENDSWOOD, TEXAS
ASSESSED AND ESTIMA TED
ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal Year
Ended Tax Assessed
SeEt. 30, Year Value
1992 1991 $ 700,373,270
1993 1992 781,187,783
1994 1993 825,111,643
1995 1994 869,085,848
1996 1995 911,351,022
1997 1996 941,679,232
1998 1997 987,445,395
1999 1998 1,027,271,860
2000 1999 I, 133,824,245
2001 2000 1,238,337,688
Source - Tax assessor/collector's records.
$
Table 4
Ratio of
Estimated Assessed Value
Actual to Estimated New
Value Actual Value Construction
806,261, 160 87% $ 63,126,050
917,420,470 85% 61,604,061
976,268,953 85% 64,653,799
1,021,248,848 85% 34,680,410
1,165,107,496 78% 42,440,747
1,207,803,598 78% 41,528,406
1,265,399,421 78% 90,683,060
1,322,329,377 78% 74,555,875
1,458,851,565 78% 121,249,420
1,597,212,470 78% I 16,968,791
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CITY OF FRIENDSWOOD, TEXAS
TAX RA TE DISTRIBUTION
Last Ten Fiscal Years
Fiscal year
Ended SeE. 30,Tax Year General Fund
1992 1991 $ 0.50900
1993 1992 0.50160
1994 1993 0.50250
1995 1994 0.51400
1996 1995 0.46800
1997 1996 0.49610
1998 1997 0.52760
1999 1998 0.56100
2000 1999 0.55420
2001 2000 0.55470
Source -City's tax ordinances.
Tax rates are per $100 valuation.
Table 5
Debt Service
Fund Total Tax Rate
$ 0.18600 $ 0.69500
0.16140 0.66300
0.16050 0.66300
0.14900 0.66300
0.14760 0.61560
0.10840 0.60450
0.06850 0.59610
0.05150 0.61250
0.08430 0.63850
0.08380 0.63850
107
CITY OF FRIENDSWOOD, TEXAS
PROPERTY TAX RATES PER $100 VALUATION
DIRECT AND OVERLAPPING
Last Ten Fiscal Years
Friendswood Clear Creek
Independent Independent Clear Creek
Tax City of School School Drainage Harris
Fiscal Year Year Friendswood District District District County (A)
Tax Rates per $100 valuation 1992 1991 $ 0.6950 $ 1.6500 $ 1.2990 $ 0.1500 $ 0.58620 1993 1992 0.6630 l .72001.4256 0.1450 0.59616 1994 1993 0.6630 1.61801.4600 0.1450 0.59616 1995 1994 0.6630 1.60901.4700 0.1430 0.62199 1996 1995 0.6156 1.59001.4700 0.1410 0.64435 1997 1996 0.6045 1.59001.5150 0.1430 0.64160 1998 1997 0.5961 1.57501.5900 0.1425 0.64170 1999 1998 0.6125 1.67201.6415 0.1500 0.64 I 70 2000 1999 0.6385 1.53501.5986 0.1500 0.64802 2001 2000 0.6385 1.58501.7008 0.0155 0.64802 Source -Tax Department records of the various taxing authorities. (A)-Includes Port of Houston Authority, Harris County Flood Control, and Harris County Hospital District.108
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County I l
l l $ 0.4251 0.4650 0.4650 l l 0.4850 0.5200 0.5472 l t 0.5200 0.5200 0.5450 11 0.5450 I :
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CITY OF FRIENDSWOOD, TEXAS
PRINCIPAL TAXPAYERS
September 30, 2001
Taxeayer
I . Exxon Corporation
2 . Southwestern Bell Telephone
3 . Texas New Mexico Power
4 . Autumn Creek
5 . Friendswood Retirement Living Ltd.
6 . Blackhawk Apartments
7 . Southwest Properties
8 . Albertson's
9 . Mystic, Ltd.
IO . Coastal Bend Property Developers
All other taxpayers
Source -Tax assessor/collector's records.
Tyee of Proeerty
Oil and Gas
Utility Company
Utility Company
Developer
Retirement Home
Quail Crossing Apartments
Seahawk Properties
Albertson's Shopping Center
Nursing Home
Developer
Totals
110
Table 7
Percent
of Total
Assessed Assessed
Valuation Valuation
$ 27,842,580 2.25%
13,003,400 1.05%
10,296,420 0.83%
8,487,230 0.69%
8,369,445 0.68%
8,212,470 0.66%
7,800,000 0.63%
5,509,370 0.44%
3,933,640 0.32%
3,415,650 0.28%
96,870,205 7.82%
1,141,467,483 92.18%
$ 1,238,337,688 100.00%
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CITY OF FRIENDSWOOD, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT
TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
Interest
Fiscal and Fiscal
Year Princieat Charges
1992 $ 830,000 $ 485,242
1993 945,000 489,052
1994 960,000 433,270
1995 910,000 358,551
1996 963,272 238,920
1997 733,568 202,138
1998 709,094 200,275
1999 512,594 185,952
2000 525,897 450,762
2001 616,470 511,175
Total Debt
Service
Reguirements
$ 1,315,242
1,434,052
1,393,270
1,268,551
1,202,192
935,706
909,369
698,546
976,659
1,127,645
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Table 8
Ratio of
Total Debt Service
General Requirements
Exe enditures to Exeenditures
$ 8,440,480 15.58%
8,726,615 16.43%
9,376,365 14.86%
10,179,395 12.46%
10,091,694 11.91%
11,187,677 8.36%
12,143,533 7.49%
12,213,955 5.72%
14,760,254 6.62%
14,118,582 7.99%
CITY OF FRIENDSWOOD, TEXAS
REVENUE BOND COVERAGE Last Ten Fiscal Years Number Number
Fiscal of Water of Sewer
Year Customers Customers 1992 7,521 7, I 71 1993 7,781 7,475 1994 8,031 7,709 1995 8,210 7,878 1996 8,382 8,043 1997 8,534 8,199 1998 8,893 8,377 1999 9,123 8,679 2000 9,423 8,979 2001 10,088 9,415 Operating
Expenses
Operating Before
Revenue Depreciation $ 3,567,379 $ 2,063,694 3,808,566 2,246,969 3,896,444 2,305,953 4,394,289 2,135,227 4,995,119 2,730,719 4,744,557 2,802,914 5,815,425 2,679,707 5,482,707 2,781,480 7,211,716 3,310,375 6,599,787 3,253,593 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
Source -Accounting records of the City. 1 12 Net Operating
Revenue
Available for
Debt Service $ 1,503,685 1,561,597 1,590,491 2,259,062 2,264,400 1,941,643 3,135,718 2,701,227 3,90 I ,341 3,346,194
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Revenue Bond (A)
Debt Service Reguirements
Princieal Interest
135,000 $ 38,916 $
135,000 3 I ,022
135,000 25,710
I 40,000 15,581
45,000 I 0,244
45,000 7,503
33,000 3,032
33,000 3,032
441,600
325,000 546,621
Table 9
Total Coverage
173,916 8.65
166,022 9.41
160,710 9.90
I 55,581 14.52
55,244 40.99
52,503 36.98
36,032 86.35
36,032 74.97
441,600 8.83
871,621 3.84
I I 3
CITY OF FRIENDSWOOD, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
Fiscal Year
Ended Assessed
Sept. 30, POj!Ulation Value
1992 25,680 $ 781,187,783
1993 26,333 825, 111,643
1994 27,356 869,085,848
1995 27,700 911,351,022
1996 28,602 941,679,232
1997 28,902 987,445,395
1998 30,787 987,445,395
1999 31,192 1,027,271,860
2000 31,761 I, 133,824,245
2001 32,720 1,238,337,688
Gross
Bonded Debt
$ 6,575,778
9,061,649
8,160,895
4,776,263
3,935,477
3,606,427
3,206,927
2,798,677
2,430,219
2,205,725
Source -Tax assessor/collector and accounting records of the City.
Less Debt
Service
Funds
$ 78,244
45,501
47,28)
56,968
298,053
392,220
187,908
73,344
68,627
77,175
(I)Reflects reallocation of debt to Enterprise Funds in I 994-95 in the amount of $2.5 million.
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Net
Bonded Debt
$ 6,497,534
9,016,148
8,113,614
4,719,295
3,637,424
3,214,207
3,0 I 9,0 I 9
2,725,333
2,361,592
2,128,550
r l I Table 10
lI
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Bonded Debt Net Bonded
to Assessed Debt J I Value Per Capita
0.83% 253
l l 1.09% 342
0.93% 297
0.52% (I) 170 f t 0.39% 127
0.33% 111
Li 0.31% 98
0.27% 87
11 0.21% 74
0.17% 65
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CITY OF FRIENDSWOOD, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
September 30, 2001
Net Debt
Name of Governmental Unit Outstanding_
Friendswood Independent
School District $ 26,879,800
Clear Creek Independent
School District 290,370,381
Galveston County 60,512,062
Harris County * 918,474,212
Total Net Overlapping Debt
City of Friendswood 2,128,550
Total Direct and Overlapping Debt Table 11 Estimated
Percentage
Applicable to Debt Applicable
City to City
100.00% $ 26,879,800
6.81% 19,774,223
5.68% 3,437,085
0.15% 1,377,711
51,468,819
100.00% 2,128,550
$ 53,597,369
*Harris County includes the Harris County Flood Control District, Port of Houston Authority,
Harris County Hospital District and the Harris County Board of Education
116
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CITY OF FRIENDSWOOD, TEXAS
MISCELLANEOUS STATISTICAL DATA
September 30, 2001
Date of incorporation
Date of present charter
Form of government
Area
Miles of Streets
Streets -Paved
Streets -Unpaved
Fire Protection
Number of stations
Number of employees (Full-time equivalent)
Number of volunteers
Fire Prevention
Number of employees (Full-time equivalent)
Number of volunteers
Police Protection
Number of stations
Number of sworn officers (Full-time equivalent)
Number of patrol units
Recreation
Number of parks
Size of parks
Num ber of swimming pools
Number of tennis courts
Miles of storm sewers
117
Table 12
Page I of 2
October 15, 1960
Adopted Home Rule Charter
October 16, 1971
Council -Manager
22.70 square miles
105 miles
1.09 miles
3
9.90
103
4.00
I
40.00
14
8
189.00
I
4
84.74 miles
CITY OF FRIENDSWOOD, TEXAS
DIISCELLANEOUS STATIST/CAL DATA Table 12
September 30, 2001 Page 2 of 2
Education
Friendswood Independent School District:
Number of teachers 325
Number of students 5,261
Clear Creek Independent School District:
Number of teachers 1,585
Number of students 315043
Citv Emplovees
Department heads 6
Employees:
Full-time 156
Part-time (Full-time equivalent) 20
Total 182
Election
Number of Votes Cast:
Last City Election - Regular Election 2,497
Watw
Source Ground Water Surface Water
Average daily consumption 449,000 gallons 3,354,000 gallons
Maximum daily consumption 2,913,000 gallons 5,736,000 gallons
Water mains 155 miles
Number of connections 105088
Sewer Blackhawk
Average daily flow 3,050,000 gallons
Maximum daily flow 13,913,000 gallons
Sanitary sewer mains 155 miles
Number of connections 9,415
118