Item 4GCITY OF
SOUTH LAKE
MEMORANDUM
March 30, 2011
To: Shana Yelverton, City Manager
From: Sharen Jackson, Director of Finance
Subject: Approval of the 2010 Comprehensive Annual Financial Report
Action
Requested: Approval of September 30, 2010 Comprehensive Annual
Financial Report.
Background
Information: City Charter requires the City at the close of each fiscal year
have an independent audit performed by a Certified Public
Accountant. Weaver and Tidwell L.L.P., Certified Public
Accountants, performed the audit for fiscal year 2010.
Shawn Parker, Partner, will present the report to the audit
committee on Tuesday during the committee meeting
scheduled at 5.15 prior to the city council meeting.
Financial
Considerations:
None required
Strategic Link:
F4 Establish and maintain effective internal controls
Citizen Input/
Board Review:
None required
Legal Review:
None required
Alternatives: None required
Supporting
Documents: 2010 CAFR
Staff Recommendation: Approval of 2010 Comprehensive Annual Financial
Report
CITY OF SOUTHLAKE, TEXAS
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2010
CITY OF SOUTHLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
As Prepared By
Sharen Jackson, CPA
Director of Finance
CITY OF SOUTHLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS
Exhibit Page
I. INTRODUCTORY SECTION
Letter of Transmittal
i
Certificate of Achievement
viii
Organizational Chart
ix
List of Principal Officials
x
II. FINANCIAL SECTION
Independent Auditor's Report
1
A. MANAGEMENT'S DISCUSSION AND ANALYSIS
3
B. BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Assets
1
15
Statement of Activities
2
16
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet
3
17
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
4
19
Statement of Revenues, Expenditures, and Changes in Fund Balance
5
20
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balance to the Statement of Activities
6
22
Proprietary Fund Financial Statements
Statement of Net Assets
7
23
Statement of Revenues, Expenses, and Changes in Net Assets
8
24
Statement of Cash Flows
9
25
Fiduciary Fund Financial Statement
Statement of Fiduciary Net Assets
10
26
Notes to the Basic Financial Statements
27
CITY OF SOUTHLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS
Exhibit Page
C. REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - General Fund A-1 53
Budgetary Comparison Schedule - Crime Control District Special Revenue Fund A-2 54
Notes to Required Supplementary Information 55
Condition Rating of Street System A-3 56
D. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Major Governmental Funds
Comparative Balance Sheets - General Fund
B-1
58
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - General Fund
B-2
59
Comparative Balance Sheets - General Obligation Debt Service Fund
B-3
60
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - General Obligation Debt Service Fund
B-4
61
Budgetary Comparison Schedule - General Obligation Debt Service Fund
B-5
62
Comparative Balance Sheets - General Capital Projects Fund
B-6
63
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - General Capital Projects Fund
B-7
64
Comparative Balance Sheets - Crime Control District Special Revenue Fund
B-8
65
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Crime Control District Special Revenue Fund
B-9
66
Comparative Balance Sheets - Southlake Parks Development Corporation Capital
Projects Fund
B-10
67
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Southlake Parks Development Corporation Capital Projects Fund
B-11
68
Comparative Balance Sheets - Crime Control District Capital Projects Fund
B-12
69
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Crime Control District Capital Projects Fund
B-13
70
Comparative Balance Sheets - Tax Increment Financing District Special
Revenue Fund
B-14
71
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Tax Increment Financing District Special Revenue Fund
B-15
72
Budgetary Comparison Schedule - Tax Increment Financing District Special
Revenue Fund
B-16
73
Nonmajor Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds C-1 76
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance -
Nonmajor Governmental Funds C-2 79
Comparative Balance Sheets - Police Special Revenue Fund C-3 82
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Police Special Revenue Fund C-4 83
CITY OF SOUTHLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS
Exhibit
Page
Comparative Balance Sheets - Parks and Recreation Special Revenue Fund
C-5
84
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Parks and Recreation Special Revenue Fund
C-6
85
Comparative Balance Sheets - Parks Dedication Special Revenue Fund
C-7
86
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Parks Dedication Special Revenue Fund
C-8
87
Budgetary Comparison Schedule - Parks Dedication Special Revenue Fund
C-9
88
Comparative Balance Sheets - Southlake Parks Development Corporation
Special Revenue Fund
C-10
89
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Southlake Parks Development Corporation Special
Revenue Fund
C-11
90
Budgetary Comparison Schedule - Southlake Parks Development
Corporation Special Revenue Fund
C-12
91
Comparative Balance Sheets - Hotel Occupancy Special Revenue Fund
C-13
92
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance -
Hotel Occupancy Special Revenue Fund
C-14
93
Budgetary Comparison Schedule - Hotel Occupancy Special Revenue Fund
C-15
94
Comparative Balance Sheets - Storm Water Utility Special Revenue Fund
C-16
95
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance -
Storm Water Utility Special Revenue Fund
C-17
96
Budgetary Comparison Schedule - Storm Water Utility Special Revenue Fund
C-18
97
Comparative Balance Sheets - Court Security Special Revenue Fund
C-19
98
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Court Security Special Revenue Fund
C-20
99
Comparative Balance Sheets - Court Technology Special Revenue Fund
C-21
100
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Court Technology Special Revenue Fund
C-22
101
Comparative Balance Sheets - Library Special Revenue Fund
C-23
102
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Library Special Revenue Fund
C-24
103
Comparative Balance Sheets - Red Light Camera Special Revenue Fund
C-25
104
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Red Light Camera Special Revenue Fund
C-26
105
Budgetary Comparison Schedule - Red Light Camera Special Revenue Fund
C-27
106
Comparative Balance Sheets - Southlake Parks Development Corporation
Debt Service Fund
C-28
107
Comparative Statements of Revenues, Expenditures and Changes
in Fund Balance - Southlake Parks Development Corporation Debt
Service Fund
C-29
108
Budgetary Comparison Schedule - Southlake Parks Development Corporation
Debt Service Fund
C-30
109
Comparative Balance Sheets - Tax Increment Financing District
Capital Projects Fund
C-31
110
CITY OF SOUTHLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS
Exhibit Page
Comparative Statements of Revenues, Expenditures and Changes C-32 111
in Fund Balance - Tax Increment Financing District Capital Projects Fund
Major Enterprise Fund
Comparative Statements of Net Assets- Water and Sewer Enterprise Fund D-1 113
Comparative Statements of Revenues, Expenses, and Changes in
Net Assets - Water and Sewer Enterprise Fund D-2 114
Comparative Statements of Cash Flows - Water and Sewer Enterprise Fund D-3 115
Internal Service Fund
Comparative Statements of Net Assets- Vehicle Replacement Internal Service Fund E-1 118
Comparative Statements of Revenues, Expenses, and Changes in
Net Assets - Vehicle Replacement Internal Service Fund E-2 119
Comparative Statements of Cash Flows- Vehicle Replacement Internal Service Fund E-3 120
Agency Funds
Statement of Changes in Assets and Liabilities - Cash Escrow Agency Fund F-1 122
E. Capital Assets Used in the Operation of Governmental Funds
Comparative Schedules of Capital Assets by Source G-1 123
Schedule of Changes in Capital Assets by Function and Activity G-2 124
III. STATISTICAL SECTION
Table
Net Assets By Component
1
125
Changes in Net Assets
2
126
Fund Balances, Governmental Funds
3
128
Changes in Fund Balances, Governmental Funds
4
129
Assessed Value and Estimated Actual Value of Taxable Property
5
130
Direct and Overlapping Property Tax Rates
6
131
Principal Property Tax Payers
7
132
Ad Valorem Tax Levies and Collection
8
133
Ratio of Outstanding Debt By Type
9
134
Ratio of General Bonded Debt Outstanding
10
136
Direct and Overlapping Governmental Activities Debt
11
137
Pledged -Revenue Coverage
12
138
Demographic and Economic Statistics
13
139
Principal Employers
14
140
Full -Time Equivalent City Government Employees By Function/Program
15
141
Operating Indicators By Function/Program
16
142
Capital Asset Statistics By Function/Program
17
143
INTRODUCTORY SECTION
CITY OF
SOUTHLAKE
U9
Finance Department
March 31, 2011
Honorable Mayor John Terrell and
Members of City Council
City of Southlake
Southlake, Texas
Honorable Mayor and Councilmembers:
It is with pleasure that we submit to you the Comprehensive Annual Financial Report
(CAFR) of the City of Southlake for the fiscal year ended September 30, 2010. This
report was prepared by the Finance Department in accordance with the Southlake
Charter, Statutes and generally accepted accounting principles for governments. In
addition to meeting legal requirements, this report reflects the City's commitment to full
financial disclosure. We encourage you to thoroughly read this report and take the
opportunity to discuss some of the important items it addresses.
The financial statements are presented in accordance with Governmental Accounting
Standards Board Statement 34, Basic Financial Statements -and Management's
Discussion and Analysis For State and Local Governments. The presentation of the
City's financial information includes two financial statements that provide a government -
wide perspective using the accrual basis of accounting. The two government -wide
statements present governmental activities separately from business -type activities. The
inclusion of the government -wide statements in this format enables a more thorough
understanding of the financial operations and condition of the City.
The fund financial statements focus on individual major funds. Each major fund is
presented in a separate column in the fund financial statements. Nonmaj or funds are
aggregated and presented in a combined column. Budget to actual comparisons are
presented as required supplementary information and are limited to the general fund and
major special revenue funds. The comparisons are now more informative, including both
the original adopted budget and the final amended budget.
1400 Main Street, Suite 440, Southlake, TX 76092 (817) 748-8345
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
We believe the reporting model will assist in making economic, social and political
decisions and in assessing accountability to the residents by:
• comparing actual financial results with the legal adopted budget, where
appropriate;
• assessing financial condition and results of operations;
• assisting in determining compliance with fiscally -oriented laws, rules and
regulations; and
• assisting in evaluating the efficiency and effectiveness of City operations.
Responsibility for both the accuracy of the presented 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 data, as presented, is accurate in all material respects and is
reported in a manner designed to present fairly the financial position and results of
operations. All disclosures necessary to enable the reader to gain an understanding of the
City's financial activities have been included.
FINANCIAL STATEMENT FORMAT
This report has been prepared and organized to meet the requirements of the Government
Finance Officers Association (GFOA) Certificate of Achievement for Excellence in
Financial Reporting Program. By following the guidelines of this program, the report's
format facilitates understanding by the residents and provides information needed by the
most sophisticated and interested financial observers. The report is presented in three
sections: introductory, financial and statistical.
The introductory section, which is unaudited, includes this transmittal letter,
GFOA certificate, the City's organizational chart, and a list of principal officials.
This section is designed to provide an overview and general understanding of the
report.
The financial section provides a detailed presentation of the financial position and
results of operations for the fiscal year ended September 30, 2010. The financial
section is divided into four main subsections:
o Management's Discussion and Analysis
o Basic Financial Statements and related notes
o Required Supplementary Information
o Combining and Individual Fund Financial Statements
Readers are encouraged to pay particular attention to Management's Discussion
and Analysis and to the footnotes to the basic financial statements. These provide
valuable analysis and explanation of the financial statements.
• The statistical section, which is unaudited, includes a number of multi -year tables
and other data designed to present social, economic and financial trends of the
City, providing an overall view of the fiscal capacity of the City.
The financial reporting entity includes all the funds of the primary government, as well as
all of its component units in accordance with GASB Codification of Governmental
Accounting and Financial Reporting Standards, Section 2100, `Defining the Reporting
Entity. " Component units are legally separate entities for which the primary government
is financially accountable and for which the nature and significance of their relationship
with the primary government are such that exclusion would cause the City's basic
financial statements to be misleading or incomplete. The primary government is
considered financially accountable if it appoints a voting majority of an organization's
governing body and imposes its will on that organization. The primary government may
also be financially accountable if an organization is fiscally dependent on the primary
government regardless of the authority of the organization's governing board. Blended
component units, although legally separate entities, are, in substance, part of the primary
government's operations and are included as part of the primary government.
Accordingly, the Southlake Parks Development Corporation ("SPDC"), Southlake Crime
Control and Prevention District (the "District") and Tax Increment Reinvestment Zone
("TIF") are included in the governmental funds (special revenue) of the primary
government as blended component units. SPDC was formed in January 1994 pursuant to
a successful election in November 1993 to adopt an additional '/2 cent sales tax for park
and recreation facility development. SPDC is organized exclusively to act on behalf of
the City for the financing, development and operation of parks and recreation facilities.
Also included in this report is financial information for the District. In November 1997,
voters approved an additional '/2 cent sales tax for Crime Control and Prevention
initiatives. The District is organized exclusively to act on behalf of the City for the
financing, development and crime control throughout the City. Also, included are the
financial statements of the TIF which was created in 1997 to encourage quality
commercial growth. The TIF was formed to finance and make public improvements,
under the authority of the Tax Increment Financing Act.
PROFILE OF THE GOVERNMENT
General Information
Although Southlake has been a high -growth community for years, when the first settlers
arrived in 1845 they found only a vast area of land and trees where the grand prairie and
cross timbers merged. As the site of the first permanent settlement in Tarrant County, a
portion of present day Southlake was homesteaded in 1866, which consisted of 360 acres.
Keeping with the time, the primary industry was agriculture. Farmers grew peanuts,
grains and cotton, and families raised their own livestock.
The area that would become Southlake remained a rural farming community for more
than 100 years until the U.S. Army Corps of Engineers built Lake Grapevine in 1952.
The lake spurred much of the area's early growth and was the beginning of dramatic
change. The town officially incorporated on September 25, 1956 by a public vote of 30
in favor and 24 against. The original town contained 1.62 square miles and had a
population of just over 100. The residents chose to call this new town Southlake because
it was... south of Lake Grapevine! The Southlake Fire Department was launched in 1965
and the first piece of fire equipment was a 1950 Diamond T-Military unit with a tank
capacity of 1,000 gallons and an auxiliary pump. The first chief of police was hired in
1966, and the City purchased its first patrol car in 1967.
City of Southlake Population The opening of the
Dallas -Fort Worth
International
60000 Airport in 1974
50000 served as the next
40000 catalyst of growth
in the area and
30000 Southlake residents
20000 adopted a home -
rule charter in
10000 April 1987, which
0 created the current
2000 Zoos Zoos 2007 2008 2009 2010 council-manager
Year form Of
government with
six Council
Members and a Mayor who are elected at large on a non -partisan basis for staggered
three-year terms. But the single most important event in bringing residential subdivision
development to Southlake was the completion of water and sewer lines in the southern
portion of the city in the early 1990s.
Since that time, much like the area's first settlers were attracted to the area with its
endless possibilities, Southlake has continued to attract the suburban settler desiring a
high quality of life and the small town charm that has been preserved from Southlake's
past.
Services Provided
Services provided by the City under general governmental functions include public
events, public safety, planning and development, engineering, street maintenance, parks
operation and maintenance, recreation, library services, and general administrative
services. The City does not provide educational or welfare services.
Water and sewer services and solid waste collection are provided under an Enterprise
Fund concept, with user charges set by the City Council to ensure adequate coverage of
operating expenses and payments of outstanding debt.
iv
Economic Condition and Outlook
The City of Southlake continues to be one of the major growth areas in Texas. The City is
in a prime location in Northeast Tarrant County, 5 minutes west of Dallas/Fort Worth
International Airport, and 10 minutes east of the Alliance Airport, a commercial aviation
and industrial complex in north Fort Worth. State Highway 114, FM1709, and FM1938,
the regional road arterials, serve the City.
200
180
160
140
120
100
80
60
40
20
0
Single Family Residential Home Permits
FY06 FY07 FY08 FY09 FY10
Number of Water Customers
9400
9300
9200
9100
9000
8900
8800
8700
8600
8500
8400
8300
FY06 FY07 FY08 FY09 FY10
thoroughfares, and has implemented regulatory controls
quality growth into the future.
20,000,000
15,000,000
10,000,000
5,000,000
Sales Tax Revenue
2006 2007 2008 2009 20,10
■General ❑SPDC ❑Crime
There were 52 single family
residential permits issued in
Fiscal Year 2010 with an
average new home construction
value, excluding land value, of
more than $610,000.
Residential home construction
has slowed as evidenced by the
chart.
Water customers increased
from 9,252 in Fiscal Year 2009
to 9,346 in 2010, while
wastewater customers increased
from 7,121 to 7,229 during the
same year. The chart shows the
five-year trend of increasing
water customers, the result of
the building permit activity.
The City has developed master
plans for land use, water,
sewer, parks, trails, and
that will maintain the anticipated
The City of Southlake
experienced minimum change in
sales tax collections during the
fiscal year as indicated on the
chart.
v
Future Development
During 2010, approximately 14 new construction commercial permits were issued by the
city representing over 340,000 square feet of future retail/office. Residential also
experienced an increase in activity; several subdivisions were approved for development
with an estimated average home value over $700,000.
Financial Management Principles
The City has strong financial management principles that provide the framework for the
City's financial sustainability.
• Tax rate management. The tax rate is allocated properly between
maintenance/operations and debt service.
• Structural balance. The City's ability to weather potential economic downturns or
other financial challenges is critical. The City does not use reserves to balance
the operating budget.
• Reserve management. The City's fund balance policy requires a minimum 15%
and optimum 25% balance. The City uses "excess" reserves as a means to fund
one-time, "pay-as-you-go" projects.
• Multi -year financial plan. The long-term effect of today's decisions on
tomorrow's financial situation is an important consideration during the budget
process.
• Quality service delivery. The City is committed to meeting the needs of our
community through high quality service delivery.
• Risk management. The City supports ongoing initiatives to safeguard the public
trust by internal audits and other initiatives to maintain a strong control
environment.
For fiscal year 2010, the property tax rate was held steady at $0.462 per $100 net taxable
valuation. In spite of the economic downturn the City did not use reserves to balance the
operating budget for fiscal years 2010 or 2011.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the financial status of the City by independent
Certified Public Accountants selected by the City Council. This requirement has been met
and the auditor's report has been included in this report.
vi
Awards
The Certificate of Achievement is a prestigious national award recognizing conformance
with the highest standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report, whose
contents conform to prograin standards. Such CAFR must satisfy both generally accepted
accounting principles and applicable legal requirements. A Certificate of Achievement is
valid for a period of one year only. The City of Southlake received a Certificate of
Achievement for the year ended September 30, 2009, and believes our current report
conforms to the Certificate of Achievement program requirements, and we are submitting it
to GFOA.
Acknowledgments _
The preparation of this report could not be accomplished without the dedication and
efficiency of the entire staff and our independent auditor. I would like to express my
sincere appreciation to all employees who contributed to its preparation. I would also
like to thank the Mayor and members of the City Council for their support in planning
and conducting the financial operations of the City in a responsible and efficient manner.
Respectfully submitted,
Sharen Jackson, CPA
Director of Finance
vii
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Southlake
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2009
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.
�I
President
Executive Director
VIII
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of
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V)
LIST OF PRINCIPAL OFFICIALS
John Terrell Mayor
Laura Hill Mayor Protem
Brandon Bledsoe Deputy Mayor Protem
Carolyn Morris
Council Member
Al Zito
Council Member
Jeff Wang
Council Member
Pamela Muller
Council Member
Shana K. Yelverton City Manager
Jim Blagg Assistant City Manager
Ben Thatcher Assistant City Manager
Alicia Richardson City Secretary
Jim Blagg
Director of Public Safety
Sharen Jackson
Director of Finance
Greg Last
Director of Economic Development
Robert Price
Director of Public Works
Chris Tribble
Director of Community Services
Stacey Black
Director of Human Resources
Ken Baker
Director of Planning/Development
x
FINANCIAL SECTION
weaver
INDEPENDENT AUDITOR'S REPORT
To Members of the City Council
and City Manager
City of Southlake, Texas
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund information of the City
of Southlake, Texas (the City) as of and for the year ended September 30, 2010, which
collectively comprise the City's basic financial statements, as listed in the table of contents. These
financial statements are the responsibility of the City's management. Our responsibility is to
express opinions on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the basic financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
basic financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the basic financial statements referred to above present fairly, in all material
respects, the financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of Southlake, Texas at
September 30, 2010, and the respective changes in financial position and cash flows, where
applicable, thereof, for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
The accompanying management's discussion and analysis (pages 3 through 14), budgetary
comparison information (pages 53 through 55) and condition rating of the street system (page 56),
are not a required part of the basic financial statements but are supplementary information
required by the Governmental 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 required supplementary information. However, we did not
audit the information and express no opinion on it.
In accordance with Government Auditing Standards, we have issued a report dated March 29,
2011, on our consideration of the City's internal control over financial reporting and our tests of
compliance with certain provisions of laws, regulations, contracts and grants. The purpose of that
report is to describe the scope of testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. The report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our
audit.
AN INDEPENDENT WEAVER AND TIDWELL LLP DALLAS
MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 12221 MERIT DRIVE, SUITE 1400, DALLAS, TX 75251
INTERNATIONAL WWW.WEAVERLLP.COM 1 P:(972) 490 1970 F:(972) 702 8321
City of Southlake, Texas
Page 2
Our audit was made for the purpose of forming an opinion on the basic financial statements taken
as a whole. The introductory section, combining and individual major and non -major fund
financial statements and schedules, schedules of capital assets used in the operation of
governmental funds, and statistical section listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements of the
City. The combining and individual major and non -major fund financial statements and schedules
and the schedules of capital assets used in the operation of governmental funds have been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in
our opinion, are fairly stated, in all material respects in relation to the basic financial statements
taken as a whole. The introductory section and statistical section have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we
express no opinion on such data.
"6v_� aaw T:41-0- Z��
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 29, 2011
2
MANAGEMENT'S DISCUSSION
AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Southlake's Management's Discussion and Analysis (MD&A) is designed to
provide an objective and easy to read analysis of the City's financial activities based on
currently known facts, decisions, and conditions. It is intended to provide a broad
overview and short-term analysis of the City's activities based on information presented
in the financial statements. Specifically, this information is designed to assist the reader
in focusing on significant financial issues, provide an overview of the City's financial
activity, identify changes in the City's financial position (its ability to address the next
and subsequent years' challenges), identify material deviations from the approved budget,
and identify individual fund issues.
The City presents its financial statements in accordance with the reporting model required
by Governmental Accounting Standards Board Statement 34, Basic Financial
Statements -and Management's Discussion and Analysis- for State and Local
Governments.. This reporting model significantly changes not only the presentation of
financial data, but also the manner in which the information is recorded.
The information contained within this MD&A is only a component of the entire financial
statement report. Readers should take time to read and evaluate all sections of the report,
including the footnotes and the other Required Supplementary Information that is
provided in addition to this MD&A.
FINANCIAL HIGHLIGHTS
The assets of the City of Southlake exceeded its liabilities at September 30, 2010 by
$429,109,525 (net assets). Of this amount, $77,270,225 (unrestricted net assets) may be
used to meet the government's ongoing obligations to citizens and creditors.
The City's total net assets increased by $23,358,476. This increase can be attributed to
increases in ad valorem, sales tax revenue, fines and forfeitures, contributions, and
charges for services.
At September 30, 2010, the City's governmental funds reported combined ending fund
balances of $93,874,101. Approximately 19.2 percent of this amount, $17,982,350, is
available for spending at the government's discretion (unreserved fund balance).
At the end of the current fiscal year, unreserved fund balance for the General Fund was
$17,982,361 or 61.2 percent of total General Fund expenditures.
At the end of the current fiscal year, the City of Southlake had outstanding debt totaling
$180,119,457, a net increase of $6,151,312 from the previous year.
3
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The new reporting focus is on the City as a whole and on individual
major funds. It is intended to present a more comprehensive view of the City's financial
activities.
The basic financial statements are comprised of three components: 1) government -wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic
financial statements themselves.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The government -wide financial statements include the Statement of Net Assets and the
Statement of Activities. These statements are designed to provide readers with a broad
overview of the City's finances in a manner similar to a private -sector business. Both are
prepared using the economic resources measurement focus and the accrual basis of
accounting; meaning that all the current year's revenues and expenses are included
regardless of when cash is received or paid.
The Statement of Net Assets presents information on all of the City's assets and
liabilities, including capital assets and long-term obligations. The difference between the
two is reported as net assets. Over time, the increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or
deteriorating. Other indicators of the City's financial position should be taken into
consideration, such as the change in the City's property tax base and condition of the
City's infrastructure (i.e., roads, drainage systems, water and sewer lines, etc.), in order to
more accurately assess the overall financial condition of the City.
The Statement of Activities presents information showing how the City's net assets
changed during the most recent fiscal year. It focuses on both the gross and net costs of
the government's various activities and thus summarizes the cost of providing specific
government services. This statement includes all current year revenues and expenses.
The Statement of Net Assets and the Statement of Activities divide the City's activities
into two types:
Governmental activities- Most of the City's basic services are reported here, including
general administration, debt services, public safety, public works, parks and community
services, public library, public events and facilities, planning and development and
finance. Property, sales and franchise taxes provide the majority of the financing for
these activities.
M
Business -Type activities- Activities for which the City charges a fee to customers to pay
most or all of the costs of a service it provides are reported here. The City's business -
type activities include water distribution and wastewater collection and solid waste
collection and disposal.
The government -wide financial statements are found on pages 15-16 of this report.
FUND FINANCIAL STATEMENTS
The City of Southlake, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance -related legal requirements. A fund is a
grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. These statements focus on the most
significant funds and may be used to find more detailed information about the City's
most significant activities. All of the funds of the City can be divided into two
categories: governmental funds and proprietary funds.
Governmental Funds- These funds are used to account for the majority of the City's
activities, which are essentially the same functions reported as governmental activities in
the government -wide statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near -term inflows and
outflows of spendable resources, as well as spendable resources available at the end of
the fiscal year for future spending. Such information may be useful in evaluating a
government's near -term financing requirements.
The focus of the governmental funds financial statements is narrower than that of the
government -wide financial statements. Therefore, it is useful to compare the information
presented for governmental funds with similar information presented for governmental
activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near -term financing decisions.
Both the governmental funds Balance Sheet and the governmental funds Statement of
Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to
facilitate this comparison. The reconciliation explains the differences between the
government's activities as reported in the government -wide financial statements and the
information presented in the governmental funds financial statements.
The City maintains twenty-one individual governmental funds. Information is presented
separately in the governmental funds Balance Sheet and in the governmental funds
Statement of Revenues, Expenditures and Changes in Fund Balances for the General
Fund, General Obligation Debt Service Fund, General Capital Projects Fund, Crime
Control District Special Revenue Fund, Southlake Parks Development Corporation
Capital Projects Fund, Crime Control District Capital Projects Fund and Tax Increment
Financing District Special Revenue Fund, all of which are considered to be major funds.
Data for the other governmental funds are combined into a single, aggregated
presentation.
E
Individual fund data for each of the non -major governmental funds is provided in the
form of combining statements elsewhere in this report.
The basic governmental funds financial statements can be found on pages 17-22 of this
report.
Proprietary Funds- When the City charges customers for services it provides, the
activities are generally reported in proprietary funds. The City of Southlake maintains
two different types of proprietary funds: enterprise and internal service funds.
Enterprise funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City uses enterprise funds to
account for its water and sewer operations and solid waste. These services are primarily
provided to outside or non -governmental customers.
Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City's various functions. The City uses internal service funds to
account for its vehicle fleet.
Proprietary funds financial statements provide the same type of information as the
government -wide financial statements, only in more detail. The proprietary funds
financial statements provide separate information for the water and sewer operations,
which is considered to be a major fund of the City.
NOTES TO THE FINANCIAL STATEMENTS
The Notes provide additional information that is essential to a full understanding of the
data provided in the government -wide and fund financial statements. The Notes to the
Financial Statements can be found on pages 27-52 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Total assets of the City at September 30, 2010 were $618,046,396 while total liabilities
were $188,936,871, resulting in a net asset balance of $429,109,525.
The largest portion of the City's net assets, $343,024,679 reflects its investment in capital
assets (land and improvements, building, infrastructure, machinery and equipment net of
accumulated depreciation); less any related debt used to acquire those assets that are still
outstanding. The City uses these assets to provide services to its citizens; consequently,
these assets are not available for future spending. Although the City reports its capital
assets net of related debt, the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
I
Governmental Activities net assets increased by $21,200,207. This increase is primarily
attributable to increases in both property taxes and charges for services.
Business -type Activities net assets increased by $2,158,269. The majority of this change
can be attributed to an increase in charges for service which resulted from increased
consumption during the dry summer months.
The following analysis highlights the net assets as of September 30, 2010:
Governmental Business -Type 2010
Activities Activities Total
Current and other assets:
$103,664,305
$ 36,746,389
$140,410,694
Capital assets
375,432,194
102,203,508
477,635,702
Total assets
$479,096,499
$138,949,897
$618,046,396
Other liabilities
$ 6,237,555
$ 2,579,859
$ 8,817,414
Long-term debt
outstanding
127,620,318
52,499,139
180,119,457
Total liabilities
$133,857,873
S 55,078,998
$188936,871
Net assets:
Invested in capital
assets
$277,985,305
$ 65,039,374
$343,024,679
Restricted -debt service
8,814,621
8,814,621
Unrestricted
58,438,700
18,831,525
77,270,225
Total net assets
$345,238,626
S 83,870,899
$429,109,525
The following analysis highlights the net assets as of September 30, 2009:
Governmental Business -Type 2009
Activities Activities Total
Current and other assets:
$101,581,082
$ 37,677,246
$139,258,328
Capital assets
351,580,650
97,623,701
449,204,351
Total assets
$453,161,732
$135,300,947
$588,462,679
Other liabilities
$ 6,304,141
$ 2,439,344
$ 8,743,485
Long-term debt
outstanding
122,819,172
51,148,973
173,968,145
Total liabilities
$129,123,313
S 53,588,317
$182,711,630
Net assets:
Invested in capital
assets
$246,238,808
$ 60,541,445
$306,780,253
Restricted -debt service
7,850,231
7,850,231
Unrestricted
69,949,380
21,171,185
91,120,565
Total net assets
$324,038,419
S 81,712,630
$405,751,049
7
The following analysis highlights the changes in net assets for the year ended
September 30, 2010:
Governmental Business -Type 2010
Activities Activities Total
Revenues:
Program revenues
Charges for services
$ 6,811,321
$18,897,356
$25,708,677
Operating grants and
contributions
688,803
688,803
Capital grants and
contributions
5,994,206
2,578,400
8,572,606
General revenues:
Taxes
52,515,389
52,515,389
Interest on
investments
414,852
155,173
570,025
Gain on sale of
capital assets
21,465
21,465
Miscellaneous
428,804
71,871
500,675
Total revenues
66,874,840
21,702,800
88,577,640
Expenses:
General government
11,814,836
11,814,836
Public safety
14,885,499
14,885,499
Public works
5,767,688
5,767,688
Culture and recreation
7,287,434
7,287,434
Interest on long-term debt
6,515,269
6,515,269
Water and sewer
18,948,438
18,948,438
Total expenses
46,270,726
18,948,438
65,219,164
Increase in net assets
before transfers
20,604,114
2,754,362
23,358,476
Transfers
596,093
(596,093)
Increase in net assets
21,200,207
2,158,269
23,358,476
Net assets -beginning
of year, as restated
324,038,419
81,712,630
405,751,049
Net Assets -End of Year
S429,109,525
The following analysis highlights the changes in net assets for the year ended
September 30, 2009:
Governmental Business -Type 2009
Activities Activities Total
Revenues:
Program revenues
Charges for services
$ 6,021,524
$19,321,095
$25,342,619
Operating grants and
contributions
239,364
239,364
Capital grants and
contributions
1,833,160
2,212,867
4,046,027
General revenues:
Taxes
50,983,544
50,983,544
Interest on
investments
1,703,418
953,739
2,657,157
Gain on sale of
capital assets
167,127
167,127
Miscellaneous
341,957
2,187
344,144
Transfers
339,510
(339,510)
Total revenues
61,629,604
22,150,378
83,779,982
Expenses:
General government
11,068,965
11,068,965
Public safety
12,920,263
12,920,263
Public works
5,840,432
5,840,432
Culture and recreation
6,439,100
6,439,100
Interest on long-term debt
5,854,931
5,854,931
Water and sewer
18,066,346
18,066,346
Total expenses
42,123,691
18,066,346
60,190,037
Increase in net assets
19,505,913
4,084,032
23,589,945
Net assets -beginning
of year, as restated
304,532,506
77,628,598
382,161,104
Net Assets -End of Year
S405,751,049
0
FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS
Governmental Funds- The focus of the City of Southlake's governmental funds is to
provide information on near -term inflows, outflows and balances of spendable resources.
Such information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined
fund balances of $93,874,101. Approximately 19.2 percent or $17,982,350, constitutes
unreserved fund balance, which is available for spending at the government's discretion.
The remainder of the fund balance is reserved to indicate that it is not available for new
spending because it has already been committed to pay for debt service ($10,768,763),
recycling ($68,092), police expenditures ($5,026,409), parks ($8,136,946), capital
projects ($45,433,316), inventories ($27,091), prepaid expenditures ($3,835),
reinvestment zone expenditures ($5,465,595), municipal court expenditures ($767,464),
stormwater expenditures ($150,000), and oil and gas expenditures ($44,240).
The General Fund is the chief operating fund of the City. At the end of the current fiscal
year, unreserved fund balance of the general fund was $17,982,361. As a measure of the
General Fund's liquidity, it may be useful to compare both the unreserved fund balance
and total fund balance to total fund expenditures. Unreserved fund balance represents
61.2 percent of total General Fund expenditures, while total fund balance represents 61.8
percent of total General Fund expenditures. The fund balance of the General fund
increased $2,791,481 during the current fiscal year. Following are the key factors in this
increase:
Increase in taxes and charges for service revenue by $1,531,845 and $789,797,
respectively.
The General Obligation Debt Service Fund has a fund balance of $9,266,326, all of
which is reserved for the payment of debt service. The fund balance increased during the
year by $608,226, primarily due to a $4,454,197 transfer from the Tax Increment
Financing District and Crime Control District Special Revenue Funds. The fund balance
in the General Capital Projects Funds ended the year at $33,104,678, a slight decrease of
$5,328.
FINANCIAL ANALYSIS OF THE PROPRIETARY FUNDS
The City's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
10
Unrestricted net assets reported in the Proprietary Funds were: $18,831,525 in the Water
and Sewer Fund and $2,295,950 in the Vehicle Replacement Fund. Total net assets in the
Water and Sewer Fund increased by $2,158,269 while Vehicle Replacement Fund net
assets decreased by $232,642. The increase in capital contributions and decrease in
interest income from the previous year are the primary reasons for the change in net
assets.
GENERAL FUND BUDGETARY HIGHLIGHTS
There was an increase in appropriations from the original budget to the final amended
budget of $114,734, which can be briefly summarized as follows:
• Increase in general operational costs (utilities, supplies, etc.)
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets- The City's investment in capital assets for its governmental and business -
type activities as of September 30, 2010 amount to $477,635,702 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, improvements,
machinery and equipment, infrastructure and construction in progress.
The City has elected to use the modified approach for its street system in lieu of the
depreciation method. An up-to-date inventory of these infrastructure assets was
performed and the annual costs to maintain and preserve these assets was established and
disclosed through administrative policy. The current condition level of the street system
meets the target condition level established by the City. There were no significant
changes in the condition levels of infrastructure assets, and the differences between the
estimated amounts necessary to maintain and preserve the street system at target
condition levels and the actual amount of expense incurred for that purpose for 2010 was
not material. Major capital projects completed during the current year included the
following:
• DPS Headquarter Facility
• Quail Creek Sewer
• Royal and Annie Smith Park
• Liberty Park at Sheltonwood
• Pavement Management System — various overlays and rehab
• Various Sidewalks
11
Governmental Business -Type 2010
Activities Activities Total
Land and improvements
$ 85,987,988
Buildings and improvements
56,026,555
Improvements
Infrastructure
207,014,670
Machinery and equipment
8,261,012
Construction in Progress
18,141,972
Total
8375,432,194
$ 14,471,242
452,898
78,685,371
1,027,947
7,596,050
8102,203,508
$100,459,230
56,479,453
78,685,371
207,014,670
9,288,959
25.738.022
8477,635,702
Governmental Business -Type 2009
Activities Activities Total
Land and improvements
$ 80,711,920
$ 13,868,508
$ 94,580,428
Buildings and improvements
28,052,746
480,813
28,533,559
Improvements
75,051,134
75,130,659
Infrastructure
200,667,400
200,667,400
Machinery and equipment
7,906,228
1,327,632
9,233,860
Construction in Progress
34,242,356
6,895,614
41,137,970
Total
S21413,701
S449,204,351
Additional information on the City's capital assets can be found in Note 4 on pages 41-42
of this report.
Long-term Debt- At the end of the current fiscal year, the City of Southlake had
$126,741,347 total long-term debt outstanding of bonds issued to finance capital
improvements for roadway, parks and recreation, public building and infrastructure.
$52,164,653 of Utility System bonds, which financed projects to increase capacity of the
Utility system, was also outstanding. An additional $941,243 was reported for
compensated absences at year-end.
12
Bonds payable
Unearned revenue
Compensated absences
Total
Business -
Governmental Type 2010
Activities Activities Total
$126,741,347
878,971
S 127,620,318
$52,164,653
272,214
62,272
52.499.139
$178,906,000
272,214
941,243
180119.457
Governmental Business -Type 2009
Activities Activities Total
Bonds payable
$121,841,842
$50,805,953
$172,647,795
Accreted interest payable
126,510
126,510
Unearned revenue
278,437
278,437
Compensated absences
850,820
64,583
915,403
Total
x122,819,172
51148973
173.968.145
The City's bonds are rated "AAA" by Standard and Poor's and "Aa" by Moody's
Investors Service and "AA" by FitchRatings. The City is permitted by Article XI,
Section 5, of the State of Texas Constitution to levy taxes up to $2.50 per $100 of
assessed valuation for general governmental services including the payment of principal
and interest on general obligation long-term debt. The current ratio of tax -supported debt
to the assessed value of all taxable property is 1.50 percent.
Additional information on the City's long-term debt can be found in Note 5 on pages 42-
47 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The State of Texas, by constitution, does not have a personal income tax and therefore
the State operates primarily using sales and gasoline taxes. Local governments primarily
rely on property taxes and fees to fund their government activities.
While property taxes are important to the City, they represent 53.1% of total
governmental revenue. Sales tax continues to grow as the second largest governmental
resource representing 28.9% of total governmental revenue. The City monitors all of its
resources and determines the need for program adjustment or fee increases accordingly.
The FY 2011 Adopted Budget maintains the City's property tax rate at $0.462 per $100
net taxable valuation, which is unchanged from the FY 2010 rate. The City's property
tax roll on net taxable value increased $3,259,042 or 5.9 percent from the 2009 certified
roll to the 2010 certified roll. As a result, the City is projected to collect more in FY
2011 than in FY 2010, even without a tax rate increase. The estimate of the FY 2011 tax
roll is based on the certified roll as provided by the Tarrant Appraisal District (TAD) in
July. The assumed collection rate is 98 percent.
13
Requests for Information
This financial report is designed to provide a general overview of the City of Southlake's
finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Office of the Finance Director, 1400
Main Street, 41h Floor Finance Department, Southlake, Texas 76092.
14
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE
FINANCIAL STATEMENTS
CITY OF SOUTHLAKE, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2010
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowance for uncollectibles)
Prepaid items
Inventories
Restricted assets
Cash and cash equivalents
Investments
Receivables
Capital assets:
Non -depreciable
Depreciable (net of depreciation)
Deferred charges
TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued liabilities
Accrued interest payable
Unearned revenue
Liabilities payable from restricted assets
Accrued interest
Customer meter deposits
Non -current liabilities:
Due within one year
Due in more than one year
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets (net of related debt)
Restricted for debt service
Unrestricted
TOTAL NET ASSETS
The Notes to Financial Statements are
an integral part of this statement.
EXHIBIT 1
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
$ 52,413,340 $
111,972
$ 52,525,312
36,147,262
7,660,332
43,807,594
4,350,224
4,736,330
9,086,554
3,835
628
4,463
27,091
-
27,091
5,907,921
9,973,794
15,881,715
3,377,376
13, 540, 969
16, 918, 345
85,595
-
85,595
275,341,697
22,067,292
297,408,989
100,090,497
80,136,216
180,226,713
1,351,661
722,364
2,074,025
$ 479,096,499 $
138,949,897
$ 618,046,396
$ 3,636,186 $
1,979,301
$ 5,615,487
1,574, 024
97,788
1,671, 812
-
316,163
316,163
490,715
-
490,715
536,630 - 536,630
- 186,607 186,607
9,542,336 3,602,273 13,144,609
118,077,982 48,896,866 166,974,848
133,857,873 55,078,998 188,936,871
277,985,305 65,039,374 343,024,679
8,814,621 - 8,814,621
58,438,700 18,831,525 77,270,225
$ 345,238,626 $ 83,870,899 $ 429,109,525
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FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
FINANCIAL STATEMENTS
CITY OF SOUTHLAKE, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2010
GENERAL
OBLIGATION
GENERAL
CRIME
DEBT
CAPITAL
CONTROL
GENERAL
SERVICE
PROJECTS
DISTRICT
ASSETS
Cash and cash equivalents
$ 1,765,084
$ 5,907,921
$ 23,169,646
$ -
Investments
17,152,878
3,377,376
11,135,551
3,850,138
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes
208,163
85,178
-
-
Franchise taxes
372,817
-
-
-
Sales taxes
1,599,832
-
-
727,359
Interest
104,866
417
43,102
62,098
Other
88,390
-
-
-
Inventories
27,091
-
-
-
Prepaid items
3,835
-
-
-
TOTAL ASSETS
$ 21,322,956
$ 9,370,892
$ 34,348,299
$ 4,639,595
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
$ 799,776
$ -
$ 1,243,621
$ 7,737
Accrued liabilities
1,529,156
19,641
-
-
Deferred revenue
847,458
84,925
-
-
TOTAL LIABILITIES
3,176,390
104,566
1,243,621
7,737
FUND BALANCES
Reserved for :
Debt service
-
9,266,326
-
-
Recycling
68,092
-
-
-
Police expenditures
65,187
-
-
4,631,858
Parks
-
-
-
-
Capital projects
-
-
33,104,678
-
Inventories
27,091
-
-
-
Prepaid expenditures
3,835
-
-
-
Oil and gas expenditures
-
-
-
-
Reinvestment zone expenditures
-
-
-
-
Municipal court expenditures
-
-
-
-
Storm water expenditures
-
-
-
-
Unreserved, undesignated reported in:
General fund
12,605,246
-
-
-
Special revenue fund
-
-
-
-
Unreserved, designated reported in:
General fund
5,377,115
-
-
-
TOTAL FUND BALANCES
18,146,566
9,266,326
33,104,678
4,631,858
TOTAL LIABILITIES AND FUND BALANCES
$ 21,322,956
$ 9,370,892
$ 34,348,299
$ 4,639,595
The Notes to Financial Statements are
an integral part of this statement.
17
EXHIBIT 3
SOUTHLAKE
PARKS
CRIME
DEVELOPMENT
CONTROL
TAX
CORPORATION
DISTRICT
INCREMENT
NON -MAJOR
TOTAL
CAPITAL
CAPITAL
FINANCING
GOVERNMENTAL
GOVERNMENTAL
PROJECTS
PROJECTS
DISTRICT
FUNDS
FUNDS
$ 9,134,544
$ -
$ 5,462,257
$ 12,187,023
$ 57,626,475
26,667
1,588,131
3,338
789,789
37,923,868
-
-
-
-
293,341
-
-
-
-
372,817
-
-
-
821,111
3,148, 302
4,045
-
-
28,806
243,334
-
-
-
289,241
377,631
-
-
-
-
27,091
-
-
-
-
3,835
$ 9,165,256
$ 1,588,131
$ 5,465,595
$ 14,115,970
$ 100,016,694
$ 1,031,450
$ 135,245 $ - $
418,357 $
3,636,186
-
- -
25,227
1,574,024
-
- -
-
932,383
1,031,450
135,245 -
443,584
6,142,593
-
- -
1,502,437
10,768,763
-
- -
-
68,092
-
- -
329,364
5,026,409
-
- -
8,136, 946
8,136, 946
8,133,806
1,452,886 -
2,741,946
45,433,316
-
- -
-
27,091
-
- -
-
3,835
-
- -
44,240
44,240
-
- 5,465,595
-
5,465,595
-
- -
767,464
767,464
-
- -
150,000
150,000
-
- -
-
12,605,246
-
- -
(11)
(11)
-
- -
-
5,377,115
8,133,806
1,452,886 5,465,595
13,672,386
93,874,101
$ 9,165,256
$ 1,588,131 $ 5,465,595 $
14,115,970 $
100,016,694
18
CITY OF SOUTHLAKE, TEXAS EXHIBIT 4
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
AS OF SEPTEM BER 30, 2010
Total fund balances - governmental funds $ 93,874,101
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not current financial resources
and therefore are not reported in the governmental funds balance sheet.
(Less $1,394,582 in assets allocated to governmental activities from the internal
service fund). 374,037,612
Costs associated with the issuance of governmental long-term debt are expensed
when incurred in the fund statements and capitalized and amortized over the
life of the debt in the government -wide financial statements.
1,351,661
Interest payable on long-term debt does not require current financial resources;
therefore, interest payable is not reported as a liability in the governmental
funds balance sheet.
(536,630)
Internal service funds are used by management to charge the cost of certain
activities, such as fleet management, to individual funds. This
amount represents the assets less the liabilities of the internal service
fund allocated to governmental activities.
3,690,532
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements.
441,668
Long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported in the fund financial statements.
(127,620,318)
Net assets of governmental activities $ 345,238,626
The Notes to Financial Statements are
an integral part of this statement.
19
CITY OF SOUTHLAKE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
GENERAL
OBLIGATION
GENERAL
CRIME
DEBT
CAPITAL
CONTROL
GENERAL
SERVICE
PROJECTS
DISTRICT
REVENUES
Ad valorem taxes, penalties and interest
$ 17,623,973
$ 6,898,145
$
$
Franchise taxes
2,606,248
-
Municipal sales and mixed beverage taxes
8,165,335
4,295,145
Licenses, permits and fees
1,453,823
-
Charges for services
1,535,363
Fines and forfeitures
1,032,817
Grants
409,498
Capital recovery fees
-
-
295,987
-
Interest earned
19,771
48,963
167,224
181
Contributions
-
-
23,039
-
Miscellaneous
442,465
TOTAL REVENUES
33,289,293
6,947,108
486,250
4,295,326
EXPENDITURES
Current
General government
City secretary/mayor
340,590
City manager's office
577,187
Human resources
380,935
Support services
2,533,233
Economic development
230,209
Finance
1,081,859
Municipal court
656,109
Teen court
132,520
Information technology
1,786,064
Public safety
-
Police services
5,430,771
278,322
Fire services
5,062,613
-
Public safety support
1,607,951
Building inspection
793,608
-
Public works
Public works administration
1,094,454
221,633
Streets and drainage
1,439,925
642,568
Planning
1,003,344
-
Cultural and recreation
Community services
528,592
Parks and recreation
4,051,304
Library services
651,906
Intergovernmental
-
-
Capital outlay
-
5,901,815
Debt service:
Principal retirement
6,250,738
-
Interest and fiscal charges
4,751,377
54,387
TOTAL EXPENDITURES
29,383,174
11,002,115
6,820,403
278,322
Excess (deficiency) of revenues
over (under) expenditures
3,906,119
(4,055,007)
(6,334,153)
4,017,004
OTHER FINANCING SOURCES (USES)
Issuance of long-term debt
-
19,325,790
4,355,000
-
Payment to refund bond escrow agent
(20,120,845)
-
Premium on issuance of long-term debt
-
1,004,091
73,825
-
Transfers from other funds
920,362
4,454,197
1,900,000
743,607
Transfers to other funds
(2,035,000)
(1,436,687)
TOTAL OTHER FINANCING SOURCES (USES)
(1,114,638)
4,663,233
6,328,825
(693,080)
NET CHANGE IN FUND BALANCES
2,791,481
608,226
(5,328)
3,323,924
FUND BALANCES, BEGINNING OF YEAR
15,355,085
8,658,100
33,110,006
1,307,934
FUND BALANCES, END OF YEAR
$ 18,146,566
$ 9,266,326
$ 33,104,678
$ 4,631,858
The Notes to Financial Statements are
an integral part of this statement.
20
EXHIBIT 5
SOUTHLAKE
PARKS
CRIME
DEVELOPMENT
CONTROL
TAX
CORPORATION
DISTRICT
INCREMENT
NON -MAJOR
TOTAL
CAPITAL
CAPITAL
FINANCING
GOVERNMENTAL
GOVERNMENTAL
PROJECTS
PROJECTS
DISTRICT
FUNDS
FUNDS
$
$
$ 7,773,841
$
$ 32,295,959
-
2,606,248
5,150,301
17,610, 781
1,400,253
2,854,076
-
1,535,363
1,083,588
2,116,405
-
409,498
-
-
295,987
60,462
45,660
14,974
72,088
429,323
-
-
-
1,440
24,479
70,090
164,044
676,599
130,552
45,660
7,788,815
7,871,714
60,854,718
-
-
-
-
340,590
577,187
380,935
16,305 2,549,538
- 230,209
1,081,859
656,109
- 132,520
38,105 1,824,169
812,552 6,521,645
- 5,062,613
1,607,951
793,608
1,316,087
2,082,493
1,003,344
-
528,592
799,397
4,850,701
-
10,153
662,059
-
-
3,158,243
-
3,158,243
8,643,650
6,484,635
-
605,917
21,636,017
-
-
1,310,000
7,560,738
37,365
30,817
1,113,300
5,987,246
8,681,015
6,515,452
3,158,243
4,705,729
70,544,453
(8,550,463)
(6,469,792)
4,630,572
3,165,985
(9,689,735)
3,245,000
2,855,000
-
-
29,780,790
-
-
(20,120,845)
54,839
188,615
-
1,321,370
2,776,000
-
2,716,749
13,510,915
(3,023,109)
(6,655,026)
(13,149,822)
6,075,839
3,043,615
(3,023,109)
(3,938,277)
11,342,408
(2,474,624)
(3,426,177)
1,607,463
(772,292)
1,652,673
10,608,430
4,879,063
3,858,132
14,444,678
92,221,428
$ 8,133,806
$ 1,452,8 6
-$ 5,465, 995 $
13,672,386 $
93,874, 001
21
CITY OF SOUTHLAKE, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
EXHIBIT 6
Net change in fund balances - total governmental funds
$ 1,652,673
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense. This is
the amount of capital assets recorded in the current period.
(Does not include $215,974 allocated from internal service fund).
22,617,740
Depreciation expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation
expense is not reported as expenditures in the governmental funds.
(Does not include $442,118 allocated from internal service fund).
(4,497,161)
The issuance of long-term debt (e.g. bonds) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas the amounts are deferred and amortized in the
statement of activities. This amount is the net effect of the following items:
o Bond proceeds (29,780,790)
o Payment to refunded bond escrow 20,120,845
o Bond premiums (1,321,370)
o Deferred loss on refunding 127,827
o Debt issuance costs 404,629
o Repayments 7,560,738
o Net decrease in accreted interest 126,510
o Amortization of deferred charges (274,403)
o Amortization of premiums 88,971
o Amortization of deferred loss
on refunding (1,625,727)
(4,572,770)
Current year changes in the long-term liability for compensated absences do not require
the use of current financial resources; and therefore, are not reported as expenditures
in governmental funds.
(28,151)
Current year changes in accrued interest payable do not require the use of current
financial resources; and therefore, are not reported as expenditures
in governmental funds.
350,286
Internal service funds are used by management to charge the costs of certain
activities, such as fleet management, to individual funds. The net loss
of the internal service fund is allocated entirely to governmental activities.
(232,642)
Governmental funds do not recognize assets contributed by developers. However,
in the statement of activities the fair market value of those assets are
recognized as revenue, then allocated over their estimated useful lives and
reported as depreciation expense.
5,994,206
Loss on disposal of capital assets results in a decrease in net assets, but the
net effect is not reported in governmental funds.
(37,094)
Certain revenues in the government -wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds.
(46,880)
Change in Net Assets of Governmental activities
$ 21,200,207
The Notes to Financial Statements are
an integral part of this statement.
22
PROPRIETARY FUND
FINANCIAL STATEMENTS
CITY OF SOUTHLAKE, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2010
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowance for uncollectibles:
Trade accounts
Unbilled trade accounts
Interest
Special assessments
Prepaid expenses
Restricted assets
Cash restricted for capital
Investments restricted for customer meter deposits
Investments restricted for capital
Total current assets
NON -CURRENT ASSETS
Capital assets
Land and improvements
Buildings and improvements
Distribution system
Equipment
Vehicles
Capacity rights
Construction in progress
Total capital assets
Less: accumulated depreciation
Capital assets, net of accumulated depreciation
Deferred charges
Bond issuance costs, net of amortization
Total deferred charges
Total non -current assets
TOTAL ASSETS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued liabilities
Accrued interest
Current portion of general obligation debt
Current portion of contract obligation debt
Current portion of revenue bonds
Current portion of compensated absences
Current portion of deferred loss on refunding
Current portion of deferred revenue
Current portion of bond premiums
Payable from restricted assets:
Customer meter deposits
Total current liabilities
NON -CURRENT LIABILITIES
Deferred revenue
Contract revenue obligations
General obligation debt
Bond premiums
Revenue bonds
Deferred loss on refunding
Total non -current liabilities
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
TOTAL NET ASSETS
The Notes to Financial Statements are
an integral part of this statement.
EXHIBIT 7
BUSINESS -TYPE
GOVERNMENTAL
ACTIVITIES
ACTIVITIES
WATER AND SEWER
VEHICLE REPLACEMENT
ENTERPRISE
INTERNAL SERVICE
FUND
FUND
$ 111,972
$ 694,786
7,660,332
1,600,770
3,305,763
-
1,355,905
-
71, 634
394
3,028
-
628
9,973,794
186,607
13, 354, 362
36, 024, 025
2,295,950
14, 471, 242
-
887,424
107,886,940
1,664,392
-
329,881
3,212,914
9,190, 988
-
7,596,050
142,026,917
3,212,914
(39, 823, 409)
(1,818,332)
102, 203, 508
1,394,582
722,364
722,364
102, 925, 872
1,394,582
$ 138,949,8 77
$ 3,69 5532
$ 1,979,301
$ -
97, 788
316,163
2,948,620
605,900
120,000
62,272
(181,488)
5,000
41,969
186,607
6,182,132
267,214
2,060,000
44, 717, 606
597,077
2,210,000
(955,031)
48, 896, 866
55, 078, 998
65, 039, 374
1,394,582
18, 831, 525
2,295,950
$ 83,870,899
$ 3, 990,532
23
CITY OF SOUTHLAKE, TEXAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
OPERATING REVENUES
Charges for sales and services:
Water, sewer and garbage
Service charges
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personnel services
Contractual services
Lease payments
Supplies
Utilities
Administrative
Maintenance
Professional benefits
Depreciation and amortization
Total operating expenses
OPERATING INCOME (LOSS)
BUSINESS -TYPE
ACTIVITIES
WATER AND SEWER
ENTERPRISE
FUND
$ 18,815,054
82,302
71,938
18,969,294
EXHIBIT 8
GOVERNMENTAL
ACTIVITIES
VEHICLE REPLACEMENT
INTERNAL SERVICE
FUND
2,146,885 -
1,108,852 -
4,169 21,000
90,579 -
6,520,881 -
38,157 -
1,624,546 26,492
23,314 -
4,603,321 442,118
16,160,704 489,610
2,808,590 (489,610)
NON -OPERATING REVENUES (EXPENSES)
Gain (loss) on sale of capital assets (2,000)
Interest income 155,106
Interest expense (2,785,734)
21,465
503
Total non -operating revenues (expenses) (2,632,628) 21,968
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 175,962 (467,642)
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions - property owners 2,205,613
Contributions - impact fees 372,787
Transfers from other funds -
Transfers to other funds (596,093)
235,000
Total capital contributions and transfers 1,982,307 235,000
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
The Notes to Financial Statements are
an integral part of this statement.
2,158,269 (232,642)
81,712,630 3,923,174
$ 83,870,899 $ 3,690,532
24
CITY OF SOUTHLAKE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
Cash payments to suppliers
Cash payments to employees
Net cash provided by (used in) operating activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Capital expenditures
Principal payments on bonds
Bond issue costs
Proceeds from issuance of bonds
Premium on the issuance of bonds
Payment to refund bond escrow agent
Interest paid
Proceeds from sale of capital assets
Contributions - impact fees
BUSINESS -TYPE
ACTIVITIES
WATER AND SEWER
ENTERPRISE
FUND
EXHIBIT 9
GOVERNMENTAL
ACTIVITIES
VEHICLE REPLACEMENT
INTERNAL SERVICE
FUND
$ 17,769,896 $
(9,263,137) (47,492)
(2,149,196)
6,357,563 (47,492)
(6,484,270) (215,974)
(4,202,100)
(160, 066)
12,694,210
474,555
(7,758,141)
(2,832,035) -
- 21,465
372,787 -
Net cash (used in) capital and related financing activities (7,895,060) (194,509)
CASH FLOWS FROM NON -CAPITAL
FINANCING ACTIVITIES
Transfers (to) from other funds (596,093) 235,000
Cash paid to other funds (2,782,649) (614,490)
Net cash (used in) non -capital financing activities (3,378,742) (379,490)
CASH FLOWS FROM INVESTING ACTIVITIES
Net sales of investments
Interest received
Net cash provided by investing activities
NET CHANGE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
RECONCILIATION TO STATEMENT OF NET ASSETS
Cash and cash equivalents
Cash restricted for capital
Total cash and cash equivalents
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
Decrease (increase) in assets
Receivables
Prepaids
Increase in liabilities
Payables and accruals
Customer deposits
Net cash provided by (used in) operating activities
NON -CASH FINANCING ACTIVITIES:
Contributions of capital assets from developers
The Notes to Financial Statements are
an integral part of this statement.
25
14,826,436 1,306,059
175,569 10,218
15,002,005 1,316,277
10, 085, 766 694,786
$ 10,085,766 $ 694,786
$ 111,972 $ 694,786
9,973, 794 -
$ 10,085,766 $ 694,786
$ 2,808,590 $ (489,610)
4,603,321 442,118
(1,232,002)
(628)
139,388
38,894
$ 6,357,563 $ (47,492)
$ 2,205,613 $
FIDUCIARY FUND
FINANCIAL STATEMENTS
CITY OF SOUTHLAKE, TEXAS EXHIBIT 10
CASH ESCROW AGENCY FUND
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2010
ASSETS
Cash and cash equivalents
Investments
Accrued interest receivable
TOTAL ASSETS
I1e1 314Ill 11*11
Due to builders
TOTAL LIABILITIES
The Notes to Financial Statements are
an integral part of this statement.
Agency Fund
Cash
Escrow
19,038
48,907
262
68,207
$ 68,207
68,207
NOTES TO FINANCIAL STATEMENTS
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of Southlake (the City) operates under a Home Rule Council — Manager form of
government. All powers of the City are vested in an elected council, which enables local
legislation, adopts budgets, determines policies and appoints the City Manager. The City
Manager is responsible for executing the laws and administering the government of the City.
The accounting and reporting policies of the City relating to the funds included in the
accompanying basic financial statements conform to accounting principles generally accepted in
the United States of America applicable to state and local governments. Generally accepted
accounting principles for local governments include those principles prescribed by the
Governmental Accounting Standards Board (GASB), the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units and by the
Financial Accounting Standards Board (when applicable). As allowed in Section P80 of GASB's
Codification of Governmental Accounting and Financial Reporting Standards, the City has elected
not to apply Financial Accounting Standards Board Statements and Interpretations, Accounting
Principles Board Opinions, and Accounting Research Bulletins of the Committee of Accounting
Procedure issued after November 30, 1989. The more significant accounting policies of the City
are described below.
Financial Reporting Entity
The City is governed by an elected mayor and a six -member council and has the authority to
make decisions, appoint administrators and managers, and significantly influence operations. It
also has the primary accountability for fiscal matters. Therefore, the City is a financial reporting
entity as defined by the Governmental Accounting Standards Board ("GASB") in its Statement
No. 14, "The Financial Reporting Entity", as amended by GASB 39 "Determining Whether Certain
Organizations Are Component Units".
Under GASB 14 component units are organizations for which the City is financially accountable
and all other organizations for which the nature and significance of their relationship with the City
are such that exclusion would cause the reporting entity's financial statements to be misleading or
incomplete. Financial accountability exists if the City appoints a voting majority of an
organization's governing board and is either able to impose its will on that organization or there is
a potential for the organization to provide specific financial benefits to, or impose specific financial
burdens on, the City. The City may be financially accountable for governmental organizations
with a separately elected governing board, a governing board appointed by another government,
or a jointly appointed board that is fiscally dependent on the City. The financial statements of the
component units may be discretely presented in a separate column from the primary government
or blended with the financial statements of the primary government. GASB 39 added clarification
to GASB 14 by including entities which meet all three of the following requirements:
1. The economic resources received or held by the separate organization are entirely for the
direct benefit of the primary government, its component units, or its constituents.
2. The primary government, or its component units, is entitled to, or has the ability to
otherwise access, a majority of the economic resources received or held by the separate
organization.
27
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Financial Reporting Entity —Continued
3. The economic resources received or held by an individual organization that the specific
primary government, or its component units, is entitled to, or has the ability to otherwise
access, are significant to that primary government.
Based on these criteria the financial information of the following entities has been blended within
the reporting entity. Individual financial statements are not available for these component units.
Southlake Parks Development Corporation (the Corporation) - The Corporation is a nonprofit
industrial development corporation formed in January 1994 under the Development
Corporation Act of 1979. The Corporation is organized exclusively to act on behalf of the City
for the financing, development and operation of parks and recreation facilities. The affairs of
the Corporation are managed by a seven member board of directors, of which four are
members of the City Council. The annual corporate budget and issuance of debt must be
approved by the City Council. The Corporation is reported as if it were part of the primary
government as the City Council has sufficient representation on the Board to allow complete
control over the Corporation's activities.
Southlake Tax Increment Financing District (the TIF) - The TIF was formed to finance and
make public improvements, under the authority of the Tax Increment Financing Act. The TIF
is governed by a twelve member board of directors consisting of the seven City Council
members, and one member each appointed by Carroll Independent School District, Tarrant
County, Tarrant County Junior College District, and the Tarrant County Hospital District
Board of Directors. The TIF is reported as if it were a part of the primary government as the
City Council has sufficient representation on the board to allow for complete control over the
TIF's activities.
Southlake Crime Control and Prevention District (the District) — The District was formed under
Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention Act.
The District is organized exclusively to act on behalf of the City for the financing,
development and crime control throughout the City. The District is governed by a seven
member board appointed by the City Council. The annual budget and issuance of debt must
be approved by the City Council. The District is reported as a part of the primary government
as the City Council acts as the governing body for the District.
Basis of Presentation
The government -wide financial statements (the statement of net assets and the statement of
activities) report information on all of the activities of the City, except for fiduciary funds. The
effect of interfund activity, within the governmental and business -type activities columns, has
been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business -type activities,
which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
program are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific program.
28
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation — Continued
Program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given program and 2) operating or
capital grants and contributions that are restricted to meeting the operational or capital
requirements of a particular program. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Fund Financial Statements:
The City segregates transactions related to certain functions or activities in separate funds in
order to aid financial management and to demonstrate legal compliance. Separate
statements are presented for governmental funds and proprietary funds. These statements
present each major fund as a separate column in the fund financial statements; all non -major
funds are aggregated and presented in a single column.
Governmental funds are those funds through which most governmental functions typically are
financed. The measurement focus of governmental funds is on the sources, uses and
balances of current financial resources.
Governmental Funds
The City reports the following major governmental funds:
General Fund -
The General Fund is the general operating fund of the City. It is used to account for all financial
resources not accounted for in other funds. All general tax revenues and other receipts that are
not restricted by law or contractual agreement to some other fund are accounted for in this fund.
General operating expenditures, fixed charges and capital improvement costs that are not paid
through other funds are paid from the General Fund.
General Obligation Debt Service Fund -
The General Obligation Debt Service Fund is used to account for the accumulation of financial
resources for the payment of principal, interest and related costs on general long-term debt paid
primarily from taxes levied by the City. The fund balance of the General Obligation Debt Service
Fund is reserved to signify the amounts that are restricted exclusively for debt service
expenditures.
General Capital Projects Fund -
The General Capital Projects Fund is used to account for resources used for the acquisition
and/or construction of capital facilities by the City, except those financed by proprietary funds and
not accounted for by another capital projects fund.
Crime Control District -
The Crime Control District Special Revenue Fund was established to account for the operations
of the Crime Control District, which was established for the financing and development of crime
control within the City. The Crime Control Fund is funded primarily through the receipt of
municipal sales taxes.
29
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation — Continued
Southlake Parks Development Corporation Capital Projects Fund -
The Southlake Parks Development Corporation Capital Projects Fund is utilized to fund the
acquisition and construction of park recreational facilities as approved by the SPDC board of
directors. The fund has been financed through the issuance of general obligation debt.
Crime Control District Capital Projects Fund -
The Crime Control District Capital Projects Fund is utilized to account for the acquisition and
construction of capital assets as approved by the District's board of directors. The fund has been
funded primarily through the issuance of general obligation debt.
Tax Increment Financing District -
The Tax Increment Financing District Fund ("TIF") was established to account for the general
operations of the TIF, which was formed to finance and make public improvements. The TIF is
funded primarily through the assessment of ad valorem taxes.
In addition, the City reports the following non -major governmental funds:
Special Revenue Funds — The City's Special Revenue Funds are used to account for revenue
sources that are legally restricted to expenditures for specified purposes, as follows:
Police Fund -
The Police Fund was established to account for the resources required to be utilized by the police
department.
Parks and Recreation Fund -
The Parks and Recreation Fund was established to account for resources restricted for use by
the parks and recreation department.
Parks Dedication Fund -
The Parks Dedication Fund was established to account for resources restricted for use by the
parks department. The primary source of revenue for the Parks Dedication Fund is user charges
for the use of City parks.
Southlake Parks Development Corporation -
The Southlake Parks Development Corporation Fund ("SPDC") was established to account for
the general operations of the non-profit corporation established to finance, develop and operate
park and recreational facilities. The SPDC is funded primarily through the receipt of municipal
sales taxes.
Hotel Occupancy -
The Hotel Occupancy Tax Fund accounts for all revenues and expenditures relating to the hotel
occupancy tax received by the City.
30
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation — Continued
Storm Water Utility -
The Storm Water Utility Fund is used to account for fees collected for the purpose of improving,
upgrading and maintaining the City's drainage system.
Court Security Fund -
The Court Security Fund is used to account for Municipal Court fees assessed to provide for court
security.
Court Technology Fund -
The Court Technology Fund is used to account for Municipal Court fees assessed to provide for
court technology.
Library Fund -
The Library Fund was established to account for resources donated for use by City library
services.
Red Light Camera Fund -
The Red Light Camera Fund is used to account for fees assessed for red light violations captured
through the City's camera monitoring system.
Storm Water Maintenance Fund -
The Storm Water Maintenance Fund is used to account for the maintenance on storm water
infrastructure.
Oil and Gas Fund -
The Oil and Gas Fund is used to account for permit fees and the related expenditures for oil and
gas drilling.
Southlake Parks Development Corporation Debt Service Fund -
The Southlake Parks Development Corporation Debt Service Fund is utilized to account for the
accumulation of financial resources, primarily transfers from other funds, for the payment of long-
term principal and interest costs associated with the financing of improvements of the Southlake
Parks Development Corporation.
Capital Projects Funds — The City's Capital Projects Funds are utilized to account for financial
resources to be used for the acquisition or construction of specified capital improvements (other
than those financed by proprietary funds). Such resources are derived from proceeds of general
obligation debt, other sources designated for improvements and interest earned on such
proceeds. The City's non -major Capital Projects Fund is as follows:
Tax Increment Financing District Capital Projects Fund -
The Tax Increment Financing District Capital Projects Fund is utilized to fund the acquisition and
construction of public improvements as approved by the TIF board of directors. The fund has
been financed through the issuance of general obligation debt.
31
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Basis of Presentation — Continued
Proprietary Funds -
Proprietary Funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. The accounting objectives are determinations of net income,
financial position and cash flow. All assets and liabilities are included in the Statement of Net
Assets.
The City reports the following major proprietary fund
Water and Sewer Enterprise Fund -
The Water and Sewer Enterprise Fund is used to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user charges to the
public.
Additionally, the City reports an Internal Service Fund which is used to account for vehicle
replacement provided to departments of the City.
Proprietary funds distinguish operating revenues and expenses from non -operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. Operating
expenses for the proprietary funds include the cost of personnel and contractual services,
supplies and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non -operating revenues and expenses.
The City also presents one agency fund, the Cash Escrow Agency Fund. This fund is custodial in
nature and does not involve measurement of results of operations. Financial statements for the
Cash Escrow Agency Fund are prepared on the accrual basis of accounting.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made, regardless of
the measurement focus applied.
The government -wide statements and fund financial statements for proprietary and fiduciary
funds are reported using the accrual basis of accounting. The government -wide and proprietary
fund financial statements are prepared using the economic resources measurement focus;
however, the fiduciary funds have no measurement focus. The economic resources
measurement focus means all assets and liabilities (whether current or non -current) are included
in the statement of net assets and the operating statements present increases (revenues) and
decreases (expenses) in net total assets. Under the accrual basis of accounting, revenues are
recognized when earned, including unbilled water and sewer services which are accrued.
Expenses are recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting. Under
the modified accrual basis of accounting, revenues are recognized when susceptible to accrual;
i.e., when they become both measurable and available.
32
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Measurement Focus and Basis of Accounting — Continued
"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. The City considers all revenues as available if they are collected within 60 days
after year end. Expenditures are recorded when the related fund liability is incurred, except for
unmatured interest on general long-term debt which is recognized when due, and certain
compensated absences and claims and judgments which are recognized when the obligations are
expected to be liquidated with expendable available financial resources.
Property taxes, sales taxes, franchise taxes and interest are susceptible to accrual. Other
receipts become measurable and available when cash is received by the City and are recognized
as revenue at that time.
Cash, Cash Equivalents and Investments
In accordance with GASB Statement No. 31, the City's general policy is to report money market
investments and short-term participating interest -earning investment contracts at amortized cost
and to report nonparticipating interest -earning investment contracts using a cost -based measure.
However, if the fair value of an investment is significantly affected by the impairment of the credit
standing of the issuer or by other factors, it is reported at fair value. All other investments are
reported at fair value unless a legal contract exists which guarantees a higher value. The term
"short-term" refers to investments, which have a remaining term of one year or less at the time of
purchase. The term "nonparticipating" means that the investment's value does not vary with
market interest rate changes.
The City's cash and cash equivalents are defined as cash on hand, demand deposits, and short-
term investments with original maturities of three months or less from the date of acquisition for
classification in the statement of cash flows for proprietary fund types.
The City pools idle cash from all funds for the purpose of increasing income through coordinated
investment activities. As of September 30, 2010, the investments held by the City had a
remaining maturity of greater than one year from purchase and accordingly are carried at fair
value. Interest earnings are allocated to the respective funds based upon each fund's relative
balance in the pool.
Cash and cash equivalents and investments reported as restricted are restricted for the
acquisition and construction of capital assets, and for utility deposits held by the City.
Property Taxes
The City's property tax is levied each October 1 on the assessed value listed as of the prior
January 1 for all real and certain personal property located within the City. Appraised values are
established by the Central Appraisal District of Tarrant County at 100% of estimated market value
and certified by the Appraisal Review Board. The assessed value upon which the 2010 levy was
based was $5,560,632,174. Taxes are due on October 1 and are delinquent after the following
January 31.
The City is permitted by Article XI, Section 5 of the State of Texas Constitution to levy taxes up to
$2.50 per $100 of assessed valuation for general governmental services, including the payment
of principal and interest on general obligation long-term debt. The combined tax rate to finance
general governmental services including the payment of principal and interest on long-term debt
for the year ended September 30, 2010 was $0.462 per $100 of assessed valuation.
33
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Property Taxes — Continued
In Texas, countywide central appraisal districts are required to assess all property within the
appraisal district on the basis of 100% of its appraised value and are prohibited from applying any
assessment ratios. The value of property within the appraisal district must be reviewed every five
years; however, the City may, at its own expense, require annual reviews of appraised values.
The City may challenge appraised values established by the appraisal district through various
appeals and, if necessary, legal action. Under this legislation, the City continues to set tax rates
on City property. However, if the effective tax rate, excluding tax rates for bonds and other
contractual obligations, adjusted for new improvements, exceeds the rate for the previous year by
more than 8%, qualified voters of the City may petition for an election to determine whether to
limit the tax rate to no more than 8% above the tax rate of the previous year.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as "due to/from other funds."
Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances".
Transactions Between Funds
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as a reduction of expenditures/expenses in the fund reimbursed. All other
interfund transactions, except interfund services provided and used and reimbursements, are
recorded as transfers.
Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted first, then unrestricted resources as required.
Inventories
Inventories are stated at cost (first -in, first -out) and are determined annually by taking a physical
inventory. Inventory in the general fund consists of gasoline and supplies held for consumption
and is reported on the consumption method. Under the consumption method the cost is recorded
as an expenditure at the time individual inventory items are utilized.
Prepaid Items
Certain payments reflect costs applicable to future periods and are recorded as prepaid in the
government -wide and fund financial statements. These items consist principally of postage and
building deposits.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are reported
in the applicable governmental or business -type activities columns in the government -wide
financial statements and in the fund financial statements for proprietary funds. All capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available.
Donated assets are valued at fair market value on the date donated.
34
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Capital Assets — Continued
The costs of normal repairs and maintenance that do not add to the value of the asset or
materially extend the asset lives are not capitalized. Renewals and betterments are capitalized.
Interest has not been capitalized during the construction period on property, plant and equipment.
Assets capitalized, not including infrastructure assets, have an original cost of $5,000 or more
and over one year of useful life. Depreciation has been calculated on each class of depreciable
property using the straight-line method. Estimated useful lives are as follows:
Buildings
20
- 50 Years
Water and Sewer distribution system
35
- 50 Years
Water hydrants
10-15 Years
Water tanks
35 Years
Computer equipment
5 Years
Heavy equipment and vehicles
10
- 20 Years
Light vehicles
2
- 10 Years
Vehicles
5 Years
Improvements
25 Years
The street network is not depreciated. The City has elected to use the modified approach in
accounting for its street infrastructure. The modified approach allows governments to report as
expenses in lieu of depreciation, infrastructure expenditures which maintain the asset but do not
add to or improve the asset. Additions and improvements to the street network are capitalized.
The City uses an asset management system to rate street condition and quantify the results of
maintenance efforts.
The City has established the Vehicle Replacement Internal Service Fund to account for all City -
owned vehicles. Charges for use of the vehicle in the form of lease payments are made by the
City departments to the Vehicle Replacement Internal Service Fund to provide for future
acquisitions and replacement of City -owned vehicles.
Vacation and Sick Leave (Compensated Absences)
City employees earn vacation and sick leave, which may either be taken or accumulated, up to
certain amounts, until paid upon retirement or termination. Upon termination or retirement, an
employee is reimbursed up to a maximum number of hours of vacation pay and sick leave based
upon the years of service. All vacation and sick pay is accrued in the government -wide and
proprietary fund financial statements and reported as accrued liabilities. A liability for these
amounts is reported in the governmental funds only if they have matured.
Long -Term Obligations
In the government -wide financial statements and proprietary fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund statement of net assets. Bond premiums
and discounts, as well as issuance costs and any deferred loss on the refunding of bonds are
amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
35
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —CONTINUED
Long -Term Obligations — Continued
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums and discounts received on debt
issuances are reported as other financing sources or uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. The City has designated portions of fund balance for specific purposes
based upon funding sources and management intent as follows:
For Police expenditures
For Teen Court expenditures
For Senior Center expenditures
For Reforestation expenditures
For Strategic initiatives
$ 32,027
17,496
8,973
197,996
5,120,623
$ 5,377,115
During fiscal year 2006, the City began designating funds for strategic initiatives. The source of
these funds is reserves in excess of 25% of general fund expenditures. The funds will be used
for one-time high impact projects involving infrastructure maintenance, community enhancement
and capital acquisition.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital
assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by
the outstanding balances of any borrowing used for the acquisition, construction or improvements
of those assets, and adding back unspent proceeds. Net assets are reported as restricted when
there are limitations imposed on their use either through the enabling legislations adopted by the
City or through external restrictions imposed by creditors, grantors or laws or regulations of other
governments.
Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America 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 the financial statements, and the reported amounts of
revenues and expenses/expenditures during the reporting period. Actual results could differ from
those estimates.
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 2. CASH AND INVESTMENTS
The funds of the City must be deposited and invested under the terms of a contract, contents of which
are set out in the Depository Contract Law. The depository bank places approved pledged securities
for safekeeping and trust with the City's agent bank in an amount sufficient to protect City funds on a
day-to-day basis during the period of the contract. The pledge of approved securities is waived only
to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation (FDIC)
insurance.
At September 30, 2010 the carrying amount of the City's deposits was $23,503,864 and the bank
balance was $25,689,119. As of September 30, 2010, none of the City's deposits were
uncollateralized.
Legal and contractual provisions governing deposits and investments:
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in
the areas of investment practices, management reports and establishment of appropriate policies.
Among other things, it requires the City to adopt, implement, and publicize an investment policy. That
policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio
diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6)
maximum allowable stated maturity of portfolio investments, (7) maximum average dollar -weighted
maturity, allowed based on the stated maturity date for the portfolio, (8) investment staff quality and
capabilities, (9) and bid solicitation preferences for certificates of deposit. Statutes and the City's
investment policy authorized the City to invest in the following investments as summarized in the
table below:
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio
In One Issuer
U.S. Government Securities 5 years 100% None
Commercial Paper 270 days 20% None
Eligible Investment Pools 365 days 100% None
The Act also requires the City to have independent auditors perform test procedures related to
investment practices as provided by the Act. The City is in substantial compliance with the
requirements of the Act and with local policies.
Cash and investments as of September 30, 2010 are classified in the accompanying financial
statements as follows:
Primary Government
Cash and cash equivalents $ 52,525,312
Investments 43,807,594
Restricted cash and cash equivalents 15,881,715
Restricted investments 16,918,345
Total primary government 129,132,966
Fiduciary Funds
Cash 19,038
Investments 48,907
Total fiduciary funds 67,945
Total cash and investments $ 129,200,911
37
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 2. CASH AND INVESTMENTS —CONTINUED
Cash and investments as of September 30, 2010 consist of the following:
Cash on hand $ 3,393
Deposits with financial institutions 23,503,864
Investments 105,693,654
Total cash and investments $ 129,200,911
Disclosures relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. One of the ways that the City manages its exposure to
interest rate risk is by investing mainly in investment pools which purchase a combination of shorter
term investments with an average maturity of less than 60 days, thus reducing the interest rate risk.
The City monitors the interest rate risk inherent in its portfolio by measuring the weighted average
maturity of its portfolio. The City has no specific limitations with respect to this metric.
As of September 30, 2010, the City had the following investments:
Investment Type
Government agency securities
TexStar
TexPool
Certificates of Deposit
Total
Amount
$ 45, 708, 889
22,201, 082
22, 717, 728
15.065.955
$ 105,693,654
Weighted
Average
Maturity
270 days
49 days
44 days
173 days
As of September 30, 2010 the City did not invest in any securities which are highly sensitive to
interest rate fluctuations.
Disclosures relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where applicable)
the Public Funds Investment Act, the City's investment policy, or debt agreements, and the actual
rating as of year-end for each investment type.
Investment Type
Amount
Minimum
Legal
Rating
Rating as
of Year
End
Government agency securities
$ 45,708,889
N/A
Not rated
TexStar
22,201,082
N/A
AAAm
TexPool
22,717,728
N/A
AAAm
Certificates of Deposit
15,065,955
N/A
AAAm
Total $ 105,693,654
38
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 2. CASH AND INVESTMENTS —CONTINUED
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any
one issuer. As of September 30, 2010, other than external investment pools, the City did not have
5% or more of its investments with one issuer.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The custodial credit risk for investments is
the risk that, in the event of the failure of the counterparty to a transaction, a government will not be
able to recover the value of its investment or collateral securities that are in the possession of another
party. The Public Funds Investment Act and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments, other
than the following provision for deposits: The Public Funds Investment Act requires that a financial
institution secure deposits made by state or local governmental units by pledging securities in an
undivided collateral pool held by a depository regulated under state law (unless so waived by the
governmental unit).
The market value of the pledged securities in the collateral pool must equal at least the bank balance
less the FDIC insurance at all times.
As of September 30, 2010, none of the City's cash deposits were uncollateralized.
Investment in State Investment Pools
The City is a voluntary participant in two investment pools: TexStar and TexPool.
The State Comptroller of Public Accounts exercises responsibility over TexPool. This 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. TexPool operates in a manner consistent with the SEC's Rule 2a7 of the
Investment Company Act of 1940. TexPool uses amortized costs rather than market value to report
net assets to compute share prices. Accordingly, the fair value of the position in TexPool is the
same as the value of TexPool shares.
TexStar is administered by First Southwest Asset Management, Inc. and JPMorgan Chase.
Together these organizations bring to the TexStar program the powerful partnership of two leaders
in financial services with a proven and noted track record in local government investment pool
management. TexStar is a local government investment pool created under the Interlocal
Cooperation Act specifically tailored to meet Texas state and local government investment
objectives of preservation of principal, daily liquidity, and competitive yield. TexStar uses amortized
costs rather than market value to report net assets to compute share prices. Accordingly, the fair
value of the position in TexStar is the same as the value of TexStar shares.
39
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 3. RECEIVABLES
Receivables at September 30, 2010, for the government's individual major, non -major, internal
service, and fiduciary funds in the aggregate, including the applicable allowances for uncollectible
accounts, consist of the following:
Southlake Parks
General
Development
Obligation
General
Crime
Corporation
Debt
Capital
Control
Capital
General
Service
Projects
District
Projects
Receivables:
Property taxes
$ 416,788
$ 166,834
$ -
$ -
$ -
Sales taxes
1,599,832
-
-
727,359
-
Franchise taxes
372,817
-
-
-
-
Accounts
-
-
-
-
-
Special
assessments
-
-
-
-
-
Interest
104,866
417
43,102
62,098
4,045
Other
88,390
-
-
-
-
Gross
receivables
2,582,693
167,251
43,102
789,457
4,045
Less: allowance
208,625
81,656
-
-
-
Net total
receivables
$ 2,374,068 $
85,595
$ 43,102
$ 789,457
$ 4,045
Non -
Major
Water
Govern-
and
Internal
mental
Sewer
Service
Agency
Total
Receivables:
Property taxes
$ - $
-
$ -
$ -
$ 583,622
Sales taxes
821,111
-
-
-
3,148,302
Franchise taxes
-
-
-
-
372,817
Accounts
-
4,877,968
-
-
4,877,968
Special
assessments
-
3,028
-
-
3,028
Interest
28,806
71,634
394
262
315,624
Other
289,241
-
-
-
377,631
Gross
receivables
1,139,158
4,952,630
394
262
9,678,992
Less: allowance
-
216,300
-
-
506,581
Net total
receivables
$ 1,139,158 $
4,736,330
$ 394
$ 262
$ 9,172,411
The Water and Sewer Fund accounts
receivable
include unbilled
charges for
services rendered
through September 30,
2010 of $1,355,905 .
40
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended
September 30, 2010, was as follows:
Beginning
Capital
Sales or
Adjustments/
Ending
Balance
Acquisitions
Disposals
Transfers
Balance
Governmental Activities:
Capital assets not being depreciated:
Land
$ 77,738,029
$ 1,676,048
$
$ 2,237,533
$ 81,651,610
Street infrastructure
172,898,198
1,710,080
939,837
175,548,115
Construction -in -progress
34,242,356
21,897,847
(37,998,231)
18,141,972
Total capital assets not
being depreciated
284,878,583
25,283,975
(34,820,861)
275,341,697
Capital assets being depreciated:
Land improvements
832,463
(197,348)
635,115
Buildings and building improvements
33,428,251
143,279
(14,553)
28,829,127
62,386,104
Public art
-
31,298
285,297
316,595
Office equipment
559,524
5,785
1,240,394
1,805,703
Communications equipment
2,714,525
-
-
2,714,525
Field equipment
712,743
27,907
15,162
755,812
Heavy equipment
1,423,990
81,511
1,317
1,506,818
Computer equipment
771,608
92,319
141,874
1,005,801
Computer software
3,013,035
234,344
3,247,379
Vehicles
7,232,232
290,974
(50,004)
2,577
7,475,779
Drainage
32,663,554
2,608,078
1,990,292
37,261,924
Bridges, road signs, and fiber
optic lines
995,987
-
80,663
1,076,650
Park improvements
6,315,182
16,000
1,973,872
8,305,054
Pathways
6,843,226
12,450
216,901
7,072,577
Total capital assets being depreciated
97,506,320
3,543,945
(64,557)
34,580,128
135,565,836
Accumulated depreciation
Land improvements
(516,024)
(43,808)
-
20,100
(539,732)
Buildings and building improvements
(5,375,505)
(994,231)
10,187
-
(6,359,549)
Public art
(3,638)
(3,638)
Office equipment
(261,328)
(37,038)
-
(298,366)
Communications equipment
(1,934,755)
(332,917)
(2,267,672)
Field equipment
(424,689)
(108,070)
(6,030)
(538,789)
Heavy equipment
(920,233)
(94,540)
-
(304)
(1,015,077)
Computer equipment
(397,895)
(130,347)
25,588
(502,654)
Computer software
(1,127,832)
(573,904)
(1,701,736)
Vehicles
(3,454,697)
(832,200)
50,004
(2,577)
(4,239,470)
Drainage
(9,590,920)
(895,222)
-
21,866
(10,464,276)
Bridges, road signs, and fiber
optic lines
(717,336)
(99,556)
(375)
(817,267)
Park improvements
(3,657,730)
(551,349)
145,020
(4,064,059)
Pathways
(2,425,309)
(242,459)
4,714
(2,663,054)
Total accumulated depreciation
(30,804,253)
(4,939,279)
85,779
182,414
(35,475,339)
Total capital assets being depreciated, net
66,702,067
(1,395,334)
21,222
34,762,542
100,090,497
Governmental activities capital assets, net
$ 351,580,650
$23,888,641
$ 21,222
$ (58,319)
$ 375,432,194
41
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 4. CAPITAL ASSETS — CONTINUED
Business Type Activities:
Capital assets not being depreciated:
Land
Construction -In -Progress
Total capital assets not
being depreciated
Capital assets being depreciated:
Buildings and building improvements
Equipment
Vehicles
Capacity rights
Distribution system
Total capital assets being depreciated
Accumulated depreciation:
Buildings and building improvements
Equipment
Vehicles
Capacity rights
Distribution system
Total accumulated depreciation
Total capital assets being depreciated, net
Business type activities capital assets, net
Beginning
Capital
Sales or
Adjustments/
Ending
Balance
Acquisitions
Disposals
Transfers
Balance
$13,868,508
$ 602,734
$
$ -
$ 14,471,242
6,895,614
5,837,962
(5,137,526)
7,596,050
20,764,122
6,440,696
(5,137,526)
22,067,292
887,424
-
887,424
1,831,340
324,247
(491,195)
1,664,392
378,964
-
(28,000)
(21,083)
329,881
9,190,988
-
-
9,190,988
100,352,194
1,924,941
5,609,805
107,886,940
112,640,910
2,249,188
(28,000)
5,097,527
119,959,625
(406,611)
(27,915)
-
-
(434,526)
(582,016)
(144,649)
-
46,788
(679,877)
(300,656)
(20,910)
28,000
7,117
(286,449)
(2,601,117)
(183,821)
-
-
(2,784,938)
(31,890,931)
(3,742,006)
(4,682)
(35,637,619)
(35,781,331)
(4,119,301)
28,000
49,223
(39,823,409)
76,859,579
(1,870,113)
5,146,750
80,136,216
$97,623,701
$ 4,570,583
$
$ 9,224
$ 102,203,508
Depreciation expense was charged as a direct expense to functions of the primary government as
follows:
Governmental activities:
General government $ 902,248
Public safety 937,244
Public works 1,672,177
Culture and recreation 1,427,610
Total depreciation expense -
governmental activities $ 4,939,279
Business -type activities:
Water and Sewer $ 4,119,301
NOTE 5. LONG-TERM DEBT
The City issues general obligation bonds, combination tax and revenue certificates of obligation and
tax notes to provide for the acquisition and construction of major capital facilities and infrastructure.
Combination tax and revenue certificates of obligation are issued for both governmental and
business -type activities. General obligation bonds, governmental revenue bonds and tax notes
pledge the full faith and credit of the City. Combination tax and revenue certificates of obligation are
payable from the net revenues of the water and sewer system and general debt service tax.
42
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 5. LONG-TERM DEBT —CONTINUED
In May 2010, the City issued $15,745,000 of Series 2010, Tax and Waterworks and Sewer System
(limited pledge) certificates of obligation, of which $5,290,000 is included as part of business -type
activities. The debt was issued to pay the costs of various general capital project improvements and
water and sewer capital improvements. The obligations are payable over the next 20 years.
In May 2010, the City also issued $26,730,000 of Series 2010, General Obligation Refunding Bonds,
of which $7,404,210 is included as part of business -type activities. The debt was issued to refund a
portion of the City's outstanding debt to achieve a present value debt service savings. Net proceeds
from the sale of the bonds, $225,000 contribution from prior issue debt service funds, totaled
$28,413,367. Of these proceeds, $28,004,992 was placed with an escrow agent to provide for all
future debt payments of the refunded bonds.
This refunding resulted in a decrease in the City's debt service payments of $2,402,210, which
resulted in an economic gain (difference between the present value of the debt service payments of
the old debt and new debt) of $2,044,888.
General obligation bonds, combination certificates of obligation, tax notes and governmental revenue
bonds are as follows as of September 30, 2010:
Final
General Obligation Bonds and Certificates of Obligation Maturity
$9,605,000 Series 2002, General Obligation Refunding
$30,275,000 Series 2004, General Obligation Refunding
$3,025,000 Series 2004, Tax and Waterworks and Sewer
System Revenue Certificates of Obligation
$35,700,000 Series 2005, General Obligation
Refunding Bonds
$6,075,000 Series 2006, Combination Tax and Waterworks
and Sewer System Revenue Certificates of Obligation
$6,540,000 Series 2007, Combination Tax and Waterworks
and Sewer System Revenue Certificates of Obligation
$14,015,000 Series 2008, Combination Tax and Waterworks
and Sewer System Revenue Certificates of Obligation
$24,835,000 Series 2009, Combination Tax and Waterworks
and Sewer System Revenue Certificates of Obligation
$26,730,000 Series 2010, General Obligation
Refunding Bonds
$15,745,000 Series 2010, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation
Interest
Rates
Business -
Governmental Type
2018
1.65 - 4.35%
$ 3,730,000 $
2025
4.0 - 5.22%
27,230,000
2023
2.0 - 5.0%
2,370,000
-
2026
4.2%
11,604,164
21,836,476
2026
3.75 - 4.375%
4,785,000
2018
4.0 - 5.0%
5,010,000
2028
3.5 - 4.625%
6,443,760
6,870,540
2029
2.0 - 5.0%
17,110,000
6,265,000
2023
3.0 - 4.0%
19,325,790
7,404,210
2030 3.0 - 4.25% 7,210,000 5,290,000
$ 104,818,714 $ 47,666,226
43
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 5. LONG-TERM DEBT —CONTINUED
Governmental Revenue Bonds
$9,220,000 Series 1997, Sales Tax and Revenue Bonds,
Refunding and Improvements
$4,180,000 Series 2000, Sales Tax and Revenue Bonds,
Refunding and Improvements
$1,155,000 Series 2005, SPDC Taxable Sales
Refunding Bonds
$17,695,000 Series 2005, SPDC Refunding Bonds
$4,425,000 Series 2006, Sales Tax and Revenue Bonds
$15,745,000 Series 2010, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation
Final
Interest
Business -
Maturity
Rates
Governmental Type
2021
3.5 - 5.38%
$ 1,665,000 $
2030
4.3 - 6.15%
-
2011
5.00%
190,000
2027
4.30%
14,875,000
2027
3.75%-4.375%
3,745,000
2030
3.0-4.25%
3,245,000
$ 23,720,000 $
The City issues revenue bonds to make improvements to the water and sewer system. Revenue bonds
are payable solely from the net revenues of the water and sewer system. Revenue bonds and
certificates of obligation outstanding as of September 30, 2010 are as follows:
Revenue Bonds and Combination Tax and Final Interest Business -
Revenue Certificates of Obligation Maturity Rates Governmental Type
$2,965,000 Series 2004-A, Tax and Waterworks and Sewer
System Revenue Certificates of Obligation 2023 2.0 - 5.0% $ - $ 2,330,000
The City has entered into various contractual agreements to unconditionally finance the principal and
interest or a fixed percentage of principal and interest of Trinity River Authority (TRA) Contract Revenue
Bonds. Under the agreements, the TRA utilized the bond proceeds to administer and construct various
sewer and wastewater treatment projects on the City's behalf. Such agreements provide the City title to
the assets upon retirement of the debt or capacity rights in the use of constructed assets. The City has
included in its financial statements its proportionate share of these obligations and its investment in
these assets as capacity rights. Contract revenue obligations at September 30, 2010 consist of the
following:
Contract Revenue Obligations
Series 1990, TRA - City of Southlake Sewer System Project -
Contract Revenue Obligations
Series 1996, TRA - Big Bear Creek Refunding
Series 2001, TRA - Denton Creek Wastewater Pressure
Interceptor - Refunding
Final
Business -
Maturity
Governmental Type
2011
$ $ 120,000
2011
45,900
2017
2,500,000
$ $ 2,665,900
44
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 5. LONG-TERM DEBT —CONTINUED
The following is a summary of long-term transactions for the year ended September 30, 2010:
Beginning
Balance Additions Reductions
Ending
Balance
Amount
Due within
One year
Governmental activities:
General obligation bonds and
certificates of obligation
$ 104,784,507
$ 26,535,790
$ (26,501,583)
$ 104,818,714
$ 7,786,380
Sales tax revenue bonds
21,655,000
3,245,000
(1,180,000)
23,720,000
1,315,000
Bond premiums (discounts)
658,089
1,321,370
(88,971)
1,890,488
96,650
Deferred loss on refunding
(5,255,754)
(127,827)
1,695,726
(3,687,855)
(260,669)
Total bonds payable
121,841,842
30,974,333
(26,074,828)
126,741,347
8,937,361
Accreted interest payable
126,510
-
(126,510)
-
-
Compensated absences
850,820
28,151
878,971
604,975
Total governmental activities
$ 122,819,172
$ 31,002,484
$ (26,201,338)
$ 127,620,318
$ 9,542,336
The general fund has been used to liquidate capital lease liabilities with respect to acquisitions of
governmental capital assets and has also typically been used in prior years to liquidate the liability for
compensated absences.
Business -type activities:
Revenue bonds and certificates
of obligation
Contract revenue obligations
Bond premiums
Deferred loss on refunding
Total bonds payable
Unearned revenue
Compensated absences
Total business -type activities
Amount
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
One year
$ 48,160,491
$12,694,210
$ (10,858,475)
$ 49,996,226
$ 3,068,620
3,553,680
-
(887,780)
2,665,900
605,900
195,803
474,555
(31,312)
639,046
41,969
(1,104,021)
(213,986)
181,488
(1,136,519)
(181,488)
50,805,953
12,954,779
(11,596,079)
52,164,653
3,535,001
278,437
-
(6,223)
272,214
5,000
64,583
62,273
(64,584)
62,272
62,272
$ 51,148,973 $13,017,052 $ (11,666,886) $ 52,499,139 $ 3,602,273
45
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 5. LONG-TERM DEBT —CONTINUED
The annual aggregate maturities for each bond type are as follows:
General Obligation Bonds and Certificates of Obligation
Fiscal Year Ending
September 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
Total
Sales Tax Revenue Bonds
Fiscal Year Ending
September 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
Total
Principal
$ 7,786,380
8,156,094
8,109,864
8,064,610
8,393,069
30,113,698
24,743,379
9,451,620
Governmental Activities
Interest
$ 4,391,787
4,027,404
3,720,890
3,396,545
3,053,617
11,019,908
5,076,492
615,919
Total
$ 12,178,167
12,183,498
11,830,754
11,461,155
11,446,686
41,133,606
29,819,871
10,067,539
$ 104,818,714 $ 35,302,562 $ 140,121,276
Principal
$ 1,315,000
1,075,000
1,110,000
1,160,000
1,215,000
6,885,000
8,120,000
2,840,000
$ 23,720,000
Revenue Bonds and Certificates of Obligation
Fiscal Year Ending
September 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
Total
Principal
$ 3,068,620
3,313,906
3,845,136
4,275,390
4,456,931
18,546,302
7,331,621
5,158,320
$ 49,996,226
Governmental Activities
Interest
$ 1,053,330
959,619
913,797
865,679
815,251
3,248,035
1,627,353
225,301
$ 9,708,365
Business -Type Activities
Total
$ 2,368,330
2,034,619
2,023,797
2,025,679
2,030,251
10,133,035
9,747,353
3,065,301
$ 33,428,365
Interest Total
$ 2,043,157
1,865,148
1,723,149
1,557,053
1,375,375
4,288,893
1,860,769
456,093
$ 15,169,637
$ 5,111,777
5,179,054
5,568,285
5,832,443
5,832,306
22,835,195
9,192,390
5,614,413
$ 65,165,863
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 5. LONG-TERM DEBT -CONTINUED
Contract Revenue Obligations
Fiscal Year Ending
September 30,
2011
2012
2013
2014
2015
2016-2017
Total
Principal
$ 605,900
305,000
320,000
335,000
350,000
750,000
$ 2,665,900
Business -Type Activities
Interest Total
$ 115,165
92,967
78,432
62,956
46,250
38,000
$ 433,770
$ 721,065
397,967
398,432
397,956
396,250
788,000
$ 3,099,670
In previous years, the City has legally defeased certain outstanding general obligation and revenue
debt by placing funds into irrevocable trusts pledged to pay all future debt service payments of the
refunded debt. Accordingly, a liability for the defeased debt issues is not included in the City's
financial statements. As of September 30, 2010, the following outstanding bonds were legally
defeased:
Series Type Amount
1994 Sales Tax Revenue Bonds $ 870,000
2001 SPDC Sales Tax Revenue Bonds
Subordinate Lien 4,690,000
$ 5,560,000
NOTE 6. INTERFUND TRANSFERS
All interfund transfers between the various funds are approved supplements to the operations of
those funds. Individual fund transfers for fiscal year 2010 were as follows:
Transfer In
Internal service fund
General capital projects fund
General fund
General fund
General fund
General obligation debt service fund
General capital projects fund
Non major governmental funds
Transfer Out
General fund
General fund
Non major governmental funds
Non major governmental funds
Non major governmental funds
Non major governmental funds
Non major governmental funds
Non major governmental funds
General obligation debt service fund TIF District operating fund
General fund TIF District operating fund
Non major governmental funds
SPDC capital projects fund
Crime control district operating fund
General obligation debt service fund
SPDC capital projects fund
General fund
Non major governmental funds
Non major governmental funds
Non major governmental funds
Crime control district operating fund
Non major governmental funds
Water and sewer fund
Amount
Purpose
Fund various infrastructure maintenance projects
$ 235,000
and technology needs
1,800,000
Fund various priority roadway/drainage projects
19,389
Fund indirect charges
67,500
Fund attractive spaces & future art projects
37,380
Fund indirect charges
194,401
For debt service and indirect charges
100,000
Fund capital projects
150,000
Fund various future storm water maintenance
Fund debt repayment for bonds issued for TIF
2,823,109
projects
200,000
2,566,749
To pay the principal and interest on debt incurred
2,500,000
Assist with the funding of large park projects
743,607
Fund land purchase
1,436,687
Fund bonds issued on TIF's behalf
Fund major park improvements, signage and
276,000
amenities
596,093
Fund indirect charges
$ 13,745,915
47
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 7. RETIREMENT PLAN
Plan Description
The City provides pension benefits for all of its full-time employees through a non-traditional, joint
contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System
(TMRS), an agent multiple -employer public employee retirement system. The plan provisions that
have been adopted by the City are within the options available in the governing state statutes of
TMRS.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the
City -financed monetary credits, with interest. At the date the plan began, the City granted
monetary credits for service rendered before the plan began of a theoretical amount equal to two
times what would have been contributed by the employee, with interest, prior to establishment of
the plan. Monetary credits for service since the plan began are a percent (100%, 150%, or
200%) of the employee's accumulated contributions. In addition, the City can grant, as often as
annually, another type of monetary credit referred to as an updated service credit which is a
theoretical amount which, when added to the employee's accumulated contributions and the
monetary credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution rate and
City matching percent had always been in existence and if the employee's salary had always
been the average of his/her salary in the last three years that are one year before the effective
date. At retirement, the benefit is calculated as if the sum of the employee's accumulated
contributions with interest and the employer -financed monetary credits with interest were used to
purchase an annuity.
Members can retire at ages 60 and above with 5 or more years of service or with 25 years of
service regardless of age. A member is vested after 5 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
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 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 30-year
amortization period. The projected 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 for budgetary purposes, there is a one-year
delay between the actuarial valuation that serves as the basis for the rate and the calendar year
when the rate goes into effect. (i.e. December 31, 2008 valuation is effective for the rates
beginning January 2010).
48
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 7. RETIREMENT PLAN —CONTINUED
SCHEDULE OF ACTUARIAL LIABILITIES AND FUNDING PROGRESS
Actuarial Information:
12/31 /2009
12/31 /2008
12/31 /2007
Actuarial cost method
Projected Unit Credit
Projected Unit Credit
Projected Unit Credit
Amortization method
Level %
Level %
Level %
30 years -closed
Amortization period
28 years -closed period 29 years -closed period
period
10-year smoothed
Asset valuation method
market
Amortized cost
Amortized cost
Assumptions
Investment return
7.5%
7.5%
7.0%
varies by age
varies by age
varies by age
Projected salary increases
and services
and services
and services
Inflation
3.0%
3.0%
3.0%
Cost -of -living adjustment
1.5% (3.0% CPI)
2.1 % (3.0% CPI)
2.1 % (3.0% CPI)
City specific assumptions
Payroll growth assumption
3.0%
3.0%
3.0%
Withdrawal rates for male/female
Mid-High/Mid
Mid-High/Mid
Mid-High/Mid
(low, mid/low, mid, mid/high or high)
Schedule of Funding Information
Actuarial valuation date
12/31/09
12/31/08
12/31/07
Actuarial Value of Assets
$ 31,327,058
$ 27,171,220
$ 24,758,005
Actuarial Accrued Liability
$ 42,184,877
$ 39,252,944
$ 35,796,445
Unfunded (Overfunded) Actuarial
Accrued Liability (UAAL)
$ 10,857,819
$ 12,081,724
$ 11,038,380
Funded ratio
74.3%
69.2%
69.2%
Annual Covered Payroll
$ 16,655,653
$ 14,968,247
$ 13,472,433
UAAL as a Percentage of Covered Payroll
65.20%
80.70%
81.90%
The City's net pension obligation (NPO) for TMRS at September 30, 2010, 2009 and 2008 is
calculated as follows:
NPO at the beginning of the period
Annual required contribution
Contributions made (100%)
NPO at the end of the period
9/30/2010 9/30/2009 9/30/2008
2,129,451 2,198,164 2,097,347
2,129,451 2,198,164 2,097,347
The City adopted the Updated Service Credit provision in 1992, on a repeating basis. Additionally,
the City adopted annuity increases for its retirees, on a repeating basis in 1992 equal to 70% of the
change in consumer price index.
The City of Southlake is one of 833 municipalities having the benefit plan administered by TMRS.
Each of the 833 municipalities has an annual, individual actuarial valuation performed. All
assumptions for the December 31, 2009 valuations are contained in the 2009 TMRS Comprehensive
Annual Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin,
Texas 78714-9153.
49
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 8. OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The City provides other postemployment benefits (OPEB) in the form of health insurance benefits
through a single -employer defined benefit medical plan. Regular full-time employees retiring from
the City of Southlake have the option to continue medical insurance coverage until the retiree
becomes eligible for Medicare or is eligible to be covered under another medical plan. The City
contributes $125 per month towards the premium for retiree insurance coverage or $225 towards
the premium for retirees and dependents. A third -party administrator is utilized to provide claims
administration and payment of claims. Insurance is purchased to provide specific stop loss and
aggregate stop loss protection.
The Plan does not issue a separate financial report.
Funding Policy
The City passed a resolution in September 2009, electing to participate in the PARS Public
Agencies Post -Retirement Health Care Plan Trust ("the Trust") to fund post -employment benefits
for its employees as specified in the City's policies and/or applicable collective bargaining
agreements. The Trust is a multiple employer trust arrangement established to provide
economies of scale and efficiency of administration to public agencies that adopt it to hold the
assets used to fund its OPEB obligation.
The City has made a determination to fund its annual required contribution. For fiscal year 2010,
the City contributed $180,000 to the Trust.
Annual OPEB Cost and Net OPEB Obligation.
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on
the annual required contribution of the employer (ARC), an amount actuarially determined in
accordance with the parameters of GASB Statement 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years on an
open basis. The City's annual OPEB cost and net OPEB obligation (asset) for 2010 and 2009 is
shown below:
Net pension obligation at
beginning of period
Annual required contribution
Contributions made
Net pension obligation (asset) at
end of period
Funded Status and Funding Progress
9/30/10
128,502
9/30/09
128,502
180,000 128,502
$ (51,498) $
The funded status of other postemployment benefits as of April 30, 2008, the date of the latest
actuarial valuation, was as follows:
Actuarial accrued liability (AAL) $ 1,611,446
Actuarial value of plan assets 308,502
Unfunded actuarial accrued liability $ 1,302,944
Funded ratio (actuarial value of plan asset/AAL) 19.1%
50
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 8. OTHER POSTEMPLOYMENT BENEFITS —CONTINUED
Funded Status and Funding Progress — Continued
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. The unfunded
actuarial accrued liability is being amortized assuming 30 level annual payments on an open
basis. Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revisions as actual results are compared
with past expectations and new estimates are made about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan and
include the types of benefits provided at the time of each valuation and the historical pattern of
sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-
term perspective of the calculations.
In the April 30, 2008 actuarial valuation, the projected unit credit cost method was used. Key
actuarial assumptions include: (a) level percent of payroll amortization method; (b) a 4.5% real
rate of investment return; (c) a payroll growth rate for financing the Unfunded Actuarial Accrued
Liability assumed to be 3.0%; a sliding scale of medical inflation from 10.0% in 2008 to 4.5% by
2023.
NOTE 9. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion
of their salary until future years. The deferred compensation is not available to employees until
termination, retirement, death, or unforeseeable emergency.
The laws governing 457 plans were changed to state that plans would not be considered eligible
plans unless all assets and income of the plans are held in trust for the exclusive benefit of the
participants and their beneficiaries. The City amended the plan documents to comply with these
requirements.
In accordance with GASB 32, the plans as amended are not included in the City's financial
statements.
NOTE 10. RISK FINANCING AND INSURANCE
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. During the fiscal year
1990, the City joined the Texas Municipal League Workers Compensation Joint Insurance Fund for
risks related to employees. Premiums are paid to the Pool, which retains a limit of loss. Reinsurance
companies insure the risks beyond those limits. The City retains, as a risk, only the deductible
amount of each policy. The City continues to carry commercial insurance with Texas Municipal
League provided by Mutual of Omaha for other risks including general liability, property, and errors
and omissions. There were no significant reductions in coverage in the past year and there were no
settlements exceeding insurance coverage in any of the past three years.
51
CITY OF SOUTHLAKE, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 11. COMMITMENTS AND CONTINGENCIES
The City has entered into various contracts with the Trinity River Authority (TRA) and other cities.
Terms of the agreements provide the City will pay an amount equal to its proportional share of
maintenance and operations and debt service based upon volumes of wastewater transported,
treated, or disposed of. The City's proportional share of future costs under these contracts is
indeterminable and has not been recorded. Payments to the TRA under these contracts for the year
ended September 30, 2010 were $1,033,274.
The City has authorized various contracts obligating future funds of the City as the contracted
services are performed. Significant amounts unexpended under such contracts at year end are
reflected as reserves for authorized contracts in the applicable funds.
The City has certain claims and litigation pending with respect to matters arising in the normal course
of operations. City management is of the opinion that the settlement of these matters will not have a
material adverse impact on the City's financial statements.
NOTE 12. SUBSEQUENT EVENTS
The City has evaluated all events or transactions that occurred after September 30, 2010 up through
March 29, 2011, the date the financial statements were issued. During this period, there were no
subsequent events requiring disclosure.
52
REQUIRED SUPPLEMENTARY
INFORMATION
BUDGETARY COMPARISON
GENERALFUND
CITY OF SOUTHLAKE, TEXAS EXHIBIT A-1
GENERALFUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES
Ad valorem taxes, penalties and interest
Franchise taxes
Municipal sales and mixed beverage tax
License, permits and fees
Charges for services
Fines and forfeitures
Grants
Interest earned
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General government
City secretary/mayor
City manager's office
Human resources
Support services
Economic development
Finance
Municipal court
Teen court
Information technology
Public safety
Police services
Fire services
Public safety support
Building inspection
Public works
Public works administration
Streets and drainage
Planning
Culture and recreation
Community services
Parks and recreation
Library services
BUDGETED AMOUNTS
rl-1 Vv 13 WA 413 WAN
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ACTUAL (NEGATIVE)
$ 16,977,089
$ 17,012,089
$ 17,623,973 $
611,884
2,604,355
2,696,427
2,606,248
(90,179)
7,521,095
7,521,095
8,165,335
644,240
1,048,300
789,650
1,453,823
664,173
1,455,270
1,314,074
1,535,363
221,289
1,014,000
1,012,350
1,032,817
20,467
-
-
409,498
409,498
168,800
269,800
19,771
(250,029)
400,175
255,000
442,465
187,465
31,189,084
30,870,485
33,289,293
2,418,808
387,483
411,333
340,590
70,743
550,524
551,136
577,187
(26,051)
419,964
427,919
380,935
46,984
2,779,179
2,727,616
2,533,233
194,383
254,205
264,550
230,209
34,341
1,127,156
1,123,865
1,081,859
42,006
641,653
676,653
656,109
20,544
132,282
132,282
132,520
(238)
2,140,551
2,079,951
1,786,064
293,887
5,469,144
5,347,278
5,430,771
(83,493)
5,138,627
5,139,027
5,062,613
76,414
1,655,053
1,652,905
1,607,951
44,954
934,812
945,812
793,608
152,204
1,283,995
1,223,625
1,094,454
129,171
1,437,233
1,434,833
1,439,925
(5,092)
1,006,082
991,212
1,003,344
(12,132)
568,015
573,642
528,592
45,050
4,181,446
4,520,032
4,051,304
468,728
649,655
648,122
651,906
(3,784)
TOTAL EXPENDITURES
30,757,059
30,871,793
29,383,174
1,488,619
Excess (deficiency) of revenues over expenditures
432,025
(1,308)
3,906,119
3,907,427
OTHER FINANCING SOURCES (USES)
Transfers from other funds
920,362
732,798
920,362
187,564
Transfers to other funds
(2,035,000)
(2,000,000)
(2,035,000)
(35,000)
TOTAL OTHER FINANCING SOURCES (USES)
(1,114,638)
(1,267,202)
(1,114,638)
152,564
NET CHANGE IN FUND BALANCE
(682,613)
(1,268,510)
2,791,481
4,059,991
FUND BALANCES, BEGINNING OF YEAR
15,355,085
15,355,085
15,355,085
-
FUND BALANCES, END OF YEAR
$ 14,672,472
$ 14,086,575
$ 18,146,566 $
4,059,991
See Notes to Required
Supplementary Information
53
CITY OF SOUTHLAKE, TEXAS EXHIBIT A-2
CRIME CONTROL DISTRICT SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES:
Municipal sales tax
Interest
TOTAL REVENUES
EXPENDITURES
Police services
Excess of revenues
over expenditures
BUDGETED AMOUNTS
ORIGINAL FINAL
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ACTUAL (NEGATIVE)
$ 4,065,675 $ 4,065,675 $ 4,295,145 $ 229,470
20,000 50,000 181 (49,819)
4,085,675 4,115,675 4,295,326 179,651
329,500 329,500 278,322 51,178
3,756,175 3,786,175 4,017,004 230,829
OTHER FINANCING SOURCES (USES)
Transfers from other funds 743,607 743,607 743,607
Transfers to other funds (1,436,687) (1,436,687) (1,436,687)
TOTAL OTHER FINANCING
SOURCES (USES)
Net change in fund balance
Fund balance at
beginning of year
Fund balance at
end of year
See Notes to Required
Supplementary Information
(693,080) (693,080) (693,080)
3,063,095 3,093,095 3,323,924
1,307,934 1,307,934 1,307,934
230,829
$ 4,371,029 $ 4,401,029 $ 4,631,858 $ 230,829
54
CITY OF SOUTHLAKE, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2010
Budgetary Data
The City Council adheres to the following procedures in establishing the budgets reflected in the
financial statements:
1. Each year the City Manager is required to submit to the City Council, between sixty and
ninety days prior to the beginning of each fiscal year, a proposed budget for the fiscal year
beginning on the following October 1. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to October 1, the budget is legally enacted by the City Council through passage of an
ordinance.
4. Annual budgets are legally adopted for the General Fund, the Tax Increment Financing
District, Crime Control, Parks Dedication, Hotel Occupancy, Storm Water Utility, Red Light
Camera, and Southlake Parks Development Corporation Special Revenue Funds and all
Debt Service Funds on a basis consistent with accounting principles generally accepted in
the United States of America. Formal budgetary integration is not employed for proprietary
funds. However, the City does adopt an annual budget for those funds for managerial control.
Control over expenditures for the capital projects funds are maintained through general
obligation bond indenture agreements, and authorized construction contracts. Accordingly,
formal budgetary integration is not employed for the capital projects funds.
During the fiscal year, the City Council may transfer funds allocated to a department to
another department or re -estimate revenues or expenditures. The City Manager may transfer
budgeted funds within a department. Expenditures should not exceed appropriations at the
department level.
6. Budgetary data for the Police, Parks and Recreation, Court Security, Court Technology,
Library, Storm Water Maintenance, Oil and Gas Special Revenue Funds and all Capital
Projects Funds are not presented, as such funds are budgeted over the life of the respective
grant or project, and not on an annual basis. Budgetary information for the Proprietary Funds
have not been presented since reporting on such budgets is not legally required.
7. Expenditures in excess of appropriations for the year ended September 30, 2010 were:
General Fund:
City Manager's Office
$(26,051)
Police Services
$(83,493)
Streets and Drainage
$ (5,092)
Library Services
$ (3,784)
Planning
$(12,132)
Teen Court
$ (238)
55
EXHIBIT A-3
CITY OF SOUTHLAKE, TEXAS
CONDITION RATING OF STREET SYSTEM
SEPTEMBER 30, 2010
CONDITION OF ROADWAY SYSTEM
Index
2010
2007
RCI
6.4
6.5
SDI
9.3
9.3
PQI
8.5
8.3
COMPARISON OF NEEDED -TO -ACTUAL MAINTENANCE/PRESERVATION
Needed
Actual
Difference
2006
$1,250,000
1,692,640
442,640
2007
$1,250,000
1,414,597
164,597
2008
$1,250,000
1,068,540
(181,460)
2009
$1,250,000
1,457,572
207,572
2010
$1,250,000
936,158
(313,842)
Total
$6.250. 000
$6.569.507
319 5 77
The City hired a consultant to implement a pavement management system (PMS) to cover all public
streets within the City. The condition of street pavement is measured using the Asphalt Pavement Rating
Form as developed by the Asphalt Institute. The Asphalt Pavement Rating Form is based on a weighted
average of thirteen defects found in pavement surfaces. The consultant conducted a pavement condition
survey on all City owned streets. This consisted of a ride condition or roughness survey, a surface
distress survey and a deflection survey. A present status analysis was conducted using data obtained
from the pavement condition survey to determine the Ride Condition Index (RCI) and the Surface
Distress Index (SDI). These indices were then combined into the composite Pavement Quality Index
(PQI). Values of PQI can range from 0 to 10. Typical values for a newly constructed pavement range
from 9.5 to 10.0. The PQI level at which a pavement becomes in need of rehabilitation is typically in the
5.0 to 7.0 range. It is the City's policy to maintain a PQI of 7.3. Needed maintenance is calculated based
upon inspections and the pavement quality index.
In accordance with GASB Statement No. 34, the City is required to report at least one complete condition
assessment at transition using the modified approach. The condition assessment was completed by the
City and documented that the eligible infrastructure assets are being preserved at or above the condition
level established by the City. A third of the City's public streets will be assessed annually to ensure all
public streets are assessed every three years.
The City calculates needed maintenance of its street system annually. However, the scheduling of these
road projects often crosses fiscal years. Therefore, actual maintenance may be less than the calculated
needed maintenance in one fiscal year and greater than the calculated needed maintenance in the
subsequent fiscal year.
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
GENERALFUND
The General Fund is used to account for resources associated with traditional governmental
functions that are not required legally or by sound financial management to be accounted for in
another fund.
GENERAL OBLIGATION DEBT SERVICE FUND
The General Obligation Debt Service Fund is used to account for the accumulation of resources
for, and the payment of, general obligation bonds and interest from governmental resources.
GENERAL CAPITAL PROJECTS FUND
The General Capital Projects Fund was established to account for the financing and
construction of governmental fund type capital projects.
CRIME CONTROL DISTRICT SPECIAL REVENUE FUND
The Crime Control District Special Revenue Fund was established to account for the operations
of the District, which was established for the financing and development of crime control within
the City.
SOUTHLAKE PARKS DEVELOPMENT CORPORATION CAPITAL PROJECTS FUND
The Southlake Parks Development Corporation Capital Projects Fund was established to
account for the financing and construction of park projects of the Southlake Parks Development
Corporation.
CRIME CONTROL DISTRICT CAPITAL PROJECTS FUND
The Crime Control District Capital Projects Fund was established to account for the financing
and construction of projects of the Crime Control District.
TAX INCREMENT FINANCING DISTRICT SPECIAL REVENUE FUND (TIF)
The Tax Increment Financing District Special Revenue Fund was established to account for the
general operations of the TIF, which was formed to finance and make public improvements.
57
CITY OF SOUTHLAKE, TEXAS
GENERALFUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances for
estimated uncollectibles)
Taxes (Ad valorem, sales and franchise)
Interest
Other
Due from other funds
Inventories
Prepaid expenses
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities
2010
EXHIBIT B-1
2009
$ 1,765,084
$ -
17,152,878
29,306,129
2,180,812
2,126,889
104,866
115,507
88,390
24,578
-
4,092,632
27,091
144,330
3,835
9,195
$ 21,322,956 $ 35,819,260
Accounts payable $ 799,776 $ 573,656
Accrued liabilities 1,529,156 1,469,760
Due to other funds - 17,559,953
Deferred revenue 847,458 860,806
Total liabilities
Fund balance
Reserved for recycling
Reserved for police expenditures
Reserved for inventories
Reserved for prepaids
Unreserved - designated
Unreserved and undesignated
Total fund balance
TOTAL LIABILITIES AND FUND BALANCE
3,176,390 20,464,175
68,092
68,092
65,187
-
27,091
144,330
3,835
9,195
5,377,115
8,501,122
12,605,246
6,632,346
18,146,566
15,355,085
$ 21,322,956 $ 35,819,260
58
CITY OF SOUTHLAKE, TEXAS
EXHIBIT B-2
GENERALFUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES, AND
CHANGE IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
2010
2009
REVENUES
Taxes (Ad valorem, penalties and interest, sales and franchise) $
28,395,556
$ 26,671,791
Licenses, permits and fees
1,453,823
1,292,409
Charges for services
1,535,363
1,498,823
Fines and forfeitures
1,032,817
1,012,023
Grant revenue
409,498
43,962
Miscellaneous and interest
462,236
551,941
TOTAL REVENUES
33,289,293
31,070,949
EXPENDITURES
City secretary/mayor
340,590
372,945
City manager's office
577,187
557,229
Human resources
380,935
516,726
Support services
2,533,233
1,923,523
Economic development
230,209
317,471
Finance
1,081,859
1,099,041
Municipal court
656,109
617,824
Teen court
132,520
116,665
Information Technology
1,786,064
1,912,152
Police
5,430,771
5,171,702
Fire
5,062,613
4,741,459
Public safety support
1,607,951
2,084,614
Building inspection
793,608
890,156
Public works administration
1,094,454
2,273,787
Streets and drainage
1,439,925
1,610,338
Planning
1,003,344
975,588
Community services
528,592
413,786
Parks and recreation
4,051,304
3,914,015
Library services
651,906
633,333
TOTAL EXPENDITURES
29,383,174
30,142,354
Excess of revenues over expenditures
3,906,119
928,595
OTHER FINANCING SOURCES (USES)
Transfers to other funds
(2,035,000)
(3,500,000)
Transfers from other funds
920,362
1,001,686
TOTAL OTHER FINANCING SOURCES (USES)
(1,114,638)
(2,498,314)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other financing uses
2,791,481
(1,569,719)
Fund balance at beginning of year
15,355,085
16,924,804
Fund balance at end of year $
18,146,566
$ 15,355,085
59
CITY OF SOUTHLAKE, TEXAS
GENERAL OBLIGATION DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Taxes receivable (net of allowance
for estimated uncollectibles)
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Interest payable
Due to other funds
Deferred revenue
Total liabilities
Fund balance
Reserved for debt service
TOTAL LIABILITIES AND FUND BALANCE
2010
$ 5,907,921
3,377,376
85,178
417
EXHIBIT B-3
2009
9,247,596
78,298
18,176
$ 9,370,892 $ 9,344,070
$ 19,641
$ 27,743
-
580,180
84,925
78,047
104,566
685,970
9,266,326
8,658,100
$ 9,370,892 $ 9,344,070
.E
CITY OF SOUTHLAKE, TEXAS
GENERAL OBLIGATION DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Ad valorem taxes, penalties and interest
Interest
Total revenues
EXPENDITURES;
Debt Service
Principal
Interest and fiscal charges
Total expenditures
Deficiency of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Issuance of debt
Net premium (discount) on issuance of long-term debt
Payment to refund bond escrow agent
Transfers from other funds
Total other financing sources
Excess of revenues and other financing
sources over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
2010
$ 6,898,145
48,963
EXHIBIT B-4
2009
$ 7,169,364
141,057
6,947,108 7,310,421
6,250,738 4,587,773
4,751,377 4,231,227
11,002,115 8,819,000
(4,055,007) (1,508,579)
19,325,790 -
1,004,091 -
(20,120,845) -
4,454,197 3,061,311
4,663,233 3,061,311
608,226 1,552,732
8,658,100 7,105,368
$ 9,266,326 $ 8,658,100
61
CITY OF SOUTHLAKE, TEXAS EXHIBIT B-5
GENERAL OBLIGATION DEBT SERVICE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES:
Ad valorem taxes
Interest
Total revenues
EXPENDITURES:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over expenditures
OTHER FINANCING SOURCES (USES)
BUDGETED AMOUNTS
ORIGINAL FINAL ACTUAL
VARIANCE WITH
FINAL BUDGET -
POSITIVE
(NEGATIVE)
$6,664,300
$6,649,300
$ 6,898,145 $
248,845
110,000
110,000
48,963
(61,037)
6,774,300
6,759,300
6,947,108
187, 808
6,214,541
6,214,541
6,250,738
(36,197)
4,574,636
4,373,186
4,751,377
(378,191)
10, 789,177
10, 587, 727
11, 002,115
(414,388)
(4,014,877)
(3,828,427)
(4,055,007)
(226,580)
Proceeds from refunding bonds - - 19,325,790
Payment to refund bond escrow agent - - (20,120,845)
Premium on bonds issued - - 1,004,091
Transfers from other funds 4,454,197 4,454,197 4,454,197
Total other financing sources
Excess of revenues and other financing
sources over expenditures
Fund balance, beginning of year
Fund balance, end of year
19, 325, 790
(20,120, 845)
1,004,091
4,454,197 4,454,197 4,663,233 209,036
439,320 625,770 608,226 (17,544)
8,658,100 8,658,100 8,658,100
$ 9,097,420 $ 9,283,870 $ 9,266,326 $ (17,544)
CITY OF SOUTHLAKE, TEXAS
GENERAL CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
EXHIBIT B-6
2010 2009
Cash and cash equivalents $ 23,169,646 $ -
Investments 11,135, 551 29, 001, 505
Due from other funds - 4,407,633
Interest receivable 43,102 65,067
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Total liabilities
Fund balance
Reserved for capital projects
TOTAL LIABILITIES AND FUND BALANCE
$ 34,348,299 $ 33,474,205
$ 1,243,621 $ 364,199
1,243,621 364,199
33,104, 678 33,110, 006
$ 34,348,299 $ 33,474,205
63
CITY OF SOUTHLAKE, TEXAS
GENERAL CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS SEPTEMBER 30, 2010 AND 2009
REVENUES:
Capital recovery fees
Contributions
Interest
Total revenues
EXPENDITURES:
Public works:
Administration and streets and drainage
Capital outlay
Debt service:
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Premium on issuance of long-term debt
Issuance of debt
Total other financing sources (uses)
Excess (deficiency) of revenues and otherfinancing
sources over expenditures and other financing uses
Fund balance at beginning of year
Fund balance at end of year
EXHIBIT B-7
2010 2009
$ 295,987 $ 267,036
23,039 71,790
167,224 568,270
486,250 907,096
864,201 1,479,405
5,901,815 3,002,965
54,387 84,773
6,820,403 4,567,143
(6,334,153) (3,660,047)
1,900,000
3,500,000
73,825
154,227
4,355,000
4,935,000
6,328,825
8,589,227
(5,328) 4,929,180
33,110,006 28,180,826
$ 33,104,678 $ 33,110,006
64
CITY OF SOUTHLAKE, TEXAS
EXHIBIT B-8
CRIME CONTROL DISTRICT SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
2010
2009
ASSETS
Investments
$
3,850,138
$
12,827,947
Sales tax receivable
727,359
683,488
Interest receivable
62,098
63,302
TOTAL ASSETS
$
4,639,595
$
13,574,737
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
$
7,737
$
-
Due to other funds
-
12,266,803
Total liabilities
7,737
12,266,803
Fund balance
Reserved for police expenditures
4,631,858
1,307,934
TOTAL LIABILITIES AND FUND BALANCE
$
4,639,595
$
13,574,737
65
CITY OF SOUTHLAKE, TEXAS
CRIME CONTROL DISTRICT SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Municipal sales tax
Interest
Total revenues
EXPENDITURES:
Public safety:
Police services
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Transfers from other funds
Transfers to other funds
Total other financing sources (uses)
Excess (deficiency) of revenues over expenditures
and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
2010
EXHIBIT B-9
2009
4,295,145 $ 4,301,094
181 56,628
4,295,326 4,357,722
278,322 64,037
278,322 64,037
4,017,004 4,293,685
743,607 743,607
(1,436,687) (7,325,250)
(693,080) (6,581,643)
3,323,924 (2,287,958)
1,307,934 3,595,892
$ 4,631,858 $ 1,307,934
CITY OF SOUTHLAKE, TEXAS
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Due from other funds
Interest receivable
TOTAL ASSETS
Liabilities
Accounts payable
Total liabilities
Fund balance
Reserved for capital projects
TOTAL LIABILITIES AND FUND BALANCE
EXHIBIT B-10
2010 2009
$ 9,134,544 $ -
26,667 1,356,814
- 9,280,426
4,045 11,547
$ 9,165,256 $ 10,648,787
$ 1,031,450 $ 40,357
1,031,450 40,357
8,133,806 10,608,430
$ 9,165,256 $ 10,648,787
67
CITY OF SOUTHLAKE, TEXAS
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Miscellaneous
Total revenues
Expenditures:
Capital outlay
Debt service:
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Issuance of debt
Premium on issuance of debt
Transfer from other funds
Total other financing sources (uses)
Excess (deficiency) of revenues over expenditures
and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT B-11
2010 2009
$ 60,462 $ 146,565
70,090 93,498
130,552 240,063
8,643,650 1,510,470
37,365 101,616
8,681,015 1,612,086
(8,550,463) (1,372,023)
3,245,000
5,915,000
54,839
185,208
2,776,000
1,065,000
6,075,839
7,165,208
(2,474,624) 5,793,185
10,608,430 4,815,245
$ 8,133,806 $ 10,608,430
W.
CITY OF SOUTHLAKE, TEXAS
CRIME CONTROL DISTRICT CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Investments
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Total liabilities
Fund balance
Reserved for capital projects
TOTAL LIABILITIES AND FUND BALANCE
2010
$ 1,588,131
EXHIBIT B-12
2009
$ 2,268,895
4,650,341
$ 1,588,131 $ 6,919,236
$ 135,245 2,040,173
135,245 2,040,173
1,452,886 4,879,063
$ 1,588,131 $ 6,919,236
.•
CITY OF SOUTHLAKE, TEXAS
CRIME CONTROL DISTRICT CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Total revenues
EXPENDITURES:
Capital outlay
Interest and fiscal charges
Total expenditures
Deficiency of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Issuance of debt
Premium on issuance of long-term debt
Transfers from other funds
Total other financing sources
Deficiency of revenues and other
financing sources over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT B-13
2010 2009
$ 45,660 $ 109,220
45,660 109,220
6,484,635 18,406,043
30,817 82,665
6,515,452 18,488,708
(6,469,792) (18,379,488)
2,855,000 7,575,000
188,615 506,704
- 7,325,250
3,043,615 15,406,954
(3,426,177) (2,972,534)
4,879,063 7,851,597
$ 1,452,886 $ 4,879,063
70
CITY OF SOUTHLAKE, TEXAS
TAX INCREMENT FINANCING DISTRICT SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Total liabilities
Fund balance
Reserved for reinvestment zone expenditures
TOTAL LIABILITIES AND FUND BALANCE
2010
$ 5,462,257
3,338
EXHIBIT B-14
2009
835,374
3,027,661
$ 5,465,595 $ 3,863,035
$ - $ 4,903
- 4,903
5,465,595 3,858,132
$ 5,465,595 $ 3,863,035
71
CITY OF SOUTHLAKE, TEXAS
TAX INCREMENT FINANCING DISTRICT SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Ad valorem taxes, penalties and interest
Interest
Total revenues
EXPENDITURES:
Public works:
Public works administration
Intergovernmental
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Total other financing sources (uses)
Excess of revenues over expendutu res
and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT B-15
2010 2009
$ 7,773,841 $ 7,784,162
14,974 68,542
7,788,815 7,852,704
- 109,843
3,158,243 3,220,906
3,158,243 3,330,749
4,630,572 4,521,955
(3,023,109) (3,367,103)
(3,023,109) (3,367,103)
1,607,463 1,154,852
3,858,132 2,703,280
$ 5,465,595 $ 3,858,132
72
CITY OF SOUTHLAKE, TEXAS EXHIBIT B-16
TAX INCREMENT FINANCING DISTRICT SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
BUDGETED AMOUNTS
ORIGINAL FINAL
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ACTUAL (NEGATIVE)
REVENUES
Ad valorem taxes, penalties and interest
$ 7,773,841
$ 3,263,145
$ 7,773,841 $
4,510,696
Interest
30,000
45,000
14,974
(30,026)
Total revenues
7,803,841
3,308,145
7,788,815
4,480,670
EXPENDITURES:
Intergovernmental
3,158,242
-
3,158,243
(3,158,243)
Total expenditures
3,158,242
-
3,158,243
(3,158,243)
Excess of revenues
over expenditures
4,645,599
3,308,145
4,630,572
1,322,427
OTHER FINANCING SOURCES (USES)
Transfers to other funds
(4,276,832)
(2,823,109)
(3,023,109)
(200,000)
Total other financing sources (uses)
(4,276,832)
(2,823,109)
(3,023,109)
(200,000)
Excess of revenues over expenditures
and other financing uses 368,767 485,036 1,607,463
Fund balance at
beginning of year 3,858,132 3,858,132 3,858,132
1,122,427
Fund balance at
end of year $ 4,226,899 $4,343,168 $5,465,595 $ 1,122,427
73
NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for revenue sources that are legally restricted to
expenditures for specified purposes.
Police Fund -- Established to account for resources required to be utilized by the police department.
Parks and Recreation Fund — Established to account for resources restricted for use by the parks
and recreation department.
Parks Dedication Fund — Established to account for resources restricted for use by the parks
department.
Southlake Parks Development Corporation Special Revenue Fund — Established to account for
the general operations of the non-profit corporation established to finance, develop and operate park
and recreational facilities.
Hotel Occupancy Fund - The Hotel Occupancy Tax Fund accounts for all revenues and
expenditures relating to the hotel occupancy tax received by the City. This was a new fund
established by the City in 2007.
Storm Water Utility Fund — This fund is used to account for fees collected for the purpose of
improving, upgrading and maintaining the City's drainage system. The City is mandated by the Texas
Commission on Environmental Quality (TCEQ) to develop and maintain a Storm Water Management
Plan in order to address capacity and quality issues and protect its residents and their properties from
possible flooding and pollution problems. Drainage fees are collected by residents to fund the
activities required to comply with TCEQ regulations.
Court Security Fund — Established to account for municipal court fees assessed to provide for court
security.
Court Technology Fund — Established to account for municipal court fees assessed to provide for
court technology.
Library Fund — Established to account for resources donated for use by library services.
Red Light Camera Fund — The Red Light Camera Fund is used to account for fees assessed for red
light violations captured through the City's camera monitoring system.
Storm Water Maintenance Fund- The Storm Water Maintenance Fund is used to account for the
maintenance on storm water infrastructure.
Oil and Gas Fund- The Oil and Gas Fund is used to account for permits fees and the related
expenditures for oil and gas drilling.
74
DEBT SERVICE FUNDS
The Debt Service Funds are utilized to account for the accumulation of financial resources for, and the
payment of, general long-term debt principal, interest, and related costs arising from the issuance of
bonds.
Southlake Parks Development Corporation Debt Service Fund — Established to accumulate
resources to finance the debt service of debt issues of the Southlake Parks Development
Corporation.
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are utilized to account for financial resources to be used for the acquisition or
construction of specified capital improvements (other than those financed by proprietary funds).
Tax Increment Financing District Capital Projects Fund — The Tax Increment Financing District
capital projects fund was established to account for the financing and construction of projects of the
Tax Increment Financing District.
75
CITY OF SOUTHLAKE, TEXAS
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2010
ASSETS
Cash and cash equivalents
Investments
Accounts receivable
Sales tax receivable
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES (DEFICIT)
LIABILITIES
Accounts payable
Accrued liabilities
TOTAL LIABILITIES
Southlake
Parks Parks
and Parks Development
Police Recreation Dedication Corporation
$ 6,497 $ 235 $ - $ 6,985,908
5,922 38,772 233,453 80,005
- - - 25,820
- - - 760,985
28 239 3,253 17,336
$12,447 $ 39,246 $ 236,706 $ 7,870,054
$ 6,459 $ - $ - $ 4,474
- - - 4,586
6,459 - - 9,060
FUND BALANCES (DEFICIT)
Reserved for police expenditures 5,988 - - -
Reserved for parks - 39,246 236,706 7,860,994
Reserved for oil and gas expenditures - - - -
Reserved for municipal court expenditures - - - -
Reserved for storm water expenditures - - - -
Reserved for debt service - - - -
Reserved for capital projects - - - -
Unreserved:
Undesignated - - - -
TOTAL FUND BALANCES (DEFICIT) 5,988 39,246 236,706 7,860,994
TOTAL LIABILITIES AND FUND BALANCES (DEFICIT) $12,447 $ 39,246 $ 236,706 $ 7,870,054
WE
SPECIAL REVENUE
EXHIBIT C-1
CONTINUED
Storm
Hotel
Water
Court
Court
Red Light
Occupancy
Utility
Security
Technology
Library Camera
$1,032,688
$1,487,978
$227,400
$ 178,779
$ - $ 577,504
3,357
5,846
209,505
172,404
1,188 -
-
176,105
-
-
- 87,316
60,126
-
-
-
- -
-
215
1,232
781
- -
$ 1, 096,171
$ 1, 670,144
$ 438,137
$ 351,964
$1,188 $ 664,820
$ 2,836 $ 41,101 $ 4,532 $ 18,105 $1,199 $ 339,651
5,406 4,492 - - - 1,793
8,242 45,593 4,532 18,105 1,199 341,444
- - - - - 323,376
- - 433,605 333,859 - -
1,087,929 1,624,551 - - - -
1,087,929 1,624,551 433,605 333,859 (11) 323,376
$ 1, 096,171 $ 1, 670,144 $ 438,137 $ 351,964 $1,188 $ 664,820
77
CITY OF SOUTHLAKE, TEXAS
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2010
SPECIAL DEBT
REVENUE SERVICE
Southlake
Parks
Storm Water Oil and Development
Maintenance Gas Corporation
ASSETS
EXHIBIT C-1
CONCLUDED
CAPITAL
PROJECTS
Tax
TOTAL
Increment
NON -MAJOR
Financing
GOVERNMENTAL
District
FUNDS
Cash and cash equivalents $
150,000
$44,149
$ 1,495,885
$ - $
12,187,023
Investments
-
-
11,624
27,713
789,789
Accounts receivable
-
-
289,241
Sales tax receivable
-
-
-
821,111
Interest receivable
-
91
3,878
1,753
28,806
TOTAL ASSETS
150,000
44,240
1,511,387
29,466
14,115,970
LIABILITIES AND FUND BALANCES (DEFICIT)
LIABILITIES
Accounts payable
-
-
-
-
418,357
Accrued liabilities
8,950
25,227
TOTAL LIABILITIES
8,950
443,584
FUND BALANCES (DEFICIT)
Reserved for police expenditures
-
329,364
Reserved for parks
-
8,136,946
Reserved for oil and gas expenditures
44,240
44,240
Reserved for municipal court expenditures
-
-
767,464
Reserved for storm water expenditures
150,000
-
150,000
Reserved for debt service
-
1,502,437
-
1,502,437
Reserved for capital projects
-
29,466
2,741,946
Unreserved:
Undesignated
-
-
-
-
(11)
TOTAL FUND BALANCES (DEFICIT)
150,000
44,240
1,502,437
29,466
13,672,386
TOTAL LIABILITIES AND
FUND BALANCES (DEFICIT) $
150,000
$44,240
$ 1,511,387
$ 29,466
14,115,970
78
CITY OF SOUTHLAKE, TEXAS
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Southlake
Parks
Parks
and
Parks
Development
Police
Recreation
Dedication
Corporation
REVENUES
Municipal sales tax
$ -
$ -
$ -
$ 4,443,577
Licenses, permits and fees
-
-
95,222
-
Fines and forfeitures
-
-
-
-
Interest
66
155
1,780
29,038
Contributions
-
1,440
-
-
Miscellaneous
-
-
-
153,824
Total revenues
66
1,595
97,002
4,626,439
EXPENDITURES
Current:
General government
Court technology
-
-
-
-
Support services
-
-
-
-
Public safety
Police services
-
-
-
-
Cultural and recreation
Parks and recreation
-
-
29,886
265,479
Library services
-
-
-
-
Capital outlay
-
-
-
-
Debt service:
Principal retirement
-
-
-
-
Interest and fiscal charges
-
-
-
-
Total expenditures
-
-
29,886
265,479
Excess (deficiency) of revenues over
expenditures
66
1,595
67,116
4,360,960
OTHER FINANCING SOURCES (USES)
Transfers from other funds
-
-
-
-
Transfers to other funds
-
-
(276,000)
(5,810,356)
Total other financing sources (uses)
-
-
(276,000)
(5,810,356)
NET CHANGE IN FUND BALANCES
66
1,595
(208,884)
(1,449,396)
FUND BALANCES, BEGINNING OF YEAR
5,922
37,651
445,590
9,310,390
FUND BALANCES (DEFICIT), END OF YEAR
$ 5,988
$ 39,246
$ 236,706
$ 7,860,994
79
EXHIBIT C-2
CONTINUED
SPECIAL REVENUE
Storm
Hotel
Water
Court
Court
Red Light
Occupancy
Utility
Security
Technology
Library
Camera
$ 706,724
$ -
$ -
$ -
$ -
$ -
-
1,244,531
-
-
-
-
-
-
32,074
42,677
-
1,008,837
7,355
9,713
2,054
1,789
28
-
-
-
-
-
10,220
-
714,079
1,254,244
34,128
44,466
10,248
1,008,837
- - - 38,105 - -
- - - 8,249 - 804,303
504,032 - - - - -
- - - - 10,153 -
- 594,406 11,511 - - -
504,032 594,406 11,511 46,354 10,153 804,303
210,047 659,838 22,617 (1,888) 95 204,534
(86,889) (481,781) - - - -
(86,889) (481,781) - - - -
123,158 178,057 22,617 (1,888) 95 204,534
964,771 1,446,494 410,988 335,747 (106) 118,842
$ 1,087,929 $ 1,624,551 $ 433,605 $ 333,859 $ (11) $ 323,376
all
CITY OF SOUTHLAKE, TEXAS
NON -MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
EXHIBIT C-2
CONCLUDED
SPECIAL
DEBT
CAPITAL
REVENUE
SERVICE
PROJECTS
Southlake
Tax
TOTAL
Parks
Increment
NON -MAJOR
Storm Water Oil
and
Development
Financing
GOVERNMENTAL
Maintenance
Gas
Corporation
District
FUNDS
REVENUES
Municipal sales tax $ $
-
$
$
$ 5,150,301
Licenses, permits and fees
60,500
1,400,253
Fines and forfeitures
-
1,083,588
Interest
45
19,325
740
72,088
Contributions
-
-
1,440
Miscellaneous
164,044
Total revenues
60,545
19,325
740
7,871,714
EXPENDITURES
Current:
General government
Court technology
-
38,105
Support services
16,305
16,305
Public safety
Police services
-
812,552
Cultural and recreation
Parks and recreation
799,397
Library services
10,153
Capital outlay
-
605,917
Debt service:
Principal retirement
1,310,000
1,310,000
Interest and fiscal charges
-
1,113,300
1,113,300
Total expenditures
16,305
2,423,300
4,705,729
Excess (deficiency) of revenues over
expenditures -
44,240
(2,403,975)
740
3,165,985
OTHER FINANCING SOURCES (USES)
Transfers from other funds 150,000
-
2,566,749
-
2,716,749
Transfers to other funds -
(6,655,026)
Total other financing sources (uses) 150,000
2,566,749
(3,938,277)
NET CHANGE IN FUND BALANCES 150,000
44,240
162,774
740
(772,292)
FUND BALANCES, BEGINNING OF YEAR -
1,339,663
28,726
14,444,678
FUND BALANCES, END OF YEAR $ 150,000 $
44,240
$ 1,502,437
$ 29,466
$ 13,672,386
81
CITY OF SOUTHLAKE, TEXAS
POLICE SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balance
Reserved for police expenditures
TOTAL LIABILITIES AND FUND BALANCE
2010
$ 6,497
5,922
28
EXHIBIT C-3
2009
13,727
34
$ 12,447 $ 13,761
6,459
$ 6,459
1,380
6,459 7,839
5,988 5,922
$ 12,447 $ 13,761
CITY OF SOUTHLAKE, TEXAS
POLICE SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Total revenues
EXPENDITURES:
Public safety:
Police services
Total expenditures
Excess of revenues over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-4
2010 2009
$ 66 $ 232
66 232
66 232
5,922 5,690
$ 5,988 $ 5,922
83
CITY OF SOUTHLAKE, TEXAS
PARKS AND RECREATION SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Due to other funds
Total liabilities
Fund balance
Reserved for parks
TOTAL LIABILITIES AND FUND BALANCE
2010
$ 235
38,772
239
EXHIBIT C-5
2009
65,707
257
$ 39,246 $ 65,964
$ 28,313
28,313
39,246 37,651
$ 39,246 $ 65,964
84
CITY OF SOUTHLAKE, TEXAS
PARKS AND RECREATION SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Contributions
Total revenues
Excess of revenues over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-6
2010 2009
$ 155 $ 686
1,440 1,784
1,595 2,470
1,595 2,470
37,651 35,181
$ 39,246 $ 37,651
85
CITY OF SOUTHLAKE, TEXAS
PARKS DEDICATION SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Investments
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Due to other funds
Total liabilities
Fund balance
Reserved for parks
TOTAL LIABILITIES AND FUND BALANCE
2010
EXHIBIT C-7
2009
$ 233,453 $ 973,278
3,253 3,721
$ 236,706 $ 976,999
$ - $ 531,409
531,409
236,706 445,590
$ 236,706 $ 976,999
CITY OF SOUTHLAKE, TEXAS
PARKS DEDICATION SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Park fees
Interest
Total revenues
EXPENDITURES:
Cultural and recreation:
Parks and recreation
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Total other financing sources (uses)
Excess (deficiency) of revenues and other financing sources over
expenditures and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-8
2010
2009
$ 95,222
$ 31,017
1,780
7,575
97,002
38,592
29,886
-
29,886
-
67,116
38,592
(276,000)
-
(276,000)
-
(208,884) 38,592
445,590 406,998
$ 236,706 $ 445,590
87
CITY OF SOUTHLAKE, TEXAS EXHIBIT C-9
PARKS DEDICATION SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
VARIANCE WITH
BUDGETED AMOUNTS FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Park fees $ 98,000 $ 30,000 $ 95,222 $ 65,222
Interest 5,000 6,000 1,780 (4,220)
Total revenues 103,000 36,000 97,002 61,002
EXPENDITURES:
Parks and recreation 30,000 30,000 29,886 114
Total expenditures 30,000 30,000 29,886 114
Excess of revenues over expenditures 73,000 6,000 67,116 61,116
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Total other financing sources (uses)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
(276,000)
(276,000)
(276,000) -
(276,000)
(276,000)
(276,000) -
(203,000)
(270,000)
(208,884) 61,116
445,590
445,590
445,590 -
$ 242, 590 $ 175, 590 $ 236, 706 $
61.116
CITY OF SOUTHLAKE, TEXAS
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
EXHIBIT C-10
2010
2009
ASSETS
Cash and cash equivalents
$ 6,985,908
$ -
Investments
80,005
2,026,865
Accounts receivable
25,820
12,819
Sales tax receivable
760,985
713,624
Due from other funds
-
6,535,414
Interest receivable
17,336
25,625
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Accrued liabilities
Total liabilities
Fund balance:
Reserved for parks
TOTAL LIABILITIES AND FUND BALANCE
$ 7,870,054 $ 9,314,347
$ 4,474 $ 30
4,586 3,927
9,060 3,957
7,860,994 9,310,390
$ 7,870,054 $ 9,314,347
•
CITY OF SOUTHLAKE, TEXAS
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Municipal sales tax
Interest
Miscellaneous
Total revenues
EXPENDITURES:
Cultural and recreation:
Parks and recreation
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Total other financing sources (uses)
Excess (deficiency) of revenues over expenditures
and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-11
2010 2009
$ 4,443,577 $ 4,360,934
29,038 215,823
153,824 153,824
4,626,439 4,730,581
265,479 203,009
265,479 203,009
4,360,960 4,527,572
(5,810,356) (3,965,612)
(5,810,356) (3,965,612)
(1,449,396) 561,960
9,310,390 8,748,430
$ 7,860,994 $ 9,310,390
CITY OF SOUTHLAKE, TEXAS
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES:
Municipal sales tax
Miscellaneous
Interest
Total revenues
EXPENDITURES
Parks and recreation
Excess of revenues
over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Excess (deficiency) of
revenues over expenditures
and other uses
Fund balance at
beginning of year
Fund balance at
end of year
BUDGETED AMOUNTS
ORIGINAL FINAL
EXHIBIT C-12
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ACTUAL (NEGATIVE)
$ 4,094,340 $ 4,094,340 $ 4,443,577 $ 349,237
153,816 153,816 153,824 8
100,000 150,000 29,038 (120,962)
4,348,156 4,398,156 4,626,439 228,283
271,895 216,895 265,479 (48,584)
4,076,261 4,181,261 4,360,960
(5,810,356) (5,810,356) (5,810,356)
(1,734,095) (1,629,095) (1,449,396)
9,310,390 9,310,390 9,310,390
179,699
179,699
$ 7,576,295 $ 7,681,295 $ 7,860,994 $ 179,699
91
CITY OF SOUTHLAKE, TEXAS
HOTEL OCCUPANCY SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
I_F&9 A &
EXHIBIT C-13
2010 2009
Cash and cash equivalents $ 1,032,688 $ -
Investments 3,357 157,684
Sales tax receivable 60,126 69,292
Due from other funds - 754,376
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Accrued liabilities
Total liabilities
Fund balance:
Reserved for capital projects
TOTAL LIABILITIES AND FUND BALANCE
$ 1,096,171 $ 981,352
$ 2,836 $ 14,410
5,406 2,171
8,242 16,581
1,087,929
964,771
$ 1,096,171 $ 981,352
CITY OF SOUTHLAKE, TEXAS
HOTEL OCCUPANCY SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Municipal sales tax
Interest
Total revenues
EXPENDITURES:
Cultural and recreation:
Parks and recreation
Total expenditures
Excess of revenues over expenditures
Other financing uses
Transfers to other funds
Total other financing uses
Excess of revenues over expenditures
and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-14
2010 2009
$ 706,724 $ 664,659
7,355 16,323
714,079 680,982
504,032 327,602
504,032 327,602
210,047 353,380
(86,889) (80,426)
(86,889) (80,426)
123,158 272,954
964,771 691,817
$ 1,087,929 $ 964,771
93
CITY OF SOUTHLAKE, TEXAS
EXHIBIT C-15
HOTEL OCCUPANCY SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
VARIANCE WITH
BUDGETED AMOUNTS
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL
ACTUAL (NEGATIVE)
REVENUES:
Municipal sales tax
Interest
Total revenues
EXPENDITURES:
Parks and recreation
Excess of revenues
over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Excess of revenues over
expenditures and other uses
Fund balance at
beginning of year
Fund balance at
end of year
$ 646,313
$ 646,313
$ 706,724 $
60,411
11,000
11,000
7,355
(3,645)
657,313
657,313
714,079
56,766
195,475
192,975
504,032
(311,057)
461,838
464,338
210,047
(254,291)
-
(86,889)
(86,889)
-
461,838 377,449 123,158
964,771 964,771 964,771
(254,291)
$ 1,426,609 $ 1,342,220 $ 1,087,929 $ (254,291)
94
CITY OF SOUTHLAKE, TEXAS
STORM WATER UTILITY SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Accounts receivable
Due from other funds
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Accrued liabilities
Total liabilities
Fund balance:
Reserved for capital projects
TOTAL LIABILITIES AND FUND BALANCE
EXHIBIT C-16
2010 2009
$ 1,487,978 $ -
5,846 388,317
176,105 179,223
- 917,442
215 -
$ 1,670,144 $ 1,484,982
$ 41,101 $ 33,529
4,492 4,959
45,593 38,488
1,624,551 1,446,494
$ 1,670,144 $ 1,484,982
95
CITY OF SOUTHLAKE, TEXAS
STORM WATER UTILITY SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Licenses, permits and fees
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Total other financing uses
Excess of revenues over expenditures
and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-17
2010 2009
$ 9,713 $ 20,529
1,244,531 1,224,102
1,254,244 1,244,631
594,406 426,062
594,406 426,062
659,838 818,569
(481,781) (218,408)
(481,781) (218,408)
178,057 600,161
1,446,494 846,333
$ 1,624,551 $ 1,446,494
CITY OF SOUTHLAKE, TEXAS EXHIBIT C-18
STORM WATER UTILITY SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
VARIANCE WITH
BUDGETED AMOUNTS FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Interest
Licenses, permits and fees
Total revenues
EXPENDITURES:
Capital outlay
Excess of revenues
over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Excess (deficiency) of revenues over
expenditures and other uses
Fund balance at
beginning of year
Fund balance at
end of year
$ 16,000 $ 15,000 $ 9,713 $ (5,287)
1,230,000 1,210,000 1,244,531 34,531
1,246,000 1,225,000 1,254,244 29,244
796,513 796,513 594,406 202,107
449,487 428,487 659,838 231,351
(481,781) (480,701) (481,781) (1,080)
(32,294) (52,214) 178,057
1,446,494 1,446,494 1,446,494
230,271
$ 1,414,200 $ 1,394,280 $ 1,624,551 $ 230,271
97
CITY OF SOUTHLAKE, TEXAS
COURT SECURITY SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balance
Reserved for municipal court expenditures
TOTAL LIABILITIES AND FUND BALANCE
2010
EXHIBIT C-19
2009
$ 227,400 $ -
209,505 480,841
1,232 1,404
$ 438,137 $ 482,245
$ 4,532 $ -
- 71,257
4,532 71,257
433,605 410,988
$ 438,137 $ 482,245
CITY OF SOUTHLAKE, TEXAS
COURT SECURITY SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Fines and forfeitures
Interest
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
Excess of revenues over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-20
2010 2009
$ 32,074 $ 29,076
2,054 7,416
34,128 36,492
11,511
11,511
22,617
36,492
410,988 374,496
$ 433,605 $ 410,988
. •
CITY OF SOUTHLAKE, TEXAS
COURT TECHNOLOGY SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Due to other funds
Accrued liabilities
Total liabilities
Fund balance
Reserved for municipal court expenditures
TOTAL LIABILITIES AND FUND BALANCE
2010
$ 178,779
172,404
781
EXHIBIT C-21
2009
392,478
951
$ 351,964 $ 393,429
$ 18,105 $ -
- 48,107
- 9,575
18,105 57,682
333,859 335,747
$ 351,964 $ 393,429
100
CITY OF SOUTHLAKE, TEXAS
COURT TECHNOLOGY SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Fines and forfeitures
Interest
Total revenues
EXPENDITURES:
Court technology
Public safety
Total expenditures
Excess of revenues over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-22
2010 2009
$ 42,677 $ 38,432
1,789 6,244
44,466 44,676
38,105 -
8,249 18,411
46,354 18,411
(1,888) 26,265
335,747 309,482
$ 333,859 $ 335,747
101
CITY OF SOUTHLAKE, TEXAS
LIBRARY SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Investments
TOTAL ASSETS
LIABILITIES AND FUND BALANCE (DEFICIT)
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund balance (deficit)
Unrestricted deficit
TOTAL LIABILITIES AND FUND BALANCE
EXHIBIT C-23
2010 2009
$
1,188
$
2,931
$
1,188
$
2,931
$ 1,199 $
1,610
-
1,427
1,199
3,037
(11)
(106)
$ 1,188 $
2,931
102
CITY OF SOUTHLAKE, TEXAS
LIBRARY SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Miscellaneous
Total revenues
EXPENDITURES:
Cultural and recreation:
Library services
Total expenditures
Excess of revenues over expenditures
Fund deficit at
beginning of year
Fund deficit at
end of year
EXHIBIT C-24
2010 2009
$ 28 $ 42
10,220 6,146
10,248 6,188
10,153 5,747
10,153 5,747
95
441
(106) (547)
$ (11) $ (106)
103
CITY OF SOUTHLAKE, TEXAS EXHIBIT C-25
RED LIGHT CAMERA SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEETS
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Accrued liabilities
Total liabilities
Fund balance
Reserved for police expenditures
TOTAL LIABILITIES AND FUND BALANCE
2010 2009
$ 577,504 $ -
87,316 113,589
- 291,253
$ 664,820 $ 404,842
$ 339,651
1,793
$ 286,000
341,444 286,000
323,376 118,842
$ 664,820 $ 404,842
104
CITY OF SOUTHLAKE, TEXAS
RED LIGHT CAMERA SPECIAL REVENUE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Fines and forfeitures
Total revenues
EXPENDITURES:
Public safety:
Police services
Total expenditures
Excess of revenues over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-26
2010 2009
$ 1,008,837 $
574,503
1,008,837
574,503
804,303
455,661
804,303
455,661
204,534
118,842
118,842
-
$ 323,376 $
118,842
105
CITY OF SOUTHLAKE, TEXAS
EXHIBIT C-27
RED LIGHT CAMERA SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
VARIANCE WITH
BUDGETED AMOUNTS
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL
ACTUAL (NEGATIVE)
REVENUES:
Fines and forfeitures $ 600,000 $ 1,092,911
$ 1,008,837 $ (84,074)
Interest - 2,500
- (2,500)
Total revenues 600,000 1,095,411
1,008,837 (86,574)
EXPENDITURES:
Public safety
523,000
815,200
804,303
10,897
Total expenditures
523,000
815,200
804,303
10,897
Excess of revenues
77,000
280,211
204,534
(75,677)
over expenditures
Fund balance, beginning of year
118,842
118,842
118,842
-
Fund balance, end of year
$ 195,842
$ 399,053
$ 323,376 $
(75,677)
106
CITY OF SOUTHLAKE, TEXAS EXHIBIT C-28
SOUTHLAKE PARKS DEVELOPMENT CORPORATION DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Cash and cash equivalents
Investments
Due from other funds
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Accrued liabilities
Total liabilities
Fund balance:
Reserved for debt service
TOTAL LIABILITIES AND FUND BALANCE
2010
2009
$
1,495,885
$
-
11,624
365,356
-
983,424
3,878
4,340
$
1,511,387
$
1,353,120
$
8,950
$
13,457
8,950
13,457
1,502,437
1,339,663
$
1,511,387
$
1,353,120
107
CITY OF SOUTHLAKE, TEXAS EXHIBIT C-29
SOUTHLAKE PARKS DEVELOPMENT CORPORATION DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Total revenues
EXPENDITURES:
Debt Service
Principal
Interest and fiscal charges
Total expenditures
Deficiency of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Transfers from other funds
Total other financing sources
Excess of revenues and other financing
sources over expenditures
Fund balance at
beginning of year
Fund balance at
end of year
2010 2009
$ 19,325
$ 28,766
19,325
28,766
1,310,000
1,130,000
1,113,300
1,005,518
2,423,300
2,135,518
(2,403,975) (2,106,752)
2,566,749 2,157,005
2,566,749 2,157,005
162,774 50,253
1,339,663 1,289,410
$ 1,502,437 $ 1,339,663
108
CITY OF SOUTHLAKE, TEXAS EXHIBIT C-30
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
DEBT SERVICE FUND
BUDGETARY COMPARISON SCHEDULE (GAAP BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
VARIANCE WITH
BUDGETED AMOUNTS FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Interest $ 30,000 $ 20,000 $ 19,325 $ (675)
Total revenues 30,000 20,000 19,325 (675)
EXPENDITURES:
Principal retirement 1,310,000 1,310,000 1,310,000 -
Interest and fiscal charges 1,256,749 1,256,749 1,113,300 143,449
Total expenditures 2,566,749 2,566,749 2,423,300 143,449
Deficiency of revenues over expenditures (2,536,749) (2,546,749) (2,403,975) 142,774
OTHER FINANCING SOURCES (USES):
Transfers from other funds 2,566,749 2,566,749 2,566,749
Total other financing sources
Excess of revenues and
other financing sources
over expenditures
Fund balance, beginning of year
Fund balance, end of year
2,566,749 2,566,749 2,566,749
30,000 20,000 162,774 142,774
1,339,663 1,339,663 1,339,663
$ 1,369,663 $ 1,359,663 $ 1,502,437 $ 142,774
109
CITY OF SOUTHLAKE, TEXAS
TAX INCREMENT FINANCING DISTRICT
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2010 AND 2009
ASSETS
Investments
Interest receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Due to other funds
Total liabilities
Fund balance
Reserved for capital projects
TOTAL LIABILITIES AND FUND BALANCE
2010
EXHIBIT C-31
2009
$
27,713
$
457,533
1,753
1,767
$
29,466
$
459,300
$
-
$
430,574
-
430,574
29,466
28,726
$
29,466
$
459,300
110
CITY OF SOUTHLAKE, TEXAS
TAX INCREMENT FINANCING DISTRICT
CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
REVENUES:
Interest
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES):
Transfers to other funds
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses
Fund balance at
beginning of year
Fund balance at
end of year
EXHIBIT C-32
2010 2009
$ 740 $ 6,481
740 6,481
- 492,450
- 492,450
740 (485,969)
- (57,550)
- (57,550)
740 (543,519)
28,726 572,245
$ 29,466 $ 28,726
111
MAJOR ENTERPRISE FUND
The Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises where the intent is that the costs of providing goods or services to
the general public on a continuing basis be financed or recovered primarily through user charges; or
where the City's council has decided that periodic determination of net income is appropriate for
accountability purposes.
Water and Sewer Fund — To account for the provision of water and sewer services to the residents of the
City.
112
CITY OF SOUTHLAKE, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE STATEMENTS OF NET ASSETS
SEPTEMBER 30, 2010 AND 2009
EXHIBIT D-1
2010
2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$ 111,972
$
Investments
7,660,332
35,880,024
Receivables, net of allowance for uncollectibles:
Trade accounts
3,305,763
2,259,391
Unbilled trade accounts
1,355,905
1,171,340
Interest
71,634
92,097
Special assessments
3,028
1,963
Due from other funds
-
3,401,088
Prepaid expenses
628
-
Restricted assets
Cash restricted for capital
9,973,794
Investments restricted for customer meter deposits
186,607
-
Investments restricted for capital
13,354,362
147,713
Total current assets
36,024,025
42,953,616
NON -CURRENT ASSETS
Capital assets
Land and improvements
14,471,242
13,868,508
Buildings and improvements
887,424
887,424
Distribution system
107,886,940
100,352,194
Equipment
1,664,392
1,831,341
Vehicles
329,881
378,963
Capacity rights
9,190,988
9,190,988
Construction in progress
7,596,050
6,895,614
Total capital assets
142,026,917
133,405,032
Less: accumulated depreciation
(39,823,409)
(35,781,331)
Capital assets, net of accumulated depreciation
102,203,508
97,623,701
Deferred charges
Bond issue costs, net of amortization
722,364
907,367
Total deferred charges
722,364
907,367
Total non -current assets
102,925,872
98,531,068
TOTAL ASSETS
$ 138,949,897
$ 141,484,684
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable
$ 1,979,301 $
1,663,301
Accrued liabilities
97,788
265,866
Accrued interest
316,163
340,314
Due to other funds
-
6,183,737
Current portion of general obligation debt
2,948,620
2,764,320
Current portion of revenue bonds
120,000
550,000
Current portion of contract obligation debt
605,900
887,780
Current portion of compensated absences
62,272
51,459
Current portion of deferred loss
(181,488)
(99,024)
Current portion of premium
41,969
9,998
Current portion of deferred revenue
5,000
5,000
Payable from restricted assets:
Accrued interest
-
22,150
Customer meter deposits
186,607
147,713
Total current liabilities
6,182,132
12,792,614
NON -CURRENT LIABILITIES
Compensated absences
-
13,124
Deferred revenue
267,214
273,437
Contract revenue obligations
2,060,000
2,665,900
General obligation debt
44,717,606
44,846,171
Revenue bonds payable
2,210,000
-
Premium on bond issuance
597,077
185,805
Deferred loss on refunding
(955,031)
(1,004,997)
Total non -current liabilities
48,896,866
46,979,440
TOTAL LIABILITIES
55,078,998
59,772,054
NET ASSETS
Invested in capital assets, net of related debt
65,039,374
60,541,445
Unrestricted
18,831,525
21,171,185
TOTAL NET ASSETS
$ 83,870,899 $
81,712,630
113
CITY OF SOUTHLAKE, TEXAS
EXHIBIT D-2
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
2010
2009
OPERATING REVENUES
Water, sewer and garbage $
18,815,054
$ 19,276,241
Service charges
82,302
32,992
Miscellaneous
71,938
372,063
Total operating revenues
18,969,294
19,681,296
OPERATING EXPENSES
Personnel services
2,146,885
2,062,762
Contractual services
1,108,852
1,147,555
Lease payments
4,169
808
Supplies
90,579
97,379
Utilities
6,520,881
6,059,407
Administrative
38,157
84,109
Maintenance
1,624,546
1,755,723
Professional benefits
23,314
32,300
Depreciation and amortization
4,603,321
3,703,019
Total operating expenses
16,160,704
14,943,062
OPERATING INCOME
2,808,590
4,738,234
NON -OPERATING REVENUES (EXPENSES)
Gain (loss) on sale of capital assets (2,000) (50,379)
Interest income 155,106 593,538
Interest expense (2,785,734) (3,070,718)
Total non -operating revenues (expenses) (2,632,628) (2,527,559)
NET INCOME BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 175,962 2,210,675
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions - property owners
2,205,613
1,883,664
Contributions - impact fees
372,787
329,203
Transfers from other funds
-
57,550
Transfers to other funds
(596,093)
(397,060)
Total capital contributions and transfers
1,982,307
1,873,357
CHANGE IN NET ASSETS
2,158,269
4,084,032
NET ASSETS, BEGINNING OF YEAR,
81,712,630
77,628,598
NET ASSETS, END OF YEAR
$ 83,870,899
$ 81,712,630
114
CITY OF SOUTHLAKE, TEXAS EXHIBIT D-3
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED SEPTEMBER 30, 2010 AND 2009
2010
2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users
$ 17,769,896
$ 19,520,309
Cash payments to suppliers
(9,263,137)
(9,564,369)
Cash payments to employees
(2,149,196)
(2,062,762)
Net cash provided by operating activities
6,357,563
7,893,178
CASH FLOWS FROM CAPITAL AND FINANCING ACTIVITIES:
Capital expenditures
(6,484,270)
(3,774,790)
Principal payments on bonds
(4,202,100)
(3,704,127)
Proceeds from issuance of bonds
12,694,210
6,410,000
Premium on issuance of bonds
474,555
195,803
Bond issue costs
(160,066)
-
Payment to refund bond escrow agent
(7,758,141)
-
Interest paid
(2,832,035)
(3,090,898)
Contributions - impact fees
372,787
329,203
Net cash used in capital and related
financing activities
(7,895,060)
(3,634,809)
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES:
Transfer (to) from other funds
(596,093)
(339,510)
Cash paid to other funds
(2,782,649)
(1,024,605)
Net cash used in non -capital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (purchase) sale of investments
Interest received
Net cash provided by (used in) investing activities
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at the
beginning of year
Cash and cash equivalents at the
end of year
(3,378,742)
14,826,436
175,569
(1,364,115)
(3,642,646)
651,273
15,002,005 (2,991,373)
10,085,766 (97,119)
- 97,119
$ 10,085,766 $ -
115
CITY OF SOUTHLAKE, TEXAS
WATER AND SEWER ENTERPRISE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED SEPTEMBER 30, 2010 AND 2009
RECONCILIATION OF CASH AND CASH
EQUIVALENTS OF STATEMENT OF CASH
FLOWS TO THE BALANCE SHEET:
Cash and cash equivalents
Cash restricted for capital
Cash and cash equivalents at
the end of the year
RECONCILIATION OF OPERATING
INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Operating income
Adjustments to reconcile operating
income to net cash provided by
operating activities:
Depreciation and amortization
Decrease (increase) in assets
Receivables
Prepaids
Increase (decrease) in liabilities
Payables and accruals
Customer deposits
Net cash provided by
operating activities
NONCASH INVESTING, CAPITAL,
AND FINANCING ACTIVITIES:
2010
$ 111,972
9,973,794
$ 10, 085, 766
EXHIBIT D-3
(CONTINUED)
2009
$ 2,808,590 $ 4,738,234
4,603,321
3,703,019
(1,232,002)
(205,765)
(628)
-
139,388
(392,904)
38,894
50,594
$ 6,357,563
$ 7,893,178
During the fiscal years ended September 30, 2010 and 2009 the estimated value of water
and sewer infrastructure contributed by developers was $2,205,613 and $1,883,664, respectively.
116
INTERNAL SERVICE FUND
The Internal Service Fund is used to account for financing of services provided by one department to
other departments of the City on a cost -reimbursement basis.
The Vehicle Replacement Fund - accounts for the costs associated with the acquisition of vehicles
through the rental of such vehicles to other departments.
117
CITY OF SOUTHLAKE, TEXAS EXHIBIT E-1
VEHICLE REPLACEMENT INTERNAL SERVICE FUND
COMPARATIVE STATEMENTS OF NET ASSETS
SEPTEMBER 30, 2010 AND 2009
FdN$I =k K
CURRENT ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowance for uncollectibles:
Interest
Total current assets
NON -CURRENT ASSETS
Capital assets
Vehicles
Total capital assets
Less: accumulated depreciation
Total non -current assets
TOTAL ASSETS
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Due to other funds
Total current liabilities
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
2010 2009
$ 694,786 $ -
1,600,770 2,906,829
394 10,109
2,295,950 2,916,938
3,212,914 3,045,367
3,212,914 3,045,367
(1,818,332) (1,424,641)
1,394,582 1,620,726
$ 3,690,532 $ 4,537,664
$ 614,490
614,490
1,394,582 1,620,726
2,295,950 2,302,448
$ 3,690,532 $ 3,923,174
118
CITY OF SOUTHLAKE, TEXAS
VEHICLE REPLACEMENT INTERNAL SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
OPERATING EXPENSES
Lease payments
Maintenance
Depreciation
Total operating expenses
OPERATING LOSS
NON -OPERATING REVENUES
Gain on sale of capital assets
Interest income
Total non -operating revenues
LOSS BEFORE TRANSFERS
Transfers from other funds
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
EXHIBIT E-2
2010 2009
$ 21,000 $ -
26,492 -
442,118 425,784
489,610 425,784
(489,610) (425,784)
21,465
134,026
503
39,400
21,968
173,426
(467,642)
(252,358)
235,000
-
(232,642)
(252,358)
3,923,174
4,175,532
$ 3,690,532
$ 3,923,174
119
CITY OF SOUTHLAKE, TEXAS EXHIBIT E-3
VEHICLE REPLACEMENT INTERNAL SERVICE FUND
COMPARATIVE STATEMENTS OF CASH FLOWS
YEARS ENDED SEPTEMBER 30, 2010 AND 2009
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Cash paid to suppliers $ (47,492) $ 19,042
Net cash provided by (used in) operating activities (47,492) 19,042
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital expenditures
(215,974)
(657,184)
Proceeds from sale of capital assets
21,465
134,026
Net cash used in capital and financing activities
(194,509)
(523,158)
CASH FLOWS FROM NON -CAPITAL FINANCING ACTIVITIES
Cash received from (paid to) other funds
(614,490)
614,490
Transfers from other funds
235,000
-
Net cash provided by (used in) non -capital
financing activities
(379,490)
614,490
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (purchase) sale of investments
1,306,059
(166,211)
Interest received
10,218
55,837
Net cash provided by (used in) investing activities
1,316,277
(110,374)
Net increase in cash
and cash equivalents
694,786
-
Cash and cash equivalents at the
beginning of year
-
-
Cash and cash equivalents at the
end of year
$ 694,786 $
-
RECONCILIATION OF OPERATING LOSS TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating loss $ (489,610) $ (425,784)
Adjustments to reconcile operating loss to
net cash provided by (used in) operating activitiies:
Depreciation 442,118 425,784
Decrease (increase) in assets
Due from other funds - 19,042
Net cash provided by (used in) operating activities $ (47,492) $ 19,042
120
AGENCY FUNDS
The Agency Funds are used to account for resources held for others in a custodial capacity. The City
maintains the following Agency Fund:
Cash Escrow Agency Fund - accounts for the receipt and subsequent disbursement of deposits paid to
the City by builders/developers.
121
CITY OF SOUTHLAKE, TEXAS EXHIBIT F-1
CASH ESCROW AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
I-11P&I =k K
Cash and cash equivalents
Investments
Accrued interest receivable
TOTAL ASSETS
LIABILITIES
Due to other funds
Due to builders
TOTAL LIABILITIES
$ - $ 19,038 $ - $ 19,038
91,639 331 43,063 48,907
297 - 35 262
$ 91,936 $ 19,369 $ 43,098 $ 68,207
$ 24,060 $ - $ 24,060 $ -
67,876 331 - 68,207
$ 91,936 $ 331 $ 24,060 $ 68,207
122
CITY OF SOUTHLAKE, TEXAS
COMPARATIVE SCHEDULES OF CAPITAL ASSETS BY SOURCE
SEPTEMBER 30, 2010 AND 2009
General capital assets
Land and improvements
Buildings and improvements
Equipment
Infrastructure
Construction in progress
Total general capital assets
Investment in general capital assets
Capital projects funds
General and other fund revenues
Gifts
Total investment in
general capital assets
EXHIBIT G-1
2010 2009
$ 90,591,779 $ 84,885,673
62,702,699
33,428,251
18,511,817
16,427,659
220,959,266
213,400,962
18,141,972
34,242,358
$ 410,907,533 $ 382,384,903
$ 294,598,025 $ 291,034,298
79,609,689 60,665,442
36,699,819 30,685,163
$ 410,907,533 $ 382,384,903
123
CITY OF SOUTHLAKE, TEXAS EXHIBIT G-2
SCHEDULE OF CHANGES IN CAPITAL ASSETS BY FUNCTION AND ACTIVITY
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010
Capital
Capital
Assets
Assets
October 1,
September 30,
Function and Activity
2009
Additions
Deductions
2010
General government
$ 186,630,629
$ 240,571
$ -
$ 186,871,200
Public safety
35,999,896
31,041,713
(24,701,308)
42,340,301
Public works
159,754,378
26,865,077
(4,923,423)
181,696,032
Total general
capital assets
$ 382,384,903
$ 58,147,361
$ (29,624,731)
$ 410,907,533
General
Public
Public
Government
Safety
Works
Total
Land and improvements
$ 2,418,798
$ 4,303,923
$ 83,869,058
$ 90,591,779
Buildings and improvements
25,787,054
32,874,634
4,041,011
62,702,699
Equipment
5,625,408
4,106,808
8,779,601
18,511,817
Infrastructure
153,039,940
114,989
67,804,337
220,959,266
Construction in Progress
-
939,947
17,202,025
18,141,972
Total
$ 186,871,200
$ 42,340,301
$ 181,696,032
$ 410,907,533
124
STATISTICAL SECTION
STATISTICAL SECTION
This part of the City of Southlake's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, notes disclosures, and required
supplementary information says about the City's overall financial health. This information has not been
audited by the independent auditor.
Contents
Table #s
Financial Trends 1, 2,3 & 4
These tables contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity 5, 6, 7 & 8
These tables contain information to help the reader assess the City's two most significant
local revenue sources, the property and sales taxes.
Debt Capacity 9, 10, 11 & 12
These tables present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Economic and Demographic Information 13 & 14
These tables offer economic and demographic indicators to help the reader understand
the environment within which the City's financial activities take place.
Operating Information 15, 16 & 17
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides.
Source: Unless otherwise noted, the information in these tables is derived from the comprehensive annual
financial reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2003: tables
presenting government -wide information include information beginning in that year.
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CITY OF SOUTHLAKE, TEXAS
CHANGES IN NET ASSETS, LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2003
2004
2005
2006
2007
Expenses
Governmental activities:
General government
$ 5,933,303
$ 5,587,931
$ 5,926,466
$ 8,465,930
$ 9,833,572
Public safety
10,252,829
10,493,951
10,548,265
10,965,357
11,729,107
Public works
3,348,517
3,318,138
3,470,227
3,707,519
4,813,692
Culture and recreation
3,848,090
3,937,540
4,463,075
5,085,976
5,510,247
Interest on long-term debt
3,448,154
4,916,955
5,003,130
5,052,472
5,804,295
Total governmental activities expenses
26,830,893
28,254,515
29,411,163
33,277,254
37,690,913
Business -type activities:
Water and sewer
13,852,605
13,781,499
14,130,259
16,168,430
14,729,469
Total business -type activities expenses
13,852,605
13,781,499
14,130,259
16,168,430
14,729,469
Total primary government expenses
$ 40,683,498
$ 42,036,014
$ 43,541,422
$ 49,445,684
$ 52,420,382
Program Revenues
Governmental activities:
Charges for Services:
General government
$ 1,226,438
$ 1,739,515
$ 1,321,236
$ 1,956,949
$ 1,778,215
Public safety
959,855
1,429,962
2,151,270
1,873,524
2,979,947
Public works
97,298
202,153
250,760
411,381
223,329
Culture and recreation
585,276
676,715
752,062
813,837
1,156,965
Operating grants and contributions
212,224
401,339
319,593
459,688
304,246
Capital grants and contributions
284,175
447,270
3,639,953
3,575,240
11,425,990
Total governmental activities program revenues
3,365,266
4,896,954
8,434,874
9,090,619
17,868,692
Business -type activities:
Charges for services:
Water and sewer
14,551,845
13,743,453
16,100,215
20,180,636
15,414,131
Capital grants and contributions
1,368,097
1,642,757
2,471,700
3,510,000
5,589,196
Total business -type activities program revenues
15,919,942
15,386,210
18,571,915
23,690,636
21,003,327
Total primary government program revenues
$ 19,285,208
$ 20,283,164
$ 27,006,789
$ 32,781,255
$ 38,872,019
Net (Expenses) Revenue
Governmental activities
$(23,465,627)
$(23,357,561)
$(20,976,289)
$(24,186,635)
$(19,822,221)
Business -type activities
2,067,337
1,604,711
4,441,656
7,522,206
6,273,858
Total primary government net expenses
$ (21,398,290)
$ (21,752,850)
$ (16,534,633)
$ (16,664,429)
$ (13,548,363)
General Revenues
and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes
$ 16,744,004
$ 18,694,986
$ 19,604,411
$ 21,439,614
$ 24,509,730
Sales taxes
10, 299, 692
10, 788, 469
12, 503, 357
16, 040, 418
16, 931,180
Franchise taxes
1,781,115
1,933,250
2,015,893
1,983,381
2,435,803
Interest on investments
599,276
735,978
860,725
2,591,520
3,598,458
Gain (Loss) on sale of fixed assets
226,162
50,400
(33,071)
35,317
-
Transfers
-
1,322,539
-
-
275,595
Miscellaneous
653,876
51,512
7,008
166,789
8,688
Total governmental activities
30,304,125
33,577,134
34,958,323
42,257,039
47,759,454
Business -type activities:
Interest on investments
335,487
380,571
412,793
1,024,603
1,183,987
Gain (Loss) on sale of fixed assets
-
-
-
930,138
(3,396)
Transfers
(1,322,539)
-
(275,595)
Miscellaneous
-
-
-
-
Total business -type activities
335,487
(941,968)
412,793
1,954,741
904,996
Total primary government
$ 30,639,612
$ 32,635,166
$ 35,371,116
$ 44,211,780
$ 48,664,450
Change in Net Assets
Governmental activities
$ 6,838,498
$ 10,219,573
$ 13,982,034
$ 18,070,404
$ 27,937,233
Business -type activities
2,402,824
662,743
4,854,449
9,476,947
7,178,854
Total primary government
$ 9,241,322
$ 10,882,316
$ 18,836,483
$ 27,547,351
$ 35,116,087
Source: Comprehensive Annual Financial Report
Note: Accrual -basis financial information for the city as a whole is only available back to 2003, the year GASB Statement 34 was implemented.
126
2008 2009 2010
$ 4,406,913 $ 11,068,965 $ 11,814,836
12, 770, 012 12, 920, 263 14, 885, 499
8,669,156 5,840,432 5,767,688
5,911,730 6,439,100 7,287,434
5,506,967 5,854,931 6,515,269
37,264,778 42,123,691 46,270,726
17, 689, 865 18, 066, 346 18, 948, 438
17, 689, 865 18, 066, 346 18, 948, 438
$ 54,954,643 $ 60,190,037 $ 65,219,164
$ 1,340,864
$ 1, 949,993 $
2,476,000
2,843,923
2,633,437
2,706,847
199,833
68,369
240,916
1,269,571
1,369,725
1,387,558
241,144
239,364
688,803
5,690,613
1,833,160
5,994,206
11,585,948
8,094,048
13,494,330
18, 543, 025
19, 321, 095
18, 897, 356
3,748,161
2,212,867
2,578,400
22,291,186
21,533,962
21,475,756
$ 33,877,134
$ 29,628,010 $
34,970,086
$(25,678,830) $(34,029,643) $(32,776,396)
4,601,321 3,467,616 2,527,318
$(21,077,509) $(30,562,027) $(30,249,078)
$ 28,950,945 $ 30,911,161 $ 32,298,360
18, 781, 043 17, 256, 272 17, 610, 781
2,654,701 2,816,111 2,606,248
3,128,226 1,703,418 414,852
- 167,127 21,465
229,436 339,510 596,093
52,023 341,957 428,804
53,796,374 53,535,556 53,976,603
594,891 953,739 155,173
(229,436) (339,510) (596,093)
10,989 2,187 71,871
376,444 616,416 (369,049)
$ 54,172,818 $ 54,151,972 $ 53,607,554
$ 28,117,544 $ 19,505,913 $ 21,200,207
4,977,765 4,084,032 2,158, 269
$ 33,095,309 $ 23,589,945 $ 23,358,476
TABLE 2
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CITY OF SOUTHLAKE, TEXAS TABLE 14
PRINCIPAL EMPLOYERS
CURRENT YEAR AND FOUR YEARS AGO
(UNAUDITED)
2010
2006
Percentage of
Percentage
Total City
of Total City
Employer
Employees
Employment
Employer
Employees
Employment
Sabre Holdings
2,700
20.61 %
Sabre Holdings
3,000
20.00%
Carroll ISD
1,072
8.18%
Carroll ISD
1,037
6.91%
Verizon Wireless
619
4.73%
Tri Dal Ltd.
450
3.00%
City of Southlake
276
2.11%
Verizon Wireless
450
3.00%
Hilton Dallas/Town Square
218
1.66%
City of Southlake
273
1.82%
Tri Dal Ltd.
194
1.48%
Cheesecake Factory
200
1.33%
Cheesecake Factory
161
1.23%
Costco Wholesale
180
1.20%
Variosystems Inc.
150
1.15%
Tom Thumb
140
0.93%
Lowe's Home Improvement
145
1.11%
Home Depot
131
0.87%
Ameristar Information Network
125
0.95%
Dallas Marriott Solana
122
0.81%
Kroger
121
0.92%
Lowe's Home Improvement
115
0.77%
Home Depot
120
0.92%
Albertson's
100
0.67%
Costco Wholesale
107
0.82%
Eagle Contracting L.P.
100
0.67%
Albertson's
100
0.76%
Floors Inc.
100
0.67%
Kohl's
100
0.76%
Kohls
100
0.67%
Floors, Inc
100
0.76%
Kroger
100
0.67%
Tom Thumb
89
0.68%
Steak-n-Shake
100
0.67%
Darr Lift
84
0.64%
Darr Lift
90
0.60%
Chick-fil-A
75
0.58%
Buca di Beppo
75
0.50%
Buca di Beppo
75
0.58%
Century 21 Worldwide
70
0.47%
PetsMart
70
0.47%
Re/Max Masters
70
0.47%
Bear Creek Construction, LTD.
60
0.40%
Greater Metroplex Interiors
60
0.40%
Red Lobster
60
0.40%
Circuit City
55
0.37%
Timarron Country Club
55
0.37%
Ebby Halliday Realtors
51
0.34%
Blue Mesa Cafe
50
0.32%
Eklund's, Inc.
50
0.32%
Total
6,631
50.63%
7,514
50.09%
Total Southlake Daytime Employees 13,098 Total Southlake Daytime Employees
Note: Information for 2001 was not available at the time, therefore, an alternate year was presented in its place.
Source: Southlake Economic Development
North Central Texas Council of Governments
15,001
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