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HomeMy WebLinkAbout09-30-1997 s Comprehensive Annual Financial Report FY ending September 30,1997 O 0 1 I • 6 1 1 1 1 1 1 ~ I 1 TON t 1 r:r AL FOR THE YEAR SEPTEMBER 300 1997 I PREPARED BY EPARTMENT OF FINANCE XWFER WALTERS 1 1 V S. Y r AM= 32 X aa,ua 0 1 i 1 j CITY OF DENTON, TEXAS { I COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended September 50, 1997 CITY MANAGER I Ted Benavides ASSISTANT CITY MANAGER OF FINANCE Kathy L. DuBose, CPA, CGFO Director of Management and Budget Jon Fortune, CGFO Prepared by: Kristin Newman, CPA, COFO Contuoaar Peckyy Buck, CPA Sorlat Utmty Accountant Marianne Yarbrough, CPA Sonior Orant Accountant Susan Sullivan Salvor Utmty Accountant DayAna Hutchinson ~ ccountant a Kerls Stestny AccountantI i ?5 x ❑ 32x10 y. 0 TABLE OF CONTENTS Page INTRODUCTORY SECTION: Transmittal Letter i Organization Chart .....................................................xi Certificate of Achievement ...............................................xli List of Principal Officials ...........................xid FINANCIAL SECTION; Auditors' Report .......................................................1 General Purpose Financial Statements- Combined Balance Sheet • All Fund Types and Account Groups ....................4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances . All Governmental Fund Types and Expendable Trust Fund 10 Combined Statement of Revenues. Expenditures and Changes In Fund Balances Budget and Actual - General, Special Revenue Recreation, Police Confiscation and Emily Fowler library funds and Debt Service Funds (Budget Basis) 12 Combined Statement of Revenues, Expenses and Changes in Retained Earnings • All Proprietary Fund Types ..14 Combined Statement of Cash Flows - Atl Proprietary Fund Types 16 Notes to Financial Statements • • .21 Combining and Individual Fund Financial Statements and Schedules- Combining Balance Sheet • All Special Revenue Funds . 52 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Special Revenue Funds .............................54 Combining Balance Sheet • All Capital Projects Funds 58 Combining Statement of Revenues, Expenditures and Changes in Fund 1 Balances - All Capital Projects Funds ..................................60 Combining Balance Sheet • All Enterprise Funds . 84 Combining Statement of Revenues, Expenses and Changes in Retained Earnings • All Enterprise Funds , ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ,,68 Combining Statement of Cash Flows • All Enterprise funds 70 { 0 Schedule of Revenues, Expenses and Changes in Retained Earnings . Budget and Actual • (Budget Basis) • All Enterprise Funds 74 Combining Balance Sheet • Utility System . ...76 Combining Schedule of Revenues, Expenses and Changes in Retained Earnings • Utility System .............................80 Combining Statement of Cash Flovrs • Utility System . ...................82 Corr in,ng Balance Sheet • All Internal Service Funds ..........................88 O Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) • All Internal Service Funds ..............................90 f[1 tali II~ Ii I~ 32 X >P 0 j I ~f l I I l Page Combining Statement of Cash Flows • All Internal Service Funds 92 I l Schedule of Revenues, Expenses and Changes in Retained Earnings (Deficit) • Budget and Actual : (Budget Basis). Warehouse, Fleet Services, and Motor Pool Funds ..91 Combining Balance Sheet • All Trust and Agency Funds .98 Statement of Changes In Assets and Liabilities • All Agency Funds 100 l Supplemental Financial Information- General Fund Supplemental Information- Schedule o' Expenditures . Budget and Actual 104 Federal Energy Regulatory Commission Supplemental Information (Unaudited)- Electric Utility Schedule of Assets, Liabilities,and Capital . Electric Operating Fund 116 Electric Utility Schedule of Net Income • Electric Operating Fund . 119 Electric Utility Schedule of Budget and Actual Expenses • Electric Operatint, Fund 120 STATISTICAL S£CT70N (UNAUDITED): Table 1 General Government Expenditures by Function - Last Ten Fiscal Years 124 2 General Revenues by Source - Last Ten Fiscal Years 126 3 Property Tax Levies and Collections - Last Ten Fiscal Years 128 4 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years . ......................130 5 Property Tax Rates and Tax Levies • Direct and Overlapping Governments - Last Ten Fiscal Years . . . . .132 6 Special Assessment Collections - Last Ten Fiscal Years 133 7 Ratio of Net General Bonded OF yt to Assessed Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years 134 8 Computation of Legal Debt Margin . . . ..........................136 A 9 Computation of Direct and Overlapping Debt . . 137 10 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years 138 11 Revenue Bond Debt Service Coverage • Last Ten Fiscal Years . . 140 12 Property Value, Construction and Bank Deposits - last Ten Fiscal Years , 142 13 Principal Taxpayers ..............................................145 14 Schedule of Insurance in Force . . . .146 O 15 Demographic Statistics last Ten Fiscal Years . . . . . . . . . 148 Q l 16 Miscellaneous Statistical Data ............................150 krrf` ' I 0 .'PiBF9N1 I CITY OF DENTON, TEXAS I I i 00 ~la ~I • ~ ~ o s I Comprehenelve Annual Flnendal Repot f 75.x ~q 32xlo I ~ t O I C n I I , ~l Ch , OF DENTON, T_FXAS ' January 9, 1998 f TO: The Honorable Mayor, Members of City Council and Citizens of the City of Denton Submitted herewith Is a copy of the Comprehensive Annual Financial Report of the City of Denton for the fiscal year ,nded September 30, 1937. The respc iGility for both the ` accuracy of the presented information and the completeness and fairness of the presentation of the data, Including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data Is accurate In all material respects and are reported in a manner designed to present fairly the end results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities h,ve been included. The Comprehensive Annual Financial Report is presented in three sections' introductory, financial and statistical, The Introductory section includes this transmittal letter, the City's o(ganizatiunal chart, and a list of principal officials. The financial section includes the general purpose financial statements, the combining and individual fund and account group financial statements and schedules, as well as the Auditor's Report on the fi- uial statements and schedules. The statistical section Includes selected financial and demog .yhic Information, generally represented on a multiyear basis. This report includes all funds and account groups of the City, The City provides a full range of services, which Include police anti fire protection; solid waste services: the construction and maintenance of highways, streets and infrastructure; and water, wastewater and electric utilities. 11 Economic Condition and Outlook 0 Recent events should have a positive effect on local economic conditions. The f sales tax to reduce property tax took effect in January, 1994. Sales tax receipts f grew from $11,105,821 at September 30, 1996, to $12,139,976 at September 3J, 1997. A x International Isotopes, Inc,, a radioisotope manufacturer, recently purchased an 80,000. square foot building previously occupied by Union Camp. In addition, the 1D ~N company Is constructing two new buildings (valued at approximately 05 million) h1~ I near the intersection of Woodrow Lane and Spencer Road. The new buildings will be the first to occupy the North Texas Research Center, Ancillary operations, such as pharmaceutical companies and medical equipment manufacturers, are 4 ~N~~NIh1 r0 ~vO~illJ ~Sf /L'1CY~ ---,.sr- 7~~Ia 32 X I~ e 0 Transmittal Letter (continued) expected to follow. The company will manufacture radioisotopes to be used in nuclear medicine diagnostics and therapeutics, a First Financial Resources completed construction -)f a new office facility on Kimberly Street. The new facility is 10,500 square feet and valued at approximately $987,000. ■ Morrison Milling completed a 7,500-square-foot office expansion, valued at approximately 6525,000, at their facility located on East Prairie Street and Bell Avenue. ■ Developments at Denton Municipal Airport; In October 1997, Nebrig & Associates relocated its aircraft brokerage firm from Dallas Love Field to their new hangar and offices at Denton Municipal Airport. The airport's newest development project, Hangar 10 Flying Museum, is under construction and will open this summer. The museum has storage, display, and office facilities. Ezell Aviation assumed the full service FBO (Fixed Base Operations) at the airport on May 1, 1997. The Ezells have extensive development plans, which Include remodeling and expansion of their current facility to provide a pilots' lounge and restaurant. In add'tion, the Ezelis will construct a new hangar for their warbird restoration operation. r Hartzell Manufacturing, Inc. moved into their new 39,960-square-foot office and ' manufacturing fac'r'ity located at 2200 Worthington. This new building Is Phase One of a two-phase project planned by the company as it expands its operations in Denton. New Apartment Complexes: Waterford at Spencer Oaks on Spencer Road (278,000 square feet). Hat Tricks Roller Hockey Rink opened in September 1997. The facility is 60,000 square feet and includes a rink, pro shop, and concession stand. The new facility, located on Mayhill Road, is valued at approximately $1,931,400. Hobby Lobby, an Oklahoma City-hased retail crafts chain, renovated 62,030 square feet of a building vacated by Wal-Mart when they constructed their new superstore. The approximate value of the Hobby Lobby renovation was $320,000, Kenton Community Hospital began a $6 million expansion that will Include facilities for operatir g rooms and recovery areas. The expansion will be completed in fall 1998. Columbia Medical Center began construction on a $74 million, 186-bed hospital {272,000 square feet) located on 1.35 East at Msyhill Road. The new medical ® center will have a full-service emergency center. The Heart Center of Denton will tD be located in the new facility offering open heart surgery, coronary angioplasty, cardiac catheterization, cardiac rehabilitation, and patient and family support groups. Also planned Is occupational medicine specializing in Injury management, prevention medicine, and health surveillance and the Woman's Pavilion specializing In obstetrics, gynecology, and pediatrics. i, '~a"" 75 32x~❑ t ~ A O I Transmittal Letter (continued) a Skyfab constructed a 22,500 square foot commercial metal manufacturing facility, valued at approximately $711,000. The new facility is located at 9070 FM 2181. a Locke Wholesale Suppliers moved into 32,000 square feet of the vacant Wal-Mart building In May 1997, ■ The Family Doctors built a new 11,300-square foot office facility on Teasley Lane valued at approximately 11,100,000, ■ Texas Motor Speedway, The 1, 200-acre speedway complex has a 1.5-mile oval track and seating capacity of 163,000. The facility cost approximately 4100 million to construct. The speedway's inaugural races were held April 5-6 with the Coca-Cola 300 NASCAR Busch Series on April 5 and the Texas 500 NASCAR Winston Cup Race on April 8. { ■ Anderson Merchandisers; The new assembly/warehouse facility 1248,000 square feet) for the distribution of books, music, and videotapes opened In April 1997, I` The building is valued at $3.6 million and employs approximately 300. ` a Denton County Is nearing completion of construction on the new 181,000-square. foot courthouse located at 1450 East McKinney Street, The new facility Includes ten courtrooms, five district courts, two county criminal courts, and one statutory probate court. A 100-room holding jail will occupy over 11,000 square feet of basement space. The total project cost Is estimated at $18.9 million. Completion of the project is scheduled for March 1998, a Denton County Juvenile Detention Facility expansion will add an additional 72 beds to the current facility. A standardized pod configuration of 12 bedrooms per pod has been utilized throughout the facility. Each pod also has its own shower, passive dayroom, and classroom. When the project is completed In March 1998, the facility will have a total of 48 pre-adjudicated Juvenile beds, 48 post- adjudicated juvenile beds, and support facilities such as visitation areas. a Intel Corporation plans to build a 11,3 billion new advanced log;c computer chip- manufacturing center on 532 acres at Alliance. The facility initially will employ 800, with the potential to enlarge its workforce to more than 5,500 people. Intel's plant will be one of the most modern and sophisticated chip-manufacturing centers in the world. ® a Rich Music, a full line music store, moved into th rir new facility located at 2C4 South 1.35 East in July 1997. The 10,000•sgjare-foot building Includes approximately 3,300 square feet of tenant space thit is leased by Sir Speedy Printing. The facility is valued at 1438,015. ■ Action Carpet broke ground on a new 15,000-square-foot tacility located at O 3008 South 1.35 East in September 1997. The project is valued at 1490,000. C { a Best Western will locate their new 70-room motel at the intersection of 1.35 North and University Drive (behind Cracker Barrel). The total development will include =OF restaurant pad sites and other uses. Construction is scheduled to begin In early 1998. I ~5 IQ 32 r ar, A 0 Transmittal Letter (continued) r Major Initiatives The City experienced tremendous growth in the early 1980s. In 1987, property values increased by 26% percent over the prior year's values. Such rapid growth placed considerable demand on the City's labor, equipment and Infrastructure, Resources were more readily available when property values were high, and demand for services was met by increased allocations in almost every area of City government. Unfortunately in 1989, property values stopped increasing and growth slowed significantly which limited resources, while the demand for services remained high. Managers struggled to maintain the same level of services while stretching decreasing resources as far as possible. The economic environment in the early 19905 made budget preparation very difficult. For example, In 1992, managers were asked to reduce their budgets by two percent. Budget preparation continued to be challenging in 1993-94, which could be classified as a maintenance budget, only marginally addressing pent-up demand from previous years. Though there was considerable optimism that economic recovery was just around the corner, in 1993 property values continued to decline, Some relief came in 1994 when the 1994 total assessed value of the appraisal roll Increased five percent over the prior year. In addition, the citizens of Denton approved a %C sates tax to reduce ad valorem taxes In January of 1994. The increased property values plus the %C i sales tax allowed the City Council to reduce the ad valorem tax rate by 25%. The economic environment continued to Improve in 1995 and 1996. The 1995 certified assessed property value Increased 4% over the prior year, and the 1996 certified ` assessed property value Increased 4.7% over the 1995 certlfied value. This growth has allowed the City Council to continue addressing the tremendous backlog of capital and other one-time needs postponed over the past few years due to the lack of resources, as %.all as meeting a number of ongoing needs. Some of the major initiatives in the 1996.97 fiscal year Include the implementation of a long-range technology plan. In 1995, a long-range plan was developed to meet the Information service needs of the organization. The plan addressed the need to replace the technically obsolete hardware and software used by the City. The first prase of the plan that was implemented In 1997 included updating the information infrastructur,' used throughout the organization. I In 1997, the City implemented the second year of a multiple-year plan to completely address ell of the City's critical vehicle needs. A total of 56 City vehicles were replaced based on the evaluation criteria that includes high maintenance costs, age compared to estimated economic . life, and high mileage. In the future, as resources allow, the City will continue replacing all necessary vehicles to ensure that the proper equ pmeni is available to provide quality services. Facility renovation and improvement Continued in the 1996.97 fiscal year. A number of improvements were made to various City facilities to comply with ADA requirements, fix safety hazards, replace heating and air-conditioning units, and repair various maintenance problems. p City Hall in the Mall, an innovative approach to service delivery, was opened to 0 provide major customer-oriented services in a highly accessible location (Golden Triangle Mall), The City Hall in the Mall office serves as a community polio, office and convenient location for citizens to pay utility and tax bills. Conference rooms are also available for public use. The I Iv. e 0 i I Transmittal Letter (continued) success of the City Hall in the Mall Indicates a positive reception by citizens toward the enhanced customer service. For the second consecutive year, major resources were allocated toward public safety. Enhancements Included the addition of a full-time, bilingual position to Initiate, facilitate, and promote available services to the Hispanic community; the addition of a juvenileldo„iestic violence investigator; and the addition of two civilian duty officers and one property technician. Also added In 1997 were three new dispatchers to operate the City's emergency dispatch function I for the police and fire departments. Finally in 7995, the City Council appointed a Blue Ribbon Committee, comprised of fifty citizens, to review the capital needs of the City and to prepare a five-year plan for a bond program. After long hours and diligent work, the Blue Ribbon Committee developed a plan that was presented to the Denton citizens for their approval In February 1996. The election results reflected overwhelming support for the five-year program as presented by the Blue Ribbon Committee, The 1998.97 General Government Capital Improvement Pion (CIP) which totaled $14.484 million included $,675 million for drainage projects, $.750 million for park projects, and $13.059 million for transportation projects. The Utility Departments (Electric, Water, and Wastewater) continue their CIP program to replace necessary items within the Utility system. { FinancJol Information The management team of the City Is responsible for establishing and maintaining I an Internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with continued generally accepted accounting principles. The Internal control structure Is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that 11) the cost of the controls should not exceed the benefits likely to be derived, and, 12) the valuation of cost and benefits requires estimates and judpments by management. f i Supple Audit As a recipient of federal and state assistance, the City also Is responsible for ensur!ng that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related both to the state and federal programs, This Internet control structure Is subject to periodic evaluation by management and the outside auditors of the City's financial statements. As a part of the City's single audit, tests are made to determine the adequacy of the internal control structure Including that portion related to the federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The result of the City's single audit of the fiscal year ended September 30, 1997 ` provided no instances of material weaknesses in the internal control strurture of reportable violations of applicable laws and regulati;ns, a I v• r 10 32x O Now' d t 0 Transmittal Letter (continued) Budgeting Controls The City maintains budgetary controls to ensure compliance of legal provisions " embodied in the annual appropriated budget approved by the City Council. Artivities of the General Fund, Special Revenue Funds (Recreation Fund, Police Confiscation Fund, and Emily Fowler Library Fund only), Debt Service Fund, the Enterprise Funds and the Internal Service Funds lexchuding Risk Retention) are Included in the annual operating budget. Projected financial plans are adopted for the Capital Improvement Funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by frmction activity within an Individual fund. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary controls, and a technique of budgetary "lock out" which will prevent a transaction from exceeding legally appropriated budgetary amounts. As demonstrated by the statements and schedules Included in the financial section of this report, the City continues to meet its responsibility for sound financial management General Governmental Functions The following schedule represents a summary of General Fund, Special Revenue Funds and Debt Service Fund revenues for the fiscal year ended September 30, 1997 and the amount and percentages of increasel(decrease) in relation to prior year amounts. The amounts in thla schedule are expressed in thousand of dollars. Increase Percent of (Decrease) 9i, of Increase { Revenues Amount Total from 1996 (Decrease) Taxes $24,571 60,29 87,988 8,80 II Licenses and Permits 522 1.28 (51) (8,901 Franchise Fees 6,593 16,18 526 8.67 f Fines and Forfeitures 1,849 4.54 275 17.47 Fees for Service 2,101 5.15 253 13.69 Interest 745 1.83 (69) (8.48) Intergovernmental 3,274 8.03 (101) (3.11) Miscellaneous 1,102 2.70 11,231) (F2.76) TOTAL $40,757 100.00% 511590 1,56 o The most significant increase In General Fund Revenues from a continual source was in the fines and forfeitures revenue category. This increase is attributed to an increase In enforcement efforts, traffic officers, and deferred adjudication. i The most significant decrease in General Fund revenues from a continual source was In the miscellaneous category. This decrease was attributed to an accounting reclassification O 0 of hotellmotel tax. I The following schedule presents a summary of General Fund, Special Revenue Funds, and Debt Service Fund expenditures for the fiscal year ended September 30, 1997, and the percentage of increase/Wecrease) in relation to prior year amounts. Once again, the amounts stated in this schedule are expressed in thousands, vi I ~■■Irwefi 0 0 q Transmittal Letter (continued) Increase % of I Percent of (Decrease) Increase Expenditures Amount Total from 1996 (Decrease) Current: General Government $11,989 28.41 $ 378 3.26 I Public Safety 15,379 36.44 1,427 10.23 Public Works 5,040 11.94 644 14.65 Parks and Recreation 3,698 8.76 353 10.55 Capital Outlay 1,188 2.82 119 11.13 Debt Services: Principal 3,532 8,37 (18) 10.51Y t f Interest and Fiscal Charges 1,374 3.26 (371 (2.62) I TOTAL $42,200 100.00% $2,866 7,26% The most significant increase in General Fund expenditures is in the public works category. This increase Is attributed to one-time expenditures for street maintenance and equipment replacement. The most significant decrease in General Fund expenditures was in the interest and fiscal charges area. This decrease was due to a continuing decrease of interest costs resulting from the refunding of bond issues in 1993. General Fund Balance I The fund balance of the General Fund increased by 14.4% in 1997. The fund balance provides the City with an average of 49 working days of expenditures. However, 1 $693,184 of the balance is reserved for encumbrances, and 1144,744 is designated for subsequent years' expenditures. s Proprietary Operations I £nterprise Operations The City's Enterprise Operations consist of a utility system which provides for electric, water and wastewater services. The Enterprise Operations also include solid waste services for residential, commercial and landfill operations. There was no change in residential or commercial electric rates. For an average residential customer using 943 kwh per month, the bill would remain at $74.09. i . vii . I 0 Transmittal Letter (continued) In the Water Fund, there was no change In retail rates. Therefore, for an average residential customer using 8,500 gallons per month, the bill remained unchanged at $31.65 per month. Wholesale rates Increased by 1.56%. There was no Increase in Wastewater rates for 1996.97. The average residential , wastewater bill remained at $21.61 per month, There was no change In the Solid Waste residential rates. Commercial rates Increased overall by 13.0%. As commercial solid waste cost depends on many different factors, lncreares in customers' bills varied. Dumpster rates increased by 16.7%, open top containers Increased 8.1%, and compactor rates increased by 5.7%. Rates for customers outside the city increased 4.6%. Internal Service Operations The Internal Service Operations consist of the Warehouse, Fleet Services, Motor Pool, and the Risk Retention Funds. The Warehouse Fund accounts for the financing of goods provided by the Warehouse to other City departments. The Fleet Services Fund accounts for the financing of goods and services provided by the Municipal Garage to other departments within the City. The Motor Pool Fund is responsible for the purchase of City vehicles not budgeted In other funds. The Risk Retention Fund accounts for the accumulation of resources for the payment of workers compensation, general liability claims and insurance policies. Fiduciary Ope ations Expendable Trust Fund The Expendable Trust Fund accounts for several small trust funds which are varied in purpose. i Agency Funds The Agency Funds consist of Payroll, Deferred Compensation, and Other agency funds. The Payroll Fund is responsible for the collection and payment of the City's payroll and associated liabilities. The Deferred Compensation Fund accounts for City employees' Investments In a deferred compensation plan. The Other agency funds account for various accumulations of employee funds. Debt Administration At September 30, 1997, the City had $24,791,730 In General Obligation Bonds outstanding, $31,241,203 in a Note Payable to the Corps of Engineers, $12,639,954 In Certificates of Obligation and $83,890,001 of Utility System Revenue Bonds, The City has maintained an "At' rating from Moody's Investor's Service, Inc., and an "AA-" rating from Standard and Poor's Corporation, on its General Obligation Bonds. Utility Revenue System Bonds have maintained an 'A+' rating from Standard and Poor's Corporation while Moody's Investors u Service, Inc. upgraded Denton's revenue bonds from 'A' to 'A1 " in March, 1993. viii Io 32X111 rz~r' °~'1CLS • 0 Transmittal Letter (continued) As was mentioned earlier, the City has developed a plan for Issuing annual General Obligation Bonds that were approved by the voters In a capital improvements plan. The Certificates of Obligation are used for short-term construction projects and financing motor pool l.ehicles, other equipment and landfill. E Cash Management I The City follows an active program of cash management, keeping all temporarily idle funds In Interest bearing accounts. These accounts are in the form of NOW accounts, certificates of deposits, local Government Investment Pools, Treasury Issues and Federal I government agency Instrumentalities. On September 30, 1997, the annualized yield on Investments was 5.99%, compared to 5.96% and 5.77 % for the same period In 1996 and 1995 1 respectively. Investable funds as of September 30, 1997, were $129.7 million, which Is an Increase from $121.8 million In 1996 and $107 million in 1995. The longest investment maturity has been lengthened from 58 days in 1987 to 1,158 days In 1997. The City's Investment policy Is to maximize yield with a minimal amount of risk. Accordingly, all of the City's deposits are either Insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, or are collateralized by governmental securities. All collateral for deposits Is held by a third party financial institution's trust department In the City of Denton's name. The Investments of the Deterred Compensation Fund In which the City participates are held separately from those of other City funds by an outside trustee appointed by the City. State statutes authorize the City to invest in obligations of the U.S. Treasury and U.S. agencies, obligations of the State of Texas and related agencies, repurchase agreements, investment pools, and municipal securities of any state rated 'AA' or above by a nationally recognized rating service. Risk Management 'The City has maintained a very aggressive program to increase safety awareness and training, Incentive programs, temporary alternate duty, medical case management, and the Implementation of an Occupational Health clinic with a full-time Occupational Health nurse should contain Workers' Compenwior xpenditures growth in the future. Legal expenditures for general liability issues have increo., . steadily over the past three years and are anticipated to continue during the upcoming fiscal year, Workers' General Program • Comoensation Liability Cost Transfer FY '97-98 Projected $1,170,000 $621,000 $1,791,000 $75,000 FY '46-97 Actual 369,155 287,746 656,901 75,000 The City purchases property insurance and Public Official's Liability Insurance from commercial carriers; all other exposures are self insured under the Risk Retention Program. • Q • 1 Ix 7 x 32X10 0 W43i•Tr'M ' Q Transmittal Letter (continued), i Independent Audit The City Charter requires an independent audit of the accounts of the City by an independent auditor. The eccounting firm of Deloitte & Touche LLP was selected by the City Council to perform the annual audit. In addition to meeting the requirements set forth In the City Charter, the audit was also designed to meet the requirements of the Single Audit Act Amendments of 1996 and related OMB Circular A•133. Awards The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1996. In order to be awarded the Certificate of Achievement In Financial Reporting, the City published an easily readable and efficiently organized comprehensive annual financial report. This report satisfies both generally accepted accounting principles and applicable legal requirements. The Certificate of Achievement Is held for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement requirements and we are submitting it to the GFOA to determine its eligibility for another certificate, The City also received GFOA's award for Distinguished Budget Presentation for Its 1996 annual budget. In order to qualify for the Distinguished Budget Presentation Award, the City budget document was judged according to its compliance with specific guidelines established by GFOA. These guidelines help ensure that Denton's budget Is distinguished as an operations guide, financial plan, policy document, and communication device. The City has submitted its 1997 budget to GFOA to determine its eligibility for another certificate. We believe that it continues to meet the Distinguished Budget Presentation Award criteria, I ` Acknowledgments t would like to thank all of the Finance Department staff, the department directors and division heads for their diligent efforts In the preparation of the annual financial report. A tremendous amount of time and effort went into the development of this report, especially by the Accounting staff. I would also like to thank the City Council. It is their strong leadership and ti faithful support of the City that helped make the presentation of this report possible. i . i L3tt~ ~J~J1lQ.\~ 1 Kathy~8ose, CPA Kris n W. Newman, CPA Assistant City Manager of Finance Controller ♦ I ~ eD ! I x. - 75 t 110 32XIO 0 ISAg.'}Nf:!q 0 I I I I I I l I k I E i f I[ i! f i l i 4! 3 i r! CITY OF DENTON ORGANIZATIONAL CHART Cdia Pu CO' Cane{ II Ciry Manage Mwriclp~ A+dg6 [dl Allmnry Aw4[ni Ina neat Auld Crry 66oHw7 la IM Cal Managw K&C Inlwm.lbn OIIKw Coble 7v f k_ P-- ' Aa.nlwd CNri M.n.om AloelwN Cary A661NMtl CNy -14 of cap.,w Coy Managb M.nag• of Mwragw al fmMco OProvs UI{Iis6 Arcounling wa,macm Cng~emingl tsonome Polka rwlrk VGWwo 6weke6 fro'"w1wi'm vnalptranl Pmrb.irgl Sudg.tlfu 61, sell F.0 welu Wn.n.me fee." e i~.e6 ury Molw Ped { Axpwl Iluewn Awoveae Ewwmjtp U01k1 OwM.Pmwri . [vel.me Se.k. {teal weal losdry WalMial6 Inapwliona Pw11 a MwaoM1an hM Wwta MA "Po Cowl lM ary CamuNry Cal" 0 Ma/M Oeualepmlenl Smokes Pw{Nal Managwrntl 2:5 K ~Q 32x~D e 0 I~ Certificate of Achievement for Excellence in Financial Reporting Presented to City of Denton, Texas For its Comprehensive Annual Financlai Report for the Fiscal Year Ended ` l September 30, 1996 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 tiahose comprehensive annual financial reports (CAFRs), achieve the highest standards in government accounting and financial rep-jrting, President Etecuu,e Director 1 ((II~ !t "r Y • 0 CITY OF DENTON List of Principal Officials September 30, 1997 i ELECTED OFFICIALS TWO Name Mayor Jack Miller Mayor Pro-Tom Eulins Brock Councilmember Roni Beasley Councilmember Mike Cochran Councilmember Neil Durrance Councilmember Sandy Kristoferson Councilmember Cart G. Young, Sr, i I l CITY OFFICIALS I Title _ Name City Manager Ted Benavides Deputy City Manager Rick Svehlo Assistant City Manager of Finance Kathy L. Dugose Assistant City Manager of Utilities R. E. Nelson Assistant City Manager of Operations Mike Jet • City Attorney Herbert Prouty Municipal Judge Robin Ramsay City Secretary Jennifer Walters I A xlii I - ? Y 10 32 x 10 • o I I i I 1 i • c J~ o . • Xiv. 11 o 32XIO 1 0 # Deloitte & Towle w 1 /1 CityC'enterTowor11 Teiephone 18171347-3300 , ` Suae 2950 301 Commerce Street I Fort Worth, Te xas 76102 i INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Iv(embers of the of the City Council City of Denton, Texas We have audited the accompanying general purpose financial statements of City of Denton. Texas ("City"), as of September 30, 1997, and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility, of the management of the I City, Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in 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 general purpose financial statements are free of material I misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our i opinion. In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the City at September 30, 1997, and the results of its operations and the cash nows of its proprietary fund types for the year then ended in conformity With generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City. These financial statements and schedules are also the responsibility of the management of the City. Such addi6ot,al information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, In our opinion, is fairly stated in all material respects when t considered in relation to the general purpose financial statements taken as a whole. • i D810RUTalCtfa Tt> MIllu ~ Ir~ernatlonal I0 32xi[i Opp s , a~muee . O rcyanr The statistical data on pages 123.150 are presented for the purpose of additional analysis and is not a required part of the general purpose financial statemems of the City. Such additional information has not been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, accordingly, At express no opinion on it. In accordance with Government Auditing Standards, Ne have also issued our report dated January 9, 1998, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. (DJ.W~ Janus 9, 1998 I I . i I' I I I i a i tid. I Itt! II 75 x 10 32x 10 O I CITY OF DENTON, TEXAS l 1 I I I ~I i I .3. CanpraAmifw Annul FinandM Rspat 2xI~ 32x~a • r e , '7S'ti..*'.% ' a S a9 CITY Of DENTON, TEXAS COMBINED BALANCE SHEET • ALL FUND TYPES AND ACCOUNT GROUPS i SEPTEMBER 30, 1997 I Cewrrvnemof Fund Types gave A64ET6 AND OTHER DIMT6 Congeal Special Revenue Debt Service Capital Projects Cub end deposits (Novo 21 9 227,147 9 662,260 1613,222 6 1,003.440 Investments INote 2) 71987,487 767,686 99.778 10,017,619 Receivables (net of allowances for uncollectlbhe0- Tares 1,042,885 . ACcounta Unbill9d utility service Accrued Interest 41,036 13,521 880 109,950 Other 676,369 143,617 1,04) 79,060 Due from other funds Wove 111 421,941 49,368 952,450 ' Due from other govanmeMS 679,906 - 19,109 a i Merchardiso inventory Prepaid items Oe}emd bond Issuance coats Restricted seets Cash and dpoalts Wove 21 i investments INato 11 Accrued interest t Accounts receivable ' Due from other funds Advance to other funds Fired eeeete (net, whore applicable, of eccumulsted depreciatlon) INote 11 ' . Amount available in Debt Service Fund Amount to be provided for retirement of long farm 9ebilitiee Total Assns and Other Debits 110,d92,687 12.155,289 4716,005 112,150,647 IContinuedl {I • The eccompanylnq note to linancial statements are sn integral pert of this etstoment. O • 1 4 I Comgtahentlve Anti Wisncid Milli - i 32~ i~ , e a { CITY OF DEWON, TFXAS I 1 Fduaisry Fund Totals I Fropdetsry Fund Typa Type Account Groups IMemor■ndum Ordyl Trust and Goi,ersl Fixed 0e66rel Long- September 30, September 30, Emorodso Imemsl SonAce Agency Mats Term Usbdides 1997 11N f 202,703 1 311,121 13,199,557 t 1 f 6,949,659 6 12,605,360 2,289,923 943474 22,106,077 23,826,958 I 1, 042,195 1,014,160 91005,239 97 5,005,335 5,076,964 1 6,776,340 6,775,340 5,662,608 700,050 169,939 1,062,257 1,508,349 1,125,261 33,067 7,639 2,063,993 1,401,071 325,341 211,337 1,860,484 12,193,522 661016 957,979 722,419 2,092,315 2,604,734 21701,354 • 1,174 1,174 183,895 1,139,796 1,129,716 1,221,326 5,763,131 140,310 6,923,721 3,583108 96,939,614 9,534,177 106,473,791 11,361,756 345,197 345,297 357,012 1,168.748 1,166,746 • 8,102,771 3,781,714 3,781,714 4,131,784 r~ 111,199,519 7.121,796 116,604,111 306,933,132 291,194,213 . 504,750 1504,760 682,191 30,636,590 30,926,690 29,373,310 (201,303,3!2 920,976,814 13,907,116 1118,604.821 831,341,350 4509,246,441 8416,361,665 aeeseee~s 0 •6• Compre7renslye Annual Flnendel Report in, a~, , 32x~~ MORAL MMIMIL-MA1112- r=:~vtrrs ' O I CITY OF DENTON, TEXAS COMBINED BALANCE SHEET • ALL FUND TYPES ALD ACCOUNT GROUPS (Continued) SEPTEMBER 30, 1997 I Governmental Fund Types LIABILITIES, EQUITY AND OTHER CREDITS General Special Revenue Debt Service Capital Prcos is I ~ Usb3itwo: Acc ou ms psysble and accreed" nll;Uas 41,438,261 0 190,763 1 01,577,060 Retal"go payable 46 62,212 Aceunwleted unpa • < Qantate abanen (Note 41 ' Dapowto 66,833 Payable from restricted nuts - Accounts payable and accoued expenses Ratainags payable . Accrued interest Revenue and gensrsf obligation bonds payable, current (Note 4) - Accrued Interest Due to other lunch Nolo 11) 1,032,032 5,901 2,055 270,722 Other fisblhi os 20,615 Advances from other funds - Deferred row must 69,161 266,941 211,190 42,174 Losses payable INotee 4 end SI - Gemersl obligation bonds payable (Note 41 Certificates of obligation INcle 41 Revenue bonds payable Inet of bend discount) (Note 4) - Claims payebte (Note 6) - . Notes payable (Note Il ' Landfill closurdpostcloeure costs (Note 13) Total liabilities 62,706,430 11,121,450 1220,245 61,063,120 t ~E IContlnusdi I The accompanying notes 10 fnanclol statements its an Integral part of We sbtemem. Q CIF u I I •e• Comp6h6n31v9 Annuel Manciel Report 25 x 10 3210 e o CITY OF DENTON, TEXAS Fiduciary fund Touts Proprietary Fund Typss Types Account Groups (Memorandum Only ' Trust end General Fixed General Long- September 30, September 30, Entarpriss Internal same$ Agency Assets Term Usbllities 1917 1996 f 1 1,27<,664 11,615,171 13,199,751 1 / 9 16,769,511 6 10,330.146 11 e:.111 60.1.9 760,1$1 29,935 3,716.207 4,574,963 4,420ASS 1,196.424 1.256,307 1,164,321 I 296,109 296,109 142,051 1,691,976 1,996,976 1,910,469 8,011,661 6.011,661 619091632 22,491 22,491 22,674 394,372 146,312 1,160,464 31,096,301 29,945 2,662 3,741,114 3,711,714 1,131,713 • 611,411 647,999 • 28,270 21,270 119,914 430,171 72,900 24,267,951 24.711.730 22,140,341 7,267,011 1,341,025 3,261,111 12,001,293 13,116,641 71,510,001 - 71,510,001 13,110,001 1,017,017 1,017,027 2,625,412 r 31,241,203 31,141,203 31,113,459 1.424,390 _ 1,414,320 21900,561 • 1140.402110 44,247,201 13,891,7S7 1 131,341150 1I96.003,411 1207,623,!71 i it i •7• Comprehensive Annual Financial Moppet 7~~ x 32x111 01 • O s CITY OF DENTON, TEXAS _ COMBINED BALANCE SHEET • ALL FUND TYPES AND ACCOUNT GROUPS (Concluded) SEPTEMBER 30, 1997 Governmantal Fund Types UAUUTIES. EQUITY AND OTHER CREDITS General special Isevenus Debt SeMce Capita Projects Fund Equity, Contributed capital • (net, where applicable of scoumulated depreciation) ( - 1 1 1 Investment In penerel fixed assets (Note 31 ' ReWned sarnings Reserved for bond redesmmt (Note 4) Rasomed for capital projects ' Reserved lot flast replacement i Reserved lot landli6 retirement Reserved for debt r0rsment - Reserved for dumpstat teptscement Reserved for rate s+abiliaton Reserved lot working capital ` Reserved for amsrpeney - Mssmsd for water lower - Reserved for lnfraetrucwre financing ' Reserved lot conLeparwy Reserved for future claims - - i Reserved lop cspilal construction Reserved fop suthorired eapand4ura Unreserved Fund balances • Reserved for debt fordo 504,760 Reserved for encumbrarmae 691,114 635,s61 672,60! Reserved for capital projects P,274,925 , Unreserved • ' Designated foi 3ubeequsm yore' expend.tura 144,744 Undealgnated 6,136,50E 499,270 telot Equity and Other Crediu 7,776,437 1,033,129 504,760 10,117,927 Trial OtNr her crkquity Q , 0lCradlta 110,462.667 {l,1S5,29! 11715,005 $12,160,641 end `)r The occompanyln6 wis to finarwlst stetemante aie an Integrei Pert of thie etetemenl. I ~ I •9• I Con+pfehansive Annual Financial RapM-- I 10 32 Io s . a { CITY OF DENTON, TEXAS I i Fdwoiery Fund Totals Piopistary Fund Types Types Aneount Groups 1Memotandum Orgy) + a~~e Trust and General Fixed Gansrrl ton/ Ssptsmbsr 30, September 30, I Enterprise internal Serdoa Agency Assets Term I.+bilin; 1197 1996 I 1 14,076,477 11,210,656 1 1 1 1 15,3!6,1!3 6 16,221,310 tU,604,121 111,604.121 101,661,744 12,646,145 12,646,145 12,102,157 I 16, 34!,643 140,370 15,411,012 17,446, 230 { 5,416,3l9 6,416,710 6,421,012 E 650,975 650,976 466,975 367,100 367,100 207,100 75,000 75,000 76,000 65,350,000 $5,350,000 45,132,000 2,309.000 2,309,000 21162,000 6,17b,000 5,715,000 5,314.000 760,000 760,000 560,000 2,000,000 2,000,000 1.610,000 700,000 700,000 4,104,791 4,104,797 3,170,531 1,050,000 1,050,000 13,000 11,000 12,000 66,799.472 6,243,470 12,142,942 62,349,404 604,760 662,141 • 2,041,355 1,159,725 r 9,374,125 7,502,073 s ~ 144,744 144,744 • 1,444 7,444.223 7,621,625 167,191,612 16,221,673 1,444 111,604,92t 322,243,013 211,430,109 1 Q 6306,303,392 120,515,374 13,107,116 1116,604,121 131,241,350 1501,246,441 141/,354,916 Q Q ..aer>sasa~. Corr p lhon11v6 Annual Flnaneial Ropat - - )KI❑ 32x 0 • 0 0 --CITY OF DENTON, TEXAS COMBINED STATEMENT OF REVENUE5, EXPENDITURES AND CHANGES IN FUND BALANCES AtL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30. 1997 Oa u,vnmir Fund TYp" D4nard 600;w R4vo,uo Debt service camid Prg4eb RE ME& Taw 419.417,320 1 690.141 14,393,08/ 4 Ucen4w .,d ponr4b 121,647 j Frmcld" f"4 9,192,694 Mw " Wohwee 1,149,062 I, Few foe 4mdcw 1,312,826 MAD Intor"t rov"uo 610,619 63,504 499 445,361 Nbryevurvn4ntol 661,851 2.80.020 87,288 Conpelmlon4 Matallonsourr M.350 534,1187 165,112 641,193 Totol Rarum44 31.S01196 4.699,47S 4.641,709 1.060642 WENOrrURIC Cwr4nt • Omer41 Oovemrnent 1.714.807 3.214.206 Pub8c 4414ty 14,667,747 511,610 . Pw56e *WkS 6.038.015 2.450 Par1w and recr4ot'on 2,980.631 716.949 camel outlay $91.416 594.257 9.920.!09 II Debt lemic4 • Principal wilomom 3.632.417 1nt4rwt and raced chary" 1.313.606 iw41 E.perwitwoo 32.254.918 6,019367 4,904,023 9,9",209 EXCESS OF REVENUES OVER IUNDEIII EXPEN017URES 1749.2701 1319,8921 13572641 14,159,8671 OTHER MAKING 0 ARCE1 IU6E11 w Proudc of long turn d45t 4,100000 Opwvt;ny troalu4 in 3.026,502 237.011 179.141 2,392,672 Opu4liq trmcfar4 out, 111303,4501 1436.101; 15921 1ot41 Other Fivocin9 5"co4 IUm,I 1,722,052 it 119, 3341 179841 7, 092.080 MISS OF REVENUES ANO OTHER SOURCII OVER IUNDEN LXPENOtTUREB AND OTHER USE$ 176.632 1329,226; 1177,4071 2,232,413 FUND BALANCE • Odo64r T 1.800.605 1,563.085 662,167 7,951,114 FU NO IALANCE• 24pteml»P 30 1 7,718,437 $1,031,139 9 504,180 9/0.111,521 0 The 4ce"myho eunw to fnmc;d ItROrnnt4 are on W , A port .f !hit tte4nant. I • 10. C6mp6Mn9Nr1 Annul FinlnaENtl R9pat 1 10 32xl0 0 CITY OF DENTON. TEXAS TK~N FIdu414ry Fund IMrn WA ONO TYFw Yea &Jed rmo Exp"a61. Tmat 54yuinba 30, 1997 OW "W 30, 1990 1 6 174.171,299 177.603.799 • 671.017 672.670 1,592,091 9.007.719 1,949067 1,174,060 ~ 9101.04 I'm 307 I 1.799.973 7,176.038 f 3,341.107 3.640077 E 78.331 79.331 71131 • - 1050137 7,023 407 11.331 41.846.113 40.41e.113 37.710 17.070.795 11,060,763 16,379.757 13,961,787 6,040,466 4,396.301 1 I • 3.097,617 3.344 122 • 1,107,178 9.765.051 1 I 1 • 3,532 417 0.64.616 7,313,000 1,411.111 37.780 18.117.495 43,669,703 N,1491 16,311.9171 13,147.4101 , ' 1700.000 2.709000 . C835 Ogg 1.141,701 I 11,130.41101 1031, 4111 1,904,043 3,013.914 Is 0491 7.47.003 411,399 I 18.313 77.077,344 16,145,000 • ~rl 1.44 511,$70,007 617,011,341 Q Compr1A9n61v/ Annual Flnenelel F,epoel ff~~ ~y 1: V .Sf ~4 v ~ f i-) x.. 7 - 7 s o CITY OF DENTON, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE RECREATION, POLICE CONFISCATION, AND EMILY FOWLER LIBRARY FUNDS, AND DEBT SERVICE FUNDS (BUDGET BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 General Fund Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes $18,781,576 119,497,320 1 735,744 Licenses and permits 417,810 621,642 104,032 Franchise fees 4,657,039 6,592,694 1,9351555 Fines and forfeitures 1,709,980 1,849,082 139,122 Fees for services 1,105,219 1,372,826 167,607 Interest revenue 720,000 680,619 139,381) Intergovernmental 630,952 581,854 149,098) Miscellaneous 695,606 412,359 1183,1471 Total Revenues 28,697,662 31,606,395 2,810,534 EXPENDITURES: Current - General Government 9,011,841 8,604,186 407,555 Public safety 14,881,632 14,651,911 29,621 j Public works 5,132,893 4,995,139 237,764 Parks and recreation 3,025,683 2,979,339 48,347 j I Capital outlay 637,113 656,305 82,408 Debt service - Principal retirement interest and fiscal charges TotatExpenditures 32,689,662 31,885,977 803,685 EXCESS OF REVENUES OVER IUNOER) EXPENDITURES 13,991,8001 1377,5811 3,514,219 OTHER FINANCING SOURCES (USES) ® Operating transfers in 2,999,962 7,025,602 25,540 Opertling transfers [out) 11,303,4501 11,303,450i Total Othar Financing Sowess (Uses) 1,698,512 1,722,052 26,640 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDERI EXPENDITURES AND OTHER USES 12,295,288) 1,344,471 3,639,159 FUND BALANCE • October 1 6,000,209 6,861,363 681,164 FUND BALANCE • September 30 1 31704,921 1 8,209,634 1 4600,413 0 The accompanying notes to financial slNements art an integral part of this statement. •12• Comprehen lvs Annual fln"al Ripon w, 7 32 X ❑ ' 4D 0 ! CITY OF DENTON, TEXAS I l Special Revenue Recreation, Police Confiscation, and Emily Fowler Library Funds Debt Service Fund I Variance Variance Favorable Favorable Budget Actual (Unlavorable) Budget Actual (Unfavorable) 1 1 1 14,393,098 44,393,088 1 698,431 671,465 126, 9651 6,000 16,977 10,977 469 489 61,750 79,358 27,608 131,709 155,192 23,483 756,181 787,801 11,620 4,524,797 4,648,769 23,972 39,965 38,928 1,037 26,400 26,400 605,718 605,892 11141 118,735 49,381 69,348 3,657,272 3,532,417 124,855 1,422,273 1,37.1 708 48,657 790,878 694,207 98,611 6,079,545 4,906,023 173,522 1 (34,6971 73,594 108,291 1554,748) 1357,254) 197,494 I 15,704 16,704 179,847 179,841 (43,317) 131,317} 12,000 (43,317) 115,6131 27,704 179,847 179,847 178,0141 57,981 135,995 074,9011 1177,407) 197,494 A 128,0201 152,745 175,765 1428,8761 682,161 1,111,142 0 1. ; I 1;104,0341 1210,728 1314,760 ~ 1 1803,876) 1 504,760 11,308,838 -13• I Ctxnprarmslw Annual iinanclal Report - {I - - "w a 75 Y 32xILI 0 Q CITY OF DENTON, TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS • ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Proprietary Fund Types _ Enterprise Iniernal Service OPERATING REVENUES: Electric service 9 72,048,616 e Water service 14,700,321 wutsweter service 9, 880, 007 Charges for goods and servlcss 7,666,758 7,094,637 Premiums 6,674,780 Misce9enaous 178.493 1.696 Total Operating Revenues 104,383,896 12,671,013 OPERATING EXPENSES: Purchased power 30,046,081 Fu 6,797,386 Purchase of water, 77,227 Salaries and wages 11,908.079 691,261 Materlsls and supplies 11852,379 3,913,712 Maintenance end repairs 3,610,688 23,640 Depreciation 7,187,167 1,666,009 Insurance 4,104,704 Administrative cost 5,168,272 ClowrelPOalciseurs cost 118.764 Miscellaneous 6,332,017 883,211 Total Operating Expenses 84,907,266 11,481,107 Operating Income 19,476,639 1,189,218 NONOPERATINO REVENUES !EXPENSES!: Interest revenue 6,720,216 666,616 Interest expense and fiscal charges 16,726,9001 1100.1961 Ot1ur 1,533,290 316,426 Total Nonopateting Revenues (bilaneas+ 11626,666 $82,746 lnoome tafore Operating Trar,slsts 21,003,306 2,071,062 OPERATINO TRANSFERS IN {OUTh Operating transfer in 45,168 . Operating transfers (out) 13,096,289) !163,6211 Total Operating Translate 13,096,2191 1108,3661 Net Income 17,007,016 1,01 Add: r4wirclatian of Fixed Antis seguIred wnh Contributed Capital 1,866,923 375,096 Incresu in Retained Earnings 10,572,939 2,336,702 RETAINED EARNiN6S • October 1 134,051,096 12,610.316 RETAINED EARNINGS -September 30 1163,824,036 116,018,017 • Ths eccompanving notes to fitwclsl statements are in Integral part of this statement. 1 14• Compiallensive Annual Financial Report 910 32XI[i 1 I O l 1 ,CITY OF DENTON, TEXAS__ i I I ' Totals Wernonndum OW I Year Ended , September 30, 1907 September 30, 1990 8 72,046,616 1 60,533,160 14, 700, 321 16,328, 606 0,680,807 9,0071656 14,601,205 13,417,907 5,674,780 4,600,478 I 160.169 120609 111.064,906 113,006,626 39,946.067 41,460,061 + 6,707,366 6,981,645 77,227 60,200 l 12,699,340 12,115,697 ` 6,776,001 6,450,019 3,634,728 4,012.550 0,052,176 8,412,740 4,104,704 3,636,967 61168,272 0,405.707 118,764 254,302 6,215,288 6086106 66,389,053 05,945,414 20,845,865 16,161,031 6.380,002 0,006.368 16,827,0061 (7,111,040) 1,940,706 175.680 j 2,400,412 (1,319008) 23,we'2b7 14,641.033 M1 49,166 (4,140,013! (008,6141 { 14,104,045) (908.6141 18,970,622 13,033,119 1 2,241,010 2,104,935 21,211.15411 10,038,064 _ 147,030,411 131,602367 ~ 1166.642,062 1147,830,11 I 0 ~ 1 •16• ComprehenNve Anrwd FlneneW Report - f, ry 75 x 10 32x Q _ 1e.3.n6nd Real 0 0 CITY OF D-NTON, TEXAS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Proprietary Fund TYpae Fntarpriee Informal Service Cash flows from opsreting activities: Cash received from custo,nere 8110,647,924 $11,315,610 Cash paid to employees toe services 167,062,399) 1702,4011 Cash paid to supptoro (14,2494221 !13,172,150) Net cash provided by operations 29,61603 1,441,068 Cash flows from nonaphat hunch) ectilklse: Contributions to Float Replacement Fund 1299,088) Operating transfers out to other funds 13,986,299) 1108,3561 Principal payment on long-term edvencas r+om other funds 0.050,000) ~I Payment received on longterm advance to other funds 1,060,000 Contributions to others Prornds from others 246,966 33,369 Nat ash fund tor) honcephal financing activities 14,049,421) t74,997) Cash flows fran aephaf art:' related financing activities: Proceeds received rrom contributed Capital 406,486 Principal payments on revenue bonds and catificales of obligation 18,909,6321 1394,6491 r Interest end fiscal charges (5,927,963) 199,6411 Proceeds from issue of revenue bonds end certificates of obl.get,on Proceeds from heue of note parable Principal payments on notes payable 132.455) Principal pe i•nenrs under capital Irate obligation 136,0951 (41,084) Acquisition end construction of fixed assets 19,768,726) (2,290,674! Proceeds from sale of fixed assets 263,067 Net ash Iund foil Capital and telated hunting octivII 121,268,6081 12,649,8201 Cash flow 9 from Inveasmg ectilwil s Proceeds from sets end maturities of Investment securities 106,996,400 9,768,541 Purchase of Investment secuifles 1114,111,2031 18,603,782) 1•11erest received on invastmants 6,685,046 690,777 Nei ash provtdd by fused for) Investing octlvh)ns 12130,690 646,668 Net increase (decrseeet in cash and cash equivalents r 1,078,796 1637,263) Co, If and ash squivalanls • October 1 A,309,269 Si Cash and cash equivalents • September 30 If 5.986,054 1 461,499 (Continued) The accompanying notaa to financial statsmants are an integral part of this statement. 0 •16• Comptshanatve Annual Financial Report r' 2501 32x~Q r 0 CITY OF DENTON, TEXAS_ I ToWs IMemorandum Only) Year Ended September 30, 1997 September 30, 1 1128,163,443 1103,869,270 (87,784.800) (156,708,162) (27,42 2,0721 122,005,330) 30,968,571 26,142,776 11 I (299,0981 1167,877) 14,104,6461 (906,814) 1 11106010001 11,050,000) 1,060, 000 1,050.D00 f (8,2491 1 279,316 195,358 (4,124,418) (689,582) 406,486 2261,163 (6,304.4801 (5,090,4841 1 (6,027,624) 17.003,2201 44,260,000 282,360 132,4561 (33,905,0921 163,179) (223,834) 112,049,300) (13,310,938) 283,067 188.093 1 123,801,4861 (14,541,962) 114,654,017 87,311,280 1122,914,966) 003,923,7071 6,376,823 5,991,609 S 11,886,1161 110,620.8181 1 I, t 39.542 1909,584) 5,298,011 6,207,695 1 8,437,653 1 6.298,01 1 I - - Comprafansive Annual Financial Rapart ` r. 2 ❑ 32 x ❑ A O CITY OF DENTON, TEXAS COMBINED STATEMENT OF CASH FLOWS . ALL PROPRIETARY FUND TYPES (Concludedl FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Enterprise Intemal Service Reconciliation of proprietary Fund Operating Income 10 Net Cash provided by Operating Activttlal Operating income $19,476,639 $1,10,216 Adjustmeri Depreciation expense 7,187,167 1,865,009 Loss (Gain) on sale of fixed asset 16,6881 638 Closure/Postclosure expense 1-18,754 - i Decrease Increase) In receivables 12,301,517) 16,177 Decrease (Increase) in due from other funds 8,772,134 2,504,362 Decrease Ilncrease) in Inventories 219,077 1322,4571 Decrease (Increase) in prepaid items 1,836 179,747 Increase (Decrease) in accounts payable 3,989,119 1,131,495 increase (Decrease) in leases payable L Increase IDecreasel in accumulated unpaid compensated absences 32,837 111,1411 Increase (Decreast) in due to other funds 17,973,855) 13,603,513) Increase (Decreasel in claims payable 11,508,465) k Total adjustments 10,038164 251,652 J Net cash provided by operating activities 129,515,503 it 1,441,068 Supplemental Schedule of Noncesh Capital and Rai Financing Activities Noncash activity during the year consisted of contributed capital from contrartors and developers for the Enterp•ise Funds and the Internal Service Funds in the amount of $1,325,802 and 1573,554, respectively. , s i The accompanying notes to financial statements are an integral part of this statement. Comprehenstva Annual Financial Report 25 111 32xI~ 0 ~r I CITY OF DENTON, TEXAS I l Totals (Memorandum Only) Year Ended September 30, 1997 September 30, 1996 J i I E 120,665,8 5 5 118,161,031 9,052,176 8,412,740 16,050} 8,401 118,754 2'4,302 (2,2 85, 3401 639,197 11,276,496 19,966,452) 1103,3801 619 237 181,583 1181,5831 5,120,614 1418, 4141 ff (12,376) 21,696 65,791 (11,577,3681 10,152,524 (1,508,4651 (771,620) 10,290,716 8,981,747 130,958,671 026,142,778 s Comprshenefvo AmwA Financial Aspen C) 32X10 o t CITY OF DENTON, TEXAS i i i E ff l ~ t I~ • j ~ Q • 20 Comprohenilra Annual FlnanNal R*W { v,,.. x lo 32 x Q 0 0 4 CITY OF DENTON, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I (1) SUMMARY 0° SIGNIFICANT ACCOUNTING POLICIES The City of Denton ('the City') was incorporated September 26, 1866. The City operates as a Home Rule City, under a Council-Manager form of government and provides the following services as authorized by its Charter: public safety (police and fire), public works, parks and recreation, f electric, water and wastewater utilities, solid waste, and general administrative services. ` The City is a municipal corporation governed by an elected mayor and six-member council. The City receives funding from state and federal government sources and must comply with the requirements of these funding source entities. However, the City is not included in any other governmental "reporting entity," as defined in pronouncements by the Governmental Accounting Standards Board i"GAW) Statement No. 14, 'The Reporting Entity," since Council members are elected by the public and have decision-making authority, the authority to levy taxes, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASBI is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies: A. Reporting Entity !E The City is governed by an elected mayor and six-member council. As required by generally accepted acccunting principles, these financial statements present the City (the primary government) and its component units, which are entities for which the government Is considered to be financially accountable. Blended component units, although legally separate entities, are, in vilostance, part of the City's operations and so data from these units are combined with data of the primarygovernment. fb A discretely presented component unit, on the other hand, is reported in a separate column In the combined financial statements to emphasize it is legally separate from the City. The City had no discretely presented component units at September ,10, 1997. At September 30, 1996, the Denton Economic Development Board was considered W be a blended component unit of the City. As funding for the Board failed to pass in a public election :Ire Board was { dissolved. 1 I ~ I B. Fund Accounting 0 yr The accounts of the City are maintained on the basis of funds or account groups, each of j which is considered a separate accounting entity. The operations of each fund are summarized by providing a separate set of self-balancing accounts which comprise its assets, liabilities, fund equity, revenues, expenses and expenditures. The following funds and account groups are used by the City: ,21, I i 10 32 X I A 0 Notes, C;ty of Denton (Continued) September 30, 1997 Governmental Fund Types General Fund- The General Fund is the principal fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. From the fund are paid the general operating costs, the fixed charges and the capital improvement costs that are not paid through other funds. Special Revenue Funds- The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. These funds Include the grants from the Department of Housing and Urban Development (Community Development Block Grant) and from the Texas Criminal Justice Division, Department of Education, the recreation fund and miscellaneous other revenues. Lebt Service Fund- The Debt Service Fund accounts for the payment of principal and interest on general long-term liabilities, paid primarily by taxes levied by the City, and for the payment of principal and interest on capital leases in the governmental fund types. ' i Coral Projects Funds- The Capital Projects Funds account for the acquisition of capital facilities being financed from bond proceeds, contributed capital, or transfers from other funds, other than those recorded in the Enterprise Funds and the Internal Service Funds. Proprietary Fund Types Enterprise Funds- 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 of the governing body Is that the costs (expenses, including depreciation) of providing goods or services to the general public, on a continuing basis be financed or recovered primarily through user charges. These funds include the Electric, Water • and Wastewater Utility Systems (Utility System) and the Solid Waste operations. Internal Servhe Funds- The Internal Servict Funds account for the financing of materials and services provided by one j department of the City to other departments of the Clty on a cost-reimbursement basis. i nese funds I include the Fleet Services Fund (vehicle maintenance), the Warehouse Fund, the Motor Pool Fund, and j O the Risk Retention Fund. k 0 • IIII 22 f .~.~.I~ 32x1 e 0 ` Notes, City of Denton (Continued) September 30, 1997 I Fiduciary Fund Types Trust and Agency Funds- Trust and Agency Funds a-e used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. These Include the Expendable Trust Fund and Agency Funds. The Expendable Truat Fund is accounted for in essentially the same manner as Governmental Fund Types. The Expendable Trust Fund is comprised of several trust funds of varied purpose. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations, The Agency Funds include the Payroll Fund, the Deferred Compensation Fund and other miscellaneous funds. General Fixed Assets Account Group The General Fixed Assets Account Group represents a summary of the fixed assets of the City, other than assets of the Proprietary Funds. Capital outlays in funds other th. n Proprietary Fund Type are recorded as expenditures of those funds at the time of purchase and subsequently recorded for control purposes in the General Fixed Assets Account Group. General Long-Ten Liabilities Account Group The General Long-Term Liabilities Account Group represents a summary of the long-term liabilities of the City paid principally by taxes levied by the City. This account group does not include long-term debt accounted for in the Proprietary Fund Types. C. Basis of Accounting The accrual basis-The Proprietary Fund Types are accounted for on a flow of economic resources measurement focus. Accordingly, the accrual basis, whereby revenues and expenses are identified in the accounting period in which they are earned and incurred and net income is determined, is utilized for these funds. The City applies all GASB pronouncements as well as the Financial Accounting Standards Board pronouncements issued on or before November 30, 1969, unless these pronouncements conflict or contradict GASB pronouncements. ModiRed accrual basis-The Governmental Fund Types ere accounted for on a flow of financial resources measurement focus. Accordingly, the modified accrual basis is used for these funds and the Agency Funds. Modifications in the accrual basis for these funds Include the following: A 1. Revenues are recognized when they become both measurable and available for use during the year. Those revenues treated as being susceptible to accrual include taxes, interest and intergovernmental revenues Property tax revenue is recognized independently of receivables in the fiscal year fur which taxes have been levied, provided they bccome available. Available means then due, or past due and receivable during the current period, collected within the current period or expected 10 be collected soon enough thereafter to be used to pay liabilities O of the current period. Such time thereafter should not exceed 60 days. Revenue sources q from licenses, fines and forfeitures, service charges and other miscellaneous revenues are recognized as the cash is received. 2. Expenditures are recognized when the related fund liability is incurred, except for interest and principal on general long-term debt, which are recorded when due, and vacation and sick leave, which are recorded when payable from current available resources. f 23 - If.] 32XIU e 0 Notes, City of Denton (Continued) September 30, 1997 3. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. D. Budgets and Budgetary Accounting The City Council follows these procedures as prescribed by City Charter, in establishing the budgets reflected in the financial statements: 1. At least sixty days prior to the beginning of each fiscal year, the City Manager submits to the City Council 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 prior to the adoption of the budget in order to obtain taxpayer comments. 3. The annual budget adopted by the City Council covers the General Fund, Special Revenue Fund (Recreation Fund, Police Confiscation Fund, and Emily Fowler Library Fund only), the Debt Service Fund, the Enterprise Funds, and Internal Service Funds (except for the Risk Retention fund). The budget is legally enacted by the City Council through passage of an x j ordinance prior to the beginning of the fiscal year. The general purpose financial statements reflect the legal level of control, which is at the appropriation level by function activity within an individual fund as approved by City Council. 4. The City Charter provides that the City Manager has the authority to transfer any unencumbered appropriation balances from one appropriation to another within a single function (office, department or agency). City Council approval is not required at this level. The Charter also provides that within the last three months of the fiscal year the City Manager must have City Council approval of any transfer of unencumbered appropriation balances or portions thereof between functions as well as any increases in fund appropriations. Individual amendments were not material in relation to the originzl appropriations which were amended. All budgets are adopted on a basil consistent with generally accepted accounting principles except that for the Governmental Fund Types, Proprietary Fund Types, and the budgeted Special Revenue funds encumbrances are treated as budgeted expenditures in the year of commitment to 4 ® purchase and for the Proprietary Fund Types depreciaron expense is not budgeted. All unexpended appropriations at fiscal year end lapse to the appropriate fund balance except for those of the multi-year grants andlor projects. Encumbered eppropriations ,,a carried forward to the succeeding year. There were no s.ipplemental appropriations necessary during the year. A reconciliation of revenues any expenditures on the budgetary basis to revenues and I expenditures on the modified accrual basis for Governmental Fund Types is as follows: ,tS ® ® Q f ' I 1 24 f { r 1 Oa m ~rf F r~?' tjm~ lr LJ 3 2 L l O I I i Notes, City of Denton {Continued} September 30, 1997 F ' General Special Reve sue r Fund Funds Revenues and Other Sources: Budgetary basis $34,533,898 S 783,505 Other Special Revenue Recreation Funds unbudgeted 41,781 All other Special Revenue Funds 4,111,263 _ Revenues and other sources on modified accrual basis 34,533,898 4,936,549 Expenditures and Other Uses: Budgetary basis 33,189,427 756,932 Other Special Revenue Recreation Funds urbudgeted 1,671 All other Special Revenue Funds 4,707,172 Encumbrances (net) 368,639 Expenditures and other uses on moduied accrual basis 33,558,066 5,465,775 Revenues and other sources over (under} expenditures and other uses on modified accrual basis $ 975,832 $ 1529,226) j E, Cash and Investments For the purposes of the 'Statement of Cash Flows," the City considers investments with maturities of under 90 days at acquisition to be cash and cash equivalents. Investments are carried at cost which approximates market value except for Investments in the deferred compensation plan which are carried at market value. Interest earned on investments ` is recorded in the funds in which the investments are recorded. F. Unbilled Receivables l The City accrues amounts icr utility services provided in September, but not billed at September 30, 1997. G. Inventories I Inventories are valued at the lower of cost or market. Cost is determined using a moving average method. No inventories exist in the governmental fund types. H. Fixed Assets 0 I Enlerpdse and lntemal Service funds- C , e recorded at cost, including net interest during the construction period. 1 Contributed I recorded at fair market value at the date of contribution. Depreciation is recorded on e ° class of depreciable property utilizing the straight-line method over the estimated 1 useful lives cl the assets. i • 26 f 5XIq 32X Mimi 0 0 Notes, City of Denton (Continued) September 30, 1997 Estimated useful lives are as follows: Useful Life Fixed Asset (Years) ENTERPRISE FUNDS- Becuk System E General assets Structures 50 Equipment 5 20 Distribution assets Structures 50 I! Equipment 20 33 Transmission assets - Equipment 20 33 Internal combustion assets • Structures 50 - Equipment 13 - 20 Steam power assets Structures 50 Equipment 20 35 Water and Wastewater System I Structures 50 Water and wastewater mains 20 33 Equiprigent 10 20 Furniture and fixtures 10 Water Storage Rights 40 100 ` Surd wane Vehicles and equipment 10 1 INTERNAL SERVICE FUNDS- Vehicles and equipment 1 - 10 Renewals and betterments of properly and equipment are capitalized, wher ! ,s normal repairs and maintenance are charged to expense as incurred. s Genera! Fixed Assets- General fixed assets are recorded as expenditures In the General, Special Revenue or Capital Projects Funds when acquired. Such assets are capitalized at cost in the General Fixed Assets Account Group. Significant gifts or contributions of assets are recorded in the General Fixed Assets Account Group at the fair market value at the date of acquisition, Public domain (infrastructure) general fixed assets consisting of streets, curbs, sidewalks, gutters and drainage systems, are capitalized along with other general fixed assets No depreciation Is provided on general fixed assets. J p iMr' I. Property Tax ke enue Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on October 1 and are due and payable at that time. All unpaid taxes levied October 1 become delinquent February 1 of the following year. 28- 32 t, ?5 x~Ll A 0 Notes, City of Denton (Continued) September 30, 1997 The City records revenue from currem property taxes in the year in which bills are measurable and available. An allowance is provided for delinquent taxes not expected to be collected in the future. At September 30 1997, the City had a tax margin of $ 1.97 per $100 valuation based upon a maximum ad valorem tax of $2.50 per $100 valuation imposed by Texas Constitutional law. Additional revenues up to $42,746,874 could be raised per year based on the current year's assessed { value of $2,169,892,097 before the limit is reached. ` J. Compensated Absences The City allows employees to accumulate unused vacation up to forty days. Upon termination, any accumulated vacation time will be paid to an employee. Generally, sick leave is not paid upon termination except for firemen and policemen. Firemen and policemen accumulate unused sick leave up to a maximum of 90 days. All other employees are paid only upon illness while in the employ of the City. As of September 30, 1997, the liability for accrued vacation leave and accrued sick leave is approximately $4,574,953. The amounts applicable to the Enterprise Funds ($760,811) and Internal Service Funds ($28,935) have been recorded in those funds, and the amount applicable to other funds ($3,785,207) has been recorded in the General Long-Term Account Group. The amount expected to I be paid from current available financial resources is not significant. K. Comparative Data I I Comparative totals for the prior year have been presented in the accompanying general purpose financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data Ipres:ntation of prior year amounts by fund type) in each of the statements have not been included, since their inclusion would make the combined statements unduly complex and difficult to read. In certain cases, the amounts previously reported in 1996 have been reclassified in order to conform to the 1997 presentation. 1. 'Memorandum Only" Total Columns Total columns on the combined statements are captioned as 'memorandum only' to indicate i that they are presented only to facilitate analysis. Data in these columns do not present financial I position, results of operat;ons or cash flows in conformity with generally accepted accounting principles. fhis presenta,ion does not represent a consolidation. Interfund eliminations have not been ! made in the aggregation of Geis data. i ` I ® f ~ Q Q 4 t I •27 I yy, `a ' a 2S K 1.0 32 x O 6r 0 Notes CifV of Denton (Continued) September 30, 1997 (2) CASH AND INVESTMENTS In order to facilitate effective cash management practices, the operating cash of all funds, except for the deferred compensation fund, are pooled into common accounts for the purpose of increasing income through combined investment activities. At year end, the carrying amount of the City's deposits was $12,873,280, and the bank balance was $1,970,691. Federal depository insurance or the fair value of collateral held by the City's agent in the City's name exceed in total the City's bank deposits at year-end. l The investments of the deferred compensation fund are held separately from those of other I City funds by an outside trustee appointed by the City. j Statutes authorize the City to Invest in obligations of the U.S. Treasury, U.S. agencies, I repurchase agreements, investment pools, investment grade rated securities, and fully collateralized certificates of deposit. The inveaments reported at September 30, 1997 were similar to those held f during the fiscal year, i At September 30, 1997, the City's Investments (U.S. Treasury and Agency Securities and f Municipal Securities) were Insured or registered or the securities were held by the City or its agent in the City's name. As of September 30, 1997, the City's investments were as follows: Category I Par Cost Market Value r U.S. Treasury Securities $ 58,735,006 $ 59,247,000 $ $8,735,006 S 58,985,985 U.S, Agency Securities 68,345,460 68,975,000 68,345,460 68,387,210 Municipal Securities 1,499,402 1,500,000 1,499,402 1,501,350 i Total Securities 128,579,868 129,722,000 128,679,868 128,874,545 Deferred Compensation Investments 3,510,973 3,510,973 Total $126,579,868 $129,722,000 $132,090,841 $132,385,518 e ~ ~ o • 25~ ;2X~ A O a,sERCB Notes, City of Denton (Continued) September 30, 1997 f (31 FIXED ASSETS General F&&d Assets- ' I General fixed assets oalances and transactions for the year ended September 30, 1997, are summarized below: k Balance Balance October 1, Transfers? Transfers! September 30, 1996 Additions Deductions 1997 Land $ 5,275,689 6 178,438 1 1 5,454,127 Puirdings 1P,744,369 1,849,782 20,594,151 I Streets 61,632,544 3,438,086 65,270,630 Machinery and equipment and I other Improvements 12,602,798 5,015,328 1361,391) 17,256,735 Il Construction In progress 10,106,344 8,191,236 (8,268,402) 10,029,178 Tote{ $108,561,744 $18,672,870 1(8,629,7931 1118,604,821 I Investment in General I Fixed Assets - Frcm bond Issues 1 78,123,605 1 9,122,858 $18,268,403) 1 78,978,060 From current revenue 11,551,572 8,177,579 1361,3901 19,367,761 69,675,177 17,300,437 (8,629,7931 98,345,821 I From contributions 18,886,567 1,372,433 20,259,000 Total $108,561,744 $18,672,870 $18,629,7931 1118,604,821 v I t •29• M. 25 x 10 32XIn o Notes, City of Denton (Continued) September 30, 1997 If General Fixed Assets by }unction and activity as of September 30, 1997 are summarized as I lI follows: Msch.lEquip. end Other Total Lend SQ14 gs Streets lrnprovements OfNCR41 00VWNMW, perks 4 9,574,764 62,411,600 6 5,517,214 9 91,744,747 Legal 103,284 3,202 100,092 Municipal Court 26,657 9,340 17,217 { Human Resources 57,976 57,976 CMOIMSEO 1,119.252 262,304 609,462 49,486 F8661V Marvgement 10,862.1S6 2,500,585 7,512,164 - 849,407 Wary 4,029,050 912,639 - 3,115,411 South Branch Library 1,997,573 1,225,601 771,972 ManningtO 111,362 118,362 Intpociimu 48,451 - 48,461 Main Street 3,146 3,146 6,6761267 Total Consist Government 28,140,571 5,175,689 15,t 118,522 PUMM WORXS: Tufrc Engineering 3,721,564 35,703 418,529 3,267,333 Engineering 143,930 148,930 I Code Enforcement 14,650 14,650 Somali 59,761,685 5,000 59,753.356 9,719 Street S w sapi ngrDrai mega 3,856,499 2,700 3.0301986 24.813 Airport 6,350,602 171,4311 950,110 1,267,169 3,054,995 Environmental Health Services 3,000 3.000 ANmd Control 411,552 386.901 24.750 ' Total Public Works 173,177,432 6 178,438 6 1,280,315 665,270,630 16,548,091 1 1 li •30• If3 J ' 10 32XIC 0 O l Notes, City of Denton (Continued) September 30, 1997 I ` Mech./Equip. and +l OtMr Total Lend Buildings streets Im-0roverrwnts icontinuedl fpwWtE: Pounce f.dmid+niticn 1 40,479 It 9 7,192 9 1 33,297 I Customer Servkv 1241,995 128,995 PYrchssIA2 12,848 - 12,848 Wainal Audit 13,713 13,713 Budget 1,864 1,864 Treasury 39,577 39,577 Accounting 66,884 66,884 Municipal Court Clarks 48,411 49,411 Tee 12,276 12,271 Administrative Services 93,898 93,891 { Information Services 449,641 449,641 ` Total Finance 901,585 7,112 901,403 fVRX SUITY: . Fire Administration 129,197 129,197 Fite Operations 3,154,084 2,823,531 W.653 Fire Prevontion 13,932 13,932 Emergency Medical 151,712 151,712 Police 2,800,073 494101 2,305,572 Tatel Public Safety 6,248,998 3,318,032 2,9301066 Construction in erogr is 10,029,118 TOTAL $111,604,821 95,454,127 920,594,151 185,270,630 617,156,725 0 I •91- 75 , 32 x 10 01 • 0 I C 04Yr'A Nutes, City of Denton lContinued) September 30, 1997 Changes In general fixed assets by function and activity for the fiscal year elided September 30, 1997 are summarized as follows: Central General Fixed Assets Translersl Fixed Assets 1011196 Additions Deductions 9130197 GENERAL GOVERNMEAT: Parks 1 9.554,735 1 182,886 1 162,9821 1 9,674,761 legal 81,569 21,715 103,284 MuNaipel Court 16.118 10,439 26,SS7 Human Resources 59,906 11,!301 57,974 { CMOMISED 1,039,729 81,323 (800) 1,119,252 Facility Manspament 10,298,358 663,188 10,962,156 Ubury 3,951,202 151,416 174,5691 4,023,050 South Branch Ubrery 700,520 1,297,053 1,997,577 j Planninp1c0 118,395 1,987 118,362 Inspections 47,612 649 48,461 Main Street 3,146 - 3,145 Total Central Government 25,858,300 2412,438 {140,160) 28,140,571 PURR WORIM Traffic Enginatrinp 3,617,616 104,048 3,721.664 Enplneerinp 176,557 573 128,2001 148,930 1 Code Enforcement 14,650 14,650 Strolls S6,360.80S 3,407,880 59,766,685 Street swaspinq Rlraina9a 3,611,910 196,296 1149,607) 3,956,499 Airport 2.180.842 3,171,249 17.4891 5,350,602 Emoronirantal Health Services 3,000 3.000 ^ Animal Control 411,552 411.552 S Tate Public Works 166,S82,732 16,880,046 $0IS,29 i1 173,277,462 'I r ~ 0 i 44, y~ 3Z ! ~ 32x~a 25 x 1 8 0 I` M1 Notes, City of Denton (Continued) September 30, 1997 Gsnual Ganaral (1 Fixed estate Transferal Fixed Asset , 1000 Additions Deductions /130197 ' !condnuadl P7RA7,Of: Financa Administration 1 31,683 1 8,796 1 6 40,479 I Customer Service 149,506 !20,5131 128,995 Pumhae;ng 13,846 - 12,848 Intrnal Audit 13,713 13,713 Budget 1,864 1,864 Treasury 40,177 - 16001 31,577 Accounting 66,884 - 68,814 Municipal Court Clerks St.911 13,5001 41,411 i Tax 12.275 12,275 ` AdmiNstrative Services 95.998 - 42,1001 13,198 Information Services 413,243 36,371 449,641 Total Finance 190,124 45,174 126,7131 908,515 PVWX SAFETY: Fire Administration 129,197 129,197 Fuo Opered ono. 3.155,140 7,468 t9,222) 3,154,084 Fin Prevention 13,932 13,932 Emergency Medical 151,712 151,712 Polies 1,663,563 5,138,510 2,100,073 Total Public solely S,114,244 1,143,878 19,222V 8,241,991 Construction in Progreso 10,108,344 1,191,238 (8,268,402) 10,029,171 TOTAL 1101,501,744 118.672,970 1(8,829,793) 1119,604,121 i 1 25 ~ J 32XI0 0 Notes, City of Denton (Continued) September 30, 1997 I Construction in progr.ss is composed of the following: Project, Expended t1 _ Aooryply4jl80 Seobmhu 30. 5991 Committed GIs Computer System 1 1,284,304 1 1,235,963 1 48,341 Rails to Trails 87,000 14,900 72,100 i Park Construction 305,000 300,819 4,181 City Hill Renovation 2,066,239 1,765,715 300,521 Public Safety Radio 76,409 76,409 Public Safety Computer System 1,314,543 1,228,750 85,79) Upgrade Existing Parks • Phase 1 300,000 212,062 87,938 Phoenix Park Expansion 25,000 10,075 14.925 Civic Center Perk Master Plan 40,000 28,745 11,255 HVAC Unit at Library 92,985 55,848 37,139 MILK Slick Ryair 8,040 7,146 194 South Likes Park Containers 1,049,270 1,049,270 Citywide Computer Upgrade 1,335,347 1,152,121 183,226 Teasley 1.4ndecop:ng 78,121 78,114 7 Street and trldga • Elm 314,576 95,937 218,539 Locust 1,155,313 583,39% 571,922 FM 2499 Rightol-Way Acquisition 20,000 11,559 8,441 MayNl Bridge 22,000 392 21,601 Meyhie at C,.oper Creak Bridge 20,000 2,696 17,304 Wllowcrest Loop Drainage 49,610 12,142 37,468 6idewslks 750,000 36,135 712,865 OPTICOM 75,711 75,711 Carlos and Parkway Turn 35,000 14,072 20,928 "ngo,'RuddellMottingMm 15,000 12,594 2,406 Redo Cub Medians to DTC 13,644 253 13,391 1-35 at McCormick Traffic Signal 55,200 24,625 30,575 371 at Collins signal Corridor 11,000 612 17,398 McKinney at MayNll Tullis Signal 34,500 7,149 27,351 U.S, 377 at 1.35 Improvements 25,300 943 24,357 LNlian We( Sidewalk Connection 23,769 14,915 8,853 1 CMAO • Eagle Drive Turn Lane 22.277 9,361 12,918 Drainage Study . Penn Creek 43.990 48,990 Lenimore Asphalt Oveday 2S,t0O 15,050 10,450 Comrade, Massey, Mingo, Collier 117.000 101,694 15,306 W'al Mart Rig;L+of Way 21,889 16,490 5,399 300 sell Turn Signal 20,000 see 19,414 Union MdlorlSoutMdge Village 13,177 13,377 OMC Parking Lot 58,140 37,077 21,763 Keday Street Culvert 330,000 184,91(5 145,039 Mac. Drrnage Cap, Improve. - Phase 1 WOW 35,241 32,751 Colege and Vine Drainage 20,000 13,118 6982 Traffic Signals • Phase 1 199,000 107,601 91,199 i _ Loop 201 Bypass A ght-of Way 325,000 7.465 111,635 y Nottingham (Mingo to Audal 260,000 12,606 227,494 j Misc. Street Consuuchon 100,000 19.363 60,637 Flow Ares Repaving and Concute 260,000 190,850 71,150 Good Samaritan Drainage IW, D00 53,298 48,702 S Jim Chnstal Bridge 59,000 33,970 25,030 Arena? Turn Lanes • Phase 1 11 i,Doo 14,637 961163 Avenue G 200,000 5,177 194,823 Avenue D Modifications 2!0,000 4,160 285,140 Cooper Which Channel 25,000 1,702 23,298 Entrance Mark 50,000 4,123 4S,077 HMOs* Drainage 15, 000 12,295 21705 Robertson Drive Drainage 422,7U 901,152 206,568 Sea" Strut Rightol-Wry 22,000 1.044 21,860 O Sherman Side w ilk 27,000 10,191 SAW 0 . State school culvert 50,000 39,151 14,442 Strait and Bridge • Photo 1 452,000 265 151,'135 Strut Improvement Fund 955,533 x99,720 35S,813 Sidewallks/W owe"- Phan 1 142,000 4,127 137,873 South Parking Lx I City Hall Well 25,SIs 13,032 8,404 Parking Spaces at South Branch 11,111 17,401 700 Chao Csntar Bridge 100,000 1.614 88,424 Southea,.t Sidewalks 55.000 46.448 1.662 !10.029.1)1 l5 L41~]~_, Tout 5,119,621 .j4. II a~P 7~ K ~ 32 x 0 0 r Notes, City of Denton (Continued) I September 33, 1997 i Enterprise and Internal Service Funds- Fixed assets of these funds are as follows: September 30 1997 1996 Utility System- Land and land rights S 1,926,4;6 $ 1,856,227 Water storage rights 67,715,402 67,715,402 I Electric plant and equipment 107,455,420 103,603,321 1 Water plant and equipment 49,905,378 46,723,364 I Wastewater plant and equipment 55,494,169 52,729,722 _ i l 282,496,864 272,628,036 Less • Allowance for depreciation 012,109,1421 (106,017,909) 170,367,722 166,610,127 Construction in prc7ress 4,618,397 4,749,191 Total fixed assets • Utility System 4175,006,119 $171,359,318 Solid Waste- Land and land rights $ 6,602,834 $ 6,596,378 Vehicles and equipment 2,194,661 1,648,331 8,797,495 8,244,709 Less • Allowance for depreciation (2,604,099) (2,438,931) 6,193,396 5,805,778 Construction in progress 137,058 Total fixed assets • Solid Waste S 6,193,396 1 5,942,836 Internal Service- Land and land rights 9 183,806 $ 183,808 Vehicles and other assets 18,725,412 17,534,732 18, 909, 218 17, 718, 538 Less - Allowance for depreciation (11,780,422) _ 411,550,8771 7,128,796 6,161,661 Total fixed essEts • interne! Service d 7,128,796 / 841.67,881 _ I •35• w ~ e C Notes, City of Denton (Continued) September 30, 1997 (4) LONG-TERM LIABILITIES Long-term liabilities transactions for the year ended September 30, 1997, are summarized as + follows: Balance at Retired Balance at October 1, and September 30, _ 1996 issued Transferred 1997 General Loni Term LiabStAi s Genaral Obligation bonds ! 22,320,823 4 4,700,000 ! 2,732,864 ! 24,287,959 Certificates of Obligation 4,067,760 - 799,596 3,268,184 Obligations under capital leases 8,635 8,535 Accumulated unpaid compensated absences _ 3,658,409 126,798 - 3,785,207 4 Tatar general long-term d7abr7iries 30,055,547 4,826,798 3,540 995 31,341,350 Proprietary Fund Types Utility System revenue bonds 09,270,000 5,379,999 83,890,001 General Obligation: General Obligation Bonds 89,655 15,755 72,900 General Obligation Bonds: Ipledoed by Solid Waste revenue0 502,252 71,381 430,871 Certificates of Obligation 10,20- 120 835,450 9,371,770 Obligations under capital leases 111,449 83,179 28,270 I Accumulated unpaid compensated absences 768,050 21,696 789,746 Note payable 31,273,659 32,456 31,241,203 To rd propilary fund types 132,22t,285 21,696 6,418,220 125.824,761 Total long-term liabllitles 1162,276,832 1 4,648,494 1 9,959,215 1157,188,111 • ~ a • ~I I 36 'i 61 P1 25~Q 32xIQ' 0 i I Notes, City of Denton (Continued) i September 30, 1997 i, 1 I Genera! Sonded Debt- General bonded debt at September 30, 1997, is comprised of the following: Amount ` Outstanding at interest Rate Final Original Amount September 30, Bonded lob, M Issue Date Maturity of Issue 1997 General Obligation Refunding 7.70 to 8.00 1Sd5 2004 $5,171,730 41,436,730 General Obligation 6.40 to 9.40 1987 2007 1,225,000 350,000 General Obligation 6.50 to 9.50 1988 1998 1,075,000 200,000 General Obligation 9.00 to 9.50 1989 1999 1,265,000 390,000 General Obligation 5.55 to 8.50 1992 2012 2,630,000 2,300,000 General Obligation 4.65 to 7.50 1993 2013 2,975,000 2,400,000 General Obligation Refunding 3.00 to 5.40 1993 2009 13,315,000 9,000,000 General Obligation Refunding 5.75 to B.50 1995 2015 1,610,000 1,530,000 General Obligation 5.0 to 7.40 1996 2016 2,515,000 2,485,000 General Obligation 5.00 to 7.00 1997 2017 4,700,000 4,700,000 Total General Obligation Bonds 36,481,730 24,791,730 Certificates of Obligaton 6.00 10 9,00 1987 2007 150,000 25,000 Certificates of Obligation 6.60109.60 1989 1999 11155,000 100,000 Certificates of Obtieation 6.00 to 9.00 1989 1999 1,550,000 350,000 Certificates of Obligation 4.40 to 7AD 1992 2007 1,325,000 490,000 Certif,cates of Obligation 4.20 to 5.30 1993 2003 1,450,000 500,000 Certificates of Obligation 4.40 to 7.40 1994 2014 2,705,000 2,285,000 Certificates of Obligation 4.30 to 7,30 1994 2005 3,220,000 2,080,000 f Certificates of Obligation 5.25 to 8.15 1995 2015 2,000,000 11945,000 Certificates of Obiigat+on 5,00 to 7.00 1996 2016 _ 5,190,000 4,864,954 Total Other General Bonded Debt 18,745,000 12,639,954 Total General Bonded Debt $55,226,730 137,431,684 A Proceeds of general bonded debt are restricted to the uses for which they were approved in the bond elections. The City Charter expressly prohibits the use of bond proceeds to fund operating expenses. The general obligatio,rs are collateralized by the full faith and credit of the City and, { primarily, payable from property taxes. In pr or years, the City defeased general obligation bonds by placing the proceeds of new bonds In an irrevocable trust tt, provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included In the eD City's financial statements. On September 30, 1997, $8,325,000 of bonds considered defeased are still outstanding. ` .37- 32x10 h 1 l.~ 0 M *uiKacm Notes, City of Denton (Continued) September 30, 1997 Retwoe, Bonds- Revenue bond debt at September 30, 1997, is comprised of the Poll,wing issues: i Amount Outstanding at Interest Rate Final Original Amount September 30, Revenue Bonds {9t,1 Issue Date Maturity of Issue 1997 Utility System 6.75 to 9.75 1988 2008 ! 3,500,000 9 350,001 Utility System 6.00109.00 1989 2009 20,000,000 7,400,000 Utility System 5.80 to 8.75 1992 2014 4,500,000 4,265,000 Utility System 5.00 to 7.50 1993 2013 6,575,000 5,600,000 Utility System Refunding 2.50 to 5.40 1993 2009 27,085,000 24840,000 Utility System Refunding 3.55 to 6.75 1993 2007 6,045,000 31290,000 Utility System Refunding F30 to 7.80 1996 2024 36,510,000 35,395,000 Utility System 5.30 to 7.40 1996 2016 2,750,000 2,750,000 6106,965,000 183,890,001 The City has the option to retire at par alt or a portion of the bonds prior to maturity on of after December 1, 1993. The revenue bonds are collateralized by the revenue of the Utility System and the various special funds established by the bond ordinance. The ordinance provides that the revenue of the System is to be used first to pay operating and maintenance expenses of the Systern and second to establish and maintain the revenue bond funds. Any remaining revenues may then be used for any laA'ul purpose, The ordinance also contains provisions which, among other items, restrict the Issuance of additional revenue bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. The City is in compliance with ail significant requirements. Below is a summary of the various restricted asset accounts required by the bond ordinance as of September 30, 1997: I Interest and Sinking Fund 910,098,340 Reserve Fund 4,991,862 Emergency Fund 250,000 • Extension and Improvement Fund 4,482,300 ' 519,822.502 0 ~ 0 tD 1 I 38 ~10 32x10 w •-R 0 0 Notes, City of Denton (Continued) September 30, 1997 Assets in these accounts consists of cash and U.S. governmv..t securities. Related liabilities and retained earnings are as follows: 1 Payable from restrluted assets. Accrued interest S 1,631,157 Revenue bonds payable, current 5.380,000 Retained earnings reserved for bond retirement 12.811.345 I 519.822.502 , Inaddition, the City has established a reserve fundto pay for General Obligation bonds pledged ; 1 by Solid Waste revenues of $367,100. In prior years, the City defeased revenue bonds by placing the proceeds of new bonds in an Irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City's financial statements. On September 30, 1991, $17,465,000 of bonds considered defeased are still outstanding. Note Payab* In 1980 the City and the City of Dallas contracted with the Corp of Engineers for the construction and development of Ray Roberts Reservoir in Denton County. In contracts with the Corp of Engineers, the City will pay for twenty-six (26%) per cent of the estimated water storage rights of the reservoir. Water obtained from the Reservoir will be pro rata on the basis of each city's 1 proportional share of total construction cost. The closing of the dam was competed in 1987 with water being available from the Reservoir in 1989. The City's estimated total cost of water storage rights at September 30, 1997, was $67,465,338. Of this amount, the future use currently estimated at $28,943,682 at September 30, 1997 is financed by the Corp of Engineers. No principal or interest payment with respect to this storage for future water supply is required to be made during the first ten (10) fears following the date the project is operational for water supply pu•ooses unless all or a portion of such storage is used for purposes o' withdrswal of water from or trar,3fer of water into Ray Roberts Reservoir during this period. When any portion of the storage for future water supply is used, the amount of the project investrnent cost allocated thereto, plus interest applicable to such portion as provided, will be due and payable on the date of the first use of such portion. The said amount due shall be paid within the life of the project and not to exceed fifty (50) consecutive annual payments, V The City is also responsible for twenty-six (26%) per cent of the cost of any major capital • replacement facilities required The City will also be required to pay the Corp Twenty-six (26%) per cent of the annual expo •ienced operation and maintenance cosh for specific water supply facilities at the Reservoir. Aggregate maturities of the long-term debt (principal and interest) for the years subsequent to September 30, 1997, are as follows: i 1 1 •a9• ~ 7 ~ 10 32X10 0 0 M Notes, City of Denton (Continued) September 30, 1997 Bonds Geneal Fiscal Year Obligations Revenue Notes Payable Capital Leases Total 1998 6 3,307,593 1 10,098.127 $ 1,030,253 $16,299 $ 18,452,872 1999 6,691,416 8,962,028 2,008,308 15,499 16,677,251 20u0 5,301,090 8,388,346 2,008,308 15,697,744 2001 4,930,340 7,944,181 2,008,308 14,882,829 2002 4,699,944 7,689,013 7,008 308 14,107,265 2003-2007 15,BG9,189 35,186,759 10,041,540 61,037,488 2006-2012 9,180,700 25,242,994 10,041,540 44,565,234 2013-2017 5,293,662 15,827,491 10,041,140 31,162,693 2018-2022 - 12,764,100 10,041,540 22,805,640 2023.2048 7,668,900 52,483,952 60,152,852 Total princ;pal 57,024,333 139,772,139 102,713,597 31,798 299,541,868 and interest Less applicable interest 119,592,6501 155,582,138) (71,472,394) 13,5281 1146,950,7101 P Total principat / 37,431,684 $ 63,890,001 4 31,241,203 $28,270 4 152,591,158 Bonds Authodzed and Unissued- General obligations bonds authorized but unissued as of September 30, 1997, amounted to $22,657,000. When issued, the proceeds will be allocated to the applicable Capital Projects Funds. (5) LEASES Leases payable represent the remaining principal amounts payable tinder lease purchase agreements for the acquisition of vehicles, copier equipment, computer hardware and other n equipment. These leases are recorded es capital leases. The vehicles, copier equipment and the l I landfill vehicles are recorded in the Propriettiry Fund Types. Remaining reouirements, includirg interest, under these leases ere as follows: I I 0 ~ 0 ! I. .40• ,V Y. X L y 32 x I A i C Q I Notes, City of Demon (Continued) September 30, 1997 Proprietary Year Fund Types r 1998 i It 16,299 1999 15,499 i 31,798 I Less - Applicable !nterest (3,528) Net Present Value 9 28,270 161 PENSION PLANS Texas Municipal Retirement Plan: Plan Description- The city provides pension benefits for all of its full-time employees lexcept firefighters) through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System ITMRS), or,e of over 688 administered l l an agent multiple•errployer public employee retirement systern, It is the opinion of the TMRS management that the plans in TMRS are substantially defined contribution plans, but they have elected to provide additional voluntary disclosure !o help foster a better understanding of some of the nontraditional characteristics of the plan. Benefits depend upon the sum of the empluyee's contributions to the plan, with 1 tterest, 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 (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 employae's accumulated contributions and the monetary credits for sere ce since the plan began, would be the total monetary credits and employee contributions accurnuiated with interes' -i \ the current employee contribution rate and city matching percent had always been in existence and if the employee's s3iary had always been the average of his salary in the last three years that are one year before the effective date, At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with Interest and the empleyer•finance.t n onetary credits with Interest fl were used to purchase an annuity. Members nan retire at ages 60 and above with ten or more years of service or with 25 years of service regardless of age. The plan also provides death and disability benefits. A member is vested alter ten years, but he must leave ` is accumulated contributions in the plan. If a member withdraws his own money, he is not entitled to the employer-financed monetary credits, even if he was vested, The plan provisions are adopted by the governing body of the city, within the options available in the e state statutes governing TMRS and within the actuarial constraints alst, in the statutes. G Confn'6utiona• u The co tribution rate for the employees is 6%, and the city matching percent is ou'rently 200%, both as adopted by the governing body of the city. Ender the state law governing IMPS, the city contribution rate is annually determined by the actuary. This rate consists of the normal cost f .41 - fi I j 0 Notes, City of Denton (Continued) September 30, 997 I contribution rate and the prior service contribution rate, b4 *h of which are calculated to be a level percent of payroll from year to year. The norinal cost contribution ,-ate finances the currently accruing monetary credits dud to the city matching percent, which are the obligation of the city as of an employee's retirement date, not at the time the employee's contributions are made, The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the city to each employee at the time his retirement becomes effective. The prior sxvice contribution rate amortizes the unfunded actuarial liability over the re nainder of the plan's 25 year amortization period. When the city periodically adopts updated service credits and increases it annuities in effect, the Increased unfunded actuarial liabi6zy is to be amortized over a new 25-year period. Currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1997. The unit credit actuarial cost method it. used for determinin; the city contrbOun rate. Contributions are made monthly by both the employees and the city. Since the city need; to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation that is the basis for the rate and the calenda• year when the rate goes into effect. The city's total payroll in fiscal year' 997 was $32,872,635 and the city's contributions were based on a payroll of $26,432.624. Both the city and the covered employees rrade the required actuarially determined contributions, amounting to $4,238,305 19.26% of covered payroll for the months In 1996, 7.14% or $461,246 city-contributed normal cost plus employee-contributed normal cost of 6379,837 and 2.12% or $136,998 to amortize the unfunded actuarial liability, and 10.01 % for the months in calendar year 1997, 7.60% or $1,558,269 city-contributed normal cost plus employee-contributed normal cost of 51,207,710 and 2.41% or $494,245 to amortize the unfunded actuarial liability}. The city adopted changes in the plan since the pre, ious actuarial valuation, which had the effect of Increasing the city's contribution rate for 1997 by 0 04% of payroll. There were no related-party transactions. Funding Status and Progress- Even though the substance of the city's plan is not to provide a defined benefit in some form, some additional voluntary disclosure is appropriate due to the nontraddional nature of the def'ned contribution plan which had an initial unfunded pension benefit obligation due to the monetary credits granted by the city for services ri-ndered before the plan began and which can have additions to the unfunded pension benefit obligation through the periodic adoption of ;ncreases in benefit credits and benefits, Statement No. 5 of the Governmental Accounting Standards Board (GAS8 5) defines pension benefit obligation as a standardized disclosure measure of the actuarial present value of pension benefits, adjusteJ for the effects of projected salary increases, estimated to be payable In the future as a result of employee service to date. The measure is intended to help usero assess the funding status of public employee pension plans, assess progress made in accumulating sufficient assets to pay benefits when due, and made comparisons among public employee pension plans. j The pens ^r benefit obligation shown below is similar in nature to the standardized disclosure I measure required by OASIS 5 for defined benefit plans except that there is no need to project selary Increases since the benefit credits named for serv;ce to date are not dependent upon future salaries. The calculations were made as part of the annual actuarial valuation as of December 31, 1996, i Because of the money-purchase nature of the p'an, the interest rate assumption, currently 8,0% per year, does not have as much impact on the results as it does for a defined benefit plan. Market value of resets is not determined fnr each city's plan, but the market value of assets for TMRS as a whole was 102.7% of book value as of December 31, 1996. is i2 ~rl AMMS ~~Ao]LILMMK 9%& Ali =%Kmn&~MMASLOMML~ A ~I 0 I Notes, City of Denton (Continued) September 30, 1997 Pension Benefit Obligation I Annuita.,ts currently receiving benefits $ 3,714,146 Terminated employees 5,599,346 i Current employees t Accumulated employee contributions t Including allocated invested earnings 16,627,061 ` Employer-financed vested 25,977,259 1 Employer-financed nonvested 3,676,519 Total 55,594, 331 i I Net Assets Available for Benefits, at Book Value 42,912,363 Unfunded Pension Benefit Obligation $12,681,968 The book value of assets is amortized cost for bonds andaoriginal cost for short-term securities and stocks. The actuarial assumptions used to compute the actuarially determined city contribution rate are the same as those used to compute the p-tnsion benefit obligation. The numbers above reflect the adoption of changes In the plan since the previous actuarial valuation, which had the effect of Increasing the pension benefit obligation by $188,866. } Trend Information Ten Year Historical Trend information year December 31, December 31, December 31, December 31, December 31, Ended 1987 1988 1989 1990 1991 Net Assets Available for Benefits $11,643,689 $14,146,080 $18,633,114 $19,345,611 $21,968,636 Pension Benefit Obligation $13,665,302 $16,639,047 $19,319,318 $22,536,840 $24,945,432 Percentage Funded 85,2% 65.0% 861% 85.8% 88.1% Unfunded Pension Benefit Obligation s 2,021,613 s 2,492,967 s 2,686,204 11; 3,191,329 12,978,798 Annual Covered Payroll 116,535,036 118,148,919 118,947,816 121,120,188 $21,443,097 Unfunded Pension Benefit Obligation as a Percentage ` of Covered Payroll 12,2% 13.7% 14.2% 151% 131% City Contribution to TMRS 1 825,976 1 968,006 s 1,020,272 1 1,076,635 1 111681035 Average City Rate 5.0% 51% 5.6% 5.1% 5.4% I b, if I l i 2 r,X!a 32XIO e 0 Notes, City of Denton (Continued) September 30, 1997 1 Ten Year Histwical Trend Infomation (continued) I Year December 31, December 31, December 31, December 31, December 31, Ended 1992 1993 1994 1995 1996 Net Assets Available for Benefits $25,071,409 128,858,450 $32,534,014 $37,669,288 $42,912,363 Pension Benefit Obligation $28,911,481 $37,299,424 $42,764,413 $49,160,519 $55,694,331 Percentage Funded 86.7% 77.4% 7608% 76.67% 77.19% Unfunded Pension Benelit Obligation 6 3,840,072 $5,440,974 $10,230,399 $11,471,233 $12,681,968 Annual Covered Payroll $21,896,750 $23,501,218 $23,820,706 126,353,340 $26,432,624 Unfunded Pension Benefit Obligation NS a Percentage of Covered Payroll 17.5% 35.9% 42.9% 43,5% 48,0% City Contribution to TMR9 $ 1,146,207 $1,611,637 $1,902,083 $2,417,415 12,650,758 Average City Rate 5.2% 6.9% 8.0% 9.2% 10.03% Fireman's Relief and Retirement Plan; The City provides pension benefits for all Civil Service employees of the Fire Department through a defined contribution plan. The Board of Trustees of the Denton Fireman's Relief and Retirement Fund is the administrator for the pension plan. The Pension plan is not considered a pan of the City of Denton entity. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Fire employees are required to become a member as a condition of employment. An employee becomes fully vested after 20 years of credited service, j City contributions for, and interest forfeited by, employees who leave employment before vesting are redistributed to plan participants. The City's total Fire Department portion of payroll in fiscal year 1997 was $4,759,088. The 1 City made the required contribution (9.0% for 1996 and 1997) amounting to $428,317. The covered employees made the required contribution (10% for 1996 and 1997) amounting to $475,909, Both sources contributed $904,226 in total, 1 17) DEFERRED COMPENSATION PLAN i • The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all permanent City employees, permits them to defer, until future years, up to 25% of annual gross earnings not to exceed $7,500. The deferred compensation Is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or • made available to the employee or other beneficiary) li the property scd rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general rreditors. Participants' rights under the plan are equal to those of general creditors of the City In an amount equal to the fair market value of the deferred accn, ant for each participant. Investments (primarily cash and cash equivalents) in the deferred compensation plan are recorded at market value, . 44 . ,M, 32 x 1 ❑ e a Notes, City of Denton (Continued) f September 30, 1997 1 I It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due cafe that would be required of an ordinary prudent Investor. The management of the City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors at this time. (9) SELF-INSURANCE PLAN The City has established a self-insurance plan for workers' compensation benefits and general liability. Accrued claims payable include provisions for claims reported and claims incurred but not reported. The provisions for reported claims is determined by estimating the amount which will ultimately be paid each claimant. The provision for claims incurred but not yet reported is estimated based on the City's experience. The costs associated with the self-insurance plan are reported as interfund transactions. Accordingly, they are treated as operating revenues of the Internal Service Risk Retention fund and operating expenditures (expenses) of the other funds. Workers' Compensation and General Liability Insurance It Is the policy of the City of Denton not to purchase commercial insurance for Workers' Compensation claims. Commercial liability Insurance coverage Ispurchased for public officials, airport, emergency medical services, and after-school action site programs at Denis and Martin Luther King, Jr. Recreation Centers. The City reports liabilities when it is probable that a loss has occurred and the amount of that toss can be reasonably estimated. Liabilities Include an amount for claims that have been incurred but not reported. Because actual claims liabilities depend on such complex factors as intl.::on, changes in legal doctrines and damage awards, the process used In computing claims liability does not necessarily result in an exact amount. Claims liabilities are reevaluated periodically to take Into consideration settlement of claims, new claims and other factors. As of September 30, 1997, the estimated value of these liabilities was $1,005,927. Changes in balances of claims liabilities during fiscal year 1997 were as follows: r. e~ o • •45• { 25 x 10 32x1❑ e 0 s Notes, City of Denton (Continled) September 30, 1997 Claims Liability Claims and Claims Liability Beginning of Change In Claims End of Fiscal Year Estimates Payments Fiscal Year Workers' Compensation 1997 $ 294,392 $ 380,689 $369,154 11 305,927 1996 344,583 268,559 318,750 294,392 General l/abilit y 1997 $2,220,000 $(1,232,254) $287,746 $ 700,000 1996 2,912,490 1281,5921 410,898 2,220,000 Employee Insurance 1997 $ 11,100 $ 11,100 1996 11,100 11,100 On September 3G, 1997, the City of Denton held $4,117,797 in the Risk Retention Fund for All payment of claims. There were no significant reductions in insurance coverage from coverage in the prior year and the amount of settlements did not exceed insurance coverage in the current year or in any of the past three fiscal years. {g} COMMITMENTS AND CONTINGENCIES I Agreement with TMPA- In 1976, the City, along with the cities of Bryan, Greenville and Garland, Texas (the "Cities"} entered into a Power Sales Contract with the Texas Municipal Power Agency (TMPA). TMPA was created through concurrent ordinances of the Cities and is governed by a Board of Directors consisting -All of eight members, two appointed by the governing body of each city. Under the terms of the agreement, TMPA agreed to construct or acquire electric generating plants to supply energy and power to the Cities for a period of not less than 35 years. The Cities in turn agreed to purchase all A future power and energy requirements in excess of the amounts generated by their systems from , TMPA at prices Intended to cover operating costs and retirement of debt. In the event that revenues are insufficient to cover all costs and retire the outstanding debt, each of the Cities has guaranteed a portion of the unpaid debt based, generally, upon its pro rata share of the energy delivered to consumers in the prior operating year. As of September 30, 1997, total TMPA debt outstanding was approximately $1,316,814,000 0 and the City's percentage is approximately 21 In the opinion of management, the possibility of a 0 . material payment in the near future under this guarantee is remote in that TMPA Is generating t operating profits and asseti exceed Ilabiliti:s. "Zoo" TMPA operates a 452 megawsrt ligniie•fueled generating plant. In 1996, TMPA switched to an external source of lignite to ra,;uce costs. Should TMPA be dissolved, each City would be entitled to an undivided Interest in the property, .46- 'r a` 32 x C ' s 0 I Notes, City of Denton (Continued) September 30, 1997 Selected financial statement Information of TMPA Is as follows: September 30. (Unaudited) I 19,97 1996 (000'5) (0004x) I Operating Revenues 6 164,105 8 169,655 Operating Expenses 88,665 106,423 1 Operating Income (Loss) 75,440 63,232 Other Nonoperating (Uses) 1601959) (82,424) Current Assets 53,905 58,540 Total Assets 1,475,946 1,522,731 Long-Term Debt 1,316,814 1,301,205 { 1 Total Liabilities 1,444,469 1,485,896 l Total Equity 31,479 36,835 Agreement with the City of DaNas- During 1965, the City entered into an agreement with the City of Dallas which provides for the purchase of a minimum of 500,000 gallons/day of untreated water from the City of Dallas from Lake Lewisville. This contract will be effective for 30 years. Litigation- Various claims and lawsuits are pending against the City. In the opinion of Co management and legal counsel, the potential losses after insurance coverage on all clalms will not have a material effect on the City's financial position as of September 30, 1997, I .47. - - - 25 x 10 32x10 e AlWOri ' O Notes, City of Denton (Continued) September 30, 1997 II (10) SEGMENT INFORMATION FOR ENTERPRISE FUNDS Segment Information for the year ended September 30, 1997, was as follows: ' i Utility System Solid Waste Fund Total j Operating Revenues 4 97,333,768 $7,050,129 4104,383,895 Depreciation 7,023,673 163,294 7,187,167 Operating Income 17,639,938 1,636,701 19,476,639 Operating Transfers In Operating Transfers Out 3937,209 59,080 3,998,289 Net Income 13,684,095 3,322,921 17,007,016 Current Capital Contributions; In aid of construction 1,732,299 1,732,289 Accounts Receivable: Accounts receivable, gross 14,000,996 14,000,996 Allowance for uncollectibles 7,027,012 7,027,012 Accounts receivable, net, unrestricted 5,005,238 5,005,238 Accounts receivable, net, restricted 1,968, 746 1,968, 748 Property, Plant and Equipment Additions 9,868,828 552,786 10,421,614 Total Assets 292,798,566 15,506,826 308,30,392 Net Working Capital 8,079,753 1,006,568 9,086,321 Bonds Payable 83,890,001 8,456,616 92,346,617 Notes Payable 31,219,934 21,269 31,241,203 • Total Equity 163,617,889 4,281,623 167,899,512 •48• II „ x la 32XI❑ --am = - , - I I a 0 O ,evvrw Notes, City of Denton (Continued) September 30, 1997 I I, 111) INDIVIUUAL FUND DISCLOSURES Individual fund disclosures as of and for the year ended September 30, 1997, are as follows: fnferfund Receivables and Payabies: I Interfund Interlund Advances to Advances from Fund Receivables Payables Other Funds Other Funds f General Fund 4 421,941 $1,032,032 $ { Special Revernx Funds: { Community Development Black Grant 690 Recreation Criminal Justice Library Other 49,388 6,211 Debt Service 2,055 Capital Project Funds: Airport Improvement General Projects 275,000 134,978 Street Improvement Construction Projects Other Capital Projects 577,450 144,744 Enterprise Funds Utility system 319,608 331,387 3,781,784 3,000,000 Solid Waste 5,540 82,985 781,784 Internat Service Funds: Warehouse 9,682 143,026 Fleet Services 3,358 Motor Pool 201,776 Risk Reto ,.ur. Trust and Agency Funds: Expendable Trust A - Agency • Payroll Total $1,860,464 $1,860,484 $3,781,784 $3,761,784 f •49• - - x 0 32XI 0 i r e O i Notes, City of Denton (Continued) September 30, 1997 (12} CONTRIBUTED CAPITAL During fiscal year 1996-1997, contributed capital changed by the following amounts: Enterprise Internet Service Funds funds 111 Utility System Total Motor Pool 1 Beg Ming balance • October 1 114,209,112 11,012,198 Contributions from customers 406,487 513,554 Contributions from developers 1,326,802 Deprec is Non (1,865,9241 1376,0961 114,075,477 $1,210,656 111 The Working Capital Fund had no activity in contributed capital for the year ended September 30, 1997, (13) CLOSURE AND POSY CLOSURE CARE COST i State and federal laws and regulations require the City to place a final cover on its Mayhill Road landfill site upon closure and to perform cemain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only upon anticipated closure, the City reports a portion of these costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $1,424,320 reported as landfill closure and postclosure care liability at September 30, 1997, represents the cumulative amount incurred to date based on the use of 94.2% of the estimated capacity of the landfill. The City will I recognize the remaining estimated cost of closure and postclosure care of $87,196 as the remaining estimated capacity Is filled. These amounts are based on what it would cost to perform all closure 1 and postclosure care in 1997, The City expects to use the remaining capacity in the landfill In the I year 1998. Actual cost may fluctuate due to inflation, changes In technology, or changes In rogulat,.ns. II The Solid Waste fund has provided for a reserve of retained earnings of 6850,975 at September 30, 1997 and anticipates increasing the reserve in future periods as the closure and pvatciosure activities are carried out. IE 60. If 216 10 32x ❑ e Q I CITY OF DENTON, TEXAS I SUMMARY OF SPECIAL REVENUE FUNDS I FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 it Community Development Rick Grant 1080) • to account for the operations of projects utilizing Community Development Block Grant Funds. Such revenues are restricted to expenditures for specified projects by the Department of Housing and Urban Development. lfecreadon • to account for the revenues and expenditures for the recreation programs which are self- supporting. All expenditures will be reimbursed 100%. Various business operations, such ss concessions, fall Into this account. Crlmkml Justice • to account for revenue received from the State of Texas Criminal Justice Division and 1 other gra its administrated by the Police Department. 1 fm4fowiarVbrarp • to account for fines, donations, memorials and gifts to the library that are restricted to the Public Library. AN Other • to account tot miscellaneous special revenue sources which are required to finance specific activities. I M 4 ' i i I 1 I I i l •61• CompnMroivs Annual Financial Report I 2C) x❑ 32 x10 ' 1 . r n V. ! CITY OF DENTON, TEXAS COMBINING BALANCE Si1EET • ALL SPECIAL REVENUE FUNDS ~ SEPTEMBER 30, 1997 , Community Development ..,urinal ASSETS Block Grdnt Recreation Justice Cash and deposits 1 32,116 1 38,775 If 5,110 Investments 119,750 265,804 99,792 Receivables Inet of allowances for uncollectiblesf • Accrued Interest 2,420 2,775 2,016 Other 44,002 8,684 Due from other funds Due from other governments 144,786 1,735 80,917 Total Assets 1343,074 8305,773 8187,835 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable and accrued IiabiRies 8175,182 8 67,377 1 85,694 f Due io other funds 690 Other liabilities 14,994 Deferred revenues 140,394 4,574 102,141 Total LlabMas 331.265 71.951 187,835 Fund Balacca: Reserved for Encumbrances 47,124 74,868 Unreserved 135,3151 168,954 Total Fund edance 11,809 233,622 ^ Total UsbilWas and Fund Balance 1343,074 8305,773 1187,835 • I !!I 1 II' 1 i •62• Comprahanslvo Annual Flnanclal Report r 10 32XIEI 21 5 e o CITY OF DENTON, TEXAS i ' Taal I Emily Fowler All Library Other September 30, 1997 Septe nb.- 30, 1996 $ 61668 1 499,591 1 682,260 11,950,283 14,969 297,380 787,695 302 81008 13,521 387 ` 348 92,485 143,517 164,462 i1 49,388 49,388 110,274 351,470 578,908 659,988 $22,285 $1,296,322 $2,155,289 $2,685,379 $ 3,571 $ 464,939 $ 796,763 $1,017,996 5,211 5,901 42,317 14,846 29,845 2,662 41,632 286,941 259,339 3,571 526,828 1,121,450 1,322,314 6,737 406,840 535,569 223,630 11,977 362,654 498,270 1,339,235 18,714 769,494 1,033,839 1,663,066r 122,2$5 $1,296,322 42,155,289 12,985,379 i I 1 E , i Compnhamlw Annual $lnanclal Raperl 32x e o i r CITY OF DENTON, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL SPECWL REVENUE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Community Development Criminal Block Grant Recreation Justice REVENUES; Feet for services 1 500 1605,083 a interest revenue 8,670 13,656 Twevenue - Intergovernmental 1,726,120 40,077 291,897 Miscellaneous 93,810 63,416 76,124 Total Revenues 1,828,100 722,212 368,021 1 EXPENDITURES Current- General government 1,812,973 Public safety 478,077 Public works Parks end recreation 716,946 Cipital outlay 61532 l Total Expen6turas 1,812,973 723,478 478,077 EXCESS OF REVENUES OVER IUNDERI EXPENDITURES 16,127 (1,266) 5110,0561 I i OTHER FINANCING SOURCES (USES): Operating Transfers In 16,704 110,066 Operating Transfers (Out) (15,7041 131,3171 • _ Total Other Financing Sources IUsu) _(15,7041 115,6131 110,058 EXCESS OF REVENUFS AND OTHER SOURCES OVER (UNDERI EXPENDITURES AND OTHER f USES 1577, 116,8791 FUND BALANCES • October 1 12,388 250,701 FUND BALANCES • September 30 1 11,809 1233,822 11 O ~ ~ ~ O f •64• Comprehensive Annual Flnsnclal Report I y K 32 x ❑ 0 I CITY OF DENTON. TEXAS l Totals Year Ended Emily Fowler All Library Other September 30, 1997 September 30, 1996 I 1 68,403 1 68,257 1 728,223 1 707,583 1,499 39,679 63,504 88,097 680,841 680,841 761,518 j 2,680 632,346 2,692,020 2,834,580 11,373 290,164 634,887 827,246 81,855 1,699,287 4,699,475 5,219,024 41,411 1,359,824 3,214,208 3,566,764 33,433 511,510 254,995 2,450 2,450 716,946 609,646 34,634 653,087 594,253 434,208 78,045 1,948,794 5,030,367 4,865,603 6,610 1249,5071 1339, 6921 353.421 i 111,314 237,074 300,853 1319,387) 1426,408) 1411,7751 (268 073) 1189,3341 1110,9221 5,810 (517,5801 (529,2261 242,499 12,904 1,267,074 1,663,065 1,320,568 4 18,714 1769,494 41,033,839 $1,563,065 s ~ 0 0 i •55• i Comprahenslve Annual Flnenclel Report aa 3 n 0 CITY OF DENTON, TEXAS I I i j i i i I i II •6B• - - Comer*AMsh* AnmW Fimnclal A@W - I f Ji 25 x 1o 32XIO • 0 1 CITY OF DENTON, TEXAS SUMMARY OF CAPITAL PROJECTS FUNDS I FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 ~I I Aiport Improvement Grant Fund - to account for FAA Grant In aid for runway extension and airport development. Genera! Projects Funds - to account for Investing nonrecurring funds in capital plant expansion cr Improvements, extraordinary maintenance projects, facility construction orotherlarge nonrecurring projects, funded by operating revenues. Street Improvement Fund • to account for repairs and rehabilitation of city sheets funded by grants and bond proceeds. We7!rems Square Fund • to account for paving downtown parking tot to provide parking lot in central business district funded by bond proceeds. i Construction Projects Fund • to account for major rehabilitation and construction of facilities funded by bond proceeds. Other • to account for miscellaneous capital revenues and expenditures. I 'I •67• ComprManaFva Annual Finandal RapoA a 25 10 32X1[1 0 'r CITY OF DENTON, TEXAS COMBINING BALANCE SHEET • ALL CAPITAL PROJECTS FUNDS SEPTEMBER 30, 1997 Airport Street ASSETS Improvement Grant General Protects Improvements Williams Square Cash and deposits 1 / 69,795 a 697,145 112,660 Investments 4,383,699 1,500,339 Receivables (net of allowance for uncoilectiblesl: Accrued Interest $8,860 13,622 Other receivables 78,080 Due from other funds 2,450 Due from other governments 86,658 2,450 Total Assets $86,658 15,012,154 $2,294,088 $12,560 1 LIABILITIES AND FUND BALANCES M Liabilities! Accounts payable and accrued liabilities 141,422 1 643,454 a 14,752 1 Retainage payable 11,604 Due to other funds - 134,978 Deferred revenues 43,176 Total unwities 84,598 790,038 14,752 Fund Balances: Reserved for encumbrances 278,883 Reserved for capital ' projects 2,060 3,943,335 2,279,334 12,660 • Total Furl Balances 2,060 4,222,218 2,278,334 12,660 Total uabllitles and Fund Balances 186,658 $5,012,264 $2,294,088 $12,660 •6B- Ik Comprehensive Annual Flnanclal Report 1 f 7 x 10 32x117 0 r ~ i CITY OF DENTON, TEXAS I Totals Construction projects Other September 30, 1997 September 30, 1996 I 1 206,647 1 17,293 1 1,003,440 12,961,762 f 3,134,720 498,961 10,017,619 1,969,690 27,386 10,082 109,950 36,405 78,080 76,080 275,000 576.000 652,450 4,095,781 89,108 297,891 13,643,163 11,101,336 112,150,647 19,439,609 1 540,232 1 338,120 1 1,577,980 11,092,438 50,638 62,242 43,001 144,744 279,722 347,107 43,176 1,949 ` 690,870 482,864 1,963,120 1,484,495 348,998 184,721 812,602 453,041 2,703,685 433,751 9,374,925 7,502,073 3,052,683 618,472 10,187,627 7,965,114 $3,843,753 11,101,336 112,160,641 19,439,609 •69• 1 Comprehenslvd Annual Financial Report 75 K rI 30:x s 0 CITY OF DENTON, TEXAS , COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL CAPITAL PROJECTS FUNDS FDA THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 li Airport Street Improvement Grant General Projects Improvement Wdl!ams Square RLVETIUES: Interest revenue $ If 202,005 { 81,421 { Intergovernmental 60,428 6,860 Miscellaneous 98,183 Total Revenues 60,428 202,005 168,464 Ii EXPENDITURES: Capital outlay 58,368 2,690,831 125,306 Total Expen lhura 58,368 2,690,831 125,306 I I EXCESS OF REVENUES OVER (UNDER} EXPENDITURES 2,060 (2,498,8261 61,158 OTHER FINANCWO SOURCES I 1 (USESP Proceeds of long-term debt 4,700,000 Operating transfers (inl 1,960 Operating transfers (out) Total Other Flnan*g I j Sources (Uses) 4,700,000 1,960 EXCESS OF REVENUES AND OTHER SOURCES OVER rUNDER) EXPENDITURES AND OTHER USES 2,080 2,211,174 63,118 O' FUND BALANCES - r October 1 2,011,044 2,216,216 12,560 FUND BALANCES September 30 1 2,060 If 4,222,218 42,279,334 412,560 •60• Comprehensive Annvat financial Report x 10 32x I❑ A O CITY OF DENTON. TEXAS 1 I Totals Year Ended Construction Projects Other September 30, 1997 September 30, 1996 I 1 130,014 1 31,921 1 445,361 1 359,441 67,286 272,867 440,094 9,616 547,693 590,618 1 570,108 41,537 1,060,642 1,222,926 1 1,907,578 1,138,126 5.920,209 4,185,615 1,907,578 11138,126 5,920,209 4,185,676 (1,337,470) 11,098.5891 (4,859,6671 12,962,8491 4,700,000 2,705,000 960,458 1,430,266 2,392,672 997,690 15921 (5921 1275,4361 + 959,864 1,430,256 7,092,080 3,427,184 I 1371,6061 333,667 2,232,413 464,305 M 3,430,489 284,805 7,955,114 7,490,809 0 I 13,052,883 1 616,472 410,187,627 11,955,114 1 A I ~ p ~ I f •81• Comprahanslve Annual nnanelal Report ~K ?5 M.. ❑ 32x10 ' e 0 CIIY OF DENTON, TEXAS i r .61• CwWohantiw AmwM flnanolat Report x 0 `II II ' I { CITY OF DENTON, TEXAS _ 1 I J SUMMARY OF ENTERPRISE FUNDS , I FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I VeXty System - To account for the provision of utility services to the residents of the City. All activities necessary to provide such services are accounted for in this Fund, including, but not limited to, administration, operations, maintenance, financing and related debt service. Sold West* - To account for the provision of solid waste services to the residents of the City. AM activities necessary to provide such services are accounted for in this Fund, Including, but not limited to, administration, operations, maintenance, financing and related debt service. l 1 I I i •61• Corrprshansive Annual Financial Itap a 2..x10 32x10 0 • o CITY OF DENTON. TEXAS i~ 1 COMBINING BALANCE SHEET - ALL ENTERPWSE FUNDS I i SEPTEMBER 30, 1997 • I ASSETS Utility System Solid Waste Cash end deposits 1 202,703 Investments 1,407,335 882,688 Receivables Inet of allowances for uncollectibles) Accounts 5,005,238 3 Unbilled vblity service 6,403,688 371,652 i Accrued Interest 700,050 Other 1,111,330 13,938 Due from other funds 319,808 5,540 Merchandise inventory 697,707 24,712 Prepaid items - Deferred bond issuance costs 111381796 Restricted assets Cash and deposits 4,789,332 994,019 Investments 89,974,485 6,965,129 Accrued interest 289,445 55,852 Accounts receivable 1,968,746 Due from other funds Advances to other funds 3,781,784 Fixed assets Inet of accumulated depreciation) 175,006,119 61193,396 Total Assets 1292,798,666 115,600.826 (Continued) i r ` •64• f Comprehensive Annual Financial Report f I❑ 32x10 25 • Q 1 v. A CITY OF DENTON, TEXAS Totals September 30, 1997 September 30, 1996 1 202,703 4 874,960 2,289,923 9,086,068 Il 5,005,238 6,078,984 8,776,340 5,562,608 700,050 1,075,955 I 1,125,268 510,723 325,348 194,103 722,419 541,498 1,638 1,138,796 1,221,226 6,783,351 3,434,279 96,939,614 81,947,744 345,297 357,012 1,968,746 8,902,779 i 3,781,764 4,831,784 181,199,516 177,302,164 1306,303,392 1302,302,229 i I pV, •66• Comprahonslr4 Amua1 rlnanelal Report Woo if e( :32 x . e 0 CITY OF DENTON, TEXAS_ COMBINING RALANCE SHEET • ALL ENTERPRISE FUNDS Iconcludedl SEPTEMBER 30, 1997 LIASRJrIES AND FUND EQUITY Utility System Solid Waste Uabinties: Accounts payable and accrued expenses 1 7,070,399 1 204,165 Retalnage payable Accumulated unpaid compensated absences 632,063 128,748 Deposits 1,188,424 Payable from restricted assets • Accounts payable and accrued expenses 217,312 79,497 Relainage payable Accrued Interest 1,631,157 65,819 Revenue and general obligation bonds payable 5,380,000 638,661 Due to other funds 331,387 62,995 Advances from other funds 3,000,000 761,784 Leases payable General obtigation bonds payable 430,871 Certificate of obligation payable 7,387,084 Revenue bonds payable 78,610,001 Note payable 31,219,934 21,269 C1ogurelPostcloswe cost 1,424,320 Total Uabilitles 129,178,677 11,225,203 Fund Equity: Contributed capital From other municipalities or governmental units 14,909,624 In aid of construction 27,606,396 i Less, Accumulated depreciation !28.440,5421 Net Contributed capital 14,075,477 Retained earnings • Reserved for bend retirement 12,648,845 P.aserved for c .-itat projects 10,432,694 4,915,949 Reserved for landfill retirement 650,916 1 Reserved for debt retirement 387,100 Reserved for dumpster replacement 76,000 Reserved for rate stabilization 54,850,000 600,000 • Reserved for working capital 2,160,000 149,000 Reserved for emergency 6,402,000 373,000 Reserved for water tower 760,000 Reserved lot Infrastructure financing 2,000,000 Reserved for contingency 650.000 150,000 Reserved for capital eonst action 1,000,000 60,000 Unreserved 69,741,873 12,949,4011 . Total Retained Eerr6ngs 149,542,41 4,281,623 0 Total Fund Equity 103,617,869 4,281,623 Total Ll"tles and Fund Equity 42 2,796,6 90,548 115,606,82 I i •88• ConWohisnslve Annud Financial Repot I 32 x~❑ 8 O CITY OF DENTON. TEXAS ~ I Totals , Septembe 30, 1997 September 30, 1996 i 7,274,554 i 3,408,802 17,148 f 760.811 727,974 1 1,188,4 24 1,158,167 298,809 142,058 V 42,502 1,696,975 1,980,489 6,018,661 5,909,832 394,372 8,368,227 3,781,784 4,831,785 36,095 430,871 430,871 7,387,084 8,023,850 78,510,001 83, 890,001 31,241,203 31,273,659 1,424,320 2,900,561 140,403, 880 153,142,021 14,909,624 14,909,824 27,606,395 25,874,107 128,440,5421 126,574,6191 14,076,477 14,209,112 12,64 8,845 12,802,157 15,349,643 17,290,101 650,976 456,975 387,100 307,100 73,000 75,000 55,350,000 45,932,000 0 2,309,000 21153,000 5,775,000 5,384,000 750,000 $50,000 2,000,000 1,610,000 700,000 1,050,000 59,799,472 48,384,163 _ ~ 163,824,075 134,951,096 0 167,8 99,512 149,150, 208 0358,303,392 1302,3D2,229 •87• Comprahenalra Annual Wanclal Report ~ 32 x C] 3-3 0 o CITY OF DENTON, TEXAS COMBINING S'A,TEMi OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS • ALL ENTERPRISE FUNDS pp FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Utility System Solid Waste OPERATING REVENUES: Electric service 4 72,048,516 4 Water service 14,700,321 Wastewater service 9,889,807 Charges for services 617,145 6,949,613 Miscellaneous 77,977 100,518 Total Opersting Revenues 97,333,766 71050,129 OPERATING EXPENSES: Purchased power 39,945,087 Fuel 6,797,388 Purchase of water 77,227 Salaries and wages 9,740,680 2,167,499 Materials and supplies 1,530,482 331,917 Maintenance and repairs 2,699,980 8101908 Depreciation 7,023.673 103,294 Administrative cost 7,386,516 781,698 l ClosurerPostclosure cost 118.754 Miscellaneous 4,492,657 839,360 Total 09irating Expenses 79,693,828 6,213,428 i Operating Income 17,639,938 1,836,701 'i NONOPERATINO REVENUES IEXPENSESI Interest revenue 5,290,534 439,762 Interest expense and fiscal charges 15,145,8381 1580,9621 Other (153,2301 11886,510 Total Nonoparating Revenues 111i is) 118,8341 1,545,300 i Operating Income Selore Operating Transfers 17,621,304 3,382,001 OPERATING TRANSFERS IN IOUTb Operating transfer in Operating transfer out 13,837,2091 459,0801 Total Operating Transfers _ 13,937,2091 159,0601 Not income 13,684,095 3,322,921 1 Add: Depreciation of fixed assets acquired with contributed capital 1,665,923 1 Increase in retained earnings _ 15,550,018 3,322,921 • RETAINED EARNINGS • Chi 1 133,992,394 958,702 10 RETAINED EARNINGS • September 30 $149,642,412 14,281,823 •68• II'I Comprehensive Annual Finaecial Report i In 32x10 • 0 CITY OF DENTON, TEXAS 1 i I 1 r Totals Year Ended September 30, 1997 September 30, 1996 4 72,048,516 1 69,633,180 14,700,321 15,328,696 9,889,807 9,997,666 7,566,768 6,830,428 178,493 122,045 I 104,383,895 101,811,814 39,945,087 41,469,061 6,797,386 6,981,645 77,227 80,290 11,908,079 11,343,969 1,862,379 1,910,975 3,510,888 3,967,291 7,187,167 6,817,658 k 8,166,272 9,455,707 118,754 254,302 4 5,332,017 4.068,260 84,907,256 86,349,156 19,478,839 15,462,758 5,720,286 5,350,953 16,1251001 17, 365,7011 1,533,280 136,1801 1,526,668 (2,0%01M 21,003,305 13,411,830 A 13,998,2691 {776,8141 13,996,2P91 {776,8141 11,001,016 12,836,010 1,865,923 1,791,193 18,1072,939 14,420,20i-- 134,951,096 120,624,887 0 i1 1153,824,035 1134,951,096 r~ l Compnhanfl®Annual Financial Report 32 x I D o 0 CITY OF DENTON. TEXAS_ I COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 i 1 Utility system Solid Waste Cash flows from opwating activities: Cash received from customers 1103,793,283 s 7,054,641 Cash paid to employees for services (84,445,826) (2,636,673) Cash paid to suppliers 112,084,334) (2,165,688) Not Bash provided by operallons 27,203,123 2,252,380 1 Cash flows from nonespitd financing activities: Contributions to Fleet Replacement Fund (290,4331 18,6651 Operating transfers out to other funds (3,937,209) 159,080) Principal payment on long-term advances from other funds (11000,0001 150,000) Payment received on long-term advances to other funds 1,060,000 Contributionf to others Proceeds from other 143,891 102,075 Net cash fused for} noncapital financing activities 14,033,7611 115,6701 p Cash flows from capital and related financing snivitles: Proceeds received from contributed capital 406,466 Principal payments on revenue bonds and certificates of obligations 15,380,0001 1529,8321 i j Interest and fiscal charges 15,321,2041 1606,7791 Proceeds from issue of revenue bonds and certificates of obligations Proceeds from issue of notes payable Principal payment on notes payable 132,456) Principal payments under capital lease obligation 136,095) Acquisition and construction of fixed assets 19,344,8721 1413,854) Net cash provided by (used for) capital and rstatad romancing actlvl6as 119,639,5901 11,61?,0161 Cash flows from Investing ocilvldes: . Proceeds from sale and maturities of investment securities 102,495,252 3,400,224 Purchase of investment securities 1107,900,1651 16,211,0381 Interest received on iiwastments 5,243,201 441,845 _ Nei cash luted foil Investing ocdvWos 1181,7121 (2,388,9691 Net increase Idecreasel In cash and cash equivalents 3,428,010 11,151,2751 . Cash and cash equivalents October 1 1,503,965 2,745,294 Cash and cash equivalents September 30 i 4,992,036 1 994,019 IContintredl I I 70 Comprahanalve Annual Financial Report 25 X10 32x10 , , e O CITY OF DENTON, TEXAS I Totals Year Ended + September 30, 1997 September 30, 1996 I $110,847,824 $ 94,988,136 I 167,002,3991 M,938,61 11 _ (14,249,9221 11L,174.0391 29,616,603 23,874,888 1299,098) (167,8771 { 13,996,289) {776,814) 1 11,060,000) (1,050,000) 1,050,000 1,050,000 (8,249) 246,966 139,946 14,049,4211 1812,9 941 406,486 261,153 (5,909,832) 14,652,3801 (5, 92 7,9831 1600,0211 44,260,000 282,360 (32,4581 (33,995,0921 1 136,0951 (102,116) (9,759,7261 110,882,1411 { 121,238,606) 111,478,2371 106,896,476 64,139,445 1114,111,203) (101,930,7741 I 6,686,046 6,369,970 12,530,6811 112,421,3591 I 1,676,795 1837,7021 0 4,309,269 6,148,961 6 6,988,054 4 4,309,269 71• - Comprahanslra Acnual rlnandal Report Mae s , i ',sans" 0 «NF CITY OF DENTON, TEXAS COMBINING STATEMENT OF CASH FLOWS ALL ENTERPRISE FUNDS (Concluded) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 If Utility System Solid Waste i Reconct5etion of Enterprise Operating Funds Income to Not Cash Provided by Operating AWv(ties Operating Income 117,639,938 11,836,701 Adjustments: Depreciation expense 7,023,473 163,294 Gain ILoss) on sale of fixed assets 16.688) ClosurelPostcloswe expense 118,764 Decrease dricreasal in receivables 12,277,0971 (24,4201 Decrease tlncreasel in due from other funds 8,743,302 28,832 Decrease (Increase) In Inventories 219,071 Decrease lincreasel In prepaid items 1,836 Increase (Deereasei in accounts payable 3,924,796 64,323 Increase (Decrease) In leases payable tncreass (Decressel In accumulated unpaid compensated absences 30,926 1,911 Increase (Decrease) in due to other funds (8,036,840) $2.985 Total adjustmerts 9,623,185 415,579 Net cash provided by operating actlvidea 127,283,123 12,252,380 1 Supplemental Schedule of Noncosh Capita! and Related Financing Activities Noncesh activity during the year consisted of contributed capital from contractors and developers for the Utility System In the amount of 11,326,082, i i . I , t t I .72• Compashonsive Annuel Financial Report 7.5 x 10 32x10 0 CITY OF DENTON. TEXAS I I Totals Year Ended r September 30, 1997 September 30, 1996 119,476,639 116,462,758 I 7,187,187 6,817,655 15,589) 116,754 264,302 { 12,301,517i 696,745 8,7 72,134 (7,520,521) 219,077 341,947 I 11838 11,8361 3,989,119 (391,981) 32,837 82,714 17,97 3,8551 8,163,084 l 10,038,864 8,412,130 I $29,515,503 123,874,888 i w I • 13 . Composhansira Arms! Financial Now 25 KQ 32 xIC s O CITY OF DENTON, TEXAS SCHEDULE OF REVENUES, EXPENSES AND CHANGES N RETAINED EARNINGS • BUDGET AND ACTUAL • (BUDGET BASIS) • ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I Utility System Variance- Favorable Budget Actual (Unfavorable) OPERATING REVENUES: Electric service 1 73,716,904 11 72,048,516 111,668,38e1 Water service 15,118,588 14,700,321 (418,2671 Ws stew a ter service 10,566,951 9,889,807 (877,1441 Charges for services 340,100 617,145 277,045 Miscellaneous 106,375 77,917 128,39e) I I Total Opasting Ravhwes 99,848,918 97,333,766 12,515,1521 OPERATING EXPENSES: Purchased power 38,865,754 39,1,55,002 11,089,248) Fuel 8,322,765 6,797,389 1,526,376 Purchase of water 91,250 77,227 14,023 Salaries and wages 11,616,331 10,707,153 809,178 Materials and supplies 1,776,553 1,591.928 183,611 Maintenance and repairs 4,046,633 2,984,604 1,082,028 Administrative cost 7,332,478 71386,574 IS4,0961 Closure/Postclosurs cost Miscellaneous 6,305,405 6,324,699 980,817 Capital outlay 8,313,208 5,705,496 607,710 I Total Operegng Expense - 84.669,361 80,509,961 4,069,400 Operating Income 15,279,667 15,823,805 1,644,248 I NONOPERATNO REVENUES {EXPENSES(' Interest revenue 2,612,283 5,280,634 2,658,251 Interest expenses and fiscal charges (4,623,7951 15,145,9381 4522,1431 Other (78,0001 1153,2301 (76,2301 ' Total Nmoperst(ng Revenue (Expensnl (2,089,5121 118,8341 2,070,878 Operating income before operating Iransfare 13,190,045 18,605,171 3,616,128 s OPERATNO TRANSFERS N IOUT): Operating transfers in Operating transfers out 13,894,9141 (3,937,2091 142,295) Total operating transfers 13,894,9141 13.937,209k 142,2951 Net Income 9,295,131 12,667,962 3,572,831 RETAINED EARNINGS • October 1 133,992,394 133,992,394 RETAINED EARNINGS • Septembst 30 143,287,526 146,860,356 3,672,831 ENCUMBRANCES AND CAPITAL OUTLAYS 1 NET OF DEPRECIATION INCLUDED ABOVE 2,682,055 2,682.056 RETAINED EARNINGS • September 30 1145,959,581 1149,542,412 1 3,572,831 s i •74• Cornprehanslve Annual financ4al Report I s A CITY OF DENTON, TEXAS 1 Solid Waste Total Variance. Variance. Favorable Favorable Budget Actual {Unfavorable) Budget Actual lUnfavurablel 1 $ 1 $ 73,716,904 1 72,048,516 $0,668,3881 16,118,588 14,700,321 (418,2671 10,566,951 8,889,807 (677,1441 6,494,109 6,949,613 455,604 6,834,209 7,566,758 732,649 8,000 100,518 92,518 114,375 178,493 84,116 6,502,109 7,050,129 648,020 106,351,027 104,383,895 {1,967,1321 38,865,764 39,955,002 (1,089,2481 8,222,765 8,797,389 1,525,378 91,250 77,227 14,023 2,260,226 2,165,690 94,636 13,778,557 12,872,743 903,814 39(1,455 350,418 48,037 2,171,994 1,942,348 929,648 765,252 769,217 13,9651 4,811,685 3,733,821 1,078,064 810,001 913,135 (23,1341 8,222,479 8,299,709 177,2301 199,031 118,764 70,277 189,031 118,764 70,277 1,070,375 BB1,691 188,684 7,375,780 8,206,279 11169,601 _ 298,910 237,733 61,167 6.612,106 6,943,229 668,877 5,870,240 6,436,638 433,702 90,439,601 85,946,499 4,493,102 631,869 1,613,591 981,722 16,911,426 18,437,395 2,625,970 210,663 439,762 229,189 2,822,848 5,720,286 2,897,440 (580,962) 15801962) (4,823,795) 15,726,9001 11,103,105! 1,688,510 1,686, 510 178,0001 1,633,280 1,611, 280 210,663 1,645,300 1,334,737 (1,878,9491 1,628,688 3,405,615 842,432 31158,891 2,316,459 14,032,477 19,884,062 5,931,585 e 159,0801 159,0801 13,894,9141 13,998,289) 1101,3751 (59,0801 159,0801 13,894,914) 13,996,299) 1101,3761 842,432 3,099,811 2,257,379 10,137,563 15,967,773 5,830,210 958,702 958,702 134,961,096 134,951,095 1,801,134 4,058,513 2,251,379 145,088,659 150,918,889 5,830,210 223,110 223,110 2,905,168 2,905,168 _ 12,024,244 14,281,623 12,257,379 1147,993,925 1163,824,035 1 6,830,21_0 O •75• - ComptAenslvs Annual Flnanciet Aapom 32x10 e tV CITY OF DENTON, TEXAS f COMBINING BALANCE SHEET • UTILITY SYSTEM SEPTEMBER 30, 1997 i I , t ~ r I ASSETS Electric System Water System Cash and deposits 1 / 202,703 investments 603.335 Receivables (net of allowances for uncollectibies) • Accounts 5,005,238 Unbilled utTty service 4,669,834 1,164,838 Accrued Interest 553,991 82,301 Other 1,093,419 1,675 Due from other funds 315,903 3,905 i Merchandise inventory 697,707 Prepaid items Deferred bond issuance casts 361,967 680,405 Restricted assets Cash and deposits 476,606 2,906,326 Investments 63,094,697 18, 840,124 Accrued interest $9,131 145,914 Accounts receivable 1,968,746 Due from other funds rrI Advances to other funds 3,781,784 Fixed assets (net of accumulated depreciationl 44,295,440 92,929,852 Total Assets $126,269,465 $117,361,178 (Continued) A J i 78 , - Comprahenatva Annual Financial Report e k 0 4 CITY OF DENTON, TEXAS 1 l Totals for Utility System I Wastewater System September 30, 1997 September 30, 1996 I 4 4 202,703 $ 1°4,Ot5 904,000 1,407,335 8,704,441 l 5,005,238 6,076,984 ` 669,216 6,403,688 5,216,053 68,758 700,050 1,055.240 16 236 11111,330 496,008 319,808 160,331 697,707 916, 784 ` 1,836 206,424 1,138,79; 1,211,226 1,406,393 4,789,332 1,405,880 8,039,684 89,974,485 77,272,466 84,400 289,445 319,782 8,901 779 1,958,746 - 3,761,784 4,831,784 37,780,827 175,006,119 171,259,318 E 419,165,923 $292,796,566 $288,098,997 s ' ~ 0 0 •77- I Comprahonslve Annual Financial Report -10 32xl[l s A 0 CITY OF DENTON, TEXAS I COM9INING BALANCE SHEET • UTILITY SYSTEM 1Concludedl SEPTEMBER 30, 1997 UABiLITIES AND FUND EQUITY Electric System water System Usbilttas: Accounts payable and accrued expenses 1 6,452,251 4 340,228 Retainage payable - Accumulated unpaid compensated absences 389,834 105,571 Deposits 6,424 Payable from restricted assets • Accounts payable and accrued expenses 137,521 Retainage payatle Due to other funds ' Accrued interest 333,680 974,123 Revenue bonds payable 1,837,700 2,599,133 Accrued interest Dux to other funds 86,092 22,155 Advances from other funds Revenue bonds payable 16,368,214 46,372,579 Notes payable 31,219,934 Total Liabilities 26,654,195 61,771,244 Fund Equity: Contributed capital - From other municipalities or governmental unit 13,060 6,542 In aid of construction 1,.?9,711 14,654,258 Less: Accumulated depreciation 1898,8321 B.2 54,9851 Net contributed capital 423,939 6,605,815 Retained earnings - Reserved for bond retirement 3,952,391 6,342,690 Reserved (of capital projects 1,959,411 5,703,857 e Reserved for rate stabiheat,on 51,300,000 2,750,000 Reserved for working cap tal 1,633,000 310,000 Reserved for emergency 4,083,000 775,000 Reserved for water tower 750,000 Reserved for infrastrurture financing 1,000,000 Reserved for contingency 300,000 Reserved for cspital construction 500,000 250,000 Urvescrved 35,763,529 10,802,532 Q I Total Retained Earnings 99,191,331 28,984,119 Total Fund Equity 99,615,270 35,5E9,934 Told Urbilitlss and Fund Equity 1126,269,465 $117,361,178 78 Comprohanasvs Annual Financial Report A O CITY OF DENTON, TEXAS 1 Totals for Utility System I { Wastewater System September 30, 1997 September 30, 1996 I 6 277,920 0 7,070,399 $ 3,198,144 17, 5 48 I 136,658 632,063 601,137 ` 1,186,424 1,158,167 r 79,791 217,312 133,378 1 42,502 323,354 1,631,157 1,868,853 111`f 943,157 5,380,000 5,380,000 { 223,140 331,387 8,366,227 3,000,000 3,000,000 4,000,000 15,769,208 78,510,001 63,890,001 31,219,934 31,219,934 20,753,238 129,178,677 139,897,495 1 14, 890,022 14, 909,6 24 14, 909,6 24 11,442,426 27,606,395 25,874,107 (19, 9,286,7251 128,440, 5421 126,574,6191 7,045,723 14,075,477 14,209,112 I 2,353,764 12,648,845 12,602,157 2,769,386 10, 432,694 12,526,017 0 800,000 54,850,000 45,932,000 217,000 2,160,000 2,011,000 544,000 5,402,000 5,029,000 750,000 550,000 1,000,000 2,000,000 1,610,000 260,000 650,000 ~ I 266,000 1,000,000 13,182,812 59,748,873 53,532,220 f 21,366,962 149,642,412 133,992,394 28,412,695 163, 617,889 148,201,606 49,165,923 $292,798,666 $288,098,997 .79 - Convprahon%Iv4 Annual Financial Aaport ~~W Awl A d CITY OF DENTON, TEXAS COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS • r , UT19TY SYSTEM FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 , Electric System Water System OPERATING REVENUES: Electric service 672,048,516 1 Water service 14,700,321 Wastewater service - Charges for services 617,145 Miscellaneous 45,741 Total Operating Revenues 72,665,661 14,746,062 Ii OPERATING EXPENSES: Purchased power 38,974,024 570,289 Fuel 6,763,840 Purchase of water 77,227 Salaries and wages 5,199,718 2,111,799 Materials and supplies 757,300 638,376 Maintenance and repairs 1,452,977 738,700 Depreciation 3,261,309 2,266,927 Administrative cost 4,140,527 1,994,193` Miscellaneous 3,530,452 444,296 Total Operating Expenses 64,080,147 8,741,807 Operating Income 8,585,514 6,004,255 NONOPERATINO REVENUES (EXPENSES):, Interest revenue 3,503,582 1,194,602 Interest expense and fiscal charges 11,093,2531 (3,052,001) Other 1174,7291 $2,910 TotalNonopsrsting Revenues (Expenses) 2 3 5,600 11,774,489) Operating income Before Operating Transfers 10,821,114 4,229,766 OPERATING TRANSFERS IN IOUT): Operating transfer in Operating transfer out (3,691,9141 122,1551 Total Operating Transfers (3,691,9141 122,1551 Not Income 71129,200 4,.J7,61I j Add, Depreciation of fixed assets acquired with contributed capital 58,078 679,551 Increase in retained earnings 7,167,278 4,887,162 RETAINED EARNINGS • October 1 92,004,053 24,096,957 Q RETAINED EARNINGS • September 30 199,191,331 $28,984,119 •80• Comprehensive Annual Financial Report r f , F 1 d 32X10 ' e 0 -CITY OF DENTON, TEXAS Tota4 for Utility System I Year Ended Wastewater System September 30, 1997 September 30, 1996 $ i 72,048,516 1 69,533,180 14,700,321 15,328,596 9,b89,807 8,889,607 9,997,665 • 617,145 447,923 l 32,236 77,977 63,460 9,922.043 97,333,766 95,370,824 400,774 39,945,087 41,469,061 33,546 6,797,386 6,981,645 77,227 80,290 2,429,063 9,740,580 9,293,913 234,786 1,530,462 1,604,706 608,303 2,699,980 3,116,752 1,495,637 7,023,673 6,679,138 1,251,SE5 7,386,576 8,728,872 1 _ 617,909 4,492,657 3,047,554 i 6,871,874 79,693,828 81,001,931 _ 3,050,169 17,639,938 14,368,893 582,350 5,280,534 5,082,643 11,000,6841 15,145,938) (7,020,961) _ 161,4111 1153,230) 118,253) j (479,7451 118,634) 11,955,5711 2,570,424 17,621,304 12,412,322 A 1223,140) 0,937.2091 1734,914) 1223.1401 13,937,209) 1734,914) 2,347,284 13,684,095 11,677,408 1,128,294 1,865,923 1,791,193 _ 3,476,678 15,550,016 13,468,601 O 17,891,384 133,992,394 120,523,793 $21,366,962 4149,542,412 4133,992,394 .81. ComprehonVve AnnuM Flnamdf Report 32 x h e 0 l CITY OF DENTON, TEXAS COMBINING STATEMENT OF CASH FLOWS - UTILITY SYSTEM FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Electric Water System System f i flows from Wei sting activities: .ash received from customers 3 70,575,900 1 21,087,255 Cash paid to employees for services 159,923,7881 12,108,806; Cash paid to suppliers (5,187,6161 14,290,6451 Net cash provided by operations 5,464,496 14,687,804 Cash flows from noncapital financing activities: Contributions to Fleet Replacement Fund 1211,394) Operating transfers out to other funds (3,691,9141 122,1551 Principal payment on longterm advance from other funds Payment received on longterm advance to other funds 1,050,000 Contributions to others ' Proceeds from other 36,665 68,297 Net cash fused for) noncapital financing activities (2,816,643) 66,142 Cash flows Iran capital and related financing activities Proceeds received from contributed capital 17,000 307,675 Principal payments on revenue bonds 11,951 12,520,4311 Intarest and fiscal charges (1,104,0091 13,201,639) Proceeds from sate of revenue bonds Proceeds from issuing of notes payable Principal payment on notes payable Acquisition and construction of fixed assets 15,105,7481 (2,065,6971 Net cash (used for) capital end related financing activities (8,143,5541 17,A80,092) Cash flows from Investing activities: Proceeds from sale and maturities of investment securities 59,353,778 35,971,938 e Purchase of investment securities 158,244,5331 (41,297,971) Interest received on investments 3,532,473 1,150,404 Net cash provided by fused for) investing activities 4,641,718 14,175,629) Net increase (decreasel in cash and cash equivalents it 53,9831 3,098,225 Cash and cash equivalents October 1 030,591 10,804 Cash and cash equivalents September 30 $ 476,608 1 3,109,029 Q r g (Continued) •92• Comprshens)ve Annual Financial Report I ?S~~Q 32X Miff MRA 0 r CITY OF DENTON, TEXAS 1 Totals for Utility System Year Ended Wastewater System September 30, 1997 September 30, 1996 $12,130,128 1103,793,283 6 88,615,644 I (2,413,232) (64,445,820 153,016,2711 12,606,073) (12,084,3341 113,128,498) 7,110,823 27,263,123 22,470,875 (79,039) 1290,433) (149,9501 (223,1401 (3,937,209) {734,914} 11100010001 11,000,0001 11,000,0001 1 1,050,000 1,050,000 (8,2491 18,929 143,891 139,946 (1,283,250) 14,033,7511 1703,1671 81,811 406,486 261,153 1908,772) {5,380,000) 14,36E 0001 11,015,5561 {5,321,204) 16,551,2511 39,260,000 282,360 (33,867,4211 (2,173,427) 19,344,872f (8,535.846) 14,015,944) 09,839,5901 (13,536,005) 7169,536 102,495,252 73,620,631 16,357,6611 1107,900,1651 190,028,264! 550,324 5,243,201 5,081,576 (627,801) 1181,712) 111,326,0571 1,183,828 3,428,070 13,094,354) 222,570 1,563,965 4,658,319 1 1,406,398 1 4,992,035 4 1,563,965 I •83• I Canprehenslve Annual Finenelel Report 2 5 K lo 32x 40- o • o CITY OF DENTON, TEXAS COMBINING STATEMENT OF CASH FLOWS UTILITY SYSTEM lConcluded) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 1 Electric Water System System 'I + Reeonc8iadon of Utility System Operating Funds Income to Not Cash Provided by Operating Activities i Operating income 1 8,585,514 16,004,255 Adjustments: Depreciation expense 3,261,309 2,266,927 Gain (Loss) on tale of fixed assets 15,387) Decrease Ilncreasel in receivables (1,934,189) 1249,616) Decrease (Increase) in due from other funds 1155,5721 6,596,095 Decrease (Increase) In inventories 219,077 Decrease (Increase) in prepaid items 1,176 increase IDecreasel in accounts payable 3,709,990 97,505 Increase (Decrease) in accumulated unpaid compensated absences 12,102 2,993 Increase (Decrease) in due to other funds (8,233,7351 126,245) ` Total adjustments 13,121,018! 8,683,649 Net cash provided by operating activities 1 6,464,496 114,687,804 SupptemeMal Schedule of Noneesh Capital and Related Financing Activities NDncash activity during the year cons;sted of contributed capital from contractors and developers for the Water and i Wastewater Funds in the amount of $924,252 aw 1401,550 respectively. i I i •e4• Comprehensive Annual Flnanclel Repot f 2.5 IT3 32X113 i s C o CITY OF DENTON, I ERAS I Totals for Utility System Year Ended Wastewater System September 30, 1997 September 30, 1998 1 ~,1 13,050,169 $17,639,938 $14,368,893 1,495,637 7,023,873 6,679,138 (1,3011 16,689) (93, 3931 12,2 77,0971 142,749 2,302,779 8,743,302 (7,497,9291 219,077 368,659 660 1,836 0,836) 117,301 3,924,796 (421,4091 15,831 30,926 58,799 223,140 18,036,840) 8,175,811 4,060,664 9,623,185 8,101,982 07,110,823 127,263,123 122,470,875 A I • I •85• CompraAansfvs Annual Manctal R#W ?5 x ❑ 32X r o CITY OF DENTON, TEXAS ` I I 1 M f I A 0 1 i 86 ' CMnpreh"mlre Annuli rlnamwell Report ~nlo 32x1' 0 0 i Faau CITY OF DENTON, TEXAS 1 I SUMMARY OF INTERNAL SERVICE FUNDS I FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Warohou" Fund -to account for the financing of goods and services provided by the Warehouse to other City departments. Such costs provided by the Warehouse are billed to the other departments at standard labor charges and cost of parts plus 15%. Actual costs include depreciation on I machinery and equipment used to provide the service. Fhret Servkes Fwd- to account for the financing of goods and services provided by the Municipal Garage and Machine Shop to other City departments. Municipal Garage and Machine Shop billings include I labor charges and cost of parts plus 25%. Actual costs include depreciation on the building, Improvements, machinery, and equipment used to provide the service. Motor Pod Fund • to account for the purchase of City vehicles and equipment not budgeted In other { funds. These vehicles are then leased to other City departments. Monthly charges are equal to the vehicle cost less salvage value divided by the expected life of the vehicle. I Risk Refentfon Fund • to account for the accumulation of resources for the payment of employee Insurance claims and insurance policies. 1 J I i 0 1 d ~ Q 87, Camprehenelve Annual Flnenolel Report 25 x 10 32x10 C n CITY OF DENTON, TEXAS COMBINING BALANCE SHEET • ALL INTERNAL SERVICE FUNDS SEPTEMBER 30, 1997 ASSETS Warehouse Fleet Services Motor Pool , Cash and deposits e - $ $ 70,074 Investments Receivables Accounts receivable 97 Accrued interest 120,709 other 10,140 8,726 Due from other funds 9,562 201,775 Merchandise inventory 1,923,718 158,597 Prepaid items 1,174 - - Restricted assets • Cash and deposits 140,370 j Investments 6,418,380 Fixed assets (net of accumulated depreciation) 114,696 233,030 6,774,934 Total Assets $2,059,290 1400,450 112,724,242 LIABILITIES AND FUND EQUITY Llawrtles: Accounts payable and accrued expenses $1,164,188 $ 138,004 $ 125,911 Accumulated unpaid compensated absences 7,433 12,234 9,268 M Accrued interest payable 2,089 20,402 Due to other funds 143,026 3,356 j Leases payable 28,270 General obligation bands payable 72,900 Certificates of obligation 90,335 1,255,690 Claims payable Total Lfabilitles 1,342,917 246,018 1,484,171 Fund Equity. Contributed capital 281,391 6,338,779 Less: Accumulated c'epreeiation (281,391) (5,128,1231 _ Net contributed capital 1,210,656 Retained earnings - Reserved for capital projects 140,370 Reserved for fleet replacement 5,416,380 Reserved for suthariaed expend-lures - Reserved for fvture claims Unreserved 716,373 154,432 4,472,665 Total Retained Earnings 716,373 154,432 10.0"29,415 Total Fund Equity 716,373 154,432 11,~47071 Total Liabilities end Fund Equity $2,059,290 $ 400,450 $12,724,242 1D I jl •88• Comprohanslve Annual Financial Report -f ?S>< ❑ 32XE❑ 0 l CITY OF DENTON, TEXAS I j I r Totals _ ti Ris!. Retention September 30, 1997 September 30, 1996 ' 1 241,055 1, 311,129 $ 839,223 943,574 943,574 5,011,517 • 97 69,129 189,838 214,100 14,201 33,067 49,341 211,337 2,715,699 2,082,315 1,759,858 1,174 1811559 140,370 149,629 4,117 797 9,534,177 5,421,012 6,136 7,126,796 6,130,315 $6,391,892 120,575,874 !22,472,153 S 257,068 1 1,685,171 { 553,676 28,935 40,075 22,491 22,574 148,382 3,749,895 28,270 75,354 72,900 88,65E 1,346,025 1,724,918 1,017,027 1,017,027 2,525,492_ 1,214,095 4,347,201 6,760,640 6,620,170 6,046,616 15f 09,5141 15,034,4181 1,210,656 1,012,198 140,370 149,529 5,416,380 5,421,012 13,000 13,000 13,000 4,104,797 4,104,797 3,130,531 6,343,470 3,965,243 4,117, 797 15,018,017 12,6 79, 315 4,117,797 18, 228,673 13, 691,513 46,391,892 $20,676,874 $22,472,153 i ,89, 1 Comprehensive Annual Financial Repm tt1 1 rOwiF 1 32X w w e I 6 f CITY OF DENTON. TEXAS I COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS IDEFIGT) ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I Warehouse Fleet Services Motor Pool OPERATING REVENUES: Charges for goods and services $2,907,498 12,149,252 4 2,037,787 i Premiums i Miscellaneous 1,357 Total Operating Revenues 2,907,498 2,160,609 2,037,787 OPERATING EXPENSES: Salaries and wages 138,117 442,738 84,729 Materials and supplies 2,439,035 1,463,265 412 Maintenance and repairs 6,968 12,030 3,130 Depreciation 14,216 14,634 1,836,160 Insurance ' Miscellaneous 184,525 38,161 4,542 Total Operating Expenses _ 2,762,861 1,970,828 1,928,973 I Oprating Income ILossl 124,637 179,781 108,814 I ~ I NON0PEAAT".'0 REVENUES (EXPENSESI: Intertyt revenue 323 380,443 Interest expense and fiscal charges 15,2671 18,3561 {86,673) j Other 15,189 283,705 Total Nonoperating Revenues IExpenses) 9,922 18,0331 677,576 Operating Income Before Operating Transfers 134,559 171,748 688,389 OPERATING TRANSFERS IN IOUTI: Operating transfer in 46,168 Operating transfer out 148,6241 e Total Cprating Transfer In 104 (3,3561 Nat lncana 134,659 168,392 685,389 Add: Depreciation of fixed assets acquired with contributed capital 37F,096 Increase in Retained Earnings 134,659 168,392 1,081,485 E RETAINED EARNINGS (DEFICITI • October 1 681,614 113,960) 8,967,930 • RETAINED EARNINGS - September 30 1 716,373 1 164,432 110,021,416 a74' i ComprNrenslve Annual Financial Repoli K 32X10 R IE ~ I 0 CITY OF DENTON, TEXAS i tt I i Totals 111 Year Ended I Risk Retention September 30, 1997 September 30, 1996 t 7,094,537 5 6,587,669 5,574,780 5,574,780 4,599,478 339 1,656 7,664 I 5,575,119 12,671,013 11,194,611 25,07 691,261 772,628 10,999 3,913,712 3,539,554 1,712 23,840 45,259 1,865,009 1,595,084 4,104,704 4,104,704 3,535,567 656,043 883,271 1,008,246 4,799,135 11,481,797 10,496,338 775,984 1,189,216 698,273 1 265,750 666,515 655,415 1100.1961 1135, 3451 17,532 316,426 211,760 303,282 882,746 731,830 h 1,079,266 2,071,962 1,430,103 46,168 110510001 1153,5241 1132,0001 1105,0001 1108,3561 1132,0001 974,266 11963,015 1,298,103 375,096 313,742 974,266 2,338,702 1,611,845 . 3,143,531 12,679,315 11,067,470 44,117,791 $16,018,017 112,679,315 l •91• Comprahenslve Annual Flnandal Aeport < c3 ❑ 32' e 0 CITY OF DENTON, TEXAS COMBINN: i STATEMENT OF CASH FLOWS • ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I Y Warehouse ' Cash flows from operating activities: Cash received from customers 1 2,911,032 j Cash paid to employees for services 1139,752) I Cash paid to suppliers 12,732,340) ! Not cash provided by fused for) operations 38,940 Cash Rows from noncaprtal fvancing activities: Operating transfers out to other funds Operating transfers from other funds Proceeds from other 15.827 Net cash provided by [used for) noncaphsl financing activities 15,627 Cash flows from Capital and related financing activities: Principal payments on certificates of obligations Interest and liscat charges ICBM Proceeds from issue of certificates of obllgafion Principal payments under capital lease obligations 111,670! ' Acquisition and construction of fixed assets 137,8301 Proceeds from sale of fixed assets 16381 Not Cash (used tor) capital and related financing actfvttias _ (54,767) Cash flows from Investing activities: Proceeds from sale and maturities of investment securq,es Purchase of Investment securities - Interest received on Investments Net cash provided by Investing activities Net increase (decrease) in cash and cash equlvalents Cash and cash equivalents • October 1 Cash and cash equivalents - September 30 1 Reconciliation of internal Service Operatng Income to Net Cash Provided by (Used forl Operating Activities Operating income (loss) 4 124,637 Adjustments: Depreciation expense 14,215 Loss iGalnl on sale of fixed asset 638 Decrease Oncrease) In receivables 6,097 „ Decrease (Increase) in due from other funds (2,683) Decrease (Increase) in inventories (305,491) i S Decrease (Increase) in prepaid items In;rase IDecreasel in accounts payable 1,102,370 Increase IDecrease) in leases payable Increase IDecreasel In accumulated unpaid compensated absences 11,6351 Increase IDecressel in due to other funds 1899,328) Increase IDecreasel in claims payable Total adjustments (85,697) 0 Net cash provided (used for) by operating activities S 38,940 Q ~ Supplemental Schedvde of Noncash Capital and Rotated Financing Actlvlties t Noncash activity during the year consisted of contributed capital from contractors and developers for the internal Service Funds in the amount of 1573,654. ,92• i Comprehensive Annual Financial Report ) x 1 ~ 32XIO y a 0 I CITY OF DENTON, TEXAS 1 Totals Year Ended 1 Fleet Services Motor Pool Risk Retention Seonmblr 30, 1997 September 30, 1996 6 2,141,798 1 1,962,011 i 8,300,778 { 15,315,619 $8,071,132 1453,7061 183,2661 125,6771 (702,4011 (769,551} (1,638,568) 18,0841 18,793,1581 (13,172,1501 16.833,691) 49,524 1,870,561 1518,0571 1,441,068 1,267,890 l (3,356) 005,0001 1108,3561 (132,000) 1 11,532 33,359 55,412 1 13,3561 187,4681 174,9971 (76,588) (45,168) 1349,4801 (394,6481 (538,1041 18,3561 (86,6561 (99,641) 1143,199) ( 135,4141 147,0841 1121,7181 16,1351 (2,240,473) 16,1361 12,290,5741 12,448,7971 - 283,705 283,067 188,093 159,6591 (2,428,3181 16,1361 12,548,8801 (3,063,7251 4,038,835 4,119,706 8,758,541 3,171,835 14,634,2021 14,169,560) (8,803,7621 11,992,9331 ` 323 381,833 308,621 690,777 621,639 323 366,466 268,767 645,556 1,800,541 113,1661 1171,1911 1352,8941 (537,2531 (71,882) 13,168 381,635 593,949 988,752 1,060,634 { $ 210,444 S 241,055 1 451,499 4 988,752 1 179,781 1 108,814 { 77$,984 1 1,189,216 { 698,273 14,634 1,836,160 1,865,009 1,595,084 638 8,401 (8,19 111 18,891 16,177 142,452 1199,8431 2,706,768 2,504,362 12,465,931) 116,9661 1322,4571 277,290 0 179,747 179,747 1179,7411 1111,6021 +24,068 16,559 1,131,495 126,4531 112,3761 (10,9681 1,462 (11,1411 3,077 3'56 (2,707,5411 13,603,6131 1,999,440 11,508,4661 (1,608,4651 1771,6201 4 1130,2571 1,761,847 11,294,041) 251,852 689,617 t 49,524 11,870,661 1 (518,0571 1 1,441,068 41,287,890 0 . 31 J14 •f3• ComprohsnsIv4 Annual Financial R4port - 2~ ~Q 32x10 w r 0 l t ' o CITY OF DENTON. TEXAS SCHEDULE OF REVENUES, EXPENSES AND CHANZIES IN RETAINED EARNINGS (DEFICIT) BUDGET AND ACTUAL • IBUDGET BASIS) • WAREHOUSE, FLEET SERVICES, AND MOTOR POOL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I Warehouse Variance- Favorable Budget Actual (Unfavorable) OPERATING REVENUES: Charges for goods and cervices $2,865,743 $2,907,498 $ 41,755 Miscellaneous • Total Operating Revenues 2,865,743 2,907,498 41,755 OPERATING EXPENSES: Salaries and wages 135,154 139,753 14,599) ` Mat(:nleis and supplies 2,506,925 2,435,593 71,332 Maintenance and repairs 9,050 6,967 2,083 Administrative cost Miscellanecus 207,808 183,354 14,454 Capital outlay 45,653 45,584 69 Total Operating Expenses 2,904,590 2,821,251 63,339 Operating Income {loss) (38,6471 66,247 125,094 4 I NONOPERATIl REVENUES (EXPENSES): Interest revenue - Interest expense and fiscal charges 15,2671 15,2671 Other 15,027 15,189 16381 Total Nonoperating Revenues (Expenses) 10,560 9,922 1638) Operating Income Mossl before operating translate 128,2871 98,169 124,456 OPERATING TRANSFERS IN IOUTI: ^ Operating transfer in S Operating transfer out Total operating transf;rc in loath Net Income 11.0111 128,287) 96,169 124,45e RETAINED EARNINGS lD[FICFTI • October 1 681,814 681,814 RETAINED EARNINGS IDEFICFII • September 30 (Budget Ill 553,527 677,983 124,466 ENCUMBRANCES AND CAPITAL OUTLAYS NET OF Q DEPRECIATION INCLUDED ABOVE i 38_390 38,390 RETAINED EARNINGS IDEFICITI • Septarnibm 30 IGAAPaesid / 691,917 $ 716,373 $124,456 aim.. I •94• Comptehenalve Annual Financial Report I ' ~5 32xI[3 O r I I CITY OF DENTON, TEXAS F1:et Services Motur Pool I Variance- Variance. Favorable Favorable Budget Actual {Unfavorable) Budget Actual (Unfavorable) $2,428,122 $2,149,252 51278,8701 $2,169,437 1 2,037,787 $031,650) 1,357 1,357 I 2,426,122 2,150,609 1277,5131 2,169,437 2,037,787 {131,6501 1 484,45? 442,738 41,714 85,162 83,267 1,895 Il 1,744,825 1,492,658 252,167 900 412 488 17,400 12,450 4,950 8,050 3,130 4,920 I 95,475 19,430 76,045 65,970 32,861 33,109 6,521 4,543 1,978 35,600 21,022 14,578 2,434,032 1,103,361 730,671 2,443,722 2,021,159 422,43 2,534,665 1,794,713 739,952 05,600) 129,450 145,050 1365,228) 243,074 609,302 1 2,195 323 (1,8721 334,000 380,443 48,443 18,356) (8,3M (86,5731 1%6,6731 _ 65,000 283,705 197,705 1 2,195 18,0331 10,22 B) 420,000 577,575 157,575 113,4051 121,417 134,622 54,772 $20,649 765,877 45,168 45,168 148,5241 (48,524) 13,3561 13,3561 113,4051 118,061 131,466 54,772 820,649 765,877 113,9601 0 3,9601 8,967,930 8,957,930 . 121,3651 104,101 131,466 9,022,702 9,188,679 765,877 0 ~ $0,331 60,331 240,836 240,836 1 22,966 11 154,432 1 131,466 $9,263,638 $10,029,415 4 765,877 I .95. Compmhanslvs Annual Flnanclal Report - Y !&JN 2", 32x o -CITY OF DENTON. TEXAS ' I I i E 1 a I o CwWah Ove Annual Flnandel Repm I 25 K l❑ 32XIo e U CITY OF DENTON, TEXAS I SUMMARY OF TRUST AND AGENCY FUNDS t FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 i EXPENDABLE TRUST FUNDS Mrscohnsous - to account for several small trust funds which are varied In purpose. AGENCY FUNDS II Payroll • to account for the collection and paymem of the City's payroll and associated lisbilities. l I Deferred Compensation - to account for the City employees' investment In a deferred compensation plan. Other • to account for miscellaneous City employee funds. 1 1 i i Jv f Comprehanslvs Annual Fins a6d Report x 32x O 6 0 CITY OF DENTON, TEXAS COMBINING BALANCE SHEET • ALL TRUST AND AGENCY FUNDS SEPTEMBER 30, 1997 { I + Expendable ASSETS Trust Fund Agency Funds Cash and deposits N2,265 13,887,292 Other rece vables 7,639 Total As lots $12,265 93,694,931 LIABILITIES AND FUND BALANCE Accounts payable $ 4.821 $3,894,931 Due to other funds Total LONlities 4,821 3,894,931 Fund balance 7,444 Total UabTties and Fund Balance $12,265 $3,894,931 I 1 ~J T • II .gg. - Comprohantive Annual Financial Report 0 o csx.n c'a I CITY OF DENTON. TEXAS I Totals September 30, 1997 September 30, 1996 13,899,557 $2,877,215 7,639 7,256 13,907,196 42,884,471 ` 13,899,752 12,867,930 I 148 3,899,752 2,868,078 7,444 16,393 13,907,19S $2,884,471 1 h , i , I •99~ CemprahonNve Annual FNenclal Ripon 26 t 10 32x10 e 0 -r CITY OF DENTON, TEXAS STATEMENT Of CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Balance October t, 1998 PAYROU FUND ASSETS Cash and deposits 1 289,928 Other receivables 7,256 Total Assets ll 2 97, 0 84 LtATILl'TiES ~a Atcouits payable F W,042 Due to other funds 142 Total Uab6'ides 1 297,184 DEFERRED COMPENSATION flrNO ASSETS Cash and deposits 12,503,102 Total Assets 01,503,102 LIABILITIES 1 Accounts payable • due to participants 02,503,102 1 I Total Uabl itles 02_5~03,1~02 i ALL OTHER AGENCY FUNDS } ASSETS Cash and deposits 1 64,603 Total Assets 84,603 LIABILTIES Accounts payable • due to employees 0 64,603 Total Uawfles 0 84,603 TOTAL AGENCY FUNDS • ASSETS Cash and deposits 12,857,633 Other receivables 7,256 Total Assets 12,864,889 LIABILITIES Accounts payable 17,864,747 Due 10 other funds 142 Total U&Witlas 12,884,889 O • •too• Comprehensive Annual Flnanclal Report -r te,, ,C 10 32 x I 0 o 4 CITY OF DENTON, TEXAS I l 1 Balance ' Additions Deductions September 30, 1997 160,651,377 160,625,670 1 316,635 I 363 7,639 $60,651,760 $60,825,670 3 323,214 I I $26,244,885 626,218,653 s 323,214 I 142 $26,244,866 126,218,795 6 323,274 I 1 1,119,415 0 111,544 3,510,973 $ 1,119,415 4 111,544 13,510,973 $ 1,119,416 $ 111,644 13,510,973 $ 1,119,415 $ 111,544 $3,510,973 I 1 1,576 $ 5,494 $ 60,684 4 1,576 0 6,494 s 60,684 $ 1,575 $ 5,494 s 60,684 $ 1,575 $ 6,494 $ MOM $61,172,387 160,742,708 $3,887,292 383 7,639 $61,712,760 $60,742,108 43,894,831 $27,385,875 $26,335,691 63,894,931 ! 192 O ! $21,365,876 $28,335,833 13,894,931 •101• CompreheWvs Annust Flnancist Report w. 25x10 32x O s o '.I~.WR'M1pY CITY OF DENTON, TEXAS I~ E 1 00 k t { I. i~ • tot Comprehonfive AnmrY Flnmcial H*pod 7.5 x 10 32x~~ 0 r -CITY OF DENTON, TEXAS I GENERAL FUND SUPPLEMENTAL INFORMATION II I SCHEDULE OF EXPENDITURES ` BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I ~ i 1 i I ' ri i .103 CornprBMn/ir~ Annual Financial Acp o+r 25A10 32x O 'A1:r li NtY O 1 Cp. "n, .,q CITY OF DENTON, TEXAS , I GENERAL FUND • SCHEDULE OF EXPENDITURES • BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance- Actual Actual Favorable i1 Budget Expenditures Encumbrances (Unfavorable) GENERA! OOVERN11i Administration 100001 Personal Services 1 615,825 1 616,825 1 1 Supplies 24,740 24,720 20 Maintenance 632 805 27 Services 94,931 94,517 332 82 Sundry 20,316 19,131 53 631 Fixed Assets • Proprietary Funds Reimbursement 1291,7211 (291,721) 364,722 363,677 385 660 Public Information 100011 Personal Services 65,814 85,814 Supplies 1,100 688 414 Maintenance 283 283 Services 2,609 2,353 250 6 Fixed Assets 1,800 1,589 11 Proprietary Funds Reimbursement ' 71,416 70,442 250 724 i Cable TV 10003; Personal Services 5,752 6,715 37 Supplies 2,862 48 2,643 171 Ma rtenanae 619 149 460 10 Services 3,110 3,089 21 f Sundry 800 $26 274 i Proprietary Funds Reimbuuseii,ent _ 13.143 9,527 3,103 513 I 1 ~ 11 Facilities management 100021 Personal Services 434,254 433,931 323 Supplies 21,980 27,810 90 80 Maintenance 165,663 160,087 3,190 2,386 Services 1,351,526 1,289,270 29,320 32,938 Administrative transfer Fixed Assets 125,000 125,000 _ Proprietary Finds Reimbursement (188,5331 it III 1.917.00 1,849.565 _ 32,600 35,725 104 Compfohanslve Annual Flnanclat Aspen ~i, I I ?5 1❑ 32x ❑ r o:m~+a 0 1 CITY OF DENTON, TEXAS GENERAL FUND • SCHEDULE OF EXPENDITURES ' BUDGET AND ACTUAL (CONTINUED) 1 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance- Actual Actual Favorable Budget Expenditures Encumbrances IUnlavorablel Administrative Services 100811 Persural Services 1 244,129 1 243,995 1 1 134 Supplies 151960 15,547 393 10 Maintenance 21,828 19,250 2,638 40 Services 23,023 17,099 6,850 74 Fixed Assets ; Proprietary Funds Reimbursement 1128,7441 (129,7441 _ 176,288 161,147 8,881 258 Human Resources 10008) Personal Services 463,638 463,568 70 I 2upplles 28,053 27,918 135 l Maintenance 3,2b1 3,002 291 Services 117,003 73,811 13,372 10 ` Sundry 11,077 11,045 32 e Fixed Assets 450 418 34 Proprietary Funds Reimbursement 1384,1401 1364,1401 229,372 215,428 13,372 572 I Inlmmation Services (00801 Personal Services 631,854 631,825 29 Supplies 47,025 41,504 5,521 Maintenance 133,183 97,215 35,949 19 Services 698,961 663,047 35,905 9 Sundry 150 28 122 Fixed Assets 4,330 4,039 291 Proprietary Funds Reimbursement 1110,6861 1210,5881 1,304,917 1,227,072 77,375 470 s ' Legal Administration 100041 Personal Services 521,548 521,513 33 Supplies 10,350 10,264 86 Maintenance 150 150 Services 71 ,Bo 65,837 16,022 2 ~ Sundry 800 451 343 Q , Fixed Assets 19,845 19,769 78 Proprietary Funds Reimbursement 1189,4381 1181 434,114 419,552 15,022 540 I • 105 Comprshsnslve Annual flmwclM Rai 7 5 n:10 V X 10 o CI1YfY._,i1 CITY OF DENTON, TEXAS GENERAL FUND • SCHEDULE OF EXPENDITURES • BUDGET AND ACTUAL. ICONTINUEDI FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance. Actual Actual Favorable Budget Expenditures. Encumbrances (Un",vorablel Municipal Court Judge 100051 Personal Services 1 171,910 lt 149,345 $ 1 22,566 Supplies 3,060 2,290 770 Maintenance 400 64 338 Services 27,850 6,288 21,564 Fixed Assets 8,700 1,423 6,288 989 211,920 159,408 6,288 46,224 Municipal Services 100091 Persoral Services 271,816 271,815 1 Supplies 6,802 6,602 Ma ntenance 350 347 3 Services 12,862 12,286 676 Sundry 454 453 1 292,284 291,703 0 581 Library Administration 100701 Personal Services 138,175 136,174 1 f Supplies 12,611 12,263 225 123 f Maintenance 31,617 31,616 1 Services 61,944 57,751 3,444 749 242,347 237,804 3,669 874 Library C,rculation Services 100711 Personal Services 230.862 230,623 39 Maintenance 284 135 149 231,146 230,958 0 188 Library Svpport Services 100721 4 Personal Services 133,444 133,443 1 r 1 Supplies 5.950 5,318 see 44 Manterwce 5,000 4,469 527 4 Services 350 82 268 144,744 143,312 1.115 317 1 106• k Comprehensive Annual Financial Report r`Ff 32 X 10 o CITY OF DENTON, TEXAS GENERAL FUND • SCHEDULE OF EXPENDITURES • I BUDGET AND ACTUAL !CONTINUED) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance- Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) I Library Adult Services (00731 Personal Services 1 259,981 1 258,313 1 1 1,648 Supplies 6,000 6,965 35 Services 580 496 85 Fixed Assets 84,138 78,482 5,684 Bo 350,677 343,266 8,58♦ 1,868 1{ library Children Services (0074) { 1 Personal Services 187,018 187,018 Supplies 1,200 1,144 10 46 Services 700 698 2 Fixed Assets 30,000 20,150 9,850 218,918 209,010 9,860 48 South B(sncb Library 100751 Personal Services 145,161 145,160 1 Supplies 2,492 2,474 1B Maintenance 986 760 236 Services 32,282 23,922 6,726 1,634 Fixed Assets 45,302 38,000 7,301 1 228,223 210,306 14,281 1,636 l finance Administration 10020) Personal Services 212,914 212,813 101 Supplies 4,219 4,076 143 Maintenance 100 27 73 Services 25,921 25,378 204 339 243,164 242,294 204 656 Purchasing 10021) Personal Services 253,419 253,412 1 Supplies 9,710 9,646 7 167 Maintenance 426 198 229 Services 21,316 21,278 38 w Fixed Assets 907 473 425 9 g roprietary Funks Reimbursement (171,434) (171,434) 114,343 113,471 432 440 i •107• Cemprehanslve Annual Financial Rsport 25 x ~d 32xIC3 ~ r O M1 CITY OF DENTON, TEXAS GENERAL FUND • SCHEDULE OF EXPENDITURES • BUDGET AND ACTUAL ICONTINUED) I FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance- Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) Customer Service (0022) Personal Services 1 722,152 S 722,141 4 1 11 Supplies 215,660 213,163 2,142 235 Maintenance 4,198 4,166 12 Services 84,187 83,970 90 127 Proprietary Funds Reimbursement 19521068! 1952,0681 74,029 71,412 2,232 385 Cashiering 100231 I Personal Services 363,343 363,338 6 I Supplies 6,329 5,329 Maintenance 626 625 Services 13,721 13,605 120 2 Proprietary Funds Reimbursement 1207,8331 (207,6331 176,391 175,264 120 7 Accounting (0024) Personal Services 496,848 496,765 93 Supplies 16,501 16,499 2 Maintenance 1,181 1,046 136 Services 17,468 17,465 1 Proprietary Funds Reimbursement {485,7661 (486,7861 45,210 44,979 231 Tax (00261 Personal Services 64,052 64,061 1 Supplies 11,051 10,804 1 258 Maintenance 6o 27 23 i Services 4,637 4,594 43 79,810 79,466 1 323 Municipal Court Clerks 100261 Personal Services 361,365 361,365 Supplies 34,067 33,850 52 155 Services 18,173 17,053 308 612 1 413,605 412,288 370 967 , 108 Comprehensive Annual Financial Report I i - 7y x In 32xIO • U CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES • BUDGET AND ACTUAL (CONTINUED) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance- , Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorabtel I Internal Audit 100271 Personal Services ! 63.446 f 63,448 1 1 Supplies 2,615 2,247 163 215 Services 3,737 3,551 186 Proprietary Funds Reimbursement 144,9741 144,974I 24,824 24,270 153 401 Budget 100281 I Personal Services 114,139 113,921 218 Supplies 3,314 3,314 Maintenance 22,520 22,480 40 t Services 871 614 57 Proprietary Funds Reimbursement (82,9451 1P2,8451 87,799 57,464 0 315 I Finance Administration Misc. 1020M1 Personal Services 103 103 services 166,109 150,754 16,043 312 Alministrative Transfer 537.578 837,676 Sundry 228,502 216,515 12,984 3 Fixed Assets 1,725 1,614 111 Proprietary Funds Reimbursement (71,1731 171,173) 862,842 834,296 28,027 529 Accounting Mist, (024M1 Personal Services 105,821 105,826 1 Services 159,608 124,747 34,848 13 Insurance 151,657 161,657 Sundry 161,281 161,981 5,023 257 Proprietary Funds Reimbursement 193,664) 193,6641 490,669 450,541 39,671 211 Inspection (00141 Personal Services 517,258 517,205 61 Supplies 15,850 15,772 78 Q Maintenance 5,114 5,221 $93 Services 44,881 39,828 5,145 108 j Sundry 100 100 584,201 577,826 6,145 1,230 I • 109. Comprehensive Annual Financial Report - - - ~5 x~ 32x d o CITY OF DENTON, TEXAS GENE9AL FUND • SCHEDULE OF EXPENDITURES - BUDGET ANO ACTUAL (CONTINUEDI FOR THE FISCAL YEAR ENDCO SEPTEMBER 30, 1997 variance. I!1 Actual Actual Favorable I r Budget Expenditures Encumbrances IUnfavorablel II Planning and Development 100151 Personal Services 1 621,551 1 521,470 1 1 81 Supplies 8,952 8,390 562 Maintenance 376 65 320 Services 58,847 65,139 1,600 11 Sundry 900 695 6 Proprietary Funds Reimbursement 110,802) 110,8021 677,623 575,144 1,600 979 Planning and Development M se. 1015M) 1 Sundry 246,493 243,588 1,950 955 1 Propretary Funds Reimbursement 140,4291 140,4291 - 208,084 203,159 1,950 955 Main Street Program 100161 Personal Services 83,255 83,179 7e Supplies 3,879 3,279 512 88 Services (6,4641 18,247) 991 792 90,670 78,211 1,503 956 Total General Government 110,460,373 $10,087,267 1 273,273 4 99,833 s~ e o • I; .110. i Comprehensive Annual financial Repoil - i Y" - 1.5 x 10 32x10 1 e ' ~ N9SMIi':d 0 M1 CITY OF DENTON, TEXAS-_ I GENERAL FUND • SCHEDULE OF EXPENDITURES • BUDGET AND ACTUAL ICONTINUEDI FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable; PUBLIC SAFETY: Police 100401 Personal Services 1 6,999,651 / 6,9S9,J26 1 1 40,325 Supplies 233,938 229,949 3,804 185 Maintenance 203,704 192,251 822 10,631 Services 421,692 419,583 1,176 833 Sundry 111,611 110,818 853 Fixed Assets 19,423 10,236 9,187 7,989,979 7,922,163 5,802 82,014 Fire Administration !00501 Personal Services 678,653 678,553 Supplies 27,215 21J50 1i 5C Maintenance 37,943 37,625 114 4 Services 164,860 164,800 78 2 Sundry 100 687 13 Fixed Assets 3,716 3,718 i 913,007 912,731 207 69 , Fire Operations 100511 Personal Services 4,517,408 4,517,408 Supplies 104,721 95,553 9,016 153 Maintenance 53,499 51,611 1,888 Services 139,724 139,508 214 2 fixed Assets 23,229 22,948 _ 273 8 , 11 4,821,028 11,390 163 Fire Prevention 100521 • Personal Services 239,485 23f,484 1 Supplies 7,278 7,277 1 Maintenance 3,934 3,934 Services 21,568 21,357 210 1 272,265 272,052 210 3 0 I ~ 4 ~ • 111 • Comprehanslve Annual Financlel Report ff 0 o -CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES • BUDGET AND ACTUAL (CONTINUEDI FOR THE FISCAL YEAR ENDED ti£PTEMBER 30, 1997 Variance. Actual Actuat Favorable Budget Expenditures Encumbrances (Unfavorable) Emergency Medical Services (0053) Personal Services 1 772,991 1 772,968 1 11, 3 Supplies 131,231 121,112 10,119 Maintenance 35,471 35,471 services 135,324 135,323 1 Fixed Assets 2,925 2,922 3_ 1,077,942 1,067,818 10,119 7 Told Pu6Nc Safil 116,091,774 115,001,790 1 27,728 1 62,266 PUBLIC WORKS, Engineering (00101 Personal Services 1 1,013,211 a 1,013,210 1 1 1 Supplies 26,770 26,275 473 22 Mamtenance 11,008 8,044 2,959 6 Services 36,137 35,970 169 8 Viied Assets 4,719 673 4,078 68 Proprietary Funds Reimbursement 153,2571 153,2571 , 1,038,588 1,030,815 7,669 104 Transportation fogineering (00121 Personal Services 292,026 266,534 5,492 { Sr,pplics 11,164 10,651 286 27 Maintenance 78,390 75,810 2,382 198 Services 56,379 55,271 1,105 3 Fixed Assets 50,340 31,908 18,377 55 483,299 460,374 22,160 5,775 Airport 100191 ` Personal Serrwices 117,657 117,657 Supplies 3,314 3,311 3 { Maintenance 4,060 3,627 447 6 Scrnres 13,412 13,460 12 ` Sundry 1,100 1,069 31 Frved Assets 8.380 6,343 37 k, 146,003 145,487 459 77 II 112 • Comprehensive Annual Financial Report I i 25x~Q 32 x ❑ • i xaarsa r ! O -CITY OF DENTON, TEXAS GENERAL FUND • SCHEDULE OF EXPENDITURES I BUDGET AND ACTUAL ICONTINUEO) FOR THE FISCAL YEAR ENDED SEOTEMSER 30, 1997 I Variance- Actual Actual Favorable Budget Expenditures Encumbrances IUnWorable) { Street Patching (0031) I Personal Services / 701,002 / 701,002 t Supplies 60,581 59,932 649 Maintenance 1,242,408 1,017,523 224,882 1 Services 114,927 114,557 37C I Fixed Assets 48,974 44,179 4,794 1 2,167,890 1,937,193 230,325 372 Street SweepinglDrain3ge !08101 Personal Services 223,642 223,641 1 Supplies 23,073 22,967 108 I Maintenance 69,698 69,597 100 1 1 Services 118,436 145,424 2,272 740 Fixed Assets 35,790 35,6?0 100 500,639 497,319 2,478 842 Street Lighting 10034) - Services 425,400 426,394 8 425,400 425,394 6 Ervironmental Health Services 100381 Personal Services 158,399 156.398 1 1J Supplies 4,664 4,374 190 Maintenance 200 175 25 Services 5,469 5,394 75 168,632 168,341 291 Animal Comrol 10039) Personal Services 284,221 284,226 1 Supplies 21,691 21,685 6 1 Maintenance 9,476 9,411 65 Services 35,107 34,974 60 73 r 350,501 350,296 130 111 ToWWc Works 1 6.280,463 1 6,015,199 1 263,211 4 2,053 • 113 Comprehensive Annual Flnanclat Pepoet 32XIO A 4116-26314 0 CITY OF DENTON, TEXAS GENERAL FU NO • SCHEDULE OF EXPENDITURES • BUDGET AND ACTUAL (CONCLUDED) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Variance- i , Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) PARRS 8 RFt:AfArIDM. Parks & Recreation Administration 100601 Personal Services 1 228,639 4 228,638 4 1 1 Supplies 17,379 17,378 1 Maintenance 575 574 1 Services 206,397 205,348 48 1 Sundry 629 618 I 452,519 452,466 48 5 Recreation 100621 Personal Services 906,824 906,794 30 Supplies 51,543 58.699 604 2,040 Maintenance 16,550 14,974 762 824 Services 186,306 184,190 498 1,818 Fixed Assets 22,982 19,090 2,692 1,194,205 1,183,747 6,946 4,512 Park Maintenance 10063) Personal Services 951,770 9$1,731 39 Supplies 97,440 82,664 14,775 1 Maintenance 149,288 131,784 17,436 68 ,r Services 203,295 196,032 7,176 67 1 Sundry 15D 150 Fixed Assets 106,349 88,147 19,236 365 1,608,289 1,448,958 $8,623 708 rotNParks b Recreation 4 3,155,013 4 3,085,171 4 64,817 4 5,225 4 GRAND TOTAL GENERAL FUND 133,993,112 133,199,427 1 628,829 1 174,858 1 1t4- Comprabansiva Annual Flnanclol Repot f w Ater n x 1 32 x 0 ' 0 CITY OF DENTON, TEXAS 1 I 1 FEDERAL ENERGY REGULATORY COMMISSION SUPPLEMENTAL INFORMATION l ELECTRIC UTILITY SCHEDULE OF ASSETS, LIABILITIES AND CAPITAL f ELECTRIC UTILITY SCHEDULE OF NET INCOME ELECTRIC UTILITY SCHEDULE OF BUDGET AND ACTUAL EXPENSES FOR ELECTRIC OPERATING FUND FOR THE FISCAL YEAR ENDED SFPTEMBER 30, 1997 (UNAUDITED) The schedules presented here reflect the Federal Encrgy Regulatory Commission (FERC) format and basis of accounting. The FERC basis of accounting Is not GAAP, This FERC financial presentation reflects information for the Electric Operating Fund only. 1 I li • 116 3 CompnhMvlrrr Annul FlnmdN Report 25x10 32x ❑ 0 o<e.nrea ' 0 h CITY OF DENTON, TEXAS ELECTRIC UTILITY SCHEDULE OF ASSETS, LIABILITIES AND CAPITAL • (UNAUDITED) ELECTRIC OPERATING FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 ASSETS AND OTHER DE91TS September 30, 1997 September 30, 1996 Elactrk Utility Plant Electric utility plant and adjustments 1107,813,363 $103,961,265 Construction work In progress 2,342,765 1,139,998 Less Accumulated provlslon f r II deWeciation, amortization and depletion 165,860,678? 162,650,2601 Net Elactrk Utility Plant 44,295,440 42,451,001 Other Property and Investments Investment in associated enterprises 3,781,784 4,831,784 Total Other Property and Investments 3,781,784 4,831,784 Current and Accrued Assets Cash, working funds and lfwwments 62,769,198 49,046,820 Notes and other receivables 1,092,662 462,454 Customer accounts receivables 14,000,996 12,843,240 Less, Provision for uncollfctble accounts 17,027,012; (6,766,266) Prepsymeal s 9,555 Fuel stock and expc,,ses undistributed 697,707 916,784 Accmd utility revenues 4,569,834 3,710,320 Miscellaneous tuner. and accrued assets 675,761 1,163,067 Total Currant wO Accrued Assets 66,989,035 81,385,974 Deferred Olutl Unamortizecdebt exranses 237,967 258,690 Told Dalerred Debits 237,987 258,690 Total Assets and Other Debits 1116,284,227 $106,927,449 I • • 116 CtmmprMensiva Annual Flnandal Report ! 25,1.10 32x10 Oman" o { r.iCa A9W I ti1TY OF DENTON, TEXAS I LIABILITIES AND OTHER CREDITS September 30, 1997 September 30, 1998 I Preprietry Capital Miscellaneous capital 1 423,939 1 463,017 Retained earrogs 91,108,149 83,277,956 Total Proprlatary Capltal 91,532,088 83,742,973 Lon¢Tarm Debt Bonds 18,205,914 20,168,711 (Lessl unamortitation discount on long-term debt 1114,0001- (123,7091 Total Long-term Debt 18,091,914 20,033,002 Currant and Accrued Liabilities I Accounts payable 3,SOO,833 2,610,721 Customer deposits 1,186,424 1,168,167 Irlereit accrued 333,680 374,868 j Miscellaneous current and accrued liabilities 639,288 _ 1,007,718 Total Currant and Accrued Llabl6tles 6,660,226 6,161,474 Total Lhbhlties and Other Credits 1116,284,227 9108,927,449 I I J%O f 117 Comprehenslva Annual Flnandol Report ?5x10 32XIO w. A as~riawe :max CITY OF DENTON. TEXAS I I I II l~ I f i~ Comp ahonalva Annual M"al Report I I 25~C.7 32x1Q • o O CITY OF DENTON• TEXAS j~ I ELECTRIC UTILITY SCHEDULE OF NET INCOME • (UNAUDITED) { ELECTRIC OPERATING FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 I Year Ended [4 September 30, 1997 September 30, 1996 ` ELECTRIC UTILITY OPERATING REVENUES $66,632,657 $63,048,226 Operation expenses 51,024,366 49,862,117 Maintenance expenses 2,316,229 3,070,753 Depreciation expenses 3,261,309 3,087,824 Taxes and tax equivalents 4,914,705 2,964,197 Total Electric Ud9ty Operating Expenses 61,616,609 58,984,891 I Eleclrtc Utility Operating Income 5,115,948 4,061,336 Other electric income 3,856,109 4,340,955 Other electric deductions 1906,7461 1878,9661 Total Other Income 2,949,363 3,461,989 Electric Utiky Income - 8,055,3', 1 7,623,324 j Income deductions from Interest on long-term debt 1,052,068 1,176,773 Other income deductions 36,660 63171 Total Income Deductions 1,087,726 1,269,744 Not Income 1 6,977,685 1 6,263,580 • 119 Comprehensive Annual Flnervold Report 2 ❑ 32X10 0 0 F.LRk,q CITY OF DENTON. TEXAS ELECTRIC UTILITY SCHEDULE OF BUDGET AND ACTUAL EXPENSES • tUNAUDITEDI ELECTRIC OPERATING FUND FOR THE PERIOD ENDED SEPTEMBER 30, 1997 plant Operation Expenses Expenses ELECTRIC PLANT IN SERVICE: Production plant 1 67,604 1 Transmission plant 60,907 Distribution plant 3,800,783 General plant 425,305 Total McWo Plant 4,354,599 POWER PRODUCTION EXPEf7SES: Steam power generation 1,663,458 Fuel 6,766,545 Hydraulic power generation 205,257 Purchased power 38,974,024 Total Production Expenses 47,809,284 TRANSMISSION EXPENSES 1,903,340 i DISTRIBUTION EXPENSES 2,796,938 CUSTOMER ACCOUNTS EXPENSES' 1,212,652 CUSTOMER SERVICE A INFORMATIONAL EXPENSES 270,391 ADMINISTRATIVE i GENERAL EXPENSES' 3,208,966 PAYMENT IN LIEU Of TAXES IROI) 4,914 705 NONOP?-UITNO EXPENSES: Print Ial payments-bonds 1,950,797 Interest on long-term debt 1,062,822 Interest, customer deposits and outer 35,660 h Donations 234,620 . Non-utility operations 739,214 Total Nonoperadng Expenses 4,023,073 TOTAL EXPENSES 14,354,599 168,145,349 I i ' includes administrative transfer to general government 120 Comprobsnshve Annual Flnanelat Report I I T 75 K 10 32XIII i s • a CITY OF DENTON, TEXAS I variance- Maintenance Total Total Favorable ' Expenses Expenses Budget IUnlavorable) f 11, 61,604 6 45,000 1 122,604) 60,907 118,650 57,743 3,800,783 3,606,343 1194,4401 + 425,305 695,136 269,831 4,353,599 4,465,129 110,530 I 789,918 2,553,376 3,437,760 784,374 4 6,768,545 8,310,924 1,544,379 l 41,092 246,349 236,691 (9,458) 38,974,024 37,865,750 11,108,274) 831,010 48,640,294 49,851,315 1,211,021 25,648 1,928,988 2,093,464 164,496 1,459,136 4,256,074 4,670,743 314,669 1,212,652 1,233,793 21,141 278,391 301,807 23,416 105,099 3,312,065 3,783,496 471,431 I 4,914,705 4,914,705 1,950,797 1,950,797 1,062, 822 1,062,817 15) 35,660 45,000 9,340 234,520 107,900 1128,820) 739,274 844,897 105,623 • 4,023,073 4,011,411 (1 1,F1,41 l 12,420,893 172,920,841 !75,225,883 12,306,042 • ~ ~ d O I 121• Corr4w0enslvs Annual FN+anclsl Report a~ n 32x10 s o I -CITY OF DENTON. TEXAS I E ~I I • 122 Compohwsiro Annul FNantld Ropat (l i 25 x 10 32X 1 'i{57®if 0 r l I STATISTICAL SECTION {UNAUDITED) I r~ 1 I 127• r, x e ANN" 0 l •n."Ws _CITY OF DENTON, TEXAS { GENERAL GOVERNMENT EXPENDITURES f BY FUNCTION 41) LAST TEN FISCAL YEARS ff l~ Fiscal General Public Public Year Goverwient Safety Works 1988 1 8,468,435 4 81316,904 14,040,489 I ' 1989 10,842,100 9,150,314 4,367,287 1990 10,470,382 10,184,816 4,228,457 1991 9,867,659 10,982,759 4,612,406 1992 10,678.876 11,497,189 4,318,088 `i 1993 10,733,969 11165718D9 4,722,645 I 1994 !,773,398 11,917,580 4,123,627 k 1995 10,074, 911 12,604,521 4,374,433 1996 11,610,932 13,951,797 4,396,384 1997 11,989,016 15,379,251 6,040,465 (1) Includes General, Special Revr •r;•, and Debt Service Funds i . I 124 Comprehensive Annual Flnanclsl Rspon I I I ?5x ❑ 32XIO I CITY OF DENTON, TEXAS I I T01a 1 Parks and Recreation Capitol Outlay Debt Service Total 1 12,306,053 1 441,593 14,164,783 421,747,257 2,397,948 403,633 5,508,631 32,669,813 i 2,645,692 574,721 4,586,442 32,690,610 2,649,067 234,782 4,819,773 33,165,448 2,814,673 466,650 4,415,289 34,309,023 2,750,109 428,22 4,509 919 34,902,959 2,868,169 640,183 4,812,285 33,041,142 3,017,813 1,123 650 a ra'J,888 30082,222 3,344,822 1,069,359 4,960,963 39,334,257 ` 3,697,577 1,187,069 4,906,023 42,200,006 1 t j e ! ~ o • • u6 • Cornprohanalre Annual Manclal Report I f 25 32 x D 0 GTY OF DENTON, TEXAS_ GENERAL REVENUES BY SOURCE III ' LAST TEN FISCAL YEARS Licensee Fiscal and Franchise Fines and Year Taxes Permits Fees Forfeitures 1988 117,394,835 1211,999 $ 650,879 11,144,911 Mill 18,574,210 222,768 695,142 1,232,768 1990 18,996,832 261,080 $77,168 1,257,651 1991 19,766,479 243,070 614,940 985,532 1992 19,790,132 293,621 760,487 1,037,711 1993 20,932,369 358,319 722,861 1,313,167 1994 21,758,706 418,693 5.219,164 1,195,427 1995 22,099,228 388,214 6,112,849 1,652,840 1996 22,687,299 672,676 8,067,244 1,574,050 1997 24,571,249 521,642 6,692,694 1,849,082 111 Includes General, Special Revenue and Debi Service Funds I k I 1 126. Comprehensive Annual Financial Rol 10 X s o 'n CITY OF DENTON, TEXAS 1 I I Table 2 i Inter. Fees for Interest Governmental Miscellaneous Services Revenue Revenue Revenue Total 1 11,312,662 1600,178 11,179,092 11,006,108 123,600,655 1,298,206 808,280 1,681,445 2,073,450 26,486,255 1,297,881 748,200 1,460,669 1,465,608 16,105,107 1,267,836 643,722 1,244,634 995,253 26,772,466 1,405,187 688,152 1,371,442 111,836 26,008,574 t 1,433.620 601,958 2,100,947 1,097,775 28,661,128 t 1,578.713 428,11 G3 1,634,115 1,008,893 33,440,034 1,747,684 737,282 2,719,958 1,295,034 36,713,125 1,848,307 813,429 3,375,210 2,332,969 39,167,184 2,101,049 744,612 3,273,674 1.102,438 40,756,640 Comprehensive Annual finsnelal Report I 2h x Icy 32XIO e CITY OF DENTON, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS j Fiscal Total Current Tax Percent of Levy Delinquent Tax Year Tax Levy I11 Collections Collection Collections 1968 112,199,455 111,741,034 98.30% 1313,375 1989 12,646,346 12,281,184 97,11 441,851 1990 13,167,415 12,719,235 95.80 336,907 1991 13,7161 13,343,005 91.28 203,087 1992 13,496,916 13,188,350 97.71 301,984 1 1993 13,732,609 13,451,202 9716 340,382 1994 14,023,943 13,513,826 98.60 194,761 1995 11,090,169 10,930,071 98.66 172,279 1998 11,078,657 10,953,058 9818 224,606 1997 11,465,710 11,316,204 98.70 160,366 111 Denton Central Appraisal Dsbict I f Ii 1 CcTprshnrolva Annusl Ananclal Ripon I 25 n Ia 32X10 0 CITY OF DENTON, TEXAS I t I Table 3 ' Outstanding Total Collections as Delinquent Taxes Total Tax a Percent of Outstanding - at a Percent of Collection Current Levy Delinquent Taxes Current Levy $12,054,409 ^9817% $1,064,131 8.73% ` 12,723,015 100,61 1,133,897 817 1 13,068,143 99.16 1,276,664 8.69 13,545,892 98.76 1,610,683 11.74 13,490,340 99.95 836,015 811 13,791,584 100,43 942,322 8.86 14,008,686 9990 912,342 6.61 11,102,355 100.21 845,352 7.64 11,177,862 100.91 722,256 6.52 11,476,570 100,10 723,406 611 . I , 129• CompshaWve Annual Manclel Report 3~ ~r, ILL 37x v Ohl" • a CITY OF DENTON, TEXAS I ` l ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Peal Property Personal Property mmlp ~ Fiscal Assessed Estimated Actuat Assessed Estimated Actual Year value Value Value Value 1598 x41,768,860,455 $1,764,308,963 1291,433,722 4292,353,014 1989 1,833,449,786 1,829,131,266 304,911,169 304,192,988 1990 1,776,614,895 1,768,819,125 382,386,866 360,798,7F6 1991 1,891,271,530 1,732,004,107 345,331,765 365,078,017 1992 1,830,243,815 1,845,917,473 321,060,675 324,147,691 `j 1993 1,559,265,561 1,676,490,434 332,456,607 336,129,192 III) 1994 1,533,929,030 1,548,726,334 326,667,239 328,384,012 1996 11698,657,980 1,e26,199,300 344,486,297 360,227,452 1996 1,649,535,236 1,672,452,535 370,223,523 375,367,130 f 1997 1,720,508,423 1,7d4,697,930 394,807,671 404,994,187 } Information provided by the Denton Central Appraisal Oistrict. Certified Appraisal Aoll. II -44 a I r f •130• Camp»henslve Annual Flnenclel Atpat _ i 32x s t o _ CITY OF DENTON, TEXAS I i Table 4 ' I Toul ~I I Ratio of Total Estimated Actual Assessed to Total Assessed Value Value Estimated Actual I 12,050,294,577 12,058,701,977 10012% 2,138,360,945 2,133,324,224 99,76% I 2,139,001, 501 2,129.615.882 99.66% 2,038,603,286 2,094,082,114 102.82% 11951,304,490 1,970,085,164 100.96% 11891,712,188 1,912,619,888 101.10% I 1,859,596,289 11676,109,348 10013% 1,943,044,277 1,975,426,762 10117% 2,019,768,769 2,041,819,765 101.39% I 2,116,313,994 2,169,892,097 102.68% I I •131• Comprahanslva Amnual ►Insncfal AsW "5A ❑ 32xill 0 CITY OF DENTON, TEXAS Tebl6 5 PROPERTY TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS j TAX RATE{ IPu 1100 of Assessed Valuation] i Fiscal school Year city 0111rict county Seta Total ` f 1911 09024 0.770 2254 00 1,5182 1989 0.1921 0.630 .2260 .00 1.6417 1090 0,8113 1065 2410 00 1,9243 1001 0.6561 1.229 2647 .00 2.1476 1992 0,6161 1,380 .2644 .00 2,3496 1993 07110 1,470 .1924 .00 2.4604 1094 0,7470 1650 .2094 ,00 7.6073 1916 0,6600 11277 .2600 100 23786 1098 0.5409 1,6520 .2784 .00 2,3717 1997 06214 1.8007 .2660 00 2.4660 TAX UVAII ' Fiscal school year City District County biota Total lost $12,112485 418,184,707 121,497,470 1 1 61,114,752 I 1010 12,646,346 20,009,313 22,945,164 58,100,603 I Iota 13, 147,411 26,007,760 24,114,3111 63,810661 I:I lost 13.711.332 21,076,176 27,113,048 60,701,166 I f 1902 13,496,016 29,677,616 21,910,065 11,105,480 1777 1993 13,732,600 33 28A,406 20,914,164 76,031,161 ! E 1094 14,023,943 13,652767 32,164,363 71,731,003 1995 11.090,160 32,661,131 71,134,101 76,06111 1006 11,011,66) 31,100617 77,176.113 .13443,211 log? 11,466,110 43.410 520 36,011.]16 00913,606 source, City of Denton and Denton County Tao ollicaa f ' li Values as of 5aoumhu 30 IfII 9 ' ~ f i1 it •172• ~ i • Compeahansir6 AnnuM FMencIN IlsDOr! D 32X 0 I ' ~I I CITY OF DENTON, TEXAS Table 0 I 1 SPECIAL ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS 1 Total Delinquent Outstanding Current Current Ratio of Assessments Current end Fiscal Assessment Assessments Conectfons to Cotlections Delinquent Year Due Collected Amount Due Adjustments Assessments ` 1989 490,711 $188,518 1989 1,765 188,753 1990 97,036 69,717 1991 48,246 41,471 1992 1,370 40,101 1993 33,072 7,029 1994 2,421 41608 1995 3,630 1,018 1 1996 1,078 tool I •133• I Comprahanslre Annual rinamclal ROOM 2 x. 32 x 71 • 0 CITY OF DENTON. TEXAS i Ih II RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS E Ending t Fiscal Assessed Value Gross i Year Population iin thousands} Bonded Debt 11) 1988 65,823 12,068,761 128,764,769 i 1919 68,011 2,133,324 30,770,309 11`090 88,270 ' 2,129,816 30,933,609 1991 66,470 2,094,082 28,131,339 1992 66,902 1,910,063 28,773,609 1993 67,422 1,912,819 30,971,048 (I 1994 68,650 1,675,109 33,240,605 1995 69,650 1,875,428 33,152,496 logo 70,450 2,041,819 38,884,478 1997 71,450 2,169,892 31,000,813 01 Excludes general obligation bonds pledged by solid waste revenues 1990 Census !i •134• Comprehanslve Mnus! Flnanclal Report 7.5 x ill 32x10 • 0 l CITY OF DENTON, TEXAS I I l j Table 7 I I Patio of Net Less Debt Service Bonged Debt to Net Bonded Debt IV Funds Net Bonded Debt Assessed Value Per Capita 11,912,928 126,861,831 1.31 409 1,132,060 29,638.249 1.39 449 t 722,478 30,211,033 1.42 456 II 309,526 17,821,833 113 419 344,335 18,429,174 1.44 415 322,644 30,B48,205 1.60 455 322,763 32,917,842 1.78 460 1 704,904 32,447,594 1.64 487 1 602,167 38,002,311 1176 611 604,760 36,496,053 118 511 1 I~ n 1 I I jV • 139 Comprehenslvs Annual Flnenolal Report - f~.! ~'WC~ 3x 01 e ' 0 CITY OF DENTON, TEXAS Table 8 COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 1997 Net Assessed Value 12,053,877,686 Plus Exempt Property Total 116,314,431 Total Assessed Value 12069.892,097 D,bt l l - No debt limit la mandated by law but the City does recogn,,e six percent as an economic iimlitticn 1 130,193,426 Amount of debt applicable to debt limit • Total general obligation bonded debt 124.791,730 Less general obligation bonds pledged by sanitation revenues 1430.8711 Certificates of obligation 12,839,954 37,000,813 r Less • Amount in debt service fund available for payment of principal 504,760 Tate Amc;;r.t M Debt Applicable to Debt Limit 36,496,053 Legal Debt Margin 1 9697,473 x f Ir . I , 4 ~ f f 1 r 1 • 138 Comprehensive Annual hianctat Report 11 111101111 all , a' y Y X' 10 3 2 X F] M r • " V 1,11Y OF DENTON. TEXAS I Table 9 I COMPUTATION OF DIRECT AND OVERLAPPING DEBT SEPTEMBER 30. 1997 Percentage Amount Net Debt Applicable to the Applicable to I Jurisdiction Outstanding City of Denton 11) City of Denton City of Denton $37,431,684 100.0% 1; 37 431,684 I Denton Independent School District 94,347,182 84.0 79,201.633 Denton LOWY 64,220,658 21.4 13,743,220 Total $130,428,537 I 11) The "Percentage Applicable to the City of Denton" Is based on the relative assessed values within the City of Denton, 137- Comprahansiva Annual Financial Pali .1` e,. 2 5 'k I 32 X O a xrW~at O CITY OF DENTON, TEXAS 1 Table 10 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES (1) LAST TEN FISCAL YEARS Ratio of Debt Service Fiscal Interest and Total Expenditures Year Principal Fiscal Charpu Total Debt Service Expenditures _(percent) lose 12,140,773 12,024.010 04,164,763 027,747,251 16.01% 1989 3,314,16! 1,194,464 6,608,631 32,669,1113 10.68 1990 2,263,092 2,323,360 4,586,441 32,690,510 1403 1091 2,714,668 2,105,105 4,819,773 33,165,468 14.53 1992 2,667,107 1,849,102 4,416,269 34,309,623 12.87 1993 2,646.056 1,963.861 4,609,919 34,802,959 1296 1094 3,067,565 1364,720 4,812,285 33,968.116 13.37 Me 3,0951656 1,491,032 4,686,888 36,762,222 12.62 1996 3,549,515 1,411,446 A,960,953 30.334,257 12.111 1097 3,631,417 1,373,606 4,906,023 42,200,006 11.63 of Ile Includes General, Special 9evsrma and Debt Service 11, s i , o • 138 • Co Wallenelve AnnuN Firianefal Papal Al A 75 32x s 0 CITY OF DENTON, TEXAS 1 I I I t ZIP/* d~ • II ~ s i •139• f Comprahmolva Annual FinMeial Report l ' • o CITY OF DENTON, TEXAS I RE"VENUE BOND DEBT SERVICE COVERAGE LAST TEN FISCAL YEARS Net Revenue Fiscal Operating Direct Operating Available for Debt Year Revenue Expenses 111 Servlce l Utility System 1988 $73,383,556 $61,203,158 t12,180,398 1989 77,365,137 60,247,323 17,117,814 1990 78,124,599 66,569,160 21,555,439 1991 60,469,479 58,731,232 23,738,247 1992 82,214,582 60,613,282 21,601,300 ` 1993 85,305,207 63,733,847 21,571,360 1994 92,835,414 64,658,746 28,178,668 1995 92,501,469 72,133,031 20,368,436 1996 95,370,824 74,322,793 21,048,031 1997 97,333,766 72,669,955 24,663,811 I ~ 111 Excluding Depreciation } III s I t, e ~ o e I •140• Comprahanslvs Annual Finan*1 Rapai -kM..~ ?Sx~Q 32XIII WMM EM-19 • o ! CITY OF DENTON, TEXAS l ' Table 11 III I ` Debt Service Reduirements I Principal Interest Total Coverage 12,115,000 13.338,428 1 5,453,428 2.23 2,250,000 3,388,817 5,638,817 3.04 2,430,000 4,274,233 6,704,233 3.22 2,900,000 4,545,856 7,445,856 3.19 3,505,000 4,250,138 1,755,138 2.79 I 3,535.000 4,305,013 7,840,073 2.75 4,015,000 3,577,695 7,593,595 3.71 4,295,000 3,249,141 7,544,141 2.70 4,385,000 2,9r2,911 7,337,911 2.87 I 5,380,000 5,2'0,014 10,660,014 2 31 0 ~ 1 01~ 1 i 141 Comprehensive Annw1 FlnanclW Repon- i q 32x10 • 0 CITY OF DENTON, TEXAS l l PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Commercial Construction 111 Fiscal Property Value Number Year hn thousands) of Units Value 1988 12,056, 761 113 $21.927,481 1989 2,133,324 150 31,375,513 1990 2,129,615 134 6,427,910 1991 2,094,082 70 6,149,572 1992 1,970,065 182 40,336,281 1993 1,912,619 211 30,82OM4 i 1994 1,976,109 189 30,316,353 1995 1,975,426 179 14,560,423 1996 2,047,819 199 58,729,640 1997 2,169,892 167 41,085,727 I 111 City of Denton Planning and Development Department Estimate f r 121 Clinton Chamber of Commerce Estimate throuoh 1994 I Bank Statement of Condition 1995-97 ` (3) Bank deposits for Bank One of Texas not available at time of pubGCation f (4) Bank deposits for Bank One of Texas and NationsBank not available at time of publication • 1 142 -{I ComprahHrslva Annual Flnat id Report l Y ~hr~I.J 32x O e saG.~, ' I t CITY Of DENTON. TEXAS I I Table 12 I 1 Residential Construction 111 I Bank 121 Number Deposits of Units Value Gn thousands) 304 124,577,039 $ 584,171 258 21,241,087 565,629 316 20,249,571 714,892 167 12,414,459 565,630 e 189 22,197,221 663,882 I 311 28,285,720 671,821 398 33,793,717 619,211131 492 36,330,81.' 728,100131 460 35,586,747 843,527131 I 784 50,384,468 1,314,771 (41 I 1 i •143• Comprahenslve Annust Financial Report 25 10 32x10 s 0 i CITY OF DENTON, TEXAS { I I' r I, I I' I . s i • 144 . Comprahansiva Annual Financial Report I 25x~Q 32x[ IIIIIIIIIIII[am s o I CITY OF DENTON, TEXAS 1 k Table 13 I " PRINCIPAL TAXPAYERS SEPTEMBER 30, 1997 Percentage of I 1996 Total Taxable f Taxable Assessed Assessed Name of Taxpayer Kind of Property Valuation ' Valuation Peterbilt Motors Diesel Trucks $ 46,228,753 2.130% General Telephone Telephone Utility 38,543,031 1.776% NotamilifemarklEPIC DevJ Hospital and 31,353,267 1.445% Epic Prop./Denton Regional Professional Building Medical Center Tetra Pak Packaging 30,532,549 1.407% Manufacturing Texas Instruments Electronic Manufacturing 23,928,459 1.103% I Golden Triangle Mall Shopping Mall 17,944,277 0.827% Andrew Corporation Electronic Equipment 16,964,202 0.782% Safety Kleen Corp. Recycled Industrial 12,664,011 0.684% Solvents Acme Brick Brick Manufacturing 12,324,665 0.588% Albertsons, Inc. Grocery Stores and 11,476,094 0.529% Warehouse _ $241,958,318 11.161% 1 Note: Total assessed valuation as of September 30, 1997 was $2,169,692,097 II , Source: Demon Central Appraisal District Reported Property Value, 1996 I 145 Comprarm:lve Annual Flnanclal Report 25 10 32X10 s 0 M CITY OF DENTON, TEXAS 1 I I I ' SCHEDULE OF INSURANCE IN FORCE SEPTEMBER 30, 1997 The City of Denton is largely self-insured. This includes but Is not limited to the first $50,000 of each property loss and $10,000 of each vehicle loss. However, liability policies are purchased for airport, paramedic/EMT, recreation program and employee dishonesty exposures. Exposures that are not retained r by the City are covered by various insurance companies including: Expiration Insurance Company Premium Policy No. Date 1. Arkwright $197,084 08020140 10101198 2, Associated Aviation Underwriters 4,950 AL1208561 09130198 I r 3. Western World Insurance Company 5,280 NGLOO888 01131198 1 i 4. Western Heritage insurance Company 1,154 SCP.0255351 08123198 E. Western Heritage Insurance Company 1,459 SCP-0247334 09107198 8. Empire Indemnity Insurance Company 27,945 CL442839 07117198 { I s fJ s i J~o I • 146 - Compre3reneive AnnuY flnenciel Report 25K10 32x • C I CITY OF DENTON, TEXAS 1 i Table 14 t II i C i Amount of I Coverage Limit All Risk Coverage $252,001,000 (including boiler/machinery, commercial crime) 1 Airport and Hanger Keepers Liability 5,000,000 Ambulance- Prof essiona Liability 500,000 I Recreation After School Action Program . MILK 1,000,000 Recreation After School Action Program • Deoia 1,000,000 Public Officials Liability 11000,000 • • I ~ O • -147 - Comprehenslw Annual Finenotal Repot 25x~C7 32x10 o 6 I I CITY OF DENTON, TEXAS I i l DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS j i Per Capita Fiscal Year Population 111 income 11) Averago Age 1988 65,623 9,750 271 1989 66,011 12,013 28.2 1990 66,270 • 12,013 • 30.7 ' 1991 66,470 12,013 30.7 1992 66,9x2 12,013 30.7 1993 67,422 12,013 30.7 i 1994 68,650 12,013 301 1995 69,550 12,013 30.7 1996 70,450 12,013 30.7 1997 71,450 12,013 30.7 11) Flanning and Community Development Department's Estimate t (2) Denton Independent School District Estimate 731 Texas Wo'klorce Commission Estimate • Denton County i ' 1990 Census I, s~ I s ~ o • I i 148 • Cor-Wahansiva Annual Financial Raport } 2s 32XId 0 i ` CITY OF DENTON, TEXAS I I ~ { Table 15 1 ' i I Education Level in Public School Unemployment School Year 10 1 Ervolimeni 121 Pate 131 15.8 10,180 6.2 I 15.8 10,275 715 15.8 10,696 5.4 15,6 10,960 7.5 15.6 11,233 7.7 e 15.6 11,650 61 F 1611 11,800 6.0 1 16.8 12,100 4,9 15.8 12,512 3.6 15.8 12,777 2.1 i I e ~ o s i .149. - Comprahanslva Annual Financial Report ~5~~ 32 x~d 0 CITY OF DENTON, TEXAS Table ! 8 MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 1997 Form of Government Councit•Manager Area 55.18 square miles Date of Incorporation September 26, 1866 Miles of Streets 260 Number of Street Lights 6,870 Fire Protection: Number of stations 8 Number of firemen and officers (exclusive of volunteer firemen) 104 Police Protection; Number of stations 1 Number of policemen and officers 109 Municipal Ftectric Department: Number of customers 32,685 Annual electric production 938,686,000 KWH Average monthly consumption 16,181,379 KWH Mites of electric line 557.9 miles Municipal Water Department: Number of Customers 17,287 Annual water production 4,688,292,000 gallons Average monthly consumpt sn 384,204,535 gallons Miles of water main 339 miles I f I Municipal Wastewater Department. Number of customers 17,271 E Miles of line sewer 344.0 miles Annual wastewater discharge 4,700,694,000 gallonslyear guildirg Permits Issued 667 Recreation and Culture: Number of parks 17 with 726 acres Number of bbrari!9 2 Library items in circufstion 673,094 'Employees IAP Funds): Exempt 177 Nonexempt W Told 897 ` ~ d • WI, ' Does not include seasonal employees. • 160 Comprahenti Annual Financial Repart 10 32xiC]