HomeMy WebLinkAbout123105 Comprehensive Annual Financial ReportCOMPREHENSIVE
ANNUAL FINANCIAL REPORT
of the
CITY OF WEST UNIVERSITY
PLACE, TExAs
Year Ended
December 31, 2005
Officials Issuing Report:
Michael Ross
City Manager
Walter Thomas
Finance Director
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' CITY OF WEST UNIVERSITY PLACE, TEXAS
TABLE OF CONTENTS
December 31, 2005
Page
t INTRODUCTORY SECTION
Letter of Transmittal 3
' Organizational Chart 7
Certificate of Achievement for Excellence in Financial Reporting 8
Principal Officials 9
FINANCIAL SECTION
Independent Auditors' Report
Management's Discussion and Analysis
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Assets
Statement of Activities
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet-Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
Proprietary Funds Financial Statements
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Statement of Cash Flows
:Votes to Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual:
General Fund
Schedule of Funding Progress-Texas Municipal Retirement System
COMBINING STATEMENTS AND SCHEDULES
Schedule of Revenues, Expenditures, and Changes in Fund Balances-
Budget and Actual:
Debt Servce Fund
Combining Balance Sheet-Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance-Nonmajor Governmental Funds
13
17
29
30
32
34
37
38
42
44
49
69
71
75
78
80
CITY OF WEST UNIVERSITY PLACE, TEXAS
TABLE OF CONTENTS
December 31, 2005
Paee
Schedule of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual:
Special Revenue:
Parks 82
Senior Activity 83
Court Technology 84
METRO Grant 85
Combining Balance Sheet-Internal Service Funds 88
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance-Intemal Service Funds 89
Combining Statement of Cash Flows-Internal Service Funds 90
STATISTICAL SECTION
Net Assets by Component- Last Three Years
93
Changes in Net Assets - Last Three Years
94
Tax Revenues by Source, Governmental Activities - Last Three Years (accrual basis)
97
Fund Balances, Governmental Funds- Last Ten Years
98
Changes in Fund Balance, Governmental Funds - Last Ten Years
100
Tax Revenues by Source, Governmental Activities - Last Ten Years ( modified accrual
basis)
102
Assessed Value and Actual Value of Taxable Property - Last Ten Years
104
Property Tax Rates - Direct and Overlapping Governments - Last Ten Years
106
Principal Property Taxpayers - Current Year and Three Years Ago
109
Property Tax Levies and Collections - Last Ten Years
110
Ratios of Outstanding Debt by Type - Last Three Years
112
Ratio of Net Bonded Debt to Assessed Value, Net Bonded Debt Per Capita, and Assessed
and Estimated Actual Value of Taxable Property - Last Ten Years
114
Direct and Overlapping Governmental Activities Debt
116
Legal Debt Margin Information- Last Three Years
117
Pledged-Revenue Coverage -Last Ten Years
118
Demographic and Economic Statistics
120
Principal Employers - Current Year
121
Full-Time Equivalent City Government Employees by Function/Program - Last Ten
Years
122
Operating Indicators by Function/Program - Last Three Years
123
Capital Asset Statistics by Function/Program -Last Three Years
124
INTRODUCTORY SECTION
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0 City of West University Place
A Neighborhood City
is RecWled Paver
May 15, 2006
To the Citizens of the City of West
University Place:
The Comprehensive Annual Financial Report of the City of West University Place (the "City") for the
fiscal year ended December 31, 2005 is hereby submitted. Responsibility for both the accuracy of the
data, and completeness and fairness of the presentation, including all disclosures, rests with the City.
To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are
reported in a manner designed to present fairly the financial position, results of operations and cash
flows of the various funds of the City. All disclosures necessary to enable the reader to gain an
understanding of the City's financial activities have been included.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of
internal accounting controls. These controls are designed to provide reasonable, but not absolute,
assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, and
the reliability of financial records for preparing financial statements and maintaining accountability for
assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments
by management. We believe that the City's current system of internal controls adequately safeguards
assets and provides reasonable assurance of proper recording of financial transactions.
As required by the City's charter, the financial statements have been audited by Sandersen, Knox and
Belt, L.L.P., a firm of certified public accountants. The goal of the independent audit was to provide
reasonable assurances that the financial statements of the City of West University Place for the fiscal
year ended December 31, 2005, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor concluded, based
upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of
West University Place's financial statements for fiscal year ended December 31, 2005, are presented
in conformity with generally accepted accounting principles (GAAP).
' The Comprehensive Annual Financial Report is presented in three sections: introductory, financial and
statistical. The introductory section includes this transmittal letter and the City's organizational chart.
The financial section includes auditor's report on the financial statements, a narrative introduction,
overview and analysis required by GAAP in the form of the Management's Discussion and Analysis
(MD&A), the basic financial statements, fund financial statements, and combining and individual
financial statements. This letter of transmittal is designed to complement the MD&A and should be read
in conjunction with it. The City's MD&A can be found immediately following the report of the
' independent auditors. The statistical section includes selected unaudited financial and demographic
information generally presented on a multi-year basis.
' 3800 University Boulevard • West University Place, Texas 77005-2899 • 713.668.4441 • www.westu.org
PROFILE OF THE GOVERNMENT
The City was incorporated in 1924 and became a Texas Home-Rule City in 1940. West University
Place operates under the Council-Manager form of municipal government. The mayor and council are
responsible for passing ordinances, adopting the budget, appointing board and committee members,
and hiring the City Manager. The City Manager is responsible for carrying out the policies and
ordinances of the mayor and council, overseeing the day-to-day operations of the City, and appointing
department heads. The mayor and council are elected on an at large, non-partisan basis. The mayor
and council members are elected for two-year terms.
The City provides a full range of municipal services. These services include police and fire protection,
municipal court, streets, drainage, leisure services, water and sewer, solid waste collection and
disposal, community development, and general administrative services. Based upon the criterion set
forth in generally accepted accounting principles, the following organizations are includable within the
City's reporting entity:
Entit Method of Inclusion
Friends of West University Place Parks Blended
ECONOMIC CONDITION AND OUTLOOK
The Citv of West University Place, Texas encompasses a 1.9 square mile area located a few blocks
south of U.S. Highway 59 (the "Southwest Freeway") and approximately five miles from downtown
Houston, Texas. The City is an integral part of the Houston metropolitan area and is completely
surrounded by the Cities of Houston, Bellaire and Southside Place. The City is primarily a residential
area whose approximately 14,211 inhabitants are employed throughout the Houston urban area. Rice
University and the Texas Medical Center complex are located about one mile east of the city limits in
the City of Houston.
There is almost no vacant and/or undeveloped land in West University Place, so construction generally
involves rebuilding and remodeling. In the mid-1980s, building activity took off at a blistering pace.
Property values soared as a result. Assessed value of property in the City rose from $768 million in
1988 to over $2.9 billion in 2005. to 2005, the City gained over $51.3 million in increased property
values from new construction.
The economic condition of the entire Houston area has been steadily improving since the recession
that halted growth in the late 1980s. The economy is much more diverse so it will be less likely to
suffer wild swings that were the hallmark of the past. The collapse of Enron, the merger of Compaq
with Hewlett Packard and Continental Airlines' continued woes all have challenged the resiliency of
the Houston area economy. These events slowed growth, but the economy has proved stable. The
City of West University Place's stability and growth is the result of a trend for suburban families to
move closer to work. The City's low crime rate and hometown appeal has attracted many of these
families. These factors have contributed and continue to contribute to the growth in property values in
West University Place.
For the Future In August 1995, City staff began meeting with a committee of citizens with the
purpose of determining a means to finance replacement of the City's aging infrastructure. Based on
the recommendations of this committee, the City asked the voters to approve a $63 million bond issue.
The issue won overwhelming approval in an election held in November 1995. The first installment of
The issue won overwhelming approval in an election held in November 1995. The first installment of
the new bonds was sold in September 1997. Construction funded by the new bonds got underway in
the early spring of 1997 and will continue until 2007. When complete, the City will have replaced or
substantially upgraded its entire inventory of streets, drainage, and water and sewer infrastructure. In
2005, construction activity continued on schedule and another $17.5 million was spent on new streets,
drainage, and water and sewer assets. In 2006, much of the $17.2 million currently in progress will be
completed. All projects associated with this program are expected to be completed by December 31,
2007.
Long Term Financial Planning As a part of the fiscal year 2006 budget process, the Mayor and
Council and City Staff updated a multi-year capital improvements program. Several projects in this
plan are moving from planning:
A new fire engine will be purchased.
Drainage improvements made in connection with the Harris County Flood Control District may
require the City to issue about $4 million in new debt.
A water tower will be completely refurbished.
These projects are expected to be implemented in fiscal year 2006.
FINANCIAL INFORMATION
Budgeting Controls The City Charter of the City of West University Place establishes the fiscal year
as January 1 through December 31. The Charter requires the City Manager to submit a proposed
budget and accompanying budget message to the City Council each year. The proposed budget is
presented to the City Council at a series of budget work sessions. Department directors have an
opportunity to make a budget presentation to the City Council and are available for questions. Copies
of the proposed budget are made available to the public and the press and the public hearing schedule
is continued. Before the public hearings are held, notices of the public hearings on the proposed
budget are posted and published in the newspaper. After public hearings at two consecutive regular
City Council meetings, the Council may adopt the proposed budget, with or without amendment. The
budget ordinance is to be adopted no later than 60 days after receiving the Certified Tax Roll from the
Harris County Appraisal District which is usually received around August 12 each year. The Council
adopts the tax rate ordinance at the same meeting as the budget. The City maintains budgetary control
by adopting an annual operating budget for the General Fund, Debt Service Fund, Water and Sewer
Enterprise Fund, and Solid Waste Fund. Detail control is maintained at the line item level by
encumbering available funds at the time a purchase order is written. Encumbrances do not lapse at
fiscal year end. The City Manager is authorized to transfer budgeted amounts within departments
within any fund. However, any revisions that alter the total expenditures of any fund or department
must be approved by the City Council.
' Cash Management Cash temporarily idle during the year was invested in U.S. Treasury Bills and
Notes, Agency Discount Notes and Medium Term Notes and a local government investment pool
(Texpool). The average yield on investments for the year was approximately 2.5%. The primary
objectives of the City's investment policy, in priority order, are safety (preservation of capital),
liquidity (to provide adequate and timely working funds), and return on investment (obtaining arate of
return commensurate with investment risk constraints and cash flow needs). All deposits were either
insured by federal deposit insurance or collateralized and the collateral was held by a trustee bank in
1 the City's name, which is the lowest category of risk as defined by the Governmental Accounting
Standards Board. The City currently holds the Certificate of Distinction from the Government
Treasurer's Organization of Texas for its investment policy.
Risk Management Insurance coverage for property, liability, and workers' compensation is provided
by the Texas Municipal League Intergovernmental Risk Pool, a State Insurance Pool. Contributions to
the Risk Pool for workers' rates are based on the City's past claims history. The Risk Pool retains a
limit of loss and reinsurance companies insure the risks beyond those limits. During the fiscal year,
representatives from the Risk Pool physically reviewed City facilities to identify possible risks. City
employees also participated in Risk Pool sponsored safety training classes.
AWARDS AND ACKNOWLEDGEMENTS
Awards The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of West
University Place for its comprehensive annual financial report for the fiscal year ended December 31,
2004. This was the fifteenth consecutive year the City has received this prestigious award. In order to
be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Proaram's
requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgements The preparation of this report could not have been accomplished on a timely
basis without the dedicated endeavors of the entire staff of the Finance Department. I would like to
express my sincere appreciation to all employees who contributed to the preparation. Additionally. I
would also like to thank the Mayor, City Council, and City Manager for their support in planning and
conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
-v~ eh 64-r7 I
Walter Thomas
Finance Director
CITY OF WEST UNIVERSITY PLACE, TEXAS
ORGANIZATIONAL CHART
December 31, 2005
Citizens of
West University Place
City
City Judges &
Secretary
Mayor &
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Pramumrs
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Appointed 8anrts
Attorney
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City
Manager
Fire Fluance Police
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7
CITY OF WEST UNIVERSITY PLACE, TEXAS
CERTIFICATE OF ACHIEVEMENT FOR
EXCELLENCE IN FINANCIAL REPORTING
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of West University Place,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAF-Rs) achieve the highest
standards in government accounting
and financial reporting.
i n. FG V
3 aa'
President
Executive Director
8
CITY OF WEST UNIVERSITY PLACE, TEXAS
PRINCIPAL OFFICIALS
December 31, 2005
City Officials
Burt Ballanfant
Phyllis Cohen
Steven Segal
Mike Woods
Richard Yehle
Elective Position
Mayor
Council Member
Council Member
Council Member
Council Member
Term Expires
05/2007
05/2007
05/2007
05/2007
05/2007
Key Staff
Michael Ross
Ron Wicker
Kaylyna Holloway
Alan Petrov
Candelario Elizondo
Tim O'Conner
Steve Ralls
Wendy Standorf
Walter Thomas
Ken Walker
Position
City Manager
Assistant City Manager/Public- Works Director
City Secretary
City Attorney
City Judge
Parks and Recreation Director
Fire Chief
Director of Human Resources
Finance Director
Police Chief
9
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10
FINANCIAL SECTION
11
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12
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
Members of the City Council
City of West University Place, Texas:
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fiord information of the City of West University
Place, Texas (the `City"), as of December 31, 2005, and for the year then ended, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in the United States of
' America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
' assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
' and the aggregate remaining fund information of the City as of December 31, 2005, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended, in
conformity with generally accepted accounting principles in the United States of America.
' The management's discussion and analysis on pages 17 through 25, budgetary comparison information on
page 69, and pension information on page 71, are not a required part of the basic financial statements but
are supplementary information required by accounting principles generally accepted in the United States
of America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information, However, we did not audit the information and express no opinion on it.
' Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining statements and
schedules, and statistical tables are presented for purposes of additional analysis and are not a required
part of the basic financial statements. The combining fund statements and schedules have been subjected
to auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly
' stated in all material respects in relation to the basic financial statements taken as a whole. The
introductory section and statistical tables have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we express no opinion on them.
May 10, 2006
I
13
a 730 North Post Oak Rd.. Ste. 202 Houston, TX 77024 PH: 713.263.1123 FX: 713.263.1550 info C&texasauditors.com www.texasauditors.com
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14
MANAGEMENT'S DISCUSSION
AND ANALYSIS
15
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16
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANAGEMENT'S DISCUSSIONAND ANALYSIS (MD&A)
December 31, 2005
The purpose of the management's discussion and analysis (MD&A) is to give the readers an objective and easily
readable analysis of the City of West University Place's financial activities for the year ending December 31,
2005. The analysis is based on currently known facts, decisions, or economic conditions. It presents short and
long-term analysis of the City's activities, compares current-year results with those of the prior year, and
discusses the positive and negative aspects of that comparison. GASB Statement No. 34 establishes the content of
the minimum requirements for MD&A. Please read the MD&A in conjunction with the transmittal letter at the
front of this report and the City's financial statements, which follow this section.
THE STRUCTURE OF OUR ANNUAL REPORT
Components of the Financial Section
I Management's
Discussion and
Analysis
Basic Financial
Statements
I Required
Supplementary
Information
Independent Govemment- Fund Financial Component Units Notes to the
Auditor's Report Wide Financial Statements Financial Financial
Statements Statements Statements
Summary Detail
The Comprehensive Annual Financial Report is presented as compliant with the financial reporting model in
effect pursuant to GASB Statement No. 34. This financial reporting model requires govermnents to present
certain basic financial statements as the MD&A and certain other required supplementary information (RSI). The
basic financial statements include (1) government-wide financial statements, (2) individual fund financial
statements, and (3) notes to the financial statements.
Government-Wide Statements
The government-wide statements report information for the City as a whole. These statements include
transactions and balances relating to all assets, including infrastructure capital assets. These statements are
designed to provide information about cost of services, operating results, and financial position of the City as an
economic entity. The statement of net assets and the statement of activities, which appear first in the City's
financial statements report information on the City's activities that enable the reader to understand the financial
condition of the City of West University Place. These statements are prepared using the accrual basis of
accounting, which is similar to the accounting used by most private-sector companies. All of the current year's
revenues and expenses are taken into account even if cash has not yet changed hands.
The statement of net assets presents information on all of the City of West University Place's assets and liabilities.
The difference between the two is reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City of West University Place is improving or
17
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANA GEMENT'S DISCUSSIONAND ANAL YSIS, Continued
December 31, 2005
deteriorating. Other non-financial factors, such as the City's property tax base and the condition of the City's
infrastructure, need to be considered in order to assess the overall health of the City.
The statement of activities presents information showing how the City's net assets changed during the most recent
year. All changes in the net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows - the accrual method rather than modified accrual that is used in the
fund level statements.
The statement of net assets and the statement of activities divide the City into two classes of activities:
Governmental activities - Most of the City's basic services are reported here including general
government, community development, fire and rescue, leisure services, maintenance, municipal
court, police, and streets and drainage. Interest payments on the City's debt are also reported
here. Sales tax, property tax, franchise taxes, municipal court fines and permit fees finance most
of these activities.
2. Business-type activities - Services involving a fee for those services are reported here. These
services include the City's water distribution, wastewater collection/treatment, and solid waste
utility.
The government-wide financial statements can be found after the MD&A.
FUND FINANCIAL STATEMENTS
Funds may be considered as operating companies of the parent corporation, which is the City of West University
Place. They are usually segregated for specific activities or objectives. The City of West University Place uses
fund accounting to ensure and demonstrate compliance with finance related legal reporting requirements. The
two categories of City funds are governmental and proprietary.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in
the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well
as on balances of spendable resources available at the end of the year. Such information may be useful in
evaluating the City's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the govermnent-wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. Both the governmental fund balance
sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of West University Place maintains 11 individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the general fund, which is considered to be a major fund. The City
of West University Place adopts an annual appropriated budget for its general fund and each of the special
revenue funds. Budgetary comparison schedules have been provided for these funds to demonstrate compliance
with these budgets.
18
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued
December 31, 2005
Proprietary Funds
The City maintains two types of proprietary funds. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds
to account for its water distribution, wastewater collection/treatment, and solid waste operations. The proprietary
fund financial statements provide separate information for the water distribution, wastewater collection/treatment,
and solid waste funds. The basic proprietary fund financial statements can be found in the basic financial
statements of this report.
The City also uses internal service funds to account
associated with separated employees. These internal
activities in the government-wide financial statements.
for its equipment replacement services and for expenses
service funds have been included within governmental
Notes to Financial Statements
The notes to the financial statements provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements. The notes are the last section of the basic
financial statements.
Other Information
hi addition to basic financial statements, MD&A, and accompanying notes, this report also presents certain
required supplementary information (RSI). The RSI that GASB Statement No. 34 requires includes budgetary
comparison schedules for the general fund and schedule of funding progress for Texas Municipal Retirement
System. RSI can be found after the basic financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of the City's financial position. For the City
of West University Place, assets exceed liabilities by $37,115,758 as of December 31, 2005, in the primary
government. As required by GASB Statement No. 34, a comparative analysis of government-wide data has been
presented as a component of the MD&A for the year ending December 31, 2005. The largest portion of the City's
net assets (64.8%) reflects its investments in capital assets (e.g., land, building, equipment, improvements,
construction in progress, and infrastructure), less any debt used to acquire those assets that are still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the assets
themselves can not be used to liquidate these liabilities.
19
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANAGEMENT'SDISCUSSIONANDANALYSIS, Continued
December 31, 2005
Statement of Net Assets:
The following table reflects the condensed statement of net assets:
SUMMARY OF STATEMENT OF NET ASSETS
Total
Gover
nmental
Business-type
Primary
Acti
vities
Activities
Government
2005
2004
2005
2004
2005
2004
Current and other assets
$ 20,305,537
$ 231208,955
$ 2,158,800
$ 1,951,654
$ 22,464,337 $
25,160,609
Capital assets, net
75,710,453
74,887,101
36,698,904
38,102,508
112,409,357
112,989,609
Total Assets
96,015,990
98,096,056
38,857,704
40.054J 62
134,873,694
138,150,218
Long-term liabilities
69,043,225
72,518,235
14,247,409
14,890,000
83,290,634
87,408,235
Other liabilities
13,1501602
13,940,240
1,316,700
1,315,020
14.467,302
15,255,260
Total Liabilities
82,193,827
86,458,475
15,564,109
16,205,020
97.757,936
102,663,495
Net Assets:
Invested in capital assets,
net of related debt
2,285,217
8,838,382
21,776,495
22,647,508
24,061,712
31,485,890
Restricted
8,550,763
363,478
622,627
1,532,649
9,173,390
1,896,127
Unrestricted
2,986,183
2,435,721
894,473
(331,015)
3,880,656
2,104.706
Total Net Assets
$ 13,822,163
$ 11,637,581
$ 23,293,595
$ 231849,142
$ 37,115,758 $
35,486.723
A portion of the primary government's net assets, $9,173,390 or 25.0%, represents resources that are subject to
external restriction on how they may be used. The remaining balance of unrestricted net assets, $3,880,656 or
10%, may be used to meet the City's ongoing obligation to citizens and creditors.
20
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANAGEMENT'SDISCUSSIONANDANALYSIS, Continued
December 31, 2005
Statement of Activities:
The following table provides a summary of the City's changes in net assets:
CHANGES IN NET ASSETS
Total
Governmental
Business-type
Primary
Activities
Activities
Government
2005
2004
2005
2004
2005
2004
Revenues
Program revenues:
Charges for services $
2,315,601 $
1,778,449 $
6,010,960 $
5,305,172
$ 8,326,561 $
7,083,621
Operating grants and contributions
16,915
342,450
-
-
16,915
342,450
Capital grants and contributions
3701864
1,270,704
-
-
370,864
1,270,704
General revenues:
Ad valorem taxes
12,132,958
11,670,796
-
-
12,132,958
11,670,796
Sales taxes
745,716
683,572
-
-
745,716
683,572
Franchise taxes
913,998
872,221
913,998
872,221
Other taxes
15,460
16,021
-
-
15,460
16,021
Contributions
268,081
-
-
-
268,081
-
'
Investment earnings
458,208
338,969
21,374
6,896
479,582
345,865
Other revenues
222,044
197,645
216,047
438,091
197,645
Loss on sale of capital assets
(25,950)
-
-
-
(25,950)
-
Total Revenues
17,433,895
17,170,827
6.248,381
5,312,068
23,682,276
22,482.895
Expenses
General administration
2,594,417
2,405,983
-
-
2,594,417
2,405,983
' Public safety
5,109,968
4,826,905
-
-
5,109,968
4,826,905
Public works
3.073,735
2,587,621
3,073,735
2,587,621
Public services
1.840,117
1,368,549
-
-
1,840,117
1,368,549
Interest and fiscal agent
fees on long-term debt
3,501,076
3,377,944
3,501,076
3,377,944
Water and sewer
-
-
5,083562
4,844,930
5,083,562
4,844,930
Solid waste
-
-
850,366
676,448
850,366
676,448
Total Expenses
16,119,313
14,567,002
5,933,928
5,521,378
22,053,241
20988,380
Increase (Decrease) in Net Assets
Before Transfers
Transfers
Change in Net Assets
Net assets, beginning of year
Net Assets, End of Year
1,314,582
2,603,825
314,453
(209,310)
1,629,035
2,394,515
870,000
(1,2231291)
(870,000)
1223,291
-
-
2,184,582
1,380,534
(555,547)
1,013,981
1,629,035
2,394,515
11,637,581
10,257,047
23,849,142
22,835,161
35,486,723
33.092,208
S 13,822,163
$ 11,637,581
$ 23,291595
$ 23,849,142
S 37.115,758
$ 35,486,723
21
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANAGEMEAWSDISCUSSIONANDANAL YSIS, Continued
December 31, 2005
Graphic presentations of selected data from the summary tables follow to assist in the analysis of the City's
activities.
GOVERNMENTAL REVENUES
Contributions Investment earnings Other revenues
2% 3% 1%
Other taxes
0.1%
Charges for services
13%
Operating grants and
contributions
0.1%
Capital grants and
contributions
2%
Property taxes
70%
For the year ended December 31, 2005, revenues from governmental activities totaled $17,433,895. Property tax
revenues are the City's largest revenue sources. Property tax revenue increased by 4% because of the increase in
assessed property values in the prior year. The City has experienced this growth primarily due to new
construction in the City.
Franchise fees, collected from electric, gas, cable and telephone/telecommurrications utilities, totaled $913,998 for
the year ended December 31, 2005, a modest increase of 6% from the prior year.
This graph shows the governmental function expenses of the City:
GOVERNMENTAL FUNCTIONAL EXPENSES
Interestlfisee
22
General administration
16%
Public services
11%
Public safely
32%
22
i CITY OF WEST UNIVERSITY PLACE, TEXAS
MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued
December 31, 2005
For the year ended December 31, 2005, expenses for governmental activities totaled $16,119,313. This represents
an increase of $1,552,311 over last year. Construction projects for sidewalk expansion and drainage
improvements continued in 2005, with the majority of the work complete. Expenses per capita were $1,134, an
increase over last year.
Business-type activities are shown comparing operating costs to revenues generated by related services.
BUSINESS-TYPE ACTIVITIES
Revenue vs. Costs
(Dollars in millions)
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
® Operating Revenues ® Operating Costs
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal
requirements.
Governmental Funds - The focus of the City's governmental funds is to provide information of near-term inflows,
outflows and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unreserved fund balance may serve as a useful measure of the City's net resources
available for spending at the end of the year.
The City's governmental funds reflect a combined fund balance of $11,908,300. Of this, $6,852,781 is
designated for capital projects and equipment replacement, and $996,927 is reserved for debt service.
There was a decrease in the combined fund balance of $1,248,810 over the prior year. This is largely attributable
to the continuation of both infrastructure replacement and sidewalk construction projects. These projects are
expected to be complete by the end of the next fiscal year. All other funds as presented on the governmental
funds statement of revenues, expenditures, and changes in fund balances experienced a positive net change in
fund balance.
There had been a planned increase in budgeted fund balance in the amount of $60,690 in the general fund.
However, the net change in fund balance increased by $337,760 resulting in a positive variance of $277,070 from
budgeted as amended over actual.
Revenue and other financing sources exceeded expenditures and other financing uses by $337,760 in the general
fund for fiscal year 2005. Actual general fund revenues exceeded original and amended budgeted revenues by
$284,486 during 2005. This increase includes the positive variances of $119,647 for charges for services and
$122,570 for licenses and permits.
23
Water and Sewer Systems Solid Waste
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANA GEMENT'S DISCUSSIONAND ANALYSIS, Continued
December 31, 2005 '
Expenses in Administration, Finance and Public Service exceeded budgeted amounts by a total of $265,927 for
the fiscal year. These variances are attributable to increased utility costs for the City. Additionally, legal and
professional fees exceeded budget due to legal issues with Time Warner and a property located on Weslayan
Street.
GENERAL FUND BUDGETARY HIGHLIGHTS - YEAR 2005
Original and
'
Amended Budget
Actual
Revenues
Taxes
$ 7,062,630 $
7,194,870 ,
Other
2,107,250
2,259,496
Total
9,169,880
9,454,366
Expenditures
Expenditures 9,979,190 9,991,651
Other Financing Sources/(Uses)
Sales of capital assets - 23,335
Transfers in 870,000 851,710
Total 870,000 875,045
Change in Fund Balance $ 60,690 $ 337,760
Proprietary Funds - The City's proprietary funds provide the same type of information found in the government-
wide financial statements, but in more detail.
CAPITAL ASSETS
At the end of year 2005, the City's governmental activities funds had invested $75,710,453 in a variety of capital
assets and infrastructure (net of accumulated depreciation). This represents a net increase of $823,352.
Depreciation is included with the governmental capital assets as required by GASB Statement No. 34 with an
increase in depreciation expense of $1,823,010.
Major capital asset events during the current year include the following:
• Completion of the Area 8 and 9 Street and Drainage System Projects for $13,043,115
• Continuation of the Area 10 and 11B Street and Drainage System Projects for $1,619,181
• Sidewalk construction in the amount of $1,504,359
More detailed information about the City's capital assets is presented in note III. C to the financial statements.
LONG-TERM DEBT
At the end of the current year, the City had total bonds and certificates of obligation outstanding of $87,205,000.
Of this amount, $59,095,000 was general obligation debt, $15,255,000 was revenue bond debt, and certificates of
obligation accounted for $12,855,000.
24
CITY OF WEST UNIVERSITY PLACE, TEXAS
MANAGEMENT'SDISCUSSIONANDANALYSIS, Continued
' December 31, 2005
During the year, the City had a net reduction in the long-term debt of $3,005,774. The City opted to take
' advantage of low interest rates and refunded permanent improvement bonds, series' 1996, 1998, and 2000, as well
as revenue bonds, series' 1996A, 1996B, and 1998.
More detailed information about the City's long-tern liabilities is presented in note III. D to the financial
statements.
Current underlying ratings on debt issues are as follows:
Water revenue bonds
Moody's
Investors
Service
Ana
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Standard and
Poor's
AAA
The City of West University Place City Council approved a $23.4 million budget for the City's major operating
funds (General, Debt Service, Water Utility, and Solid Waste) for calendar year 2006. This 5.1% increase is
largely due to increased personnel costs (10% increase in employee health care benefits). The budget
incorporates a 2.3% decrease in the property tax rate made possible by a 6.4% growth in assessed property values.
West University Place's tax rate is one of the lowest in the Houston area and is projected to remain stable into the
future due to steady growth in assessed values, the political stability of the community, and the underlying
strength in the Houston area economy.
The City's Water Utility Fund's revenues increased by 23.8% to $5.2 million in response to significant rate
' increases and lack of rainfall in the summer of 2005. The Water Utility Fund had been a source of concern
because a series of wetter years and dramatic increases in debt service had steadily decreased reserves and pushed
the Fund into non-compliance with its bond covenants. The City Council took action in late 2003 by increasing
' water and sewer rates. Since then, the City has carefully monitored the performance of this utility and increased
rates as needed with the last increase being in April 2006.
Assessed values have grown almost 25% in the last five years and, while the rate of growth is expected to slow,
reconstruction will continue to impact the value of property well into the future. Assessed values are projected to
grow by 4.6% in 2006 due to a large number of properties whose assessed values were capped below market in
2005.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide a general overview of the City of West University Place's finances for
all those with an interest in the City's finances. Questions concerning this report or requests for additional
financial information should be directed to Walter Thomas, Finance Director, 3800 University Boulevard, West
University Place, TX, 77005, telephone 713.662.5186, or for general City information, visit the City's website at
www.westu.ore.
25
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26
BASIC FINANCIAL STATEMENTS
27
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28
CITY OF WEST UNIVERSITY PLACE, TEXAS
STATEMENT OF NET ASSETS
December 31, 2005
Government
Assets
Cash and equity in pooled cash and investments
Receivables, net of allowances
Inventory
Prepaids and other assets
Deferred charges
Restricted assets:
Cash and equity in pooled cash
Capital assets:
Land
Construction in progress
Depreciable capital assets, net
■ Total assets
Liabilities
Accounts payable and accrued liabilities
Unearned revenue
Accrued bond interest
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Assets
invested in capital assets, net of related debt
Restricted for:
Capital projects
' Debt service
Special revenue projects
Unrestricted
' Total net assets
1 See Notes to Financial Statements.
Governmental Business-Type
Activities Activities Total
$ 191484,794 S 692,995 $ 20,177,789
459,213 843,178 1,302,391
1,853 - 1,853
15,504 15,504
344,173 344,173
622,627 622,627
5,864,089
193,875
6,057,964
14,767,828
2,494,124
17,261,952
55,078,536
34,010,905
89,089,441
96,015,990 38,857,704 134,873,694
1,172,608
349,684 1,522,292
6,647,906
- 6,647,906
1,411,574
292,016 1,703,590
3,918,514
69,043,225
675,000
14,247,409
4,593,514
83,290,634
82,193,827
15,564,109
97,757,936
2,285,217 21,776,495 24,061,712
6,852,781 622,627 7,475,408
996,927 - 996,927
683,698 - 683,698
3,003,540 894,473 3,898,013
$ 13,822,163 $ 23,293,595 $ 37,115,758
29
CITY OF WEST UNIVERSITY PLACE, TEXAS
STATEMENT OFACTIVITIES
Year ended December 31, 2005
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary Government
Governmental Activities
General administration
$ 2,594,417
$ 1,530,847
$ 16,915
$ -
Public safety
5,109,968
186,844
-
370,864
Public works
3,073,735
-
-
Public services
1,840,117
597,910
Interest on long-term debt
3,501,076
-
Total Governmental Activities
16,119,313
2,315,601
16,915
370,864
Business-type Activities
Water and sewer
5,083,562
5,084,828
-
-
Solid waste
850,366
926,132
Total Business-type Activities
5,933,928
6,010,960
-
Total Primary Government
$ 22,053,241
$ 8,326,561
$ 16,915
$ 370,864
General Revenues:
Ad valorem taxes
Sales taxes
Franchise taxes
Othertaxes
Contributions
Investment earnings
Other revenues
Gain (loss) on sale of capital assets
Transfers
Total General Revenues and Transfers
Change in Net Assets
Beginning Net Assets
Ending Net Assets
See Notes to Financial Statements.
30
Net Revenue (Expense) and Changes in Net Assets
Primary Government
Governmental Business-Type
Activities Activities Total
$ (1,0461655) $ - $ (1,046,655)
(4,552,260) - (4,552,260)
(3,073,735) - (3,073,735)
(1,242,207) - (1,242,207)
(3,501,076) - (3,501,076)
(13,415,933) (13,415,933)
1,266 1,266
75,766 75,766
77,032 77,032
(13,415,933) 77,032 (13,338,901)
12,132,958
-
12,132,958
745,716
-
745,716
913,998
-
913,998
15,460
15,460
268,081
-
268,081
458,208
21,374
479,582
222,044
216,047
438,091
(25,950)
-
(25,950)
870,000
(870,000)
-
15,600,515
(632,579)
14,967,936
2,184,582
(555,547)
1,629,035
11,637,581
231849,142
35,486,723
$ 13,822.163 $
23,293,595 $
37J 15,758
31
CITY OF WEST UNIVERSITY PLACE, TEXAS '
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2005
Capital Projects
Debt Infrastructure Sidewalk '
General Service Replacement Construction
Assets
Current assets:
Cash and equity in pooled cash
and investments
Receivables, net of allowances
for uncollectibles
Due from other funds
Inventory
Prepaid costs
Total Assets
Liabilities and Fund Balances
Liabilities:
Accounts payable and accrued
liabilities
Deferred revenue
Total Liabilities
Fund Balances:
Reserved for:
Prepaids and inventory
Debt service
Unreserved, undesignated reported in:
General fund
Special revenue funds
Capital projects fund
Total Fund Balances
Total Liabilities and Fund Balances
$ 6,865,046 $ 4,582,230 $ 3,860,026 $ 3,262,872
353,690 89,613 - -
15,910 -
15,504 - -
$ 7,250,150 $ 4,671,843 $ 3,860,026 $ 3,262,872
$ 690,779 $ 44,908 $ 190,916 $ 201,597
3,186,330 31630,008
3,877,109 3,674,916 190,916 201,597
15,504 -
- 996,927
3,357,537
3,669,110 3,061,275
3,373,041 996,927 3,669,110 3,061,275
$ 7,250,150 $ 4,671,843 $ 31860,026 $ 3,262,872
Amounts reported for governmental activities in the statement of net assets are different, because:
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds.
Capital assets, non-depreciable
Capital assets, net depreciable
Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred
in the funds.
Internal service funds are used by management to charge the costs of certain capital assets to individual funds.
The assets and liabilities of the Internal Service Funds are included in the governmental activities in the
statement of net assets.
Long-tern liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Accrued interest payable
Non-current liabilities due in one year
Non-current liabilities due in more than one year
Deferred charges for issuance costs
Deferred charges on refunding
Premium on bond issuance
Net Assets of Governmental Activities
See Notes to Financial Statements.
32
Nonmajor
Governmental
Funds Total
$ 834,592 $ 19,404,766
- 443,303
15,910
1,853 1,853
15,504
$ 836,445 $ 19,881,336
$ 28,498
$ 1,156,698
-
6,816,338
28,498
7,973,036
1,853
17,357
-
996,927
-
3,357,537
683,698
683,698
122,396
6,852,781
807,947
11,908,300
$ 836,445
20,631,917
54,292,324
168,432
850,330
(1,411,574)
(3,918,514)
(68,635,390)
344,173
1,265,654
(1,673,489)
$ 13,822,163
33
CITY OF WEST UNIVERSITY PLACE, TEXAS ,
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Year ended December 31, 2005
Capital Projects
Debt
Infrastructure Sidewalk
General Service
Replacement Construction
Revenues
Taxes
$ 7,194,870 $ 6,609,105
$ $
Permits, licenses, and fees
597,910 -
- -
Fines and forfeitures
178,601 -
,
- -
Charges for services
1,165,967 -
- -
Intergovernmental
16,915 -
- -
Contributions
- -
Investment earnings
109,380 56,450
182,776 104,205
Other revenue
190,723 -
- 861
Total Revenues
9,4541366 6,665,555
182,776 105,066
Expenditures
Current:
General government
2,268,862 -
- -
Public safety
4,769,582 -
- -
Public works
1,582,592 -
- -
Public service
1,370,615 -
- -
Capital outlay
- -
752,538 1,510,236
Debt service:
Principal
2,900,000
- -
Interest and fiscal agent fees
3,668,128
1,500
Total Expenditures
9,991,651 6,568,128
754,038 1,5101236
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(537,285) 97,427
(571,262) (1,405,170)
Other Financing Sources (Uses
Transfers in
870,000
-
- -
Transfers (out)
(18,290)
-
(269,000)
Refunding bonds issued
25,075,000
Premium on refunding bonds
1,793,024
Payment to refunded bond escrow agent
(26,751,058)
Sale of capital assets
23,335
-
- -
Total Other Financing Sources
875,045
116,966
(269,000)
Net Change in Fund Balance
337,760
214,393
(840,262) (1,405,170)
Beginning fund balances
3,035,281
782,534
4,509,372 4,466,445
Ending Fund Balances $
3,373,041
$ 996,927 $
3,669,110 $ 3,061,275
See Notes to Financial Statements.
34
Nonmajor
Governmental
Funds
Total
$ $
13,803,975
597,910
8,243
186,844
-
1,165,967
370,864
387,779
2681081
268,081
4,267
457,078
21,340
211924
672,795
17,080,558
-
2,268,862
4,769,582
-
1,582,592
209,367
1,579,982
306,249
2,569,023
-
2,900,000
-
3,669,628
515,616
19339,669
157,179 (2,259,111)
287,290 1,157,290
- (287,290)
25,075,000
1,793,024
(26,751,058)
- 23,335
287,290 1,010,301
4441469 (1,248,810
363,478 13,157,110
$ 807,947 $ 11,908300
35
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36
CITY OF WEST UNIVERSITY PLACE, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OFACTIVITIES
Year ended December 31, 2005
1 Amounts reported for governmental activities in the statement of activities are different because:
' Net changes in fund balances - total governmental funds $
(1,248,810)
Governmental funds report capital outlays as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense. This is the amount by which capital outlays ($2,224,028) was less
than depreciation ($1,453,721) in the current period.
770,307
' in the statement of activities, only the gain on the sale of capital assets is reported. However,
in the governmental funds, the proceeds from the sale increase financial resources. Thus,
the change in net assets differs from the change in fund balance by the cost of the capital
assets sold.
The issuance of long-term debt (e.g., bonds, certificates of obligation) provides current financial
resources to governmental funds, while the repayment of the principal of long-tern debt
consumes the current financial resources of governmental funds. Neither transaction,
however, has any effect on net assets. Also, governmental funds report the effect of issuance
costs, premiums, discounts and similar items when debt is first issued; whereas, these
amounts are deferred and amortized in the statement of activities.
Issuance of debt and principal expenditures
4,605,189
Debt issuance costs
198,709
Premium on refunding bond issuance
(1,793,024)
Revenue in the statement of activities that does not provide current financial resources
4,157
are not reported as revenue in the funds.
Some expenses reported in the statement of activities do not require the use of current
1
financial resources and, therefore, are not reported as expenditures in governmental funds.
(398,270)
Interval service funds are used by management to charge the costs of certain capital assets
to individual funds. The net revenue (expense) is reported with governmental activities.
46,324
Change in Net Assets of Governmental Activities $
2,184,582
See Notes to Financial Statements.
37
CITY OF WEST UNIVERSITY PLACE, TEXAS
STATEMENT OF NET ASSETS (Page I of 2)
PROPRIETARY FUNDS
December 31, 2005
Assets
Current assets:
Cash and equity in pooled cash and investments
Accounts receivable, net of allowances
Total Current Assets
Noncurrent assets:
Restricted cash and equity in pooled cash
Total Restricted Assets
Business-Type Activities-Enterprise Funds
Water and Solid
Sewer Waste Total
1
1
I
$ 397,708 $ 301,287 $ 692,995
7711020 132,15 8 843,178
1,102,728 433,445 1,5361173
622,627
622,627
622,627
622,627
Capital assets:
Land
193,875
- 193,875
Buildings and improvements
459,625
- 459,625
Furniture and equipment
788,503
- 788,503
Water and sewer system
50,900,381
- 50,900,381
Construction in progress
2,494,124
- 2,494,124
Less: accumulated depreciation
(18,1377604)
- (18,137,604)
Total Capital Assets (Net of Accumulated Depreciation)
36,698,904
- 36,698,904
Total Noncurrent Assets
37,321,531
- 37,321,531
Total Assets
$ 38,424,259 $
433,445 $ 38,857,704
See Notes to Financial Statements.
38
Governmental
Activities -
Internal Service
Funds
$ 80,028
80,028
1,555,873
(769,661)
786,212
786,212
S 866,240
3 9
CITY OF WEST UNIVERSITY PLACE, TEXAS
STATEMENT OF NET ASSETS (Page 2 of 2)
PROPRIETARY FUNDS
December 31, 2005
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
Accrued interest payable
Revenue bonds
Total Current Liabilities
Noncurrent liabilities:
Revenue bonds payable (net of unamortized
discounts and deferred amounts on refunding)
Total Noncurrent Liabilities
Total Liabilities
Net Assets
invested in capital assets, net of related debt
Restricted for capital projects
Unrestricted
Total Net Assets
See Notes to Financial Statements.
Business-Type Activities-Enterprise Funds
Water and Solid
Sewer Waste Total
$ 299,470 $ 50,214 $ 349,684
292,016 - 292,016
675,000 - 675,000
1.266,486 50,214 1,316,700
14,247,409 14,247,409
14,247,409 - 14,2471409
15,513,895 50,214 15,564,109
21,776,495 21,776,495
622,627 - 622,627
511,242 383,231 894,473
$ 22,910.364 $ 383,231 23,293,595
40
Governmental
Activities -
Internal Service
Funds
$ 15,910
15,910
15,910
786,212
64,118
$ 850,330
41
CITY OF WEST UNIVERSITY PLACE, TEXAS
STATEMENT OF REVENUES, EXPEA'SES, AND CHANGES IN FLNVD NET ASSETS
PROPRIETARY FUNDS
Year ended December 31, 2005
Operatin¢ Revenues
Charges for sales and services
Other revenues
Total Operating Revenues
Operating Expenses
Costs of sales and services
Personnel
Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonoperatine Revenues (Expenses)
Investment income
Interest expense
Gain (loss) on sale of assets
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in (out)
Change in Net Assets
Beginning net assets
Ending Net Assets
See Notes to Financial Statements.
Business-Type Activities-Enterprise Funds
Water and Solid
Sewer Waste Total
$ 5,084,828 $ 926,132 $ 6,010,960
19,170 196,877 216,047
5,103,998 1,123,009 6,227,007
1,924,688 366,703 2,291,391
855,976 483,663 1,339,639
1,589,794 - 1,589,794
4,370,458 850,366 51220,824
733,540 272,643 1,006,183
13,180 8,194 21,374
(713,104) - (713,104)
(699,924) 8,194 (691,730)
33,616 280,837 314,453
(645,000) (225,000) (870,000)
(611,384) 55,837 (555,547)
23,521,748 327,394 23,849,142
$ 22,910,364 $ 383,231 $ 23,293,595
42
Governmental
Activities -
Internal Service
Funds
$ 364,880
9,120
374,000
114,358
175,135
289,493
84,507
1,130
(39,313)
(38,183)
46,324
46,324
804,006
$ 850,330
43
'
CITY OF WEST UNIVERSITY PLACE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Pagel of 2)
Year ended December 31, 2005
Business-Tvpe Activities-Enterprise Funds
,
Water and Solid
'
Sewer Waste Total
Cash Flows from Operating Activities
Receipts from customers and users
Payments to suppliers
Payments to employees
Net Cash Provided by Operating Activities
Cash Flows from Noncauital
Financing Activities
Transfer to other funds
Net Cash (Used) by Capital and Related
Financing Activities
Cash Flows from Capital and Related
Financing Activities
Proceeds from issuance of capital debt
Cost of defeasance of capital debt
Acquisition and construction of capital assets
Principal paid on capital debt
Advances from other funds
Interest paid on capital debt
Proceeds from sale of capital assets
Net Cash Provided (Used) by Capital and Related
Financing Activities
Cash Flows from Investing Activities
Interest received
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of Year
Unrestricted cash and cash equivalents
Restricted cash and cash equivalents
Beginning cash and cash equivalents
Ending Cash and Cash Equivalents
Ending Cash and Cash Equivalents:
Unrestricted cash and cash equivalents
Restricted cash and cash equivalents
$ 4,970,494 $ 11131,985 $ 6,102,479
(2,219,360) (280,351) (2,499,711)
(855,976) (483,663) (1,339,639)
1,895,158 367,971 2,263,129
(645,000) (225,000) (870,000)
(645,000) (225,000) (870,000)
9,020,000
- 91020,000
(332,591)
- (332,591)
(186,189)
- (186,189)
(9,220,000)
- (9,220,000)
(2,078,130)
- (2,078,130)
(713,104)
- (713,104)
(3,510,014) (3,510,014)
13,180 8,194 21374
13,180 8,194 21374
(2,246,676) 151,165 (2,095,511)
5,202 150,122 155,324
3,255,809 - 31255,809
3,261,011 150,122 3.411,133
$ 1,014,335 $ 301,287 $ 1,315,622
$ 391,708 $ 301,287 $ 692,995
6221627 - 622,627
$ 1,014,335 $ 301,287 $ 1,315,622
See Notes to Financial Statements.
44
Governmental
Activities -
Internal Service
Funds
$ 374,000
(153,271)
220,729
(287,947)
20,454
(267,493)
1,130
1,130
(45,634)
125,662
125,662
$ 80,028
$ 80,028
$ 80,028
45
CITY OF WEST UNIVERSITY PLACE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Page 2 of 2)
Year ended December 31, 2005
Business-Type Activities-Enterprise Funds
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Current Assets:
Accounts receivable
Due from other funds
Increase (Decrease) in Current Liabilities:
Accounts payable and accrued liabilities
Due to other funds
Net Cash Provided by Operating Activities
See Notes to Financial Statements.
Water and Solid
Sewer Waste Total
$ 733,540 $ 272,643 $ 1,006,183
1,589,794
1,589,794
(133,504) 8,976 (124,528)
196,000 196,000
(98,672) (9,648) (108,320)
(196,000) (1 00,000) (296,000)
$ 1,895,158 $ 367,971 $ 21263,129
46
Governmental
Activities -
Internal Service
Funds
$ 84,507
175,135
(38,913)
$ 220,729
47
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49
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of West University Place, Texas (the "City"), was incorporated in 1924. The City has
operated under a "Home Rule Charter" which provides for a Council-Manager form of government
since 1940.
The City Council is the principal legislative body of the City. The City Manager is appointed by a
majority vote of the City Council and is responsible to the Council for the administration of all the
affairs of the City. The City Manager is responsible for the appointment and removal of department
directors and employees, supervision and control of all City departments, and preparation of the
annual budget.
The City provides the following services: public safety to include police and fire services; municipal
court; leisure services; streets; drainage; water and sewer services; solid waste collection and
disposal; community development; and general administration.
The City is an independent political subdivision of the State of Texas governed by an elected council
and a mayor and is considered a primary government. As required by generally accepted accounting
principles, these basic financial statements have been prepared based on considerations regarding the
potential for inclusion of other entities, organizations, or functions as part of the City's financial
reporting entity. The Friends of West University Parks Fund, Inc., although legally separate, is
considered part of the reporting entity. No other entities have been included in the City's reporting
entity. Additionally, as the City is considered a primary government for financial reporting purposes,
its activities are not considered a part of any other governmental or other type of reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations or functions in the
City's financial reporting entity are based on criteria prescribed by generally accepted accounting
principles. These same criteria are evaluated in considering whether the City is a part of any other
governmental or other type of reporting entity. The overriding elements associated with prescribed
criteria considered in determining that the City's financial reporting entity status is that of a primary
government are that it has a separately elected governing body; it is legally separate; and it is fiscally
independent of other state and local governments. Additionally, prescribed criteria under generally
accepted accounting principles include considerations pertaining to organizations for which the
primary govermnent is financially accountable and considerations pertaining to organizations for
which the nature and significance of their relationship with the primary govermnent are such that
exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
Blended Component Unit
Friends of West University Parks Fund, Inc.
' Friends of West University Parks Fund, Inc. (the "Corporation") has been included in the reporting
entity as a blended component unit. The Corporation is a not-for-profit entity created to solicit private
contributions for the beautification, improvement, and maintenance of the City' parkland. The
Corporation's Board of Directors is appointed by and serves at the discretion of City Council. City
Council approval is required for any projects of the Corporation that exceed $1,000. In the event of
dissolution, any assets of the Corporation will be transferred to the City. The operations of the
49
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
Corporation are presented as a governmental fund type. Separate financial statements of the
Corporation may be obtained from the Finance Department of the City.
B. Financial Statement Presentation
These financial statements include implementation of Governmental Accounting Standards Board
(GASB) Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis
-for State and Local Governments. Certain of the significant changes in the Statement include the
following:
• A Management's Discussion and Analysis (MD&A) section providing an analysis of the City's
overall financial position and results of operations.
• Financial statements prepared using full accrual accounting for all of the City's activities.
• A change in the fund financial statements to focus on the major funds.
GASB Statement No. 34 established standards for external financial reporting for all state and local
governmental entities, which includes a statement of net assets and a statement of activities. It
requires the classification of net assets into three components: invested in capital assets, net of
related debt; restricted; and unrestricted. These classifications are defined as follows:
• Invested in capital assets, net of related debt-This component of net assets consists of capital
assets, including restricted capital assets, net of accumulated depreciation and reduced by the
outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to
the acquisition, construction, or improvement of those assets.
• Restricted-This component of net assets consists of constraints placed on net asset use through
external constraints imposed by creditors (such as through debt covenants), grantors, contributors,
or laws or regulations of other governments or constraints imposed by law through constitutional
provisions or enabling legislation.
• Unrestricted-This component of net assets consists of net assets that do not meet the definition
of "restricted" or "invested in capital assets, net of related debt."
C. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information about the City as a whole. These statements include all
activities of the primary government and its component units. For the most part, the effect of
interfund activity has been removed from these statements. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support.
The statement of activities presents a comparison between direct expenses and program revenues for
each segment of the business-type activities of the City and for each function of the City's
governmental activities. Direct expenses are those that are specifically associated with a program or
function and, therefore, are clearly identifiable to a particular function. Program revenues include
charges paid by the recipients of goods or services offered by the programs and grants that are
restricted to meeting the operational or capital requirements of a particular program. Revenues that
50
'
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
'
are not classified as program revenues, such as taxes and investment earnings, are presented as
general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements. In the fund financial statements, the accomits of the City are
organized on the basis of funds, each of which is considered a separate accounting entity. The
'
operations of each fund are accounted for with a separate set of self-balancing accounts that comprise
its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Following
is a description of the various funds:
Governmental Funds
'
Governmental funds are those funds through which most governmental functions are typically
financed.
General Fund
The general fund is used to account for all financial transactions not properly includable in other
funds. The principal sources of revenues include local property taxes, sales and franchise taxes,
licenses and permits, fines and forfeitures, and charges for services. Expenditures include general
government, public safety, public works, and public service.
Special Revenue Funds
The special revenue funds are used to account for proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes. The special revenue funds include Parks
Fund, Friends of the Parks Fund (blended component unit), Senior Activity Fund, Court
Technology Fund, and the METRO Grant Fund. The special revenue funds are considered
nonmajor funds for reporting purposes.
Debt Service Fund
The debt service fund is used to account for the payment of interest and principal on all general
'
obligation bonds and other long-term debt of the City. The primary source of revenue for debt
service is local property taxes. The debt service fund is considered a major fund for reporting
purposes.
Capital Proiects Funds
The capital projects funds are used to account for the expenditures of resources accumulated from
sales tax revenues and the sale of bonds and related interest earnings for capital improvement
'
projects. The Infrastructure Replacement Fund and the Sidewalk Construction Fund are
considered major funds for reporting purposes with the Capital Projects Fund and Drainage
'
Improvement Fund reported as nonmajor funds.
Proprietary Fund Types
Proprietary funds are used to account for activities that are similar to those often found in the private
sector. All assets, liabilities, equities, revenues, expenses, and transfers relating to the government's
business activities are accounted for through proprietary funds. The measurement focus is on
'
determination of net income, financial position, and cash flows. Proprietary funds distinguish
operating revenues and expenses from non-operating items. Operating revenues include charges for
services. Operating expenses include costs of materials, contracts, personnel, and depreciation. All
51
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FIA'ANCIAL STATEMENTS, Continued
December 31, 2005
revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses. Proprietary fund types follow GAAP prescribed by the Governmental Accounting
Standards Board (GASB) and all financial Accounting Standards Board's standards issued prior to
November 30, 1989. Subsequent to this date, the City accounts for its enterprise funds as presented
by GASB.
The proprietary fund types used by the City include the following:
Enterprise Funds
The enterprise funds are used to account for the operations that provide water and wastewater
collection, wastewater treatment operations and solid waste collection and disposal. The services
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 will be financed or recovered primarily
through user charges. The Water and Sewer Fund and the Solid Waste Fund are considered major
funds for reporting purposes.
Additionally, the govenunent reports the following fund types:
Internal Service Funds
Internal service funds account for services provided to other departments or agencies of the
government, or to other governments, on a cost reimbursement basis. The Equipment
Replacement Fund is used to account for equipment replacement and maintenance services. The
Separated Employees Fund accounts for costs associated with retired or separated employees.
D. Measurement Focus and Basis of Accounting
The government-wide statements of net assets and statements of activities and all proprietary funds
are accounted for on a flow of economic resources measurement focus, accrual basis of accounting.
With this measurement focus, all assets and all liabilities associated with the operations of these
activities are included on the balance sheet. Proprietary fund equity consists of net assets.
Proprietary fund-type operating statements present increases (i.e., revenues) and decreases (i.e.,
expenses) in net total assets.
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. All governmental funds and component units are accounted for using a current financial
resources measurement focus. With this measurement focus, only current assets and current
liabilities generally are included on the balance sheet. Operating statements of these funds present
increases (i.e., revenues and other financing resources) and decreases (i.e., expenditures and other
financing uses) in net current assets.
The City utilizes the modified accrual basis of accounting in the governmental fund type and
component units. Under the modified accrual basis of accounting, revenues are recognized in the
accounting period when they are susceptible to accrual (i.e., when they are measurable and available).
Measurable means the amount of the transaction can be determined and available means collectible
within the current period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the City considers revenues available if they are collected within 60 days of the end of the
1
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' CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
current period. Revenues susceptible to accrual include charges for services and interest on
temporary investments.
' Property taxes, sales taxes, franchise taxes, and interest associated with the current period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current period.
Other receipts and other taxes become measurable and available when cash is received by the
' government and are recognized as revenue at that time.
Under modified accrual accounting, expenditures are recognized in the accounting period in which
the liability is incurred, if measurable, except for interest on general long-term debt, which is
recognized when due.
The accrual basis of accounting is used for the proprietary fund types. This basis of accounting
recognizes revenues in the accounting period in which they are earned and become measurable, and
expenses in the accounting period in which they are incurred and become measurable.
' The statements of net assets, statements of activities, and financial statements of proprietary fund
types are presented on the accrual basis of accounting. Under this method of accounting, revenues
are recognized in the accounting period in which they are earned, and expenses in the accounting
' period in which they are incurred.
Generally, the effect of interfund activity has been eliminated from the government-wide financial
statements.
E. Assets, Liabilities, and Net Assets or Fund Equity
t 1. Deposits and Investments
' The City maintains a pooled cash and investments account. Each fund whose monies are deposited in
the pooled cash and investment account has equity therein, and interest earned on the investment of
these monies is allocated based upon relative equity at the previous month end. Amounts on deposit
in interest bearing accounts and other investments are displayed on the combined balance sheet as
"Cash and equity in pooled cash and investments."
In accordance with GASB Statement No. 31 Accounting and Reporting for Certain Investments and
External Investment Pools, the City repoi4s all investments at fair value, except for "money market
investments" and "2a7-like pools." Money market investments, which are short-term highly liquid
' debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized
costs. Investment positions in external investment pools that are operated in a manner consistent with
the SEC's Rule 2a7 of the Investment Company Act of 1940, such as TexPool, are reported using the
pools' share price.
The City has adopted a written investment policy regarding the investment of its funds as defined in
' the Public Funds Investment Act, Chapter 2256, Texas Governmental Code. In surmnary, the City is
authorized to invest in the following:
' Direct obligations of the U.S. Government
Money Market Mutual Funds that meet certain criteria
Statewide investment pools
' 53
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
2. Receivables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at
the end of the year are referred to as either "interfund receivables/payables" (i.e., the current portion
of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans).
All other outstanding balances between funds are reported as "due to/from other funds" in the fund
financial statements. If the transactions are between the primary government and its component unit,
these receivables and payables are classified as "due to/from component unit/primary government"
Any residual balances outstanding between the governmental activities and business-type activities
are reported in the government-wide financial statements as "internal balances."
Advances between funds are offset by a fund balance reserve account in applicable governmental
funds to indicate they are not available for appropriation and are not expendable available financial
resources.
All trade receivables are shown net of an allowance for uncollectibles.
Property taxes
Property taxes are levied during October of each year and are due upon receipt of the City's tax bill.
Taxes become delinquent, with an enforceable lien on property, on February I of the following year.
3. Inventories and Prepaid Items
The costs of governmental fund type inventories are recorded as expenditures when the related
liability is incurred (i.e., the purchase method). Certain payments to vendors reflect costs applicable
to future accounting periods (prepaid expenditures) are recognized as expenditures when utilized.
4. Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. In accordance with GASB Statement
No. 34, infrastructure has been capitalized retroactively. Capital assets are defined by the government
as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation. Major outlays for capital assets and improvements are capitalized as projects are
constructed.
Interest costs incurred in connection with construction of enterprise fund capital assets are capitalized
when the effects of capitalization materially impact the financial statements.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets' lives are not capitalized.
54
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful years:
Estimated
Asset Description
Useful Life
Buildings
20 to 50 years
Improvements
5 to 50 years
Equipment
5 to 10 years
Water and sewer system
20 to 30 years
Infrastructure
40 to 50 years
5. Compensated Employee Absences
It is the City's policy to permit employees to accumulate earned but unused vacation, sick pay
benefits, and compensatory time. Amounts accumulated, up to certain amounts, may be paid to
employees upon termination of employment. The estimated amount of compensation for services
provided that is expected to be liquidated with expendable available financial resources are reported
as an expenditure and a fund liability of the governmental fund that will pay it when it matures or
becomes due. Amounts of vested or accumulated vacation leave that are not expected to be liquidated
with expendable available financial resources are maintained separately and represent a reconciling
item between the fund and government-wide presentations.
6. Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities statement of net assets. The long-term
debt consists primarily of bonds payable and accrued compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements
until due. The debt proceeds are reported as other financing sources, net of the applicable premium or
discount and payments of principal and interest are reported as expenditures. In the governmental
fund types, issuance costs, even if withheld from the actual net proceeds received, are reported as debt
service expenditures. However, claims and judgments paid from governmental funds are reported as a
liability in the fund financial statements only for the portion expected to be financed from expendable
available financial resources.
Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the
appropriate funds. For proprietary fund types, bond premiums, discounts and issuance costs are
deferred and amortized over the life of the bonds using the effective interest method, if material.
Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are
reported as deferred charges.
The property tax rate is allocated each year between the general and debt service funds. The full
amount estimated to be required for debt service on general obligation debt is provided by the tax
along with interest earned in the debt service fund. Though a portion of the general obligation debt
was directly related to the purchase of water and sewer infrastructure, the debt service expenditures
are included in the governmental fund financial statements as they are expected to be paid from debt
service tax revenues instead of water system revenues.
55
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
Assets acquired under the terms of capital leases are recorded as liabilities and capitalized in the
government-wide financial statements at the present value of net minimum lease payments at
inception of the lease. In the year of acquisition, capital lease transactions are recorded as other
financing sources and as capital outlay expenditures in the general fund. Lease payments representing
both principal and interest are recorded as expenditures in the general fund upon payment with an
appropriate reduction of principal recorded in the government-wide financial statements.
7. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts
that are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose. Designations of fund balance represent tentative management plans that are subject to
change.
8. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual
results could differ from those estimates.
IL STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
except the capital projects funds, which adopt a project length budget. The original budget is adopted by the
City Council prior to the beginning of the year. The legal level of control as defined by the charter in the
approved budget is the department level in the general fund and all others are the fund level. The City
Manager may transfer appropriations within a department without seeking the approval of City Council.
Appropriations lapse at the end of the year, excluding capital project budgets. Supplemental budget
appropriations were made for the year ended.
Encumbrances represent the estimated amount of expenditures ultimately to result when unperformed
contracts (in progress at year-end) are completed. Such encumbrances do not constitute expenditures or
liabilities because the commitments will be reappropriated and honored during the subsequent year.
A. Excess of Expenditures Over Appropriations
For the year ended, expenditures exceeded appropriations at the legal level of control as follows:
General Fund:
General Government:
Administration
$151,232
Finance
$74,570
Public Service
$40,125
Transfers out
$18,290
Debt Service Fund:
Interest and fiscal agent fees
$89,988
Special Revenue Funds:
METRO Grant:
56
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I
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCL4L STATEMENTS, Continued
December 31, 2005
Public Service $124,883
III. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
Custodial credit risk - deposits. In the case of deposits, this is the risk that in the event of a bank
failure, the City's deposits may not be returned to it. The City's investment policy requires funds on
deposit at the depository bank to be collateralized by securities. As of December 31, 2005, market
values of pledged securities were $2,796,486 and bank balances were $1,651,825.
As of December 31, 2005, the City had the following investments:
Weighted Average
Investment Type Fair Value Maturity (Years)
U.S. Agencies
TexPool
Total fair value
Portfolio weighted average maturity
TexPool
$ 10,420,979 0.5
8,711,980 0.0
$ 19,132,959
0.5
' TexPool was established as a trust company with the Treasurer of the State of Texas as trustee,
segregated from all other trustees, investments, and activities of the trust company. The State
Comptroller of Public Accounts exercises oversight responsibility over TexPool. Oversight includes
the ability to significantly influence operations, designation of management, and accountability for
' fiscal matters. Additionally, the State Comptroller has established an advisory board composed of
both participants in TexPool and other persons who do not have a business relationship with TexPool.
The advisory board members review the investment policy and management fee structure. Finally,
' Standard & Poor's rate TexPool AAAm. As a requirement to maintain the rating, weekly portfolio
information must be subirdued to Standard & Poor's, as well as to the office of the Comptroller of
Public Accounts for review.
1 TexPool operates in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of
1940. TexPool uses amortized cost rather than market value to report net assets to compute share
' prices. Accordingly, the fair value of the position in TexPool is the same as the value of TexPool
shares.
1 57
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
B. Receivables
The following comprise receivable balances at year end:
Ad valorem taxes
Othertaxes
Accounts
Less allowance
General Debt Service
$ 78,819 $ 89,613
277,189 -
805,505 144,258
(2,318) (94,485) (12,100)
$ 353,690 $ 89.613 $ 711.020 $ 132,158
Water and
Sewer Solid Waste
C. Capital assets
A summary of changes in capital assets for the year end were as follows:
Primary Government
Beginning Ending
Balance Increases (Decreases) Balance
Goveranental Activities:
Capital assets not being depreciated
Land
$ 5,864,089
$ -
$ -
$ 5,864,089
Comhvctioninprogress
26,051,825
2,186,912
(13,470,909)
14,767,828
Total capital assets not
being depreciated
31,915,914
2,186,912
(13,470,909)
20,631,917
Otto capital assets:
Buildings and urprovenents
7,966,099
-
-
7,966,099
Machinery and eggxrent
4,964,863
385,748
(403227)
4,947,384
Infrastructure
43,092,304
13,646,238
-
56,738,542
Total other capital assets
56,023,266
14,031,986
(403,227)
69,652,025
Less accumulated depreciation for.
Buildings and improvements
(3,536,712)
(281,547)
-
(3,818,259)
Machinery andequiprerd
(3,358,110)
(406,692)
301,600
(3,463,202)
hr&astnetuie
(6,157,257)
(1,134,771)
-
(7,292,028)
Total accumnilateddepteciation (13,052,079)
(1,823,010)
301,600
(14,573,489)
Other capital assets, net
42,971,187
12,208,976
(101,627)
55,078,536
Totals
$ 74,887,101
$ 14,395,888
$ (13,572,536)
$ 75,710,453
Less accrued interest (1,411,574)
Less associated debt (72,013,662)
Invested in Capital Assets, Net of
Related Debt $ 2,285,217
All capital assets constructed or paid for with funds of the component units are titled in the City's
name. Accordingly, component unit capital assets and construction in progress are recorded in the
governmental activities totals.
58
CITY OF WEST UNIVERSITY PLACE, TEXAS
?VOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
Depreciation was charged to governmental functions as follows:
General government $ 162,553
Public safety 114,034
Public works 11202,861
Public service 168,427
Capital assets held by the Citys Internal Service Fund are
charged to various functions based on their usage of the assets 175,135
Total Governmental Activities Depreciation Expense $ 1,823,010
Construction in progress and remaining conmiitments under related construction contracts for general
government construction projects at year end were as follows:
Governmental Activities:
Authorized
Contract
Remaining
Project Description
Contract
Expenditures
Commitment
Contractor Technology -Area 10
$ 7,391,254
$ 5,02A,212
$ 2,363,042
Contractor Technology -Area 11B
6,622,851
5,085,136
Totals
$ 14,014,105
$ 10,113,348
$ 2,363,042
*Contractor filed bankruptcy - no additional payments are required to be made
59
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
The following is a summary of changes in capital assets for business-type activities for the year
ended:
Beginning
(Decreases)/
Ending
Balance
Increases Reclassifications
Balance
Business-type Activities:
Capital assets not being depreciated:
Land
$ 193,875
$ - $ $
193,875
Construction in progress
6,229,311
186,190 (3,921,377)
2,494,124
Total capital assets not
being depreciated
6,423,186
186,190 (3,921,377)
2,687,999
Other capital assets:
Buildings
Water and sewer system
Machinery and equipment
Total other capital assets
Less accumulated depreciation for
459,625 -
46,979,004 3,921,377
788,503 -
48,227,132 3,921,377
459,625
50,900,381
788,503
52,148,509
Buildings
(216,555)
(18,385)
(234,940)
Water and sewer system
(15,674,046)
(1,559,300)
(22,515) (17,255,861)
Machinery and equipment
(657,209)
(12,109)
22,515 (646,803)
Total accumulated depreciation
(16,547,810)
(1,589,794)
- (18,137,604)
Other capital assets, net
31,679,322
2,331,583
34,010,905
Totals $
38,102,508 $
2,517,773 $
(3,921,377) $ 36,698,904
Less associated debt
Invested in Capital Assets, Net
of Related Debt
Depreciation was charged to business-type functions as follows:
Water and sewer $ 1,589,794
Total Business-type Activities Depreciation Expense $ 1,589,794
I
11
it
it
,I
(14,922,409) 11
$ 21,776,495 11
60 11
' CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
D. Long-term Debt
The following is a summary of changes in the City's total governmental long-term liabilities for the
year ended. In general, the City uses the general and debt service funds to liquidate governmental
long-term liabilities.
' Amounts
Beginning Ending Due within
Balance Additions Reductions Balance One Year
Governmental Activities:
' Bonds, notes and other
payables:
General obligation bonds $ 62,120,000 $ 25,075,000 $ 28,100,000 $ 59,095,000 $ 3,150,000
Certificates of obligation 13,050,000 - 195,000 12,855,000 225,000
' Unantortized refunding items - 436,966 29,131 407,835 -
75.170,000 25.511.966 28,324,131 72,357,835 3375,000
Other liabilities:
' Compensated absences 264,922 338,982 - 603,904 543,514
Total Governmental
Activities $ 75,434,922 $ 25,850,948 $ 28,324,131 $ 72,961,739 $ 3,918-514
' Long-term debt due in
more than one year $ 69,043,225
Business-type Activities:
' Revenue bonds $ 15,455,000 $ 9,020,000 $ 9,220,000 $ 15,255,000 $ 675,000
(Less) deferred charges (353.378) (20,787) (332.591)
Total Business-type
Activities $ 15,455,000 $ 8.666.622 $ 9,199.213 $ 14,922,409 $ 6751000
' Long-term debt due in
more than one year $ 14,247,409
Long-tern liabilities applicable to the City's governmental activities are not due and payable in the
current period, and accordingly, are not reported as fund liabilities in the govermmental funds. The
govermmental activities compensated absences are generally liquidated by the general fund. Interest
on long-tern debt is not accrued in governmental funds, but rather is recognized as an expenditure
when due.
Federal Arbitrage
' General obligation bonds, combination tax and revenue bonds and certificates of obligation are
subject to the provisions of the Internal Revenue Code of 1986 related to arbitrage and interest
income tax regulations under those provisions.
61
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
Long-term debt at year end was comprised of the following debt issues:
Description
Governmental Activities
General Obligation Bonds
Permanent improvement
Series 1996
Series 2000
Permanent improvement and refunding
Series 1998
Series 2002
Series 2005
Total General Obligation Bonds
Interest
Rates Balance
5.20-7.20% $ 250,000
5.25-6.75% 2,065,000
4.88% 6,635,000
4.00-5.00% 25,070,000
145-5.25% 25,075,000
59,095,000
Certificates of Obligation
Series 2001
Series 2003
Total Certificates of Obligation
Total Governmental Activities Long-Term Debt
Business-t-me Activities
Revenue Bonds
Water and sewer, series 2001A
Water and sewer, series 2001B
Water and sewer, refunding series 2005
Total Business-type Activities Long-Term Debt
5.34% 3,055,000
3.85-4.00% 9,800,000
12,855,000
$ 71,950,000
4.70-6.50% $ 3,415,000
2.55-4.30% 2,820,000
2.87-4.50% 9,020,000
$ 15,255,000
The annual requirements to amortize debt issues outstanding at year ending were as follows:
Year
Ending
Governmental Activity
Business-ty
pe Activity
Dec 31
Principal
Interest
Principal
Interest
Total
2006
$ 3,375,000
$ 3,314,663
$ 675,000
$ 595,994
$ 2960,657
2007
3,525,000
3,166,330
665,000
601,873
7,958,203
2008
3,690,000
3,004,091
690,000
577,814
7,961,905
2009
3,875,000
2,823,918
715,000
551,749
7,965,667
2010
4,055,000
2,640,024
745,000
523,446
7,963,470
2011-2015
23,345,000
10,175,988
4,240,000
2,128,594
39,889,582
2016-2020
30,085,000
3,686,121
5,305,000
1,131,270
40,207,391
2021-2022
-
-
2,220,000
102,745
2,322,745
Total
$ 71,950,000
$ 28,811,135
$ 15,255,000
$ 6,213,485
$ 122,229,620
General obligation bonds are direct obligations of the City for which its full faith and credit are
pledged. Repayment of general obligation bonds are from taxes levied on all taxable property located
within the City. The City is not obligated in any manner for special assessment debt.
62
CITY OF WEST UNIVERSITY PLACE, TEXAS
' NOTES TO FLVANCL4L STATEMENTS, Continued
December 31, 2005
in
I Advance Refund
The City issued $25,075,000 of permanent improvement refunding bonds to provide resources to
I' purchase direct obligations of the United States of America that were placed in an irrevocable trust
for the purpose of generating resources for all future debt service payments in the amount of
$25,395,000 for the City's outstanding Permanent Improvement Bonds, series' 1996, 1998 and 2000.
I' As a result, the refunded portions of the bonds are considered to be defeased and the liability has been
removed from the governmental activities column of the statement of net assets. The reacquisition
price exceeded the net carrying amount of the old debt by $1,356,058. This amount is being netted
' against the new debt and amortized over the life of the new debt, which is equal to the life of the
refunded debt. This advance refunding was undertaken to reduce total debt service payments over the
next fifteen years by $1,092,474 and resulted in an economic gain of $782,791.
Additionally, the City issued $9,020,000 of waterworks and sewer system revenue refunding bonds to
provide resources to purchase direct obligations of the United States of America that were placed in
an irrevocable trust for the purpose of generating resources for all future debt service payments in the
amount of $8,655,000 for the City's outstanding Waterworks and Sewer System Revenue Bonds,
series' 1996A, 1996B and 1998A. The reacquisition price exceeded the net carrying amount of the
old debt by $139,155. This amount is being netted against the new debt and amortized over the life of
the new debt, which is equal to the life of the refunded debt. This advance refunding was undertaken
to reduce total debt service payments over the next seventeen years by $203,684 and resulted in an
economic gain of $139,525.
In 2002, the City defeased certain permanent improvement bonds, series' 1992, 1993 and 1996 in the
amount of $15,755,000 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 the liability
for the defeased bonds are not included in the City's financial statements. At December 31, 2005,
$3,150,000 of permanent improvement bonds, series 1996 were considered defeased related to the
2002 refunding.
E. Interfund Transactions
Transfers between the primary government funds during the year were as follows:
Transfer Out Transfer In
Water and Sewer General Fund
Solid Waste
Infrastructure Replacement
General Fund
General Fund
Nonmajor Governmental
Nonmajor Governmental
Amounts
$ 645,000
225,000
269,000
18,290
1,157,290
Transfers to the general fund were subsidies for administrative expenditures. Other amounts
transferred between funds related to amounts collected by the nonmajor governmental funds for
various governmental expenditures.
Amounts recorded as due to/from are considered to be temporary loans and will be repaid dining the
following year.
63
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
F. Fund Equity
The City records fund balance reserves on the fund level to indicate that a portion of the fund balance
is legally restricted for a specific future use or to indicate that a portion of the fund balance is not
available for expenditure.
The following is a list of fund balances reserved or designated recognized by the City:
General Fund
Reserved for prepaids and inventory $ 15,504
Debt Service Fund
Reserved for debt service $ 996,927
Nonmajor Other Governmental Funds
Reserved for inventory $ 1,853
G. Restricted Assets
The balance of the restricted cash account in the enterprise fund recognized by the City is as follows:
Water and Sewer Fund
Restricted for construction $ 622,627
IV. OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of
assets, errors and omissions; and natural disasters for which the City participates along with 2,539
other entities in the Texas Municipal League's Intergovernmental Risk Pools. The Pool purchases
commercial insurance at group rates for participants in the Pool. The City has no additional risk or
responsibility to the Pool, outside of the payment of insurance premiums. The City has not
significantly reduced insurance coverage or had settlements which exceeded coverage amounts for the
past three years.
B. Contingent Liabilities
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amounts of expenditures which may
be disallowed by the grantor cannot be determined at this time although the City expects such
amounts, if any, to be immaterial.
The City is a defendant in several lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's management that resolution of these matters will not have
a material adverse effect of the financial condition of the City.
64
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
'
December 31, 2005
'
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Liabilities include an amount for claims that have been incurred but not
reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement
trends, including frequency and amount of payouts, and other economic and social factors. No claim
liabilities are reported at year end.
C. Pension Plans
1. Texas Municipal Retirement Systems
Plan Description
The City provides pension benefits for all of its full-time employees through a non-traditional, joint
'
contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System
(TMRS), one of 801 adnvnistered by TMRS, an agent multiple-employer public employee retirement
'
system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City
'
financed monetary credits, with interest. At the date the plan began, the City granted monetary credits
for service rendered before the plan began of a theoretical amount equal to two times what would
have been contributed by the employee, with interest, prior to establishment of the plan. Monetary
credits for service since the plan began are a percent (100%, 150%, or 200%) of the employee's
'
accumulated contributions. In addition, the City can grant, as often as annually, another type of
monetary credit referred to as an updated service credit which is a theoretical amount which, when
added to the employee's accumulated contributions and the monetary credits for service since the plan
'
began, would be the total monetary credits and employee contributions accumulated with interest if
the current employee contribution rate and city matching percent bad always been in existence and if
the employee's salary had always been the average of his salary in the last three years that are one
'
year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's
accumulated contributions with interest and the employer-financed monetary credits with interest
were used to purchase an annuity.
'
Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service
regardless of age. A member is vested after 5 years. The plan provisions are adopted by the
governing body of the City, within the options available in the state statutes governing TMRS and
within the actuarial constraints also in the statutes.
Contributions
The contribution rate for the employees is 7%, and the City's matching ratio is currently two to one,
both as adopted by City Council. Under the state law governing TMRS, the actuary annually
'
determines the City contribution rate. This rate consists of the normal cost contribution rate and the
prior service contribution rate, both of which are calculated to be a level percent of payroll from year
to year. The normal cost contribution rate finances the currently accruing monetary credits due to the
'
City matching percent, which are the obligation of the City as of an employee's retirement date, not at
the time the employee's contributions are made. The normal cost contribution rate is the actuarially
determined percent of payroll necessary to satisfy, the obligation of the City to each employee at the
time his/her retirement becomes effective. The prior service contribution rate amortizes the unfunded
(over funded) actuarial liability (asset) over the remainder of the plan's 25-year amortization period.
1 65
CITY OF WEST UNIVERSITY PLACE, TEXAS
NOTES TO FINANCIAL STATEMENTS, Continued
December 31, 2005
The unit credit actuarial cost method is used for determining the City contribution rate. Both the
employees and the City make contributions monthly.
Since the City needs to know its contribution rate in advance for budgetary purposes, there is a
one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when
the rate goes into effect (i.e., December 31, 2004 valuation is effective for rates beginning January
2006).
All assumptions for the 12/31/04 valuations are contained in the 2004 TMRS Comprehensive Annual
Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin, Texas
78714-9153. The following is a summary of the actuarial assumptions:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Investment Rate of Return
Projected Salary Increases
Includes Inflation at
Cost of Living Adjustments
Unit Credit
Level % of Payroll
25 Years - Open period
Amortized cost
7%
None
3.5%
None
Three-Year Contribution Information
Annual Pension Percentage of ARC
Fiscal year
Cost (ARC)
Contributions
2003
$
701,509
100%
2004
$
730,622
100%
2005
$
893,021
100%
D. Hurricane Rita
Net Pension I
Obligation
11
11
Prior to making landfall on September 24, 2005, the National Hurricane Center forecasted that
Hurricane Rita, a category 5 hurricane and one of largest storms on record, would likely come ashore
just west of the City, placing the City on the "dirty side" of the storm. This news came just one
month after the devastating affects of Hurricane Katrina on New Orleans, Louisiana and the
surrounding area. In the days leading up to landfall, revised forecasts placed the storm's path directly
across the City. The combination of these events prompted the region to undergo one of the largest
evacuations on record. Actual landfall occurred east of the City, near the Texas/Louisiana border, and
the damage results for the City were less than originally predicted. '
Nonetheless, the City incurred substantial expenses: planning and preparing for the event; providing
refuge and assistance to citizens of the area; manning emergency operations; and cleaning up debris. '
Many of these expenditures incurred by the City are expected to be reimbursed by the Federal
Emergency Management Agency (FEMA). The City has estimated the amount it anticipates to
recover from FEMA for the portion of expenditures incurred prior to year end. However, FEMA's
policies have and will likely change; therefore, the actual reimbursement could differ from the amount
estimated based on the City's current understanding and interpretation of FEMA's policies.
66 '
r
1 1
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' REQUIRED SUPPLEMENTARYINFORMATION
1
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68
CITY OF WEST UNIVERSITY PLACE, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year ended December 31, 2005
Revenues
Taxes:
Ad valorem
Franchise
Sales
Licenses and permits
Fines
Charges for services
Intergovernmental
Investment earnings
Other revenues
Total Revenues
Expenditures
General government:
Administration
Finance
Public safety:
Police
Fire
Public works
Public service
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Other Financing Sources
Transfers in
Transfers (out)
Sale of capital assets
Original and
Variance with
Amended
Final Budget
Budget
Actual Positive
Amounts
Amounts (Negative)
$ 5,446,630 $
5,519,696 $
73,066
953,000
9291458
(23,542)
663,000
745,716
82,716
475,340
597,910
122,570
273,400
178,601
(94,799)
1,046,320
1,165,967
119,647
-
16,915
16,915
100,500
109,380
8,880
211,690
190,723
(20,967)
9.169,880
9,454,366
284,486
615,440
766,672
(151,232)
1.427,620
1,502,190
(74,570)
2,677,480
2,532,433
145,047
2,240,250
2.237,149
3,101
1,687,910
1,582,592
105,318
1,3301490
1,370.615
(40,125)
9,979,190
9,991,651
(12,461)
(809,310)
(537,285)
272,025
870,000
870,000
(18,290) (18,290)
23,335 23,335
Total Other Financing Sources
870,000
875,045
5,045
Net Change in Fund Balance
$ 60,690
337,760 $
277,070
Beginning fund balance 3,035.281
Ending Fund Balance $ 3,373941
' Notes to Required Supplementary Information:
1. Annual budgets are adopted on a basis consistent with generaly accepted accounting principles (GAAP).
2. Excess of expenditures over appropriations
' 69
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70 ,
CITY OF WEST UNIVERSITY PLACE, TEXAS
SCHEDULE OF FUNDING PROGRESS-
TEXAS MUNICIPAL RETIREMENT SYSTEM
The City's annual covered payroll and pension costs are actuarially valued on a calendar year basis. Because the City makes all
the annually required contributions, no net pension obligation (NPO) exists. The information presented below represents the
City's Schedule of Funding Progress.
Fiscal Year
2005
2004
2003
2002
2001
Actuarial Valuation date
12/31/2004
12/31/2003
12/312002
12/31/2001
12/31/2000
Actuarial Value of Assets
$
12,886,461 $
13,522.221 $
10,748,722 $
9,745,961 $
9,745,961
Actuarial Accrued Liability
$
19,196,674 $
19,648,251 $
14,372,452 $
13,228,490 $
13,228,490
Percentage Funded
67.1%
68.8%
74.8%
73.7%
73.7%
Unfunded Actuarial
Accrued Liability
$
6,310,213 $
6,126,030 $
3,623,730 $
3,482,529 $
3,482,529
Annual Covered Payroll
$
5,545,016 $
5,708,418 $
4,902,792 $
4,018,383 $
3,952,192
Unfunded Actuarial Accrued Liability
(1-AAL) % of Covered Payroll
113.8%
107.3%
73.9%
86.7%
88.1%
Net Pension Obligation (NPO)
at the Beginning of Period
$
- $
- $
- $
- $
-
Annual Req. Contrib. (ARC)
$
893,021 $
730,622 $
67U77 $
568,996 $
580,535
Contributions Made
$
893,021 $
7X622 $
670,077 $
568,996 $
580,535
NPO at the End of Period $
- $
- $
- $
- $
-
71
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72
COMBINING STATEMENTS
AND SCHEDULES
73
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74
0
1
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1
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1
1
i
1
0
1
7
11
11
1
1
CITY OF WEST UNIVERSITY PLACE, TEXAS
SCHED ULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
DEBT SERVICE FUND
Year ended December 31, 2005
Revenues
Ad valorem taxes
Investment earnings
Total Revenues
Expenditures
Debt service:
Principal
interest and fiscal agent fees
Total Expenditures
Other Financim! Sources (Uses)
Refunding bonds issued
Premium on refunding bonds issued
Payment to refunded bond escrow agent
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Beginning fund balance
Ending Fund Balance
Original and
Variance with
Amended
Final Budget
Budget
Actual
Positive
Amounts
Amounts
(Negative)
$ 6,504,600
$ 6,609,105
$ 104,505
10,000
56,450
46,450
6,514,600
6,665,555
150,955
2,900,000
2,900,000
-
3,578,140
3,668,128
(89,988)
6,478,140
6,568,128
(89,988)
-
25,075,000
25,075,000
1,793,024
1,793,024
(26,751,058)
(26,751,058)
-
116,966
116,966
$ 36,460
214,393
$ 60,967
782,534
$ 996,927
Notes to Required Supplementary Information:
1. Annual budgets are adopted on a basis consistent with generaly accepted accounting principles (GAAP).
2. Excess of expenditures over appropriations *
75
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76
CITY OF WEST UNIVERSITY PLACE, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2005
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures
for particular purposes.
Parks Fund
This fund is used to account for donations made by citizens for the specific purpose of improving the City's
parks.
Friends of the Parks Fund
This fund accounts for the financial activity of the Friends of West University Parks Fund, Inc. This fund's
revenues are restricted to use in improving the City's parks.
Senior Activity Fund
This fund is used to account for donations made to provide activities for the City's senior citizens.
Court Technology Fund
This fund is used to account for a portion of traffic fine revenue set aside to acquire technology for the
municipal court.
METRO Grant Fund
This fund is used to account for the proceeds of a multi-year transportation grant from METRO.
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for resources used in the acquisition or construction of major
general capital assets.
Capital Projects Fund
This fund is used to account for a wide range of construction projects and the acquisition of very costly
capital equipment.
Drainage Improvement Fund
This fund is used to account for the cost and financing of a major project to improve drainage in the City.
77
CITY OF WEST UNIVERSITY PLACE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2005
Assets
Current assets:
Cash and equity in pooled cash
and investments
Inventory
Total Assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Total Liabilities
Fund balances:
Reserved for inventory
Unreserved
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue Funds
Friends of Senior Court
Parks the Parks Activity Technology
$ 15,481 $ 394,713 $ 4,732 $ 6,436
- 1,853 - -
$ 15,481 $ 396,566 $ 4,732 $ 6,436
$ 4,673 $ $ 1,802 $
4,673 1,802
- 1,853 - -
10,808 394,713 2,930 6,436
10,808 396,566 2,930 6,436
$ 15,481 $ 396,566 $ 4,732 $ 6,436
78
Special Total
Revenue Funds Capital Projects Funds Nonmajor
METRO Capital Drainage Governmental
Grant Projects Improvement Funds
$ 264,271 $ 144,419 $ 4,540 $ 834,592
- - - 1,853
$ 264,271 $ 144,419 $ 4,540 $ 836,445
$ 22,023 $
22.023
$ 28,498
28,498
- - - 1,853
264,271 122,396 4,540 806,094
264,271 122,396 4,540 807,947
$ 264,271 $ 144,419 $ 4,540 $ 836,445
79
CITY OF WEST UNIVERSITY PLACE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
Year ended December 31, 2005
Special Revenue Funds
Revenues
Fines and forfeitures
Intergovernmental
Contributions
investment earnings
Other revenues
Total Revenues
Expenditures
Current:
Public service
Capital outlay
Total Expenditures
Friends of Senior Court
Parks the Parks Activity Technology
$ $ $ $ 8,243
4,367 254,870 8,844 -
372 3,045 155 99
4,739 257,915 8,999 8,342
- 72,251 12,233 -
7,275 - 4,500
7,275 72,251 12,233 4,500
Excess of Revenues Over (Under) Expenditures (2,536) 185,664 (3,234) 3,842
Other Financing Sources
Transfers in - -
Total Other Financing Sources - - -
Net Change in Fund Balances
(2,536)
185,664
(3,234)
3,842
Beginning fund balances
13,344
210,902
6,164
2,594
Ending Fund Balances
$ 10,808 $
396,566 $
2,930 $
6,436
80
Special
Total
Revenue Funds
Capital Projects Funds
Nonmajor
METRO
Capital Drainage
Governmental
Grant
Projects Improvement
Funds
$ -
$ $ -
$ 8,243
370.864
-
370,864
-
-
268,081
596 -
4,267
-
21,340 -
21,340
370,864
21,936 -
672,795
124,883 - - 209,367
- 233,994 60,480 306,249
124,883 233,994 60,480 515,616
245,981 (212,058) (60,480) 157,179
18,290 269,000
18,290 269,000
287,290
287,290
264,271 56,942 (60,480) 444,469
- 65,454 65,020 363,478
$ 264,271 $ 122,396 $ 4,540 $ 807,947
81
CITY OF WEST UNIVERSITY PLACE, TEXAS
SCHEDULE OFREVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
NONMAJOR SPECIAL REVENUE FUNDS
Year ended December 31, 2005
Revenues
Contributions
Investment earnings
Total Revenues
Expenditures
Capital outlay
Total Expenditures
Net Change in Fund Balance
Beginning fund balance
Ending Fund Balance
PARKS
Original and
Amended
Budget
Amounts
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 2,000 $
4,367 $
2,367
100
372
272
2,100
4,739
2,639
15,000
7,275
7,725
15,000
7,275
71725
$ (12,900)
(2,536) $
10,364
13,344
$
10,808
82
CITY OF WEST UNIVERSITY PLACE, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGETAND ACTUAL
NONMAJOR SPECIAL REVENUE FUNDS
Year ended December 31, 2005
SENIOR ACTIVITY
Revenues
Permits, licenses and fees
Contributions
Investment earnings
Total Revenues
Expenditures
Public service
Total Expenditures
Net Change in Fund Balance
Beginning fund balance
Ending Fund Balance
Original and
Variance with
Amended
Final Budget
Budget
Actual Positive
Amounts
Amounts (Negative)
$ 15,000 $
- $
(15,000)
-
8,844
8,844
100
155
55
15,100
8,999
(6,701)
15.000
12,233
2,767
15A00
11233
2,767
$ 100
(3,234) $
(3,334)
6,164
$ 2,930
83
CITY OF WEST UNIVERSITY PLACE, TEXAS
SCHEDULE OFREVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
NONAIAJOR SPECIAL REVENUE FUNDS
Year ended December 31, 2005
COURTTECHNOLOGY
Revenues
Fines and forfeitures
investment earnings
Total Revenues
Expenditures
Capital outlay
Total Expenditures
Net Change in Fund Balance
Beginning fund balance
Ending Fund Balance
Original and
Amended
Budget Actual
Amounts Amounts
Variance with
Final Budget
Positive
(Negative)
$ 14,000 $ 8,243 $ (5,757)
- 99 99
14,000 8,342 (5,658)
14,000 4,500 9,500
14,000 4,500 9,500
$ - 3,842 $ 3,842
2,594
$ 6,436
84
CITY OF WEST UNIVERSITY PLACE, TEXAS
SCHEDULE OFREVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
NONM.AJOR SPECIAL REVENUE FUNDS
Year ended December 31, 2005
METRO GRANT
Revenues
Intergovernmental
Investment earnings
Total Revenues
Expenditures
Public service
Total Expenditures
Excess of Revenues Over Expenditures
Other Financing Sources
Transfers in
Net Change in Fund Balance
Beginning fund balance
Ending Fund Balance
1. Excess of expenditures over appropriations
Original and
Variance with
Amended
Final Budget
Budget
Actual Positive
Amounts
Amounts (Negative)
$ 259,000 $ 370,864 $ 111,864
259.000 370,864 111,864
- 1241883 (124,883)
124,883 (124,883)
259,000 245,981 (13,019)
18,290 18,290
$ 259,000 264,271 $ (13,019)
$ 264,271
85
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86
CITY OF WEST UNIVERSITY PLACE, TEXAS
INTERNAL SER VICE FUNDS
December 31, 2005
Equipment Replacement Fund
This internal service fund is used to account for equipment replacement and maintenance services to
departments or agencies of the City on a cost reimbursement basis.
Separated Employees' Fund
This internal service fund is used to account for the costs associated with retiring and separating employees.
87
CITY OF WEST UNIVERSITY PLACE, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2005
Assets
Current assets
Equipment Separated
Replacement Employees
Total
Equity in pooled cash and investments $
77,846 $
2,182 $ 80,028
Total Current Assets
77,846
2,182 80,028
Noncurrent assets:
Capital assets:
Machinery and equipment
1,555,873
- 1,555,873
Less: accumulated depreciation
(769,661)
- (769,661)
Total Capital Assets (Net of Accumulated Depreciation;
786,212
- 786,212
Total Noncurrent Assets
786,212
- 786,212
Total Assets
864,058
2,182 866,240
Liabilities
Current liabilities:
Accounts payable
Total Current Liabilities
Total Liabilities
Net Assets
Invested in capital assets
Unrestricted
Total Net Assets
15,910 - 15,910
15,910 - 15,910
15,910 - 15,910
786,212 - 786,212
61,936 2,182 64,118
$ 848,148 $ 2,182 $ 850,330
88
CITY OF WEST UNIVERSITY PLACE, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
Year ended December 31, 2005
Operatine Revenues
Charges for sales and services
Other revenues
Total Operating Revenues
Operating Expenses
Costs of sales and services
Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonoperatin¢ Revenues (Expenses)
Investment income
Gain (loss) on sale of capital assets
Total Nonoperating Revenues (Expenses)
Change in Net Assets
Beginning net assets
Ending Net Assets
Equipment
Separated
Replacement
Employees
Total
$ 290,160
$ 74,720 $
364,880
9.120
-
9,120
299,280
74,720
374,000
41,820
72,538
114,358
175,135
-
175,135
216,955
72,538
289,493
82,325
2,182
84,507
1,130
-
1,130
(39,313)
(39,313)
(38,183)
-
(38,183)
44,142
2,182
46,324
804,006
-
804,006
$ 848,148
$ 2,182 $
850,330
89
CITY OF WEST UNIVERSITY PLACE, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
Year ended December 31, 2005
Cash Flows from Operating Activities
Receipts from customers and users
Payments to suppliers
Net Cash Provided by Operating Activities
Cash Flows from Capital and Related
Financing Activities
Acquisition and construction of capital assets
Proceeds from sale of capital assets
Net Cash Provided (Used) by Capital and Related
Financing Activities
Cash Flows from Investing Activities
Interest received
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Beginning cash and cash equivalents
Ending Cash and Cash Equivalents
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities
Operating income (loss)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation
Changes in Operating Assets and Liabilities:
Increase (Decrease) in Current Liabilities:
Accounts payable
Net Cash Provided (Used) by Operating Activities
Equipment Separated
Replacement Employees Total
$ 299,280 $ 74,720 $ 374,000
(80,733) (72,538) (153,271)
218,547 2,182 220,729
(287,947)
20,454
(267,493)
(287,947)
20,454
(267,493)
1,130 1.130
1,130 - 1,130
(47,816) 2,182 (45,634)
125,662 - 125,662
$ 77,846 $ 2,182 $ 80.028
$ 82,325 $ 2,182 $ 84,507
175,135 175,135
(38,913) - (38,913)
$ 218,547 $ 2,182 $ 220,729
90
I
STATISTICAL SECTION
91
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11
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11
11
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11
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i
1
1
1
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92 ,
CITY OF WEST UNIVERSITY PLACE, TEXAS
NET ASSETS BY COMPONENT
Last Three Years (1)
(accrual basis of accounting)
Fiscal Year
2004 2005
Governmental activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business-type activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total business-type activities net assets
Primary government
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary government net assets
$ 7,811,571 $ 8,838,382 $ 1285,217
305,496 363,478 8,533,406
1139,980 2,435,721 1003,540
$ 10,257,047 $ 11,637,581 $ 13,822,163
$ 22,140,957 $ 22,647,508 $ 21,776,495
1,180,254 1,532,649 622,627
(486,050) (331,015) 894,473
22,835,161 23,849,142 23,293,595
$ 29,952,528 $ 31,485,890 $ 24,061,712
1,485,750 1,896,127 9,156,033
1.653,930 2,104,706 3,898,013
$ 33,092,208 $ 35,486,723 $ 37,115,758
(1) The requirement for statistical data is ten years; only three years are available at this time.
93
CITY OF WEST UNIVERSITY PLACE, TEXAS
CHANGES INNET ASSETS
Last Three Years (1)
(accrual basis of accounting)
Expenses
Governmental activities
General administration
Public safety
Public works
Public services
Interest and fiscal agent fees on long-term debt
Total governmental activities expenses
Business-type activities
Water
Sewer
Total business-type activities expenses
Total primary government expenses
Program Revenues
Governmental activities
Charges for services
General administration
Public safety
Public works
Public services
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities
Charges for services
Water
Sewer
Operating grants and contributions
Total business-type activities program revenues
Total primary government program revenues
Net
Governmental activities
Business-type activities
Total primary government net expense
Fiscal Year
2003 2004 2005
$ 2,070,377 $
2,405,983 $
2,594,417
4,816,966
4,826,905
5,109,968
21554,406
2,587,621
3,073,735
11148,718
1,368,549
1,840,117
3,820,949
3,377,944
3,501,076
14,411,416
14,567,002
16,119,313
4,567,117
4,844,930
5,083,562
798,759
676,448
850,366
5,365,876
5,521,378
5,931928
$ 19,777,292 $
20,0881380 $
22,053,241
$ 428,859 $
551,379 $
1,530,847
710,560
530,266
186,844
651,351
696,804
597,910
236,989
342,450
16,915
261,976
1,270,704
370,864
2,289,735
3.391,603
2,703,380
3,106,875
4,201,687
5,084,828
1,048,171
1,103,485
926,132
4,155,046
5305,]72
6,010,960
$ 6,444,781 $
8,696,775 $
8,714,340
$ (12,121,681) $ (11,175,399) $ (13,415,933)
(1,210,830) (216,206) 72032
$ (13,332,511) $ (11,391,605) $ (13,338,901)
94
CITY OF WEST UNIVERSITY PLACE, TEXAS
CHANGES INNETASSETS (Continued)
Last Three Years (1)
(accrual basis of accounting)
General Revenues and Other Changes in Net Assets
Governmental activities
Taxes
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales taxes
Franchise and local taxes
Other taxes
Contributions
Investment earnings
Other revenues
Gain (loss) on sale of capital assets
Transfers
Total governmental activities
Fiscal Year
2003
2004
2005
$ 4,765,758 $
5,134,667 $
5,337,999
6,011,109
6,536,129
6,794,959
758,947
683,572
745,716
873,649
872 221
913,998
18,343
16,021
15,460
-
-
268,081
515,414
338,969
458,208
159,582
197,645
222,044
-
-
(25,950)
(2,914,442)
(1,223,291)
870,000
10,188,360
12,555.933
15,600,515
Business-type activities
Investment earnings
Other revenues
Transfers
Total business-type activities
Total primary government
Change in Net Assets
Governmental activities
Business-type activities
Total primary government
10,280 6,896 21,374
- - 216,047
2,914,442 1,223,291 (870,000)
2,924,722 1,230,187 (632,579)
$ 13,113,082 $ 13,786,120 $ 14,967,936
$ (1,933,321) $ 1,380,534 $ 2,184,582
1,713,892 1,013,981 (555,547)
$ (219,429) $ 2,394,515 $ 1,629,035
(1) The requirement for statistical data is ten years; only three years are available at this time.
95
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II
II
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96
CITY OF WEST UNIVERSITY PLACE, TEXAS
TAX REVENUES BY SOURCE, GOVERNMENTAL ACTIVITIES
Last Three Years (1)
(accrual basis of accounting)
Change
Function
2003
2004
2005
2004-2005
Property
$ 11,481,442
$ 11,670,796
$ 12,132,958
4.0%
Sales
777,290
667,552
730,156
9.4%
Franchise fee
873,649
872,221
913,998
4.8%
Other taxes
159,582
16,020
15,460
-3.5%
$ 13,291,963
$ 13,226.589
$ 13,792,572
4.3%
(1) The requirement for statistical data is ten years, only three years are available at this time.
97
CITY OF WEST UNIVERSITY PLACE, TEXAS '
FUND BALANCES, GOVERNMENTAL FUNDS '
Last Ten Years
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Total general fund
All Other Governmental Funds
Reserved
Unreserved, reported in:
Capital project
Nonmajor governmental funds
Total all other governmental funds
'
Fiscal
Year
1996
1997
1998
1999
$
44,931
$
88,752
$
-
$
48,059
4,029,705
3,875,695
4,394,820
4,173,141
$
4,074,636
$
3,964,447
$
4,394,820
$
4,221,200
$
8,914,850
$
7,699,519
$
13,927,927
$
10,951,602
1,074,588
1,884,809
199,695
(551,473)
266,694
424,134
294 254
400,884
$
10,256,132
$
10,008,462
$
14,421,876
$
10,801,013
1
98
Fiscal Year
2000 2001 2002 2003 2004 2005
$
58,934
$
7,364
$
80,544
$
2,148,781
$
1098,916
$
15,504
3,934,596
2,985,884
2,846,051
841,381
936,365
3.357,537
$
3,993,530
$
2,993,248
$
2,926,595
$
2,990,162
$
3,035.281
$
3,373,041
$
27,9153848
$
20,188,647
$
20,919,924
$
656,903
$
782,534
$
998,780
(81,464)
538,175
698,630
19,412,415
9,106,291
6,852,781
246,523
545,459
121,914
139,427
233,004
6831698
$
28,080,907
$
21,272,281
$
21,740,468
$
20,208,745
$
10,121,829
$
8,535,259
99
CITY OF WEST UNIVERSITY PLACE, TEXAS
CHANGES IN FUND BALANCE, GOVERNMENTAL FUNDS
Last Ten Years
(modified accrual basis of accounting)
Fiscal Year
1996 1997 1998 1999
Revenues
Taxes
$ 6,578,797 $
6,910,111 $
7,495,912 $
7,972,546
Pemits, licenses, and fees
336,588
421,159
558,469
396,484
Fines and forfeitures
324,502
367,165
184,813
307,058
Charges for services
1,887,703
1,488,771
702,131
796,763
Intergovernmental
44.236
565,919
125,318
650,459
'
Contributions
-
-
-
-
Investment earnings
762,240
1,100,372
1,120,750
1,288,324
Other revenues
294,059
281,251
317,661
343,348
Total revenues
10,228,125
11,134,748
10,505,054
11,754,982
Expenditures
General government
1,396,276
1,462,013
1,685,246
1,803,017
Public safety
2,763,358
2,900,458
2,892,950
2,.952,688
Public works
1,965,714
2,007,833
1,288,618
1,435,693
Public service
716,775
747,746
709;674
866,489
Capital outlay
7,261,742
2,993,082
5,890,116
5,560,612
Debt service
'
Principal
1,015,000
1,085,000
1,425,000
1,585,000
Interest
1,566,122
1,856,475
1,935,122
2,045,071
Total expenditures
16,684,987
13,052,607
15,826,726
16,248,570
Excess of revenues over (under) expenditures
(6,456,862)
(1,917,859)
(5321,672)
(47493,588)
Other Financing Sources (Uses)
Transfers in
1,676,000
1,430,000
1,310,390
1,172,500
Transfers out
(1,163,000)
(520,000)
(711,480)
(473,400)
issuance of debt
6,818,526
650,000
14,901,901
Premium on debt issued
-
-
-
Payment to refunded bond escrow agent
-
-
(5,335,352)
-
,
Sale of capital assets
-
-
Total other financing sources
7,331,526
1,560,000
10,165,459
699,100
357
859
$
843
787 $
4
488)
794
(3
Net change in fund balances
$ 874,664 $
,
)
(
,
,
,
,
Debt service as a percentage
of noncapital expenditures
27.39%
2924%
33.82%
33.96%
,
100
Fiscal Year
2000 2001 2002 2003 2004 2005
$ 8,987,973 $
9,963,477 $
11,534,667 $
12,416,216 $
13,263,355 $
13,803,975
496.677
472,081
386,124
444,886
577,164
597,910
274,001
276,815
319,388
243,931
193,322
186,844
914,686
901,544
1,074,335
1,086,952
974,549
1,165,967
1,055,425
259,000
277,769
307,784
1,392,662
387,779
-
-
_
-
-
268,081
1,015,579
1,720,839
655,918
511,267
336,967
457,078
268
553
389,693
603,217
387,897
451,551
212,924
,
297,609
13
13,983,449
14,851,418
15,398,933
17,189,570
17,080,558
,
1,777,263
1,981,486
2,0617227
1,952,308
2,211,183
2,268,862
3,525,192
4,019,282
4,336,152
4,701,684
4,616,019
4,769,582
1,490,417
1,515,164
1,500,127
1,631,434
1,642,867
1,582,592
987,209
896,309
941,302
1,015,026
1,255,857
1,579,982
6,473,002
12,886,880
13,583,834
13,107,808
11,882,057
2,5697023
1,780,000
1,880,000
2,185,000
2,295,000
2,6857000
2,900,000
2,058,343
2,812,336
3,130,630
31808,650
3,775,384
3,669,628
18,091,426
25,991,457
271738,272
28,511,910
28,068,367
19,339,669
(4,793,817)
(12,008,008)
(12,886,854)
(131112,977)
(10,878,797)
(2,259,111)
1,986,950
1,790,600
1,691,111
631,000
837,000
1,139,000
(1,173,842)
(991,500)
(1,002,861)
-
-
(269,000)
21,107,933
3,325,000
29,180,987
9,918,331
-
25,075,000
_
_
-
-
-
1,793,024
(16,397,937)
-
(26,751,058)
-
23,335
21,9217041
4,124,100
13,471,300
10,5491331
837,000
1,010,301
$ 17,127.224 $
(7,883,908)
$ 584,446 $
(2,563,646)
$ (10,041,797)
$ (1,248,810)
33.04%
35.81%
37.55%
39.62%
39.91%
39.17%
101
CITY OF WEST UNIVERSITY PLACE, TEXAS
TAX REVENUES BY SOURCE, GOVERNMENTAL ACTIVITIES
Last Ten Years
(modified accrual basis of accounting)
Fiscal Year
Function
1996
1997
1998
1999
Property
$ 5,437,391 $
5,650,077 $
6,054,801 $
6,610,664
Sales
454,906
537,074
627,443
531,246
Franchise fee
686,500
716.279
804,005
818326
Other taxes
6,681
9,663
12.310
$ 6.578,797 $
6,914111 $
7.495.912 $
7.972546
102
Fiscal Year
Change
2000
2001
2002
2003
2004
2005
2004-2005
$ 7,376,687 $
8,532,873 $
9,717
,905 $
11,481,442
$ 11,691,541
$ 12,128.801
3.7%
776,085
523,665
862
,325
758,987
683.573
745,716
9.1%
786,672
533,646
939
,577
873,649
872,221
913,998
4.8%
10,587
9,981
14
,860
18,303
16.020
15.460
-3.5%
$ 8,950.031 $
9,6W165 $
11,534
,667
13,132.381
$ 13,263,355
$ 13,803,975
4.1%
103
CITY OF WEST UNIVERSITY PLACE, TEXAS
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Years
Residential Property
Commercial Property
Less: Tax Exempt Property
Total Taxable Assessed Value (1)
Total Direct Tax Rate
1996
1997
1998
1999
$ 1,461,070200
$ 1,475,517,440
$ 1,497,313,260
$ 1,704,205,400
58,172,060
55,906,970
48,657,800
54,608,270
(67,2081700)
(63,727,640)
(59,326,660)
(56,106,070)
1,452,033,560
1,467,696,770
1,486,644,400
1,702,707,600
037000
0.38000
0.40000
0.42000
Source: Harris County Certified / Uncertified Tax Roll.
(1) Property is assessed at actual value, therefore, the assessed values are equal to actual value.
Tax rates are per $100 of assessed value.
104
2000
2001
2002
2003
2004
2005
$ 1,997,785,950
$ 2,224,515,970
$ 2,391,518,150
$ 2,544,734,110
$ 2,680,629,150
$ 2,816,526,599
56,534,900
64,388,870
60,317,070
52,571,420
56,271,940
79,232,269
280)
(57
022
(54,014,970)
(54,426,270)
(79,831,440)
(80,402,800)
(128,158,556)
,
,
1,997,298,570
2,234,889,870
2,397,408,950
2,517,474,090
2,656,498,290
2,767,600,312
0.41000
0.42000
0.42000
0.43000
0.44670
0.43000
105
CITY OF WEST UNIVERSITY PLACE, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Years
City of West University Place by fund:
General
Debt service
Total Direct Rates
Houston Independent School District
Harris County
Harris County Flood Control District
Port of Houston Authority
Harris County Hospital District
Harris County Dept. of Education
Houston Community College
Total Direct and Overlapping Rates (1)
Tax rates per $100 of assessed valuation
Source: Harris County Appraisal District
1996
1997
1998
1999
0.21000
0.21000
0.21000
0.21000
0.16000
0.17000
0.19000
0.21000
0.37000
0.38000
0.40000
0.42000
1.38400
1.38400
1.38400
1.45900
0.40680
0.42770
0.41870
0.39480
0.07600
0.07420
0.07420
0.08000
0.01850
0.01600
0.01960
0.02130
0.12380
0.12380
0.12380
0.14650
0.05868
0.06615
0.06615
0.06615
2.43778
2.47185
2.48645
2.58775
(1) Overlapping rates are those of local and county governments that apply within the City of West
University Place.
106
2000
2001
2002
2003
2004
2005
0.20000
0.20500
0.19500
0.19000
0.19670
0.20100
0.21000
0.21500
0.22500
0.24000
0.25000
0.22900
0.41000
0.42000
0.42000
0.43000
0.44670
0.43000
1.51900
1.51900
1.58000
1.58000
1.58000
1.62000
0.39480
0.35900
0.38390
0.38810
0.38800
0.39986
0.08000
0.06170
0.04760
0.04170
0.04170
0.03322
0.02040
0.01830
0.01830
0.01990
0.02000
0.01474
0.14650
0.20270
0.19020
0.19020
0.19020
0.19216
_
_
_
_
_
0.00629
0.08233
0.08133
0.08133
0.08133
0.09598
0.09577
2.65303
2.66203
2.72133
2.73123
2.76258
2.79204
107
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108
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11
11
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1
0
11
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1
1
1
ll
11
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11
CITY OF WEST UNIVERSITY PLACE, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Three Years Ago
2005
Property Tax Paver
Southwestern Bell
U West Marketplace Assoc
CenterPoint Energy, Inc.
5650 Kirby Partnership
Kenneth and Kimberly Alo
Southwestern Bell Tele Co
Whole Foods Market
Max & Christine Lukens
Willowick Partners LTD
James and Karen Gerstner
Houston Lighting & Power
Bellaire Shopping Center
Bardwell Building
Frank and Lillian Orson
James L. Salners
Gary and Tracy Stein
Paul & Jeanine Van Wagenen
Subtotal
Other Taxpayers
Total
Taxable
Assessed
Value
Rank
2
3
4
5
6
7
8
9
10
n/a
n/a
n/a
n/a
n/a
n/a
n/a
% of
Taxable
Assessed
Value
0.31%
0.18%
0.16%
0.15%
0.13%
0.09%
0.09%
0.09%
0.08%
2002
Taxable
Assessed
Value Rank
$ 19,706,640 1
3,775,690
0.08% 2,057,000
4,378,000
3,979,290
3,370,100
2,551,200
2,424,900
2,012,300
1,936,000
4
8,957,200
5,357,095
4,756,050
4,474,771
3,747,900
2,679,650
2,480,520
?,466,234
2,406,481
2,380,400
$ 39,706,301
2,856,052,567
$ 2,895,758,868
Source: Harris County Tax Assessor-Collector's records.
1.37% $ 46,191,120
98.63% 272537821,520
100.00% $ 2,300,012,640
8
2
3
5
6
7
9
10
% of
Taxable
Assessed
Value
0.86%
0.16%
0.09%
0.19%
0.17%
0.15%
0.11%
0.11%
0.09%
0.08%
2.01%
100.00%
109
CITY OF WEST UNIVERSITY PLACE, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
1996
1997
1998
1999
Taxlevy
$
5,373,916
$
5,628,421
$
6,022,837
$
6,564,512
Current tax collected
$
5,340,911
$
5,386,852
$
5,9807947
$
6,524,907
Percent of current tax collections
99.39%
95.71%
99.30%
99.40%
Delinquent tax collections
$
31,563
$
239,786
$
39,622
$
34,583
Total tax collections
$
5,372,474
$
5,626,638
$
6,020,569
$
6,559,490
Total collections as a
percentage of current levy
99.97%
99.97%
99.96%
99.92%
Outstanding delinquent taxes
$
1,442
$
1,783
$
2,268
$
5,022
Outstanding delinquent taxes
as percentage of current levy
0.027%
0.032%
0.038%
0.077%
110
2000
2001
2002
2003
2004
2005
7,305,615
$
8,703,604
$
9,630,400
$
10,680,077
$
11,581,528
$
12,192,921
7,255,353
$
8,655,130
$
9,582,032
$
10,629,260
$
11,516,657
$
12,124,169
9931%
99.44%
99.50%
99.52%
99.44%
99.44%
43,293
$
41,388
$
34,435
$
29,204
$
43,992
$
4,026
7,298,646
$
8,696,518
$
9,616.467
$
10,658,464
$
11,560,649
$
12,128,195
99.90%
99.92%
99.86%
99.80%
99.82%
99.47%
6,969
$
7,086
$
13,933
$
21,613
$
20,879
$
64,726
0.095%
0.081%
0.145%
0.202%
0.180%
0.531%
CITY OF WEST UNIVERSITY PLACE, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Three Years (1)
PRIMARY GOVERNMENT
Governmental Activities:
General obligation bonds
Certificates of obligation
Subtotal
Business-Type Activities:
Revenue bonds
TOTAL PRIMARY GOVERNMENT
PERSONAL INCOME (2)
DEBT AS A PERCENTAGE
2003 2004 2005
$ 64,715,000 $ 62,120,000 $ 59,095,000
13,140,000 11050,000 12,855,000
$ 77,855,000 $ 75.170,000 $ 71,950,000
$ 15,995.000 $ 15,455,000 $ 15,255,000
$ 93,850.000 $ 9025,000 $ 87,205,000
OF PERSONAL INCOME - - -
POPULATION 14,211 14,211 14,211
DEBT PER CAPITA $ 6,604 $ 6,377 $ 6,136
(1) The requirement for statistical data is ten years; only three years are available at this time.
(2) Personal income data is not available.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
112
II
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113
CITY OF WEST UNIVERSITY PLACE, TEXAS
RATIO OF NET BONDED DEBT TO ASSESSED VALUE,
NET BONDED DEBT PER CAPITA, AND ASSESSED
AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Years
1996 1997 1998 1999
NET TAXABLE ASSESSED VALUE
A] I property
$ 1,450,131,620
$ 1,481,163,540
$ 1,505,694,530
$ 1,567,24000
NET BONDED DEBT
Gross bonded debt
$ 33,930,000
$ 32,760,000
$ 41,020,000
$ 39,045,000
Less debt service funds
1,102.160
938,753
636,948
811,335
Net Banded Debt
$ 32,8271840
$ 31,821,247
$ 40,383,052
$ 38,233,665
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE
POPULATION
NET BONDED DEBT PER CAPITA $
2.26%
12,920
2,541 $
2.15% 2.68% 2.44%
12,920 12,920 12,920
2,463 $ 31126 $ 2,959
114
2000 2001 2002 2003 2004 2005
$ 1,781,467,580 $ 2,022,417,900 $ 2,300,012,640 $ 2,488,976,270 $ 2,517,474.090 $ 2,895,758,868
$ 58,475,000 $
60,050,000 $
707250,000 $
76,705,000 $
75,170,000 $
71,950,000
838,547
633.071
567,825
656,144
782,534
996,927
$ 57,636,453 $
59,416.929 $
69,682,175 $
76,048,856 $
74,387,466 $
70,953,073
3.24%
2.94%
3.0j%
106%
2.95%
2.45%
14,211
14,211
14,211
14,211
14,211
14,211
$ 4,056 $
4,181 $
4,903 $
5,351 $
5,234 $
4,993
115
CITY OF WEST UNIVERSITY PLACE, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2005
Governmental Unit
Debt repaid with property taxes
Houston ISD
Harris County (2)(3)
Harris Co. Flood Control District (3)
Port of Houston Authority (3)
Subtotal, overlapping debt
City direct debt
Total direct and overlapping debt
Estimated
Debt Percentage
Outstanding Applicable (1)
Estimated
Share of
Overlapping
Debt
$ 1,770,218,000 2.800% $ 49,566.104
2,229,939,000 1.120% 24,975317
391,8951000 1.120% 4,389,224
294,700,000 1.920% 5,658,240
71,950,000 100.000%
Source: Harris County
(1) Estimated Percentage Applicable obtained from Municipal Advisory Council of Texas.
(2) Excludes Toll Road Tax Bonds. The County's policy and practice has been to provide payment of
debt service on the outstanding Toll Road Tax Bonds from toll revenues and certain other funds, and
to date, no tax has been collected to provide for such debt service.
(3) Debt outstanding is as of December 31, 2005
84,588,885
71,950,000
156.538.885
116
CITY OF WEST UNIVERSITY PLACE, TEXAS
LEGAL DEBT MARGIN INFORMATION
Last Three Years (1)
2003
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Legal Debt Margin Calculation for Fiscal Year 2005
Assessed value
Debt limit (5% of assessed value)
Debt applicable to limit:
General obligation bonds
Less: amount set aside for
repayment of general
obligation debt
Total net debt applicable to limit
Legal debt margin
Fiscal Year
2005
$ 124,448,664 $ 125,873,705 $ 144,787,943
76,048,856 74,387,466 701953,073
$ 48,399,808 $ 51,486.239 $ 73.834,870
61.11%
$ 2,895,758,868
144,787,943
71,950,000
(996,927)
70,953,073
$ 73,834,870
Note: The City's Home Rule Charter (1983), Section 7.07 limits all bonded debt to no more than 5%
of the assessed valuation.
(1) The requirement for statistical data is ten years, only three years are available at this time.
59.10% 49.00%
117
CITY OF WEST UNIVERSITY PLACE, TEXAS
PLEDGED-REVENUE COVERAGE
Last Ten Years
1996 1997
Gross revenues (1) $ 3,133,575 $ 2,968,012 $
Operating expenses (2) $ 2,429,479 $ 1,990,369 $
Net revenues available for Debt $ 704,096 $ 977,643 $
Service
DEBT SERVICE REQUIREMENTS (3)
Principal $
Interest _
Total $
Coverage
(1) Total revenues including interest, excluding tap fees
(2) Total operating expenses less depreciation
(3) Includes revenue bonds only
1998 1999
3,366 410 $ 3,413,889
2,360,258 $ 2,297,558
1,006,152 $ 1,116,331
$ 5,000 $ 220,000 $ 225,000
251,590 316,630 484,177
$ 256,590 $ 536,630 $ 709,177
3.81 1.87 1.57
118
2000
$ 3,427,821 $
$ 2,613,128 $
$ 814,693 $
2001
2002
2003
2004
2005
3,274,339 $
3,358,111 $
3,106,875 $
4,204,407 $
5,098,008
21352,802 $
2,469,348 $
2,359,745 $
2,565,022 $
2,780,664
921,537 $
888,763 $
7471130 $
1,639,385 $
2,317,344
$ 335,000 $
350,000 $
360,000 $
510,000 $
540,000 $
565,000
510,759
489,684
801,739
765,160
740,339
714,225
$ 845,759 $
839,684 $
1,161,739 $
1,275,160 $
1,280,339 $
1,279,225
0.96
1.10
0.77
0.59
128
1.81
119
CITY OF WEST UNIVERSITY PLACE, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Years
Fiscal Year
Ended
Personal
Dec 31
Population(1) lncome(5)
1996
12,920 $ $
1997
12,920
1998
12,920
1999
12,920
2000
14,211
2001
14,211
2002
14,211
2003
14,211
2004
14,211
2005
14,211
Per Capita
Personal
Median
School
Unemployment
lncome(2)
Age (6)
Enrollment(3)
Rate(4)
44,165
N/A
885
1.30%
45,049
N/A
885
0.90%
45,950
N/A
885
0.90%
46.869
N/A
952
1.10%
47.806
39.30
950
0.07%
48.762
39.30
947
1.06%
49,737
39.30
915
1.06%
50,732
39.30
915
1.06%
51,747
39.30
951
4.60%
52,782
39.30
972
6.00%
Data sources:
(1) Bureau of the Census
(2) Claritas
(3) The school enrollment reflects enrollment in schools located within the City limits.
(4) Texas Workforce Commission
(5) Personal income data are not available.
(6) Median age data prior to 2000 are not available.
120
CITY OF WEST UNIVERSITY PLACE, TEXAS
PRINCIPAL EMPLOYERS
Current Year (1)
Southwestern Bell
West University Elementary School
City of West University Place
Note: The residents of the City of West University Place are primarily employed outside of the City limits.
(1) The requirement is for the current year and nine years aQo, only the current year is available at this time.
121
CITY OF WEST UNIVERSITY PLACE, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BYFUNCTION/PROGRAM
Last Ten Years
Fiscal Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
General Fund:
Administration
3
3
3
3
4
4
4
4
4
4.5
Finance
12
12
10
10
10
10
9
9
9
9
Police Department
28
28
28
28
35
35
36
35
35
34
Fire Department
20
20
20
21
21
20
20
23
24
24.5
Public Works
23
21
22
22
23
22
23
23
21
21
Parks & Recreation
6
6
6
6
6
6
6
6
8
8
General Fund Total
92
90
89
90
99
97
98
100
101
101
Enterprise Fund
Water
15
15
15
15
14
14
15
14
14
14
Solid Waste
9
9
9
9
10
10
10
10
10
7
Enterprise Fund Total
24
24
24
24
24
24
25
24
24
21
TOTAL CITY
POSITIONS
116
114
113
114
123
L1
123
124
125
122
NOTES:
Around 20-35 temporary and seasonal employees are hired during the summer months
as camp counselors, pool personnel and front desk. This count is not reflected above.
Around 6 Contract personnel are used year round to augment
solid waste crews. This count is not reflected above.
On-call firefighters (9) are not included.
School crossing guards (8) are not included.
122
CITY OF WEST UNIVERSITY PLACE, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Three Years (1)
Fiscal Year
2003 2004 2005
Function / Program
Police
Arrests
Accident reports
Citations
Offense reports
Calls for service
Fire
Emergency responses
Fire incidents
Average response time
Water
New accounts
Source
Average daily consumption
(millions of gallons)
Number of million gallons of surface water pumped
Number of million gallons of well water pumped
Total consumption (millions of gallons)
Peak daily consumption
(millions of gallons)
Sewer
Average daily sewage treatment
(millions of gallons)
Total consumption (millions of gallons)
Peak daily consumption
(millions of gallons)
145
321
366
186
139
138
5,235
3,675
31583
804
1,018
1,027
10,896
11,353
13,688
447
659
624
650
655
776
230
3:08
3:08
879
915
760
80% surface water
20% well water
2.170
2.170
2.279
696.694
674.705
735.622
174.103
117389
101.457
870.797
792.094
837.079
5.990
5.990
8.640
1.354
1.423
1271
0.000
0.000
452.618
4.685
5.123
4.684
Source: Various City departments
(1) The requirement for statistical data is ton years; only three years are available at this time.
123
CITY OF WEST UNIVERSITY PLACE, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Three Years (1)
Function / Program
Police
Stations
Patrol units
Fire stations
Other public works
Streets (miles - centerlines)
Streetlights
Parks and recreation
Parks
Parks acreage
Swimming pools
Baseball / softball diamonds
Tennis courts
Racquetball/handball courts
Gymnasiums
Basketball courts
Water
Water mains (miles)
Fire hydrants
Storage capacity (millions of gallons)
Sewer
Sanitary sewers (miles)
Storm sewers (miles)
Open ditch / creek / canal drainage (miles)
Treatment capacity (millions of gallons)
Fiscal Year
2003 2004
1
1
1
9
9
7
1
1
1
43.0
43.0
43.0
690
690
690
9
9
9
12.6
12.6
12.6
2
2
2
5
5
5
5
5
5
2
2
2
I
7
1
2
2
2
40.0
40.0
40.0
324
357
357
165
3.65
165
40.0
40.0
40.0
32.0
32.0
32.0
1.32
1.32
1.32
2.00
2.00
2.00
Source: Various City departments
(1) The requirement for statistical data is ten years; only three years are available at this time.
124