HomeMy WebLinkAboutRes 15-04 Approving the Comprehensive Annual Financial Report Year Ending September 30, 2014TOWN OF WESTLAKE
RESOLUTION NO. 15-04
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE,
TEXAS, ACCEPTING THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
PRESENTED BY WEAVER AND TIDWELL, L.L.P., FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, 2014.
WHEREAS, Section 103.001 of the Local Government Code requires that a
municipality shall have its records and accounts audited annually and shall have an annual
financial statement prepared based on the audit; and
WHEREAS, Section 103.002 of the Local Government Code requires that a
municipality shall employ at its own expense a certified public accountant who is licensed in this
state or a public accountant who holds a permit to practice from the Texas State Board of
Public Accountancy to conduct the audit and to prepare the annual financial statements; and
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF WESTLAKE:
SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true
and correct and are incorporated herein by reference as if copied in their entirety.
SECTION 2: That the Town Council does hereby accept the Comprehensive Annual
Financial Report from Weaver and Tidwell, L.L.P., for the fiscal year ended September 30,
2014, attached as Exhibit "A".
SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid
by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions
hereof and the Council hereby determines that it would have adopted this Resolution without
the invalid provision.
Resolution 15-04
Page i of 2
SECTION 4: That this resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED ON THIS 2"d DAY OF MARCH, 2015.
ATTEST:
Kelly kdwardsorown Secretary
4(t4�Aa(� -
La4a Wheat, Mayor
Thomas . 11
e n Manager
Resolution 15-04
Page 2 of 2
IN
THE TowN OF
ESTLAE
a tocti- 1-0 1, cl th %I Ui W -Ii - I ci I ci t i I
_
SEPTEMBER 30, 2014
MOVING FORWARD
� T06EiHER...
n
M..
Growing
Community...
The Town of Westlake * 3 Village Circle #202 * Westlake, Texas 76262 * www.westlake-tx,org
TOWN OF WESTLAKE
TOWN OF WESTLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2014
Prepared by:
Town of Westlake
Finance Department
3 Village Circle, Suite 202
Westlake, Texas 76262
TOWN OF WESTLAKE
TOWN OF WESTLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement
Organization Chart
Town Officials
II. FINANCIAL SECTION
Independent Auditor's Report
A. MANAGEMENT'S DISCUSSION AND ANALYSIS
B. BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balance
Reconciliation of the Statement of Revenues, Expendituresand Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Proprietary Funds Financial Statements
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Net Position
Statement of Cash Flows
Discretely Presented Component Units Financial Statements
Combining Statement of Net Position
Combining Statement of Activities
Notes to the Basic Financial Statements
C. REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- General Fund
Schedule of Revenues, Expentitures and Changes in Fund Balance -
Budget and Actual - Westlake Academy
Notes to Required Supplementary Information
Schedule of Funding Progress - Texas Municipal Retirement System
D. COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Major Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Debt Service Fund
Nonmajor Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Exhibit Page
i
viii
ix
x
1
4
A-1 17
A-2 18
A-3 20
A-4 22
A-5 23
A-6 25
A-7 26
A-8 27
A-9 28
A-10 29
A-11 31
33
B-1 69
B-2 70
71
B-3 72
C-1 73
C-2 75
C-3 76
Table of Contents - Continued
Exhibit Page
Nonmajor Special Revenue Funds
Budgetary Comparison Schedules
Visitors Association Fund C-4 77
Lone Star Public Facilities Corporation Fund C-5 78
Economic Development Fund C-6 79
4B Economic Development Corporation Fund C-7 80
III. STATISTICAL SECTION
Exhibit
Net Position By Component
S-1
82
Changes in Net Position
S-2
83
Fund Balances, Governmental Funds
S-3
85
Changes in Fund Balances, Governmental Funds
S-4
86
Assessed Value and Estimated Actual Value of Taxable Property
S-5
88
Principal Property Tax Payers
S-6
89
Property Tax Levies and Collections
S-7
90
Direct and Overlapping Property Tax Rates
S-8
91
Taxable Sales by Industry Type
S-9
92
Ratios of General Bonded Debt Outstanding
S-10
93
Ratios of Outstanding Debt by Type
S-11
94
Direct and Overlapping Governmental Activities Debt
S-12
95
Demographic and Economic Statistics
S-13
96
Principal Employers
S-14
97
Full -Time Equivalent City Government Employees by Function/Program
S-15
98
Operating Indicators by Function/Program
S-16
99
Capital Asset Statistics by Function/Program
S-17
100
Town of Westlake
February 17, 2015
Honorable Mayor, Council Members and the Citizens of the Town of Westlake,
The Town of Westlake (the "Town") Fiscal and Budgetary Policies require that the Town's Finance
Department prepare a complete set of financial statements presented in conformity with generally
accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing
standards by a firm of licensed certified public accountants. Accordingly, the Comprehensive Annual
Financial Report (CAFR) for the Town of Westlake, Texas for the fiscal year ended September 30,
2014, is hereby issued.
This report consists of management's representations concerning the finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making representations, the
Town established a comprehensive internal control framework that was designed both to protect the
Town's assets from loss, theft or misuse and to compile sufficient reliable information for the
preparation of the Town's financial statements in conformity with GAAP. Because the cost of
internal controls should not outweigh their benefits, the Town's comprehensive framework of internal
controls has been designed to provide reasonable, rather than absolute, assurance that the financial
statements will be free from material misstatements. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The Town's financial statements have been audited by Weaver and Tidwell, L.L.P. The goal of the
independent audit was to provide reasonable assurance that the financial statements of the Town for
the fiscal year ended September 30, 2014, were free of material misstatements. 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 unmodified opinion that the Town's
financial statements for the fiscal year ended September 30, 2014, were fairly presented in conformity
with GAAP. The independent auditors' report is presented as the first component of the financial
section of this report.
This report is presented in three sections: Introductory, Financial and Statistical. The Introductory
Section includes this transmittal letter, the prior year GFOA Certificate of Achievement, a listing of
Town Officials, and an organizational chart of the Town. The Financial Section includes the
independent auditor's report on the basic financial statements, Management's Discussion and
Analysis (MD&A), basic financial statements, the notes to the basic financial statements, and
combining and individual fund statements and schedules. The MD&A is a narrative introduction,
containing overview and analysis to accompany the basic financial statements. This letter of
transmittal is designed to complement, and should be read in conjunction with the MD&A. The
Town of Westlake's MD&A can be found immediately following the independent auditor's report.
The Statistical Section includes financial and demographic information relevant to readers of the
Town's financial statements. The statistical data is generally presented on a multi-year basis.
Profile of the Town
Minutes from downtown Fort Worth, Texas and Dr
International Airport, the Town of Westlake is home to
several upscale residential communities and Fortune 500
companies, all of which share a unique character and
charm, along with a commitment to excellence. The
Town is located in northeast Tarrant County and may be
conveniently accessed by several major thoroughfares,
including SH 114 and US 377. The Town occupies
approximately 7 square miles and serves a population of approximately
appraised home value of $1.2 million.
1,100 with an average
The Town, incorporated in 1956, is considered a Type A general -law municipality. The Town
operates under the Council -Manager form of government. The Council is comprised of a mayor and
five (5) council members and is responsible for, among other things, passing ordinances, adopting the
budget, appointing committees, and hiring the Town Manager. The Town Manager is responsible for
carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of
the Town and appointing and supervising heads of various departments. The Mayor and Town
Council members serve two (2) year terms. All elected officials are elected at -large.
The financial reporting entity (the government) includes all funds of the primary government (i.e. the
Town of Westlake), as well as all of its component units. Component units are legally separate
entities for which the primary government is financially accountable. The following entities are
considered blended component units:
Lone Star Public Facilities Corporation is a Texas nonprofit corporation that acts on behalf of the
Town to further the public purposes under the Public Facilities Corporation Act, as it's duly
constituted authority and instrumentality. The board of directors, appointed by the Town's governing
body, is comprised of seven members, of whom five must be members of the Town's governing
body.
4B Economic Development Corporation is a Texas nonprofit industrial corporation under the
Development Corporation Act of 1979 formed to promote economic development within the Town
and the State of Texas in order to eliminate unemployment and underemployment, and to promote
and encourage employment and the public welfare of, for, and on behalf of the Town by developing,
implementing, financing, and providing one or more projects defined and permitted under Section 4B
of the Act. The board of directors is composed of seven persons appointed by the members of the
Town's governing board. Four of the members of the board of directors are members of the Town's
governing board.
Westlake Academy (Academy) is an open -enrollment charter school, as provided by Subchapter D,
Chapter 12, of the Texas Education Code. The Town of Westlake ("Charter Holder") applied for and
became the first municipality in Texas to ever receive this special charter designation. The Academy
had 658 students in FY 13-14 and serves Kindergarten through 12th grade. The Academy graduated
their first class in FY 09-10. The Board consists of six (6) trustees and is appointed by the Town's
governing body. Currently, all members of the board of trustees are members of the Town's
governing body. The Academy's year-end is August 31.
Discretely presented component units are legally separate entities and not part of the primary
government's operations. These component units are as follows: Texas Student Housing Authority -
Ballpark Austin Project, Texas Student Housing Authority -The Ridge at North Texas, Texas Student
Housing Authority -Town Lake Austin Project, Texas Student Housing Authority -Cambridge at
College Station, and Texas Student Housing Authority.
Services Provided
The Town provides to its citizens those services that have proven to be necessary and meaningful and
which the Town can provide for the least amount of cost. Major services provided under the general
government and enterprise functions are: Fire and emergency medical services, police, water and
sewer utility services, park and recreational facilities, street improvements, education and
administrative services. The Town utilizes a combination of direct service delivery along with out-
sourced services in its service delivery mix. The decision as to which service to deliver directly
versus out -sourcing is based on analysis of cost-effectiveness, citizen responsiveness, and customer
service quality.
Economic Conditions and Outlook
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the environment within which the Town operates.
Local Economy
The Town staff is aware that the Town of Westlake does not create wealth, but instead, is entrusted
with public dollars collected on behalf of our citizens. We are stewards who are fully vested in the
success of the Town of Westlake and Westlake Academy. We exist as a municipal corporation for
one reason and one reason only: to prioritize and deliver the best services possible with the resources
provided to achieve an exceptional quality of life. This is a challenge the staff takes very seriously,
one that we pursue with vigor every day. Over the previous fiscal year, the Town has achieved and/or
is continuing to work toward important initiatives and projects that will allow us to balance our
"distinctive development, trails, and quality of life amenities amidst an ever expanding urban
landscape." These include:
Achievement and recognition for our transparency efforts and our fiscal stewardship through
receipt of the following:
o Distinguished Budget Presentation Award from the Governmental Finance Officers
Association (GFOA) marking the 7th year in a row that we have received this honor for our
municipal budget and the 5th year for our educational services budget (Westlake
Academy).
o International Award for Budget Excellence from the Association of School Business
Officials International for the past five years.
o Certificate of Achievement for Excellence in Financial Reporting for our Comprehensive
Annual Financial Report (CAFR), also known as the annual audit, which has also been
recognized through GFOA for the last seven years.
o Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR), by
converting much of the CAFR document into an easy -to -read format for our residents.
This was the Town's second year to achieve this award.
• Invested in an update of our current Comprehensive Planning document as we began working
with the Town Council, residents, and appointed steering committee members to memorialize
our community vision in the new document. Our current version was compiled in 1992 and
many changes have occurred since that time. Progress continues through the facilitation efforts
of an outside consultant and the committee with the final completion planned for FY 2014-15.
® Invested in the third iteration of our strategic plan through the use of the Balanced Scorecard
system. Council members worked with an outside consultant to create strategic themes and
updated our vision, mission, and values statements for Westlake. Staff then identified outcome
objectives, created a Tier One Strategy Map, and developed performance measures for Council
adoption.
4� Invested in the Town's open enrollment charter school as Westlake Academy, completed its 1 lth
year of operation and graduated our 5th class of seniors with 53 students.
o Westlake Academy continues to have excellent academic and extra -curricular results and
is ranked among the best high schools in America: Washington Post ranked us as 36th out
of 1,900 schools across the nation.
Invested in the Town's CIP ($10.5M) mainly through focus on the expansion of our physical
plant at Westlake Academy ($8.2).
o Invested approximately $1.6M in streetscape improvements on FM 1938 (Davis Blvd)
with median plantings and sidewalk installation, which is now in its final stages of
completion.
o Invested a total of $500K in the Town's infrastructure through enhancements on SH
114/170 in partnership with our surrounding communities for bridge and overpass
paintings, plantings in medians and entry monuments.
® Installation of a secondary ground storage water tank for future sustainability and service
provision levels.
FY 2014-15 Short Term Trends and Planning
Over the history of our Town, municipal budgets have been prepared with an eye toward being
fiscally conservative, while providing the high quality customer service that our residents have come
to expect in Westlake. As a component of our budgets, we also identify current trends to be stewards
of our community. Some of these factors can be found below:
Reinvestment in our community through the replacement of our fire pumper truck
during the coming fiscal year. As our rolling stock continues to age, we will need to
reinvest in our assets in order to maintain the exceptional levels of service we strive to deliver.
The replacement truck will allow us to rotate the current vehicle to a back-up status as it is
experiencing multiple repair events.
iv
C
Housing Start Increases: Westlake is expecting
continued single family residential construction as a
result of Granada. This is depicted in the side -chart —
prerecession starts were at 38 per year and we are
estimating 50 for the coming fiscal year.
Number of
Housing Starts
10 12
40
M
FY FY FY FY FY FY
Permanent Population Growth: The North Central o9/1n 10/11 11/12 12/13 13/14 14/16
do
Council of Governments has updated Westlake's 2010
Census from 992 to 1,051. This is the portion of our population that is considered to be our
permanent residence. An increase in population of 210 in 1990 to the present 1,051
represents a 400% increase.
Daytime Population: Because Westlake is the home of many major corporate office
campuses, its Monday -Friday daytime population swells to approximately 10,000 - 12,000
individuals. These office complexes are comprised of notable corporate clients that include
Deloitte LLP, Core Logic and Fidelity Investments. Staff will continue to monitor our
corporate stakeholders and attempt to identify avenues
to strengthen these relationships and assist in drawing Number of Westlake Students z 274
d
A
k
tl
Wesae Academy new corporations to Westlake. in 215
o Continued Impact of Westlake Academy on
Residential Growth: The number of Westlake residents
who are selecting Westlake Academy as the educational
choice for the students has doubled in the past five
years. Resident surveys indicate that the Academy is
155 164
FY FY FY FY FY FY
09/10 10/11 11/12 12/13 13/14 14/1s
one of the main reasons they moved to Westlake, and why they plan to remain in our
community.
o Increase in Westlake Academy Overall Enrollment:
The Academy has experienced steady enrollment
growth from 491 in SY 2009-10 to a projected 822 in
SY 2014-15. The current increase of student
population is a result of the Phase I expansion efforts
on the Academy campus. We are completing the
construction of three buildings that will accommodate
the new students. The lottery waiting list for
admissions continues to grow from 700 in 2010 to
over 2,100 students for this coming school year.
Waiting List for
Westlake Academy
2079 2177
12f5
� g�4 705
FY FY FY FY FY FY
08/09 09/10 10/11 11/12 12/13 13/14
Completion of Phase I Facility Improvements: Construction will be complete and
operational for the fall school year. The approximately 39,000 sq. ft. of new facilities
comprised of a secondary classroom building, field house, and primary years' multi -use
building will allow for decompression of our current facilities.
® Continued work on the Comprehensive Plan: The Town's current 1992 Comprehensive
Plan is in the process of review and updating. The Comprehensive Plan serves as the "blue
print" for planning and growth. We have convened a steering committee and held public
meetings to discuss the plan elements and expect to be complete within the current fiscal year.
V
Continued emphasis on long-range financial planning: The FY14-15 budget contains an
updated Long -Range Financial Forecast which identifies key revenue and expenditure drivers
while assessing historical financial trends and their potential impact upon the town's financial
stability. Staff continues to produce a quarterly financial report for the Town Council that
monitors and analyzes trends in the General Fund, Utility Fund, and Visitor Association Fund.
The report serves as a tool to assist in developing a proactive, instead of reactive, approach to
changing financial trends.
Continue to explore new ways to combat spiraling health care costs: Costs have been
increasing at an unsustainable level of 10 to 25% per year, and employee plan design changes
are inevitable. Recently a comprehensive evaluation of the Town's health insurance costs was
conducted and ultimately the decision was made to continue with Blue Cross Blue Shield.
Long Term Visioning for FY 2014-2015 and Beyond
Long range planning and visioning is vital to the sustainability of any community and Westlake has a
bright outlook for our future — much of this based on our governing board, residential commitment to
our Town and the diligence of our staff members. The following trends will be important to our
growth and development:
o Continued Permanent Population Growth - We anticipate the trend toward growth will
continue as our existing lot inventory continues to be a scarce commodity. In addition, the
aforementioned residential and mixed-use developments have the potential to significantly
increase our permanent population.
Management of Development — As the economy and the surrounding cities in the Metroplex
experience commercial development and the influx of individuals continues to make the North
Texas Region their home, we will need to manage our distinctive housing developments to
ensure we maintain our community as an `oasis of natural beauty' as contained in our Vision
statement.
Implementation of the Comprehensive Plan — As mentioned in the short term trends, the
Town will complete the updating of our Comp Plan and will transition into the application
phase of the recommendations and feedback from our Comprehensive Plan Steering
Committee, residents and stakeholders, Planning & Zoning Committee Members, and our
Town Council. This will include the update of the applicable ordinance documents that will
help guide our future developments and all the corresponding plan elements.
® Oversight of Enrollment Demands at Westlake Academy — As it becomes necessary with
the rollout of Phase II of the Facility Master Plan, staff and the Council will plan for our long
term visioning of the school to ensure each child reaches their `highest individual potential' as
a student at Westlake Academy. The impact of new housing developments and population
growth will continue to drive our capital projects in the future.
Users of this document, as well as others interested in the programs and services offered by the Town
of Westlake, are encouraged to read the Town's Fiscal Year 2014-2015 Budget. The budget details
the Town's long-term goals and financial policies, and describes program accomplishments and
initiatives.
Vi
Other Information
The Government Finance Officers Association of the United States of America and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Westlake
for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2013.
This was the seventh year the Town 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 (CAFR) continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to GFOA to determine its eligibility for another
certificate.
In addition, we also received our seventh GFOA Distinguished Budget Presentation Award for the
fiscal year beginning October 1, 2013 for our municipal budget and the 5th year for our educational
services budget for Westlake Academy, a component unit of the Town. In order to qualify for the
Distinguished Budget Presentation Award, the Town and Academy budget documents had to be
judged proficient as a policy document, a financial plan, an operations guide, and a communications
device.
Westlake Academy has also received recognition from the Association of School Business Officials
International as a recipient of the International Award for Budget Excellence for the past five years.
The Finance Department received its second Popular Annual Financial Report (PAFR) converting
much of the FY 2012-2013 audit document into an easy -to -read format for our residents. The goal is
to encourage resident awareness as it relates to Town finances through the condensed version of the
budget. The report provides an "overview of our financial position and policies, and conveys our
commitment to delivering responsive services and programs in a fiscally responsible manner."
Acknowledgements
The preparation of this report could not be accomplished without the efficient and dedicated services
of the entire staff of the Finance Department. Appreciation is expressed to Town employees
throughout the organization, especially those employees who were instrumental in the successful
completion of this report.
The staff would also like to thank the Mayor and Town Council for their conservative leadership and
their support in planning and conducting the financial operations of the Town in a responsible and
progressive manner.
Respectfully Submitted,
Tom Brymer
Town Manager
Vii
Debbie Piper, CPA
Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Westlake
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2013
Executive Director/CED
Town
Attorney
Executive Principal
DirecturofEducatian
Asst Fri napal
Athletic Director
Directarof Cu rric ul urn
A t—tr—tinn
Uoo rd in ator
Ad,nWn tati+c
StafF
Nurse
PYP Primary
Principal
Ccc:-d'ro'Y_-
rd.0 .113GOC
Tcsec9�c-s
MYP Secondary
Principal
MA'R
�i6af4�8lit0.
�r
Tead�crs
Town Secretary
Communications
Ccrnmwiicat;an
Planning,&
Development/
8uiIdinglnspactor
Human Resources
'ac�r.st
Information
Technology
WA'shnura—
P'ol ice Services
ycurtrade� ]Fxr: tYe
etv a ��1
Executive Director
(
WA Foundation
I Assism.t
Texas Studarrt
Housing
Assistant Tcmm
Manager
tntrn
-t
AdmeetcsBamar
Jude Mar -.hat
Y Twa ISCal
Co -t 0-k.
IX
Public Wades
ra�.1.3iVlier �]ed4!Ge
Cmudese t- 1331 ediaua3n
C—t xrrce
R.w--P W- 1331
Finance
M—fdw
Service
Excellence
Public Service that
is Responsive and
Professional,
while balancing
Effidency,
Effectiveness
and Financial
Stewardship
Exemplary
Governance
Facilities Maintenance
Town Ofi`i€rail,
f Parks& R42 creation
Bath Elected
and App—dented,
c_s--Tt- E's ra
I
Exhibit Respect,.
0-6—t..- 5331
, eclnn c:m JI
Stewardship,
-ce
A.�r�t — {331
Transpare'I' y
Public Wades
ra�.1.3iVlier �]ed4!Ge
Cmudese t- 1331 ediaua3n
C—t xrrce
R.w--P W- 1331
Finance
M—fdw
Service
Excellence
Public Service that
is Responsive and
Professional,
while balancing
Effidency,
Effectiveness
and Financial
Stewardship
TOWN OF WESTLAKE
ELECTED AND APPOINTED OFFICIALS
September 30, 2014
Laura Carol Michael Rick Alesa Wayne
Wheat Langdon Barrett Rennhack Belvedere Stoltenberg
ELECTED OFFICIALS
Mayor
LAURA WHEAT
Mayor Pro -Tem
CAROL LANGDON
Council Member
MICHAEL BARRETT
Council Member
RICK RENNHANK
Council Member
ALESA BELVEDERE
Council Member
WAYNE STOLTENBERG
APPOINTED OFFICIALS
TOM BRYMER
Town Manager
AMANDA DEGAN, MPA
Assistant Town Manager
DEBBIE PIPER, CPA
Finance Director
EDDIE EDWARDS
Director of Planning and
Development
JARROD GREENWOOD
Director of Public Works
TROY MEYER
Facilities/ Parks and
Recreation Director
x
GINGER AWTRY
Director of Communications and
Community Affairs
KELLY EDWARDS, TRMC
Town Secretary
TODD WOOD, SPHR, IPMA-CP
Director of Human Resources
and Administrative Services
RICHARD WHITTEN
Fire Chief
JASON POWER
Director of Information
Technology
FINANCIAL SECTION
TOWN OF WESTLAKE
Y1f 4 ave.+ r.or-
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor
and Members of Town Council
Town of Westlake, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the Town of Westlake (the Town) as of and for
the year ended September 30, 2014, and the related notes to the financial statements, which
collectively comprise the Town's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
AN INDEPENDENT MEMBER OF WEAVER AND TIDWELL, L.L.P. 12221 MERIT DRIVE, SUITE 1400, DALLAS, TX 75251
BAKER TILLY INTERNATIONAL CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS P: 972.490.1970 F: 972.702.8321
Town of Westlake, Texas
Page 2
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, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the Town, as of September 30, 2014, and the respective changes in financial
position, and, where applicable, cash flows thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
Emphasis of Matter Regarding Going Concern
The accompanying financial statements have been prepared assuming the discretely presented
component units will continue as going concerns. As discussed in Note 16 to the financial
statements, the discretely presented component units are in default on their bonds due to failure
to meet certain bond covenants. This gives bond holders the right to accelerate and demand
payment on the bonds in full. This condition raises substantial doubt about the discretely
presented component units' ability to continue as going concerns. Management's plans
regarding these matters are also described in Note 16. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty. Our opinion is not
modified with respect to this matter.
Change in Accounting Principle
As discussed in Note 15 to the financial statements, the Town adopted new accounting
guidance, GASB Statement No. 65, "Items Previously Reported as Assets and Liabilities," in
2014. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 4 through 16 and budgetary comparison
information and schedule of funding progress on pages 69 through 72 be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
2
Town of Westlake, Texas
Page 3
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town's basic financial statements. The introductory section, combining
and individual fund financial statements and schedules, and statistical section, are presented for
purposes of additional analysis and are not a required part of the financial statements.
The combining and individual fund statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual fund statements and schedules are fairly stated in all material respects in relation to
the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 17, 2015 on our consideration of the Town's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Town's internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
February 17, 2015
TOWN OF WESTLAKE
MANAGEMENT'S DISCUSSION AND ANALYSIS
TOWN OF WESTLAKE
MANAGEMENT'S DISCUSSION AND ANALYSIS
Management of the Town of Westlake offers the readers of the Town's financial statements this
narrative overview and analysis of the financial activities and financial position of the Town for the
fiscal year ended September 30, 2014. Financial reporting is limited in its ability to provide the "big
picture" but rather focuses on financial position and changes in financial position. In other words; are
revenues and/or expenditures higher or lower than the previous year? Has the net position
(containing both short- term and long-term assets and liabilities) or fund balances (the current
"spendable" assets less current liabilities") of the government been maintained? Readers are
encouraged to consider the information presented here in conjunction with the additional information
furnished in the letter of transmittal (pages i -vii of this report) and the statistical section (pages 82-
100 of this report) as well as information in the annual operating budget, along with other community
information found on the town's website at www.westlake-tx.org. It should be noted that the
Independent Auditor's Report describes the auditors' association with the various sections of this
report and that all of the additional information from the website and other Town sources are
unaudited.
FINANCIAL HIGHLIGHTS
The assets of the Town exceeded its liabilities at the close of the most recent fiscal year by
$38,885,361 (Net position). This number must be viewed within the context that the vast
majority of the Town's net position of $38,783,405 (99.7%) are capital assets and that most
capital assets in a government entity do not directly generate revenue nor can they be sold to
generate liquid capital. The net position restricted for specific purposes totaled $2,284,947
(5.9%). The remaining deficit, (-5.6%), represents unrestricted net position.
• As of the close of the current fiscal year, the Town of Westlake's governmental funds
reported combined ending fund balances of $11,887,640, which is a decrease of $7,556,007
in comparison with the prior year. Within this total, $4,216,467 is non -spendable, restricted,
committed or assigned by management or council.
• At the end of the current fiscal year, fund balance for the general fund was $7,953,518, an
increase of $901,887 in comparison with the prior year. Of this total fund balance, $7,671,173
is unassigned. This represents 153% of the total general fund expenditures and is equivalent
to 530 operating days.
• The Town's capital assets (net of accumulated depreciation) increased by $10,063,397. This
is primarily attributed to the completion of the Westlake Academy Expansion project which
includes a multi-purpose building, three story secondary school building and a field house.
• The Town's long-term debt decreased by $336,724 in total, due to the issuance of General
Obligation Refunding Bonds, Series 2014, offset by the scheduled repayment of principal on
outstanding bonded debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Town's basic financial
statements. The Town's basic financial statements are comprised of the following three components:
1) government -wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains supplementary information in addition to the basic
financial statements themselves.
4
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad overview of
the Town's finances, in a manner similar to a private -sector business. The government -wide financial
statements are prepared utilizing the economic resources measurement focus and the accrual basis
of accounting.
The statement of net position presents information on all of the Town's assets and liabilities with the
difference between the two reported as net position. Over time, increases or decreases in the Town's
net position serves as a useful indicator of whether the financial position of the Town is improving or
weakening.
The statement of activities presents information showing how the government's net position changed
during the most recent fiscal year. All of the revenues and expenses are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods.
Both of the government -wide financial statements distinguish functions of the Town that are
principally supported by sales taxes, property taxes, and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business -type activities). The governmental activities of the Town
include general government, public safety, culture and recreation, economic development, public
works, visitor services and education. The business -type activities of the Town include water/sewer
and cemetery.
The government -wide financial statements include not only the Town (known as the primary
government), but also discretely presented component units including all of the Texas Student
Housing entities. Financial information for these component units is reported separately from the
financial information presented for the primary government itself. See pages 29- 32 of the "Financial
Section" for detail on these entities. In addition, the Town has the following blended component
units: Lone Star Public Facilities Corporation, 4B Economic Development Corporation, and Westlake
Academy, an open enrollment charter school owned and operated by the Town of Westlake.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been
segregated for specific activities or objectives. The Town, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. Below are the three types of funds. The Town had only Governmental and Proprietary
funds for the year ended September 30, 2014.
Governmental funds - Governmental funds are used to account for essentially the same functions
reported as government 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 fiscal year. Such information may be useful in evaluating a government's
near-term financial requirements.
5
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 government -wide financial statements. By
doing so, the reader 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 Town maintains nine individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General, Westlake Academy, Debt Service,
Capital Projects, and Westlake Academy Expansion funds, all of which are presented as major
funds. Data from the other funds (Visitors Association, Economic Development, Lone Star Public
Facilities Corporation and Westlake 4B Economic Development Corporation) are combined into a
single, aggregate presentation. Individual fund data for each of these non -major governmental funds
is provided in the form of combining statements elsewhere in this report.
The Town adopts an annual appropriated budget for all funds, except the Capital Projects and
Westlake Academy Expansion funds which are project -length based budgets. A budgetary
comparison statement has been provided for all appropriate funds to demonstrate compliance with
this budget.
The basic governmental fund financial statements can be found on pages 20 - 25 of this report.
Proprietary funds - There are two types of proprietary funds, Enterprise Funds and Internal Service
Funds. An Enterprise Fund is the only proprietary fund currently maintained by the Town. Enterprise
funds are used to report the same functions presented as business -type activities in the government -
wide financial statements. The Town uses enterprise funds to account for its water and sewer
activities and its cemetery activities. All activities associated with providing such services are
accounted for in this fund, including administration, operation, maintenance, debt service, capital
improvements, billing and collection. The Town's intent is that costs of providing the services to the
general public on a continuing basis is financed through user based charges in a manner similar to a
private enterprise. The Town has no Internal Service Funds (fund to report activities that provide
supplies and services for the Town's other programs and activities, i.e. self-insurance and fleet
management).
The basic proprietary fund financial statements can be found on pages 26 - 28 on this report.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the Town's own
programs. The accounting used for fiduciary funds is similar to the accounting used for proprietary
funds. The Town of Westlake does not currently have any fiduciary funds.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government -wide and fund financial statements. The
notes to the financial statements can be found on pages 33 - 68 of this report.
M
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents schedules that further support the information in the financial statements.
The schedules are presented immediately following the notes to the financial statements and can be
found on pages 69-80.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of the government's financial
position. In the case of the Town, assets exceeded liabilities by $38,885,361 at the close of the most
recent fiscal year.
The Town's combined net position changed from a year ago, increasing $1,068,328 from
$37,817,033 to $38,885,361. Our analysis below focuses on the net position (Table 1) and changes
in net position (Table 2) of the Town's governmental and business -type activities.
The largest portion of the Town's net position, $38,783,405 (99.7%), reflects its investment in capital
assets (e.g. land, buildings, equipment, improvements, construction in progress, and infrastructure),
less any debt used to acquire capital assets still outstanding. The Town uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending.
Although the Town'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 capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion of the Town's net position, $2,284,947 (5.6%), represents resources that are
subject to external or internal restrictions on how they may be used. The remaining balance reflects
a deficit unrestricted net position of -$2,182,991 (-5.3%).
Table 1
Condensed Statement of Net Position
At September 30, 2014 and 2013
7
Governmental Activities
Business -type
Activities
Total
2014
2013
2014
2013
2014
2013
Assets
Current and other assets
$ 14,197,535
$ 21,781,962
$ 5,210,808
$ 5,987,119
$ 19,408,343
$ 27,769,081
Capital assets
50,205,686
41,121,883
13,102,835
12,123,241
63,308,521
53,245,124
Total Assets
$ 64,403,221
$ 62,903,845
$ 18,313,643
$ 18,110,360
$ 82,716,864
$ 81,014,205
Deferred outflows of resources
1,194,749
1,247,851
1,194,749
1,247,851
Liabilities
Noncurrent liabilities
29,866,622
27,611,536
6,389,337
6,485,445
$ 36,255,959
$ 34,096,981
Other liabilities
2,308,387
1,986,917
6,461,906
5,865,423
8,770,293
7,852,340
Total Liabilities
32,175,009
29,598,453
12,851,243
12,350,868
$ 45,026,252
$ 41,949,321
Net Position
Net investments in capital assets
32,048,991
21,177,426
6,734,414
6,601,949
$ 38,783,405
$ 27,779,375
Restricted
2,284,947
4,242,491
-
-
2,284,947
4,242,491
Unrestricted
(910,977)
6,637,624
(1,272,014)
(842,457)
(2,182,991)
5,795,167
Total Net Position
$ 33,422,961
$ 32,057,541
$ 5,462,400
$ 5,759,492
$ 38,885,361
$ 37,817,033
7
Table 2
Changes in Net Position
For the years ended September 30, 2014 and September 30, 2013
0
Governmental Activities
Business -type Activities
Total
2014
2013
2014
2013
2014
2013
Revenues:
Program revenues
Fees, fines and charges for services
$ 2,127,786
$ 1,798,529
$ 3,436,451
$ 3,162,842
$ 5,564,237
$ 4,961,371
Operating grant and contributions
6,592,642
4,907,472
-
-
6,592,642
4,907,472
Capital grants and contributions
80,472
5,897,456
80,472
5,897,456
General revenues
Taxes
Sales taxes
4,725,845
4,375,397
4,725,845
4,375,397
Property taxes
1,367,069
1,366,633
1,367,069
1,366,633
Hotel occupancy taxes
796,481
709,578
796,481
709,578
Mixed beverage taxes
51,602
39,727
51,602
39,727
Franchise taxes
795,322
734,935
-
-
795,322
734,935
Interest on investments
26,713
24,218
7,114
6,552
33,827
30,770
Miscellaneous
246,633
1,023,149
224,995
246,633
1,248,144
Total revenues
16,810,565
20,877,094
3,443,565
3,394,389
$ 20,254,130
$ 24,271,483
Expenses:
General governmental
2,784,587
2,606,785
-
-
2,784,587
2,606,785
Public saftey
2,190,050
1,978,803
2,190,050
1,978,803
Culture and recreation
123,541
113,924
123,541
113,924
Economic development
147,680
232,215
147,680
232,215
Public works
955,794
626,423
955,794
626,423
Visitor services
493,087
521,521
493,087
521,521
Education
7,147,411
5,803,611
7,147,411
5,803,611
Interest on long-term debt
998,951
1,067,086
-
-
998,951
1,067,086
Water and sewer
-
-
3,690,137
3,356,466
3,690,137
3,356,466
Cemetery
7,121
5,328
7,121
5,328
Total expenses
14,841,101
12,950,368
3,697,258
3,361,794
18,538,359
16,312,162
Increase(decrease)in net
position before transfers
1,969,464
7,926,726
(253,693)
32,595
1,715,771
7,959,321
Transfers
43,399
(485,591)
(43,399)
485,591
Change in net position
2,012,863
7,441,135
(297,092)
518,186
1,715,771
7,959,321
Net position, beginning
as previously stated
32,057,541
24,616,406
5,759,492
5,241,306
37,817,033
29,857,712
Cumulative effect of a change
in accounting principle
(647,443)
(647,443)
Net position, ending
$ 33,422,961
$ 32,057,541
$ 5,462,400
$ 5,759,492
$ 38,885,361
$ 37,817,033
0
Governmental activities: Governmental activities increased the Town's net position by $1,365,420
(4.3%), increasing net position from $32,057,541 to $33,422,961. Unrestricted net position, the part
of net position that can be used to finance day-to-day operations without constraints established by
debt covenants, enabling legislation, other legal requirements, and/or Council or management's
decision, decreased by $7,547,853.
Total revenues for governmental activities decreased by $4,066,529 when compared to the prior
year. General revenue had a decrease of $263,972, while program revenues had a decrease of
$3,802,557.
Program revenues
• Fees, fines and charges for services increased by $329,257 which was primarily due to an
increase of building permits/fees related to Granada and Entrada.
• Operating Grants and Contributions increased by $1,685,170 primarily due to the increase at
Westlake Academy regarding additional state funding as a result of increased enrollment and
increased grant revenues from Westlake Academy Foundation and Hudson Foundation. In
the prior year these revenues were recognized in "Miscellaneous."
• Capital Grants and Contributions decreased by $5,816,984.
o The following amounts were received in the prior year which was offset by a
contribution of funds to purchase health and fitness equipment for the new field house
at Westlake Academy:
o $4,665,818 materials/work was contributed by Hillwood Properties related to Dove
and JT Ottinger Road.
o $1,000,000 contribution for the Westlake Academy Expansion Project.
o $149,622 from Roanoke and Trophy Club for Hwy 114/170 enhancements.
o $82,016 from Fidelity for FM 1938 landscape enhancements (median).
General revenues - Decrease of $263,972 was primarily made up of the following components:
• Sales tax increased by $350,447 which appears to be attributed to the continued
improvement in the local economy as well as several new technology and professional
related companies and several one-time payments related to purchases and/or construction.
• Hotel occupancy taxes increased by $86,903 which now includes receipts from Deloitte
University.
• Franchise Fees increased by $60,387 with permits and fees increasing by $205,341 due to
an upswing in construction as well as Granada and Entrada permits.
• Decrease in Miscellaneous of $715,211 is primarily due to the reclassification of Westlake
Academy revenues to "Operating grants and contributions" offset by revenues received in the
Westlake Academy Expansion Fund.
Expenses
• Total expenses for governmental activities increased by $1,890,733 or approximately 15%.
The increase is made up of several components. The majority of the total increase,
$1,343,800, was due to the education expenditures related to Westlake Academy. Additional
students were enrolled; therefore, more staff was needed. With the anticipation of three new
buildings opening in SY 2014-2015, additional supplies, etc. were needed to get the
classrooms ready to begin the new school year. Additional payroll costs of $228,866 were
based on a 3% increase as well as $115K market adjustments and the addition of one -full
time lieutenant and Human Resources generalist. Contracted services increased due to the
comprehensive plan update.
9
Business -type Activities: The net position of our business -type activities ended fiscal year 2014 at
$5,462,400 compared with $5,759,492 in 2013. This represents a decrease in net position of
$297,092, or 5% less than the prior fiscal year.
Revenues of the Town's business -type activities were $3,443,565 for the fiscal year ending
September 30, 2014. Revenues increased $49,176 or 1% more than the prior year. Operating
expenses for the business -type activities were $3,697,258 for the year, an increase of $335,464 or
10%. The business -type activities also had net transfers out of $43,399 in 2014 compared to net
transfers in of $485,591 in the prior year. The resulting decrease in net position is due to several
factors, including the following:
Increase in Charges for Services was $273,609. This 8% increase was largely realized
because FY 13/14 was drier than normal resulting in increased water billing revenues. Also,
the TRA Wastewater Settle -up was $178,082 greater than the prior year.
The Town's increase in expenses of $335,464 is attributed to the additional water purchases
experienced during the dry weather months, increased payroll operating costs and $213,525
expense due to the Hwy 114 Lift Station Discharge project.
The General Fund transferred $500K to the Utility Fund to supplement the $1 M bond
proceeds received for the construction of the Town's second water storage tank in the prior
year; therefore, there was a decrease in net transfers.
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds. The focus of the Town's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Town's financing requirements. In particular, unassigned fund balance may serve as a
useful measure of a town's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Town's governmental funds reported combined ending
fund balances of $11,887,640; a decrease of $7,556,007 in comparison with the prior year.
Approximately 64.5% of this total $7,671,173) constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is
nonspendable, restricted, committed or assigned to indicate that it is not available for new spending
because it has already been committed.
The following tables present a summary of general, special revenue, capital project, and debt service
fund revenues and expenditures for the fiscal year ended September 30, 2014, and the amount and
percentage of increases and decreases in relation to the prior year.
10
Revenues
Taxes
Table 3
Summary of Governmental Funds Revenues
Increase Percent
2013-14 Percent (Decrease) Increase
Amount Of Total From 2012/13 (Decrease)
Sales taxes
$ 4,725,845
28.2%
$ 350,448
Property taxes
1,353,356
8.1%
(13,187)
Hotel occupancy taxes
51,602
0.3%
11,875
Mixed beverage taxes
796,481
4.8%
86,903
Franchise taxes
795,322
4.7%
60,387
Subtotal - Taxes
7,722,606
46.1%
496,426
State program
5,269,641
31.5%
573,101
Federal program
80,103
0.5%
(1,855)
Interest income
26,713
0.2%
2,495
Building permits and fees
1,175,075
7.0%
205,340
Fines and penalties
730,441
4.4%
35,274
Intergovernmental
3,540
0.0%
(6,791)
Contributions
82,446
0.5%
(5,833,568)
Miscellaneous
1,661,463
9.9%
381,009
Total Revenues
$ 16,752,028
100.0%
$ (4,148,569)
Table 4
Summary of Governmental Funds Expenditures
2013-14
Expenditures Amount
General government
$ 2,236,360
Public safety
2,146,587
Culture and recreation
123,541
Economic development
147,685
Public works
615,781
Visitor services
493,082
Education
7,143,678
Capital outlay
9,964,047
Debt services
2,190,449
Total Expenditures $ 25,061,210
11
8.0%
-1.0%
29.9%
12.2%
12.2%
-2.3%
10.3%
21.2%
5.1%
-65.7%
-98.6%
Increase
Percent
Percent
(Decrease)
Increase
Of Total
From 2012/13
(Decrease)
8.9%
$ 325,815
17.1%
8.6%
179,003
9.1%
0.5%
9,617
8.4%
0.6%
(113,122)
-43.4%
2.5%
83,106
15.6%
2.0%
(28,439)
-5.5%
28.5%
1,340,067
23.1%
39.8%
2,362,416
31.1%
8.7%
(1,816,433)
-45.3%
100.0%
$ 2,342,030
10.3%
Below are summaries and explanations of the changes in fund balances from FY 2013 to FY 2014 of
the Governmental Funds that are contained in the above totals:
General Fund - Fund balance increased $901,887 (13%). Most General Fund revenue categories
realized increases over the prior year and many surpassed budget estimates as well. Sales tax
receipts, fines and fees, and building permits exceeded both budget and prior year. Sales taxes grew
as a result of continued improvement in the local economy as well as several new technology and
professional related companies and one-time payments related to purchases and/or construction.
Fines and fees increases as a result of increased collections in municipal court and permits and fees
increased due to increased home construction and Granada fees.
Visitors Association Fund- Fund balance increased by $83,699 due to an increase in hotel
occupancy tax and a savings in several expenditure accounts with the highest savings being in the
Marriott marketing line -item. These expenditures relate to an agreement with the Marriott regarding
incentive payments to bring businesses to the Town.
Capital Projects Fund - Fund balance decreased by $1,325,744 largely due to the continuation of
several street projects (FM 1938 and SH 114/Hwy 170) and the completion of the Stagecoach Hills
Reconstruction/Drainage project.
Westlake Academy Expansion Fund- Fund balance decreased by $7,293,786 because bond
proceeds of $8.2M received in the prior year were used to complete the Westlake Academy
Expansion project.
Proprietary Funds. The Town's proprietary fund statements provide the same type of information
found in the government -wide financial statements with greater detail. Total net position of the
Proprietary Funds amounted to $5,462,400, a decrease of $297,092. Operating income totaled
$508,264 which was offset by a net non-operating expenses of $761,957. A transfer in the amount of
$43,399 from the General Fund to supplement the construction costs of the ground storage tank
constitutes the decrease.
General Fund Budgetary Highlights
The General Fund budget for fiscal year 2014 was amended in total to increase the net change in
fund balance from -$368,422 to -$253, a total increase of $368,169.
The amended budget for net revenues was increased by $563,820(9%)
o Sales Tax- $125,000- received more taxes than anticipated.
o Building permits and fees - $222,500- the Town had more housing starts/permits than
anticipated as well as Entrada permits that were not originally budgeted.
o Franchise Fees and Fines and Forfeitures were increased by $137,120 and $75,000,
respectively.
• The amended budget for expenditures was increased by $48,658 with transfers out being
increased by $146,003 due to the transfer of funds to Westlake Academy for the purchase of
smartboards for the new classrooms.
12
The General Fund actual revenue collections were more than the amended budget by $484,327
which can be attributed to the unanticipated increase in sales tax, building permits and fees, and
municipal fines and penalties received. The final expenditures were $568,077 (10%) less than
budgeted. A large contributing factor to this variance is the reclassification of $192,000 from
expenditures to a transfer -out to the Academy. There was also a savings on the budgeted attorney
and consultant fees as a result of reimbursements regarding the Entrada/Granada developments.
Savings was also seen in building inspections because we were able to use staff for more than
anticipated inspections. The remaining larger savings were due to savings in contracted services
and training.
Capital Assets and Debt Administration
Capital Assets. The Town's investment in capital assets for its governmental and business -
type activities as of September 30, 2014, totaled $63,308,521 (net of accumulated
depreciation). The investment in capital assets includes land, buildings, improvements,
machinery and equipment, infrastructure, and construction in progress. The net increase in
the Town's investment in capital assets for the current fiscal year was $10,063,397 or 19%.
Nearly the entire increase ($10,302,548) is attributable to the completion of the Westlake
Academy Expansion project. The remaining increase is due to the purchase of a facilities
maintenance vehicle and information and software.
Table 5
Town's Capital Assets
(Net of Accumulated Depreciation)
Additional information on the Town's capital assets can be found in Note 4 on pages 48- 51 of this
report.
Long-term debt- At the end of the current fiscal year, the Town had total long-term debt outstanding
of $36,255,959. Of this amount, $29,304,000 represents bonded indebtedness, $65,789 economic
development reimbursement, $237,378 capital leases, $371,464 in loans and $5,320,824 contractual
obligations. During the fiscal year 2013-2014, the Town's total debt payable decreased by $336,724.
This decrease was due to the issuance of General Obligation Refunding Bonds for the purpose of
refunding Certificates of Obligation, Series 2003, plus the addition of a loan from Bennett Benner &
Pettit. These amounts were offset by the scheduled repayment of principal and interest on
outstanding bonded debt.
13
Governmental Activities
Business -type
Activities
Total
2014
2013
2014
2013
2014
2013
Land
$ 11,896,663
$ 11,896,663
$ -
$ -
$ 11,896,663
$ 11,896,663
Capital improvements
7,814,722
8,184,522
10,809,857
9,614,902
18,624,579
17,799,424
Building
27,009,853
17,611,891
27,009,853
17,611,891
Machinery and equipment
1,016,010
594,715
1,861,591
1,948,389
2,877,601
2,543,104
W/W treatments rights
185,266
217,026
185,266
217,026
Construction in progress
2,468,438
2,834,092
246,121
342,924
2,714,559
3,177,016
Total capital assets
$ 50,205,686
$ 41,121,883
$ 13,102,835
$ 12,123,241
$ 63,308,521
$ 53,245,124
Additional information on the Town's capital assets can be found in Note 4 on pages 48- 51 of this
report.
Long-term debt- At the end of the current fiscal year, the Town had total long-term debt outstanding
of $36,255,959. Of this amount, $29,304,000 represents bonded indebtedness, $65,789 economic
development reimbursement, $237,378 capital leases, $371,464 in loans and $5,320,824 contractual
obligations. During the fiscal year 2013-2014, the Town's total debt payable decreased by $336,724.
This decrease was due to the issuance of General Obligation Refunding Bonds for the purpose of
refunding Certificates of Obligation, Series 2003, plus the addition of a loan from Bennett Benner &
Pettit. These amounts were offset by the scheduled repayment of principal and interest on
outstanding bonded debt.
13
Standard & Poor's Ratings Services, a division of McGraw-Hill, Inc. has recently increased the
Town's rate from AA to AA+/stable. Additional information about the rating agency or the significance
of the rating provided may be obtained from Standard & Poor's web site. Additional information on
the Town's long-term debt can be found in Note 5 on pages 51- 61.
Table 6
Outstanding Debt at Year -End
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
Long range planning and visioning is vital to the sustainability of any community and Westlake has a
bright outlook for our future — much of this based on our governing board, residential commitment to
our Town and the diligence of our staff members. The following trends will be important to our
growth and development:
Continued Permanent Population Growth - We anticipate the trend toward growth will
continue as our existing lot inventory continues to be a scarce commodity. In addition, the
residential and mixed-use developments have the potential to significantly increase our
permanent population.
Management of Development — As the economy and the surrounding cities in the Metroplex
experience commercial development and the influx of individuals continues to make the North
Texas Region their home, we will need to manage our distinctive housing developments to
ensure we maintain our community as an `oasis of natural beauty' as contained in our Vision
statement.
Implementation of the Comprehensive Plan — The Town will complete the updating of our
Comp Plan and will transition into the application phase of the recommendations and
feedback from our Comprehensive Plan Steering Committee, residents and stakeholders,
Planning & Zoning Committee Members, and our Town Council. This will include the update
of the applicable ordinance documents that will help guide our future developments and all
the corresponding plan elements.
• Oversight of Enrollment Demands at Westlake Academy — As it becomes necessary with
the rollout of Phase II of the Facility Master Plan, staff and the Council will plan for our long
term visioning of the school to ensure each child reaches their 'highest individual potential' as
a student at Westlake Academy. The impact of new housing developments and population
growth will continue to drive our capital projects in the future.
14
Governmental Activities
Business -type
Activities
Total
2014
2013
2014
2013
2014
2013
General obligation bonds
$ 18,260,000
$ 16,590,000
$ -
$ -
$ 18,260,000
$ 16,590,000
Certificates of obligation
10,029,800
12,596,800
1,014,200
1,025,200
11,044,000
13,622,000
Contractual obligations
65,789
96,026
5,320,824
5,412,149
5,386,613
5,508,175
Capital Lease
237,378
-
-
-
237,378
-
Premium on bonds
744,328
700,588
33,397
34,569
777,725
735,157
Notes payable
371,464
17,420
371,464
17,420
Compensated absences
157,863
106,404
20,916
13,527
178,779
119,931
Total long-term debt
$ 29,866,622
$ 30,107,238
$ 6,389,337
$ 6,485,445
$ 36,255,959
$ 36,592,683
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
Long range planning and visioning is vital to the sustainability of any community and Westlake has a
bright outlook for our future — much of this based on our governing board, residential commitment to
our Town and the diligence of our staff members. The following trends will be important to our
growth and development:
Continued Permanent Population Growth - We anticipate the trend toward growth will
continue as our existing lot inventory continues to be a scarce commodity. In addition, the
residential and mixed-use developments have the potential to significantly increase our
permanent population.
Management of Development — As the economy and the surrounding cities in the Metroplex
experience commercial development and the influx of individuals continues to make the North
Texas Region their home, we will need to manage our distinctive housing developments to
ensure we maintain our community as an `oasis of natural beauty' as contained in our Vision
statement.
Implementation of the Comprehensive Plan — The Town will complete the updating of our
Comp Plan and will transition into the application phase of the recommendations and
feedback from our Comprehensive Plan Steering Committee, residents and stakeholders,
Planning & Zoning Committee Members, and our Town Council. This will include the update
of the applicable ordinance documents that will help guide our future developments and all
the corresponding plan elements.
• Oversight of Enrollment Demands at Westlake Academy — As it becomes necessary with
the rollout of Phase II of the Facility Master Plan, staff and the Council will plan for our long
term visioning of the school to ensure each child reaches their 'highest individual potential' as
a student at Westlake Academy. The impact of new housing developments and population
growth will continue to drive our capital projects in the future.
14
GENERALFUND
In the FY 2014-15 adopted budget, the Town's General Fund balance is anticipated to decrease by
$670K.
• The Town is anticipating a 12% increase in revenues over the prior year by $864,475
o Increased sales tax revenue $101,250.
o Permits and fees related to the Granada development $450,000.
o Transfers in from Utility Fund for repayment of Ground Storage Water Tank $256,445.
Increase of $557K in Payroll Expenditures.
o This includes an increase in base costs of $71,394 to maintain our current staff levels
along with $65,000 in market pay adjustments (inclusive of taxes and insurance) for
work force attraction and $54K in performance based pay, and a newly recommended
allocation of $8K for cell phone reimbursement of various staff members (Directors
and on-call technicians). A portion of this increased expenditure is subsidized by
transfers in from the Utility Fund ($30K) and the Visitors Association Fund ($92K).
o This increase also includes the following personnel changes:
■ $35,753 — transition of part-time Communication Specialist to full-time.
■ $77,987 — addition of one full-time Firefighter / Paramedic.
■ $19,592 — replacement of part-time Deputy Court Clerk.
o Transition of shared services employees to municipal budget.
■ $ 68,503 — Accounting Technician.
■ $120,860 — IT Director.
o $130,144 increase for medical, dental and life Insurance costs (40%).
o $16,931 increase for social security and Medicare taxes (08%).
o $89,840 increase for ICMA and TMRS costs (46%).
• Operating expenditures and transfers out increased $1 M.
o $300K — future Westlake resident enrollment capacity.
o $ 42K — increase to Keller Police contract services.
o $520K — transfer to Capital Projects Fund.
o $168K — transfer to Debt Service Fund.
CAPITAL PROJECT FUND
This fund is anticipated to have a reduction of $1.161M as a direct reflection of the construction of
the following projects:
• FM 1938 Streetscape Project- $1 M.
• Sam School, E. Dove, and Roanoke Road Reconstruction and Drainage $819K.
• Park Improvements $100K.
• Land cost allocation for Fire Station $1.125M to be offset with bond proceeds.
ENTERPRISE FUNDS
In the FY 2014-2015 adopted budget, the Utility fund balance is anticipated to decrease by $326,435
with 88% of that being due to the sewer line transfer and meter reading equipment projects.
15
CONTACTING THE TOWN'S FINANCE DEPARTMENT
This financial report is designed to provide our citizens, customers, and investors and creditors with
a general overview of the Town's finances and to demonstrate the Town's accountability for the
money it receives. If you have questions about this report or need additional financial information,
contact Debbie Piper, Town of Westlake Finance Director, at 817-490-5712 or email at
dipper@westlake-tx.org.
IN
TOWN OF WESTLAKE
BASIC FINANCIAL STATEMENTS
TOWN OF WESTLAKE
TOWN OF WESTLAKE
STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
ASSETS
Cash and cash equivalents
Receivables (net of allowance)
Inventories
Other assets
Restricted cash and cash equivalents
Capital assets:
Land and construction in progress
Buildings and improvements
Wastewater treatment rights
Machinery and equipment
Less accumulated depreciation
Total capital assets
Total Assets
EXHIBIT A-1
Primary Government
Discretely
Governmental Business -type Presented
Activities Activities Total Component Units
$ 12,747,502
$ 4,083,751
$16,831,253
$ 7,192,451
1,361,094
835,361
2,196,455
491,021
-
96,986
96,986
-
88,939
-
88,939
95,747
-
194,710
194,710
4,537,817
14,365,101
246,121
14,611,222
12,070,678
43,000,030
14,882,835
57,882,865
90,899,458
-
635,199
635,199
-
3,442,120
3,498,148
6,940,268
12,895,127
(10,601,565)
(6,159,468)
(16,761,033)
(45,193,736)
50,205,686
13,102,835
63,308,521
70,671,527
64,403,221
18,313,643
82,716,864
82,988,563
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 1,194,749
Total Deferred Outflows of Resources 1.194.749
LIABILITIES
Accounts payable
Customer deposit payable
Unearned revenue
Accrued interest payable
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
NET POSITION
Net investment in capital assets
Restricted for:
Tourism
Education
Unrestricted
Total net position
The accompanying notes are
an integral part of this statement.
- 1,194, 749 -
1,194, 749 -
2,186,107 234,895 2,421,002 1,975,869
- 194,710 194,710 -
1,820 318,352 - 3,346,278
120,460 5,713,949 5,834,409 31,005,021
1,229,589 118,072 1,347,661
28,637,033 6,271,265 34,908,298
110, 840, 898
32,175,009 12,851,243 45,026,252 147,168,066
32,048,991 6,734,414 38,783,405 (40,169,371)
1,107,520 - 1,107,520 -
1,177,427 - 1,177,427 -
(910,977) (1,272,014) (2,182,991) (24,010,132)
$ 33,422,961 $ 5,462,400 $38,885,361 $ (64,179,503)
17
TOWN OF WESTLAKE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
ram Revenues
The accompanying notes are
an integral part of this statement.
Change in net position
NET POSITION, beginning of year as previously stated
Cumulative effect of change in accounting principle
NET POSITION, end of year
18
Charges for
Operating Grants
Capital Grants
Functions/Programs
Expenses
Services
and Contributions
and Contributions
Primary government:
Governmental activities:
General government
$ 2,784,587
$ 33,975
$ -
$
Public safety
2,190,050
848,772
3,540
Cultural and recreation
123,541
-
1,974
Public works
955,794
1,022,769
-
Economic development
147,680
-
Visitor services
493,087
-
-
-
Education
7,147,411
222,270
6,587,128
80,472
Interest on long-term Debt
998,951
-
-
-
Total governmental activities
14,841,101
2,127,786
6,592,642
80,472
Business -type activities:
Water and sewer
3,690,137
3,428,702
-
-
Cemetery
7,121
7,749
-
-
Total business -type activities
3,697,258
3,436,451
-
-
Total primary government
$ 18,538,359
$ 5,564,237
$ 6,592,642
$ 80,472
Reported Discretely Presented
Component Units
$ 24,883,936
$ 17,910,143
$
$
GENERAL REVENUES:
Taxes:
Sales taxes
Property taxes
Hotel occupancy taxes
Mixed beverage taxes
Franchise taxes
Interest Income
Miscellaneous
Transfers
Total general revenues
and transfers
The accompanying notes are
an integral part of this statement.
Change in net position
NET POSITION, beginning of year as previously stated
Cumulative effect of change in accounting principle
NET POSITION, end of year
18
Net (Expense) Revenue and
Changes in Net Position
EXHIBIT A-2
Primary Government
Discretely
Governmental Business - Type Presented
Activities Activities Total Component Units
(2,750,612) $
$ (2,750,612) $
(1,337,738)
-
(1,337,738)
(121,567)
-
(121,567)
66,975
66,975
(147,680)
(147,680)
(493,087)
-
(493,087)
(257,541)
(257,541)
(998,951)
(998,951)
(6,040,201)
-
(6,040,201)
(261,435)
(261,435)
-
628
628
(260,807)
(260,807)
-
(6,040,201)
(260,807)
(6,301,008)
-
$ - $
-
$ $
(6,973,793)
4,725,845
-
4,725,845
1,367,069
-
1,367,069
51,602
-
51,602
796,481
-
796,481
795,322
-
795,322
-
26,713
7,114
33,827
11,389
246,633
-
246,633
-
43,399
(43,399)
-
-
8,053,064
(36,285)
8,016,779
11,389
2,012,863
(297,092)
1,715,771
(6,962,404)
32,057,541
5,759,492
37,817,033
(53,864,843)
(647,443)
-
(647,443)
(3,352,256)
$ 33,422,961 $
5,462,400
$ 38,885,361 $
(64,179,503)
19
TOWN OF WESTLAKE
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2014
ASSETS:
Cash and cash equivalents
Receivables :
Property taxes
Accounts receivable
Due from other funds
Other assets
TOTAL ASSETS
LIABILITIES, DEFFERED INFLOWS OF
RESOURCES AND FUND BALANCE:
Liabilities:
Accounts payable
Unearned revenue
Due to other funds
Total liabilities
DEFERRED INFLOWS OF RESOURCES:
Unavailable grant funds
Unavailable resources - property taxes
Total deferred inflows of resources
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Tourism
Capital items
Street and tree improvements
Debt service
Education
Committed for:
Court security and technology
Unassigned
Total fund balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
The accompanying notes are
are an integral part of this statement.
20
$ 372,092 $ 96,415 $ 49
11,983 - -
384,075 96,415 49
- 106,129 -
14,353 - 1,486
14,353 106,129 1,486
8,821 77,300 -
80,442 - -
- - 1,081
- 993,998 -
193,082 - -
7,671,173 - -
7,953,518 1,071,298 1,081
$ 8,351,946 $ 1,273,842 $ 2,616
Debt
Westlake
Service
General
Academy
Fund
$ 7,399,920
$ 866,250
$ 1,130
14,353
-
1,486
771,499
330,292
-
157,353
-
-
8,821
77,300
-
$ 8,351,946
$ 1,273,842
$ 2,616
20
$ 372,092 $ 96,415 $ 49
11,983 - -
384,075 96,415 49
- 106,129 -
14,353 - 1,486
14,353 106,129 1,486
8,821 77,300 -
80,442 - -
- - 1,081
- 993,998 -
193,082 - -
7,671,173 - -
7,953,518 1,071,298 1,081
$ 8,351,946 $ 1,273,842 $ 2,616
EXHIBIT A-3
2,818 88,939
- - 1,107,520 1,107,520
1,313,091 424,694 13,620 1,751,405
- - - 80,442
1,081
993,998
193,082
7,671,173
1,313,091 424,694 1,123,958 11,887,640
$ 1,563,165 $ 1,794,572 $ 1,380,730 $ 14,366,871
21
Westlake
Nonmajor
Total
Capital
Academy
Governmental
Governmental
Projects
Expansion
Funds
Funds
$ 1,563,165
$ 1,794,572
$ 1,122,465
$ 12,747,502
-
-
-
15,839
-
-
243,464
1,345,255
-
-
11,983
169,336
-
-
2,818
88,939
$ 1,563,165
$ 1,794,572
$ 1,380,730
$ 14,366,871
$ 250,074
$ 1,369,878
$ 97,599
$ 2,186,107
-
-
1,820
1,820
-
-
157,353
169,336
250,074
1,369,878
256,772
2,357,263
-
-
-
106,129
-
-
-
15,839
-
-
-
121,968
2,818 88,939
- - 1,107,520 1,107,520
1,313,091 424,694 13,620 1,751,405
- - - 80,442
1,081
993,998
193,082
7,671,173
1,313,091 424,694 1,123,958 11,887,640
$ 1,563,165 $ 1,794,572 $ 1,380,730 $ 14,366,871
21
EXHIBIT A-4
TOWN OF WESTLAKE
RECONCILIATION OF THE GOVERMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
Total fund balance -governmental funds balance sheet $ 11,887,640
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not current financial resources
and therefore are not reported in the governmental funds balance sheet. 50,205,686
Deferred losses on refunding are reported as deferred outlfows of resources
in the government -wide statement of net position. 1,194,749
Revenues earned but not available within sixty days of the fiscal year-end are not
recognized as revenue in the fund financial statements. 121,968
Interest payable on long-term debt does not require current financial resources, therefore
interest payable is not reported as a liability in the governmental funds balance sheet. (120,460)
Long-term liabilities, including bonds payable, are not due and payable in the current
period, and therefore are not reported in the fund financial statements. (29,866,622)
NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of net position $ 33,422,961
22
TOWN OF WESTLAKE
TOWN OF WESTLAKE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
EXPENDITURES:
Current
General government
2,236,360
Westlake
Debt
Capital
Public safety
General
Academy
Service Fund
Projects
REVENUES:
123,541
Taxes
615,781
Sales
$ 3,471,344
$
$ -
$
Property
1,198,374
-
154,982
Mixed beverage
51,602
7,143,678
-
-
Hotel occupancy
-
-
-
1,129,288
Franchise
795,322
State program revenues
-
5,269,641
927,000
-
Federal program revenues
-
80,103
1,106,434
-
Interest income
10,503
1,450
69,283
3,544
Building permits and fees
1,175,075
-
2,102,717
-
Fines and penalties
730,441
Intergovernmental
3,540
(442,692)
(1,947,735)
(1,125,744)
Contributions
-
-
Miscellaneous
70,338
1,353,525
1,878,051
Total revenues
7,506,539
6,704,719
154,982
3,544
EXPENDITURES:
Current
General government
2,236,360
Public safety
2,146,587
Cultural and recreation
123,541
Public works
615,781
Economic development
-
Visitor services
-
Education
-
7,143,678
-
Capital outlay
20,875
-
-
1,129,288
Debt service
Principal retirement
47,440
-
927,000
-
Interest and other fiscal charges
800
3,733
1,106,434
Bond issuance costs
-
-
69,283
-
Total expenditures
5,191,384
7,147,411
2,102,717
1,129,288
Excess (deficiency) of revenues
Over (Under) Expenditures
2,315,155
(442,692)
(1,947,735)
(1,125,744)
OTHER FINANCING SOURCES (USES)
Transfers in
56,419
282,000
1,878,051
Transfers out
(1,504,397)
-
-
(200,000)
Capital lease proceeds
239,009
-
Refunding bonds issued
-
1,910,000
Payment to refunding bond escrow agent
(1,925,315)
Premium on refunding bonds issued
-
84,598
Note proceeds
34,710
-
-
Net other financing sources (uses)
(1,413,268)
521,009
1,947,334
(200,000)
NET CHANGE IN FUND BALANCES
901,887
78,317
(401)
(1,325,744)
FUND BALANCES, AT BEGINNING OF YEAR
7,051,631
992,981
1,482
2,638,835
FUND BALANCES AT END OF YEAR
$ 7,953,518
$ 1,071,298
$ 1,081
$ 1,313,091
The accompanying notes are
are an integral part of this statement.
23
Westlake Nonmajor Total
Academy Governmental Governmental
Expansion Funds Funds
$ $ 1,254,501 $ 4,725,845
- 1,353,356
- 51,602
796,481 796,481
- 795,322
5,269,641
- 80,103
9,352 1,864 26,713
- - 1,175,075
730,441
- - 3,540
80,472 1,974 82,446
233,500 4,100 1,661,463
323,324 2,058,920 16,752,028
2,236,360
2,146,587
123,541
- 615,781
147,685 147,685
493,082 493,082
- - 7,143,678
8,813,884 9,964,047
30,237 1,004,677
5,522 1,116,489
- - 69,283
8,813,884 676,526 25,061,210
(8,490,560) 1,382,394 (8,309,182)
830,000 47,741 3,094,211
- (1,346,415) (3,050,812)
239,009
1,910,000
(1,925,315)
- 84,598
366,774 401,484
1,196,774 (1,298,674) 753,175
(7,293,786) 83,720 (7,556,007)
7,718,480 1,040,238 19,443,647
$ 424,694 $ 1,123,958 $ 11,887,640
24
EXHIBIT A-5
TOWN OF WESTLAKE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Net change in fund balances- total governmental funds.
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense.
Depreciation expense on capital assets is reported in the statement of activities but does not
require the use of current financial resources. Therefore, depreciation expense is not
reported as expenditures in the governmental funds.
The repayment of the principal of long term debt consumes the current financial resources of
governmental funds, but has no effect on net position. The amortization of bond premiums
and deferred gain/loss on refunding of long term debt is reported in the statement of
activities but does not require the use of current financial resources. Therefore the
effect of the amortization of these various items are not reported in the statement of
revenues, expenditures, and changes in fund balance.
This amount represents the net effect of the following items:
Bond proceeds
Payment to refunding bond escrow agent
Note proceeds
Lease proceeds
Bond premiums
Repayments
Amortization of premium on bonds
Amortization of deferred loss on refunding
Current year changes in accrued interest payable does not require the use of current
financial resources; and therefore, are not reported as expenditures in governmental funds.
Current year changes in the long-term liability for compensated absences do not require
the use of current financial resources; and therefore, are not reported as expenditures in
governmental funds.
Certain revenues in the government -wide statement of activities that do not provide current
financial resources are not reported as revenue in the governmental funds.
EXHIBIT A-6
$ (7,556,007)
10,012,566
(928,763)
(1,910,000)
1,925,315
(401,484)
(239,009)
(84,598)
1,004,677
40,858
(98,417) 237,342
240,647
(51,459)
58,537
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of activities $ 2,012,863
The accompanying notes are
are an integral part of this statement.
25
TOWN OF WESTLAKE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2014
ASSETS:
Current Assets
Cash and cash equivalents
Accounts receivable
Inventories
Restricted cash and investments
Total current assets
Noncurrent assets
Capital assets:
Construction in progress
Buildings and improvements
Wastewwater treatment rights
Machinery and equipment
Less: accumulated depreciation
Total capital assets
Total noncurrent assets
TOTAL ASSETS
LIABILITIES
Current liabilities:
Accounts payable
Customer deposits payable
Accrued interest payable
Unearned revenue
Compensated absences - current portion
Current portion of bonds payable
Contractual obligations
Total current liabilities
Long-term liabilities:
Bonds payable
Compensated absences
Contractual obligations
Total long-term liabilities
TOTAL LIABILITIES
NET POSITION
Net investment in capital assets
Unrestricted
TOTAL NET POSITION
The accompanying notes are
are an integral part of this statement.
26
EXHIBIT A-7
Utility
Cemetery
Fund
Fund
Total
$ 4,032,112
$ 51,639
$ 4,083,751
835,303
58
835,361
-
96,986
96,986
194,710
-
194,710
5,062,125
148,683
5,210,808
246,121
-
246,121
14,882,835
14,882,835
635,199
635,199
3,498,148
3,498,148
(6,159,468)
(6,159,468)
13,102,835
13,102,835
13,102,835
-
13,102,835
18,164, 960
148,683
18,313,643
234,540
355
234,895
194,710
-
194,710
5,713,949
5,713,949
318,352
318,352
2,092
2,092
21,450
21,450
94,530
-
94,530
6,579,623
355
6,579,978
992,750
-
992,750
18,824
18,824
5,259,691
5,259,691
6,271,265
-
6,271,265
12,850,888
355
12,851,243
6,734,414
-
6,734,414
(1,420,342)
148,328
(1,272,014)
$ 5,314,072
$ 148,328
$ 5,462,400
TOWN OF WESTLAKE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
OPERATING REVENUES:
Charges for services
Miscellaneous revenue
Total operating revenues
OPERATING EXPENSES:
Payroll costs
Professional and contract services
Depreciation
Amortization of wastewater treatment rights
Water purchases
Cost of cemetary lots sold
Other operating costs
Total operating expenses
Net operating income
NON-OPERATING REVENUES(EXPENSES):
Interest income
Interest expense
Total non-operating revenues (expenses)
INCOME (LOSS) BEFORE TRANSFERS AND
CAPITAL CONTRIBUTIONS
Transfer out
Total transfers and capital contributions
Change in net position
Total net position, beginning of year
Total net position, end of year
The accompanying notes are
are an integral part of this statement.
27
EXHIBIT A-8
Utility
Cemetery
Fund
Fund
Total
$ 3,028,787
$ 7,749
$ 3,036,536
399,915
399,915
3,428,702
7,749
3,436,451
328,944
-
328,944
94,069
6,525
100,594
430,527
-
430,527
31,760
31,760
1,048,219
-
1,048,219
-
596
596
987,547
-
987,547
2,921,066
7,121
2,928,187
507,636
628
508,264
7,035
79
7,114
(769,071)
-
(769,071)
(762,036)
79
(761,957)
(254,400)
707
(253,693)
(43,399)
-
(43,399)
(43,399)
-
(43,399)
(297,799)
707
(297,092)
5,611,871
147,621
5,759,492
$ 5,314,072
$ 148,328
$ 5,462,400
The accompanying notes are
are an integral part of this statement.
28
EXHIBIT A-9
TOWN OF WESTLAKE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Utility
Cemetery
CASH FLOWS FROM OPERATING ACTIVITIES:
Fund
Fund
Total
Receipts from customers
$ 3,425,711
$ 6,549
$ 3,432,260
Payments to employees
(315,069)
-
(315,069)
Payments to suppliers
(2,129,935)
(6,170)
(2,136,105)
Net cash provided by operating activities
980,707
379
981,086
CASH FLOW FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfer to other funds
(43,399)
-
(43,399)
Net cash used in noncapital financing activities
(43,399)
(43,399)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Principal paid on debt
(102,325)
(102,325)
Interest paid on debt
(153,347)
(153,347)
Investment earnings
7,035
79
7,114
Purchase of property and equipment
(1,441,881)
-
(1,441,881)
Net cash provided by (used in) capital and related financing activities
(1,690,518)
79
(1,690,439)
Net increase (decrease) in cash
(753,210)
458
(752,752)
Cash and cash equivalents at the
beginning of the year
4,980,032
51,181
5,031,213
Cash and cash equivalents at the
end of the year
$ 4,226,822
$ 51,639
$ 4,278,461
RECONCILIATION OF TOTAL CASH AND CASH EQUIVALENTS:
Cash and cash equivalents
$ 4,032,112
$ 51,639
$ 4,083,751
Restricted cash and cash equivalents
194,710
-
194,710
Total cash and cash equivalents
4,226,822
51,639
4,278,461
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Operating income
507,636
628
508,264
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization
462,287
-
462,287
Provision for bad debts
6,300
6,300
12,600
Changes in operating assets and liabilities:
Receivables
1,618
(6,242)
(4,624)
Prepaid Items
Inventory
-
596
596
Compensated absences
7,389
-
7,389
Accounts payable
6,386
355
6,741
Customer deposits payable
22,908
-
22,908
Deferred revenue
(33,817)
(1,258)
(35,075)
Net cash provided by operating activities
$ 980,707
$ 379
$ 981,086
The accompanying notes are
are an integral part of this statement.
28
TOWN OF WESTLAKE
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF NET POSITION
SEPTEMBER 30, 2014
ASSETS
Cash and cash equivalents
Accounts receivable (net of allowance)
Prepaid rent
Restricted assets:
Cash and cash equivalents
Capital assets:
Land
Buildinqs and improvements
Machinery and equipment
Less: accumulated depreciation
Total assets
LIABILITIES AND NET POSITION
LIABILITIES:
Texas Student
Texas Student
Texas Student
Housing
Housing
Housing
Authority
Authority
Authority
Ballpark Austin
The Ridge
Town Lake
Project
at North Texas
Austin Project
19,979,733
Total liabilities
45,091,903
$ 781,063
$ 352,180
$ 52,023
60,703
39,271
23,040
Net investment in capital assets
(32,946)
(17,311)
228,364
1,932,392
471,487
4,788,265
2,200,000
2,182,816
21,345,305
25,705,000
16,963,841
6,993,063
1,253,841
1,211,085
(13,419,978)
(12,677,157)
(7,383,625)
20, 776, 785
18, 772, 581
13, 503, 356
Accounts payable and accrued expenses
1,198,555
261,404
236,846
Unearned revenue
205,453
159,835
135,053
Accrued interest payable
9,064,376
6,765,433
3,601,729
Bonds payable
34,623,519
26,352,646
19,979,733
Total liabilities
45,091,903
33,539,318
23,953,361
NET POSITION:
Net investment in capital assets
(14,916,864)
(9,870,962)
(7,005,616)
Unrestricted
(9,398,254)
(4,895,775)
(3,444,389)
Total net position
$ (24,315,118) $
(14,766,737) $
(10,450,005)
The accompanying notes are
are an integral part of this statement.
29
Texas Student
Housing
Authority
Cambridge at
College Station
$ 5,454,797 $
344,289
146,004
1,905,574
EXHIBIT A-10
Texas Student
Housing
Authority Total
552,388 $ 7,192,451
23,718 491,021
- 95,747
4,537,817
2,899,597
12,070,678
26,885,312
90,899,458
3,437,138
12,895,127
(11,712,976)
- (45,193,736)
29,359,735
576,106 82,988,563
278,494
570
1,975,869
2,805,430
40,507
3,346,278
11,573,483
-
31,005,021
29,885,000
-
110,840,898
44, 542,407
41,077
147,168, 066
(8,375,929)
-
(40,169,371)
(6,806,743)
535,029
(24,010,132)
$ (15,182,672) $
535,029 $
(64,179,503)
30
TOWN OF WESTLAKE
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
Program Revenues
The accompanying notes are
an integral part of this statement.
31
Charges for Operating Grants Capital Grants
Functions/Programs
Expenses
Services and Contributions and Contributions
Business -type activities:
Texas Student Housing Authority
$ 292,320 $
421,262 $ $
Texas Student Housing Authority:
Cambridge at College Station
8,154,588
5,811,212
Ballpark Austin Project
6,699,682
4,083,329
Town Lake Austin Project
4,136,014
3,102,367
The Ridge at North Texas
5,601,332
4,491,973
Total business -type activities
24,883,936
17,910,143
Total primary government
$ 24,883,936 $
17,910,143 $ $
GENERAL REVENUES:
Interest Income
Total general revenues
Change in Net Postion
NET POSITION, beginning of year as previously stated
Change in accounting principle
NET POSITION, end of year
The accompanying notes are
an integral part of this statement.
31
EXHIBIT A-11
32
Net (Expense) Revenue and
Changes in Net Position
Texas Student
Texas Student
Texas Student
Texas Student
Housing
Housing
Housing
Housing
Authority
Authority
Authority
Authority
Texas Student
Ballpark Austin
The Ridge at
Town Lake
Cambridge at
Housing
Project
North Texas
Austin Project
College Station
Authority
Total
$ -
$ -
$
$ -
$ 128,942
$ 128,942
-
-
(2,343,376)
-
(2,343,376)
(2,616,353)
-
-
-
(2,616,353)
-
-
(1,033,647)
-
-
(1,033,647)
-
(1,109,359)
-
-
(1,109,359)
(2,616,353)
(1,109,359)
(1,033,647)
(2,343,376)
128,942
(6,973,793)
$ (2,616,353)
$ (1,109,359)
$ (1,033,647)
$ (2,343,376)
$ 128,942
$ (6,973,793)
78
9,772
3
723
813
11,389
78
9,772
3
723
813
11,389
(2,616,275)
(1,099,587)
(1,033,644)
(2,342,653)
129,755
(6,962,404)
(19,553,532)
(13,061,778)
(8,814,788)
(12,840,019)
405,274
(53,864,843)
(2,145,311)
(605,372)
(601,573)
-
-
(3,352,256)
$ (24,315,118)
$ (14,766,737)
$ (10,450,005)
$ (15,182,672)
$ 535,029
$ (64,179,503)
32
TOWN OF WESTLAKE
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Westlake, Texas (the Town) was incorporated under the provisions of the laws
of the State of Texas on December 26, 1956. The Town operates under a Council- Manager
form of government and provides the following services as authorized by the laws of the
State of Texas: public safety; cultural and recreation; and economic development.
The accounting and reporting policies of the Town conform to accounting principles
generally accepted in the United States of America for local governments. Generally
accepted accounting principles (GAAP) for local governments include those principles
prescribed by the Governmental Accounting Standards Board (GASB). The following is a
summary of the more significant accounting and reporting policies:
Financial Reporting Entity
The accompanying financial statements present the government and its component
units, entities for which the government is considered to be financially accountable.
Blended component units, although legally separate entities, are, in substance, part of
the Town's operations and are appropriately presented as funds of the primary
government. Discretely presented component units, on the other hand, are reported in a
separate column in the government -wide financial statements to emphasize it is legally
separate from the Town.
Based on these criteria, the financial information of the following entities have been
blended or discretely presented within the financial statements: Lone Star Public
Facilities Corporation, 4B Economic Development Corporation, Westlake Academy,
Texas Student Housing Authority, Texas Student Housing Authority - Ballpark Austin
Project; Texas Student Housing Authority- Town Lake Austin Project, Texas Student
Housing Authority- Cambridge at College Station and Texas Student Housing Authority -
The Ridge at North Texas.
The Texas Student Housing Authority, Texas Student Housing Authority - Ballpark
Austin Project, Texas Student Housing Authority - Town Lake Austin Project, Texas
Student Housing Authority — Cambridge at College Station, and Texas Student
Housing Authority - The Ridge at North Texas Project (collectively, Texas Student
Housing Entities) are Texas nonprofit organizations as a duly constituted authority of
the Town pursuant to Section 53.35(b) of the Texas Education Code, as amended
(Act). Texas Student Housing Entities' primary purpose is to construct, own, and
operate student housing facilities on college campuses in Texas. The board consists
of seven directors which are appointed by the Town's governing body and has the
ability to remove at will the appointed members; thus, the governing body can
impose its will on the organizations. However, the board is not substantively the
same as the Town's governing body; therefore, the Texas Student Housing Entities
are reported as discretely presented component units (enterprise funds). The Town
is not responsible for the long-term debt of the Texas Student Housing Entities. The
Texas Student Housing Entities year-end is August 31.
33
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Component Units — Continued
Discretely Presented — Continued
Separately issued financial reports are available for the all the Texas Student
Housing Entities. These reports may be obtained by contacting the following office.
Texas Student Housing Authority
3 Village Circle, Suite 202
Westlake, Texas 76262
Blended
Lone Star Public Facilities Corporation is a Texas nonprofit corporation that acts on
behalf of the Town to further the public purposes under the Public Facilities
Corporation Act, as it's duly constituted authority and instrumentality. The board of
directors, appointed by the Town's governing body, is comprised of seven members,
of whom five must be members of the Town's governing body. Since the board of
directors is substantively the same as the Town's governing body, the entity has
been reported as a blended component unit of the Town.
4B Economic Development Corporation is a Texas nonprofit industrial corporation
under the Development Corporation Act of 1979 formed to promote economic
development within the Town and the State of Texas in order to eliminate
unemployment and underemployment, and to promote and encourage employment
and the public welfare of, for, and on behalf of the Town by developing,
implementing, financing, and providing one or more projects defined and permitted
under Section 413 of the Act. The board of directors is composed of seven persons
appointed by the members of the Town's governing board. Four of the members of
the board of directors are members of the Town's governing board. Since the board
of directors is substantively the same as the Town's governing body, the entity has
been reported as a blended component unit of the Town.
Westlake Academy (Academy) is an open -enrollment charter school, as provided by
Subchapter D, Chapter 12, of the Texas Education Code. The Town of Westlake
(Charter Holder) applied for and became the first municipality in Texas to ever
receive this special charter designation. The board consists of six trustees and is
appointed by the Town's governing body. Currently, all the members of the board of
trustees are members of the Town's governing body. Since the board of directors is
substantively the same as the Town's governing body, the entity has been reported
as a blended component unit of the Town. The Academy's year-end is August 31.
34
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the non -fiduciary activities of the
Town. 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. Likewise, the primary
government is reported separately from certain legally separate component units for
which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or segment is offset by program revenues. Direct expenses are those that
are clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead 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.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
financial statements. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the Town
considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when
payment is due.
35
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Measurement Focus, Basis of Accounting, and Financial Statement Presentation —
Continued
Sales taxes, franchise taxes, licenses, and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other revenue items are considered to be
measurable and available only when cash is received by the Town.
The Town uses funds to report on its financial position and the results of its operations.
Fund accounting is designed to demonstrate legal compliance and to aid financial
management by segregating transactions related to certain government functions or
activities. A fund is a separate accounting entity with a self -balancing set of accounts.
Governmental Funds are those through which most governmental functions of the
Town are financed. The acquisition, use, and balances of the Town's expendable
financial resources and the related liabilities (except those accounted for in the
proprietary fund type) are accounted for through governmental funds. The measurement
focus is upon determination of changes in financial position, rather than upon income
determination.
The Town reports the following major governmental funds:
General Fund - to account for all financial resources except those required to be
accounted for in another fund. The General Fund balance is available for any purpose,
provided it is expended or transferred in accordance with the legally adopted budget of
the Town.
Westlake Academy Fund - to account for all local, state and federal revenue and
related educational expenditures of the Academy.
Debt Service Fund - to account for resources accumulated and payments made for
principal and interest on long-term general obligation debt of governmental funds.
Capital Projects Fund - to account for proceeds from long-term financing and revenue
and expenditures related to authorized construction and other capital asset acquisitions
other than those related to the expansion of Westlake Academy facilities.
Westlake Academy Expansion Fund — to account for proceeds from long-term
financing and revenue and expenditures related to authorized construction related to the
expansion of Westlake Academy facilities.
36
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Measurement Focus, Basis of Accounting, and Financial Statement Presentation —
Continued
In addition, the Town reports the following nonmajor governmental funds:
Visitors Association Fund - to account for municipal hotel occupancy taxes collected
and expenditures to promote tourism and the convention and hotel industry.
Lone Star Public Facilities Corporation - to account for investment activity relating to
the Lone Star Public Facilities Corporation.
4B Economic Development Corporation - to account for sales tax collected to fund
the activities of the 413 Economic Development Corporation.
Economic Development Fund - to account for sales tax and hotel occupancy tax
collected to fund activity relating to Economic Development agreements.
The Town adopts an annual appropriated budget for all governmental funds except
capital projects and Westlake Academy Expansion funds, which are project -length
based budgets. A budgetary comparison schedule has been provided for all appropriate
funds to demonstrate compliance with the budget.
Proprietary Funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal ongoing
operations. The principal operating revenues of the Town's Enterprise Fund are charges
to customers for sales and services. Operating expenses for the Enterprise Fund include
the cost of sales and services, administrative expenses, and depreciation on capital
assets. All revenue and expenses not meeting this definition are reported as
nonoperating revenue and expenses.
The Town reports the following major proprietary funds:
Utility Fund - to account for revenues and expenses related to providing water and
sewer services to the general public on a continuing basis.
Cemetery Fund- to account for the operations of the Town's cemetery.
As a general rule, the effect of interfund activity has been eliminated from the
government -wide financial statements. Exceptions to this general rule are charges
between the Town's water and wastewater function and various other functions of the
government. Elimination of these charges would distort the direct costs and program
revenue reported for the various functions concerned.
Amounts reported as program revenues include: 1) charges to customer or applicants
for goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenue. Likewise,
general revenue includes all taxes.
37
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Assets, Liabilities, and Net Position or Equity
Cash and Cash Equivalents
Cash and investments of all funds, including restricted cash, are available upon
demand and are considered to be "cash equivalents."
For purposes of the statement of cash flows, the Town considers highly -liquid
investments (including restricted assets) with an original maturity of three months or
less when purchased to be cash equivalents.
State statutes authorize the Town to invest in (1) obligations of the United States or
its agencies and instrumentalities; (2) direct obligations of the State of Texas or its
agencies; (3) other obligations, the principal of, and interest on, which are
unconditionally guaranteed or insured by the State of Texas or the United States; (4)
obligations of states, agencies, counties, cities, and other political subdivisions of any
state having been rated as to investment quality by a nationally recognized
investment rating firm and having received a rating of not less than "A" or its
equivalent; (5) certificates of deposit by state or national banks domiciled in this state
that are (a) guaranteed or insured by the Federal Deposit Insurance Corporation, or
its successor; or, (b) secured by obligations that are described by (1) - (4); or (6) fully
collateralized direct repurchase agreements having a defined termination date,
secured by obligations described by (1) pledged with third -party selected or (2)
approved by the Town, and placed through a primary government securities dealer.
All investments are recorded at fair value based on quoted market prices. Fair value
is the amount at which a financial instrument could be exchanged in a current
transaction between willing parties.
Receivables and Payables
Transactions between funds that are representative of lending/borrowing
arrangements outstanding at the end of the fiscal year are referred to as "due to/from
other funds" (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." 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, as reported in the fund financial statements, are offset by
a fund balance reserve account in applicable governmental funds to indicate that
they are not available for appropriation and are not expendable available financial
resources.
38
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Assets, Liabilities, and Net Position or Equity — Continued
Receivables and Payables — Continued
All property tax receivables are shown net of an allowance for uncollectibles. The net
property tax receivable allowance is equal to management's estimate of uncollectible
outstanding property taxes at September 30, 2014.
The Town's property taxes are levied on October 1 on the assessed value listed as
of the prior January 1 for all real and business personal property located in the Town.
Assessed values are established at 100% of estimated market value. Property taxes
attach as an enforceable lien on property as of January 1. Taxes are due by
January 31 following the October 1 levy date and are considered delinquent after
January 31 of each year.
Restricted Assets
Certain bond proceeds, as well as certain resources set aside for their repayment,
are classified as restricted assets on the balance sheet because their use is limited
by applicable bond covenants.
Inventories and prepaid items
Inventories, which are expended as they are consumed, are stated at the lower of
cost or market on a first -in, first -out basis.
Certain payments to vendors reflect costs applicable to future accounting periods
and are recorded as prepaid items in both the government -wide and fund financial
statements.
Fund Changes and Transactions Between Funds
Legally authorized transfers are treated as transfers in and out and are included as
other financing sources (uses) of both governmental and proprietary funds.
The Town allocates an indirect cost percentage of the salaries, wages and related
costs of personnel who perform administrative services as well as other indirect
costs necessary for the operation of various funds. Expenses are budgeted and paid
from the appropriate fund.
39
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Assets, Liabilities, and Net Position or Equity — Continued
Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual
historical cost is not available. The cost of nominal maintenance and repairs that do
not add value to the asset or materially extend assets' lives are not capitalized.
Donated assets are valued at their fair market value on the date donated. Assets
capitalized have an original cost of $5,000 or more and three years or more of life. All
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), regardless
of the acquisition date or amount, have been included. Estimated historical cost for
initial reporting of infrastructure assets (those reported by governmental activities)
was valued by estimating the current replacement cost of the infrastructure and using
an index to deflate the cost to the estimated acquisition/construction year. As the
Town constructs or acquires additional capital assets, including infrastructure assets,
they are capitalized and reported at historical cost.
Depreciation has been calculated on each class of depreciable property using the
straight-line method. Estimated useful lives are as follows:
Assets
Years
Water and sewer system 10-50
Buildings 20-50
Machinery and equipment 3-30
Improvements 5-30
Information systems and software 3
Compensated Absences
The Town's policy allows employees to earn 5 days of vacation and 5 days of sick
leave between six months and one year of service, and 10 days of vacation and 10
days of sick leave between one year and two years of service and each successive
year through five years of service. After completion of 5 years of service, 15 days of
vacation and 15 days of sick leave per year are earned. After completion of 10 years
of service, 20 days of vacation and 20 days of sick leave per year are earned. The
Town makes sick and vacation time available in full at the beginning of each year,
and hours are actually earned throughout the year. Unused, earned vacation hours
are paid upon termination or retirement at the employee's normal hourly rate;
accumulated, unused sick time is not payable upon termination or retirement.
,s
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Assets, Liabilities, and Net Position or Equity — Continued
Long-term Obligations
In the government -wide financial statements and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business -type activities, or
proprietary fund type statement of net position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the straight-line method,
which approximates the effective interest method. Bonds payable are reported net of
the applicable bond premium or discount. In the fund financial statements,
governmental fund types recognize bond premiums and discounts, as well as
issuance costs during the current period. The face amount of the debt issued is
reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources while discounts are reported as other financing
uses. Issuance costs, even if withheld from the actual proceeds, are reported as
expenditures.
Fund Equity and Net Position
The governmental fund financial statements present fund balances based on
classifications that comprise a hierarchy that is based primarily on the extent to
which the Town is bound to honor constraints on the specific purposes for which
amounts in the respective governmental funds can be spent.
The classifications used in the governmental fund financial statements are as
follows:
Nonspendable: This classification includes amounts that cannot be spent
because they are either (a) not in spendable form or (b) are legally or
contractually required to be maintained intact. Nonspendable items are not
expected to be converted to cash or are not expected to be converted to cash
within the next year.
Restricted: This classification includes amounts for which constraints have been
placed on the use of the resources either (a) externally imposed by creditors,
grantors, contributors, or laws or regulations of other governments, or (b)
imposed by law through constitutional provisions or enabling legislation.
Committed: This classification includes amounts that can be used only for
specific purposes pursuant to constraints imposed by board resolution of the
Town council, the Town's highest level of decision making authority. These
amounts cannot be used for any other purpose unless the Town council removes
or changes the specified use by taking the same type of action that was
employed when the funds were initially committed. This classification also
includes contractual obligations to the extent that existing resources have been
specifically committed for use in satisfying those contractual requirements.
41
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — CONTINUED
Assets, Liabilities, and Net Position or Equity — Continued
Fund Equity and Net Position — Continued
• Assigned: This classification includes amounts that are constrained by the
Town's intent to be used for a specific purpose but are neither restricted nor
committed. In the General Fund, assigned amounts represent intended uses
established by the Town Council or a Town official delegated that authority by
Town Charter or ordinance.
• Unassigned: This classification includes the residual fund balance for the
General Fund. The unassigned classification also includes negative residual fund
balance of any other governmental fund that cannot be eliminated by offsetting of
assigned fund balance amounts.
In the government -wide financial statements, net position represents the difference
between assets and liabilities. Net investment in capital assets consists of capital
assets, net of accumulated depreciation, reduced by the outstanding balances of any
borrowing used for the acquisition, construction or improvements of those assets,
and adding back unspent proceeds. Net position is reported as restricted when there
are limitations imposed on its use either though the enabling legislations adopted by
the Town or through external restrictions imposed by creditors, grantors or laws or
regulations of other governments.
The government -wide and fund level financial statements report restricted fund
balances for amounts not available for appropriation or legally restricted for specific
uses. When an expenditure is incurred for purposes for which both restricted and
unrestricted fund balance is available, it is the Town's policy to use restricted
resources first, then unrestricted resources as needed. When an expenditure is
incurred for which committed, assigned, or unassigned fund balances are available,
the Town considers amounts to have been spent first out of committed funds, then
assigned funds, and finally unassigned funds.
Estimates
The preparation of financial statements, in conformity with U.S. generally accepted
accounting principles, requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period. Actual
amounts could differ from those estimates.
Subsequent Events
The Town has evaluated all events or transactions that occurred after September 30,
2014 up through February 17, 2015, the date the financial statements were issued.
M
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2. CASH AND INVESTMENTS
Legal provisions generally permit the Town to invest in certificates of deposit, repurchase
agreements, public funds investment pools, direct obligations of the United States of
America or its subdivisions and state and local government securities.
The Public Funds Investment Act (Government Code Chapter 2256) contains specific
provisions in the areas of investment practices, management reports and establishment of
appropriate policies. Among other things, it requires the Town to adopt, implement, and
publicize its investment policy.
That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio
diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of
return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum
average dollar - weighted maturity allowed based on the stated maturity date for the
portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for
certificates of deposit.
Statutes and the Town's investment policy authorized the Town to invest in the following
investments as summarized in the table below:
The Town did not engage in repurchase or reverse repurchase agreement transactions
during the current year.
At year end, the carrying amount of the Town's deposits was $17,025,613 and the bank
balance was $17,496,609. The bank balance was completely covered by federal deposit
insurance and collateral held by the pledging financial institution in the Town's name.
At year end, the carrying amount of the component units' deposits was $11,730,268 and the
bank balance was $11,709,260. The bank balance was completely covered by federal
deposit insurance and collateral held by the pledging financial institution in the component
units' names. The carrying amount consists of $7,192,451 in cash and cash equivalents and
$4,537,817 in restricted cash and cash equivalents.
43
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
Investment Type
Maturity
of Portfolio
In One Issuer
Obligations of the U.S. Government,
its agencies and instrumentalities
2 years
None
None
Certificates of deposit
1 year
None
None
Mutual funds
2 years
80%
None
Investment pools
-
None
None
The Town did not engage in repurchase or reverse repurchase agreement transactions
during the current year.
At year end, the carrying amount of the Town's deposits was $17,025,613 and the bank
balance was $17,496,609. The bank balance was completely covered by federal deposit
insurance and collateral held by the pledging financial institution in the Town's name.
At year end, the carrying amount of the component units' deposits was $11,730,268 and the
bank balance was $11,709,260. The bank balance was completely covered by federal
deposit insurance and collateral held by the pledging financial institution in the component
units' names. The carrying amount consists of $7,192,451 in cash and cash equivalents and
$4,537,817 in restricted cash and cash equivalents.
43
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2. CASH AND INVESTMENTS — CONTINUED
At September 30, 2014, the Town's cash and cash equivalents consist of and are classified
in the accompanying financial statements are follows:
Cash and cash equivalents
Restricted cash and investments
Total cash and investments
Deposits with financial institutions
Investments
Total cash and investments
Disclosures Relating to Interest Rate Risk
$ 16,831,253
194,710
$ 17,025,963
$ 17,025,613
350
$ 17,025,963
This is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment the greater the
sensitivity of its fair value to changes in market interest rates. In order to limit interest
and market rate risk from changes in interest rates, the Town's investment policy sets a
maximum stated maturity limit of two years for obligations of the United States
Government, its agencies and instrumentalities (excluding mortgage backed securities)
and one year for fully insured or collateralized certificates of deposit. No more than 80%
of the Town's monthly average balance may be invested in money market funds.
Additionally, the Town invests in an investment pool that purchases a combination of
shorter term investments with an average maturity of 48 days thus reducing the interest
rate risk. Information about the sensitivity of the fair values of the Town's investments to
market interest rate fluctuations is provided by the following table that shows the
distribution of the Town's Investments.
As of September 30, 2014, the Town's investments were as follows:
Investment Type
Carrying
Amount
Weighted
Average
Fair Value Maturity (days)
TexPool $ 350 $ 350 48 days
44
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — CONTINUED
Disclosures Relating to Credit Risk — Continued
This is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating
required by (where applicable) the Public Funds Investment Act, the Town's investment
policy, or debt agreements, and the actual rating as of year-end for each investment
type.
Primary government
Investments:
TexPool
Carrying Fair
Amount Value
$ 350 $ 350
Disclosures Relating to Concentration of Credit Risk
Minimum
Rating
Legal
as of
Rating
Year-end
N/A
AAA -m
The Town's investment policy is to avoid a concentration of assets in a specific maturity,
a specific issue, or a specific class of investments.
Disclosures Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside party. The
custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The
Public Funds Investment Act does not contain legal or policy requirements that would
limit the exposure to custodial credit risk for deposits or investments, other than the
following provision for deposits: The Public Funds Investment Act requires that a
financial institution secure deposits made by state or local governmental units by
pledging securities in an undivided collateral pool held by a depository regulated under
state law (unless so waived by the governmental unit). The market value of the pledged
securities in the collateral pool must equal at least the bank balance less the FDIC
insurance at all times.
The Town requires all deposits to be covered by Federal Depository Insurance
Corporation (FDIC) insurance and/or collateralized by qualified securities pledged by the
Town's depository in the Town's name and held by the depository's agent.
As of September 30, 2014, the Town's entire cash deposits with financial institutions in
excess of federal depository insurance were fully collateralized.
45
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2. DEPOSITS AND INVESTMENTS — CONTINUED
Investment in State Investment Pools
On September 1, 1989, local government investment pools became authorized
investments for the majority of public entities in Texas. The Interlocal Cooperation Act
was amended by the 71St Texas Legislature to facilitate the creation of local government
investment pools in Texas. This act permits the creation of investment pools to which a
majority of political subdivisions (local governments) may delegate, by contract, the
authority to make investments purchased with local investment funds and to hold legal
title as custodian of the investments. TexPool was organized to conform with the
Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public
Funds Investment Act, Chapter 2256 of the Texas Government Code.
During the year ended September 30, 2014, the Town had investments with TexPool.
TexPool, a public funds investment pool created by the Treasurer of the State of Texas
acting by and through the Texas Treasury Safekeeping Trust Company, which is
empowered to invest funds and acts as custodian of investments purchased with local
investment funds. These investments are not required to be categorized because the
investor is not issued securities, but rather it owns an undivided beneficial interest in the
assets of the respective funds. The fair value of the position in TexPool is the same as
the value of the pool shares.
Restricted Cash
Proprietary Fund
Within the proprietary funds, $194,710 of the fund represents customer deposits
received for water and sewer usage that are refundable upon termination of service.
Discretely Presented Component Units
Within the discretely presented component units, the $4,537,817 in restricted cash
and cash equivalents represents funds held for debt service.
me
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 3. RECEIVABLES
Governmental activities receivable balance consists of the following as of September 30,
2014:
Receivables:
Sales tax
Property tax
Othertaxes
Franchise tax
Accounts
Other
Gross receivables
Less: allowance
for uncollectibles
Net total receivables
Governmental Funds
Debt Total
Westlake Service Nonmajor Governmental
General Academy Fund Fund Funds
$ 451,937 $ - $ - $ 177,474 $ 629,411
19,137 - 1,981 21,118
13,269 - - 65,990 79,259
195,118 - - 195,118
69,264 - - 69,264
90,120 330,292 - - 420,412
838,845 330,292 1,981 243,464 1,414,582
(52,993) - (495) - (53,488)
$ 785,852 $ 330,292 $ 1,486 $ 243,464 $ 1,361,094
Business -type receivables balance consists of the following as of September 30, 2014:
Business -Type Activities
Utility Cemetery
Fund Fund Total
Receivables:
Sales tax
$ - $
$ -
Property tax
-
Othertaxes
-
Franchise tax
-
-
Accounts
835,303
58 835,361
Other
-
-
Gross receivables
835,303
58 835,361
Less: allowance
for uncollectibles
-
-
Net total receivables
$ 835,303 $
58 $ 835,361
47
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2014, was as follows:
Primary Government
48
Beginning
Ending
Balance
Increases
Decreases Transfers
Balance
Governmental activities:
Capital assets, not being depreciated:
Land
$ 11,896,663
$ -
$ $ -
$ 11,896,663
Construction in progress
2,834,092
1,123,009
(1,488,663)
2,468,438
Total assets not being depreciated
14,730,755
1,123,009
(1,488,663)
14,365,101
Capital assets, being depreciated:
Capital improvements
11,374,376
-
-
11,374,376
Buildings
21,777,872
8,359,119
1,488,663
31,625,654
Machinery and equipment
2,840,828
495,728
-
3,336,556
Information systems and software
70,854
34,710
-
105,564
Total capital assets being depreciated
36,063,930
8,889,557
1,488,663
46,442,150
Less accumulated depreciation:
Capital improvements
(3,189,854)
(369,800)
-
(3,559,654)
Buildings
(4,165,981)
(449,820)
(4,615,801)
Machinery and equipments
(2,264,537)
(103,002)
(2,367,539)
Information systems and software
(52,430)
(6,141)
(58,571)
Total accumulated depreciation
(9,672,802)
(928,763)
-
(10,601,565)
Total capital assets being depreciated
26,391,128
7,960,794
1,488,663
35,840,585
Governmental activities
capital assets, net
$ 41,121,883
$ 9,083,803
$ $ -
$ 50,205,686
Beginning
Ending
Balance
Increases
Decreases Transfers
Balance
Business -type activities:
Capital assets, not being depreciated:
Construction in progress
$ 342,924
$
$ $ (96,803)
$ 246,121
Total assets not being depreciated
342,924
(96,803)
246,121
Capital assets, being depreciated:
Capital improvements
13,376,253
1,409,779
96,803
14,882,835
Wastewater treatment rights
635,199
-
-
635,199
Machinery and equipment
3,466,046
32,102
-
3,498,148
Total capital assets being depreciated
17,477,498
1,441,881
96,803
19,016,182
Less accumulated depreciation:
Capital improvements
(3,761,351)
(311,627)
-
(4,072,978)
Wastewater treatment rights
(418,173)
(31,760)
(449,933)
Machinery and equipment
(1,517,657)
(118,900)
(1,636,557)
Total accumulated depreciation
(5,697,181)
(462,287)
-
(6,159,468)
Total capital assets being depreciated
11,780,317
979,594
96,803
12,856,714
Business -type activities
capital assets, net
$ 12,123,241
$ 979,594
$ $ -
$ 13,102,835
48
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. CAPITAL ASSETS — CONTINUED
Depreciation was charged to departments of the primary government as follows:
Governmental activities:
General government $ 513,698
Public safety 75,052
Public works 340,013
Total depreciation expense - governmental activities $ 928,763
Business -type activities:
Water and sewer
$ 462,287
A summary of discretely presented component units' capital assets at September 30, 2014
follows:
Texas Student Housing Authority — Ballpark Austin Project
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated
Land
$ 4,788,265
$ - $
$ 4,788,265
Total assets not being depreciated
4,788,265
-
4,788,265
Capital assets, being depreciated:
Buildings
21,345,305
-
21,345,305
Furniture and fixtures
6,993,063
-
6,993,063
Total capital assets being depreciated
28,338,368
-
28,338,368
Less accumulated depreciation:
Buildings
(8,300,952)
(711,510)
(9,012,462)
Furniture and fixtures
(4,258,350)
(149,166)
(4,407,516)
Total accumulated depreciation
(12,559,302)
(860,676)
(13,419,978)
Total capital assets being depreciated
15,779,066
(860,676)
14,918,390
Capital assets, net
$ 20,567,331
$ (860,676) $
$ 19,706,655
49
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. CAPITAL ASSETS — CONTINUED
Texas Student Housing Authority — The Ridge at North Texas
Beginning Ending
Capital assets, not being depreciated
Land
$ 2,200,000
$ - $
$ 2,200,000
Total assets not being depreciated
2,200,000
-
2,200,000
Capital assets, being depreciated:
Land
$ 2,182,816 $ -
$ $ 2,182,816
Buildings
25,705,000
-
25,705,000
Furniture and fixtures
1,253,841
-
1,253,841
Total capital assets being depreciated
26,958,841
887,095 -
26,958,841
Less accumulated depreciation:
2,806,596 -
2,806,596
Unit appliances
Buildings
(10,639,014)
(856,833)
(11,495,847)
Furniture and fixtures
(1,172,860)
(8,450)
(1,181,310)
Total accumulated depreciation
(11,811,874)
(865,283)
(12,677,157)
Total capital assets being depreciated
15,146,967
(865,283)
14,281,684
Capital assets, net
$ 17,346,967
$ (865,283) $
$ 16,481,684
Texas Student Housing Authority — Town Lake Austin Project
Less accumulated depreciation
Building and improvements
Beginning
Ending
- (4,976,306)
Balance Increases
Decreases Balance
Capital assets, not being depreciated:
- (313,325)
Land improvements
Land
$ 2,182,816 $ -
$ $ 2,182,816
Total assets not being depreciated
2,182,816 -
2,182,816
Capital assets, being depreciated:
Furniture and fixtures
(915,951)
Building and improvements
13,270,150 -
13,270,150
Capitalized purchase price
887,095 -
887,095
Land improvements
2,806,596 -
2,806,596
Unit appliances
295,134 -
- 295,134
Furniture and fixtures
915,951 -
- 915,951
Total capital assets being depreciated
18,174,926 -
- 18,174,926
Less accumulated depreciation
Building and improvements
(4,533,968)
(442,338)
- (4,976,306)
Capitalized purchase price
(284,840)
(28,485)
- (313,325)
Land improvements
(789,356)
(93,553)
- (882,909)
Unit appliances
(295,134)
- (295,134)
Furniture and fixtures
(915,951)
- (915,951)
Total accumulated depreciation
(6,819,249)
(564,376)
- (7,383,625)
Total capital assets being depreciated
11,355,677
(564,376)
- 10,791,301
Capital assets, net
$ 13,538,493
$ (564,376) $
- $ 12,974,117
50
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. CAPITAL ASSETS — CONTINUED
Texas Student Housing Authority — Cambridge at College Station
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated:
Land $ 2,899,597 $ $ $ 2,899,597
Total assets not being depreciated 2,899,597 - 2,899,597
Capital assets, being depreciated
Buildings
26,885,312
$ (2,807,000) $
26,885,312
Furniture and fixtures
3,437,138
84,598
3,437,138
Total capital assets being depreciated
30,322,450
17,420
30,322,450
Less accumulated depreciation:
371,464
48,247
-
Buildings
(7,957,433)
(895,741)
(8,853,174)
Furniture and fixtures
(2,771,229)
(88,573)
(2,859,802)
Total accumulated depreciation
(10,728,662)
(984,314)
(11,712,976)
Total capital assets being depreciated
19,593,788
(984,314)
18,609,474
Capital assets, net
$ 22,493,385
$ (984,314) $
$ 21,509,071
NOTE 5. LONG-TERM DEBT
A summary of long-term debt transactions for the year ended September 30, 2014, was as
follows:
Governmental activities:
General obligation bonds and
certificates of obligation
Unamortized bond premium
Notes payable
Capital leases
Fidelity tax reimbursement
Compensated absences
Total governmental activities
Beginning
Balance Additions Reductions
Amount
Ending Due within
Balance One year
$ 29,186,800 $
1,910,000
$ (2,807,000) $
28,289,800
$ 1,050,550
700,588
84,598
(40,858)
744,328
-
17,420
401,484
(47,440)
371,464
48,247
-
239,009
(1,631)
237,378
83,031
96,026
-
(30,237)
65,789
31,975
106,404
120,920
(69,461)
157,863
15,786
$ 30,107,238 $
2,756,011
$ (2,996,627) $
29,866,622
$ 1,229,589
51
Amount
Beginning
Ending
Due within
Balance
Additions Reductions
Balance
One year
Business -type activities:
Certificates of obligation
$ 1,025,200
$ $ (11,000) $
1,014,200
$ 21,450
Contractual obligations
5,412,149
(91,325)
5,320,824
94,530
Unamortized bond premium
34,569
(1,172)
33,397
-
Compensated absences
13,527
16,757 (9,368)
20,916
2,092
Total business -type activities
$ 6,485,445
$ 16,757 $ (112,865) $
6,389,337
$ 118,072
51
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT — CONTINUED
General Obligation Bonds and Certificates of Obligation
General obligation bonds and certificates of obligation are as follows as of
September 30, 2014:
General Obligations Bonds and
Certificates of Obligation
$7,465,000 General Obligation Refunding Bonds,
Series 2007
$2,095,000 Combination Tax and Revenue
Certificates of Obligation, Series 2011
$7,375,000 General Obligation Refunding Bonds,
Series 2011
$9,320,000 Certificates of Obligation, Series 2013
$2,200,000 General Obligation Refunding Bonds,
Series 2013
$1,910,000 General Obligation Refunding Bonds,
Series 2014
Final
Business -
Maturity
Interest Rates
Governmental
Type
2015
$ 1,050,550
$ 961,828
2032
3.75-4.20%
$ 7,200,000
$
2031
3.25%
1,824,000
939,260
2028
2.0-4.0%
7,175,000
-
2043
2.0-4.0%
8,205,800
1,014,200
2028
2.0-2.5%
1,975,000
-
2032
2.0-5.0%
1,910,000
-
10,103,039
2030-2034
5,726,400
$ 28,289,800
$ 1,014,200
Debt service requirements of certificates of obligation and general obligations to be
retired from governmental funds are as follows:
Year Ending
Total
September 30,
Principal
Interest
Requirements
2015
$ 1,050,550
$ 961,828
$ 2,012,378
2016
1,068,550
942,543
2,011,093
2017
1,088,000
939,260
2,027,260
2018
1,127,000
897,495
2,024,495
2019
1,160,450
863,898
2,024,348
2020-2024
6,367,250
3,761,614
10,128,864
2025-2029
7,475,350
2,627,689
10,103,039
2030-2034
5,726,400
1,100,459
6,826,859
2035-2039
1,655,400
470,924
2,126,324
2040
1,570,850
128,961
1,699,811
$ 28,289,800
$ 12,694,671
$ 40,984,471
52
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT - CONTINUED
General Obligation Bonds and Certificates of Obligation - Continued
Debt service requirements of certificates of obligation to be retired from proprietary funds
are as follows:
Year Ending
September 30,
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035-2039
2040-2043
Total
Principal
$ 21,450
21,450
22,000
22,000
22,550
123,750
155,650
226,600
204,600
194,150
Interest
$ 34,325
33,896
33,461
33,021
32,576
154,472
134,550
98,474
58,204
15,939
Total
Requirements
$ 55,775
55,346
55,461
55,021
55,126
278,222
290,200
325,074
262,804
210,089
$ 1,014,200 $ 628,918 $ 1,643,118
In January 2014, the Town issued $1,910,000 General Obligation Refunding Bonds,
Series 2014 for the purpose of refunding $1,880,000 of Combination Tax and Limited
Pledge Revenue Certificates of Obligation, Series 2003. The refunding was undertaken
to lower debt service requirements. The reacquisition price exceeded the net carrying
amount of the old debt by $45,315. This amount is recorded as a deferred outflow of
resources and is being amortized over the life of the refunded debt. The transaction
reduced future debt service payments by $197,294 and resulted in an economic gain
(difference between the debt service payments of the old debt and new debt) of
$141,287.
Notes Payable
In March 2014, the Town received a $366,774 loan from Bennett Benner Pettit, the
proceeds of which will be used to fund a portion of the Westlake Academy expansion
project. The terms of the note call for ten annual payments at 0% interest.
In August 2014, the Town entered into a purchase agreement to acquire technology
equipment secured by a 3 -year interest-free note in the amount of $34,710.
53
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT— CONTINUED
Notes Payable — Continued
Debt service requirements for the notes payable to be retired from governmental funds
are as follows:
Year Ending
September 30,
2015
$ 48,247
2016
48,247
2017
36,677
2018
36,677
2019
36,677
2020-2024
164,939
Total
$ 371,464
Capital Leases
The Westlake Academy has entered into a lease agreement as lessee for financing the
acquisition of computer equipment and software. The lease agreement qualifies as a
capital lease for accounting purposes, and therefore, has been recorded at the present
value of its future minimum lease payments as of the inception date.
Equipment and software with a historical cost of $239,009 was under capital lease at
September 30, 2014. Because the cost of the individual items was below the Town's
capitalization threshold, the entire cost was recorded as expense during the year ended
September 30, 2014.
The following schedule shows the future minimum lease payments under the capitalized
lease together with the present value of the net minimum lease payments as of
September 30, 2014:
Year Ending Annual
August 31, Lease Payments
2015 $ 84,186
2016 84,186
2017 84,186
Total minimum lease payments 252,558
Less: Amounts representing interest (15,180)
Present value of net minimum lease payments $ 237,378
54
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT — CONTINUED
Fidelity Tax Reimbursement
On August 10, 1998, the Town entered into an economic development agreement with
Fidelity Texas Limited Partnership ("Fidelity") which provided that Fidelity will receive a
rebate of one percent of local sales taxes collected by the Town and paid by Fidelity.
The agreement provided that the rebate will be paid to Fidelity within 30 days of each
calendar quarter from the sales taxes received by the Town. On November 13, 2000, the
agreement was amended to allow for a payment schedule of fifteen annual equal
installments for sales tax rebate due and payable to Fidelity. The amount due will not
bear interest. The loan is discounted to present value and amortized over the life of the
loan using the effective interest method.
Debt service requirements for deferred rebates to be retired from governmental funds
are as follows:
Year Ending
September 30,
2015
2016
Total
Contractual Obligations
Principal
Interest
Total
Requirements
$ 31,975 $ 3,783 $ 35,758
33,814 1,944 35,758
$ 65,789 $ 5,727 $ 71,516
Proprietary funds contractual obligations as of September 30, 2014 are as follows:
Business -
Contractual Obligations Maturity Interest Rate Type
Elevated Water Storage Facility 2020 5.0-5.65% $ 640,880
Limited pledge contractual obligation:
Dove Road Water Line and
West Pump Station 2028 6.75% 4,679,944
$ 5,320,824
Elevated Water Storage Facility - On October 9, 2000, the Town approved an interlocal
agreement with the City of Keller, which provided for the joint construction, operation,
maintenance and use of an elevated water storage facility and appurtenances. The
Town recorded a contractual obligation of $1,466,000 based on the terms of the
interlocal agreement, which requires 20 annual principal and interest payments to the
City of Keller, with payments due each September 30 at interest rates ranging from 5.0%
to 5.65%.
55
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT — CONTINUED
Contractual Obligations — Continued
Dove Road Water Line and West Pump Station - In April 2000, the Town approved an
agreement with the Hillwood Development Corporation (Hillwood). In the agreement,
Hillwood agreed to bear all initial costs for the design, engineering and constructions of
the Dove Road Water Line and the West Pump Station that will service the residents of
the Town. The Town agreed to reimburse Hillwood for the cost of the project upon
completion and the Town's acceptance of the project, which occurred in June 2001,
solely from a $.25 charge per 1,000 gallons of usage. The Town further agreed to
deposit debt service revenue of $.25 per 1,000 gallons of usage collected from Town
residents to fund its repayment to Hillwood. Debt service revenue will be allocated
between Hillwood service area and Town service area by 52% and 48%, respectively
and deposited into two separate debt service funds that will result in debt service
revenue to pay the respective share of the construction cost. The Town recorded a
limited pledge contractual obligation of $4,679,944 for the project cost based upon the
terms of the agreement, which requires 239 monthly principal and interest payments to
Hillwood, at an interest rate of 6.75%. If the Town collects insufficient funds to pay
current interest on the debt, the interest payment may be deferred. No portion of debt
payments will be applied to the principal component, until all current and deferred
interest is fully paid. The obligation of the Town to pay the purchase price and interest
thereon is not a general obligation of the Town but is a limited recourse obligation
payable solely from debt service revenue.
The schedule of future payments by the Town under these agreements is as follows:
Year Ending
September 30,
2015
2016
2017
2018
2019
2020-2024
2025-2028
Total
Prior Year Defeasance of Debt
In prior years, the government defeased general obligations bonds by placing proceeds
of the new bonds in an irrevocable trust account 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 government's financial statements. At
September 30, 2014, there were no prior year defeased bonds outstanding.
56
Total
Principal
Interest
Requirements
$ 94,530
$ 756,347
$ 850,877
99,336
806,206
905,542
104,143
855,304
959,447
108,950
910,117
1,019,067
233,921
971,449
1,205,370
-
1,761,170
1,761,170
4,679,944
-
4,679,944
$ 5,320,824
$ 6,060,593
$ 11,381,417
In prior years, the government defeased general obligations bonds by placing proceeds
of the new bonds in an irrevocable trust account 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 government's financial statements. At
September 30, 2014, there were no prior year defeased bonds outstanding.
56
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT — CONTINUED
Compensated Absences
Although compensated absences are liquidated by the fund to which they relate, the
significant portion of the governmental activities compensated absences has typically
been liquidated by the general fund.
Discretely Presented Component Units — Long-term Debt
Texas Student Housing Authority — Ballpark Austin Project
The long-term debt activity of the Ballpark Austin Project is as follows:
The bonds are payable solely from the revenues generated by the Project and secured
by the revenues pledged and assigned under the terms of the trust indenture. Interest
rates on the bonds range from 4.00% to 11.00% and are payable semi-annually.
The debt service requirements of the bonds are as follows:
Year Ending
September 30,
Past Due
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
Total
Principal
$ 1,035,000
800,000
845,000
890,000
940,000
985,000
5,815,000
7,615,000
15,280,000
Interest
$ 4,668,109
1,962,856
1,916,950
1,868,556
1,817,406
1,763,500
7,901,631
6,009,188
6,893,438
Total
Requirements
$ 5,703,109
2,762,856
2,761,950
2,758,556
2,757,406
2,748,500
13,716,631
13,624,188
22,173,438
$ 34,205,000 $ 34,801,634 $ 69,006,634
57
Amounts
Beginning
Ending
Due Within
Balance Increases
Decreases Balance
One Year
Revenue Bonds:
2001 A Bonds
$ 28,840,000 $
$ $ 28,840,000
$ 745,000
2001 B Bonds
2,365,000
2,365,000
55,000
2001 C Bonds
3,000,000
3,000,000
-
Deferred purchase price
1,460,000
1,460,000
Less discounts
(1,101,566)
60,085 (1,041,481)
-
Total
$ 34,563,434 $
$ 60,085 $ 34,623,519
$ 800,000
The bonds are payable solely from the revenues generated by the Project and secured
by the revenues pledged and assigned under the terms of the trust indenture. Interest
rates on the bonds range from 4.00% to 11.00% and are payable semi-annually.
The debt service requirements of the bonds are as follows:
Year Ending
September 30,
Past Due
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
Total
Principal
$ 1,035,000
800,000
845,000
890,000
940,000
985,000
5,815,000
7,615,000
15,280,000
Interest
$ 4,668,109
1,962,856
1,916,950
1,868,556
1,817,406
1,763,500
7,901,631
6,009,188
6,893,438
Total
Requirements
$ 5,703,109
2,762,856
2,761,950
2,758,556
2,757,406
2,748,500
13,716,631
13,624,188
22,173,438
$ 34,205,000 $ 34,801,634 $ 69,006,634
57
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT — CONTINUED
Discretely Presented Long-term Debt — Continued
Texas Student Housing Authority — Ballpark Austin Project — Continued
At August 31, 2013, the Project had not made interest payments on the Subordinate
2001C Bond Series since July 2003, and the Subordinate 2001C Bond is in default. In
addition, the Project's fixed charges coverage ratio was not in compliance with the
covenants of the indenture. These events constitute an event of default that accelerates
the bonds.
Texas Student Housing Corporation -The Ridge at North Texas
The long-term debt activity of the Ridge at North Texas is as follows:
The Bonds are payable solely from the revenues generated by the Denton Property and
are secured by the revenues pledged and assigned under the terms of the Trust
Indenture. The Town of Westlake does not have any liability for the payment of the
bonds as the bonds are non-recourse to both the Town of Westlake and Texas Student
Housing Authority. Interest rates on the bonds range from 5.00% to 11.00% and are
payable semi-annually on July 1 and January 1 of each year thereafter.
At September 30, 2014, the Project was not in compliance with certain covenants of the
Indenture including insufficient funds in some of the required funds discussed in Note 2
and a fixed charges ratio less than 1.0. In addition, all required principal payments on
the Series B bonds had not been made as of September 30, 2014. Upon certain events
of default either the trustee, or owners of not less than 25% in aggregate principal of the
bonds then outstanding, may declare the principal and all interest then due to be
immediately due and payable.
58
Amounts
Beginning
Ending
Due Within
Balance Increases
Decreases
Balance
One Year
Revenue Bonds:
2001 A Bonds
$ 24,445,000 $
$ (735,000)
$ 23,710,000
$ 785,000
2001 B Bonds
3,240,000
-
3,240,000
-
Less discount on bonds
(634,839)
37,485
(597,354)
-
Total
$ 27,050,161 $$
(697,515)
$ 26,352,646
$ 785,000
The Bonds are payable solely from the revenues generated by the Denton Property and
are secured by the revenues pledged and assigned under the terms of the Trust
Indenture. The Town of Westlake does not have any liability for the payment of the
bonds as the bonds are non-recourse to both the Town of Westlake and Texas Student
Housing Authority. Interest rates on the bonds range from 5.00% to 11.00% and are
payable semi-annually on July 1 and January 1 of each year thereafter.
At September 30, 2014, the Project was not in compliance with certain covenants of the
Indenture including insufficient funds in some of the required funds discussed in Note 2
and a fixed charges ratio less than 1.0. In addition, all required principal payments on
the Series B bonds had not been made as of September 30, 2014. Upon certain events
of default either the trustee, or owners of not less than 25% in aggregate principal of the
bonds then outstanding, may declare the principal and all interest then due to be
immediately due and payable.
58
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT — CONTINUED
Discretely Presented Long-term Debt — Continued
Texas Student Housing Corporation — The Ridge at North Texas — Continued
The debt service requirements of the bonds are as follows:
Year Ending
September 30,
Past Due
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
Principal
$ 1,240,000
785,000
835,000
950,000
1,020,000
1,085,000
6,710,000
9,500,000
4,825,000
Interest
$ 6,459,199
1,837,405
1,784,418
1,728,055
1,661,593
1,589,980
6,683,473
3,905,638
531,508
Total
Requirements
$ 7,699,199
2,622,405
2,619,418
2,678,055
2,681,593
2,674,980
13,393,473
13,405,638
5,356,508
$ 26,950,000 $ 26,181,269 $ 53,131,269
Texas Student Housing Authority — Town Lake Austin Project
The bonds are payable solely from the revenues generated by the Project and are
secured by the revenues pledged and assigned under the terms of the Trust Indenture.
Interest rates on the bonds range from 7.76% to 8.69% at present and principal and
interest payments are made monthly.
59
Amounts
Beginning
Ending
Due Within
Balance Increases
Decreses
Balance
One Year
Revenue Bonds:
2002 A-1 Bonds
$ 15,216,509 $
$ (326,017)
$ 14,890,492
$ 354,491
2002 A-2 Bonds
5,089,241
5,089,241
-
Total
$ 20,305,750 $$
(326,017)
$ 19,979,733
$ 354,491
The bonds are payable solely from the revenues generated by the Project and are
secured by the revenues pledged and assigned under the terms of the Trust Indenture.
Interest rates on the bonds range from 7.76% to 8.69% at present and principal and
interest payments are made monthly.
59
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT — CONTINUED
Discretely Presented Long-term Debt — Continued
Texas Student Housing Authority — Town Lake Austin Project — Continued
The future debt service requirements of the bonds are as follows:
Year Ending
September 30,
Past Due
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2033
Total
Principal
354,491
382,998
413,797
447,074
483,026
3,064,148
4,510,942
10,323,257
$ 19,979,733
Interest
$ 3,345,538
1,914,271
1,508,639
1,477,840
1,444,563
1,408,611
6,394,037
4,947,243
2,467,629
$ 24,908,371
Texas Student Housing Authority — Cambridge at College Station
The Project's installment note payable is summarized as follows:
Lender/Security/Due/Date
Cambridge Student Housing Financing
Company, L.P.; substantially all
assets and assignment of rents:
due November 1, 2039
Total
Requirements
$ 3,345,538
2,268,762
1,891,637
1,891,637
1,891,637
1,891,637
9,458,185
9,458,185
12,790,886
$ 44,888,104
Rate Balance
8.00% $ 29,885,000
The following is a summary of long-term debt transactions of the Project for the year
ended August 31, 2014:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
$ 30,310,000 $ - $ (425,000)
.E
$ 29,885,000 $ 515,000
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. LONG-TERM DEBT— CONTINUED
Discretely Presented Long-term Debt — Continued
Texas Student Housing Authority — Cambridge at College Station — Continued
The debt is to be amortized through 2040 with varying payments. The annual
requirements to amortize the Project's outstanding installment notes payable as of
September 30, 2014 are as follows:
Year Ending
September 30, 2014
Past Due
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035-2039
2040
Governmental Activities
Principal Interest
$ 255,000
515,000
555,000
600,000
645,000
720,000
3,525,000
3,325,000
4,790,000
6,915,000
8,040,000
$ 11,161,489
1,838,003
1,795,820
1,751,328
1,703,325
1,650,637
7,371,300
6,173,200
4,653,750
2,442,720
103,808
Total
$ 11,416,489
2,353,003
2,350,820
2,351,328
2,348,325
2,370,637
10,896,300
9,498,200
9,443, 750
9,357,720
8,143,808
Total $ 29,885,000 $ 40,645,380 $ 70,530,380
Class C and D bonds are in default and the property does not generate enough revenue
to pay the debt obligations. All of the Class C and D bonds issued remain outstanding as
of September 30, 2014.
Each class has certain rights and privileges, as contained in the private placement
memorandum. As a part of the offering, the Project entered into a trust agreement with
J. P. Morgan Trust Company, N.A. (the Trustee) for the purpose of determining that
each class is paid in accordance with the private placement memorandum.
At September 30, 2014, the Project was not in compliance with the fixed charge
coverage ratio. As a result, the lender may accelerate the maturity of the unpaid portion
of the principal payable under the installment sale agreement. However, the Authority
does not anticipate this event will occur, since foreclosure by private interests would
result in the loss of tax-exempt status for the Project.
The Town of Westlake does not have any liability for the payment of debt of the
discretely presented component units as the bonds are non-recourse to both the Town
and Texas Student Housing Authority.
61
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6. UNEARNED REVENUE / DEFERRED INFLOWS OF RESOURCES
Unearned revenue in the proprietary fund of $318,352 relates to the collection of the entire
amount due on eight Ductbank leases as follows: one 25 -year lease with AT&T local
network services; five leases with Verizon Southwest ranging from 20 to 30 years; one 5 -
year lease with MCI Metro; and one 5 -year lease with L3 Communications for use of the
Town's Ductbank.
Governmental funds report deferred inflows of resources in connection with receivables for
revenue that is not considered to be available to liquidate liabilities of the current period. At
the end of the current fiscal year, deferred inflows of resources reported in the governmental
funds consist of $14,353 and $1,486 of unavailable property taxes in the general fund and
debt service fund, respectively; and $106,129 of grants to be used primarily in the
subsequent fiscal year in the Westlake Academy fund.
NOTE 7. INTERLOCAL AGREEMENT WITH THE CITY OF SOUTHLAKE
In August 1995, the Town entered into an agreement with the City of Southlake to allow the
Town to utilize capacity in a sewer line and to set forth their respective rights and obligations
with respect to the sewer line owned by the City of Southlake. The Town is obligated to
share in the cost of construction, operation and maintenance of the water sewer line. The
sewer line was constructed in 2000. Additionally, the Town must pay the City of Southlake
all transportation, treatment and related costs allocable to the metered flow of sewage from
the Town into the sewer line.
NOTE 8. FEDERAL AND STATE PROGRAM REVENUES
The Town received financial assistance from various federal and state governmental
agencies in the form of grants for Westlake Academy. The disbursement of funds received
under these programs generally requires compliance with terms and conditions specified in
the grant agreements and are subject to audit by the grantor agencies. Any unallowed
disbursement resulting from such audits becomes a liability of the Town. In the opinion of
the Town management, no material refunds will be required as a result of unallowed
disbursements (if any) by the grantor agencies. Sources of federal and state program
revenues for the year ended September 30, 2014, were as follows:
Source
Federal program revenues:
U.S. Department of Eduation - Passed
through State Department of Education
Westlake
Academy
Total federal program revenues: $ 80,103
State program revenues:
State Department of Education $ 5,269,641
62
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 9. INTERFUND BALANCES AND TRANSACTIONS
Interfund receivables and payables at September 30, 2014, were as follows:
Due from Due to
Other Funds Other Funds
General fund $ 157,353
Nonmajor governmental funds:
413 Economic Development Fund -
Economic Development Fund 11,983
$ 11,983
157,353
$ 169,336 $ 169,336
The 413 Economic Development Corporation fund amount of $157,353 payable to the
General Fund is related to debt service payment reimbursement.
Inter -fund transfers are reported in the governmental funds and proprietary fund financial
statements. In the government -wide statements, inter -fund transfers are eliminated
within the governmental activities column and business -type column, as appropriate.
Transfers are used to (1) move revenues collected in the special revenue funds to
finance various programs in accordance with budgetary authorizations, (2) move
receipts restricted for debt service from the funds collecting the receipts to the Debt
Service fund as debt service payments become due, (3) reimburse one fund for services
provided to another fund, (4) move unrestricted General fund revenues to Capital Project
fund as determined by the Council for capital projects, and (5) transfer payment for
economic development agreements to the Economic Development fund.
Individual fund transfers for fiscal year 2014 were as follows:
Transfer out
Transfer in
Amount
Purpose
General Fund
Nonmajor governmental
$ 35,758
Payment to Fidelity (Phase 1)
General Fund
Debt Service Fund
544,656
Debt service payments
General Fund
Westlake Academy Expansion
630,000
Payment for the expansion project
General Fund
Nonmajor governmental
11,983
Economic development
Utility Fund
General Fund
43,399
Collection of Ft. Worth Impact Fees
Nonmajor governmental
Debt Service Fund
1,181,695
Debt service payments
Capital Projects
Westlake Academy Expansion
200,000
Payments for parking lot expenses
Nonmajor governmental
General Fund
13,020
Visitors association
Nonmajor governmental
Debt Service Fund
151,700
Debt service payments
General Fund
Westlake Academy
90,000
Facility and technology contributions
General Fund
Westlake Academy
192,000
Payment for the expansion project
$ 3,094,211
63
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 10. WATER PURCHASE AND WASTEWATER TREATMENT CONTRACTS
The Town has a contract with the City of Fort Worth, Texas, to purchase water. Under the
contract, the Town may obtain from the City of Fort Worth, a supply of potable water at a
reasonable rate based on water usage. The rate charges are subject to minimum annual
contract payments. Water expense for the year ended September 30, 2014 was $1,048,219.
NOTE 11. RETIREMENT PLAN
Plan Description
The Town provides pension benefits for all of its eligible employees through a non-
traditional, joint contributory, hybrid defined benefit plan in the statewide Texas Municipal
Retirement System (TMRS), an agent multiple -employer public employee retirement
system. The plan provisions that have been adopted by the Town are within the options
available in the governing state statutes of TMRS.
TMRS issues a publicly -available comprehensive annual financial report that includes
financial statements and required supplementary information (RSI) for TMRS; the report
also provides detailed explanations of the contributions, benefits and actuarial methods
and assumptions used by the System. This report may be obtained from TMRS' website
at www.TMRS.com.
The plan provisions are adopted by the governing body of the Town, within the options
available in the state statutes governing TMRS. Plan provisions for the Town were as
follows:
Contributions
Under the state law governing TMRS, the contribution rate for each town is determined
annually by the actuary, using the Early Age Normal (EAN) actuarial cost method (EAN
was first used in the December 31, 2013 valuation; previously the Projected Unit Credit
actuarial costs method had been used). This rate consists of the normal cost contribution
rate and the prior service cost contribution rate, which is calculated to be a level percent
of payroll from year to year. The normal cost contribution rate finances the portion of an
active member's projected benefit allocated annually; the prior service contribution rate
amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period
for that city. Both the normal cost and prior service contribution rates include recognition
of the projected impact of annually repeating benefits, such as Updated Service Credits
and Annuity Increases.
64
Plan Year 2013
Plan Year 2014
Employee deposit rate
7.0%
7.0%
Matching ration (town to employee)
2 to 1
2 to 1
Years required for Vesting
5
5
Service retirement eligibility
(expressed as age/years of service)
60/5,0/20
60/5, 0/20
Updated sevice credit
100% repeating,
100% repeating,
transfers
transfers
Annuity increase (to retirees)
0% of CPI
0% of CPI
repeating
repeating
Contributions
Under the state law governing TMRS, the contribution rate for each town is determined
annually by the actuary, using the Early Age Normal (EAN) actuarial cost method (EAN
was first used in the December 31, 2013 valuation; previously the Projected Unit Credit
actuarial costs method had been used). This rate consists of the normal cost contribution
rate and the prior service cost contribution rate, which is calculated to be a level percent
of payroll from year to year. The normal cost contribution rate finances the portion of an
active member's projected benefit allocated annually; the prior service contribution rate
amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period
for that city. Both the normal cost and prior service contribution rates include recognition
of the projected impact of annually repeating benefits, such as Updated Service Credits
and Annuity Increases.
64
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11. RETIREMENT PLAN —CONTINUED
Contributions — Continued
The Town contributes to the TMRS Plan at an actuarially determined rate. Both the
employees and the Town make contributions monthly. Since the Town needs to know its
contribution rate in advance for budgetary purposes, there is a one-year delay between
the actuarial valuation that serves as the basis for the rate and the calendar year when
the rate goes into effect.
Accounting
Annual
Actual
Percentage Net
Year
Pension
Contribution
of APC Pension
Ending
Cost (APC)
Made
Contributed Obligation
9/30/2012
$ 132,882
$ 132,882
100% -
9/30/2013
135,813
135,813
100% -
9/30/2014
179,250
179,250
100% -
The required contribution rates for fiscal year 2014 were determined as part of the
December 31, 2011 and 2012 actuarial valuations. Additional information as of the latest
actuarial valuation, December 31, 2013, also follows:
Valuation Date
Actuarial Cost Method
Amortization Method
GASB 25 Equivalent Single
Amortization Period
Amortization Period for New
Gains/Losses
Asset Valuation Method
Actuarial Assumptions:
Investment Rate of Return'
Projected Salary Increases'
" Includes Inflation at
Cost -of -Living Adjustments
12/31/2011 12/31/2012 12/31/2013
Projected Unit Credit
Level percent of payroll
21.3years;
closed period
25 years
10 -year Smoothed
Market
7.0%
Varies by age
and service
3.0%
0.0%
65
Projected Unit Credit
Level percent of payroll
20.9 years
closed period
25 years
10 -year Smoothed
Market
7.0%
Varies by age
and service
3.0%
0.0%
Entry Age Normal
Level percent of payroll
30.0 years
closed period
25 years
10 -year Smoothed
Market
7.0%
Varies by age
and service
3.0%
0.0%
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11. RETIREMENT PLAN —CONTINUED
Contributions — Continued
The funded status as of December 31, 2013, under the actuarial valuation, is presented
as follows:
Actuarial valuations involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are
subject to continual revision as actual results are compared to past expectations and
new estimates are made about the future.
Actuarial calculations are based on the benefits provided under the terms of the
substantive plan in effect at the time of each valuation, and reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used
include techniques that are designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets. The schedule of funding progress, presented
as Required Supplementary Information following the notes to the financial statements,
present multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability of benefits.
Other Postemployment Benefits
Supplemental Death Benefits Fund
The Town also participates in the cost sharing multiple -employer defined benefit
group term life insurance plan operated by the Texas Municipal Retirement System
(TMRS) known as the Supplemental Death Benefits Fund (SDBF). The Town
elected, by ordinance to provide group term life insurance coverage to both current
and retired employees. The Town may terminate coverage under and discontinue
participation in the SDBF by adopting an ordinance before November 1 of any year
to be effective the following January 1.
The death benefit for active employees provides a lump sum payment approximately
equal to the employee's annual salary (calculated based on the employee's actual
earnings, for the 12 -month period preceding the month of death); retired employees
are insured for $7,500; this coverage is an "other postemployment benefit," or OPEB.
Unfunded
Unfunded Actuarial
Actuarial
Actuarial
Actuarial
Actuarial
Accured Liability
Valuation
Value of
Accrued
Funded
Accrued
Covered
as a Percentage
Date
Assets
Liability
Ratio
Liability
Payroll
of Covered Payroll
12/31/2010
$ 1,863,399
$ 2,197,161
84.8%
$333,762
$ 1,534,927
21.7%
12/31/2011
2,226,028
2,631,416
84.6%
405,388
1,759,432
23.0%
12/31/2012
2,611,474
3,086,228
84.6%
474,754
1,876,305
25.3%
12/31/2013
3,024,883
3,669,053
82.4%
644,170
1,936,016
33.3%
Actuarial valuations involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are
subject to continual revision as actual results are compared to past expectations and
new estimates are made about the future.
Actuarial calculations are based on the benefits provided under the terms of the
substantive plan in effect at the time of each valuation, and reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used
include techniques that are designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets. The schedule of funding progress, presented
as Required Supplementary Information following the notes to the financial statements,
present multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability of benefits.
Other Postemployment Benefits
Supplemental Death Benefits Fund
The Town also participates in the cost sharing multiple -employer defined benefit
group term life insurance plan operated by the Texas Municipal Retirement System
(TMRS) known as the Supplemental Death Benefits Fund (SDBF). The Town
elected, by ordinance to provide group term life insurance coverage to both current
and retired employees. The Town may terminate coverage under and discontinue
participation in the SDBF by adopting an ordinance before November 1 of any year
to be effective the following January 1.
The death benefit for active employees provides a lump sum payment approximately
equal to the employee's annual salary (calculated based on the employee's actual
earnings, for the 12 -month period preceding the month of death); retired employees
are insured for $7,500; this coverage is an "other postemployment benefit," or OPEB.
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11. RETIREMENT PLAN —CONTINUED
Other Postemployment Benefits — Continued
Contributions
The Town contributes to the SDBF at a contractually required rate as determined by
an annual actuarial valuation. The rate is equal to the cost of providing one-year term
life insurance. The funding policy for the SDBF program is to assure that adequate
resources are available to meet all death benefit payments for the upcoming year;
the intent is not to pre -fund retiree term life insurance during employees' entire
careers.
The Town's contributions to the TMRS SDBF for the years ended September 30,
2014 and 2013 were $2,637 and $2,270, respectively.
NOTE 12. RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts, theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees, and natural disasters.
The Town's general liability, workers' compensation liability, law enforcement liability, errors
and omissions liability, and automobile liability coverage is insured by the Texas Municipal
League, a public entity risk pool. The Town's only responsibility to the Texas Municipal
League is to pay premiums for insurance and related deductible amounts of these policies.
Other risk of loss is covered by commercial insurance. Settlements of claims have not
exceeded coverage in the past three years.
NOTE 13. CONTINGENT LIABILITIES
Litigation
Various claims and lawsuits are pending against the Town. In the opinion of Town
management, after consultation with legal counsel, the potential loss on these claims
and lawsuits will not materially affect the Town's financial position.
Circle T Municipal Utility Districts
The Town and Hillwood are currently in discussions regarding the debt for Municipal
Utility District's (MUDs) #1 and #3 on the Circle T property in Westlake which is
controlled by AIL Investments, L.P. As this property develops, Hillwood agreed to de -
annex developed property from the MUDs in exchange for pro -rata payments on water
and sewer infrastructure installed by the MUDs at their inception.
To date, two projects, Chrysler Financial and Deloitte University, have been or are being
developed within these MUDs. Discussions regarding the Town's payment to AIL
Investments, L.P. in exchange for de -annexation of these two tracks from the Circle T
MUDs have taken place but have not come to a conclusion as to the settlement
amounts. These discussions are ongoing until the Town receives full documentation that
it determines is adequate to support the requested payments. The Town of Westlake
holds full rights and privileges under the State granted Certificate of Convenience and
Necessity (CCN) and can serve all water and sewer customers within these MUD
boundaries regardless of the status of these negotiations.
67
TOWN OF WESTLAKE
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14. SUBSEQUENT EVENTS
Fire Loss
On December 31, 2014, the Town's fire department suffered a loss due to a fire in the
living quarters. During a Town Council Emergency Meeting on January 8, 2015,
$200,000 was approved for expenditures related to the loss. Firefighters are staying in
temporary living quarters until replacement accommodations can be built. Land for a
permanent fire station is currently being explored.
Special Assessment Revenue Bond Issue
On February 5, 2015, the Town issued $26,175,000 of Special Assessment Revenue
Bonds, Series 2015 related to the Solana Public Improvement District (the District) which
was created by the Town on February 24, 2014. The proceeds from the issue will be
used as follows: payment of a portion of the costs of construction, acquisition, or
purchase of certain water, wastewater and roadway public improvements for the benefit
of the District; funding a reserve fund; funding capitalized interest; payment of a portion
of the costs incidental to the organization of the District; and payment of the cost of
issuance of the bonds. The bonds are special obligations of the Town payable solely
from special assessments levied against parcels within the District and other pledged
funds held under the indenture relating to the bonds. The bonds do not give rise to a
charge against the general credit or taxing powers of the Town.
NOTE 15. CUMULATIVE EFFECT OF ADOPTION OF GASB STATEMENT NO. 65
As a result of the implementation of GASB Statement No. 65, Items Previously Reported as
Assets and Liabilities, an adjustment has been made to write of all unamortized bond
issuance costs from previous years. As a result, governmental activities beginning net
position has been decreased by $647,443.
NOTE 16. GOING CONCERN
The 2014 financial statements were prepared assuming the Texas Student Housing entities
will continue as going concerns. The Texas Student Housing entities' bonds payable are
considered to be in default due to not making full principal and interest payments and,
therefore, are reported as current liabilities. This is considered an event of default by the
Trustees, which gives the bondholders the right to accelerate and demand payment of the
bonds in full. Management and the property managers are in the process of developing and
implementing plans to increase occupancy and rental rates at the properties to improve their
financial performance. Texas Student Housing - Ballpark Austin was unsuccessful in
identifying sufficient funds to cure its maturity default and entered into a termination
agreement with the bondholder, which resulted in the foreclosure and sale of the Ballpark
Austin property in satisfaction of the bonds subsequent to year end.
.:
REQUIRED SUPPLEMENTARY INFORMATION
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
50,520
50,520
EXHIBIT B-1
5,899
Transfers out
General Fund
(1,313,524)
(1,504,397)
(190,873)
Note proceeds
-
-
Variance
34,710
Budgeted Amounts
(1,116,011)
Favorable
(1,413,268)
Orginal
Amended
Actual
(Unfavorable)
REVENUES:
(253)
901,887
902,140
FUND BALANCE AT BEGINNING OF YEAR
Taxes
7,051,631
7,051,631
-
FUND BALANCE AT END OF YEAR
Sales
$ 3,150,000
$ 3,275,000 $
3,471,344
$ 196,344
Property
1,189,825
1,189,825
1,198,374
8,549
Mixed beverages
50,000
50,000
51,602
1,602
Franchise
650,388
787,508
795,322
7,814
Interest income
10,420
10,420
10,503
83
Building permits and fees
786,000
1,008,500
1,175,075
166,575
Fines and penalties
570,000
645,000
730,441
85,441
Intergovernmental
-
-
3,540
3,540
Miscellaneous
51,759
55,959
70,338
14,379
Total revenues
6,458,392
7,022,212
7,506,539
484,327
EXPENDITURES:
Current
General government
2,465,611
2,674,111
2,236,360
437,751
Public safety
2,267,644
2,267,644
2,146,587
121,057
Cultural and recreation
157,518
152,518
123,541
28,977
Public works
791,010
631,849
615,781
16,068
Capital outlay
29,020
15,000
20,875
(5,875)
Debt service
Principal retirement
-
18,339
47,440
(29,101)
Interest and other fiscal charges
-
-
800
(800)
Total expenditures
5,710,803
5,759,461
5,191,384
568,077
Excess of revenues over expenditures
747,589
1,262,751
2,315,155
1,052,404
OTHER FINANCING SOURCES (USES)
Transfers in
50,520
50,520
56,419
5,899
Transfers out
(1,166,531)
(1,313,524)
(1,504,397)
(190,873)
Note proceeds
-
-
34,710
34,710
Net other financing sources (uses)
(1,116,011)
(1,263,004)
(1,413,268)
(150,264)
NET CHANGE IN FUND BALANCE
(368,422)
(253)
901,887
902,140
FUND BALANCE AT BEGINNING OF YEAR
7,051,631
7,051,631
7,051,631
-
FUND BALANCE AT END OF YEAR
$ 6,683,209
$ 7,051,378
$ 7,953,518
$ 902,140
.•
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - WESTLAKE ACADEMY
FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES:
State program revenues
Federal program revenues
Interest income
Miscellaneous
Total revenues
EXPENDITURES:
Education
Interest and other fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES
Transfers in
Capital lease proceeds
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
EXHIBIT B-2
Westlake Academ
6,461,662 7,164,475 6,704,719 (459,756)
6,390,294
6,976,597
6,405
Variance
Budgeted Amounts
6,983,002
Favorable
Orginal
Final
Actual
(Unfavorable)
$ 4,855,506
$5,110,628
$ 5,269,641
$ 159,013
67,722
80,008
80,103
95
2,500
2,500
1,450
(1,050)
1,535,934
1,971,339
1,353,525
(617,814)
6,461,662 7,164,475 6,704,719 (459,756)
6,390,294
6,976,597
6,405
6,405
6,396,699
6,983,002
64,963
181,473
256,266
- 256,266
64,963 437,739
992,981 992,981
7,143,678
(167,081)
3,733
2,672
7,147,411
(164,409)
(442,692)
(624,165)
282,000
25,734
239,009
239,009
521,009
264,743
78,317
(359,422)
992,981
$ 1,057,944 $1,430,720 $ 1,071,298 $ (359,422)
70
TOWN OF WESTLAKE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Information -The Town follows these procedures annually in establishing the
budgetary data reflected in the budgetary comparison schedules:
The Town Manager submits to the Town Council a proposed budget for the fiscal year
commencing the following October 1. The budget includes proposed expenditures and
the means of financing them.
2. Prior to October 1, the budget is legally adopted through passage of an ordinance. This
budget is reported as the Original Budget in the budgetary comparison schedules.
3. During the fiscal year, changes to the adopted budget may be authorized, as follows:
a. Items requiring Town Council action - appropriation of fund balance reserves;
transfers of appropriations between funds; new inter -fund loans or advances; and
creation of new capital projects or increases to existing capital projects.
b. Items delegated to the Town Manager - appropriation balances from an
expenditure account to another within a single fund.
4. Annual budgets are legally adopted and amended as required for the general, special
revenue and debt service funds. Project length budgets are adopted for the capital
projects funds. All budgets are adopted on a basis consistent with generally accepting
accounting principles. Budgets are adopted for the proprietary funds annually only as a
management tool. There are no legally mandated budgetary constraints for the
proprietary funds.
5. Budget amounts are reflected after all authorized amendments and revisions. This
budget is reported as the Final Budget in the budgetary comparison schedules.
6. The appropriated budget is prepared by fund, function and department. The Town's
management may make transfers of appropriations within a fund. Transfers of
appropriations between funds require the approval of the Town Council. The legal level
of budgetary control is the fund level. The Town Council made several supplementary
budget appropriations during the year.
7. Encumbrances represent commitments related to unperformed contracts for goods or
services. Encumbrance accounting under which purchase orders, contracts and other
commitments for the expenditure of resources are recorded to reserve that portion of the
applicable appropriation is utilized in the governmental funds. Encumbrances lapse at
year-end and do not constitute expenditures or liabilities because the commitments must
be re -appropriated and honored during the subsequent year.
8. Expenditures exceeded appropriations in the capital outlay and debt service of the
General Fund and total expenditures exceeded appropriations in the Westlake Academy
Fund.
71
EXHIBIT B-3
TOWN OF WESTLAKE
SCHEDULE OF FUNDING PROGRESS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2014
(UNAUDITED)
72
Unfunded
Unfunded Actuarial
Actuarial
Actuarial
Actuarial
Actuarial
Accured Liability
Valuation
Value of
Accrued
Funded
Accrued
Covered
as a Percentage
Date
Assets
Liability
Ratio
Liability
Payroll
of Covered Payroll
12/31/2010
$ 1,863,399
$ 2,197,161
84.8%
$333,762
$ 1,534,927
21.7%
12/31/2011
2,226,028
2,631,416
84.6%
405,388
1,759,432
23.0%
12/31/2012
2,611,474
3,086,228
84.6%
474,754
1,876,305
25.3%
12/31/2013
3,024,883
3,669,053
82.4%
644,170
1,936,016
33.3%
72
TOWN OF WESTLAKE
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
TOWN OF WESTLAKE
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES:
Taxes
Property
Total revenues
EXPENDITURES:
Debt service
Principal retirement
Interest and other fiscal charges
Bond issuance costs
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Refunding bonds issued
Payment to refunding bond escrow agent
Premium on refunding bonds issued
Net other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
EXHIBIT C-1
73
Debt Service Fund
Variance
Budgeted
Amounts
Favorable
Original
Amended
Actual
(Unfavorable)
$ 153,868
$ 140,522 $
154,982
$ 14,460
153,868
140,522
154,982
14,460
938,000
927,000
927,000
-
1,152,226
1,151,834
1,106,434
45,400
-
-
69,283
(69,283)
2,090,226
2,078,834
2,102,717
(23,883)
(1,936,358)
(1,938,312)
(1,947,735)
(9,423)
1,936,358
1,924,966
1,878,051
(46,915)
-
-
1,910,000
1,910,000
(1,925,315)
(1,925,315)
-
-
84,598
84,598
1,936,358
1,924,966
1,947,334
22,368
-
(13,346)
(401)
12,945
1,482
1,482
1,482
-
$ 1,482
$ (11,864) $
1,081
$ 12,945
73
TOWN OF WESTLAKE
NONMAJOR GOVERNMENTAL FUNDS
Visitors Association Fund
To account for municipal hotel occupancy taxes collected and expenditures to promote tourism
and the convention and hotel industry.
Lone Star Public Facilities Corporation
To account for investment activity relating to the Lone Star Public Facilities Corporation.
Economic Development Fund
To account for sales tax and hotel occupancy tax collected to fund activity relating to Economic
Development agreements.
4B Economic Development Corporation
To account for sales tax collected to fund the activities of the 4B Economic Development
Corporation.
74
EXHIBIT C-2
TOWN OF WESTLAKE
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
LIABILITIES AND FUND BALANCES
Accounts payable $ 30,122 $ $ 67,477 $ $ 97,599
Unearned revenue 1,820 - 1,820
Due to other funds - - 157,353 157,353
Total liabilities 31,942 67,477 157,353 256,772
FUND BALANCES
Nonspendable:
Prepaid items 2,818 - - 2,818
Restricted for:
Tourism 1,107, 520 1,107,520
Future projects - 13,620 13,620
Unassigned - - -
Total fund balances 1,110,338 13,620 1,123,958
Total liabilities and fund balances $ 1,142,280 $ 13,620 $ 67,477 $ 157,353 $ 1,380,730
75
Lone Star
Public
46 Economic
Total
Facilities
Economic
Development
Nonmajor
Visitors
Corporation
Development
Corporation
Governmental
Association
Fund
Fund
Fund
Funds
ASSETS
Cash and cash equivalents
$ 1,076,628
$ 13,620
$ 32,217
$ -
$ 1,122,465
Receivables: (net of allowances for uncollectibles)
Accounts receivable
62,834
-
23,277
157,353
243,464
Due from other funds
-
11,983
-
11,983
Other assets
2,818
-
-
-
2,818
Total assets
$ 1,142,280
$ 13,620
$ 67,477
$ 157,353
$ 1,380,730
LIABILITIES AND FUND BALANCES
Accounts payable $ 30,122 $ $ 67,477 $ $ 97,599
Unearned revenue 1,820 - 1,820
Due to other funds - - 157,353 157,353
Total liabilities 31,942 67,477 157,353 256,772
FUND BALANCES
Nonspendable:
Prepaid items 2,818 - - 2,818
Restricted for:
Tourism 1,107, 520 1,107,520
Future projects - 13,620 13,620
Unassigned - - -
Total fund balances 1,110,338 13,620 1,123,958
Total liabilities and fund balances $ 1,142,280 $ 13,620 $ 67,477 $ 157,353 $ 1,380,730
75
EXHIBIT C-3
TOWN OF WESTLAKE
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NON MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2014
EXPENDITURES
Current:
Economic development
-
Lone Star
147,680
5
147,685
Visitor services
493,082
Public
-
413 Economic
493,082
Debt service
Facilities
Economic
Development
Total Nonmajor
Principal retirement
Visitors
Corporation
Development
Corporation
Governmental
Interest and other fiscal charges
Association
Fund
Fund
Fund
Funds
REVENUES
493,082
183,439
5
676,526
Sales
$ -
$
$ 73,040
$ 1,181,461
$ 1,254,501
Hotel occupancy
733,823
21
62,658
-
796,481
Interest income
1,604
21
-
239
1,864
Contributions
1,974
47,741
-
1,974
Miscellaneous
4,100
-
-
4,100
Total revenues
741,501
21
135,698
1,181,700
2,058,920
EXPENDITURES
Current:
Economic development
-
147,680
5
147,685
Visitor services
493,082
-
493,082
Debt service
Principal retirement
-
30,237
30,237
Interest and other fiscal charges
-
5,522
-
5,522
Total expenditures
493,082
183,439
5
676,526
Excess (deficiency) of revenues
over(under)expenditures
248,419
21
(47,741)
1,181,695
1,382,394
OTHER FINANCING SOURCES (USES)
Transfers in
-
47,741
-
47,741
Transfers out
(164,720)
-
(1,181,695)
(1,346,415)
Total other financing
sources (uses)
(164,720)
-
47,741
(1,181,695)
(1,298,674)
Net change in fund balances
83,699
21
-
83,720
Fund balances, October 1
1,026,639
13,599
1,040,238
Fund balances, September 30
$ 1,110,338 $
13,620
$
$
$ 1,123,958
M,
EXHIBIT C-4
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - VISITORS ASSOCIATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
FUND BALANCE AT END OF YEAR $ 1,048,417 $ 1,056,040 $ 1,110,338 $ 54,298
77
Visitors Association Fund
Variance
Budgeted
Amounts
Favorable
Orginal
Amended
Actual
(Unfavorable)
REVENUES:
Taxes
Hotel occupancy
$ 700,000
$ 700,000
$ 733,823
$ 33,823
Interest income
2,900
2,900
1,604
(1,296)
Contributions
6,810
6,810
1,974
(4,836)
Miscellaneous
11,840
11,840
4,100
(7,740)
Total revenues
721,550
721,550
741,501
19,951
EXPENDITURES:
Visitor services
535,052
527,429
493,082
34,347
Total expenditures
535,052
527,429
493,082
34,347
Excess of revenues over expenditures
186,498
194,121
248,419
54,298
OTHER FINANCING USES
Transfers out
(164,720)
(164,720)
(164,720)
-
Total other financing uses
(164,720)
(164,720)
(164,720)
-
NET CHANGE IN FUND BALANCE
21,778
29,401
83,699
54,298
FUND BALANCE AT BEGINNING OF YEAR
1,026,639
1,026,639
1,026,639
-
FUND BALANCE AT END OF YEAR $ 1,048,417 $ 1,056,040 $ 1,110,338 $ 54,298
77
EXHIBIT C-5
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - LONE STAR PUBLIC FACILITIES CORPORATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
Lone Star Public Facilities Corporation
Variance
Budgeted Amounts Favorable
Orginal Amended Actual (Unfavorable)
REVENUES:
Interest income $ 45 $ 45 $ 21 $ (24)
Total revenues 45 45 21 (24)
EXPENDITURES:
General government - - - -
Total expenditures - - - -
NET CHANGE IN FUND BALANCE 45 45 21 (24)
FUND BALANCE AT BEGINNING OF YEAR
13,599
13,599
13,599 -
FUND BALANCE AT END OF YEAR
$ 13,644 $
13,644 $
13,620 $ (24)
78
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - ECONOMIC DEVELOPMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES:
Taxes
Sales
Hotel occupancy
Total revenues
EXPENDITURES:
Economic development
Debt service
Principal retirement
Interest and other fiscal charges
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
EXHIBIT C-6
Economic Development Fund
Variance
Budgeted Amounts Favorable
Orginal Amended Actual (Unfavorable)
$ 150,000
$ 100,000
$ 73,040
$ (26,960)
-
70,000
62,658
(7,342)
150,000
170,000
135,698
(34,302)
150,000
170,000
147,680
22,320
30,237
30,237
30,237
-
5,522
5,522
5,522
-
185,759
205,759
183,439
22,320
(35,759)
(35,759)
(47,741)
(11,982)
35,759
35,759
47,741
11,982
35,759
35,759
47,741
11,982
79
EXHIBIT C-7
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - 4B ECONOMIC DEVELOPMENT CORPORATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2014
413 Economic Development Corporation
Variance
Budgeted
Amounts
Favorable
Orginal
Amended
Actual
(Unfavorable)
REVENUES:
Taxes
Sales
$ 1,100,000
$ 1,125,000
$ 1,181,461
$ 56,461
Interest income
500
500
239
(261)
Total revenues
1,100,500
1,125,500
1,181,700
56,200
EXPENDITURES:
Economic development
-
-
5
(5)
Total expenditures
-
-
5
(5)
Excess of revenues over expenditures
1,100,500
1,125,500
1,181,695
56,195
OTHER FINANCING USES
Transfers out
(1,100,500)
(1,125,500)
(1,181,695)
(56,195)
Total other financing uses
(1,100,500)
(1,125,500)
(1,181,695)
(56,195)
NET CHANGE IN FUND BALANCE
-
-
-
FUND BALANCE AT BEGINNING OF YEAR
-
-
-
-
FUND BALANCE AT END OF YEAR
$ -
$ -
$ -
$ -
STATISTICAL SECTION
TOWN OF WESTLAKE
STATISTICAL SECTION
(UNAUDITED)
This part of the Town of Westlake, Texas' comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures and required supplementary information says about the Town's
overall financial health.
Contents
Financial Trends
Page
These schedules contain trend information to help the reader
understand how the Town's financial performance and well-
being have changed over time. 82-87
Revenue Capacity
These schedules contain information to help the reader
assess the Town's most significant local revenue sources.
Although sales taxes are the Town's most significant local
revenue source, information about principal revenue payers
is confidential under Texas statutes, and; therefore, not
disclosed. Trend information about sales tax revenue is
provided in Exhibit S-9.
Debt Capacity
These schedules present information to help the reader
assess the affordability of the Town's current levels of
outstanding debt and the Town's ability to issue additional
debt in the future. 93-95
Demographic and Economic Information
These schedules offer demographic and economic indicators
to help the reader understand the environment within which
the Town's financial activities take place. 96-97
Operating Information
These schedules contain service and infrastructure data to
help the reader understand how the information in the
Town's financial report relates to the services the Town
provides and the activities it performs. 98-100
Sources: Unless otherwise noted, the information in these
schedules is derived from annual financial
reports for the relevant year.
81
EXHIBIT S-1
TOWN OF WESTLAKE
NET POSITION BY COMPONENT
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING - UNAUDITED)
Total governmental activities net position $ 9,533,304 $ 13,602,288 $ 14,671,957 $ 16,154,257 $ 19,127,942 $ 21,064,399 $ 23,244,383 $ 24,616,406 $ 32,057,541 $ 33,422,961
Business -type activities:
Fiscal Year
2005 2006
2007
2008
2009
2010
2011
2012
2013
2014
Governmental activities:
$ 6,734,414
Unrestricted
( 1,621,273)
( 1,846,851)
( 2,008,243)
( 1,997,281)
( 1,945,578)
( 2,003,600)
( 1,542,092)
Invested in capital assets, net of related debt
$ 7,975,910 $ 9,171,657 $
9,646,644 $
10,313,743 $
13,244,690 $
13,633,485 $
12,658,921
$ 14,866,299
$ 21,177,426
$ 32,048,991
Restricted
- 1,406,756
1,719,771
2,004,763
1,761,067
1,564,868
7,137,362
4,726,376
4,243,239
2,284,947
Unrestricted
1,557,394 3,023,875
3,305,542
3,835,751
4,122,185
5,866,046
3,448,100
5,023,731
6,636,876
( 910,977)
Total governmental activities net position $ 9,533,304 $ 13,602,288 $ 14,671,957 $ 16,154,257 $ 19,127,942 $ 21,064,399 $ 23,244,383 $ 24,616,406 $ 32,057,541 $ 33,422,961
Business -type activities:
Invested in capital assets, net of related debt
$ 8,450,781
$ 8,436,729
$ 8,097,807
$ 7,726,576
$ 7,349,032
$ 7,033,831
$ 6,875,031
$ 6,877,555
$ 6,601,949
$ 6,734,414
Unrestricted
( 1,621,273)
( 1,846,851)
( 2,008,243)
( 1,997,281)
( 1,945,578)
( 2,003,600)
( 1,542,092)
( 1,636,249)
( 842,457)
( 1,272,014)
Total business -type activities net position
$ 6,829,508
$ 6,589,878
$ 6,089,564
$ 5,729,295
$ 5,403,454
$ 5,030,231
$ 5,332,939
$ 5,241,306
$ 5,759,492
$ 5,462,400
Primary government:
Invested in capital assets, net of related debt
$ 16,426,691
$ 17,608,386
$ 17,744,451
$ 18,040,319
$ 20,593,722
$ 20,667,316
$ 19,533,952
$ 21,743,854
$ 27,779,375
$ 38,783,405
Restricted
-
1,406,756
1,719,771
2,004,763
1,761,067
1,564,868
7,137,362
4,726,376
4,243,239
2,284,947
Unrestricted
( 63,879)
1,177,024
1,297,299
1,838,470
2,176,607
3,862,446
1,906,008
3,387,482
5,794,419
(2,182,991)
Total primary government net position
$ 16,362,812
$ 20,192,166
$ 20,761,521
$ 21,883,552
$ 24,531,396
$ 26,094,630
$ 28,577,322
$ 29,857,712
$ 37,817,033
$ 38,885,361
Source: Annual financial reports
EXHIBIT S-2 (CONTINUED)
TOWN OF WESTLAKE
CHANGES IN NET POSITION
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING - UNAUDITED)
83
Fiscal Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
EXPENSES
Governmental activities:
General government $
2,162,365
$ 1,811,281
$ 1,941,289
$ 2,031,460
$ 2,203,882
$
2,272,127
$ 2,478,826
$ 2,518,490 $
2,606,785
$ 2,784,587
Public Safety
1,592,962
1,705,528
1,738,080
1,795,782
1,939,441
1,698,164
1,801,585
1,883,424
1,978,803
2,190,050
Cultural and Recreation
96,617
91,444
86,560
129,641
115,770
105,997
122,400
111,765
113,924
123,541
Public Works
342,500
613,956
455,481
1,013,804
1,028,934
594,705
470,054
216,901
267,973
955,794
Economic Development
349,208
35,759
120,753
473,451
207,044
309,653
680,823
546,039
626,423
147,680
Visitor Services
448,604
393,115
217,992
312,777
341,270
420,270
356,365
475,719
521,521
493,087
Education
2,166,256
2,249,998
2,672,698
3,305,220
3,722,705
4,138,875
4,884,985
6,193,560
5,803,611
7,147,411
Interest on long-term debt
1,028,104
1,021,779
869,327
991,184
1,068,935
1,026,026
1,127,913
897,573
1,031,328
998,951
Total governmental activities expenses
8,186,616
7,922,860
8,102,180
10,053,319
10,627,981
10,565,817
11,922,951
12,843,471
12,950,368
14,841,101
Business -type activities:
Water and Sewer
1,888,064
2,137,831
2,206,618
2,410,765
2,694,407
2,567,675
2,794,235
3,098,466
3,356,466
3,690,137
Cemetery
-
-
13,299
473
27,822
5,604
6,282
5,328
7,121
Total business -type activities expenses
1,888,064
2,137,831
2,206,618
2,424,064
2,694,880
2,595,497
2,799,839
3,104,748
3,361,794
3,697,258
Total primary government program expense $
10,074,680
$ 10,060,691
$ 10,308,798
$ 12,477,383
$ 13,322,861
$
13,161,314
$ 14,722,790
$ 15,948,219 $
16,312,162
$ 18,538,359
PROGRAM REVENUES
Governmental activities:
Fees, fines, and charges for services:
General Government $
1,039,214
$ 742,176
$ 785,771
$ 522,215
$ 677,948
$
716,624
$ 721,157
$ 673,090 $
774,909
$ 33,975
Public Safety
45,213
136,870
165,255
113,755
107,634
80,665
140,600
142,402
182,154
848,772
Public Works
711,655
699,753
625,340
902,875
594,338
1,597,655
292,572
407,328
659,246
1,022,769
Education
39,430
98,357
85,925
42,839
98,314
102,406
99,638
195,059
182,220
222,270
Operating grants and contributions
1,646,438
3,686,964
1,257,058
1,296,378
1,522,935
853,151
728,242
5,269,841
4,907,472
6,592,642
Capital grants and contributions
141,139
1,455,626
-
-
2,059,624
83,250
425,900
-
5,897,456
80,472
Total governmental activities program revel
3,623,089
6,819,746
2,919,349
2,878,062
5,060,793
3,433,751
2,408,109
6,687,720
12,603,457
8,800,900
Business -type activities:
Charges for services:
Water and Sewer
1,722,659
1,842,238
1,657,186
2,037,306
2,345,236
2,101,510
3,078,868
2,934,842
3,157,332
3,428,702
Cemetery
2,100
-
5,550
13,300
4,500
5,510
7,749
Operating grants and contributions
370,551
19,653
-
-
46,810
-
24,423
-
-
Capital grants and contributions
-
-
169,034
-
-
-
-
-
-
Total business -type activities program revel
2,093,210
1,861,891
1,657,186
2,208,440
2,345,236
2,153,870
3,092,168
2,963,765
3,162,842
3,436,451
Total primary government program revenue $
5,716,299
$ 8,681,637
$ 4,576,535
$ 5,086,502
$ 7,406,029
$
5,587,621
$ 5,500,277
$ 9,651,485 $
15,766,299
$ 12,237,351
83
TOWN OF WESTLAKE
CHANGES IN NET POSITION
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING - UNAUDITED)
NET (EXPENSE) REVENUES
Governmental activities
Business -type activities
Total primary government net expense
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Taxes
Sales
Property
Hotel Occupancy
Mixed Beverage
Franchise
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Transfers
Extraordinary item
Special item
Gain on sale of capital assets
Total governmental activities
Business -type activities:
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
CHANGE IN NET POSITION
Governmental activities
Business -type activities
Total primary government
Source: Annual financial reports
EXHIBIT S-2 (CONCLUDED)
Fiscal Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$( 4,563,527) $( 1,103,114) $( 5,182,831) $( 7,175,257) $( 5,567,188) $( 7,132,066) $( 9,514,842) $( 6,155,751) $( 346,911) $( 6,040,201)
205,146 ( 275,940) ( 549,432) ( 215,624) ( 349,644) ( 441,627) 292,329 ( 140,983) ( 198,952) ( 260,807)
( 4,358,381) ( 1,379,054) ( 5,732,263) ( 7,390,881) ( 5,916,832) ( 7,573,693) ( 9,222,513) ( 6,296,734) ( 545,863) ( 6,301,008)
$ 994,606
$ 1,810,706
$ 2,197,756 $
3,590,575 $
3,664,409
$ 3,790,533
$ 4,609,626
$ 3,657,274 $
4,375,397
$ 4,725,845
1,260,112
1,441,238
1,366,633
1,367,069
381,221
415,544
458,471
527,662
497,769
457,693
527,261
590,853
709,578
796,481
13,846
13,674
14,066
16,177
17,869
17,902
19,721
38,286
39,727
51,602
352,115
457,004
560,312
649,108
624,401
603,233
586,836
664,991
734,935
795,322
1,722,198
1,822,200
2,259,643
2,500,817
2,960,590
3,484,141
3,744,757
-
-
-
41,802
98,824
261,622
188,459
61,224
38,383
46,248
33,353
24,218
26,713
64,047
448,827
466,654
564,973
568,782
676,638
691,345
1,112,858
1,023,149
246,633
71,857
45,319
33,976
220,819
61,321
-
145,216
45,507 (
485,591)
43,399
56,704
( 124,346)
-
-
-
67,760
-
-
-
-
-
-
7,000
-
-
-
3,641,692
5,112,098
6,252,500
8,258,590
8,456,365
9,068,523
11,694,826
7,527,774
7,788,046
8,053,064
2,416
25,604
46,158
32,103
7,858
8,334
9,929
10,077
6,552
7,114
-
56,025
36,936
44,071
77,266
60,070
145,666
84,780
224,995
-
( 71,857)
( 45,319)
( 33,976) (
220,819) (
61,321)
( 145,216)
( 45,507)
485,591
( 43,399)
69,441)
36,310
49,118 (
144,645)
23,803
68,404
10,379
49,350
717,138
( 36,285)
3,572,251
5,148,408
6,301,618
8,113,945
8,480,168
9,136,927
11,705,205
7,577,124
8,505,184
8,016,779
( 921,835)
4,008,984
1,069,669
1,083,333
2,889,177
1,936,457
2,179,984
1,372,023
7,441,135
2,012,863
135,705
( 239,630)
( 500,314) (
360,269) (
325,841)
( 373,223]
302,708
( 91,633)
518,186
( 297,092]
$( 786,130)
$ 3,769,354
$ 569,355 $
723,064 $
2,563,336
$ 1,563,234
$ 2,482,692
$ 1,280,390 $
7,959,321
$ 1,715,771
84
EXHIBIT S-3
TOWN OF WESTLAKE
FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING - UNAUDITED)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General fund
Reserved
$ 131,657 $ 434,375 $
563,176 $
303,639 $
193,105 $
214,750 $
$
-
$
$ -
Unreserved
805,769 2,850,789
2,533,123
2,503,099
2,532,207
3,578,235
Nonspendable:
Prepaid items
62,020
6,856
6,906
8,821
Restricted for:
Future projects
219,687
49,941
74,941
80,442
Committed for:
Court security and technology
186,776
192,768
194,422
193,082
Assigned for:
Future equipment
22,000
22,000
24,000
-
Unassigned
- -
-
-
-
-
3,524,911
4,992,240
6,751,362
7,671,173
Total general fund
$ 937,426 $ 3,285,164 $
3,096,299 $
2,806,738 $
2,725,312 $
3,792,985 $
4,015,394 $
5,263,805
$
7,051,631
$ 7,953,518
All other governmental funds
Reserved
Special revenue funds
$ 779,244 $ 869,694 $
1,183,020 $
1,527,724 $
1,256,954 $
1,112,941 $
$
$
$
Unreserved, reported in:
Special revenue funds
181,960 427,720
846,214
1,666,371
1,933,564
2,693,846
-
Nonspendable:
Prepaid items
33,511
60,963
62,635
80,118
Restricted for:
Tourism
1,109,365
1,052,546
1,025,891
1,107,520
Future projects
4,647,863
3,594,379
10,370,914
1,751,405
Debt service
7,505
22,657
1,482
1,081
Education
885,365
758,127
931,094
993,998
Economic development
267,577
178,384
-
-
Capital projects funds
102,687
102,376
3,233,471
323,009
237,177
-
-
Unassigned
-
-
-
-
-
-
-
-
-
Total all other governmental funds
$ 961,204 $ 1,400,101 $
2,131,610 $
6,427,566 $
3,513,527 $
4,043,964 $
6,951,186 $
5,667,056
$
12,392,016
$ 3,934,122
Note: Economic Development Funds
were classified as special revenue funds through FY 2002 and considered discretely
presented component units
through FY 2007.
Upon
further consideration, the 413
Economic Development Corporation and Lone Star Public
Facility Corporation
funds are now classified as blended component units.
The Town implemented GASB Statement No. 54 in fiscal year 2011.
Source: Annual financial reports
85
TOWN OF WESTLAKE
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING - UNAUDITED)
REVENUES
Taxes
Licenses, fees and permits
Fines and penalties
State program revenues
Federal program revenues
Investment earnings
Contributions
Other revenues
Total revenues
EXPENDITURES
General government
Public safety
Cultural and recreation
Public works
Economic development
Visitor services
Education
Capital Outlay
Capital Project
Debt service
Principal
Interest and other fiscal charges
Bond issuance cost
Total expenditures
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES
EXHIBIT S-4 (CONTINUED)
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 1,741,788 $
2,696,928 $
3,230,605 $
4,783,522 $
4,804,448 $
4,869,361 $
7,000,690 $
6,393,472 $
7,226,180
7,722,606
740,027
748,016
900,121
1,108,083
860,697
1,746,954
530,646
598,394
944,735
1,175,075
1,007,142
751,036
651,090
554,376
523,515
647,170
605,705
622,338
695,167
730,441
1,597,362
1,925,043
2,387,733
2,673,680
3,163,129
3,687,706
3,945,658
4,369,635
4,696,540
5,269,641
285,392
75,662
49,200
75,207
56,134
199,436
337,508
152,351
81,958
80,103
41,786
98,824
261,622
188,459
61,224
38,383
46,248
33,353
24,218
26,713
1,324,264
4,964,085
1,079,768
1,048,308
1,264,262
533,400
-
732,535
5,916,014
82,446
292,690
547,184
552,579
607,812
673,400
779,044
980,816
1,323,237
1,274,826
1,665,003
7,030,451
11,806,778
9,112,718
11,039,447
11,406,809
12,501,454
13,447,271
14,225,315
20,859,638
16,752,028
2,243,162
2,542,295
1,385,492
1,516,346
1,519,600
1,644,587
1,733,324
1,878,885
1,910,545
2,236,360
1,554,115
1,627,641
1,665,879
1,731,317
1,890,469
1,634,936
1,842,751
2,224,469
1,967,584
2,146,587
96,617
91,444
86,560
129,641
115,770
105,997
122,400
111,765
113,924
123,541
112,764
434,716
276,789
846,604
841,822
333,831
326,749
391,115
532,675
615,781
35,758
35,759
141,197
495,071
229,907
401,879
706,391
243,939
296,565
147,685
448,604
393,115
226,992
312,777
341,270
420,270
356,365
475,719
521,521
493,082
1,877,398
2,249,998
2,672,698
3,305,220
3,722,705
4,138,875
4,884,985
6,193,560
5,762,652
7,143,678
263,681
371,860
836,787
463,918
4,335,114
682,103
1,023,772
1,110,476
7,601,631
9,964,047
-
350,000
470,000
395,000
593,937
563,703
555,000
668,000
2,955,000
1,004,677
1,028,104
1,028,634
1,240,950
923,944
990,641
977,163
1,083,377
952,027
830,425
1,116,489
-
-
-
33,000
-
36,446
148,891
185,699
69,283
7,660,203
9,125,462
9,003,344
10,152,838
14,581,235
10,903,344
12,671,560
14,398,846
22,678,221
25,061,210
$( 629,752) $
2,681,316 $
109,374 $
886,609 $(
3,174,426) $
1,598,110 $
775,711 $(
173,531) $(
1,818,583)
$( 8,309,182)
M.
EXHIBIT S-4 (CONCLUDED)
TOWN OF WESTLAKE
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING - UNAUDITED)
Total other financing
sources (uses) 484,096 45,319 433,270 2,720,819 178,961 - 2,353,920 137,812 10,331,369 753,175
Prior period adjustment - 60,000 - - - -
NET CHANGES IN
FUND BALANCES $( 145,656) $ 2,786,635 $ 542,644 $ 3,607,428 $( 2,995,465) $ 1,598,110 $ 3,129,631 $( 35,719) $ 8,512,786 $( 7,556,007)
DEBT SERVICE AS
A PERCENTAGE
OF NONCAPITAL
EXPENDITURES 13.9% 15.7% 20.9% 13.6% 15.4% 15.0% 14.1% 12.51/. 25.3% 14.4%
Note: Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon
further consideration, the 4B Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units.
Source: Annual Financial Reports
87
2005 2006
2007
2008
2009
2010 2011
2012
2013
2014
OTHER FINANCING
SOURCES (USES):
Proceeds from sale of land
$ 412,239 $
$ $
- $
- $
$ -
$ -
$ $
Sale of assets
7,000
Issuance of debt
-
2,500,000
117,640
2,095,000
8,294,800
Premium on CO issued
284,437
-
Refunding bonds issued
7,465,000
-
-
-
7,799,196
2,200,000
1,910,000
Premium on refunding bonds issued
37,723
84,598
Payments to bond escrow agent
( 7,088,706)
( 7,650,305)
-
(1,925,315)
Proceeds from capital ease
23,000
239,009
Notes payable issued
50,000
-
-
401,484
Special item
-
67,760
40,959
-
Extraordinary item
56,704
( 124,346)
( 40,959)
-
Transfers in
172,010 704,577
1,212,558
2,160,174
2,435,486
1,804,577 7,082,163
2,121,099
2,104,929
3,094,211
Transfers out
( 100,153) ( 659,258)
( 1,178,582) (
1,939,355) (
2,374,165) (
1,804,577) ( 6,936,947)
( 2,075,592)
( 2,590,520)
3,050,812
Total other financing
sources (uses) 484,096 45,319 433,270 2,720,819 178,961 - 2,353,920 137,812 10,331,369 753,175
Prior period adjustment - 60,000 - - - -
NET CHANGES IN
FUND BALANCES $( 145,656) $ 2,786,635 $ 542,644 $ 3,607,428 $( 2,995,465) $ 1,598,110 $ 3,129,631 $( 35,719) $ 8,512,786 $( 7,556,007)
DEBT SERVICE AS
A PERCENTAGE
OF NONCAPITAL
EXPENDITURES 13.9% 15.7% 20.9% 13.6% 15.4% 15.0% 14.1% 12.51/. 25.3% 14.4%
Note: Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon
further consideration, the 4B Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units.
Source: Annual Financial Reports
87
EXHIBIT S-5
TOWN OF WESTLAKE
ASSESED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST FOUR FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING - UNAUDITED)
Appraised Value
Less: Total Taxable Total
Fiscal Real Personal Tax -Exempt Assessed Direct
Year Property Property Property Value Tax Rate
2011 $ 951,070,355 $ 70,569,170 $ 143,856,142 $ 877,783,383 0.1601
2012 1,016,474,604 85,329,823 156,315,552 945,488,875 0.15684
2013 1,099,249,031 122,792,343 335,814,215 886,227,159 0.15684
2014 1,091,142,760 151,927,427 346,730,543 896,339,644 0.15634
Note: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax.
Source: Tarrant County Appraisal District
Denton Central Appraisal District
TOWN OF WESTLAKE
PRINCIPAL PROPERTY TAX PAYERS
CURRENT AND THREE YEARS AGO
(UNAUDITED)
Taxuaver
5 Village Circle Holdings LP
FMR Texas, LLC/LTD Partnership
DCLI, LLC
Fidelity Investments Inc.
Marsh USA Inc
Lexington TNI Westlake LP
Corelogic Solutions LLC
Prince Whipple Trust
Levi Strauss & Company
Vaquero Club, Inc.
Total
Source: Tarrant County Appraisal District
2014
Percentage
Taxable of Total Town
Assessed Taxable
Value Rank Assessed Value
$ 140,613,560
1
15.69%
71,938,529
2
8.03%
52,633,131
3
5.87%
26,383,422
4
2.94%
21,098,171
5
2.35%
14,700,000
6
1.64%
14,473,635
7
1.61%
6,850,000
8
0.76%
5,903,735
9
0.66%
5,383,415
10
0.60%
$ 359,977,598
4.46%
40.16%
EXHIBIT S-6
Note: (1) Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax.
(2) Total Taxable Assessed Value including real and personal property for tax year 2010 (fiscal year 2011) is $877,783,383
(3) Total Taxable Assessed Value including real and personal property for tax year 2013 (fiscal year 2014) is $896,339,644
:•
2011
Percentage
Taxable
of Total Town
Assessed
Taxable
Taxpayer
Value
Rank
Assessed Value
Maguire Thomas Partners, etal
$ 116,839,380
1
13.31%
FMR Texas, LLC/LTD Partnership
154,220,911
2
17.57%
Maguire Partners
39,117,985
3
4.46%
Lexington TNI Westlake LP
18,249,200
4
2.08%
First American Leasing/Real Estate
17,636,457
5
2.01%
DCLI, LLC
13,234,691
6
1.51%
Fidelity Investments
12,277,810
7
1.40%
Levi Strauss & Co.
8,215,271
8
0.94%
Westlake Terra, LLC
7,400,002
9
0.84%
EMC Corp
6,418,484
10
0.73%
Total
$ 393,610,191
44.84%
Note: (1) Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax.
(2) Total Taxable Assessed Value including real and personal property for tax year 2010 (fiscal year 2011) is $877,783,383
(3) Total Taxable Assessed Value including real and personal property for tax year 2013 (fiscal year 2014) is $896,339,644
:•
TOWN OF WESTLAKE
PROPERTY TAX LEVIES AND COLLECTIONS
LAST FOUR FISCAL YEARS
(UNAUDITED)
2013 1,398,777 45,297 1,353,480 1,352,097 99.90%
2014 1,405,819 44,761 1,361,058 1,350,639 99.23%
Note: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax.
Source: Tarrant County Appraisal District
Denton Central Appraisal District
.11
(451)
EXHIBIT S-7
Total Collections
to Date
Percentage
Amount
of Levy
Collected within the
$ 1,361,606
99.94%
1,437,908
99.87%
Fiscal Year
99.90%
1,350,188
Taxes Levied
Adjusted
of the Levy
Collections
Fiscal
for the
Adjustments
Taxes Levied
Percent
in Subsequent
Year
Fiscal Year
to Levy
for Fiscal Year
Amount of Levy
Years
2011
$ 1,409,956 $
47,560
$ 1,362,396
$ 1,356,050 99.53%
5,556
2012
1,486,968
47,220
1,439,748
1,437,908 99.87%
2013 1,398,777 45,297 1,353,480 1,352,097 99.90%
2014 1,405,819 44,761 1,361,058 1,350,639 99.23%
Note: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax.
Source: Tarrant County Appraisal District
Denton Central Appraisal District
.11
(451)
EXHIBIT S-7
Total Collections
to Date
Percentage
Amount
of Levy
$ 1,361,606
99.94%
1,437,908
99.87%
1,352,097
99.90%
1,350,188
99.20%
EXHIBIT S-8
TOWN OF WESTLAKE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(PER $100 OF ASSESSED VALUE)
LAST FOUR FISCAL YEARS
(UNAUDITED)
Notes: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an advalorem tax.
Overlapping rates are those of local and county governments that apply to property owners within the Town of Westlake. Not all overlapping rates apply to all
Town's property owners (e.g., the rates for the counties and school districts apply only to the proportion of the Town's property owners whose property is
located within the geographic boundaries of the county and school district)
Source: Tarrant County Appraisal District
Denton Central Appraisal District
91
City Direct Rates
Overlapping
Rates
Operating/
School Districts
Counties
Tarrant
Tarrant
Trophy
Total
Fiscal
General
Debt Service
Total (A)
Carroll
Northwest
Keller
Denton
Tarrant
County
County
Club
Direct and
Year
Fund
Fund
Direct
ISD
ISD
ISD
County
County
College Dist
Hospital Dist.
MUD #1
Overlapping
2011
0.15620
0.00390
0.16010
1.41500
1.37500
1.53060
0.27736
0.26400
0.13764
0.22790
0.19500
5.58259
2012
0.13835
0.01849
0.15684
1.41500
1.37500
1.54000
0.28287
0.26400
0.14897
0.22790
0.17500
5.58557
2013
0.14197
0.01487
0.15684
1.40000
1.37500
1.54000
0.28287
0.26400
0.14897
0.22790
0.13339
5.52896
2014
0.13710
0.01924
0.15634
1.40000
1.45250
1.54000
0.27220
0.26400
0.14950
0.22790
0.13339
5.59583
Notes: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an advalorem tax.
Overlapping rates are those of local and county governments that apply to property owners within the Town of Westlake. Not all overlapping rates apply to all
Town's property owners (e.g., the rates for the counties and school districts apply only to the proportion of the Town's property owners whose property is
located within the geographic boundaries of the county and school district)
Source: Tarrant County Appraisal District
Denton Central Appraisal District
91
TOWN OF WESTLAKE
TAXABLE SALES BY INDUSTRY TYPE
LAST NINE FISCAL YEARS
(UNAUDITED)
NAICS
Industry Type
11
Agriculture, Forestry, Fishing and Hunting
21
Mining
22
Utilities
23
Construction
31-33
Manufacturing
42
Wholesale Trade
44-45
Retail
48-49
Transportation and Warehousing
51
Information
52
Financial and Insurance
53
Real Estate and Rental and Leasing
54
Professional, Scientific, and Technical Services
56
Admin and Support and Waste Mgmt & Rem Sry
61
Education Services
62
Health Care and Social Assistance
71
Arts, Entertainment and Recreation
72
Accommodation and Food Services
81
Other Services (except Public Administration)
92
Public Administration
EXHIBIT S-9
Fiscal Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
$ 31 $
67 $
182 $
210
$ - $
60 $
38 $
163 $
731
2,321
-
2,109
20
400
4,260
3,050
335
15
463,222
212,336
230,072
186,773
178,693
180,032
171,131
176,622
204,280
81,542
200,791
998,867
1,043,752
68,306
132,780
139,000
365,049
239,888
1,120,328
360,010
371,193
430,515
386,492
402,062
526,755
295,660
375,905
248,702
284,082
142,999
138,456
105,557
145,631
134,466
59,571
421,371
408,556
253,293
610,119
648,597
1,097,007
707,553
1,106,427
1,132,811
962,244
63
491
791
556
316
1,156
3,662
1,962
538,210
223,672
320,848
377,828
423,834
508,609
367,298
378,221
623,828
10,162
343,446
107,319
68,936
87,188
73,455
27,857
75,529
505,585
178,047
204,398
138,879
154,315
327,207
210,158
215,754
457,693
493,570
111,746
452,018
199,700
192,008
202,263
231,526
221,331
536,971
242,069
245,562
45,809
127,779
22,319
39,539
65,045
39,027
110,686
103,340
895
317
282
2,980
619,228
1,675,351
356,689
373,117
153,279
10
-
238
-
170
106
251
11,018
49,474
224,101
199,876
174,485
158,996
206,050
204,456
184,687
191,343
34,021
57,084
130,923
140,344
140,996
175,938
93,123
204,044
221,061
130,476
130,392
18,576
1,756
4,462
4,632
9,805
13,156
17,412
170
-
-
-
11
1
135
295
27,243
$ 3,623,538 $
2,992,307 $
3,599,960 $
3,584,084 $
3,840,735 $
4,723,628 $
3,617,604 $
4,368,521 $
4,796,144
Town direct sales tax rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Note: Information on sales tax by NAICS was not available prior to 2006. Comparison will be made to the prior year until ten-year prior comparison can be made.
Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the
Town's sales tax revenue
Source: Texas State Comptroller reports
M
EXHIBIT S-10
TOWN OF WESTLAKE
RATIOS OF GENERAL BONDED DEBT OUSTANDING
LAST TEN FISCAL YEARS
Notes: Details regarding the Town's outstanding debt can be found in the notes to the financial statements.
There was no debt issued until fiscal year 2000.
See Table 13 for personal income and population data.
93
General Bonded Debt Outstanding
Percentage
General
Certificates
of Actual
Fiscal
Obligation
of
Taxable
Per
Year
Bonds
Obligation
Total
Sales
Capita
2005
$ _
$ 18,810,000 $
18,810,000
18.91%
$ 52,986
2006
_
18,460,000
18,460,000
10.19%
26,447
2007
7,365,000
11,755,000
19,120,000
13.05%
27,198
2008
9,850,000
11,375,000
21,225,000
11.82%
27,038
2009
9,735,000
10,975,000
20,710,000
11.30%
25,791
2010
9,630,000
10,555,000
20,185,000
10.65%
23,831
2011
8,962,656
12,210,000
21,172,656
9.19%
21,343
2012
16,770,000
4,877,000
21,647,000
11.84%
20,369
2013
16,590,000
13,622,000
30,212,000
13.81%
27,251
2014
18,260,000
11,044,000
29,304,000
12.40%
24,748
Notes: Details regarding the Town's outstanding debt can be found in the notes to the financial statements.
There was no debt issued until fiscal year 2000.
See Table 13 for personal income and population data.
93
TOWN OF WESTLAKE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
EXHIBIT S-11
Business -Type
Governmental Activities
Activities
General
Certificates
Other Certificates
Total
Percentage
Fiscal Obligation
of
Capital
Contractual of
Primary
of Personal
Per
Year Bonds
Obligation
Leases
Loans
Obligations Obligation
Government
Income
Capita
2004 $ -
$ 12,400,000 $
-
$ -
$ 6,027,387
$ 18,427,387
45%
$ 56,181
2005 -
18,810,000
-
-
5,980,921
24,790,921
55%
69,834
2006 -
18,460,000
-
-
5,878,381
24,338,381
27%
34,869
2007 7,365,000
11,755,000
23,000
-
5,822,299
24,965,299
27%
35,513
2008 9,850,000
11,375,000
15,264
-
5,763,022
27,003,286
23%
34,399
2009 9,735,000
10,975,000
46,559
-
5,734,191
26,490,750
22%
32,990
2010 9,630,000
10,555,000
-
-
5,658,888
25,843,888
25%
30,512
2011 8,962,656
12,210,000
-
50,000
5,580,380
26,803,036
21%
27,019
2012 16,770,000
4,877,000
-
34,075
5,498,668
27,179,743
20%
25,576
2013 16,590,000
13,622,000
-
18,150
5,412,149
35,642,299
24%
32,150
2014 18,260,000
10,029,800
237,378
437,253
5,320,824 1,014,200
35,299,455
22%
29,812
Note
Details regarding the Town's outstanding debt can be found in the notes to the financial statements. No debt was issued until fiscal year 2000.
See Table 13 for personal income and population data.
94
TOWN OF WESTLAKE
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2014
(UNAUDITED)
Total Overlapping Debt
Town of Westlake Outstanding Debt
Total Direct & Overlapping Debt
EXHIBIT S-12
Overlapping
Percent (1)
Amount of
Taxing Body
Debt Outstanding
As of
Carroll ISD
$ 226,024,791
9/30/2014
Denton County
614,975,000
9/30/2014
Keller ISD
654,308,399
9/30/2014
Northwest ISD
737,438,319
9/30/2014
Tarrant County
317,820,000
9/30/2014
Tarrant County College District
7,935,000
9/30/2014
Tarrant County Hospital District
24,425,000
9/30/2014
Trophy Club MUD#1
5,520,000
9/30/2014
Total Overlapping Debt
Town of Westlake Outstanding Debt
Total Direct & Overlapping Debt
EXHIBIT S-12
Overlapping
Percent (1)
Amount
5.26% $
11,888,904
0.02%
122,995
4.68%
30,621,633
1.71%
12,610,195
0.78%
2,478,996
0.78%
61,893
0.78%
190,515
18.76%
1,035,552
59,010,683
35,299,455
$
94,310,138
Source: Texas Municipal Report prepared by employees of the Municipal Advisory Council of Texas ("MAC")
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of
Westlake. This process recognized that, when considering the Town's ability to issue and repay long-term debt, the entire debt burden
borne by the resident and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and
therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and dividing it by the
entities' total taxable assessed value.
95
TOWN OF WESTLAKE
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Calendar
Year
Estimated
Population
EXHIBIT S-13
Per Capita Tarrant County
Personal Personal Unemployment
Income Income Rate
2005
355 45,292,916 127,586
5.1%
2006
698 90,835,901 130,137
4.6%
2007
703 93,316,319 132,740
4.3%
2008
785 115,891,905 147,633
5.1%
2009
803 120,920,285 150,586
8.1%
2010
847 102,852,057 121,431
8.1%
2011
992 126,678,400 127,700
7.9%
2012
1,063 138,423,531 130,254
6.2%
2013
1,109 147,292,890 132,859
6.0%
2014
1,184 160,462,095 135,516
5.0%
Sources:
Population for 2000 is from the 2000 census. Fiscal Years 2001 through 2003 are estimated. The Town took over the
utilility billing in 2004 and estimated the population by using number of residential water accounts and assuming a 2.5
average household size. 2010 Census shows median household income at $250,000. Due to the influx of residents
coming to Westlake Academy, surveys have shown that there are approximately 1.28 school-age children in each
household; therefore, we will use a 3.23 average household size to calculate population.
Tarrant County Unemployment Rate information taken from Texas Workforce Commission.
American Community Survey (ACS)
USA.com - Per Capita Income source
North Central Texas Council of Governments/US Census 2010
Estimated Population
1400
1200 1,109
1,184
992
1000 785847
800 3
600 355
400
200
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
•v�
Note: Information on the Principal Employers from 2005 is not available. Information will be accumulated over the next ten years.
Comparisons will be made to the first available data until ten years can be compared.
Source: Cassidy Turley tenant records and contact with employers of the Town
97
EXHIBIT S-14
TOWN OF WESTLAKE
PRINCIPAL EMPLOYERS
CURRENT AND SEVEN YEARS AGO
(UNAUDITED)
2007
2014
Percentage
Percentage
of Estimated
of Estimated
Total Town
Total Town
Employer
Employees
Employment
Employer
Employees
Employment
Fidelity Investments
5,003
47.10%
Fidelity Investments
3,100
37.15%
Core Logic
1,790
16.85%
First American/Core Logic
3,000
35.95%
Wells Fargo
574
5.40%
Chrysler Financial/TD Auto Finance
325
3.89%
Deloitte
478
4.50%
Wells Fargo
790
9.47%
TD Auto Finance
390
3.67%
McKesson Corporation
215
2.58%
Sabre JLL Facilities
317
2.98%
Sonitrol/World Factory
165
1.98%
First American Title
262
2.47%
Walco
150
1.80%
Verizon Wireless
331
3.12%
Vaquero Club
140
1.68%
Town of Westlake/Westlake Academy
128
1.20%
Marriott Solana Hotel
120
1.44%
Vaquero Country Club
123
1.16%
Pfizer, Inc.
115
1.38%
Marriott Solana Hotel
108
1.02%
Town of Westlake/Westlake Academy
73
0.87%
Travelocity
90
0.85%
Premier Academy
34
0.41%
Lev Strauss
80
0.75%
Solara Healthcare
28
0.34%
Total
9,674
91%
Total
8,255
99%
Note: Information on the Principal Employers from 2005 is not available. Information will be accumulated over the next ten years.
Comparisons will be made to the first available data until ten years can be compared.
Source: Cassidy Turley tenant records and contact with employers of the Town
97
TOWN OF WESTLAKE
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Function/Program
2005
2006
2007
2008
2009
2010
2011
General government
0.75
1.00
0.50
1.33
1.50
1.66
1.00
Town manager
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Assistant Town Manager
3.00
4.00
1.33
2.00
2.00
Assistant to Town Manager
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Administrative
0.50
0.50
0.00
0.00
0.75
0.50
0.75
Building official
1.00
1.00
1.00
1.00
1.33
1.33
1.33
Town secretary
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Facilities/Grounds maintenance
0.50
0.50
0.50
0.75
1.08
1.08
1.08
Municipal
3.75
3.75
4.00
4.00
4.25
4.50
4.50
Finance
3.00
3.00
3.00
3.00
3.00
3.00
3.00
Payroll/Human Resources
0.00
0.00
0.00
1.00
1.33
1.33
1.33
Information Technology
Public safety (EMS)
10.00
11.00
11.00
11.00
9.00
9.00
9.00
Culture and recreation
0.50
0.50
0.50
0.75
0.75
0.75
0.75
Public works
1.00
1.00
1.00
1.50
1.50
1.50
1.50
Marketing and public affairs
1.00
1.00
0.00
0.00
0.00
0.00
0.00
Education
25.15
32.40
36.40
43.00
48.10
55.62
59.44
Total
49.40
57.65
60.40
69.00
74.09
81.61
85.68
Source: Prior Town budgets and Academy personnel records
Note: A full time municipal employee is scheduled to work 2,080 hours
per year (including
vacation and
sick leave).
Fulltime equivalent employment is calculated by
dividing total labor hours by 2,080.
A full time education employee
is scheduled to work 1,122 hours per year.
EXHIBIT S-15
2012 2013 2014
1.00
1.00
1.00
0.75
0.90
0.75
0.00
0.00
0.75
1.00
0.50
1.33
1.50
1.66
1.00
1.00
1.00
0.83
1.00
1.09
3.75
4.75
5.10
3.00
3.00
4.00
1.33
2.00
2.00
1.00
9.00
10.00
13.25
0.50
0.75
0.84
2.00
3.00
2.66
1.00 1.00 2.00
67.48 76.18 91.18
93.72 106.93 128.18
EXHIBIT S-16
TOWN OF WESTLAKE
OPERATING INDICATORS
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Function/Program
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
General government
Permits issued
240
194
162
93
61
44
70
85
132
144
Permit values
$ 67,536,744 $
47,464,851 $
67,101,543 $
188,578,581 $
21,051,297 $
190,388,737 $
21,173,592 $
29,481,047 $
50,544,048 $
59,358,904
Police (Contract with Keller PD)
Motor vehicle stops
9,586
8,992
10,045
10,357
9,247
9,763
9,829
12,221
9,993
9,579
Traffic accident investigations
163
164
225
208
266
273
348
343
322
341
Part I crimes
26
30
25
26
23
19
30
39
9
15
DWI arrests
86
56
53
45
24
32
80
50
69
55
Fire/EMS
Fire runs
148
136
153
169
118
172
191
181
238
211
Ambulance runs
135
207
251
159
184
187
264
266
286
240
Inspections
89
161
96
132
15
71
71
54
96
286
Public Works - General
Street resurfacing (LF)
-
7,128
5,333
-
-
-
3,800
30,000
-
-
Potholes repaired
40.00
20.00
0.00
20.00
10.00
5.00
36.00
6.00
2.00
6.00
Public Works - Utility
Number of water accounts
271
338
386
419
437
478
500
568
614
651
Water main breaks
3
3
2
4
5
6
4
4
3
1
Avg daily consumption MG (water)
0.817
1.031
0.729
0.999
1.020
0.889
1.200
1.100
1.090
1.045
Peak daily consumption MG (water)
2.198
2.677
1.978
2.060
2.740
2.460
2.540
2.600
2.480
2.690
System capacity - MG (water)
1.685
1.685
1.685
1.685
1.685
1.685
1.685
1.685
1.685
2.685
Water purchased (in gallons x 000)
298„124
376,264
266,158
364,764
372,933
324,843
443,222
407,305
401,457
381,482
Water sold (in gallons x 1000)
230,657
338,085
246,280
340,743
313,495
290,000
385,320
376,496
357,297
347,148
Wastewater
Number of new sewer connections
179
211
235
240
251
254
245
292
325
350
Avg daily sewage treatment
0.1270
0.1320
0.1370
0.124
0.101
0.063
0.163
0.136
0.151
0.208
(thousands of gallons)
Source: Various Town departments
Notes: N/A represents information that is unavailable
••
EXHIBIT S-17
TOWN OF WESTLAKE
CAPITAL ASSET STATISTICS
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Function/Program
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Fire
2
2
Acreage 14
14
19
Playgrounds 2
2
2
Softball/soccer field 1
1
1
Stations
1
1
1
1
1
1
1
1
1
1
1
Public Works - Utility
1
1
1
1
1
1
1
1
1
1
Pump station
1
1
1
1
1
1
1
1
1
1
1
Lift station
2
2
2
2
2
2
3
3
3
3
3
Telecommunications Duct Bank (LF)
36,703
38,303
38,303
38,303
43,703
49,103
51,803
57,783
57,783
57,783
59,936
Telecommunications Duct Bank Manholes
91
95
95
95
104
113
122
122
122
122
122
Water
Water mains (LF)
52,000
57,500
58,300
59,200
64,600
70,000
79,000
130,000
137,891
137,891
142,694
Fire hydrants
76
95
119
119
130
130
154
188
191
191
201
Storage capacity MG
1,685
1,685
1,685
1,685
1,685
1,685
1,685
1,685
1,685
1,685
2,685
Wastewater
Sanitary sewers (LF)
20,000
15,000
35,000
35,000
39,300
39,300
49,900
94,000
94,000
94,000
98,964
Manholes
160
200
250
250
267
284
304
304
304
304
326
Public Works - Utility
Streets (miles) 10.80
10.80
10.80
Highways (miles) -
-
-
Streetlights -
-
-
Traffic signals (school zone flashers) 2
2
2
Parks and recreation
2
2
Acreage 14
14
19
Playgrounds 2
2
2
Softball/soccer field 1
1
1
Football field -
-
2
Source: Various Town departments
2
2
Note: No capital asset indicators are available for the general government.
2
1
The amount of roads decreased in FY 2011-2012 due to a portion of
road being dedicated to TxDot
100
10.80
10.80
10.80
10.80
10.80
10.25
10.25
10.25
2
2
2
2
2
2
2
2
19
25
25
25
25
25
25
27
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1