HomeMy WebLinkAboutRes 16-05 Approving the Comprehensive Annual Financial Report Year Ending September 30, 2015TOWN OF WESTLAKE
RESOLUTION NO. 16-05
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, 2015.
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,
2015, 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 16-05
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SECTION 4: That this resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED ON THIS 22" DAY OF FEBRUARY, 2016.
ATTEST:
on Lo. Attorney
Resolution 16-05
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TOWN OF WESTLAKE
TOWN OF WESTLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2015
Prepared by:
Town of Westlake
Finance Department
3 Village Circle, Suite 202
Westlake, Texas 76262
TOWN OF WESTLAKE
Exhibit Page
I.INTRODUCTORY SECTION
Letter of Transmittal i
GFOA Certificate of Achievement viii
Organization Chart ix
Town Officials x
II.FINANCIAL SECTION
Independent Auditor’s Report 1
A.MANAGEMENT'S DISCUSSION AND ANALYSIS 4
B.BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position A-1 16
Statement of Activities A-2 17
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet A-3 19
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position A-4 21
Statement of Revenues, Expenditures, and Changes in Fund Balance A-5 22
Reconciliation of the Statement of Revenues, Expendituresand Changes in
Fund Balances of Governmental Funds to the Statement of Activities A-6 24
Proprietary Funds Financial Statements
Statement of Net Position A-7 25
Statement of Revenues, Expenses, and Changes in Net Position A-8 26
Statement of Cash Flows A-9 27
Fiduciary Funds Financial Statements
Statement of Fiduciary Net Position A-10 28
Discretely Presented Component Units Financial Statements
Combining Statement of Net Position A-11 29
Combining Statement of Activities A-12 31
Notes to the Basic Financial Statements 33
C.REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual- General Fund B-1 77
Schedule of Revenues, Expentitures and Changes in Fund Balance -
Budget and Actual - Westlake Academy B-2 78
Notes to Budgetary Comparison Schedules 79
Schedule of Net Pension Liability and Related Ratios - TMRS B-3 80
Schedule of Contributions - TMRS B-4 81
Notes to TMRS Required Supplementary Information 82
Schedule of Academy's Proportionate Share of Net Pension Liability - TRS B-5 83
Schedule of Contributions - TRS B-6 84
TOWN OF WESTLAKE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS
Table of Contents - Continued
Exhibit Page
D.COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Major Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balances C-1 85
Budget and Actual - Debt Service Fund
Nonmajor Governmental Funds
Combining Balance Sheet C-2 87
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance C-3 88
Nonmajor Special Revenue Funds
Budgetary Comparison Schedules:
Visitors Association Fund C-4 89
Lone Star Public Facilities Corporation Fund C-5 90
Economic Development Fund C-6 91
4B Economic Development Corporation Fund C-7 92
III.STATISTICAL SECTION Exhibit
Net Position By Component S-1 94
Changes in Net Position S-2 95
Fund Balances, Governmental Funds S-3 97
Changes in Fund Balances, Governmental Funds S-4 98
Assessed Value and Estimated Actual Value of Taxable Property S-5 100
Principal Property Tax Payers S-6 101
Property Tax Levies and Collections S-7 102
Direct and Overlapping Property Tax Rates S-8 103
Taxable Sales by Industry Type S-9 104
Ratios of General Bonded Debt Outstanding S-10 105
Ratios of Outstanding Debt by Type S-11 106
Direct and Overlapping Governmental Activities Debt S-12 107
Demographic and Economic Statistics S-13 108
Principal Employers S-14 109
Full-Time Equivalent City Government Employees by Function/Program S-15 110
Operating Indicators by Function/Program S-16 111
Capital Asset Statistics by Function/Program S-17 112
3 Village Circle #202 Westlake, Texas 76262
Metro: 817-430-0941 Fax: 817-430-1812 www.westlake-tx.org
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Town of Westlake
February 22, 2016
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,
2015, 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, 2015, 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, 2015, 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, 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
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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 DFW
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 1,184. In 2015, the average
size of new home construction was 9,693 square feet with an average estimated construction cost of
$1.68 million.
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.
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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 12-13 and serves Kindergarten thru 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
Corporation-Denton Project, Texas Student Housing Authority-Jefferson Commons at Town Lake
Austin Project, Texas Student Housing Corporation-College Station Project, 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:
Distinguished Budget Presentation Award from the Governmental Finance Officers
Association (GFOA) marking the 8th year in a row that we have received this honor for
our municipal budget and the 6th year for our educational services budget (Westlake
Academy).
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International Award for Budget Excellence from the Association of School Business
Officials International for the past six years.
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 six years.
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 existing Comprehensive Planning document as we worked with
the Town Council, residents, and the 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 as we move into the final phases with the updating of the
associated ordinances that support the Plan.
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. We also began reporting the approved performance measures to the
governing board this fiscal year.
Invested in the Town’s open enrollment charter school as Westlake Academy, completed its
12th year of operation and graduated our 6th class of seniors with 54 students.
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 42nd out
of 2,300 schools across the nation.
Invested in the Town’s CIP ($1.7M) mainly through the continued progress of Phase 3 of the
FM 1938/Davis Blvd. Streetscaping improvements.
Invested approximately $100K in trail and park improvements; $100K in an outdoor
warning siren for emergency weather related events
Invested a total of $316K in the Town’s infrastructure through reconstruction and
drainage improvements on Sam School Rd. and Dove Rd.
Short Term Trends, Challenges 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:
Westlake’s Permanent Population Growth:
This is the portion of our population considered
to be our permanent residents. An increase in
population of 185 in 1990 to the present 1,150
represents a 522% increase for a net gain of 965
residents. We will need to monitor and plan for
the continued increase in these numbers in light
of Forging Westlake’s forecast of 7.12%
population growth between now and 2040.
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Traffic Demands Due to Growth in Westlake and Surrounding Cities’: The 4 cities that
surround Westlake are also projected to have a combined population of 215,000 people by
2040. As stated earlier, Westlake is estimated to grow to 7,000 by that same time. Internally
current zoning entitlements, if executed, would create an estimated 300,000 vehicle trips per
day. Local impacts associated with this level of growth affects the Town’s street
infrastructure, water and sewer system capital investment requirements, as well as demand for
daily municipal services
Balanced Growth to Impact Cost of Municipal Services: Likewise, the ability to pay for
municipal services utilizing a cost effective revenue format requires balanced growth that
provides for commercial development and a diversified tax base, while maintaining the
community’s bucolic atmosphere. At the same time, we must continue to ensure the policy
direction of the Town is focused on growth paying for the infrastructure for which it creates
the demand.
Housing Start Increases: This past year, we
continued to see single family residential construction
as a result of Granada Phase 1 receiving a final plat.
Existing subdivisions such as Vaquero and Terra Bella
also had strong home construction activity. This is
depicted in the side-chart – prerecession starts were at
38 per year and we are estimating 50 for the coming
fiscal year. Housing starts in Westlake, due to the
high value, adds taxable value, but impacts the
demand for our municipal services, especially the
Town’s charter school.
Management of Development: As the economy and the surrounding cities in the Metroplex
experience commercial development and individuals continue 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 outlined in our Vision
statement.
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 new corporations to Westlake.
Continued Impact of Westlake Academy on Residential Growth: The number of Westlake
residents who are selecting Westlake Academy as the
educational choice for their students has doubled in the
past five years. Resident surveys continually indicate that
the Academy is one of the main reasons they moved to
Westlake, and why they plan to remain in our community.
For example, the 2015 survey results indicate that 96% of
the parents say that enrollment at Westlake Academy was
very/somewhat important to their decision to live in the
community.
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Increase in Westlake Academy Overall Enrollment and Opening of New School
Buildings: The Academy has experienced steady enrollment growth from 491 in SY 2009-10
to a projected 832 in SY 2015-16. The current increase of student population is a result of the
Phase I expansion efforts on the Academy campus and our community growth. It will require
that we carefully manage our student enrollment processes to provide adequate space for
children of Westlake residents. Approximately 39,000 sq. ft. of new facilities spaces was
opened in SY 14/15, which was comprised of a secondary classroom building, field house,
and a primary years’ multi-use building. All of these buildings increased our capacity and
allowed for decompression of our current facilities. The lottery waiting list for admissions
continues to grow from 705 in 2011 to 2,400 students for this coming school year.
Public Education Funding Shortfall: State funding of public education was decreased by
the State Legislature in 2011. While it has increased somewhat since then, the allocation has
not kept pace with basic cost increases. This negatively impacts Westlake since it owns and
operates a public charter school, Westlake Academy, which receives 79% of its operational
funding from the State.
Implementation of the Comprehensive Plan: With adoption of the Town’s new Comp
Plan, Forging Westlake, a number of our ordinances need to be rewritten and new ones
drafted so that the Plan’s recommendations can be implemented. The task of implementing
the changes to the ordinances will require additional staff time and oversight to ensure we
reflect the direction of the Council and the Comp Plan.
Pursuit of Infrastructure and Services Reinvestment While Combating Certain Cost
Increases: With growth comes the need for reinvestment through capital spending for
infrastructure, equipment, as well as work force attraction/retention. This must be facilitated
in concert with the consideration of additional staffing needs to maintain our service levels.
We have balanced all these components in light of maximizing staff efficiencies and processes
to help contain large expenditure drivers such as employee health insurance.
Continued emphasis on long-range financial planning: The FY15-16 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. The forecast must be monitored and updated during the budget formulation process
as well as reviewed with the Town Council as the budget is being prepared. Staff will also
continue to produce a quarterly financial report for the Council that monitors and analyzes
trends in the General Fund, Utility Fund, and Visitor Association Fund. The report serves as a
valuable tool to assist in developing a proactive, rather than reactive, approach to our
changing financial trends.
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 2015-16 Budget. The budget details the
Town's long-term goals and financial policies, and describes program accomplishments and
initiatives.
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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, 2014.
This was the eighth 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 eighth GFOA Distinguished Budget Presentation Award for the
fiscal year beginning October 1, 2014 for our municipal budget and the 6th 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 six years.
The Finance Department received its third Popular Annual Financial Report (PAFR) converting much
of the FY 2013-2014 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 Debbie Piper, CPA
Town Manager Finance Director
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TOWN OF WESTLAKE
ELECTED AND APPOINTED OFFICIALS
September 30, 2015
Laura
Wheat
Alesa
Belvedere
Michael
Barrett
Rick
Rennhack
Carol
Langdon
Wayne
Stoltenberg
ELECTED OFFICIALS
Mayor Laura Wheat
Mayor Pro-Tem Carol Langdon
Council Member Ales Belvedere
Council Member Michael Barrett
Council Member Rich Renhack
Council Member Wayne Stoltenberg
APPOINTED OFFICIALS
TOM BRYMER
Town Manager
AMANDA DEGAN GINGER AWTRY
Assistant Town Manager Director of Communications
and Community Affairs
DEBBIE PIPER KELLY EDWARDS
Director of Finance Town Secretary
EDDIE EDWARDS TODD WOOD
Director of Planning and
Development Director of Human Resources
and Administrative Services
JARROD GREENWOOD RICHARD WHITTEN
Director of Public Works Fire Chief
TROY MEYER JASON POWER
Director of Facilities Maintenance
and Parks and Recreation Director of Information
Technology
FINANCIAL SECTION
TOWN OF WESTLAKE
AN INDEPENDENT MEMBER OF BAKER TILLY INTERNATIONAL WEAVER AND TIDWELL, L.L.P. CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 12221 MERIT DRIVE, SUITE 1400, DALLAS, TX 75251 P: 972.490.1970 F: 972.702.8321
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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, 2015, 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.
Town of Westlake, Texas
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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, 2015, 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 17 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 17. 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 16 to the financial statements, in 2015 the Town adopted new accounting
guidance, GASB Statement No. 68, “Accounting and Financial Reporting for Pensions – an
amendment of GASB Statement No. 27” and GASB Statement No. 71, “Pension Transition for
Contributions Made Subsequent to the Measurement Date”. 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 15 and budgetary comparison
information and pension schedules on pages 77 through 84 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
Town of Westlake, Texas
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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.
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 15, 2016 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 15, 2016
TOWN OF WESTLAKE
MANAGEMENT’S DISCUSSION AND ANALYSIS
TOWN OF WESTLAKE
MANAGEMENT’S DISCUSSION AND ANALYSIS
4
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, 2015. 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 94-
112 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 and deferred outflows of resources of the Town exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $58,370,808 (Net
position). This number must be viewed within the context that the vast majority of the Town's
net position of $36,043,845 (61.7%) 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 $17,827,177 (30.5%). The
remaining amount, $4,499,786 (7.8%), 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 $28,185,481, which is a increase of $16,297,841
in comparison with the prior year. Within this total, $20,801,880 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 $7,680,550, a
decrease of $272,968 in comparison with the prior year. Of this total fund balance,
$7,383,601 is unassigned. This represents 109% of the total general fund expenditures and
is equivalent to 283 operating days.
• The Town's capital assets (net of accumulated depreciation) increased by $3,824,916. 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 $1,331,958 in total, due to 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.
5
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 33- 34 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.
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.
6
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 ten 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, Solana PID 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, Solana
PID 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 19 -24 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 25 -27 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 maintains one fiduciary fund, the PID Agency (debt service) Fund.
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 – 76 of this report.
7
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 77-92.
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 $58,370,808 at the close of the most
recent fiscal year.
The Town’s combined net position changed from a year ago, increasing $19,485,447 from
$38,885,361 to $58,370,808. 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, $36,043,845 (61.7%), 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, $17,827,177 (30.5%), represents resources that are
subject to external or internal restrictions on how they may be used. The remaining balance of
$4,499,786 (7.8%) represents unrestricted net position which is available for the town’s ongoing
expenses.
Table 1
Condensed Statement of Net Position
At September 30, 2015 and 2014
2015 2014 2015 2014 2015 2014
Current and other assets 29,451,181$ 14,197,535$ 4,879,191$ 5,210,808$ 34,330,372$ 19,408,343$
Capital assets 54,470,449 50,205,686 12,662,988 13,102,835 67,133,437 63,308,521
Total Assets 83,921,630$ 64,403,221$ 17,542,179$ 18,313,643$ 101,463,809$ 82,716,864$
Deferred outflows of resources 1,549,467 1,194,749 42,985 - 1,592,452 1,194,749
Noncurrent liabilities 29,466,305 29,866,622 6,357,349 6,389,337 35,823,654$ 36,255,959$
Other liabilities 1,377,466 2,308,387 7,425,583 6,461,906 8,803,049 8,770,293
Total Liabilities 30,843,771 32,175,009 13,782,932 12,851,243 44,626,703$ 45,026,252$
Deferred inflows of resources 58,750 - - - 58,750 -
Net investments in capital assets 29,633,298 32,048,991 6,410,547 6,734,414 36,043,845$ 38,783,405$
Restricted 17,827,177 2,284,947 - - 17,827,177 2,284,947
Unrestricted 7,108,101 (910,977)(2,608,315)(1,272,014)4,499,786 (2,182,991)
Total Net Position 54,568,576$ 33,422,961$ 3,802,232$ 5,462,400$ 58,370,808$ 38,885,361$
Governmental Activities Business-type Activities Total
Assets
Liabilities
Net Position
8
Table 2
Changes in Net Position
For the years ended September 30, 2015 and 2014
2015 2014 2015 2014 2015 2014
Program revenues
Fees, fines and charges for services 2,466,032$ 2,127,786$ 3,563,395$ 3,436,451$ 6,029,427$ 5,564,237$
Operating grant and contributions 7,615,653 6,592,642 - - 7,615,653 6,592,642
Capital grants and contributions 19,983,078 80,472 - - 19,983,078 80,472
General revenues
Taxes
Sales taxes 4,925,428 4,725,845 - - 4,925,428 4,725,845
Property taxes 1,438,969 1,367,069 - - 1,438,969 1,367,069
Hotel occupancy taxes 872,179 796,481 - - 872,179 796,481
Mixed beverage taxes 59,184 51,602 - - 59,184 51,602
Franchise taxes 963,040 795,322 - - 963,040 795,322
Interest on investments 28,904 26,713 7,083 7,114 35,987 33,827
Miscellaneous 198,199 246,633 - - 198,199 246,633
Total revenues 38,550,666 16,810,565 3,570,478 3,443,565 42,121,144$ 20,254,130$
General governmental 3,145,716 2,784,587 - - 3,145,716 2,784,587
Public saftey 2,381,437 2,190,050 - - 2,381,437 2,190,050
Culture and recreation 129,970 123,541 - - 129,970 123,541
Economic development 171,757 147,680 - - 171,757 147,680
Public works 1,081,996 955,794 - - 1,081,996 955,794
Visitor services 665,936 493,087 - - 665,936 493,087
Education 8,598,261 7,147,411 - - 8,598,261 7,147,411
Interest on long-term debt 1,022,201 998,951 - - 1,022,201 998,951
Water and sewer - - 4,861,529 3,690,137 4,861,529 3,690,137
Cemetery - - 7,297 7,121 7,297 7,121
Total expenses 17,197,274 14,841,101 4,868,826 3,697,258 22,066,100 18,538,359
Increase (decrease) in net
position before transfers 21,353,392 1,969,464 (1,298,348) (253,693) 20,055,044 1,715,771
Transfers 323,100 43,399 (323,100)(43,399)- -
Change in net position 21,676,492 2,012,863 (1,621,448) (297,092) 20,055,044 1,715,771
Net position, beginning
as previously stated 33,422,961 32,057,541 5,462,400 5,759,492 38,885,361 37,817,033
Cumulative effect of a change
in accounting principle (530,877) (647,443) (38,720) - (569,597) (647,443)
Net position, ending 54,568,576$ 33,422,961$ 3,802,232$ 5,462,400$ 58,370,808$ 38,885,361$
Governmental Activities Business-type Activities Total
Revenues:
Expenses:
9
Governmental activities: Governmental activities increased the Town's net position by $21,145,615
(63.3%), increasing net position from $33,422,961 to $54,568,576. 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, increased by $8,019,078.
Total revenues for governmental activities increased by $21,740,121 when compared to the prior
year. General revenue had an increase of $476,238, while program revenues had an increase of
$21,263,863.
Program revenues
• Fees, fines and charges for services increased by $338,246 which was primarily due to
an increase of building permits/fees related to Granada and Entrada as well as Terra
Bella.
• Operating Grants and Contributions increased by $1,323,011 primarily due to the
increase of state funding as a result of increased enrollment at Westlake Academy due to
the campus expansion as well as increased grant revenues from Westlake Academy
Foundation and Hudson Foundation.
• Capital Grants and Contributions increased by $19,902,606 with the major portion ($18M)
associated with the contribution of funds related to the Public Improvement District (PID).
General revenues
• Sales tax increased by $199,583 which can 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 $75,698 which now includes receipts from Deloitte
University as well as Solana Marriott.
• Increase in property tax receipts of $71,900 and franchise fees by $167,718.
• Increase in Miscellaneous of $361,566 is due to contributions by TxDot and Fidelity
related to FM 1938.
Expenses
• Total expenses for governmental activities increased by $2,356,173 or approximately
18%. The increase is made up of several components. The major portion of the total
increase was due to capital outlay associated with the Solana PID and $1,450,850 was
related to the education expenditures because of staffing and supplies needed for the
extra students and classroom supplies caused by the three additional
buildings/classrooms. Additionally, the Executive Principal completed her first full year of
employment and salary adjustments to other leadership positions during the fiscal year.
10
Business-type Activities: The net position of our business-type activities ended fiscal year 2015 at
$3,802,232 compared with $5,462,400 in 2014. This represents a decrease in net position of
$1,660,168, or 30% less than the prior fiscal year.
Revenues of the Town's business-type activities were $3,570,478 for the fiscal year ending
September 30, 2015. Revenues (Charges for Services) increased by $126,913 or 4% over the prior
year. Operating expenses for the business-type activities were $4,868,826 for the year, an increase
of $1,171,568 or 32%. This increase was primarily attributed to a payment to the City of Fort Worth
for the Town’s proportionate share of water system upgrades to provide Westlake with future
capacity needs. Additional payments of approximately $2M will be made in subsequent years until
the completion of the project. The business-type activities also had net transfers out of $323,100 in
2015 compared to net transfers out of $43,399 in the prior year which represented an interfund
repayment.
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 $28,185,481; an increase of $16,297,841 in comparison with the prior year.
Approximately 26.2% of this total ($7,383,601) constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is
nonspendable, restricted, committed or assigned to indicate that it is not available for new spending
because it has already been committed.
The following tables present a summary of general, special revenue, capital project, and debt service
fund revenues and expenditures for the fiscal year ended September 30, 2015, and the amount and
percentage of increases and decreases in relation to the prior year.
11
Table 3
Summary of Governmental Funds Revenues
Increase Percent
2014-5 Percent (Decrease)Increase
Amount Of Total From 2013-14 (Decrease)
Taxes
Sales taxes 4,925,428$ 13.1%199,583$ 4.2%
Property taxes 1,432,917 3.8%79,561 5.9%
Hotel occupancy taxes 59,184 0.2%7,582 14.7%
Mixed beverage taxes 872,179 2.3%75,698 9.5%
Franchise taxes 963,040 2.6%167,718 21.1%
Subtotal - Taxes 8,252,748 21.9%530,142 6.9%
State program 6,173,418 16.4%903,777 17.2%
Federal program 87,797 0.2%7,694 9.6%
Interest income 28,904 0.1%2,191 8.2%
Building permits and fees 1,200,790 3.2%25,715 2.2%
Fines and penalties 734,152 1.9%3,711 0.5%
Intergovernmental 3,810 0.0%270 7.6%
Contributions 18,785,953 49.8%18,703,507 22685.8%
Miscellaneous 2,467,381 6.5%805,918 48.5%
Total Revenues 37,734,953$ 100.0%20,982,925$ 125.3%
Revenues
Table 4
Summary of Governmental Funds Expenditures
Increase Percent
2014-15 Percent (Decrease)Increase
Amount Of Total From 2013-14 (Decrease)
General government 2,411,239$ 11.0%174,879$ 7.8%
Public safety 2,490,551 11.4%343,964 16.0%
Culture and recreation 130,322 0.6%6,781 5.5%
Economic development 171,757 0.8%24,072 16.3%
Public works 744,028 3.4%128,247 20.8%
Visitor services 670,157 3.1%177,075 35.9%
Education 7,938,501 36.2%794,823 11.1%
Capital outlay 5,274,282 24.0%(4,689,765) -47.1%
Debt services 2,108,174 9.6%(82,275) -3.8%
Total Expenditures 21,939,011$ 100.0%(3,122,199)$ -12.5%
Expenditures
12
Below are summaries and explanations of the changes in fund balances from fiscal year 2014 to
fiscal year 2015 of the Governmental Funds that are contained in the above totals.
General Fund - Fund balance decreased $272,968 (3%). Most General Fund revenue categories
realized increases over the prior year and many surpassed budget estimates as well. Sales tax
receipts, franchise and fines and penalties exceeded both budget and prior year. Sales taxes grew
as a result of continued improvement in the local economy with several new technology and
professional related companies and one-time payments related to purchases and/or construction. An
additional $485K was transferred from the General Fund with a large portion being contributed to
building permits and fees related to Entrada and Granada which have been designated to be moved
to the Capital Project Fund for future projects.
Visitors Association Fund- Fund balance decreased by $27,455 (2%) primarily due to the additional
funds paid to the Marriott based on an economic development agreement to bring more groups to
Westlake.
Capital Projects Fund - Fund balance increased by $831,893 (63%) largely due to the transfer in
from the General Fund of Entrada and Granada fees which were designated for future projects and
additional transfers for various capital projects.
Westlake Academy Expansion Fund- Fund balance decreased by $28,941 (7%) with the final
expenditures of the Phase I construction being offset by the transfer in of lot fees based on an
economic development agreement related to Granada lot sales.
Solana Public Improvement District (PID) Capital Project Fund – This is a new fund created to detail
the funds contributed based on bond proceeds for the construction of infrastructure for the Entrada
development. All infrastructure will be conveyed to the Town upon completion. Fund balance
increased by $15,173,051 based on the contribution of $18M offset by construction draws for the
project and bond issuance costs.
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 $3,802,232, a decrease of $1,660,168 which was primarily due to the
payment to the City of Fort Worth for the Town’s proportionate share of water system upgrades to
provide Westlake with future capacity needs. Additional payments will be made in subsequent years.
General Fund Budgetary Highlights
The General Fund budget for fiscal year 2015 was amended in total to increase the net change in
fund balance from $(1,655,765) to $(674,171), a total increase of $981,594. The amended budget
for net revenues was increased by $591,736 (8%) based on anticipated increases in several
categories and the amended budget for expenditures was increased by $380,683 while other
financing sources (uses) increased by $976,540. This was primarily due to unanticipated insurance
proceeds offset by a reduction of transfers out to Debt Service. Sales tax receipts in 4B Economic
Development Fund are used for debt service and the General Fund transfers out the shortfall. More
than anticipated sales tax revenues were received; therefore, a smaller amount of funds had to be
transferred to the Debt Service Fund.
The General Fund actual revenue collections were less than the amended budget by $187,265
which can be attributed to the additional receipt of taxes offset by the anticipated addition of building
permits and fees which weren’t received due to timing. The final expenditures were $971,368 (12%)
less than budgeted. Several of the larger expenditures under budget were due to timing. We had
anticipated the implementation of permitting software and the amendment to the Code or Ordinances
13
to support the newly approved Comprehensive Plan. These large items were not able to be
completed by year-end but will be expensed in the current fiscal year 2015-2016. There was also a
savings on the budgeted attorney and consultant fees as a result of reimbursements regarding the
Entrada/Granada developments. 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, 2015, totaled $67,133,437 (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 $3,824,916 or 6%. Increase for governmental activities was
8.5% ($4,264,763) and 3.3% ($439,847) decrease in business-type activities.
Major capital asset events during the current fiscal year included the following:
o $2.8M – Construction in Progress (Primarily PID)
o $842K – FM 1938 Town Improvements
o $723K – Fire Truck
o $489K – WA expansion
o $207K – Fire Station Complex
o $131K – WA Playground equipment
o $106K – Outdoor warning System
o $ 92K – Technology
o $ 56K - Open Space and Cemetery improvements
o $ 26K – Glenwyck Farms Park Improvements
o $ 11K – Facilities/Maintenance lawnmower
Table 5
Town’s Capital Assets
(Net of Accumulated Depreciation)
2015 2014 2015 2014 2015 2014
Land 11,896,664$ 11,896,663$ -$ -$ 11,896,664$ 11,896,663$
Capital improvements 10,539,908 7,814,722 10,461,290 10,809,857 21,001,198 18,624,579
Building 27,011,626 27,009,853 27,011,626 27,009,853
Machinery and equipment 1,914,727 1,016,010 1,802,085 1,861,591 3,716,812 2,877,601
W/W treatments rights 153,492 185,266 153,492 185,266
Construction in progress 3,107,524 2,468,438 246,121 246,121 3,353,645 2,714,559
Total capital assets 54,470,449$ 50,205,686$ 12,662,988$ 13,102,835$ 67,133,437$ 63,308,521$
Governmental Activities Business-type Activities Total
Additional information on the Town's capital assets can be found in Note 4 on pages 48- 51 of this
report.
14
Long-term debt- At the end of the current fiscal year, the Town had total long-term debt outstanding
of $34,924,001. Of this amount, $28,232,000 represents bonded indebtedness, $33,814 economic
development reimbursement, $174,373 capital leases, $323,227 in loans and $5,226,294 contractual
obligations. During the fiscal year 2014-2015, the Town's total debt payable decreased by
$1,331,958. This decrease was due to the scheduled repayment of principal and interest on
outstanding bonded debt.
Standard & Poor's Ratings Services, a division of McGraw-Hill, Inc. has recently increased the
Town's rate from AA to AA+/stable. Additional information about the rating agency or the significance
of the rating provided may be obtained from Standard & Poor's web site. Additional information on
the Town's long-term debt can be found in Note 5 on pages 51- 60.
Table 6
Outstanding Debt at Year-End
2015 2014 2015 2014 2015 2014
General obligation bonds 17,480,000$ 18,260,000$ -$ -$ 17,480,000$ 18,260,000$
Certificates of obligation 9,759,250 10,029,800 992,750 1,014,200 10,752,000 11,044,000
Contractual obligations 33,814 65,789 5,226,294 5,320,824 5,260,108 5,386,613
Capital leases 174,373 237,378 - - 174,373 237,378
Premium on bonds 701,120 744,328 33,397 33,397 734,517 777,725
Notes payable 323,227 371,464 323,227 371,464
Compensated absences 172,704 157,863 27,072 20,916 199,776 178,779
Total long-term debt 28,644,488$ 29,866,622$ 6,279,513$ 6,389,337$ 34,924,001$ 36,255,959$
Governmental Activities Business-type Activities Total
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
In the FY 2015-16 adopted budget, the General Fund balance is anticipated to increase by
$398,987. General Fund revenues are budgeted to increase by 4% with sales tax making up 45% of
the budgeted revenue. Ad valorem taxes are anticipated to increase by approximately 3% based on
the certified roll of $940,684,347 representing 15% of the budgeted revenues.
Expenditures are budgeted to increase $455,731 a 6% increase. This includes an 11% increase in
payroll which includes a full year of the increased payroll based on the survey performed in FY 14-15
to bring all personnel to market.
In this coming year, the Town’s budget continues to be impacted by encouraging economic signs.
Growth in Westlake, along the SH 114 corridor and with the progress of our new mixed-use
development, Entrada, should continue to increase the commercial revenue sources. Additionally,
increases are expected in residential-related revenues due to new housing developments on the
horizon.
The Utility Fund FY 2015-16 adopted budget is estimated to decrease by $1,658,588 primarily due to
the payment to the City of Fort Worth for the Town’s proportionate share of water system upgrades
to provide Westlake with future capacity needs.
15
CONTACTING THE TOWN'S FINANCE DEPARTMENT
This financial report is designed to provide our citizens, customers, and investors and creditors with
a general overview of the Town's finances and to demonstrate the Town's accountability for the
money it receives. If you have questions about this report or need additional financial information,
contact Debbie Piper, Town of Westlake Finance Director, at 817-490-5712 or email at
dpiper@westlake-tx.org.
BASIC FINANCIAL STATEMENTS
TOWN OF WESTLAKE
EXHIBIT A-1
TOWN OF WESTLAKE
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
The accompanying notes are
an integral part of this statement.
16
Primary Government
Discretely
Governmental Business-type Presented
Activities Activities Total Component Units
Cash and cash equivalents 12,120,035$ 3,538,226$ 15,658,261$ 6,478,370$
Receivables (net of allowance)1,488,435 1,025,216 2,513,651 238,775
Inventories - 96,589 96,589 -
Other assets 96,693 - 96,693 80,961
Restricted cash and cash equivalents 15,746,018 219,160 15,965,178 4,188,806
Capital assets:
Land and construction in progress 15,004,188 246,121 15,250,309 7,282,413
Buildings and improvements 46,780,027 14,899,416 61,679,443 69,554,153
Wastewater treatment rights - 635,199 635,199 -
Machinery and equipment 4,516,302 3,566,595 8,082,897 5,902,065
Less accumulated depreciation (11,830,068) (6,684,343) (18,514,411) (34,184,668)
Total capital assets 54,470,449 12,662,988 67,133,437 48,553,963
Total Assets 83,921,630 17,542,179 101,463,809 59,540,875
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources - TRS pension 107,779 - 107,779 -
Deferred outflows of resources - TMRS pension 347,792 42,985 390,777 -
Deferred loss on refunding 1,093,896 - 1,093,896 -
Total Deferred Outflows of Resources 1,549,467 42,985 1,592,452 -
Accounts payable 1,258,548 550,548 1,809,096 844,344
Customer deposit payable - 219,160 219,160 -
Unearned revenue 1,100 284,535 285,635 2,137,931
Accrued interest payable 117,818 6,371,340 6,489,158 25,264,298
Noncurrent liabilities:
Due within one year 1,252,914 123,493 1,376,407 74,661,851
Due in more than one year 28,213,391 6,233,856 34,447,247 -
Total Liabilities 30,843,771 13,782,932 44,626,703 102,908,424
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - TRS pension 58,750 - 58,750 -
Total Deferred Inflows of Resources 58,750 - 58,750 -
Net investment in capital assets 29,633,298 6,410,547 36,043,845 (26,107,888)
Restricted for:
Tourism 1,081,009 - 1,081,009 -
Construction 15,173,051 - 15,173,051 -
Court security and technology 203,173 - 203,173 -
Future projects 13,632 - 13,632 -
Education 1,356,312 - 1,356,312 -
Unrestricted 7,108,101 (2,608,315)4,499,786 (17,259,661)
Total net position 54,568,576$ 3,802,232$ 58,370,808$ (43,367,549)$
NET POSITION
ASSETS
LIABILITIES
TOWN OF WESTLAKE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
The accompanying notes are
an integral part of this statement.
17
Program Revenues
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
Primary government:
Governmental activities:
General government 3,145,716$ 110,778$ -$ 18,119,637$
Public safety 2,381,437 887,919 13,810 -
Cultural and recreation 129,970 - 6,750 -
Public works 1,081,996 936,245 - 649,566
Economic development 171,757 - - 410,000
Visitor services 665,936 - - -
Education 8,598,261 531,090 7,595,093 803,875
Interest on long-term debt 1,022,201 - - -
Total governmental activities 17,197,274 2,466,032 7,615,653 19,983,078
Business-type activities:
Water and sewer 4,861,529 3,549,775 - -
Cemetery 7,297 13,620 - -
Total business-type activities 4,868,826 3,563,395 - -
Total primary government 22,066,100$ 6,029,427$ 7,615,653$ 19,983,078$
Reported Discretely Presented
Component Units 17,995,200$ 14,488,825$ -$ -$
GENERAL REVENUES AND TRANSFERS:
Taxes:
Sales taxes
Property taxes
Hotel occupancy taxes
Mixed beverage taxes
Franchise taxes
Interest Income
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
NET POSITION, beginning of year as previously stated
Cumulative effect of change in accounting principle
NET POSITION, end of year
Functions/Programs
EXHIBIT A-2
18
Primary Government
Discretely
Governmental Business - Type Presented
Activities Activities Total Component Units
15,084,699$ -$ 15,084,699$ -$
(1,479,708) - (1,479,708) -
(123,220) - (123,220) -
503,815 - 503,815 -
238,243 - 238,243 -
(665,936) - (665,936) -
331,797 - 331,797 -
(1,022,201) - (1,022,201) -
12,867,489 - 12,867,489 -
- (1,311,754) (1,311,754) -
- 6,323 6,323
- (1,305,431) (1,305,431) -
12,867,489 (1,305,431) 11,562,058 -
-$ -$ -$ (3,506,375)$
4,925,428 - 4,925,428 -
1,438,969 - 1,438,969 -
872,179 - 872,179 -
59,184 - 59,184 -
963,040 - 963,040 -
28,904 7,083 35,987 3,211
198,199 - 198,199 -
323,100 (323,100) - -
8,809,003 (316,017) 8,492,986 3,211
21,676,492 (1,621,448) 20,055,044 (3,503,164)
33,422,961 5,462,400 38,885,361 (39,864,385)
(530,877) (38,720) (569,597) -
54,568,576$ 3,802,232$ 58,370,808$ (43,367,549)$
Net (Expense) Revenue and
Changes in Net Position
TOWN OF WESTLAKE
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
The accompanying notes are
are an integral part of this statement.
19
Debt
Westlake Service
General Academy Fund
ASSETS:
Cash and cash equivalents 7,106,297$ 1,317,864$ 20,915$
Receivables :
Property taxes 5,379 - 674
Accounts receivable 824,725 366,320 -
Other - - -
Due from other funds 164,147 - -
Other assets 13,334 81,485 -
Restricted cash and cash equivalents - - -
TOTAL ASSETS 8,113,882$ 1,765,669$ 21,589$
LIABILITIES, DEFFERED INFLOWS OF
RESOURCES AND FUND BALANCE:
Liabilities:
Accounts payable 427,953$ 91,957$ -$
Unearned revenue - - -
Due to other funds - - -
Total liabilities 427,953 91,957 -
DEFERRED INFLOWS OF RESOURCES:
Unavailable resources - property taxes 5,379 - 673
Total deferred inflows of resources 5,379 - 673
Fund Balances:
Nonspendable:
Prepaid items 13,334 81,485 -
Restricted for:
Tourism - - -
Capital items - - -
Court security and technology 203,173
Debt service - - 20,916
Education - 1,592,227 -
Committed for:
Street and tree improvements 80,442 - -
Unassigned 7,383,601 - -
Total fund balances 7,680,550 1,673,712 20,916
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 8,113,882$ 1,765,669$ 21,589$
EXHIBIT A-3
20
Westlake Solana PID Nonmajor Total
Capital Academy Capital Governmental Governmental
Projects Expansion Projects Funds Funds
2,208,871$ 395,932$ -$ 1,070,156$ 12,120,035$
- - - - 6,053
- - - 264,948 1,455,993
26,389 - - - 26,389
- - - - 164,147
- - - 1,874 96,693
- - 15,746,018 - 15,746,018
2,235,260$ 395,932$ 15,746,018$ 1,336,978$ 29,615,328$
90,276$ 179$ 572,967$ 75,216$ 1,258,548$
- - - 1,100 1,100
- - - 164,147 164,147
90,276 179 572,967 240,463 1,423,795
- - - - 6,052
- - - - 6,052
- - - 1,874 96,693
- - - 1,081,009 1,081,009
2,144,984 395,753 15,173,051 13,632 17,727,420
203,173
- - - - 20,916
- - - - 1,592,227
- - - - 80,442
- - - - 7,383,601
2,144,984 395,753 15,173,051 1,096,515 28,185,481
2,235,260$ 395,932$ 15,746,018$ 1,336,978$ 29,615,328$
EXHIBIT A-4
TOWN OF WESTLAKE
RECONCILIATION OF THE GOVERMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
21
Total fund balance-governmental funds balance sheet 28,185,481$
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.54,470,449
Deferred losses on refunding are reported as deferred outlfows of resources
in the government-wide statement of net position.1,093,896
Revenues earned but not available within sixty days of the fiscal year-end are not
recognized as revenue in the fund financial statements.6,052
Deferred outflows of resources related to the Town's and Academy's net
pension liability increase net position by $107,779 and $347,792, respectively;
while the Academy's deferred resource outflows related to the net pension
liability decreases net position by $58,750. This amount is the net effect.396,821
Interest payable on long-term debt does not require current financial resources, therefore
interest payable is not reported as a liability in the governmental funds balance sheet.(117,818)
Long-term liabilities, including bonds payable, are not due and payable in the current
period, and therefore are not reported in the fund financial statements.(29,466,305)
NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of net position 54,568,576$
TOWN OF WESTLAKE
TOWN OF WESTLAKE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
The accompanying notes are
are an integral part of this statement.
22
Westlake Debt
General Academy Service Fund
REVENUES:
Taxes
Sales 3,587,323$ -$ -$
Property 1,256,796 - 176,121
Mixed beverage 59,184 - -
Hotel occupancy - - -
Franchise 963,040 - -
State program revenues - 6,173,418 -
Federal program revenues - 87,797 -
Interest income 10,078 2,067 -
Building permits and fees 1,200,790 - -
Fines and penalties 734,152 - -
Intergovernmental 3,810 - -
Contributions 10,000 - -
Miscellaneous 81,539 1,971,097 -
Total revenues 7,906,712 8,234,379 176,121
EXPENDITURES:
Current
General government 2,411,239 - -
Public safety 2,490,551 - -
Cultural and recreation 130,322 - -
Public works 744,028 - -
Economic development - - -
Visitor services - - -
Education - 7,938,501 -
Capital outlay 748,297 - -
Debt service
Principal retirement 48,237 - 1,050,550
Interest and other fiscal charges - 10,204 963,425
Total expenditures 6,572,674 7,948,705 2,013,975
Excess (deficiency) of revenues
Over (Under) Expenditures 1,334,038 285,674 (1,837,854)
OTHER FINANCING SOURCES (USES)
Transfers in 521,320 300,000 1,857,689
Transfers out (2,290,385) - -
Capital lease proceeds - 16,740 -
Insurance proceeds 162,059 - -
Net other financing sources (uses)(1,607,006) 316,740 1,857,689
NET CHANGE IN FUND BALANCES (272,968) 602,414 19,835
FUND BALANCES, AT BEGINNING OF YEAR 7,953,518 1,071,298 1,081
FUND BALANCES AT END OF YEAR 7,680,550$ 1,673,712$ 20,916$
EXHIBIT A-5
23
Westlake Solana PID Nonmajor Total
Capital Academy Capital Governmental Governmental
Projects Expansion Projects Funds Funds
-$ -$ -$ 1,338,105$ 4,925,428$
- - - - 1,432,917
- - - - 59,184
- - - 872,179 872,179
- - - - 963,040
- - - - 6,173,418
- - - - 87,797
3,544 1,401 9,711 2,103 28,904
- - - - 1,200,790
- - - - 734,152
- - - - 3,810
649,566 - 18,119,637 6,750 18,785,953
- - - 414,745 2,467,381
653,110 1,401 18,129,348 2,633,882 37,734,953
- - - - 2,411,239
- - - - 2,490,551
- - - - 130,322
- - - - 744,028
- - - 171,757 171,757
- - - 670,157 670,157
- - - - 7,938,501
1,260,018 494,670 2,771,297 - 5,274,282
- - - 31,975 1,130,762
- - - 3,783 977,412
1,260,018 494,670 2,771,297 877,672 21,939,011
(606,908) (493,269) 15,358,051 1,756,210 15,795,942
1,438,801 464,328 - 35,758 4,617,896
- - (185,000) (1,819,411) (4,294,796)
- - - 16,740
- - - 162,059
1,438,801 464,328 (185,000) (1,783,653) 501,899
831,893 (28,941) 15,173,051 (27,443) 16,297,841
1,313,091 424,694 - 1,123,958 11,887,640
2,144,984$ 395,753$ 15,173,051$ 1,096,515$ 28,185,481$
EXHIBIT A-6
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, 2015
The accompanying notes are
are an integral part of this statement.
24
Net change in fund balances- total governmental funds.16,297,841$
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.5,431,666
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.(1,246,759)
Governmental funds do not recognize assets contributed by developers. However, in the
statement of activities, the fair market value of those assets is recognized as revenue,
then allocated over the useful life of the assets and reported as depreciation expense.130,000
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:
Repayments 1,130,762
Amortization of premium on bonds 43,208
Amortization of deferred loss on refunding (100,852) 1,073,118
Governmental funds reflect the proceeds of capital leases as other financing sources and
payments as expenditures. However, in the government-wide statements, the proceeds
and payments are reflected as changes in liabilities. This amount represents the net
effect of proceeds ($16,740) and payments, $79,745.63,005
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.2,642
Implementation of GASB 68 requires certain expenditures to be de-expended and recorded as deferred
outflows of resources. The following is the net effect of current year TMRS pension expense,
($196,848), and contributions made after the measurement date, $228,154.31,306
Implementation of GASB 68 also affected the Academy. Contributions made to TRS after the
measurement date caused the change in net position to increase by $92,325. Contributions made
before the measurement period also caused an increase in the change in net position of $12,082.
The net share of the Academy's amount of deferred inflows and outflows of resources decreased 74,574
the change in net position by $29,833. This amount is the net effect.
Insurance recoveries are recorded as other financing source in the governmental funds
financial statements, while in the governmentwide statement of activities, the gain on (50,144)
disposal increases net position. The difference is the carrying amount of the assets disposed of.
Current year changes in the long-term liability for compensated absences do not require
the use of current financial resources; and therefore, are not reported as expenditures in
governmental funds.(14,841)
Certain revenues in the government-wide statement of activities that do not provide current
financial resources are not reported as revenue in the governmental funds.(115,916)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of activities 21,676,492$
EXHIBIT A-7
TOWN OF WESTLAKE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2015
The accompanying notes are
are an integral part of this statement.
25
Utility Cemetery
Fund Fund Total
ASSETS:
Current Assets
Cash and cash equivalents 3,478,452$ 59,774$ 3,538,226$
Accounts receivable 1,025,216 - 1,025,216
Inventories - 96,589 96,589
Restricted cash and investments 219,160 - 219,160
Total current assets 4,722,828 156,363 4,879,191
Noncurrent assets
Capital assets:
Construction in progress 246,121 - 246,121
Buildings and improvements 14,899,416 - 14,899,416
Wastewwater treatment rights 635,199 - 635,199
Machinery and equipment 3,566,595 - 3,566,595
Less: accumulated depreciation (6,684,343) - (6,684,343)
Total capital assets 12,662,988 - 12,662,988
Total noncurrent assets 12,662,988 - 12,662,988
TOTAL ASSETS 17,385,816 156,363 17,542,179
DEFERRED OUTFLOWS OF RESOURCES:
Unavailable resources - TMRS pension 42,985 - 42,985
TOTAL DEFERRED OUTFLOWS OF RESOURCES 42,985 - 42,985
LIABILITIES
Current liabilities:
Accounts payable 548,923 1,625 550,548
Customer deposits payable 219,160 - 219,160
Accrued interest payable 6,371,340 - 6,371,340
Unearned revenue 284,535 - 284,535
Compensated absences - current portion 2,707 2,707
Current portion of bonds payable 21,450 - 21,450
Contractual obligations 99,336 - 99,336
Total current liabilities 7,547,451 1,625 7,549,076
Long-term liabilities:
Bonds payable 971,300 - 971,300
Compensated absences 24,365 - 24,365
Contractual obligations 5,160,355 - 5,160,355
Net pension liability 77,836 - 77,836
Total long-term liabilities 6,233,856 - 6,233,856
TOTAL LIABILITIES 13,781,307 1,625 13,782,932
NET POSITION
Net investment in capital assets 6,410,547 - 6,410,547
Unrestricted (2,763,053) 154,738 (2,608,315)
TOTAL NET POSITION 3,647,494$ 154,738$ 3,802,232$
EXHIBIT A-8
TOWN OF WESTLAKE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
The accompanying notes are
are an integral part of this statement.
26
Utility Cemetery
Fund Fund Total
OPERATING REVENUES:
Charges for services $3,352,471 13,620$ 3,366,091$
Miscellaneous revenue 197,304 - 197,304
Total operating revenues 3,549,775 13,620 3,563,395
OPERATING EXPENSES:
Payroll costs 358,353 - 358,353
Professional and contract services 1,129,962 6,443 1,136,405
Depreciation 493,101 - 493,101
Amortization of wastewater treatment rights 31,774 - 31,774
Water purchases 1,223,393 - 1,223,393
Cost of cemetary lots sold - 397 397
Other operating costs 829,343 457 829,800
Total operating expenses 4,065,926 7,297 4,073,223
Net operating income (516,151) 6,323 (509,828)
NON-OPERATING REVENUES(EXPENSES):
Interest income 6,996 87 7,083
Interest expense (795,603) - (795,603)
Total non-operating revenues (expenses)(788,607) 87 (788,520)
INCOME (LOSS) BEFORE TRANSFERS AND
CAPITAL CONTRIBUTIONS (1,304,758) 6,410 (1,298,348)
Transfer out (323,100) - (323,100)
Total transfers and capital contributions (323,100) - (323,100)
Change in net position (1,627,858) 6,410 (1,621,448)
Total net position, beginning of year 5,314,072 148,328 5,462,400
Cumulative effect of change in accounting principle (38,720) - (38,720)
Total net position, end of year $3,647,494 154,738$ 3,802,232$
EXHIBIT A-9
TOWN OF WESTLAKE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
The accompanying notes are
are an integral part of this statement.
27
Utility Cemetery
CASH FLOWS FROM OPERATING ACTIVITIES:Fund Fund Total
Receipts from customers 3,350,495$ 13,678$ 3,364,173$
Payments to employees (372,908) - (372,908)
Payments to suppliers (2,851,473) (5,630) (2,857,103)
Net cash provided by operating activities 126,114 8,048 134,162
CASH FLOW FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfer to other funds (323,100) - (323,100)
Net cash used in noncapital financing activities (323,100) - (323,100)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Principal paid on debt (114,808) - (114,808)
Interest paid on debt (139,384) - (139,384)
Investment earnings 6,996 87 7,083
Purchase of property and equipment (85,028) - (85,028)
Net cash provided by (used in) capital and related financing activities (332,224) 87 (332,137)
Net increase (decrease) in cash (529,210) 8,135 (521,075)
Cash and cash equivalents at the
beginning of the year 4,226,822 51,639 4,278,461
Cash and cash equivalents at the
end of the year 3,697,612$ 59,774$ 3,757,386$
RECONCILIATION OF TOTAL CASH AND CASH EQUIVALENTS:
Cash and cash equivalents 3,478,452$ 59,774$ 3,538,226$
Restricted cash and cash equivalents 219,160 - 219,160
Total cash and cash equivalents 3,697,612 59,774 3,757,386
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss)(516,151) 6,323 (509,828)
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization 524,875 - 524,875
Pension expense 24,329 - 24,329
Changes in operating assets and liabilities:
Receivables (189,913) 58 (189,855)
Prepaid Items
Inventory - 397 397
Compensated absences 6,156 - 6,156
Deferred outflows of resource (28,198) - (28,198)
Accounts payable 314,383 1,270 315,653
Customer deposits payable 24,450 - 24,450
Deferred revenue (33,817) - (33,817)
Net cash provided by operating activities 126,114$ 8,048$ 134,162$
TOWN OF WESTLAKE
EXHIBIT A-10
TOWN OF WESTLAKE
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUND
SEPTEMBER 30, 2015
The accompanying notes are
are an integral part of this statement.
28
PID Agency
Fund
ASSETS
Restricted cash and cash equivalents 4,372,587$
Total Assets 4,372,587$
LIABILITIES
Liability to bond holders 4,372,587$
Total Liabilities 4,372,587$
TOWN OF WESTLAKE
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
The accompanying notes are
are an integral part of this statement.
29
Texas Student
Texas Student Housing Authority
Housing Jefferson Commons
Corporation at Town Lake
Denton Project Project
ASSETS
Cash and cash equivalents 367,085$ 256,209$
Accounts receivable (net of allowance)21,644 17,694
Prepaid rent 27,965 -
Restricted assets:
Cash and cash equivalents 1,933,280 232,333
Capital assets:
Land 2,200,000 2,182,816 Buildings and improvements 25,705,000 16,963,841
Machinery and equipment 1,253,841 1,211,085 Less: accumulated depreciation (13,542,440) (7,948,001)
Total assets 17,966,375 12,915,977
LIABILITIES AND NET POSITION
LIABILITIES:
Accounts payable and accrued expenses 287,802 340,452
Unearned revenue 187,524 145,275
Accrued interest payable 7,289,475 4,182,603
Bonds payable 25,605,131 19,627,520
Total liabilities 33,369,932 24,295,850
NET POSITION:Net investment in capital assets (9,988,730) (7,217,779)
Unrestricted (5,414,827) (4,162,094)
Total net position (15,403,557)$ (11,379,873)$
EXHIBIT A-11
30
Texas Student
Housing
Corporation Texas Student
College Station Housing
Project Authority Total
5,174,458$ 680,618$ 6,478,370$
198,464 973 238,775
52,996 - 80,961
2,023,193 - 4,188,806
2,899,597 - 7,282,413 26,885,312 - 69,554,153
3,437,139 - 5,902,065
(12,694,227) - (34,184,668)
27,976,932 681,591 59,540,875
215,235 855 844,344
1,770,049 35,083 2,137,931
13,792,220 - 25,264,298
29,429,200 - 74,661,851
45,206,704 35,938 102,908,424
(8,901,379) - (26,107,888)
(8,328,393) 645,653 (17,259,661)
(17,229,772)$ 645,653$ (43,367,549)$
TOWN OF WESTLAKE
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
The accompanying notes are
an integral part of this statement.
31
Program Revenues
Charges for Operating Grants Capital Grants
Functions/Programs Expenses Services and Contributions and Contributions
Business-type activities:
Texas Student Housing Authority 248,967$ 359,193$ -$ -$
Texas Student Housing Authority:
College Station Project 8,054,674 6,006,756 - -
Jefferson Commons at Town Lake 4,138,075 3,208,107 - -
Denton Project 5,553,484 4,914,769 - -
Total business-type activities 17,995,200 14,488,825 - -
Total primary government 17,995,200$ 14,488,825$ -$ -$
GENERAL REVENUES:
Interest Income
Total general revenues
Change in Net Postion
NET POSITION, beginning of year
NET POSITION, end of year
EXHIBIT A-12
32
Texas Student Texas Student
Texas Student Housing Authority Housing
Housing Jefferson Commons Corporation Texas Student
Corporation at Town Lake College Station Housing
Denton Project Project Project Authority Total
-$ -$ -$ 110,226$ 110,226$
- - (2,047,918) - (2,047,918)
- (929,968) - - (929,968)
(638,715) - - - (638,715)
(638,715) (929,968) (2,047,918) 110,226 (3,506,375)
(638,715)$ (929,968)$ (2,047,918)$ 110,226$ (3,506,375)$
1,895 100 818 398 3,211
1,895 100 818 398 3,211
(636,820) (929,868) (2,047,100) 110,624 (3,503,164)
(14,766,737) (10,450,005) (15,182,672) 535,029 (39,864,385)
(15,403,557)$ (11,379,873)$ (17,229,772)$ 645,653$ (43,367,549)$
TOWN OF WESTLAKE
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
33
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 – Jefferson
Commons at Town Lake Project, Texas Student Housing Corporation – College Station
Project and Texas Student Housing Corporation – Denton Project.
The Texas Student Housing Authority, Texas Student Housing Authority – Jefferson
Commons at Town Lake Project, Texas Student Housing Corporation – College
Station Project, and Texas Student Housing Corporation – Denton 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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
34
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
99 Trophy Club Drive
Trophy Club, 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, and a financial
benefit relationship exists, 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 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. Since the board
of directors is substantively the same as the Town's governing body, and a financial
benefit relationship exists, 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, and a financial benefit
relationship exists, the entity has been reported as a blended component unit of the
Town. The Academy's year-end is August 31.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
35
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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
36
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.
Solana Public Improvement District (PID) Capital Projects Fund – to account for the
acquisition or construction of capital facilities and improvements relating to the Solana
public improvement district.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
37
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 4B 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, Solana PID 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.
The Town reports the following fiduciary fund:
Solana PID Agency Fund – to account for bond proceeds, assessments, and related
debt associated with bonds issued by the Town as an agent for the Solana public
improvement district.
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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
38
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Measurement Focus, Basis of Accounting, and Financial Statement Presentation –
Continued
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.
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."
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
39
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Assets, Liabilities, and Net Position or Equity – Continued
Receivables and Payables – Continued
Advances between funds, as reported in the fund financial statements, are offset by
nonspendable fund balance in applicable governmental funds to indicate that they
are not available for appropriation and are not expendable available financial
resources.
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.
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, 2015.
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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
40
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:
Years
Water and sewer system 10-50
Buildings 20-50
Machinery and equipment 3-30
Improvements 5-30
Information systems and software 3
Assets
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 only payable upon retirement, death of the
employee, or other circumstances when authorized by the Town Manager.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
41
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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
42
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.
Summary of Significant Accounting Policies
Pensions - For purposes of measuring the net pension liability, deferred outflows of
resources and deferred inflows of resources related to pensions, and pension expense,
information about the Fiduciary Net Position of the Texas Municipal Retirement System
(TMRS) and additions to/deductions from TMRS’s Fiduciary Net Position have been
determined on the same basis as they are reported by TMRS. For this purpose, plan
contributions are recognized in the period that compensation is reported for the
employee, which is when contributions are legally due. Benefit payments and refunds
are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
43
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
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,
2015 up through February 15, 2016, the date the financial statements were issued.
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:
Maximum Maximum
Maximum Percentage Investment
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
Authorized
Investment Type
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
44
NOTE 2. CASH AND INVESTMENTS – CONTINUED
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 $16,077,071 and the bank
balance was $17,597,039. 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 $10,667,176 and the
bank balance was $10,742,156. 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 $6,478,370 in cash and cash equivalents and
$4,188,806 in restricted cash and cash equivalents.
At September 30, 2015, the Town's cash and cash equivalents consist of and are classified
in the accompanying financial statements are follows:
Primary government:
Cash and cash equivalents 15,658,261$
Restricted cash and investments 15,965,178
Total primary government 31,623,439
Fiduciary funds:
Restricted cash and cash equivalents 4,372,587
Total cash and investments 35,996,026$
Deposits with financial institutions 16,077,071$
Investments 19,918,955
Total cash and investments 35,996,026$
Disclosures Relating to Interest Rate Risk
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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
45
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Disclosures Relating to Interest Rate Risk – Continued
As of September 30, 2015, the Town's investments were as follows:
Weighted
Carrying Average
Amount Fair Value Maturity (days)
TexPool 350$ 350$ 48 days
Commerical Paper 19,918,605 19,918,605 1 day
Total 19,918,955$ 19,918,955$
Investment Type
Disclosures Relating to Credit Risk
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.
Minimum Rating
Carrying Fair Legal as of
Amount Value Rating Year-end
Investments:
TexPool 350$ 350$ N/A AAA-m
Commercial Paper 19,918,605 19,918,605 N/A A-1
Total 19,918,955$ 19,918,955$
Primary government
Disclosures Relating to Concentration of Credit Risk
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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
46
NOTE 2. DEPOSITS AND INVESTMENTS – CONTINUED
Disclosures Relating to Custodial Credit Risk – Continued
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, 2015, the Town's entire cash deposits with financial institutions in
excess of federal depository insurance were fully collateralized.
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, 2015, 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, the $219,160 of restricted cash 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 $4,188,806 in restricted cash
and cash equivalents represents funds held for debt service.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
47
NOTE 3. RECEIVABLES
Governmental activities receivable balance consists of the following as of September 30,
2015:
Debt Total
Westlake Service Capital Nonmajor Governmental
General Academy Fund Projects Fund Funds
Receivables:
Sales tax 464,485$ -$ -$ -$ 192,103$ 656,588$
Property tax 7,172 - 898 - 8,070
Other taxes 15,875 - - - 72,845 88,720
Franchise tax 228,280 - - - - 228,280
Accounts 46,115 - - - - 46,115
Other 94,244 366,320 - 26,389 - 486,953
Gross receivables 856,171 366,320 898 26,389 264,948 1,514,726
Less: allowance
for uncollectibles (26,067) - (224) - - (26,291)
Net total receivables 830,104$ 366,320$ 674$ 26,389$ 264,948$ 1,488,435$
Governmental Funds
Business-type receivables balance consists of the following as of September 30, 2015:
Receivables:
Sales tax
Property tax
Other taxes
Franchise tax
Accounts
Other
Gross receivables
Less: allowance
for uncollectibles
Net total receivables
Utility Cemetery
Fund Fund Total
-$ -$ -$
- - -
- - -
- - -
1,025,216 - 1,025,216
- - -
1,025,216 - 1,025,216
- - -
1,025,216$ -$ 1,025,216$
Business-Type Activities
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
48
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2015, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land 11,896,663$ 1$ -$ -$ 11,896,664$
Construction in progress 2,468,438 2,877,036 - (2,237,950) 3,107,524
Total assets not being depreciated 14,365,101 2,877,037 - (2,237,950) 15,004,188
Capital assets, being depreciated:
Capital improvements 11,374,376 905,115 - 2,237,950 14,517,441
Buildings 31,625,654 696,832 (59,900) - 32,262,586
Machinery and equipment 3,336,556 990,758 (8,500) - 4,318,814
Information systems and software 105,564 91,924 - - 197,488
Total capital assets being depreciated 46,442,150 2,684,629 (68,400) 2,237,950 51,296,329
Less accumulated depreciation:
Capital improvements (3,559,654) (417,879) - - (3,977,533)
Buildings (4,615,801) (644,915) 9,756 - (5,250,960)
Machinery and equipments (2,367,539) (165,555) 8,500 - (2,524,594)
Information systems and software (58,571) (18,410) - - (76,981)
Total accumulated depreciation (10,601,565) (1,246,759) 18,256 - (11,830,068)
Total capital assets being depreciated 35,840,585 1,437,870 (50,144) 2,237,950 39,466,261
Governmental activities
capital assets, net 50,205,686$ 4,314,907$ (50,144)$ -$ 54,470,449$
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets, not being depreciated:
Construction in progress 246,121$ -$ -$ -$ 246,121$
Total assets not being depreciated 246,121 - - - 246,121
Capital assets, being depreciated:
Capital improvements 14,882,835 16,581 - - 14,899,416
Wastewater treatment rights 635,199 - - - 635,199
Machinery and equipment 3,498,148 68,447 - - 3,566,595
Total capital assets being depreciated 19,016,182 85,028 - - 19,101,210
Less accumulated depreciation:
Capital improvements (4,072,978) (365,149) - - (4,438,127)
Wastewater treatment rights (449,933) (31,774) - - (481,707)
Machinery and equipment (1,636,557) (127,952) - - (1,764,509)
Total accumulated depreciation (6,159,468) (524,875) - - (6,684,343)
Total capital assets being depreciated 12,856,714 (439,847) - - 12,416,867
Business-type activities
capital assets, net 13,102,835$ (439,847)$ -$ -$ 12,662,988$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
49
NOTE 4. CAPITAL ASSETS – CONTINUED
Depreciation was charged to departments of the primary government as follows:
Governmental activities:
General government 827,326$
Public safety 79,419
Public works 340,014
Total depreciation expense - governmental activities 1,246,759$
Business-type activities:
Water and sewer 524,875$
A summary of discretely presented component units' capital assets at September 30, 2015
follows:
Texas Student Housing Corporation – Denton Project
Beginning Ending
Balance Increases Decreases Balance
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:
Buildings 25,705,000 - - 25,705,000
Furniture and fixtures 1,253,841 - - 1,253,841
Total capital assets being depreciated 26,958,841 - - 26,958,841
Less accumulated depreciation:
Buildings (11,495,847) (856,833) - (12,352,680)
Furniture and fixtures (1,181,310) (8,450) - (1,189,760)
Total accumulated depreciation (12,677,157) (865,283) - (13,542,440)
Total capital assets being depreciated 14,281,684 (865,283) - 13,416,401
Capital assets, net 16,481,684$ (865,283)$ -$ 15,616,401$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
50
NOTE 4. CAPITAL ASSETS – CONTINUED
Texas Student Housing Authority – Jefferson Commons at Town Lake Project
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated:
Land 2,182,816$ -$ -$ 2,182,816$
Total assets not being depreciated 2,182,816 - - 2,182,816
Capital assets, being depreciated:
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 (4,976,306) (442,338) - (5,418,644)
Capitalized purchase price (313,325) (28,485) - (341,810)
Land improvements (882,909) (93,553) - (976,462)
Unit appliances (295,134) - - (295,134)
Furniture and fixtures (915,951) - - (915,951)
Total accumulated depreciation (7,383,625) (564,376) - (7,948,001)
Total capital assets being depreciated 10,791,301 (564,376) - 10,226,925
Capital assets, net 12,974,117$ (564,376)$ -$ 12,409,741$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
51
NOTE 4. CAPITAL ASSETS – CONTINUED
Texas Student Housing Corporation –College Station Project
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 - - 26,885,312
Furniture and fixtures 3,437,138 - - 3,437,138
Total capital assets being depreciated 30,322,450 - - 30,322,450
Less accumulated depreciation:
Buildings (8,853,174) (896,177) - (9,749,351)
Furniture and fixtures (2,859,802) (85,073) - (2,944,875)
Total accumulated depreciation (11,712,976) (981,250) - (12,694,226)
Total capital assets being depreciated 18,609,474 (981,250) - 17,628,224
Capital assets, net 21,509,071$ (981,250)$ -$ 20,527,821$
NOTE 5. LONG-TERM DEBT
A summary of long-term debt transactions for the year ended September 30, 2015, was as
follows:
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Governmental activities:
General obligation bonds and
certificates of obligation 28,289,800$ -$ (1,050,550)$ 27,239,250$ 1,068,550$
Unamortized bond premium 744,328 - (43,208) 701,120 -
Notes payable 371,464 - (48,237) 323,227 48,126
Capital leases 237,378 16,740 (79,745) 174,373 85,154
Fidelity tax reimbursement 65,789 - (31,975) 33,814 33,814
Compensated absences 157,863 145,940 (131,099) 172,704 17,270
Net pension liability- TMRS 428,290 201,471 - 629,761 -
Net pension liability - TRS 235,829 45,287 (89,060) 192,056 -
Total governmental activities 30,530,741$ 409,438$ (1,473,874)$ 29,466,305$ 1,252,914$
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Business-type activities:
Certificates of obligation 1,014,200$ -$ (21,450)$ 992,750$ 21,450$
Contractual obligations 5,320,824 - (94,530) 5,226,294 99,336
Unamortized bond premium 33,397 - - 33,397 -
Compensated absences 20,916 19,497 (13,341) 27,072 2,707
Net pension liability - TMRS 52,935 24,901 - 77,836 -
Total business-type activities 6,442,272$ 44,398$ (129,321)$ 6,357,349$ 123,493$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
52
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, 2015:
General Obligations Bonds and Final Business-
Certificates of Obligation Maturity Interest Rates Governmental Type
$7,465,000 General Obligation Refunding Bonds,
Series 2007 2032 3.75-4.20%7,165,000$ -$
$2,095,000 Combination Tax and Revenue
Certificates of Obligation, Series 2011 2031 3.25%1,727,000 -
$7,375,000 General Obligation Refunding Bonds,
Series 2011 2028 2.0-4.0%6,735,000 -
$9,320,000 Certificates of Obligation, Series 2013 2043 2.0-4.0%8,032,250 992,750
$2,200,000 General Obligation Refunding Bonds,
Series 2013 2028 2.0-2.5%1,855,000 -
$1,910,000 General Obligation Refunding Bonds,
Series 2014 2032 2.0-5.0%1,725,000 -
27,239,250$ 992,750$
Debt service requirements of certificates of obligation and general obligations to be
retired from governmental funds are as follows:
Total
Principal Interest Requirements
1,068,550$ 942,543$ 2,011,093$
1,088,000 939,260 2,027,260
1,127,000 897,495 2,024,495
1,160,450 863,898 2,024,348
1,198,350 829,017 2,027,367
6,558,500 3,566,912 10,125,412
7,739,200 2,338,317 10,077,517
4,380,000 874,569 5,254,569
1,717,700 407,317 2,125,017
1,201,500 73,514 1,275,014
27,239,250$ 11,732,842$ 38,972,092$
2020
2031-2035
2036-2040
2041-2043
2019
2021-2025
2026-2030
Year Ending
September 30,
2016
2017
2018
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
53
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:
Total
Principal Interest Requirements
21,450$ 33,896$ 55,346$
22,000 33,461 55,461
22,000 33,021 55,021
22,550 32,576 55,126
23,650 32,114 55,764
126,500 151,079 277,579
173,800 129,137 302,937
220,000 89,882 309,882
212,300 50,343 262,643
148,500 9,086 157,586
992,750$ 594,595$ 1,587,345$
2021-2025
2026-2030
2017
2020
2019
Total
2031-2035
2036-2040
2041-2044
2018
September 30,
2016
Year Ending
Notes Payable
In March 2014, the Town received a $366,774 loan from Bennett Benner Pettit, the
proceeds of which were 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 $34,710.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
54
NOTE 5. LONG-TERM DEBT – CONTINUED
Notes Payable – Continued
Debt service requirements for the notes payable to be retired from governmental funds
are as follows:
48,126$
36,677
36,677
36,677
36,677
128,393
323,227$
2016
2019
2020
Year Ending
September 30,
2021-2024
Total
2017
2018
Capital Leases
The Westlake Academy has entered into lease agreements as lessee for financing the
acquisition of computer equipment and software. The lease agreements qualify capital
leases for accounting purposes, and therefore, have 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 $255,749 was under capital lease at
September 30, 2015. Because the cost of the individual items was below the Town’s
capitalization threshold, the entire cost was recorded as expense during the year ended
September 30, 2015.
The following schedule shows the future minimum lease payments under the capitalized
lease together with the present value of the net minimum lease payments as of
September 30, 2015:
Annual
Lease Payments
90,561$
90,550
648
Total minimum lease payments 181,759
Less: Amounts representing interest (7,386)
Present value of net minimum lease payments 174,373$
Year Ending
August 31,
2016
2018
2017
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
55
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:
Total
Principal Interest Requirements
33,814$ 1,944$ 35,758$
33,814$ 1,944$ 35,758$
2016
Total
Year Ending
September 30,
Contractual Obligations
Proprietary funds contractual obligations as of September 30, 2015 are as follows:
Business-
Maturity Interest Rate Type
Elevated Water Storage Facility 2020 5.0-5.65%546,350$
Limited pledge contractual obligation:
Dove Road Water Line and
West Pump Station 2028 6.75%4,679,944
5,226,294$
Contractual Obligations
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%.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
56
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 $4,679,944 for the project cost based upon the
terms of the agreement, which requires 239 monthly principal and interest payments to
Hillwood, at an interest rate of 6.75%. If the Town collects insufficient funds to pay
current interest on the debt, the interest payment may be deferred. No portion of debt
payments will be applied to the principal component, until all current and deferred
interest is fully paid. The obligation of the Town to pay the purchase price and interest
thereon is not a general obligation of the Town but is a limited recourse obligation
payable solely from debt service revenue.
The schedule of future payments by the Town under these agreements is as follows:
Total
Principal Interest Requirements
-$ 6,362,260$ 6,362,260$
99,336 985,500 1,084,836
104,143 849,799 953,942
108,950 904,224 1,013,174
113,756 962,616 1,076,372
120,165 1,028,071 1,148,236
4,679,944 724,066 5,404,010
5,226,294$ 11,816,536$ 17,042,830$
Year Ending
Past Due
2018
2019
2020
September 30,
2016
2017
2021-2025
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, 2015, there were no prior year defeased bonds outstanding.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
57
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 Corporation –Denton Project
The long-term debt activity of the Denton Project is as follows:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Revenue Bonds:
2001 A Bonds 23,710,000$ -$ (785,000)$ 22,925,000$ 2,075,000$
2001 B Bonds 3,240,000 - - 3,240,000 -
Less discount on bonds (597,354) - 37,485 (559,869) -
Total 26,352,646$ -$ (747,515)$ 25,605,131$ 2,075,000$
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, 2015, 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, 2015. 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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
58
NOTE 5. LONG-TERM DEBT – CONTINUED
Discretely Presented Component Units – Long-term Debt – Continued
Texas Student Housing Corporation – Denton Project – Continued
The debt service requirements of the bonds are as follows:
Total
Principal Interest Requirements
1,240,000$ 6,992,072$ 8,232,072$
835,000 1,784,418 2,619,418
950,000 1,728,055 2,678,055
1,020,000 1,661,593 2,681,593
1,085,000 1,589,980 2,674,980
1,165,000 1,513,768 2,678,768
7,190,000 6,205,540 13,395,540
10,185,000 3,220,028 13,405,028
2,495,000 181,283 2,676,283
26,165,000$ 24,876,737$ 51,041,737$
2021-2025
2026-2030
2031-2035
2017
Year Ending
2020
September 30,
Past Due
2019
2018
2016
Texas Student Housing Authority – Jefferson Commons at Town Lake Project
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Revenue Bonds:
2002 A-1 Bonds 14,890,492$ -$ (352,213)$ 14,538,279$ 382,998$
2002 A-2 Bonds 5,089,241 - - 5,089,241 -
Total 19,979,733$ -$ (352,213)$ 19,627,520$ 382,998$
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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
59
NOTE 5. LONG-TERM DEBT – CONTINUED
Discretely Presented Component Units – Long-term Debt – Continued
Texas Student Housing Authority – Jefferson Commons at Town Lake Project –
Continued
The future debt service requirements of the bonds are as follows:
Total
Principal Interest Requirements
-$ 3,931,163$ 3,931,163$
382,998 1,508,639 1,891,637
413,797 1,477,840 1,891,637
447,074 1,444,563 1,891,637
483,026 1,408,611 1,891,637
521,870 1,369,767 1,891,637
3,310,558 6,147,627 9,458,185
4,873,699 4,584,486 9,458,185
6,737,498 1,707,029 8,444,527
2,457,000 - 2,457,000
19,627,520$ 23,579,725$ 43,207,245$
2016
2017
2018
Year Ending
2031-2035
2019
September 30,
Past Due
2026-2030
Total
2021-2025
2020
2036-2038
Texas Student Housing Corporation – College Station Project
The Project's installment note payable is summarized as follows:
Rate Balance
Cambridge Student Housing Financing
Company, L.P.; substantially all
assets and assignment of rents:
due November 1, 2039 8.00%29,429,200$
Lender/Security/Due/Date
The following is a summary of long-term debt transactions of the Project for the year
ended August 31, 2015:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Revenue
Certificates 29,885,000$ -$ (455,800)$ 29,429,200$ 870,000$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
60
NOTE 5. LONG-TERM DEBT – CONTINUED
Discretely Presented Component Units – Long-term Debt – Continued
Texas Student Housing Corporation – College Station Project – 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, 2015 are as follows:
Principal Interest Total
Past Due 315,000$ 13,101,973$ 13,416,973$
555,000 1,795,820 2,350,820
600,000 1,751,328 2,351,328
645,000 1,703,325 2,348,325
720,000 1,650,637 2,370,637
775,000 1,592,890 2,367,890
3,320,000 7,109,570 10,429,570
3,575,000 5,912,733 9,487,733
5,155,000 4,275,367 9,430,367
13,769,200 1,854,218 15,623,418
29,429,200$ 40,747,861$ 70,177,061$
2036-2040
Total
Governmental Activities
2031-2035
2016
2017
September 30,
2020
2021-2025
2026-2030
Year Ending
2018
2019
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, 2015.
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, 2015, 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.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
61
NOTE 6. UNEARNED REVENUE / DEFERRED INFLOWS OF RESOURCES
Unearned revenue in the proprietary fund of $284,535 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. Unearned revenue of $1,100 in the non-major governmental funds
represents sponsorship and registration fees received in advance of an event held in
October 2015.
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 $5,379 and $673 of unavailable property taxes in the general fund and debt
service fund, respectively.
NOTE 7. INTERLOCAL AGREEMENT WITH THE CITY OF SOUTHLAKE
In August 1995, the Town entered into an agreement with the City of Southlake to allow the
Town to utilize capacity in a sewer line and to set forth their respective rights and obligations
with respect to the sewer line owned by the City of Southlake. The Town is obligated to
share in the cost of construction, operation and maintenance of the water sewer line. The
sewer line was constructed in 2000. Additionally, the Town must pay the City of Southlake
all transportation, treatment and related costs allocable to the metered flow of sewage from
the Town into the sewer line.
NOTE 8. FEDERAL AND STATE PROGRAM REVENUES
The Town received financial assistance from various federal and state governmental
agencies in the form of grants for Westlake Academy. The disbursement of funds received
under these programs generally requires compliance with terms and conditions specified in
the grant agreements and are subject to audit by the grantor agencies. Any unallowed
disbursement resulting from such audits becomes a liability of the Town. In the opinion of
the Town management, no material refunds will be required as a result of unallowed
disbursements (if any) by the grantor agencies. Sources of federal and state program
revenues for the year ended September 30, 2015, were as follows:
Westlake
Academy
Federal program revenues:
U.S. Department of Eduation - Passed
through State Department of Education
Total federal program revenues:87,797$
State program revenues:
State Department of Education 6,173,418$
Source
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
62
NOTE 9. INTERFUND BALANCES AND TRANSACTIONS
Interfund receivables and payables at September 30, 2015, were as follows:
Due from Due to
Other Funds Other Funds
General fund 164,147$ -$
Nonmajor governmental funds:
4B Economic Development Fund - 164,147
164,147$ 164,147$
The 4B Economic Development Corporation Fund amount of $164,147 payable to the
General Fund is related to debt service payment reimbursement.
Inter-fund transfers are reported in the governmental funds and proprietary fund financial
statements. In the government-wide statements, inter-fund transfers are eliminated
within the governmental activities column and business-type column, as appropriate.
Transfers are used to (1) move revenues collected in the special revenue funds to
finance various programs in accordance with budgetary authorizations, (2) move
receipts restricted for debt service from the funds collecting the receipts to the Debt
Service fund as debt service payments become due, (3) reimburse one fund for services
provided to another fund, (4) move unrestricted General fund revenues to Capital Project
fund as determined by the Council for capital projects, and (5) transfer payment for
economic development agreements to the Economic Development fund.
Individual fund transfers for fiscal year 2015 were as follows:
Transfer out Transfer in Amount Purpose
General Fund Nonmajor Governmental 35,758$ Payment to Fidelity (Phase I)
General Fund Debt Service Fund 461,498 Debt service payments
General Fund Westlake Academy Expansion 54,328 Payment for the expansion project
General Fund Capital Projects 1,438,801 Payment for the capital project
Utility Fund General Fund 323,100 Collection of Ft. Worth Impact Fees and interfund payment
Nonmajor Governmental General Fund 13,220
Operating expenditures for Communications & Community
Affairs Department.
Nonmajor Governmental Debt Service 164,450 Debt service payments
Nonmajor Governmental Debt Service 1,231,741 Debt service payments
Nonmajor Governmental Westlake Academy Expansion 410,000 Lot payment per economic development agreement
General Fund Westlake Academy 300,000 Student reserve funds
PID Capital Projects General Fund 185,000 Payment to General Fund for PID creation expenses
4,617,896$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
63
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, 2015 was $1,223,393.
NOTE 11. DEFINED BENEFIT PENSION PLAN - TMRS
Plan Description
The Town participates as one of 860 plans in the nontraditional, joint contributory, hybrid
defined benefit pension plan administered by the Texas Municipal Retirement System
(TMRS). TMRS is an agency created by the State of Texas and administered in
accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS
Act) as an agent multiple-employer retirement system for municipal employees in the
State of Texas. The TMRS Act places the general administration and management of
the System with a six-member Board of Trustees. Although the Governor, with the
advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent
on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under
Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available
comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted
by the governing body of the city, within the options available in the state statutes
governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with
interest, and the city-financed monetary credits with interest were used to purchase an
annuity. Members may choose to receive their retirement benefit in one of seven
payments options. Members may also choose to receive a portion of their benefit as a
Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments,
which cannot exceed 75% of the member’s deposits and interest.
Employees Covered By Benefit Terms
At the December 31, 2014 valuation and measurement date, the following employees
were covered by the benefit terms:
Inactive employees of beneficiaries currently receiving benefits 8
Inactive employees entitled to but not yet receiving benefits 17
Active employees 30
55
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
64
NOTE 11. DEFINED BENEFIT PENSION PLAN – TMRS - CONTINUED
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee
gross earnings, and the city matching percentages are either 100%, 150%, or 200%,
both as adopted by the governing body of the city. Under the state law governing TMRS,
the contribution rate for each city is determined annually by the actuary, using the Entry
Age Normal (EAN) actuarial cost method. The actuarially determined rate is the
estimated amount necessary to finance the cost of benefits earned by employees during
the year, with an additional amount to finance any unfunded accrued liability.
Employees for the Town were required to contribute 7% of their annual gross earnings
during the fiscal year. The contribution rates for the Town were 8.05% and 10.92% in
calendar years 2014 and 2015, respectively. The Town’s contributions to TMRS for the
year ended September 30, 2015, were $277,651, and were equal to the required
contributions.
Net Pension Liability
The Town’s Net Pension Liability (NPL) was measured as of December 31, 2014, and
the Total Pension Liability (TPL) used to calculate the Net Pension Liability was
determined by an actuarial valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2014 actuarial valuation was determined
using the following actuarial assumptions:
• Inflation 3.0% per year
• Overall payroll growth 3.0% per year
• Investment Rate of Return 7.0%, net of pension plan investment expense,
including inflation
Salary increases were based on a service-related table. Mortality rates for active
members, retirees, and beneficiaries were based on the gender-distinct RP2000
Combined Healthy Mortality Table, with male rates multiplied by 109% and female rates
multiplied by 103%. The rates are projected on a fully generational basis by scale BB to
account for future mortality improvements. For disabled annuitants, the gender-distinct
RP2000 Disabled Retiree Mortality Table is used, with slight adjustments.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
65
NOTE 11. DEFINED BENEFIT PENSION PLAN - TMRS – CONTINUED
Actuarial Assumptions – Continued
Actuarial assumptions used in the December 31, 2014, valuation were based on the
results of actuarial experience studies. The experience study in TMRS was for the period
January 1, 2006 through December 31, 2009, first used in the December 31, 2010
valuation. Healthy post-retirement mortality rates and annuity purchase rates were
updated based on a Mortality Experience Investigation Study covering 2009 through
2011, and dated December 31, 2013. These assumptions were first used in the
December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN)
actuarial cost method. Assumptions are reviewed annually. No additional changes were
made for the 2014 valuation.
The long-term expected rate of return on pension plan investments is 7.0%. The pension
plan’s policy in regard to the allocation of invested assets is established and may be
amended by the TMRS Board of Trustees. Plan assets are managed on a total return
basis with an emphasis on both capital appreciation as well as the production of income,
in order to satisfy the short-term and long-term funding needs of TMRS.
This rate was determined using a building-block method in which best estimate ranges
of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding
expected inflation. The target allocation and best estimates of arithmetic real rates of
return for each major asset class are summarized in the following table:
Long-Term Expected Real
Asset Class Target Allocation Rate of Return (Arithmetic)
Domestic Equity 17.5%4.80%
International Equity 17.5%6.05%
Core Fixed Income 30.0%1.50%
Non-Core Fixed Income 10.0%3.50%
Real Return 5.0%1.75%
Real Estate 10.0%5.25%
Absolute Return 5.0%4.25%
Private Equity 5.0%8.50%
Total 100.0%
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
66
NOTE 11. DEFINED BENEFIT PENSION PLAN – TMRS – CONTINUED
Discount Rate
The discount rate used to measure the Total Pension Liability was 7.0%. The projection
of cash flows used to determine the discount rate assumed that employee and employer
contributions will be made at the rates specified in statute. Based on that assumption,
the pension plan’s Fiduciary Net Position was projected to be available to make all
projected future benefit payments of current active and inactive employees. Therefore,
the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the Total Pension Liability.
Allocations
The Town’s net pension liability, pension expense, and deferred outflows of resources
related to TMRS have been allocated between governmental activities and business-
type activities using a contribution-based method.
Changes in the Net Pension Liability
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balance at 12/31/2013 3,669,053$ 3,187,798$ 481,255$
Changes for the year:
Service Cost 288,923 - 288,923
Interest 264,994 - 264,994
Change of benefit terms - - -
Difference between expected and
actual experience 176,965 - 176,965
Changes of assumptions - - -
Contributions - employer - 172,064 (172,064)
Contributions - employee - 152,077 (152,077)
Net investment income - 182,430 (182,430)
Benefit payments, including refunds
of employee contributions (55,762) (55,762) -
Administrative expense (1,904) 1,904
Other changes - (127) 127
Net Changes 675,120 448,778 226,342
Balance at 12/31/14 4,344,173$ 3,636,576$ 707,597$
Increase (Decrease)
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
67
NOTE 11. DEFINED BENEFIT PENSION PLAN – TMRS – CONTINUED
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Town, calculated using the
discount rate of 7.0%, as well as what the Town’s net pension liability would be if it were
calculated using a discount rate that is 1-percentage-point lower (6.0%) or 1-percentage-
point higher (8.0%) than the current rate:
1% Decrease
1% Decrease in 1% Increase in
Discount Rate (6.0%)Discount Rate (7.0%)Discount Rate (8.0%)
Net pension liability 1,420,650$ 707,597$ 123,093$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a
separately-issued TMRS financial report. That report may be obtained on the Internet at
www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended September 30, 2015, the Town recognized pension expense of
$221,177.
At September 30, 2015, the Town reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Resources Inflows of Resources
Difference between
expected and actual
economic experience 144,686$ -$
Changes in actuarial
assumptions - -
Difference between
projected and actual
investment earnings 32,573 -
Contributions subsequent to
the measurement date 213,518
Total 390,777$ -$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
68
NOTE 11. DEFINED BENEFIT PENSION PLAN – TMRS – CONTINUED
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions – Continued
$213,518 reported as deferred outflows of resources related to pensions resulting from
contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability for the year ending September 30, 2015. Amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended
Sept. 30,
2016 253,940$
2017 40,422
2018 40,422
2019 40,422
2020 15,571
Total 390,777$
NOTE 12. DEFINED BENEFIT PENSION PLAN – TRS
Plan Description
The Academy participates in a cost-sharing multiple-employer defined benefit pension
that has a special funding situation. The plan is administered by the Teacher Retirement
System of Texas (TRS). TRS’s defined benefit pension plan is established and
administered in accordance with the Texas Constitution, Article XVI, Section 67 and
Texas Government Code, Title 8, Subtitle C. The pension trust fund is a qualified
pension trust under Section 401(a) of the Internal Revenue Code. The Texas
Legislature establishes benefits and contribution rates within the guidelines of the Texas
Constitution. The pension’s Board of Trustees does not have the authority to establish
or amend benefit terms.
All employees of public, state-supported educational institutions in Texas who are
employed for one-half or more of the standard work load and who are not exempted
from membership under Texas Government Code, Title 8, Section 822.002 are covered
by the system.
Pension Plan Fiduciary Net Position
Detailed information about the Teacher Retirement System’s fiduciary net position is
available in a separately-issued Comprehensive Annual Financial Report that includes
financial statements and required supplementary information. That report may be
obtained on the Internet at http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR;
by writing to TRS at 1000 Red River Street, Austin, TX, 78701-2698; or by calling (512)
542-6592.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
69
NOTE 12. DEFINED BENEFIT PENSION PLAN – TRS – CONTINUED
Benefits Provided
TRS provides service and disability retirement, as well as death and survivor benefits, to
eligible employees (and their beneficiaries) of public and higher education in Texas. The
pension formula is calculated using 2.3 percent (multiplier) times the average of the five
highest annual creditable salaries times years of credited service to arrive at the annual
standard annuity except for members who are grandfathered, the three highest annual
salaries are used. The normal service retirement is at age 65 with 5 years of credited
service or when the sum of the member’s age and years of credited service equals 80 or
more years.
Early retirement is at age 55 with 5 years of service credit or earlier than 55 with 30
years of service credit. There are additional provisions for early retirement if the sum of
the member’s age and years of service credit total at least 80, but the member is less
than age 60 or 62 depending on date of employment, or if the member was
grandfathered in under a previous rule. There are no automatic post-employment
benefit changes; including automatic COLAs. Ad hoc post-employment benefit changes,
including ad hoc COLAs can be granted by the Texas Legislature as noted in the Plan
description in (A) above.
Contributions
Contribution requirements are established or amended pursuant to Article 16, section 67
of the Texas Constitution which requires the Texas legislature to establish a member
contribution rate of not less than 6% of the member’s annual compensation and a state
contribution rate of not less than 6% and not more than 10% of the aggregate annual
compensation paid to members of the system during the fiscal year. Texas Government
Code section 821.006 prohibits benefit improvements, if as a result of the particular
action, the time required to amortize TRS’ unfunded actuarial liabilities would be
increased to a period that exceeds 31 years, or, if the amortization period already
exceeds 31 years, the period would be increased by such action.
Employee contribution rates are set in state statute, Texas Government Code 825.402.
Senate Bill 1458 of the 83rd Texas Legislature amended Texas Government Code
825.402 for member contributions and established employee contribution rates for fiscal
years 2014 thru 2017. It also added a 1.5% contribution for employers not paying Old
Age Survivor and Disability Insurance (OASDI) on certain employees effective for fiscal
year 2015 as discussed in Note 1 of the TRS 2014 CAFR. The 83rd Texas Leg islature,
General Appropriations Act (GAA) established the employer contribution rates for fiscal
years 2014 and 2015.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
70
NOTE 12. DEFINED BENEFIT PENSION PLAN – TRS – CONTINUED
Contributions – Continued
Contribution Rates
2014 2015
Member
6.4% 6.7%
Non-Employer Contributing Entity (State) 6.8% 6.8%
Employers 6.8% 6.8%
2014 Employer Contributions $ 18,228
2014 Member Contributions $ 320,575
2014 NECE On-behalf Contributions $ 280,876
Contributors to the plan include members, employers and the State of Texas as the only
non-employer contributing entity. The State is the employer for senior colleges, medical
schools and state agencies including TRS. In each respective role, the State contributes
to the plan in accordance with state statutes and the General Appropriations Act (GAA).
As the non-employer contributing entity for public education and junior colleges, the
State of Texas contributes to the retirement system an amount equal to the current
employer contribution rate times the aggregate annual compensation of all participating
members of the pension trust fund during that fiscal year reduced by the amounts
described below which are paid by the employers. Employers (public school, junior
college, other entities or the State of Texas as the employer for senior universities and
medical schools) are required to pay the employer contribution rate in the following
instances:
• On the portion of the member's salary that exceeds the statutory minimum for
members entitled to the statutory minimum under Section 21.402 of the Texas
Education Code.
• During a new member’s first 90 days of employment.
• When any part or all of an employee’s salary is paid by federal funding sources,
a privately sponsored source, from non-educational and general, or local funds.
• When the employing district is a public junior college or junior college district, the
employer shall contribute to the retirement system an amount equal to 50% of
the state contribution rate for certain instructional or administrative employees;
and 100% of the state contribution rate for all other employees.
In addition to the employer contributions listed above, when employing a retiree of the
Teacher Retirement System the employer shall pay both the member contribution and
the state contribution as an employment after retirement surcharge.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
71
NOTE 12. DEFINED BENEFIT PENSION PLAN – TRS – CONTINUED
Actuarial Assumptions
The total pension liability in the August 31, 2014 actuarial valuation was determined
using the following actuarial assumptions:
Valuation Date August 31, 2014
Actuarial Cost Method Individual Entry Age Normal
Amortization Method Level Percentage of Payroll, Open
Remaining Amortization Period 30 years
Asset Valuation Method 5 year Market Value
Discount Rate 8.00%
Long-term expected Investment Rate of Return* 8.00%
Salary Increases* 4.25% to 7.25%
Weighted-Average at Valuation Date 5.55%
Payroll Growth Rate 3.50%
*Includes Inflation of 3%
The actuarial methods and assumptions are primarily based on a study of actual
experience for the four year period ending August 31, 2010 and adopted on April 8,
2011. With the exception of the post-retirement mortality rates for healthy lives and a
minor change to the expected retirement age for inactive vested members stemming
from the actuarial audit performed in the summer of 2014, the assumptions and methods
are the same as used in the prior valuation. When the mortality assumptions were
adopted in 2011 they contained a significant margin for possible future mortality
improvement. As of the date of the valuation there has been a significant erosion of this
margin to the point that the margin has been eliminated. Therefore, the post-retirement
mortality rates for current and future retirees was decreased to add additional margin for
future improvement in mortality in accordance with the Actuarial Standards of Practice
No. 35.
Discount Rate
The discount rate used to measure the total pension liability was 8.0%. There was no
change in the discount rate since the previous year. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members and those
of the contributing employers and the non-employer contributing entity are made at the
statutorily required rates. Based on those assumptions, the pension plan’s fiduciary net
position was projected to be available to make all future benefit payments of current plan
members.
Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension
liability. The long-term rate of return on pension plan investments is 8%. The long-term
expected rate of return on pension plan investments was determined using a building-
block method in which best-estimates ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed
for each major asset class.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
72
NOTE 12. DEFINED BENEFIT PENSION PLAN – TRS – CONTINUED
Discount Rate – Continued
These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. Best estimates of geometric real rates of
return for each major asset class included in the Systems target asset allocation as of
August 31, 2014 are summarized below:
Long-term
Expected
Portfolio
Target Real Return Real Rate of
Asset Class Allocation Geometric Basis Return*
Global Equity
U.S.18%7.0%1.4%
Non-U.S. Developed 13%7.3%1.1%
Emerging Markets 9%8.1%0.9%
Directional Hedge Funds 4%5.4%0.2%
Private Equity 13%9.2%1.4%
Stable Value
U.S. Treasuries 11%2.9%0.3%
Absolute Return 0%4.0%0.0%
Stable Value Hedge Funds 4%5.2%0.2%
Cash 1%2.0%0.0%
Real Return
Global Inflation Linked Bonds 3%3.1%0.0%
Real Assets 16%7.3%1.5%
Energy and Natural Resources 3%8.8%0.3%
Commodities 0%3.4%0.0%
Risk Parity
Risk Parity 5%8.9%0.4%
Alpha 1.0%
Total 100.0%8.7%
* The Expected Contribution to Returns incorporates the volatility drag resulting from the
conversion between Arithmetic and Geometric mean returns.
Discount Rate Sensitivity Analysis
The following schedule shows the impact of the Net Pension Liability if the discount rate
used was 1% less than and 1% greater than the discount rate that was used (8%) in
measuring the 2014 Net Pension Liability.
1% Decrease in Discount 1% Increase in
Discount Rate (7.0%)Rate (8.0%)Discount Rate (9.0%)
Academy's proportionate share
of the TRS net pension liability 343,191$ 192,056$ 79,034$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
73
NOTE 12. DEFINED BENEFIT PENSION PLAN – TRS – CONTINUED
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At August 31, 2014, the Academy reported a liability of $192,056 for its proportionate
share of the TRS’s net pension liability. This liability reflects a reduction for State
pension support provided to the Academy. The amount recognized by the Academy as
its proportionate share of the net pension liability, the related State support, and the total
portion of the net pension liability that was associated with the Academy were as follows:
Academy’s Proportionate share of the collective net pension liability $ 192,056
State’s proportionate share that is associated with Academy 2,965,583
Total $ 3,157,639
The net pension liability was measured as of August 31, 2014 and the total pension
liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The employer’s proportion of the net pension liability was
based on the employer’s contributions to the pension plan relative to the contributions of
all employers to the plan for the period September 1, 2013 thru August 31, 2014.
At August 31, 2014 the employer’s proportion of the collective net pension liability was
0.0007190%. Since this is the first year of implementation, the Academy does not have
the proportion measured as of August 31, 2013. The Notes to the Financial Statements
for August 31, 2014 for TRS stated that the change in proportion was immaterial and,
therefore, disregarded this year.
There were no changes of assumptions or other inputs that affected measurement of the
total pension liability during the measurement period.
There were no changes of benefit terms that affected measurement of the total pension
liability during the measurement period.
There was a change in employer contribution requirements that occurred after the
measurement date of the net pension liability and the employer’s reporting date. A 1.5%
contribution for employers not paying Old Age Survivor and Disability Insurance (OASDI)
on certain employees went into law effective 09/01/2013. The amount of the expected
resultant change in the employer’s proportion cannot be determined at this time.
For the year ended August 31, 2014, the Academy recognized pension expense of
$274,163 and revenue of $274,163 for support provided by the State.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
74
NOTE 12. DEFINED BENEFIT PENSION PLAN – TRS – CONTINUED
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions – Continued
At August 31, 2014, the Academy reported its proportionate share of the TRS’s deferred
outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected
and actual economic
experience 2,970$ -$
Changes in actuarial
assumptions 12,484 -
Changes in proportionate
share (50)
Difference between projected
and actual investment
earnings - (58,700)
Contributions paid to TRS
subsequent to the
measurement date 92,325
Total 107,779$ (58,750)$
The net amounts of the employer’s balances of deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended
Aug. 31,
2016 80,249$
2017 (12,076)
2018 (12,076)
2019 (12,076)
2020 2,599
Thereafter 2,409
Total 49,029$
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
75
NOTE 13. 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 14. 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.
NOTE 15. SOLANA PUBLIC IMPROVEMENT DISTRICT
On February 24, 2014, the Town Council granted a petition by Maguire Partners-Solana
Land, LP in resolution 14-07 to authorize and provide for the creation of a public
improvement district, The Solana Public Improvement District (“the District”). The District
encompasses approximately 85 acres currently being developed as a master-planned
mixed-use development known as “Westlake Entrada” that is expected to include, among
other things, condominiums, residential villas, hotels, office, retail, commercial, institutional
and hospitality uses, and a wedding event center. The District was created in accordance
with Chapter 372 of the Texas Local Government Code.
TOWN OF WESTLAKE
NOTES TO THE FINANCI AL STATEMENTS
76
NOTE 15. SOLANA PUBLIC IMPROVEMENT DISTRICT – CONTINUED
On February 5, 2015, the Town Council approved issuance of $26,175,000 of Special
Assessment Revenue Bonds, Series 2015 related to the District. The Public Improvement
District Bonds (“The Bonds”) are special and limited obligations of the Town payable solely
from the pledged revenues and other funds comprising the Trust Estate, as and to the
extent provided in the indenture. The bonds do not give rise to a charge against the general
credit or taxing power of the Town and are payable solely from the sources identified in the
indenture. The owners of the bonds shall never have the right to demand payment thereof
out of money raised or to be raised by taxation, or out of any funds of the Town other than
the Trust Estate, as and to the extent provided in the indenture; and, no owner of the bonds
shall have the right to demand any exercise of the Town’s taxing power to pay the principal
of the bonds or the interest or redemption premium, if any, thereon. The Town shall have no
legal or moral obligation to pay the bonds out of any funds of the Town other than the Trust
Estate in accordance with the Texas Local Government Code.
The proceeds from the bond issue are to 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 special 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 Town is not, and will not be
obligated to provide any funds to finance construction of authorized improvements. All
design and construction costs of the District’s authorized public improvements will be paid
from the District assessments and from other sources of funds, if any, to the extent provided
in the Trust Indenture.
NOTE 16. CUMULATIVE EFFECT OF ADOPTION OF GASB STATEMENTS
As a result of implementation of GASB Statement No. 68, “Accounting and Financial
Reporting for Pensions – an amendment of GASB Statement No. 27”, and GASB Statement
No. 71, “Pension Transition for Contributions Made Subsequent to the Measurement Date”,
an adjustment has been made to record the Town’s net pension liability associated with
TRS as of August 31, 2014 and the Academy’s net pension liability associated with TMRS
as of December 31, 2014. As a result, beginning net position of the governmental activities
has been decreased by $530,877, the net effect of the beginning net pension liability and
deferred outflows of resources of TMRS ($313,276) and TRS ($217,601); and the beginning
net position of the utility fund has been decreased by $38,720.
NOTE 17. GOING CONCERN
The 2015 financial statements were prepared assuming the Texas Student Housing entities
will continue as going concerns. The Texas Student Housing entities’ bonds payable are
considered to be in default due to not making full principal and interest payments and,
therefore, are reported as current liabilities. This is considered an event of default by the
Trustees, which gives the bondholders the right to accelerate and demand payment of the
bonds in full. Management and the property managers are in the process of developing and
implementing plans to increase occupancy and rental rates at the properties to improve their
financial performance.
REQUIRED SUPPLEMENTARY INFORMATION
EXHIBIT B-1
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL – GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
77
Variance
Favorable
Orginal Amended Actual (Unfavorable)
REVENUES:
Taxes
Sales 3,376,250$ 3,575,000$ 3,587,323$ 12,323$
Property 1,209,094 1,248,094 1,256,796 8,702
Mixed beverages 50,500 50,500 59,184 8,684
Franchise 795,383 809,270 963,040 153,770
Interest income 10,420 10,420 10,078 (342)
Building permits and fees 1,460,500 1,561,350 1,200,790 (360,560)
Fines and penalties 670,000 690,000 734,152 44,152
Intergovernmental - - 3,810 3,810
Contributions - 167,541 10,000 (157,541)
Miscellaneous 60,094 73,344 81,539 8,195
Total revenues 7,632,241 8,185,519 7,906,712 (278,807)
EXPENDITURES:
Current
General government 3,054,661 3,147,116 2,411,239 735,877
Public safety 2,456,719 2,648,274 2,490,551 157,723
Cultural and recreation 224,602 213,415 130,322 83,093
Public works 794,038 751,018 744,028 6,990
Capital outlay 745,000 877,541 748,297 129,244
Debt service
Principal retirement 18,339 36,678 48,237 (11,559)
Total expenditures 7,293,359 7,674,042 6,572,674 1,101,368
Excess of revenues over expenditures 338,882 511,477 1,334,038 822,561
OTHER FINANCING SOURCES (USES)
Transfers in 306,965 700,298 521,320 (178,978)
Transfers out (2,301,612) (2,009,410) (2,290,385) (280,975)
Insurance proceeds - 291,005 162,059 (128,946)
Net other financing sources (uses)(1,994,647) (1,018,107) (1,607,006) (588,899)
NET CHANGE IN FUND BALANCE (1,655,765) (506,629) (272,968) 233,661
FUND BALANCE AT BEGINNING OF YEAR 7,953,518 7,953,518 7,953,518 -
FUND BALANCE AT END OF YEAR 6,297,753$ 7,446,889$ 7,680,550$ 233,661$
General Fund
Budgeted Amounts
EXHIBIT B-2
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL – WESTLAKE ACADEMY
FOR THE YEAR ENDED SEPTEMBER 30, 2015
78
Variance
Favorable
Orginal Final Actual (Unfavorable)
REVENUES:
State program revenues 5,782,092$ 6,070,659$ 6,173,418$ 102,759$
Federal program revenues 73,896 162,270 87,797 (74,473)
Interest income 1,515 1,575 2,067 492
Miscellaneous 1,409,790 1,536,215 1,971,097 434,882
Total revenues 7,267,293 7,770,719 8,234,379 463,660
EXPENDITURES:
Education 7,756,046 7,948,314 7,938,501 9,813
Interest and other fiscal charges 90,565 90,565 10,204 80,361
Total expenditures 7,846,611 8,038,879 7,948,705 90,174
Excess (deficiency) of revenues over expenditures (579,318) (268,160) 285,674 553,834
OTHER FINANCING SOURCES
Transfers in 300,000 300,000 300,000 -
Capital lease proceeds - - 16,740 16,740
Total other financing sources 300,000 300,000 316,740 16,740
NET CHANGE IN FUND BALANCE (279,318) 31,840 602,414 570,574
FUND BALANCE AT BEGINNING OF YEAR 1,071,298 1,071,298 1,071,298 -
FUND BALANCE AT END OF YEAR 791,980$ 1,103,138$ 1,673,712$ 570,574$
Westlake Academy
Budgeted Amounts
TOWN OF WESTLAKE
NOTES TO BUDGETARY COMPARISON SCHEDULES
79
Budgetary Information -The Town follows these procedures annually in establishing the
budgetary data reflected in the budgetary comparison schedules:
1. 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 debt service of the General Fund.
EXHIBIT B-3
TOWN OF WESTLAKE
SCHEDULE OF NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2015
80
2015
Total Pension Liability:
Service cost 288,923$
Interest 264,994
Change in benefit terms -
Difference between expected and
actual experience 176,965
Change in assumptions -
Benefit payments (55,762)
Net change in total pension liability 675,120
Total Pension Liability-beginning 3,669,053
Total Pension Liability-ending 4,344,173
Plan Fiduciary Net Position
Contributions - employer 172,064
Contributions - nonemployer 152,077
Net investment income 182,430
Benefit payments (55,762)
Administrative income (1,904)
Other (127)
Net change in plan fiduciary net position 448,778
Plan fiduciary net position -beginning 3,187,798
Plan fiduciary net position - ending 3,636,576
Town's net pension liability -ending 707,597$
Plan fiduciary net position as a %
of total pension liability 83.71%
Covered payroll 2,172,525$
Town's net pension liability as a %
of employee payroll 32.57%
EXHIBIT B-4
TOWN OF WESTLAKE
SCHEDULE OF CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2014
81
2015
Actuarially Determined Contributions 277,651$
Contributions in relation to the actuarially
determined contributions (277,651)
Contribution deficiency (excess)-$
Covered employee payroll 2,778,776
Contributions as a percentage
of covered employee payroll 9.99%
TOWN OF WESTLAKE
NOTES TO TEXAS MUNICIPAL RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY
INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
82
VALUATION DATE:
Actuarial determined contribution rates are calculated as of December 31 each year and
become effective in January, 12 months and one day later.
METHODS AND ASSUMPTIONS USED TO DETERMINE CONTRIBUTION RATES:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 30 years
Asset Valuation Method 10 Year smoothed market; 15% soft corridor
Inflation 3.00%
Salary Increases 3.50% to 12.00% including inflation
Investment Rate of Return 7.00%
Retirement Age Experience-based table of rates that are specific to
the City's plan of benefits. Last updated for the 2010
valuation pursuant to an experience study of the
period 2005 - 2009
Mortality
RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and
female rates multiplied by 103% and projected on a
fully generational basis with scale BB
TOWN OF WESTLAKE EXHIBIT B-5
SCHEDULE OF ACADEMY’S PROPORTIONATE SHARE
OF NET PENSION LIABILITY – TEACHER RETIREMENT SYSTEM
FOR THE YEAR ENDED AUGUST 31, 2015
83
2015
Academy's proportion of the net pension liability 0.0007190%
Academy's proportionate share of net pension liability 192,056$
State's proportionate share of net pension liability
associated with the Westlake Academy 2,965,583
Total 3,157,639$
Academy's covered payroll 4,300,931$
Academy's proportionate share of net pension liability
as a percentage of its covered payroll 4.47%
Plan fiduciary net position as a
percentage of total pension liability 83.25%
EXHIBIT B-6
TOWN OF WESTLAKE
SCHEDULE OF CONTRIBUTIONS
TEACHER RETIREMENT SYSTEM
FOR THE YEAR ENDED AUGUST 31, 2015
(UNAUDITED)
84
2015
Statutorially required contributions 92,325$
Actual contributions in relation to
statutorially required contributions 92,325
Contribution deficiency (excess)-$
Academy's covered payroll 4,784,694$
Contributions as a percentage
of Academy's covered payroll 1.93%
TOWN OF WESTLAKE
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
TOWN OF WESTLAKE EXHIBIT C-1
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL – DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
85
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES:
Taxes
Property 166,969$ 176,500$ 176,121$ (379)$
Total revenues 166,969 176,500 176,121 (379)
EXPENDITURES:
Debt service
Principal retirement 1,245,550 1,050,550 1,050,550 -
Interest and other fiscal charges 1,049,108 963,828 963,425 403
Total expenditures 2,294,658 2,014,378 2,013,975 403
Deficiency of revenues under expenditures (2,127,689) (1,837,878) (1,837,854) 24
OTHER FINANCING SOURCES (USES)
Transfers in 2,139,554 1,859,274 1,857,689 (1,585)
Net other financing sources (uses)2,139,554 1,859,274 1,857,689 (1,585)
NET CHANGE IN FUND BALANCE 11,865 21,396 19,835 (1,561)
FUND BALANCE AT BEGINNING OF YEAR 1,081 1,081 1,081 -
FUND BALANCE AT END OF YEAR 12,946$ 22,477$ 20,916$ (1,561)$
Debt Service Fund
Budgeted Amounts
TOWN OF WESTLAKE
NONMAJOR GOVERNMENTAL FUNDS
86
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.
EXHIBIT C-2
TOWN OF WESTLAKE
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
87
Visitors
Association
Lone Star
Public
Facilities
Corporation
Fund
Economic
Development
Fund
4B Economic
Development
Corporation
Fund
Total
Nonmajor
Governmental
Funds
ASSETS
Cash and cash equivalents 1,050,718$ 13,632$ 5,806$ -$ 1,070,156$
Receivables: (net of allowances for uncollectibles)
Accounts receivable 68,127 - 32,674 164,147 264,948
Other assets 1,874 - - - 1,874
Total assets 1,120,719$ 13,632$ 38,480$ 164,147$ 1,336,978$
LIABILITIES AND FUND BALANCES
Accounts payable 36,736$ -$ 38,480$ -$ 75,216$
Unearned revenue 1,100 - - - 1,100
Due to other funds - - - 164,147 164,147
Total liabilities 37,836 - 38,480 164,147 240,463
FUND BALANCES
Nonspendable:
Prepaid items 1,874 - - - 1,874
Restricted for:
Tourism 1,081,009 - - - 1,081,009
Future projects - 13,632 - - 13,632
Total fund balances 1,082,883 13,632 - - 1,096,515
Total liabilities and fund balances 1,120,719$ 13,632$ 38,480$ 164,147$ 1,336,978$
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, 2015
88
Visitors
Association
Lone Star
Public
Facilities
Corporation
Fund
Economic
Development
Fund
4B Economic
Development
Corporation
Fund
Total Nonmajor
Governmental
Funds
REVENUES
Sales -$ -$ 106,748$ 1,231,357$ 1,338,105$
Hotel occupancy 807,179 - 65,000 - 872,179
Interest income 1,698 21 - 384 2,103
Contributions 6,750 - - - 6,750
Miscellaneous 4,745 - 410,000 - 414,745
Total revenues 820,372 21 581,748 1,231,741 2,633,882
EXPENDITURES
Current:
Economic development - 9 171,748 - 171,757
Visitor services 670,157 - - - 670,157
Debt service
Principal retirement - - 31,975 - 31,975
Interest and other fiscal charges - - 3,783 - 3,783
Total expenditures 670,157 9 207,506 - 877,672
Excess of revenues
over expenditures 150,215 12 374,242 1,231,741 1,756,210
OTHER FINANCING SOURCES (USES)
Transfers in - - 35,758 - 35,758
Transfers out (177,670) - (410,000) (1,231,741) (1,819,411)
Total other financing
sources (uses)(177,670) - (374,242) (1,231,741) (1,783,653)
Net change in fund balances (27,455) 12 - - (27,443)
Fund balances, October 1 1,110,338 13,620 - - 1,123,958
Fund balances, September 30 1,082,883$ 13,632$ -$ -$ 1,096,515$
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, 2015
89
Variance
Favorable
Orginal Amended Actual (Unfavorable)
REVENUES:
Taxes
Hotel occupancy 707,000$ 805,000$ 807,179$ 2,179$
Interest income 2,900 2,900 1,698 (1,202)
Contributions 6,810 8,110 6,750 (1,360)
Miscellaneous 11,840 12,490 4,745 (7,745)
Total revenues 728,550 828,500 820,372 (8,128)
EXPENDITURES:
Visitor services 706,924 666,804 670,157 (3,353)
Total expenditures 706,924 666,804 670,157 (3,353)
Excess of revenues over expenditures 21,626 161,696 150,215 (11,481)
OTHER FINANCING USES
Transfers out (177,670) (177,670) (177,670) -
Total other financing uses (177,670) (177,670) (177,670) -
NET CHANGE IN FUND BALANCE (156,044) (15,974) (27,455) (11,481)
FUND BALANCE AT BEGINNING OF YEAR 1,110,338 1,110,338 1,110,338 -
FUND BALANCE AT END OF YEAR $954,294 $1,094,364 $1,082,883 $(11,481)
Visitors Association Fund
Budgeted Amounts
EXHIBIT C-5
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL – LONE STAR PUBLIC FACILITIES CORPORATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
90
Variance
Favorable
Orginal Amended Actual (Unfavorable)
REVENUES:
Interest income 45$ 45$ 21$ (24)$
Total revenues 45 45 21 (24)
EXPENDITURES:
Economic development - - 9 9
Total expenditures - - 9 9
NET CHANGE IN FUND BALANCE 45 45 12 (33)
FUND BALANCE AT BEGINNING OF YEAR 13,620 13,620 13,620 -
FUND BALANCE AT END OF YEAR $13,665 $13,665 $13,632 $(33)
Lone Star Public Facilities Corporation
Budgeted Amounts
EXHIBIT C-6
TOWN OF WESTLAKE
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL – ECONOMIC DEVELOPMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
91
Variance
Favorable
Orginal Amended Actual (Unfavorable)
REVENUES:
Taxes
Sales 100,000$ 100,000$ 106,748$ 6,748$
Hotel occupancy 70,000 85,000 65,000 (20,000)
Miscellaneous 440,000 410,000 410,000 -
Total revenues 610,000 595,000 581,748 (13,252)
EXPENDITURES:
Economic development 170,000 185,000 171,748 13,252
Debt service
Principal retirement 5,521 5,521 31,975 (26,454)
Interest and other fiscal charges 30,237 30,237 3,783 26,454
Total expenditures 205,758 220,758 207,506 13,252
Excess of revenues over expenditures 404,242 374,242 374,242 -
OTHER FINANCING SOURCES (USES)
Transfers in 35,758 35,758 35,758 -
Transfers out (440,000) (410,000) (410,000) -
Total other financing sources (uses)(404,242) (374,242) (374,242) -
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCE AT BEGINNING OF YEAR - - - -
FUND BALANCE AT END OF YEAR -$ -$ -$ -$
Economic Development Fund
Budgeted Amounts
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, 2015
92
Variance
Favorable
Orginal Amended Actual (Unfavorable)
REVENUES:
Taxes
Sales 1,158,750$ 1,225,000$ 1,231,357$ 6,357$
Interest income 500 500 384 (116)
Total revenues 1,159,250 1,225,500 1,231,741 6,241
EXPENDITURES:
Economic development - - - -
Total expenditures - - - -
Excess of revenues over expenditures 1,159,250 1,225,500 1,231,741 6,241
OTHER FINANCING USES
Transfers out (1,159,250) (1,225,500) (1,231,741) (6,241)
Total other financing uses (1,159,250) (1,225,500) (1,231,741) (6,241)
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCE AT BEGINNING OF YEAR - - - -
FUND BALANCE AT END OF YEAR -$ -$ -$ -$
4B Economic Development Corporation
Budgeted Amounts
TOWN OF WESTLAKE
STATISTICAL SECTION
STATISTICAL SECTION
(UNAUDITED)
93
This part of the Town of Westlake, T exas' 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 Page
Financial Trends
94-99
Revenue Capacity
100-104
Debt Capacity
105-107
Demographic and Economic Information
108-109
Operating Information
110-112
Sources:Unless otherwise noted, the information in these
schedules is derived from annual financial
reports for the relevant year.
These schedules offer demographic and economic indicators
to help the reader understand the environment within which
the Town's financial activities take place.
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.
These schedules contain trend information to help the reader
understand how the Town's financial performance and well-
being have changed over time.
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.
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.
EXHIBIT S-1
TOWN OF WESTLAKE
NET POSITION BY COMPONENT
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING – UNAUDITED)
94
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Governmental activities:
Invested in capital assets, net of related debt 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$ 29,633,298$
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 17,827,177
Unrestricted 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)( 7,108,101
Total governmental activities net position 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$ 54,568,576$
Business-type activities:
Invested in capital assets, net of related debt 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$ 6,410,547$
Unrestricted 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)( 2,608,315)(
Total business-type activities net position 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$ 3,802,232$
Primary government:
Invested in capital assets, net of related debt 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$ 36,043,845$
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 17,827,177
Unrestricted 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) 4,499,786
Total primary government net position 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$ 58,370,808$
Source:Annual financial reports
Fiscal Year
EXHIBIT S-2 (CONTINUED)
TOWN OF WESTLAKE
CHANGES IN NET POSITION
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING – UNAUDITED)
95
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EXPENSES
Governmental activities:
General government 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$ 3,145,716$
Public Safety 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 2,381,437
Cultural and Recreation 91,444 86,560 129,641 115,770 105,997 122,400 111,765 113,924 123,541 129,970
Public Works 613,956 455,481 1,013,804 1,028,934 594,705 470,054 216,901 267,973 955,794 1,081,996
Economic Development 35,759 120,753 473,451 207,044 309,653 680,823 546,039 626,423 147,680 171,757
Visitor Services 393,115 217,992 312,777 341,270 420,270 356,365 475,719 521,521 493,087 665,936
Education 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 8,598,261
Interest on long-term debt 1,021,779 869,327 991,184 1,068,935 1,026,026 1,127,913 897,573 1,031,328 998,951 1,022,201
Total governmental activities expenses 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 17,197,274
Business-type activities:
Water and Sewer 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 4,861,529
Cemetery - - 13,299 473 27,822 5,604 6,282 5,328 7,121 7,297
Total business-type activities expenses 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 4,868,826
Total primary government program expense 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$ 22,066,100$
PROGRAM REVENUES
Governmental activities:
Fees, fines, and charges for services:
General Government 742,176$ 785,771$ 522,215$ 677,948$ 716,624$ 721,157$ 673,090$ 774,909$ 33,975$ 110,778$
Public Safety 136,870 165,255 113,755 107,634 80,665 140,600 142,402 182,154 848,772 887,919
Public Works 699,753 625,340 902,875 594,338 1,597,655 292,572 407,328 659,246 1,022,769 936,245
Education 98,357 85,925 42,839 98,314 102,406 99,638 195,059 182,220 222,270 531,090
Operating grants and contributions 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 7,615,653
Capital grants and contributions 1,455,626 - - 2,059,624 83,250 425,900 - 5,897,456 80,472 19,983,078
Total governmental activities program reven 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 30,064,763
Business-type activities:
Charges for services:
Water and Sewer 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 3,549,775
Cemetery 2,100 - 5,550 13,300 4,500 5,510 7,749 13,620
Operating grants and contributions 19,653 - - - 46,810 - 24,423 - - -
Capital grants and contributions - - 169,034 - - - - - - -
Total business-type activities program reven 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 3,563,395
Total primary government program revenue 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$ 33,628,158$
Fiscal Year
EXHIBIT S-2 (CONCLUDED)
TOWN OF WESTLAKE
CHANGES IN NET POSITION
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING – UNAUDITED)
96
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
NET (EXPENSE) REVENUES
Governmental activities 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)$( 12,867,489$
Business-type activities 275,940)( 549,432)( 215,624)( 349,644)( 441,627)( 292,329 140,983)( 198,952)( 260,807)( 1,305,431)(
Total primary government net expense 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)( 11,562,058
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Taxes
Sales 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$ 4,925,428$
Property 1,260,112 1,441,238 1,366,633 1,367,069 1,438,969
Hotel Occupancy 415,544 458,471 527,662 497,769 457,693 527,261 590,853 709,578 796,481 872,179
Mixed Beverage 13,674 14,066 16,177 17,869 17,902 19,721 38,286 39,727 51,602 59,184
Franchise 457,004 560,312 649,108 624,401 603,233 586,836 664,991 734,935 795,322 963,040
Unrestricted grants and contributions 1,822,200 2,259,643 2,500,817 2,960,590 3,484,141 3,744,757 - - - -
Investment earnings 98,824 261,622 188,459 61,224 38,383 46,248 33,353 24,218 26,713 28,904
Miscellaneous 448,827 466,654 564,973 568,782 676,638 691,345 1,112,858 1,023,149 246,633 198,199
Transfers 45,319 33,976 220,819 61,321 - 145,216 45,507 485,591)( 43,399 323,100
Extraordinary item 56,704 124,346)( - - -
Special item - 67,760 - - -
Gain on sale of capital assets - - - - - 7,000 - - - -
Total governmental activities 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 8,809,003
Business-type activities:
Investment earnings 25,604 46,158 32,103 7,858 8,334 9,929 10,077 6,552 7,114 7,083
Miscellaneous 56,025 36,936 44,071 77,266 60,070 145,666 84,780 224,995 - -
Transfers 45,319)( 33,976)( 220,819)( 61,321)( - 145,216)( 45,507)( 485,591 43,399)( 323,100)(
Total business-type activities 36,310 49,118 144,645)( 23,803 68,404 10,379 49,350 717,138 36,285)( 316,017)(
Total primary government 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 8,492,986
CHANGE IN NET POSITION
Governmental activities 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 21,676,492
Business-type activities 239,630)( 500,314)( 360,269)( 325,841)( 373,223)( 302,708 91,633)( 518,186 297,092)( 1,621,448)(
Total primary government 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$ 20,055,044$
Source: Annual financial reports
Fiscal Year
EXHIBIT S-3
TOWN OF WESTLAKE
FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING – UNAUDITED)
97
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General fund
Reserved 434,375$ 563,176$ 303,639$ 193,105$ 214,750$ -$ -$ -$ -$ -$
Unreserved 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 13,334
Restricted for:
Court security and technology 186,776 192,768 194,422 193,082 203,173
Committed for:
Future projects 219,687 49,941 74,941 80,442 80,442
Assigned for:
Future equipment 22,000 22,000 24,000 - -
Unassigned - - - - - 3,524,911 4,992,240 6,751,362 7,671,173 7,383,601
Total general fund 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$ 7,680,550$
All other governmental funds
Reserved
Special revenue funds 869,694$ 1,183,020$ 1,527,724$ 1,256,954$ 1,112,941$ -$ -$ -$ -$ -$
Unreserved, reported in:
Special revenue funds 427,720 846,214 1,666,371 1,933,564 2,693,846 - - - - -
Nonspendable:
Prepaid items 33,511 60,963 62,635 80,118 83,359
Restricted for:
Tourism 1,109,365 1,052,546 1,025,891 1,107,520 1,081,009
Future projects 4,647,863 3,594,379 10,370,914 1,751,405 13,632
Debt service 7,505 22,657 1,482 1,081 20,916
Education 885,365 758,127 931,094 993,998 1,592,227
Economic development 267,577 178,384 - - -
Capital projects funds 102,687 102,376 3,233,471 323,009 237,177 - - - - 17,713,788
Unassigned - - - - - - - - - -
Total all other governmental funds 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$ 20,504,931$
Note:
further consideration, the 4B 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
Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon
EXHIBIT S-4 (CONTINUED)
TOWN OF WESTLAKE
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING – UNAUDITED)
98
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
REVENUES
Taxes 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 8,252,748
Licenses, fees and permits 748,016 900,121 1,108,083 860,697 1,746,954 530,646 598,394 944,735 1,175,075 1,200,790
Fines and penalties 751,036 651,090 554,376 523,515 647,170 605,705 622,338 695,167 730,441 734,152
State program revenues 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 6,173,418
Federal program revenues 75,662 49,200 75,207 56,134 199,436 337,508 152,351 81,958 80,103 87,797
Investment earnings 98,824 261,622 188,459 61,224 38,383 46,248 33,353 24,218 26,713 28,904
Contributions 4,964,085 1,079,768 1,048,308 1,264,262 533,400 - 732,535 5,916,014 82,446 18,785,953
Other revenues 547,184 552,579 607,812 673,400 779,044 980,816 1,323,237 1,274,826 1,665,003 2,471,191
Total revenues 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 37,734,953
EXPENDITURES
General government 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 2,411,239
Public safety 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 2,490,551
Cultural and recreation 91,444 86,560 129,641 115,770 105,997 122,400 111,765 113,924 123,541 130,322
Public works 434,716 276,789 846,604 841,822 333,831 326,749 391,115 532,675 615,781 744,028
Economic development 35,759 141,197 495,071 229,907 401,879 706,391 243,939 296,565 147,685 171,757
Visitor services 393,115 226,992 312,777 341,270 420,270 356,365 475,719 521,521 493,082 670,157
Education 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 7,938,501
Capital Outlay 371,860 836,787 463,918 4,335,114 682,103 1,023,772 1,110,476 7,601,631 9,964,047 5,274,282
Capital Project
Debt service
Principal 350,000 470,000 395,000 593,937 563,703 555,000 668,000 2,955,000 1,004,677 1,130,762
Interest and other fiscal charges 1,028,634 1,240,950 923,944 990,641 977,163 1,083,377 952,027 830,425 1,116,489 977,412
Bond issuance cost - - 33,000 - - 36,446 148,891 185,699 69,283 -
Total expenditures 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 21,939,011
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES 2,681,316$ 109,374$ 886,609$ 3,174,426)$( 1,598,110$ 775,711$ 173,531)$( 1,818,583)$( 8,309,182)$( 15,795,942$
EXHIBIT S-4 (CONCLUDED)
TOWN OF WESTLAKE
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING – UNAUDITED)
99
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
OTHER FINANCING
SOURCES (USES):
Proceeds from sale of land -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
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 1,910,000.00 -
Premium on refunding bonds issued 37,723 84,598.00 -
Payments to bond escrow agent 7,088,706)( - - - - 7,650,305)( - (1,925,315) -
Proceeds from capital lease 23,000 - - - - - - 239,009 16,740
Notes payable issued 50,000 - - 401,484 162,059
Special item - 67,760 40,959 - -
Extraordinary item 56,704 124,346)( 40,959)( - -
Transfers in 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 4,617,896
Transfers out 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)(4,294,796)
Total other financing
sources (uses)45,319 433,270 2,720,819 178,961 - 2,353,920 137,812 10,331,369 753,175 501,899
Prior period adjustment 60,000 - - - - - - - - -
NET CHANGES IN
FUND BALANCES 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)$( 16,297,841$
DEBT SERVICE AS
A PERCENTAGE
OF NONCAPITAL
EXPENDITURES 15.7% 20.9% 13.6% 15.4% 15.0% 14.1% 12.5% 25.3% 14.4% 12.9%
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
EXHIBIT S-5
TOWN OF WESTLAKE
ASSESED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST FIVE FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING – UNAUDITED)
100
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
2015 1,123,354,430 139,936,507 342,248,275 921,042,662 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
Appraised Value
EXHIBIT S-6
TOWN OF WESTLAKE
PRINCIPAL PROPERTY TAX PAYERS
CURRENT AND FOUR YEARS AGO
(UNAUDITED)
101
Percentage Percentage
Taxable of Total Town Taxable of Total Town
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value
5 Village Circle Holdings LP 140,613,560$ 1 15.27% Maguire Thomas Partners, etal 116,839,380$ 1 13.31%
FMR Texas, LLC/LTD Partnership 71,938,529 2 7.81% FMR Texas, LLC/LTD Partnership 148,569,643 2 16.93%
DCLI, LLC 52,633,131 3 5.71% Maguire Partners 39,117,985 3 4.46%
Fidelity Investments Inc.26,383,422 4 2.86% Lexington TNI Westlake LP 18,249,200 4 2.08%
Marsh USA Inc 21,098,171 5 2.29% First American Leasing/Real Estate 17,636,457 5 2.01%
Lexington TNI Westlake LP 14,700,000 6 1.60% DCLI, LLC 13,234,691 6 1.51%
Corelogic Solutions LLC 14,473,635 7 1.57% Fidelity Investments 12,277,810 7 1.40%
Prince Whipple Trust 6,850,000 8 0.74% Levi Strauss & Co.8,215,271 8 0.94%
Levi Strauss & CO 5,903,735 9 0.64% Westlake Terra, LLC 7,400,002 9 0.84%
Vaquero Club, Inc.5,383,416 10 0.58% EMC Corp 6,418,484 10 0.73%
Total 359,977,599$ 39.08% Total 387,958,923$ 44.20%
CY Taxable Value 921,042,662 877,783,383
Source: Tarrant County Appraisal District
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 2014 (fiscal year 2015) is $921,042,662.
20112015
EXHIBIT S-7
TOWN OF WESTLAKE
PROPERTY TAX LEVIES AND COLLECTIONS
LAST FIVE FISCAL YEARS
(UNAUDITED)
102
Taxes Levied Adjusted Collections
Fiscal for the Adjustments Taxes Levied Percent in Subsequent Percentage
Year Fiscal Year to Levy for Fiscal Year Amount of Levy Years Amount of Levy
2011 1,409,956$ 47,560$ 1,362,396$ 1,356,050$ 99.53%5,556 1,361,606$ 99.94%
2012 1,486,968 47,220 1,439,748 1,437,908 99.87%1,437,908 99.87%
2013 1,398,777 45,297 1,353,480 1,352,097 99.90%1,352,097 99.90%
2014 1,405,819 44,761 1,361,058 1,350,639 99.23%(451) 1,350,188 99.20%
2015 1,450,674 43,948 1,406,726 1,405,148 99.89%- 1,405,148 99.89%
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
of the Levy to Date
Collected within the
Fiscal Year Total Collections
EXHIBIT S-8
TOWN OF WESTLAKE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(PER $100 OF ASSESSED VALUE)
LAST FIVE FISCAL YEARS
(UNAUDITED)
103
Operating/ Tarrant Tarrant Trophy Total
Fiscal General Debt Service Total (A)Carroll Northwest Keller Denton Tarrant County County Club Direct and
Year Fund Fund Direct ISD ISD ISD County County College Dist Hospital Dist.MUD #1 Overlapping
2011 0.15620 0.00390 0.16010 1.41500 1.37500 1.53060 0.27736 0.26400 0.13764 0.22790 0.19500 5.58259
2012 0.13835 0.01849 0.15684 1.41500 1.37500 1.54000 0.28287 0.26400 0.14897 0.22790 0.17500 5.58557
2013 0.14197 0.01487 0.15684 1.40000 1.37500 1.54000 0.28287 0.26400 0.14897 0.22790 0.13339 5.52896
2014 0.13710 0.01924 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583
2015 0.13710 0.01924 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583
Notes:Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an advalorem tax.
Overlapping rates are those of local and county governments that apply to property owners within the Town of Westlake. Not all overlapping rates apply to all
Town's property owners (e.g., the rates for the counties and school districts apply only to the proportion of the Town's property owners whose property is
located within the geographic boundaries of the county and school district)
Source:Tarrant County Appraisal District
Denton Central Appraisal District
School Districts Counties
City Direct Rates Overlapping Rates
EXHIBIT S-9
TOWN OF WESTLAKE
TAXABLE SALES BY INDUSTRY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
104
NAICS Industry Type 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
11 Agriculture, Forestry, Fishing and Hunting 31$ 67$ 182$ 210$ $ - 60$ 38$ 163$ 731$ 775$
21 Mining 2,321 - 2,109 20 400 4,260 3,050 335 15 714
22 Utilities 463,222 212,336 230,072 186,773 178,693 180,032 171,131 176,622 204,280 191,031
23 Construction 81,542 200,791 998,867 1,043,752 68,306 132,780 139,000 365,049 239,888 216,546
31-33 Manufacturing 1,120,328 360,010 371,193 430,515 386,492 402,062 526,755 295,660 375,905 234,651
42 Wholesale Trade 248,702 284,082 142,999 138,456 105,557 145,631 134,466 59,571 421,371 515,602
44-45 Retail 408,556 253,293 610,119 648,597 1,097,007 707,553 1,106,427 1,132,811 962,244 1,332,659
48-49 Transportation and Warehousing 63 491 791 556 316 1,156 3,662 1,962 3,550
51 Information 538,210 223,672 320,848 377,828 423,834 508,609 367,298 378,221 623,828 567,685
52 Financial and Insurance 10,162 343,446 107,319 68,936 87,188 73,455 27,857 75,529 505,585 295,622
53 Real Estate and Rental and Leasing 178,047 204,398 138,879 154,315 327,207 210,158 215,754 457,693 493,570 708,747
54 Professional, Scientific, and Technical Services 111,746 452,018 199,700 192,008 202,263 231,526 221,331 536,971 242,069 193,145
56 Admin and Support and Waste Mgmt & Rem Srv 245,562 45,809 127,779 22,319 39,539 65,045 39,027 110,686 103,340 50,264
61 Education Services 895 317 282 2,980 619,228 1,675,351 356,689 373,117 153,279 201,761
62 Health Care and Social Assistance 10 - 238 - 170 106 251 11,018 2,887
71 Arts, Entertainment and Recreation 49,474 224,101 199,876 174,485 158,996 206,050 204,456 184,687 191,343 189,027
72 Accommodation and Food Services 34,021 57,084 130,923 140,344 140,996 175,938 93,123 204,044 221,061 246,755
81 Other Services (except Public Administration)130,476 130,392 18,576 1,756 4,462 4,632 9,805 13,156 17,412 8,965
92 Public Administration 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$ 4,960,386$
Town direct sales tax rate 2.00% 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.
Source:Texas State Comptroller reports
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
Fiscal Year
EXHIBIT S-10
TOWN OF WESTLAKE
RATIOS OF GENERAL BONDED DEBT OUSTANDING
LAST TEN FISCAL YEARS
105
Percentage
General Certificates of Actual
Fiscal Obligation of Taxable Per
Year Bonds Obligation Total Sales Capita
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
2015 17,480,000 10,752,000 28,232,000 11.46% 23,527
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 2002.
See Table 13 for personal income and population data.
General Bonded Debt Outstanding
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
ai
l
l
i
o
n
s
Deneral hbligation .onds Certificates of hbligation
EXHIBIT S-11
TOWN OF WESTLAKE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
106
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
2015 17,480,000 9,759,250 154,347 357,041 5,226,294 992,750 33,969,682 20%28,308
Note:
See Table 13 for personal income and population data.
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.
Governmental Activities
Business-Type
Activities
EXHIBIT S-12
TOWN OF WESTLAKE
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2015
(UNAUDITED)
107
Amount of
Debt Outstanding As of Percent (1)Amount
Carroll ISD 216,607,746$ 9/30/2015 5.67%12,281,659$
Denton County 634,275,000 9/30/2015 0.02%126,855
Keller ISD 771,227,959 9/30/2015 4.56%35,167,995
Northwest ISD 765,546,815 9/30/2015 1.37%10,487,991
Tarrant County 333,795,000 9/30/2015 0.78%2,603,601
Tarrant County College District - 9/30/2015 0.78%-
Tarrant County Hospital District 23,440,000 9/30/2015 0.78%182,832
Trophy Club MUD#1 10,845,000 9/30/2015 18.76%2,034,522
Total Overlapping Debt 62,885,455
Town of Westlake Outstanding Debt 35,299,475
Total Direct & Overlapping Debt 98,184,930$
Source: Texas Municipal Report prepared by employees of the Municipal Advisory Council of Texas ("MAC")
Note:
(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.
Overlapping
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.
Taxing Body
EXHIBIT S-13
TOWN OF WESTLAKE
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
108
Per Capita Tarrant County
Calendar Estimated Personal Personal Unemployment
Year Population 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%
2015 1,200 165,871,904 138,227 4.0%
Sources:
American Community Survey (ACS)
USA.com - Per Capita Income source
North Central Texas Council of Governments/US Census 2010
Tarrant County Unemployment Rate information taken from Texas Workforce Commission.
Population for 2000 is from the 2000 census. Fiscal Years 2001 through 2003 are estimated. The Town took over the
utility 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.
303 328 355
698 703 785 803 847 992 1062.72 1108.64 1184.08
0
200
400
600
800
1000
1200
1400
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
9stimated topulation
EXHIBIT S-14
TOWN OF WESTLAKE
PRINCIPAL EMPLOYERS
CURRENT AND EIGHT YEARS AGO
(UNAUDITED)
109
2007
Percentage Percentage
of Estimated of Estimated
Total Town Total Town
Employer Employees Employment Employer Employees Employment
Fidelity Investments 5,843 51.51% Fidelity Investments 3,100 37.15%
Core Logic 1,790 15.78% First American/Core Logic 3,000 35.95%
Wells Fargo 617 5.44% Chrysler Financial/TD Auto Finance 325 3.89%
Deloitte 460 4.06% Wells Fargo 790 9.47%
TD Auto Finance 390 3.44% McKesson Corporation 215 2.58%
Sabre JLL Facilities 317 2.79% Sonitrol/World Factory 165 1.98%
First American Title 262 2.31% Walco 150 1.80%
Verizon Wireless 412 3.63% Vaquero Club 140 1.68%
Travelocity 200 1.76% Marriott Solana Hotel 120 1.44%
Sount Physicians 170 1.50% Pfizer, Inc.115 1.38%
Vaquero Country Club 123 1.08% Town of Westlake/Westlake Academy 73 0.87%
Marriott Solana Hotel 108 0.95% Premier Academy 34 0.41%
Westlake Academy 94 0.83% Solara Healthcare 28 0.34%
Total 10,786 95% Total 8,255 99%
Note: Information on the Principal Employers from 1999 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 comp
Source: Cushman &Wakefield tenant records and contact with employers of the Town
2015
EXHIBIT S-15
TOWN OF WESTLAKE
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
110
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General government
Town manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Assistant Town Manager 0.75 0.90 1.00
Assistant to Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 0.75 0.00 0.00 0.00
Administrative 0.50 0.00 0.00 0.75 0.50 0.75 0.75 1.00 0.50 0.50
Building official 1.00 1.00 1.00 1.33 1.33 1.33 1.33 1.50 1.66 1.66
Town secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.25
Facilities/Grounds maintenance 0.50 0.50 0.75 1.08 1.08 1.08 0.83 1.00 1.09 1.34
Municipal 3.75 4.00 4.00 4.25 4.50 4.50 3.75 4.75 5.10 5.00
Finance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 4.00
Payroll/Human Resources 0.00 0.00 1.00 1.33 1.33 1.33 1.33 2.00 2.00 2.00
Information Technology 1.00 1.00
Public safety (EMS)11.00 11.00 11.00 9.00 9.00 9.00 9.00 10.00 13.25 14.25
Culture and recreation 0.50 0.50 0.75 0.75 0.75 0.75 0.50 0.75 0.84 0.84
Public works 1.00 1.00 1.50 1.50 1.50 1.50 2.00 3.00 2.66 2.66
Marketing and public affairs 1.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 2.00 2.00
Education 32.40 36.40 43.00 48.10 55.62 59.44 67.48 76.18 91.18 93.65
Total 57.65 60.40 69.00 74.09 81.61 85.68 93.72 106.93 128.18 132.15
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-16
TOWN OF WESTLAKE
OPERATING INDICATORS
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
111
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General government
Permits issued 194 162 93 61 44 70 85 132 144 159
Permit values 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$ 80,011,354$
Police (Contract with Keller PD)
Motor vehicle stops 8,992 10,045 10,357 9,247 9,763 9,829 12,221 9,993 9,579 10,432
Traffic accident investigations 164 225 208 266 273 348 343 322 341 398
Part I crimes 30 25 26 23 19 30 39 9 15 20
DWI arrests 56 53 45 24 32 80 50 69 55 62
Fire/EMS
Fire runs 136 153 169 118 172 191 181 238 211 211
Ambulance runs 207 251 159 184 187 264 266 286 240 253
Inspections 161 96 132 15 71 71 54 96 286 261
Public Works - General
Street resurfacing (LF)7,128 5,333 - - - 3,800 30,000 - - -
Potholes repaired 20.00 0.00 20.00 10.00 5.00 36.00 6.00 2.00 6.00 20.00
Public Works - Utility
Number of water accounts 338 386 419 437 478 500 568 614 651 713
Water main breaks 3 2 4 5 6 4 4 3 1 1
Avg daily consumption MG (water)1.031 0.729 0.999 1.020 0.889 1.200 1.100 1.090 1.045 1.021
Peak daily consumption MG (water)2.677 1.978 2.060 2.740 2.460 2.540 2.600 2.480 2.690 2.770
System capacity - MG (water)1.685 1.685 1.685 1.685 1.685 1.685 1.685 1.685 2.685 2.685
Water purchased (in gallons x 000)376,264 266,158 364,764 372,933 324,843 443,222 407,305 401,457 381,482 372,838
Water sold (in gallons x 1000)338,085 246,280 340,743 313,495 290,000 385,320 376,496 357,297 347,148 360,000
Wastewater
Number of new sewer connections 211 235 240 251 254 245 292 325 350 384
Avg daily sewage treatment 0.1320 0.1370 0.124 0.101 0.063 0.163 0.136 0.151 0.208 0.166
(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)
112
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fire
Stations 1 1 1 1 1 1 1 1 1 1
Public Works - Utility
Pump station 1 1 1 1 1 1 1 1 1 1
Lift station 2 2 2 2 3 3 3 3 3 3
Telecommunications Duct Bank (LF)38,303 38,303 43,703 49,103 51,803 57,783 57,783 57,783 59,936 66,084
Telecommunications Duct Bank Manholes 95 95 104 113 122 122 122 122 122 140
Water
Water mains (LF)58,300 59,200 64,600 70,000 79,000 130,000 137,891 137,891 142,694 148,117
Fire hydrants 119 119 130 130 154 188 191 191 201 214
Storage capacity MG 1,685 1,685 1,685 1,685 1,685 1,685 1,685 1,685 2,685 2,685
Wastewater
Sanitary sewers (LF)35,000 35,000 39,300 39,300 49,900 94,000 94,000 94,000 98,964 104,373
Manholes 250 250 267 284 304 304 304 304 326 355
Public Works - Utility
Streets (miles)10.80 10.80 10.80 10.80 10.80 10.80 10.25 10.25 10.25 10.50
Highways (miles)- - - - - - - - - -
Streetlights - - - - - - - - - -
Traffic signals (school zone flashers)2 2 2 2 2 2 2 2 2 2.0
Parks and recreation
Acreage 19 19 25 25 25 25 25 25 27 27.0
Playgrounds 2 2 2 2 2 2 2 2 2 2.0
Softball/soccer field 1 1 1 1 1 1 1 1 1 1.0
Football field - - 1 1 1 1 1 1 1 1.0
Public trails (miles)2.5 3.5 3.5 3.5 3.5 5.0 5.0 5.0 7.0 8.5
Source: Various Town departments
Note: No capital asset indicators are available for the general government.
The amount of roads decreased in FY 2011-2012 due to a portion of road being dedicated to TxDot