HomeMy WebLinkAboutRes 12-05 Approving the Comprehensive Annual Financial Report Year Ending September 30, 2011TOWN OF WESTLAKE
RESOLUTION NO. 12-05
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE,
TEXAS, ACCEPTING THE ANNUAL COMPREHENSIVE ANNUAL FINANCIAL
REPORT PRESENTED BY PATTILLO, BROWN & HILL, L.L.P., CERTIFIED
PUBLIC ACCOUNTANTS, FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011.
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
WHEREAS, the firm of Pattillo, Brown & Hill, L.L.P., Certified Public Accountants,
was selected and approved by the Town Council on July 12, 2006 for a five year engagement to
include the performance of the Town of Westlake's financial audit for the year ended September
30, 2011.
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 fiscal year 2010-2011
Comprehensive Annual Financial Report from Pattillo, Brown & Hill, L.L.P., Certified Public
Accountants 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 12-05
Page 1 of 2
SECTION 4: That this resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED ON THIS 27" DAY OF FEBRUARY, 2012.
ATTEST:
Kelly Edw , Town Secretary
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Lau a Wheat, Mayor
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Resolution 12-05
Page 2 of 2
Town of Westlake, Texas
Comprehensive Annual Financial Report
For tete Fiscal Year Ended September 30, .1
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The Town of Westlake
3 Village Circle, suite #202
Westlake, Texas 76262
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TOWN OF WESTLAKE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDING
SEPTEMBER 30, 2011
Prepared by
Town of Westlake
Finance Department
3 Village Circle, Suite 202
Westlake, TX 76262
TOWN OF WESTLAKE, TEXAS
TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal........................................................................... i — vii
Certificate of Achievement........................................................................... viii
Organizational Chart ...........................................................................
ix
Principal Town Officials.......................................................................
x
FINANCIAL SECTION
Independent Auditor's Report ........................................................................................
1-2
Management's Discussion and Analysis.......................................................................
3-18
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets..................................................................................
19
Statement of Activities....................................................................................
20-21
Fund Financial Statements
Balance Sheet — Governmental Funds.............................................................
22-23
Statement of Revenues, Expenditures and Changes in
Fund Balances — Governmental Funds ......................................................
24-26
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental
Funds to the Statement of Activities.........................................................
27
Statement of Net Assets — Proprietary Funds ..................................................
28
Statement of Revenues, Expenses and Changes in
Fund Net Assets — Proprietary Funds ........................................................
29
(continued)
TOWN OF WESTLAKE, TEXAS
TABLE OF CONTENTS
(Continued)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Page
Number
FINANCIAL SECTION (Continued)
Fund Financial Statements (Continued)
Statement of Cash Flows — Proprietary Funds ........................................................ 30
Discretely Presented Component Units Financial Statements:
Discretely Presented Component Units - Combining
Statement of Net Assets......................................................... 31 -32
Discretely Presented Component Units - Combining
Statement of Activities........................................................... 33 -34
Notes to Financial Statements................................................................................. 35-71
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
GeneralFund............................................................................................. 72
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
Visitors Association Fund......................................................................... 73
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
WestlakeAcademy.................................................................................... 74
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
FM 193 8 Fund............................................................................... 75
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
Property Tax Reduction Fund ....................................................... 76
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
Vehicle/Equipment Replacement Fund ......................................... 77
(continued)
TOWN OF WESTLAKE, TEXAS
TABLE OF CONTENTS
(Continued)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Page
Number
FINANCIAL SECTION (Continued)
Required Supplementary Information (Continued)
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
Economic Development Fund ....................................................... 78
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
Lone Star Public Facility Corporation ........................................... 79
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
4B Economic Development Corporation ...................................... 80
Schedule of Funding Progress.................................................................... 81
Notes to Required Supplementary Information ............... .. .... ........... 82
Individual Fund Schedule:
Schedule of Revenues, Expenditures and Changes in
Fund Balance — Budget and Actual —
Debt Service Fund......................................................................... 83
STATISTICAL SECTION (Unaudited)
Net Assets by Component............................................................................ 84
Changesin Net Assets................................................................................. 85-86
Fund Balances — Governmental Funds ....................................................... 87
Changes in Fund Balance — Governmental Funds ...................................... 88-89
Assessed Value and Estimated Actual Value of
TaxableProperty........................................................................... 90
Principal Property Tax Payers.................................................................... 91
(continued)
TOWN OF WESTLAKE, TEXAS
TABLE OF CONTENTS
(Continued)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Page
Number
STATISTICAL SECTION (Unaudited) (Continued)
Property Tax Levies and Collections........................................................... 92
Direct and Overlapping Property Tax Rates......... ................. 93
......................
Taxable Sales by Industry Type.................................................................. 94
Ratios of General Bonded Debt Outstanding .............................................. 95
Ratios of Outstanding Debt by Type.......................................................... 96
Direct and Overlapping Governmental Activities Debt ................................ 97
Demographic and Economic Statistics....................................................... 98
PrincipalEmployers.................................................................................... 99
Full-time Equivalent Town Government Employees by
Function/Program.......................................................................... 100
Operating Indicators by Function/Program........................................................... 101
Capital Asset Statistics by Function/Program........................................................ 102
COMPLIANCE SECTION
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance With
Government Auditing Standards............................................................................. 103- 104
INTRODUCTORY SECTION
Town of Westlake
February 16, 2011
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,
2011, 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 Pattillo, Brown and Hill LLP, Independent
Certified Public Accountants. 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, 2011, 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 unqualified opinion that the Town's financial statements for the
fiscal year ended September 30, 2011, 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
3 Village Circle #202 • Westlake, Texas 76262
Metro: 817-430-0941 • Fax: 817-430-1812 • www.westlake-tx.org
i
statements, Management's Discussion and Analysis (MD&A), basic financial statements, the notes to
the basic financial statements, and combining and individual fund statements and schedules. The
MD&A is a narrative introduction, containing overview and analysis to accompany the basic
financial statements. This letter of transmittal is designed to compliment, 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
appraised home value of $1.2 million.
Town of _'
Westlake * Irs 63
35 377 VFW 75
820
3s
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3a
Dallas
F t Worth 45
of approximately 992 with an average
The Town, incorporated in 1956, is considered a Type A general -law municipality and has the power
by state statute to extend its corporate town limits by annexation, which is done periodically when
deemed appropriate by the Council. 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
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Town's governing board. Four of the members of the board of directors are members of the Town's
governing board.
Westlake Academy (Academy) is an open -enrollment charter school, as provided by Subchapter D,
Chapter 12, of the Texas Education Code. The Town of Westlake ("Charter Holder") applied for and
became the first municipality in Texas to ever receive this special charter designation. The Academy
had 520 students in FY 10-11 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 Authority -
Ballpark Austin Project, Texas Student Housing Corporation -The Ridge at North Texas Project,
Texas Student Housing Authority -Town Lake Austin Project, Texas Student Housing Authority -
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 both 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
Because the Town's primary revenue source, sales tax, experienced declines in FY 08-09 and FY 09-
10, the Town Council took the courageous step of implementing an ad valorem (property) tax in FY
10-11. Not only did this stabilize the Town's financial position (stopping the use of fund balance to
balance the annual budget), but it also positioned the Town so it could begin reinvesting in its
infrastructure. In FY 10-11 the Town's ad valorem tax allowed issuance of $2.1 million of
certificates of obligation the majority of which was invested in street and drainage projects. As the
local sales tax base improves, this will only improve the Town's financial position, and thus, its
financial stability for the long-term.
While the nation's economy is still suffering, certainly Westlake, like all communities, has challenges
ahead. However, with the steps the Town Council courageously took in FY 10-11, we are in a much
better position today than we were twelve months ago at this time in terms of the Town's financial
sustainability. It has not only improved our financial position, but most important, it now also gives
us the ability to reinvest in our Town's infrastructure and services in a prudent, responsible way that
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can ensure Westlake's vision to be a unique, one -of -a -kind community with an extraordinary quality
of life for the long-term.
Even with this improvement in our financial position, the Town staff is acutely aware that the Town
of Westlake does not create wealth, but instead only spends public dollars collected on behalf of our
citizens. We are stewards. We exist as a municipal corporation for one reason and one reason only;
to prioritize and deliver the best service possible with the resources provided to achieve an
exceptional quality of life. Below, please find the milestones and strategic priorities that were
achieved during FY 10-11:
• The three year process of constructing the $300 million Deloitte University culminated with
its opening and commencement of full operation in October 2011. This was the largest
private construction project underway in Texas at that time.
• For the third consecutive year, the Town continued its "Westlake Windows" initiative for
transparent government with citizen outreach meetings held in every Westlake neighborhood.
The initiative was expanded to Westlake Academy parents residing in the Academy's
secondary boundaries.
• The Town's Leadership Team was realigned to create a full-time Director of Communications
& Community Affairs position. This was accomplished by adjusting existing positions (i.e.
no new positions were created) to bring even more focus to the function of outreach and
communication.
• Work began on revamping the Town's Five (5) Year Strategic Plan and tying it to a Balanced
Scorecard, outcome measures, and program budgeting as well as reviewing and updating the
Town's vision, mission, and value statements. In conjunction, the Town conducted its third
annual Direction Finders citizens' survey for comparison to prior years' surveys, establishing
multi-year performance measures, as well as to help guide the adopted budget preparation
process.
• Implementation of the Town Council's approved Five (5) Year Capital Improvement Plan
(CIP) began. This CIP covers mostly street improvement projects, allowing us to re -invest in
the Town's street infrastructure on a planned basis. Perhaps most significantly, for the first
time the Town's CIP was adequately funded via a combination of cash -on -hand and debt
issuance of $2.2 million in Certificates of Obligation.
• Construction progressed on the State's $15 Million Phase 1 FM 1938 (Precinct Line Rd)
Improvement Project. This will be a major north/south arterial roadway with a positive
impact on mobility for the region, our residents, and employees of Westlake businesses. It
will also impact future business attraction and economic development in Westlake. Estimated
completion date is September 2012.
• Phase 1 of the Stagecoach Hills Water Distribution System Improvements Project was
completed.
• The Town entered into a Development Agreement with Hillwood Properties for
approximately $4.6 million in street improvements to sections of Dove and Ottinger Roads.
Improvements to portions of Ottinger Road are currently underway.
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• The Town continued to receive recognition for the transparency and high quality of its
financial reporting, receiving the Certificate of Achievement for Excellence in Financial
Reporting, as well as the Distinguished Budget Presentation Award from the Governmental
Finance Officers Association (GFOA) for both its FY 09-10 Comprehensive Annual Financial
Report (CAFR), also known as the annual audit, and the FY 10-11 budget.
• According to Town Council/Board of Trustee direction, we began a two fiscal year phased
approach of placing Westlake Academy's operating budget on a full cost basis. The first
phase, completed in FY 10-11, moved all direct operating costs for maintenance of the
campus from the municipal budget to the Academy's operating budget. The second phase,
which will be carried out in FY 11-12, will move all indirect costs associated with the
Academy from the municipal budget to the Academy budget.
• Westlake's second gas well pad site was successfully drilled in Solana under the standards
and requirements of the Town's Oil and Gas Drilling/Production Ordinance adopted in 2009.
• New retail growth began occurring along the Town's western boundary at the northwest
corner of SH170 and SH377 with construction commencing on a new Quik Trip convenience
store and a Centennial Liquors store.
• Westlake received national recognition from Forbes Magazine as the wealthiest community in
the United States, and the Dallas Morning News ran a front page story on Westlake's growth
and attraction as a high-end residential community.
• The Town's open enrollment charter school, Westlake Academy, finished its eighth year of
operation. It was a "banner year" with the Academy having its largest enrollment ever and the
second graduating class had an 86% success rate in obtaining the prestigious International
Baccalaureate diploma. The 32 member class collectively garnered approximately $4.2
million in scholarships and grants.
Sales tax collections increased by 22% for FY 10-11. Approximately 29% ($1.3M) of the total
revenues received were due to collections based on an economic development agreement, 3% from
audit collections, approximately 8% was received from presumed one-time payments and the
remaining 60% was from "base" sales tax receipts. The "base" sales tax revenues increased by
approximately 18% when compared with FY 09-10.
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Long -Term Financial Outlook
The Town of Westlake has developed a comprehensive capital improvements document as well as a
multi-year strategic plan. Such strategic planning assists both the Council and staff in establishing
priorities and allocating resources appropriately.
In addition to these tools, the Town's Finance Department also prepares annual financial forecasts.
Financial forecasts are used by the Town to identify important warning "sign posts" that should not
be ignored. The FY 09-10 and original FY 10-11 forecasts indicated we were heading into severe
financial distress. Subsequently, our Strategic Plan established financial sustainability as a priority
for the Town and Westlake Academy. However, as the Town's financial condition worsened, the
need to make hard decisions regarding key services and potential revenue sources including an ad
valorem tax became more apparent. The FY 10-11 budget established an additional revenue source
with the imposition of a property tax and in so doing, helped to secure our long-term financial
stability.
Beginning in FY 09-10, as the nation's economic recession reduced Westlake's primary revenue
source of sales tax, we began using a thematic approach to bring focus to the major issue or issues for
that particular budget. That year's budget theme was "Critical Challenges, Critical Choices",
intending to signal the need for meaningful community -wide dialogue as to how Westlake would
come to grips with its vision, as well as an associated financial future. We fostered this dialogue
using primarily meetings in every Westlake neighborhood, our electronic newsletter, email blasts,
focus group meetings, and placing extensive financial information about the Town's financial
sustainability challenges on our website.
In FY 10-11 the budget theme was "Securing the Vision". The focus of that budget's theme was to
progress from the FY 09-10 discussions, and seek viable solutions to Westlake's challenge of
becoming financially sustainable. Ultimately, this resulted in the Town Council adopting a $.16010
per $100 of assessed valuation municipal property tax rate. This is the lowest property tax rate of any
city in our area, but it stabilized the General Fund's downward fund balance trend and has allowed us
to begin dealing with our road infrastructure.
Having "Secured the Vision"... the theme for the adopted FY 11-12 budget is "Investing in Our
Future". Selection of this budget theme is intended to reflect that with the hard choices having been
made in FY 10-11, we can now use the resources available to reinvest in our community to maintain
Westlake in a manner that is fiscally conservative, responsible, and consistent with its vision,
mission, and values. To achieve this focus of "Investing in Our Future", the adopted FY 11-12
budget reflects three areas of major emphasis — investment in infrastructure, service delivery
sustainability, and service delivery quality.
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 2011-2012 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
Certificate of Achievement
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, 2010.
This was the fourth 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, the government also received their fourth GFOA Distinguished Budget Presentation
Award for its annual budget document for the fiscal year beginning October 1, 2010. In order to
qualify for the Distinguished Budget Presentation Award, the Town's budget document had to be
judged proficient as a policy document, a financial plan, an operations guide, and a communications
device.
Acknowledgements
The preparation of this report could not be accomplished without the efficient and dedicated services
of the entire staff of the Finance Department. Appreciation is expressed to Town employees
throughout the organization, especially those employees who were instrumental in the successful
completion of this report.
The staff would also like to thank the Mayor and Town Council for their conservative leadership and
their support in planning and conducting the financial operations of the Town in a responsible and
progressive manner.
Respectfully Submitted,
Tom Brymer
Town Manager
vii
Debbie Piper, CPA
Finance Director
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Westlake
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
imiam 46'%
AND
MINRAT10% President
,sa r .
Executive Director
viii
Texas Student
Housing
Executive
Director
Board Secretary
Exemplary
Governance
Town Officials, Both
Elected and
Appointed, Exhibit
Respect, Stewardship,
Vision, and
Transparency
Service
Excellence
Public Service that is
Responsive and
Professional, while
balancing Efficiency,
Effectiveness and
Financial Stewardship
Town Town
Attorney_j Manager
Administrative
25% Court
Asst to the Town I
Intern
Coordinator
Manager 75%
75%
Supervisor
Administrative
Assistants (3)
MYP/DP
Teachers
Town Secretary
Communications
Dining Hall
MYP/DP Finance
Nurse
Planning &
Development
Public Works
Deputy Clerk Part Time Clerk
Administrative
Clerk 33%
ETTechnician
Primary
Principal
Facilities
Parks &
PYP Coordinator
Maintenance
Administrative
Recreation
Academy
PYP Teachers
Clerk 33%
Technician 25%
PYP Counselor
Information
Human
:PY:PS pecial Ed.
Technology 50%
Academy
FTechnician25%
Resources 50%
Administrative
Librarian
Clerk 33%
Secondary
25% Court
Principal Fire Chief
Administrator
MYP/DP
Coordinator 2 Lieutenants 6 Firefighter
Supervisor
Paramedics
MYP/DP
Teachers
Judge CM:arshal
MYP/DP Finance
Counselors
MYP/DP Finance Assistant Finance Clerk
Special Ed
Deputy Clerk Part Time Clerk
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TOWN OF WESTLAKE
ELECTED AND APPOINTED OFFICIALS
September 30, 2011
ELECTED OFFICIALS
Mayor
LAURA WHEAT
Mayor Pro -Tem
CAROL LANGDON
Council Member
TIM BRITTAN
Council Member
CLIF COX
Council Member
DAVID LEVITAN
Council Member
RICK RENNHACK
APPOINTED OFFICIALS
TOM BRYMER
Town Manager
AMANDA DEGAN GINGER AWTRY
Assistant to the Town Manager Director of Communications and
and Court Administrator Community Affairs
DEBBIE PIPER, CPA
Finance Director
EDDIE EDWARDS
Director of Planning and
Development
JARROD GREENWOOD
Director of Public Works
KELLY EDWARDS, TRMC
Town Secretary
TODD WOOD, SPHR, IPMA-CP
Director of Human Resources
and Administrative Services
RICHARD WHITTEN
Fire Chief
TROY MEYER
Facilities/ Parks and Recreation Director
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FINANCIAL SECTION
W,= I
PATTILLO, BROWN & HILL,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor
and Town Council
Town of Westlake, Texas
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate discretely presented component units and each major fund of
the Town of Westlake, Texas (the "Town"), as of and for the year ended September 30, 2011, which
collectively comprise the Town's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Town of Westlake, Texas' management. 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 includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinions.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type activities,
the aggregate discretely presented component units and each major fund of the Town of Westlake,
Texas, as of September 30, 2011, and the respective changes in financial position and cash flows,
where applicable, thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
As described in the notes to the financial statements, the Town adopted the provisions of
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, in
2011.
1
115 SOUTH CHURCH STREET ■ HILLSBORO, TX 76645 ■ (254) 582-2583 ■ FAX: (254) 582-5731 ■ www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ TEMPLE, TX (254) 791-3460
WACO, TX (254) 772-4901 ■ ALBUQUERQUE, NM (505) 266-5904
In accordance with Government Auditing Standards, we have issued a report dated February
20, 2012, on our consideration of the Town of Westlake, Texas' internal control over financial
reporting and on our tests of 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 and should be
considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information on pages 3 through 18
and 72 through 82 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town of Westlake, Texas' financial statements as a whole. The
introductory section, individual fund budgetary analysis schedule, and statistical section are presented
for purposes of additional analysis and are not a required part of the financial statements. The
individual fund budgetary analysis schedule is the responsibility of management and was derived
from and relate directly to the underlying accounting and other records used to prepare the financial
statements. The 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 financial
statements or to the financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated in all material respects in relation to the 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 it.
Pau AAnw , �Il z t P
February 20, 2012
2
MANAGEMENT'S
DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Town of Westlake is pleased to present this overview and analysis of the financial activities of the
Town for the fiscal year ended September 30, 2011. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found in the introductory section of this report.
FINANCIAL HIGHLIGHTS
• The assets of the Town exceeded its liabilities at the close of the most recent fiscal year by
$28,577,322 (Net assets). This number must be viewed within the context that the vast
majority of the Town's net assets of $19,533,952 (68%) 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. Those net assets restricted for specific purposes totaled $7,137,362 (25%). The
remaining $1,906,008 (7%) are unrestricted net assets and may be used to meet the
government's ongoing obligations to citizens and creditors in accordance with the Town's fund
designation and fiscal policies.
• As of the close of the current fiscal year, the Town of Westlake's governmental funds reported
combined ending fund balances of $10,966,580, which is an increase of $3,129,631 in
comparison with the prior year. Within this total, $7,441,669 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 $4,015,394, an
increase of $222,409 in comparison with the prior year. Of this total fund balance, $3,524,911
is unassigned. This represents 87% of the total general fund expenditures and is equivalent to
317 operating days.
• The Town's capital assets (net of accumulated depreciation) increased by $376,833. The major
portion of this increase is attributed to the completion of the dining hall improvements at
Westlake Academy, Mahota Boone and Aspen Lane reconstruction, Stagecoach Hills water
line, purchase of traffic devices and heart monitors. Also, the contribution of the Fire station
and land were recorded as capital assets during the current year as well as construction in
progress expenses for several road and water projects that were not completed by year-end.
This amount was offset by $1,303,080 of depreciation which gave the Town a net increase.
• The Town's bonds payable increased by $1,540,000 in total, due to the issuance of Certificates
of Obligation bonds in the amount of $2,095,000 for various street projects, and offset by the
scheduled repayment of principal on outstanding bonded debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Town's basic financial
statements. The Town's basic financial statements are comprised of the following three components:
1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial
3
statements. This report also contains supplementary information in addition to the basic financial
statements themselves.
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 assets presents information on all of the Town's assets and liabilities with the
difference between the two reported as net assets. Over time, increases or decreases in the Town's net
assets serve 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 assets 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 cashflows. 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 31-34 of the "Financial Section"
for detail on these entities. In addition, the Town has the following blended component units: Lone
Star Public Facility Corporation, 4B Economic Development Corporation, and Westlake Academy, an
open enrollment charter school owned and operated by the Town of Westlake.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been
segregated for specific activities or objectives. The Town, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Below
are the three types of funds. The Town had only Governmental and Proprietary funds for the year
ended September 30, 2011.
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
F.
at the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the 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 eleven individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General, Visitors Association, Westlake Academy, Debt Service,
Capital Projects, FM 1938, Property Tax Reduction, Vehicle/Equipment Replacement, Economic
Development, Lone Star Public Facility Corporation and Westlake 4B Economic Development
Corporation funds, all of which are presented as major funds.
The Town adopts an annual appropriated budget for all funds, except the Capital Projects fund which
is a project -length based budget. 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 22-27 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 28 - 30 on this report.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial statements
because the resources of those funds are not available to support the Town's own programs. The
accounting used for fiduciary funds is similar to the accounting used for proprietary funds. The Town
of Westlake does not currently have any fiduciary funds.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes
to the financial statements can be found on pages 35 - 71 of this report.
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.
5
The schedules are presented immediately following the notes to the financial statements and can be
found on pages 72 - 83.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of the government's financial
position. In the case of the Town, assets exceeded liabilities by $28,577,322 at the close of the most
recent fiscal year.
The Town's combined net assets changed from a year ago, increasing $2,482,692 from $26,094,630 to
$28,577,322. Our analysis below focuses on the net assets (Table 1) and changes in net assets (Table
2) of the Town's governmental and business -type activities.
The largest portion of the Town's net assets, $19,533,952 (68%), 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 assets, $7,137,362 (25%), represents resources that are subject
to external or internal restrictions on how they may be used. The remaining balance of unrestricted net
assets, $1,906,008 (7%), may be used to meet the government's ongoing obligations to citizens and
creditors.
Table 1
Condensed Statement of Net Assets
At September 30, 2011
Governmental Activities
2011 2010
Assets:
Business -Type Activities
2011 2010
Total
2011 2010
Current and other assets
$ 12,449,931 $
9,253,595 $
3,401,345 $
2,166,994 $
15,851,276 $
11,420,589
Capital assets
33,665,877
33,051,736
12,455,411
12,692,719
46,121,288
45,744,455
Total Assets
46,115,808
42,305,331
15,856,756
14,859,713
61,972,564
57,165,044
Liabilities:
Long-term liabilities
outstanding
20,731,060
19,241,788
5,507,172
5,589,204
26,238,232
24,830,992
Other liabilities
2,140,365
1,999,144
5,016,645
4,240,278
7,157,010
6,239,422
Total Liabilities
22,871,425
21,240,932
10,523,817
9,829,482
33,395,242
31,070,414
Net Assets:
Invested in capital assets,
net of related debt
12,658,921
13,633,485
6,875,031
7,033,831
19,533,952
20,667,316
Restricted
7,137,362
1,564,868
-
-
7,137,362
1,564,868
Unrestricted
3,448,100
5,866,046
(1,542,092)
(2,003,600)
1,906,008
3,862,446
Total Net Assets
$ 23,244,383 $
21,064,399 $
5,332,939 $
5,030,231 $
28,577,322 $
26,094,630
31
Revenues:
Program revenues:
Fees, fines & charge
for services
Operating grants
& contributions
Capital grants
& contributions
General revenues:
Taxes
Sales taxes
Property taxes
Hotel occupancy taxes
Mixed beverage taxes
Franchise taxes
Unrestricted grants
Interest on investments
Miscellaneous
Extraordinary items
Gain on sale of capital assets
Total revenues
Expenses:
General government
Public safety
Culture and recreation
Economic development
Public works
Visitor services
Education
Interest on long-term debt
Water and sewer
Cemetery
Total expenses
Inc (Dec) in net assets
before transfers
Transfers
Change in net assets
Net assets, beginning
Net assets, ending
Table 2
Changes in Net Assets
At September 30, 2011
Governmental Activities Business -Type Activities
2011 2010 2011 2010
Total
2011 2010
$ 1,253,967 $
2,497,350 $
3,092,168 $
2,107,060 $
4,346,135$
4,604,410
728,242
853,151
-
46,810
728,242
899,961
425,900
83,250
-
-
425,900
83,250
4,609,626
3,790,533
-
-
4,609,626
3,790,533
1,260,112
-
-
-
1,260,112
-
527,261
457,693
-
-
527,261
457,693
19,721
17,902
-
-
19,721
17,902
586,836
603,233
-
-
586,836
603,233
3,744,757
3,484,141
3,744,757
3,484,141
46,248
38,383
9,929
8,334
56,177
46,717
691,345
676,638
145,666
60,070
837,011
736,708
56,704
-
-
-
56,704
-
7,000
-
-
-
7,000
-
$ 13,957,719 $
12,502,274 $
3,247,763 $
2,222,274 $
17,205,482 $
14,724,548
2,478,826
2,272,127
-
-
2,478,826
2,272,127
1,801,585
1,698,164
-
-
1,801,585
1,698,164
122,400
105,997
-
-
122,400
105,997
680,823
309,653
-
-
680,823
309,653
470,054
594,705
-
-
470,054
594,705
356,365
420,270
-
-
356,365
420,270
4,884,985
4,138,875
-
-
4,884,985
4,138,875
1,127,913
1,026,026
-
-
1,127,913
1,026,026
-
-
2,794,235
2,567,675
2,794,235
2,567,675
-
-
5,604
27,822
5,604
27,822
11,922,951
10,565,817
2,799,839
2,595,497
14,722,790
13,161,314
2,034,768
1,936,457
447,924
(373,223)
2,482,692
1,563,234
145,216
-
(145,216)
-
-
-
2,179,984
1,936,457
302,708
(373,223)
2,482,692
1,563,234
21,064,399
19,127,942
5,030,231
5,403,454
26,094,630
24,531,396
$ 23,244,383 $
21,064,399 $
5,332,939 $
5,030,231 $
28,577,322 $
26,094,630
7
Governmental activities: Governmental activities increased the Town's net assets by $2,179,984
(10%), increasing net assets from $21,064,399 to $23,244,383. Unrestricted net assets, the part of net
assets that can be used to finance day-to-day operations without constraints established by debt
covenants, enabling legislation, other legal requirements, and/or Council or management's decision,
decreased by $2,417,946 or 41% of total governmental net assets. The majority of this decrease was
due to the transfer of funds from the Property Tax Reduction fund (PTR) and the General fund (GF) to
the Capital Projects fund (CPF) for street and capital improvements which in -turn increased the
restricted amount by $5,572,494. These transfers along with bond proceeds to be used for capital
projects represent the majority of this increase.
Total revenues (including transfers) for governmental activities increased by $1,600,661 when
compared to the prior year. General revenue had an increase of $2,626,303, while program revenues
had a decrease of $1,025,642.
Program revenues —
• Charges for services decreased by $1,243,383
o Primarily due to a one time building permit and inspection/plan review fees related to
Deloitte construction
• Operating Grants and Contributions decreased by $124,909
• Capital Grants and Contributions increased by $342,650
General revenues —
• Sales tax increased by $819,093. The following components make up this increase:
o Increase in "base" sales taxes of $418,287
o Increase of $694,848 in economic development receipts
o Increase in audit collections of $74,892
o Decrease in presumed one-time payments of $368,934
• Property tax increased by $1,260,112 — represents the Town's first year to levy an ad valorem
tax
• Hotel occupancy taxes increased by $69,568 — the average daily occupancy rate has increased
by approximately 4.85%
*'Franchise tax decreased by $16,397
• Unrestricted grants increased $260,616 — due to the receiving increased state revenues for the
additional students at Westlake Academy
• Interest income increased by $7,865
• Miscellaneous increased by $14,707
• Transfers increased by $145,216 —represents the impact fees transferred from the Utility
Fund
• Extraordinary items increased by $56,704 - net effect of insurance claims and payments at
Westlake Academy
• Gain on sale of capital assets increased by $7,000 - trade in of heart monitors
Expenses —
• Total expenses for governmental activities increased by $1,357,134 or approximately 13%
• General government increased by $206,699
o General government increased by $206,699 with the $117,962 being attributed to
GASB 34 conversion entries related to depreciation, compensated absences, reclass of
non -capitalized capital outlay and $88,737 being due to the variances in the Town's
general governmental fund statements. Some of the larger variances were seen in
legislative and attorney expenditures due to the legislative session and ongoing
litigation.
• Public safety increased by $103,421
o Payroll and related - $87,204 more in the current year because the EMS/Fire
Department personnel was not completely staffed in the prior year. The department
was short by two personnel.
o Repairs and maintenance - $27,134 due to various expenditures totaling $13,552
related to the preparation and installation of the new Fire Station that was contributed
to the Town as well as equipment and vehicle repair and maintenance totaling
$14,422
• Economic development increased by $371,170
o Based on a contractual obligation reimbursement. The project had just begun in FY
09/10 and construction continued through the end of FY 10/11
• Public works decrease of $124,651
o Payroll and benefits were decreased by $97,512 due to a reclass of salaries for audit
purposes. The Town pays ALL payroll from the General Fund and has interfund
transfers in from the Utility Fund to cover the payroll expenditures. This was booked
as a contra -account for the current year but in prior years, the payroll was booked to
the respective fund.
o Contracted Landscaping for the Academy of $40,150 was transferred to the Academy
budget for FY 10/11
• Visitor services decrease of $63,905
o Additional transportation payment was made to the Marriott in the prior year
• Education increase of $746,110
o Includes expense for the addition of students and staff for Westlake Academy and the
transfer of direct costs of approximately $250,000 from the Municipal budget to the
Academy budget
• Interest on long-term debt increased by $101,887
Business -type Activities:
The net assets of our business -type activities ended fiscal year 2011 at $5,332,939 compared with
$5,030,231 in 2010. This represents an increase in net assets of $302,708, or 6% over the prior fiscal
year.
Revenues of the Town's business -type activities were $3,247,763 for the fiscal year ending September
30, 2011. Revenues increased $1,025,489 or 46% over the prior year. Operating expenses for the
business -type activities were $2,799,839 for the year, an increase of $204,342 or 8%. The resulting
increase in net assets is due to several factors, including the following:
• Increase in Charges for Services was $985,108. This 47% increase was primarily realized
because FY 10/11 was a drier year than normal resulting in increased water billing revenues
and other associated fees in addition to a utility rate increase effective 1/l/11.
• The Town's increase in expenses of $204,342 is attributed to the additional water purchases
experienced during the dry weather months.
E
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, unreserved 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 $10,966,580; an increase of $3,129,631 in comparison with the prior year.
Approximately 32% of this total ($3,524,911) 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, 2011, and the amount and
percentage of increases and decreases in relation to the prior year.
Table 3
Summary of Governmental Fund Revenues
10
Increase
Percent
2010-11
Percent
(Decrease)
Increase
Revenues
Amount
of Total
from 2009/10
(Decrease)
Taxes
$
$
Sales
4,609,626
34.3%
819,093
21.6%
Property
1,257,246
9.3%
1,257,246
100.0%
Mixed beverage
19,721
0.1%
1,819
10.2%
Hotel occupancy
527,261
3.9%
69,568
15.2%
Franchise
586,836
4.4%
(16,397)
-2.7%
Subtotal - Taxes
7,000,690
52.1%
2,131,329
43.8%
State program
3,945,658
29.3%
257,952
7.0%
Federal program
157,445
1.2%
(41,991)
-21.1%
Interest income
46,248
0.3%
7,865
20.5%
Building permits and fees
530,646
3.9%
(1,216,308)
-69.6%
Fines and penalties
605,705
4.5%
(41,465)
-6.4%
Contributions
180,063
1.3%
(353,337)
-66.2%
Miscellaneous
980,816
7.3%
201,772
25.9%
Total Revenues
$ 13,447,271
100.0%
$ 3,450,239
19.9%
10
Table 4
Summary of Governmental Fund Expenditures
Below are summaries and explanations of the reduction in fund balances from FY 2010 to FY 2011 of
the Governmental Funds that are contained in the above totals:
General Fund - Fund balance increased $222,409 (6%)
• Property tax - $1,226,689 - Initial year to levy an ad valorem tax
• Permits and Fees - ($1,226,308) - One-time payment made in prior year for Deloitte permits
and fees.
• Payroll and related - $195,477 — Increase is related to payroll insurance of $89,118, payroll
taxes of $84,740 and an additional 1% increase in salaries of $21,617
• Service expenses - $82,768 increase primarily due to legislative and attorney costs totaling
$68,581 and the new website development of $10,439
• Transfers in - $2,178,403
• Transfer in from the Utility Fund in the amount of $145,216 for impact fees
•Transfer in of $1,357,548 from Property Tax Reduction Fund to close the fund and
begin recording in the General Fund and $41,274 for General Major Maintenance
(included in General Fund for audit purposes)
o Transfer in from Vehicle and Equipment Replacement Fund to General Major
Maintenance Fund in the amount of $129,374 to close the fund and accumulate all
maintenance and replacement funds into one fund for future accounting purposes
• Various transfers totaling 5,281
• Transfers Out - $2,691,982
• Transfer to Capital Project fund in the amount of $2,085,659 as authorized by Town
Council for capital projects
• Transfer out to General Major Maintenance Fund of $500,000 to build funds for
future major maintenance projects
• Transfer out to Vehicle and Equipment Replacement Fund of $68,982 to build funds
for vehicle and equipment replacement
11
Increase
Percent
2010-11
Percent
(Decrease)
Increase
Expenditures
Amount
of Total
From 2009/10
(Decrease)
General government
$ 1,733,324
13.7% $
88,737
5.4%
Public safety
1,842,751
14.5%
207,815
12.7%
Culture and recreation
122,400
1.0%
16,403
100.0%
Public works
326,749
2.6%
(75,130)
-18.7%
Economic development
706,391
5.6%
372,560
111.6%
Visitor services
356,365
2.8%
(63,905)
-15.2%
Education
4,884,985
38.6%
746,110
18.0%
Capital outlay
1,023,772
8.1%
341,669
50.1%
Debt service
1,674,823
13.2%
133,957
8.7%
Total Expenditures
$ 12,671,560
100.0% $
1,768,216
16.2%
Below are summaries and explanations of the reduction in fund balances from FY 2010 to FY 2011 of
the Governmental Funds that are contained in the above totals:
General Fund - Fund balance increased $222,409 (6%)
• Property tax - $1,226,689 - Initial year to levy an ad valorem tax
• Permits and Fees - ($1,226,308) - One-time payment made in prior year for Deloitte permits
and fees.
• Payroll and related - $195,477 — Increase is related to payroll insurance of $89,118, payroll
taxes of $84,740 and an additional 1% increase in salaries of $21,617
• Service expenses - $82,768 increase primarily due to legislative and attorney costs totaling
$68,581 and the new website development of $10,439
• Transfers in - $2,178,403
• Transfer in from the Utility Fund in the amount of $145,216 for impact fees
•Transfer in of $1,357,548 from Property Tax Reduction Fund to close the fund and
begin recording in the General Fund and $41,274 for General Major Maintenance
(included in General Fund for audit purposes)
o Transfer in from Vehicle and Equipment Replacement Fund to General Major
Maintenance Fund in the amount of $129,374 to close the fund and accumulate all
maintenance and replacement funds into one fund for future accounting purposes
• Various transfers totaling 5,281
• Transfers Out - $2,691,982
• Transfer to Capital Project fund in the amount of $2,085,659 as authorized by Town
Council for capital projects
• Transfer out to General Major Maintenance Fund of $500,000 to build funds for
future major maintenance projects
• Transfer out to Vehicle and Equipment Replacement Fund of $68,982 to build funds
for vehicle and equipment replacement
11
o Transfer out to Economic Development Fund of $35,758 to make annual Fidelity
payment. A new fund was created during the prior -year's budget process to isolate all
economic development revenues and expenditures.
• Other Sources - $57,000
o Receipt of note proceeds in the amount of $50,000 for the purchase of 2 heart
monitors and $7,000 represents the trade-in value used for the heart monitors
previously purchased
4B Economic Development Corporation Fund - Fund balance decreased $29,731
• All funds received were transferred to the Debt Service Fund for the annual bond payments.
• Fund balance decreased due to the reduction of a receivable from the Utility fund for an
interfund loan made to the Utility Fund for several utility projects in past years
Visitors Association Fund - Fund balance increased by $10,339
• Hotel Tax increased by $69,568 - the average daily occupancy rate has increased by
approximately 4.85%
• Marriott transportation/marketing decreased by $52,000 — additional transportation payments
were made in the prior year
Vehicle & Equipment Repair & Maintenance Fund - Fund balance decreased $57,256
• Fund was closed at fiscal year end and transferred to General Major Maintenance Fund.
Property Tax Reduction Fund - Fund balance decreased $1,569,751
• Fund was closed at fiscal year end and transferred to General Fund.
Debt Service Fund - Fund balance increased $7,505
• Property tax receipts were in excess of debt serviced
Capital Projects Fund - Fund balance increased by $4,397,155
• Bond Proceeds $2,095,000
• Transfers in from General Fund $2,085,520
• Transfers in from PTR Fund $1,196,239
• Capital projects expenditures totaled $965,700
o Dining hall improvements
o Mahotea Boone and Aspen Lane reconstruction
o Construction in progress on several street improvements (to be completed in FY
2011/12)
Bond issuance cost of $36,446
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 assets of the Proprietary Funds amounted to $5,332,939, an increase of $302,708. Operating
income totaled $1,041,854 which was offset by a net non-operating revenues (expenses) total of
$593,930.
• Revenues were $1,016,144 more than the prior year primarily due to charges for services
• Operating Expenses increased by $197,561 due to the increase in the purchase of water.
12
General Fund Budgetary Highlights
The General Fund budget for fiscal year 2011 was amended in total to increase the net change in fund
balance from ($2,225,313) to ($392,544), a total increase of $1,832,769.
• The amended budget for net revenues was increased by $866,068 (22%)
o Sales Tax - $248,500 — received more taxes than anticipated
o Property Tax - $327,471 - original budget was based on September values but then
updated
o Contributions - $164,000 — Received $175,000 in contribution for tree reforestation
mid -year
o Permits and Fees - $105,095 of which a large portion was due to gas well permits/fees
that were not originally budgeted as well as additional contractor registration fees and
development fees
• The amended budget for expenditures increased by $84,331 (2%)
o Payroll and related increased $2,220
o Expenses increased by $82,111
■ Services - $53,745
o Attorney & Legislative — $44,840 due to litigation and the legislative session
o Engineering increased by - $13,100
o Building inspection - $15,500 was added to complete Deloitte inspections
■ Capital Outlay - $37,530
o Department 16 - $14,200 — Traffic counter devices
o Department 14 - $20,005 — Fire fighter equipment
• Transfers In budget was amended to increase by $1,619,314
o Decision by the Council was made to close the Property Tax Reduction fund and
transfer to General Fund for subsequent year tax collections
• Amended budget for Transfers Out was increased by $568,282 to move $500,000 to General
Major Maintenance Fund and $66,407 to Vehicle and Equipment Replacement Fund to
accumulate funds for future maintenance projects and equipment replacement.
The General Fund actual revenue collections were less than the amended budget by $11,121 and the
final expenditures were $474,464 less than budgeted (10%).
• General government ($278,192) — majority of this amount is due to a reclass of salaries for
audit purposes. The Town pays ALL payroll from the General Fund and has interfund
transfers in from the Visitors Association Fund and the Utility Fund to cover the expenditure.
The budget reflected 100% of payroll in the General Fund but an entry was made to allocate
the payroll to the respective funds to provide the true cost of payroll expense in each fund.
• Public Safety ($22,015) — EMS/Fire was understaffed by one position for the fiscal year
• Cultural and recreation — ($35,674) — same explanation as General government regarding
payroll
• Public Works ($90,550) — same explanation as General government regarding payroll
• Capital outlay ($48,033) — budgeted for several maintenance projects and equipment
replacements that were not needed during the fiscal year
13
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, 2011, totaled $46,121,288 (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 $376,833 or 1%. The
major portion of this increase is due to the completion of the dining hall at Westlake
Academy, Mahotea Boone and Aspen Lane reconstruction, Stagecoach Hills water line,
purchase of traffic devices and heart monitors. Also, the contribution of the Fire station and
land were recorded as capital assets during the current year. Construction in progress was
recorded for several road and water projects that were not completed by year-end. This
amount was offset by $1,303,080 of depreciation which gave the Town a net increase.
Table 5
Town's Capital Assets
(Net of Accumulated Depreciation)
W/W treatment
rights
Construction in
Business -Type Activities
2011 2010
Total
2011 2010
- $ - $ 11,896,663 $ 11,530,663
9,955,542 10,080,172 12,317,230 12,313,602
- - 18,198,192 18,486,500
2,183,855 2,300,241 2,745,249 3,026,463
280,546 312,306 280,546 312,306
progress 647,940 74,921 35,468 - 683,408 74,921
Total capital assets $ 33,665,877 $ 33,051,736 $ 12,455,411 $ 12,692,719 $ 46,121,288 $ 45,744,455
Additional information on the Town's capital assets can be found in Note III on page 50 of this report.
Long-term debt - At the end of the current fiscal year, the Town had total long-term debt outstanding
of $27,039,376. Of this amount, $21,725,000 represents bonded indebtedness, $151,656 economic
development reimbursement, and $5,580,380 business -type debt. During the fiscal year 2010-2011,
the Town's total debt payable increased by $1,542,015. This increase is primarily attributed to the
issuance of Certificates of Obligation bonds in the amount of $2,095,000 for various street projects, a
note payable of $50,000 for the purchase of heart monitors and offset by the scheduled repayment of
principal and interest on outstanding bonded debt.
Standard & Poor's Ratings Services, a division of the McGraw-Hill, Inc. rates the Town's debt at AA-.
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 III on pages 55-58.
14
Governmental Activities
2011
2010
Land
$ 11,896,663 $
11,530,663 $
Capital
improvements
2,361,688
2,233,430
Buildings
18,198,192
18,486,500
Machinery &
equipment
561,394
726,222
W/W treatment
rights
Construction in
Business -Type Activities
2011 2010
Total
2011 2010
- $ - $ 11,896,663 $ 11,530,663
9,955,542 10,080,172 12,317,230 12,313,602
- - 18,198,192 18,486,500
2,183,855 2,300,241 2,745,249 3,026,463
280,546 312,306 280,546 312,306
progress 647,940 74,921 35,468 - 683,408 74,921
Total capital assets $ 33,665,877 $ 33,051,736 $ 12,455,411 $ 12,692,719 $ 46,121,288 $ 45,744,455
Additional information on the Town's capital assets can be found in Note III on page 50 of this report.
Long-term debt - At the end of the current fiscal year, the Town had total long-term debt outstanding
of $27,039,376. Of this amount, $21,725,000 represents bonded indebtedness, $151,656 economic
development reimbursement, and $5,580,380 business -type debt. During the fiscal year 2010-2011,
the Town's total debt payable increased by $1,542,015. This increase is primarily attributed to the
issuance of Certificates of Obligation bonds in the amount of $2,095,000 for various street projects, a
note payable of $50,000 for the purchase of heart monitors and offset by the scheduled repayment of
principal and interest on outstanding bonded debt.
Standard & Poor's Ratings Services, a division of the McGraw-Hill, Inc. rates the Town's debt at AA-.
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 III on pages 55-58.
14
Table 6
Outstanding Debt at Year -End
2011 2010
General
obligation bonds $ 9,515,000 $ 9,630,000 $
Certificates of
obligation 12,210,000 10,555,000
Contractual
obligations 151,656 177,224
2011 2010 2011 2010
- $ - $ 9,515,000 $ 9,630,000
- - 12,210,000 10,555,000
5,580,380 5,658,888 5,732,036 5,836,112
Notes payable 50,000 - - - 50,000 -
Compensated
absences 75,235 63,125 9,449 9,804 84,684 72,929
Deferred
amounts (552,344) (596,680) - - (552,344) (596,680)
Total long-term
debt $ 21,449,547 $ 19,828,669 $ 5,589,829 $ 5,668,692 $ 27,039,376 $ 25,497,361
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
During the budget process for FY 2010-2011, we found ourselves at a juncture where we could still
continue to face critical challenges and critical choices financially by relying on our major revenue
sources of sales tax, franchise fees, permits & fees, (large one-time building permits), and fines and
forfeitures without a property tax. Numerous options were discussed relative to the passage of an ad
valorem property tax at the Council's budget workshops and other public meetings. These were
designed to determine a pathway to place the Town's finances on solid ground, securing our vision for
the future. The scenarios focused on stabilizing the General Fund's on-going revenue (i.e. ceasing the
use of fund balance for daily operations and reliance on one-time, non -reoccurring revenues) as well as
reinvesting in Westlake's infrastructure. These revenue options utilized a municipal ad valorem
(property) tax, something that the Town had never implemented.
Westlake's estimated 2012 taxable assessed valuation is approximately $937M net of abatements; a
large ad valorem tax base for a community 6.2 square miles in land area and a permanent residential
population of approximately 992 with an estimated daytime population of between 10,000 and 12,000
(Monday -Friday). The tax rate for Westlake for FY 2011-2012 is the lowest in the area at $.15684 per
$100 of assessed valuation ($.13835 maintenance and operations and $.01849 interest and sinking).
GENERAL FUND
Revenue
• FY 10/11 Actual $4,743,374
• FY 11/12 Budget $5,209,228
• Budgeted revenues are $465,854 (10%) more than the prior year actual
o Sales tax revenue budget increased by $560,481 — The Town saw an increase in sales
tax of approximately 21% with 18% being attributed to the `base' sales tax during FY
10/11 but budgeted conservatively. The large increase is primarily due to the transfer
15
of the Property Tax Reduction (PTR) sales tax revenues to the General Fund;
therefore, an additional 1/2 cent will be recorded in the General Fund.
Payroll & Related
• FY 10/11 Actual $2,042,142
• FY 11/12 Budget $2,120,680
• Budgeted payroll & related is $78,538(4%) more than prior year actual
o Municipal base pay was increased by 1% with a possible $45,000 one-time
performance payment based on revenues at mid -year
o Insurance and tax increase of approximately $15,000
Operating/Capital Outlay Expenditures
• FY 10/11 Actual $2,022,239
• FY 11/12 Budget $2,601,141
• Budgeted expenditures are $578,902 (29%) more than the prior year actual
o Supplies — ($11,509)
o Capital Outlay - $95,715
■ FY 10/11 purchased heart monitors and traffic counting devices totaling $94,285
■ FY 11/12 budgeted to purchase Attack Fire Truck - $170,000 and fire fighter
equipment at $20,000
o Westlake Academy - $377,483 Includes transfer to the Town for indirect costs
totaling $303,695 as well as a 1% salary increase
o Major Maintenance and Equipment Replacement increased by $377,483 primarily due
to the purchase of an ambulance for $200,000; relocation of the pump irrigation
system at $31,500; refurbishment of several Academy classrooms at $25,000, IT
equipment replacement of $24,500 with the remaining $96,483 being budgeted for
replacement and repair of various items related to the Academy, i.e. A/C units, roof
repairs, parking lot, etc.
o Services - $147,964 (26% of increase)
• Keller Police Contract increased by $28,899 (4%)
■ Election expense - $10,747 based on additional cost due to County election
requirements
■ Contracted services and Advertising expenditures - $23,443
■ Training and seminars - $15,086 — several department heads did not go to their
budgeted training and seminars in the prior year but will do so in FY 11-12
■ Street Drainage and Engineering increased $20,855. This budget is typically the
same from year to year for miscellaneous engineering but the need for the total
expenditures was not needed in the prior year.
■ Contract Median Repair and Maintenance - $13,000
■ Payroll reimbursement to Academy for IT Tech - $22,100 due to 100% of
Technician being paid by the Academy but a portion of his time being spent on
Municipality
Other Sources and Uses
• FY 10/11 Actual ($456,579)
• FY 11/12 Budget ($597,915)
o Transfers in are decreased by $1,609,672 (74%) more than the prior year actual
16
■ Reduction due to the transfer in from PTR fund in the amount of 1,357,548 to
close the fund in the prior year and a reduction in Impact Fee transfers from
Utility Fund
■ Current year transfers in relate only to interfund payroll transfers to the General
Fund and $30,000 in impact fees from the Utility Fund
o Other Sources are decreased by $57,000 or 100% from the prior year actual
■ Represented $50,000 loan proceeds as well as $7,000 in trade-in for 2 heart
monitors in FY 11/12
o Transfers out are decreased by $1,525,338 or 57% from the prior year actual
■ Reduction is due to the transfer out of fund balance in the prior year for capital
projects in the amount of $2,085,659, and to fund Major Maintenance for
$600,000 and Equipment Replacement for $68,982.
■ Current year transfer are related to economic development transfer to Economic
Development Fund, impact fees to the Utility Fund, $530,000 transfer to the
General Major Maintenance Fund and a debt service payment of $601,178 to be
paid with sales tax receipts.
VISITORS ASSOCIATION FUND
Revenue
• FY 10/11 Actual $547,901
• FY 11/12 Budget $557,175
• Budgeted revenues are $9,274 (2%) more than FY 10/11 actual
o The Town remained conservative when estimating hotel/motel occupancy tax for the
FY 11/12
Operating Expenditures
• FY 10/11 Actual $356,365
• FY 11/12 Budget $475,770
o Budgeted expenditures are $119,405 (33%) more than FY 10/11 actual
■ Payroll expenditures are $102,589 (67%) greater than the prior year because there
is a 1 % increase in payroll for the current year and the Director of
Communications and Community Affairs position was created and is funded
100% from the Visitors Association Fund — payroll was previously allocated to
the General Fund and the Visitors Association Fund
■ Supplies increased by $15,727 primarily due to moving all expenditures related to
the Director of Communications and Community Affairs to this fund
Other Sources and Uses
Trnncfarc (lilt
• FY 10/11 Actual ($181,197)
• FY 11/12 Budget ($190,766)
o Budgeted transfer out is $9,569 (5%) more than the previous actual based on the
actual debt service payment for the Sam and Margaret Lee Arts and Sciences Center.
17
UTILITY FUND
Revenue
• FY 10/11 Actual $3,224,534
• FY 11/12 Budget $2,721,266
• Budgeted revenues are $503,268 (17%) less than FY 10/11 actual
oThe Charges for Service adopted budget is $487,109 less than the FY 10/11 actual.
The FY 10/11 amended budget was $2,498,766; therefore, the actual was $580,102
more than anticipated. The adopted budget was anticipating a 5% increase from the
amended amount. Once again, due to the dry year we had, these revenues were much
greater than expected.
oMisc Income budget decreased by $75,166 from the FY 10/11 actual amount
primarily due to the receipt of $46,500 in duct bank permit fees in FY 2011. This was
an entry made during the audit to reclass these funds to a specific line -item. The line -
item didn't exist at the time of the budget adoption. The remaining difference of
approximately $30,000 is due to the reduction of the TRA wastewater settle -up
anticipated to be received in FY 11/12. These amounts are calculated annually based
on the proportionate share of cost of actual flows vs projected flows for the regional
wastewater system.
Operating Expenses
• FY 10/11 Actual $1,924,609 (net of depreciation and interest expense)
• FY 11/12 Adopted Budget $2,321,056
• Budgeted operating expenses are $364,687 (19%) more than FY 10/11
o Payroll expense has increased by $47,747 (23%)
■ Anticipated 1% increase
■ Technician was allocated 50% to the fund in the prior year and is now 100%
o Water purchases increased by $94,731 due to City of Fort Worth water rate increase
and projected increase in water usage by customers
o Services - $108,218 mainly due to the increase of the TRA -Wastewater Treatment of
$102,361 due to TRA Wastewater Treatment cost increase
o Repair and Maintenance - $38,051- increase in pump station, lift station, and ground
storage tank repairs.
Other Uses
Transfers Out
• FY 10/11 Actual ($145,216)
• FY 11/12 Adopted Budget ($80,000)
• Budgeted transfers out are $65,216 (45%) less than the prior year actual
o Impact fee transfers were reduced due to one-time revenue in prior year
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.
18
BASIC FINANCIAL STATEMENTS
TOWN OF WESTLAKE, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
Primary Government
Discretely
Governmental Business -type Presented
Activities Activities Total Component Units
ASSETS
Cash and cash equivalents
$ 7,106,213
$ 1,591,192
$ 8,697,405
$ 6,516,585
Investments
2,887,849
612,395
3,500,244
-
Receivables (net of allowance)
1,356,404
1,161,325
2,517,729
433,104
Internal balances
208,115
( 208,115)
-
-
Inventories
-
98,179
98,179
-
Other assets
95,531
2,589
98,120
42,544
Restricted cash and cash equivalents
428,463
143,780
572,243
4,737,253
Deferred charges
367,356
-
367,356
3,754,524
Capital assets:
Land
11,896,663
-
11,896,663
12,070,678
Buildings and improvements
26,621,287
13,099,180
39,720,467
91,741,792
Wastewater treatment rights
-
635,199
635,199
-
Machinery and equipment
2,468,852
3,459,821
5,928,673
12,052,793
Construction in progress
647,940
35,468
683,408
-
Less: accumulated depreciation
( 7,968,865)
( 4,774,257)
( 12,743,122)
( 35,208,605)
Total capital assets
33,665,877
12,455,411
46,121,288
80,656,658
Total assets
46,115,808
15,856,756
61,972,564
96,140,668
LIABILITIES
Accounts payable
1,029,619
431,744
1,461,363
1,326,886
Customer deposits payable
-
143,780
143,780
-
Unearned revenue
700
415,170
415,870
4,011,789
Accrued interest payable
391,559
3,943,294
4,334,853
17,807,507
Noncurrent liabilities:
Due within one year
718,487
82,657
801,144
60,581,271
Due in more than one year
20,731,060
5,507,172
26,238,232
54,818,941
Total liabilities
22,871,425
10,523,817
33,395,242
138,546,394
NET ASSETS
Invested in capital assets, net of related debt
12,658,921
6,875,031
19,533,952
( 33,283,554)
Restricted for specific purposes
7,137,362
-
7,137,362
( 9,424,439)
Unrestricted
3,448,100
( 1,542,092)
1,906,008
302,267
Total net assets
$ 23,244,383
$ 5,332,939
$ 28,577,322
$( 42,405,726)
The accompanying notes are an integral part of these financial statements.
19
TOWN OF WESTLAKE, TEXAS
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Business -type activities:
Water utilities 2,794,235 3,078,868 - -
Cemetery 5,604 13,300 - -
Total business -type activities 2,799,839 3,092,168 - -
Total primary government $ 14,722,790 $ 4,346,135 $ 728,242 $ 425,900
Component units:
Business -type activities $ 22,749,658 $ 17,186,589 $ - $ -
Total component units $ 22,749,658 $ 17,186,589 $ - $ -
General revenues:
Sales taxes
Property taxes
Hotel occupancy taxes
Mixed beverage taxes
Franchise taxes
Unrestricted grants
Interest income
Miscellaneous
Transfers
Extraordinary item - proceeds from insurance, net
Gain on sale of capital assets
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The accompanying notes are an integral part of these financial statements.
20
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
$ 2,478,826
$ 721,157
$ 175,000
$ 366,000
Public safety
1,801,585
140,600
5,063
59,900
Culture and recreation
122,400
-
-
-
Economic Development
680,823
-
-
-
Public works
470,054
292,572
-
-
Visitor Services
356,365
-
-
-
Education
4,884,985
99,638
548,179
-
Interest on long-term debt
1,127,913
-
-
-
Total governmental activities
11,922,951
1,253,967
728,242
425,900
Business -type activities:
Water utilities 2,794,235 3,078,868 - -
Cemetery 5,604 13,300 - -
Total business -type activities 2,799,839 3,092,168 - -
Total primary government $ 14,722,790 $ 4,346,135 $ 728,242 $ 425,900
Component units:
Business -type activities $ 22,749,658 $ 17,186,589 $ - $ -
Total component units $ 22,749,658 $ 17,186,589 $ - $ -
General revenues:
Sales taxes
Property taxes
Hotel occupancy taxes
Mixed beverage taxes
Franchise taxes
Unrestricted grants
Interest income
Miscellaneous
Transfers
Extraordinary item - proceeds from insurance, net
Gain on sale of capital assets
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The accompanying notes are an integral part of these financial statements.
20
Net (Expense) Revenue and
Chances in Net Assets
Primary Government Discretely
Governmental Business -type Presented
Activities Activities Total Component Units
$( 1,216,669) $
-
$( 1,216,669) $ -
( 1,596,022)
-
( 1,596,022) -
( 122,400)
-
( 122,400) -
( 680,823)
-
( 680,823) -
( 177,482)
-
( 177,482) -
( 356,365)
-
( 356,365) -
( 4,237,168)
-
( 4,237,168) -
( 1,127,913)
-
( 1,127,913) -
( 9,514,842)
-
( 9,514,842) -
19,424
691,345
-
284,633
284,633 -
-
7,696
7,696 -
-
292,329
292,329 -
( 9,514,842)
292,329
( 9,222,513) -
$( 5,563,069)
$( 5,563,069)
4,609,626
-
4,609,626
-
1,260,112
-
1,260,112
-
527,261
-
527,261
-
19,721
-
19,721
-
586,836
-
586,836
-
3,744,757
-
3,744,757
-
46,248
9,929
56,177
19,424
691,345
145,666
837,011
-
145,216
( 145,216)
-
-
56,704
-
56,704
-
7,000
-
7,000
-
11,694,826
10,379
11,705,205
19,424
2,179,984
302,708
2,482,692
( 5,543,645)
21,064,399
5,030,231
26,094,630
( 36,862,081)
$ 23,244,383
$ 5,332,939
$ 28,577,322
$( 42,405,726)
21
TOWN OF WESTLAKE, TEXAS
BALANCESHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2011
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the
funds.
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds
Certain other long-term assets are not available to pay current period expenditures and therefore are
deferred in the funds
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
22
Debt
Visitors
Westlake
Service
General
Association
Academy
Fund
ASSETS:
Cash and cash equivalents
$ 3,277,799
$ 1,067,577
$ 802,281
$ 10,173
Investments
102,065
-
-
-
Receivables
Property taxes
4,643
-
-
116
Accounts receivable
259,938
80,094
466,646
-
Due from other funds
296,555
-
-
-
Other assets
62,020
1,915
31,596
-
Restricted cash and investments
428,463
-
-
-
TOTAL ASSETS
$ 4,431,483
$ 1,149,586
$ 1,300,523
$ 10,289
LIABILITIES AND FUND BALANCE:
Liabilities:
Accounts payable
413,293
37,606
383,562
2,714
Deferred revenue
2,796
700
-
70
Due to other funds
-
-
-
-
Totalliabilities
416,089
38,306
383,562
2,784
Fund Balances:
Nonspendable:
Prepaid items
62,020
1,915
31,596
-
Restricted for:
Tourism
-
1,109,365
-
Future projects
219,687
-
-
-
Debt service
-
-
7,505
Education
-
885,365
-
Economic development
-
-
-
-
Committed for:
Court security and technology
186,776
-
-
-
Assigned for:
Future equipment purchase
22,000
-
-
-
Unassigned
3,524,911
-
-
-
Total fund balances
4,015,394
1,111,280
916,961
7,505
TOTAL LIABILITIES AND FUND BALANCES
$ 4,431,483
$ 1,149,586
$ 1,300,523
$ 10,289
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the
funds.
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds
Certain other long-term assets are not available to pay current period expenditures and therefore are
deferred in the funds
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
22
Property Vehicle/Equip. Economic Lone Star 4B Economic Total
Capital FM 1938 Tax Reduction Replacement Development Public Facility Development Governmental
Projects Fund Fund Fund Fund Corporation Corporation Funds
$ 1,934,844 $ - $ $ - $ $ 13,531 $ 8 $ 7,106,213
2,785,784 - - - - - 2,887,849
- - - - - - 4,759
1,649 - 178,005 - 104,499 - 178,004 1,268,835
- 118,550 - - 208,115 623,220
- - - - 95,531
- - - - - 428,463
$ 4,722,277 $ - $ 296,555 $ $ 104,499 $ 13,531 $ 386,127 $ 12,414,870
87,945 - - - 104,499 - - 1,029,619
- - - - - - 3,566
- 296,555 - - 118,550 415,105
87,945 296,555 104,499 - 118,550 1,448,290
- - - - - - 95,531
- - - - - 1,109,365
4,634,332 - - 13,531 4,867,550
- - - - - 7,505
- 885,365
267,577 267,577
186,776
- - 22,000
- - - - 3,524,911
4,634,332 - - - 13,531 267,577 10,966,580
$ 4,722,277 $ $ 296,555 $ - $ 104,499 $ 13,531 $ 386,127
33,665,877
( 21,473,750)
85,676
$ 23,244,383
23
TOWN OF WESTLAKE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Visitors
Westlake
General
Association
Academy
REVENUES:
Taxes
Sales
$ 1,502,020
$ -
$ -
Property
1,226,689
-
-
Mixed beverage
19,721
-
-
Hotel occupancy
-
527,261
-
Franchise
586,836
-
-
State program revenues
-
-
3,945,658
Federal program revenues
-
-
157,445
Interest income
10,679
2,750
2,295
Building permits and fees
520,646
-
-
Fines and penalties
605,705
-
-
Contributions
180,063
-
-
Miscellaneous
91,015
17,890
871,911
Total revenues
4,743,374
547,901
4,977,309
EXPENDITURES:
Current
General government
1,733,324
-
-
Public safety
1,842,751
-
-
Culture and recreation
122,400
-
-
Public works
324,874
-
-
Economic Development
-
-
-
Visitor services
-
356,365
-
Education
-
-
4,884,985
Capital outlay
41,037
-
-
Debt service
Principal retirement
-
-
-
Interest and other fiscal charges
-
-
-
Bond issuance costs
-
-
Total expenditures
4,064,386
356,365
4,884,985
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
678,988
191,536
92,324
OTHER FINANCING SOURCES (USES)
Transfers in
2,178,403
-
-
Transfers out
( 2,691,982)
( 181,197)
-
Bonds issued
-
-
-
Notes payable issued
50,000
-
-
Sale of assets
7,000
-
-
Extraordinary item - proceeds from insurance, net
-
-
56,704
Total other financing sources (uses)
( 456,579)
( 181,197)
56,704
NET CHANGE IN FUND BALANCES
222,409
10,339
149,028
FUND BALANCES, BEGINNING
3,792,985
1,100,941
767,933
FUND BALANCES, ENDING
$ 4,015,394
$ 1,111,280
$ 916,961
The accompanying notes are an integral part of these financial statements.
24
Debt
Property
Vehicle/Equip.
Economic
Service
Capital
FM 1938
Tax Reduction
Replacement
Development
Fund
Projects
Fund
Fund
Fund
Fund
$ -
$ -
$ -
$ 1,218,487
$ -
$ 670,633
30,557
-
-
-
-
-
29
27,057
-
2,682
171
153
-
-
-
-
10,000
-
27,057
-
1,221,169
670,786
30,586
10,171
-
-
1,875
-
-
-
-
-
-
-
-
706,391
-
965,700
-
-
17,035
-
555,000
-
-
-
-
-
973,620
-
-
109,757
-
-
-
36,446
-
-
-
-
1,528,620
1,002,146
1,875
109,757
17,035
706,391
( 1,498,034)
( 975,089)
( 1,875)
1,111,412
( 6,864)
( 35,605)
1,505,539
3,281,759
1,875
-
78,982
35,605
-
( 4,515)
-
( 2,681,163)
( 129,374)
-
-
2,095,000
-
-
-
-
35,605
1,505,539
5,372,244
1,875
( 2,681,163)
( 50,392)
7,505
4,397,155
-
( 1,569,751)
( 57,256)
-
-
237,177
-
1,569,751
57,256
-
$ 7,505
$ 4,634,332
$ -
$ -
$ -
$ -
25
TOWN OF WESTLAKE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
(continued)
Lone Star
4B Economic
Total
Public Facility
Development
Governmental
Corporation
Corporation
Funds
REVENUES:
Taxes
Sales
$ -
$ 1,218,486
$ 4,609,626
Property
-
-
1,257,246
Mixed beverage
-
-
19,721
Hotel occupancy
-
-
527,261
Franchise
-
-
586,836
State program revenues
-
-
3,945,658
Federal program revenues
-
-
157,445
Interest income
35
397
46,248
Building permits and fees
-
-
530,646
Fines and penalties
-
-
605,705
Contributions
-
-
180,063
Miscellaneous
-
-
980,816
Total revenues
35
1,218,883
13,447,271
EXPENDITURES:
Current
General government
-
-
1,733,324
Public safety
-
-
1,842,751
Culture and recreation
-
-
122,400
Public works
-
-
326,749
Economic Development
-
-
706,391
Visitor services
-
-
356,365
Education
-
-
4,884,985
Capital outlay
-
-
1,023,772
Debt service
Principal retirement
-
-
555,000
Interest and other fiscal charges
-
-
1,083,377
Bond issuance costs
-
-
36,446
Total expenditures
-
-
12,671,560
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
35
1,218,883
775,711
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
7,082,163
Transfers out
( 102)
( 1,248,614)
( 6,936,947)
Bonds issued
-
-
2,095,000
Notes payable issued
-
-
50,000
Sale of assets
-
-
7,000
Extraordinary item - proceeds from insurance, net
-
-
56,704
Total other financing sources (uses)
( 102)
( 1,248,614)
2,353,920
NET CHANGE IN FUND BALANCES
( 67)
( 29,731)
3,129,631
FUND BALANCES, BEGINNING
13,598
297,308
7,836,949
FUND BALANCES, ENDING
$ 13,531
$ 267,577
$ 10,966,580
The accompanying notes are an integral part of these financial statements.
26
TOWN OF WESTLAKE, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Amounts reported for governmental activities in the statement
of activities are different because:
Net change in fund balance - total governmental funds $ 3,129,631
Governmental funds report capital outlays as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense. This is the amount by which depreciation exceeds capital outlays in the
current period. 614,141
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds. 20,844
The issuance of long-term debt (e.g., bonds, leases) provided current financial resources to
governmental funds, while repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any effect on net
assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and
similar items when debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities. This amount is the net effect of these differences in the treatment of
long-term debt and related items. ( 1,527,986)
Some expenses reported in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds. ( 56,646)
Change in net assets of governmental activities $ 2,179,984
The accompanying notes are an integral part of these financial statements.
27
TOWN OF WESTLAKE, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2011
Business -type Activities -Enterprise Funds
Utility Cemetery
Fund Fund Total
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable (net of allowance)
Inventories
Other assets
Restricted cash and investments
Total current assets
Noncurrent assets
Capital assets:
Construction in progress
Buildings and improvements
Wastewater treatment rights
Machinery and equipment
Less: accumulated depreciation
Total capital assets
Total noncurrent assets
Total assets
LIABILITIES
Current liablities:
Accounts payable
Customer deposits payable
Accrued interest payable
Due to other funds
Deferred revenue
Compensated absences
Contractual obligations
Total current liabilities
Long-term liabilities:
Compensated absences
Contractual obligations
Total long-term liabilities
Total liabilities
$ 1,540,408 $ 50,784 $ 1,591,192
612,395 - 612,395
1,161,325 - 1,161,325
- 98,179 98,179
2,589 - 2,589
143,780 - 143,780
3,460,497 148,963 3,609,460
35,468
- 35,468
13,099,180
- 13,099,180
635,199
- 635,199
3,459,821
- 3,459,821
( 4,774,257)
- ( 4,774,257)
12,455,411
- 12,455,411
12,455,411
- 12,455,411
15,915,908
148,963 16,064,871
431,744
- 431,744
143,780
- 143,780
3,943,294
- 3,943,294
208,115
- 208,115
415,170
- 415,170
945
- 945
81,712
- 81,712
5,224,760
- 5,224,760
8,504 - 8,504
5,498,668 - 5,498,668
5,507,172 - 5,507,172
10,731,932 - 10,731,932
NET ASSETS
Invested in capital assets, net of related debt 6,875,031 - 6,875,031
Unrestricted ( 1,691,055) 148,963 ( 1,542,092)
Total net assets $ 5,183,976 $ 148,963 $ 5,332,939
The accompanying notes are an integral part of these financial statements.
28
TOWN OF WESTLAKE, TEXAS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Business-tvne Activities -Enterprise Funds
OPERATING EXPENSES:
Payroll costs
Utility
Cemetery
203,593
Professional and contract services
Fund
Fund
Total
OPERATING REVENUES:
418,913
-
418,913
Charges for services
$ 3,078,868
$ 13,300
$ 3,092,168
Miscellaneous revenue
145,666
-
145,666
Total operating revenue
3,224,534
13,300
3,237,834
OPERATING EXPENSES:
Payroll costs
203,593
-
203,593
Professional and contract services
18,005
5,008
23,013
Depreciation
418,913
-
418,913
Amortization of wastewater treatment rights
31,760
-
31,760
Water purchases
1,015,869
-
1,015,869
Cost of cemetary lots sold
-
596
596
Other operating costs
502,236
-
502,236
Total operating expenses
2,190,376
5,604
2,195,980
OPERATING INCOME
1,034,158
7,696
1,041,854
NON-OPERATING REVENUES (EXPENSES):
Interest income
9,811
118
9,929
Interest expense
( 603,859)
-
( 603,859)
Total non-operating revenues (expenses)
( 594,048)
118
( 593,930)
INCOME (LOSS) BEFORE TRANSFERS AND
CAPITAL CONTRIBUTIONS
440,110
7,814
447,924
Transfer out
( 145,216)
-
( 145,216)
Total transfers and capital contributions
( 145,216)
-
( 145,216)
CHANGE IN NET ASSETS
294,894
7,814
302,708
TOTAL NET ASSETS, BEGINNING
4,889,082
141,149
5,030,231
TOTAL NET ASSETS, ENDING
$ 5,183,976 $
148,963
$ 5,332,939
The accompanying notes are an integral part of these financial statements.
29
TOWN OF WESTLAKE, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Business -type Activities -Enterprise Funds
PROVIDED BY OPERATING ACTIVITIES
Utility
Cemetery
Total
Fund
Fund
Current Year
CASH FLOWS FROM OPERATING ACTIVITIES
Changes in operating assets and liabilities:
Receivables
Cash received from customers
$ 2,778,738
$ 13,300
$ 2,792,038
Cash payments to employees/retirees
( 203,948)
-
( 203,948)
Cash payments for goods and services
( 1,246,014)
( 8,406)
( 1,254,420)
Net cash provided by operating activities
1,328,776
4,894
1,333,670
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfer to other funds
( 145,216)
-
( 145,216)
Advances to other funds
( 59,462)
-
( 59,462)
Net cash provided by noncapital financing activities
( 204,678)
-
( 204,678)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid on debt
( 78,508)
-
( 78,508)
Interest paid on debt
( 135,903)
-
( 135,903)
Purchase of property and equipment
( 213,365)
-
( 213,365)
Net cash used by capital and related financing activities
( 427,776)
-
( 427,776)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings
9,811
118
9,929
NET INCREASE IN CASH AND CASH EQUIVALENTS
706,133
5,012
711,145
CASH AND CASH EQUIVALENTS, BEGINNING
1,590,450
45,772
1,636,222
CASH AND CASH EQUIVALENTS, ENDING
$ 2,296,583
$ 50,784
$ 2,347,367
RECONCILIATION OF TOTAL CASH AND CASH EQUIVALENTS
Cash and cash equivalents $ 1,540,408 $ 50,784 $ 1,591,192
Restricted cash and cash equivalents 143,780 - 143,780
Investments 612,395 - 612,395
Total cash and cash equivalents $ 2,296,583 $ 50,784 $ 2,347,367
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income $
1,034,158
Adjustments to reconcile operating loss to net
cash provided by operating activities:
Depreciation and amortization
450,673
Changes in operating assets and liabilities:
Receivables
(464,397)
Other assets
57
Accounts payable
290,039
Compensated absences
(355)
Customer deposits payable
15,290
Deferred revenue
3,311
Net cash provided by operating activities $
1,328,776
The accompanying notes are an integral part of these financial statements.
30
$ 7,696 $ 1,041,854
- 450,673
(464,397)
596 653
( 3,398) 286,641
- (355)
15,290
- 3,311
$ 4,894 $ 1,333,670
TOWN OF WESTLAKE, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
ASSETS
Cash and cash equivalents
Accounts receivables (net of allowance)
Other assets
Restricted assets:
Cash and cash equivalents
Deferred charges
Capital assets:
Land
Buildings and improvement
Machinery and equipment
Less: accumulated depreciation
Total assets
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable and accrued expenses
Unearned revenue
Accrued interest payable
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net
of related debt
Restricted
Unrestricted
Total net assets
SEPTEMBER 30, 2011
Texas Student
Housing
Authority -
Ballpark Austin
Project
$ 863,116
21,398
950
441,207
2,385,899
4,788,265
21,345,305
6,993,063
10,837,949)
26,001,254
592,357
589,942
7,040,264
900,000
34,213,263
43,335,826
( 11,364,579)
( 6,599,057)
629,064
$( 17,334,572)
The accompanying notes are an integral part of these financial statements.
31
Texas Student
Housing
Corporation -
The Ridge at
North Texas
$ 655,734
16,593
24,517
2,078,658
673,250
2,200,000
25,705,000
1,253,841
10,081,182)
22,526,411
408,086
516,072
3,680,333
28,305,191
JG,7V7,VOG
( 9,227,532)
( 1,601,675)
445,936
$( 10,383,271)
Texas Student
Housing
Authority -
Town Lake
Austin Project
$ 579,911
32,100
500
258,037
695,375
2,182,816
16,963,841
1,211,085
5,530,206)
16,393,459
163,085
426,356
1,200,664
281,080
20,605,678
22,676,863
( 6,059,222)
( 1,223,707)
999,525
$( 6,283,404)
Texas Student
Housing
Authority - Texas Student
College Station Housing
Project Authority Total
$ 3,839,547 $
578,277 $ 6,516,585
326,581
36,432 433,104
16,577
- 42,544
1,959,351
- 4,737,253
-
- 3,754,524
2,899,597
- 12,070,678
27,727,646
- 91,741,792
2,594,804
- 12,052,793
( 8,759,268)
- ( 35,208,605)
30,604,835
614,709 96,140,668
160,605
2,753 1,326,886
2,452,166
27,253 4,011,789
5,886,246
- 17,807,507
31,095,000
- 60, 581,271
-
- 54,818,941
39,594,017
30,006 138,546,394
( 6,632,221)
( 2,356,961)
$( 8,989,182)
584,703
$ 584,703
( 33,283,554)
( 9,424,439)
302,267
$( 42,405,726)
32
TOWN OF WESTLAKE, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Program Revenues
The accompanying notes are an integral part of these financial statements.
33
Operating Capital
Charges for Grants and Grants and
Functions/Programs
Expenses
Services Contributions Contributions
Business -type activities:
Texas Student Housing Authority
$ 862,296
$ 921,410 $ - $ -
Texas Student Housing Authority:
College Station Project
7,212,127
5,673,667 - -
Ballpark Austin Project
5,512,879
3,526,263 - -
Town Lake Austin Project
3,759,998
2,848,897 - -
Texas Student Housing Corporation:
The Ridge at North Texas
5,402,358
4,216,352 - -
Total business -type activities
22,749,658
17,186,589 - -
Total primary government
$ 22,749,658
$ 17,186,589 $ - $ -
General revenues:
Interest income
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The accompanying notes are an integral part of these financial statements.
33
Net (Expense) Revenue and
Chances in Net Assets
Texas Student
Texas Student
Texas Student
Texas Student
-
Housing
Housing
Housing
Housing
-
Authority -
Corporation -
Authority -
Authority -
Texas Student
Ballpark Austin
The Ridge at
Town Lake
College Station
Housing
Project
North Texas
Austin Project
Project
Authority Total
$ -
$ -
$ -
$ -
$ 59,114 $ 59,114
-
-
-
( 1,538,460)
-
( 1,538,460)
( 1,986,616)
-
-
-
-
( 1,986,616)
-
-
( 911,101)
-
-
( 911,101)
-
( 1,186,006)
-
-
-
( 1,186,006)
( 1,986,616)
( 1,186,006)
( 911,101)
( 1,538,460)
59,114
( 5,563,069)
( 1,986,616)
( 1,186,006)
( 911,101)
( 1,538,460)
59,114
( 5,563,069)
-
18,601
42
642
139
19,424
-
18,601
42
642
139
19,424
( 1,986,616)
( 1,167,405)
( 911,059)
( 1,537,818)
59,253
( 5,543,645)
( 15,347,956)
( 9,215,866)
( 5,372,345)
( 7,451,364)
525,450
( 36,862,081)
$( 17,334,572)
$( 10,383,271)
$( 6,283,404)
$( 8,989,182) $
584,703
$( 42,405,726)
34
TOWN OF WESTLAKE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2011
I. 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.
A. Reporting Entity
The accompanying financial statements comply with the provisions of the GASB statements
No. 14 and 39. "The Financial Reporting Entity," in that the Town's basic financial
statements include the accounts of the Town's financial reporting entity, including the
primary government, organizations for which the Town is financially accountable and other
organizations for which the nature and significance of their relationship with the Town are
such that inclusion would cause the Town's financial statement to be misleading or
incomplete. The criteria for including organizations as component units within the Town's
reporting entity, includes whether:
■ The organization is legally separate (can sue and be sued in their own name);
■ The Town holds the corporate powers of the organization;
■ The Town appoints a voting majority of the organization's board;
■ The Town is able to impose its will on the organization;
■ The organization has the potential to impose a financial benefit/burden on the
Town; and
■ There is fiscal dependency by the organization on the Town.
Component units are blended with the balances and transactions of the Town if one of the
following criterion are met:
■ The component unit is substantially the same governing body as the Town; or
■ The component unit provides services entirely (or almost entirely) to the
Town or benefits the Town exclusively (or almost exclusively) ; or
■ The Town is able to impose its will on the component unit.
(continued)
35
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Reporting Entity (Continued)
Based on the aforementioned criteria, the Town has the following component units: Lone
Star Public Facilities Corporation, 4B Economic Development Corporation, Westlake
Academy, Texas Student Housing Authority, Texas Student Housing Authority Ballpark
Austin Project; Texas Student Housing Authority Town Lake Austin Project, Texas Student
Housing Authority College Station Project and Texas Student Housing Corporation - The
Ridge at North Texas.
B. Component Units
Discretely Presented
The Texas Student Housing Authority, Texas Student Housing Ballpark Austin Project,
Texas Student Housing Town Lake Austin Project, Texas Student Housing College Station
Project, and Texas Student Housing Corporation — The Ridge at North Texas Project
(collectively, "Texas Student Housing") 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's 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. Housing entities are reported as Enterprise Funds. The Town is not
responsible for the long-term debt of the Texas Student Housing entities. All Texas Student
Housing entities have separately issued financial statements. These statements can be
obtained by contacting the Texas Student Housing Authority, 3 Village Circle, Suite 202,
Westlake, Texas 76262.
The financial statements are formatted to allow the user to clearly distinguish between the
primary government and the discretely presented component units.
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 a voting majority of the board of directors is on the
Town's governing body, the Town can impose its will on the entity.
(continued)
36
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Component Units (Continued)
Blended (Continued)
4B Economic Development Corporation is a Texas nonprofit industrial corporation under
the Development Corporation Act of 1979 formed to promote economic development within
the Town and the State of Texas in order to eliminate unemployment and underemployment,
and to promote and encourage employment and the public welfare of, for, and on behalf of
the Town by developing, implementing, financing, and providing one or more projects
defined and permitted under Section 413 of the Act. The board of directors is composed of
seven persons appointed by the members of the Town's governing board. Four of the
members of the board of directors are members of the Town's governing board. Since a
voting majority of the board of directors is on the Town's governing body, the Town can
impose its will on the entity.
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 a voting majority of the board of directors is on the Town's
governing body, the Town can impose its will on the entity. The Academy's year-end is
August 31.
C. Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the Statement of Net Assets 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 includes 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.
(continued)
37
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. 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.
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.
Special Revenue Funds — to account for the proceeds of specific revenue sources
(other than special assessments, expendable trusts, or major capital projects) that
are legally restricted to expenditures for specified purposes.
Visitors Association Fund — to account for municipal hotel occupancy
taxes collected and expenditures to promote tourism and the convention
and hotel industry.
(continued)
38
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Property Tax Reduction Fund — to account for activity relating to the
Property Tax Reduction Fund.
Westlake Academy Fund — to account for all financial resources of the
Academy.
FM 1938 Fund — to account for activity relating to the FM 1938 Fund.
Vehicle and Equipment Replacement Fund — to account for activity
relating to the Vehicle and Equipment Replacement Fund.
Lone Star Public Facilities Corporation — to account for activity relating
to the Lone Star Public Facilities Corporation.
4B Economic Development Corporation — to account for activity relating
to 4B Economic Development Corporation.
Economic Development Fund — to account for activity relating to the
Economic Development Fund.
Debt Service Fund — to account for resources accumulated and payments made
for principal and interest on long-term general obligation debt of governmental
funds in a Debt Service Fund.
Capital Proiects Fund —to account for proceeds from long-term financing and
revenue and expenditures related to authorized construction and other capital asset
acquisitions.
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 fund:
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.
(continued)
39
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Private -sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both government -wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments also have the option of following
subsequent private -sector guidance for their business -type activities and Enterprise Funds,
subject to this same limitation. The Town has elected not to follow subsequent private -sector
guidance.
As a general rule, the effect of interfund activity has been eliminated from the government -
wide financial statements. Exceptions to this general rule are charges between the Town's
water and wastewater function and various other functions of the government. Elimination
of these charges would distort the direct costs and program revenue reported for the various
functions concerned.
Amounts reported as program revenues include: 1) charges to customer or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenue. Likewise, general revenue
includes all taxes.
E. Assets, Liabilities, and Net Assets 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 statues 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
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.
(continued)
40
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Assets, Liabilities, and Net Assets or Equity (Continued)
Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as "due to/from other funds" (i.e., the
current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current
portion of interfund loans. All other outstanding balances between funds are reported as
"due to/from other funds." Any residual balances outstanding between the governmental
activities and business -type activities are reported in the government -wide financial
statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles.
Trade accounts receivable from Hillwood Alliance Group before July 1, 2004 comprises the
trade accounts receivable allowance for uncollectibles. The net property tax receivable
allowance is equal to 25 percent of outstanding property taxes at September 30, 2011.
The Town's property taxes are levied on October 1 on the assessed value listed as of the prior
January 1 for all real and business personal property located in the Town. Assessed values
are established at 100% of estimated market value. Property taxes attach as an enforceable
lien on property as of January 1. Taxes are due by January 31 following the October 1 levy
date and are considered delinquent after January 31 of each year.
Restricted Assets
Certain bond proceeds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the balance sheet because their use is limited by applicable
bond covenants.
Inventories and prepaid items
Inventories, which are expended as they are consumed, are stated at the lower of cost or
market on a first -in, first -out basis.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government -wide and fund financial statements.
(continued)
41
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Assets, Liabilities, and Net Assets or Equity (Continued)
Fund Changes and Transactions Between Funds
Legally authorized transfers are treated as operating transfers and are included in the results
of operations 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.
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 over
three years of life. All infrastructure assets (e.g., roads, bridges, sidewalks, and similar
items), regardless of the acquisition date or amount, have been included. Estimated historical
cost for initial reporting of infrastructure assets (those reported by governmental activities)
was valued by estimating the current replacement cost of the infrastructure and using an
index to deflate the cost to the estimated acquisition/construction year. As the Town
constructs or acquires additional capital assets, including infrastructure assets, they are
capitalized and reported at historical cost.
Depreciation has been calculated on each class of depreciable property using the straight-line
method. Estimated useful lives are as follows:
Assets Years
Water and sewer system
Buildings
Machinery and equipment
Improvements
Information systems and software
(continued)
42
10-50
20-50
3-30
5-30
3
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Assets, Liabilities, and Net Assets or Equity (Continued)
Compensated Absences
The Town's policy allows employees to earn 5 days of vacation and 5 days of sick leave
between six months and one year of service, and 10 days of vacation and 10 days of sick
leave between one year and two years of service and each successive year through five years
of service. After completion of 5 years of service, 15 days of vacation and 15 days of sick
leave per year are earned. After completion of 10 years of service, 20 days of vacation and
20 days of sick leave per year are earned. The Town makes sick and vacation time available
in full at the beginning of each year, and hours are actually earned throughout the year.
Unused, earned vacation hours are paid upon termination or retirement at the employee's
normal hourly rate; accumulated, unused sick time is not payable upon termination or
retirement.
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 assets. Bond premiums and discounts, as well as issuance costs, 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. Bond issuance costs are reported as deferred charges and amortized
over the term of the related debt. 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 Assets
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.
(continued)
43
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Assets, Liabilities, and Net Assets or Equity (Continued)
Fund Equity and Net Assets (Continued)
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.
• 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. This intent can be expressed by the Town council.
• 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 assets represent the difference between
assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital
assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing
used for the acquisition, construction or improvements of those assets, and adding back
unspent proceeds. Net assets are reported as restricted when there are limitations imposed on
their use either 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 City'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 City considers amounts to have been spent first out of
committed funds, then assigned funds, and finally unassigned funds.
(continued)
44
II.
II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Assets, Liabilities, and Net Assets or Equity (Continued)
Fund Equity and Net Assets (Continued)
In the government -wide financial statements, the City's restrictions on net assets are for
amounts that are not available for appropriation. The City's restricted net assets are as
follows:
Restricted for Tourism $ 1,109,365
Restricted for Future projects 4,867,550
Restricted for Debt Service 7,505
Restricted for Education 885,365
Restricted for Economic Development 267,577
Total $ 7,137,362
Estimates
The preparation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent 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.
RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS
Explanation of Certain Differences Between the Governmental Fund Balance Sheet and
the Government -wide Statement of Net Assets
The governmental fund balance sheet includes a reconciliation between fund balance — total
governmental funds and net assets — governmental activities as reported in the government -wide
statement of net assets. One element of that reconciliation explains, "Long-term liabilities are
not due and payable in the current period and therefore are not reported in the funds." The
details of this $21,473,750 difference are as follows:
Certificates of obligation bonds $ 21,876,656
Notes payable 50,000
Deferred charges for issuance costs (to be amortized
over life of debt) (919,700)
Compensated absences 75,235
Accrued interest payable 391,559
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities $ 21,473,750
(continued)
45
II. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Explanation of Certain Differences Between the Governmental Fund Statement of
Revenue, Expenditures and Changes in Fund Balances and the Government -wide
Statement of Activities
The governmental fund statement of revenues, expenditures and changes in fund balances
includes a reconciliation between net changes in fund balances — total governmental fund and
changes in net assets of governmental activities as reported in the government -wide statement of
activities. One element of that reconciliation explains, "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." The details of
this $614,141 difference are as follows:
Capital contributions $ 425,900
Capital outlay ($70,455 reclassified to expense repairs) 1,040,648
Depreciation expense (852,407)
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities $ 614,141
Another element of that reconciliation states, "The issuance of long-term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. Also, governmental funds report the
effect of issuance costs, premiums, and similar items when debt is first issued, whereas these
amounts are deferred and amortized in the statement of activities. Details of this $1,527,986
difference are as follows:
Principal repayments:
General obligation debt
Deferred rebates
Debt issuance:
General obligation debt
Bond issuance costs
Note payable
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities
(continued)
46
$ 555,000
25,568
(2,095,000)
36,446
(50,000)
$ (1,527,986)
II. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Explanation of Certain Differences Between the Governmental Fund Statement of
Revenue, Expenditures and Changes in Fund Balances and the Government -wide
Statement of Activities (Continued)
Another element of that reconciliation states, "Some expenses reported in the statement of
activities do not require the use of current financial resources and therefore are not reported as
expenditures in governmental funds." The details of this $56,646 difference are as follows:
Accrued interest $ 16,183
Compensated absences (12,110)
Amortization of deferred charge on refunding (44,336)
Amortization of issuance costs (16,383
Net adjustment to decrease net changes in fund balances -
total governmental funds to arrive at changes in net
assets ofgovernmental activities $ (56,646)
III. DETAILED NOTES ON ALL FUNDS
Deposits 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 Town did not engage in repurchase or reverse repurchase agreement transactions during the
current year.
During the year ended September 30, 2011, 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.
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 71"
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.
(continued)
47
III. DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and Investments (Continued)
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:
At September 30, 2011, the Town's investments included investment pools in the name of
the Town or its agent in the Town's name. The Town's investments were as follows:
Minimum Rating
Carrying Fair Legal as of
Primary government Amount Value Rating Year-end
Investments:
TexPool $ 372 $ 372 N/A AAA -m
Certificates of deposit 3,500,244 3,500,244 N/A AAA -A
Cash 9,269,276 9,269,276 N/A N/A
Total cash and investments $ 12,769,892 $ 12,769,892
Reconciliation of total cash and investments at September 30, 2011, are as follows:
Cash and cash equivalents
Restricted cash and investments
Total cash and investments
(continued)
48
$ 12,197,649
572,243
$ 12,769,892
Maximum
Maximum
Authorized
Maximum
Percentage
Investment
Investment Type
Maturity
of Portfolio
in One Issuer
Obligations of, or guaranteed by
Governmental entities
2 years
None
None
Certificates of deposit
1 year
None
None
Mutual funds
2 years
80%
None
Investment pools
-
None
None
At September 30, 2011, the Town's investments included investment pools in the name of
the Town or its agent in the Town's name. The Town's investments were as follows:
Minimum Rating
Carrying Fair Legal as of
Primary government Amount Value Rating Year-end
Investments:
TexPool $ 372 $ 372 N/A AAA -m
Certificates of deposit 3,500,244 3,500,244 N/A AAA -A
Cash 9,269,276 9,269,276 N/A N/A
Total cash and investments $ 12,769,892 $ 12,769,892
Reconciliation of total cash and investments at September 30, 2011, are as follows:
Cash and cash equivalents
Restricted cash and investments
Total cash and investments
(continued)
48
$ 12,197,649
572,243
$ 12,769,892
III. DETAILED NOTES ON ALL FUNDS (Continued)
Deposits and Investments (Continued)
The Town's entire cash deposits in the bank of $9,527,442 on September 30, 2011, were covered
by federal depository insurance or by collateral.
Component units
Investments:
Carrying
Amount Fair Value
Cash and cash equivalents $ 11,253,838 $ 11,253,838
Total $ 11,253,838 $ 11,253,838
Weighted Average
Maturity (Days)
N/A
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 less than
29 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. The Town has negotiated an interest
rate for all checking account deposits; therefore, cash is considered in the balance of our
investments.
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 above 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.
(continued)
49
III. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets
Capital asset activity for the year ended September 30, 2011, was as follows:
Primary Government
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total assets not being depreciated
Capital assets, being depreciated:
Capital improvements
Buildings
Machinery and equipment
Information systems and software
Total capital assets being depreciated
Less accumulated depreciation:
Capital improvements
Buildings
Machinery and equipment
Information systems and software
Total accumulated depreciation
Total capital assets being
depreciated, net
Governmental activities capital
assets, net
Business -type activities:
Capital assets, not being depreciated:
Construction in progress
Total assets not being depreciated
Capital assets, being depreciated:
Capital improvements
Wastewater treatment rights
Machinery and equipment
Total capital assets being depreciated
Less accumulated depreciation:
Capital improvements
Wastewater treatment rights
Machinery and equipment
Total accumulated depreciation
Total capital assets being
depreciated, net
Beginning
35,468 $
$ 35,468
Ending
Balance
Increases
Decreases
Balance
13,099,180
635,199
-
635,199
$ 11,530,663
$ 366,000
$
$ 11,896,663
74,921
573,019
2,841,111
647,940
11,605,584
939,019
31,760
12,544,603
1,159,580
116,386
1,275,966
4,323,584
4,920,606
302,213
12,692,719 (
51222,819
21,260,483
137,985
21,398,468
2,349,076
87,331
19,985
2,416,422
52,430
52,430
28,582,595
527,529
19,985
29,090,139
2,687,176
173,955
-
2,861,131
2,773,983
426,293
-
31200,276
1,622,854
252,159
19,985
1,855,028
52,430
-
-
52,430
7,136,443
852,407
19,985
7,968,865
21,446,152
( 324,878)
-
21,121,274
$ 33,051,736
$ 614,141
$
$ 33,665,877
$ $
35,468 $
$ 35,468
-
35,468
35,468
12,921,283
177,897
13,099,180
635,199
-
635,199
3,459,821
-
3,459,821
17,016,303
177,897
17,194,200
2,841,111
302,527
31143,638
322,893
31,760
354,653
1,159,580
116,386
1,275,966
4,323,584
450,673
4,774,257
12,692,719 (
272,776)
12,419,943
Business -type activities capital
assets, net $ 12,692,719 $( 237,308) $ $ 12,455,411
(continued)
50
III. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets (Continued)
Depreciation was charged to departments of the primary government as follows:
Governmental activities:
General government $ 667,418
Public safety 32,065
Public works 152,924
Total depreciation expense - governmental activities $ 852,407
A summary of discretely presented component units' capital assets at September 30, 2011,
follows:
Texas Student Housing Authority - Ballpark Austin Project
Beginning Ending
Balance Additions Deletions Balance
Capital assets, not being depreciated:
Land
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Building
Furniture and fixtures
Total capital assets,
being depreciated
Less accumulated depreciation for:
Building
Furniture and fixtures
Total accumulated depreciation
Total capital assets,
being depreciated, net
Capital assets, net
$ 4,788,265
$ - $ -
$ 4,788,265
4,788,265
- -
4,788,265
21,345,305
- -
21,345,305
6,993,063
- -
6,993,063
28,338,368
- -
28,338,368
6,166,421
711,510 -
6,877,931
3,810,852
149,166 -
3,960,018
9,977,273
860,676 -
10,837,949
18,361,095
( 860,676) -
17,500,419
$ 23,149,360
$( 860,676) $ -
$ 22,288,684
(continued)
51
III. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets (Continued)
Texas Student Housing Corporation - The Ridge at North Texas
Beginning Ending
Balance Additions Deletions Balance
Capital assets, not being depreciated:
Land
$ 2,200,000 $
- $ - $
2,200,000
Total capital assets,
not being depreciated
2,200,000
- -
2,200,000
Capital assets, being depreciated:
Building
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 for:
Building
6,844,707
856,833 ( 1,223,807)
8,925,347
Furniture and fixtures
2,368,387
11,255 1,223,807
1,155,835
Total accumulated depreciation
9,213,094
868,088 -
10,081,182
Total capital assets,
being depreciated, net
17,745,747 (
868,088) -
16,877,659
Capital assets, net
$ 19,945,747 $(
868,088) $ - $
19,077,659
(continued)
52
III. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets (Continued)
Texas Student Housing Authority - Town Lake Austin Project
Beginning Ending
Balance Additions Retirements Balance
Capital assets, not being depreciated:
Land
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Building and improvements
Capitalized purchase costs
Land improvements
Unit appliances
Furniture and fixtures
Total capital assets,
being depreciated
Less accumulated depreciation for:
Building and improvements
Capitalized purchase costs
Land improvements
Unit appliances
Furniture and fixtures
Total accumulated depreciation
Total capital assets,
being depreciated, net
Capital assets, net
$ 2,182,816
$ - $
- $ 2,182,816
2,182,816
-
- 2,182,816
13,270,150
-
- 13,270,150
887,095
-
- 887,095
2,806,596
-
- 2,806,596
295,134
-
- 295,134
915,951
-
- 915,951
18,174,926
-
- 18,174,926
3,604,377
627,487 (
4,344) 4,236,208
203,732
28,484
4,344 227,872
374,212
-
- 374,212
168,648
-
- 168,648
523,266
-
- 523,266
4,874,235
655,971
- 5,530,206
13,300,691
( 655,971)
- 12,644,720
$ 15,483,507
$( 655,971) $
- $ 14,827,536
(continued)
53
III. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Assets (Continued)
Texas Student Housing Authority - College Station
Project
Beginning
Ending
Balance
Additions Retirements
Balance
Capital assets, not being depreciated:
Land
$ 2,899,597
$ - $ - $
2,899,597
Total capital assets,
not being depreciated
2,899,597
- -
2,899,597
Capital assets, being depreciated:
Building
27,727,646
- -
27,727,646
Furniture and fixtures
2,594,804
- -
2,594,804
Total capital assets,
being depreciated
30,322,450
- -
30,322,450
Less accumulated depreciation for:
Building
5,268,464
895,421 -
6,163,885
Furniture and fixtures
2,506,611
88,772 -
2,595,383
Total accumulated depreciation
7,775,075
984,193 -
8,759,268
Total capital assets,
being depreciated, net
22,547,375
( 984,193) -
21,563,182
Capital assets, net
$ 25,446,972
$( 984,193) $ - $
24,462,779
Restricted Cash
General Fund
Within the governmental funds, $428,463 in cash and cash equivalents represents funds held to
assist in the financing of future projects and court security and technology.
Proprietary Fund
Within the proprietary funds, $143,780 of the fund represents customer deposits received for
water and sewer usage that are refundable upon termination of service.
Discretely Presented Component Units
Within the discretely presented component units, $4,737,253 in cash and cash equivalents
represents funds held for debt service.
(continued)
54
III. DETAILED NOTES ON ALL FUNDS (Continued)
Capital Leases
The Town entered into a lease agreement as lessee for financing the acquisition of a vehicle for
the warrant division of the municipal court. The lease agreement qualifies as a capital lease for
accounting purposes and, therefore, has been recorded at the present value of their future
minimum lease payments as of the inception date.
Governmental
Activities
Asset:
Machinery and equipment $ 23,000
Less: Accumulated depreciation (23,000)
Total $ -
General Lone -term Debt
Long-term liability activity for the year ended September 30, 2011, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Combination tax and limited
Pledge Revenue Certificates
of Obligation, Series 2002 $
Combination tax and limited
Pledge Revenue Certificates
of Obligation, Series 2003
General Obligation Refunding
Bonds, Series 2007
Less deferred amounts
on refunding
General Obligation
Bonds, Series 2008
Combination tax and
Revenue Certificates
4,880,000 $
- $ 280,000 $
4,600,000 $
295,000
5,675,000
- 160,000
5,515,000
165,000
7,310,000
- 25,000
7,285,000
25,000
596,680)
- ( 44,336) (
552,344)
-
2,320,000
- 90,000
2,230,000
95,000
of Obligation, Series 2011 - 2,095,000 - 2,095,000 88,000
Notes payable - 50,000 - 50,000 15,925
Compensated absences 63,125 43,441 31,331 75,235 7,524
Fidelity Tax Reimbursement 177,224 - 25,568 151,656 27,038
$ 19,828,669 $ 2,188,441 $ 567,563 $ 21,449,547 $ 718,487
(continued)
55
III. DETAILED NOTES ON ALL FUNDS (Continued)
General Long-term Debt (Continued)
The Certificates of Obligation, Series 2002 and 2003 require the Town to provide certain
updated financial information and operating data to certain information vendors annually, as
permitted by SEC Rule 15c2-12 (the "Rule"). The issuer will provide the updated information to
each nationally recognized municipal securities information repository ("NRMSIR") and to any
state information depository ("SID") that is designated by the State of Texas and approved by the
staff of the United States Securities and Exchange Commission (the "SEC").
During the fiscal year ended September 30, 2008, the Town issued General Obligation bonds of
$2.5 million. These bonds were used for the construction of an Arts & Sciences Center that was
completed during the current fiscal year.
During the fiscal year ended September 30, 2011, the Town issued Certificates of Obligation in
the amount of $2,095,000 for various street projects.
Debt service requirements of certificates of obligation and general obligations to be retired from
governmental funds are as follows:
Year Ending
September 30,
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
2032-2036
Total
During the fiscal year ended September 30, 2011, the Town entered into a note payable in the
amount of $50,000 for the purchase of two heart monitors for the EMS/Fire Department.
Debt service requirements for the note payable to be retired from governmental funds are as
follows:
Year Ending Total
September 30, Principal Interest Requirements
2012 $ 15,925 $ 2,295 $ 18,220
2013 16,655 1,565 18,220
2014 17,420 800 18,220
Total $ 50,000 $ 4,660 $ 54,660
(continued)
56
Total
Principal
Interest
Requirements
$ 668,000
$ 985,107
$ 1,653,107
700,000
952,293
1,652,293
733,000
917,697
1,650,697
772,000
881,146
1,653,146
810,000
842,366
1,652,366
4,485,000
3,794,748
8,279,748
5,716,000
2,545,755
8,261,755
6,581,000
1,147,374
7,728,374
1,260,000
56,160
1,316,160
$ 21,725,000
$ 12,122,646
$ 33,847,646
During the fiscal year ended September 30, 2011, the Town entered into a note payable in the
amount of $50,000 for the purchase of two heart monitors for the EMS/Fire Department.
Debt service requirements for the note payable to be retired from governmental funds are as
follows:
Year Ending Total
September 30, Principal Interest Requirements
2012 $ 15,925 $ 2,295 $ 18,220
2013 16,655 1,565 18,220
2014 17,420 800 18,220
Total $ 50,000 $ 4,660 $ 54,660
(continued)
56
III. DETAILED NOTES ON ALL FUNDS (Continued)
General Long-term Debt (Continued)
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 15 annual equal installments for sales tax rebate due and payable to
Fidelity. The amount due will not bear interest. The loan is discounted to present value and
amortized over the life of the loan using the effective interest method.
Debt service requirements for deferred rebates to be retired from governmental funds are as follows:
Year Ending
Total
September 30,
Principal
Interest
Requirements
2012
$ 27,038
$ 8,720
$ 35,758
2013
28,593
7,165
35,758
2014
30,237
5,521
35,758
2015
31,975
3,783
35,758
2016
33,813
1,945
35,758
Total
$ 151,656
$ 27,134
$ 178,790
Compensated absences are typically liquidated by the fund to which they relate.
Proprietary Long-term Debt
Proprietary long-term debt as of September 30, 2011, is as follows:
Outstanding Outstanding Current
Description 9/30/2010 Issued Retired 9/30/2011 Portion
Contractual obligations:
Elevated water storage
$ 978,944 $
Limited pledge contractual
obligation:
Dove Road Water Line and
West Pump Station 4,679,944
$ 78,508 $ 900,436 $ 81,712
4,679,944 -
Compensated absences 9,804 3,484 3,839 9,449 945
$ 5,668,692 $ 3,484 $ 82,347 $ 5,589,829 $ 82,657
(continued)
57
III. DETAILED NOTES ON ALL FUNDS (Continued)
Proprietary Long-term Debt (Continued)
The schedule of future payments by the Town under these agreements is as follows:
Year Ending
September 30,
Principal
Interest
Total
Requirements
2012
$ 81,712
$ 635,374
$ 717,086
2013
86,519
673,918
760,437
2014
91,325
715,078
806,403
2015
94,530
759,191
853,721
2016
99,336
806,474
905,810
2017-2021
447,014
4,494,037
4,941,051
2022-2026
4,679,944
-
4,679,944
Total
$ 5,580,380
$ 8,084,072
$ 13,664,452
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%.
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.
(continued)
58
III. DETAILED NOTES ON ALL FUNDS (Continued)
Discretely Presented Long-term Debt
Texas Student Housing Authority - College Station Project
The Project's installment note payable is summarized as follows:
Interest
Lender/Security/Due Date Rate
Balance
Cambridge Student Housing Financing Company,
L.P.; substantially all assets and assignment of
rents; due November 1, 2039 8.00% $ 31,095,000
The Project's installment note is payable monthly with principal and interest payments of
$231,545 until November 1, 2039.
The following is a summary of long-term debt transactions of the Project for the year ended
August 31, 2011:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
$ 31,450,000 $ - $ 355,000 $ 31,095,000 $ 31,095,000
The Project's original developer refinanced the installment note through a secondary offering
with Cambridge Student Housing Financing Company, L.P. The debt certificates were sold to
private investors in the following classes:
Class (Series) Offering Total
A $ 16,720,000
B 4,175,000
C 4,820,000
D 5,380,000
Total $ 31,095,000
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 August 31, 2011, the Project was not in compliance with the fixed charge coverage ratio.
Should the project default, 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.
(continued)
59
III. DETAILED NOTES ON ALL FUNDS (Continued)
Discretely Presented Long-term Debt (Continued)
Texas Student Housing Authority - Town Lake Austin Project
Beginning
Balance
Revenue Bonds:
Increases Decreases Ending Balance
Amounts Due
Within One
Year
2002 A-1 Bonds
$ 16,056,004 $ -
$ 258,488 $
15,797,516 $ 281,080
2002 A-2 Bonds
5,089,241 -
-
5,089,241 -
Total
$ 21,145,245 $ -
$ 258,488 $
20,886,757 $ 281,080
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. The future
debt service requirements of the bonds are as follows:
Revenue Bonds:
Year Ending
August 31,
Principal
Interest
Total
2011
$ 281,080
$ 1,610,557
$ 1,891,637
2012
305,354
1,587,954
1,893,308
2013
328,105
1,563,532
1,891,637
2014
354,491
1,537,146
1,891,637
2015
382,998
1,508,639
1,891,637
2016-2020
2,429,604
7,028,581
9,458,185
2021-2025
3,576,784
5,881,401
9,458,185
2026-2030
5,265,627
4,192,558
9,458,185
2031-2033
7,962,714
1,037,383
9,000,097
Totals
$ 20,886,757
$ 25,947,751
$ 46,834,508
Texas Student Housing Authority - Ballpark Austin Project
The long-term debt activity of the Ballpark Austin Project is as follows:
Amounts
Beginning
Ending
Due Within
Balance
Increases Decreases
Balance
One Year
Revenue Bonds:
2001A Bonds $
30,150,000
$ - $ 640,000 $
29,510,000
$ 670,000
2001B Bonds
2,365,000
- -
2,365,000
230,000
2001C Bonds
3,000,000
- -
3,000,000
-
Less discounts (
1,281,821)
- ( 60,085) (
1,221,736)
-
Total $
34,233,179
$ - $ 579,915 $
33,653,264
$ 900,000
(continued)
60
III. DETAILED NOTES ON ALL FUNDS (Continued)
Discretely Presented Long-term Debt (Continued)
Texas Student Housing Authority - Ballpark Austin Project (Continued)
The bonds are payable solely from the revenues generated by the Project and secured by the
revenues pledged and assigned under the terms of the trust indenture. Interest rates on the bonds
range from 4.00% to 11.00% and are payable semi-annually. The debt service requirements of
the bonds are as follows:
Year Ending
Governmental Activities
August 31,
Principal
Interest
Total
2012
$ 900,000
$ 2,247,194 $
3,147,194
2013
755,000
2,208,144
2,963,144
2014
795,000
2,166,875
2,961,875
2015
840,000
2,123,456
2,963,456
2016
885,000
2,077,550
2,962,550
2017-2021
5,205,000
9,606,319
14,811,319
2022-2026
6,795,000
8,012,963
14,807,963
2027-2031
8,920,000
5,891,837
14,811,837
2032-2034
9,780,000
1,618,400
11,398,400
$ 28,305,191
Totals
$ 34,875,000
$ 35,952,738 $
70,827,738
At August 31, 2011, the Project had not made interest payments on the Subordinate 2001C
Bond Series since July 2003, and the Subordinate 2001 C Bond is in default. In addition, the
Project's fixed charges coverage ratio was not in compliance with the covenants of the
indenture. These events do not constitute an event of default that accelerates the bonds. As a
result, the maturities are presented under the original repayment terms.
Texas Student Housing Corporation - The Ridge at North Texas
The long-term debt activity of the Ridge at North Texas is as follows:
(continued)
61
Amounts
Beginning
Ending
Due Within
Balance Increases
Decreases
Balance
One Year
Revenue Bonds:
2001A Bonds
$ 26,380,000 $ -
$ 605,000
$ 25,775,000
$ 25,775,000
2001B Bonds
3,240,000 -
-
3,240,000
3,240,000
Less discounts
( 747,294) -
( 37,485)
( 709,809)
( 709,809)
Total
$ 28,872,706 $ -
$ 567,515
$ 28,305,191
$ 28,305,191
(continued)
61
III. DETAILED NOTES ON ALL FUNDS (Continued)
Discretely Presented Long-term Debt (Continued)
Texas Student Housing Corporation - The Ridge at North Texas (Continued)
The debt originally was to be amortized through 2031 with varying monthly principal payment
amounts ranging from $2,618,093 to $3,465,280 for interest and principal. The annual
requirements to amortize all debts outstanding as of August 31, 2011, are as follows and have not
been adjusted for the default of the bonds. Under the original terms of the Indenture, a total of
$605,000 in principal and $2,013,093 in interest is due in fiscal 2011. The total interest to be
paid will depend on the ultimate maturities of the bonds.
Year Ending
August 31,
2011
Principal
$ 29,015,000
Interest
$ 25,519,133
Total
$ 54,534,133
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.
Deferred Revenue
Deferred revenue in the proprietary fund of $415,170 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 20, 25 and 30 -year leases with Verizon Southwest, one 5 -year lease with MCI
Metro and one 5 -year lease with L3 Communications for use of the Town's Ductbank.
Commitments and Contingencies
Lease Obligations
The Town has commitments relative to municipal services, and contractual relationships
concerning certain utilities and public safety resources, which are normal in its ongoing activity.
Noncancellable obligations consist of agreements for services at September 30, 2011.
Minimum lease payments and contractual obligations under these noncancellable leases and
agreements as of September 30, 2011, are as follows:
Year Ending
September 30, Amount
2012 $ 129,318
Total $ 129,318
Rental expenditures in 2011 were $219,256.
(continued)
62
III. DETAILED NOTES ON ALL FUNDS (Continued)
Commitments and Contingencies (Continued)
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.
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, 2011, were as
follows:
Westlake
Source Academy Total
Federal program revenues:
U. S. Department of Education - Passed
through State Department of Education $ 157,445 $ 157,445
Total federal program revenues: $ 157,445 $ 157,445
State program revenues:
State Department of Education $ 3,945,658 $ 3,945,658
(continued)
63
III. DETAILED NOTES ON ALL FUNDS (Continued)
Interfund Balances and Transactions
Interfund receivables and payables at September 30, 2011, were as follows:
The 4B Economic Development Corporation fund (4B) amount of $118,550 payable to the
Property Tax Reduction fund (PTR) is related to payments to the Debt Service fund (DS) on
behalf of the 4B fund which will be repaid in fiscal year 2012. The PTR Fund amount of
$296,555 payable to the General fund (GF) is a total of the $118,550 due from 4B and two
months of sales tax receivable of $178,005 to be paid to GF in fiscal year 2012 to close out this
fund. The amount payable to the 4B fund from the Utility fund (UF) is related to an interfund
loan made for several waterlines and connections and is scheduled to be repaid at a rate of
$29,731 per year through fiscal year 2018-2019.
(continued)
64
Due from
Due to
Other Funds
Other Funds
General fund:
Property tax reduction fund
$ 296,555
$ -
Property tax reduction fund:
General fund
-
296,555
4B Economic Development Corporation fund
118,550
-
4B Economic Development Corporation fund:
Property Tax Reduction fund
-
118,550
Utility fund
208,115
-
Utility fund:
4B Economic Development Corporation fund
-
208,115
$ 623,220
$ 623,220
The 4B Economic Development Corporation fund (4B) amount of $118,550 payable to the
Property Tax Reduction fund (PTR) is related to payments to the Debt Service fund (DS) on
behalf of the 4B fund which will be repaid in fiscal year 2012. The PTR Fund amount of
$296,555 payable to the General fund (GF) is a total of the $118,550 due from 4B and two
months of sales tax receivable of $178,005 to be paid to GF in fiscal year 2012 to close out this
fund. The amount payable to the 4B fund from the Utility fund (UF) is related to an interfund
loan made for several waterlines and connections and is scheduled to be repaid at a rate of
$29,731 per year through fiscal year 2018-2019.
(continued)
64
III. DETAILED NOTES ON ALL FUNDS (Continued)
Interfund Balances and Transactions (Continued)
Interfund transfers between the primary government's funds consisted of:
Primary Government
General fund:
Visitors Association fund
Economic Development fund
Capital Projects fund
FM 1938 fund
Property Tax Reduction fund
Vehicle and Equipment Replacement fund
Utility fund
Lone Star Public Facility Corporation
4B Economic Development Corporation fund
General maintenance
Visitors Association fund:
General fund
Debt service fund
Debt Service fund:
Visitors Association fund
4B Economic Development Corporation fund
Property Tax Reduction fund
Capital Projects fund:
General fund
Property Tax Reduction fund
FM 1938 fund:
General fund
Property Tax Reduction fund:
General fund
Debt Service fund
Capital Projects fund
Vehicle and Equipment Replacement fund
Vehicle and Equipment Replacement fund:
General fund
Property Tax Reduction fund
Economic Development fund:
General fund
Lone Star Public Facility Corporation:
General fund
4B Economic Development Corporation fund:
General fund
Debt Service fund
Utility fund:
General fund
Transfers
To Funds
35,605
2,085,520
1,875
68,982
500,000
262
180,935
4,515
1,398,822
76,102
1,196,239
10,000
129,374
102
112
1,248,502
145,216
Transfers
From Funds
262
4,515
1,398,822
129,374
145,216
102
112
500,000
180,935
1,248,502
76,102
2,085,520
1,196,239
1,875
68,982
10,000
35,605
Totals $ 7,082,163 $ 7,082,163
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.
(continued)
65
III. DETAILED NOTES ON ALL FUNDS (Continued)
Interfund Balances and Transactions (Continued)
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 and Property Tax Reduction fund revenues to Capital
Project fund as determined by the Council for capital projects, (5) close the Vehicle and
Equipment Replacement fund by transferring the balance to General Maintenance fund for
future expenditures, and (6) transfer payment for economic development agreements to the
Economic Development fund.
Receivables
Receivables:
Sales tax
Property tax
Other taxes
Franchise fees
Accounts
Other
Gross receivables
Less: Allowance
for uncollectibles
Net total receivables
Enterprise
Governmental Funds Funds
Debt Property Tax Economic Westlake
Visitors Westlake Service Capital Reduction Development 4B Utility
General Association Academy Fund Projects Fund Fund Corporation Fund Total
$ 33,136 $ $ $ - $ $ 178,005 $
6,191 155 -
5,376 79,895 -
132,710 -
88,716 199 466,646 - 1,649
266,129 80,094 466,646 155 1,649 178,005
104,499 $ 178,004 $ $ 493,644
- - 6,346
85,271
132,710
1,381,897 1,381,897
- 539 557,749
104,499 178,004 1,382,436 2,657,617
1,548 - - 39 - - - 221,111 222,698
$ 264,581 $ 80,094 $ 466,646 $ 116 $ 1,649 $ 178,005 $ 104,499 $ 178,004 $ f,161,325 $ 2,434,919
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, 2011 was $1,015,869.
IV. OTHER INFORMATION
Retirement Plan
Plan Description
The Town provides pension benefits for all of its eligible employees through a non-traditional,
joint contributory, hybrid defined benefit plan in the statewide Texas Municipal Retirement System
(TMRS), an agent multiple -employer public employee retirement system. The plan provisions that
have been adopted by the Town are within the options available in the governing state statutes of
TMRS.
(continued)
66
IV. OTHER INFORMATION (Continued)
Retirement Plan (Continued)
Plan Description (Continued)
TMRS issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information (RSI) for TMRS; the report also provides
detailed explanations of the contributions, benefits and actuarial methods and assumptions used
by the System. This report may be obtained by writing to TMRS, P. O. Box 149153, Austin,
Texas 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS'
website at www.TMRS.com.
The plan provisions are adopted by the governing body of the Town, within the options available
in the state statutes governing TMRS. Plan provisions for the Town were as follows:
Plan Year 2010
Employee deposit rate
7.0%
Matching ratio (town to employee)
2 to 1
Years required for vesting
5
Service retirement eligibility
(expressed as age/years of service)
60/5,0/20
Updated service credit
100% repeating,
transfers
Annuity increase (to retirees)
0% of CPI
repeating
Contributions
Plan Year 2011
7.0%
2 to 1
5
60/5,0/20
100% repeating,
transfers
0% of CPI
repeating
Under the state law governing TMRS, the contribution rate for each town is determined annually
by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the
normal cost contribution rate and the prior service cost contribution rate, which is calculated to
be a level percent of payroll from year to year. The normal cost contribution rate finances the
portion of an active member's projected benefit allocated annually; the prior service contribution
rate amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period for
that city. Both the normal cost and prior service contribution rates include recognition of the
projected impact of annually repeating benefits, such as Updated Service Credits and Annuity
Increases.
(continued)
67
IV. OTHER INFORMATION (Continued)
Retirement Plan (Continued)
Contributions (Continued)
The Town contributes to the TMRS Plan at an actuarially determined rate. Both the employees
and the Town make contributions monthly. Since the Town needs to know its contribution rate
in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that
serves as the basis for the rate and the calendar year when the rate goes into effect.
Accounting Annual
Year Pension
Ending Cost (APC)
Actual
Contribution
Made
Percentage Net
of APC Pension
Contributed Obligation
09/30/09 138,554 138,554 100% $ -
09/30/10 130,590 130,590 100% -
09/30/11 151,868 151,868 100% -
The required contribution rates for fiscal year 2011 were determined as part of the December 31,
2008 and 2009 actuarial valuations. Additional information as of the latest actuarial valuation,
December 31, 2010, also follows:
Valuation Date
12/31/08
12/31/09
12/31/10 -
Restructured
Actuarial Cost Method
Projected Unit Credit
Projected Unit Credit
Projected Unit Credit
Amortization Method
Level percent
Level percent
Level percent
of payroll
of payroll
of payroll
GASB 25 Equivalent Single
24 years;
23 years;
21.6 years;
Amortization Period
closed period
closed period
closed period
Amortization Period for new
25 years
25 years
25 years
Gains/Losses
Asset Valuation Method
Amortized Cost
10 -year Smoothed
10 -year Smoothed
Market
Market
Actuarial Assumptions:
Investment Rate of Return*
7.5%
7.5%
7.0%
Projected Salary Increases *
Varies by
Varies by
Varies by
age and service
age and service
age and service
Includes Inflation at
3.0%
3.0%
3.0%
Cost -of -Living Adjustments
0.0%
0.0%
0.0%
Funded Status and Funding Progress — In June. 2011, SB 350 was enacted by the Texas
Legislature, resulting in a restructure of the TMRS funds. This legislation provided for the
actuarial valuation to be completed, as if restructuring had occurred on December 31, 2010. In
addition, the actuarial assumptions were updated for the new fund structure, based on an
actuarial experience study that was adopted by the TMRS Board at their May, 2011 meeting (the
review compared actual to expected experience for the four-year period of January 1, 2006
through December 31, 2009). For a complete description of the combined impact of the
legislation and new actuarial assumptions, including the effects on TMRS city rates and funding
ratios, please see the December 31, 2010 TMRS Comprehensive Annual Financial Report
(CAFR).
(continued)
68
IV. OTHER INFORMATION (Continued)
Retirement Plan (Continued)
Contributions (Continued)
The funded status as of December 31, 2010, under the two separate actuarial valuations, is
presented as follows:
Unfunded
Actuarial Actuarial Actuarial Actuarial
Valuation Value of Accrued Funded Accrued Covered
Date Assets Liability Ratio Liability Payroll
12/31/20101 $ 1,631,375 $ 1,997,412
12/31/20102 1,863,399 2,197,161
(1) Actuarial valuation performed under the original fund structure
(2) Actuarial valuation performed under the new fund structure
81.7% $ 366,037 $ 1,534,927
84.8% 333,762 1,534,927
Unfunded Actuarial
Accrued Liability
as a Percentage
of Covered Payroll
23.8%
21.7%
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of events far into the future. Actuarially determined amounts are subject to
continual revision as actual results are compared to past expectations and new estimates are
made about the future.
Actuarial calculations are based on the benefits provided under the terms of the substantive plan
in effect at the time of each valuation, and reflect a long-term perspective. Consistent with that
perspective, actuarial methods and assumptions used include techniques that are designed to
reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The
schedule of funding progress, presented as Required Supplementary Information following the
notes to the financial statements, present multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability of benefits.
Other Postemployment Benefits
Supplemental Death Benefits Fund
The Town also participates in the cost sharing multiple -employer defined benefit group term life
insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the
Supplemental Death Benefits Fund (SDBF). The Town elected, by ordinance to provide group
term life insurance coverage to both current and retired employees. The Town may terminate
coverage under and discontinue participation in the SDBF by adopting an ordinance before
November 1 of any year to be effective the following January 1.
The death benefit for active employees provides a lump sum payment approximately equal to the
employee's annual salary (calculated based on the employee's actual earnings, for the 12 -month
period preceding the month of death); retired employees are insured for $7,500; this coverage is
an "other postemployment benefit," or OPEB.
(continued)
69
IV. OTHER INFORMATION (Continued)
Other Postemployment Benefits (Continued)
Contributions
The Town contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The
funding policy for the SDBF program is to assure that adequate resources are available to meet
all death benefit payments for the upcoming year; the intent is not to pre -fund retiree term life
insurance during employees' entire careers.
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.
Contingent Liabilities
Litigation
The Town and Academy are currently involved in a lawsuit for wrongful termination brought by
the former Head of School and his wife, a former teacher. A settlement was reached in
November 2011 and is being handled by the Academy's insurance carrier. No additional liability
to the Academy is anticipated.
The Town is also involved in a lawsuit to determine the rights of the Town to levy a property tax
and its authority to expend collected tax revenues on school operations at the Academy. The
Town denies any liability. No additional liability to the Town is anticipated.
Various other 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.
(continued)
70
Annual
Actual
Plan/
Required
Contribution
Percentage
Calendar
Contribution
Made
of ARC
Year
(Rate)
(Rate)
Contributed
2009
0.00%
0.00%
100%
2010
0.00%
0.00%
100%
2011
0.00%
0.00%
100%
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.
Contingent Liabilities
Litigation
The Town and Academy are currently involved in a lawsuit for wrongful termination brought by
the former Head of School and his wife, a former teacher. A settlement was reached in
November 2011 and is being handled by the Academy's insurance carrier. No additional liability
to the Academy is anticipated.
The Town is also involved in a lawsuit to determine the rights of the Town to levy a property tax
and its authority to expend collected tax revenues on school operations at the Academy. The
Town denies any liability. No additional liability to the Town is anticipated.
Various other 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.
(continued)
70
IV. OTHER INFORMATION (Continued)
Contingent Liabilities (Continued)
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 MUD 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.
71
REQUIRED
SUPPLEMENTARY INFORMATION
TOWN OF WESTLAKE, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
General Fund
Budgeted Amounts
Original Amended
REVENUES
Taxes
Sales
$ 1,250,000
Property
1,000,430
Mixed beverages
17,750
Franchise
612,000
Interest income
9,235
Building permits and fees
366,855
Fines and penalties
550,190
Contributions from others
11,200
Other miscellaneous income
70,767
Total revenues
3,888,427
EXPENDITURES
Current
General government and administration
1,939,831
Public safety
1,869,111
Cultural and recreational
153,599
Public works
400,654
Capital Outlay
91,324
Total expenditures
4,454,519
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
( 566,092)
OTHER FINANCING SOURCES (USES)
Transfers in
461,537
Transfers out
( 2,120,758)
Notes payable issued
-
Sale of assets
-
Total other financing sources (uses)
( 1,659,221)
NET CHANGE IN FUND BALANCE
( 2,225,313)
FUND BALANCE, BEGINNING
3,792,985
FUND BALANCE, ENDING
$ 1,567,672
72
$ 1,498,500
1,327,901
17,750
583,650
9,520
471,950
598,990
175,200
71,034
4,754,495
2,011,516
1,864,766
158,074
415,424
89,070
4,538,850
215,645
2,080,851
( 2,689,040)
( 608,189)
( 392,544)
3,792,985
$ 1,502,020
1,226,689
19,721
586,836
10,679
520,646
605,705
180,063
91,015
4,743,374
1,733,324
1,842,751
122,400
324,874
41,037
4,064,386
678,988
2,178,403
( 2,691,982)
50,000
7,000
( 456,579)
222,409
3,792,985
Variance
Favorable
(Unfavorable)
$ 3,520
( 101,212)
1,971
3,186
1,159
48,696
6,715
4,863
19,981
( 11,121)
278,192
22,015
35,674
90,550
48,033
474,464
463,343
97,552
2,942)
50,000
7,000
151,610
614,953
$ 3,400,441 $ 4,015,394 $ 614,953
TOWN OF WESTLAKE, TEXAS
VISITORS ASSOCIATION FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
REVENUES
Taxes
Hotel occupancy
Interest income
Other miscellaneous income
Total revenues
EXPENDITURES
Visitors services
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Budgeted Amounts
Original Amended
$ 450,000
1,700
27,275
478,975
$ 515,000
2,900
19,275
537,175
241,962
Variance
356,365
Favorable
Actual
(Unfavorable)
356,365
$ 527,261
$ 12,261
2,750
( 150)
17,890
( 1,385)
547,901
10,726
241,962
245,402
356,365
( 110,963)
241,962
245,402
356,365
( 110,963)
237,013
291,773
191,536
( 100,237)
(355,915)
( 355,915)
( 118,902)
1,100,941
$ 982,039
73
( 355,915)
( 181,197)
174,718
( 355,915)
( 181,197)
174,718
( 64,142)
10,339
74,481
1,100,941
1,100,941
-
$ 1,036,799
$ 1,111,280
$ 74,481
TOWN OF WESTLAKE, TEXAS
WESTLAKE ACADEMY
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED AUGUST 31, 2011
REVENUES
State program revenues
Federal program revenues
Interest income
Other miscellaneous income
Total revenues
EXPENDITURES
Education
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Budgeted Amounts
Original
Amended
$ 3,944,632
$ 3,920,137
2,295
1,700
583,086
668,267
4,530,013
4,590,104
4,425,054
Variance
4,884,985
Favorable
Actual
(Unfavorable)
$ 3,945,658
$ 25,521
157,445
157,445
2,295
595
871,911
203,644
4,977,309
387,205
4,425,054
4,610,062
4,884,985
( 274,923)
4,425,054
4,610,062
4,884,985
( 274,923)
104,959
( 19,958)
92,324
( 112,282)
OTHER FINANCING SOURCES (USES)
Extraordinary item - proceeds from insurance, net -
Transfers out ( 99,272)
Total other fmancing sources (uses) ( 99,272)
NET CHANGE IN FUND BALANCE 5,687
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
767,933
$ 773,620
74
( 91,354)
( 91,354)
( 111,312)
767,933
$ 656,621
56,704
149,028
767,933
$ 916,961
( 56,704)
91,354
( 148,058)
260,340
$ 260,340
TOWN OF WESTLAKE, TEXAS
FM 1938 FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
Variance
Budgeted Amounts Favorable
Original Amended Actual (Unfavorable)
REVENUES
Contributions $ - $ - $ - $ -
Total revenues - - - -
EXPENDITURES
Public Works - - 1,875 ( 1,875)
Total expenditures - - 1,875 ( 1,875)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - ( 1,875) ( 1,875)
OTHER FINANCING SOURCES (USES)
Transfers in - - 1,875 1,875
Total other financing sources (uses) - - 1,875 1,875
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCE, BEGINNING - - - -
FUND BALANCE, ENDING $ - $ - $ - $ -
75
TOWN OF WESTLAKE, TEXAS
PROPERTY TAX REDUCTION FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
REVENUES
Taxes
Sales
Interest income
Total revenues
EXPENDITURES
Debt service
Interest and other fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance
Budgeted Amounts Favorable
Original Amended Actual (Unfavorable)
$ 812,500 $ 1,049,250 $ 1,218,487 $ 169,237
5,800 5,799 2,682 ( 3,117)
818,300 1,055,049 1,221,169 166,120
- 109,757 109,757 -
109,757 109,757 -
818,300 945,292 1,111,412 166,120
1,736,377)
( 1,736,377)
( 918,077)
1,569,751
$ 651,674
76
8,770
2,523,813)
( 2,515,043)
( 1,569,751)
1,569,751
2,681,163)
( 2,681,163)
( 1,569,751)
1,569,751
( 8,770)
( 157,350)
( 166,120)
TOWN OF WESTLAKE, TEXAS
VEHICLE/EQUIPMENT REPLACEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
REVENUES
Interest income
Building permits and fees
Total revenues
EXPENDITURES
Capital Outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
10,000
10,000
( 71,788)
57,256
$( 14,532)
77
76,407
(77,571)
( 1,164)
( 57,256)
57,256
78,982
129,374)
( 50,392)
( 57,256)
57,256
2,575
( 51,803)
( 49,228)
Variance
Budgeted Amounts
Favorable
Original
Amended
Actual
(Unfavorable)
$ -
$ 200
$ 171
$( 29)
-
10,000
10,000
-
-
10,200
10,171
( 29)
81,788
66,292
17,035
49,257
81,788
66,292
17,035
49,257
( 81,788)
( 56,092)
( 6,864)
49,228
10,000
10,000
( 71,788)
57,256
$( 14,532)
77
76,407
(77,571)
( 1,164)
( 57,256)
57,256
78,982
129,374)
( 50,392)
( 57,256)
57,256
2,575
( 51,803)
( 49,228)
TOWN OF WESTLAKE, TEXAS
ECONOMIC DEVELOPMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
REVENUES
Taxes
Sales
Interest income
Total revenues
EXPENDITURES
Economic Development
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance
Budgeted Amounts Favorable
Original Amended Actual (Unfavorable)
$ 375,000 $ 545,000 $ 670,633 $ 125,633
- 10 153 143
375,000 545,010 670,786 125,776
410,758 580,768 706,391
410,758 580,768 706,391
( 35,758) ( 35,758) ( 35,605)
( 125,623)
( 125,623)
153
35,758 35,758 35,605 ( 153)
35,758 35,758 35,605 ( 153)
78
TOWN OF WESTLAKE, TEXAS
LONE STAR PUBLIC FACILITY CORPORATION
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
REVENUES
Interest income
Total revenues
EXPENDITURES
General government
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance
Budgeted Amounts Favorable
Original Amended Actual (Unfavorable)
$ 100 $ 30 $ 35 $ 5
100 30 35 5
100 30 35 5
( 102)
- - ( 102)
100 30 ( 67)
13,598 13,598 13,598
$ 13,698 $ 13,628 $ 13,531
79
( 102)
102)
( 97)
$( 97)
TOWN OF WESTLAKE, TEXAS
4B ECONOMIC DEVELOPMENT CORPORATION
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
80
Variance
Budgeted Amounts
Favorable
Original
Amended
Actual
(Unfavorable)
REVENUES
Taxes
Sales
$ 812,500
$ 1,049,250
$ 1,218,486
$ 169,236
Interest income
-
500
397
( 103)
Total revenues
812,500
1,049,750
1,218,883
169,133
EXPENDITURES
General government
-
-
-
-
Total expenditures
-
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
812,500
1,049,750
1,218,883
169,133
OTHER FINANCING SOURCES (USES)
Transfers out
( 842,231)
( 1,028,962)
( 1,248,614)
( 219,652)
Total other financing sources (uses)
( 842,231)
( 11028,962)
( 1,248,614)
( 219,652)
NET CHANGE IN FUND BALANCE
( 29,731)
20,788
( 29,731)
( 50,519)
FUND BALANCE, BEGINNING
297,308
297,308
297,308
-
FUND BALANCE, ENDING
$ 267,577
$ 318,096
$ 267,577
$( 50,519)
80
TOWN OF WESTLAKE, TEXAS
TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
(unaudited)
(1) Actuarial valuation performed under the original fund structure
(2) Actuarial valuation performed under the new fund structure
81
Unfunded
Unfunded Actuarial
Actuarial
Actuarial
Actuarial
Actuarial
Accrued Liability
Valuation
Value of
Accrued
Funded
Accrued
Covered
as a Percentage
Date
Assets
Liability
Ratio
Liability
Payroll
of Covered Payroll
12/31/2008
$ 1,052,148
$ 1,445,196
72.80%
$ 393,048
$ 1,536,837
25.58%
12/31/2009
1,337,183
1,810,429
73.86%
473,246
1,658,452
28.54%
12/31/20101
1,631,375
1,997,412
81.67%
366,037
1,534,927
23.85%
12/31/20102
1,863,399
2,197,161
84.81%
333,762
1,534,927
21.74%
(1) Actuarial valuation performed under the original fund structure
(2) Actuarial valuation performed under the new fund structure
81
TOWN OF WESTLAKE, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2011
(Unaudited)
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.
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 recoded 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 reappropriated and
honored during the subsequent year.
8. Expenditures exceeded appropriations in the Visitors Association Fund, Westlake Academy,
FM 1938 Fund and Economic Development Fund for the year. These deficits were covered
by additional collections of revenue, unspent budget in other functions and available fund
balance. In addition, transfers out exceeded appropriations in the General Fund, Property Tax
Reduction Fund, Vehicle/Equipment Replacement Fund, Lone Star Public Facility
Corporation and 4B Economic Development Corporation Fund. These excesses were covered
by unspent budget in other functions and available fund balances.
82
INDIVIDUAL FUND SCHEDULE
TOWN OF WESTLAKE, TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011
REVENUES
Taxes
Property
Contributions
Total revenues
EXPENDITURES
Debt service
Principal retirement
Interest and other fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
83
Variance
Final Budgeted Favorable
Amounts Actual (Unfavorable)
$ 32,803 $ 30,557 $( 2,246)
25 29 4
32,828 30,586 ( 2,242)
555,000
555,000 -
975,744
973,620 2,124
1,530,744
1,528,620 2,124
( 1,497,916) ( 1,498,034) ( 118)
1,497,916
1,497,916
1,505,539
1,505,539
7,505
$ - $ 7,505
7,623
7,623
7,505
$ 7,505
STATISTICAL SECTION
STATISTICAL SECTION
(Unaudited)
This part of the Town of Westlake, Texas' comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures and required supplementary information says about the Town's
overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader understand
how the Town's financial performance and well-being have changed
over time. 84-89
Revenue Capacity
These schedules contains 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 Table 9. 90-94
Debt Capacity
These schedules present information to help the reader assess the
affordability of the Town's current levels of outstanding debt and the
Town's ability to issue additional debt in the future. 95-97
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the Town's financial
activities take place. 98-99
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the Town's financial report relates to
the services the Town provides and the activities it performs. 100-102
Sources: Unless otherwise noted, the information in these schedules is derived from annual
financial reports for the relevant year.
Table 1
TOWN OF WESTLAKE, TEXAS
NET ASSETS BY COMPONENT
LAST EIGHT FISCAL YEARS
(Accrual Basis of Accounting- unaudited)
Primary government:
Invested in capital assets, net of related debt
$ 17,202,742 $ 16,426,691
$ 17,608,386
$ 17,744,451
$ 18,040,319
$ 20,593,722 $
Fiscal Year
$ 19,533,952
Restricted
124,185 -
1,406,756
1,719,771
2,004,763
2004
2005
7,137,362
2006
2007
2008
2009
2010
2011
Governmental activities:
1,906,008
Total primary government net assets
$ 17,110,827 $ 16,362,812
$ 20,192,166
$ 20,761,521
$ 21,883,552
$ 24,531,396 $
26,094,630
$ 28,577,322
Invested in capital assets, net of related debt
$
9,084,603
$ 7,975,910
$
9,171,657
$ 9,646,644
$ 10,313,743
$ 13,244,690
$ 13,633,485
$ 12,658,921
Restricted
124,185
-
1,406,756
1,719,771
2,004,763
1,761,067
1,564,868
7,137,362
Unrestricted
1,246,351
1,557,394
3,023,875
3,305,542
3,835,751
4,122,185
5,866,046
3,448,100
Total governmental activities net assets
$
10,455,139
$ 9,533,304
$
13,602,288
$ 14,671,957
$ 16,154,257
$ 19,127,942
$ 21,064,399
$ 23,244,383
Business -type activities:
Invested in capital assets, net of related debt
$
8,118,139
$ 8,450,781
$
8,436,729
$ 8,097,807
$ 7,726,576
$ 7,349,032
$ 7,033,831
$ 6,875,031
Unrestricted
(
1,462,451)
( 1,621,273)
(
1,846,851)
( 2,008,243)
( 1,997,281)
( 1,945,578)
2,003,600)
( 1,542,092)
Total business -type activities net assets
$
6,655,688
$ 6,829,508
$
6,589,878
$ 6,089,564
$ 5,729,295
$ 5,403,454
$ 5,030,231
$ 5,332,939
Primary government:
Invested in capital assets, net of related debt
$ 17,202,742 $ 16,426,691
$ 17,608,386
$ 17,744,451
$ 18,040,319
$ 20,593,722 $
20,667,316
$ 19,533,952
Restricted
124,185 -
1,406,756
1,719,771
2,004,763
1,761,067
1,564,868
7,137,362
Unrestricted
( 216,100) ( 63,879)
1,177,024
1,297,299
1,838,470
2,176,607
3,862,446
1,906,008
Total primary government net assets
$ 17,110,827 $ 16,362,812
$ 20,192,166
$ 20,761,521
$ 21,883,552
$ 24,531,396 $
26,094,630
$ 28,577,322
Note: The Town of Westlake applied GASB Statement 34 in fiscal year ended 9/30/2004; government -wide financial information for years prior is not available
Source: Annual financial reports
84
Table 2
TOWN OF WESTLAKE, TEXAS
CHANGES IN NET ASSETS
LAST EIGHT FISCAL YEARS
(Accrual basis of accounting - Unaudited)
Fiscal Year
2004 2005 2006 2007 2008 2009 2010 2011
EXPENSES
1,705,528
Governmental activities:
1,795,782
General government $
1,862,863
Public Safety
1,604,171
Cultural and Recreational
84,557
Economic Development
53,006
Public Works
533,290
Visitor Services
172,542
Education
1,655,212
Interest on long-term debt
1,012,982
Total governmental activities expenses
6,978,623
Business -type activities:
455,481
Water and Sewer
1,702,081
Cemetery
-
Total business -type activities expenses
1,702,081
Total primary government program expenses $
8,680,704
PROGRAM REVENUES
420,270
Governmental activities:
2,166,256
Fees, fines, and charges for services:
2,672,698
General Government $
713,000
Public Safety
20,752
Public Works
784,546
Education
38,947
Operating grants and contributions
1,605,091
Capital grants and contributions
263,941
Total governmental activities program reveni
3,426,277
Business -type activities:
10,627,981
Charges for services:
11,922,951
Water and Sewer
1,200,660
Cemetery
1,888,064
Operating grants and contributions
-
Capital grants and contributions
-
Total business -type activities program reveni
1,200,660
Total primary government program revenues $
4,626,937
$ 2,162,365 $ 1,811,281 $ 1,941,289 $ 2,031,460 $ 2,203,882 $ 2,272,127 $ 2,478,826
1,592,962
1,705,528
1,738,080
1,795,782
1,939,441
1,698,164
1,801,585
96,617
91,444
86,560
129,641
115,770
105,997
122,400
349,208
35,759
120,753
473,451
207,044
309,653
680,823
342,500
613,956
455,481
1,013,804
1,028,934
594,705
470,054
448,604
393,115
217,992
312,777
341,270
420,270
356,365
2,166,256
2,249,998
2,672,698
3,305,220
3,722,705
4,138,875
4,884,985
1,028,104
1,021,779
869,327
991,184
1,068,935
1,026,026
1,127,913
8,186,616
7,922,860
8,102,180
10,053,319
10,627,981
10,565,817
11,922,951
1,888,064
2,137,831
2,206,618
2,410,765
2,694,407
2,567,675
2,794,235
-
-
-
13,299
473
27,822
5,604
1,888,064
2,137,831
2,206,618
2,424,064
2,694,880
2,595,497
2,799,839
$ 10,074,680
$ 10,060,691
$ 10,308,798
$ 12,477,383
$ 13,322,861
$ 13,161,314
$ 14,722,790
$ 1,039,214
$ 742,176
$ 785,771
$ 522,215
$ 677,948
$ 716,624
$ 721,157
45,213
136,870
165,255
113,755
107,634
80,665
140,600
711,655
699,753
625,340
902,875
594,338
1,597,655
292,572
39,430
98,357
85,925
42,839
98,314
102,406
99,638
1,646,438
3,686,964
1,257,058
1,296,378
1,522,935
853,151
728,242
141,139
1,455,626
-
-
2,059,624
83,250
425,900
3,623,089
6,819,746
2,919,349
2,878,062
5,060,793
3,433,751
2,408,109
1,722,659
1,842,238
1,657,186
2,037,306
2,345,236
2,101,510
3,078,868
2,100
-
5,550
13,300
370,551
19,653
-
-
-
46,810
-
-
-
-
169,034
-
-
-
2,093,210
1,861,891
1,657,186
2,208,440
2,345,236
2,153,870
3,092,168
$ 5,716,299
$ 8,681,637
$ 4,576,535
$ 5,086,502
$ 7,4065029
$ 5,587,621
$ 5,500,277
85
(Continued)
Table 2
TOWN OF WESTLAKE, TEXAS
CHANGES IN NET ASSETS
LAST EIGHT FISCAL YEARS
(Accrual basis of accounting - Unaudited)
Fiscal Year
2004 2005 2006 2007 2008 2009 2010 2011
NET (EXPENSE) REVENUES
Governmental activities $( 3,552,346) $( 4,563,527) $( 1,103,114) $( 5,182,831) $( 7,175,257) $( 5,567,188) $( 7,132,066) $( 9,514,842)
Business -type activities 501,421) 205,146 ( 275,940) ( 549,432) ( 215,624) ( 349,644) ( 441,627) 292,329
Total primary government net expense ( 4,053,767) ( 4,358,381) ( 1,379,054) ( 5,732,263) ( 7,390,881) ( 5,916,832) ( 7,573,693) ( 9,222,513)
GENERAL REVENUES AND OTHER
CHANGES IN NET ASSETS
Governmental activities:
Taxes
Sales
Property
Hotel Occupancy
Mixed Beverage
Franchise
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Transfers
Extraordinary item - proceeds from insurance, net
Gain on sale of capital assets
Total governmental activities
Business -type activities:
Unrestricted grants
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
$ 868,046
$ 994,606 $
1,810,706
$ 2,197,756 $
3,590,575 $
3,664,409
$ 3,790,533
$ 4,609,626
-
-
-
-
-
-
-
1,260,112
440,849
381,221
415,544
458,471
527,662
497,769
457,693
527,261
10,511
13,846
13,674
14,066
16,177
17,869
17,902
19,721
337,222
352,115
457,004
560,312
649,108
624,401
603,233
586,836
937,187
1,722,198
1,822,200
2,259,643
2,500,817
2,960,590
3,484,141
3,744,757
33,180
41,802
98,824
261,622
188,459
61,224
38,383
46,248
134,717
64,047
448,827
466,654
564,973
5685782
676,638
691,345
-
71,857
45,319
33,976
220,819
61,321
-
145,216
-
-
-
-
-
-
-
56,704
-
-
-
-
-
-
-
7,000
2,761,712
3,641,692
5,112,098
6,252,500
8,258,590
8,456,365
9,068,523
11,694,826
9,929
3,245
2,416
25,604
46,158
32,103
7,858
8,334
145,666
-
-
56,025
36,936
44,071
77,266
60,070
( 145,216)
-
( 71,857) (
45,319)
( 33,976) (
220,819) (
61,321)
-
-
3,245
( 69,441)
36,310
49,118 (
144,645)
23,803
68,404
10,379
2,764,957
3,572,251
5,148,408
6,301,618
8,113,945
8,480,168
9,136,927
11,705,205
CHANGE IN NET ASSETS
Governmental activities ( 790,634) ( 921,835) 4,008,984 1,069,669 1,083,333 2,889,177 1,936,457 2,179,984
Business -type activities ( 498,176) 135,705 ( 239,630) ( 500,314) ( 360,269) ( 325,841) ( 373,223) 302,708
Total primary government $( 1,288,810) $( 786,130) $ 3,769,354 $ 569,355 $ 723,064 $ 2,563,336 $ 1,563,234 $ 2,482,692
Note: The Town of Westlake applied GASB Statement 34 in fiscal year ended 9/30/2004; government -wide financial information for years prior is not available.
Source: Annual financial reports (Concluded)
86
General fund
Reserved
Unreserved
Nonspendable:
Prepaid items
Restricted for:
Future projects
Committed for:
Court security and technology
Assigned for:
Future equipment
Unassigned
Total general fund
All other governmental funds
Reserved
Special revenue funds
Unreserved, reported in:
Special revenue funds
Nonspendable:
Prepaid items
Restricted for:
-r
Table 3
TOWN OF WESTLAKE, TEXAS
FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - unaudited)
Fiscal Year
2002 2003 2004
2005
2006
2007
2008
2009
2010 2011
$ - $ - $ 329,608
$ 131,657
$ 434,375
$ 563,176
$ 303,639
$ 193,105
$ 214,750 $ -
1,700,025 1,608,248 670,465
805,769
2,850,789
2,533,123
2,503,099
2,532,207
3,578,235
- - 62,020
- - 219,687
- - 186,776
- - - - 22,000
- - - - - - - 3,524,911
$ 1,700,025 $ 1,608,248 $ 1,000,073 $ 937,426 $ 3,285,164 $ 3,096,299 $ 2,806,738 $ 2,725,312 $ 3,792,985 $ 4,015,394
5,287,758 $ 539,019 $ 818,525 $ 779,244 $ 869,694 $ 1,183,020 $ 1,527,724 $ 1,256,954 $ 1,112,941 $
- - 12,391 181,960 427,720 846,214 1,666,371 1,933,564 2,693,846
- - 33,511
oursm - - 1,109,365
Debt service - - 7,505
Education - - 885,365
Economic development - - 267,577
Future projects - - - - - - - - 4,647,863
Capital projects funds 11,071,320 2,748,579 213,297 - 102,687 102,376 3,233,471 323,009 237,177 -
Total all other governmental funds $ 16,359,078 $ 3,287,598 $ 1,044,213 $ 961,204 $ 1,400,101 $ 2,131,610 $ 6,427,566 $ 3,513,527 $ 4,043,964 $ 6,951,186
Note: Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon
further consideration, the 413 Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units.
Source: Annual financial reports
87
Table 4
TOWN OF WESTLAKE, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - unaudited)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
REVENUES
Taxes
$ 1,863,255 $
1,874,312 $
1,656,628
$ 1,741,788 $
2,696,928 $
3,230,605 $
4,783,522
$ 4,804,448 $
4,869,361 $
7,000,690
Licenses, fees and permits
253,919
508,154
802,060
740,027
748,016
900,121
1,108,083
860,697
1,746,954
530,646
Fines and penalties
401,755
548,375
680,794
1,007,142
751,036
651,090
554,376
523,515
647,170
605,705
State program revenues
-
53,309
995,784
1,597,362
1,925,043
2,387,733
2,673,680
3,163,129
3,687,706
3,945,658
Federal program revenues
-
311,298
462,315
285,392
75,662
49,200
75,207
56,134
199,436
157,445
Investment earnings
351,243
151,591
33,180
41,786
98,824
261,622
188,459
61,224
38,383
46,248
Contributions
-
-
1,286,611
1,324,264
4,964,085
1,079,768
1,048,308
1,264,262
533,400
180,063
Other revenues
233,675
16,099
184,221
292,690
547,184
552,579
607,812
673,400
779,044
980,816
Total revenues
3,103,847
3,463,138
6,101,593
7,030,451
11,806,778
9,112,718
11,039,447
11,406,809
12,501,454
13,447,271
EXPENDITURES
General government
1,592,597
1,087,368
1,725,211
2,243,162
2,542,295
1,385,492
1,516,346
1,519,600
1,644,587
1,733,324
Public safety
1,007,589
1,282,112
1,547,857
1,554,115
1,627,641
1,665,879
1,731,317
1,890,469
1,634,936
1,842,751
Cultural and recreational
10,472
14,043
9,099
96,617
91,444
86,560
129,641
115,770
105,997
122,400
Public works
-
68,979
125,499
112,764
434,716
276,789
846,604
841,822
333,831
326,749
Economic development
1,093,673
56,832
53,006
35,758
35,759
141,197
495,071
229,907
401,879
706,391
Protective inspection
-
187,922
80,935
-
-
-
-
-
-
-
Visitor services
-
131,395
172,542
448,604
393,115
226,992
312,777
341,270
420,270
356,365
Education
-
156,870
1,368,113
1,877,398
2,249,998
2,672,698
3,305,220
3,722,705
4,138,875
4,884,985
Debt service
Principal
-
1,475,400
-
-
350,000
470,000
395,000
593,937
563,703
555,000
Interest
78,012
836,533
986,534
1,028,104
1,028,634
1,240,950
923,944
990,641
977,163
1,083,377
Bond issuance cost
-
-
-
-
-
-
33,000
-
-
36,446
Capital outlay
1,344,137
14,096,533
2,917,185
263,681
371,860
836,787
463,918
4,335,114
682,103
1,023,772
Total expenditures
5,126,480
19,393,987
8,985,981
7,660,203
9,125,462
9,003,344
10,152,838
14,581,235
10,903,344
12,671,560
EXCESS (DEFICIENCY)
OF REVENUES OVER
(UNDER) EXPENDITURES
$( 2,022,633) $(
15,930,849) $(
2,884,388)
$( 629,752) $
2,681,316 $
109,374 $
886,609
$( 3,174,426) $
1,598,110 $
775,711
(Continued)
88
Table 4
TOWN OF WESTLAKE, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting - unaudited)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
OTHER FINANCING
SOURCES (USES):
Proceeds from sale of land $
- $
- $
$ 412,239 $ $
$
-
$ - $ -
$ -
Sale of assets
-
-
- - -
-
- -
7,000
Issuance of debt
12,400,000
6,351,613
- - -
-
2,500,000
117,640 -
2,095,000
Refunding bonds issued
-
-
- - -
7,465,000
-
- -
_
Payments to bond escrow agent
-
-
- - - (
7,088,706)
-
- -
-
Cost to issue debt
- (
451,613)
-
-
Proceeds from capital lease
-
-
-
23,000
-
- -
-
Notes payable issued
-
-
-
-
- -
50,000
Transfer in from comp. unit
-
1,155,912
- -
-
_
_ _
_
Extraordinary item
-
-
- - -
-
-
- -
56,704
Transfers in
588,852
225,000
- 172,010 704,577
1,212,558
2,160,174
2,435,486 1,804,577
7,082,163
Transfers out (
588,852) (
225,000)
- ( 100,153) ( 659,258) (
1,178,582) (
1,939,355)
( 2,374,165) ( 1,804,577)
( 6,936,947)
Total other financing
sources (uses)
12,400,000
7,055,912
484,096 45,319
433,270
2,720,819
178,961 -
2,353,920
Prior period adjustment
-
-
32,828 - 60,000
-
-
- -
-
Correction of an error (
327,235)
- -
-
_
_ _
-
NET CHANGES IN
FUND BALANCES $
10,050,132 $(
8,874,937) $(
2,851,560) $( 145,656) $ 2,786,635 $
542,644 $
3,607,428
$ 2,995,465 $ 1,598,110
$ 3,129,631
DEBT SERVICE AS
A PERCENTAGE
OF NONCAPITAL
EXPENDITURES
2.1%
43.6%
16.3% 13.9% 15.7%
20.9%
14.0%
15.4% 15.0%
14.4%
Note: Economic Development Funds
were classified as special revenue funds through FY 2002 and considered discretely presented
component units
through FY 2007. Upon
further consideration, the 413 Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified
as blended component units.
Source: Annual Financial Reports
(Concluded)
89
Fiscal
Year
2011
TOWN OF WESTLAKE, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
CURRENT FISCAL YEAR
(Modified Accrual Basis of Accounting - unaudited)
Appraised Value
Less:
Real Personal Tax -Exempt
Property Property Property
$ 953,568,803 $ 73,601,266 $ 146,497,994 $
Table 5
Total Taxable Total
Assessed Direct
Value Tax Rate
880,672,075 0.1601
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
90
Tax payer
Table 6
TOWN OF WESTLAKE, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
CURRENT FISCAL YEAR
(Unaudited)
2011
Percentage
Taxable of Total Town
Assessed Taxable
Value Rank Assessed Value
Maguire Thomas Partners, etal
$ 155,957,365
1
17.71%
FMR Texas, LLC/LTD Partnership
154,220,911
2
17.51%
Lexington TNI Westlake LP
18,249,200
3
2.07%
First American Leasing/Real Estate
17,636,457
4
2.00%
DCLI, LLC
13,234,691
5
1.50%
Fidelity Investments
12,277,810
6
1.39%
Levi Strauss & Co.
8,215,271
7
0.93%
Westlake Terra, LLC
7,400,002
8
0.84%
EMC Corp
6,418,484
9
0.73%
Vaquero Club, Inc.
5,383,415
10
0.61%
Total
$ 398,993,606 45.31%
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
91
Taxes Levied
Fiscal for the
Year Fiscal Year
2011 $ 1,409,956
Table 7
TOWN OF WESTLAKE, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
CURRENT FISCAL YEAR
(Unaudited)
Collected within the
Fiscal Year Total Collections
Adjusted of the Levy Collections to Date
Adjustments Taxes Levied Percent in Subsequent Percentage
to Levy for Fiscal Year Amount of Levy Years Amount of Levy
$ 47,560 $ 1,362,396 $ 1,356,050 99.53% - $ 1,356,050 99.53%
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
92
Tabie 8
TOWN OF WESTLAKE, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(PER $100 OF ASSESSED VALUE)
CURRENT FISCAL YEAR
(Unaudited)
Notes: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an advalorem tax.
Overlapping rates are those of local and county governments that apply to property owners within the Town of Westlake. Not all overlapping rates apply to all
Town's property owners (e.g., the rates for the counties and school districts apply only to the proportion of the Town's property owners whose property is
located within the geographic boundaries of the county and school district)
Source: Tarrant County Appraisal District
Denton Central Appraisal District
93
City Direct Rates
Overlapping Rates
Operating/
School Districts
Counties
Tarrant Tarrant
Trophy
Total
Fiscal General
Debt Service Total (A)
Carroll Northwest
Keller Denton Tarrant
County County
Club
Direct and
Year Fund
Fund Direct
ISD ISD
ISD County County
College Dist Hospital Dist.
MUD #1
Overlapping
2011 0.1562
0.0039 0.1601
1.415000 1.375000
1.530600 0.273900 0.264000
0.137640 0.227897
0.195000
5.57914
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
93
NAICS Industry Type
11 Agriculture, Forestry, Fishing and Hunting
21 Mining
22 Utilities
23 Construction
31-33 Manufacturing
42 Wholesale Trade
44-45 Retail
48-49 Transportation and Warehousing
51 Information
52 Financial and Insurance
53 Real Estate and Rental and Leasing
54 Professional, Scientific, and Technical Services
56 Admin and Support and Waste Mgmt & Rem Sry
61 Education Services
62 Health Care and Social Assistance
71 Arts, Entertainment and Recreation
72 Accommodation and Food Services
81 Other Services (except Public Administration)
92 Public Administration
Town direct sales tax rate
TOWN OF WESTLAKE, TEXAS
TAXABLE SALES BY INDUSTRY TYPE
LAST SIX FISCAL YEARS
(Unaudited)
Fiscal Year
Table 9
2006
2007
2008
2009
2010
2011
$ 31 $
67 $
54 $
210
$ - $
60
2,321
-
1,012
20
400
4,420
463,222
212,336
194,359
185,819
178,693
178,529
81,542
200,791
635,134
411,718
68,306
117,283
1,120,328
360,010
186,128
95,395
386,492
322,085
248,702
284,082
178,003
72,034
105,557
153,392
408,556
253,293
493,309
445,839
1,097,007
1,089,059
63
491
-
2,784
556
680
538,210
223,672
246,591
355,603
159,513
514,501
10,162
343,446
120,187
64,994
87,188
73,529
178,047
204,398
102,515
123,191
327,207
204,973
111,746
452,018
180,288
156,385
202,263
232,023
245,562
45,809
105,811
15,102
39,539
90,473
895
317
85
2,984
619,228
1,584,025
10
-
109
-
-
167
49,474
224,101
177,446
175,517
158,996
208,578
34,021
57,084
65,779
54,416
140,996
182,903
130,476
130,392
32,621
1,490
4,462
4,675
170
-
-
-
11
1
$ 3,623,538 $ 2,992,308 $ 2,719,431 $ 2,163,501 $ 3,576,414 $ 4,961,365
2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Note: Information on sales tax by NAICS was not available prior to 2006. Comparison will be made to the prior year until ten-year prior comparison can be made.
Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of
the Town's sales tax revenue
Source: Texas State Comptroller reports
94
Table 10
TOWN OF WESTLAKE, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Notes: Details regarding the Town's outstanding debt can be found in the notes to the financial statements.
There was no debt issued until fiscal year 2002.
See Table 13 for population data.
95
General Bonded Debt Outstanding
Percentage
General
Certificates
of Actual
Fiscal
Obligation
of
Taxable
Per
Year
Bonds
Obligation
Total
Sales
Capita
2002
$ - $
12,400,000 $
12,400,000
21.00%
$ 42,906.57
2003
-
18,810,000
18,810,000
15.77%
62,079
2004
-
18,810,000
18,810,000
21.31%
57,348
2005
-
18,810,000
18,810,000
18.91%
52,986
2006
-
18,460,000
18,460,000
10.19%
26,447
2007
7,365,000
11,755,000
19,120,000
13.05%
27,198
2008
9,850,000
11,375,000
21,225,000
11.82%
27,038
2009
9,735,000
10,975,000
20,710,000
11.30%
25,791
2010
9,630,000
10,555,000
20,185,000
10.65%
23,831
2011
9,515,000
12,210,000
21,725,000
9.43%
21,900
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 population data.
95
Table 11
TOWN OF WESTLAKE, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Unaudited)
See Table 13 for personal income and population data.
96
Business -Type
Governmental Activities
Activities
General
Certificates
Other
Total
Percentage
Fiscal
Obligation
of
Capital
Contractual
Primary
of Personal
Per
Year
Bonds
Obligation
Leases
Loans Obligations
Government
Income
Capita
2002
-
12,400,000
-
- $ 6,113,904
$ 18,513,904
146%
64,062
2003
-
6,410,000
-
- 6,100,577
12,510,577
92%
41,289
2004
-
12,400,000
-
- 6,027,387
18,427,387
123%
56,181
2005
-
18,810,000
-
- 5,980,921
24,790,921
150%
69,834
2006
-
18,460,000
-
- 5,878,381
24,338,381
73%
34,869
2007
7,365,000
11,755,000
23,000
- 5,822,299
24,965,299
73%
35,513
2008
9,850,000
11,375,000
15,264
- 5,763,022
27,003,286
70%
34,399
2009
9,735,000
10,975,000
46,559
- 5,734,191
26,490,750
65%
32,990
2010
9,630,000
10,555,000
-
- 5,658,888
25,843,888
59%
30,512
2011
9,515,000
12,210,000
-
50,000 5,580,380
27,355,380
49%
27,576
Note:
Details regarding the Town's outstanding debt can
be tbund in the notes to the financial
statements. No debt was issued until fiscal
year 2000.
See Table 13 for personal income and population data.
96
Table 12
TOWN OF WESTLAKE, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2011
(Unaudited)
Source: Texas Municipal Report prepared by employees of the Municipal Advisory Council of Texas ("MAC")
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of
Westlake. This process recognized that, when considering the Town's ability to issue and repay long-term debt, the entire debt burden
borne by the resident and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and
therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and dividing it by the
entities' total taxable assessed value.
97
Overlapping
Amount of
Taxing Body
Debt Outstanding
As of
Percent 1
Amount
Carroll ISD (gross debt)
$ 248,700,040
8/31/2011
5.72%
$ 14,225,642
Denton County (net debt)
477,705,000
9/30/2011
0.02%
95,541
Keller ISD (net debt)
712,856,753
8/31/2011
4.57%
32,577,554
Northwest ISD (net debt)
552,386,901
8/31/2011
0.50%
2,761,935
Tarrant County (gross debt)
335,050,000
9/30/2011
0.72%
2,412,360
Tarrant County College District (gross debt)
29,780,000
9/30/2011
0.72%
214,416
Tarrant County Hospital District (gross debt)
27,160,000
9/30/2011
0.72%
195,552
Trophy Club MUD #1 (gross debt)
7,120,000
9/30/2011
18.35%
1,306,520
Total Overlapping Debt
53,789,519
Town of Westlake Outstanding Debt
21,725,000
Total Direct & Overlapping Debt
$ 75,514,519
Source: Texas Municipal Report prepared by employees of the Municipal Advisory Council of Texas ("MAC")
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of
Westlake. This process recognized that, when considering the Town's ability to issue and repay long-term debt, the entire debt burden
borne by the resident and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and
therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and dividing it by the
entities' total taxable assessed value.
97
Table 13
TOWN OF WESTLAKE, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
Sources: Population for 2000 is from the 2000 census. Fiscal Years 2001 through 2003 are estimated. The Town took
over the utilility billing in 2004 and estimated the population by using number of residential water accounts and
assuming a2.5 average household size. 2010 Census shows median household income at $250,000
Tarrant County Unemployment Rate information taken from Texas Workforce Commission.
American Community Survey (ACS)
Note: Due to the size of the Town, per capita personal income was not available except for information taken from the
2000 census. Estimates have been made based on a 2% annual increase in cost of living through 2010. Census
was used for 2011.
98
Per Capita
Tarrant County
Calendar
Estimated
Personal
Personal
Unemployment
Year
Population
Income
Income
Rate
2002
289
$ 12,699,635
$ 43,943
6.1%
2003
303
13,581,139
44,822
6.3%
2004
328
14,995,729
45,719
5.6%
2005
355
16,554,737
46,633
5.1%
2006
698
33,200,874
47,566
4.7%
2007
703
34,107,477
48,517
4.3%
2008
785
38,847,591
49,487
4.9%
2009
803
40,533,131
50,477
7.7%
2010
847
43,609,207
51,487
8.2%
2011
992
55,503,392
55,951
8.2%
Sources: Population for 2000 is from the 2000 census. Fiscal Years 2001 through 2003 are estimated. The Town took
over the utilility billing in 2004 and estimated the population by using number of residential water accounts and
assuming a2.5 average household size. 2010 Census shows median household income at $250,000
Tarrant County Unemployment Rate information taken from Texas Workforce Commission.
American Community Survey (ACS)
Note: Due to the size of the Town, per capita personal income was not available except for information taken from the
2000 census. Estimates have been made based on a 2% annual increase in cost of living through 2010. Census
was used for 2011.
98
Table 14
TOWN OF WESTLAKE, TEXAS
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR
(Unaudited)
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 compared.
Source: Maguire Partner's tenant records and contact with employers of the Town
99
2007
2011
Percentage
Percentage
of Estimated
of Estimated
Total Town
Total Town
Employer
Employees
Employment
Employees
Employment
Fidelity Investments
3,100
37.15%
3,580
45.20%
Core Logic
3,000
35.95%
1,500
18.94%
Wells Fargo
790
9.47%
600
7.58%
Chrysler Financial
325
3.89%
950
11.99%
McKesson Corporation
215
2.58%
225
2.84%
Sonitrol/World Factory
165
1.98%
25
0.32%
Marriott Solana Hotel
120
1.44%
115
1.45%
Walco
150
1.80%
159
2.01%
Verizon
-
- %
122
1.54%
Vaquero Club
140
1.68%
135
1.70%
Levi Strauss
-
- %
90
1.14%
Town of Westlake/Westlake Academy
73
0.87%
87
1.10%
Total
8,078
97%
7,588
96%
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 compared.
Source: Maguire Partner's tenant records and contact with employers of the Town
99
Table 15
TOWN OF WESTLAKE, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited)
Function/Program
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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 to town manager
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.75
Administrative
1.50
1.50
0.50
0.50
0.50
0.00
0.00
0.75
0.50
0.75
Building official
0.00
0.00
1.00
1.00
1.00
1.00
1.00
1.33
1.33
1.33
Town secretary
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Facilities/Grounds maintenance
0.00
0.00
0.50
0.50
0.50
0.50
0.75
1.08
0.92
0.83
Municipal
2.00
2.00
3.50
3.75
3.75
4.00
4.00
4.25
4.50
4.75
Finance
1.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
Payroll/Human Resources/1T
0.00
0.00
0.00
0.00
0.00
0.00
1.00
1.33
1.33
1.58
Public safety (EMS)
1.00
10.00
10.00
10.00
11.00
11.00
11.00
9.00
9.00
9.00
Culture and recreation
0.00
0.00
0.50
0.50
0.50
0.50
0.75
0.75
0.92
0.75
Public works
0.00
0.00
1.00
1.00
1.00
1.00
1.50
1.50
1.50
2.00
Marketing and public affairs
0.00
0.00
1.00
1.00
1.00
0.00
0.00
0.00
0.00
1.00
Education
0.00
0.00
20.50
25.15
32.40
36.40
43.00
48.10
55.62
59.45
Total
8.50
19.50
44.50
49.40
57.65
60.40
69.00
74.09
81.62
87.19
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.
100
Table 16
TOWN OF WESTLAKE, TEXAS
OPERATING INDICATORS
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited)
Function/Program
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
General government
Building permits issued
13
19
27
54
53
36
64
60
49
21
15
Building permit values
$ 8,684,000 $
12,495,020 $
23,620,817 $
46,698,935 $
56,415,093 $
42,910,780 $
46,923,814
# ########## $
39,278,318 $
27,575,445 $
59,749,048
Police (Contract with Keller PD)
Motor vehicle stops
3,968
3,968
9,993
9,237
9,586
8,992
10,045
10,357
9,247
9,763
9,829
Traffic accident investigations
86
86
91
180
163
164
225
208
266
273
348
Part 1 crimes
16
16
46
19
26
30
25
26
23
19
30
DWI arrests
55
55
117
70
86
56
53
45
24
32
80
Fire/EMS
Fire runs
N/A
N/A
108
78
148
136
153
169
118
172
191
Ambulance runs
N/A
N/A
150
115
135
207
251
159
184
187
264
Inspections
N/A
N/A
N/A
N/A
89
161
96
132
15
71
71
Public Works - General
Street resurfacing (sq. footage)
0.00
0.00
1.65
1.30
0.00
1.35
1.01
0.00
0.00
0.00
3800.00
Potholes repaired
0.00
0.00
0.00
40.00
40.00
20.00
0.00
20.00
10.00
5.00
36.00
Public Works -Utility
Number of water accounts
67
102
130
177
271
338
386
419
437
478
500
Water main breaks
N/A
N/A
N/A
1
3
3
2
4
5
6
4
Avg daily consumption MG (water)
0.269
0.404
0.382
0.501
0.817
1.031
0.729
0.999
1.020
0.889
1.200
Peak daily consumption MG (water)
2.203
1.820
1.244
1.423
2.198
2.677
1.978
2.060
2.740
2.460
2.540
System capacity - MG (water)
0.685
0.685
0.685
1.685
1.685
1.685
1.685
1.685
1.685
1.685
1.685
Water purchased (in gallons x 000)
98,229
147,423
138,288
183,356
298,124
376,264
266,158
364,764
372,933
324,843
443,222
Water sold (in gallons x 1000)
N/A
154,702
127,998
150,869
230,657
338,085
246,280
340,743
313,495
290,000
385,320
Wastewater
Number of new sewer connections
40
75
105
139
179
211
235
240
251
254
245
Avg daily sewage treatment
0.0630
0.0610
0.0710
0.0950
0.1270
0.1320
0.1370
0.124
0.101
0.063
0.163
(thousands of gallons)
Source: Various Town departments
Notes: N/A represents information that is unavailable
101
Table 17
TOWN OF WESTLAKE, TEXAS
CAPITAL ASSET STATISTICS
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited)
Function/Program
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Fire
Stations
-
-
1
1
1
1
1
1
1
1
1
Public Works - Utility
Pump station
1
1
1
1
1
1
1
1
1
1
1
Lift station
-
2
2
2
2
2
2
2
2
3
3
Telecommunications Duct Bank (LF)
21,573
24,073
36,703
38,303
38,303
38,303
43,703
49,103
51,803
57,783
Telecommunications Duct Bank Manhole
0
53
58
91
95
95
95
104
113
122
122
Water
Water mains (LF)
24,000
34,000
48,000
52,000
57,500
58,300
59,200
64,600
70,000
79,000
130,000
Fire hydrants
10
24
55
76
95
119
119
130
130
154
188
Storage capacity MG
1,685
1,685
1,685
1,685
1,685
1,685
1,685
1,685
1,685
1,685
1,685
Wastewater
Sanitary sewers (LF)
8,700
15,300
18,100
20,000
15,000
35,000
35,000
39,300
39,300
49,900
94,000
Manholes
20
50
115
160
200
250
250
267
284
304
304
Public Works - Utility
Streets (miles)
10.50
10.80
10.80
10.80
10.80
10.80
10.80
10.80
10.80
10.80
1,080.00
Highways (miles)
-
-
-
-
-
-
-
-
-
-
-
Streetlights
-
-
-
-
-
-
-
-
-
-
-
Traffic signals (school zone flashers)
-
-
2
2
2
2
2
2
2
2
2
Parks and recreation
Acreage
13.50
14
14
14
14
19
19
25
25
25
25
Playgrounds
0.00
2
2
2
2
2
2
2
2
2
2
Softball/soccer field
0.00
1
1
1
1
1
1
1
1
1
1
Football field
0.00
-
-
-
-
-
-
1
1
1
1
Source: Various Town departments
Note: No capital asset indicators are available for the general government.
102
COMPLIANCE SECTION
ilrk�li
PATTILLO, BROWN & HILL,L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GO VERNMENT A UDITING STANDARDS
Town Council
Town of Westlake, Texas
3 Village Circle, Suite 202
Westlake, Texas 76262
Members of the Council:
We have audited the financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units and each major fund of the Town of
Westlake, Texas, (the "Town") as of and for the year ended September 30, 2011, which collectively
comprise the Town's basic financial statements and have issued our report thereon dated February 20,
2012. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Town's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Town's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the Town's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of
the entity's financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in internal
control over financial reporting that might be significant deficiencies or material weaknesses. We did
not identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
103
115 SOUTH CHURCH STREET ■ HILLSBORO, TX 76645 ■ (254) 582-2583 ■ FAX: (254) 582-5731 ■ www.pbhepa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 ■ TEMPLE, TX (254) 791-3460
WACO, TX (254) 772-4901 0 ALBUQUERQUE, NM (505) 266-5904
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Town Council, and
federal and state awarding agencies and pass-through entities and is not intended to be and should not be
used by anyone other than these specified parties.
paul4, b d �lI ,°C P
February 20, 2012
104