HomeMy WebLinkAboutRes 18-11 Approving Comprehensive Annual Financial Report for the year ended September 30, 2017 TOWN OF WESTLAKE
RESOLUTION NO. 18-11
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE,
TEXAS, ACCEPTING THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
PRESENTED BY WEAVER AND TIDWELL, L.L.P., FOR THE FISCAL YEAR
ENDED SEPTEMBER 30,2017.
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 Town Council finds that the passage of this Resolution is in the best
interest of the citizens of Westlake.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF WESTLAKE:
SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true
and correct and are incorporated herein by reference as if copied in their entirety.
SECTION 2: That the Town Council does hereby accept the Comprehensive Annual
Financial Report from Weaver and Tidwell, L.L.P., for the fiscal year ended September 30,
2017, 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 18-11
Page 1 of 2
SECTION 4: That this resolution shall become effective from and after its date of
passage.
PASSED AND APPROVED ON THIS;Mh DAY OF MARCH, 2018.
ATTEST:
Kell Edwafds, Town Secretary
Laura Wheat, Mayor
Thomas E. Brymer, Manager
Resolution 18-11
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Town of Westlake
Town of Westlake, Texas
Comprehensive Annual Financial Report
Fiscal Year Ended September 30, 2017
Prepared by:
Town of Westlake
Finance Department
1500 Solana Blvd, Suite 7200
Westlake, Texas 76262
Town of Westlake
Town of Westlake
Consolidated Annual Financial Report
For the Fiscal Year Ended September 30, 2017
Table of Contents
i
Page Exhibit
Introductory Section
Letter of Transmittal iii
GFOA Certificate of Achievement xii
Organization Chart xiii
Town Officials xv
Financial Section
Independent Auditor’s Report 4
Management's Discussion and Analysis 10
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 24 A-1
Statement of Activities 25 A-2
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet 27 A-3
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 29 A-4
Statement of Revenues, Expenditures, and Changes in Fund Balance 31 A-5
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 33 A-6
Proprietary Funds Financial Statements
Statement of Net Position 34 A-7
Statement of Revenues, Expenses, and Changes in Net Position 35 A-8
Statement of Cash Flows 36 A-9
Fiduciary Funds Financial Statements
Statement of Fiduciary Net Position 37 A-10
Discretely Presented Component Units Financial Statements
Combining Statement of Net Position 38 A-11
Combining Statement of Activities 39 A-12
Notes to the Basic Financial Statements 42
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund 81 B-1
Schedule of Revenues, Expentitures and Changes in Fund Balance -
Budget and Actual - Westlake Academy 82 B-2
Notes to Budgetary Comparison Schedules 83
Schedule of Net Pension Liability and Related Ratios - TMRS 84 B-3
Schedule of Contributions - TMRS 85 B-4
Notes to TMRS Required Supplementary Information 86
Schedule of Academy's Proportionate Share of Net Pension Liability - TRS 87 B-5
Schedule of Contributions - TRS 88 B-6
Town of Westlake
Consolidated Annual Financial Report
For the Fiscal Year Ended September 30, 2017
Table of Contents – Continued
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Page Exhibit
Combining and Individual Fund Statements and Schedules
Major Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Debt Service Fund 91 C-1
Nonmajor Governmental Funds
Combining Balance Sheet 93 C-2
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 94 C-3
Nonmajor Special Revenue Funds
Budgetary Comparison Schedules
Visitors Association Fund 95 C-4
Lone Star Public Facilities Corporation Fund 96 C-5
Economic Development Fund 97 C-6
4B Economic Development Corporation Fund 98 C-7
Agency Funds
Statement of Changes in Assets and Liabilities - PID Agency Fund 100 C-8
Statistical Section
Net Position By Component 104 S-1
Changes in Net Position 105 S-2
Fund Balances, Governmental Funds 107 S-3
Changes in Fund Balances, Governmental Funds 108 S-4
Assessed Value and Estimated Actual Value of Taxable Property 110 S-5
Principal Property Tax Payers 111 S-6
Property Tax Levies and Collections 112 S-7
Direct and Overlapping Property Tax Rates 113 S-8
Taxable Sales by Industry Type 114 S-9
Ratios of General Bonded Debt Outstanding 115 S-10
Ratios of Outstanding Debt by Type 116 S-11
Direct and Overlapping Governmental Activities Debt 117 S-12
Demographic and Economic Statistics 118 S-13
Principal Employers 119 S-14
Full-Time Equivalent City Government Employees by Function/Program 120 S-15
Operating Indicators by Function/Program 121 S-16
Capital Asset Statistics by Function/Program 122 S-17
1500 Solana Blvd., Suite 7200 Westlake, Texas 76262
Metro: 817-430-0941 Fax: 817-430-1812 www.westlake-tx.org
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Town of Westlake
March 23, 2018
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, 2017, is
hereby issued.
This report consists of management's representations concerning the finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making representations, the Town
established a comprehensive internal control framework that was designed both to protect the Town's
assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the
Town’s financial statements in conformity with GAAP. Because the cost of internal controls should not
outweigh their benefits, the Town's comprehensive framework of internal controls has been designed to
provide reasonable, rather than absolute, assurance that the financial statements will be free from
material misstatements. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The Town's financial statements have been audited by Weaver and Tidwell, L.L.P. The goal of the
independent audit was to provide reasonable assurance that the financial statements of the Town for
the fiscal year ended September 30, 2017, were free of material misstatements. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor concluded,
based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the
Town's financial statements for the fiscal year ended September 30, 2017, were fairly presented in
conformity with GAAP. The independent auditors' report is presented as the first component of the
financial section of this report.
This report is presented in three sections: Introductory, Financial and Statistical. The Introductory Section
includes this transmittal letter, a listing of Town Officials, and an organizational chart of the Town. The
Financial Section includes the independent auditor’s report on the basic financial statements,
Management’s Discussion and Analysis (MD&A), basic financial statements, the notes to the basic
financial statements, and combining and individual fund statements and schedules. The MD&A is a
narrative introduction, containing overview and analysis to accompany the basic financial statements.
This letter of transmittal is designed to complement, and should be read in conjunction with the MD&A.
The Town of Westlake’s MD&A can be found immediately following the independent auditor’s report .
The Statistical Section includes financial and demographic information relevant to readers of the Town’s
financial statements. The statistical data is generally presented on a multi-year basis.
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Profile of the Town
Westlake is an oasis of natural beauty that maintains open spaces in balance with distinctive
development, trails, and quality of life amenities amidst an ever-expanding urban landscape.
Nestled in the DFW Metroplex, Westlake is a Gold Level Scenic City and home to many small independent
businesses and several corporate campuses
Distinctive developments and architecturally vibrant corporate campuses find harmony among our
meandering roads and trails, lined with native oaks and stone walls. We are leaders in education, known
for our innovative partnerships between the Town-operated Charter school and our corporate neighbors.
We strive to maintain strong aesthetic standards and preserve the natural beauty in our town. Hospitality
finds its home in Westlake, as a community, we are family friendly, welcoming, fully involved and invested
in our rich heritage, vibrant present and exciting, sustainable future.
Westlake is conveniently located between DFW Airport and Alliance Airport, on the south side of State
Highway 114, providing quick, easy access to all areas of the Dallas-Ft. Worth Metroplex.
The unique location of Westlake is ideal for many of its major corporate campuses and residential
communities. A common ideal shared by our corporate and individual residents is their support of the
existing character and charm of the community as well as a commitment to excellence in new
development.
Minutes from downtown Fort Worth, Texas and DFW International Airport, the Town of Westlake is home to
several upscale residential communities and Fortune 500 companies, all of which share a unique
character and charm, along with a commitment to excellence. The Town is located in northeast Tarrant
County and may be conveniently accessed by several major thoroughfares, including SH 114 and US 377.
The Town occupies approximately 7 square miles and serves a population of approximately 1,310. In 2017,
the average size of new home construction was 9,693 square feet with an average estimated
construction cost of $1.82 million.
The Town, incorporated in 1956, is considered a Type A general-law municipality. The Town operates
under the Council-Manager form of government. The Council is comprised of a mayor and five (5) council
members and is responsible for, among other things, passing ordinances, adopting the budget,
appointing committees, and hiring the Town Manager. The Town Manager is responsible for carrying out
the policies and ordinances of the Council, for overseeing the day-to-day operations of the Town and
appointing and supervising heads of various departments. The Mayor and Town Council members serve
two (2) year terms. All elected officials are elected at-large for a two-year staggered term each May.
The financial reporting entity (the government) includes all funds of the primary government (i.e. the Town
of Westlake), as well as all its component units. Component units are legally separate entities for The
financial reporting entity (the government) includes all funds of the primary government (i.e. the Town of
Westlake), as well as all 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 its 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.
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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 to eliminate unemployment and underemployment, and to promote and encourage employment
and the public welfare of, for, and on behalf of the Town by developing , implementing, financing, and
providing one or more projects defined and permitted under Section 4B of the Act. The board of directors
is composed of seven persons appointed by the members of the Town’s governing board. Four of the
members of the board of directors are members of the Town’s governing board.
Westlake Academy (Academy) is an open-enrollment charter school, as provided by Subchapter D,
Chapter 12, of the Texas Education Code. The Town of Westlake (“Charter Holder”) applied for and
became the first municipality in Texas to ever receive this special charter designation. The Academy had
825 students in FY 15-16 and serves Kindergarten thru 12th grade. The Academy graduated their first class
in FY 09-10. The Board consists of six (6) trustees and is appointed by the Town’s governing body. Currently,
all members of the board of trustees are members of the Town’s governing body . The Academy’s year-
end is August 31.
Discretely presented component units are legally separate entities and not part of the primary
government’s operations. These component units are as follows: Texas Student Housing Corporation-
Denton Project, Texas Student Housing Corporation-College Station Project, and Texas Student Housing
Authority.
Services Provided
The Town provides to its citizens those services that have proven to be necessary and meaningful and
which the Town can provide for the least amount of cost. Major services provided under the general
government and enterprise functions are: Fire and emergency medical services, police, water and sewer
utility services, park and recreational facilities, street improvements, education and administrative
services. The Town utilizes a combination of direct service delivery along with out-sourced services in its
service delivery mix. The decision as to which service to deliver directly versus out-sourcing is based on
analysis of cost-effectiveness, citizen responsiveness, and customer service quality.
Economic Conditions and Outlook
Local Challenges Involving Residential Growth
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.
The Town staff is aware that the Town of Westlake does not create wealth, but instead, is entrusted with
public dollars collected on behalf of our citizens. We are stewards who are fully vested in the success of
the Town of Westlake and Westlake Academy. We exist as a municipal corporation for one reason and
one reason only: to prioritize and deliver the best services possible with the resources provided to achieve
an exceptional quality of life. This is a challenge the Staff takes very seriously, one that we pursue with
vigor every day. Over the previous fiscal year, the Town has achieved and/or is continuing to work toward
important initiatives and projects that will allow us to balance our “distinctive development, trails, and
quality of life amenities amidst an ever-expanding urban landscape.”
Because of the current and potential development within our community, it is both an exciting and
challenging time in Westlake! Adhering to the Town’s Vision is the key to Westlake’s success for managing
the significant growth. While growth is occurring, it also presents very clear challenges for our community
if we wish to continue to maintain the elements of Westlake that make it so unique. These community
attributes include our beautiful neighborhoods with top quality residences, strong aesthetic standards, a
top-tier Town owned K-12 charter school, open space preservation, streetscaping, emphasis on proactive
planning, and maintaining our view corridors. The “sea of change” that surrounds Westlake involves not
only our current internal development but also the current growth opportunities planned for the State
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Highway (SH 114) corridor in northeast Tarrant County and into southern Denton County. The communities
that surround us are undergoing significant development as well, which adds to the “sea of change”
affecting Westlake.
The impact of anticipated growth along the SH 114 corridor is described by Mr. Robin McCaffrey (AIA and
APA) of MESA Planning, the firm that was engaged to update the Town’s latest Comprehensive Plan,
Forging Westlake. According to Mr. McCaffrey:
Westlake, with the arrival of the Charles Schwab Corporation project, is crossing through a portal into the
future suggested by the Town’s 2015 Comprehensive Plan. In conjunction with Fidelity and other financial
services in and around Westlake, Westlake hosts nearly 4 million square feet of an industry type (i.e.
financial services), constituting a significant Industry Cluster. At this scale, the aggregation of a single
industrial code activity is important enough to attract vertical and horizontal expansion, which further
substantiates Westlake’s importance as a financial services center in the D allas/ Fort Worth Metroplex.
Bringing the above described importance to the Town’s other advantages of proximity, makes Westlake
a singularly important center for growth and development going forward.
Westlake’s Permanent Population Growth: This is the portion of our population considered to be our
permanent residents. From the 1990 population of 185 to 2017’s population of 1,310 represents an increase
of 608% equal to 1,125 additional residents. We will need to continue to monitor and plan for the
continued increase in these numbers considering our Comprehensive Plan’s (Forging Westlake) forecast
of approximately 7.21% annual population growth between now and 2040. This would bring us to around
7,000 residents.
Traffic Demands Due to Growth in Westlake and Surrounding Areas: The four (4) municipalities surrounding
Westlake (Keller, Southlake, Trophy Club, and Roanoke) are projected to have a combined population
of 215,000 people by 2040. The growth in these communities will generate additional traffic that
commutes through our Town. With our projected level of residents (7,000) and the existing zoning
entitlements (if executed) we would expect an estimated 300,000 vehicle trips per day. Local impacts
associated with this level of growth affect our street infrastructure, water and sewer system capital
investment requirements, as well as demand for daily municipal services. Policies established in Forging
Westlake will be essential for addressing this issue via the Town’s thoroughfare plan as it pertains to
development which occurs in the community.
Balanced Growth to Impact Cost of Municipal Services: Likewise, the ability to fund municipal services
utilizing a cost-effective revenue format requires balanced growth that provides for commercial
development and a diversified tax base, while maintaining the community’s open space and bucolic
atmosphere. At the same time, we must continue to ensure the policy direction of the Town is focused on
growth paying for the infrastructure for which it creates the demand.
Housing Start Increases and Maintaining Westlake’s High Quality Residential Housing: We continue to see
strong single family residential construction demand. This has been demonstrated in Granada Phase 1 as
well as in existing subdivisions such as Vaquero, Paigebrooke, and Terra Bella. Additionally, the
infrastructure for three (3) new single family residential developments, Carlyle Court, Granada Phase 2
and Quail Hollow, has been completed, accepted by the Town and building permits issuance in those
developments is underway.
Also, the mixed-use development called Entrada continues to progress with infrastructure construction
making significant headway. Entrada’s infrastructure is being financed with a Town approved Public
Improvement District (PID), the bonds for which are paid back by assessments on development within
Entrada. When the infrastructure is complete, it will add (over time) a wide variety of 322 residential units
to Westlake - ranging from single family homes, to villas, to town homes. Once complete, these four (4)
developments will add approximately 463 new lots to our residential inventory.
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Our residential construction activity shows a steady increase in building permits for housing which has
occurred since we have emerged from the 2008-09 recession. Housing starts in Westlake, due to the high
value of our homes, add taxable value to our taxing base; however, this also i mpacts the demand for
municipal services, especially the Town’s charter school, Westlake Academy.
As the area economy continues to perform well, and Westlake and our surrounding communities continue
to experience commercial development, this will further attract individuals who work for and own these
businesses. In turn, these individuals will need housing. As our housing stock expands in response to these
forces, we will need to manage our distinctive developments to ensure we maintain our community as
an ‘oasis of natural beauty’ and achieve high-end housing options as identified in the Housing element
of Forging Westlake.
Local Challenges Involving Commercial Growth
Commercial Development, Economic Development, and Daytime Population Growth: Because Westlake
is the home to major corporate office campuses, its Monday-Friday daytime population is growing and is
conservatively estimated to be approximately 10,000 - 12,000 individuals. These office complexes are
comprised of notable corporate clients that include Deloitte, LLP and Fidelity Investments. Currently,
Fidelity has almost 6,000 employees at their Westlake campus, with expansion room for two (2) more office
buildings in addition to their two (2) existing office buildings.
New Charles Schwab Corporate Campus: The announcement of their regional corporate campus in 2016
is beginning to come to fruition. Phase 1 will consist of a 500,000-sq. ft. office building and parking garage.
Adjacent to the Schwab campus will be a mixed-use development, which Hillwood Properties will
develop near the intersection of SH170 and SH114. The campus will initially have approximately 1,500-
1,900 employees and should round out with an estimated 5,000 employees when all phases are complete.
Presently, Schwab is well underway in the process of hiring 500 employees for its temporary Roanoke Road
location in Westlake.
Commercial Development in Entrada: The mixed-use development called Entrada, located at
FM1938/Davis Blvd. and SH114, will also create growth in our commercial tax base. During the past budget
year, commercial buildings totaling 55,000 sq. ft. have been approved by the Town for the development.
A CVS Pharmacy is open for business as well as a Primrose Private School. Other commercial uses include
various retail, restaurants, amphitheater and hotels.
Solana Redevelopment/Reinvestment: The Solana Office Complex, acquired by Equity Office
(Blackstone) approximately two (2) years ago, has seen a resurgence in occupancy. Equity’s multi-million-
dollar investment in the complex to improve its parking, landscaping and buildings has been a strong
positive path for Westlake. The investment is boosting office occupancy levels with Sabre Corporation
expanding their presence into Westlake by leasing significant office space in Solana. They are also hiring
up to 500 new employees. The municipality has assisted in this revitalization effort by leasing 20,000 sq. ft.
of office space for the next 10 years. The new location in Solana allows the staff to be in one office suite
and better serve the Westlake community.
Economic Development: The Town has also pursued the ideas advanced in the Economic Development
element of Forging Westlake. That is, where appropriate, to pursue businesses that ultimately expand the
Town’s tax base with high quality office buildings, and at the same time, compliments our financial
services business cluster, which has already been created through our corporate residents of Fidelity and
Deloitte. Further, we pursue the types of businesses interested in high quality office campus development
and creating well-paying positions for employees. With the Schwab announcement (and the start of
construction of the TD AmeriTrade’s complex in Southlake) we are well on our way to becoming a
financial services corridor within the DFW Metroplex.
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While offering economic development incentives for the Schwab project, the tax abatement provided is
in-line with incentives offered in our region, plus the company is providing one -time funding for Westlake
Academy. Staff will continue to monitor our corporate stakeholders and attempt to identify avenues to
strengthen these relationships and assist in attracting new corporations to Westlake . The expansion of
commercial development will continue to grow Westlake’s daytime population.
Local Challenges – Other
There are other local challenges involving both financial and physical site planning, strategic forecasting,
residential feedback through our survey instruments and the Town’s public charter school, Westlake
Academy.
Westlake’s residential growth impact on the Academy: The number of Westlake residents who are
selecting Westlake Academy as the educational choice for their students has doubled in the past five
years. Resident surveys continually indicate that the Academy is a strong motivator for our residents to
live in Westlake, and one of the top three (3) reasons why they plan to remain in our community. For
example, the 2017 municipal services survey results indicate 75% of the new residents say enrollment at
Westlake Academy was extremely important/important to their decision to live in the community. With
the majority of those residents then listing this as the number one (1) reason they will remain in Westlake
over the next five (5) years.
Planning for Academy growth in the face of residential development continues to be a challenge.
Wherever possible, the Town has entered economic development agreements with residential
developers to provide funding for Westlake Academy facilities to lessen the impact of their residential
development on the school’s enrollment.
Westlake Academy has experienced steady enrollment growth from 491 students in SY 2009-10 to a
projected 856 in SY 2017-18. The current increase of student population is a result of the Phase I expansion
efforts on the Academy campus and our development. Our growth requires that we carefully manage
our student admissions processes to provide adequate space for children of Westlake residents.
Approximately 39,000 sq. ft. of new facilities space was opened on campus in SY 14/15. It was comprised
of a secondary classroom building, field house, and a primary years’ multi-use hall. These buildings
increased our capacity and allowed for decompression of our current school facilities. The lottery waiting
list for student admissions from our secondary boundaries continues to grow from 705 in 2011 to over
approximately 2,411 students for this coming school year.
Continued Public Education Funding Shortfall: State funding of public education was decreased by the
State Legislature in 2011. While it has increased somewhat since then, the allocation has not kept pace
with basic cost increases. And, in the Legislature’s most recent 2017 session, the per student funding for
public education was not increased for the next biennium. This negatively impacts Westlake since it owns
and operates our public charter school, Westlake Academy, which receives approximately 80% of its
operational funding from the State. The municipal government continues to allocate significant resources
to the school to deal with State funding limitations, maintain high quality educational services, provide
for the Academy’s facilities and support services, as well as preserve space for the children of Westlake
residents. Additionally, the Westlake Academy Foundation (WAF) raises significant operating funds for the
Academy, without which the school could not operate.
Pursuit of Infrastructure and Services Reinvestment While Combating Certain Cost Increases: We must also
reinvest in maintaining our infrastructure. However, with growth comes the need to allocate capital
spending in new public buildings and our water and sewer utility. An example of a key project needed
to deal with the Town’s growth, is a Phase 2 water transmission line to our wholesale water provider. This is
a costly project which will require us to significantly invest in our water system.
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Staffing Levels, Insurance Costs, and Retention: Our infrastructure investment must be monitored in
tandem with the staffing needs to maintain our current service delivery levels. This includes keeping our
compensation/benefit package competitive to attract and retain excellent employees, so we can
continue delivering exceptional service. We have found this to be especially true as it relates to having
adequate staffing to deal with development review and construction. We have balanced all these
components in light of maximizing staff efficiencies and processes to help contain large expenditure
drivers such as employee health insurance.
Customer interactions and our methodology to deliver services remains of interest to our residents and
we continue to receive high marks for our personalized approach. In early 2017, our consultant, Chris
Tathum with ETC presented Council with positive feedback indicating that our staff team is “setting the
standard for service delivery compared to other communities”. Since 2009, our composite index score for
overall satisfaction has increased 21 points.
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 2017-18 Budget. The budget details the Town's
long-term goals and financial policies and describes program accomplishments and initiatives.
Other Information
The Government Finance Officers Association of the United States of America and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Westlake for
its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2016. This was
the tenth year the Town has received this prestigious award. To be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report (CAFR) continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
In addition, we also received our tenth GFOA Distinguished Budget Presentation Award for the fiscal year
beginning October 1, 2016 for our municipal budget and the 8th year for our educational services budget
for Westlake Academy, a component unit of the Town. To qualify for the Distinguished Budget
Presentation Award, the Town and Academy budget documents had to be judged proficient as a policy
document, a financial plan, an operations guide, and a communications device.
Westlake Academy has also received recognition from the Association of School Business Officials
International as a recipient of the International Award for Budget Excellence for the past seven years.
The Finance Department received its fifth Popular Annual Financial Report (PAFR) converting much of the
FY 2015-2016 audit document into an easy-to-read format for our residents. The goal is to encourage
resident awareness as it relates to Town finances through the condensed version of the budget. The report
provides an “overview of our financial position and policies and conveys our commitment to delivering
responsive services and programs in a fiscally responsible manner.”
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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.
Tom Brymer Debbie Piper, CPA
Town Manager Finance Director
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Town of Westlake
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Town of Westlake
Elected and Appointed Officials
Laura
Wheat
Alesa
Belvedere
Michael
Barrett
Rick
Rennhack
Carol
Langdon
Wayne
Stoltenberg
Elected Officials
Mayor Laura Wheat
Mayor Pro-Tem Carol Langdon
Council Member Alesa Belvedere
Council Member Michael Barrett
Council Member Rick Rennhack
Council Member Wayne Stoltenberg
Appointed Officials
TOM BRYMER
Town Manager
AMANDA DEGAN GINGER AWTRY
Assistant
Town Manager Director of Communications
and Community Affairs
DEBBIE PIPER KELLY EDWARDS
Director of Finance Town Secretary
RON RUTHVEN TODD WOOD
Director of Planning and
Development Director of Human Resources
and Administrative Services
JARROD GREENWOOD RICHARD WHITTEN
Director of Public Works Fire Chief
TROY MEYER JASON POWER
Director of Facilities Maintenance
and Parks and Recreation Director of Information
Technology
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Town of Westlake
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Financial Section
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Town of Westlake
AN INDEPENDENT MEMBER OF
BAKER TILLY INTERNATIONAL
WEAVER AND TIDWELL, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
12221 MERIT DRIVE, SUITE 1400, DALLAS, TX 75251
P: 972.490.1970 F: 972.702.8321
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Independent Auditor’s Report
To the Honorable Mayor
and Members of Town Council
Town of Westlake, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the Town of Westlake (the Town) as of and for the year ended
September 30, 2017, and the related notes to the financial statements, which collectively comprise the
Town’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Town of Westlake, Texas
5
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information
of the Town, as of September 30, 2017, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
Emphasis of Matter Regarding Going Concern
The accompanying financial statements have been prepared assuming the discretely presented
component units will continue as going concerns. As discussed in Note 17 to the financial statements, the
discretely presented component units are in default on their bonds due to failure to meet certain bond
covenants. This gives bond holders the right to accelerate and demand payment on the bonds in full.
This condition raises substantial doubt about the discretely presented component units’ ability to continue
as going concerns. Management’s plans regarding these matters are also described in Note 17. The
financial statements do not include any adjustments that might result from the outcome of this
uncertainty. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 10 through 20 and budgetary comparison information
and pension schedules on pages 81 through 88 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements. The introductory section, combining and individual fund
financial statements and schedules, and statistical section, are presented for purposes of additional
analysis and are not a required part of the financial statements.
The combining and individual fund statements and schedules are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare
the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the combining and individual fund statements and schedules are fairly stated in all material
respects in relation to the basic financial statements as a whole.
Town of Westlake, Texas
6
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 23,
2018 on our consideration of the Town’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Town’s internal control over financial
reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 23, 2018
7
Town of Westlake
8
Management’s Discussion and Analysis
9
Town of Westlake
10
Management’s Discussion and Analysis
Management of the Town of Westlake offers the readers of the Town’s financial statements this narrative
overview and analysis of the financial activities and financial position of the Town for the fiscal year ended
September 30, 2017. Financial reporting is limited in its ability to provide the “big picture” but rather focuses
on financial position and changes in financial position. In other words, are revenues and/or expenditures
higher or lower than the previous year? Has the net position (containing both short- term and long-term
assets and liabilities) or fund balances (the current “spendable” assets less current liabilities) of the
government been maintained? Readers are encouraged to consider the information presented here in
conjunction with the additional information furnished in the letter of transmittal (pages iii - x of this report)
and the statistical section (pages 103 - 122 of this report) as well as information in the annual operating
budget, along with other community information found on the Town’s website at www.westlake-tx.org.
It should be noted that the Independent Auditor’s Report describes the auditors’ association with the
various sections of this report and that all the additional information from the website and other Town
sources are unaudited.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $59,885,306 (Net position). This
number must be viewed within the context that the vast majority of the Town's net position of
$52,083,443 (87.0%) is its investment in capital assets and that most capital assets in a government
entity do not directly generate revenue nor can they be sold to generate liquid capital. The net
position restricted for specific purposes totaled $2,034,916 (3.4%). The remaining amount,
$5,766,947 (9.6%), represents unrestricted net position.
As of the close of the current fiscal year, the Town of Westlake's governmental funds reported
combined ending fund balances of $27,808,118, which is an increase of $7,412,296 in comparison
with the prior year. Within this total, $17,444,416 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 $10,937,492 an
increase of $1,258,019 in comparison with the prior year. Of this total fund balance, $10,363,702 is
unassigned. This represents 125% of the total general fund expenditures and is equivalent to 489
operating days.
The Town's capital assets (net of accumulated depreciation) increased by $5,042,014. This is due
in large part to an increase of $6,503,931 in construction in progress accounts. This increase is
primarily due to the infrastructure construction expenditures related to the Public Improvement
District (PID), E. Dove Road and Drainage project and the Fire/EMS Complex.
The Town's long-term debt increased by $9,547,067 in total, due to the issuance of $9,180,000
Combination Tax & Revenue Bonds and $1,530,000 Tax Notes.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements.
The Town's basic financial statements are comprised of the following three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains supplementary information in addition to the basic financial
statements themselves.
11
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
Town's finances, in a manner similar to a private-sector business. The government-wide financial
statements are prepared utilizing the economic resources measurement focus and the accrual basis of
accounting.
The statement of net position presents information on all the Town's assets and deferred outflows of
resources and liabilities and deferred inflows of resources with the difference between the two reported
as net position. Over time, increases or decreases in the Town's net position serves as a useful indicator of
whether the financial position of the Town is improving or weakening.
The statement of activities presents information showing how the government's net position changed
during the most recent fiscal year. All the revenues and expenses are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods.
Both 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 the Texas Student Housing entities. Financial
information for these component units is reported separately from the financial information presented for
the primary government itself. In addition, the Town has the following blended component units: Lone
Star Public Facilities Corporation, 4B Economic Development Corporation, and Westlake Academy, an
open enrollment charter school owned and operated by the Town of Westlake. See pages 42 – 43 of the
"Financial Section" for detail on these entities.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been
segregated for specific activities or objectives. The Town, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Below
are the three types of funds.
Governmental funds - Governmental funds are used to account for essentially the same functions
reported as government activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financial requirements.
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.
12
The Town maintains ten individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures,
and changes in fund balances for the General, Westlake Academy, Debt Service, Capital Projects,
Solana PID Capital Project, and Westlake Academy Expansion funds, all of which are presented as major
funds. Data from the other funds (Visitors Association, Economic Development, Lone Star Public Facilities
Corporation and Westlake 4B Economic Development Corporation) are combined into a single,
aggregate presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
The Town adopts an annual appropriated budget for all funds, except the Capital Projects, Solana PID
Capital Project, and Westlake Academy Expansion funds which are project-length based budgets. A
budgetary comparison statement has been provided for all appropriate funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 27 - 33 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 the 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 34 - 36 on this report.
Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the Town's own programs. The accounting used
for fiduciary funds is similar to the accounting used for proprietary funds. The Town of Westlake maintains
one fiduciary fund, the PID Agency (Debt Service) Fund.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found on pages 42 - 79 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.
The schedules are presented immediately following the notes to the financial statements and can be
found on pages 81 - 88.
13
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of the government’s financial
position. In the case of the Town, assets exceeded liabilities by $59,885,306 at the close of the most recent
fiscal year.
The Town’s combined net position changed from a year ago, increasing $2,833,346 from $57,051,960 to
$59,885,306. Our analysis below focuses on the net position (Table 1) and changes in net position (Table
2) of the Town’s governmental and business-type activities.
The largest portion of the Town’s net position, 52,083,443 (87%), reflects its investment in capital assets (e.g.
land, buildings, equipment, improvements, construction in progress, and infrastructure), less any debt
used to acquire capital assets still outstanding. The Town uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the Town’s investment
in its capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources since the capital assets themselves cannot be used to
liquidate these liabilities.
An additional portion of the Town’s net position, $2,034,916 (3.4%), represents resources that are subject
to external or internal restrictions on how they may be used. The remaining balance of $5,766,947 (9.6%)
represents unrestricted net position which is available for the Town’s ongoing expenses.
Table 1
Condensed Statement of Net Position
At September 30, 2017 and 2016
2017 2016 2017 2016 2017 2016
Current and other assets 30,062,328$ 23,271,426$ 5,254,725$ 4,197,173$ 35,317,053$ 27,468,599$
Capital assets 67,940,280 62,414,763 11,690,171 12,173,674 79,630,451 74,588,437
Total Assets 98,002,608$ 85,686,189$ 16,944,896$ 16,370,847$ 114,947,504$ 102,057,036$
Deferred outflows of resources 2,446,574 2,546,463 94,162 84,021 2,540,736 2,630,484
Noncurrent liabilities 39,936,334 30,117,478 6,333,158 6,308,304 46,269,492$ 36,425,782$
Other liabilities 2,402,774 2,984,891 8,869,026 8,143,561 11,271,800 11,128,452
Total Liabilities 42,339,108 33,102,369 15,202,184 14,451,865 57,541,292$ 47,554,234$
Deferred inflows of resources 61,642 81,326 - - 61,642 81,326
Net investments in capital assets 46,499,873 38,299,337 5,583,570 6,044,363 52,083,443$ 44,343,700$
Restricted 2,034,916 7,489,048 - - 2,034,916 7,489,048
Unrestricted 9,513,643 9,260,572 (3,746,696)(4,041,360)5,766,947 5,219,212
Total Net Position 58,048,432$ 55,048,957$ 1,836,874$ 2,003,003$ 59,885,306$ 57,051,960$
Net Position
Governmental Activities Business-type Activities Total
Assets
Liabilities
14
Table 2
Changes in Net Position
For the Years Ended September 30, 2017 and 2016
2017 2016 2017 2016 2017 2016
Program revenues
Fees, fines and charges for services 4,471,161$ 3,794,327$ 4,825,599$ 3,979,201$ 9,296,760$ 7,773,528$
Operating grant and contributions 8,047,113 7,863,168 - - 8,047,113 7,863,168
Capital grants and contributions 3,485,255 269,185 - - 3,485,255 269,185
General revenues
Taxes
Sales taxes 4,650,744 4,609,523 - - 4,650,744 4,609,523
Property taxes 1,576,750 1,476,355 - - 1,576,750 1,476,355
Hotel occupancy taxes 751,601 822,490 - - 751,601 822,490
Mixed beverage taxes 68,432 61,476 - - 68,432 61,476
Franchise taxes 818,423 930,043 - - 818,423 930,043
Interest on investments 182,095 55,600 28,684 13,095 210,779 68,695
Miscellaneous 278,071 241,501 50,000 - 328,071 241,501
Total revenues 24,329,645 20,123,668 4,904,283 3,992,296 29,233,928$ 24,115,964$
General governmental 5,716,302 4,491,557 - - 5,716,302 4,491,557
Public safety 3,063,003 2,737,084 - - 3,063,003 2,737,084
Culture and recreation 217,489 187,274 - - 217,489 187,274
Economic development 163,578 141,779 - - 163,578 141,779
Public works 1,634,549 1,102,636 - - 1,634,549 1,102,636
Visitor services 737,071 740,835 - - 737,071 740,835
Education 8,566,295 9,516,287 - - 8,566,295 9,516,287
Interest on long-term debt 1,401,199 990,413 - - 1,401,199 990,413
Water and sewer - - 4,893,075 5,519,116 4,893,075 5,519,116
Cemetery - - 8,021 7,831 8,021 7,831
Total expenses 21,499,486 19,907,865 4,901,096 5,526,947 26,400,582 25,434,812
Increase (decrease) in net
position before transfers 2,830,159 215,803 3,187 (1,534,651) 2,833,346 (1,318,848)
Transfers 169,316 264,578 (169,316)(264,578)- -
Change in net position 2,999,475 480,381 (166,129) (1,799,229) 2,833,346 (1,318,848)
Net position, beginning 55,048,957 54,568,576 2,003,003 3,802,232 57,051,960 58,370,808
Net position, ending 58,048,432$ 55,048,957$ 1,836,874$ 2,003,003$ 59,885,306$ 57,051,960$
Expenses
Governmental Activities Business-type Activities Total
Revenues
15
Governmental activities: Governmental activities increased the Town's net position by $2,999,475 (5.45%),
increasing net position from $55,048,957 to $58,048,432. Unrestricted net position, the part of net position
that can be used to finance day-to-day operations without constraints established by debt covenants,
enabling legislation, other legal requirements, and/or Council or management's decision, increased by
$816,934.
Total revenues for governmental activities increased by $4,205,977 when compared to the prior year.
General revenue had an increase of $129,128, while program revenues had an increase of $4,076,849.
Program revenues
Fees, fines and charges for services increased $676,834. The permit and review fees received
from Charles Schwab & Co. were the major contributor to this increase
Operating Grants and Contributions increased by $293,945 mostly due the contribution of
funds to Westlake Academy for the purchase of a school bus as well as additional state
funding.
Capital Grants and Contributions increased by $3,106,070 with the major portion being
attributed to the donation of land for the Fire/EMS station and revenues restricted for the
benefit of Westlake Academy based on economic development agreements.
General revenues
Interest on Investments increased by $182,095 due to the addition of bond and tax note funds.
Sales tax increased by $41,201 in addition to an increase of $98,364 in property tax.
Hotel occupancy taxes decreased by $70,889. There have been several new hotels in the area
that are competing with the Marriott. Efforts are being made to retain and attract additional
meetings and tourist stays.
Franchise fees decreased by $111,620 primarily due to AT&T and Verizon receipts.
Expenses
Total expenses for governmental activities increased by $1,062,685 or approximately 5%.
General Government expenditures reflected a 40% increase of $1.3M; Payroll and related
taxes/retirement increased with the addition of staff; increase in consultant fees was related
to local PID expenditures with the majority of the increase due to the relocation of Town Hall
including additional furniture, network equipment transfer and replacements.
Education expenditures decreased by 5% ($426K) which was created by an accounting entry
made in the prior years to recognize a capital lease. This amount was offset with lease
proceeds in Other Resources.
Public Safety saw a 9% increase of $230K primarily due to payroll and related taxes/
retirement increases based on market adjustments.
16
Business-type Activities: The net position of our business-type activities ended fiscal year 2017 at
$1,836,874 compared with $2,003,003 in 2016. This represents a decrease in net position of $166,129 , or 8%
less than the prior fiscal year.
Revenues (Charges for Services) for business-type activities for the fiscal year ending September 30, 2017
were $4,825,599; an increase of $846,398 or 21%. Operating expenses for the business-type activities for
the fiscal year ending September 30, 2017 were $4,023,410; a decrease of $684,148 or 15%. This decrease
was primarily attributed to a payment to the City of Fort Worth for the Town’s proportionate share of water
system upgrades to provide Westlake with future capacity needs in the prior year offset by a settle-up
with the City of Southlake related to wastewater treatment.
Financial Analysis of the Town's Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the Town's governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a town's
net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund
balances of $27,808,118; an increase of $7,412,296 in comparison with the prior year. Approximately 35%
of this total ($10,363,702) constitutes unassigned fund balance, which is available for spending at the
government's discretion. The remainder of fund balance is non-spendable, restricted, committed or
assigned to indicate that it is not available for new spending because it has already been committed.
The following tables present a summary of general, special revenue, capital project, and debt service
fund revenues and expenditures for the fiscal year ended September 30, 2017, and the amount and
percentage of increases and decreases in relation to the prior year.
Table 3
Summary of Governmental Funds Revenues
Increase Percent
2016-17 Percent (Decrease)Increase
Amount Of Total From 2015-16 (Decrease)
Taxes
Sales taxes 4,650,744$ 20.6%41,221$ 0.9%
Property taxes 1,577,815 7.0%98,364 6.7%
Mixed beverage taxes 68,432 0.3%6,956 11.3%
Hotel occupancy taxes 751,601 3.3%(70,889)-8.6%
Franchise taxes 818,423 3.6%(111,620)-12.0%
Subtotal - Taxes 7,867,015 34.8%(35,968)-0.5%
State program 6,603,358 29.2%54,996 0.8%
Federal program 140,152 0.6%41,588 42.2%
Interest income 182,095 0.8%138,076 313.7%
Building permits and fees 3,521,686 15.6%806,450 29.7%
Fines and penalties 673,716 3.0%(122,298) -15.4%
Intergovernmental - 0.0%- 0.0%
Contributions 728,887 3.2%(18,502,269) -100.5%
Miscellaneous 2,863,801 12.8%1,325,546 86.2%
Total Revenues 22,580,710$ 100.0%(16,293,879)$ -42.8%
Revenues
17
Table 4
Summary of Governmental Funds Expenditures
Increase Percent
2016-17 Percent (Decrease)Increase
Amount Of Total From 2015-16 (Decrease)
General government 4,596,827$ 16.6%1,316,320$ 40.1%
Public safety 2,684,244 9.7%230,387 9.4%
Culture and recreation 164,720 0.6%(21,203) -11.4%
Economic development 163,578 0.6%21,799 15.4%
Public works 784,279 2.8%10,528 1.4%
Visitor services 717,055 2.6%(8,916) -1.2%
Education 8,819,174 31.9%(426,418) -4.6%
Capital outlay 7,082,844 25.7%(2,479,110) -25.9%
Debt services 2,598,351 9.3%500,450 23.9%
Total Expenditures 27,611,072$ 100.0%(856,163)$ -3.0%
Expenditures
Below are summaries and explanations of the changes in fund balances from fiscal year 2016 to fiscal
year 2017 of the Governmental Funds that are contained in the above totals.
General Fund - Fund balance increased $1,258,019 (13%). At the end of the current fiscal year, fund
balance for the general fund was $10,937,492, an increase of $1,258,019 in comparison with the prior year.
Of this total, $10,363,702 is unassigned. This represents 125% of the total general fund expenditures and is
equivalent to 489 operating days.
Revenues increased $1.1M - The Planning and Development department realized the biggest
increase in revenues with the majority ($1.7M) coming from inspection/plan review fees,
reforestation, building permit fees and PID inspection fees. Other permits and fees decreased $900K
due to the PID reimbursement fund receiving one-time revenue of $743K in the prior year.
Expenditures increased 1.9M - Payroll and related taxes, insurance and retirement increased $567K
due to the addition of employees and market adjustments. Maintenance and replacement projects
increased $685K due to the relocation of the Town Hall and subsequent purchases of furniture and
equipment.
Westlake Academy - Fund balance decreased by $193,514 primarily due to the reduction of state
revenue because the student enrollment was less than originally anticipated. In addition, there were
additional transportation costs for the rental of buses for field trips and athletic activities due to the small
size of the Academy’s current two buses (16 and 18 passenger). A new bus was purchased for fiscal year
2017-2018 with a 71 passenger capacity.
Visitors Association Fund - Fund balance decreased by $212,781 largely due to the debt service payment
transferred out for the Arts and Sciences Center.
Capital Projects Fund - Fund balance increased by $10,708,715 largely due the proceeds of the bond
issuance and tax notes for the construction of the Fire/EMS complex
Westlake Academy Expansion Fund - Fund balance increased by $1,016,218 (from $397,127 to
$1,413,345). This fund was created to account for proceeds from long-term financing and revenue and
expenditures related to authorized construction related to the expansion of Westlake Academy facilities.
The original project for this fund was completed in FY 2015. Transfers in will be recorded for lot fee revenue
based on an economic development agreement related to lot sales in several residential sub-division in
future years.
18
Solana Public Improvement District (PID) Capital Project Fund - Fund balance decreased by $5,145,966
due to infrastructure construction on the project. This fund was created in FY 2015 to detail the funds
contributed based on bond proceeds for the construction of infrastructure for the Entrada development.
All infrastructure will be conveyed to the Town upon completion.
Proprietary Funds. - The Town's proprietary fund statements provide the same type of information found
in the government-wide financial statements with greater detail. Total net position of the Proprietary Funds
amounted to $1,836,874, a decrease of $166,129.
General Fund Budgetary Highlights
The General Fund budget for fiscal year 2017 was amended in total to increase the net change in fund
balance from ($214,923) to $207,481, a total increase of $422,404. The amended budget for net revenues
was increased by $515K (6%) based on anticipated increases in building permits and fees. The amended
budget for net expenditures was increased by $210K (2%). This was primarily due to additional needs
related to the relocation of the Town Hall.
The General Fund actual revenue collections/other sources were more than the amended budget by
$603K primarily due to the receipt of building permits and fees that were not anticipated until the
FY 17-18. Actual expenditure costs/other uses were less than the amended budget by $447K due mostly
to less than anticipated service expenditures.
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, 2017, totaled $79,630,451 (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
$5,042,014 or 7% mostly due to additional construction in progress related to the Public Improvement
District, the Fire/EMS Complex, and the E. Dove Road Reconstruction/Drainage Project totaling $6.6M. This
increase was offset by the sale of land in the amount of $1.2M.
Table 5
Town’s Capital Assets
(Net of Accumulated Depreciation)
2017 2016 2017 2016 2017 2016
Land 12,446,059$ 11,896,664$ -$ -$ 12,446,059$ 11,896,664$
Capital improvements 9,865,482 10,335,819 9,734,945 10,097,620 19,600,427 20,433,439
Building 25,699,186 26,351,151 25,699,186 26,351,151
Machinery and equipment 1,252,399 1,614,268 1,536,311 1,669,017 2,788,710 3,283,285
W/W treatments rights 89,885 121,645 89,885 121,645
Construction in progress 18,677,154 12,216,861 329,030 285,392 19,006,184 12,502,253
Total capital assets 67,940,280$ 62,414,763$ 11,690,171$ 12,173,674$ 79,630,451$ 74,588,437$
Governmental Activities Business-type Activities Total
Additional information on the Town's capital assets can be found in Note 4 on pages 56 - 57 of this
report.
19
Long-term liabilities - At the end of the current fiscal year, the Town had total long-term debt outstanding
of $43,741,665. Of this amount, $36,207,000 represents bonded indebtedness, $162,004 capital leases,
$238,404 in loans and $5,126,958 contractual obligations. During the fiscal year 2016-2017, the Town's total
debt payable increased by $9,625,356. This increase was mainly due to the sale of bonds and tax notes
for the Fire/EMS complex as well as the scheduled repayment of principal and interest on outstanding
bonded debt and offset by a savings due to the refunding on the Town’s Series 2007 CO’s.
Standard & Poor's Ratings Services, a division of McGraw-Hill, Inc. has recently increased the Town's rate
from AA+/stable to AAA/stable. Additional information about the rating agency or the significance of the
rating provided may be obtained from Standard & Poor's web site. Additional information on the Town's
long-term debt can be found in Note 5 on pages 58 – 65.
Table 6
Outstanding Debt at Year-End
2017 2016 2017 2016 2017 2016
General obligation bonds 15,267,000$ 16,685,000$ -$ -$ 15,267,000$ 16,685,000$
Certificates of obligation 19,990,700 9,485,700 949,300 971,300 20,940,000 10,457,000
Contractual obligations - - 5,126,958 5,126,958 5,126,958 5,126,958
Capital leases 162,004 563,045 - - 162,004 563,045
Premium on bonds 1,578,909 657,912 29,881 31,053 1,608,790 688,965
Notes payable 238,404 275,101 238,404 275,101
Compensated absences 333,005 274,216 65,504 46,024 398,509 320,240
Total long-term debt 37,570,022$ 27,940,974$ 6,171,643$ 6,175,335$ 43,741,665$ 34,116,309$
Governmental Activities Business-type Activities Total
The Town’s net pension liability relative to its participation in Texas Municipal Retirement System (TMRS)
increased from $1,215,618 as of September 30, 2016 to $1,476,481 as of September 30, 2017. The
Academy’s proportionate share of the Teacher Retirement System (TRS) net pension liability decreased
from $1,093,865 as of August 31, 2016 to $1,051,346 as of August 31, 2017.
Economic Factors and Next Year's Budgets
In the FY 2017-18 adopted budget, the General Fund balance is anticipated to decrease by $1.4M.
Adopted revenue collections are budgeted to be less than the 2017 actuals by $1.0.M (10%) primarily
due to prior year one-time building fees and permits offset by additional general sales tax revenues due
to a negotiated development agreement and additional property taxes.
Anticipated expenditures will be approximately $600K more than the prior year. Payroll increases create
most of this increase with approximately $500K (market adjustments, two additional employees, increased
insurance and benefits. Transfers out are estimated to increase by $1.3M. The FY 17-18 budgeted amounts
include transfers of one-time revenues from various commercial projects to the Capital Projects Fund for
future use. The transfer to the Debt Service Fund increased to cover additional debt service requirements.
As stated in the Transmittal Letter, the Town’s budget continues to be impacted by encouraging
economic signs. Growth in Westlake, along the SH 114 corridor and with the progress of our new mixed-
use development, Entrada, should continue to increase the commercial revenue sources. Additionally,
increases are expected in residential-related revenues due to new housing developments.
20
Contacting the Town's Finance Department
This financial report is designed to provide our citizens, customers, and investors and creditors with a
general overview of the Town's finances and to demonstrate the Town's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact Debbie
Piper, Town of Westlake Finance Director, at 817-490-5712 or email at dpiper@westlake-tx.org.
21
Town of Westlake
22
Basic Financial Statements
23
Town of Westlake
Town of Westlake Exhibit A-1
Statement of Net Position
September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
24
Primary Government
Discretely
Governmental Business-type Presented
Activities Activities Total Component Units
Cash and cash equivalents 26,295,605$ 3,722,146$ 30,017,751$ 6,171,501$
Receivables (net of allowance)1,848,083 1,154,947 3,003,030 410,969
Inventories - 95,197 95,197 -
Other assets 262,106 - 262,106 161,211
Restricted cash and cash equivalents 1,656,534 282,435 1,938,969 3,132,602
Capital assets:
Land and construction in progress 31,123,213 329,030 31,452,243 5,099,597
Buildings and improvements 47,342,288 14,899,416 62,241,704 52,590,312
Wastewater treatment rights - 635,199 635,199 -
Machinery and equipment 4,652,500 3,560,780 8,213,280 4,690,979
Less accumulated depreciation (15,177,721) (7,734,254) (22,911,975) (29,929,128)
Total capital assets 67,940,280 11,690,171 79,630,451 32,451,760
Total assets 98,002,608 16,944,896 114,947,504 42,328,043
Deferred outflows of resources - TRS pension 672,957 - 672,957 -
Deferred outflows of resources - TMRS 766,614 94,162 860,776 -
Deferred loss on refunding 1,007,003 - 1,007,003 -
Total deferred outflows of resources 2,446,574 94,162 2,540,736 -
Accounts payable 2,247,373 440,488 2,687,861 324,020
Customer deposit payable - 232,435 232,435 -
Unearned revenue 1,850 406,350 408,200 946,645
Accrued interest payable 153,551 7,789,753 7,943,304 26,401,717
Noncurrent liabilities:
Due within one year
Long-term debt 1,717,681 235,093 1,952,774 3,420,000
Compensated absences 33,301 6,550 39,851 -
Due in more than one year
Long-term debt 35,519,336 5,871,046 41,390,382 48,949,301
Compensated absences 299,704 58,954 358,658 -
TRS pension liability 1,051,346 - 1,051,346 -
TMRS pension liability 1,314,966 161,515 1,476,481 -
Total liabilities 42,339,108 15,202,184 57,541,292 80,041,683
Deferred inflows - TRS pension 61,642 - 61,642 -
Total deferred inflows of resources 61,642 - 61,642 -
Net investment in capital assets 46,499,873 5,583,570 52,083,443 (19,917,541)
Restricted for:
Tourism 799,170 - 799,170 -
Construction 797,234 - 797,234 -
Court security and technology 219,693 - 219,693 -
Future projects 13,789 - 13,789 -
Debt service - - - -
Education 205,030 - 205,030 -
Unrestricted 9,513,643 (3,746,696) 5,766,947 (17,796,099)
Total net position 58,048,432$ 1,836,874$ 59,885,306$ (37,713,640)$
NET POSITION
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
DEFERRED OUTFLOWS OF RESOURCES
Town of Westlake
Statement of Activities
For the Year Ended September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
25
Program Revenues
Primary Government
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
PRIMARY GOVERNMENT
Governmental activities:
General government 5,716,302$ 73,180$ -$ 5,956$
Public safety 3,063,003 783,681 532 -
Cultural and recreation 217,489 - 3,100 -
Public works 1,634,549 3,338,541 - 2,359,299
Economic development 163,578 - - 1,010,000
Visitor services 737,071 - - -
Education 8,566,295 275,759 8,043,481 110,000
Interest on long-term debt 1,401,199 - - -
Total governmental activities 21,499,486 4,471,161 8,047,113 3,485,255
Business-type activities:
Water and sewer 4,893,075 4,815,635 - -
Cemetery 8,021 9,964 - 50,000
Total business-type activities 4,901,096 4,825,599 - 50,000
Total primary government 26,400,582$ 9,296,760$ 8,047,113$ 3,535,255$
Reported Discretely Presented
Component Units 13,366,606$ 11,235,925$ -$ -$
GENERAL REVENUES AND TRANSFERS
Taxes:
Sales taxes
Property taxes
Hotel occupancy taxes
Mixed beverage taxes
Franchise taxes
Interest Income
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
NET POSITION, beginning of year
NET POSITION, end of year
Functions/Programs
Exhibit A-2
26
Primary Government
Discretely
Governmental Business - Type Presented
Activities Activities Total Component Units
(5,637,166)$ -$ (5,637,166)$ -$
(2,278,790) - (2,278,790) -
(214,389) - (214,389) -
4,063,291 - 4,063,291 -
846,422 - 846,422 -
(737,071) - (737,071) -
(137,055) - (137,055) -
(1,401,199) - (1,401,199) -
(5,495,957) - (5,495,957) -
- (77,440) (77,440) -
- 51,943 51,943
- (25,497) (25,497) -
(5,495,957)$ (25,497)$ (5,521,454)$ -
-$ -$ -$ (2,130,681)$
4,650,744 - 4,650,744 -
1,576,750 - 1,576,750 -
751,601 - 751,601 -
68,432 - 68,432 -
818,423 - 818,423 -
182,095 28,684 210,779 33,164
278,071 - 278,071 -
169,316 (169,316) - -
8,495,432 (140,632) 8,354,800 33,164
2,999,475 (166,129) 2,833,346 (2,097,517)
55,048,957 2,003,003 57,051,960 (35,616,123)
58,048,432$ 1,836,874$ 59,885,306$ (37,713,640)$
Net (Expense) Revenue and
Changes in Net Position
Town of Westlake
Balance Sheet
Governmental Funds
September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
27
Debt
Westlake Service
General Academy Fund
ASSETS
Cash and cash equivalents 10,551,515$ 410,804$ 12,013$
Receivables :
Property taxes 5,216 - 433
Accounts receivable 1,021,417 446,291 -
Due from other funds 201,723 - -
Prepaid items 18,705 235,539 -
Restricted cash and cash equivalents - - -
TOTAL ASSETS 11,798,576$ 1,092,634$ 12,446$
LIABILITIES, DEFFERED INFLOWS OF
RESOURCES AND FUND BALANCE:
Liabilities:
Accounts payable 856,482$ 126,856$ 98$
Unearned revenue - 530 -
Due to other funds - - -
Total liabilities 856,482 127,386 98
DEFERRED INFLOWS OF RESOURCES
Unavailable grant funds - - -
Unavailable resources - property taxes 4,602 - 385
Total deferred inflows of resources 4,602 - 385
FUND BALANCES
Nonspendable:
Prepaid items 18,705 235,539 -
Restricted for:
Tourism - - -
Capital items - - -
Court security, technology, and Bonds 219,693 - -
Debt service - - 11,963
Future projects - - -
Education - 729,709 -
Committed for:
Street and tree improvements 335,392 - -
Unassigned 10,363,702 - -
Total fund balances 10,937,492 965,248 11,963
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 11,798,576$ 1,092,634$ 12,446$
Exhibit A-3
28
Solana PID Nonmajor Total
Capital Capital Governmental Governmental
Projects Projects Funds Funds
13,124,934$ -$ 2,196,339$ 26,295,605$
- - - 5,649
- - 374,726 1,842,434
- - - 201,723
- - 7,862 262,106
- 1,656,534 - 1,656,534
13,124,934$ 1,656,534$ 2,578,927$ 30,264,051$
255,057$ 859,300$ 149,580$ 2,247,373$
- - 1,320 1,850
- - 201,723 201,723
255,057 859,300 352,623 2,450,946
- - - -
- - - 4,987
- - - 4,987
- - 7,862 262,106
- - 791,308 791,308
12,869,877 797,234 1,413,345 15,080,456
- - - 219,693
- - - 11,963
- - 13,789 13,789
- - - 729,709
- - - 335,392
- - - 10,363,702
12,869,877 797,234 2,226,304 27,808,118
13,124,934$ 1,656,534$ 2,578,927$ 30,264,051$
Town of Westlake Exhibit A-4
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
29
Total fund balance-governmental funds balance sheet 27,808,118$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not current financial resources
and therefore are not reported in the governmental funds balance sheet.67,940,280
Deferred losses on refunding are reported as deferred outlfows of resources
in the government-wide statement of net position.1,007,003
Revenues earned but not available within sixty days of the fiscal year-end are not
recognized as revenue in the fund financial statements.4,987
Deferred outflows of resources related to the Town's and Academy's net
pension liability increase net position by $766,614 and $672,957, respectively;
while the Academy's deferred resource inflows related to the net pension
liability decreases net position by $61,642. This amount is the net effect.1,377,929
Interest payable on long-term debt does not require current financial resources, therefore
interest payable is not reported as a liability in the governmental funds balance sheet.(153,551)
Long-term liabilities, including bonds payable, are not due and payable in the current
period, and therefore are not reported in the fund financial statements.(39,936,334)
NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of net position 58,048,432$
30
Town of Westlake
Town of Westlake
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
31
Westlake Debt
General Academy Service Fund
REVENUES
Taxes
Sales 3,353,658$ -$ -$
Property 1,482,625 - 95,190
Mixed beverage 68,432 - -
Hotel occupancy - - -
Franchise 818,423 - -
State program revenues - 6,603,358 -
Federal program revenues - 140,152 -
Interest income 67,680 5,371 -
Building permits and fees 3,521,686 - -
Fines and penalties 673,716 - -
Contributions 110,532 - -
Miscellaneous 275,404 1,575,730 -
Total revenues 10,372,156 8,324,611 95,190
EXPENDITURES
Current
General government 4,596,827 - -
Public safety 2,684,244 - -
Cultural and recreation 164,720 - -
Public works 784,279 - -
Economic development - - -
Visitor services - - -
Education - 8,819,174 -
Capital outlay 29,612 - -
Debt service
Principal retirement 36,697 - 1,088,000
Interest and other fiscal charges - 13,951 1,091,425
Bond issuance costs - - 116,592
Total expenditures 8,296,379 8,833,125 2,296,017
Excess (deficiency) of revenues
Over (Under) Expenditures 2,075,777 (508,514) (2,200,827)
OTHER FINANCING SOURCES (USES)
Transfers in 230,336 315,000 2,065,730
Transfers out (1,048,094) - -
Proceeds from sale of assets - - -
Refunding bonds issued - - 5,795,000
Payment to refunding bond escrow agent - - (6,452,467)
Premium on bonds and certificates issued - - 774,059
Cerificates of obligation issued - - -
Net other financing sources (uses)(817,758) 315,000 2,182,322
NET CHANGE IN FUND BALANCES 1,258,019 (193,514) (18,505)
FUND BALANCES, AT BEGINNING OF YEAR 9,679,473 1,158,762 30,468
FUND BALANCES AT END OF YEAR 10,937,492$ 965,248$ 11,963$
Exhibit A-5
32
Solana PID Nonmajor Total
Capital Capital Governmental Governmental
Projects Projects Funds Funds
-$ -$ 1,297,086$ 4,650,744$
- - - 1,577,815
- - - 68,432
- - 751,601 751,601
- - - 818,423
- - - 6,603,358
- - - 140,152
72,428 23,234 13,382 182,095
- - - 3,521,686
- - - 673,716
609,299 5,956 1,013,100 1,738,887
- - 2,667 1,853,801
681,727 29,190 3,077,836 22,580,710
- - - 4,596,827
- - - 2,684,244
- - - 164,720
- - - 784,279
- - 163,578 163,578
- - 717,055 717,055
- - - 8,819,174
1,878,076 5,175,156 - 7,082,844
- - - 1,124,697
- - - 1,105,376
251,686 - - 368,278
2,129,762 5,175,156 880,633 27,611,072
(1,448,035) (5,145,966) 2,197,203 (5,030,362)
- - 1,010,000 3,621,066
- - (2,403,656) (3,451,750)
1,200,000 - - 1,200,000
- - - 5,795,000
- - - (6,452,467)
246,750 - - 1,020,809
10,710,000 - - 10,710,000
12,156,750 - (1,393,656) 12,442,658
10,708,715 (5,145,966) 803,547 7,412,296
2,161,162 5,943,200 1,422,757 20,395,822
12,869,877$ 797,234$ 2,226,304$ 27,808,118$
Town of Westlake Exhibit A-6
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, 2017
The Notes to the Financial Statements are an integral part of this statement.
33
Net change in fund balances- total governmental funds.7,412,296$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense.6,771,224
Developers contributions that are not reported at the fund level but reported as revenue
for the governmental activities.1,750,000
Depreciation expense on capital assets is reported in the statement of activities but does not
require the use of current financial resources. Therefore, depreciation expense is not
reported as expenditures in the governmental funds.(1,795,102)
Loss on sale of capital assets decreases net position in the government-wide financial
statements, but only proceeds from the sale are recorded in the governmental funds
financial statements. This amount represents the reduction in capital assets.(1,200,605)
The repayment of the principal of long term debt consumes the current financial resources of
governmental funds, but has no effect on net position. The amortization of bond premiums
and deferred gain/loss on refunding of long term debt is reported in the statement of
activities but does not require the use of current financial resources. Therefore, the
effect of the amortization of these various items are not reported in the statement of
revenues, expenditures, and changes in fund balance.
This amount represents the net effect of the following items:
Bonds and certificates issued (16,505,000)
Bonds repaid through escrow agent 6,330,000
Capital lease payments 401,041
Bond premiums (1,020,809)
Repayments 1,124,697
Deferred loss on refunding 122,467
Amortization of deferred loss on refunding (108,507)
Amortization of premium on bonds 99,812 (9,556,299)
Current year changes in accrued interest payable does not require the use of current
financial resources; and therefore, are not reported as expenditures in governmental funds.(41,308)
Implementation of GASB 68 requires certain expenditures to be de-expended and recorded as deferred
outflows of resources. The changes in deferred outflows from pension activity for TMRS increased
net position $82,565. The changes of net pension liability decreased net position by $232,327.
This amount is the net effect.(149,762)
Implementation of GASB 68 also affected the Academy. Contributions made to TRS after the
measurement date caused the change in net position to increase by $84,783. Contributions made
before the measurement period caused a decrease in the change in net position of $88,399.
The net share of the Academy's amount of deferred inflows and outflows of resources decreased
the change in net position by $130,595. This amount is the net effect.(134,211)
Current year changes in the long-term liability for compensated absences do not require
the use of current financial resources; and therefore, are not reported as expenditures in
governmental funds.(58,789)
Certain revenues in the government-wide statement of activities that do not provide current
financial resources are not reported as revenue in the governmental funds.2,031
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of activities 2,999,475$
Town of Westlake Exhibit A-7
Statement of Net Position
Proprietary Funds
September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
34
Utility Cemetery
Fund Fund Total
ASSETS
Current assets
Cash and cash equivalents 3,655,996$ 66,150$ 3,722,146$
Accounts receivable 1,154,947 - 1,154,947
Inventories - 95,197 95,197
Restricted cash and investments 232,435 50,000 282,435
Total current assets 5,043,378 211,347 5,254,725
Noncurrent assets
Capital assets
Construction in progress 329,030 - 329,030
Buildings and improvements 14,899,416 - 14,899,416
Wastewater treatment rights 635,199 - 635,199
Machinery and equipment 3,560,780 - 3,560,780
Less: accumulated depreciation (7,734,254) - (7,734,254)
Total capital assets 11,690,171 - 11,690,171
Total noncurrent assets 11,690,171 - 11,690,171
TOTAL ASSETS 16,733,549 211,347 16,944,896
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - TMRS pension 94,162 - 94,162
TOTAL DEFERRED OUTFLOWS OF RESOURCES 94,162 - 94,162
LIABILITIES
Current liabilities
Accounts payable 440,488 - 440,488
Customer deposits payable 232,435 - 232,435
Accrued interest payable 7,789,753 - 7,789,753
Unearned revenue 406,350 - 406,350
Compensated absences - current portion 6,550 6,550
Current portion of bonds payable 22,000 - 22,000
Contractual obligations 213,093 - 213,093
Total current liabilities 9,110,669 - 9,110,669
Long-term liabilities:
Bonds payable 927,300 - 927,300
Compensated absences 58,954 - 58,954
Contractual obligations 4,943,746 - 4,943,746
Net pension liability 161,515 - 161,515
Total long-term liabilities 6,091,515 - 6,091,515
TOTAL LIABILITIES 15,202,184 - 15,202,184
NET POSITION
Net investment in capital assets 5,583,570 - 5,583,570
Unrestricted (3,958,043) 211,347 (3,746,696)
TOTAL NET POSITION 1,625,527$ 211,347$ 1,836,874$
Town of Westlake Exhibit A-8
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
35
Utility Cemetery
Fund Fund Total
OPERATING REVENUES
Charges for services $4,636,861 9,964$ 4,646,825$
Miscellaneous revenue 178,774 - 178,774
Total operating revenues 4,815,635 9,964 4,825,599
OPERATING EXPENSES
Payroll costs 497,740 - 497,740
Professional and contract services 87,632 7,325 94,957
Depreciation 495,381 - 495,381
Amortization of wastewater treatment rights 31,760 - 31,760
Water purchases 1,215,465 - 1,215,465
Cost of cemetary lots sold - 696 696
Other operating costs 1,687,411 - 1,687,411
Total operating expenses 4,015,389 8,021 4,023,410
Net operating income 800,246 1,943 802,189
NON-OPERATING REVENUES (EXPENSES)
Interest income 27,517 1,167 28,684
Interest expense (877,686) - (877,686)
Total non-operating revenues (expenses)(850,169) 1,167 (849,002)
INCOME (LOSS) BEFORE TRANSFERS AND
CAPITAL CONTRIBUTIONS (49,923) 3,110 (46,813)
Capital contributions - 50,000 50,000
Transfer out (169,316) - (169,316)
Total transfers and capital contributions (169,316) 50,000 (119,316)
Change in net position (219,239) 53,110 (166,129)
Total net position, beginning of year 1,844,766 158,237 2,003,003
Total net position, end of year $1,625,527 211,347$ 1,836,874$
Town of Westlake Exhibit A-9
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
36
Utility Cemetery
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,855,577$ 9,964$ 4,865,541$
Payments to employees (459,855) - (459,855)
Payments to suppliers (3,116,398) (7,325) (3,123,723)
Net cash provided by operating activities 1,279,324 2,639 1,281,963
CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES
Transfer to other funds (169,316) - (169,316) -
Net cash used in noncapital financing activities (169,316) - (169,316)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on debt (22,000) - (22,000)
Interest paid on debt (144,556) - (144,556)
Capital contributions - 50,000 50,000
Investment earnings 27,517 1,167 28,684
Purchase of property and equipment (43,638) - (43,638)
Net cash provided by (used in) capital and related financing activities (182,677) 51,167 (131,510)
Net increase in cash 927,331 53,806 981,137
Cash and cash equivalents at the
beginning of the year 2,961,100 62,344 3,023,444
Cash and cash equivalents at the
end of the year 3,888,431$ 116,150$ 4,004,581$
RECONCILIATION OF TOTAL CASH AND CASH EQUIVALENTS
Cash and cash equivalents 3,655,996$ 66,150$ 3,722,146$
Restricted cash and cash equivalents 232,435 50,000 282,435
Total cash and cash equivalents 3,888,431$ 116,150$ 4,004,581$
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income 800,246$ 1,943$ 802,189$
Adjustments to reconcile operating income to net
cash provided by (used in) operating activities:
Depreciation and amortization 527,141 - 527,141
Pension expense 18,395 - 18,395
Changes in operating assets and liabilities:
Receivables (106,939) - (106,939)
Prepaid Items 29,828 - 29,828
Inventory - 696 696
Compensated absences 19,490 - 19,490
Accounts payable (155,718) - (155,718)
Customer deposits payable (4,750) - (4,750)
Unearned revenue 151,631 - 151,631
Net cash provided by operating activities 1,279,324$ 2,639$ 1,281,963$
Exhibit A-10
Town of Westlake
Statement of Fiduciary Net Position
Agency Fund
September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
37
PID Agency
Fund
ASSETS
Restricted cash and cash equivalents 2,085,576$
Total Assets 2,085,576$
LIABILITIES
Liability to bond holders 2,085,576$
Total Liabilities 2,085,576$
Town of Westlake Exhibit A-11
Discretely Presented Component Units
Combining Statement of Net Position
September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
38
Texas Student
Texas Student Housing
Housing Corporation Texas Student
Corporation College Station Housing
Denton Project Project Authority Total
Cash and cash equivalents 451,726$ 2,817,751$ 2,902,024$ 6,171,501$
Accounts receivable (net of allowance)38,297 371,976 696 410,969
Prepaid rent 109,298 51,913 - 161,211
Restricted assets:
Cash and cash equivalents 2,198,245 934,357 - 3,132,602
Capital assets:
Land 2,200,000 2,899,597 - 5,099,597
Buildings and improvements 25,705,000 26,885,312 - 52,590,312
Machinery and equipment 1,253,841 3,437,138 - 4,690,979
Less: accumulated depreciation (15,273,006) (14,656,122) - (29,929,128)
Total assets 16,683,401 22,741,922 2,902,720 42,328,043
LIABILITIES
Accounts payable and accrued expenses 254,737 66,692 2,591 324,020
Unearned revenue 169,130 740,058 37,457 946,645
Accrued interest payable 8,464,293 17,937,424 - 26,401,717
Bonds payable 23,950,101 28,419,200 - 52,369,301
Total liabilities 32,838,261 47,163,374 40,048 80,041,683
NET POSITION
Net investment in capital assets (10,064,266) (9,853,275) - (19,917,541)
Unrestricted (6,090,594) (14,568,177) 2,862,672 (17,796,099)
Total net position (16,154,860)$ (24,421,452)$ 2,862,672$ (37,713,640)$
LIABILITIES AND NET POSITION
ASSETS
Town of Westlake
Discretely Presented Component Units
Combining Statement of Activities
For the Fiscal Year Ended September 30, 2017
The Notes to the Financial Statements are an integral part of this statement.
39
Charges for Operating Grants Capital Grants
Functions/Programs Expenses Services and Contributions and Contributions
Business-type activities:
Texas Student Housing Authority 365,777$ 1,920,229$ -$ -$
Texas Student Housing Authority
College Station Project 7,364,984 3,944,039 - -
Denton Project 5,635,845 5,371,657 - -
Total business-type activities 13,366,606 11,235,925 - -
Total component units 13,366,606$ 11,235,925$ -$ -$
GENERAL REVENUES
Interest Income
Total general revenues
Change in net position
NET POSITION, beginning of year
NET POSITION, end of year
Program Revenues
Exhibit A-12
40
Texas Student
Texas Student Housing
Housing Corporation Texas Student
Corporation College Station Housing
Denton Project Project Authority Total
-$ -$ 1,554,452$ 1,554,452$
- (3,420,945) - (3,420,945)
(264,188) - - (264,188)
(264,188) (3,420,945) 1,554,452 (2,130,681)
(264,188)$ (3,420,945)$ 1,554,452$ (2,130,681)$
12,844 - 20,320 33,164
12,844 - 20,320 33,164
(251,344) (3,420,945) 1,574,772 (2,097,517)
(15,903,516) (21,000,507) 1,287,900 (35,616,123)
(16,154,860)$ (24,421,452)$ 2,862,672$ (37,713,640)$
Net (Expense) Revenues and Changes in Net Positions
41
Town of Westlake
Town of Westlake
Notes to the Financial Statements
42
Note 1. Summary of Significant Accounting Policies
The Town of Westlake, Texas (the Town) was incorporated under the provisions of the laws of the State of
Texas on December 26, 1956. The Town operates under a Council- Manager form of government and
provides the following services as authorized by the laws of the State of Texas: public safety; cultural and
recreation; and economic development.
The accounting and reporting policies of the Town conform to accounting principles generally accepted
in the United States of America for local governments. Generally accepted accounting principles (GAAP)
for local governments include those principles prescribed by the Governmental Accounting Standards
Board (GASB). The following is a summary of the more significant accounting and reporting policies:
Financial Reporting Entity
The accompanying financial statements present the government and its component units, entities for
which the government is considered to be financially accountable. Blended component units, although
legally separate entities, are, in substance, part of the Town's operations and are appropriately presented
as funds of the primary government. Discretely presented component units, on the other hand, are
reported in a separate column in the government-wide financial statements to emphasize it is legally
separate from the Town.
Based on these criteria, the financial information of the following entities have been blended or discretely
presented within the financial statements: Lone Star Public Facilities Corporation, 4B Economic
Development Corporation, Westlake Academy, Texas Student Housing Authority, Texas Student Housing
Corporation – College Station Project and Texas Student Housing Corporation – Denton Project.
The Texas Student Housing Authority, Texas Student Housing Authority – Jefferson Commons at Town Lake
Project, Texas Student Housing Corporation – College Station Project, and Texas Student Housing
Corporation – Denton Project (collectively, Texas Student Housing Entities) are Texas nonprofit
organizations as a duly constituted authority of the Town pursuant to Section 53.35(b) of the Texas
Education Code, as amended (Act). Texas Student Housing Entities' primary purpose is to construct, own,
and operate student housing facilities on college campuses in Texas. The board consists of seven directors
which are appointed by the Town's governing body and has the ability to remove at will the appointed
members; thus, the governing body can impose its will on the organizations. However, the board is not
substantively the same as the Town’s governing body; therefore, the Texas Student Housing Entities are
reported as discretely presented component units (enterprise funds). The Town is not responsible for the
long-term debt of the Texas Student Housing Entities. The Texas Student Housing Entities’ year-end is August
31.
Component Units
Discretely Presented
Separately issued financial reports are available for the all the Texas Student Housing Entities. These reports
may be obtained by contacting the following office.
Texas Student Housing Authority
99 Trophy Club Drive
Trophy Club, Texas 76262
Town of Westlake
Notes to the Financial Statements
43
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 its duly constituted authority
and instrumentality. The board of directors, appointed by the Town's governing body, is comprised of
seven members, of whom five must be members of the Town's governing body. Since the board of
directors is substantively the same as the Town's governing body, and a financial benefit relationship exists,
the entity has been reported as a blended component unit of the Town.
4B Economic Development Corporation is a Texas nonprofit industrial corporation under the
Development Corporation Act of 1979 formed to promote economic development within the Town and
the State of Texas in order to eliminate unemployment and underemployment, and to promote and
encourage employment and the public welfare of, for, and on behalf of the Town by developing,
implementing, financing, and providing one or more projects defined and permitted under Section 4B of
the Act. The board of directors is composed of seven persons appointed by the members of the Town's
governing board. Four of the members of the board of directors are members of the Town's governing
board. Since the board of directors is substantively the same as the Town's governing body, and a
financial benefit relationship exists, the entity has been reported as a blended component unit of the
Town.
Westlake Academy (Academy) is an open-enrollment charter school, as provided by Subchapter D,
Chapter 12, of the Texas Education Code. The Town of Westlake (Charter Holder) applied for and
became the first municipality in Texas to ever receive this special charter designation. The board consists
of six trustees and is appointed by the Town's governing body. Currently, all the members of the board of
trustees are members of the Town's governing body. Since the board of directors is substantively the same
as the Town's governing body, and a financial benefit relationship exists, the entity has been reported as
a blended component unit of the Town. The Academy's year-end is August 31.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the Town. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the
primary government is reported separately from certain legally separate component units for which the
primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual Governmental Funds and major individual Enterprise Funds are reported as separate columns
in the fund financial statements.
Town of Westlake
Notes to the Financial Statements
44
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. The General Fund includes the
Town’s Major Maintenance and Replacement Fund, Vehicle Replacement Fund, and PID (local) Fund.
Westlake Academy Fund – to account for all local, state and federal revenue and related educational
expenditures of the Academy.
Debt Service Fund – to account for resources accumulated and payments made for principal and interest
on long-term general obligation debt of governmental funds.
Capital Projects Fund – to account for proceeds from long-term financing and revenue and expenditures
related to authorized construction and other capital asset acquisitions other than those related to the
expansion of Westlake Academy facilities.
Town of Westlake
Notes to the Financial Statements
45
Solana Public Improvement District (PID) Capital Projects Fund – to account for the acquisition or
construction of capital facilities and improvements relating to the Solana public improvement district.
In addition, the Town reports the following nonmajor governmental funds:
Visitors Association Fund - to account for municipal hotel occupancy taxes collected and expenditures
to promote tourism and the convention and hotel industry.
Lone Star Public Facilities Corporation – to account for investment activity relating to the Lone Star Public
Facilities Corporation.
4B Economic Development Corporation – to account for sales tax collected to fund the activities of the
4B Economic Development Corporation.
Economic Development Fund – to account for sales tax and hotel occupancy tax collected to fund
activity relating to Economic Development agreements.
Westlake Academy Expansion Capital Projects Fund – to account for proceeds from long-term financing
and revenue and expenditures related to authorized construction related to the expansion of Westlake
Academy facilities.
The Town adopts an annual appropriated budget for all governmental funds except capital projects,
Solana PID capital projects, and Westlake Academy Expansion funds, which are project-length based
budgets. A budgetary comparison schedule has been provided for all appropriate funds to demonstrate
compliance with the budget.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the Town's Enterprise Fund are charges to customers for sales and services. Operating expenses for the
Enterprise Fund include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenue and expenses not meeting this definition are reported as nonoperating
revenue and expenses.
The Town reports the following major proprietary funds:
Utility Fund – to account for revenues and expenses related to providing water and sewer services to the
general public on a continuing basis.
Cemetery Fund – to account for the operations of the Town's cemetery.
The Town reports the following fiduciary fund:
Solana PID Agency Fund – to account for bond proceeds, assessments, and related debt associated with
bonds issued by the Town as an agent for the Solana public improvement district.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the Town's water and wastewater
function and various other functions of the government. Elimination of these charges would distort the
direct costs and program revenue reported for the various functions concerned.
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,
Town of Westlake
Notes to the Financial Statements
46
including special assessments. Internally dedicated resources are reported as general revenues rather
than as program revenue. Likewise, general revenue includes all taxes.
Assets, Liabilities, and Net Position or Equity
Cash and Cash Equivalents
Cash and investments of all funds, including restricted cash, are available upon demand and are
considered to be "cash equivalents."
For purposes of the statement of cash flows, the Town considers highly-liquid investments (including
restricted assets) with an original maturity of three months or less when purchased to be cash equivalents.
State statutes authorize the Town to invest in (1) obligations of the United States or its agencies and
instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the
principal of, and interest on, which are unconditionally guaranteed or insured by the State of Texas or the
United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any
state having been rated as to investment quality by a nationally recognized investment rating firm and
having received a rating of not less than "A" or its equivalent; (5) certificates of deposit by state or national
banks domiciled in this state that are (a) guaranteed or insured by the Federal Deposit Insurance
Corporation, or its successor; or, (b) secured by obligations that are described by (1) - (4); or (6) fully
collateralized direct repurchase agreements having a defined termination date, secured by obligations
described by (1) pledged with third-party selected or (2) approved by the Town, and placed through a
primary government securities dealer. All investments are recorded at fair value based on quoted market
prices. Fair value is the amount at which a financial instrument could be exchanged in a current
transaction between willing parties.
Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as "due to/from other funds" (i.e., the current portion of interfund
loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund
balance in applicable governmental funds to indicate that they are not available for appropriation and
are not expendable available financial resources.
The Town's property taxes are levied on October 1 on the assessed value listed as of the prior January 1
for all real and business personal property located in the Town. Assessed values are established at 100%
of estimated market value. Property taxes attach as an enforceable lien on property as of January 1.
Taxes are due by January 31 following the October 1 levy date and are considered delinquent after
January 31 of each year.
All property tax receivables are shown net of an allowance for uncollectibles. The net property tax
receivable allowance is equal to management’s estimate of uncollectible outstanding property taxes at
September 30, 2017.
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.
Town of Westlake
Notes to the Financial Statements
47
Inventories and Prepaid Items
Inventories, which are expended as they are consumed, are stated at the lower of cost or market on a
first-in, first-out basis.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government-wide and fund financial statements.
Fund Changes and Transactions between Funds
Legally authorized transfers are treated as transfers in and out and are included as other financing sources
(uses) of both governmental and proprietary funds.
The Town allocates an indirect cost percentage of the salaries, wages and related costs of personnel who
perform administrative services as well as other indirect costs necessary for the operation of various funds.
Expenses are budgeted and paid from the appropriate fund.
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 acquisition value on the date
donated. Assets capitalized have an original cost of $5,000 or more and three years or more of life. All
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), regardless of the acquisition date
or amount, have been included. Estimated historical cost for initial reporting of infrastructure assets (those
reported by governmental activities) was valued by estimating the current replacement cost of the
infrastructure and using an index to deflate the cost to the estimated acquisition/construction year. As
the Town constructs or acquires additional capital assets, including infrastructure assets, they are
capitalized and reported at historical cost.
Depreciation has been calculated on each class of depreciable property using the straight-line method.
Estimated useful lives are as follows:
Years
Water and sewer system 10-50
Buildings 20-50
Machinery and equipment 3-30
Improvements 5-30
Information systems and software 3
Assets
Town of Westlake
Notes to the Financial Statements
48
Compensated Absences
The Town's policy allows employees to earn 5 days of vacation and 5 days of sick leave between six
months and one year of service, and 10 days of vacation and 10 days of sick leave between one year
and two years of service and each successive year through five years of service. After completion of 5
years of service, 15 days of vacation and 15 days of sick leave per year are earned. After completion of
10 years of service, 20 days of vacation and 20 days of sick leave per year are earned. The Town makes
sick and vacation time available in full at the beginning of each year, and hours are actually earned
throughout the year. Unused, earned vacation hours are paid upon termination or retirement at the
employee's normal hourly rate; accumulated, unused sick time is only payable upon retirement, death of
the employee, or other circumstances when authorized by the Town Manager.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the straight-line method, which
approximates the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount. In the fund financial statements, governmental fund types recognize bond
premiums and discounts, as well as issuance costs during the current period. The face amount of the debt
issued is reported as other financing sources. Premiums received on debt issuances are reported as other
financing sources while discounts are reported as other financing uses. Issuance costs, even if withheld
from the actual proceeds, are reported as expenditures.
Fund Equity and Net Position
The governmental fund financial statements present fund balances based on classifications that
comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints
on the specific purposes for which amounts in the respective governmental funds can be spent.
The classifications used in the governmental fund financial statements are as follows:
Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not
in spendable form or (b) are legally or contractually required to be maintained intact. Nonspendable
items are not expected to be converted to cash or are not expected to be converted to cash within the
next year.
Restricted: This classification includes amounts for which constraints have been placed on the use of the
resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments, or (b) imposed by law through constitutional provisions or enabling legislation.
Committed: This classification includes amounts that can be used only for specific purposes pursuant to
constraints imposed by board resolution of the Town council, the Town's highest level of decision making
authority. These amounts cannot be used for any other purpose unless the Town council removes or
changes the specified use by taking the same type of action that was employed when the funds were
initially committed. This classification also includes contractual obligations to the extent that existing
resources have been specifically committed for use in satisfying those contractual requirements.
Assigned: This classification includes amounts that are constrained by the Town's intent to be used for a
specific purpose but are neither restricted nor committed. In the General Fund, assigned amounts
represent intended uses established by the Town Council or the Town Finance Director who has been
delegated that authority.
Town of Westlake
Notes to the Financial Statements
49
Unassigned: This classification includes the residual fund balance for the General Fund. The unassigned
classification also includes negative residual fund balance of any other governmental fund that cannot
be eliminated by offsetting of assigned fund balance amounts.
In the government-wide financial statements, net position represents the difference between assets and
liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balances of any borrowing used for the acquisition, construction or
improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted
when there are limitations imposed on its use either though the enabling legislations adopted by the Town
or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.
The government-wide and fund level financial statements report restricted fund balances for amounts
not available for appropriation or legally restricted for specific uses. When an expenditure is incurred for
purposes for which both restricted and unrestricted fund balance is available, it is the Town's policy to use
restricted resources first, then unrestricted resources as needed. When an expenditure is incurred for which
committed, assigned, or unassigned fund balances are available, the Town considers amounts to have
been spent first out of committed funds, then assigned funds, and finally unassigned funds.
Summary of Significant Accounting Policies
Pensions - For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the Fiduciary Net
Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s
Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this
purpose, plan contributions are recognized in the period that compensation is reported for the employee,
which is when contributions are legally due. Benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
Estimates
The preparation of financial statements, in conformity with U.S. generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses during the reporting period. Actual amounts could
differ from those estimates.
Subsequent Events
The Town has evaluated all events or transactions that occurred after September 30, 2017 up through
March 23, 2018, the date the financial statements were issued.
Note 2. Cash and Investments
Legal provisions generally permit the Town to invest in certificates of deposit, repurchase agreements,
public funds investment pools, direct obligations of the United States of America or its subdivisions and
state and local government securities.
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the
areas of investment practices, management reports and establishment of appropriate policies. Among
other things, it requires the Town to adopt, implement, and publicize its investment policy.
Town of Westlake
Notes to the Financial Statements
50
That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio
diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return,
(6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar - weighted
maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and
capabilities, and (9) bid solicitation preferences for certificates of deposit.
Statutes and the Town's investment policy authorized the Town to invest in the following investments as
summarized in the table below:
Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio In One Issuer
Obligations of the U.S. Government,
its agencies and instrumentalities 2 years None None
Certificates of deposit 1 year None None
Mutual funds 2 years 80%None
Investment pools -None None
Authorized
Investment Type
The Town did not engage in repurchase or reverse repurchase agreement transactions during the current
year.
At year end, the carrying amount of the Town’s deposits was $30,499,986 and the bank balance was
$30,966,219. The bank balance was completely covered by federal deposit insurance and collateral held
by the pledging financial institution in the Town’s name.
At year end, the carrying amount of the component units’ deposits was $9,304,103 and the bank balance
was $9,376,153. The bank balance was completely covered by federal deposit insurance and collateral
held by the pledging financial institution in the component units’ names. The carrying amount consists of
$6,171,501 in cash and cash equivalents and $3,132,602 in restricted cash and cash equivalents.
Town of Westlake
Notes to the Financial Statements
51
At September 30, 2017, the Town's cash and cash equivalents consist of and are classified in the
accompanying financial statements are follows:
Primary government:
Cash and cash equivalents 30,017,751$
Restricted cash and investments 1,938,969
Total primary government 31,956,720
Fiduciary funds:
Restricted cash and cash equivalents 2,085,576
Total cash and investments 34,042,296$
Deposits with financial institutions 30,499,986$
Investments 3,542,310
Total cash and investments 34,042,296$
Disclosures Relating to Interest Rate Risk
This is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes
in market interest rates. In order to limit interest and market rate risk from changes in interest rates, the
Town's investment policy sets a maximum stated maturity limit of two years for obligations of the United
States Government, its agencies and instrumentalities (excluding mortgage backed securities) and one
year for fully insured or collateralized certificates of deposit. No more than 80% of the Town's monthly
average balance may be invested in money market funds. Additionally, the Town invests in an investment
pool that purchases a combination of shorter term investments with an average maturity of 37 days thus
reducing the interest rate risk. Information about the sensitivity of the fair values of the Town's investments
to market interest rate fluctuations is provided by the following table that shows the distribution of the
Town's Investments.
As of September 30, 2017, the Town's investments were as follows:
Weighted
Carrying Average
Amount Fair Value Maturity (days)
TexPool 200$ 200$ 37 days
Mutual funds 3,542,110 3,542,110 1 day
Total 3,542,310$ 3,542,310$
Investment Type
Town of Westlake
Notes to the Financial Statements
52
Disclosures Relating to Credit Risk
This is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This
is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the Public Funds Investment Act,
the Town's investment policy, or debt agreements, and the actual rating as of year-end for each
investment type.
Minimum Rating
Carrying Fair Legal as of
Primary government Amount Value Rating Year-end
Investments:
TexPool 200$ 200$ N/A AAA-m
Mutual funds 3,542,110 3,542,110 N/A A-1
Total 3,542,310$ 3,542,310$
Disclosures Relating to Concentration of Credit Risk
The Town’s investment policy is to avoid a concentration of assets in a specific maturity, a specific issue,
or a specific class of investments.
Disclosures Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,
a government will not be able to recover its deposits or will not be able to recover collateral securities
that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the
event of the failure of the counterparty to a transaction, a government will not be able to recover the
value of its investment or collateral securities that are in the possession of another party. The Public Funds
Investment Act does not contain legal or policy requirements that would limit the exposure to custodial
credit risk for deposits or investments, other than the following provision for deposits: The Public Funds
Investment Act requires that a financial institution secure deposits made by state or local governmental
units by pledging securities in an undivided collateral pool held by a depository regulated under state
law (unless so waived by the governmental unit). The market value of the pledged securities in the
collateral pool must equal at least the bank balance less the FDIC insurance at all times.
The Town requires all deposits to be covered by Federal Depository Insurance Corporation (FDIC)
insurance and/or collateralized by qualified securities pledged by the Town’s depository in the Town’s
name and held by the depository’s agent.
As of September 30, 2017, the Town's entire cash deposits with financial institutions in excess of federal
depository insurance were fully collateralized.
The Town categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application,
provides a framework for measuring fair value which establishes a three-level fair value hierarchy that
describes the inputs that are used to measure assets and liabilities.
Town of Westlake
Notes to the Financial Statements
53
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a
government can access at the measurement date.
Level 2 inputs are inputs – other than quoted prices included within Level 1 – that are observable for
an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an identical asset or liability is not observable, a government should measure fair value using
another valuation technique that maximizes the use of relevant observable inputs and minimizes the use
of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than
one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority
level input that is significant to the entire measurement.
The Town has recurring fair value measurements as presented in the table below. The Town’s investment
balances and weighted average maturity of such investments are as follows:
Quoted
Prices in
Active Significant
Markets for Other Significant Weighted
Value at Identical Observable Unobservable Percent of Average
September 30,Assets Inputs Inputs Total Maturity
2017 (Level 1)(Level 2)(Level 3)Investments (Days)
Investments not Subject
to Fair Value:
Investment Pools:
TexPool 200$ -$ -$ -$ 0.01%37
Investments by Fair Value Level:
Mutual Funds 3,542,110 3,542,110 - - 99.99%NA
Total Value 3,542,310$ 3,542,110$ -$ -$
Fair Value Measurements Using
Mutual funds reported as Level 1 consist of shares of a money market funds government portfolio and are
valued at net asset value (NAV) of the assets held by the Town. The NAV is a quoted price in an active
market.
Investment in State Investment Pools
On September 1, 1989, local government investment pools became authorized investments for the
majority of public entities in Texas. The Interlocal Cooperation Act was amended by the 71st Texas
Legislature to facilitate the creation of local government investment pools in Texas. This act permits the
creation of investment pools to which a majority of political subdivisions (local governments) may
delegate, by contract, the authority to make investments purchased with local investment funds and to
hold legal title as custodian of the investments. TexPool was organized to conform with the Interlocal
Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act,
Chapter 2256 of the Texas Government Code.
Town of Westlake
Notes to the Financial Statements
54
During the year ended September 30, 2017, the Town had investments with TexPool. TexPool, a public
funds investment pool created by the Treasurer of the State of Texas acting by and through the Texas
Treasury Safekeeping Trust Company, which is empowered to invest funds and acts as custodian of
investments purchased with local investment funds. These investments are not required to be categorized
because the investor is not issued securities, but rather it owns an undivided beneficial interest in the assets
of the respective funds. The fair value of the position in TexPool is the same as the value of the pool shares.
Restricted Cash
Proprietary Fund
Within the proprietary funds, $282,435 of restricted cash represents customer deposits received for water
and sewer usage that are refundable upon termination of service and $50,000 of restricted cash
represents a contribution restricted for cemetery improvements.
Discretely Presented Component Units
Within the discretely presented component units, the $3,132,602 in restricted cash and cash equivalents
represents funds held for debt service.
Note 3. Receivables
Governmental activities receivable balance consists of the following as of September 30, 2017:
Debt Total
Westlake Service Nonmajor Governmental
General Academy Fund Fund Funds
Receivables:
Sales tax 496,421$ -$ -$ 310,471$ 806,892$
Property tax 6,751 - 433 - 7,184
Other taxes 19,191 - - 64,255 83,446
Franchise tax 189,780 - - - 189,780
Accounts 42,473 - - - 42,473
Other 302,565 446,291 - - 748,856
Gross receivables 1,057,181 446,291 433 374,726 1,878,631
Less: allowance
for uncollectibles (30,548) - - - (30,548)
Net total receivables 1,026,633$ 446,291$ 433$ 374,726$ 1,848,083$
Governmental Funds
Town of Westlake
Notes to the Financial Statements
55
Business-type receivables balance consists of the following as of September 30, 2017:
Utility Cemetery
Fund Fund Total
Receivables:
Sales tax -$ -$ -$
Property tax - - -
Other taxes - - -
Franchise tax - - -
Accounts 1,162,249 - 1,162,249
Other - - -
Gross receivables 1,162,249 - 1,162,249
Less: allowance
for uncollectibles (7,302)- (7,302)
Net total receivables 1,154,947$ -$ 1,154,947$
Business-Type Activities
Town of Westlake
Notes to the Financial Statements
56
Note 4. Capital Assets
Capital asset activity for the year ended September 30, 2017, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land 11,896,664$ 1,750,000$ (1,200,605)$ -$ 12,446,059$
Construction in progress 12,216,861 6,567,395 - (107,102) 18,677,154
Total assets not being depreciated 24,113,525 8,317,395 (1,200,605) (107,102) 31,123,213
Capital assets, being depreciated:
Capital improvements 14,907,536 118,323 - 53,843 15,079,702
Buildings 32,262,586 - - - 32,262,586
Machinery and equipment 4,349,680 51,543 (41,108) - 4,360,115
Information systems and software 205,163 33,963 - 53,259 292,385
Total capital assets being depreciated 51,724,965 203,829 (41,108) 107,102 51,994,788
Less accumulated depreciation:
Capital improvements (4,571,717) (544,561) - - (5,116,278)
Buildings (5,911,435) (657,915) - - (6,569,350)
Machinery and equipments (2,828,371) (523,930) 41,108 - (3,311,193)
Information systems and software (112,204) (68,696) - - (180,900)
Total accumulated depreciation (13,423,727) (1,795,102) 41,108 - (15,177,721)
Total capital assets being depreciated 38,301,238 (1,591,273) - 107,102 36,817,067
Governmental activities
capital assets, net 62,414,763$ 6,726,122$ (1,200,605)$ -$ 67,940,280$
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets, not being depreciated:
Construction in progress 285,392$ 43,638$ -$ -$ 329,030$
Total assets not being depreciated 285,392 43,638 - - 329,030
Capital assets, being depreciated:
Capital improvements 14,899,416 - - - 14,899,416
Wastewater treatment rights 635,199 - - - 635,199
Machinery and equipment 3,560,780 - - - 3,560,780
Total capital assets being depreciated 19,095,395 - - - 19,095,395
Less accumulated depreciation:
Capital improvements (4,801,796) (362,675) - - (5,164,471)
Wastewater treatment rights (513,554) (31,760) - - (545,314)
Machinery and equipment (1,891,763) (132,706) - - (2,024,469)
Total accumulated depreciation (7,207,113) (527,141) - - (7,734,254)
Total capital assets being depreciated 11,888,282 (527,141) - - 11,361,141
Business-type activities
capital assets, net 12,173,674$ (483,503)$ -$ -$ 11,690,171$
Town of Westlake
Notes to the Financial Statements
57
Depreciation was charged to departments of the primary government as follows:
Governmental activities:
General government 879,694$
Public safety 431,939
Public works 483,469
Total depreciation expense - governmental activities 1,795,102$
Business-type activities:
Water and sewer 527,141$
A summary of discretely presented component units' capital assets at September 30, 2017 follows:
Texas Student Housing Corporation – Denton Project
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated:
Land 2,200,000$ -$ -$ 2,200,000$
Total assets not being depreciated 2,200,000 - - 2,200,000
Capital assets, being depreciated:
Buildings 25,705,000 - - 25,705,000
Furniture and fixtures 1,253,841 - - 1,253,841
Total capital assets being depreciated 26,958,841 - - 26,958,841
Less accumulated depreciation:
Buildings (13,209,513) (856,833) - (14,066,346)
Furniture and fixtures (1,198,210) (8,450) - (1,206,660)
Total accumulated depreciation (14,407,723) (865,283) - (15,273,006)
Total capital assets being depreciated 12,551,118 (865,283) - 11,685,835
Capital assets, net 14,751,118$ (865,283)$ -$ 13,885,835$
Town of Westlake
Notes to the Financial Statements
58
Texas Student Housing Corporation – College Station Project
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated:
Land 2,899,597$ -$ -$ 2,899,597$
Total assets not being depreciated 2,899,597 - - 2,899,597
Capital assets, being depreciated:
Buildings 26,885,312 - - 26,885,312
Furniture and fixtures 3,437,138 - - 3,437,138
Total capital assets being depreciated 30,322,450 - - 30,322,450
Less accumulated depreciation:
Buildings (10,645,528) (896,177) - (11,541,705)
Furniture and fixtures (3,029,646) (84,771) - (3,114,417)
Total accumulated depreciation (13,675,174) (980,948) - (14,656,122)
Total capital assets being depreciated 16,647,276 (980,948) - 15,666,328
Capital assets, net 19,546,873$ (980,948)$ -$ 18,565,925$
Note 5. Long-Term Debt
The Town issues general obligation bonds, certificates of obligation and tax notes to provide for the
acquisition and construction of major capital facilities and infrastructure. Combination tax and revenue
certificates of obligation are issued for both governmental and business-type activities. General
obligation bonds, governmental revenue bonds and tax notes pledge the full faith and credit of the Town.
In December 2016, the Town issued $9,180,000 Combination Tax and Revenue Certificates of Obligations,
Series 2016. Proceeds from the sale of the Certificates will be used for (i) acquiring, construction, installing
and equipping fire-fighting facilities; and (ii) legal, fiscal and engineering fees in connection with such
project.
In January 2017, the Town issued $5,795,000 of General Obligation Refunding Bonds, Series 2017. The debt
was issued to refund $6,330,000 of the Town’s Series 2007 General Obligation Refunding Bonds to achieve
a present value debt service savings. Net proceeds from the sale of the bonds totaled $6,452,467 which
was placed with an escrow agent to provide for all future debt service payments on the refunded bonds.
This refunding resulted in a decrease in the Town’s debt service payments of $979,756, which resulted in
an economic gain (difference between the present value of the debt service payments of the old and
new debt) of $766,362.
In August 2017, the Town also issued a Tax Note for $1,530,000 at a net interest rate of 1.81%. The note was
issued for the purpose of paying all or a portion of the Town's contractual obligations incurred in
connection with (i) acquiring, constructing, installing and equipping fire- fighting facilities, with any surplus
proceeds to be used for (1) equipping Town Hall, including related parking, landscaping, and signage;
and (2) constructing and improving streets, roads and sidewalks in the Town, including related drainage,
signalization, landscaping, lighting, signage and utility relocation (collectively, the " Project") and
(ii) payment of costs of issuance of the Notes.
Town of Westlake
Notes to the Financial Statements
59
A summary of long-term debt transactions for the year ended September 30, 2017, was as follows:
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Governmental activities:
General obligation bonds
other obligations 26,170,700$ 16,505,000$ (7,418,000)$ 35,257,700$ 1,519,000$
Unamortized bond premium 657,912 1,020,809 (99,812) 1,578,909 -
Notes payable 275,101 - (36,697) 238,404 36,677
Capital leases 563,045 - (401,041) 162,004 162,004
Fidelity tax reimbursement - - - - -
Compensated absences 274,216 193,893 (135,104) 333,005 33,301
Net pension liability- TMRS 1,082,639 232,327 - 1,314,966 -
Net pension liability - TRS 1,093,865 - (42,519) 1,051,346 -
Total governmental activities 30,117,478$ 17,952,029$ (8,133,173)$ 39,936,334$ 1,750,982$
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Business-type activities:
Certificates of obligation 971,300$ -$ (22,000)$ 949,300$ 22,000$
Contractual obligations 5,126,958 - - 5,126,958 213,093
Unamortized bond premium 31,053 - (1,172) 29,881 -
Compensated absences 46,014 25,865 (6,375) 65,504 6,550
Net pension liability - TMRS 132,979 28,536 - 161,515 -
Total business-type activities 6,308,304$ 54,401$ (29,547)$ 6,333,158$ 241,643$
General Obligation Bonds and Certificates of Obligation
General obligation bonds and certificates of obligation are as follows as of September 30, 2017:
Final Business-
Maturity Interest Rates Governmental Type
$2,095,000 Combination Tax and Revenue
Certificates of Obligation, Series 2011 2031 3.25%1,552,000$ -$
$7,375,000 General Obligation Refunding Bonds,
Series 2011 2028 2.0-4.0%6,360,000 -
$9,320,000 Certificates of Obligation, Series 2013 2043 2.0-4.0%7,728,700 949,300
$2,200,000 General Obligation Refunding Bonds,
Series 2013 2028 2.0-2.5%1,577,000 -
$9,180,000 Certificate of Obligation Bonds,
Series 2016 2046 2.0-5.0%9,180,000 -
$5,795,000 General Obligation Refunding Bonds,
Series 2017 2032 2.0-5.0%5,795,000 -
$1,530,000 Tax Notes, Series 2017 2024 2.0-5.0%1,530,000 -
$1,910,000 General Obligation Refunding Bonds,
Series 2014 2032 2.0-5.0%1,535,000 -
35,257,700$ 949,300$
General Obligations Bonds, Tax Notes, and
Certificates of Obligation
Town of Westlake
Notes to the Financial Statements
60
Debt service requirements of certificates of obligation and general obligations to be retired from
governmental funds are as follows:
Total
Principal Interest Requirements
1,519,000$ 1,169,160$ 2,688,160$
1,567,450 1,122,540 2,689,990
1,613,350 1,080,730 2,694,080
1,651,350 1,037,343 2,688,693
1,699,250 992,212 2,691,462
8,482,250 4,197,912 12,680,162
9,434,750 2,671,880 12,106,630
3,180,800 1,488,057 4,668,857
3,811,200 850,431 4,661,631
2,298,300 162,766 2,461,066
35,257,700$ 14,773,031$ 50,030,731$ Total
2021
2023-2027
2028-2032
2022
2033-2037
2038-2042
2043-2046
Year Ending
September 30,
2018
2019
2020
Debt service requirements of certificates of obligation to be retired from proprietary funds are as follows:
Total
Principal Interest Requirements
22,000$ 33,021$ 55,021$
22,550 32,576 55,126
23,650 32,114 55,764
23,650 31,582 55,232
24,750 30,977 55,727
134,750 143,442 278,192
228,250 115,564 343,814
189,200 73,330 262,530
228,800 33,597 262,397
51,700 1,034 52,734
949,300$ 527,237$ 1,476,537$
2023-2027
2028-2032
2021
2033-2037
2038-2042
2043-2046
September 30,
2019
Total
2020
2022
Year Ending
2018
Town of Westlake
Notes to the Financial Statements
61
Notes Payable
In March 2014, the Town received a $366,774 loan from Bennett Benner Pettit, the proceeds of which were
used to fund a portion of the Westlake Academy expansion project. The terms of the note call for ten
annual payments at 0% interest.
Note
September 30,Payments
36,677$
36,677
36,677
36,677
36,677
55,019
238,404$
Year Ending
2023-2024
Total
2018
2021
2022
2019
2020
Capital Leases
The Westlake Academy has entered into lease agreements as lessee for financing the acquisition of
computer equipment and software. The lease agreements qualify as capital leases for accounting
purposes, and therefore, have been recorded at the present value of its future minimum lease payments
as of the inception date.
Equipment and software with a historical cost of $730,049 was under capital lease at August 31, 2017.
Because the cost of the individual items was below the Town’s capitalization threshold, the entire cost
was recorded as expense during the year ended August 31, 2017.
The following schedule shows the future minimum lease payments under the capitalized lease together
with the present value of the net minimum lease payments as of August 31, 2017:
Annual
Lease Payments
166,038$
Total minimum lease payments 166,038
Less: Amounts representing interest (4,034)
Present value of net minimum lease payments 162,004$
Year Ending
August 31,
2018
Town of Westlake
Notes to the Financial Statements
62
Contractual Obligations
Proprietary funds contractual obligations as of September 30, 2017 are as follows:
Business-
Maturity Interest Rate Type
Elevated Water Storage Facility 2020 5.0-5.65%447,014$
Limited pledge contractual obligation:
Dove Road Water Line and
West Pump Station 2028 6.75%4,679,944
5,126,958$
Contractual Obligations
Elevated Water Storage Facility - On October 9, 2000, the Town approved an interlocal agreement with
the City of Keller, which provided for the joint construction, operation, maintenance and use of an
elevated water storage facility and appurtenances. The Town recorded a contractual obligation of
$1,466,000 based on the terms of the interlocal agreement, which requires 20 annual principal and interest
payments to the City of Keller, with payments due each September 30 at interest rates ranging from 5.0%
to 5.65%.
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 $4,679,944 for the project cost based upon the terms of the agreement, which requires 239
monthly principal and interest payments to Hillwood, at an interest rate of 6.75%. If the Town collects
insufficient funds to pay current interest on the debt, the interest payment may be deferred. No portion
of debt payments will be applied to the principal component, until all current and deferred interest is fully
paid. The obligation of the Town to pay the purchase price and interest thereon is not a general obligation
of the Town but is a limited recourse obligation payable solely from debt service revenue.
Town of Westlake
Notes to the Financial Statements
63
The schedule of future payments by the Town under these agreements is as follows:
Total
Principal Interest Requirements
-$ 7,789,753$ 7,789,753$
213,093 912,628 1,125,721
113,756 956,584 1,070,340
120,165 1,016,363 1,136,528
4,679,944 717,581 5,397,525
5,126,958$ 11,392,909$ 16,519,867$
2020
2021
September 30,
Year Ending
Past Due
2018
2019
Total
Prior Year Defeasance of Debt
In prior years, the government defeased general obligations bonds by placing proceeds of the new
bonds in an irrevocable trust account to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in the
government's financial statements. At September 30, 2017, there were no prior year defeased bonds
outstanding.
Compensated Absences
Although compensated absences are liquidated by the fund to which they relate, the significant portion
of the governmental activities compensated absences has typically been liquidated by the general fund.
Discretely Presented Component Units – Long-Term Debt
Texas Student Housing Corporation –Denton Project
The long-term debt activity of the Denton Project is as follows:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Revenue Bonds:
2001 A Bonds 22,090,000$ -$ (895,000)$ 21,195,000$ 955,000$
2001 B Bonds 3,240,000 - - 3,240,000 1,360,000
Less discount on bonds (522,384) - 37,485 (484,899) -
Total 24,807,616$ -$ (857,515)$ 23,950,101$ 2,315,000$
The Bonds are payable solely from the revenues generated by the Denton Property and are secured by
the revenues pledged and assigned under the terms of the Trust Indenture. The Town of Westlake does
not have any liability for the payment of the bonds as the bonds are non-recourse to both the Town of
Westlake and Texas Student Housing Authority. Interest rates on the bonds range from 5.00% to 11.00%
and are payable semi-annually on July 1 and January 1 of each year thereafter.
Town of Westlake
Notes to the Financial Statements
64
At August 31, 2017, the Project was not in compliance with certain covenants of the Indenture including
insufficient funds in some of the required funds and a fixed charges ratio less than 1.25. In addition, all
required principal payments on the Series B bonds had not been made as of August 31, 2017. Upon
certain events of default either the trustee, or owners of not less than 25% in aggregate principal of the
bonds then outstanding, may declare the principal and all interest then due to be immediately due and
payable.
The debt service requirements of the bonds are as follows:
Total
Principal Interest Requirements
1,295,000$ 8,187,361$ 9,482,361$
1,020,000 1,661,593 2,681,593
1,085,000 1,589,980 2,674,980
1,165,000 1,513,768 2,678,768
1,250,000 1,431,730 2,681,730
1,330,000 1,343,530 2,673,530
8,265,000 5,138,253 13,403,253
9,025,000 1,693,338 10,718,338
24,435,000$ 22,559,553$ 46,994,553$
2023-2027
2022
August 31,
Past Due
2019
2021
2020
2018
2028-2031
Year Ending
Texas Student Housing Corporation – College Station Project
The Project's installment note payable is summarized as follows:
Rate Balance
Cambridge Student Housing Financing
Company, L.P.; substantially all
assets and assignment of rents:
due November 1, 2039 8.00%28,419,200$
Lender/Security/Due/Date
The following is a summary of long-term debt transactions of the Project for the year ended August 31,
2017:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Revenue
Certificates 28,944,200$ -$ (525,000)$ 28,419,200$ 1,105,000$
Town of Westlake
Notes to the Financial Statements
65
The debt is to be amortized through 2040 with varying payments. The annual requirements to amortize
the Project’s outstanding installment notes payable as of August 31, 2017 are as follows:
Year Ending
August 31,Principal Interest Total
Past Due 460,000$ 17,433,363$ 17,893,363$
2018 645,000 1,703,325 2,348,325
2019 720,000 1,650,637 2,370,637
2020 775,000 1,592,890 2,367,890
2021 830,000 1,530,858 2,360,858
2022 895,000 1,464,122 2,359,122
2023-2027 2,875,000 6,639,508 9,514,508
2028-2032 4,130,000 5,330,167 9,460,167
2033-2037 5,975,000 3,427,523 9,402,523
2038-2040 11,114,200 759,710 11,873,910
Total 28,419,200$ 41,532,103$ 69,951,303$
Class C and D bonds are in default and the property does not generate enough revenue to pay the debt
obligations. All of the Class C and D bonds issued remain outstanding as of August 31, 2017.
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, 2017, the Project was not in compliance with the fixed charge coverage ratio. As a result,
the lender may accelerate the maturity of the unpaid portion of the principal payable under the
installment sale agreement. However, the Authority does not anticipate this event will occur, since
foreclosure by private interests would result in the loss of tax-exempt status for the Project.
The Town of Westlake does not have any liability for the payment of debt of the discretely presented
component units as the bonds are non-recourse to both the Town and Texas Student Housing Authority.
Note 6. Unearned Revenue / Deferred Inflows of Resources
Unearned revenue in the proprietary fund of $406,350 relates to the collection of the entire amount due
on twelve Ductbank leases as follows: three leases with AT&T local network services ranging from 5 – 30
years; six leases with Verizon Southwest ranging from 5-30 years; one five-year lease with MCI Metro; one
five-year lease with L3 Communications for use of the Town's Ductbank; and one five-year lease with
Charter.
Governmental funds report deferred inflows of resources in connection with receivables for revenue that
is not considered to be available to liquidate liabilities of the current period. At the end of the current
fiscal year, deferred inflows of resources reported in the governmental funds consist of $4,602 and $385
of unavailable property taxes in the general fund and debt service fund, respectively.
Town of Westlake
Notes to the Financial Statements
66
Note 7. Interlocal Agreement with the Town of Westlake
In August 1995, the Town entered into an agreement with the City of Southlake to allow the Town to utilize
capacity in a sewer line and to set forth their respective rights and obligations with respect to the sewer
line owned by the City of Southlake. The Town is obligated to share in the cost of construction, operation
and maintenance of the water sewer line. The sewer line was constructed in 2000. Additionally, the Town
must pay the City of Southlake all transportation, treatment and related costs allocable to the metered
flow of sewage from the Town into the sewer line.
Note 8. Federal and State Program Revenues
The Town received financial assistance from various federal and state governmental agencies in the form
of grants for Westlake Academy. The disbursement of funds received under these programs generally
requires compliance with terms and conditions specified in the grant agreements and are subject to audit
by the grantor agencies. Any unallowed disbursement resulting from such audits becomes a liability of
the Town. In the opinion of the Town management, no material refunds will be required as a result of
unallowed disbursements (if any) by the grantor agencies. Sources of federal and state program revenues
for the year ended September 30, 2017, were as follows:
Westlake
Academy
Federal program revenues:
U.S. Department of Eduation - Passed
through State Department of Education
Total federal program revenues 140,152$
State program revenues:
State Department of Education 6,603,358$
Source
Note 9. Interfund Balances and Transactions
Interfund receivables and payables at September 30, 2017, were as follows:
Due from Due to
Other Funds Other Funds
General fund 201,723$ -$
Nonmajor governmental funds:
4B Economic Development Fund - 201,723
201,723$ 201,723$
The 4B Economic Development Corporation Fund amount of $201,723 payable to the General Fund is
related to debt service payment reimbursement.
Inter-fund transfers are reported in the governmental funds and proprietary fund financial statements. In
the government-wide statements, inter-fund transfers are eliminated within the governmental activities
column and business-type column, as appropriate.
Town of Westlake
Notes to the Financial Statements
67
Individual fund transfers for fiscal year 2017 were as follows:
Transfer out Transfer in Amount Purpose
General Fund Debt Service Fund 733,094$ Debt service payments
General Fund Westlake Academy 315,000 For student reserve fund
Nonmajor Governmental General Fund 61,020 For operating expenditures in the
Communications Dept.
Nonmajor Governmental Nonmajor Governmental 1,010,000 Economic development payments
for benefit of Westlake Academy
Nonmajor Governmental Debt Service 1,332,636 Debt service payments
Utility Fund General Fund 169,316 Fort Worth impact revenue
3,621,066$
Note 10. Water Purchase and Wastewater Treatment Contracts
The Town has a contract with the City of Fort Worth, Texas, to purchase water. Under the contract, the
Town may obtain from the City of Fort Worth, a supply of potable water at a reasonable rate based on
water usage. The rate charges are subject to minimum annual contract payments. Water expense for the
year ended September 30, 2017 was $1,215,465.
Note 11. Defined Benefit Pension Plan - TMRS
Plan Description
The Town participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created
by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of
the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of
the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined
benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS
issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at
www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the city, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and
the city-financed monetary credits with interest were used to purchase an annuity. Members may choose
to receive their retirement benefit in one of seven payments options. Members may also choose to
receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36
monthly payments, which cannot exceed 75% of the member’s deposits and interest.
Town of Westlake
Notes to the Financial Statements
68
Employees Covered By Benefit Terms
At the December 31, 2016 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees of beneficiaries currently receiving benefits 9
Inactive employees entitled to but not yet receiving benefits 21
Active employees 36
66
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the
city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of
the city. Under the state law governing TMRS, the contribution rate for each city is determined annually
by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate
is the estimated amount necessary to finance the cost of benefits earned by employees during the year,
with an additional amount to finance any unfunded accrued liability.
Employees for the Town were required to contribute 7% of their annual gross earnings during the fiscal
year. The contribution rates for the Town were 11.38% and 12.05% in calendar years 2016 and 2017,
respectively. The Town’s contributions to TMRS for the year ended September 30, 2017, were $382,427,
and were equal to the required contributions.
Net Pension Liability
The Town’s Net Pension Liability (NPL) was measured as of December 31, 2016, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of
that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2016 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male
rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the
gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are used with
males rates multiplied by 109% and female rates multiplied by 103% with a 3-year set-forward for both
males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for
younger members who become disabled. The rates are projected on a fully generational basis by scale
BB to account for future mortality improvements subject to the 3% floor.
Town of Westlake
Notes to the Financial Statements
69
Actuarial assumptions used in the December 31, 2016, valuation were based on the results of actuarial
experience studies. The experience study in TMRS was for the period December 31, 2010 through
December 31, 2014. Healthy post-retirement mortality rates and annuity purchase rates were updated
based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated
December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a
change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No
additional changes were made for the 2014 valuation. After the Asset Allocation Study analysis and
experience investigation study, the Board amended the long-term expected rate of return on pension
plan investments from 7% to 6.75%. Plan assets are managed on a total return basis with an emphasis on
both capital appreciation as well as the production of income, in order to satisfy the short-term and long-
term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. In
determining their best estimate of a recommended investment return assumption under the various
alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive)
without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an
adjustment for time (aggressive). At its meeting on July 30, 2015, the TMRS Board approved a new portfolio
target allocation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term Expected Real
Asset Class Target Allocation Rate of Return (Arithmetic)
Domestic Equity 17.5%4.55%
International Equity 17.5%6.10%
Core Fixed Income 10.0%1.00%
Non-Core Fixed Income 20.0%3.65%
Real Return 10.0%4.03%
Real Estate 10.0%5.00%
Absolute Return 10.0%4.00%
Private Equity 5.0%8.00%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the
rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the Total Pension Liability.
Town of Westlake
Notes to the Financial Statements
70
Allocations
The Town’s net pension liability, pension expense, and deferred outflows of resources related to TMRS
have been allocated between governmental activities and business-type activities using a contribution-
based method.
Changes in the Net Pension Liability
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balance at 12/31/2015 5,294,817$ 4,079,199$ 1,215,618$
Changes for the year:
Service Cost 483,414 - 483,414
Interest 371,753 - 371,753
Change of benefit terms - - -
Difference between expected and
actual experience 212,434 - 212,434
Changes of assumptions - - -
Contributions - employer - 330,604 (330,604)
Contributions - employee - 203,359 (203,359)
Net investment income - 276,056 (276,056)
Benefit payments, including refunds
of employee contributions (58,144) (58,144) -
Administrative expense (3,113) 3,113
Other changes - (168) 168
Net Changes 1,009,457 748,594 260,863
Balance at 12/31/16 6,304,274$ 4,827,793$ 1,476,481$
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Town, calculated using the discount rate of 6.75%,
as well as what the Town’s net pension liability would be if it were calculated using a discount rate that is
1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75%)(6.75%)(7.75%)
Net pension liability 2,491,690$ 1,476,481$ 642,693$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Town of Westlake
Notes to the Financial Statements
71
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
For the year ended September 30, 2017, the Town recognized pension expense of $550,584.
At September 30, 2017, the Town reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between
expected and actual
economic experience 315,779$ -$
Changes in actuarial
assumptions 89,907 -
Difference between
projected and actual
investment earnings 165,234 -
Contributions subsequent to
the measurement date 289,856
Total 860,776$ -$
$289,856 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the
year ending September 30, 2018. Amounts reported as deferred outflows and inflows of resources related
to pensions will be recognized in pension expense as follows:
Year ended Net Deferred
September 30,Outflows (Inflows)
2017 170,841$
2018 170,842
2019 145,990
2020 64,638
2021 18,609
Total 570,920$
Town of Westlake
Notes to the Financial Statements
72
Note 12. Defined Benefit Pension Plan – TRS
Plan Description
The Academy participates in a cost-sharing multiple-employer defined benefit pension that has a special
funding situation. The plan is administered by the Teacher Retirement System of Texas (TRS). TRS’s defined
benefit pension plan is established and administered in accordance with the Texas Constitution, Article
XVI, Section 67 and Texas Government Code, Title 8, Subtitle C. The pension trust fund is a qualified pension
trust under Section 401(a) of the Internal Revenue Code. The Texas Legislature establishes benefits and
contribution rates within the guidelines of the Texas Constitution. The pension’s Board of Trustees does not
have the authority to establish or amend benefit terms.
All employees of public, state-supported educational institutions in Texas who are employed for one-half
or more of the standard work load and who are not exempted from membership under Texas
Government Code, Title 8, Section 822.002 are covered by the system.
Pension Plan Fiduciary Net Position
Detailed information about the Teacher Retirement System’s fiduciary net position is available in a
separately issued Comprehensive Annual Financial Report that includes financial statements
and required supplementary information. That report may be obtained on the Internet at
http://www.trs.state.tx.us/about/documents/cafr.pdf#CAFR; by writing to TRS at 1000 Red River Street,
Austin, TX, 78701-2698; or by calling (512) 542-6592.
Benefits Provided
TRS provides service and disability retirement, as well as death and survivor benefits, to eligible employees
(and their beneficiaries) of public and higher education in Texas. The pension formula is calculated using
2.3 percent (multiplier) times the average of the five highest annual creditable salaries times years of
credited service to arrive at the annual standard annuity except for members who are grandfathered,
the three highest annual salaries are used. The normal service retirement is at age 65 with five years of
credited service or when the sum of the member’s age and years of credited service equals 80 or more
years.
Early retirement is at age 55 with five years of service credit or earlier than 55 with 30 years of service
credit. There are additional provisions for early retirement if the sum of the member’s age and years of
service credit total at least 80, but the member is less than age 60 or 62 depending on date of
employment, or if the member was grandfathered in under a previous rule. There are no automatic post-
employment benefit changes; including automatic COLAs. Ad hoc post-employment benefit changes,
including ad hoc COLAs can be granted by the Texas Legislature as noted in the Plan description in
(A) above.
Contributions
Contribution requirements are established or amended pursuant to Article 16, section 67 of the Texas
Constitution which requires the Texas legislature to establish a member contribution rate of not less than
6% of the member’s annual compensation and a state contribution rate of not less than 6% and not more
than 10% of the aggregate annual compensation paid to members of the system during the fiscal year.
Texas Government Code section 821.006 prohibits benefit improvements, if as a result of the particular
action, the time required to amortize TRS’ unfunded actuarial liabilities would be increased to a period
that exceeds 31 years, or, if the amortization period already exceeds 31 years, the period would be
increased by such action.
Town of Westlake
Notes to the Financial Statements
73
Employee contribution rates are set in state statute, Texas Government Code 825.402. Senate Bill 1458 of
the 83rd Texas Legislature amended Texas Government Code 825.402 for member contributions and
established employee contribution rates for fiscal years 2014 thru 2017. The 83rd Texas Legislature, General
Appropriations Act (GAA) established the employer contribution rates for fiscal years 2016 and 2017.
2016 2017
Member 7.20%7.20%
Non-employer contributing entity (State)6.80%6.80%
Employers 6.80%6.80%
2017 Employer contributions 84,783$
2017 Member contributions 382,298
2016 NECE on-behalf contributions 340,001
Contribution rates
Contributors to the plan include members, employers and the State of Texas as the only non-employer
contributing entity. The State is the employer for senior colleges, medical schools and state agencies
including TRS. In each respective role, the State contributes to the plan in accordance with state statutes
and the General Appropriations Act (GAA).
As the non-employer contributing entity for public education and junior colleges, the State of Texas
contributes to the retirement system an amount equal to the current employer contribution rate times the
aggregate annual compensation of all participating members of the pension trust fund during that fiscal
year reduced by the amounts described below which are paid by the employers. Employers (public
school, junior college, other entities or the State of Texas as the employer for senior universities and
medical schools) are required to pay the employer contribution rate in the following instances:
On the portion of the member's salary that exceeds the statutory minimum for members entitled
to the statutory minimum under Section 21.402 of the Texas Education Code.
During a new member’s first 90 days of employment.
When any part or all of an employee’s salary is paid by federal funding sources, a privately
sponsored source, from non-educational and general, or local funds.
When the employing district is a public junior college or junior college district, the employer shall
contribute to the retirement system an amount equal to 50% of the state contribution rate for
certain instructional or administrative employees; and 100% of the state contribution rate for all
other employees.
In addition to the employer contributions listed above, there are two additional surcharges an employer
is subject to:
When employing a retiree of the Teacher Retirement System the employer shall pay both the
member contribution and the state contribution as an employment after retirement surcharge
When a school district or charter school does not contribute to the Federal Old-Age, Survivors and
Disability Insurance (OASDI) Program for certain employees, they must contribute 1.5% of the state
contribution rate for certain instructional or administrative employees; and 100% of the state
contribution rate for all other employees.
Town of Westlake
Notes to the Financial Statements
74
Actuarial Assumptions
The total pension liability in the August 31, 2016 actuarial valuation was determined using the following
actuarial assumptions:
Valuation Date August 31, 2016
Actuarial Cost Method Individual Entry Age Normal
Asset Valuation Method Market Value
Single Discount Rate 8.00%
Long-term expected Investment Rate of Return* 8.00%
Inflation 2.50%
Salary Increases including inflation 3.50% to 9.50%
Payroll Growth Rate 2.50%
Benefit Changes during the year None
Ad hoc post-employment benefit changes None
The actuarial methods and assumptions are primarily based on a study of actual experience for the
four-year period ending August 31, 2014 and adopted on September 24, 2015.
Discount Rate
The discount rate used to measure the total pension liability was 8.0%. There was no change in the
discount rate since the previous year. The projection of cash flows used to determine the discount rate
assumed that contributions from plan members and those of the contributing employers and the non-
employer contributing entity are made at the statutorily required rates. Based on those assumptions, the
pension plan’s fiduciary net position was projected to be available to make all future benefit payments
of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods
of projected benefit payments to determine the total pension liability. The long-term rate of return on
pension plan investments is 8%. The long-term expected rate of return on pension plan investments was
determined using a building-block method in which best-estimates ranges of expected future real rates
of return (expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class.
Town of Westlake
Notes to the Financial Statements
75
These ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of geometric real rates of return for each major asset class included in the Systems target
asset allocation as of August 31, 2016 are summarized below:
Long-term
Expected
Portfolio
Target Real Return Real Rate of
Allocation Geometric Basis Return*
Global Equity
U.S.18%4.6%1.0%
Non-U.S. Developed 13%5.1%0.8%
Emerging Markets 9%5.9%0.7%
Directional Hedge Funds 4%3.2%0.1%
Private Equity 13%7.0%1.1%
Stable Value
U.S. Treasuries 11%0.7%0.1%
Absolute Return 0%1.8%0.0%
Stable Value Hedge Funds 4%3.0%0.1%
Cash 1%-0.2%0.0%
Real Return
Global Inflation Linked Bonds 3%0.9%0.0%
Real Assets 16%5.1%1.1%
Energy and Natural Resources 3%6.6%0.2%
Commodities 0%1.2%0.0%
Risk Parity
Risk Parity 5%6.7%0.3%
Inflation Expectation 2.2%
Alpha 1.0%
Total 100.0%8.7%
Asset Class
*The Expected Contribution to Returns incorporates the volatility drag resulting from the conversion between Arithmetic and
Geometric mean returns.
Discount Rate Sensitivity Analysis
The following schedule shows the impact of the Net Pension Liability if the discount rate used was 1% less
than and 1% greater than the discount rate that was used (8%) in measuring the 2016 Net Pension Liability.
1% Decrease in Discount 1% Increase in
Discount Rate (7.0%)Rate (8.0%)Discount Rate (9.0%)
Academy's proportionate share
of the TRS net pension liability 1,627,129$ 1,051,346$ 562,965$
Town of Westlake
Notes to the Financial Statements
76
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At August 31, 2017, the Academy reported a liability of $1,051,346 for its proportionate share of the TRS’s
net pension liability. This liability reflects a reduction for State pension support provided to the Academy.
The amount recognized by the Academy as its proportionate share of the net pension liability, the related
State support, and the total portion of the net pension liability that was associated with the Academy
were as follows:
Academy's proportionate share of the collective net pension liability 1,051,346$
State's proportionate share that is associated with Academy 4,035,754
5,087,100$
The net pension liability was measured as of August 31, 2016 and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The
employer’s proportion of the net pension liability was based on the employer’s contributions to the
pension plan relative to the contributions of all employers to the plan for the period September 1, 2015
thru August 31, 2016.
At August 31, 2016, the employer’s proportion of the collective net pension liability was 0.0027822% which
was an decrease of 0.0003123% from its proportion measured as of August 31, 2015.
Changes since the Prior Actuarial Valuation
There were no changes of benefit terms that affected measurement of the total pension liability during
the measurement period.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
For the year ended August 31, 2017, the Academy recognized pension expense of $418,815 and revenue
of $418,815 for support provided by the State.
Town of Westlake
Notes to the Financial Statements
77
At August 31, 2017, the Academy reported its proportionate share of the TRS’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and
actual economic experience 16,485$ 31,393$
Changes in actuarial assumptions 32,043 29,142
Changes in proportionate share 450,620 1,107
Difference between projected and
actual investment earnings 89,026 -
Contributions paid to TRS
subsequent to the measurement
date 84,783 -
Total 672,957$ 61,642$
The net amounts of the employer’s balances of deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Year ended Net Deferred
Aug. 31,Outflows (Inflows)
2018 99,970$
2019 99,970
2020 156,755
2021 95,606
2022 73,187
Thereafter 1,044
Total 526,532$
Town of Westlake
Notes to the Financial Statements
78
Note 13. Risk Management
The Town is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees, and natural disasters. The Town's general liability, workers'
compensation liability, law enforcement liability, errors and omissions liability, and automobile liability
coverage is insured by the Texas Municipal League, a public entity risk pool. The Town's only responsibility
to the Texas Municipal League is to pay premiums for insurance and related deductible amounts of these
policies. Other risk of loss is covered by commercial insurance. Settlements of claims have not exceeded
coverage in the past three years.
Note 14. Contingent Liabilities
Litigation
Various claims and lawsuits are pending against the Town. In the opinion of Town management, after
consultation with legal counsel, the potential loss on these claims and lawsuits will not materially affect
the Town's financial position.
Circle T Municipal Utility Districts
The Town and Hillwood are currently in discussions regarding the debt for Municipal Utility District's (MUDs)
#1 and #3 on the Circle T property in Westlake which is controlled by AIL Investments, L.P. As this property
develops, Hillwood agreed to de-annex developed property from the MUDs in exchange for pro-rata
payments on water and sewer infrastructure installed by the MUDs at their inception.
To date, three projects, Chrysler Financial, Deloitte University, and Charles Schwab, have been or are
being developed within these MUDs. Discussions regarding the Town's payment to AIL Investments, L.P. in
exchange for de-annexation of these two tracks from the Circle T MUDs have taken place but have not
come to a conclusion as to the settlement amounts. These discussions are ongoing until the Town receives
full documentation that it determines is adequate to support the requested payments. The Town of
Westlake holds full rights and privileges under the State granted Certificate of Convenience and Necessity
(CCN) and can serve all water and sewer customers within these MUD boundaries regardless of the status
of these negotiations.
Note 15. Solana Public Improvement District
On February 24, 2014, the Town Council granted a petition by Maguire Partners-Solana Land, LP in
resolution 14-07 to authorize and provide for the creation of a public improvement district, The Solana
Public Improvement District (“the District”). The District encompasses approximately 85 acres currently
being developed as a master-planned mixed-use development known as “Westlake Entrada” that is
expected to include, among other things, condominiums, residential villas, hotels, office, retail,
commercial, institutional and hospitality uses, and a wedding event center. The District was created in
accordance with Chapter 372 of the Texas Local Government Code.
Town of Westlake
Notes to the Financial Statements
79
On February 5, 2015, the Town Council approved issuance of $26,175,000 of Special Assessment Revenue
Bonds, Series 2015 related to the District. The Public Improvement District Bonds (The Bonds) are special
and limited obligations of the Town payable solely from the pledged revenues and other funds comprising
the Trust Estate, as and to the extent provided in the indenture. The bonds do not give rise to a charge
against the general credit or taxing power of the Town and are payable solely from the sources identified
in the indenture. The owners of the bonds shall never have the right to demand payment thereof out of
money raised or to be raised by taxation, or out of any funds of the Town other than the Trust Estate, as
and to the extent provided in the indenture; and, no owner of the bonds shall have the right to demand
any exercise of the Town’s taxing power to pay the principal of the bonds or the interest or redemption
premium, if any, thereon. The Town shall have no legal or moral obligation to pay the bonds out of any
funds of the Town other than the Trust Estate in accordance with the Texas Local Government Code.
The proceeds from the bond issue are being used as follows: payment of a portion of the costs of
construction, acquisition, or purchase of certain water, wastewater and roadway public improvements
for the special benefit of the District; funding a reserve fund; funding capitalized interest; payment of a
portion of the costs incidental to the organization of the District; and payment of the cost of issuance of
the bonds. The Town is not, and will not be obligated to provide any funds to finance construction of
authorized improvements. All design and construction costs of the District’s authorized public
improvements will be paid from the District assessments and from other sources of funds, if any, to the
extent provided in the Trust Indenture.
Note 16. Tax Abatements
The Town enters into economic development agreements authorized under Chapter 380 of the Texas
Local Government Code and Chapter 312 of the Texas Tax Code. These agreements are planning tools
designed to stimulate economic activity, redevelopment, community improvement, and provide a return
on investment for the community. These programs abate or rebate property and/or sales and hotel/motel
taxes and may include other incentive payments such as fee reductions or construction costs
reimbursements. Economic development agreements are considered on a case-by-case basis by the
Town Council and generally contain recapture provisions, which may require repayment or termination
if recipients do not meet the required provisions of the economic incentives.
Other Economic Agreements
Chapter 380 of the Texas Local Government Code allows the Town to provide grants for the purpose of
promoting local economic development. These grants are based on a percentage of property and/or
sales tax received by the Town. For the fiscal year ending September 30, 2017, the Town abated $209,341
in property taxes; $134,400 in sales taxes; and $159,178 in hotel/motel taxes.
Note 17. Going Concern
The 2017 financial statements were prepared assuming the Texas Student Housing entities will continue as
going concerns. The Texas Student Housing entities’ bonds payable are considered to be in default due
to not making full principal and interest payments and, therefore, are reported as current liabilities. This is
considered an event of default by the Trustees, which gives the bondholders the right to accelerate and
demand payment of the bonds in full. Management and the property managers are in the process of
developing and implementing plans to increase occupancy and rental rates at the properties to improve
their financial performance.
Note 18. Expenditures In Excess of Appropriations
For the year ended September 30, 2017, the Westlake Academy Fund expenditures exceeded
appropriations by $60,706. The over-expenditure will be addressed through future appropriations.
80
Required Supplementary Information
Town of Westlake Exhibit B-1
Schedule of Revenues, Expenditures,
and Changes in Fund Balances
Budget and Actual – General Fund
For the Year Ended September 30, 2017
81
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Sales 3,310,500$ 3,310,500$ 3,353,658$ 43,158$
Property 1,437,050 1,479,500 1,482,625 3,125
Mixed beverages 62,500 62,500 68,432 5,932
Franchise 966,370 974,770 818,423 (156,347)
Interest income 14,440 45,575 67,680 22,105
Building permits and fees 2,551,442 2,805,828 3,521,686 715,858
Fines and penalties 805,350 809,880 673,716 (136,164)
Contributions - 110,535 110,532 (3)
Miscellaneous 106,280 169,460 275,404 105,944
Total revenues 9,253,932 9,768,548 10,372,156 603,608
EXPENDITURES
Current
General government 4,182,287 4,822,665 4,596,827 225,838
Public safety 2,898,780 2,721,961 2,684,244 37,717
Cultural and recreation 148,603 210,763 164,720 46,043
Public works 1,033,235 857,756 784,279 73,477
Capital outlay 190,000 49,500 29,612 19,888
Debt service
Principal retirement 36,680 36,697 36,697 -
Total expenditures 8,489,585 8,699,342 8,296,379 402,963
Excess of revenues over expenditures 764,347 1,069,206 2,075,777 1,006,571
OTHER FINANCING SOURCES (USES)
Transfers in 74,365 231,278 230,336 (942)
Transfers out (1,053,635) (1,093,003) (1,048,094) 44,909
Net other financing sources (uses)(979,270) (861,725) (817,758) 43,967
NET CHANGE IN FUND BALANCE (214,923) 207,481 1,258,019 1,050,538
FUND BALANCE AT BEGINNING OF YEAR 9,679,473 9,679,473 9,679,473 -
FUND BALANCE AT END OF YEAR 9,464,550$ 9,886,954$ 10,937,492$ 1,050,538$
General Fund
Budgeted Amounts
Town of Westlake Exhibit B-2
Schedule of Revenues, Expenditures
And Changes in Fund Balances
Budget and Actual – Westlake Academy
For the Year Ended September 30, 2017
82
Variance
Favorable
Original Final Actual (Unfavorable)
REVENUES
State program revenues 6,760,431$ 6,276,996$ 6,603,358$ 326,362$
Federal program revenues 102,394 139,853 140,152 299
Interest income 4,500 4,500 5,371 871
Local and intermediate sources 1,808,862 1,880,592 1,575,730 (304,862)
Total revenues 8,676,187 8,301,941 8,324,611 22,670
EXPENDITURES
Education 8,627,066 8,758,468 8,819,174 (60,706)
Interest and other fiscal charges 13,951 13,951 13,951 -
Total expenditures 8,641,017 8,772,419 8,833,125 (60,706)
Deficiency of revenues under expenditures 35,170 (470,478) (508,514) (38,036)
OTHER FINANCING SOURCES
Transfers in 315,000 315,000 315,000 -
Total other financing sources 315,000 315,000 315,000 -
NET CHANGE IN FUND BALANCE 350,170 (155,478) (193,514) (38,036)
FUND BALANCE AT BEGINNING OF YEAR 1,158,762 1,158,762 1,158,762 -
FUND BALANCE AT END OF YEAR 1,508,932$ 1,003,284$ 965,248$ (38,036)$
Westlake Academy
Budgeted Amounts
Town of Westlake
Notes to Budgetary Comparison Schedules
83
Budgetary Information – The Town follows these procedures annually in establishing the budgetary data
reflected in the budgetary comparison schedules:
1. The Town Manager submits to the Town Council a proposed budget for the fiscal year
commencing the following October 1. The budget includes proposed expenditures and the
means of financing them.
2. Prior to October 1, the budget is legally adopted through passage of an ordinance. This budget
is reported as the Original Budget in the budgetary comparison schedules.
3. During the fiscal year, changes to the adopted budget may be authorized, as follows:
a. Items requiring Town Council action - appropriation of fund balance reserves; transfers of
appropriations between funds; new inter-fund loans or advances; and creation of new
capital projects or increases to existing capital projects.
b. Items delegated to the Town Manager - appropriation balances from an expenditure
account to another within a single fund.
4. Annual budgets are legally adopted and amended as required for the general, special revenue
and debt service funds. Project length budgets are adopted for the capital projects funds. All
budgets are adopted on a basis consistent with generally accepted accounting principles.
Budgets are adopted for the proprietary funds annually only as a management tool. There are no
legally mandated budgetary constraints for the proprietary funds.
5. Budget amounts are reflected after all authorized amendments and revisions. This budget is
reported as the Final Budget in the budgetary comparison schedules.
6. The appropriated budget is prepared by fund, function and department. The Town's
management may make transfers of appropriations within a fund. Transfers of appropriations
between funds require the approval of the Town Council. The legal level of budgetary control is
the fund level. The Town Council made several supplementary budget appropriations during the
year.
7. Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting under which purchase orders, contracts and other commitments for
the expenditure of resources are recorded to reserve that portion of the applicable appropriation
is utilized in the governmental funds. Encumbrances lapse at year-end and do not constitute
expenditures or liabilities because the commitments must be re-appropriated and honored during
the subsequent year.
Town Of Westlake Exhibit B-3
Schedule of Net Pension Liability and Related Ratios
Texas Municipal Retirement System
Last Three Measurement Years
84
2016 2015 2014
Total pension liability
Service cost 483,414$ 435,146$ 288,923$
Interest 371,753 317,982 264,994
Change in benefit terms - - -
Difference between expected and
actual experience 212,434 96,226 176,965
Change in assumptions - 139,579 -
Benefit payments (58,144) (38,289) (55,762)
Net change in total pension liability 1,009,457 950,644 675,120
Total pension liability, beginning 5,294,817 4,344,173 3,669,053
Total pension liability, ending 6,304,274 5,294,817 4,344,173
Plan fiduciary net position
Contributions, employer 330,604 290,278 172,064
Contributions, nonemployer 203,359 188,725 152,077
Net investment income 276,056 5,368 182,430
Benefit payments (58,144) (38,289) (55,762)
Administrative income (3,113) (3,268) (1,904)
Other (168) (191) (127)
Net change in plan fiduciary net position 748,594 442,623 448,778
Plan fiduciary net position, beginning 4,079,199 3,636,576 3,187,798
Plan fiduciary net position, ending 4,827,793 4,079,199 3,636,576
Town's net pension liability, ending 1,476,481$ 1,215,618$ 707,597$
Plan fiduciary net position as a %
of total pension liability 76.58%77.04%83.71%
Covered payroll 2,905,134$ 2,696,072$ 2,172,525$
Town's net pension liability as a %
of employee payroll 50.82%45.09%32.57%
Note: Only two years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the
10-year schedules that are required to be presented as required supplementary information may be available initially. In these
cases, during the transition period, that information should be presented for as many periods as are available. The schedules should
not include information that is not measured in accordance with the requirements of this statement. Additional years’ will be
displayed as it becomes available.”
Town of Westlake Exhibit B-4
Schedule of Contributions
Texas Municipal Retirement System
Last Three Measurement Years
85
2017 2016 2015
Actuarially determined contributions 382,427$ 316,618$ 277,651$
Contributions in relation to the actuarially
determined contributions (382,427) (316,618) (277,651)
Contribution deficiency (excess)-$ -$ -$
Covered employee payroll 3,218,899 2,821,349 2,778,776
Contributions as a percentage
of covered employee payroll 11.88%11.22%9.99%
Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the Town’s fiscal year as opposed to
the time period covered by the measurement date.
Note: Only three years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the
10-year schedules that are required to be presented as required supplementary information may be available initially. In these
cases, during the transition period, that information should be presented for as many periods as are available. The schedules should
not include information that is not measured in accordance with the requirements of this statement. Additional years’ informa tion
will be displayed as it becomes available.”
Town of Westlake
Notes to Texas Municipal Retirement System Required Supplementary Information
For the Year Ended September 30, 2017
86
Valuation Date
Actuarial determined contribution rates are calculated as of December 31 each year and become
effective in January, 12 months and one day later.
Methods and Assumptions used to Determine Contribution Rates
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 27 years
Asset valuation method 10 year smoothed market; 15% soft corridor
Inflation 2.50%
Salary increases 3.50% to 10.50% including inflation
Investment rate of return 6.75%
Retirement age Experience-based table of rates that are specific to
the City's plan of benefits. Last updated for the 2015
valuation pursuant to an experience study of the
period 2010 - 2014.
Mortality RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and
female rates multiplied by 103% and projected on a
fully generational basis with scale BB.
Town of Westlake Exhibit B-5
Schedule of Academy’s Proportionate Share
of Net Pension Liability – Teacher Retirement System
Last Three Measurement Years
87
2016 2015 2014
Academy's proportion of the net pension liability 0.0027822%0.0030945%0.0007190%
Academy's proportionate share of net pension liability 1,051,346$ 1,093,865$ 192,056$
State's proportionate share of net pension liability
associated with the Westlake Academy 4,035,754 3,667,893 2,965,583
Total 5,087,100$ 4,761,758$ 3,157,639$
Academy's covered payroll 5,094,571$ 4,784,695$ 4,300,931$
Academy's proportionate share of net pension liability
as a percentage of its covered payroll 20.64%22.86%4.47%
Plan fiduciary net position as a
percentage of total pension liability 78.00%78.43%83.25%
Note: Only three years of data is presented in accordance with GASB #68, paragraph 138. "The information for all periods for the
10-year schedules that are required to be presented as required supplementary information may not be available initially. In these
cases, during the transition period, that information should be presented for as many years as are available. The schedules should
not include information that is not measured in accordance with the requirements of this Statement."
Town of Westlake Exhibit B-6
Schedule of Contributions
Teacher Retirement System
Last Three Fiscal Years
(Unaudited)
88
2017 2016 2015
Statutorially required contributions 131,436$ 88,399$ 92,325$
Actual contributions in relation to
statutorially required contributions 131,436 88,399 92,325
Contribution deficiency (excess)-$ -$ -$
Academy's covered payroll 4,965,944$ 5,094,571$ 4,784,694$
Contributions as a percentage
of Academy's covered payroll 2.65%1.74%1.93%
Note: GASB 68, Paragraph 81.2.b requires that the data in this schedule be presented as of the Academy's current fiscal year as
opposed to the time period covered by the measurement date.
Note: Only three years of data is presented in accordance with GASB #68, paragraph 138. "The information for all periods for the
10-year schedules that are required to be presented as required supplementary information may not be available initially. In these
cases, during the transition period, that information should be presented for as many years as are available. The schedules should
not include information that is not measured in accordance with the requirements of this Statement."
89
Town of Westlake
90
Combining and Individual Fund
Statements and Schedules
Town of Westlake Exhibit C-1
Schedule of Revenues, Expenditures
and Changes In Fund Balances
Budget and Actual – Debt Service Fund
For the Year Ended September 30, 2017
91
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Property 88,635$ 95,010$ 95,190$ 180$
Total revenues 88,635 95,010 95,190 180
EXPENDITURES
Debt service
Principal retirement 1,043,902 1,088,000 1,088,000 -
Interest and other fiscal charges 1,108,094 1,098,126 1,091,425 6,701
Bond issuance costs - - 116,592 (116,592)
Total expenditures 2,151,996 2,186,126 2,296,017 (109,891)
Deficiency of revenues under expenditures (2,063,361) (2,091,116) (2,200,827) (109,711)
OTHER FINANCING SOURCES (USES)
Transfers in 2,033,385 2,066,128 2,065,730 (398)
Refunding bonds issued - - 5,795,000 5,795,000
Payment to refunding bond escrow agent - - (6,452,467) (6,452,467)
Premium on refunding bonds issued - - 774,059 774,059
Net other financing sources (uses)2,033,385 2,066,128 2,182,322 116,194
NET CHANGE IN FUND BALANCE (29,976) (24,988) (18,505) 6,483
FUND BALANCE AT BEGINNING OF YEAR 30,468 30,468 30,468 -
FUND BALANCE AT END OF YEAR 492$ 5,480$ 11,963$ 6,483$
Debt Service Fund
Budgeted Amounts
Town of Westlake
Nonmajor Governmental Funds
92
Visitors Association Fund
To account for municipal hotel occupancy taxes collected and expenditures to promote tourism and the
convention and hotel industry.
Lone Star Public Facilities Corporation
To account for investment activity relating to the Lone Star Public Facilities Corporation.
Economic Development Fund
To account for sales tax and hotel occupancy tax collected to fund activity relating to Economic
Development agreements.
4B Economic Development Corporation
To account for sales tax collected to fund the activities of the 4B Economic Development Corporation.
Westlake Academy Expansion Fund
To account for proceeds from long-term financing and revenue and expenditures related to authorized
construction related to expansion of Westlake Academy facilities.
Town of Westlake Exhibit C-2
Combining Balance Sheet
Non Major Governmental Funds
For the Year Ended September 30, 2017
93
Visitors
Association
Lone Star Public
Facilities
Corporation
Fund
Economic
Development
Fund
4B Economic
Development
Corporation
Fund
Westlake
Academy
Expansion
Capital Projects
Fund
Total Nonmajor
Governmental
Funds
ASSETS
Cash and cash equivalents 746,998$ 13,789$ 22,207$ -$ 1,413,345$ 2,196,339$
Accounts receivable 62,424 - 110,579 201,723 - 374,726
Prepaid items 7,862 - - - - 7,862
Total assets 817,284$ 13,789$ 132,786$ 201,723$ 1,413,345$ 2,578,927$
LIABILITIES AND FUND BALANCES
Accounts payable 16,794$ -$ 132,786$ -$ -$ 149,580$
Unearned revenue 1,320 - - - - 1,320
Due to other funds - - - 201,723 - 201,723
Total liabilities 18,114 - 132,786 201,723 - 352,623
FUND BALANCES
Nonspendable:
Prepaid items 7,862 - - - - 7,862
Restricted for:
Capital items - - - - 1,413,345 1,413,345
Tourism 791,308 - - - - 791,308
Future projects - 13,789 - - - 13,789
Total fund balances 799,170 13,789 - - 1,413,345 2,226,304
Total liabilities and fund balances 817,284$ 13,789$ 132,786$ 201,723$ 1,413,345$ 2,578,927$
Special Revenue Funds
Town of Westlake Exhibit C-3
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2017
94
Visitors
Association
Lone Star
Public
Facilities
Corporation
Fund
Economic
Development
Fund
4B Economic
Development
Corporation
Fund
Westlake
Academy
Expansion
Capital
Projects Fund
Total Nonmajor
Governmental
Funds
REVENUES
Sales -$ -$ 134,400$ 1,162,686$ -$ 1,297,086$
Hotel occupancy 722,423 - 29,178 - - 751,601
Interest income 7,054 110 - - 6,218 13,382
Contributions 3,100 - 1,010,000 - - 1,013,100
Miscellaneous 2,667 - - - - 2,667
Total revenues 735,244 110 1,173,578 1,162,686 6,218 3,077,836
EXPENDITURES
Current:
Economic development - - 163,578 - - 163,578
Visitor services 717,055 - - - - 717,055
Debt service
Principal retirement - - - - - -
Interest and other fiscal charges - - - - - -
Total expenditures 717,055 - 163,578 - - 880,633
Excess of revenues
over expenditures 18,189 110 1,010,000 1,162,686 6,218 2,197,203
OTHER FINANCING SOURCES (USES)
Transfers in - - - - 1,010,000 1,010,000
Transfers out (230,970) - (1,010,000) (1,162,686) - (2,403,656)
Total other financing
sources (uses)(230,970) - (1,010,000) (1,162,686) 1,010,000 (1,393,656)
Net change in fund balances (212,781) 110 - - 1,016,218 803,547
Fund balances, October 1 1,011,951 13,679 - - 397,127 1,422,757
Fund balances, September 30 799,170$ 13,789$ -$ -$ 1,413,345$ 2,226,304$
Special Revenue Funds
Town Of Westlake Exhibit C-4
Schedule of Revenues, Expenditures
And Changes in Fund Balances
Budget and Actual – Visitors Association Fund
For the Year Ended September 30, 2017
95
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Hotel occupancy 804,640$ 804,640$ 722,423$ (82,217)$
Interest income 2,900 5,150 7,054 1,904
Contributions 1,200 3,000 3,100 100
Miscellaneous 4,150 8,020 2,667 (5,353)
Total revenues 812,890 820,810 735,244 (85,566)
EXPENDITURES
Visitor services 872,095 818,281 717,055 101,226
Total expenditures 872,095 818,281 717,055 101,226
Excess (deficiency) of revenues over
(under) expenditures (59,205) 2,529 18,189 15,660
OTHER FINANCING USES
Transfers out (157,850) (211,645) (230,970) (19,325)
Total other financing uses (157,850) (211,645) (230,970) (19,325)
NET CHANGE IN FUND BALANCE (217,055) (209,116) (212,781) (3,665)
FUND BALANCE AT BEGINNING OF YEAR 1,011,951 1,011,951 1,011,951 -
FUND BALANCE AT END OF YEAR 794,896$ 802,835$ 799,170$ (3,665)$
Visitors Association Fund
Budgeted Amounts
Town of Westlake Exhibit C-5
Schedule of Revenues, Expenditures
and Changes In Fund Balances
Budget and Actual – Lone Star Public Facilities Corporation Fund
For the Year Ended September 30, 2017
96
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES:
Interest income 30$ 80$ 110$ 30$
Total revenues 30 80 110 30
EXPENDITURES:
Economic development - - - -
Total expenditures - - - -
NET CHANGE IN FUND BALANCE 30 80 110 30
FUND BALANCE AT BEGINNING OF YEAR 13,679 13,679 13,679 -
FUND BALANCE AT END OF YEAR $13,709 $13,759 $13,789 $30
Lone Star Public Facilities Corporation
Budgeted Amounts
Town of Westlake Exhibit C-6
Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual – Economic Development Fund
For the Year Ended September 30, 2017
97
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES:
Taxes
Sales 102,000$ 102,000$ 134,400$ 32,400$
Hotel occupancy 32,640 32,640 29,178 (3,462)
Miscellaneous 1,210,000 1,010,000 1,010,000 -
Total revenues 1,344,640 1,144,640 1,173,578 28,938
EXPENDITURES:
Economic development 134,640 134,640 163,578 (28,938)
Total expenditures 134,640 134,640 163,578 (28,938)
Excess of revenues over expenditures 1,210,000 1,010,000 1,010,000 -
OTHER FINANCING SOURCES (USES)
Transfers out (1,210,000) (1,010,000) (1,010,000) -
Total other financing sources (uses)(1,210,000) (1,010,000) (1,010,000) -
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCE AT BEGINNING OF YEAR - - - -
FUND BALANCE AT END OF YEAR -$ -$ -$ -$
Economic Development Fund
Budgeted Amounts
Town of Westlake Exhibit C-7
Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual – 4B Economic Development Corporation Fund
For the Year Ended September 30, 2017
98
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Sales 1,137,500$ 1,137,500$ 1,162,686$ 25,186$
Total revenues 1,137,500 1,137,500 1,162,686 25,186
EXPENDITURES
Economic development - - - -
Total expenditures - - - -
Excess of revenues over expenditures 1,137,500 1,137,500 1,162,686 25,186
OTHER FINANCING USES
Transfers out (1,137,500) (1,137,500) (1,162,686) (25,186)
Total other financing uses (1,137,500) (1,137,500) (1,162,686) (25,186)
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCE AT BEGINNING OF YEAR - - - -
FUND BALANCE AT END OF YEAR -$ -$ -$ -$
4B Economic Development Corporation
Budgeted Amounts
Town of Westlake
Agency Funds
99
PID Agency Fund
To account for bond proceeds, assessments, and related debt associated with bonds issued by the Town
as an agent for the Solana public improvement district.
Town of Westlake Exhibit C-8
PID Agency Fund
Statement of Changes in Assets and Liabilities
For the Year Ended September 30, 2017
100
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
ASSETS
Restricted cash and cash equivalents 2,769,575$ 8,724$ (692,723)$ 2,085,576$
Total assets 2,769,575$ 8,724$ (692,723)$ 2,085,576$
LIABILITIES
Liability to bond holders 2,769,575$ 8,724$ (692,723)$ 2,085,576$
Total liabilities 2,769,575$ 8,724$ (692,723)$ 2,085,576$
101
Town of Westlake
102
Statistical Section
Statistical Section
Unaudited
103
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.
Page
Financial Trends 104 - 109
These schedules contain trend information to help the reader understand
how the Town's financial performance and well-being have changed over time.
Revenue Capacity 110 - 114
These schedules contain information to help the reader assess the Town's most significant
local revenue sources. Although sales taxes are the Town's most significant local revenue
source, information about principal revenue payers is confidential under Texas statutes,
and; therefore, not disclosed. Trend information about sales tax revenue is provided
in Exhibit S-9.
Debt Capacity 115 - 117
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.
Demographic and Economic Information 118 - 120
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Town's financial activities take place.
Operating Information 121 - 122
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.
Sources: Unless otherwise noted, the information in these
schedules is derived from annual financial
reports for the relevant year.
Town of Westlake Exhibit S-1
Net Position by Component
Last Ten Years
Accrual Basis of Accounting – Unaudited
104
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Governmental activities:
Invested in capital assets,
net of related debt 10,313,743$ 13,244,690$ 13,633,485$ 12,658,921$ 14,866,299$ 21,177,426$ 32,048,991$ 29,633,298$ 38,299,337$ 46,499,873$
Restricted 2,004,763 1,761,067 1,564,868 7,137,362 4,726,376 4,243,239 2,284,947 17,827,177 7,489,048 2,034,916
Unrestricted 3,835,751 4,122,185 5,866,046 3,448,100 5,023,731 6,636,876 910,977)( 7,108,101 9,260,572 9,513,643
Total governmental
activities net position 16,154,257$ 19,127,942$ 21,064,399$ 23,244,383$ 24,616,406$ 32,057,541$ 33,422,961$ 54,568,576$ 55,048,957$ 58,048,432$
Business-type activities:
Invested in capital assets,
net of related debt 7,726,576$ 7,349,032$ 7,033,831$ 6,875,031$ 6,877,555$ 6,601,949$ 6,734,414$ 6,410,547$ 6,044,363$ 5,583,570$
Unrestricted 1,997,281)( 1,945,578)( 2,003,600)( 1,542,092)( 1,636,249)( 842,457)( 1,272,014)( 2,608,315)( 4,041,360)( 3,746,696)(
Total business-type
activities net position 5,729,295$ 5,403,454$ 5,030,231$ 5,332,939$ 5,241,306$ 5,759,492$ 5,462,400$ 3,802,232$ 2,003,003$ 1,836,874$
Primary government:
Invested in capital assets,
net of related debt 18,040,319$ 20,593,722$ 20,667,316$ 19,533,952$ 21,743,854$ 27,779,375$ 38,783,405$ 36,043,845$ 44,343,700$ 52,083,443$
Restricted 2,004,763 1,761,067 1,564,868 7,137,362 4,726,376 4,243,239 2,284,947 17,827,177 7,489,048 2,034,916
Unrestricted 1,838,470 2,176,607 3,862,446 1,906,008 3,387,482 5,794,419 (2,182,991) 4,499,786 5,219,212 5,766,947
Total primary government
net position 21,883,552$ 24,531,396$ 26,094,630$ 28,577,322$ 29,857,712$ 37,817,033$ 38,885,361$ 58,370,808$ 57,051,960$ 59,885,306$
Source:Annual financial reports
Fiscal Year
Town of Westlake Exhibit S-2
Changes in Net Position
Last Ten Years - Continued
Accrual Basis of Accounting – Unaudited
105
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EXPENSES
Governmental activities:
General government 2,031,460$ 2,203,882$ 2,272,127$ 2,478,826$ 2,518,490$ 2,606,785$ 2,784,587$ 3,145,716$ 4,491,557$ 5,716,302$
Public Safety 1,795,782 1,939,441 1,698,164 1,801,585 1,883,424 1,978,803 2,190,050 2,381,437 2,737,084 3,063,003
Cultural and Recreation 129,641 115,770 105,997 122,400 111,765 113,924 123,541 129,970 187,274 217,489
Public Works 1,013,804 1,028,934 594,705 470,054 216,901 267,973 955,794 1,081,996 1,102,636 1,634,549
Economic Development 473,451 207,044 309,653 680,823 546,039 626,423 147,680 171,757 141,779 163,578
Visitor Services 312,777 341,270 420,270 356,365 475,719 521,521 493,087 665,936 740,835 737,071
Education 3,305,220 3,722,705 4,138,875 4,884,985 6,193,560 5,803,611 7,147,411 8,598,261 9,516,287 8,566,295
Interest on long-term debt 991,184 1,068,935 1,026,026 1,127,913 897,573 1,031,328 998,951 1,022,201 990,413 1,401,199
Total governmental activities expenses 10,053,319 10,627,981 10,565,817 11,922,951 12,843,471 12,950,368 14,841,101 17,197,274 19,907,865 21,499,486
Business-type activities:
Water and Sewer 2,410,765 2,694,407 2,567,675 2,794,235 3,098,466 3,356,466 3,690,137 4,861,529 5,519,116 4,893,075
Cemetery 13,299 473 27,822 5,604 6,282 5,328 7,121 7,297 7,831 8,021
Total business-type activities expenses 2,424,064 2,694,880 2,595,497 2,799,839 3,104,748 3,361,794 3,697,258 4,868,826 5,526,947 4,901,096
Total primary government program expenses 12,477,383$ 13,322,861$ 13,161,314$ 14,722,790$ 15,948,219$ 16,312,162$ 18,538,359$ 22,066,100$ 25,434,812$ 26,400,582$
PROGRAM REVENUES
Governmental activities:
Fees, fines, and charges for services:
General Government 522,215$ 677,948$ 716,624$ 721,157$ 673,090$ 774,909$ 33,975$ 110,778$ 789,457$ 73,180$
Public Safety 113,755 107,634 80,665 140,600 142,402 182,154 848,772 887,919 932,017 783,681
Public Works 902,875 594,338 1,597,655 292,572 407,328 659,246 1,022,769 936,245 1,789,776 3,338,541
Education 42,839 98,314 102,406 99,638 195,059 182,220 222,270 531,090 283,077 275,759
Operating grants and contributions 1,296,378 1,522,935 853,151 728,242 5,269,841 4,907,472 6,592,642 7,615,653 7,863,168 8,047,113
Capital grants and contributions - 2,059,624 83,250 425,900 - 5,897,456 80,472 19,983,078 269,185 3,485,255
Total governmental activities program revenues 2,878,062 5,060,793 3,433,751 2,408,109 6,687,720 12,603,457 8,800,900 30,064,763 11,926,680 16,003,529
Business-type activities:
Charges for services:
Water and Sewer 2,037,306 2,345,236 2,101,510 3,078,868 2,934,842 3,157,332 3,428,702 3,549,775 3,968,086 4,815,635
Cemetery 2,100 - 5,550 13,300 4,500 5,510 7,749 13,620 11,115 9,964
Operating grants and contributions - - 46,810 - 24,423 - - - - -
Capital grants and contributions 169,034 - - - - - - - - 50,000
Total business-type activities program revenues 2,208,440 2,345,236 2,153,870 3,092,168 2,963,765 3,162,842 3,436,451 3,563,395 3,979,201 4,875,599
Total primary government program revenues 5,086,502$ 7,406,029$ 5,587,621$ 5,500,277$ 9,651,485$ 15,766,299$ 12,237,351$ 33,628,158$ 15,905,881$ 20,879,128$
Fiscal Year
Town of Westlake Exhibit S-2
Changes in Net Position
Last Ten Years – Concluded
Accrual Basis of Accounting – Unaudited
106
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NET (EXPENSE) REVENUES
Governmental activities 7,175,257)$( 5,567,188)$( 7,132,066)$( 9,514,842)$( 6,155,751)$( 346,911)$( 6,040,201)$( 12,867,489$ 7,981,185)$( 5,495,957)$(
Business-type activities 215,624)( 349,644)( 441,627)( 292,329 140,983)( 198,952)( 260,807)( 1,305,431)( 1,547,746)( 25,497)(
Total primary government net expense 7,390,881)( 5,916,832)( 7,573,693)( 9,222,513)( 6,296,734)( 545,863)( 6,301,008)( 11,562,058 9,528,931)( 5,521,454)(
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Taxes
Sales 3,590,575$ 3,664,409$ 3,790,533$ 4,609,626$ 3,657,274$ 4,375,397$ 4,725,845$ 4,925,428$ 4,609,523$ 4,650,744$
Property 1,260,112 1,441,238 1,366,633 1,367,069 1,438,969 1,476,355 1,576,750
Hotel Occupancy 527,662 497,769 457,693 527,261 590,853 709,578 796,481 872,179 822,490 751,601
Mixed Beverage 16,177 17,869 17,902 19,721 38,286 39,727 51,602 59,184 61,476 68,432
Franchise 649,108 624,401 603,233 586,836 664,991 734,935 795,322 963,040 930,043 818,423
Unrestricted grants and contributions 2,500,817 2,960,590 3,484,141 3,744,757 - - - - - -
Investment earnings 188,459 61,224 38,383 46,248 33,353 24,218 26,713 28,904 55,600 182,095
Miscellaneous 564,973 568,782 676,638 691,345 1,112,858 1,023,149 246,633 198,199 241,501 278,071
Transfers 220,819 61,321 - 145,216 45,507 485,591)( 43,399 323,100 264,578 169,316
Extraordinary item 56,704 124,346)( - - - - -
Special item - 67,760 - - - - -
Gain on sale of capital assets - - - 7,000 - - - - - -
Total governmental activities 8,258,590 8,456,365 9,068,523 11,694,826 7,527,774 7,788,046 8,053,064 8,809,003 8,461,566 8,495,432
Business-type activities:
Investment earnings 32,103 7,858 8,334 9,929 10,077 6,552 7,114 7,083 13,095 28,684
Miscellaneous 44,071 77,266 60,070 145,666 84,780 224,995 50,000 50,000 - -
Transfers 220,819)( 61,321)( - 145,216)( 45,507)( 485,591 43,399)( 323,100)( 264,578)( 169,316)(
Total business-type activities 144,645)( 23,803 68,404 10,379 49,350 717,138 13,715 266,017)( 251,483)( 140,632)(
Total primary government 8,113,945 8,480,168 9,136,927 11,705,205 7,577,124 8,505,184 8,066,779 8,542,986 8,210,083 8,354,800
CHANGE IN NET POSITION
Governmental activities 1,083,333 2,889,177 1,936,457 2,179,984 1,372,023 7,441,135 2,012,863 21,676,492 480,381 2,999,475
Business-type activities 360,269)( 325,841)( 373,223)( 302,708 91,633)( 518,186 247,092)( 1,571,448)( 1,799,229)( 166,129)(
Total primary government 723,064$ 2,563,336$ 1,563,234$ 2,482,692$ 1,280,390$ 7,959,321$ 1,765,771$ 20,105,044$ 1,318,848)$( 2,833,346$
Source: Annual financial reports
Fiscal Year
Town of Westlake Exhibit S-3
Fund Balances
Governmental Funds
Last Ten Years
Modified Accrual Basis of Accounting – Unaudited
107
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General fund
Reserved 303,639$ 193,105$ 214,750$ -$ -$ -$ -$ -$ -$ -$
Unreserved 2,503,099 2,532,207 3,578,235 - - - - - - -
Nonspendable:
Prepaid items 62,020 6,856 6,906 8,821 13,334 12,794 18,705
Restricted for:
Court security and technology 186,776 192,768 194,422 193,082 203,173 238,636 219,693
Committed for:
Future projects 219,687 49,941 74,941 80,442 80,442 335,322 335,392
Assigned for:
Future equipment 22,000 22,000 24,000 - - - -
Unassigned - - - 3,524,911 4,992,240 6,751,362 7,671,173 7,383,601 9,092,721 10,363,702
Total general fund 2,806,738$ 2,725,312$ 3,792,985$ 4,015,394$ 5,263,805$ 7,051,631$ 7,953,518$ 7,680,550$ 9,679,473$ 10,937,492$
All other governmental funds
Reserved
Special revenue funds 1,527,724$ 1,256,954$ 1,112,941$ -$ -$ -$ -$ -$ -$ -$
Unreserved, reported in:
Special revenue funds 1,666,371 1,933,564 2,693,846 - - - - - - -
Nonspendable:
Prepaid items 33,511 60,963 62,635 80,118 83,359 68,718 243,401
Restricted for:
Tourism 1,109,365 1,052,546 1,025,891 1,107,520 1,081,009 1,003,636 791,308
Future projects 4,647,863 3,594,379 10,370,914 1,751,405 13,632 13,679 13,789
Debt service 7,505 22,657 1,482 1,081 20,916 30,468 11,963
Education 885,365 758,127 931,094 993,998 1,592,227 1,098,359 729,709
Economic development 267,577 178,384 - - - - -
Capital projects funds 3,233,471 323,009 237,177 - - - - 17,713,788 8,501,489 15,080,456
Unassigned - - - - - - - - - -
Total all other governmental funds 6,427,566$ 3,513,527$ 4,043,964$ 6,951,186$ 5,667,056$ 12,392,016$ 3,934,122$ 20,504,931$ 10,716,349$ 16,870,626$
Note:
further consideration, the 4B Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units.
The Town implemented GASB Statement No. 54 in fiscal year 2011.
Source: Annual financial reports
Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon
Fiscal Year
Town of Westlake Exhibit S-4
Changes in Fund Balances
Governmental Funds
Last Ten Years – Continued
Modified Accrual Basis of Accounting – Unaudited
108
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
REVENUES
Taxes 4,783,522$ 4,804,448$ 4,869,361$ 7,000,690$ 6,393,472$ 7,226,180$ 7,722,606$ 8,252,748$ 7,902,983$ 7,867,015$
Licenses, fees and permits 1,108,083 860,697 1,746,954 530,646 598,394 944,735 1,175,075 1,200,790 2,715,236 3,521,686
Fines and penalties 554,376 523,515 647,170 605,705 622,338 695,167 730,441 734,152 796,014 673,716
State program revenues 2,673,680 3,163,129 3,687,706 3,945,658 4,369,635 4,696,540 5,269,641 6,173,418 6,543,782 6,603,358
Federal program revenues 75,207 56,134 199,436 337,508 152,351 81,958 80,103 87,797 98,564 140,152
Investment earnings 188,459 61,224 38,383 46,248 33,353 24,218 26,713 28,904 55,600 182,095
Contributions 1,048,308 1,264,262 533,400 - 732,535 5,916,014 82,446 18,785,953 283,684 728,887
Other revenues 607,812 673,400 779,044 980,816 1,323,237 1,274,826 1,665,003 2,471,191 1,542,835 2,863,801
Total revenues 11,039,447 11,406,809 12,501,454 13,447,271 14,225,315 20,859,638 16,752,028 37,734,953 19,938,698 22,580,710
EXPENDITURES
General government 1,516,346 1,519,600 1,644,587 1,733,324 1,878,885 1,910,545 2,236,360 2,411,239 3,280,507 4,596,827
Public safety 1,731,317 1,890,469 1,634,936 1,842,751 2,224,469 1,967,584 2,146,587 2,490,551 2,453,857 2,684,244
Cultural and recreation 129,641 115,770 105,997 122,400 111,765 113,924 123,541 130,322 185,923 164,720
Public works 846,604 841,822 333,831 326,749 391,115 532,675 615,781 744,028 773,751 784,279
Economic development 495,071 229,907 401,879 706,391 243,939 296,565 147,685 171,757 141,779 163,578
Visitor services 312,777 341,270 420,270 356,365 475,719 521,521 493,082 670,157 725,971 717,055
Education 3,305,220 3,722,705 4,138,875 4,884,985 6,193,560 5,762,652 7,143,678 7,938,501 9,245,592 8,819,174
Capital Outlay 463,918 4,335,114 682,103 1,023,772 1,110,476 7,601,631 9,964,047 5,274,282 9,561,954 7,082,844
Capital Project
Debt service
Principal 395,000 593,937 563,703 555,000 668,000 2,955,000 1,004,677 1,130,762 1,150,490 1,124,697
Interest and other fiscal charges 923,944 990,641 977,163 1,083,377 952,027 830,425 1,116,489 977,412 947,411 1,105,376
Bond issuance cost 33,000 - - 36,446 148,891 185,699 69,283 - - 368,278
Total expenditures 10,152,838 14,581,235 10,903,344 12,671,560 14,398,846 22,678,221 25,061,210 21,939,011 28,467,235 27,611,072
EXCESS (DEFICIENCY)
OF REVENUES OVER
OVER (UNDER) EXPENDITURES (UNDER) EXPENDITURES 886,609$ 3,174,426)$( 1,598,110$ 775,711$ 173,531)$( 1,818,583)$( 8,309,182)$( 15,795,942$ 8,528,537)$( 5,030,362)$(
Fiscal Year
Town of Westlake Exhibit S-4
Changes in Fund Balances
Governmental Funds
Last Ten Years – Continued
Modified Accrual Basis of Accounting – Unaudited
109
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
OTHER FINANCING
SOURCES (USES):
Proceeds from sale of land -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Sale of assets 7,000 - - - - - 1,200,000
Issuance of debt 2,500,000 117,640 - 2,095,000 - 8,294,800 - - - -
Premium on CO issued 284,437 - - - -
Refunding bonds issued - - - - 7,799,196 2,200,000 1,910,000 - - 5,795,000
Premium on refunding bonds issued 37,723 84,598 - - 1,020,809
Payments to bond escrow agent - - - - 7,650,305)( - (1,925,315) - - 6,452,467)(
Issuance of capital lease - - - - - - 239,009 16,740 474,300 -
Notes payable issued 50,000 - - 401,484 162,059 - -
Certificate of obligations issued - - - - - - - - - 10,710,000
Special item - 67,760 40,959 - - - -
Extraordinary item 56,704 124,346)( 40,959)( - - - -
Transfers in 2,160,174 2,435,486 1,804,577 7,082,163 2,121,099 2,104,929 3,094,211 4,617,896 2,485,227 3,621,066
Transfers out 1,939,355)( 2,374,165)( 1,804,577)( 6,936,947)( 2,075,592)( 2,590,520)( (3,050,812)(4,294,796)(2,220,649)(3,451,750)
Total other financing
sources (uses)2,720,819 178,961 - 2,353,920 137,812 10,331,369 753,175 501,899 738,878 12,442,658
Prior period adjustment - - - - - - - - - -
NET CHANGES IN
FUND BALANCES 3,607,428$ 2,995,465)$( 1,598,110$ 3,129,631$ 35,719)$( 8,512,786$ 7,556,007)$( 16,297,841$ 7,789,659)$( 7,412,296$
DEBT SERVICE AS
A PERCENTAGE
OF NONCAPITAL
EXPENDITURES 13.6% 15.4% 15.0% 14.1% 12.5% 25.3% 14.4% 12.8% 11.1% 12.4%
Note: Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Upon
further consideration, the 4B Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units.
Source:Annual Financial Reports
Fiscal Year
Town of Westlake Exhibit S-5
Assessed Value and Estimated Actual Value of Taxable Property
Last Seven Fiscal Years
Modified Accrual Basis of Accounting – Unaudited
110
Less:Total Taxable Total
Fiscal Real Personal Tax-Exempt Assessed Direct
Year Property Property Property Value Tax Rate
2011 951,070,355$ 70,569,170$ 143,856,142$ 877,783,383$ 0.16010
2012 1,016,474,604 85,329,823 156,315,552 945,488,875 0.15684
2013 1,099,249,031 122,792,343 335,814,215 886,227,159 0.15684
2014 1,091,142,760 151,927,427 346,730,543 896,339,644 0.15634
2015 1,123,354,430 139,936,507 342,248,275 921,042,662 0.15634
2016 1,175,230,336 107,537,466 336,770,136 945,997,666 0.15634
2017 1,468,274,115 132,422,540 437,293,366 1,163,403,289 0.13695
Note:No ad valorem taxes were assessed by the Town of Westlake prior to the fiscal year ended September 30, 2011.
Source:Tarrant County Appraisal District
Denton Central Appraisal District
Appraised Value
Town of Westlake Exhibit S-6
Principal Property Tax Payers
Current and Six Years Ago – Unaudited
111
Percentage Percentage
Taxable of Total Town Taxable of Total Town
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value
BRE Solana LLC 173,218,573$ 1 14.89% Maguire Thomas Partners, etal 116,839,380$ 1 13.31%
FMR Texas, LLC/LTD Partnership 80,939,255 2 6.96% FMR Texas, LLC/LTD Partnership 148,569,643 2 16.93%
DCLI, LLC 47,521,483 3 4.08% Maguire Partners 39,117,985 3 4.46%
Fidelity Investments Inc.39,098,584 4 3.36% Lexington TNI Westlake LP 18,249,200 4 2.08%
Dallas MTA LP 38,537,456 5 3.31% First American Leasing/Real Estate 17,636,457 5 2.01%
Marsh USA, INC.15,402,373 6 1.32% DCLI, LLC 13,234,691 6 1.51%
Lexington TNI Westlake LP 14,618,533 7 1.26% Fidelity Investments 12,277,810 7 1.40%
Prince Whipple Trust 7,070,782 8 0.61% Levi Strauss & Co.8,215,271 8 0.94%
Hutton Keith 6,391,904 9 0.55% Westlake Terra, LLC 7,400,002 9 0.84%
Wells Vernon III 5,837,063 10 0.50% EMC Corp 6,418,484 10 0.73%
Total 428,636,006$ 36.84% Total 387,958,923$ 44.20%
CY Taxable Value 1,163,403,289 877,783,383
Source: Tarrant County Appraisal District
Note: (1) Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax.
(2) Total Taxable Assessed Value including real and personal property for tax year 2010 (fiscal year 2011) is $877,783,383.
(3) Total Taxable Assessed Value including real and personal property for tax year 2016 (fiscal year 2017) is $1,163,403,289.
20112017
Town of Westlake Exhibit S-7
Property Tax Levies and Collections
Last Seven Fiscal Years – Unaudited
112
Taxes Levied Adjusted Collections
Fiscal for the Adjustments Taxes Levied Percent in Subsequent Percentage
Year Fiscal Year to Levy for Fiscal Year Amount of Levy Years Amount of Levy
2011 1,409,956$ 47,560$ 1,362,396$ 1,356,050$ 99.53%4,136$ 1,360,186$ 99.84%
2012 1,486,968 47,220 1,439,748 1,437,908 99.87%3,359 1,437,908 99.87%
2013 1,398,777 45,297 1,353,480 1,352,097 99.90%3,358 1,352,097 99.90%
2014 1,405,819 44,761 1,361,058 1,350,639 99.23%10,172 1,360,811 99.98%
2015 1,450,674 43,948 1,406,726 1,405,148 99.89%1,005 1,406,153 99.96%
2016 1,482,989 40,244 1,442,745 1,441,536 99.92%- 1,441,536 99.92%
2017 1,573,803 33,281 1,540,522 1,536,921 99.77%- 1,536,921 99.77%
Note: Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an ad valorem tax.
Source: Tarrant County Appraisal District
Denton Central Appraisal District
of the Levy to Date
Collected within the
Fiscal Year Total Collections
Town of Westlake Exhibit S-8
Direct and Overlapping Property Tax Rates
(Per $100 of Assessed Value)
Last Seven Fiscal Years – Unaudited
113
Operating/ Tarrant Tarrant Trophy Total
Fiscal General Debt Service Total (A)Carroll Northwest Keller Denton Tarrant County County Club Direct and
Year Fund Fund Direct ISD ISD ISD County County College Dist Hospital Dist.MUD #1 Overlapping
2011 0.15620 0.00390 0.16010 1.41500 1.37500 1.53060 0.27736 0.26400 0.13764 0.22790 0.19500 5.58260
2012 0.13835 0.01849 0.15684 1.41500 1.37500 1.54000 0.28287 0.26400 0.14897 0.22790 0.17500 5.58557
2013 0.14197 0.01487 0.15684 1.40000 1.37500 1.54000 0.28287 0.26400 0.14897 0.22790 0.13339 5.52896
2014 0.13710 0.01924 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583
2015 0.13710 0.01924 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583
2016 0.13947 0.01687 0.15634 1.40000 1.45250 1.54000 0.27220 0.26400 0.14950 0.22790 0.13339 5.59583
2017 0.12882 0.00813 0.13695 1.39000 1.45250 1.52000 0.24841 0.25400 0.14473 0.22790 0.12722 5.50171
Notes:Prior to fiscal year ended September 30, 2011, the Town of Westlake did not assess an advalorem tax.
Overlapping rates are those of local and county governments that apply to property owners within the Town of Westlake. Not all overlapping rates apply to all
Town's property owners (e.g., the rates for the counties and school districts apply only to the proportion of the Town's property owners whose property is
located within the geographic boundaries of the county and school district)
Source:Tarrant County Appraisal District
Denton Central Appraisal District
School Districts Counties
City Direct Rates Overlapping Rates
Town of Westlake Exhibit S-9
Taxable Sales by Industry Type
Last Ten Fiscal Years – Unaudited
114
NAICS Industry Type 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
11 Agriculture, Forestry, Fishing and Hunting 182$ 210$ $ - 60$ 38$ 163$ 731$ 775$ 2,083$ 1,685$
21 Mining 2,109 20 400 4,260 3,050 335 15 714 655 128
22 Utilities 230,072 186,773 178,693 180,032 171,131 176,622 204,280 191,031 138,331 147,000
23 Construction 998,867 1,043,752 68,306 132,780 139,000 365,049 239,888 216,546 230,067 340,077
31-33 Manufacturing 371,193 430,515 386,492 402,062 526,755 295,660 375,905 234,651 209,128 86,798
42 Wholesale Trade 142,999 138,456 105,557 145,631 134,466 59,571 421,371 515,602 356,946 339,854
44-45 Retail 610,119 648,597 1,097,007 707,553 1,106,427 1,132,811 962,244 1,332,659 415,356 458,833
48-49 Transportation and Warehousing 791 556 316 1,156 3,662 1,962 3,550 1,107 1,133
51 Information 320,848 377,828 423,834 508,609 367,298 378,221 623,828 567,685 551,172 387,714
52 Financial and Insurance 107,319 68,936 87,188 73,455 27,857 75,529 505,585 295,622 754,386 509,201
53 Real Estate and Rental and Leasing 138,879 154,315 327,207 210,158 215,754 457,693 493,570 708,747 940,971 999,118
54 Professional, Scientific, and Technical Services 199,700 192,008 202,263 231,526 221,331 536,971 242,069 193,145 287,066 261,704
56 Admin and Support and Waste Mgmt & Rem Srv 127,779 22,319 39,539 65,045 39,027 110,686 103,340 50,264 125,033 85,430
61 Education Services 282 2,980 619,228 1,675,351 356,689 373,117 153,279 201,761 230,775 220,078
62 Health Care and Social Assistance 238 - 170 106 251 11,018 2,887 228 398
71 Arts, Entertainment and Recreation 199,876 174,485 158,996 206,050 204,456 184,687 191,343 189,027 201,391 241,107
72 Accommodation and Food Services 130,923 140,344 140,996 175,938 93,123 204,044 221,061 246,755 230,615 233,769
81 Other Services (except Public Administration)18,576 1,756 4,462 4,632 9,805 13,156 17,412 8,965 3,167 2,963
92 Public Administration - - 11 1 135 295 27,243 - - 1
3,599,961$ 3,584,085$ 3,840,735$ 4,723,629$ 3,617,604$ 4,368,523$ 4,796,144$ 4,960,386$ 4,678,477$ 4,316,991$
Town direct sales tax rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Note:
Source:Texas State Comptroller reports
Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of
the Town's sales tax revenue
Fiscal Year
Town of Westlake Exhibit S-10
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years – Unaudited
115
Percentage
General Certificates of Actual
Fiscal Obligation of Taxable Per
Year Bonds Obligation Tax Notes Total Sales Capita
2008 9,850,000 11,375,000 21,225,000 11.82% 27,038
2009 9,735,000 10,975,000 20,710,000 11.30% 25,791
2010 9,630,000 10,555,000 20,185,000 10.65% 23,831
2011 8,962,656 12,210,000 - 21,172,656 9.19% 21,343
2012 16,770,000 4,877,000 - 21,647,000 11.84% 20,369
2013 16,590,000 13,622,000 - 30,212,000 13.81% 27,251
2014 18,260,000 11,044,000 - 29,304,000 12.40% 24,748
2015 17,480,000 11,046,131 - 28,526,131 11.58% 23,772
2016 17,091,659 10,739,306 - 27,830,965 12.08% 22,627
2017 15,267,000 18,460,700 1,530,000 35,257,700 15.16% 26,914
Notes:Details regarding the Town's outstanding debt can be found in the notes to the financial statements.
There was no debt issued until fiscal year 2002.
See Table 13 for personal income and population data.
General Bonded Debt Outstanding
0
5
10
15
20
25
30
35
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Millions
General Obligation Bonds Certificates of Obligation
Town of Westlake Exhibit S-11
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years – Unaudited
116
General Certificates Other Certificates Total Percentage
Fiscal Obligation of Capital Contractual of Primary of Personal Per
Year Bonds Obligation Leases Loans Obligations Obligation Government Income Capita
2008 9,850,000 11,375,000 15,264 - 5,763,022 27,003,286 23%34,399
2009 9,735,000 10,975,000 46,559 - 5,734,191 26,490,750 22%32,990
2010 9,630,000 10,555,000 - - 5,658,888 25,843,888 25%30,512
2011 8,962,656 12,210,000 - 50,000 5,580,380 26,803,036 21%27,019
2012 16,770,000 4,877,000 - 34,075 5,498,668 27,179,743 20%25,576
2013 16,590,000 13,622,000 - 18,150 5,412,149 35,642,299 24%32,150
2014 18,260,000 10,029,800 237,378 437,253 5,320,824 1,014,200 35,299,455 22%29,812
2015 17,480,000 9,759,250 154,347 357,041 5,226,294 1,286,881 34,263,813 21%28,553
2016 17,091,659 9,736,953 563,045 275,101 5,126,958 971,300 33,796,069 20%28,308
2017 15,267,000 18,460,700 1,530,000 162,004 238,404 5,156,839 949,300 41,764,247 22%31,881
Note:
See Table 13 for personal income and population data.
Details regarding the Town's outstanding debt can be found in the notes to the financial statements. No debt was issued until fiscal year 2000.
Governmental Activities
Business-Type
Activities
Tax Notes
Town of Westlake Exhibit S-12
Direct and Overlapping Governmental Activities Debt
As of September 30, 2017 –Unaudited
117
Amount of
Debt Outstanding As of Percent (1)Amount
Carroll ISD 269,575,245$ 9/30/2017 10.81%29,141,084$
Denton County 645,305,000 9/30/2017 0.02%129,061
Keller ISD 706,960,916 9/30/2017 1.19%8,412,835
Northwest ISD 803,407,028 9/30/2017 2.64%21,209,946
Tarrant County 321,795,000 9/30/2017 0.76%2,445,642
Tarrant County Hospital District 20,835,000 9/30/2017 0.79%164,597
Trophy Club MUD#1 9,450,000 9/30/2017 18.98%1,793,610
Total Overlapping Debt 63,296,774
Town of Westlake Outstanding Debt 35,658,108
Total Direct & Overlapping Debt 98,954,882$
Source: Texas Municipal Report prepared by employees of the Municipal Advisory Council of Texas ("MAC")
Note:
(1)
were estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and dividing it by the
entities' total taxable assessed value.
Overlapping
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the
Town of Westlake. This process recognized that, when considering the Town's ability to issue and repay long-term debt, the entire
debt burden borne by the resident and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident, and therefore responsible for repaying the debt, of each overlapping government.
Taxing Body
Town of Westlake Exhibit S-13
Demographic and Economic Statistics
Last Ten Fiscal Years – Unaudited
118
Per Capita Tarrant County
Calendar Estimated Personal Personal Unemployment
Year Population Income Income Rate
2008 785 115,891,905 147,633 5.1%
2009 803 120,920,285 150,586 8.1%
2010 847 102,852,057 121,431 8.1%
2011 992 126,678,400 127,700 7.9%
2012 1,063 138,423,531 130,254 6.2%
2013 1,109 147,292,890 132,859 6.0%
2014 1,184 160,462,095 135,516 5.0%
2015 1,200 165,871,904 138,227 4.0%
2016 1,230 173,419,076 140,991 4.1%
2017 1,310 188,392,333 143,811 3.2%
Sources:
American Community Survey (ACS)
USA.com - Per Capita Income source
North Central Texas Council of Governments/US Census 2010
Tarrant County Unemployment Rate information taken from Texas Workforce Commission.
Population for 2000 is from the 2000 census. Fiscal Years 2001 through 2003 are estimated. The Town assumed the
utilility billing in 2004 and estimated the population by using number of residential water accounts and assuming a 2.5
average household size. 2010 Census shows median household income at $250,000. Due to the influx of residents
coming to Westlake Academy, surveys have shown that there are approximately 1.28 school-age children in each
household; therefore, we will use a 3.23 average household size to calculate population.
Town of Westlake Exhibit S-14
Principal Employers
Current and Nine Years Ago – Unaudited
119
2007
Percentage Percentage
of Estimated of Estimated
Total Town Total Town
Employer Employees Employment Employer Employees Employment
Fidelity Investments 5,400 52.23%Fidelity Investments 3,100 37.15%
Travelocity 880 8.51%First American/Core Logic 3,000 35.95%
Wells Fargo 617 5.97%Wells Fargo 790 9.47%
Schwab 526 5.09%Chrysler Financial/TD Auto Finance 325 3.89%
Sabre JLL Facilities 500 4.84%McKesson Corporation 215 2.58%
Deloitte 487 4.71%Sonitrol/World Factory 165 1.98%
Verizon Wireless 384 3.71%Walco 150 1.80%
Goosehead Insurance 200 1.93%Vaquero Club 140 1.68%
Sount Physicians 173 1.67%Marriott Solana Hotel 120 1.44%
Marriott Solana Hotel 143 1.38%Pfizer, Inc.115 1.38%
Levi Strauss 140 1.35%Town of Westlake/Westlake Academy 73 0.87%
Vaquero Country Club 135 1.31%Premier Academy 34 0.41%
Westlake Academy 133 1.29%Solara Healthcare 28 0.34%
All Other Business 620 6.00%All Other Business 90 1.08%
Total 10,338 100% Total 8,345 100%
Source: Cushman &Wakefield tenant records and contact with employers of the Town
2017
Town of Westlake Exhibit S-15
Full-Time Equivalent City Government Employees
by Function/Program
Last Ten Fiscal Years – Unaudited
120
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General government
Town manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Assistant Town Manager 0.75 0.90 1.00 0.90 1.00
Assistant to town managerAssistant to Town Manager 1.00 1.00 1.00 1.00 0.75 0.00 0.00 0.00 0.50 0.50
Administrative 0.00 0.75 0.50 0.75 0.75 1.00 0.50 0.50 0.00 1.50
BuildingBuilding official 1.00 1.33 1.33 1.33 1.33 1.50 1.66 1.66 3.17 4.00
Town secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.25 1.25 1.50
Facilities/Grounds maintenance 0.75 1.08 1.08 1.08 0.83 1.00 1.09 1.34 1.58 0.50
Municipal 4.00 4.25 4.50 4.50 3.75 4.75 5.10 5.00 4.60 4.00
Finance 3.00 3.00 3.00 3.00 3.00 3.00 4.00 4.00 4.25 4.00
Payroll/Human Resources 1.00 1.33 1.33 1.33 1.33 2.00 2.00 2.00 2.00 2.00
Information Technology 1.00 1.00 1.00 1.00
Public safety (EMS)11.00 9.00 9.00 9.00 9.00 10.00 13.25 14.25 14.25 11.00
Culture and recreation 0.75 0.75 0.75 0.75 0.50 0.75 0.84 0.84 0.84 0.50
Public works 1.50 1.50 1.50 1.50 2.00 3.00 2.66 2.66 2.67 3.00
Marketing and public affairs 0.00 0.00 0.00 0.00 1.00 1.00 2.00 2.00 2.00 2.00
Education 43.00 48.10 55.62 59.44 67.48 76.18 91.18 93.65 95.31 95.05
Total 69.00 74.09 81.61 85.68 93.72 106.93 128.18 132.15 135.32 132.55
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.
Fiscal Year
Town of Westlake Exhibit S-16
Operating Indicators
by Function/Program
Last Ten Fiscal Years – Unaudited
121
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General government
Permits issued 93 61 44 70 85 132 144 159 218 217
Permit values 188,578,581$ 21,051,297$ 190,388,737$ 21,173,592$ 29,481,047$ 50,544,048$ 59,358,904$ 80,011,354$ 87,307,794$ 262,690,940$
Police (Contract with Keller PD)
Motor vehicle stops 10,357 9,247 9,763 9,829 12,221 9,993 9,579 10,432 11,109 10,718
Traffic accident investigations 208 266 273 348 343 322 341 398 461 386
Part I crimes 26 23 19 30 39 9 15 20 13 22
DWI arrests 45 24 32 80 50 69 55 62 66 70
Fire/EMS
Fire runs 169 118 172 191 181 238 211 211 257 248
Ambulance runs 159 184 187 264 266 286 240 253 288 269
Inspections 132 15 71 71 54 96 286 261 246 290
Public Works - General
Street resurfacing (LF)- - - 3,800 30,000 - - - - 6,000
Potholes repaired 20.00 10.00 5.00 36.00 6.00 2.00 6.00 20.00 20.00 10.00
Public Works - Utility
Number of water accounts 419 437 478 500 568 614 651 713 752 810
Water main breaks 4 5 6 4 4 3 1 1 - -
Avg daily consumption MG (water)0.999 1.020 0.889 1.200 1.100 1.090 1.045 1.021 1.122 1.233
Peak daily consumption MG (water)2.060 2.740 2.460 2.540 2.600 2.480 2.690 2.770 1.586 1.646
System capacity - MG (water)1.685 1.685 1.685 1.685 1.685 1.685 2.685 2.685 2.685 2.685
Water purchased (in gallons x 000)364,764 372,933 324,843 443,222 407,305 401,457 381,482 372,838 409,817 450,208
Water sold (in gallons x 1000)340,743 313,495 290,000 385,320 376,496 357,297 347,148 360,000 350,000 419,520
Wastewater
Number of new sewer connections 240 251 254 245 292 325 350 384 403 454
Avg daily sewage treatment 0.124 0.101 0.063 0.163 0.136 0.151 0.208 0.166 0.132 0.176
(thousands of gallons)
Source: Various Town departments
Notes: N/A represents information that is unavailable.
Fiscal Year
Town of Westlake Exhibit S-17
Capital Asset Statistics
by Function/Program
Last Ten Fiscal Years – Unaudited
122
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fire
Stations 1 1 1 1 1 1 1 1 1 1
Public Works - Utility
Pump station 1 1 1 1 1 1 1 1 1 1
Lift station 2 2 3 3 3 3 3 3 3 3
Telecommunications Duct Bank (LF)43,703 49,103 51,803 57,783 57,783 57,783 59,936 66,084 66,084 82,231
Telecommunications Duct Bank Manholes 104 113 122 122 122 122 122 140 140 140
Water
Water mains (LF)64,600 70,000 79,000 130,000 137,891 137,891 142,694 148,117 148,117 181,393
Fire hydrants 130 130 154 188 191 191 201 214 214 256
Storage capacity MG 1,685 1,685 1,685 1,685 1,685 1,685 2,685 2,685 2,685 2,685
Wastewater
Sanitary sewers (LF)39,300 39,300 49,900 94,000 94,000 94,000 98,964 104,373 104,373 123,168
Manholes 267 284 304 304 304 304 326 355 355 444
Public Works - Utility
Streets (miles)10.80 10.80 10.80 10.80 10.25 10.25 10.25 10.50 10.42 10.42
Traffic signals (school zone flashers)2 2 2 2 2 2 2 2 2.0 2.0
Parks and recreation
Open Space (acres)25 25 25 25 25 25 27 27 27.0 27.0
Playgrounds 2 2 2 2 2 2 2 2.0 2.0 2.0
Softball/soccer field 1 1 1 1 1 1 1 1.0 1.0 1.0
Football field 1 1 1 1 1 1 1 1.0 1.0 1.0
Public trails (miles)3.5 3.5 3.5 5.0 5.0 5.0 7.0 8.5 8.5 8.5
Source: Various Town departments
Note: No capital asset indicators are available for the general government.
Note: The amount of roads decreased in FY 2011-2012 due to a portion of road being dedicated to TxDot
Fiscal Year